Modern day banks are not mere suppliers of money. They have become providers of a wide range of services. Provided the government rectifies its policies, banks can provide a host of services such as selling insurance, mutual funds and investment opportunities, as in other countries. More dramatic are the developments in technology. Today, traditional business models are being challenged.
Customers can do all their banking transactions while sitting at home.
This promises to change the face of banking forever. There is also a viewpoint that traditional banks may not survive in this century. Banks and providers of other financial services, it is argued, stand between lenders and borrowers. The Internet threatens to put these two groups directly in touch with each other. The first was the growth of mutual funds and insurance policies which ate into bank deposits, the second was the development of capital markets, and the third was advances in technology.