Across the globe, retail lending has been a spectacular innovation in the commercial banking sector in recent years. The growth of retail lending, especially, in emerging economies, is attributable to the rapid advances in information technology, the evolving macroeconomic environment, financial market reform, and several micro-level demand and supply side factors.
In the context of retail lending, deployment of scoring models would minimize the subjective element and thereby fast track the decision making process. The mass retail banks of today would also have to plan a transit path for the class banking and gradually to entrepreneurial banking. 30. Quality of services offered by the banks is going to be another key differentiator.