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Summer Training Report


Customer Relationship Management in Banking Industry

In the partial fulfilment of the Degree requirement towards the


SESSION (2017-2018)
Certificate guidelines
This is to certify that the survey entitled, CUSTOMER RELATIONSHIP MANAGEMENT
submitted in partial fulfilment of the requirement for the award of degree of Bachelor of
Business Administration (BBA) from Lovely Professional University, Jalandhar is a bonafide
summer training project work carried out by virendra verma, under my supervision and guidance
and to the best of my knowledge and information, no part of summer training project work has
been submitted for any other degree or diploma.

Branch Manager

M. Khalid

HDFC Bank,

Nautanwa, Maharajganj

I undersigned Virendra verma student of BBA MBA 4th semester declare that I have done the
HDFC BANK LTD. has been personally done by me under the guidance of Prof. Pradeep Bawa
Phagwara in fulfillment of BBA- MBA Program- during academic year-2015-19. All the data
represented in this project is true & correct to the best of my knowledge & belief.

I also declare that this project report is my own preparation and not copied from anywhere else

Date 15-7-2017

I take this opportunity to express my deep sense of gratitude, thanks and regards towards all of
those who have directly or indirectly helped me in the successful completion of this project.

I present my sincere thanks to Mr. M.Khalid (Branch Manager, Nautanwa ) who allowed me to
take training at HDFC BANK I would also like to thank HDFC bank Staff for their wonderful
support & inspirable guiding.

I also thank Prof. Pradeep Bawa sir of Lovely Professional University who has sincerely
supported me with the valuable insights into the completion of this project.

Last but not the least I am indebted to my PARENTS who provided me their time, support and
inspiration needed to prepare this report.

Date: -15/07/2017

Without practical training, management education is meaningless so long with the theory;
practical training is provided to management students to expose them to the actual working
environment of any organization. Such training provides a framework of knowledge relating to
the concepts and practices of the assigned topics in the organization.

The summer training is an integral

part of the course curriculum of Bachelor of Business Administration (B.B.A. 5thSem). In this the
student is in the position to analyses the integral working of an organization with mature eyes
and understand the dynamics in a much better manner.

This particular project has been conducted at HDFC Bank. In the first phase of the research
project, there is an introduction of Banking, company profile and products of HDFC Bank are
given. After that a market research is performed with a sample size of 250 people. The research
study was limited to Nautanwa. Here, in my survey, I have contacted the respondents through
personal interviews with the help of questionnaires.

The main objective of the research is to know the customer relationship management level and
their perception regarding Banking Services and to know the customer awareness regarding the
Banking Services.

HDFC Bank should lay more stress on advertisements, both in print as well as in other media. Both
new and existing players will have to explore new distribution and marketing channels. Potential
buyers for most of Banks lie in the middle class. Competitors must segment the market carefully to
arrive at appropriate products and pricing. Recognizing the potential, in the past three years, the
nationalized Banks have already begun to target niches like pensions, women, children and rural

Though the main objective is to prepare myself in such a manner as though I can develop myself
with the practical field as well as I will be able to know the different aspect of the banking sector
and to evaluate how a bank is performing in Loans and Advance sector. In addition, the study
seeks to achieve the following objectives:

Primary Objective:

The primary objective of this report is to gather information and related data in order to combine
them based on the report name Consumer Relationship Management on the basis of HDFC

Secondary Objectives:

The study was conducted to achieve the following secondary objectives-

To review how HDFC Bank perform their activities.

To know the products and services offered by HDFC BANK.
To know the work environment and organizational behaviors of the bank.
To find out how the general banking system works.
To see how the loans and advances are provided to the borrowers.
To know how to communicate with customer.
To know how to solve problem related to customer
To know how to retain their customer with the help of communication skill.
To see how to approach for new product to the customer
To acquire knowledge about the foreign exchange system of the bank.
To analyze the growth of investments in the bank.
To gain practical experience that will be helpful for my BBA program.
Introduction to CRM

Before we begin to examine the conceptual foundations of CRM, it will be useful to

define, what is CRM? A narrow perspective of customer relationship management is database
marketing emphasizing the promotional aspects of marketing linked to database efforts. Another
narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety
of after marketing tactics is used for customer bonding or staying in touch after the sale is made.
Shani and Chalasani define relationship marketing as an integrated effort to identify, maintain,
and build up a network with individuals consumers and to continuously strengthen the network
for mutual benefit of both sides, through interactive, individualized and value-added contacts
over a period of time. The core theme of all CRM and relationship marketing perspectives is its
focus on co-operative and collaborative relationships between the firm and its customers, and/or
other marketing actors.

CRM is based on the premise that, by having a better understanding of the customers
needs and desires we can keep them longer and sell more to them.

CRM (customer relationship management) is an information industry term for

methodologies, software, and usually Internet capabilities that help an enterprise manage
customer relationships in an organized way. For example, an enterprise might build a database
about its customers that described relationships in sufficient detail so that management,
salespeople, people providing service, and perhaps the customer directly could access
information, match customer needs with product plans and offerings, remind customers of
service requirements, know what other products a customer had purchased, and so forth.

The essence of the information technology revolution and, in particular, the World Wide
Web is the opportunity to build better relationships with customers than has been previously
possible in the offline world. By combining the abilities to respond directly to customer requests
and to provide the customer with a highly interactive, customized experience, companies have a
greater ability today to establish, nurture, and sustain long-term customer relationships than ever
before. The ultimate goal is to transform these relationships into greater profitability by
increasing repeat purchase rates and reducing customer acquisition costs. Indeed, this revolution
in customer relationship management or CRM.1 as it is called, has been referred to as the new
mantra of marketing.2 Companies like Siebel, E.piphany, Oracle, Broadvision, Net
Perceptions, Kana and others have filled this CRM space with products that do everything from
track customer behavior on the Web to predicting their future moves to sending direct e-mail
communications. This has created a worldwide market for CRM products and services of $34
billion in 1999 and which is forecasted by IDC to grow to $125 billion by 2004.3 The need to
better understand customer behavior and focus on those customers who can deliver long-term
profits has changed how marketers view the world.
Traditionally, marketers have been trained to acquire customers, either new ones who
have not bought the product category before or those who are currently competitors customers.
This has required heavy doses of mass advertising and price-oriented promotions to customers
and channel members. Today, the tone of the conversation has changed from customer
acquisition to retention. This requires a different mindset and a 3 different and new set of tools. A
good thought experiment for an executive audience is to ask them how much they spend and/or
focus on acquisition versus retention activities.

While it is difficult to perfectly distinguish the two activities from each other, the answer
is usually that acquisition dominates retention.

According to one industry view, CRM consists of:

Helping an enterprise to enable its marketing departments to identify and target their best
customers, manage marketing campaigns with clear goals and objectives, and generate
quality leads for the sales team.

Assisting the organization to improve telesales, account, and sales management by

optimizing information shared by multiple employees, and streamlining existing
processes (for example, taking orders using mobile devices)

Allowing the formation of individualized relationships with customers, with the aimof
improving customer satisfaction and maximizing profits; identifying the most profitable
customers and providing them the highest level of service.

Providing employees with the information and processes necessary to know their
customers, understand their needs, and effectively build relationships between the
company, its customer base, and distribution partners.

CRM--Customer Relationship Management--has entered the mainstream. Despite the

uncertainty of the economy, CRM is being thrust into corporate budgets and talked about as a
critical initiative by hundreds of Fortune 1,000 and tens of thousands of other companies. It has
gone from being an important edge in the business world to a necessary tool for survival. The
notion of the customer as king or queen is once again the rule. How you treat this is a mission-
critical business issue.

But, what is CRM and how does it change the way companies do business? The changes
in the world have been so dynamic and so dramatic that the path is not necessarily all that
obvious. How CRM impacts that business path is a continuing source of debate in the world of
corporate management.

Managing relationships with customers has become a critical organizational competency.

Get winning strategies for acquiring and retaining customers by leveraging the latest advanced
technologies. This course will teach you how to select the right tools for your business-- so it can
grow today--and on into the future. Lagging means lost customers, which means damage to the
bottom line. But how do you not lag when customers are moving lightning fast to demand
constant changes in the speed to complete their transactions? How do you keep your customers
when the move to another company is nothing more than a mouse click and a minute away?

CRM is the answer. Customer Relationship Management, a strategy that leverages very
advanced technologies is the way to cut to the 21st Century business chase.

Definition: -

CRM is concerned with creating improved value through the use of customer centric business
processes and the development of appropriate relationships with consumers.

Implementing CRM:

CRM requires an integration of a firm's resources; people, operations and marketing

capabilities to deliver added value to the customers. CRM should provide businesses and
organizations with a single view of their customers and across irrespective of the interactive
channel or medium through which the customer accesses the service or product. For example, a
business (e.g. hotel) customers profile and personal references should be accessible to the
business (or hotel) irrespective of channel i.e. whether the customer books online, calls in or
walks into any location should not make a difference to the service provided based on the
personal profile of the business client.

It is enabled through:


A firm that wants to implement CRM must align it's business processes cross-
functionally in the best possible way to allow increased customer focus with an aim to deliver
added value to the customer.

To implement CRM, the following steps must be followed:

Develop a CRM framework

Align current business processes
Design new cross-functional business processes (where required)
Develop Functional Specifications (client-side services)
Develop Technical Specifications
Match Technical Specifications to available technology (Systems, software, etc)
Product Configuration
Data Migration and Integration
Staff Training

Customer Segmentation: For CRM to be effective, the organizations customer base must
be stratified into segments based on commonalities amongst customers. This also
requires the organization to have strategies to target consolidated customer segments.

Reduced Cost of Service: a customer relationship strategy should reduce the cost of
service for both the organization and its customers and increase satisfaction levels.

Service as a differentiator: The more competitive a market becomes the more a business
will need to rely on its superior product quality and quality of service to differentiate
itself from other businesses and providers.

Tie-ins over time: The greater the effort a customer spends on a relationship over time,
the greater the customers stake in helping to ensure that the relationship works and the
more convenient and loyal the customer becomes.
Customer relationship management

Customer relationship management is the process and manner by which a business develops,
establishes, and maintains relationships with its customers. Businesses rise and fall through the
support of their customer bases. Consequently, it is absolutely essential that you develop
effective customer relations. On a practical level, customer relations are effectively
communicating with your customers and promptly addressing complaints and treating them as
opportunities for improvement. In other words, listen to your customers.

Key motivating drivers for the development of more innovative CRM strategies are Web
technologies and a sharpened global focus on customer loyalty.

CRM also

Provides a way to directly evaluate customer value. For example, a business that is
genuinely interested in its customers is rewarded with customer and brand loyalty.
Because CRM is mutually advantageous, market share viability advances at a sound pace.

Provides cross-selling opportunities, where, based on customer approval, a business may

pitch proven marketing or brand strategies to more than one clients.

Maintaining a loyal base involves building relationships with customers by acknowledging them.
It is difficult to attract customers, and a key aspect of customer relations is retaining a loyal base
of customers who keep coming back to the company.

The primary goal of customer relationship management systems is to integrate and automate
sales, marketing, and customer support. Therefore, these systems typically have a dashboard that
gives an overall view of the three functions on a single customer view a single page for each
customer that a company may have. The dashboard may provide client information, past sales,
previous marketing efforts, and more, summarizing all of the relationships between the customer
and the firm.

Customer Relationship Management in Banks

Customers are considered as the fundamental non-core financial asset by the banks across the
globe in the present-day scenario. Courteousness, correctness and rapidity are the imperative
factors in the efficient running of a bank. A highly satisfied customer will market for the bank
and bring in more new customers to increase the business of the banks.

The banks should adopt novel strategies and policies to decide on what to offer, whom to be
focused, when to approach, how to promote and be unique in product and service offerings to
increase their profitability. Banks need to make a difference in them by offering general products
to meet the general demands of the customers and to offer customized services for the specific
requirements of the customers. There is a revolution happening in the banking industry. The
customers are occupying the Centre stage outshining other factors. The customers are flooded
with lot of information and becoming more tech savvy. This has increased the competition
among the bankers. The competitive forces over the years are compelling the banks to
concentrate more on increasing the number of customers and in providing better service quality.
In other words CRM has become a major focus for the banks.
The banks in the present era are facing stiff competition and they are struggling to find a place in
the industry. They have realized the fact that CRM is a powerful tool to achieve success in their
business. CRM is an effective tool for the bankers to acquire new customers and to retain the
existing ones. CRM in the banking sector is of strategic importance
The present study concentrates on the various issues of CRM practices of the Public Sector, New
Private Sector, Old Private Sector and Foreign Banks.
The banks are confronting numerous problems in attracting new customers and in maintain the
existing customer base. The technology advancement has led to knowledgeable customers and as
a consequence, the customers loyalty is facing a down trend.
Two strategies are identified for increasing a banks market penetration; one is to concentrate on
acquiring new customers and the other is to maintain the existing customers. In spite of applying
the above strategies, not all the customers are retained and as a result, the organizations need to
identify those customers at risk of leaving in order to reduce defections becomes vital .
Implementation of CRM poses a greater challenge to the banks after acquiring the customers.
The various ways and means through which CRM is implemented by the banks determine the
success or failure of the entire concept.
The banks should concentrate highly on the valid elements of their CRM strategy for generating
customer satisfaction and customer loyalty. This will be possible only with the help of effective.
Banker Customer Relationship

Banking business today is much diversified and a banker render several services to its customer
to meet their requirement . Some relationship between the banker and customer based on the
functions of banking are discussed hereunder.

Debtor and creditor .The general relationship between banker and customer is that of a
debtor and creditor ,i.e. .., borrower and lender based on the existing state of the account. Banker
can use the money deposited with him in a manner deemed fit and it bound to repay the deposits
as and when the customer demand ,but the customer does have a right to claim identical notes
and coins

There are some differences in this relationship compared to that of commercial debtors and
creditor relationship .

a. Commercial debtor pays the amount on specific date or earlier or whenever creditor
demand at creditors place or any other place without any restriction as to the receipts and
payment of money where as banker debtor is not bound to repay on his own until the
depositor demands the money from the bank and only at the place the banker and during
the specific banking hours.
b. Banker get deposited without any securities where as very often commercial debt is
raised by offering adequate security.
c. Law of limitations is applicable to commercial debt from the date of debt where as in
case of bank debt it start from the date of demand by the customer.
d. Commercial debtor can closed the account at any time by full repayment but a bank
cannot closed a customer account debt without consent from customer.
e. Commercial debtor cannot combine the accounts of his creditor but a banker can combine
the accounts of its customers .
f. Interest rates in respect of commercial debt are generally high and driven by the market
condition of demand and supply but bank debt deposited interest rate are lower and fixed
by the a banker.

Principal and Agent. Section 182 of the Indian contract 1872 defined that An agent is a
person employed to do any act for another or to represent in dealing with third person. The
person for whom such act is done or who is represented is called the principal.

A banker performs many services to the customer in performance of which banker act as
an agent for the customer and such service include
a. Buying and selling of securities on behalf of the customer
b. Collection of cheques dividend warrants etc. on behalf of customer
c. Payment of insurance premia, telephone, etc.
d. Acting as trustee attorney executor representative of the customer

Any money interested to a banker as an agent of the customer with specific instruction cannot be
combine with other money in his hand as debtor and creditor

Fiduciary Relationship .The fiduciary relationship between the banker and customer
arises when the money is paid to a bank with special instruction or to retained the same pending
further instruction or where instruction are given by the customer that a part of the amount laying
in his account be forwarded to another bank to pay a bill and the amount is sent by banker as

Trustee and Beneficiary .when money is deposit by customer for a specific purpose till that

purpose is fulfilled , the banker is regarded as a trustee of the money . Similarly if the customer

deposits securities or valuables with the banker for safe custody , the banker acts as a trustee

of his customer and the customer continues to be owner of such valuables deposited with the
banker . But when borrower transfer to the banker certain shares in a company as a collateral

security ,no trust is created in respect of such shares.

Bailor and Bailee.. A banker becomes a bailee [not a trustee or agent ] when he receives

gold ornaments or important document for safe custody and is bound to return the identical

articles on demand . Customer [bailor] has to pay safe custody charges . A banker as a bailee

has certain duties , such as , to take reasonable care of the goods bailed not to make

unauthorized use of goods bailed , mix bailor s goods with his own goods ,to returns the good

on the fulfillment of the purpose ;and to deliver to the bailor increase or profits [dividend on

shares or interest on debentures, etc. on goods bailed . Banker has a right to recover the charger

or any expenses in connection with the bailment or compensation for any loss sustained by the

banker by reason that the bailor was not entitled to make the bailment or to receive back the

goods bailed.

Pawn or and Pawnee. A Pawan is defined to be a bailment or delivery of goods by a debtor

to his creditor as a security for money borrowed .Banker is Pawnee the customer a paw nor and

goods are pawn. The Pawnee has the right to receive the payment from the paw nor towards any

extraordinary expense incurred in safeguarding the pledged the goods and a rights to sell the

pledged goods if the paw nor makes default on the loan . The Pawnee has duty to return the

goods on receipts of.

Mortgagee and Mortgagor. Mortgagee is transfer of an interest in specific immovable

property for the purpose of securing the payment of money advanced or to be advanced by the

way of loan, an existing or future debt or the performance of an engagement which may give rise

to pecuniary liability. Mortgager is borrower customer and Mortgagee is lending banker. The
relationship is established when mortgagor executes a mortgagee deed in respect of his

immovable property in favor of the mortgagee or deposits the title deeds of his property with the

bank to create an equitable mortgage as security for the advance. Banker can sell the property

with the permission of the court to realize his debt.

Lessor and Lessee.. When a customer hires a looker in the bank safe deposit locker the bank

undertake to the necessary precaution for the safety of his articles left in the locker and the

relationship created is that of lessor and lessee .

Guarantor and Guarantee.. Guarantor is a person who gives a promise for the payment of

some debt in case of failure of another person who in the first instance is liable for such payment.

Bank obtains guarantee in certain advances. The guarantor executing the guarantee deed

assurances the bank holding the guarantee that any breach of the contract of ,discharging the

liability by the borrower the guarantor would make good the amount.

Bank also give guarantees by the way letters of credit for imports of goods where as the

undertakes to pay the pay the amount without any demur on mere demand on the ground of non

performance .

The relationship between banker and customer in different types of transaction is given in a

tabular format hereunder.


Deposits account or CC A\C in Debtor Creditor
credit balance
Advances A\Cs =Debit Creditor Debtor
Collection of cheques . Sale of Agent Principal
purchase of Securities / shares
Standing Instructions
Purchaser of Draft Debtor Creditor
Payee of a Draft Trustee Beneficiary
Cheques deposited pending Trustee Beneficiary
instructions for disposal thuch
cheque ere of
Locker Lessor Licensor Lessee Licensee
Mortgage of Immovable Mortgagee Mortgagor
Wrong credit given by the bank Beneficiary Trustee
till the amount is recoverd

Duties or obligation and rights of a Banker

There are certain noticeable aspect of banker Customer relationship which have a important

bearing on the day to today business of banking .

The general obligation of a banker towards its customer are.

a. Obligation to honor the cheques when the balance in the account is sufficient to meet the

payment of cheque, the cheque is otherwise in order and presented for payment in

accordance with the provision of Negotiable Instrument Act as discussed in the chapter

NI Act .
b. Obligation to maintain secrecy the foundation of the banker and customer relationship

is of confidence and secrecy. The banker should take all precaution to ensure that the

state of affairs of customer account is not made known to others by any means without

the consent of the customer . The duty is continuing even after the account is closed or

the customer has died.

Exception to the obligation to maintain secrecy . A banker is justified in disclosing the

information about his customer account on reasonable grounds as stated below.

Disclosure under the compulsion of Law. When the law requires such disclosure ,it cannot

overridden .The banker obligation to his customer is subject to his duty to the law of the

land . Such occasion are.

Under section 131 and 133 if income Tax Act 1961 ,Income Tax Authorities have powers to

call for information from banker for the purpose of assessment of the banks customer .

Under section 4 of Banker Evidence Act 1891 , a banker may asked by the court to produce

a certified copy of his customer account in his ledger .

Under section 45 of the RBI Act 1934 the RBI is empowered to collect credit information

relating to customer from their bank.

When Garnishee order nisi is received the banker must disclose the nature of account of a

customer to the court .

- Disclosure in the interest of public a banker is justified in disclosing the information

relating to his customer on the ground where money is kept for extreme political purpose

in contravention of any law, on the ground of unlawful association , account of terrorist

body to avert any danger to the state account of enemy in time of war and when sizable

funds are received from foreign countries by the customer .

- Disclosure in the interest of the bank Banker may disclose the affairs of a customer to

protect his own interest legally disclosure to the guarantor or solicitor for the recovery

of dues of a customer .
- Finally a banker may disclose the information about his customer account on the express

consent of a customer.

The Rights of a Banker

a. Banker Right of general lien. A banker may in the absence of a contract to the contrary

retain as a security for the general balance of account any goods or securities bailed to

Essential of banker general lien there must not be a contract to the country , the property

must come his hands in his capacity as a banker , the possession must have been obtained

lawfully and the property was not entrusted to the banker for any specific purpose .
Example. Cheques deposited for the collection ,Dividend or Interest paid to the banker

under a mandate from the customer securities deposited to secure a loan have not been

collected after the closure of the loan etc.

The rights of general lien is not barred by the operation of the limitation act and the

banker can retain security even in case of time barred debt . The rights of general lien

applies to all those security goods and documents that comes into the hands of a banker in

the ordinary course of his business as the banker of his customer and not in any other

capacity .It can be exercised only in respect of goods or securities standing in the name of

the borrower only and not jointly with others.

B. Banker rights of set off . When a customer keeps two or more account at the bank ,

some of which are overdrawn and some in credit the bank has a right to combine such

two or more account and pay the resultant balance ,if any upon a demand being made by

the customer ad such rights is known as Banker rights of set off .This can be exercised

only in respect of debts i.e. ,. Credit balance held in the account and not in respect of

securities wherein he has rights of general lien as discussed above.

Rights of set off can be exercised only in the respect accounts in the same name and in

the same rights in respect of debt due (not in respect of debt future debt),amount must be

certain and in the absence of the contract to the contrary by giving a formal notice to the

customer .Exercised of right of set- off is at the discretion of a banker .Banker has the

rights of set-off before a Garnishee order is made effective.

Automatic .. The right to set-off all account arises immediately in the following instance
- On the death ,mental incapacity or insolvency of a customer .
- On the insolvency of a firm or on the liquidation of a company .
- On the receipt of a garnishee order .
- On receipts of the a notice of a second mortgage over security charged to the bank .

C. Banker rights to claim incidental charges.. Banker has rights to claim charges on un

remunerative account which may be in the form of service charge ,processing charges, ledger

folio charges appraisal charges penal charges handling collection charges commitment

charges so on.

D. Banker rights to charge compound interest ,. Banker are given a privilege of charging

compound interest except in the respect of Agriculture Advances.

History of HDFC Bank

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited', with
its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995. The Housing Development Finance Corporation (HDFC)
was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over
1416 branches spread over 550 cities across India. All branches are linked on an online realtime
basis. Customers in over 500 locations are also serviced through Telephone Banking. The Bank
also has a network of about over 3382 networked ATMs across these cities.

The promoter of the company HDFC was incepted in 1977 is India's premier housing finance
company and enjoys an impeccable track record in India as well as in international markets.
HDFC has developed significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit facilities. With its
experience in the financial markets, a strong market reputation, large shareholder base and
unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian

The shares are listed on the Bombay Stock Exchange Limited and The National Stock Exchange
of India Limited. The Bank's American Depository Shares ( ADS ) are listed on the New York
Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global Depository Receipts
(GDRs) are listed on Luxembourg Stock Exchange.

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory approval
process. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC
Bank for every 29 shares of CBoP.

The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be
over Rs. 1,63,000 crore. The amalgamation added significant value to HDFC Bank in terms of
increased branch network, geographic reach, and customer base, and a bigger pool of skilled

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks in
the New Generation Private Sector Banks. As per the scheme of amalgamation approved by the
shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received
1 share of HDFC Bank for every 5.75 shares of Times Bank.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of RBIs liberalization of the Indian Banking Industry in 1994. The bank
was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office
in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in
January 1995.

HDFC is Indias premier housing finance company and enjoys an impeccable track record in
India as well as in international markets. Since its inception in 1977, the Corporation has
maintained a consistent and healthy growth in its operations to remain the market leader in
mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market segments and also has
a large corporate client base for its housing related credit facilities. With its experience in the
financial markets, strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

HDFC Bank began operations in 1995 with a simple mission to be a World Class Indian Bank.
It realized that only a single minded focus on product quality and service excellence would help
us get there. Today, the Bank is proud to say that it is well on its way towards that goal.

Business Profile
HDFC Bank caters to a wide range of banking services covering commercial and investment
banking on the wholesale side and transactional / branch banking on the retail side. The bank has
three key business segments:

Wholesale Banking

The Banks target market is primarily large, blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, small & mid-sized corporates and Agri-based businesses.
For these customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which combine
cash management services with vendor and distributor finance for facilitating superior supply
chain management for its corporate customers. Based on its superior product delivery / service
levels and strong customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals, companies from the
domestic business houses and prime public sector companies. It is recognized as a leading
provider of cash management and transactional banking solutions to corporate customers, mutual
funds, stock exchange members and banks.

Within this business, the bank has three main product areas - Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities, and Equities. With the liberalization of the
financial markets in India, corporates need more sophisticated risk management information,
advice and product structures. These and fine pricing on various treasury products are provided
through the banks Treasury team. To comply with statutory reserve requirements, the bank is
required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio
Retail Banking
The objective of retailed banking is to provide its target market customers full range of financial
product service giving the customers a one stop window for all his /her banking requirement .The
product are backed by world class service and delivered to customer through the growing branch
network as well as through alternative delivery channels like ATMs Phone Banking, Net banking
and Mobile banking.

Key Executives
Name Designation

A N Roy Director
Aditya Puri CEO
Aditya Puri Managing Director
Bobby Parikh Director
KaizadBharucha Executive Director
Keki Mistry Director
Malay Patel Director
PareshSukthankar Deputy Managing Director
ParthoDatta Director
RenuKarnad Director
Sanjay Dongre Exe. Vice President (Legal) & Co. Secretary
Sanjay Dongre Secretary
SashidharJagdishan Chief Financial Officer
ShyamalaGopinath Chairperson

Additional Director

Additional Director

Umesh Chandra sarangi


I. World Class Indian Bank

II. Benchmarking against international standards.

III. To build sound customer franchises across distinct businesses

IV. Best practices in terms of product offerings, technology, service levels, risk management
and audit & compliance
The bank is committed to maintain the highest level of ethical standards professional integrity
,corporate governance and gyratory compliance .
The HDFC Bank is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance. HDFC Banks business philosophy is based on four core
values such as: -

1. Operational excellence.
2. Customer Focus.
3. Product leadership.
4. People.
5. Tailored solution for customers
6. Providing the solution at right price
7. Have wide and extensive reach
8. Ensure Unmatched customer service.
The objective of the HDFC Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-step window for all his/her
requirements. The HDFC Bank plus and the investment advisory services programs have been
designed keeping in mind needs of customers who seeks distinct financial solutions, information
and advice on various investment avenue

The banks five core value are

Customer focus
To achieve sustainable competitive advantage ,HDFC Bank relies not only on strong customer
service experience .The bank has invested in CRM Technology which provide trigger for
selling various product depending on the customer profile .The Relationship Manager is trusted
advisor to the customer he/she has the best interest of the customer and can advise competitor
product if the banks product does not fit the customer needs.

Operational Excellence
With a dedicated team to monitor quality and service standard many of the HDFC Banks process
segment, including HR Operational are ISO certified. Over 2200 quality improvement project
aimed at improving operational excellence have been successfully implemented Over550
employees have qualified for Six Sigma Certification and over 80 have earned the yellow belt.

Product Leadership
HDFC Banks has consistently developed innovative Product and service that attract its targeted
customer. Focusing on high earning growth and low volatility, HDFC Bank continues to develop
and distribute product / service that reduce the cost of funds by leveraging its extensive branch
network .The Bank actively tracks the performance of various products and depending on the
feedback received tweaks product features to better address customer needs.

We recognize Social and Environmental aspect as essential element of a sustainable business
philosophy and are committed to enhance our performance on these fronts. It is our endeavor to
drive a paradigm shift of viewing ESG(Environmental ,Social and Governance ) parameter from
risks to opportunities and to incorporate social and environmental aspects into our business by
embedding sustainability in the stakeholders, Product s and services.

People are the Banks greatest strength. HDFC Banks will believe that the ultimate identity and
success of our bank will in the exceptional quality of our people and their extraordinary efforts.
For this reason ,we are committed to hiring developing motivating and retaining the best people
in the industry.

Business Strategy
Our business strategy emphasizes the following .

. Increase our market share in Indias expanding banking and financial service industry by the
following a disciplined growth strategy focusing on quality and not on quality and delivering
high quality customer service .

. Leverage our technology platform and open scalable system to deliver more product to more
customers and to control operating costs .

. Maintain our current high standards for assets quality through discipled credit risk management.

. Focus on high earning growth with low volatility.

. Continue to develop product and services that attract our targeted customer and address
inefficiencies in the Indian Financial sector




Focus on effective work place organization

Believe in

Small changes leads to large improvement

Every successful organization has their own strategy to win the race in the competitive market.
They use some technique and methodology for smooth running of business HDFC BANK also
acquired the Japanese technique for smooth running of work and effective work place

Five s part of kaizen is the technique which is used in the bank for easy systematic work place
and eliminating unnecessary things from the work place .
Branch banking as a vertical of the bank comprise all branch units of the bank .It is the face of
the bank each branch will be headed by a branch manager branch banking staff need to required
customer from their catchment source their liability account and cross sell various bank product
like assets ,HSL and de-mat accounts Credit cards and third party product like insurance
(General and life insurance ) and Mutual funds etc.. Branches have to focus on generating leads
from walk in customer ,calling the customer who have various relationship with the bank and
solicit business from them their family member and their friend and relative each branch will
have staff responsible for sell and customer engagement and operation and service of customer .

Brach will also have contract Executive (co- ex) who will wished the customer at their door
step ,complete the documentation and ensure set up of the account .Branches not only serve retail
customer but also serve the customer of various other vertical of whole sale banking etc.

Branches are divided into various cluster which in turn form Circles / Zones . Brach Banking
has well laid out organizational set up duly by branch control units.

Product (Liability and HNW) Direct sales ,Direct Banking and Marketing are
vertical which supports the branch banking teams to achieve their set objectives .Liability
Product team includes teams like saving account ,current account ,salary account ,fixed deposits
who ensure that the product are designed to suit the customer requirement ,competition
benchmarked and appropriately priced for the end customer .They also assist the branches in
setting their annual targets , running area specific campaigns ,targeting specific customer
segments. In order to share best practices ,product teams publish success stories to act as a
catalyst to source similar business in branch locations.

Direct sale is the channel who place their resources in branches to comb the catchment area
do door to door activity in identifying customer and acquires their accounts for the branch .
Direct sales team has dedicated sales resource called contract sales Executive (CSE)

Direct Banking Channel. The customer of the bank need not do their banking transactions
in the branch which is open to public during specified timing and on specified dates. The
customer can access their account conduct transactions in their account 24hrs *7 days a week
and 365 days in a year .

Customer are provide with ATM/ Debit cards and Forex plus cards ,Prepaid cards which can be
used for transacting in ATM or using at merchant locations or conducting E- Commerce
transaction in any part of the globe .These cards can be used not only in ATMs of our bank but
can be also used across the globe in any ATM or point of sale terminals of any bank .
Bank also offer its customer Mobile Banking Facility and on the hand held mobile devise the
customer can do seamlessly all the financial and non financial transaction

Bank has sophisticated Phone Banking with IVR technology which customer can dial specified
number and using their customer ID and Customer Telephone ID they can access their account
and during Specified hours they can also interact with Phone Banking Agents.

Marketing teams helps branches and sales teams in the running the sales campaigns and placing
the required marketing material and displays to each branch to enable to build the brand of the
bank .

Branch structure








These branches located in these centers have to generate more liability business like say rs. 1.00
to 1.25 crores of current and saving values per month. These locations have immense potential to
source business from business segment Salaried class agriculturists, industrialists etc., by
offering various sophisticated product. In addition, the branch will also be assisted, depending on
the potentiality, a team of four to six sales staff from direct sales.
On the same lines, a typical semi urban (Location where population is less than one lakh but
above ten thousand) and rural (Location where population is less than ten thousand) the branch
structure will be as above.

These locations have to incrementally add rs. 30 lakhs of casa deposit every month as a bench

Small location /underbanked /unbanked (3 men /2 men model)

Of late we are opening number of branches in smaller locations where population is less than
10000 or even in unbanked location. This is a typical 3 men branch model where the BM doubles
up as authorizer two men branch model there will be only one BM cum Authorizer and one teller.
The target set are limited

Relationship manager. In addition to above structure, bank has product for various high net
worth individual. The bank has classic, preferred and Imperia program, targeting specific
customer segment basis their relationship value. when a branch races the required customer into
the respective programmers a dedicated relationship manager /imperial relationship manager
will be provided to the branch to exclusively cater to the needs of such customer .Till such time
branches races 200 group in preferred or 125 group in imperia program me ,Branch manager acts
as relationship manager.

Future Activities





It is great experience for me for doing internship in bank here I will learn many about how bank
will and basic of banking system although my tropic was customer relationship management.
The staff of the bank are very good but they dont have enough time to tell me about their job
and how they will do. But I will observe all the activity in the bank how all the staff are doing
their job. Here I will learn how to talk with customer and how to solve their problem related to
bank and how to approach for new product to the customer and how to retained their customer if
any customer wants to closed his/her account by offering him offer related to their account. My
branch was small with seven staff .So the function of this bank is only related to opening of
account and providing loan to the customer although its facilitates many services like providing
many product like credit card and auto loan it does not provide home loan and the account will
open with minimum fifteen thousand and you have to maintain 5000 in your account in saving
account and in current account its start with 75000 thousand and you have to maintain at least
25000 in your current account .The bank will also offer de-mat account in bank and it is only the
bank in my city which offer de-mat account. They will also provide information related to offer
by telephonic communication related to offer related to loan, chequebook and credit cards etc.

I was also making call to the customer and filling saving account form and current account form
for the customer and many activities like this. I am also going for account opening, insurance and
pos machine. Pos machine is the machine at which we make instant payment to the shopkeeper
by our debit card and credit card. My town is small town and very backward area people in this
area does not have knowledge about credit card and pos machine so it is tough to sell all these
kinds of product related to bank. The image of this bank is also very high people think that this
bank is only for high class family because the opening of account in this bank start with fifteen
thousand. People will think if you open in this bank it is necessary to save 5000 in your saving
account and if you dont do they will charge for that.


A. Identified/observed in the organization for internee

Most of the tasks are done by man power, whether they still use online process to
complete those tasks so sometimes I get bored due to too much handwriting like
as desk pass of office documents.
Banks dont have any guideline book for customers about their products so I have
to talk too much with the customers for giving information about their products.
The bank personnel were very busy with their activities, sometimes they failed to
co-operate me to complete this report.
Here is reason for disappointing me because sometimes officers dont co-operate
well with the uneducated account holder rather than the educated account holder.
Here I think that the customer is a customer and I promise to give better service
than whether he is educated or not.
Due to low configuration of PCs posting and other procedures sometimes take too
much time and for this lengthy processing time sometimes customers get angry
and I face the situation.
In this bank space are small so I have no specific space for doing my work.
Sometime bank staff so pressurize by the senior staff that they do unethical work
like doing of RD, life insurance without his/her permission.
This is allocate to express the finding of the study. Statistical tools are applied to analyze it
include the data result of each and every tables charts and graph.

As we know that we are always did the research to find the secrets and suggest the company on
the basis of these findings .It is said to be the core part of the research for which the research is
done. The findings of this research are concrete and very interesting.

The finding of the descriptive research of the topic customer relationship with the bank are as

1. The bank is dealing with married ,unmarried ,govt.empolyees as

well as self -employed and student which means that bank has
relation with all categories of people and confined to a particular
2. The main reason for customer to contact with the bank for loan and
advances out of the total respondents 78.4% prefer to take loan
from this bank. This show the services of this is very good.
3. Maximum no. of HDFC bank customer whether educated or
uneducated are aware about the emerged new bank like Union
bank, Bank of Baroda, Axis bank approximately about 75% of the
respondents replied yes , those who were aware and still preferred
this bank most of them are business man
4. It was revealed that 85% of the customer prefer HDFC bank and
believe that is the sound bank which is financial well versed and
concrete institution. This is the only bank in my home town which
help a lot in demonization.
5. Maximum no. of customer is not aware of internet banking that is
the bad news for the bank and its initiative taken by e-banking
6. According to survey of my internship most the customer are not
aware about credit card and how to use it.
Questionnaire from which I have collected the data
7. Do you think HDFC Bank staff is maintaining good customer
relation through its relation
a. Yes b. No
Yes 75% people say that yes, they
make good relation with
customer by making a regular
call on monthly basic or
through email.
No 23% people say no they do
not make a good relation with
customer they are treated
equally to all customer when
some rich person come they
talk differently as compared
to middle class or poor people
and doing proper job

8. Does the bank inform you about the new service /charges in the
services on the time?
a. Yes b. No c. dont know
Yes 85% people say yes the bank
will inform me about new
services /charges on time
through different mode of
communication like through
telephonic calls, personal visits
and email. I am also evidence
of this I also take this kind
responsibility to inform the
customer through telephonic
No 12% people say no the bank
will not inform me about new
services and charges these are
people who either does not
have register mobile at present
nor using any type of social
site and does not eligible for
the offers
Dont know 3% people say I dont know
about I have open this account
only because my friend will
recommend so I will open
otherwise all work I have done
with another bank

9. Do you think their charges nominal as compared to other

a. Yes b. No
Yes 92% people say about this
bank will charge very much
form other bank they charge
for non maintenance charge
other bank will do this they
charges 880 for their ATMS
cards other bank will charge
very less amount of money.
No 8% people say about this bank
will charge but the facilities
provided by this bank is good
and if they do not do then
HDFC bank will SBI and you
have to stand in que late hours
for depositing money or
withdraw money

10. Do they give certain attractive offers?

a. Yes b. No
85% people says yes if they maintain balance in their
account then bank will offer many services and like
providing credit cards and insurance and loan at cheaper
interest rate and many others rest are not maintaining
balance so they are eligible for the offers.
11. Are you satisfied with the range of service provided by bank?
a. Yes b. No
53% people will satisfy with the range of product and they
are using it and 45% people are not satisfied with range of
product because in many product of the people are not
aware of that kind service or product and bank staff will do
without acknowledgement them so for this reason they not
satisfy with the range of the service/product of the bank
many of them are not their credit card then also they have
pay money for that.
12. Do they entertain quarries in a proper manner?
a. Yes b. No
73% people says yes they properly handle their quarries in
proper manner and trying to solve my problem very less
and rare chance that will not solving their problem
13. From how many years you are using services offered by HDFC
a. 0-2 years b. 2-4 years c. 4-6 years
d. more than six years
49% people says that they are using service of this from
past 5 years and 26% people says they are using service of
this from past 3 years and 15% people says that they using
this bank from past 1 and half years because they took two
wheeler loan from this and rest are opening their account
recently when I am present in the bank
14. The Bank provides its services at the time it promises to do so.
a. Strongly agree b. agree c. disagree
d. strongly disagree
62% people says yes it is true bank will services at the time
it promise to do so and 16%people says not exactly but a
little bit here and there at the time they will promise to do
so, and 22% rest people are saying no your bank will not do
his work on time.
15. Reason for choosing this bank.
a. Brand image b. Services c.
Recommended by friends d. Range of product
78% Most of the people says recommended by friends
because this bank believe in mouth to mouth advisement
and by saying to the customer please open your relative
account in my bank rest are coming self to avail services
from bank.

16. How you rate the quality of services at the bank.

High b. Average c. poor
82% people are saying the quality of services are very good
and 7% to 8% people are rate average quality of services
and rest are saying the quality of services provided by bank
is poor.

17. When a customer has a problem, this bank shows a sincere interest
in solving it.
a. Strongly agree b. agree c. Disagree
d. Strongly disagree
82% people are saying the quality of services are very good
and 7% to 8% people are rate average quality of services
and rest are saying the quality of services provided by bank
is poor
18. Which type of a/c do you have in the bank.
a. Saving account b. Current account c.
de-mat account d. Salary account

Saving account 68% Due to loan or for

saving purpose
Current account 22% For getting instant
De-mat 3% Not interest but
force fully open
Salary account 7% Bank staff does
not want to open
Most of the people open their account due to nearly 68%
because they have give installment of their loan and some
which really want to open their account for saving
purpose ,nearly 12% people open current account in this
bank who have big business because opening of current
account will start from 75000 in this bank and you have to
maintain at least 25000 in your account otherwise you have
to fine, and nearly 3% of the people open de-mat account
forcefully open or only to make good relation with bank
staff they open their account and only 7% people open their
salary account in this bank because bank does not want to
open salary account in their bank because they will not get
interest on it .
19. In case have yours a/cs in more than one a bank which one is most
preferred bank. (give only one bank name)
43% people says if services is concerned then your bank is very
good in this process because you are providing very fast services to
the customer and will concern about their customer but if charges
is concern then your bank is so much as compared to other bank
25% people says they will shift from this bank to other bank like
pnb and union bank because they also provide good facilities like
your bank provide as compared to your they will charges less and
provide better guidelines to the customer. Your bank staff will also
not doing ethical business.
20. Which facilities you are availing at your bank.
a. ATM/debit card b. Credit card c. Insurance
d. Loan

ATM/debit card 85% Most of the people

are using their
ATM cards
Credit card 35% It is provided to
almost every
customer of the
bank but vey less
are using.
Insurance 10% Very less
Loan 85% Most of customer
are joining the
bank only for the
loan purpose
Most of people are using their ATM card nearly 85%
people are using ATMs cards because now a days the era
have been changed every person do not want to carry hard
cash. Now comes to Credit cards my bank will provide
almost every customer to Credit cards but most of people
are not using and put in locker only 35% are using their
credit card because most the people dont know about
credit cards and its function ,Now comes to insurance part
as we know indian mentality they believe in god they never
think about insurance and does not want buy insurance and
asking about how much interest and how commission you
will get after doing my insurance all these type of question
are asking from bank staff ,and last one Loan every
customer avail loan from the bank using this facilities
because bank is only set to provide loan to the customer
whether it is two wheeler loan or car loan or personal loan.
21. Any specific services you expected from your bank.
22. If any option is given to you would you like to shift from present
a. Yes b. No
(If yes then tell me reason)
Nearly 30% people want to shift from HDFC bank because
they cannot maintain their maintenance balance in there
account and many charges they have to pay if they do not
maintain so they want to shift and charges were cut from
their account.
23. How often do you use debit card?
a. Occasionally b. Regular c. Never

Occasionally 15% People from rural

Regular 84.5% Most of people
are using their
debit cars
Never 0.5% Only those
people who dont
look after
opening account.

24. How often do you use credit card?

Occasionally b. Regular c. Never
Occasionally Almost 23% people are
using their credit card on
festivals season only
Regular Very less people are using
credit card 7% who know
the function of credit cards
Never Almost 70% people are not
using their credit cards
because they dont know
the function of credit card
and they put in their locker
like waste things

25. Do you face any problem regarding the services provided by your
preferred bank?
Nearly 68% people face problem regarding services offered by
bank because they dont know about the charges charged by bank
if they failed and many staff were unethical banking like doing RD
without knowing that they are doing RD like that many problem is.
26. Do you recommend others to avail the facilities from HDFC Bank?
a. Yes b. No
Most of the customer are no willing recommend this bank
27. Are you aware of net banking services offered by the bank?
a. Yes b. No c. Not decided
YES Almost 55% people are
aware from net banking
services offered by the bank
because most of customer
are using funds transfer
facilities from net banking
like NEFT/RTGS and imps
all these people are young
generation business man and
belong rich family and using
net banking service for all
kind of services provided by
the bank.
NO Nearly 35% people are not
using net banking facilities
provided by the bank
because they are 45-60 years
old and they dont know
about net banking and they
are big business man so they
dont have enough time to
learn all these things.
NOT DECIDED 10% people are those who
only come to the bank either
for depositing money or
withdraw money they

28. Does your bank educate you about the net banking services being
a. Yes b. No c. Dont

YES 50 The bank will provide
pamphlets to the
customer who are
coming regular
because they are
coming regularly so
whenever pamphlets
are present they will
distribute. And bank
staff will also teach
how to net banking
whenever they feel
NO 35 Most of people say no
I dont think and I
dont have an idea
about that some
people strictly say no
Dont know 15 Very less people dont
know about net
services offered by
Many Web sites also make recommendations to customers. Customers may find these useful, be
ambivalent, or find them a waste of time and space. Why? Because, to state the obvious again,
the better we know our customers, the more we can directly address their needs. And sometimes
we don't know them as well as we think we do.

So we can make recommendations on what we know we know, and find out what we don't know,
before making recommendations. For example, we do know what a customer has done on our
Web site (well, we should). If we base our recommendations on a good dose of Web site
behavior, then we might have a better chance of being useful. Also, if we ask customers to select
the things that they find important, or identify with, before we start making recommendations,
we will also have a better chance of being useful.

In general, if customers' needs are not well understood, it is better to provide customers with
adequate, quality information and leave it up to them to make their own decisions, rather than
take the liberty of second-guessing their needs.
The main objective of the report has been to assess the current state of the CRM development within
Indian credit institutions and to evaluate its organizational impacts.

The study has identified issues that need to be assessed if CRM is to be used more productively to take
advantage of new opportunities.




CRM should be viewed neither as a new competitive tool nor as a cluster of technologies, but rather as a
set of business processes that help manage client credit institutions relationships and improve internal
credit institutions workflow. CRM in fact, is a process that helps to maximize medium to long term profits
as a result of a better customer knowledge, customized treatment of customers or a perception of it, and
improved fulfillment of customer needs. These goals can be better reached by adoption of enabling ICTs.
Ideally, an effective CRM project needs to be very well integrated in the credit institution organization.

Implementing a CRM process means gathering flows of information concerning actual and potential
customers. Information flows coming from delivery channels should ideally be consolidated into a
customer database in order to develop customer profiles that enable banks to improve customer services
CRM based on ICT can strengthen the marketing strategy of the financial organization by making more
effective the management of all the information concerning customers.

The exploitation of CRM appears to have a positive impact on the quality and quantity of information
conveyed to customers. This is particularly relevant for the most sophisticated customers, i.e. those who
are used to dealing with new technological tools and are not afraid of interacting with the bank through
the telematics channels. Nevertheless, distant interaction is not as effective as personal interaction
between customers and their bank. Therefore, according to almost all of the bank representatives, e-
business supports low value information needs, while more sophisticated requests for information can be
addressed only through personal interaction between the bank and the customer that usually takes place at
the branch.

Almost all the credit institutions have adopted the strategy of launching their e-business services as an
additional service rather than as an alternative to offline services. The impact of e-business in banks is
being limited by their strategic decision not to cannibalize their branches. This research highlights how
some of the credit institutions which had originally invested only in the development of a virtual channel
had to drastically re-define their customers or by opening a call centre. The credit institutions
representatives argued that their customers want a choice of channels and they are adopting a multi-
channel strategy. Most of the banks consider that since Internet and telephone are most useful for
managing operational and low value added tasks, the traditional delivery structure still has a fundamental
role and can be developed to specialize in high added value tasks and consultancy services.

Most financial suppliers believe that customer support services are a core business in the financial
industry. Most of the financial organizations choose to internalize the customer support contact center,
whereas others choose to outsource front-office customer care tasks to contact center companies. But the
final elaboration of data on customers and their exploitation for CRM strategy is maintained in house and
involves the bank management personnel.

The customer retention is the result of an increasing degree of product personalization and differentiation.
Credit institutions apparently prefer to compete on quality (product information, broader range of product
and services) rather than on price (meant as product acquisition cost to the customer: price, mode of
payment, delivery). Therefore, product innovation (cross-selling, product differentiation and
personalization) seems to be the crucial issue of the CRM strategy.

Financial institutions have to realize the importance of the technology scalability as well as the
reengineering of the business processes.

A medium to long term CRM strategy requires significant innovation in the organization of the banks
flow of information.

Ideally, CRM technologies and processes could make the slogan the right customer with the right
product at right place and in the right moment possible.
But many banks face the problem of having multiple database with customer information, so that multiple
entries refer to the same customer if he/she holds more than one product with the company. This makes it
difficult for sales people or relationship managers to have a full view of their customers. A number of
CRM deployments have failed because of inconsistent customer data. This problem results in companies
sending, for example, the same offer twice to the same customer.

Hence CRM is a vital tool for financial institution to prosper.