Banks are increasingly prioritizing value-added services linked to customer accounts to mobilize deposits, said State Bank of India (SBI) Chairman C S Setty on Wednesday.
Moving beyond traditional transactional accounts, they are embracing a more holistic service model as far as deposit accounts are concerned, Setty explained.
Speaking at the Business Standard BFSI Insight Summit, the chairman of India's largest bank said that traditionally, a savings account is seen primarily as a transactional vehicle, with less emphasis on enhancing customer engagement.
"Today, all of us are focusing on deposit mobilization, which in a way that the customer started gaining the attention from a point of view that the value-added services, which are linked to his account, have gone up," he said.
"Otherwise, a savings account, which is open, is basically a transactional account. And as long as the transactions were there, nobody really bothered about it," he added.
"But today, every one of us is thinking in terms of providing value-added services to our customers, in a much better manner. It's not that the customer service was faulty or people (banks) were not bothered about the customers, but they are gaining much more attention than what else we can do for the depositors," he explained.
Setty also said mutual funds and deposits are not competing products but are complementary ones.
This story is from the November 07, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 07, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Bajaj Finance a hot pick after strong Q3 showing
Stock reclaims Mt 8K intraday after 15 mths
Samara-backed SMT, More Retail gear up for listing
Sahajanand Medical Technologies (SMT), an Indian cardiovascular device maker backed by private equity firm Samara Capital, is preparing for an initial public offering (IPO) worth around ₹1,500 crore, said two top executives of Samara.
Maha Kumbh stampede: Crowd management efforts ramped up
Millions of devotees flocked to the Triveni Sangam and other ghats at the Maha Kumbh to take a dip on Thursday with the Uttar Pradesh government ramping up efforts to ensure crowd management and safety of people a day after the stampede tragedy.
May Consider Applying for Universal Bank Licence in Two Years
India's first small finance bank (SFB) is aiming to apply for the universal bank licence in the next two years. In a virtual interview, Capital Small Finance Bank Managing Director and Chief Executive Officer SARVJIT SINGH SAMRA tells Harsh Kumar that the SFB will continue to expand its presence beyond the northern part of India in the upcoming financial year. Edited excerpts:
Benchmarks extend gains for third day
Extending the winning run to the third day, benchmark indices Sensex and Nifty closed higher on Thursday on buying in heavyweight stocks Reliance Industries, Bharti Airtel, and HDFC Bank.
India's foundation AI model in months
Vaishnaw says Meity working with experts to build framework
Retail biz was slow initially, now there is sense of positivity
Urban consumption has shown some green shoots since Makar Sankranti and is expected to improve for the rest of the year, says GAUTAM SINGHANIA, chairman and managing director of Raymond. In an interview with Dev Chatterjee and Sharleen D'Souza in Mumbai, Singhania says the group is moving to an asset-light strategy. Edited excerpts:
Fighting digital fraud: From KYC to advanced authentication
In today's rapidly evolving digital payment landscape, security concerns remain a top priority for stakeholders across sectors.
Whirlpool to cut stake in Indian arm to 20% in 2025
Move may generate $550-600 million for company
Rural Assam, Bihar spent big on food in 2023-24: NSO
Households in rural areas of Kerala, Delhi spent least
