A STUDY ON EFFECTIVENESS OF RETAIL BANKI

A STUDY ON EFFECTIVENESS OF RETAIL BANKING SERVIECES TOWARDS CUSTOMER SATISFICATION IN MUMBAI : 

A STUDY ON EFFECTIVENESS OF RETAIL BANKING SERVIECES TOWARDS CUSTOMER SATISFICATION IN MUMBAI SUBMITTED BY: RANJEET KUMAR SHRIJAY KUMAR 7NBMM039

OBJECTIVES : 

OBJECTIVES To understand the future growth of the industry To determine potential customers towards retail banking To understand the promotional strategies provided by retail banks To find out various facility provided by retail banks to customers To find out the factors which are influence customer satisfaction while purchasing retail banking products. To find out the main factors which are considered the customers purchase decision To do the comparative study between ICICI Bank and HDFC Bank

INTRODUCTION : 

INTRODUCTION Retail banking can be crudely defined as the antonym of wholesale or bulk banking. It is nothing, but shared business. A deposit of Rs.1 lakh from single customer vs. small deposits of Rs. 10,000 each from 10 different customers. The corporate and retail divide is nothing but internal segmentations and the customer remains always a customer. Retail banking generally refers to offering financial services, products related to deposits and assets to individual customers for personal consumption.

ADVANTANGES OF RETAIL BANKING : 

ADVANTANGES OF RETAIL BANKING

Retail Banking Functions available in India : 

Retail Banking Functions available in India A banks retail offering can be broadly categorized into Core service, facilitating service, and supporting service. Payment services Current account and savings account Loan products: Consumer loans, personal loans, housing loans, educational loans Insurance products: Life insurance, pension schemes

COMPETITION : 

COMPETITION

Market Fragmentation : 

Market Fragmentation

SWOT ANALYSIS : 

SWOT ANALYSIS

ICICI : 

ICICI Launches a 30 year tenure home loan, the longest available ICICI also launches a variable rate loan with a monthly rest basis versus the regular fixed rate loan that is on an annual rest basis No guarantors are required for loans up to 20 years in most cases No pre payment fees for any part payment as long as the loan is not fully retired, else 2% charge on pre paid amount. You can repay up to 33% of the outstanding loan in any year without paying penalty. Free accident death cover for the owner Special 100% funding for select properties Higher eligibility for self-employed professionals through segment-specific schemes

HDFC : 

HDFC Offer Flexible (Customized) Repayment Schemes, Pari Passu/ Second Mortgage Arrangements Safe Document Storage Facilities Home Conversion Loan A customer, after availing of a loan can approach HDFC anytime thereafter to increase the Equated Monthly Installment which will help him repay the loan faster .

ICICI : 

ICICI Positioning The bank’s initial positioning was mainly on service factor and now this has changed to a customer’s interest focused and a friendly bank.  Message: With the shift in positioning there has also been change in the message conveyed from service focused to customer interest focused. It is the first to sign up a celebrity ‘Amitabh bachchan’ for its advertising. This conveyed a message of the bank being as popular and famous as the celebrity. Media The general preference is for television, hoardings, newspapers, magazines, radio etc. ATMs also form an effective advertising tool as their mere presence makes the consumer aware of the bank. Besides this, ATM machines are also effectively utilized to cross-sell the bank’s retail offerings to its already existing customers.

HDFC : 

HDFC Positioning Expertise service. It tries to address the financial needs of the consumers. Message The bank’s presence in the housing sector for a fairly long period is portrayed in its advertisements. They also focus on promoting the simplicity in work procedure, superior service. Their ads also strive to bring the bank out of the ‘only housing’ image. Media The most preferred medium by the bank are hoardings and print media. They rely on word of mouth and goodwill which they have created through 25 years of service.

RESEARCH METHODOLOGY : 

RESEARCH METHODOLOGY Sample size A random sample of 100 were administered with the questionnaire and responses collected. Research Area The research was carried out at Borivali, Mira road, Bhayandar regions in Mumbai CONSUMER SURVEY Top of mind awareness of consumers for banks offering various retail products. Factors influencing their purchase decision. To study the comparative influence of various mediums of advertisements in creating awareness amongst the consumers. To find the immediate competitors in the minds of consumer for every retail product.

Respondents’ profile : 

Respondents’ profile

Professional profile : 

Professional profile

DATA ANALYSIS : 

DATA ANALYSIS The respondents were asked to rank the following factors according to their preferences in the extent to which they influence their purchase decision.

Slide 17: 

In our survey majority of the respondents had availed Vehicle loan followed by credit cards.

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Majority of the respondents considered HDFC and ICICI for availing housing loan. 25 years of superior service has helped HDFC in creating goodwill in the mind of people and has helped the bank for consideration.

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Majority of the respondents considered CITI BANK for credit cards followed by STAN CHART and HSBC. Being the first bank to launch credit cards and through aggressive advertisements in the past CITI BANK has created awareness amongst the customers and by providing superior service it CITI BANK still acquire major share in the consideration list.

Slide 20: 

SBI and HDFC form the major chunk for consideration in this category followed by SBI.

Slide 21: 

ICICI in general has a high level of awareness among the people owing to its extensive advertising.

Slide 22: 

HDFC being a private and an aggressive player, especially in the home finance arena, has taken the print media as its stalwart for awareness.

Chi square : 

Chi square Null hypothesis H0 - retail banking is not effective towards customer’s satisfaction Alternative hypothesis H1 – retail banking is effective towards customers satisfaction

Cont……… : 

Cont……… At 10% significance level the table value is 14.605 Calculated chi value is 32.1 Since the calculated value fall outside the table value the null hypothesis is rejected Thus we can conclude that retail banking is effective towards customer’s satisfaction.

CONCLUSION : 

CONCLUSION The scenario is becoming highly competitive in every sphere of banking activity- more so u n respect of retail lending. Processing time and interest rates are major influencing factor for making purchase decision. As per survey ICICI and HDFC are to major brand name considered for housing, auto and personal loans. Awareness through television is the highest level followed by newspapers. The future of banking is dependent on technology, marketing, logistics. Banks have to prepare themselves for facing a soft interest regime. New kind of management skills are required to manage the retail lending portfolio.

LIMITATIONS : 

LIMITATIONS Sample size selected will be small   Time constraints   Data will be collected might not be completely accurate.   Survey carried out in selected areas only   The survey will be conducted on random basis.

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