THE CHANGING SCENARIO IN BANKING With opening up of the economy many private sector banks have joined the fray and are offering a plethora of products and services rechristening themselves as ‘financial boutiques’. Knowledge dissemination has been propelled by electronic and mass media campaigns.
Today’s knowledge savvy consumer is challenging the Indian retail banking industry to redefine itself. In the current competitive scenario – for a bank to survive competition, succeed and make profit, there is hardly any option but to learn from and actively respond to customers’ needs.
Banks offering retail products need to reorient their strategy from a product centric to a customer centric focus to attract and retain high net worth individuals (HNI) and profitable customers.
The battle of the banks, for gaining a greater slice of market share, is taking on a new urgency. In the current falling interest scenario, banks are finding it increasingly difficult to meet the high growth expectations.
In order to bolster their top line banks are increasingly looking at newer ways and means of achieving organic growth through strategies that enable acquisition of new customers and retaining the loyalty of the existing customers.
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