Post on 27-May-2017
CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
1. Awareness of people regarding various types of financial services provided by the
banks
Basis Response Percentage
Fully aware 25 36
Had an idea 35 50No idea 10 14
TOTAL 70 100
TABLE NO. 1.1
36
50
14
awareness of financial services
fully awarehad an ideano idea
FIGURE NO. 1.1
Interpretation
From the above chart we came to know that, overall percentage of service class people
having complete knowledge about different types of services provided by the bank is 36%,
those having some idea about it is 50 % and the percentage of people having no awareness of
various services provided by the bank is 14%.
2. Awareness of various banking services provided by banks
Basis Response Percentage
ATM 20 30
Credit card 15 21
Phone banking 5 7
Mobile banking 5 7
Internet banking 10 14
Retail bank services 15 21
TOTAL 70 100
TABLE NO. 1.2
30
217
7
14
21
awareness of banking services
ATMCredit Cardphone bankingmobile bankinginternet bankingretail bank services
FIGURE NO. 1.2Interpretation
Banks constitute various channels through which services are provided in terms of ATMs,
Debit Card, Credit Card, Phone Banking, Mobile Banking, Internet Banking etc, of which the
first six have been covered. Amongst these ATM scores the largest used service status
(26.03%) as indicated by above figures. Close on the heels is Debit card (17.75%), Credit
card (14.79%), while phone banking lags behind by scoring the least (11.83 %.)
3. Sources from which the respondents you get the knowledge about the innovative
financial services.
Basis Response Percentage
Personal visit 20 29
Executive from bank 10 14
Advertisements 10 14
Friends and relatives 20 29
Others 10 14
Total 70 100
TABLE NO. 1.3
29
14
14
29
14
Sources of knowledge about banking services
Personal visitexecutive from bankadvertisementsfriends and relativesothers
FIGURE NO. 1.3
Interpretation
The above table indicates the percentage distribution of awareness avenues, the major are in
favour of advertisements, which score 34% among different avenues such as personal visit,
executives of the banks, advertisements and friend/relatives. While the least score is for
personal visit and that of other sources.
4. Are you aware of the term “Retail Banking”?
Basis Response Percentage
Yes 45 64
No 25 36Total 70 100
TABLE NO. 1.4
64
36
AWARENESS OF RETAIL BANKING
YESNO
FIGURE 1.4
INTERPRETATION:
Above figure shows how many people are aware of the term “Retail Banking” and the
services provided by Banks. 80% of the people are aware of the term “Retail Banking” and
out of that 60% of the people knows all the services provided by banks where as bar which is
in pink colour indicates that 20% of the people don’t know the service which bank provide
are called “Retail Banking”.
5. Are you aware off all Retail Banking Services provided by Banks?
Basis Response Percentage
Yes 35 50
No 35 50Total 70 100
TABLE NO. 1.5
5050
AWARENESS OF RETAIL BANKING PRODUCTS
YESNO
FIGURE NO. 1.5
6. Which product they use of Retail Banking?
Basis Response Percentage
Bank Deposits 15 22
Loan 25 36
Credit cards 10 14
Debit cards 10 14
Others (Demat services) 10 14
TOTAL 70 100
TABLE NO. 1.6
USE OF WHICH RETAIL BANK PRODUCT
BANK DEPOSITSLOANSCREDIT CARDSDEBIT CARDSOTHERS
FIGURE NO. 1.6
7. Which is the easiest mode of getting services from Banks?
Basis Response Percentage
Personal banking 20 29
Phone banking 5 7
Internet banking 10 14
Retail banking 30 43
other 5 7
Total 70 100
TABLE NO. 1.7
29
7
14
43
7
MEANS OF GETTING SERVICES FROM BANKS
PERSONAL BANKINGPHONE BANKINGINTERNET BANKINGRETAIL BANKINGOTHER
8. Are they satisfied with the service provided by ICICI retail banking services ?
Basis Response Percentage
Yes 55 79
No 15 21Total 70 100
TA BLE NO. 1.8
79
21
SATISFACTION LEVEL WITH RETAIL SERVICES PROVIDED BY ICICI BANK
YESNO
Figure no. 1.8
Interpretation:
This pie diagram shows, how many people are satisfied with the service provided by Banks.
79% of people satisfied with the services provided by Banks whereas 21% of people not
satisfied with the services provided by Banks. Sometimes with the treatment given by bank is
rude and sometimes they are not co-operative so people feel inconvenience with services
provided by banks.
SWOT ANALYSIS OF RETAIL BANKING
STRENGTH:-1) Emerging as a new growth driver:
For several years banks viewed consumer loan with skepticism. Commercial loans
denominated the loan portfolio as they generated high net yield with low credit risk.
Consumer loans on the other hand involved smaller amount, large staff to handle account and
high default rates. Even regulators across the glob have not encouraged retail banking until
now till very recently. However , over past few years, fierce competition among the lowered
the spread and profitability an commercial loan with deregulation and increase in consumer
loan rate, the risk adjusted return in retail sector have exceed the return on consumer loan.
2) Provides diversified asset portfolio:
Retail banking includes comprehensive range of financial product and services i.e. deposit
product, auto loan, car loan, home loan, loan against equity shares, mortgage loan, payment
of bills, debit card, credit card, etc. These product provide an opportunity for banks to
diversify the asset portfolio with higher profit and relatively lower NPA.
3) Improves standard of living:
Due to major economic reforms in Indian economy there has been an increase in per capita
income which has led to change in life style and growing urbanization have made the Indian
population rise from oblivion and resurge in modern era on this front role of retail banking
arises. Retail banking provide all such product and services(home loan, car loan, personal
loan, etc) to its customer which are required by them to maintain change in there life style in
short it helps in fulfilling aspiration of people through affordable credit.
4) CRM tool:
The individual customer is deity of bank in retail banking segment . All product and services
are designed to satisfy need and wants of its customer. As customer in retail banking belong
to different economic, cultural, educational, and social background there demand is also
varied. It is acceptance of the banking product and satisfaction of customer that yield profit in
this segment. Hence customer Service and Quality implementation through use of CRM tools
will help banks Success in this competitive world of retail banking.
5) Innovative product development :
The scope for development in financial services is unlimited. In retail banking ball is in the
court of bankers where they approach the customer finds out there financial need and
problem, designs the product and services, market them and finally sells them to satisfy its
customer.
6) Economies of scale:
Retail banking enables banks to utilize existing capacities and reaching wider population of
customer. Banks can get the benefits of information and transaction. In process of extending
variety of services, banks are acquiring enormous amount of customer information .if this
information is systematically recorded , banks can efficiently utilize this information in order
to explore new segment and to cross sell new services.
WEAKNESS:-1) Avoids corporate sector :
Retail banking avoids corporate sector totally which is the backbone of Indian economy.
Main reason put forth or this is decline in corporate borrowing . However bank can take
certain step to manage there corporate clients such as lower arte credit, higher amount of loan
etc. Managing corporate client is more easier as they have well defined financial policy and
project and they concentrate on product and services offered rather than on CRM of bank
unlike individual clients.
2) Marketing (Internal and External):
Retail banking requires strong marketing strategies to be adopted by bank both internal and
external . under retail banking segment top level management need employees ds to introduce
product properly to its employees because if the employees are not aware regarding the
product they are offering that product will fail however effective the product is also bank
require to spend lot on its marketing of product to general public because if public is not
aware regarding the product and service how will they opt for it . all this increases the cost
and time required to introduce the product in the market which can reduce or make the
product out dated immediately on its arrival.
3) Changes in technology:
Future of retail banking lies in the hand of IT . Various It solution used by banks such as E-
banking, phone banking , ATM leverage the retail banking product and service offered by
banks. But this has weekend the segment some how . if banks are not able to adobt the latest
technology it may pull back the growth of bank also this technology requires lot of capital
investment and if at all the technology fails then it may shake the customers confidence on
bank and bank may land up in loosing its customer.
4) Reduces the profitability:
It is claimed that retail banking increases overall profitability of the bank but in reality this is
not the case because managing wide range of product and service requires high quality
technology , large number of staff and all this requires high capital investment which reduces
banks profitability.
5. Co-ordination among various department:
Success of retail banking is not the result of one department but is result of various
departments together. If there is lack of co-ordination among various department of the bank
then however strong and effective the may be the product it will fail. Suppose if the front
office is successful in attracting the customer but back office is not able to execute the
delivery of product or service on time then bank may land up loosing the customer although
its CRM was effective.
OPPORTUNITIES:-1) Scope for innovation:
Under retail banking as banks try to provide all those product and services which are
desired by its customer this segment has more scope for innovation banks can keep on
modifying its products as per the market demand which helps them from not being out dated .
2) Rise in per capita income:
The rise of the Indian middle class is an important contributory factor in this segment. The
percentage of middle to high-income Indian households is expected to continue rising. The
younger population not only wields increasing purchasing power, but as far as acquiring
personal debt is concerned, they are perhaps more comfortable than previous generations.
Improving consumer purchasing power, coupled with more liberal attitudes toward personal
debt, is contributing to India's retail banking segment.
3) Economic growth:
Retail banking has immense opportunities in a growing economy like India. In the BRIC
Report India is stated as an economic superpower. According to A. T. Kearney, a global
management-consulting firm, recently identified India as the 'second most attractive retail
destination' of 30 emergent markets. Hence retail banking has high opportunities in India.
THREATS:1. Large disbursement of loans:
The boom in the field of retail banking and the intense composition among the to increases
the customer base has resulted in the large disbursement of customer loans, loans on credit
cards, auto loans, educational loans etc. on easy terms without much scrutiny this has brought
with in an increase in the number of cases of default in loan repayment thus increasing the
bank’s NPAs.
2. Issue of customers dignity:
Banks have been adopting carrot and stick policy by renegotiating loan terms where the
default is genuine and handing over recovery to third parties where default is willful. Most of
the time, the third parties or external agents are not trained to handle the loan repayment
process. Hence, they restore to strong arms tactics with defaulting customers. Many cases of
harassment and invasion of privacy have been reported by the affected parties. Such instances
may hamper the image and corporate vision of the bank in near future.
3) Issue of customer privacy:
Customer privacy is also affected in another way wherein customer service representatives
of the banks ring up customers at any times at their places of work, informing them about
new products and services. This may cause inconvenience to busy customers. It is also
obligation on part of the banks not to share the private information from the records of the
customers with outside agencies like market research groups and other advertisers.
4) IT:
The growth of IT has brought with it a number of frauds perpetrated with the help of
technology and which come under under the domain of cyber crimes. Banks are the victims
of unscrupulous elements who have in many instance hacked banks website and stolen credit
card number , pass word and other confidential information relating to customer.