Understanding Customer Satisfaction In The Retail Banking Finance Essay

Banking in India has been present since the Vedic period. It is believed that the dealing of money for loaning and economy was present in India. During the Mugal imperium in India, the bankers played an of import function in loaning services to the local people at higher rate of involvement or money exchange took topographic point for good and services. During the yearss of East India Company, it was a turning point for the Indian banking to transport on their concern. The three Bankss which were established in India by British were Bank of Bengal, Bank of Madras and Bank of Bombay. Reserve bank of India which is the cardinal bank was created in the twelvemonth 1935. At present minute the banking system of India has been categorized into: Public Sector Bank which compromises of State Bank of India, all Nationalized Banks, Local rural bank for the rural population and assisting agribusiness services. Second are the Private Sector Bankss which via medias of foreign Bankss, freshly generated private Bankss, scheduled concerted Bankss. Third are the Cooperative sector Bankss in India which compromises of State Cooperative Bankss, cardinal concerted Bankss, State land development Bankss, urban concerted Bankss and others. Fourthly are the development Bankss which via medias of Industrial Financial Cooperative Bankss, province land development Bankss, urban concerted Bankss, and many others.

Hire a custom writer who has experience.
It's time for you to submit amazing papers!

order now

Presently, India has more than 88 scheduled commercial Bankss, 28 authorities keeping Bankss which are public sector Bankss, 29 private Bankss and more than 31 foreign Bankss which have it operations. There combined web has over 54000 subdivisions and more than 18000 ATM ‘s. Retail banking industry in India has developed at a fast gait in the last decennary. There is an addition in demand of retail banking merchandises in India. This alteration is chiefly due to alter in consumer demographics and increase in the literacy degree among the population. The Indian Retail industry has a immense potency chances which via medias of a big population.

Rationale for the survey

Research issue: Analyzing client satisfaction with bing Bankss

Why it is an issue: The Indian Retail Banking industry is still on its emerging phases it still has to batch of potency for client satisfaction processes.

What could this research shed visible radiation on: The range of this undertaking would be chiefly extended to the facets of Retail Banking Operations for betterment efficiency of the services with regard to every twenty-four hours operations of Barclays bank.

Research Purposes:


To develop an apprehension for Banking industry and the client satisfaction procedure from their Bankss.

To understand the operations of different services provided by retail banking merchandises.

Research Questions — –

Whether companies are satisfied with their Existing Bankss.

Are the clients aware about Barclays?

What type of installations, both client and technological, do the clients want.


Null Hypothesis H0: Customers are satisfied with the services provided by their existing bank.

Alternate Hypothesis H1: Customers are non satisfied with the services provided by their existing bank.


Literature Review & A ; Conceptual Framework

Retail banking refers to the services provided by the commercial Bankss in covering with the person clients, in both the procedures of loaning and lodging money which deals with both side of the balance sheet. Banks chiefly trades with the current and salvaging history for the clients both on the plus and liability side of the balance sheet. Other services offered by the retail bank for the clients includes services like debit cards, recognition cards and dedicated services like personal precedence banking.

Today ‘s retail banking sector is characterized by three major basic classs which are:

Multiple merchandises services ( sedimentations, recognition cards, insurance, investings and securities )

Multiple channels of distribution services ( call Centres, subdivision, cyberspace etc. )

Multiple client groups services ( consumer, little concerns and corporate )

Researches done in the yesteryear on Retail Banking have concluded that the

The Retail Banking Report in the yesteryear have been by extended survey and analysis one of the most underdeveloped sectors in India. It covers chiefly the survey of the present position, current offering an position, major issues and challenges faced by the banking sector in India. Retail banking in India has continued in a continues fast gait and is a major driver of the banking industry in India. These yearss the banking schemes in India are under traveling a major transmutation as most Bankss have adopted selling mix schemes, merchandise placement schemes, like acquisitions, amalgamations and confederation with foreign bank to develop their markets and have client satisfaction. However this has resulted in bettering the criterion of the quality of services provided to the clients by Bankss. All retail Bankss in India has a standard displacement in schemes which has made them aggressive towards scheme edifice, leveraging their subdivisions and ATM web to increase their client base and holding a larger market portion of the retail industry. Barclays is one of the taking Bankss in UK. Retail Banking in India carries on redefining the recognition development in the state. Barclays is a late entrant among the foreign Bankss that are already present in India like HSBC, ABNAMRO, STANDARD CHARTED, DEUTSHE BANK, CITI BANK. Barclays still is seeking to capture market portion among these Bankss and are besides traveling on implement advanced schemes like cross merchandising and packaged merchandising of retail merchandises. At the same clip, new foreign participants are besides come ining this high growing sector and one of such participant is BARCLAYS BANK..

3. Current Scenario in Indian Retail Lending:

Even though non-performing assets in the banking industry fell from 4.4 per cent in 2007 to 2.9 per cent in 2008, a hiking in the per centum of retail loaning may besides present a hazard of hapless plus quality of Bankss given that bad or ‘impaired loans from 2.5 per cent of entire loans outstanding. Of the entire retail loans, impaired lodging loans constituted 1.9 per cent. The highest was in the consumer lasting section at 6.6 per cent.

The retail section ‘s portion in entire loans for the period stood at 21.5 per cent, with lodging loans representing 48 per cent of the retail portfolio. The portion of the lodging loan portfolio out of entire loan book of Bankss has grown from 3 per cent in 1993 to 7 per cent 2004.

Prospects of Retail Banking in India:

The conventional scenario of Banks is fast altering. The Banking Institutions have started revisiting their Visions. Should they hold 1000s of C category Accounts or a few A and B category Histories? They have come to the decision that it is non economical to serve the C category Accounts. Even in India, Bankss are raising the saloon on sedimentations. Some Banks have even increased the minimal balance in Savings histories so that they are out of range of the little adult male.

Why is this so? This is a natural corollary to the competences that are being built up at a important velocity in all Bankss. Analyzing them one by one will assist us cognize where the Bankss are heading, in the close hereafter.

Customer Focus:

All along, the word “ Customer ” used to denote any individual who is holding an history with a subdivision of a Bank or utilizing the services of a Branch. Here, we can now see a new definition for client. A client is no more a client of the Branch ; he is the Customer of the BANK. With the coming of ‘AAA Banking ‘ ( Anytime, Anywhere, Anyhow Banking ) the new definition of client has become relevant. Technology enables the client to “ assist himself ” through Internet Banking, ATM Banking, Telephone Banking, Online Banking, Mobile Banking, or e-Banking, etc. Furthermore the construct like Know Your Customer ( KYC ) reinforced when Reserve Bank of India late urged Bankss to better client focal point as a strategic enterprise for effectual direction of profitableness, hazard and client satisfaction every bit good as client delectation!

Segment focal point:

Banks are evidently for client service. But Bankss are happening that they excessively need to section and aim High Net worth Persons ( HNIs ) and companies if they have to fulfill the demands of their stakeholders. Therefore, Banks are by and large traveling towards merchandises that are focused on their targeted terminal clients. And this mark is specifically the high terminal clients ; as they do non happen any purchase from the little histories. But there is a strong tendency in footings of consolidation in footings of the concern cleavage. The general form of the Bankss is to provide to all sections – from agriculturalists to high net worth person to corporate banking to international banking. An analysis of the current scenario indicates that in future, each bank will make up one’s mind on its nucleus competence and cater merely to selected sections. For illustration, the Deutsche Bank in India operates merely in the corporate banking and it has turned as a market leader in this section.

Merchandise focal point:

Banks have been offering assorted plus merchandises ( Loans ) and liability merchandises ( Deposits ) , taking the clients ‘ general demands like fixed sum loans or running Cash Credit / Overdraft histories or Fixed Deposit or Accumulative Deposit or Recuring Deposit as liability merchandises. Now, the clip has come for the Customer to demand a merchandise that is non presently available in the Banker ‘s pool and the Bank has to literally make customer-specific merchandises. Here comes the Banker in the function of a Financial Engineer.

Technology focal point:

These four tendencies are impacting irreversibly the concern of banking, outsourcing, in sourcing, analytics, and payment systems. Given these factors the Bankss are being more engineering focused and driving the usage of cyberspace to assist run into the demands of their clients through cleavage.

( I ) Internet banking

The tendency in banking is altering from cybernation of subdivisions to puting a unvarying platform by holding nucleus banking solution in all the subdivisions. At the same clip, all the Bankss are looking at cyberspace banking sector. While a start has been made in the Internet banking in India, the figure of minutess through this manner is highly negligible ( less than 1 % ) . A survey group appointed by the RBI has suggested that for Internet banking, there should be robust system maintaining a log of all web activities and analysing the same. RBI has gone on to propose assorted proficient characteristics essential for holding such a robust system. This should be in place within the following 2 old ages. Hopefully, the retail Bankss will see a surge/splurge in the use from 1 % to at least 10 % in the following twosome of old ages. Pass of Information Technology Act, 2000 gave adequate alleviation to the users guaranting of proper usage of engineering in banking.

( two ) Shared ATMs

Till the twelvemonth 2005, each bank was interested in opening its ain ATMs to supply entree and anytime banking to its clients. Cost of Installation of ATM is about Rs. 15 lacs with an extra care cost of Rs.1.5 lacs per month. To interrupt even, 300 minutess are to be put through each ATM per twenty-four hours. The cost of dealing in the subdivision of the Bank is about Rs. 60 while it is Rs. 10 if conceded out through an ATM. To take advantage of this lower dealing cost, there is demand for Bankss to bring on clients to utilize more and more ATMs. In position of the immense investing cost of ATMs, Banks have now come to an apprehension by which the client of one Bank can utilize the ATMs of other Bank/s. This one is in the right way. Already SBI, HDFC Bank, ICICI Bank and others have started offering such a installation at a nominal payment per dealing, for which the clients are readily agreeable.

( three ) Outsourcing

These yearss the challenge of pull offing the assorted services in a retail banking environment has caused Bankss to supervise on what should be considered as primary and secondary aims.

In future the Bankss will necessitate to distinguish its services by regular supervising their competitory advantages while viing against their rivals in the retail banking industry.


( four ) In sourcing

In sourcing is a theoretical account where the bank performs operations that are originally done by the client ‘s bank. Business clients may farm out actions like receivable direction, accounting and hazard direction of corporate investings to Bankss. New merchandise offering to such Bankss will emerge as a combination of bing merchandises and new inner generated activities.

( V ) Real Time Gross Settlement ( RTGS )

In the last one decennary, thanks to uninterrupted push on cybernation in the banking system, RBI took enterprise for conveying in Electronic Fundss Transfer ( EFT ) , Electronic Clearing System ( ECS ) , ATMs and Internet Banking. Cross merchandising of assorted fiscal merchandises has been possible due to ATMs and Internet Banking. Investing clime has besides geared up in volumes with Dematerialisation installation introduced by puting up of NSDL and CDSL after formation of National Stock Exchange in Mumbai. Uncluttering Corporation of India Ltd. , ( CCIL ) has besides made singular impact on financess colony mechanism. Very shortly Cheque Truncation system is traveling to be spearheaded by RBI in a phased mode.

RTGS is a payment system in which processing and colony takes topographic point in real-time ( continuously ) . In this system, financess would flux freely from one market to another taking to better integrating of the Domestic Financial Markets among themselves, and with International Financial Markets every bit good. RTGS, as a colony procedure will minimise colony hazards by settling single payments in existent clip in the books of histories held by the RBI. RTGS will be a manner for big value Inter-Bank colony, to be widely used, for heightening hazard control steps, for faster and efficient colony of liabilities for better client services for the ultimate users in the value concatenation. RTGS would extinguish the clip slowdown between the debit to an history of client and its matching recognition to another client in a different bank. RTGS requires execution of a 2 Level Gateway- 1 at the single bank degree and the other at the RBI degree. Significant part made by Institute for Development and Research in Banking Technology ( IDRBT ) , Hyderabad in this respect is applaudable.

Employee focal point:

Earlier, there were premises where the subdivision of a Bank is located and there were three classs of staff to go to to the clients viz. , Supervisory, Clerical and Sub-ordinate staff. With the disappearing of large legers and registries, the demand for Sub-ordinate staff is besides acquiring reduced. The function of supervisory staff would increase and non in the sense of commanding the staff working with them but in different countries of presenting competitory services. Awareness about productiveness, client focal point, competition, grievance/ ailment redressals, market studies, etc among the bank staff has gone up really high.

The VRS strategy introduced in the twelvemonth 2000 by the Banks was to cut down the excess staff consequent to cybernation. It is felt that one more VRS would be needed for the Banks to cast their surplus flab and do them fit and spare. Henceforth, the function for clerical staff would hold to undergo a alteration from sitting under the roof in a subdivision to traveling into the field and market assorted fiscal services offered by their Bank and non merely pull new clients and retain bing patronages but besides retrieve the clients lost to rivals. In a nutshell the tendency is towards sophisticated good trained client orientation.

Banking Hourss:

Bank hours were fixed so far. Now the fact is that about all Bankss are traveling towards any time/any where/home banking. Again, a closer expression at this will uncover that Banks are traveling off from the traditional client to the client who is excess busy. Who is this? Again, the high net worth person and the extremely profitable companies. For illustration ICICI bank has started 8 to 8 banking where the banking hours are 8 am – 8 autopsy looking at this competitory market, Barclays Bank has 24/7 Banking.

The Problems ofA Retail Banking in India:

The challenges that the retail banking sector in India faces:

Customer focal point:

The retail Bankss in hereafter will seek to sharply market their merchandises. To market these merchandises, there will be advanced manners to make clients like SMS, cyberspace, and nomadic phones. Some Bankss are besides prosecuting the services of Direct Selling Agents ( DSAs ) , Franchisees, etc for sourcing and assessment of loan proposals, issue of Credit Cards, merchandising of insurance and common fund merchandises, etc. Such methods may some times displease/disturb the client. Furthermore, Bankss by and large pitch on higher degrees of service but if the Bankss do non fit up to what they have claimed, this may take to unsated clients and higher client abrasion rate.

Merchandise focal point:

The challenge here will be to plan and introduce the fiscal merchandises which cater to the mark section demands. In future, retail banking scenario will see a immense proliferation of merchandises. This will in bend require inventing merchandise which is easy to understand and at the same clip run into the fiscal ends of the clients. The job that lies in front is to derive a mindshare for one ‘s merchandise given a broad scope of merchandises.

Technology focal point:

Technology in India has been in India for over seven old ages now. But its incursion in the Industry in general and that in the fiscal services market has been instead uninspiring despite its professed advantages. The surprising facet that came out from the survey was that though the Bankss were cognizant of the engineering ‘s benefits, they are disbelieving about its pertinence to their organisation. The beginning for this is the surprising growing that the Bankss are sing at the minute. Most of the Retail Bankss are witnessing a enormous enlargement in their client base: one bank even claim to be adding over 100 % client on y-on-y footing. However, on the other forepart there is increasing threat of hacking, phishing and farming through which scamsters are making mayhem indulgence in cyber offenses on a big graduated table.

Apart from this, there are many other factors that have undermined the credence of Customer Relations Management ( CRM ) . The chart shown below enlists the assorted factors ( and their comparative weightages on a graduated table of 1 to 5 ) that are believed to hold played a function in the sulky incursion of CRM in the retail-banking sector:

The 2nd of import parametric quantity that came out from the survey was the cost. To sum up, Indian retail banking participants want less hazard and faster returns at lesser costs

Since, Bankss by and large ca n’t make with an investing that takes a long clip to acquire running, implementation clip figures as the top-most standards closely followed by initial costs and preparation required.

Employee Focus:

In a service based industry the value can be delivered at the minute of interaction with the clients. It is graphic from the above chart that there needs to be focus on the employees and upgrading their accomplishments as they at the front terminal would be the face of the bank. Hence, developing requirement factor figures conspicuously in the instance of Bankss due to the fact that these Bankss by and large make make with merely the needed sum of work force and it is really hard for them to save them. That will straight off get down upseting their operations.

Banks, in a thrust to transport on with enormous enlargement in footings of client base, need to hold demands of the employees who are good informed about the merchandises every bit good as have the necessary soft accomplishments to cover and fulfill the clients. In future there may be a job of acquiring work force or in particulars client attention executives with enhanced accomplishments, cognition and attitude. Hence, it challenges for the bank to upgrade their bing work force and retain or lock in the best endowments for holding competitory border in footings of human resources.



Strong distribution channel.

Mobile Banking and Free ATM Transactions

Robust gross revenues system.

Fiscal strength

24/7 Banking

Among Top 10 Banks in World


Gross saless executive.

Are chiefly for high category people

Not opened so many Branchs to make common people


Market in rural sector still to be tapped.

Global Brand image.

More portals to be opened in the field of insurance sector and securities.



Public sector and Existing Foreign Bankss in India.



( a ) Aim of survey

The primary aim of the survey was to happen whether the companies are satisfied with their bing Bankss.

The secondary aim of the survey was to happen out:

Are the clients aware about Barclays?

What type of installations, both client and technological, do the clients want.

( B ) Problem definition

How to do the companies aware about Barclays and its characteristics.

( degree Celsius ) Hypothesis

Null Hypothesis H0: Customers are satisfied with the services provided by their existing bank.

Alternate Hypothesis H1: Customers are non satisfied with the services provided by their existing bank.

( degree Celsius ) Research design

The research design adopted is a combination of exploratory, formal and descriptive.

Since the survey is based on a analysing through informations collected by study so it is formal and it has certain elements of geographic expedition as good. And since the survey is related with mensurating where or whether, it is descriptive in nature.

To accomplish the above aim of the survey, the undermentioned instruments were used-

Questionnaires- It consists of a figure of inquiries printed or typed in a definite order on a signifier or a set of signifiers. Peoples have to reply the inquiries themselves. To make the above research, we used a structured questionnaire which had 12 inquiries about the respondents ‘ involvement in SALARY ACCOUNT-BARCLAYS, its services, their satisfaction with services and engineering etc.

( vitamin D ) Sample design

A sampling design is a definite program for obtaining a sample from a given population. It refers to the technique or process the research worker would follow in choosing points for the sample. For this research we have chosen simple random chance sampling.

Sample size- 50

( degree Fahrenheit ) Data

Primary informations collected through questionnaires.

Secondary informations collected through assorted beginnings given in mentions.


One of the basic restrictions of this undertaking is that it is limited to few companies in different countries.

One of the restrictions of the study will be that this survery will be carried out in industrial countries where they have no cognition or less cognition about the services of a approaching bank.

A random study will non be giving a exact image of the current scenario of the client satisfaction among clients.

Many client hesitate in make fulling up the questionnaire.

This study will be done with the proprietors or the history holder who sometimes have no or less cognition about Bankss.

6. Timetable

The research proposal has been designed and developed with timeline prepared to accomplish the aims of survey as follows:

Choice of Industry — 5 Hours.

Critical analysis of jobs faced by the industry-20 Hours.

Choice of peculiar company to concentrate and associate the job of industry with regard to direction theory and practice-8 Hours.

In deepness survey of assorted beginnings like books, diaries, newspaper articles and shoping the web related to defined problem-12Hours.

Measuring the available resources for conceptual framework-6 Hours.

Collection and filtrating natural data-10 Hours.

Developed principle for survey which includes research purposes, aims and hypothesis-12 Hours.

Finally formulated research proposal of chosen company-6 Hours.


I'm Heather

Would you like to get such a paper? How about receiving a customized one?

Check it out