CRM in banking Services with reference to Internet banking services in NCR Delhi

Abstract

In the recent years, CRM has emerged as one of the most widely prescribed solutions for diminishing market share and sluggish growth in banking and financial sector in particular. Technology- intensive delivery channels like Internet-banking, Tele-banking, Mobile Banking and Automated Teller Machines (ATMs), etc., have created a win-win situation by extending greater convenience and multiple options for customers while providing tremendous cost advantages to the banks (G Shainesh & Avijit Choudhary, 2004). The positive impact of technology infusion is clearly visible now in almost all the areas of banking operations, especially in the retail and payment systems in the country. Internet banking is now widely used by many people especially in metro cities. Since this concept of banking is internet based and the services are mainly being floated in major cities of India by various public and private banks. Internet banking is also considered an important CRM tool by the banks and used as a business strategy to create, retain and maintain long-term profitable customer relationship by satisfying customer’s need. In the above framework, this research, studies the theoretical aspects of CRM in general and adoption of particular CRM practices by the leading Indian banks such as State Bank of India, ICICI bank, HDFC Bank & Punjab National Bank in particular. The main aim of this research is to study the effectiveness of IT related CRM practices followed by these banks in Internet banking. The study uses customer opinion survey (N=400) of two public sector banks and two private sector banks and 100 respondents for each bank are taken. ANOVA provides some insights in the internet banking provided by the banks in question. The four banks taken into consideration are assumed to represent the functioning of both the private and the public sector and their CRM practices. This is done to generalize the findings and to give our recommendations and suggestions to the banks in question. Key words: CRM, Internet Banking, Private Sector Banks, Public Sector Banks.

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