DISADVANTAGES

Advertisement
  • Designing own and new financial products is very costly and time consuming for the bank.
  • Customers now-a-days prefer net banking to branch banking. The banks that are slow in introducing technology-based products, are finding it difficult to retain the customers who wish to opt for net banking.
  • Customers are attracted towards other financial products like mutual funds etc.
  • Though banks are investing heavily in technology, they are not able to exploit the same to the full extent.
  • A major disadvantage is monitoring and follow up of huge volume of loan accounts inducing banks to spend heavily in human resource department.
  • Long term loans like housing loan due to its long repayment term in the absence of proper follow-up, can become NPAs.
  • The volume of amount borrowed by a single customer is very low as compared to wholesale banking. This does not allow banks to to exploit the advantage of earning huge profits from single customer as in case of wholesale banking.

 

Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
8 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account