Behavior analysis of a consumer towards choosing a bank

-:By:-“WHIMSIC GROUP”

Rahul Jogi Ram Upadhyay Rajkishan Vinchhi Praveen Deora Prakash Dadawat

04/10/2023IIPM, Ahmedabad 2

Flow of Presentation Banking & the origin of banks in India

Banking structure in India

Indian Banking Industry

Consumer behavior & decision parameters

Growth drivers

Research Methodology

Findings of the study

Conclusion

Recommendations

04/10/2023IIPM, Ahmedabad 3

Banking means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise." -Banking Companies (Regulation) Act,1949

Banking & the origin of banks in India

Originated during the rule of East India Company

The General Bank of India, 1786

Swadeshi movement - Punjab National Bank, Bank of India, Bank of Baroda, Canara Bank, and so on were the

pioneers.

Phase I, II & III

04/10/2023IIPM, Ahmedabad 4

Banking Structure in India

Source: Trend & Progress Report of Banking in India, 2005-06, RBI

04/10/2023IIPM, Ahmedabad 5

The Reserve Bank of India Established in the year 1935 under the RBI Act, 1934 Nationalized in the year 1949

Preamble:

"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.“

Current Focus:

Supervision of financial institutions Consolidated accounting Legal issues in bank frauds Divergence in assessments of non-performing assets and Supervisory rating model for banks. 

04/10/2023IIPM, Ahmedabad 6

Indian Banking Industry Growing at a rapid pace

Banking assets to reach US $1 trillion during 2010

Customer centric approach adopted

Source: www.tradingeconomics.com

04/10/2023IIPM, Ahmedabad 7

Consumer behavior and decision parameters

Consumer behavior:

Consumer behavior is the study of when, why, how, and where people do or do not buy a product/service.

It blends the elements of Psychology,

Sociology &Economics.

04/10/2023IIPM, Ahmedabad 8

Decision Parameters:

What is needed?

What will you do now?

How will you do it?

Is the decision worthy enough?

04/10/2023IIPM, Ahmedabad 9

Porter’s 5 force Model

04/10/2023IIPM, Ahmedabad 10

Growth Drivers

Demand Based Supply Based

Sustained economic liberalizationHeavy infrastructure investment

Growing middle classCultural deposition more attuned to banks

Increase in banking services

Banks transformed into advisory institutions

Extreme involvement of consumer in decision making.

04/10/2023IIPM, Ahmedabad 11

Research Methodology Research Objectives:

To understand the behavior of consumers while selecting a bank.

Data Sources:

a) Primary data – Questionnairesb) Secondary data – Journals, brochures of banks,

internet and books.

Sample Design:

Area covered - Ahmedabad & Baroda.Time frame - 15 daysSample size - 100

04/10/2023IIPM, Ahmedabad 12

Findings of the studyDecision aspects for selecting a bank: (Based on questionnaire)

Rate of interest

Convenience

Easy loans

Free checking options

Online payment easy

ATM gives deposit facility

Overdraft protection plan

Small business loans

One-stop-shop

04/10/2023IIPM, Ahmedabad 13

Occupation

ServiceSelf EmployedBusinessRetired

Data Analysis (Based on Questionnaires):

04/10/2023IIPM, Ahmedabad 14

Income

2 to 3 lacs3 to 5 lacs5 to 7 lacs7 to 10 lacsAbove 10 lacs

04/10/2023IIPM, Ahmedabad 15

First preference from a bank

Apt ServicesPrompt AdviceEasy Negoti-ationsMultiple choices

04/10/2023IIPM, Ahmedabad 16

Ambi

ence

Empl

oyee

etiq

uettes

Secu

rity

Attra

ctiv

e off

ers

01530

First thing what strikes while selecting a bank

First thing what strikes while selecting a bank

04/10/2023IIPM, Ahmedabad 17

Frequency of using ATM cards

FrequentlyWeeklyMonthlyNever

04/10/2023IIPM, Ahmedabad 18

Frequency of Using Internet banking

FrequentlyMonthlyYearlyNever

04/10/2023IIPM, Ahmedabad 19

Which thing motivates them to select a particular bank?

BrandServiceRelationshipOther

04/10/2023IIPM, Ahmedabad 20

Major influencers in the de-cision making process

FamilyFriendsColleaguesAdvertisements

04/10/2023IIPM, Ahmedabad 21

Impact of calls for promotion of bank and its schemes on the

decision of customer

YesNo

04/10/2023IIPM, Ahmedabad 22

Suggestions for improvement by respondents

SecurityQuick ServicesSchemesAdvertisements

04/10/2023IIPM, Ahmedabad 23

SWOT Analysis:

Money power Brand image Service quality Large network branches Excellent communication skills with the Executives.

High targets to executives High expenses on advertisements Complicated plans Many competitors

Huge market is untapped Young Population Increasing awareness level Strong distribution network

Increase in competition Saturation of urban market Product differentiation is difficult Increase in tax liabilities

04/10/2023IIPM, Ahmedabad 24

Conclusion

No major differentiating factor

Decision factors were based on ROI, Convenience & range of operations.

Customer desired a Human Interface based system

More reliability expected

Demand of improved Security system

RBI is working efficiently

04/10/2023IIPM, Ahmedabad 25

Recommendations:

Involvement of more attractive offers in the brochures. Educate the consumers with latest offerings. Guide consumers with the schemes. Quick and prominent response to queries. Tap the full potential market on both urban as well as rural level. Improvements as per the change in the Government policies. Treat each consumer equally. Assure security for their investments. Target the influencers for getting more business.

04/10/2023IIPM, Ahmedabad 26

THANK YOU