With the advent of new generation banks in mid-1990s followed by the technological innovations such as Automated Teller Machines (ATMs), Internet banking, phone banking there is a sea change in the banking system. Today, bankers are asked to play the role of a salesman peddling various products and services across the entire financial spectrum. Competition has compelled the banks to create some sort of a marketing structure. This article takes a look at this interesting phenomenon.

If one takes a walk back into the 1980s, he will find that banks typically used to be brick-and- mortar outlets. Added to this was the fact that banks (most of them) had a common owner, namely the government, and competition was virtually non-existent. All these factors led to a complacent situation and indifferent levels of service. Even the awareness of the products and services offered by the banks was low among their employees. There was hardly any concept called product or service innovation among the banks. The government-initiated reforms in the banking sector during the mid-1990s saw the emergence of new generation banks. These banks from day one started with Core Banking Solutions (CBS), where transactions can be carried out at any branch within the country and one can become the customer of a bank rather than a branch. These banks started setting up new service delivery channels like ATMs throughout the country. The nationalized banks, seeing their market shares getting reduced, then took up computerization in a big way for offering CBS.

The new generation banks began their operations with clear structured packages for every segment. If you are a businessman, you get a current account with a determined set of benefits. Similarly, if you are an employee, you get a different set of benefits. Corporates are given a separate bundle of benefits.

Professional Banker Magazine, Marketing Structures of Banks, Technological Innovations, Automated Teller Machines, ATMs, Internet Banking, Phone Banking, Banking System, Banking Sector, Core Banking Solutions, CBS, Financial Services, Insurance Regulatory and Development Authority, IRDA, Mutual Funds.