Factors of Customer Loyalty in Banking Industry

One of the main issues that customers faced when visiting a branch, was the unavailability of their service provider. Managers wanted to close this gap in service design by providing individualized services to their customers to understand their needs and build interpersonal relationships with them. The best way to achieve that was by assigning an account team to each customer. The team consisted of bankers who worked closely with the customer to figure out their needs and offer them solutions. This initiative have also managed to close the listening gap-1 which increased the customers’ satisfaction level.

Frits Seegers, President of Citibank California, is convinced that “in a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy”1. Fulfilling customers’ expectations is a critical issue for the long term business sustainability and profitability. This realization is what underlies the decision of the top management to develop and complete the former Citibank’s performance evaluation system mainly based on financial measures. In 1996, a new Performance

The financial sector is confronted with a high rate of competition. Getting new customers, increase turnover, integrating with new and existing information technology changes can be some of the challenges that the financial sector face. A banking institution will not be left out of the contest to become the highest performing unit in the sector. Wells Fargo’s cross-selling culture helps them gain many new customers by opening multiple bank accounts for new and existing customers. Also by opening accounts for non-existing names. These actions attracted the attention of the mass media. According to Emily Glazer (2016), a frequent contributor to the Wall Street Journal, “for more than 15 years, selling more products to customers has been a

Commerce Bank leadership built their bank around the philosophy of creating a retail experience for every customer. While other banks were competing on price, Commerce recognized that their prices were not the cheapest in the industry so they had to differentiate themselves in a different manner. The organization’s founder, Vernon Hill, really sought out to understand what factors affected customers leaving their bank and what key reasons lead to their dissatisfaction. He used that information over the years to create a successful service model that would ultimately set Commerce Bank apart from other banks.

The business model for retail financial institutions has evolved in the past and will continue to in the future. The driving forces have changed from the past like banks were looking to maximize profitability, now customer is the center of all the driving forces. In the future, technology will play a key role in evolving the business model for retail financial institutions.

One of the important advantages of “retailtainment” is that the customer is willing to spend more time in the banks premises and is not too much concerned about the waiting time. Commerce Bank envisaged a multitude of benefits emerging from this kind of customer experience. This meant that such experience will lead to:

Factors Affecting Customer Loyalty on Banking Service: A case of Hong Kong Shanghai Bank Commercial in Ho Chi Minh City, Vietnam

Banks that compete in a space which already has intense competition can suffer because of limited strategies of matching and beating competitors. The solution for this problem is to look for a new market space and thereby make the competition irrelevant. In order to get this bypass the challenge is to introduce new dimensions into the market segmentation, positioning and targeting equation that other competitors cannot immediately match. In their eagerness to please customers, banks sometimes lose focus of their definition of service is.

By providing credit to differ cluster of the society, farmers, industries, traders, housing, Education loan and small businessmen the economic progress can be achieved. The banking Industry can control and maintain economic development by utilizing resources in the direction of national objectives and priorities.

Commercial banks have played a vital role in giving direction to economic development by catering the financial requirement of trade and industry in the country. By encouraging thrift among the people, commercial banks have fastened the process of capital formation. Banks draw the community savings into the organized sector which can then be allotted among the different economic activities according to the priorities laid down by planning authorities in the country. ‘The banks are not only the safe deposit vaults for these savings, but taking the banking system as a whole, they also create deposits in the process of their lending operations. However, the important function of a banker is the

For a bank to have the highest market share among other banks rendering identical services, there is a need for such bank to combine and blend the main factors (bank objectives, banks environmental (or non controllable) variables, the controllable (or management) variables, and bank’s organization and control variables) together into an overall strategy the customers.

the other hand, is either a merchant, or a trader, or a member of the

This project deals with the ‘service quality’ and ‘customer satisfaction’ of ONE BANK LTD. Data has been collected on the basis of the questionnaire and a survey was conducted. Then the results of this survey are analyzed to identify

The importance of a bank to modern economy, so as to enable them to develop, can be stated as follow:

Banks over the year play an significant role in development of Indian economy. After liberalization, the financial depression, the position of banks have become all the more important in the course of working of the money market and hence the economy of a nation.. The economic reforms totally have changed the