Answer to Question #200119 in Management for Peter Masih

Question

Bank Conventional Limited” is a well-established traditional Retail Bank operating in

India and is almost a 75-year-old Bank. It relied very heavily on its strength of physical

distribution of about 1000 branches across in the country. Over the last 10 years this

Bank did not invest much on Technology. On the other hand, a new generation bank

called “Bank Modern Limited” has always been tech savvy with substantial investment

every year on new technology etc., This Bank was started in 2010 and currently has a

branch network of 100 Branches only.

a. Analyze the various challenges that ‘Bank Conventional Limited’ will be facing today

across multiple operational and business parameters (5 Marks)

b. Analyze the various benefits that ‘Bank Modern Limited’ enjoy today across multiple

operational and business parameters

Answer 1

(a)Traditional banks are financial institutions that hold the money that their clients deposit in trust for them, and then utilize that money to lend to individuals and businesses at a profit. The central bank makes money by issuing money. This is the type of business activity that has traditionally been associated with banking. Conventional bank will experience challenges in retail banking and transformation such as digital payment.

(b)The following are some of the numerous advantages that ‘Bank Modern Limited' now enjoys across a variety of operational and business parameters:

Banking is now much faster and more efficient than it was previously. Maintaining and retrieving processes and procedures has become considerably faster and easy. Computerized banking also benefits the central banking system.