Retail Banking is considered as one of the most innovative financial services offered by various banking institutions. It is also known as consumer banking or personal banking- the visible face of banking which enables customers manage their money by giving them access to basic banking services, credit and financial advice. There is a growing demand for term deposits, consumer durable loans, auto loans, debit card, credit cards, ATM facilities, insurance, online banking, etc. Further, technology has made it possible to deliver services throughout the branch banking network, providing instant updates to checking accounts and rapid movement of money. Retail lending has contributed to the development of the economy and has also received a thrust from the regulator’s/policymakers’ push for inclusive growth. In the current age, one of the most important pre-requisites for retail banking is that the banks should be able to deliver the products and services to the customers in safe, secure, prompt and cost effective manner by leveraging technology. The other essential pre-condition is appropriateness of product and services for the customers and lastly, pricing of the products and services.

While retail banking offers phenomenal opportunities for growth, the challenges are equally daunting. Retail banks at times have to market their products aggressively and be aligned to the dynamic and varied financial ecosystem. The challenge is to design and innovate products to cater to the needs of the target segment. This requires devising products that is easy to understand and at the same time meet the financial goals of the customers. Retention of customers is more difficult in this competitive environment. Customer retention favourably affects profitability. Further, ensuring customer protection through transparent and appropriate pricing of product and services, curbing mis-selling, KYC compliance, protection of customer data/privacy, protection from cybercrimes, non- performing assets and indebtedness are some of the challenges that retail banks have to counter simultaneously.

There is a need of constant innovation in retail banking. The impetus for this change has come from both within the banks and from consumers who are demanding greater control and convenience over banking transactions. Customers are increasingly looking for `anytime, anywhere banking'.

At ICICI Bank our sustained leadership position with a strong retail banking franchise, financial performance, accelerated digital transformation and customer centric approach during the COVID-19 pandemic made us achieve the “Best Retail Bank in India” at The International Excellence in Retail Financial Services Awards 2020. Further the Bank has launched ‘ICICIStack’, a comprehensive digital infrastructure facilitating digital banking to crores of retail customers, merchants, retailers, professionals, fintechs, start-ups, e-commerce players and corporates.

The current issue of iKomply is a special edition on Retail Banking. Hope you find the issue informative!