Present trends on marketing of Banking Services and Recommendation

Introduction:

Bank marketing is the aggregate of functions, directed at providing services to satisfy customers financial (and other related) needs and wants, more effectively and efficiently than the competitors keeping in view the organizational objectives of the bank. Assessing the present and future needs of customer the approaches of marketing are in next level. It replaces all the traditional/ previous marketing strategy in the Banking sectors.

Many research data show the trend of rapid marketing in the Banking Sectors are started to came into effects after the 2009 Financial Crisis and emerging of the technology (especially Social Medias, SEO etc.) With so much money to manage, major banks such as JPMorgan Chase, Bank of America, Wells Fargo, and more are releasing new features to attract new customers and retain their existing ones. On top of that, startups and neo banks with disruptive technologies are breaking into the scene, and traditional banks are either competing with them or merging with them to improve their service.

If we talked about the trend of Marketing in Banking sector in the context to Nepal, the marketing activities are emerging now. Rather than following healthy marketing functions they are aggressive via the social media trend. It’s like the social trend to reach out the customer in generous way rather than effective and qualitative ways.

Identification of Problems:

Let’s discuss more about the Nepalese scenario how Banking sectors are deprived into the Nepali market to reach the customers;

a)      Nepalese Banks are more aggressive towards to reaching out the customers without any focusing concepts and quality

b)      Never deals on what actually customers wanted or the sensitive of advertisement is all about

c)      Rather than giving proper information, they wanted to engage the customer through the marketing aspect which does not create any values

d)      In Nepal still, Financial Literacy and awareness are not in notch, which really creates big dilemma over the banking marketing policies.

e)      Nepalese Banking are guided by the syndicate; means there is no any healthy marketing functions all Banks in Nepal follow the same approaches of marketing level, that never gives new concepts quantity to the customers.

 

Examples:

Figure 1 Bank of Kathmandu

  

Figure 2 Nabil Bank

These two Banks follow out the same strategy of Digital Marketing, Social Media Platform to reach the customers, and they are limited into the certain activities only. Nowadays mostly all commercial Banks follow out the same strategy in the name of marketing. Follow same trend nothing new. This is mainly due to:

a)      Lack of creative manpower in the marketing and research department of Banks

b)      Due to the high level of syndicate they are deprived to follow same old routine trend

c)      Nepalese market is limited and the targeted customer are also limited with the aware of financial information’s

To clarify the given statement, let’s understand from the research Paper; an example of How Bangladesh Banking sectors are guided by the marketing activities.

Publisher: Journal of Accounting & Marketing

Article: Marketing of Financial and Banking Products: An Example from Bangladeshi Bank

Author: Mahlab & Abdullah M Lecturer, School of Business Independent University, Bangladesh

In this paper, author discussed on how marketing of bank products has become a very difficult subject as it involves the knowledge of economics, sociology, psychology and also essential marketing idea. Banking sector of Bangladesh is one of the main financial sectors, which have much contribution to the domestic economy. The banking industry includes a number of banks in numerous groups. By the ownership, banks can be categorized in to four major categories such as State-owned Commercial Banks, Specialized Banks, Private Commercial Banks, and Multinational Banks. The commercial banking sector plays a vital role in Bangladesh’s financial industry.

This study shows overall activities that Bank in Bangladesh involved with marketing activities. This paper identifies the main problems of marketing in the Bangladeshi Banking sectors is to identify loyalty, consumer trust, and favorable environment, digitalize operating system, fragmented customer base and industry consolidation and linking all these variables together to analyze the effect it would have on the marketing process of financial products.

Similarly, in this paper author described how marketing of Banking Sectors related with the following aspects and they are inter relationship to understand the customer values:

a)      Loyalty

b)      Industry Consolidation

c)      Consumer Trust

d)      Favorable Environment

e)      Digitalize Operating System

f)       Fragmenting Customer Base

g)      Marketing of Bank Product

My Opinion:

Bangladeshi Banking are far more ahead of utilization of the Marketing resources and functions. They prove out the to show the value of customer. Healthy marketing practices are derived there. This paper shows the study of customer emotions, banking channel, marketing practices and deprived to learn with many aspects and information. They follow out the latest channel or trend to reach the customers. But we won’t able to get the healthy practices of reaching to the customers and put values on it. Although, we are ahead in technology penetration means (access to internet, resources) but our output is not even in the satisfactory level.

Conclusion:

This paper concludes Bangladeshi banks are helping the banking sector with full variety of services. Though Bangladeshi are following a definite traditional marketing plan and they are doing fine. Banks marketing approaches are quite nourishing for clients and it has affirmative effect on their revenue.

My Recommendation:

As per my views, if we also improve our marketing plan of banking product, then bank will be able to gain newer client and that will have left a positive impact on client satisfaction, locality and revenue trend. Our banking sector will do better if we continue with our same marketing strategy, but also for sustainability we have maintain with the decades. Banking sectors have to develop their marketing approach in order to sustain in this competitive world. I also present following recommendation:

a)      We have plenty of young graduate resources whom we can attract and motivated towards Marketing and Data to present new trends in marketing

b)      Bank needs to support each other’s, follow the global and healthy practices for sustainability

c)      Marketing means not only relate with profit, it’s the aspect of adding the value; that must be understood by banks

d)      The success of the banks depends on bankers’ ability to understand and satisfy customers’ needs this must be understood able every bank here in Nepal

American banks became the first to consider their environmental policies, particularly with regard to credit risks, so we should learn such culture of adoption in the banking sector for professionalism