1Lecturer, Department of Business Administration, Annamalai University, Annamlainagar
2Reader, Department of Business Administration, Annamalai University, Annamlainagar
3Reader, Management Wing, D.D.E, Annamalai University, Annamalainagar
Online published on 11 September, 2015.
The banking sector is undergoing a rapid change in order to face the challenges posed by the new developments triggered by the entry of private banks and foreign banks into India. The liberalization process, initiated by the Government of India nearly one-anda- half decades ago, has brought about tremendous changes in the financial services sector. Within the world of banking, customers’ needs have changed and so has the basic nature of banking services. Banks in India, in the new era of global competition, have to concentrate on three important areas for sustained development viz., Technology, Customer and Consolidation. The technology has influenced every aspect of banking system. It is largely technology that will transform the face of the banking industry. The key to success is adopting state-of-the-art technology and not just automating antiquated processes. Today's customers have more likings and dislikings, which frequently change to suit the new situations. Unlike in the past, today's customer in India wants Indian banks to offer a variety of products and services to enable him to meet his diversified requirements. Consolidation is only an enabling step towards realization of these synergies. One of the most striking features of the Indian banking sector is the segmentation defined by ownership and geography. With all the developments and new challenges thrown by the economic liberalization policies pursued by the Government of India, the Indian banking sector is poised for stupendous growth and would be able to consolidate itself to provide quality service and better customer satisfaction.
