With global interest rates at its lowest,
the bank’s profit margins are down. There is a resurgence of interest
in retail banking which is being regarded as a strong potential source
of revenue growth. The main factor that is driving this is the fact that
it provides a stable revenue stream compared to wholesale banking and
securities. To succeed, banks need to build an emotional bond and
long-term relationship with their customers through improved services.
The form that product innovation is taking within banks is in building
relationship products that consist of a range of “component”
products such as checking, various forms of credit, investment options
etc. These products are creating relationship platforms that enable the
banks to build a new and highly segmented economic equation for
customers with varying characteristics. The broader the range of
component products, the greater the flexibility the bank has in
customizing an economic equation. However, with increasing number of
components, comes the greater complexity of pricing, delivering and
servicing the product bundle being offered.
With increased competition in the banking Industry, the net interest
margin of banks has come down over the last one decade. Liberalization
with Globalization will see the spreads narrowing further to 1-1.5% as
in the case of banks operating in developed countries. Banks will look
for fee-based income to fill the gap in interest income. Product
innovations and process re-engineering will be the order of the day
Based on the understanding of the bank’s requirement for product
innovation and systems to support these innovations, the following
solutions from UshaComm can be utilized by the banks to deliver a
flexible relationship platform. These solutions can be deployed as
adjunct systems with the core banking systems :
►
Packaging
►
Usage Rating – for transaction
pricing and simulations
►
Bulk Rating
►
Real Time Rating – for
securities
►
Discounting – including volume based
discounting and unit credits (includes loyalty and bonus points, cross
product discounts etc)
►
Billing – calculation of
recurring and non-recurring charges, taxes etc.
►
Inventory and Work Flow – for
credit and debit card management
►
Mediation – for service
provisioning of customers on the ATM
►
Interfacer – to enable
interface to the external CRM / Core banking system
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