Bank Of Baroda Case Study

Convenience way of operating banking transactions: Online banking is a highly profitable channel for financial institutions. It provides customers convenience and elasticity and can be provided at a lower cost than traditional branch banking (Williamson, 2006). The convenience of online banking is helping people gain greater control of their finances and contributing to changing patterns in cash withdrawal and day to day money management. (Beer, 2006)

Bank of Baroda is one of the leading commercial and retail banks of India, which increasing presence in foreign markets too.The bank holds a strong position in the Indian banking industry and witnessed a Y-o-Y growth of ~20% in its global business. The bank has been making continuous efforts to diversify its business and focus more on the areas like retail, MSME and agriculture credit. The bank holds a strong capital base too, with current Capital Adequacy Ratio standing at 12.28% under the BASEL III norms. The bank also saw a decline in its NPAs, although it is not quite sure that whether this trend is expected to be continued in future as well or not. Moreover, the bank’s management has stated the bank is going through the last phases of its restructuring programs, indicating that the

According to the most recent Federal Reserve study; most of us haven’t set foot in a banking hall in ages. It is a lost battle to banks that opt to use traditional methods to conduct their banking transactions (Gup 2003). By December of last year, close to half of all smartphone users in the United States had transacted some or all of their banking on their phones and iPhones. In the United Kingdom alone, rates of mobile banking transactions doubled over the course of a single year (Scn Education 2001). A banking business that invests in this type of technology gets assured of increasing their customer base.

As their name suggests, they only execute their operations online. Customers can only be in contact with their money over the internet since they do not have any physical branches. Because online-only banks require lower overhead costs, they have the capability to offer more free services and higher interest rates compared to a traditional bank. Online banking provides many customers the convenience of handling their business at any physical location as long as they have access to internet. This is possible because of the variety of services that online banks provide despite limiting interaction to only the internet. Some of their services include applying for loans online, transferring funds and paying bills online. While the convenience of being able to access banking through the internet is worthwhile, there are limits to it. For example, making large deposits to the bank is limited and can only be made through the mail, they don’t service cashier checks for transactions, and withdrawing money from the account is very inconvenient. Luckily, the role of the internet in financial transactions is becoming increasingly prominent so that spending money online is more accessible, but it is important to understand both the benefits as well as restraints of online banking. Nowadays, many large brick-and-mortar banks have caught on and provide some online services in attempts to

The multichannel banking customers connect with the bank through various channels - branch, mobile, online, call centre, ATM. However, the consumers don’t get the same service quality across all channels. Banks recommend their customers to use the channel that is the most cost effective. In most banks, the banking channel processes function in a silo. As a result, consumers are provided unwanted products or inefficient service via multiple channels. For e.g., a loan is provided via online/mobile and banking channels even if the consumer is not interested in the loan.

With the advance technology, banking has become a 24 hours a day and seven days a week ability. Not too long ago banks were only open from 9:00am to 3:00pm, workers and businesses rushing to get to the bank before they close. Paychecks were handed out personally not direct deposit, cashing or depositing a paycheck entailed a trip to the bank. Now most companies have direct deposit and the printed paycheck is becoming a thing of the past, this is only one example of how technology in banking has changed in society. The electronic banking (e-banking) can be described as the automated method of new and traditional banking services which reduce cost, and simplify front and backend process satisfying customers.

As banks pivot toward accommodating to the needs of their customers, it is important to understand how to

Bank of Baroda is one of the largest banks in India and ranks second in terms of number of customers after SBI. The bank offers a wide range of banking products and financial services to its retail and corporate customers through its branches, specialised subsidiaries, and affiliates. It has a number of credit options available for specific needs of customers with some of the popular ones being personal loan, home loan, reverse mortgage loan, etc.

As of December 31, 2014, bank bjb operated 62 branch offices, 312 Sub Branch Offices, 318 Cash Offices, 133 Payment Points, 11 Mobile Cash units and 1.191 ATMs. bank bjb has 4,873,020 depositing customers, consisting of retail customers 83.35%, corporate customers 7.89%, government customers 0.43% and institutional funding 8.32%.

One of the most important products and revenue generating product is a credit card. Bank of Baroda doesn’t provide any business credit cards. The bank is losing a lot of revenue when it comes to credit cards. The bank has the capability to quickly capture market share as most people in the UAE are Indians by nationality and they generally prefer a bank of Indian origin for their banking and credit purposes. Business credit cards of various banks has the following features:

According to the Gallup poll baby boomers make up the largest share of banking customers in the U.S, and are more likely to be wealthy business owners. Gallup’s 2013 study shows most baby boomers use online services frequently. The speed and convenience of online banking has appealed to every generation. Although people can do efficient banking online, there are still required needs that need to be done in financial centers. Getting a home or business loan requires going into a bank and working with a platform associate. Applying for a mortgage or getting financial advice are important tasks done with face to face interaction at bank branches. People expect this and technology can never replace having a personal meeting with banker. Also some people don’t trust their personal information being available online. Data theft and hackers accessing your

Today’s banking system very much gives us the hint about the banking system say 20 to 25 years from now. Digitization promises to automate and improve many banking processes. Yet it’s not without peril: customer demands and expectations are increasing, and technology is fuelling the emergence of significant new competitors. (www.mckinsey.com) Banking Transitions- Branch banks have historically been the front line of the customer relationship.

The last time that technology had a major impact in helping banks service their customers was with the introduction of the Internet banking. Internet Banking helped give the customer's anytime access to their banks. Customer's could check out their account details, get their bank statements, perform transactions like transferring money to other accounts and pay their bills sitting in the comfort of their homes and offices. However the biggest limitation of Internet banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like China and

A bank is a financial institution that provides banking and other financial services. By the term bank is generally understood an institution that holds a Banking Licenses. Banking licenses are granted by financial supervision authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so-called Non-bank. Banks are a subset of the financial services industry.

In order to make banking a pleasurin experience, most of the banks have now startd their 24*7 phone banking services, ATM Machines and Door Step Banking.