Banks’ Focus on Solemn Service (India centric) – Second Requirement.
Traditionally Banks have been performing the chief function of keeping, lending, and exchange of Money – in effect a sort of a money-box for the savings of individuals. With the change in times, population growth, growth of economy banks also grew in numbers, size, products offered, and the technology adopted. Concurrent with these changes popped the risk which, over time, assumed proportions out of the common course with the normal/nature. Result : Enlargement of functions like Investment which posed newer challenges, unforeseen failures, customer miseries, need for newer strategies to combat risks and above all the impact on National Economy affecting the quality of life of the citizenry. Effectively met with expansion of money, though preposterously, at times. Have we lost track ? Is this an abnormality ? Have we been straying with thoughts and actions not in tune with the times and need? Is this what will make our citizens satisfied ? Questions strongly debated by the concerned authorities and the public at large.
What is at threat is probably the “LOSS OF FOCUS” and the “NEED TO PRESERVE” the Rule Books, The sanctum sanctorum of Banking Activity. This is the ‘Second Requirement’.
A preliminary survey by a student revealed that Bank executives are more optimistic about the Nation’s economy as a whole than their own organizations’ prospects. The challenges are twofold : 1. Banks need to raise their visibility and at the same time focus/perform better on Innovation(s) to stay afloat in this competitive environment and to meet the expectations of the aspiring customers. 2. Some banks do well with new products & services ( and innovation ) while some remain contented with nurturing the existing lines of products/services.
The decision to choose the right option will hinge on whether the bank is comfortable being small, medium or big. We have already witnessed a shift from the days of the Mega Public Sector Banks (60s to 80s) to a mix of Big Public and Private Banks (90s to ’00s). The future to me will lie in SMALL/MEDIUM BANKS ( from 2015 onwards ). In the process we will also be witness to a consolidation of some/many of the small/less performing banks. Banks, overall, and specially the Private/Big ones will not find leveraging easier in such an environment.
The above two factors – (a) raising the visibility and reputation of banks; and (b) Growth in small/medium sized banks (with new banks/branches in the offing) – will compel the Banks to FOCUS on the following imminently : 1. Open new door(s) and ideas prudently; 2. Bring fresh experience; 3. Create excitement in the lives of citizens;
These actions can heal the past misdeeds/missteps of any bank caught in the whirl; can stimulate new thinking; and can even surprise the World (India’s pride).
Smaller Banks will be sharply defined and be without any catch; They will display Solemn service; They may not indulge in trade beyond abilities and resources; they can be expected to be highly transparent, specially in their balance sheets; they may better secure and safeguard capital.
How banks will react to the threat of competition as new players tread rapidly ( forcibly and roughly as well !! ) their turf will ultimately depend on how the banks maintain their standards well refining their FOCUS.
The Human Mind treats any new idea the same way body reacts to a new (strange) protein. Banks ! Reject or Embrace it !!!
” Dieu avec nous “
Monday, November 18, 2013 – 8.01 a.m.
Tidbit : ” Victory at all costs; Victory inspite of all terror; Victory, however long and hard the road may be.” – Winston Churchill about British aims in WW II.
Instructive words for the Banks too in these demanding times.