BANKING SERVICES

What is a Bank and What are its services?

 It is a financial institution that is licensed to receive deposits and grant loans.

 Intermediaries between Depositors and Borrowers

 Cashes cheques and other instruments
 Guarantees
 Credit/Debit Cards
 Consultancy
 Currency Exchange
 Internet/Mobile Banking
 ATMs
TYPES OF BANKING
Banks' activities can be divided into:

• Retail Banking: dealing directly with individuals and small businesses;

• Business Banking: providing services to mid-market business;
• Corporate banking: directed at large business entities;
• Private Banking: providing wealth management services to high net-worth
individuals and families;
• Investment Banking: relating to activities on the financial markets

Most banks are profit-making, private enterprises. However, some are owned by the
government, or are non government organisations.
 ADVANTAGES AND DISADVANTAGES

Advantages Disadvantages

 Safety of public wealth  Chances of going

 Availability of cheap bankrupt
loans  Risk of fraud and

 Propellant of economy robberies

 Provides services at a  Risk of public debt

large scale
 Development in rural
areas
 Global reach
DIFFERENT PRODUCTS AND SERVICES
OFFERED BY BANKS

• Retail Banking
• Trade Finance
• Treasury Operations
RETAIL BANKING

• Deposits
• Loans , cash credit and
over drafts
• Negotiating for loans
and advances
• Conducted at the
branch level
Name of service Product being used to
provide service
1. Deposit Saving accounts , Current
accounts ,Certificate of
deposits ,Debit card

1. Withdraw ATMs, Credit Card , Debit card

, Withdraw slip etc.
COMMON BANKING PRODUCTS

 Credit card
 Debit card

 Automated teller
Machine
 Electronic Funds
Transfer (EFT)
 Mobile Banking
 PRICE

 Interest rate
 loan
 Investment
 Example:
 Transaction charges
 NEFT
 RTGS : RBI
 UPI TRANSACTION
 Value pricing
 Example: Bandhan bank:
a. E.g. standard fixed deposit
b. premium fixed deposit
c. Tax saver fixed deposit
d. Advantage fixed deposit
e. Super saver fixed deposite
Mark up pricing
 Banking strategies
 Credit risk premium

Going rate pricing:

 ICICI VS HDFC interest rates

Other charges :
i. Charges for cheque books
ii. Commission charges
iii. Mobile banking charges
iv. Charges for Debit cards & credit cards
 Place
The concept of ‘Place’ in the world of banking is essentially the distribution
systems through which the financial services are delivered to the customers.

But, today the developments in Information Technology (IT), changing

customer desire and needs for greater convenience and vulnerability of
branches to excess costs, the trend is towards the introduction of Automated
Teller Machines (ATMs)

Commercial Banks :-
Commercial banks accept deposits from the public and grant short-term loans
and advances to their customers. They cannot afford to grant long-term loans.
Eg, Punjab National Bank.

Industrial Banks:-
Industrial banks are those banks that deal in long-term loans. The finance
industries either by granting long-term loans or by subscribing shares,
debentures, etc., issued by industrial concerns. They lay a vital role in the
industrial progress of the country. Eg, Industrial Bank of India.
 Land Development Banks
 These banks raise funds by the issue of long-dated debentures. They
specialize in granting long-term loans against agriculture and urban
properties for their development.

 Co-operative Bank
 Co-operative banks are registered under the Cooperative Societies Act.
They generally give credit facilities to small farmers, salaried
employees, small-scale industries, etc. Co-operative Banks are available
in rural as well as in urban areas. The functions of these banks are just

similar to commercial. Eg. Gujarat State Co-

operative Bank
 ATM ( AUTOMATED TELLER
MACHINE )

 An ATM, which stands for automated teller machine, is a

specialized computer that makes it convenien to manage a
bank account holder's funds.

NET BANKING
 Online banking, also known as internet banking, web banking
or home banking, is an electronic payment system that enables
customers of a bank or other financial institution to conduct a
range of financial transactions through the financial
institution's website.
 PEOPLE

The word People is used in services marketing into two

perspectives.
o One for employees, i.e.., internal marketing
o while another for customers, i.e., external marketing

All people straightforwardly or by implication engaged

with the utilization of banking services are a significant
aspect of the all-encompassing marketing mix.
Signage:

Tangible:
PROCESS MIX

• Process refers to the flow of activities or mechanism that

take place when there is in an interaction between the
customers and the businesses.
• Different Process carried out by Banks Are as
• opening accounts
• lending money
• offering different policies & Much more
MAJOR PLAYERS OF INDIAN BANKING INDUSTRY

Similar lending Process used by these Banks

is…………
PROMOTION MIX

 A promotional mix is an allocation of resources such that

:-
 Advertising

 Public relations/ publicity

 Direct marketing

 Personal selling
3] Direct Marketing:-
•Email
•Telephone marketing
•Text message
•Brochures

4] Personal selling:- face

to face communication
between bank and
customer