In Indian economy has brought with itself tech savvy

In the present competitive scenario the
core of banking has changed from only banking to need based banking. Customer
satisfaction has become the buzz work for success of any organisation. Customer
Relationship Management is a strategic tool probing and focussing on customer
retention rather than customer acquisition. CRM emphasises on creating,
satisfying and retaining customers through need based services. CRM has become
an inevitable tool of modern day marketing and can be adopted uniformly in the
banking industry. Building a lifelong relationship through satisfaction of
customers will pave the path of success for any business today.

 

The concept of banking can be traced back to
authentic history and as early as 2000 B.C. Babylonians who are said to be the
developers of banking system. The most ancient bank is supposed to be The Bank
of Venice, established in the year 1157. In India, the Vedic period gives traces
of banking system. But in those days banking meant only lending money whereas
today’s banking is far more complicated and modernized. The oldest bank in
India was the Bank of Calcutta established in 1806 now known as State Bank of
India. Banking industry today is a major sector for the existence development
of any economy of the world.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Liberalization of the Indian economy has
brought with itself tech savvy banks that have left no stones unturned to
acquire and retain their customers. The opening of the economy brought a sea of
private sector banks joining the competition through diversified products and
services. But today’s intelligent customers are challenging the banking
industry to redefine the banking sector. The just banking concept has changed
to need based banking concept with Customer Relationship Management becoming
the centre of success for every business, particularly service sector. Bateman
and Snell have rightly pointed out that “Customer Relationship Management is a
business process which results in optimized profitability and revenue
generation, while achieving customer satisfaction.” CRM today has completely
changed the definition of marketing. The modern marketing concept has become
focussed on Relationship Building rather than just acquiring.