Abstract
The Indian banking sector is going through a major
transformation with the changing policies. The role
of banking industry is very important and essential
service sector. The significant role of banking
industry is to enhance economic development. Banks
play an important role in the economic development
by investing in various sectors
The changing economic policies of globalization,
liberalization and privatization have given rise to
new blend of players in the banking industry – public
sector banks, private banks, and foreign banks- having
their branches in India taking in view satisfaction of
customers needs and requirement thereby ensuring
customer satisfaction. The emerging competition
has generated new expectations from customers.
Innovative products have to be therefore introduced in
a cost effective manner inline with the technological
advancements. With the increasing income levels,
customer’s requirements also increase. All these
factors lead to a growing demand for competitive,
refined retail banking services. This paper explains
the changing banking scenario briefly highlighting
the challenges and opportunities of Indian banking
sector
Keywords : Technological advancements, E-Banking,
Customer relationship management,
Introduction :
India is one of the top 10 economies in the world,
where the banking sector has tremendous potential to
grow. The Indian Banking sector is on an increasing
trend showing continuous growth. With the increase
in the disposable income and earnings of the
individuals in the country, has been an advantage
to the banking sector in India. There has also been
an increase in various transactions on account of
technological advancements resulting in increase of
internet based banking activities, mobile banking
activities, ATM services. During the last decade
customers utilized the ATM, internet and mobile
banking services extensively. All the banks in India
such as the Public sector banks, Private sector Banks
and the Foreign banks having branches in India have
shown a considerable increase in their activities thus
enhancing their customer reach. India‘s banking
sector is currently valued at Rs. 81 trillion (US$
1.31 trillion). It has the potential to become the fifth
largest banking industry in the world by 2020 and
the third largest by 2025, according to an industry
report. The face of Indian banking has changed
over the years. Banks are now reaching out to the
masses with technology in order to facilitate greater
and faster communication, and ensuring that all the
transactions are carried out through the Internet and
mobile devices accurately.