Marketing to rule the roast in the Banking Sector

Even till the late nineties, banking in India meant visits to the branches and standing in long queues. It was all so tedious and time-consuming. The bank employees worked at a pace that would put even a tortoise to shame, servicing the customers manually. The reforms of the nineties made this sector to take rapid strides with the aid of technology. The total experience of banking received a radical change. Developments like ATMs, Online banking, phone banking and mobile app-based banking was the game changer. Now instead of searching for the branch address, customers prefer to search ifsc code.

The core-banking concept totally changed the way this sector operated.  Customers earlier dealt with the branches and its staff was now interacting with the bank as a whole.  New financial institutions emerged, and the old school banks changed their gear. Both categories of the bank utilized technology irrespective of the hurdles faced. 

The customer walk-in has reduced largely at the branch level.  Technology based solutions for banking are now more preferred by the customers.  All it takes is the effort to search ifsc code of the branch where the transaction has to be executed.  The bank's employees have now assumed the role of facilitators and advisors of various other financial products like insurance, mutual funds, share trading and the likes.

Now it is the competition. Several banks are now involved in the cross selling of the products of other financial institutions. It is to leverage the massive customer database of the banks and offer products to suit their financial needs.

The new generation banks have taken the customers beyond the ‘search ifsc code’ step, the system that forms the basis of online banking. These institutions have made the use of technology even further by using data warehousing and data mining techniques.  It is used to offer to customize products to the customers and sharpen the market targeting strategies.  It is making their marketing strategies more effective and target oriented.

The biggest challenge that the banks face today is attracting the youth to their branches.  This the tech savvy generation that goes beyond the ‘search ifsc code’ stride.  They know a little more than an average bank employee when it comes, to technology, its uses, the gadgets and all. 

Brand building will play a pivotal role here.  Marketing has to go to the level such that it occupies a distinct space in the minds of the youth. It needs to be understood that brand loyalty is now a concept of the past.