E-Enabled Relationship Management in Banking Sector (India)
THESIS ON
E-ENABLED RELATIONSHIP MANAGEMENT IN BANKING SECTOR IN INDIA
EXECUTIVE SUMMARY
Relationship banking may be defined as the provision of financial services by a financial intermediary on the basis of long-term investment in obtaining firm or customer specific information through multiple interactions with diverse financial services (Boot, 2000). E- Enabled Relationship banking system refers to use of Information Technology and especially the internet. Customers could get connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. Most of these systems are capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. Marketing is different from selling mainly in terms of orientation. In selling the efforts are product centred where as customer centric is the key to marketing. Marketing starts with target market and earns through customer satisfaction.
Bank credit is a service product and not a physical product like soap. The service product is difficult to market because it is intangible, perishable (ends with single transaction), its heterogeneity makes each service transaction unique. The service is inseparable from the delivery agent. The ownership of the product cannot be transferred to another person. For example: A customer enters for updating of pass-paper. This is one transaction. He expects that his statement should be ready on the first day of next month. This is another transaction. He sends his representative to take a demand draft, which becomes the 3rd transaction. So the banker cannot ignore the efficiency, alertness, accuracy and
E-ENABLED RELATIONSHIP MANAGEMENT IN BANKING SECTOR IN INDIA
EXECUTIVE SUMMARY
Relationship banking may be defined as the provision of financial services by a financial intermediary on the basis of long-term investment in obtaining firm or customer specific information through multiple interactions with diverse financial services (Boot, 2000). E- Enabled Relationship banking system refers to use of Information Technology and especially the internet. Customers could get connected by a network service provider directly to a host computer system of a bank such that customer service requests can be processed automatically without need for intervention by customer service representatives. Most of these systems are capable of distinguishing between those customer service requests which are capable of automated fulfillment and those requests which require handling by a customer service representative. Marketing is different from selling mainly in terms of orientation. In selling the efforts are product centred where as customer centric is the key to marketing. Marketing starts with target market and earns through customer satisfaction.
Bank credit is a service product and not a physical product like soap. The service product is difficult to market because it is intangible, perishable (ends with single transaction), its heterogeneity makes each service transaction unique. The service is inseparable from the delivery agent. The ownership of the product cannot be transferred to another person. For example: A customer enters for updating of pass-paper. This is one transaction. He expects that his statement should be ready on the first day of next month. This is another transaction. He sends his representative to take a demand draft, which becomes the 3rd transaction. So the banker cannot ignore the efficiency, alertness, accuracy and