08-05-2012, 05:11 PM
INNOVATIVE PRACTICES IN BANKING SECTOR
ABSTRACT
Creativity is the ability to think a new idea. Innovation is the process by which the new idea is put into practice. The word itself gets used all the time in the news, in press releases made by governments and universities and in company boardrooms around the world – innovation, innovation, innovation! Not surprisingly, it can bring to mind a variety of meanings depending on the context.
Innovation derives organization to grow, prosper & transform in sync with the changes in the environment, both internal & external. Banking is no exception to this. In fact, this sector has witnessed radical transformation of late, based on many innovations in products, processes, services, systems, business models, technology, governance & regulation. A liberalized & globalized financial infrastructure has provided had provided an additional impetus to this gigantic effort.
The scene in the Indian Banking industry is changing; the various global economies have started showing signs of revival leaving behind them the worst recessionary phase and moving towards growth. The Prime Minister of India, during the recent platinum jubilee celebrations of Reserve Bank of India, has encouraged Banks to be more innovative.
Over the years, the banking sector in India has seen a number of changes. Most of the banks have begun to take an innovative approach towards banking with the objective of creating more value for customers.
Today, we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system.