The Hindu Business Line : Branch banking

Apropos the news item on ICICI Bank's initiatives to shift to branch-based services (Business Line, February 19), I would like highlight the following.

It is right that in the US and Europe there is shift in preference to on-branch services from off-branch banking. A survey was conducted a few years back in the US on banking habits and how the customer felt about the changes in banking habits that technology brought in over the years.

Surprisingly, even after decades of experience in advanced banking technology, nearly 60 per cent still preferred to deal with people at branches. They preferred human interaction rather than using machines.

While the west is thus taking a u-turn, Indian banking is rushing towards increased off-branch operations. This is not to say technology should be shunned. But its use may be confined to back-office management, with delivery channels retaining the human element.

In a country like India, which holds a reservoir of human power there should be more reliance on people rather than on machines. The much talked of `know-your-customer' norms will have more meaning with direct interaction than through machines. `Know your customer' is a continuous process and with declining value systems in society, regular customer interaction is essential to safeguard banks' interest.

Rangarajan L.

Mumbai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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