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ADVANTAGES
Retail banking has inherent advantages outweighing certain disadvantages. Advantages are analyzed from the
resource angle and asset angle.



RESOURCE SIDE

o Retail deposits are stable and constitute core deposits.

o They are interest insensitive and less bargaining for additional interest.

o They constitute low cost funds for the banks.

o Effective customer relationship management with the retail customers built a strong customer base.


o Retail banking increases the subsidiary business of the banks.



ASSETS SIDE

o Retail banking results in better yield and improved bottom line for a bank.


o Retail segment is a good avenue for funds deployment.

o Consumer loans are presumed to be of lower risk and NPA perception.

o Helps economic revival of the nation through increased production activity.


o Improves lifestyle and fulfils aspirations of the people through affordable credit.


o Innovative product development credit.


o Retail banking involves minimum marketing efforts in a demand -driven economy.


o Diversified portfolio due to huge customer base enables bank to reduce their dependence on few or single borrower
o Banks can earn good profits by providing non fund based or fee based services without deploying their funds.

Non-Scheduled banks.


BENEFITS OF RETAIL BANKING
Traditional lending to the corporate are slow moving along with high
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into use by the banks. Products can be designed, developed and marketed
as per individual needs.
Product Bundling Advantages for Retail
Banks
Posted: Tuesday, August 17th, 2010 at 1:48 PM , By: Camilion

To capitalize on product bundling advantages most banks have either launched or are in the
process oI launching bundles. Some are even on their second or third generation oI product
bundling initiatives. II you are somewhere along this path then you will want to check out
the Product Management Summit that Bill Hippensteel, Executive Vice President, Director oI
Product and Segment Management, BBVA Compass will be leading at the BAI Retail
Delivery ConIerence Iocused on product bundling and relationship pricing strategies.
Following the lead oI other industries such as telecom, banks have long understood and
sought to capitalize on the advantages oI product bundling:
O increased revenue
O improved customer retention
O enables more competitive, relationship-based pricing
O improved customer satisIaction
O and more...
However, it is not always an easy journey. Typically, banks deIine the product mix,
determine proIitable terms and conditions oI use, articulate Ieatures and beneIits, launch the
product over the web with their advertising team and then realize that they need to
operationalize which can be like putting a square peg in a round hole iI not considered early
in the process.


Read more: Product Bundling Advantages Ior Retail Banks
http://blog.camilion.com/banking/product-bundling-advantages.html#ixzz1eSa5QFUL