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.


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