This paper presents the study of market trends of deposits as prevalent in the Nepalese Banking Sector. The study examines the trends of deposits as it is occurring over the last 10 years in the banking sector of Nepal represented by 7 randomly chosen commercial and development banks. 5 being commercial banks and 2 being development banks. The study also draws a comparison between the commercial and development banks. This paper also highlights how Customer relationship management has a direct effect on the deposits of the bank and also evaluates if word-of-mouth influences individuals from selecting a bank. It also draws an attention towards the market strategy adopted by the banks to allure customer’s to deposit in their banks in the present market scenario. The paper is quantitative as well as qualitative in nature. Quantitative as it analyses the CRM and deposits relations via. Responses of the questionnaire distributed to 350 customers of the 7 chosen banks and the qualitative as the paper generalises the view amd opinion of eminent individuals of the concerned 7 banks regarding their marketing strategy and that the strategy are directed towards encouraging deposits. The findings clearly state that the market trends of deposits in the Nepalese Banking Sector has an upward trend and that there is a positive relation between CRM and deposits; i.e. better CRM leads to larger loyal customer-base and more deposits and vice-versa, regarding the word of mouth the hypothesis that word-of-mouth is an effective means of selecting a bank for the customers is proven to be wrong. And also that the marketing strategy are all focused upon increasing of deposits of the bank. Finally, it also studies how Ace has been affected by the interest wars and what can be done to overcome the phase of Interest war. Chapter 2
2.1 Primary objectives:
The purpose or objective of every report should be determined before it is initiated and the success and failure of the report is determined by measuring the result against predetermined objectives. So, this report also has some objectives which are short listed below: General objective:
The main objective of the study is to determine the market trend of deposits in Nepalese private banking sector, to consider the customer relationship management and factors affecting their marketing strategies. Specific objective:
a. To find out the market trend of deposits in the Nepalese private banking sector. b. To compare the market trend of deposits between commercial and development banks. c. To analyse some factors, i.e.; the degree of loyalty of customers towards the bank, power of word of mouth to win customers, factors that make them choose a bank, their level of satisfaction with the bank that have a direct or indirect effect on the deposit trend. d. To analyze the marketing strategies of various private banks that affect in their deposit trend. e. To see if word of mouth effects the selection of a particular bank or banks. f. To provide recommendations accordingly.
For fulfilment of objectives some hypotheses have been designed. Hypothesizes for this study are given below 2.2 Hypothesis:
Hypothesis1: Hypothesis states that Nepalese private banks have an upward trend of annual deposits. (Null hypothesis)H0: The bank does not have an upward trend. (Alternative hypothesis) H1: The bank has an upward trend.
Hypothesis2: This hypothesis tests the word of mouth and its relation with the choosing of a bank. H0: There is no significant relation between word of mouth and choosing of a bank. H1: There is a significant relation between the word of mouth and choosing of a bank. 2.3 Research Design
Descriptive and exploratory studies are employed to find out the market trend of annual deposits of Nepalese private banks. Under these studies, quantitative and qualitative researches are applied, where they are...