Question

Do you believe that banks’ share of financial services has changed over the years? If so, what are the main reasons for the change? Discuss with example.

Answer 1

banks share of non interest income rose significantly over the years. In the past banks solely focus on the interest income which is accepting deposits and lending.

Now non interest income like discounting bills , atm services, lockers, managing mutual funds providing insurance services.now a days advancement of fintech has also increased the ease of generating non interest income.

The obvious reason for the change is now a days NBFC(Non banking financial services) have giving loans with ease for retailers. And coming to companies issuing of debt like bonds and commercial papers have made their availability of funds easier and cheaper. In deposit sector also available of more investment options and advancement of fintech has made customers less dependent on banks.so now for adjusting to the changes in environment banks have been also focussing on non interest income