‘Any Branch Banking” – For whose benefit?

While the banks have considerably benefitted from the introduction of CBS, the customers of banks have yet to reap the benefits

How banks have benefitted from introducing the core banking solution -CBS?

With the introduction of CBS, the cost of servicing customers went down considerably for banks, besides helping them to improve their capability to service a large number of accountswith minimum cost as evidenced by the following facts and figures.

Table: 1- Growth of business of all scheduled commercial banks (SCBs) and their employee position for fifteen years from 1983 to 1998 (before introduction of CBS)

As stated in the tables above, while the business of banks grew exponentially, the number of employees went up marginally, thereby saving them huge manpower expenses with attendant benefits of lower capital cost on infrastructure. The banks, however, needed to invest onhardware and software on a regular basis, but this was much less compared to the total savings in work force cost on a continuous basis year after year.
On the other hand, customer service started deteriorating slowly, and the biggest casualty of CBS is the personal relationship between banker and customer. For every hiccup in service quality, banks started blaming computers and expressed helplessness in servicing customers across the counters.

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