Data warehousing is an emerging technique of database management, which can act as a strategic differentiator for data intensive sectors like retail banking. The article explains the concept of data warehousing and points out the areas in retail banking which can be most benefitted from it. The article also proposes data warehouse architecture to support retail banking activity. Finally, critical issues related to management of the data warehouse which will affect the usefulness and functioning of the bank have been discussed. The article concludes with a futuristic outlook of data warehousing.
The business environment in the new millennium accentuates change. Retail banking as we know, is no exception to this rule. Organizations that will survive and flourish in this millennium are the ones which are able to analyze, plan and respond to changing business conditions in a much more rapid fashion. In India, retail banking has taken a myriad change, from limited number of service branches situated in district headquarters, it has grown to over 30,000 bank offices operating across the country. Similarly, the offered services have also undergone a vast change. ATMs, telephone banking, Internet banking, core banking and personalized services are giving way to fluorescent lit halls, chained entrances and serried ranks of cashiers.
With international banks breathing down the neck of Indian banks, the state of `blissful indifference' that the Indian banks had enjoyed might be coming to an end. From being an organization which `Sells services to the customer', it has to be an organization which `delivers services as per the customers needs'. For materializing this paradigm shift, bankers in India need to have a deeper insight in to their customers needs and also continuously monitor the change in their need pattern. |
