INTERNET BANKING & ATM AS A TOOL FOR CRM: A COMPARATIVE STUDY BETWEEN PUBLIC AND PRIVATE SECTOR BANKS ABSTRACT
Customer Relationship Management (CRM) plays very important role in retaining customers. As Mahatma Gandhi said customers are very important for any business organization. The same view has been endorsed by Philip kotler also. Research study shows that instead of creating new customers every day it’s better to retain the existing customers. In order to retain existing customers banks have introduced various technological products. The researcher has selected only two technological products Internet banking and ATM. The survey has been conducted in erode district by selecting two public sector banks and two private sector banks with regard to Internet banking and ATM. INTRODUCTION TO INDIAN BANKING SECTOR
Banks are the most significant players in the Indian financial market. They attract most of the savings from the population. The public sector is dominant in the banking industry and banking industry has so far acted as a tool for growth and development of the country. The public sector banks have supported development of agriculture and other sectors. They have ensured the economic development of the country. The Indian banking can be classified into scheduled banks, non scheduled banks, foreign banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any distortion and shortcoming in the system. Following the nationalization of banks in 1969, the public sector banks or the nationalized banks have been dominant and has seen tremendous progress. The need to become highly customer focused has forced the slow moving public sector banks to adopt a fast track approach. The releasing of products and services through the net has stimulated players at all levels of the banking and financial institutions market grid to look a further at their existing portfolio offering. Indian banks are now quoting at higher valuation when compared to banks in other Asian countries that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian market and is addressing the relevant issues to take on the varied challenges of globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive players capable of meeting the varied requirements of the large customer base. Private Banks have been prompt on the uptake and are restructuring their strategies using the Internet as a medium. The Internet has emerged as the new and challenging frontier of marketing. The Indian banking has come slow growth business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore business opportunities rather than generating revenues from borrowing and lending. The banking in India is highly fragmented with 30 banking units contributing to almost 50 percent of deposits and 60 percent of advances. Indian nationalized banks continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized banks, private banks and specialized banking institutions. The liberalized policy of Government of India has permitted private sector to enter in banking. The major difference of these banks from all the other banks in the Indian banking is the level of service that is offered to the customer. Their focus has always rested on the customer – understanding his needs, preempting him and consequently delighting him with various benefits and a wide portfolio of products and services. These banks have been established by promoters of repute or by ‘high value’ domestic financial institutions. The popularity of these...
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