Abstract

Interface between the Banker and customer in the service

delivery of Retail Banking

Retail Banking implies executive Banking transactions with a large number

of customers. Today retail banking is not confined to offering standardized
products and services. It extends to designing, developing and marketing of
customized products. Infact retail banking has become “The jewel” of the
Banking Industry and it is undergoing continuous evolution. Retail banking has
changed the relationship between banks and customers. Incessant introduction
of new products and services, more discerning, demanding and less loyal
customer have become the important change drivers across the globe. The
focus of retail banking in the early nineties was product, in the late nineties it
was sales and today it is relationship driven. The Indian retail banking industry
is undergoing tremendous changes, though not in proportion to global
proportions, banks need to alter their product mix in order to face the stiff
competition ahead.

Liberalization of the Banking Sector resulted in the Entry of a host of Private

firms – Indian & Multinational Banks. This increased competitions amongst
Banks and Services quality. Banks have been racing ahead at a fast and furious
pace to transform themselves into Retail Banking Powerhouse. Banks are
offering value added services and India being a growing economy the demand
for good services is great with RBI providing guidelines for the entry of Private
Banks, Competition has increased to a great extent, banks are consolidating &
restructuring through mergers & acquisitions in order to improve their services.
Both Private Banks & Nationalized Banks have recognized the importance of

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Retail Banking Services. There is an increased competition amongst Banks and
Service Quality. An Added Advantage is the Availability of Banking services in
both the Nationalized Banks and private Banks in the Indian context. Thus giving
potential comparison of value of services to Nationalized banks and private
banks. Banks should not forget the fact that customer is one of the factor that
decides the health & value of the bank.

The paper focuses on the challenges faced by Indian retail banks and analyses
the variables communication, access and customized service by bankers to the
customers.

INTERFACE BETWEEN THE BANKER AND CUSTOMER

IN THE SERVICE DELIVERY OF RETAIL BANKING

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 Mailing Address:

Nakshathra Apartments,

FFC 101, 7th Cross,

Lingarajapura, St. Thomas Post,

BANGALORE- 560 084

Tel: 080-2580 5056/2332 5916

Mrs. SHEEBA THOMAS

Research Scholar

Central College

BANGALORE University

BANGALORE

INTERFACE BETWEEN THE BANKER AND CUSTOMER

IN THE SERVICE DELIVERY OF RETAIL BANKING

Retail Banking implies executive Banking transactions with a large number

of customers. Today retail banking is not confined to offering standardized
products and services. It extends to designing, developing and marketing of
customized products. Infact retail banking has become “The jewel of the Banking
Industry and it is undergoing continuous evolution. Retail banking has changed
the relationship between banks and customers. Incessant introduction of new

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products and services, more discerning, demanding and less loyal customer have
become the important change drivers across the globe. The focus of retail
banking in the early nineties was product, in the late nineties it was sales and
today it is relationship driven. The Indian retail banking industry is undergoing
tremendous changes, though not in proportion to global proportions, banks need
to alter their product mix in order to face the stiff competition ahead.

Liberalization of the Banking Sector resulted in the Entry of a host of Private

firms – Indian & Multinational Banks. This increased competitions amongst
Banks and Services quality. Banks have been racing ahead at a fast and furious
pace to transform themselves into Retail Banking Powerhouse. Banks are
offering value added services and India being a growing economy the demand
for good services is great with RBI providing guidelines for the entry of Private
Banks, Competition has increased to a great extent, banks are consolidating &
restructuring through mergers & acquisitions in order to improve their services.
Both Private Banks & Nationalized Banks have recognized the importance of
Retail Banking Services. There is an increased competition amongst Banks and
Service Quality. An Added Advantage is the Availability of Banking services in
both the Nationalized Banks and private Banks in the Indian context. Thus giving
potential comparison of all value of services to the Nationalized banks and
private banks. Banks should not forget the fact that customer is one of the
factor that decides the health & value of the bank.

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 Customer Banking

Customer Bank Staff

The bank gets blame for problem and staff gets credit for good
experience.
Therefore bank should take keen interest in the delivery of its service

RESEARCH DESIGN

A study was conducted on Private and Nationalised Banks in order to

analyze the communication, access and customized services.

 ANALYSIS OF THE VARIABLES COMMUNICATION, ACCESS

AND CUSTOMISED SERVICES

TABLE I

Correlation Matrix - Overall

BASIS COMMUNICATION ACCESS CUSTOMISED SERVICE

COMMUNICATION 1

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ACCESS 0.551166 1
CUSTOMISED SERVICE 0.6732 0.4969 1

TABLE II

Correlation Matrix - Private Bank

BASIS COMMUNICATION ACCESS CUSTOMISED SERVICE

COMMUNICATION 1
ACCESS 0.44531 1
CUSTOMISED SERVICE 0.612788 0.5358 1

TABLE III

Correlation Matrix - Nationalised Bank

BASIS COMMUNICATION ACCESS CUSTOMISED SERVICE

COMMUNICATION 1
ACCESS 0.649212 1
CUSTOMISED SERVICE 0.807006 0.465807 1

OVERALL STUDY OF BANKS IN GENERAL

The three variables Communication, Access and Customised

service were Analyzed taking into consideration opening an Account, Fixed

Deposit and ATM services. It was found that Communication by the Bank and

their Accessibility was significantly and positively correlated(r=+0.55). Likewise

Communication by Bank staff and Customized service was highly correlated

(r=0.67), therefore this clearly shows that Communication of Bank staff plays an

important role in enhancing their Accessibility to the customers, and also in their

offering service to the customer, further Accessibility and Customized service

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showed significant positive correlation implying that greater the Accessibility by

the staff enables better customer service.

COMPARISON OF PRIVATE BANKS AND NATIONALISED BANKS

In the case of Private Banks it was found that Communication by the Bank

and their Accessibility was r=0.44 .When compared to Nationalized Banks with

r=+0.64, The Correlation was higher in the case of Nationalized Banks, Likewise

Communication by bank staff and Customized service was highly Correlated

(r=0.807) in the case of Nationalized service and lower for Private Banks

(r=0.612). Therefore this clearly indicates that Communication of Bank staff in

Nationalized Banks was better than that of private banks, but Accessibility by

Private Banks was greater.

INFERENCE

Communication in the bank was better in Nationalized Banks

Accessibility of Private Banks enabled better customer service

SUGGESTION

1. Bank staff of both private and Nationalized Banks should enhance their

communication skill and this will be of advantage to Banks, which will in

turn enhance their Business.

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 2. The staff of Private Banks should not be overloaded with work, Bank staff

should greet their customers with a smile and the time given to customers

for Transactions should be meant for attending to the customers only.

CONCLUSION

The Indian banks have to tailor their strategies to meet the demands of specific

customer segments or areas of product specialization. These strategies have to

be supported with a set of care skills – Marketing and Sales. In the years to

come, customers will be more demanding, competitive, and more intense. The

players who have good communication accessibility and customized service will

be the sure winners. A concerted focus on retail banking need not be deemed

only as an opportunity but an absolute necessity to preserve profits and market

position.

BIBLIOGRAPHY

 A study conducted on ICICI bank and SBI bank customers

 http:// www.icicibank.com

 htp://www.domainb.com

 http://www.sbi.com.

 Bank Economist conference 2002 articles and papers presented.

 Richard B (1993) Liberating the corporate soul, - Building a visionary.

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