Financial Inclusion Can be a Game Changer for Banks

The present article involves a discrete analysis of growth of banking sector in different periods of time. The collection of data relate to the post nationalization, the period of banking sector reforms and the current challenging phase of financial inclusion. The performance of banking sector in the three distinct phases more than clearly brings out its resilience and ability to contribute to fulfill the objectives set for it. The social banking during nationalization, implementation of prudent banking practices under reforms and expansionary mode of outreach program under financial inclusion spells out the robust organisational effectiveness of banks to meet the challenges that emerge under different set of objectives. The article goes to show that the Indian Banking system manifests its stability and robustness in the new principles of governance in each phase and moves seamlessly to the next orbit of growth maintaining its steadfast approach. Adoption of technology to reach out to more people and massive focus on branch expansion helped the banks to speed up the move towards financial inclusion. Expansion of alternate delivery channels, centralization of some of the back office operations and speedy implementation of improved customer centric services have created an ability to compete. Financial inclusion can be a game changer for the banks to step up their growth.