Literature Review

An initial scoping review of the available literature identified key knowledge gaps which could
be addressed readily by undertaking secondary analysis of existing data sources. Consequently,
the subsequent full review of the literature reported in this paper incorporates some new analysis.
First, the Baseline Survey of Saving provided detailed quantitative evidence on savings holdings
and saving activity and its relation to current account exclusion. The survey was unusual in
capturing both informal and formal saving, allowing us to construct of a typology of saving based
on the combinations of approaches used and exploration of the approaches used at different income
levels and variations within a subset of the lower-income families. Second, the evaluation of the
first pilot of the Saving Gateway provided qualitative and quantitative evidence on incentives to
save. We have re-analysed data from depth interviews with scheme participants and from surveys
with participants and a control group to provide a better understanding of the impact of a range of
incentives to save with regulated providers.

In a highly regulated banking industry, no much innovation is made to develop new financial
products. Given their respective roles as bankers or finance companies, all offered absolutely the
same products. In fact, it takes little time and no additional investment to develop a financial
product or service. But the drawback is that no brand can be marketed with a unique Selling
proposition (USP) for long, as it can be copied immediately after the nationalization of 14
commercial banks in 1969, banks have launched a no. of programs for the development of back
ward regions and upliftment of the weaker sections of the society. But this product line is not
sufficient to compete with that of non-banking financial institutions. (Dr. Rajagopala Nair, 1999)

The most important component of the Marketing mix is Price. The interest rates of banks are
regulated by the Reserve Bank of India, and the rates for other services by the Indian Banks
Association. Price therefore, to a certain extent becomes an insignificant factor in the Indian bank
marketing. Though the price factor is very important, it takes the second place in the Indian
context, mainly because of the nature of banking. Banks in India are required to play a
developmental role with societal approach, in which profit becomes secondary. (Varde V and
Singh S, 1983).

Place and distribution factor in bank marketing refers to the establishment and functioning of
a network of branches and other offices through which banking services are delivered. The extent
and distribution of banking services can be determined to a certain extent by the spread of bank
branches and the reach of these banks. The channels of distribution for bank’s services should be
thought of as any means used to increase the availability and / or convenience of the services that
help to maintain existing bank users or increase their use among existing or new customers.
(Donelly J H, 1976).

In the bank marketing concept he suggested that market segmentation is necessary for banks.
He presented different possible segments that banks need to recognize. Also, he explained the
concept and the features of market mix for the marketing of banking services. He discussed various
issues related to Market Information System, Market Research, Marketing Intelligence System and
Bank Marketing in Indian Environment. (Jha, 1997).

Saving promotes asset accumulation, helping to create a buffer against shocks and to relax credit
constraints, thus providing an important pathway out of poverty. Although increasing evidence
shows that the poor are willing and able to save, they do so largely through informal mechanisms,
such as storing cash at home, joining savings clubs, and buying livestock and durable goods, which
are illiquid and riskier than bank accounts (Collins, Morduch, Rutherford, and Ruthven 2009;
Karlan and Morduch 2010; Dupas and Robinson forthcoming). Unfortunately, the majority of the
world’s population generally lack access to formal savings accounts or banking services of any
kind (Banerjee and Duflo 2007).