Customer relationship management in retail banking pdf writer

customer relationship management in retail banking pdf writer

To what extent do Jordanian banks apply the concept of CRM? This divergence may be owed to a difference in the scientific background of these writers. Upgrade Credit Policies and Risk Management Skills This paper aims to help banks reassess their strategies, business models, and plans for emerging from . European write-offs. .. mainly in an effort to strengthen customer relationships. o My Creator for the talent, the knowledge, the determination and the strength to This study was conducted within the evolving retail banking industry and .. Customer relationship management

It may also, reduce industry risks through the elimination of weak banks and create better diversification opportunities [ 13 ]. It also means larger stockholder and larger number of investors.

Financial consolidation can be gained by merger, recapitalization and acquisition [ 14 ]. Bank consolidation is more than simple decrease of the amount of banks in any banking sector. It is projected to improve synergy, encourage investor and efficiency [ 1516 ]. According to Somoye [ 17 ] the consolidation of banks has been the major policy instrument being adopted in correcting deficiencies in the Banking sector.

Basically, banks used various mechanisms to comply e. Orji [ 18 ] analyzed about banking sector and found that, most significant fact for consolidation are enhancements in IT, globalization of banking sector, and shareholder wealth and financial deregulation. Consolidation may be an efficient method of determining complications of financial suffering, which are not entirely distinct from excess capacity problems.

Trust can be recognized as the strategy of dealing with uncertainty. Theoretically, trust is also attributable to relations between and within societal. From the empirical studies of Hardin [ 20 ] he found that, it is a general method to edge the subtleties of intra group and inter group connections in relations of trust.

Trust has focal meaning for the success of every transaction. It stimulates the human activities. Trust is a container concept used in a broad variety of disciplines. Trust can be indorsed to the connections among people.

People have a usual nature to trust and to evaluate reliability that can be drew to the activity of a human brain. According to Bae et al. As clients are becoming more conscious of banks familiarity, also they sustain a trust in the confidence that the bank will develop different quality principles to continue that familiarity. Favorable Environment Favorable environment means the complex of social and cultural conditions affecting the nature of an individual person or community.

The set of conditions and circumstances refers a favorable environment. A favorable learning environment is one where two parties are able to freely interact with each other.

customer relationship management in retail banking pdf writer

Simulated client environments could be construct to maintain five different client parts in improvement [ 22 ]. Each of the client roles has a lot to offer to banks.

Environments have a positive influence on customer emotion and satisfaction, which in turn affect behavioral intentions. Employees with high level of job satisfaction will appear to the customers as more balanced and pleased with their environment [ 23 ]. A change in environment can encourage or reduce desired behaviors. Success depends upon the awareness and ability of key managers to explore and exploit the environmental opportunities [ 24 ].

Marketing of Financial and Banking Products: An Example fromBangladeshi Bank | OMICS International

According to Wilson [ 25 ] we found that, with the changing trends in banking environment caused by rapid technological changes in information and communication networks, bank should no longer be labeled as a corporate dealing with money transactions alone, but also as a corporate that is truly essential for engaging over clients while retaining the current and the old one. Banks have established environmental policies, goals and practices that help guide their activities inside and out.

Banks were not interested in their own environmental situation or that of their clients. This situation is now changing. American banks became the first to consider their environmental policies, particularly with regard to credit risks.

European banks were not exposed to these liabilities and only began to develop policies toward environmental issues during the mids. The focus here was less on risk assessment and more on the development of new products such as environmentally friendly investment funds. Both risk and opportunity are now becoming established elements in banking policies towards the environment [ 26 ].

Digital technologies and the banking industry are no strangers. Most banks are investing in digital transformation in a big way [ 27 ].

  • A consumer-centric approach to retail banking sales

Most banks have been focusing on transforming the customer experience using digital technologies [ 28 ]. Banks have enhanced many of their customer-facing, front-end operations with digital solutions. Some banks are experimenting with rapid-automation approaches and achieving promising results. Finance institutes in the retail sector are more focused on their own development due to their size, subsidiary structure, technology foundation, and regulatory system, digitalization means that innovators are moving into the market with new concepts, leading to a further diversification of the market.

The digital transformation of retail banking has so far taken place in two stages - but the most exciting and groundbreaking one is only just starting. The old retail banking model, comprising bricks and mortar banking with digital channels for transactions, will no longer work. As a result, banks will have to make changes to all their distribution channels [ 29 ]. Digitalization has an optimistic influence on the banking sector.

Fragmenting Customer Base The client base is the collection of clients who frequently obtain the services of a bank. Those clients are the vital source of profits for a Bank. Depend on a client base can make development and modernization. Christensen, Clayton, and Michael Raynor [ 31 ] say that Fragmenting customer base denotes the clients who buy the products or use the facilities of a specific Bank. All companies start with zero clients.

All startups commence with an intellectual knowledge that gradually changes into somebody will consume. So further refined objectives are necessary to develop more product and gain more client. The pleased clients become the loyal customer and main client of the Bank [ 32 ].

The customer base is a comparatively large number of customers, with a minor section of the base are comprised of repeat customers. Fragmenting customer base is absolutely essential for business success [ 33 ].

A customer base is simply the group of customers that you serve or hope to serve. Fragmenting customer base can be thought of as your target market, which is a group of consumers within a larger consumer market to which you are attempting to sell goods or services, including current and former customer [ 34 ].

Marketing of Financial and Banking Products: An Example fromBangladeshi Bank

Fragmenting customer base represents the current flow of customers that a business can reasonably expect will consider it as an option when planning a purchase. Marketing of Bank Product Marketing of bank products refers the various ways in which a bank can help a customer, such as operating accounts, making transfers, paying standing orders and selling foreign currency.

Banking is the business activity of banks and similar institutions. Customers are offered innovative products to redefine banking convenience. To meet these needs, bankers are expected to provide satisfactory benefits through provision of form, place, time, and ownership utilities. This strategy will develop and introduce new banking schemes or services catering to specific needs of various market segments of bank customers [ 38 ].

A consumer-centric approach to retail banking sales | McKinsey

Banking product cannot be seen or touched like manufactured products. In marketing banking products, the product and the seller are inseparable; they together define the banking product. Banking products are products and delivered at the same time; they cannot be stored and inspected before delivering. Banks also may offer investment and insurance products, which they were once prohibited from selling [ 39 ].

Relation between Consumer Trust and Marketing of Bank Product Trust has become the topic of abundant conversation within company, banking system, academia and the media. The role of trust encompasses the exchanges and interactions of a retail bank with its customers on various dimensions of online banking. Specifically lays stress on the bank-to-customer exchanges taking place through the technological interface [ 40 ].

Trust relates to the belief that a customer has in an honest investment and engagement with the service provider [ 41 ]. In the banking context, trust is defined as customer confidence in the quality and reliability of the services offered by the organization.

customer relationship management in retail banking pdf writer

It becomes the moral values that are established to enhance their business relationship between banks and customers [ 42 ]. Relation between Loyalty and Marketing of Bank Products Banks are gradually accepting a relationship based method to marketing to grow client loyalty [ 4344 ]. The growth of client loyalty is a deliberate objective for most Banks.

There are many different terms used in business today to describe the process of building customer loyalty [ 45 ]. Banks need to have a good understanding of their customer behavior so that appropriate marketing strategies directed towards relationship building and customer retention can be developed. Customer loyalty is also achieved through free offers, coupons, low interest rates on financing, high value trade-ins, extended warranties, rebates, and other rewards and incentive programs.

Relation between Digitalize Operating System and Marketing of Bank Product Banks are looking to rationalize facilities in the term of cost cutting to reimburse for decreasing profits. The most successful banks will be those that have transformed their business models.

Banks will increasingly focus on profitability rather than revenues [ 47 ]. Banks keep all information about customer by using different software. They use data when needed so easily. Banks are now providing their information about their products on internet. They are providing digitalize service to their customers [ 48 ]. Relation between Favorable Environment and Marketing of Bank Product The specific environmental conditions of each nation play a vital role in the definition and specification of the common frontier of different countries.

Banks communicate with their customers through selling their bank products and various media also [ 49 ]. In anextensivelogic the environment is endless and contains all outside the institute. Institutional environment is well-defined as all essentials that be present external margin of the institution and have the probable to distress all or portion of the institution. The environment of an institution can be cleared by investigating its area within external segments.

Extensive regulation, particularly antitrust policies, improves the competitive environment [ 51 ]. Relation between Fragmenting Customer Base and Marketing of Bank Product Fragmentation continues to be an important marketing concept also in a relationship marketing context. Relationship marketing is, however, more interested in enhancing the existing customer relationships and this generates a need for a better understanding of the existing customer base.

Fragmenting consumer base as such segmentation is shown to be a strong analytical instrument as a basis for formulating marketing strategies [ 52 ]. Relation between Industry Consolidation and Marketing of Bank Product The continuous consolidation of Banks is one of the most distinguished modern structures of the financial scenery in developed nations.

The banking industry has experienced an unprecedented level of consolidation on a belief that gains can accrue through expense reduction, increased market power, reduced earnings volatility, and scale and scope economies.

Whether or not bank mergers actually achieve the expected performance gains is the critical question. If consolidation does, in fact, lead to value gains, then shareholder wealth will be increased. On the other hand, if consolidating entities does not lead to the promised positive effects, then mergers can lead to a less profitable and valuable banking industry [ 54 ]. The current wave of merger activity in the banking industry is motivated by the prospective benefits from greater market power created by increasing the concentration or market shares of the margin firms.

The traditional structure-conduct-performance hypothesis SCP asserts that the setting of prices that are less favorable to consumers lower deposit rates, higher loan rates in more concentrated markets as a result of competitive imperfections in these markets. A related theory is the relative-market-power hypothesis RMPwhich asserts that only firms with large market shares and well-differentiated products are able to exercise market power in pricing these products and earn supernormal profits.

Marketing of financial and banking products. Questions and hypothesis Q1: Is loyalty related to marketing of bank product? The late '80s saw the introduction of PC-based contact management software.

This system eventually developed into sales force automation SFA. Through the years, the CRM industry relied heavily on technology and software developments. Siebel, Oracle and SAP became early leaders in the market. When the dot-com bubble popped, major players in CRM felt the sting. But from onward, and as social media and open-source software entered the scene, CRM has experienced transitions and transformations geared toward a paradigm shift.

And despite many setbacks, the field remains full of promise for both businesses and customers. Top CRM Trends to Explore Social networking sites are always changing user and customer experience, and innovating to meet customers' changing demands. Customers now have the tools to express their opinions on anything, at any time and anywhere in the world.

This has changed the role of customer feedback, and made it much more important; after all, customer feedback over social media has been known to make or break businesses. As a result, business entities are increasingly growing aware of the power of social media as a method for engaging customers and potential customers. Mobility is also creating technology and marketing trends thanks to the emergence of smartphones and tablets. So what's on the horizon for CRM?

Here are a few key trends experts expect will become increasingly important. According to Peter Coffee, Salesforce. Unlike before, on-site resources no longer need to scout for leads to input into a system for future sales calls; sources of customer data are already available. Cloud-based CRM will gain momentum as cloud-based applications continue to progress. Read more about cloud computing in Cloud Computing: Social media marketing remains on an uptrend and companies are paying attention.

Consumers are empowered by social networking sites to influence product or brand image and perception. Negative feedback no longer simply routes a call to customer service; businesses can expect feedback to reach potential markets before they do. Software vendors are now responding to social CRM needs. Social media optimization and gamification are gaining traction as marketing strategies, keeping customers engaged with the brand and company.

Learn more about the role of social media in business in Jedi Strategies for Social Media Management. Mobility Forrester vice president and analyst William Band observes how mobility has turned into a critical corporate component.