Answer to Question #200321 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.) Banks are an essential and prominent part of the financial systems in a country. The banking industry manages the finances of a nation on cash and credit terms. Banks are the cooperate bodies that allow deposits, withdrawals and give credit to organizations that contribute to maintaining the country’s economic structure and stability. Retail banking is a type of banking that is also known as consumer banking. An example of a retail banking system is Bank Conventional Limited. Bank conventional limited is a retail banking system in India that regulates the cash their customers deposit through safekeeping. The bank uses that money deposited to give loans to their customers and organizations and returns it with interest. On the other hand, the central bank provides the bank with the money and earns a profit. Generally, this is referred to as commercial activity, which has been dedicated to banking (Mittal, Gera, and Batra, 1).

The central bank issues the money and makes a profit which is generally the commercial activity devoted to banking. The bank conventional limited is a traditional form of banking that will need to improve its systems to the automated era in which we live. These banks need advanced technological systems to ensure that flow of money in and out of their designs is well accounted for, and there is a low risk of inconveniences in their systems. With the growth of technology that ensures the smooth running of operations and provides security, people will tend to choose the best bank that will keep their money safe at all times.

b.) There are various benefits that Bank Modern Limited has across multiple operational and business parameters in that banking has become as fast and effective as before. Operations and procedures are carried out within a short period, and they have become easier to maintain and recover. Compared to the traditional form of banking, many people prefer the modern type of banking as operations are carried out within a short period, and one can follow through with their transaction history or bank balance at the convenience of their mobile devices. Central banking carries out its procedures through computerized banking. Therefore, their operations are carried out smoothly, the risk of mistakes being made is eliminated, and overloading work to employees is also eliminated, thereby ensuring efficiency in the banking systems.

The banks provide the most convenient and safest place a person can keep his money. Banks get robbed, but people tend to save their money in banks because most countries are insured. The bank modern limited is a convenient banking system that provides services to organizations related to their finance. They can access their money in the banks at any time and anywhere with an ARM card. The bank modern limited has the latest technology and has eliminated the need to go to a branch to pay bills or check their existing balance. With the growth of technology, banking systems have advanced to meet customers’ and organizations’ financial needs. This type of banking system provides its customers with a variety of services such as private services, customers can save their money and keep track of it in their accounts, they provide loans, serve as retirement accounts, and they offer opportunities for investments (Mittal, Gera, and Batra, 1).

Work Cited

Sanjiv Mittal, Rajat Gera, and Dharminder Kumar Batra. An evaluation of an integrated perspective of perceived service quality for retail banking services in India. International Journal of Bank Marketing, 2015.