Posted at 11.06.2018
A loan company is a financial institution licensed by way of a government. Its principal activities include borrowing and financing money
Banks no more restricted themselves to traditional bank activities, but explored newer strategies to increase business and catch new market.
-In the 1990s, increased emphasis being placed on technology and creativity.
-New theory like personal banking, retail banking, total branch automation, etc were introduced
Banks' activities can be divided into retail banking, coping directly with individuals and smaller businesses; business bank, providing services to mid-market business; commercial banking, directed at large business entities; private bank, providing riches management services to high net well worth individuals and young families; and investment banking, relating to activities on the financial marketplaces. Most banking companies are profit-making, private businesses. However, some are possessed by federal government, or are non-profit organizations.
Banks offer many different channels to gain access to their banking and other services-
E-banking-Enables people to carry out most of their banking transaction by using a safe website which is managed by their well known bank.
Core banking- it include knowing customer needs. Depositing and loaning of money. Providing main banking solution.
Corporate banking- it offers providing financial answer to large corporate and business and MNC's.
Mobile banking- it can help in balance inquiry, fund transfer, cheque reserve submission etc.
Plastic money-Plastic money are the alternative to the money or standard money, it is convinent to transport and generic term for all sorts of charge cards, debit cards, bank cards, smart cards.
NRI banking-This service is made for diverse banking requirements of the vast NRI population multiply throughout the world.
TOTAL BRANCH AUTOMATION-this is one of the latest towards paper less deals, it is more customer friendly and flexible that has speed up bank purchase and with less error possibility.
The marketing mix of bank sector includes 7 p's that are explained below in order to understand their customers better and provide them good services.
(A) Debris: Cost savings, Current, Fixed etc.
(B) ADVANCES:a) Term Loan, b) Clean Loan, c) Charges Discounting, d) Improvements, e) Pre-shipment Financing, f) Post-shipment money, g) Secured and Unsecured credit lines.
(2) Non-fund oriented: a) Guarantees, and b) Notice of Credit.
(C) INTERNATIONAL Bank: a) Notice of Credit, and b) Foreign Currency.
(D) CONSULTANCY: a) Investment Counselling, b) Task Counselling, c) Product owner Banking, and d) Duty Consultancy.
(E) MISCELLANEOUS: a) Traveller Cheques, b) Credit-based card, c) Remittances, d) Series, e) Sale of Drafts, f) Ranking instructions, and g) Trusteeship.
Price-The price blend in the banking sector is nothing but the interest levels charged by different banks.
Let's understand this with an example. A particular buyer approaches for a motor vehicle loan say for a period of 3 years. He is costed Rs. 20, 000 as interest. however in case a sales rep of another bank comes to know of the deal he'll try to get the customer giving him an improved deal that is a loan at a lesser rate on interest. In this manner due to the advanced of competition the client benefits.
This kind of pricing is mainly done by banks having unique or different products or techniques. They usually bill a combination of high and low prices depending on the customer commitment as well as the products. This sort of prices strategy is usually in conjunction with promotion programs.
-Going rate pricing:
-Mark up charges:
Place combination is the positioning analysis for finance institutions branches. You can find quantity a factors impacting the willpower of the location of the branch of bank or investment company. Like inhabitants characteristics, commercial, proximity of other commercial shops.
Promotion is nothing but making the client more and more aware of the assistance and benefits provided by the bank.
The lenders today can use a whole lot of new technology to talk to their customers. Two of the speediest growing modern tools of conversing with the clients are:
1. Internet Banking
2. Mobile Banking
The process combine constitutes the overall procedure involved in using the services offered by the bank.
Let's take for example the process for software for a car loan.
Now this mainly consists of 3 things.
1. Producing of proper documents
2. Filling of application form
3. Paying for the initial down payment
Physical proof is the overall layout of the place. How the whole loan company has been designed. Physical data refers to those factors that helps make the process much easier and smoother. For instance in case of a bank the physical research could be the placement of the customer service executive's table, or the positioning of the area for depositing Cheques. It's very necessary the area is designed in such a manner so as to ensure maximum convenience to the customer and cause no dilemma to him
Banks will be the most crucial players in the Indian financial market.
They will be the biggest purveyors of credit, and they also attract most of the personal savings from the population. Dominated by general population sector, the bank industry has up to now acted as a competent spouse in the expansion and the development of the country. Motivated by the socialist ideologies and the welfare talk about concept, open public sector lenders have long been the supporters of agriculture and other goal sectors. They become crucial stations of the government in its efforts to ensure equitable financial development. The Indian banking can be broadly classified into nationalized (government held), private lenders and specialized banking institutions.
The Reserve Lender of India functions a centralized body monitoring any discrepancies and shortcoming in the machine.
The Indian banking has finally upset to the competitive dynamics of the 'new' Indian market and it is addressing the relevant issues to defend myself against the multifarious difficulties of globalization.
-Banks that utilize IT alternatives are recognized to be 'futuristic' and proactive players capable of get together the multifarious requirements of the large customer's basic.
-Private Lenders have been fast on the uptake and are reorienting their strategies utilising the web as a medium THE WEB has emerged as the new and challenging frontier of marketing with the traditional physical world tenets being just like applicable like in virtually any other marketing medium.
- Since for Indian banking companies globalization can be a good opportunity that they can exploit that will lead to increased revenue, size and level.