Primary Differences In The Marketing Strategies For Retail Lending And Corporate Finance38
Latest Trends In Banking Industry Marketing40
Development In Marketing Scope At The Aspect Of Service Marketing53
Conclusion57
References59
Abstract
Radical developments in marketing and communications technology persist to renovate the banking and financial industry. The objectives of this research are mostly to scrutinize
banking industry and the marketing of its high end services and products in the last decade and what problems they might face in the future. This research essay also looks at the issues facing the banking industry in today's world. I also the marketing methods used in the 1990's. and compares how the market might change in the future.
Banking Industry And Marketing
Introduction
The banking industry has changed dramatically over a relatively short period, from being a virtual cartel to a highly competitive market. Financial deregulation and increasing globalization have brought new competition to domestic banking, and allowed considerable diversification by banks, insurance companies and co-operatives. Information technology has provided many opportunities for creating new financial products and distribution methods, for example Automatic Teller Machines, Telephone Banking and Computer Banking, and reduced the need for investment in conventional branch infrastructure.
Issues Facing The Banking Industry
The banking industry is undergoing a major transformation due to changes in economic condition and continuous deregulation. There is a fundamental problem facing all the participants in the banking industry. The product they sell, money, is totally fungible. In the world of modern communications it is possible to deposit funds in currency A and instantly convert it to currency B. It makes no real difference what the customer or the bank does the nature of money does not change. The client cannot tell a dollar from bank A from a dollar from bank B. Indeed he has little real interest in if he receives dollars, Sterling, Euros, or Swiss Francs or virtually any other currency in the world. For a very modest cost they can be converted into any other form of money the client desires. There is absolutely no way in which a bank can differentiate its basic product, money.
If the product cannot be differentiated then it must be possible to differentiate the service provided to the client in the handling, storage and investment of this most precious of commodities. If fact, in a given national market there is virtually nothing any major bank can do that its competitors cannot match very quickly. There is also very little point in beginning a price war because again, the major banks are so nearly matched that any pricing initiative can be met by competition. The cost of trying to "buy business" in this manner is simply too ...