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Introduction To

Banking Channel

Branch

Network 

m-Banking

ATMNetwork

InternetBank

Callcentre

Multi-channel delivery model

Agent

Network 

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WHAT IS A BANK?

•  The services banks offer to customers have to doalmost entirely with handling money for other people.

• A bank is a financial intermediary for thesafeguarding, transferring, exchanging, or lending of money.

A UNIQUE BUSINESS

Bank  is a lawful organisation, which accepts depositsthat can be withdrawn on demand. It also lends moneyto individuals and business houses that need it.

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Market PlaceMarket Place

Bank Offer

MultipleServices/Products

Mortgages

Loans

Deposits

Insurance

Securities

Payments- Cards

What do we mean by a ‘product’and a ‘service’ in the world of banking?

A standardized set of services withstandard fees/rates attached would

be called a product.For example, a savings account isa standard set of services andwould be called a product. Aforeign currency transaction or ademand draft for a customer onthe other hand, would be called aservice.

HOWHOW

… To multiple

segments

Affluent

Private

Mass

Medium-size

business

Largebusiness

Smallbusiness

Retail Corporate

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Banking ChannelBanking Channel

1. Branch Banking

A branch, banking center is a retail location where a bank, creditunion or other financial institution (and by extension, brokerage firms)offers a wide array of face to face and automated services to itscustomers

Some Facts:

• The most popular channel &

• The most expensive

  The total number of Scheduled CommercialBank branches in India was 76,518 at end- June 2008 a growth of 5.2 per cent during theyear. These comprised 31,127 rural branches,17,858 semi-urban branches and 27,533urban and metropolitan branches.

  The geographic distribution of branches,interestingly, is concentrated in Southern andEastern India!  Source: RBI report (REPORT ON TREND AND PROGRESS OF BANKING IN

INDIA 2007-08)

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unctions of a branch

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2. Automated TellerMachine (ATM) :

An automated teller machine (ATM) is a computerizedtelecommunications device that provides the customers of a financial

institution with access to financial transactions in a public spacewithout the need for a human clerk or bank teller.

ATM is used by bank customers. A customer can avail followingfacilities:

• Balance Enquiry•

Statement of Accounts• Cash Withdrawal• Cash deposit 

• Currency Exchange• Loan Application•

Investment Advice• MF, Insurance sales• Electronic Purse loading• Ticketing

• Bill Payment• Check deposit•

Check cashing• Funds transfer

Source: http://www.business-standard.com/india/storypage.php?autono=353044

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How does it Work ???

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3. Internet Banking

“Internet banking” refers to systems that enable bank customers toaccess accounts and general information on bank products andservices through a personal computer (PC) via internet. It is one of thecheapest channels for a bank

 Typical Internet Banking offerings include:

•

Static information about the bank’s offerings, applicationforms• Specific account information: Statements, Alerts,• Ability to change/edit account information• Stop payments, cheque book requests/other instructions• Payment transactions to other accounts within and external

to the bank• Bill Payments

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Page View:

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4.Mobile Banking

Mobile banking (also known as M-Banking, SMS Banking etc.) is a termused for performing balance checks, account transactions, payments

etc. via a mobile device such as a mobile phone. Mobile banking is mostoften performed via SMS or the Mobile Internet but can also use specialprograms called clients downloaded to the mobile device.

Interactions can be classified as either transactions or enquiries; asalso if they are bank initiated (‘Push’) or Customer initiated (‘Pull’),as shown in the table below.

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Mobile trends indicate the potential of m-Banking

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Q&A SessionQ&A Session

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Quiz

Match the statement in column A with the word(s) / terms incolumn B:

We can get information about thebalance inour bank account over the mobilephone using this facility.

 The banking facility enabling us todepositor withdraw cash 24 hours a day.

 The facility that helps us to perform

bankingtransactions over the Internet.

 The most expensive channel for abank

Column A Column B

ATM

Phone Banking

Branch Banking

Net Banking

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