BFSI VISION | Alternate Channels


UN Maiya

Former DGM, Canara Bank

Providing solutions for Alternate banking

Educating the Customer
  • There should be a dedicated Mobile- Customer Relationship Executive@ E-lounge/Branches to guide/help the customer for using pass book printing/cash& cheque depositing/online submission of application/transfer of funds etc.
  • Extensive Advertisement through TV channels, social media, regional & national newspaper etc.
  • Banks should extensively visit educational institution & conduct seminars to encourage students to guide/teach their parents/neighbors regarding use of Alternate Channels. Students may be suitably encouraged.
  • All the Alternate channels should be backed by Robust Hardware/software to provide hassle free/ risk free transaction with speed & precision. It is advisable that there should be uniform system/process/steps among all banks for similar transaction.
  • Should have effective desk for 24/7 customer readdressal mechanism
  • Before starting any Alternate channels, there should be intense interaction with cross section of customers regarding their views/needs.
  • College students assistance can be enlisted under "Earn while you Learn" programs for knowledge transfer & guidance in cities, districts, taluks & rural areas.

Justification for ATM usage fee
  • There should be a cap for free transaction.
  • Bank anyway has to incur considerable cost to provide cash/other services if customer visits the branch.
    ie staff/space/infrastructures etc.
  • There must be a scientific cost benefit analysis by experts once in 2 years before taking a decision. There must be a uniform levying of charges among all banks to have level playing field.

Issues occurring in the acceptance of Alternate Channels
  • Constant education of customers/knowledge transfer.
  • Applying reward & punishment concepts.
  • Lack of robust complaint-readdress mechanism.
  • Knowledge gap& risk involving Alternate Channels not effectively addressed.

Acceptance level of Alternate Channels by rural customers
Bio metric ATM with local language instruction-connect with Adhar-Card may increase the confidence effective publicity/knowledge transfer is a MUST.