Withchanging times, the banking sector in India too observed a sea change. Frompeople frequenting banks just to deposit money to the age of buildingrelationships rather than just customers has become the new norm. This has alsoopened new avenues of growth for the banking industry. From branch banking tointernet banking and now to mobile banking, the industry has surely come of age.

the reason for this can be widely attributed to the socio-economicchanges happening widely in India due to economic liberalisation. according tothe Technical Group on Population Projections constituted by the NationalCommission on Population, may 2006, in India the proportion of population in theworking age group of 15-64 years will increase to 68.4 per cent in 2026. Thisclearly shows a mass of bankable customer and as they grow up in the careerladder, the need to manage their finances will increase. Looking at this growingset of customers, all major banks have taken the route of next- generationbanking. to build a steady relationship, they are now offering life-cycle wiseproducts. Saving plans are available from the moment a child is born. Then thereare loan and insurance schemes to fulfil their educational, health or other suchneeds for a secure future. Banks are also providing guidance on wealthmanagement and customized products to suit individual needs.

Amajor breakthrough in banking services has come in the form of internet bankingand mobile banking. Banks have realised that the customers today need aconvenient and secure way to manage their finances. Internet banking hasprovided the freedom of 24×7 banking to the customers. now from getting yourphone recharged to booking tickets for movie or a journey to taking loans, allis possible with a click of a button. With no additional cost and easyaccessibility, the medium is fast taking over the traditional mode of banking.”In this busy age nobody has the time to stand in lines to pay bills or checkaccount balance. Internet banking has come as a boon for this generation thatwants everything at a moment’s notice. I have just bought a car and the loanformalities were fulfilled sitting in my office through net only. Not only didit save time, I didn’t have to take leave from my office as well,” sharedNamrata Oberoi, a management consultant. With strict security procedures andpassword-protected identity-checking service, online transactions have becomequite safe and secured.

the usage of credit and debit cards has alsoseen a major increase among the younger segment of customers. according to arecent study, the average age of credit card holders has come down to 27 yearsfrom 45 in a span of just two to three years. though this sounds like a goodnews for the banks, they are making sure that it doesn’t cause a problem in thefuture. to ensure proper return of their debt, banks have come out withcustomer-friendly education material which helps the customer take soundfinancial decisions.