Factors responsible for the Changes in Financial services
Globalization of Indian Economy has made the whole economy open, which has more multinational player in the era of the financial services?
This has resulted in to the emergence of the global investment in financial sector.
Government has now open up the doors of investments especially in the area of banks and insurance, which leads to competitive environment for the present players.
Now they have to bring something new which is efficient and best services to live in the competitive environment.
Competition arising out of Private Company Participation is due to the liberalization of the economy.
Now along with the public/government players, private players are also offering financial services and instruments, which are more innovative and different than the earlier offering.
All around, there is a fresh thinking on the financial products, structure of banking and insurance instruments with value creation. Financial markets are being redefined, reinvented and reconfigured on a persistent basis.
Changing Customer Demographics:
If we look at the all-growing economies like China, Germany and Brazil, India has 35% of the population in the age group of 15years to 34 years.
It is estimated that by 130mn plus people get added to working population by 2009 with 55 million families (320 million people) will be added in the middle-income group (0.1 to 0.3 Million Rs).
The demographic change leads to the change in the need of the customer.
Changing Customer Needs
customers have larger segment in corporate decision-making they are the final judges of the every single activity offered by the marketer.
Banks in India have traditionally offered mass banking products. Financial market has turned into a buyer's market. Market focus is shifting from mass banking products to class banking with introduction of value added products.
Today, financial institutions are co-designing the products/services with their customers and striving to provide them with global solutions
Technology Improvements
Technology is also helping market players redefine the way they have been operating in the market.
In today's time it becomes vary easy for a customer to transfer a fund from one location to another location with CLICK of Mouse.
Availability of the concepts like phone banking, anytime banking etc. has become possible because of the technological developments only.
Government Reforms
Government is major decision player in the financial market.
It decides the proportion of the investment limits as well as the regulation and control. In last ten years government is designing its policy with more liberal and competitive content. Which it are welcome trends for the emerging financial services.
Heightened focus on customer relations the bank of the future has to be essentially a marketing organization that also sells banking products. New distribution channels are being used; more & more banks are outsourcing services like disbursement and servicing of consumer loans, Credit card business.
Direct Selling Agents (DSAs) of various Banks go out and sell their products. They make house calls to get the application form filled in properly and also take your passport-sized photo.
Globalization of Indian Economy has made the whole economy open, which has more multinational player in the era of the financial services?
This has resulted in to the emergence of the global investment in financial sector.
Government has now open up the doors of investments especially in the area of banks and insurance, which leads to competitive environment for the present players.
Now they have to bring something new which is efficient and best services to live in the competitive environment.
Competition arising out of Private Company Participation is due to the liberalization of the economy.
Now along with the public/government players, private players are also offering financial services and instruments, which are more innovative and different than the earlier offering.
All around, there is a fresh thinking on the financial products, structure of banking and insurance instruments with value creation. Financial markets are being redefined, reinvented and reconfigured on a persistent basis.
Changing Customer Demographics:
If we look at the all-growing economies like China, Germany and Brazil, India has 35% of the population in the age group of 15years to 34 years.
It is estimated that by 130mn plus people get added to working population by 2009 with 55 million families (320 million people) will be added in the middle-income group (0.1 to 0.3 Million Rs).
The demographic change leads to the change in the need of the customer.
Changing Customer Needs
customers have larger segment in corporate decision-making they are the final judges of the every single activity offered by the marketer.
Banks in India have traditionally offered mass banking products. Financial market has turned into a buyer's market. Market focus is shifting from mass banking products to class banking with introduction of value added products.
Today, financial institutions are co-designing the products/services with their customers and striving to provide them with global solutions
Technology Improvements
Technology is also helping market players redefine the way they have been operating in the market.
In today's time it becomes vary easy for a customer to transfer a fund from one location to another location with CLICK of Mouse.
Availability of the concepts like phone banking, anytime banking etc. has become possible because of the technological developments only.
Government Reforms
Government is major decision player in the financial market.
It decides the proportion of the investment limits as well as the regulation and control. In last ten years government is designing its policy with more liberal and competitive content. Which it are welcome trends for the emerging financial services.
Heightened focus on customer relations the bank of the future has to be essentially a marketing organization that also sells banking products. New distribution channels are being used; more & more banks are outsourcing services like disbursement and servicing of consumer loans, Credit card business.
Direct Selling Agents (DSAs) of various Banks go out and sell their products. They make house calls to get the application form filled in properly and also take your passport-sized photo.