EXECUTIVE SUMMARY

Retail Banking is the world over have undergone for –reaching changes in the last few
years, spurred by deregulation and liberalization, as well as rapid development in
communication and internet technology. The past few years has seen dramatic losses in the
banking industry. Most of co-operative banks are not focusing on retail banking for
Attracting more and more account holders or costumers, but now due to competition all
banks adopting retail banking. For surviving in competition AMBARNTH JAI-HIND
CO.OP. BANK LTD., focusing on marketing in retail banking. It will help them for
improve performance or brand image. Due to marketing AMBARNATH JAI-HIND
CO.OP. BANK LTD. reaches to every single customer to make aware them about banks
and banking function. Now customer’s satisfaction is more important for achieving targets
or goals.

Basically AMBARNATH JAI-HIND CO. OP. BANK LTD. is 28 years old and it will
operate only in Ambernath but they want to spread in all nearby rural areas. This bank
believes in grass root banking, customer satisfaction and best quality of service. Their
target customer is belongs to low income group or middle income group, so they want to
meet every single customer and try to conveyance how bank is important for them and
what is importance of bank and saving. It is a financial institution that provides banking
and other financial services to their customers.
Retail Banking is adopted by AMBARNATH JAI-HIND CO. OP. BANK LTD. for growth
in deposits and savings by targeting or attracting maximum number of customer. Need for
study in retail banking in co-operative bank is important because of attracting customer by
using 7 Ps of marketing mix is very challenging in small banks. Need for this study is
understand how AMBARNATH JAI-HIND CO. OP. BANK LTD., face customer or how
they market them. There is an imperative need for them to develop and improve their
capability to understand the changes in their policies, product, services and other facilities
according to the customers.

A Bank is generally understood as an institution which provides fundamental banking

services such as accepting deposits and providing loans. But AMBARNATH JAI-HIND
CO. OP. BANK LTD. is believed in grass root banking and customer satisfaction creation
by providing services. Now Retail Banking is need for every commercial or Public Sector
Banks. The major finding in this study is when AMBARNATH JAI-HIND CO. OP. BANK
LTD. not doing marketing their financial condition is average or not growing its stable
when they create own marketing team their revenue or profit increase year to year or
number of account also increases. Private bank or Public Sector bank mostly provided
 Retail banking in AMBARNATH JAI-HIND CO. OP. BANK LTD.

credit facilities to shopkeepers of business who file income tax return (ITR) or shop license,
but this bank started planning to provide credit facilities to small shopkeepers, hawkers,
peddlers for their daily functioning e.g. provide credit to purchase goods they provide credit
limit of Rs.20000/- with 14% Rate Of Interest.

Retail banking as a business model of banks had evolved over the years from the traditional
banking space. For surviving in competition AMBARNATH JAI-HIND CO. OP. BANK
LTD. started launching new scheme for low income group people, students, working
women. They advertise bank by participating in local event it will helps them to attract
more and more local people, and it is efficient and less costly way of communication and
advertising.

The face of banking in AMBARNATH JAI-HIND CO. OP. BANK LTD. is changing
rapidly. They adopted technology for operations or security they latest software like Core
Banking Solution (CBS).

Now several banks have geared up to this new reality and are in the benefits of investing
in rural marketing and retail banking. They design their facilities and product according
low income group and middle income group customer for attracting them. Indian co-
operative banks growing rapidly as per Indian economy. But need of the study this
particular topic is that increasing competition, ever growing market, easy availability of
the options and increasing population of new customer with huge investing power and
consumption. Also the competition among in product and price increases. So, how in this
competition AMBARNATH JAI-HIND CO. OP. BANK LTD., survive with different
types of scheme and a facility is major reason for this study.
By launching new and beneficiary investment schemes helps AMBARNATH JAI-HIND
CO. OP. BANK LTD., to maximize their customer base. This makes it imperative for
AMBARNATH JAI-HIND CO. OP. BANK LTD. to provide the services and exceed the
customer expeditions to achieve customer delight and loyalty.

The project is all about study how AMBARNATH JAI-HIND CO. OP. BANK LTD.,
provide facilities and services to customer and how they promote their product for
attracting huge market and new customers. Now many bank uses retail banking for
increasing customer base or increase in customer loyalty toward bank.
In internship I learn that how marketing important for banks or how retail banking use by
bank for achieve target and goals. Through study I learnt that customer satisfaction is very
important for every bank for increasing deposits and attracting customers. This study shows
that what is customers need and want from bank and how will going to fulfill these
demands. Retail banking is the best tool in marketing to build a brand image and earn more
and more profit through more customer attraction.
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CHAPTER-1
INTRODUCTION TO TOPIC/PROJECT

1.1. What is Retail Banking?

“Retail banking is a banking service that is geared primarily toward individual consumer.
Retail banking is usually made available by commercial bank as well as smaller community
bank like cooperative bank. Unlike wholesale banking, retail banking focuses strictly on
consumer markets. Retail banking entities provide a wide range of personal banking
services, including offering savings and checking accounts, bill paying services, as well as
debit and credit cards. Through retail banking, consumers may also obtaining mortgages
and personal loans. Although retail is, for the most part, mass-market driven, many retail
banking products may also extend to small and medium sized business. Today much of
retail banking is streamlined electronically via automated teller machines (ATMs), or
through virtual retail banking known as online banking”.
“Retail Banking deals with lending money to consumers. This includes a wide variety of
loans, including credit cards, mortgage loans and auto loans, and can also be used to refer
to loan taken out at either the prime rate or the subprime rate.”

1.2. CHARACTERISTICS OF RETAIL BANKING

1. Banking facilities targeted at individual customers.
2. Focused towards mass market segment covering a large population of individuals.
3. Offer different liability, asset and a plethora of service products to the individual customers.
4. The delivery model of retail banking is both physical and virtual i.e. services are extended
through branches and also through technology driven electronic off sit delivery channels
like ATMs, Internet banking and Mobile Banking.
5. Extended to small and medium size business.

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1.3. ADVANTAGES OF RETAIL BANKING

1. Client base will be large and therefore risk is spread across the customer base.
2. Customer loyalty will be strong and customers tend not to change from one bank to another
very often.
3. Attractive interest spread since spreads are wide, since customers are too fragmented to
bargain effectively: Credit risk tends to be well diversified, as loan amounts are relatively
small.
4. There is less volatility in demand and credit cycle than from large corporate.
5. Large numbers of clients can facilitate marketing, mass selling and the ability to
categories/select clients using scoring system/data mining.

Retail Banking unlike Corporate Banking is primarily driven by number of customers each
bank possesses more the number of customers more will be the profitability and strength
of the retail banking models. AMBERNATH JAI-HIND CO.OP. BANK LTD. would be
more comfortable with a broader base and would focus on building up the customer base.
To achieve that marketing promises and delivery of products and services are the top
priorities of AMBERNATH JAI-HIND CO.OP. BANK LTD. in the retail banking space.

1.4. MARKETING IN RETAIL BANKING AT AMBERNATH JAI-HIND CO.OP.

BANK LTD.

Sir Fredick Seebohmn defines Bank Marketing as “the creation and delivery of customer –
satisfying services at a profit to the bank”.
Kenneth Andrew defines Bank Marketing as “the matching of banks resources with the
customer’s needs in the most profitable manner”.
AMBERNATH JAI-HIND CO.OP. BANK LTD. Look at marketing as a proactive
business strategy aimed at organizational excellence.

The explanation more apt to retail banking space as spelt out by bank as follows:
1. Identify the most profitable market now and in the future

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2. Assessing the present and future needs of customers.

3. Setting business development goals and making plans to meet them.
4. Adapting to a changing environment in the market place

Strategy for retail banking of AMBERNATH JAI-HIND CO.OP. BANK LTD. Is focusing
on the customers because customer is the centre of attraction in retail banking and
marketing and all the activities have focused towards

1. Identify the customers need toward banking product

2. As per their need make changes and development in product
3. Provide them with efficient delivery channels for availing the products.
4. Making them avail the products continuously

The ultimate objectives of the above initiative are to achieve the business objective of
growth and profit for AMBARNATH JAI-HIND CO.OP. BANK LTD.

1.5. MARKETING MIX IN RETAIL BANKING FOR AMBARNATH JAI-HIND

CO.OP. BANK LTD.

Marketing mix in retail banking refers to the different ingredients that make up a good meal
for the customer. The ingredients are structured and offered to the customers to make them
consumer sumptuously and enjoy and get satisfied also. Marketing mix in Retail Banking
is important for AMBARNATH JAI-HIND CO.OP. BANK LTD for provide service and
level of delivery of service should match them consumer expectations. If the customers
like service and product of AMBARNATH JAI-HIND CO.OP. BANK LTD. Or any other
bank then they will go on consuming it continuously, the feast offered.

Following are fundamental ingredients of an effective marketing mix in retail banking or

use by AMBARNATH JAI-HIND CO.OP. BANK LTD.
1. Product

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2. Price
3. Promotion
4. Place
5. Process
6. Physical evidence

Basically the above seven Ps play a vital role for the AMBARNATH JAI-HIND CO.OP.
BANK LTD. In their retail banking strategy. Bankers give lot of importance for these
factors while designing and developing the marketing strategies.
The difference lies in how the different dimensions in the above Ps tweaked and
reengineered by the bankers or employee of AMBARNATH JAI-HIND CO.OP. BANK
LTD. Those who develop winning combinations of the above Ps and also effectively
deliver the promise made with regard to the above Ps will be the winners. It is a fact that
there is place for everybody to play their game and win their customers.

1. Product :
A product of bank can be defined as “Anything that has the capacity to
provide the satisfaction, use, and return desired by the customer”. Product like deposits,
Asset, locker or other service provided by AMBARNATH JAI-HIND CO.OP. BANK
LTD. to customers
Follows are product/ service provided by AMBARNATH JAI-HIND CO.OP. BANK LTD.

A. AMBAR SAKHI SAVING ACCOUNT

This saving account for working women, in this saving A/c account holder
can open account with zero balance with ATM and if account holder want to taking loan
form bank then 1% concession in interest.

B. AMBAR KIDS SAVING ACCOUNT

This is special for children whose age is between 4 years to 18 years in this
account can be opened with zero balance with ATM facility.

These two special types of product is special attraction of AMBARNATH JAI-HIND

CO.OP. BANK LTD. this bank most operated in rural or semi urban areas so they provided
recurring deposits facility for those people who earn daily wages. Recently bank going to
launce new product for hawkers or peddlers in this product bank provide current credit
facility of Rs. 20000/- for purchase goods.

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2. Price :
‘Price’ in the marketing mix refers to resultant transaction cost to be borne
by the banker or the customer depending upon the product offered or availed. In case of
deposit products, ‘Price’ refers to the interest the bank is quoting to the borrower customer
for offering the loan product to the customer. In case of other service, price refers to the
fee/charges the bank is charging for offering the different services.
AMBARNATH JAI-HIND CO.OP. BANK LTD. started AMBERTHEV
YOJANA. In this interest rate provided by bank on fixed deposit is 10.25% and for senior
citizen the interest rate is 10.50% for 500 days and this scheme for valid for 2 moths June
and July, 2014. This strategy also helps AMBARNATH JAI-HIND CO.OP. BANK LTD.
to increase their deposits.

3. Promotion :
Promotion refers to the efforts of the banks to reach the customers. The
promotion of the product will be based on a multipronged approach by developing various
promotional strategies. This included personal promotional measures and other
promotional measures. But the ultimate objective of these promotional measures is only to
win the customer and make him to avail the bank’s products and service. The various ways
in which the marketer develops promotion strategies are through personal selling,
Advertisement, Sales Promotions, Publicity etc.
AMBARNATH JAI-HIND CO.OP. BANK LTD. makes advertisement in
local areas. They make advertisement in local events or by sponsoring local groups or
Mandals

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Promotion of AMBARNATH JAI-HIND CO.OP. BANK LTD. new product GRANTH

TUMCHYA DARI within local old people.

Promotion in local school in this AMBARNATH JAI-HIND CO.OP. BANK LTD. want
to communicate with student so they explain to school principle how can student save their
pocket money in bank and how bank going to help them by providing zero balance account
with ATMs.

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In this AMBARNATH JAI-HIND CO.OP. BANK LTD. also has social responsibility,
arrange blood donation camp.

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In this picture they want try convince to hawkers how bank help to save money and bank
going to launch new product. The product is credit facility for small vendor and hawkers,
peddlers.

4. Place
Place in retail banking generally refers to the place where the bank is offering
its product. The concept of place has undergone drastic changes during the past decade.
Earlier place was very much limited to the place of bankers the location of Branch and
where the services were delivered. But technology has changed the concept and place has
shifted from the brick and mortar format to e format and has reached the customer in his
place through internet banking and mobile banking.
AMBARNATH JAI-HIND CO.OP. BANK LTD. started or operated
branches in rural or semi urban areas for delivered services to customers. They started
branches in near to villages or market where people gather.

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5. People
People again are a vital link in the marketing strategy chain. Retail Banking
basically being services marketing addressed to a large customer base, human factor plays
a very essential role in the success of the retail banking strategy. Again if we take the
marketing concepts, the important aspect of bank marketing is flow of service form the
banker to the customer through effective marketing strategies. In the chain of events taking
place in marketing, the effort starts from human factor and ends with human factor, the
banker and the customer. So people concept in marketing refers to the people who are doing
the marketing strategies and also people who are the beneficiaries of the marketing
strategies. The inseparability principle of bank products adds more importance to the
people concept because the effectiveness of the product depends on the effectiveness of the
people delivering the product.

6. Process
Process is an all permeating concept running through the product
development product structuring and delivery stage. Process will be successful only when
the output derived from the process is delivered in the expected way fulfilling the promise.
In short, process relates to all organizational activities which go into the marketing of the
final product to the customer delivery channels.
Process in AMBARNATH JAI-HIND CO.OP. BANK LTD. is changes from
product to product or service to service. For e.g. if any customer want to apply for loan
first they want to apply for saving account with original document and after that he have
to full fill terms and condition like eligibility, they have to provide guarantor with their
documents after that bank have to make scrutiny next that loan file submitted to loan
department at banks central office which is situated at Ambernath then authorized people
decided it will be sanctioned or not. If loan is sanctioned disbursement of loan amount
made by pay order with behalf of customer.

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7. Physical evidence
Physical evidence refers to developing tangibility to the intangibility concept
of banking services. Some of the approaches include developing an efficient packaging,
other measures to improve the tangibility. Especially in the retail banking operations,
DEBIT CARDS/ ATM CARD, Personalized Cheque Book are classic cases of attempts by
banks for tangibilisation.

The seven Ps are both independent in the marketing effectiveness. This marketing mix is
important for AMBARNATH JAI-HIND CO.OP. BANK LTD. because they want to
capture most of the rural market by providing their service and product to them. Marketing
mix is very important in deciding the marketing strategies on its own because of the built
in mechanism of the whole strategy.

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1.6. DELIVERY MODELS OF SERVICES AT AMBARNATH JAI-HIND

CO.OP. BANK LTD.

Retail banking is a customer oriented business model and the success of the same depends
on how the products and services are delivered to the customers. It may be physical or
remote. It is depend on persons who are delivered the services. The three important human
interventions in physical channels are
1. Internal customer – staff of Branch
2. Specialized Marketing Personnel
3. Direct Selling Associates (DSAs)

SERVICE DELIVERY

BRANCH BEYOND BRANCH

BRANCH STAFF DEDICATED DIRECH SELLING

MARKETING

MANAGERS

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1.7. SERVICE DELIVERY MODEL

Internal customers - staff at the branch level

In retail banking delivery, staffs of the branch play a very crucial role in the entire delivery
process or in AMBARNATH JAI-HIND CO.OP. BANK LTD. because they are
responsible for the end to end service delivery and any deficiency in delivery will result in
customer dissatisfaction. All the staff members should aim at a focused approach for
effective delivery of service.

1.8. DEDICATED MARKETING MANAGERS

In AMBARNATH JAI-HIND CO.OP. BANK LTD. marketing managers or officers or

executive all are dedicating toward work and they try to deliver their best. They believe in
service because they want to target rural customer out them most customer are illiterate or
they don’t have knowledge about baking so in marketing team has to understand this
situation.

1.9. DIRECT SELLING AGENTS

The concept of Direct Selling Agents was pioneered by foreign banks and nurtured well by
new generation private sector banks. They appointed by bank to source business for them
on a fee basis or commission basis. AMBARNATH JAI-HIND CO.OP. BANK LTD.
appointed agents for DAILY COLLECTION from hawkers, peddlers and shopkeepers
because they targeted rural people or who earn on daily basis.

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1.10. SALES THROUGH TIE-UPS

AMBARNATH JAI-HIND CO.OP. BANK LTD. mostly operate in area like Ambernath
and Badlapur, in this areas vast development happen so this bank want to tie-ups with those
developers and builders as a preferred financier for extending Home Loans to prospective
buyers.

1.11. CUSTOMER RELATIONSHIP MANAGEMENT IN RETAIL BANKING

It is indicate that banks have to manage the customers and manage their relationship also.
AMBARNATH JAI-HIND CO.OP. BANK LTD. has to manage the customer by offering
the right products/ services matching the needs of the customer Expectations in total and
result in total satisfaction of the customer. It is basically having 360⁰ view of the customers
and their profile, dynamically tracking their requirements, offering matching products and
services, cross selling relevant products to his changing needs and keeping him happy for
ever.
For AMBARNATH JAI-HIND CO.OP. BANK LTD. customer relationship management
is important because of they have to build their brand image or brand efficiency in
customers min, now rural area targeted by most of the private banks to due to competition
AMBARNATH JAI-HIND CO.OP. BANK LTD. has to maintain CRM.

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CHAPTER-2
COMPANY PROFILE

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INTRODUCTION OF AMBARNATH JAI-HIND CO.OP.BANK LTD.

AMBARNATH JAI-HIND CO.OP.BANK LTD. is established at Ambernath

city in the year 1986 by founder chairman Mr.Vilas Desai and his friends with a
vision to provide exceptional basic banking facility to common man. At this time,
Ambernath – Badlapur belt was mostly populated with middle & lower middle
class section of the society. This class use to fall pray in the clutches of
unscrupulous money lenders and pathans by paying heavy rate of interest for even
short term borrowings.

Founder chairman understood the plight of these people and resolved to establish
bank. Today AMBARNATH JAI-HIND CO-OP BANK has fulfilled his vision
and made strides of progress by establishing its identity as a bank of common man.

Now AMBARNATH JAI-HIND CO.OP.BANK LTD. Capturing most of area in

kalyan and thane. They believe in customer satisfaction is our goal and they also
believe in grass root banking.

About Chairman:

Mr. Vilas Desai, is holding following prestigious posts in the co-operative

Banking Sector as follows:

Chairman: Kokan Nagri Sahakari Bank’s Association, Kalyan.

Director : Maharashtra State Urban Bank’s Federation Ltd.Mumbai.
Director : National Federation of Urban Co-Op Banks. New Delhi
Member : TAFCUB, Goa.

BUSINESS:

The Bank has crossed total business of Rs.304 Cores in March 2012, Deposit
have risen to Rs.203 Cores so also, loans & advances to a striking figure of Rs.103

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Cores. Bank has conclusively reached a commendable figure of 0% Net NPA

(Non Performing Asset). From last 26 years bank has acquired grade ‘A”
consistently.

TECHNOLOGY:

AMBARNATH JAI-HIND CO.OP.BANK LTD. have successfully installed and

established their own Data Center designed and run by staff. This Data Center has
Clustering facility which enables them to shift the data from Active to Passive
Server in case of failure of Active Server.

Because of this Data Center our AMBARNATH JAI-HIND CO.OP.BANK LTD.

has come to the forefront of offering to customers following services.

1) Core Banking Solution

2) Any Branch Banking
3) Centralised Clearing
4) SMS Banking
5) ATM
6) Personalised Cheque Book
7) Email Facility

OTHER SERVICES OFFERED:

1) RTGS/NEFT (Real Time Gross Settlement / National Electronic Fund Transfer)

2) Franking
3) Payment of all State & Central Government Taxes
4) PAN Card
5) Safe Deposit Lockers
6) General Insurance: Tie-up with Bajaj Allianze Co. Ltd.
7) Life Insurance: Tie-up with Birla Sunlife Co. Ltd.

AWARDS:

AMBARNATH JAI-HIND CO.OP.BANK LTD. have achieved following

awards through tireless efforts to teamwork of our staff under the able guidance

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and direction of of our chairman Mr. Vilas Desai.

1) Excellent Bank Award :

By “Padmabhushan Vasantdada Patil Nagari Sahakari Bank”

2) I S O CERTFICATION :

AMBARNATH JAI-HIND CO.OP.BANK LTD. Bank has been certified for ISO
9001 – 2008 by M/s. Tata Quality Servies after the successful rigorous audits.
Thus we have the rare most honor of becoming “ISO Certified Bank”.

MISSION 2015

· Total Business Rs.500 crore and above

· Net Profit Rs.5 crore and above
· To operate from various branches
· To going for Multi State Banking

CHAPTER-3
LITETATURE REVIEW

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Literature review

Source
International Journal of Research in Commerce, IT & Management. May2014, Vol. 4 Issue
5,

Article
Retail Banking – Research

Major finding

In today's world where innovative financial services are being offered, the issue
of retail banking is highly crucial and with a lot of potential growth. Hence, it generates
interest for bankers and curiosity for researchers. Retail banking is the chain of products
and services offered to individual customers and to those associated with business.
The banking industry is highly competitive, with banks not only competing among each
other; but also with non-banks and other financial institutions. Most bank product
developments are easy to duplicate and when banks provide nearly identical services, they
can only distinguish themselves on the basis of price and quality. Therefore, customer
retention is potentially an effective tool that banks can use to gain a strategic advantage
and survive in today's ever-increasing banking environment. It is a foregone conclusion
that winds of massive change blowing across the banking industry in India forced most of
the commercial banks, more so public sector banks, to resort to retail banking as a
measure to attain further growth with stability. Retail banking is mass market banking,
where individual customers' diverse needs are fulfilled at the local level i.e. by providing
multiple products. It has been facilitated by growth of banking technology and automation
of banking process. With much scope in the avenues for operations, the real challenge for
the banks in the current scenario is to stand out in the midst of hard-hitting regulations of
the apex body. Current paper focuses on the terms, scope and concepts of retail banking,
its evolution in India, briefly discuss the scenario of Indian retail banking, also focuses on
some of the major issues of Indian retail banking industry. It also visualizes the future
of retail banking.

Literature review

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Authors:
Lähteenmäki, Ilkka
Nätti, Satu

Source:
International Journal of Bank Marketing. 2013, Vol. 31 Issue 5, p334-347. 14p.

Document type:

Article

Subject terms:

Retail Banking

Major finding through article

Purpose – Improving capability to generate value for customers is seen as a way to create
a new competitive edge, but developing the related organisational capabilities involves
facing several obstacles that stem from the producer-orientation of the retail-
banking business. This paper aims to focus on defining and describing those obstacles.
Design/methodology/approach – An in-depth, qualitative single case study of a
European retail bank was conducted. Findings – A retail bank can find it challenging,
first, to understand the deepest meaning and character of customer value and, second, to
harness the organizational attributes to deliver that value. The main barriers lie in the strong
producer-oriented way of doing business, a lack of employee commitment, a strong product
and sales orientation, a restrictive network, difficulties in seeing the profitability aspect of
a new mindset, lack of conceptualization and proper segmentation, and finally, silo-style
bank organizations. Research limitations/implications – The research is focused on
the retail-banking industry, while the findings are transferable to other retail finance
businesses. Practical implications – Enhancing value creation may provide a competitive
edge, but developing that edge means facing several obstacles, which may jeopardise the
calculated positive return on investment. For management, understanding the value of
the banking service in the customer's own context is critical. Originality/value –
Developing customer experience and value-in-use has been suggested

as a good starting point for customer orientation. However, research on its implications for
organizations and potential obstacles to implementation remains scarce. This paper offers

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a detailed view on the organizational development necessary to generate value-in-use in

a retail-banking context.

CHAPTER 4
LEARNINGS FROM PROJECT

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4.1.Findings from Study

Introduction

The present study has been conducted on the basis of market condition and customer’s
perception and how retail banking useful to AMBARNTH JAI-HIND CO. OP. BANK
LTD. for make differentiate in product, price and promotion. Response of customer
towards AMBARNTH JAI-HIND CO. OP. BANK LTD. is increases because of their
management staff and product or services. Study made by meeting with different people
on behalf of AMBARNTH JAI-HIND CO. OP. BANK LTD.

 AMBARNTH JAI-HIND CO. OP. BANK LTD. enjoys high response from its customers.

 The satisfaction level of customers in AMBARNTH JAI-HIND CO. OP. BANK LTD. is
high because of their service and product

 AMBARNTH JAI-HIND CO. OP. BANK LTD. have some social responsibility it shows
in their events and scheme because they arrange blood donation camp and for senior citizen
then they make available book in their branch it will also help them for increasing customer
base.

 Most of the customers had a good experience in AMBARNTH JAI-HIND CO. OP. BANK
LTD. by doing transactions.
 AMBARNTH JAI-HIND CO. OP. BANK LTD. provide best service it will help them for
mouth publicity because existing customer give reference to new customer for opening
new account and making investment in this bank to their collogue and relatives.

 In this study is observed that the customers are happy with AMBARNTH JAI-HIND CO.
OP. BANK LTD. and their services which they offered.

 Face to face interactions with customer will helps to AMBARNTH JAI-HIND CO. OP.
BANK LTD. to solve the problem for satisfy the customer.

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 The technology uses in AMBARNTH JAI-HIND CO. OP. BANK LTD. helps them make
transactions easy and fast comparative to other small banks.

4.2. Learning’s from the Project

 By this project I learnt many things like customer satisfaction is very important for
increasing performance and brand image. Some time bank has to interact with customer
for make changes in product and services and offered them better quality of services.

 Experienced the different consumer perception and expectation regarding banking product
and services.

 Learnt the marketing strategies which attract the customers to user services which is offered
by AMBARNATH JAI-HIND CO. OP. BANK LTD.

 Learnt Marketing Mix use by the AMBARNATH JAI-HIND CO. OP. BANK LTD.

 Learnt the way to convince the customer although he is not in mood or he is already
attaching with other bank.

 Different strategies and services to satisfy the customer i.e. refreshment services, ambience
of the branch, short meeting with customer for showing how banks works and why bank is
important.

 Learn different ways to attract the customers by putting up new investment scheme.

 Also through different events (e.g. blood donation camp, bank visit for school student.)
organized by the AMBARNATH JAI-HIND CO. OP. BANK LTD. for creating brand
awareness and providing information about functions of bank.

 Role of sales team and their strategies.

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 Manage the customer by Customer Relationship Management (CRM) activity and various
skills.

 Value of brand name in the mind of customer

 Importance of bank for customer regarding their saving and investment

 Technical knowledge about banking software for opening customer account and all account
transactions.

 Get to know the customers’ expectations and needs.

4.3. Recommendations of project

The Retail Banking is most important in banking sector. The evolution in retail banking
in India can be traced back to the entry of foreign bank. The conventional banking
business by public sector banks was done on a more generalized approach and there was
no specific demarcation as retail and non retail activities. Customer and industry
segmentation was adopted within the overall business plan of banks. Offering products
and services based on specific consumer segments was not attempted in a focused way.
Foreign banks operating in India set the trend and in the late 1970 and early 1980s and
came out with their consumer banking models with hybrid liability and asset products
specifically targeted at the personal segments.

In India with the advantage of technology right from start, many banks had a clear
positioning for retail banking and aggressively strategized for creating new markets for
the retail segment. In addition, the new generation private banks had posed a threat to the
retail business of foreign bank that had by then well defined business models for retail
banking. Now many banks private sector, public sector as well as cooperative banks also
with technology initiatives and redefined business model for retail had aggressively
entered the market space, creating a retail war and capture their share of the pie in the
liberalized economic environment and the resultant opportunities in retail banking.

Strong economic fundamentals, growing urban population, higher disposable income, rise
in young population, emergence of new customer segments and rise in the mass affluent

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space, explosion of service economy in addition to manufacturing space have catapulted

the scope for retail banking business in India. The segment has become an important
component in the business design of the banks in India and almost all players in the
banking sector may be it becomes a fashion statement for all the players.

In a developing country like India where 60% of the population lives in rural areas, hence
AMBARNATH JAI-HIND CO. OP. BANK LTD. consider to be the best service
provider but some of the customer disappointed about facilities of this bank e.g. they are
not provide Debit Card system or Net Banking. If they are providing Debit Card
facilities and Internet Banking facilities then obviously there will be increase in customer
base of AMBARNATH JAI-HIND CO. OP. BANK LTD., and it will also helps to create
brand image. The overall study reveals that the AMBARNATH JAI-HIND CO. OP.
BANK LTD., slightly growing after adopting Retail Banking. AMBARNATH JAI-HIND
CO. OP. BANK LTD., can take in consideration the following points:

 AMBARNATH JAI-HIND CO. OP. BANK LTD., has to increase number of branch for
serving customer service and it will also helps attract more and more customer.

 Due to less number of branches some customer are not willing to business with
AMBARNATH JAI-HIND CO. OP. BANK LTD.

 AMBARNATH JAI-HIND CO. OP. BANK LTD. has to provide Debit Card facilities to
customer.

 Advertisement through television can influence many customers. So AMBARNATH JAI-

HIND CO. OP. BANK LTD. can try to concentrate all categories of income group
customers.

 AMBARNATH JAI-HIND CO. OP. BANK LTD., should have take feedback from
customers it will helps to improve strategy.

Customer segmentation in AMBARNATH JAI-HIND CO. OP. BANK LTD.

Broadly customers are segmented based on their income levels as their need pyramid will
vary with the rise in their income levels. Banks develop and market their products based
on this segmentation and target the relevant segment for maximum conversion of
business.

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The fundamental assumptions about customers for building retail banking products and
services are briefly explained as follows:

1. Customers are different.

2. Needs of the customers are different.
3. Each customer will have different sets of need for financial services.
4. The need requirement of customers for financial services will be unique.
5. Customers can be grouped together based on their income, age, geography, profession,
employment, vocation gender and family size.
6. Product and services can be developed for a single or a combination of the above elements
to satisfy most of the needs.
7. Product and services can be structured on a niche basis within one or any of the above
elements.

The above assumptions about customers help banks to develop suitable products and
services to cater to the need spectrum of the customers. To understand this concept, a
look into the Maslow’s Need Hierarchy Theory of Motivation is necessary. The theory
will help me to understand how banks structure products to match the different stages of
the need pyramid of the customers.
Customers buy the products and services of the bank primarily to satisfy their needs and
if their needs and banks products match, there is absolute synchrony and if the benefits
promised by the bank to the customer are delivered then there will be absolute
satisfaction from the customer end. The requirements of the customers in general can be
related with the need hierarchy theory by Abraham Maslow.
1. Physiological Needs
 Core Saving Account
 Personal Accident Cover
 Housing Loans

2. Security / Safety Needs

 Recurring, Fixed Deposit Products.
 Life Insurance Products – Endowment Products with low premium, long tenor and high
maturity amounts.
 Tax planning banking, insurance and Mutual Fund Products.

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 Retail banking in AMBARNATH JAI-HIND CO. OP. BANK LTD.

3. Social Needs
 Consumer loans
 Personal loans
 Home loans
 Car loans
 Loans for professional development for doctors, Engineers, Lawyers, Chartered
Accountants, Management Consultants, Architects etc.
 Retail gold coin

4. Esteem Needs
 Special Term Deposit Products.
 Term Insurance Products.
 Second Housing Loans / Home Improvement / Home Décor Loans.
5. Self Actualization Needs
 Pensioners loans
 Retirement solutions in Banking
 Senior citizens term Deposits products

AMBARNATH JAI-HIND CO. OP. BANK LTD. has always tried to fulfill these five
needs of individuals and they always try to understand customers’ needs.

4.4. Customer’s requirements about service quality at AMBARNATH JAI-

HIND CO. OP. BANK LTD.

Service quality is what customer expects form AMBARNATH JAI-HIND CO. OP.
BANK LTD. and has different dimensions. I have learnt about following are some
requirement expectations form the customers about the service quality of banks.
1. Tangibles : appearance of physical facilities, equipment, personnel and communication
materials

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 Retail banking in AMBARNATH JAI-HIND CO. OP. BANK LTD.

2. Reliability: ability to perform the promised service dependability and accurately.

3. Responsiveness: willingness to help customers and provide prompt service.
4. Assurance: possession of required skills and knowledge to perform services. Politeness,
respect, consideration and friendliness of the contact personnel. Trustworthiness about
service provider.
5. Empathy: approachability and ease of contact. Keeping customers informed in a language
that they understand. Making an effort to know customers and their needs.

CHAPTER - 5
CONCLUSION
 The study reveals that, the expectation scale of customer is rising toward AMBARNATH
JAI-HIND CO. OP. BANK LTD. by day to day.
 AMBARNATH JAI-HIND CO.OP. BANK LTD. want to improve their services and
product strategies according to customers expectation.

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 Customer satisfaction is main motive of AMBARNATH JAI-HIND CO.OP. BANK

LTD.
 Retail banking primarily driven by number of customers each Bank possesses.
 More number of customers more will be the profitability and strength of the Retail
Banking Models.
 So, AMBARNATH JAI-HIND CO.OP. BANK LTD. wants to maintain large number of
customer base.
 AMBARNATH JAI-HIND CO.OP. BANK LTD. is continuously make changes in
dimension of Marketing of Retail Banking services and the changing paradigm of
delivery channels in retail banking.
 Marketing mix in Retail Banking include different ingredients that make up a good
package for the customer.
 Seven Ps of Marketing play a vital role in AMBARNATH JAI-HIND CO.OP. BANK
LTD. for their retail Banking Strategy.
 The success of retail banking depends on effective marketing of the retail products and
services.
 AMBARNATH JAI-HIND CO.OP. BANK LTD. is try to understand every customer are
different and their needs are different but at the same time , as customers are grouped
together in definite segment buckets, reaching them with relevant products and services is
a must.
 This is must for AMBARNATH JAI-HIND CO.OP. BANK LTD. to achieve with the
different elements of the marketing mix viz. Products, Price, Promotion, Place, People,
Process and Physical Evidence. The right mix will be delivering the right result to
AMBARNATH JAI-HIND CO.OP. BANK LTD.
 Channels are the medium through AMBARNATH JAI-HIND CO.OP. BANK LTD.
delivered their products and services to the customers.
 Marketing in AMBARNATH JAI-HIND CO.OP. BANK LTD. done in inside in branch
and outside of branch.
 AMBARNATH JAI-HIND CO.OP. BANK LTD. growing fast since last few years
because of they try to increase customer’s base of account holders by providing best
service and products like investment scheme.
 AMBARNATH JAI-HIND CO.OP. BANK LTD. also tries to implement latest
technology in their branch for make convenience for customer to do their transaction easy
and fast.
 AMBARNATH JAI-HIND CO.OP. BANK LTD. wants to understand customers need
and try to satisfy these needs.
 AMBARNATH JAI-HIND CO.OP. BANK LTD. wants to attract customer by organizing
social events like blood donation camp.
 I learnt that change is the only think to retain and attract the customers so the bank should
identify the needs and try to fulfill them.
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 AMBARNATH JAI-HIND CO.OP. BANK LTD. tries to cross target business of Rs. 500
cr. So they can provide net banking or Debit Card facilities to their existing and
prospective customers.
 Finally we can conclude that, AMBARNATH JAI-HIND CO.OP. BANK LTD. is fast
growing co-operative bank which gives more value and benefits to customer by its
valuable features, aspects which has been accepted by most of customers. And the service
and facilities of AMBARNATH JAI-HIND CO.OP. BANK LTD. gives customers
extraordinary experience.

REFERENCES

 Competitiveness in Banking industry and Marketing challenges, Abraham koshy,

Marketing area, Indian Institute of Management, Ahmadabad.
 Retail Banking - MACMILLAN PUBLISHERS INDIA LIMITED.
 Retail Banking in India – IBM Institute for Business value, Financial Services News
Letter, 17 Jan 2005,

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 Retail banking in AMBARNATH JAI-HIND CO. OP. BANK LTD.

 Retail Banking- Models, Strategies, Performances and the Future – The Indian Scenario-
Unpublished Research Report, Dr. J. Sethuraman, Indian Overseas Bank For Indian
Institute Of Banking and Finance.
 Transforming Retail Banking Process, Boston consulting Group Report.
 Marketing Mix- Philip Kotler.
 Bank Information - www.jaihindbank.com
 www.infosys.com/finacle/resources/.../Innovation-Retail-Banking
 http://search.ebscohost.com/

APPENDIX

Year Deposit in ( lac) Loans in ( lac)

Mar-12 4568.42 2333.15

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 Retail banking in AMBARNATH JAI-HIND CO. OP. BANK LTD.

Mar-13 6457.77 3664.5

Mar-14 10259.53 5419.11
Mar-15 17670.49 7968.88
Mar-16 25253.8 13066.3

25253.8

17670.49

13066.3
10259.53
7968.88
6457.77
5419.11
4568.42
3664.5
2333.15

Deposit Loans

If we see the trend of Ambarnath Jai Hind co op Bank from the year 2005 deposit 4568.42
lac.And loan 2333.15 lac from last 5 year bank performing very well chart curve is growing
in the year 2014 deposits Rs 25253.8 lac and loan amount is 13066.3 lac.

Are you aware of products & services provided by Jai hind Bank?

YES 65%

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NO 35%
Total No. of People 100

From the above data it is clear that most of the customers (around 65%) of Ambernath have
the idea about the product & services of Jai hind bank, the rest 35% have the idea about
the product they are using
This data collected via face to face interaction with customer who live in Ambernath and
Badlapur

Which bank you prefer for taking loans?

SBI 50%
Jai Hind Bank 8%
ICICI 12%
Other 30%
Total 100

According to my sample size 50% of people prefer SBI for loan product, but some people
prefer OTHER Bank for loan because they are working with that bank & it is easier for
them to get .

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 Retail banking in AMBARNATH JAI-HIND CO. OP. BANK LTD.

0% 2%

43%
BAD
SATISFACTORY
55%
GOOD
EXCELLENT

Customer perception towards the services provide by Jai Hind Bank in advances
product
.
From this it is clear that the service provide by Jai hind Bank in its advance product is good
in between the customer. All of them satisfy with the product provide by Jai hind bank.
55% of people said that the service provide by Jai hind Bank is good & 43% said it is
excellent & just 2% of people said that it is satisfactory.

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 Retail banking in AMBARNATH JAI-HIND CO. OP. BANK LTD.

FEATURES LIKE BY CUSTOMER

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
LESS PAPER WORK ATTRACTIVE TRANSPARENCY SIMPLE & FAST LONGER
INTEREST RATE PROCESSING REPAYMENT
PERIOD

Most of the people like the attractive interest rate & longer repayment period. It’s easier
for people to repay the whole loan amount with its interest with low interest rate and with
longer repayment period

(Note: all data collected through face to face interaction with customer during marketing

of product and services or all financial data will be collected through annual report of

AMBARNATH JAI- HIND CO.OP. BANK LTD.)

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