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We are Modernizing Legacy Banking Systems: How to get it right?

Previously, the safest place for anyone to keep their assets in India was by wearing it. It is said that jewelry was found to be safer around your neck rather than in a cupboard of your house. The trust factor for assets, financial liberty, and literacy were minor in our country. 

The first big step towards our financial glory as a country was in 1991, economic reforms. Which Globalized Indian Markets, liberalized the constraints of dealing with government bureaucracy, and privatized many sectors. One of the sectors privatized by the then government was the Banking sector. From the time 1991 to the present day, many things have changed about our country and its lifestyle. But people still hold to be conservative on their banking and financial choices. 

Image Source: FIS

Fixed Deposits are still looked at as a brilliant investment. And Public banks are still considered a better option to open a bank account. Both of these statements have very little truth in them. Fixed deposits are eaten up as it usually offers fewer returns than the country’s inflation rate. Public banks lack the facility to provide quick services to their customers and lag in their schemes compared to Private Banks. 

Private banks stay on top of their game by serving customers very kindly and professionally. Private Bank is a business, so it runs like one. Not treating their customer properly will mean losing the customer to another competitive private bank. Because Private banks have something at stake, they push themselves to be and serve their best.

What Damaged their Legacy?

These Legacy public banking units that have been the go-to choice for every Indian are now in crisis. They are lagging in technology and service; most importantly, they are being challenged to become private by the government. That does say a lot that the very body that looks after this man-child is abandoning it. That movie speaks for itself. The lag of public banks has taken its toll on its customers. 

Image Source: Protiviti

The pristine shine of a government job comes with its permanent space and many perks. It just so seems that in this comfort shine, the bank employees have lost their means of responsibility. It is indeed high time that Public banks shine out and charge in innovation and customer satisfaction

How not use your legacy?

Image Source : SPD Group

The 2008 recession caused by the bubble of mortgages sent a shock wave worldwide. This financial disaster had the potential of being deadlier than the Great Depression of the 1930s. Banking systems cracked the code of developing mortgages with cross-checking to draw in more stakeholders involved eventually. In the end, everyone involved would suffer, from Banks to Governments. Greed. It took one emotion to topple the economic system and many well-established names. 

These critical Banking fumbles have changed how we look at the banking system. What one has to do right is be healthily competitive. Let the market and business thrive. If one tries to use their legacy to gain an unfair chip, they might do more harm than any good.

The Bottomline 

It is essential to understand what is not to be done; everyone’s an expert on “What should I do” advice? Ideas and advice assume a lot of things and serve better hypothetically. To understand a clean path of walking, they have to understand “What they shouldn’t do.” By making sure you don’t get it wrong, you will be at the right place.

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