Study on Financial Innovations in Deposit Products with special reference to 3 major banks

BY: Ritesh sharma Ranjeeta kumari Srijit Saha

What is Financial Innovation?

Financial innovation can be defined as the act of creating and then popularising new financial instruments as well as new financial technologies, institutions and markets. It includes institutional, product and process innovation.

Institutional innovation

relate to the creation of new types of financial firm( internet banks and so on).

Product innovation

relates to new products such as derivatives, securitised assets, foreign currency mortgages and so on.

Process innovations

relate to new ways of doing financial business including online banking, phone banking and new ways of implementing information technology and so on.

INDUSTRIAL DEVELOPMENT BANK OF INDIA

INNOVATIVE IDBI BANK DEPOSIT SCHEME OFFERS VARIABLE RATE.

INNOVATIVE IDBI BANK DEPOSIT SCHEME OFFERS VARIABLE RATE

interest rate will be pegged to the average yield of the

364-day treasury bill of the government.

Interest rate for the new product will be reset every

quarter. The minimum amount of deposit will be Rs 10,000 and in multiples of Rs 1,000 thereafter.
The maximum investment is capped at Rs 1 crore as

this is the definitional threshold for a retail deposit.

Further, the floating rate deposit will have a lock-in

period of one year and it will be accepted in six maturity slabs, ranging from 1 to 10 years.

Other financial innovations

a project on facilitating usage of ATM network to Co-operative Banks and RRBs on National Financial Switch (NFS) network in association with National Payments Corporation of India (NPCI)

initiated through the internet banking channel from phishing related frauds, an Online Shopping Password (OSP) security feature has been introduced Co-branded Photo ATM Card on Rupay

Other financial innovations

the first ever Bank in the country to launch an internet based portal dedicated to retail investors in Government Securities. The portal, named IDBI Samriddhi G-Sec

introduced a new product, viz., Line of Credit to Vendors of Corporate that augments the liquidity position of MSE vendors.

BANK OF BARODA

Baroda structured deposit mobilize funds, get higher returns on investment

Baroda structured deposit mobilize funds, get higher returns on investment

Interest Rate Linked structured product for NRI with derivative features, offering opportunities to earn higher returns to investors. The innovative deposit product allows an investor to receive a predetermined interest for the number of days the US dollar interest rate stays within a range. The Product guarantees 100% principal protection if the deposit is held till maturity. The interest earning on the structured deposit is maximized if the US dollar interest rate remains within the range as set at the time of booking the deposit.

Other financial innovations

facilities to the Mobile Banking channel through Baroda M-Connect A Sales Operating Model was rolled out at 163 Baroda Navnirman Branches {i.e. your Banks project in Business Process Reengineering} for developing Sales & Service culture to generate business leads through transitioning service requests to sales conversation and data mining of existing/new profitable customer.

INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA BANK

INNOVATIVE ONLINE FLEXIBLE RECURRING DEPOSIT CALLED iWish

ONLINE FLEXIBLE RECURRING DEPOSIT CALLED iWish

offers customers the flexibility to choose when and how much to save to meet their goals and, for the first time in India, share their goals on Facebook with friends and family who can choose to contribute to the goal. iWish is a flexible recurring deposit that allows customers to save varying amounts of money at any time of their choice as a fun and flexible way to encourage savings among youth for fulfilling aspirations Easy-to-use online interface. Customers can start saving with a minimum of Rs 500/- and with a minimum duration of 6 months.

Other financial innovations

The first and only bank in India to have introduced a powerful new Bank App on its official Facebook page. ICICI Bank Ltd, Indias largest private sector bank and MMP Mobi Wallet Payment Systems Ltd, a 100% subsidiary of Tata Teleservices Ltd., one of the leading Mobile Network Operators in India, today announced a strategic tie up to launch a money transfer service. The Interactive Kiosk is a revolutionary offering that will enable service requests in addition to giving customers access to all the ICICI Group websites. This will help reduce their waiting time at branches, thereby offering them an efficient

Other financial innovations

The smart iWEALTH app allows regular banking transactions and monitors their expenses and portfolios on a real time basis, but also carry out investments in mutual funds. With ICICI Banks Treasury 360 being launched shortly, corporate treasury managers can now confidently manage their portfolios, view deal level details and underlying documents and also access pertinent research reports via the robust security architecture of the Bank.

Major Learning
For being innovative IDBI Bank, provide customized financial deposit service to its customer by let customers shift from fixed to floating rate of interest. NRI customers can be major deposit sources for the bank. Customer always welcome add-on services like Bank of Baroda did for being innovative like Baroda Structured Deposit Technology advancement is always being addressed as Innovative like ICICIs social deposit iWish, iWealth, Kiosk etc.