Service Quality in the Retail Banking Sector A Study of Selected Public and New Indian Private Sector Banks in India An Empirical Study of Malwa Region

Abstract

Retail banking deals with lending money to customers which include a wide variety of loans, including credit cards, mortgage loans and auto loans. Retail banking refers to banking in which banking institution execute transaction directly with consumers, rather than corporations or other entities. It is generally conceived to be the provision of mass market banking services to private individuals. It has expanded over the years to include in many cases services provided to small and medium sized business. newlineRetail banking is the fastest growing sector of the banking industry with the key success by attending directly the needs of the end customers. It holds a glorious future in coming years. Retail banking sector as a whole is facing a lot of competition ever since financial sector reforms were started in the country. Walk in business is a thing of past and banks are now on their toes to capture business. Banks therefore, are now competing for increasing their retail business. There is a need for constant innovation in retail banking. This requires product development and differentiation, micro planning, marketing, product pricing, customization, technological up gradation, home/electronic/mobile banking, and effective risk management and asset liability management techniques. While retail banking offers phenomenal opportunities for growth, the challenges are equally discouraging. How far the retail banking is able to lead growth of banking industry in future would depend upon the capacity building of banks to meet the challenges and make use of opportunities profitably. newlineHowever, the kind of technological used and the efficiently of operations would provide the much needed competitive edge of success in retail banking business. Furthermore, in all these customers interest is of chief importance. The banking sector is continuously rising to succeed in this credit path. Today retail banking sector is marked by high customer expectations and technology innovations. Technology is playing a crucial role in the day today.