India is the second largest developing economy in the world and the banking sector has a greater role to play in the socioeconomic development of our country. Increased customer expectations, global competition and technology have brought about remarkable changes in the banking sector. This article aims at bringing out the change management, process changes and the paradigm shift that is happening in the banking sector.
Banks are more proactive than ever before in providing the services to their customers. They are guiding the society as to how to earn and spend money thus becoming more catalystic in the socioeconomic development of our country. They are encouraging people to invest money in business and real estate for their economic growth. Housing loans are offered at incredible speeds these days. Banks are carrying out Strategy Weaknesses Opportunities Threats (SWOT) Analysis to become more profitable by bringing in structural changes, process changes, technology upgrades and systemic changes. Procedural delays and bureaucracy have been removed and lean staffing is practised.
Acquisitions and mergers are among the strategies banks are adopting now-a-days. They are expanding their business and looking at large market share to achieve higher Return on Equity (RoE) and interest margins. Decision-makers are identifying the banks performing well and fixing higher targets. More empowerment and facilities are also given to such banks. In other banks too the performance levels are being raised by constant monitoring and reviews.
Organizational structure in the banks is being changed to suit the technological and process changes. The duties, responsibilities and the method of doing the tasks are redefined. New skills are imparted to the employees—particularly computer skills, data base management and software tools use in the banking operations. The ledger/record books are giving way to the computer-based accounting and documentation system. Though there are differences in pay across the public/private sector banks, the employees are well taken care of in this respect. Work environment, safety and health are given top priority. Organizational goals are set in consultation with the employees. The layout, seating and ergonomics have been changed in the banks due to the automation and computerization. The Voluntary Retirement Scheme has not yielded good results as able people utilized the scheme and got the benefits. |
