HDFC Bank

Banking:nnIn present times, Internet banking has no alternatives. Indian banking is gradually getting more and more access of Internet banking. Thus, Internet banking would drive us into an age of creative destruction due to non-physical exchange; complete transparency is also giving rise to perfectly electronic market place and customer supremacy.nnAt this moment, the question may be asked “what the Indian Banks should do under the present circumstances?” Whatever is the strategy chosen and options adopted, certain key parameters would largely determine the success of banks on web.nnIn order to attain long term success, in respect of Internet banking, a bank may follow:nn(i) Adopting a webs mindset.nn(ii) Catching on the first mover’s advantage.nn(iii) Recognising the core competencies.nn(iv) Enabling handling multiplicity with simplicity.nn(v) Initiating senior management to transform the organisation from inward to outward looking.nn(vi) Aligning roles and value propositions with customers segments.nn(vii) Redesigning optimal channel port-folio.nn(viii) Acquiring new capabilities through strategic alliances.nnHowever, the above mentioned steps can be implemented by following four steps mentioned below:nn(i) In the first phase, the customer be familiarized to new environment by demo version of software on banks, website. This will enable users to give suggestions for improvements, which can be incorporated in its later versions wherever possible.nn(ii) The second phase provides various services such as account information and balances, statement of account, transaction tracking, mail box, check book issue, stop payment, financial and customized information.nn(iii) The third phase may include additional multi-utility services like fund transfers, DD issue, standing instructions, opening fixed deposits and intimation of loss of ATM cards.nn(iv) The final phase should include advanced corporate banking services like third party payments, utility bill payments, establishment of L/Cs, Cash Management Services etc. Enhanced plan for the customers in future may include requests for demand drafts and pay orders and many more to bring in the ultimate in banking convenience.nnThus by following the above mentioned strategies, it will help banks to translate their traditional business model into a Internet banking one, falling into the following three main categories:nn(i) One-stop shop.nn(ii) Virtual one stop shop.nn(iii) Best of Breed Supplier.nnThus by following the above steps, the Indian bankers can pave the way for the successful introduction and popularizing the new concept of Internet banking on a large scale.

Good