Major advantages or merits of unit banking system can be highlighted as follows:
1. Efficient Management
In unit banking, all services are offered from a single office. Because of small scale operation, supervision, coordination, coordination and controlling is very easy. So, it can be managed efficiently and effectively than branch banking.
2. Less Irregularities And Fraud
Because of effective supervision and effective controlling system, there is less risk if irregularities and fraud under this banking system.
3. Prompt Decision
Bank manager can make any decision without consulting others. So, prompt decision is possible in unit banking. Quick decision helps to act quickly.
4. Low Overhead Cost
Because of small scale operation and less number of employees, Operational and overhead costs are lower than branch banking system.
6. Local Development
5. Less Risk
Unit banking is less riskier than branch banking system because of small amount of capital.
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Unit banks collect deposits from local people and utilize for the development of the same area. So, these banks play important role in the development of the society.
7. No Competition
Unit bank is free from competition because it is located at a certain area where other banks do not exist.
8. Direct Customer-Banker Relation
It is easy for the management to establish direct contact and relation with customers and other related parties because of small scale operation.
