Innovations in Banking Services for Sustainability - Perspective and Challenges

Abstract

"If there is one aspect in which we can confidently assert that India is ahead of China, it is the robustness and soundness of our banking system." - Dr. Manmohan Singh Over the last three decades the role of banking in the process of financial intermediation has been undergoing a profound transfonnation in the global financial system. India's banking system has seen some major innovations in the past decade like IMPS, CTS, NUUP, face book banking, responsible banking, green banking, SMS banking, missed call banking and many more value added services. In increasingly integrated financial systems facing more competition, higher volatilities and wide varieties ofrisks; innovations have become an essence to provide new products and strategies to better suit different circumstances of time and market and to meet different requirements of participants. This research paper focuses on different service and technology innovations in Indian banking sector in recent days. It also highlights the challenges of innovative banking trends. Total five banks are selected as sample namely State Bank oflndia, Bank of Baroda, Punjab National Bank, ICICI Bank and YES Bank. 4P's Service Innovation model & Six Dimensional Service Innovation Model are applied on the current strategies of service innovation adopted by selected banks. The present study concludes that despite of numerous challenges faced by banks, the benefits of technology have brought a huge change in the outlook of modem banking