Flavia
Cortelezzi and Giovanni Villani, in their paper,
"Strategic Technology Adoption and Market Dynamics
as Option Games", analyze the equilibrium strategies
of two firms investing in a new technology, when
the probability of successful implementation is
uncertain and market shares asymmetric. In particular,
three key features of a new technology adoption
has been considered. First, it is, at least partially,
irreversible. Second, once realized, there is uncertainty
about the probability of a successful implementation.
Third, the profit flow generated by such an investment
is subject to uncertainty, according to the evolution
of demand function. Using the method of option pricing
theory, they show that two types of equilibria exist
and derive critical levels of parameters, separating
the regions in which they prevail. They solve the
model for a sequential monopolist as a benchmark
case to discuss the implications of optimal exercise
strategies and show that in some cases, it may be
desirable.
Siva
Reddy Kalluru and Sham Bhat K in their paper, "An
Empirical Analysis of Profitability Determinants
in Indian Commercial Banks During Post Reform Period",
attempt to explore the determinants of profitability
by employing fixed and random effects models, for
an unbalanced panel data of 87 commercial banks
in India during the period 1992-2006. Empirical
results reveal that efficiency is not the sole determinant
of profitability as other internal variables, such
as capital to assets, non-interest income to assets,
loans to assets and overhead expenses to assets
are positively associated with the profitability
of the banks. Further, the results show that the
performance of banks is affected not only by banks'
own characteristics but also by industry structural
variables and macroeconomic variables.
Automated Teller Machines (ATMs): The Changing Face of Banking in India
Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.
The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario
If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.
Indian Scenario
The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.
