SBI Bank (UK) New Service Design and Innovation Process of Deposits and Lending Services

This report discusses the SBI Bank (UK) and its new service design and innovation process for deposits and lending services. It also highlights the challenges faced by the banking sector in sustaining and developing innovative procedures.

Individual Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Explain about the SBI bank (UK), New Service Design and Innovation process of deposits
and lending services. .............................................................................................................1
(2.) Challenges and issue faced by the banking sector while sustaining and developing the
innovative procedure..............................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
This report discuss about the SBI bank (UK) which provide financial assistance to the
customer of the bank and other banking service like; accepting deposits, lending loans and
provide safe deposit lockers to the bank which assist the customer to save the money in their
respective accounts and it also perform loan providing facility to the individuals and
businessman's which have a account with bank or those who haven't account with
bank(Alexandre-Collier, Goujon and Gourgues, 2020). Basically this also tells about the new
service design of the bank it includes deposits and lending service of the bank. For increasing
these services bank use some innovation technique to attract number of consumer into their bank
but there are some major challenges and issues which affect the sustaining and developing of
innovation procedure of the SBI bank (UK).
MAIN BODY
1. Explain about the SBI bank (UK), New Service Design and Innovation process of deposits and
lending services.
A bank is also known as financial institution which have a license to accept deposits and
it provide loan to the customer they also provide financial services which involves prosperity
management, safe deposits lockers and exchange of currency. There are many different types of
banks are involved like retail banks, commercial banks, investment banks and corporate banks.
In many nations banks follow all the rules and obligations of the country government or the
central bank. Basically all the banks are mainly control by the central bank because it was the
father of all banks and provide an assistant to the banks (Ashta and Biot‐Paquerot, 2018).
Banks plays a very important role in the economy because they provide essential services for
both customers and companies. It is a financial service provider for the customer and business
persons they give them a secure place to store the money. In this concept it also discusses about
the various kinds of accounts like; current account, saving account and fixed account basically
this helps the individual to keep them money safe and can withdraw the cash at any time at
anywhere. In these account a customer of bank performs daily transactions like accepting
deposits, withdrawals money, writing cheque and bill payments. It can also save your money and
provide interest on the deposited money to the customer. Banks also provide credit opportunities
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to the individuals and entities. They lend the money which customer deposit into their bank and
provide others in a form of long term debt for a car loan, credit card facility, mortgages and other
loanable vehicles. This procedure assists to create liquidity in the market. Which make the
money and sustain the supply. The main goal of every bank is to earn profit for its proprietor. In
many banks the owner of the banks are the shareholders. Banks create more earnings by charging
high interest on the debts and other loans they issue to the borrowers of the bank. In other words,
it can easy to describe by giving one example: if a bank provides 1.5% interest on savings
account and charges 5% on interest for loans then it clearly shows that the bank earns 3.5% for
its owners. In the above topic it has choose to discuss the activity of that bank that is SBI bank
(UK) basically the SBI bank (UK) also performs the same task like accepting deposits, providing
loan and provide safe locker deposit to their customer. It also regulates and perform the activity
under the rules and obligations of central bank of UK. Now, its discuss about the new service
design of the SBI bank (UK)and its tell about the service which they provide to their customer
that is deposits and lending. From very first it's important to know the concept of new service
design basically it mainly concentrate on the overall service experience and the design of the
service supply procedure and plan. In other words, it describes that this the procedure of
planning and organizing individual, communication and material factors of a service within
respondent business activity to better service quality and show the difference between the service
provider and the consumer (Boyer, 2019).
Deposits and lending facility of the SBI bank (UK)
In this concept its basically describe the deposit and lending facility of the SBI bank (UK) that's
why they are the financial service provider which provide accepting deposits and loan facility to
those individual who needs a finance for some purpose. On the other hand, bank accept the
deposits in a form of three accounts and it includes; saving account, current account and fixed
account. In saving account bank accept the money from an individual and provide some rate of
interest on deposited amount, In current account this deposits are mainly from the businessman
only business transactions are accepted in a form of deposits, Last one is fixed deposits in this an
individual can deposit its money for a long term purpose and after the completion of time period
they can withdraw the amount and in fixed deposits bank also provide some fixed rate of interest
in it(Dwyer, 2019). If it talk about the procedure for lending of money in SBI bank (UK) is they
provide loan to the individuals as well as the businessman's also but they charge some rate of
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interest and ask collateral security against the loan amount and if a customer is fail to pay its debt
then the bank recover the amount of loan from the collateral security or property of the customer
in that case bank are the creditors from the customer and the customer are the debtor from the
bank(Dykha and et.al., 2022).
Example of deposits and lending of money in the context of SBI bank (UK)
If any businessman required a money to start their business then it approach the bank for
borrowing money bank provide a loan to that individual but before that it check the person
repayable capacity and demand for the security against loan. This is the example of lending
money to the bank.
If a person want to save their money then it approach the bank for depositing its money. Because
they accepting deposits and provide some rate of interest on the depositing money to the
individual.
Procedure for innovating the deposits and lending money in SBI bank (UK).
 Use various marketing transmission to reach the target audience: In this concept the if
bank want to reach its target audience then they have to use various marketing technique
like; digital marketing, advertising and newspaper advertisement. These are some
innovating technique to attract the customer towards their service.
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 Use ads marketing in search engine or some online platforms: This was an another
important innovating technique to promote the services. If bank wants more users in their
bank then they need to paid on search marketing they provide a good benefit and show
the ads of the bank services effectively. So, it will attract the potential customer towards
the services and increase the deposits and lending services of the bank.
 Show the leverages socially through advertisement to attract potential customer: In this
point bank need to show the portfolio of the bank through social advertisement so, that
the good portfolio of the bank attract the potential customer for the investment purpose
and this innovating technique helps to increases the services of depositing and lending
money(Granstrand, 2018).
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 Make an effective mobile existence: In this point if bank want to increase its service then
they need to invent a software in mobile phones which create easiness to the customer for
taking benefit of various services. Because in today' world everything is going to be
online and most of the transaction are happening through online so, it was a good and
innovative idea to go through with online services.
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 Deliver better and friendly customer service: The another best and effective innovative
technique the bank need to build up that is deliver quality of customer service it create
good image in the mind of customer and attract more clients towards its bank service. Its
duty of the bank to provided better assistance and treat them with good and polite
behaviour which shows the good nature of employees in the bank and create an effective
and better image of the bank(Peterson, 2018).
(2.) Challenges and issue faced by the banking sector while sustaining and developing the
innovative procedure
There are some challenges and problems which affect the banking sector while the bank
try to sustain and develop the process of innovation in their banking services these issues create
disruption in achieving the banking objectives. Here are some challenges which affect the
innovation process of the SBI bank (UK) it includes:
 Increasing participants: This was the very big issue and challenge for the banking sector
to continuously sustain and develop the innovation process while more competitors are
available in the economy to give equal competition. When bank busy to innovative their
service at that particular point of time they need to focus on their rivalry banks otherwise
it effect the services of the bank and attract the customer before the SBI bank (UK). So,
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its very much important for the bank to focus on their innovation as well as focus on their
competitors next move(Hendriks and Michels, 2021).
 Human resource management: This was an another very important challenge for the bank
to manage human resource. Because in banking sector requirement of more candidate is
needed for the smooth running of the bank with greater efficiency and bank provide more
better service to their customer in the bank with more manpower but sometimes it effect
the innovation process of the bank. Basically in simple words if bank hire more candidate
while they executing the new innovative technique into the bank than it disrupt the
innovative strategy because then bank focus on the training of new employees and it
effect the strategy of executing new innovative procedure.
 Higher customer expectations: The another problem faced by SBI bank (UK)is increasing
customer expectations on a daily basis customer need consistency in each and every
facility of the bank like good net banking service, proper working of ATM machine and
passbook printing machine and at last extended banking service hours(Liu, 2021).
Because of providing these quality of service to the customer it affect the innovation
process of the SBI bank (UK) bank doesn't focus on more innovation into the deposits
and lending services of the bank. Basically this was the main reason of slow innovation
into the banking services. But bank have to mange both the task with full productivity
otherwise the competitors of the bank take the advantage of this factor and capture the
half of the economy with their new innovation because in today's scenario every bank
work with full efficiency for moving into a next level.
 Customer retention: This point discuss about the retention of customer into the bank.
Sometimes this was the very disappointing challenge for the bank. In this the customer of
the bank leave the service of the bank and shift to the another banking services. Because
bank perform the innovation process for its sustaining and developing. So, on that basis
bank not so much focus on the existing banking services and its create difficulty for the
bank to mange both the things at the same time. So, because of that most of customer not
satisfy to the bank services and close their accounts in the bank and its create big
disappointment for the bank and loose the customer. It also decrease the motivation of the
bank(Lisowski and Chojan, 2020).
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These are some challenges and problems which affect the innovation process of SBI bank
(UK)and decrease the productivity and motivation of the bank.
Evaluation of the above challenges faced by the banking sector
The above challenges indicates that the banking sector face many issues while performing their
targets. They face issues like high competition in the market, retention of customer and high
consumer expectations because of these challenges bank cannot properly focused on their
objectives. Basically these challenges create disruption in the activities of the banks and reduce
the efficiency of the consumer. High competition in the market also create pressure because if
any other bank create changes or introduce new technology and improvise in their services then
its high chances to loose customer interest and they take services from those banks who provide
good services to the consumer.
CONCLUSION
As it is concluded from the above report that the banking sector provide services for
accepting deposits and lending money to the customer and other banking services like; ATM
facility, credit card facility and net banking services to their customer. In this report it discuss
about the SBI bank (UK) new service design and its innovative process basically this innovating
technique conclude that how bank can attract customer towards its services by using various
innovations in their deposits and lending facility. At last it also talk about the challenges and
problems which effect the sustainability and development of innovation process for the SBI
bank (UK).
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REFERENCES
Books and Journals
Alexandre-Collier, A., Goujon, A. and Gourgues, G., 2020. 1 Do political innovations
matter?. Innovations, Reinvented Politics and Representative Democracy.
Ashta, A. and Biot‐Paquerot, G., 2018. FinTech evolution: Strategic value management issues in
a fast changing industry. Strategic Change. 27(4). pp.301-311.
Boyer, R., 2019. How scientific breakthroughs and social innovations shape the evolution of the
healthcare sector. In Innovation beyond technology (pp. 89-119). Springer, Singapore.
Dwyer, D.D., 2019, September. Innovations in Academic Curricula for International Education.
In Proceedings of the XIV International Grassland Congress (pp. 815-818). CRC Press.
Dykha, M and et.al., 2022. Marketing of Start-ups and Innovations in Agricultural
Entrepreneurship. Journal of Agriculture and Crops. 8(1). pp.27-34.
Granstrand, O., 2018. Evolving properties of intellectual capitalism: Patents and innovations for
growth and welfare. Edward Elgar Publishing.
Hendriks, F. and Michels, A., 2021. Citizen involvement in subnational governance: innovations,
trends and questions. In A Research Agenda for Regional and Local Government.
Edward Elgar Publishing.
Lisowski, J. and Chojan, A., 2020. The use of innovations in insurance: Case of trade credit
insurance. In Innovation in Financial Services (pp. 232-245). Routledge.
Liu, Y., 2021. Optimizing Ideas and Institutional Innovations for Urban–Rural Transformation in
China. In Urban-Rural Transformation Geography (pp. 329-364). Springer, Singapore.
Peterson, J., 2018. Multilevel governance and innovations in the financing of urban climate
change strategies. In Climate Change in Cities (pp. 281-298). Springer, Cham.
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