Literature Review

Investopedia explains 'Retail Banking' Retail banking aims to be the one-stop shop for as many financial services as possible on behalf of retail clients. Some retail banks have even made a push into investment services such as wealth management, brokerage accounts, private banking and retirement planning. While some of these ancillary services are outsourced to third parties (often for regulatory reasons), they often intertwine with core retail banking accounts like checking and savings to allow for easier transfers and maintenance. 1.) Dr.Chaisomphol Chaoprasert in his article LITERATURE REVIEW OF SERVICE QUALITY IMPROVEMENT IN THE RETAIL BANKING INDUSTRY talks about the importance of Service Quality Improvement . The paper analyzes past studies regarding service quality improvement in the retail banking industry. The continuing trend to a model of service quality improvement, from personnel counter services to electronic services, is demonstrated. Improved service quality should be adopted to maintain the core competence and this paper contributes knowledge and background for banks to apply these findings to better shape and focus their positions in the market and also to provide service quality to customers.
2.) Innovation in Retail Banking by Frances X. Frei Patrick T. Harker Larry W. Hunter Reviews about, how does a retail bank innovate? Traditional innovation literature would suggest that organizations innovate by getting new and/or improved products to market. However, in a service, the product is the process. Thus, innovation in banking lies more in process and organizational changes than in new product development in a traditional sense. This paper reviews a multi-year research effort on innovation and efficiency in retail banking, and discusses both the means by which innovation occurs along with the factors that make one institution better than another in innovation. Implications of these results to the study of the broader service sector will be drawn as well.

3.) Keynote address by Ms Shyamala Gopinath, Deputy Governor of the Reserve Bank of India, at the IBA - Banking Frontiers International Conference on Retail Banking Directions: Opportunities & Challenges , Mumbai, 28 May 2005.

The issue of retail banking is extremely important and topical. Across the globe, retail lending has been a spectacular innovation in the commercial banking sector in recent years. The growth of retail lending, especially, in emerging economies, is attributable to the rapid advances in information technology, the evolving macroeconomic environment, financial market reform, and several micro-level demand and supply side factors. India too experienced a surge in retail banking. There are various pointers towards this. Retail loan is estimated to have accounted for nearly one-fifth of all bank credit. Housing sector is experiencing a boom in its credit. The retail loan market has decisively got transformed from a sellers market to a buyers market. Gone are the days where getting a retail loan was somewhat cumbersome. All these emphasize the momentum that retail banking is experiencing in the Indian economy in recent years. There is a need of constant innovation in retail banking. In bracing for tomorrow, a paradigm shift in bank financing through innovative products and mechanisms involving constant upgradation and revalidation of the banks internal systems and processes is called for. Banks now need to use retail as a growth trigger. This requires product development and differentiation, innovation and business process reengineering, micro-planning, marketing, prudent pricing, customisation, technological upgradation, home / electronic / mobile banking, cost reduction and cross-selling. While retail banking offers phenomenal opportunities for growth, the challenges are equally daunting. How far the retail banking is able to lead growth of the banking industry in future would depend upon the capacity building of the banks to meet the challenges and make use of the opportunities profitably. However, the kind of technology used and the efficiency of operations would provide the much needed competitive edge for success in retail banking business. Furthermore, in all these customers interest is of paramount importance. The banking sector in India is demonstrating this and I do hope they would continue to chart in this traded path. 4.) Customer relationship management in retail banking from eds.com Author Pat Russ Global Practice Leader, Financial Services Industry EDS Business Transformation Outsourcing, CRM Services

Retail banks are facing greater challenges than ever before in executing their customer management strategies. Intensifying competition, proliferating customer contact channels, escalating attacks on customer information, rising customer expectations and capitalizing on new market opportunities are at the top of every bank executive s agenda. In looking for ways to drive growth, banks need to evaluate their customer management strategy. Do they currently have a CRM solution that is capable of delivering? Consistent and cost-effective customer service? Customer-aligned products and services? Enhanced customer loyalty and long-term value? 5.) Banking on Growth by Rajeshwari Adappa Thakur With the Indian economy growing at a brisk clip of nine-plus percent per annum, there is growing global and domestic interest in the nation s banking industry. Experts have also projected that India would emerge as the third largest banking hub in the world by 2040. Rajeshwari Adappa Thakur writes about the buoyant sector He also has a highlight on the Retail Banking sector as a new buzzword in the Indian banking sector. He says If retail banking is a buzzword in India today, the reason is not far to see. After all, margins in retail banking are higher than corporate banking and the growth too is faster. Several banks that were not very active in retail banking are now eyeing this sector.

Looking at the above mentioned reviews, there is a clear understanding on the main aspects of retail banking and also the importance of this sector. In my report A study on retail banking in Syndicate Bank , I would try to use these studies to understand whether or not Syndicate bank has taken consideration of such aspects in retail banking, and to what extent is it going to tap this upcoming sector whether it is technology wise, service wise or any other form.