HERALD FEATURES
With geographical area of 3,702 square kilometers, Goa has a well knit banking system with close to 700 banking offices operating in the state. Though commercial and nationalized banks have entered in rural areas, the co-operative banks still continue to enjoy an important place in rural credit scenario. Presently, there is a bank branch for approximately every 2100 people in Goa, taking into account the population of the state as per the 2011 census.
The adoption of technology has made it mandatory for co-operative banks to re-engineer processes, network branches, and introduce alternate delivery channels such as internet banking, SMS alerts, mobile banking and phone banking, data warehousing and data mining, customer relationship management, integrated treasury management, human resource management and implementation of CBS (Core Banking Solutions).
Co-operative banks in Goa have already initiated the re-engineering process in order to integrate banking needs with technology, which will enable them to compete with commercial and nationalized banks going forward. ATM is the most preferred virtual banking technique used by the customers for cash withdrawal, balance enquiry and other services. A well designed web site with detailed product information and net banking facility can go a long way in enhancing business potential. We can expect all co-operative banks in Goa to either set up their own ATM Networks or tie up with SCB’s for launching ATM services going forward which is the need of the hour.
New private sector banks and nationalized banks are providing very good services to their customers; as a result their growth rate in advances, deposits, investments and profits is very high. Having a greater understanding of customers enables banks to introduce new products which cater to the needs of customers in a better way. Co-operative banks need to focus more on the aspect of product innovation and customer service which will enable them to increase their business share as well as retain existing clients as customer retention has gained a lot of significance in modern day banking. Cross selling of financial products to increase fee based income can also boost the profitability of co-operative banks.
