customer service is the service provided in support of a bank

7/30/2019 Customer Service is the Service Provided in Support of a Bank

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Customer service is the service provided in support of a

banks core products. Customer service often includes

answering questions; handling complaints. Customer

service can occur on site (as when an onstage employeehelps a customer or answers a question) or it can occur

over the phone or the Internet. Quality customer service is

essential to building cordial customer relationship.

Banking being a service industry, a lot depends on

efficient and prompt customer service. Customer service is

the most important duty of the banking operations. Prompt

and efficient service with smile will develop good publicrelations reduce complaints and increase business.

Why is Customer Service Important?

Changing customer expectations: Today the customer is

more demanding and more sophisticated than he or she

was thirty years ago.

The increased importance of customer service: With

changing customer expectations, competitors are seeing

customer service as a competitive weapon with which

they differentiate their products and services.

The need for a relationship strategy: To ensure that a

customer service strategy that will create a value

preposition for customers should be formulated

implemented and controlled. It is necessary to give it a

central role and not one that is subsumed in the various

elements of the marketing mix.

The customer is the kingpim in growth organizations like

commercial banks. Only those institutions which workaccording to his dictates will flourish. Quality, Consistency


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and Durability at low price are the final expectations of a

customer. Quality will have to be unambiguous, of world

class quality. Quality cannot be of minimum acceptable

standards. Customer responsiveness must be quick andalso competent. Speed, performance and cost will be the

new values mantra for success.

The ten key areas of customers services to be attended

timely and regularly are:

1. Submission of statement of A/Cs to customers

2. Updating of savings pass books.3. Teller system efficiency.

4. Cleanliness and Upkeep of premises.

5. Intermediate Credit for institution cheques/land bills.

6. Advance intimation to customers for rewards of Term

Deposits Receipts on maturity.

7. Advance for Debit/credit to accounts.

8. Punctuality of staff.

9. Handling of complaint register.

10. Maintain a complaint register.

Customers dissatisfaction in the banking industry is

neither recent nor unknown. This is mainly due to delays in

handling transactions across the counter in collections,update of passbooks supply of statements of accounts,

etc.

Failure to provide prompt and efficient customer service is

likely to lead to reduction in the number of customers and

they may have to face closure. To event such situation the

following improvements in the customer services may be

carried out:


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1. Personal relations of the bank employee with customers

will improve customer satisfaction. 1 service with smile

should be the motto of every bank employee.2. Rapid customer services should be provided through

automation of work and simplification of procedures.

3. ATMs may be introduced in all the branches of the banks,

based upon the volume of transactions. This shall

facilitate non-stop banking.

4. Credit Cards Services, Debit Card Services, which should

be provided to the customers, must a link service with all

the banks and branches if possible to facilitate the

customer and the business organizations.

5. E-mail service made freely available at all banking centers.

6. Foreign Exchange transactions are to be extended to allthe branches to facilitate trade and industries.

7. All the customers are not homogenous in their needs.

Hence need based schemes may be introduced.

8. Totally deregulated interest rate structure should be there.

9. The banking staff must be trained to understand the

customers psychology, so they may provide customer

service in a qualified manner.

10. Educating the customers will increases better

utilisation of banking services.


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A bank cannot survive without performing the following non-

banking activities:
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1. Banks help their customers to make utility payments withease.

2. They perform merchant banking for their customers.3. They provide factoring services to their clients.4. They manage mutual funds and minimize investment

risks.5. They issue gift cheques to the people.6. They conduct feasibility study and submit the feasibility

report.7. They facilitate the share transactions by maintaining

demat accounts.8. They offer credit and debit cards facility.

9. They also offer leasing services.10. They give hire-purchase services to owners of

various goods11. They are now allowed to offer insurance services.12. They provide funds (capital) for starting new ventures

.

Now let's discuss important non-banking activities performed bybanks.

1. Utility Payments

Banks make utility payments for their customers. Utility payments

include payment of an Electricity bill, Insurance premiums, phone

bill, water bill, etc. They also pay SIP (Systmatic Investment Plan)

payments to Mutual funds for their customers. These payments are

made by using the Electronic Clearance Scheme (ECS). Banks charge

a small (nominal) fee for making these payments.

2. Merchant Banking

Large banks performmerchant banking for their customers. They

help them to raisefinance. They give them advice about starting and

running abusiness. They help their customers to make a profit in

thestock exchange. They even do projectmanagement. They alsohelp in expanding and modernizing the business of their clients.
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Today, banks help to revive (cure) sick industries. They also help in

restructuring the business.

3. Factoring Services

Banks also provide factoring services to their clients. Factoring is an

agreement between a bank (factor) and a business firm (client). Under

this agreement, the business firm sells goods and services to their

customers on credit. The bank (factor) purchases the customers' Bills

Receivable or debtors account from the business firm. So, the

business firm is guaranteed payment for their credit sales. However,

the bank (factor) decides whom to give credit and how much credit to

give.

4. Mutual Funds

Mutual funds are very popular because of expansion and

diversification of the financial sector. The Unit Trust of India (UTI)

was the first financial institution to start mutual funds in India. Many

other banks now have mutual funds such as ICICI Mutual Fund, SBI

Mutual Fund, HDFC Mutual Fund, etc. Mutual Funds are controlled

by SEBI. Mutual Funds are purchased by investors because they offerminimum risk, maximum return and liquidity. Mutual funds with their

resources and expertise invest on behalf of individual investors giving

them capital appreciation with minimum risk. Mutual funds publish

the NAV (Net Asset Value) of their funds daily. They also repurchase

the units issued by them based on their NAV. Investors who like to

play safe go for mutual funds.

5. Gift Cheques

Giftcheques are printed in attractive colours and designs. Gift

cheques are issued by banks to the public. They can give these

cheques as a present on auspicious occasions like marriage, birthdays,

retirements, promotion, anniversary, etc. They are normally issued for

Rs. 11, 21, 51 and 101. The purchaser makes full payment at the time

of purchase. Gift cheques are transferable by hand delivery. These

cheques have an expiry date. If a gift cheque is lost, a duplicate is
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issued. These cheques are payable on demand. The payee can claim

themoney at any branch of the issuing bank.

6. Feasibility Reports

Banks conduct feasibility study on behalf of the client and submit the

feasibility report. This report shows chances of success of the project.

Feasibility study is conducted before starting the project or business.

Conducting feasibility study is not compulsory, but it gives many

benefits to the businessman. Banks like IDBI or any commercial bank

can conduct feasibility study in functional areas such as technical,

managerial, financial and economic. After completion of feasibility

study, the banks submit a feasibility report. Based on this report thebusinessman decides whether to do the project / business or not.

7. Demat Account

Demat is a commonly used name for dematerialization. Traditionally,

shares were held in a physical form. Under dematerialization, shares

are held in an electronic form. Demat account is like money kept in a

savings account. You can deposit and withdraw the amount whenever

you want. The transactions in electronic shares are quick, safe andsimple. The shares purchased by a shareholder are transferred in his

name on the next day of payout. A shareholder can sell and transfer

his electronic shares from his office / house through a broker. Most of

the shares are under demat. Banks facilitate the share transactions by

maintaining demat accounts in their branch.

8. Credit and Debit Cards

Most large banks offer credit card facilities. Indian credit card market

is growing at 30-35% per annum. ICICI, Citi, HDFC and SBI are the

leading banks that offercredit card facilities. Most of the banks also

offer debit cards to their customers. With the help of debit cards, the

customers can make payments for the goods and services. This

amount gets deducted from the balance they hold with the banks.
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9. Leasing Services

Indian banks offer leasing services. In March 1994, RBI permitted

banks to enter leasing finance provided following conditions are

fulfilled:

1.Specialized branches must be opened for doing this work.2.Banks may give lease finance up to 10% of their total advances.3.Assets in leasing will be treated as assets carrying 100% risk

weightage.

10. Hire Purchase

Banks provide hire-purchase services. They finance hire-purchase

contracts. Here, the owner of goods hires them to another party for a

certain period and for the payment of a specific installment. The

transfer of goods is passed on to the user after a definite period

provided payment of all specified installments is clear.

11. Insurance

Banks are now allowed to offer insurance services through separatebranches. Many Indian banks such as ICICI, IDBI, HDFC, etc., have

entered into foreign collaborations to provide life insurance service in

India. ICICI has joined Prudential Life, HDFC with Standard Life,

IDBI with Fortis (now Federal) to provide life insurance services to

Indians.

12. Venture Capital Services

Banks like ICICI, SBI, IDBI provides venturecapital services. Here,banks provide funds for starting new ventures and for high-risk

businesses with high-profit potential. Venture capital helps

businessmen to get funds for highly risky projects. Venture capital

means to buy shares in high-risk projects / businesses with high-profit

potential.

For e.g-ICICI bank has a customer service charter and all sort of

things like netbanking phonebanking , privilege desk etc. It is decent
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if u are a relationship or privileged client. But the fact still remails, for

the aam customer, their customer service still Sucks bigtime.

ATM : An ICICI ATM is never empty, there is always a line of

customers waiting to be serviced. Some even thieves so bewareto take ur belongings including the atm card and press clear/

cancel and check the screen before u exit.

Phonebanking : If you want to listen to a voice other than anivr, expect waiting atleast 8 minutes at 10.30 at nite, more

during the day . If u have verified ur account thru the ivr expect

the person to verify you again and again with wierd queries like

what were your last three transactions and what is ur debit cards

last 4 digits, then put u back on the ivr if u dont have uratm/debit card handy , then wait for another person for another

5 to 8 minutes. If your wait time is less than a minute you will

feel a sense of immense accomplishment that no words can

describe.One more accomplishment is if one manages to

desensitize oneself off the sick jhin chako jhin icici song and

the loads of adds that one has to hear while waiting.Cheat the

system by using the nri number or wealth management no.

Netbanking is the best service offered by the bank, that is if umanage to get it to work. Remember ur atm/debit card no is ur

login, not ur cust id.Pray that the branch doesnt bungle up, and

the courier manages to mail you ur password, else ask for a

branch collect as i had to do after 2 attempts.

Branch Banking: Find a good branch to bank with , somebranches are pathetic at service. Be meticulous at record

keeping and escalate complaints with the BM if the bum in

the blue salwar has messed up ur mundane task.Customer service/ Email: Please dont shy from escalating ur

complaint to a higher up as soon as possible. Dont waste your

time with low level customer officers, they most often than not

dont know their job. That said , rethink your decision of

opening an account with ICICI bank In the first place.


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BIBLIOGRAPHY:

www.google.com

www.wikipedia.com

ROLL

NUMBER-

272
http://www.google.com/http://www.google.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.wikipedia.com/http://www.google.com/


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JOSHI BEDEKAR COLLEGE

NAME : SUPRIYA RAMCHANDRA PHADTARE

SUBJECT: ECONOMICS

CLASS & DIVISION: T.Y.BCOM/C

ASSIGNMENT NO. : 1

ASSIGNMENT TOPIC : PERFORMANCE OF

BANK CUSTOMER SERVICES

PROFESSOR: JANGALE SIR


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ACKNOWLEDGMENT

My deepest thanks to lecture , prof.

PRAKASH JANGLE sir the guide of the projectfor guiding and correcting various doccuments of

mine with attention and care. He has taken pain

to go through the project and make necessary

correction as and when needed.I exess my thnks to the principal of

univercity of mumbai for extending his support.

i would also thank my institution and my

faculty member without whom this project havebeen distant reality.

customer service is the service provided in support of a bank

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