In recent years
there has also been considerable change in the functioning of banks. There has
been an increase in the amount of technology used by these institutions e.g.
some banks use cash dispensers and offer twenty four hours cash withdrawal
facility, instant account details and money transfer through computer network.
Because of much more competition in the
banking sector, services have to be sold in ways never done earlier.
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Today, customers do all their banking
transactions while sitting at home.
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Banks are introducing Automatic Teller Machine
(ATM) cards.
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Debit and credit cards are used as well.
This promises to
change the face of banking forever.
LIBERALIZATION
There is a growing
need for banking facilities due to nationwide growth, international trade and
industrial liberalization which have all contributed to changes in the banking
environment.
DIVERSIFYING THE PRIORITIES OF BANKS
From the regular
banking operation, termed as ‘House Keeping’, balancing of books and
reconciliation of inter-branch and intra-branch entries of simple money
transaction, commercial banks are diversifying their priorities.
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New financial institutions like merchant banks,
leasing companies, mutual funds and venture capital companies have come into
existence.
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Commercial banks too have joined the hub of
capital market activities.
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There has been a transformation in the services
offered by banks and this has led to considerable change in the type of
manpower recruited.
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With demand of profit, in the banking industry,
particularly in the international banking sector the total concept of seniority
and promotion has been changed.
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In this scenario pay scales have gone up and the
number of employees has gone down.
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Banks have set right their organizational
structure for efficient services.
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Computers have taken over and recruitment
pattern has been favorable to more technical manpower.
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Management graduates, Chartered Accountants,
Chartered Financial Analysts are hence in greater demand in the banking sector.
Presently, emphasis is on specialization and diversification.
To cater to the needs of a growing industry for marketing its shares and
debentures, public sector banks and financial institutions have started their
own Merchant Banking divisions. Many industrial houses too have started their
own Merchant Banking, companies, acting as lead managers for public issues of
shares and debentures, e.g. Times Guarantee, Tata Finance etc.
