1. Banking Innovations

2. Introduction
Worldwide financial systems have undergone structural changes.
The global factors driving these changes have been advancements in technology and computing, external financial liberalization and organizational changes in corporate world.
Banking and finance in emerging economies has been no exception .
Structural shifts in these economies have been motivated by their country’s specific factors also including the macro economic pressures, disintermediation pressures and banking crisis of 1990.
Globalization of banking operations and expansion of financial activities as a result of technology advancements, in an increasingly market driven environment have redefined the business models and changed the way the banks used to do the banking business.

3. The banking industry has virtually seen a shift from brick and mortar banking to banking virtually across the time zones, geographical reach and alternative delivery channels.
Indian banking has also come a long way in absorption of technology such as installation of ALPMs, bank have moved fast to optimize IT resources.
Indian economy has recently been exhibiting signs of staying ahead of global activity.
Rapid globalization and increased competitiveness has forced banking innovations in diversified way.

4. Innovation Concept
It means the introduction or application of something new- either new goods and services or new ways of producing them.
Innovation differs from invention in one essential respect.
An invention is the discovery of something new, whereas an innovation is the actual introduction or application of something new.
It is an important factor responsible for country’s economic development.

5. Innovation in banking Revolution of financial services.
More competitive environment
speed up of modern technology.
Trends towards diversification by banks abroad.
The demand for diversified financial services was also created by structural changes that have taken place in Indian economy. such as
Share of the service sector increased.
The salaried middle class has risen fast and they are in the need of financial assets with higher income growth potential than usual commercial bank deposits.
The strategy of accelerating pace of development has been undertaken by giving an impetus to increased consumption of industrial products through tax concession and other means.
The industrial growth appears to be largely anchored to the consumption of needs of urban middle class which has emerged with much potential demand for the variety of financial services.

6. Innovative financial services
Such as-
Housing financer
Hire-purchase
Leasing
Merchant banking
Mutual funds
Consumer loans
Venture capital finance
Apart from that, we are experiencing computer revolution and other important innovations such as-
Certificates of deposits
Commercial paper
Cheques and credit cards.
Banks are active in-
1. Distributing shares, debentures, bonds.

7. The concept of retail banking
It is about providing banking services to individuals and joint individuals opposed to wholesale banking, which focuses on industry or institutional clients.
In retail banking, all the banking needs of individual customers are taken care of in an integrated manner.
Though retail banking is now encompasses all types of individual customers, often banks tend to focus on high net worth individuals.

8. Retail banking products and services
Deposits and advances
Major products offered under retail lending to suit various segments of customers like salaried persons, businessmen, traders, professionals, technocrats, pensioners, laborers etc are housing loans, personal loans, educational loans, vehicle loans, loan for consumer goods, credit & debit cards, global & international cards, loans for holidays, insurance products, gold loans, event loans, etc.
Products for depositors in various segments, like children, housewives, salaried class.

9. Banks are coming with more and more features to add value to retail banking products and services like-
Issuance of free ATM cards
Concession in commission for issuance of pay orders of demand drafts.
Free investment advisory services.
Issuance of free cheque books.
Demating of shares, debentures and bonds
Payment of utility bills like electricity, telephone and water bills on due dates.
Payment of monthly / quarterly education fees of children.
Payment of insurance premium on due dates.

10. Micro-financing
Plastic Smiles- Credit-Debit Cards
Eg- SBI and TATA group have introduced the TATA credit card. Card holders get the benefits from TATA group companies like TATA Motors, Titan, Tanishq, TATA AIG.
Thomas Cook has introduced a Global Money Card, the card allows one to withdraw cash in local currency from Global Visa ATMs and to pay for goods and services across the world.
A Jet Airways Citibank Gold Credit Card is complete travel card. Add-on cards for 5 members of family absolutely free.

11. Thank You.