“Don’t bite the hand that feeds you”--- Branch Banking .....

Retail banking is important segment of Banking. Branch Banking (BB) is important part of retail banking but Indian banking are biting this important segment through conservative modus operandi and nasty strategy. 

No innovative idea to direct this segment. They are making different channels to source Current Account CA & Saving Account SA. 

All leading banks-

,- Make similar features of product 

,- Approximately service and technology are same. Little difference are lying which doesn’t impacts on quality.

,- Modus Operandi are same.

,- Little % of new customers in branch banking. Major chunks are existing customers. They are moving from here to there.

,- Attrition rate is very high in BB due to high pressure to sale CASA and cross sale.

,- Giving high pressure in Hierarchy from top to bottom to sale CA & SA. In these segment shouting and humiliation is key instrument.

,- Liability risk is high when everyone chasing numbers in CASA and cross sale.

,-Mismanagement of Branch staff, Banking product and Cross sales are the reason of mismanagement. Branch Manger giving pressure to all staff including operational staff, including teller(who manage cash of branch with low salary, sometime they lost cash sometime lost more than monthly salary) due to sales pressure.

What could be solution...........................

,- Branch Manager term is deteriorating day by day. So,I think it should be vanish. Machine should be lying for cash, cheque book and other services in branches.Now we are moving in Artificial intelligence (AI) era. AI is sufficient to provide fast and exact service to customers.

,- Digitally Banking can help out in this way.

,- Bank should focus in payment services. They should invest in this area because this can shift customers from BB to digital banking 

,-API (Application program interface ) is changing day by day. It is being strong day by day. This make easy to make gateway for payments. I don’t know if any bank have own gateway except HDFC Bank. 

,- Who are driving fast digital banking. Who will win, which speed is very fast. But it is very important, This banking bear high risk. So, Bank should strengthen risk part. Every a/c or any product which sourced by digitally should check from risk department before on boarding to Bank.

,- No compromise with Risk and Compliance part in digital banking.

,- Operation and service of branches should be Centralized.

,- Digital sales can give prosperity to Bank. 

If above will be , sure cost would decrease in big way. So,feature of minimum balance will not exist. Every customers are existing only basis good service, strong operating system and excellent features of product. 

,- Banks will focus on banking product rather than cross sales. Cross sales can destroy banking.

,- Need of hour to shift from traditional banking to innovative banking. We are not doing well in bond market.

,- Sales should focus to acquire good and new customers only. 

,- Training and Compliance should be key part of sales.

,- Bubbles are lying in every bank. They are not capable to identify and remove this bubble. If it will be big then we lost huge amount. 

,- Branches have only hard core sales segment which drive themselves, whose force to acquire good customers. Hierarchy should be less in this segment. Sales is not responsible for any other responsibility except quality sourcing and service.

But it is sad leaders are not in this way. The way which drive by current leaders can destroy BB. So, I can select title

“Don’t  bite  the  hand  that  feeds  you”