Technology is changing the way the banks work. To compete with the emerging challenges, banks are innovating products to reach out to the customers directly. This article throws light on the different delivery channels employed by the banks to satisfy their customers. It also briefly discusses the pros and cons of product innovations and recent guidelines by the Reserve Bank of India on ATMs and credit card payments.

Of late, the banking business has become more competitive. Maintaining a good relationship with the customers is the success mantra. To increase the revenue income, banks are discovering new ways to satisfy their customers like giving first preference to the customer's satisfaction. Other customer service-oriented companies are also competing stand in the competition. Banks try to attract the customers by providing maximum services at less cost, with instant accessibility and affordability. Customers will be attracted by banks and then provide maximum services at less cost, with instant accessibility and affordability. These are possible with the help of technology. It captures the leadership in the market.

"Regulation and technological improvements are responsible for the vast majority of innovations in banking over the past quarter century. The introduction of personal computers and the proliferation of ATMs in the 1970s captured bank management's attention. The regulatory changes in the 1980s fueled much of the industry's growth, then downsizing as bankers focused on amassing market presence, which resulted in significant merger activity. Recent technological improvements are at the root of bankers' focus as well as a target for their significant investment dollars today. In fact, according to recent projections, bankers and their financial services company brethren will spend almost $7 bn this year on Customer Relationship Management (CRM) and increase that by 14% each year for the next several years." The understanding of the needs and changing trends in the banking sector leads to product innovations. To face the competition, every bank has to look out for innovative products.

Product Innovations in Banks, Customer Relationship Management, CRM, Automated Teller Machines, ATMs, Reserve Bank of India, Risk management, Information technology, IT, Banking and financial services sectors, E-Banking, ICICI, HDFC, HSBC.