• The issue of money laundering is very important in retail banking.  This compels all the banks to consider seriously all the documents which they accept while approving the loans.
  • The issue of outsourcing has become very important in recent past because various core activities such as hardware and software maintenance, entire ATM set up and operation (including cash, refilling) etc., are being outsourced by Indian banks.
  • Banks are expected to take utmost care to retain the ongoing trust of the public.
  • Customer service should be at the end all in retail banking.  Someone has rightly said, “It takes months to find a good customer but only seconds to lose one.”  Thus, strategy of   Knowing Your Customer (KYC) is important.  So the banks are required to adopt innovative strategies to meet customer’s needs and requirements in terms of services/products etc.
  • The dependency on technology has brought IT departments’ additional responsibilities and challenges in managing, maintaining and optimizing the performance of retail banking networks.  It is equally important that banks should maintain security to the advance level to keep the faith of the customer.
  • The efficiency of operations would provide the competitive edge for the success in retail banking in coming years.
  • The customer retention is of paramount important for the profitability if retail banking business, so banks need to retain their customer in order to increase the market share.
  • One of the crucial impediments for the growth of this sector is the acute shortage of manpower talent of this specific nature, a modern banking professional, for a modern banking sector.


If all these challenges are faced by the banks with utmost care and deliberation, the retail banking is expected to play a very important role in coming years, as in case of other nations.

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