International Referred Research Journal, January, 2011. ISSN- 0974-2832 VoL.

II *ISSUE-24

Research PaperCommerce

INNOVATIVE MARKETING STRATEGIES IN THE BANKING SECTOR

* Rashmi Dardad
* Principal, M.S.S. Commerce College, Washi , New Mumbai.
Introduction: with pace of light is making customer relationship Innovation drives organizations to grow, prosper management to come out with new faces day after day. and transform in sync with the changes in the Now a days customer is demanding for more environment, both internal and external. Banking is no customization which is forcing the business and its exception to this. In fact, this sector has witnessed entities to shift their ideology from mass production to radical transformation of late, based on many mass customization. The increased channels of doing innovations in products, processes, services, systems, the business such as Direct sales, On-line sales, business models, technology, governance and Franchises, use of agents etc. has given birth to need regulation. A liberalized and globalize financial for managing the huge customer data and the way the infrastructure has provided an additional impetus to interaction to carried with this huge customer base in this gigantic effort. Technology based services have an effective and fruitful manner to generate more and started getting wider acceptance among the clients. more profits for organization more comfort for Those banks which are legging in implementation of customers. customer banking services have to speed up to retain There is no bank which does not believe in their existing client base. Customer is the kingpin around CRM and rather its a general practice for any bank whom all the activities of the banks revolve. Customers since banking came to existence. The only difference prefer e-channels because of time and cost utility and is in the way the CRM brought on to functionality with it is an efficient service to customers. The pervasive aid of different technologies. The new technologies influence of information technology has revolutionaries have enabled the banks to clearly identify, distinguish banking. Transaction costs have crumbled and handling every customer and to serve accordingly. Banks of astronomical number of transactions in no time has customer base is developed over the period of time become a reality. Internationally, the number brick and investing effort, service, resources and time. Improved mortar structure has been rapidly yielding ground to technology, improved customer awareness, increased click and order electronic banking with a plethora of business, increased needs have forced the banks to new products. Banking has become boundary less and systematize CRM practices by using different methods virtual with a 24 * 7 model. Banks who strongly rely on and technologies. CRM had received focused attention the merits of relationship banking as a time tested way from all banks from the beginning of new millennium of targeting and serving clients, have readily embraced which witnessed the entrance of new era banks like Customer Relationship Management (CRM), with sharp ICICI, HDFC which entered full force. CRM is a focus on customer centricity, facilitated by the continuous process especially in banking sector and availability of superior technology. CRM has, therefore, with a proper demand specification, a great deal of time become the new mantra in customer service and money can be saved based on realistic expectations management, which is both relationship based and of systems capability and on the other hand a well information intensive. operating CRM system can be an extremely powerful Customer Relationship Management (CRM): tool for effective management of customer needs and The process of relationship banking in the Indian satisfaction. banking scenario would become more important. E-Banking Technology: Customer Relationship Management (CRM) is a mixture In Information Technology era, e-banking is most of efforts, skills, methods, technologies, strategies, popular for their services. E-Banking is going to improve efforts, functional styles, to gather the most of quality of services. E-banking is the delivery of banking information about most possible customer to serve products and services to retail and wholesale customers them and satisfy them better than any competitor to through electronic distribution channels. The important capture the maximum market share for the benefit of role of electronic banking can be seen by looking at the business and all its entities. The technology change value of electronic payment transactions. This is not January, 2011

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International Referred Research Journal, January, 2011. ISSN- 0974-2832 VoL.II *ISSUE-24
unexpected due to the greater advantages of safety, speed, convenience, precision and cost effectiveness of electronic banking over cheque and branch based banking. The future of e-banking is bright because in the coming days majority of the customers will use e-banking system. The Internet banking is changing the banking industry and is having the major effects on banking relationships. Internet banking involves use of Internet for delivery of banking products & services. In other words a successful Internet banking solution offers Exceptional rates on Savings, CDs, and IRAs. Checking with no monthly fee, free bill payment and rebates on ATM surcharges. Credit cards with low rates. Easy online applications for all accounts, including personal loans and mortgages. 24 hour account access. Quality customer service with personal attention. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to ones accounts at any time and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a banks Internet presence transforms from brouchreware status to Internet banking status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The primary drivers of Internet banking includes, in order of primacy are: Improve customer access. Facilitate the offering of more services. Increase customer loyalty. Attract new customers. Provide services offered by competitors. Reduce customer attrition. Modern Technology in Customer Banking: There is an imperative need for not mere technology up gradation but also its integration with the general way of functioning of banks to give them an edge in respect of services provided to their constituents, better housekeeping, optimizing the use of funds and building up of MIS for decision making, better management of assets & liabilities and the risks assumed which in turn have a direct impact on the balance sheets of banks as a whole. Technology has demonstrated potential to change methods of marketing, advertising, designing, pricing and distributing financial products and services and cost savings in the form of an electronic, selfservice product delivery channel. These challenges call for a new, more dynamic, aggressive and challenging work culture to meet the demands of customer relationships, product differentiation, brand values, reputation, corporate governance and regulatory prescriptions. Technology holds the key to the future success of Indian Banks. Internet, wireless technology and global straight-through processing have created a paradigm shift in the banking industry. The explosive growth of both the Internet and mobile and wireless technology is revolutionizing the way the financial industry conducts business. The overall wireless technology market is expected to grow profoundly in the coming years. Innovation in technology and worldwide revolution in information and communication technology (ICT) have emerged as dynamic sources of productivity growth. The relationship between IT and banking is fundamentally symbiotic. In the banking sector, IT can reduce costs, increase volumes, and facilitate customized products; similarly, IT requires banking and financial services to facilitate its growth. As far as the banking system is concerned, the payment system is perhaps the most important mechanism through which such interactive dynamics gets manifested. Recognizing the importance of payments and settlement systems in the economy, we have embarked on technology based solutions for the improvement of the payment and settlement system infrastructure, coupled with the introduction of new payment products such as the computerized settlement of clearing transactions

R E F E R E N C E
Prasad & Panduranga Reddy Challenges in Indias Banking Sector Southern Economist, Vol. 47, No. 01, May, 2008 G. Shrinivas Rao CRM in Banking: Special Focus on CRM Initiatives in SBI - Southern Economist, Vol. 48, No. 14, Nov. 2009 Goyal S. and Thakur K.S. -A Study of Customer Satisfaction Public and Private Sector Banks of India (2008) Punjab Journal of Business studies, Vol. 3. Singh S.B. Customer Management in Banks (2006) Vinimays, Vol. XXVII, No. 3 Swarup A. G. Customer Orientation in Banks for Building long term Relationships (2004) IBA Bulletin, Vol. XXVI, No. 8 http:/ /www.banknetindia.com

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