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Consumer Behavior towards

Retail Banking

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What is Retail Banking?

Retail banking is typical mass-market

banking where individual customers

use local branches of larger

commercial banks.

Services offered include: savings and

checking accounts, mortgages,

personal loans, debit cards, credit

cards, and so on

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Evolution in Retail Banking in India

Traditional

Banking

Credit Card

Computerized

Banking

ATM & Debit

Card

Phone Banking

Internet

Banking

Mobile Banking

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Cultural Shift towards Retail Banking

Changes in the family culture

Joint Family to Nuclear Family

Dual Income in a Family

From save & buy theory to buy &

repay principle

Social Security & Status

Increase in Purchasing Power

Tax Benefits

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Reasons for Transformation

LPG Impact

Ease of transactions

Accessibility

Plastic Money

Security Needs

Phone Banking

Internet Banking

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How Consumers learn about new

products & services

Television

Print

Outdoor

Word of Mouth

Relationship Bankers (CRM)

Online Advertising

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Consumer Buying Behavior -

Involvement & Adoption Rate

Area wise

segmentationBranch

BankingATM / Debit

CardInternet

BankingPhone

BankingMobile

Banking Credit Cards

Urban Areas Low High High Medium Low High

Non-UrbanAreas High High Medium Medium Low Low

Involvement & Adoption rate of Consumers towards Retail Bankingin Urban & Non-Urban Areas

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Consumer Buying Behavior -

Involvement & Adoption Rate

Involvement & Adoption rate of different class of Consumerstowards Retail Banking

Customer

segmentationBranch

BankingATM / Debit

CardInternet

BankingPhone

BankingMobile

Banking Credit CardsStudying

Class Low High High Medium Medium MediumWorking Youth Low High High Medium Low High

Working

Adults Low High Medium Medium Low MediumSenior

Citizens High Medium Low Low Low LowHousewifes High High Low Low Low Low

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Whats Whys of Consumption /

Comparison and Preference

Global V/s Indian v/s Nationalized v/sScheduled v/s Cooperative

1. Technology

2. Experience

3. Reach4. Work culture

5. infrastructure

6. Timing / Shifts

7. Product Offering

Rate of Interest

Facilities Net Banking, MobileBanking, ATM

Loans

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Media selection by consumers for

decision making

Word of Mouth (Peer group)

Television

Newspaper

Brand

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Relationship marketing to build

Loyalty

Priority Banking

Relationship Managers

Flexibility in documentation

Loyalty Reward points

Add on cards

Demat Account

Hassle free loans

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Distinctive Characteristics

Multiple products

- deposits, credit cards, insurance,

investments, securities & so on..

Multiple channels of distribution

- call centers, branch, Internet and kiosk

Multiple customer groups- consumer, small business, and

corporate

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Conclusion

From mere bank to advisory services

One stop solution

Customer service

Technology driven

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Thank You!!!