Role of Service Marketing in the Growth of Banking Sector in India

Due to Global Financial Crisis of 2008, the scenario of financial markets has changed dramatically. It appears that everybody is looking at his bottom line when it comes to banking and financial services. They want to utilize their scare resources in the best possible way to protect them and their hard earned money. Financial Institutions are entering in the new business areas due to many mergers and acquisitions taking place in this sector. They are offering more diverse services now in a bid to retain the existing customers. The business organizations are looking at ways and means to streamline their business and to cut down the processing charges. On the other hand customers are looking online access to avail faster and more efficient ways of doing business.The Commercial Banks in India are the highly trusted organizations for customers. They have very successfully adopted many changes in their functioning. Now, there is a high degree of competition among the banks, especially after globalization and entry of more Private and Foreign banks. But the banks will have to adopt a full-fledged marketing strategy to ensure customer satisfaction for its survival and growth. Marketing scope prevailing in banking sector is being considered under the service marketing framework in this new business approach. The transition from one phase to another has largely been influenced by the dynamics of three critical factors – the players, the playing fields and the regulator.This paper examines and measures the quality of services provided by the Commercial Banks in India. Now the expectation of the customers is very high and the commercial banks in India will also have to adopt the service marketing concepts in their day to day working for their survival and growth