The process of transformation of
Public Sector Banks (PSBs) was
led by the onset of technology. Further, the deluge of hybrid
financial products, increased competition from peer banks, integration of
financial markets, and changing customer expectations accelerated the process.
These developments could bring about a qualitative change in the banking
services. Many banks, having moved to the core banking platform, could offer
global standards of customized services to customers. Thus, the era of
technology-driven banking environment could prompt innovation, enhance
customer satisfaction and the need to win customer loyalty. With the fusion of
technology, the features of asset/liability products could be reengineered close
to the consumer aspirations, providing better value. The gradual process
of modernization of bank branches began to change the working
environment, making it more conducive for the employees to deliver quality service
with much more commitment. The spirit to compete with peer group of
banks brought radical changes in the perceptions and attitudes of the employees.
Many branches of PSBs are now seen sporting a new look with
modern infrastructure and glossy interiors, competing with their private
sector peers. The transformation of PSBs, more particularly in the last
decade, has been more conspicuous with several customer-centric initiatives.
The spread of banking system has widened fast. Banking sector reforms have
led the transformation with a combination of measures. The strength and
soundness of PSBs have improved.
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