“A study of Innovation in advertisement – creating Blue Ocean

Strategy with respect to banking products and services.”

A Project Submitted to

University of Mumbai for partial completion of degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

Student Name: NISHA WALAWALKAR

Class: TYB.A.F

Roll No.: 145

Under the guidance of

Dr. Sudha Subramaniam

M.L. DAHANUKAR COLLEGE OF COMMERCE

DIXIT ROAD, VILE PARLE (EAST)

MUMBAI – 400057

March 2018 - 2019

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 Certificate by College (i)

This is to certify that Ms. Nisha Walawalkar has worked and duly completed her
Project Work for the degree of Bachelor in Commerce (Accounting & Finance) under
the Faculty of Commerce in the subject of Accounting & Finance, and her project is
entitled, “A study of Innovation in advertising creating Blue Ocean Strategy with
respect to banking products and services” under my supervision.

I further certify that the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is his/her own work and facts reported by his/her personal findings and investigations.

__________________ ____ ___________________

Prof. Anita Rai Incharge Principal - Dr. D.M. Doke
Course Coordinator M. L. Dahanukar College of
Commerce

COLLEGE SEAL

____________________
Dr. Sudha Subramaniam External Examiner
Project Guide

Date of submission:

2
 Declaration by student (ii)

I, the undersigned Ms. Nisha Walawalkar hereby, declare that the work embodied in
this project work titled “A study of Innovation in advertising creating Blue Ocean
Strategy with respect to banking products and services”, forms my own
contribution to the research work carried out under the guidance of Dr. Sudha
Subramaniam is a result of my own research work and has not been previously
submitted to any other University for any other Degree/Diploma to this or any other
University.

Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.

I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

_____________________

(Signature of Student)

Nisha Sameer Walawalkar

Roll no:-145

M.L .Dahanukar College of commerce

Dixit Road, Vile Parle (E),

Mumbai - 400 057

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 Acknowledgement (iii)

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to
do this project.

I would like to thank my In-charge Principal - Dr. D.M. Doke for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Anita, for her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide Dr.Sudha
Subramanium whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project

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 Index (iv-v)

Sr. No. Particulars Page

No.
1 Chapter 1 Introduction 1 – 30

1.1 Innovation 1

1.2 Advertisement 1–2

1.2.1 Advertisement in banking sector 2–3

1.2.2 Need for bank advertisement 3

1.3 Blue Ocean Strategy 3–5

1.4 Digital transformation in banking sector 6–7

1.4.1 Various forms of Technological innovations 7 - 10

(Digital channels) by banks

1.4.2 Digitizing lending – Blue Ocean in banking sector 11 - 12

1.5 Five innovative trends in future that will define 12 – 19

Banking sector

1.6 Innovative advertising 20 – 30

2 Chapter 2 Research Methodology 31 – 35

2.1 Introduction 31

2.2 Objectives 32

2.3 Hypothesis 32

2.4 Research Methodology 32

2.4.1 Area of research 32

2.4.2 Method of sampling 32 – 33

2.4.3 Sample size 33

2.4.4 Methods of Data collection 33

2.4.5 Method of Primary Data collection 33 – 34

2.4.6 Data analysis tools 34

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 2.4.7 Importance of study 34 – 35

2.4.8 Limitations of study 35

3 Review of Literature 36 – 55

4 Data interpretation and analysis 56 – 72

5 Findings and Conclusion 73 – 77

6 Suggestions 78

7 Bibliography 79 – 81

8 Annexure 82 – 85

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 List of Tables (vi)

Sr. No. Particulars Page

No.
1 Gender 56

2 Age 57

3 Occupation 58

4 Average Monthly Income (INR) 59

5 Which is your Primary bank? 60

6 How long have you been with your bank? 61

7 Did advertisement play an important role in selecting 62

your bank?

8 In how many banks do you have an account 63

9 What is the convenient way of banking? 64

10 How of the do you use these services of your bank per 65

month?

11 What do you like about bank advertisement? 67

12 What types of advertisement are influential on you 68

buying behavior?

13 Which channels do you use to handle the following 69

activities?

14 Would you go for net banking if following services were 71

offered?

15 Are you satisfied with the innovative services and 72

products offered by your bank?

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 List of Graphs (vii)

Sr. No. Particulars Page

No.
1 Gender 56

2 Age 57

3 Occupation 58

4 Average Monthly Income (INR) 59

5 How long have you been with your bank? 61

6 Did advertisement play an important role in selecting 62

your bank?

7 In how many banks do you have an account 63

8 What is the convenient way of banking? 64

9 How of the do you use these services of your bank per 65

month?

10 What do you like about bank advertisement? 67

11 What types of advertisement are influential on you 68

buying behavior?

12 Which channels do you use to handle the following 70

activities?

13 Would you go for net banking if following services were 71

offered?

14 Are you satisfied with the innovative services and 72

products offered by your bank?

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 Chapter 1
Introduction

1.1 Innovation

“Innovation is the introduction of new ideas, methods or things.”

Today, digital technologies are evolving at an unprecedented rate all across the
globe. India, too is witnessing radical growth in Information and Communication
Technology at a very rapid pace. As a result Indian banking sector is undergoing
huge transformation to offer better and enhanced services to its customers. Indian
banks are going through a vital transformation from all verticals. Slight and not –
so – slight makeovers in banking products are vigorously transforming the face of
banking. The focus is shifting form Mass Banking to Class Banking with
introduction of value added and customized products. Technology now allows
banks to create what looks like a branch in a business building’s foyer without
having to hire manpower for manual operations.

Continuous innovation in ICT in the banking domain has made virtual banking a
reality in India. Establishment of Innovations labs is facilitating the banks to
explore various avenues in banking areas like Biometrics, Artificial Intelligence,
Data Analytics, Wearable technology etc. Digital wallets have already paved the
way for cashless transactions. As the nation welcomes innovation in ICT, banks
need to equip themselves with the required infrastructure. As significant
proportion of educated urban youth in the nation accepts and adopts virtual
banking, banks need to take efforts to reach out to uneducated rural poor too. As
the nation witnesses promising ICT trends in next generation banking, banks also
need to prepare a blueprint to overcome the challenges posed.

1.2 Advertisement

“Advertisement is a notice or announcement in a public medium promoting a

product, service, or event or publicizing a job vacancy.”

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Advertising is communicated through various mass media, including traditional media
such as:

 Newspapers
 Magazines
 Television
 Radio
 Outdoor Advertising
 Direct Mail

And new media such as:

 Search Results
 Blogs
 Social Media
 Websites
 Text Messages.

Commercial ads often seek to generate increased consumption of their products or

services through branding which associates a product name or image with certain
qualities in the minds of consumers.

1.2.1 Advertisement in banking sector

Banking industry is one of the most important service industries which touch the lives
of millions of people. Its service is unique both in social and economic points of view
of a nation. Advertising in banking sector is defined as aggregate of function directed
at providing service to satisfy customer’s financial needs and wants, more effectively
than the competition keeping in view the organizational objective of the banks. The
bank marketing has become a very complex yet interesting subject as it requires the
knowledge of economics, sociology, psychology, banking and also core marketing
concept. In marketing, it is the customer who has the upper hand. The mantra of
effective marketing bank products lies in the systematic and professional approach
towards satisfying customer’s needs. Thus, banks have to set up Research and
Marketing Intelligence wings so as to remain innovative to ensure customer
satisfaction and to keep abreast of market development.

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1.2.2 Need for bank advertisement

Awareness among customers: Modern technology has made customers aware of the
developments in the economic environment, which includes the financial system.
Financial needs of customers have grown multi fold into various forms like quick cash
accessibility, money transfer, asset security, increased return on surplus funds,
financial advice, deferred payments etc.

 Quality as a key factor: with the opening up of the economy, fast change has
been experienced in every activity, and banking has been no exemption.
Quality is the watch word in the competitive world, which is market driven
and banks have had to face up to this emerging scenario. In fact it may not be
out of place to reiterate that quality in future will be the sole determinant of
successful banking ventures and marketing has to focus on this most crucial
need of hour.
 Growing competition: increased competition is being faced by banking
industry from within the system with other agencies both, local and foreign,
offering value added services. Competition is no more confined to resource
mobilization but also to lending and other areas of banking activity. The
foreign commercial bank with their superior technology, speed in operations
and imaginative positioning of their services has also provided the necessary
impetus to the Indian banks to innovate and compete in the market place.
 Technology advances: Technological innovations has resulted in financial
product development especially in the international and investment banking
areas. The western experience has demonstrated that technology has not only
made execution of work faster but has also resulted in greater availability of
manpower for customer contact.

1.3 Blue Ocean Strategy

“Blue ocean strategy generally refers to the creation by a company of a new

uncontested market space that makes competitors irrelevant and that creates
new consumer value often while decreasing costs."

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As the products and services of banks increasingly become commodities in
overcrowded industries, profitable growth shrinks and banks are driven to compete
primarily on cost. Banks in India today are competing in the global market place
where cost arbitration alone is not sufficient to differentiate and sustain the business.
It is time for banks to look into value innovation – the cornerstone of Blue Ocean
Strategy. Blue ocean strategy is critical in today’s business climate because prospects
in most established market spaces – red oceans – are shrinking steadily.

Blue oceans is the unknown market space, untainted by competition. In blue oceans,
demand is created rather than fought over. There is ample opportunity for growth that
is both profitable and rapid. In blue oceans, competition is irrelevant because the rules
of the game are waiting to be set. It is an analogy to describe the wider, deeper
potential of market space that is not yet explored. It is a vast, deep and powerful in
terms of profitable growth.

Figure 1: Red Ocean vs Blue Ocean

Red Ocean Strategy Blue Ocean Strategy

Focus on current customers
 Compete in existing markets
 Beat the competition
 Exploit existing demand
 Make the value-cost trade-off
 Align the whole new system of a
firm’s activities with its strategic
choice of differentiation OR low
cost
Focus on new customer
 Create uncontested markets to
serve
 Make the competition irrelevant
 Create and capture new demand
 Break the value-cost trade-off
 Align the whole system of firm’s
activities in pursuit of
differentiation AND low cost

Strategic move is the right unit of analysis for explaining the creation of blue oceans
and the root of profitable growth. Strategic moves are a set of managerial actions and
decisions involved in making a major - market creating business offering.

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Figure 2: Principles of Blue ocean strategy

Core/Formulation principles Formulation Risks

Reconstruct Market Boundaries Search risk

Focus on the big picture, not the Planning risk

numbers

Reach beyond existing demand Scale risk

Get the strategic sequence right Business model risk

Execution Principles Execution risks

Overcome key organizational hurdles Organizational risk

Built execution into strategy Management risk

While blue ocean strategies create new market spaces and change industry dynamics,
they are not necessarily initiated by new entrants to an industry. Blue oceans are
created by both incumbents and new entrants. Start-ups do not have natural
advantages over established companies in creating new market spaces. Large R&D
budgets are not the key to creating new market space either. The key is making the
right strategic moves. A bank that understands what drive good strategic moves will
be best positioned to create multiple blue oceans over time, thereby continuing to
deliver high growth and sustained profits. Therefore, creation of blue oceans is a
product of strategic and as such is a direct result of managerial actions, and not the
size or age of the firm.

1.4 Digital transformation in banking sector

India today is at the helm of digital transformation. Be it SMEs, enterprises, start-ups or the
government, everyone has undergone or is thinking of digital transformation. Today, every
business, irrespective of scale, size or industry, is adopting digital technologies to improve
business efficiency, become competitive and provide a better experience to the tech-savvy
end-consumer.

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The present government has also given significant impetus to businesses to invest in new
technologies and harness the benefits of digital. The Union Budget 2018 was testament to
the government’s focus on emerging technologies such as Artificial Intelligence (AI), Block
chain and more. Among the first actions the NDA-led government undertook was to launch
the Pradhan Mantri Jan-Dhan Yojana (PMJDY or Jan Dhan) financial inclusion programme
on August 28, 2014. On the very first day that Jan Dhan was implemented, the government
created 10 million bank accounts using existing Aadhaar IDs in a paperless manner, at a
fraction of the previous customer acquisition costs. Demonetisation in 2017 was also a huge
push to accelerate digital payments. Considering how we have surpassed major countries in
smartphone adoption, it only is a matter of time for us to adopt digital payments at a much
larger scale.

Businesses across the country have also made significant investment in digital technologies.
The banking, financial services and insurance (BFSI) sector is the best example of digital
transformation in India. For example, banks earlier used to pride on the number of branches
they had, today banks like DBS have completely disrupted the sector. The concept of a
digital bank and virtual debit/credit cards is soon becoming mainstream.

Today, businesses like Paytm have transformed the money transfer experience and made it
simple and seamless; similarly, all leading telecom companies provide mobile applications
making viewing of data plans, and bill plans simple for consumers. Technology today is the
cornerstone of growth and it has disrupted traditional means and we are slowly witnessing
incumbents also invest significant amounts in emerging technologies.

The stage is ripe for India. We have already made significant headway in pushing through a
digital economy, and the next few years will see more investments in digital along with
strengthening of a digital strategy. Another trend we expect to see is incumbents leading the
next phase of digital growth in India.

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1.4.1Various forms of Technological innovations (Digital channels) by
banks

Technological innovations have been identified to contribute to the distribution

channels of Banks. The electronic delivery channels are collectively referred to as
Electronic Banking. Electronic Bankers now see a kind of development in their
business, partly, because the world has taken a quantum jump in the use of
technologies in the last several years. The various electronic delivery channels are
discussed below:

1. Automated Teller Machines (ATMs): ATMs were introduced to the Indian

banking industry in the early 1990s initiated by foreign banks. Most foreign
banks and some private sector players suffered from a serious handicap at that
time- lack of a strong branch network. ATM technology was used as a means
to partially overcome this handicap by reaching out to the customers at a lower
initial and transaction costs and offering hassle free services. Since then,
innovations in ATM technology have come a long way and customer
receptiveness has also increased manifold. Public sector banks have also now
entered the race for expansion of ATM networks. Development of ATM
networks is not only leveraged for lowering the transaction costs, but also as
an effective marketing channel resource.
2. Internet banking: Internet banking poses high operational, security and legal
risks. This has restrained the development of internet banking in India. The
guidelines governing internet banking operations in India covers a number of
technological, security related and legal issues to be addressed in relation to
internet banking. According to the earlier guidelines, all internet banking
services had to be denominated in local currency, but now, even foreign
exchange services, for the permitted underlying transactions, can be offered
through internet banking. Internet banking can be offered only by banks
licensed and supervised in India, having a physical presence in India. Overseas
branches of Indian banks are allowed to undertake internet banking only after
satisfying the host supervisor in addition to the home supervisor. A few
examples of internet banking are –
 RTGS
 NEFT
 Electronic Clearing Service ( ECS)

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3. Mobile Banking: Phone and mobile banking are a fairly recent phenomenon
for the Indian banking industry. There exist operative guidelines and
restrictions on the type and quantum of transactions that can be undertaken via
this route. Phone banking channels function through an Interactive Voice
Response System (IVRS) or tele banking executives of the banks. The
transactions are limited to balance enquiries, transaction enquiries, stop
payment instructions on cheques and funds transfers of small amounts (per
transaction limit of Rs 2500, overall cap of Rs 5000 per day per customer).
According to the draft guidelines on mobile banking, only banks which are
licensed and supervised in India and have a physical presence in India re
allowed to offer mobile banking services. Besides, only rupee based services
can be offered. Mobile banking services are to be restricted to bank account
and credit card account holders which are KYC and AMC compliant. A few
mobile banking apps introduced by various banks are –
 YONO SBI
 iMobile by ICICI Bank
 AXIS Mobile
 HDFC Bank Mobile
 IndusMobile
 YES BANK
 Citibank IN
 SC Mobile India (Breeze)
 U-Mobile
 IDBI Bank GO Mobile+
 IDFC Bank Mobile
 DENA MOBILE
 BHIM PNB

4. UPI: National Payments Corporation of India (NPCI) launched Unified

Payment Interface (UPI) in 2016 with 21 bank members. UPI is a system that
powers multiple bank accounts into a single mobile application, merging
several banking features and seamless fund routing. UPI has been considered
as the revolutionary product in payment system.

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5. Digital wallets: Digital wallets allows individual to make electronic
transactions using a smartphone. Awareness and use of e-wallets increased
post demonetisation in India. It is indeed one step towards ‘less cash’
economy. Examples of top digital wallets and UPI apps in India:-
 Paytm
 Mobikwik
 Freecharge
 Oxygin
 ICICI pockets
 PhonePe
 Jio Money
 State Bank Buddy
 Vodafone M- Pesa
 Chillr
 Citrus Wallet
 mRupee
 Ezetap
 Trupay
 Airtel money

6. Wearable Technology: ‘To wear your bank on your wrist’ is a reality today.
Smart watch banking helps the customers to check their balance, get fraud
alerts, and carry out both financial and information transactions and offers
many more services, all on their wrist.

In India ICICI has launched an app named iWear for all smart watches. ICICI
is among a few global players allowing transactions using this app on both
Apple and Android platforms. As technology is redefining banking, wearable
banking and transactions via smart watches and smart glasses is gearing up as
a key trend.

7. Artificial Intelligence and Robotics: Indian banking sector is heavily

investing in automation via Robotics and Artificial Intelligence (AI).

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Intelligent machines are being deployed to cater to every need of today’s
modern tech savvy customer. For example:
 Kumbakonam based City Union Bank launched India’s first
banking robot Lakshmi which is powered by AI in Nov 2016. All the
generic questions are answered aloud while sensitive information
pertaining to the customer is displayed on robot’s screen.
 ICICI deployed Software Robots in its over 200 business processes
in 2016. These software robots have reduced the response time to
customers by up to 60% and increased accuracy to 100%.
 HDFC launched Intelligent Robotic Assistant (IRA) in one of its
Mumbai branches. This IRA guides the customers towards various
banking operations within the branch.
 DIGI Bank – India’s first mobile-only digital bank DIGI Bank by
DBS Bank - Singapore’s largest bank and a leading bank in Asia, has
proved to be a milestone in the field of AI enabled banking services
in India. DBS launched India’s first mobile-only bank in 2016 –
DIGI Bank. Unlike traditional banks it is completely paper-less,
signature-less and branchless bank. It’s the only virtual bank
powered by AI where customer authentication is done using Aadhaar
card.
 Chatbot: Chat robot is a computer programme that simulates human
conversation through AI) launched by few banks in India. For
examples:-
a. SBI – SIA
b. ICICI – iPal
c. HDFC – EVA
d. Yes Bank – YES TAG
e. DIGI Bank – Digor

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1.4.1Digitizing lending – Blue Ocean in banking sector

Advent of internet changed many things. Banks have realized this and have started
relying on the internet to distribute its loan products. Today a customer can also
access information about various loan products through different online, loan
comparison websites. Banks takeover the customer thereon, and close the
transaction. However this does not guarantee that the customer gets the desired loan
facility, a superior service and satisfaction. Currently, there is a gap in the market not
offered by any such websites, which is handholding the customer from product search
to signing of agreements and ultimately getting the loan from the desired Banks /
NBFCs. This whole process of handholding the customer from product search to
signing of agreements can be done through an integrated end to end online financial
product market place. Such integrated end to end online financial product market
place is also the need of the hour.

HDFC Bank is clocking loan sales of Rs 1,000 crore per month through digital
platforms across products and expects it to go up further with the launch of a an online
loan against mutual funds, a senior official said. The private sector lender launched
the new product offering today in association with CAMS, which controls 65 per cent
of the market share. It has an approved credit limits of Rs 10,000 crore on the loans
against mutual funds (MFs) and insurance policies

The digital alternative will reduce time taken to pass a loan to a up to three minutes as
against the current time of up to six days, he said, adding that even getting the money
through redemption takes up to three days. An investor can borrow up to 50 per cent
of the value of her MF holdings in both the debt and equity segments and will be
charged an interest rate of up to 11 per cent. The minimum loan amount is fixed at Rs
1 lakh, while there is a limit of Rs 10 lakh for loans on equities and Rs 1 crore for debt
mutual funds.

The customer needs to have a savings account with the bank to avail the loan and fill
up certain forms to get a loan approval. The approved amount reflects in a specially
created current account as an overdraft and the interest charges start with the draw-
11
down, the bank said. As an introductory offer, the bank will be charging a processing
fee of Rs 1,499 per customer. At present, it has 10 MF houses for which the loans can
be availed. The digital alternatives are being launched under the bank's recently
adopted "blue ocean" strategy of exploring untapped areas for selling loans digitally.

1.5 Five innovative trends in future that will define Banking sector:

The banking industry is beginning to incorporate the traits and practices that were once the domain
of fintech start-ups. Banks and credit unions have become more comfortable with a faster pace of
innovation, using data and analytics more extensively and digitizing processes as opposed to
simply turning paper into PDFs.

The Indian banking sector is becoming both more strategically focused and
technologically advanced to respond to consumer expectations while trying to defend
market share against an increasing array of competitors. A great deal of emphasis is
being placed on digitizing core business processes and reassessing organizational
structures and internal talent to be better prepared for the future of banking. This
transformation illustrates the increasing desire to become a ‘digital bank’.

The importance of innovation and developing new solutions that take advantage of
data, advanced analytics, digital technologies and new delivery platforms has never
been more important. We are seeing organizations innovate in targeting, expanding
services, re-configuring delivery channels, delivering proactive advice, integrating
payments and applying block chain technology.

These efforts will only increase in future, as global financial and tech giants
revolutionize the financial services arena. As part of these mega-trends, banks will
also experiment with new mobile applications and voice-enabled gadgets to enhance
both delivery and contextual personalization. Ultimately, the consumer will be front
and centre. As technologies continue to evolve, the banking sector will continue to
accelerate its investments in innovation and digital enhancements.

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Figure 3:-

1. Serving a Segment of One:

According to Accenture, “Many banks have initiatives aimed at targeting
demographic-based clusters such as young people, Millennials or older people, but
some banks are now targeting customers based on lifestyles, values, aspirations, mind-
sets and underserved needs.” In future, many banking organizations will go beyond
personalization by segment, to develop individualized communication and
experiences for the segment of one. This is the ultimate level of innovative
personalization allowed through data, advanced analytics and digital technologies.

This level of personalization involves clustering a customer base with advanced

criteria, where human-centric, design-thinking pillars and CRM tools help banks and
credit unions match needs to solutions in real-time. One of the forgotten keys to
success with segment-of-one personalization is estimating the potential customers’
willingness to pay for this added value. Or maybe, the key to success is a financial
services organization’s willingness to monetize value in the way that Amazon sets

13
pricing on delivering the value of Amazon Prime. Consumers must be ready to
recognize the value behind a personalization solution and be willing and able to pay
for it.

Innovation and serving a segment of one is not limited to individual consumers. Banks
and credit unions should also focus their efforts on the small and medium enterprise
(SME) segment and the needs of individual businesses. Many financial services
organizations are taking a ‘GAFA’ (Google/Amazon/ Facebook/Apple) approach,
leveraging insights and data derived from services and individual organizations to
boost their core business.

Figure 4:-

2. Expansion of Open Banking

More and more regulatory bodies globally are requiring banking organizations to
enable customers to share their data securely with third parties to power new financial
services and increase competition in the banking industry. By making account and

14
payment data available through secure application programming interfaces (APIs),
consumers have greater freedom and control in how they interact with their financial
service providers.

Open banking APIs accelerate innovation and collaboration, leading to expanded

banking ecosystems that could include more than just financial services to make a
consumer’s lifestyle better. What is exciting about open banking is that making
consumer consent a central part of open banking strategy places an increased
emphasis on consumer value propositions. In other words, if improved value isn’t part
of the open banking consumer proposition, the customer will not allow the sharing of
their data. Alternatively, those firms that provide the best consumer value proposition
will be the relationship winners.

Figure 5:-

The understanding and leveraging of the innovation potential of open banking will
allow legacy financial services organizations to build on their existing customer
relationships. By giving customers choice and control of their own data, first-mover
banks and credit unions can become leaders in an era of increasingly personalized
financial services. The expansion of open banking also will encourage non-traditional

15
financial firms to collaborate with traditional banks or go solo with the same intention
… innovating on behalf of the consumer.

3. Commitment to Digital Delivery

With the high cost of a traditional branch network and the increasing number of
transactions moving to digital channels, more and more traditional financial services
companies are introducing digital-only banking entities. Some banks are launching
digital-only banks to collect deposits, while other financial firms are using digital
platforms to provide lending, investing and specialty services. In each instance, the
focus is on innovative customer experiences and increased value to the consumer,
supported by customer data and advanced analytics that can personalize engagement.

Some of the organizations that will move in this direction in future will do so to
protect their current customer base, while other firms will be trying to expand (or
generate) market share. In all cases, the desire will be to introduce first-to-market
products that are consumer-focused. This focus on innovation is empowered through
Open Banking APIs and cloud technologies.

The pressure to create an alternative delivery model is driven by the cost of

maintaining branches. Obviously, the raw cost of operating a branch is high, which
makes return on assets significantly stronger for a branchless bank. While new
entrants will usually pay an increased cost for funding with brokered or online
deposits, existing organizations that build a digital-only “sub-brand” benefit from
already having a low cost of deposit funding.

As in the retailing industry, consumer expectations and the cost of alternative forms of
delivery are redefining the way the banking industry is structured and the importance
of innovative new delivery models.

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Figure 6:-

4. AI-Driven Predictive Banking

One of the most exciting innovation trends in 2019 will be the continued movement to
predictive banking. For the first time, the banking industry can consolidate all internal
and external data, building predictive profiles of customers and members in real time.
With consumer data that is rich, accessible and financially viable to deploy, financial
institutions of all sizes can not only know their customers, but also provide advice for
the future.

This enhanced use of data will enhance the consumer experience, while increasing
security and efficiency. By moving from a rear-view-mirror perspective of customer
communication to services deployed by robo-advisors and AI-driven chatbots,
financial institutions will provide consumers with value through ‘next-best actions’ as
opposed to blind selling of products. The real innovation will occur when financial
institutions integrate this capability with the expanded services of open banking and
connected devices.

17
The reach of banks and credit unions can be expanded as virtual agents work on
behalf of the consumer to find the best mix of solutions for each individual in real
time. This transformation may also result in the elimination of specific traditional
products (checking, loans, and payments) with the emergence of universal cash
management solutions that address all needs in an integrated service.

In the end, the focus is no longer on putting together good information and waiting for
someone to look at it; information is now shown with the goal of proactively changing
customers’ everyday behaviours, with figures and insights contextually delivered.

Figure 7:-

5. Payments Everywhere

The payments industry has been, and will continue to be, one of the most dynamic
areas of innovation in the banking industry. Impacted by changing consumer

18
expectations and driven by technological advances, innovation will continue to come
from traditional financial institutions, fintech firms and big tech players.

As the infrastructure of payments continues to evolve, innovation will move the

payments industry from a series of specific products to part of everything consumers
do. Differentiation will be driven by data, technology and delivery, changing the
dynamics of how and where we pay and receive payments. Payment innovation trends
will occur in conjunction with the Internet of Things (IoT), point of sale (POS),
mobile wallets, cryptocurrencies, and the block chain.

The impact of this innovation in payments will be a decrease in the ability to

differentiate on back-office capabilities, a decrease in transaction fees, and an increase
in the importance of differentiated user experiences and the application of a vast array
of data. Payment insights provide the foundation of consumer and small business
behaviour, positioning those organizations capable of processing vast amounts of
payment data as the best to serve consumers in the future.

Figure 8:-

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1.6 Innovative advertising

The banking sector is not only innovating in terms of products and services but also in
advertising these products and services all around the world. A good advertisement
should have:

 Information about the product or service

 Creativity
 A level of consumer interaction
 Brand ambassador/humour/theme

A few examples of innovative advertisement are as follows:

1) Kotak Mahindra Bank’s “Phone Mein kotak” ad –In today's digital

world, the mobile phone is fast becoming the focus of everybody's lives.
It empowers people to do what they want to do and need to do from
wherever they are, whenever they want to. Banking is no exception.
Kotak Mahindra Bank was a pioneer in digital banking, be it with
hashtag banking or services like mail money and Insta PIN generation.
Over the last few months, Kotak has added several new innovative
features, including message money, flight booking, buy a book via
twitter, mobile and DTH recharge, internet-free mobile banking, and
several other services. Today, there are more than 77 different things a
customer could do using the Kotak mobile banking app. It showcases
how mobile banking using Kotak's app and Hashtag banking features has
transformed the way people lead their lives, in simple and profound
ways, be it in large urban cities or in the smaller towns of our country.
The campaign pegs on three unique features of Kotak Mahindra’s
Banking experience on Mobile: Instant Money Transfer, Tweet to Buy a
Book and Flight Booking to give viewers a perspective on the
transactions they can do on their phone. It tries to communicate that with
the passage of time, the means of banking may be evolving but the
emotions are just the same.

2) SBI NRI banking service: Digital banking, for many NRIs travelling
back home, has substantially reduced their time spent on financial
transactions, making it a preferred choice of banking. SBI’s enhanced
20
NRI service in the personal banking space is supported by a digital
infrastructure that provides service to clients, at the click of a button.
The NRI service offerings include instant fund transfer, loan credit
against fixed deposits, home and car loan application, among others.

SBI and the DDB Mudra Group wanted to drive home the positive
impact that the bank’s NRI services have on a user’s life and what better
theme to showcase this than a big fat Indian wedding. Featuring a typical
Indian modern family comprising an overtly critical father, a supportive
mother, a chirpy bride-to-be and her responsible elder NRI brother, this
five-part ad series take the viewers through situations that every NRI
sibling/ child faces when there is a wedding back home. Right from the
first episode where the viewer is introduced to the characters, to the last
one, where the celebrations have been successfully completed; each
story has a benefit from SBI’s NRI banking services subtly spun into the
story line. The series begins with a light argument between a father in
India and his New York-based son, who is scheduled to come home just
two days before his sister’s wedding. When the father indicates his
unhappiness over his son’s absence, the latter reassures him that with his
banking needs conveniently taken care of through SBI NRI services, he
will be able to contribute more quality time to his family. In the second
part, the sister playfully taunts her brother for not being there during her
wedding shopping and he surprises her with an instant fund transfer
aided by SBI, to help her buy her dream wedding attire. The third
episode talks about a common concern in any big fat Indian wedding –
unexpected guests, and shows how the son has been able to plan for this
with SBI’s banking service. In the fourth episode, the son surprises his
sister with the news that the family is shifting to a new home, thanks to
the easy home loan that he applied for before coming to India. The series
finale takes the viewers through the son surprising his parents with a
new car, bought with the help of SBI easy car loans under NRI services.
Each film ends with a tagline: Ghar aayen toh sirf ghar ke liye aayen’
(Come home for home).

21
3) ICICI iMobile app: ICICI Bank has launched an iMobile app that offers a
full-service bank on the customers' phones. Ogilvy has brought this
proposition alive with a campaign titled, 'Ek App mein poora bank' / 'your
bank in an App'. To emphasize the wide range of features available on the
iMobile app, Ogilvy created 5 different films, each highlighting one feature
The creative was strategically planned to grab and hold the viewer’s attention
long enough to convey the message. This is why the films chose the short
format approach. Another first for ICICI was the use of humour in a campaign
for a banking product. ICICI Bank's every attempt is to make banking a
pleasurable experience for its customers. Its iMobile app offers the customer
the experience of 'Ek App mein poora bank'. That is the creative idea. The two
protagonists in the films bring alive the ease of use, convenience and
effortlessness of this product in a light hearted and humorous manner.
Reiterating the joy of banking with ICICI Bank."

4) Kotak Mahindra 811: Kotak Mahindra Bank, which hinges its

communication on diversity and progress, is back with a new campaign
featuring Bollywood actor Ranveer Singh talking about social inclusivity.
The ad, which promotes digital bank service 811 launched in March last year,
talks about how our society often discriminates people on the basis of religion,
caste, creed, sexual orientation and abilities.
Made by advertising agency Cartwheel Creative, the 30-second long spot shot at
the iconic Chhatrapati Shivaji Maharaj Terminus in Mumbai, captures real life
nuances. The protagonist of the story is ‘the bench at the railway station’ and
Singh dons the role of the bard (sutradhar). The story voices similarities between
Kotak’s 811 service and a bench at a railway station which provides services to
everyone irrespective of where they come from.

811 allows people to open a zero-balance digital bank account which gives up to
6% per annum interest to every citizen of the country. The account can be opened
through an app without physically visiting the bank branch.

22
811 targets first time banking customers who find it difficult to deal with a
conventional bank set-up (mostly teenagers and first jobbers), differently-abled or
people left out by society for a wide variety of reasons.

5) Federal Bank’s “Why settle for less”: Federal Bank has come up with a 360-
degree campaign to further popularise the brand’s reach and recall. The
campaign speaks of the bank’s flagship products in a creative and
contemporary manner. The bank intends to create desire with the theme-
question, ‘Why Settle for Less?’

Ogilvy & Mather developed the theme and storyboard for the ads, with each
talking about the products being launched – home loan, car loan, salary
accounts, SME business loan and Fedbook Selfie.

In each of the videos, there are two contrasting situations shown. The first one
is that of a person who doesn’t have a Federal Bank account and the following
part being that of a man with a Federal Bank account, which obviously makes
him cooler and happier with all the benefits being mentioned against a
signature tune playing in the background.

Commenting on this new campaign, Rajanarayanan N, Deputy Vice President

(Marketing & Investor Relations), Federal Bank, said, “The objective of the
campaign is to reinforce to our target market, with an accent on those who are
young in spirit, that we are a full spectrum Bank which is both humane and yet
digitally ahead. We would like to make a mention of the mood and theme of
our campaign. We are sharply conveying a fun-filled, confident and assertive
manner and for sure we believe we have succeeded in doing exactly that
through our TVCs and the entire campaign. Our tagline is ‘Your Perfect
Banking Partner’ while our digital ethos is ‘Digital at the fore and human at
the core.’ Our campaign tries to convey both of these in a humorous and
distinct way.”

6) Axis Bank’s home loan: Axis Bank, the country’s third largest private sector
bank, has launched a new home loan campaign with a unique product
differentiator – ‘Home Loans with 12 EMIs Off’. Typically, the male in the

23
 household takes a decision to buy a home as well as choosing the home loan
provider. However, the film, created by Lowe Lintas, has put the woman in the
centre of the campaign as key influencer and decision maker. Through this
campaign, Lowe Lintas has portrayed an Indian mother as the ‘change-maker’,
by putting her in the ‘driver’s seat’.

Speaking on the launch of the campaign, Asha Kharga, CMO, Axis

Bank, said, “The dominant language in the home loans category is around
interest rates and percentages. Hence, the new campaign aims to differentiate
Axis with a simple proposition of ‘12 EMIs off’. Consumer work revealed that
home buying discussions usually start during important life events like
marriage. With that context, the insight that we honed on was that typical Indian
moms don’t want to let go of their sons. If the ad encourages mothers to
introspect and have authentic, honest conversations, it would have truly struck
a chord and made Axis relevant and memorable.”

The campaign, conceptualised by Lowe Lintas Mumbai and directed by Gauri

Shinde, showcases veteran actress Revathi and Bollywood actor Vikrant
Massey in conversation with each other while shopping for his wedding.
Revathi as the mother brings up the important aspect of having one’s own living
space post getting married.

7) Experience Axis Campaign: Axis Bank, India's third largest private sector
bank has launched a new campaign ‘Experience Axis’, featuring its brand
ambassador Deepika Padukone. With the vibrant twenty-second video series,
the bank showcases a range of offers available on their credit and debit card
bouquet. The monochromatic treatment coupled with Deepika’s playful charm
also makes the films a clutter-breaking visual delight.

The films tie in perfectly with the proposition of Axis Bank Cards highlighting
up to 20% off on 4000+ partner restaurants. For the success of the initiative,
the bank has sought the right partnerships with players that have a strong
foothold in their domains. The campaign is being led by TV to build reach and
supported by outdoor and digital to build impact and engagement.

24
 The current series of films come in as a follow up to the bank's previous
Experience Axis campaign. Experience Axis glorifies the experiences that
Axis Bank's cards enable in the everyday lives of its consumers across
categories, while this particular phase focuses on showcasing Deepika
experiencing playful moments at a restaurant as she anticipates a delightful
meal.

‘Experience Axis’ is a single unified idea that ties all the value offerings on
cards across shopping, dining, and travel. It elevates the brand imagery of the
bank by focusing on experiences rather than just deals and differentiates in a
category where discounts and cash back are the reigning language and build
usage and preference for Axis Bank Cards.

The objective of Experience Axis was to differentiate Axis Bank within the
category. The idea of the campaign came from an observation that young
working Indians, are more open to spending on what they desire than what
they need. Indian youth don’t see this as ‘spending money’ but more as
‘gathering experiences’ – something they value much more than ‘material
possessions’.

8) ICICI Bank’s Credit cards ad: ICICI Bank’s latest multimedia campaign
addresses some of the key concerns of customers who use credit cards. The
campaign, a set of three TVCs, launches the ‘Manage Cards’ feature which has
been newly introduced to the Bank’s mobile banking platform – iMobile. The
feature, a first-in-the-industry for credit cards, gives customers the power to
control the security of their cards right from their own phones at just the flick
of a button, 24x7.

The launch of the new feature comes on the heels of a study that the Bank
conducted to understand the various barriers and triggers involved in credit
and debit card usage among its customers and non-customers. The study
revealed some key bottlenecks that hindered the respondents from using the
cards. These included fears pertaining to card security like loss of card,

25
 internet frauds and international frauds among others. The study further
revealed that the apprehension pertaining to security also exists in the case of
regular card users.

The three TVCs featuring Kalki Koechlin, Manoj Pahwa and Kunal Roy
Kapoor, take a humorous road towards addressing the safety concerns of the
consumers and are designed to instill a sense of self-security in their minds by
showcasing them the strength of the ‘Manage Cards’ feature.

The ads showcase the minimalistic and easy to use interface on the iMobile
app, which lets users select the security control of their choice in the hour of
need with just a tap of the finger. Each of the three TVCs cater to one of each
features viz. ‘temporary block / unblock card’, ‘block / unblock online
transactions’, ‘block / unblock international transactions’.

The multimedia campaign is being taken on air during the highly engaging
festive season which witnesses the highest spends in the financial year. With
most of the other brands promoting their run-of-the-mill offers and discounts,
the Bank’s distinct messaging aims to stand out and be noticed.

9) IndusInd bank: IndusInd Bank has rolled out what it labels India's first debit
and credit card in one. A campaign consisting of two TVCs conceptualised by
RK Swamy BBDO has gone on-air for the same. The films feature Boman
Irani and are around the theme, ‘keep it single’. They take the humorous route
to show two situations where a single card would be useful. The TVCs
feature Boman Irani as quirky characters, surrounded by his equally peculiar
family. Through slice-of-life situations, we witness moments of financial
transactions from everyday life where somebody lands into a tight spot due to
the confusion emanating from two separate credit and debit cards. Somebody
asking them to ‘go single’ in the middle of this embarrassment makes the
moment all the more interesting and funny. But we realise, that they were
being asked to go single with IndusInd Bank Card. The product is shown in
full glory as the voiceover and supers detail out its functionality. The films end
on a happy note.

26
 Anil Ramachandran, EVP and head, marketing and corporate communication
and retail unsecured assets, IndusInd Bank, said, "Finding elegant and
sophisticated solutions to address customer needs has always been the
foundation of IndusInd Bank’s plank of responsive innovation. Innovations
that are insight based and bring convenience to the customer. The idea behind
the unique proposition of IndusInd Bank Duo Card was to make it easier for
customers to access both their savings account as well as their credit limit
through one single card. It simplifies the customers’ life and brings
convenience into his wallet. The customer question being addressed, is why
carry two plastics when one will do?" On the brief, he added, "The brief to
RK Swamy was simple. To highlight the inconvenience of having multiple
plastics and the ‘moment of loss’ this can lead to. The fact that here was a card
that made your choice simpler and seamless as well as making it convenient to
have just one card for all kind of transactions, offers etc. While maintaining
the distinctive flavour of IndusInd Bank’s style of communication, it had to be
light hearted, non-preachy and entertaining."

10) SBI’S ‘cash ki adat badlo’: In 2016, Indian Government’s landmark decision
to demonetize notes of larger sum changed the face of Indian economy. To
avoid facing cash crunch due to this resolution, the common Indian man has
been pushed to accept digitization of currency as a way of daily transactions.
Online transactions still remain to be an unknown terrain for majority of
population whose sole faith lies in traditional banking with well-established
financial institutions like State Bank of India.

Even before the era of demonetization, SBI claims that it has been offering
different modes of digital payments. The institution introduced ‘State Bank
Buddy’, a digital wallet from SBI in August 2016. Post the demonetization
announcement in November 2016, the bank also launched ‘SBI Pay’, the UPI
app of State Bank of India. All these digital mode of transactions by SBI have
created with a common purpose of bringing ease of cashless transactions to
people from various strata of society. The offerings have been developed
keeping in mind that the consumers of these facilities are no more constricted

27
to educated millennials but also include individuals who do own a smartphone,
yet had limited usage of online transactions earlier.

SBI aims to help India create a cashless society across the nation. Hence the
concept of #CashKiAadatBadlo was conceived by DDB Mudra West. The
intent of the campaign is to promote the ease of cashless transactions via
various facilities of SBI and thus to make cashless transactions a habit for
every SBI account holder.

The campaign #CashKiAadatBadlo is being led by three TVCs which have

also transpired on the digital medium. The campaign also consists print
activation over the coming months. The three 20-seconder films showcase
SBI’s various digital/ cashless products namely State Bank Buddy- a mobile
wallet, State Bank Debit Card, and SBI Pay. The films pull a slice of life and
take the viewers through various real life situations where people can adopt to
cashless mode of payments, which are simple and safe, for all their daily needs
and change their habit.
The ad film for ‘SBI Pay’ features a conversation between a daily wage
worker, a carpenter, and his employer. The latter falls short of cash to pay for
the carpenter’s services and informs him about the delay in payment to which
the former opens‘SBI Pay’ on his mobile and takes the employer through the
process of making cashless payment. Thus, highlighting the ease cashless
transactions via SBI Pay.

The State Bank Buddy wallet ad features a conversation between an elderly

teacher and her young student wherein the student informs the teacher about
the delay in payment of fees. This is when the teacher suggests using State
Bank Buddy. The film promotes the fact that this wallet is not just preferred by
the youth but also by the elderly demographic who are new to the digital
payment system.

SBI debit card ad film simply features the reach of digital payment through
debit cards even for the smallest amount of transaction at a local retail shop.
The ad film smartly suggests that the smallest amount of transaction can be

28
 done cashless, thereby changing the habit of individual to go completely
cashless.
11) Axis bank’s ‘senior privilege account ‘ad: Axis Bank has launched a new
television commercial that showcases the lifetime of efforts undertaken by a
mother. The advert, ‘Especially for you, Mom’, explores from a daughter’s
perspective how Mothers have an emotional relationship with money. The TV
commercial that has been conceptualized by Lowe Lintas Mumbai, shows the
Mother in different situations and highlights how she has always saved money
for her family.

Asha Kharga, chief marketing officer, Axis Bank, said, “We feel privileged to
honour these Mothers with the launch of a special ‘Senior Privilege Account’
for their life-savings. The TVC travels through the timeline from the
daughter’s perspective showing her mother in different situations of life and
how she’s always saved money for her family. We want to be financially
inclusive as a brand and in a small way it is the beginning in getting more
women into the banking fold.”

The ‘Senior Privilege Account’ offers several benefits to seniors with respect
to their needs regarding savings, investments, security and health care services.
For savings and investments, Axis Bank provides higher interest rates on all
fixed deposits, irrespective of the tenure of the deposits. For security of
valuable assets, the bank offers a 25% discount on annual locker fees to ensure
that the seniors get their peace of mind. Under health care services, senior
citizens can avail benefits of up to 50% discount on health check-ups across
200 centres and hospitals in the country and up to 15% discount on medicines
and other purchases at Apollo Pharmacies.

Axis Bank also provides personalised ID cards to its elderly customers, which
help them to get preferential treatment across its branches. These apart, the
bank helps the seniors to make multiple bill payments through its branches.
Currently, more than 6 lakh seniors are part of the ‘Senior Privilege’
programme; out of these, more than 30,000 have availed of the health care
service benefits.

29
 Arun Iyer, chief creative officer - Lowe Lintas said, “The brief for this
campaign was to launch “The Senior Privilege Account” which has special
offerings like higher interest rates on FD, 25% off on Lockers and much more.
Given that such Senior Citizens will actually need help from their millennial
children to open such an account, we had to get today’s millennials to feel for
all that their mother has done for them till date. This meant that we had to take
this audience back in time and make them reminiscence about their mother.
Key to this was the insight that only as an adult do you realize about your
mother’s sacrifices because she never made them obvious. Every penny saved
or spent had a story behind it - A story of sacrifice, of thrift, of smartness, of a
special gift, of secret places where it was hidden and so on. Bringing this to
life such that we showcase a mother’s pride in all of this was also an important
factor that we kept in mind hoping that it will connect with our TG.”

12) IDFC bank’s ‘Banking nibhao’ ad: Loans as a term represents a burden in
any customer’s world. This whole journey from choosing the loan to paying it
back is a tedious process. The tale of never-ending EMIs evokes both financial
and mental pressure for customers. And the trouble gets magnified when a
customer decides to pre-pay or foreclose a loan.While the entire banking
category is talking about pre-sanction of loan, IDFC Bank has taken a
differentiated stand to communicate the Loans proposition.

The campaign idea is derived from their philosophy of ‘Providing simple,

quick and meaningful solutions’. This insight and product truth were combined
to create a film that provides a single message to customers - ‘IDFC Bank se
loan lena aasan, chalana aur chukana super aasaan’.

The new campaign is an extension of the brand’s point-of-view of being a no-

nonsense bank and also takes forward the campaign thought of
#BankingNibhao.

30
 Chapter 2
Research Methodology

2.1Introduction

Research is an essential and powerful tool in leading man towards progress.

Without systematic research there would have been very little progress. John W.
Best has rightly said, “The secret of our cultural development has been research,
pushing back the areas of ignorance by discovering new truths, which, in turn,
lead to better ways of doing things and better products.” Scientific research leads
to progress in some field of life. New products, new facts, new concepts and new
ways of doing things are being found due to ever-increasing significant research in
the physical, the biological, the social and the psychological fields. Research today
is no longer confined to the science laboratory.

Research means a systematic investigation or activity to gain new knowledge of

the already existing facts. Research is an intellectual activity. It is responsible for
bringing to light new knowledge. It is also responsible for correcting the present
mistakes, removing existing misconceptions and adding new learning to the
existing fund of knowledge. Researches are considered as a combination of those
activities which are removed from day to day life and are pursued by those
persons who are gifted in intellect and sincere in pursuit of knowledge. But it is
not correct to say that the research is restricted to such type of persons, however, it
is correct to say that major contribution of research comes from highly gifted and
committed workers. Thus the research is not at all mysterious and is carried on by
hundreds of thousands of average individuals.

Research is also considered as the application of scientific method in solving the

problems. It is a systematic, formal and intensive process of carrying on the
scientific method of analysis. There are many ways of obtaining knowledge. They
are intuition, revelation, and authority, logical manipulation of basic assumptions,
informed guesses, observation, and reasoning by analogy. One of the branches of
research known as empirical research is highly goal-oriented technique.

31
 2.2 Objectives of the study

1. To analyse the extent of competition in the market and the way banks have
strategized through Blue ocean strategies in advertising.
2. To study the need and impact of innovative advertisement in the Banking
Sector in India.
3. To study the various innovations of the Indian banking sector.
4. To gather data regarding the innovative ways of advertising by various banks
with respect to their products and service.
5. To gather relevant primary data and secondary data with respect to innovative
advertising in the Banking sector in India and analyse the same

2.3 Hypothesis

H0: In spite of the increasingly competitive arena with respect to banking sector,
banks have not innovated with efficient advertising and Blue Ocean strategies to
create awareness and reach across potential customers.

H1: In the increasingly competitive arena of Indian banking sector, banks have
innovated Blue Ocean strategies in advertising their innovative products and
services to reach across potential customers.

2.4Research Methodology:
2.4.1 Area of research:

For conducting the research work, the area of sample was the Indian banking
sector and various innovations made by them with respect to their products and
services.

2.4.2 Method of sampling:

Simple random sampling: In statistics, a simple random sample is

a subset of individuals (a sample) chosen from a larger set (a population). Each
individual is chosen randomly and entirely by chance, such that each individual has
the same probability of being chosen at any stage during the sampling process, and
each subset of k individuals has the same probability of being chosen for the sample as
any other subset of k individuals.[1] This process and technique is known as simple
32
random sampling, and should not be confused with systematic random sampling. A
simple random sample is an unbiased surveying technique.

2.4.3 Sample size: For getting a proper response 100 Indian banking customers
were asked questions.

2.4.4 Methods of Data collection:

Data plays an important role in research. Facts, information or premises systematically

collected and formally presented for the purpose of drawing inferences are called as
data. Statistical information collected, complied and presented for the purpose of
establishing relationships between variables can be included in the data.

There are two methods of data collection namely:

1. Primary data: The data which is collected afresh and for the first time to
solve specific problem is called primary data. It is original in character. The
researcher takes up original investigation with the target groups to gather
accurate information and data. Primary data can be obtained with the help of
various techniques such as; Observation, Interview, Questionnaire and
Experimental.
2. Secondary data: Secondary data is readily available data from published or
printed sources. The secondary data is generally used in case of academic
research and to certain extent in the case of social research. For this research
secondary data is collected from previous research papers, thesis, journals and
news articles.

2.4.5 Method of Primary Data collection:

Data observed or collected directly from first – hand experience is called primary
data. For the purpose of this study primary data is collected by questionnaire method.

“A questionnaire is a systematic compilation of questions that are submitted to a

sampling of population from which information is desired.”

Barr, Davis & Johnson

33
The questionnaire is probably most used and most abused of the data gathering
devices .It is easy to prepare and to administer. The questionnaire is a form prepared
and distributed to secure responses to certain questions. It is a device for securing
answers to questions by using a form which the respondent will fill by himself. It is a
systematic compilation of questions. It is an important instrument being used to gather
information from widely scattered sources. Normally used where one cannot see
personally all of the people from whom he desires responses or where there is no
particular reason to see them personally.

2.4.6 Data analysis tools:

Data analysis embraces a whole range of activities of both the qualitative and
quantitative type. It is usual tendency in behavioural research that much use of
quantitative analysis is made and statistical methods and techniques are employed.
The statistical methods and techniques are employed. The statistical methods and
techniques have got a special position in research because they provide answers to the
problems. Kaul defines data analysis as, “Studying the organized material in order to
discover inherent facts. The data are studied from as many angles as possible to
explore the new facts.”

For the purpose of analysis of data following method and tools are used:

 Percentage method: A percentage frequency distribution is a display of data

that specifies the percentage of observations that exist for each data point or
grouping of data points. It is a particularly useful method of expressing the
relative frequency of survey responses and other data. Many times, percentage
frequency distributions are displayed as tables or as bar graphs or pie charts.
 Bar graphs
 Pie charts

2.4.7 Importance of study:

The existing red ocean of intense competition and untapped demand requires blue
ocean strategies to unlock potential and rediscover competence. Innovation unlocks
the potential of technology to create inroads and achieve purposes with path breaking

34
ideas. In the banking sector new ways of getting across and targeting stakeholders
with respect to the various products and services which the banks are offering has
been made possible by translating ideas with the use of technology. Such innovations
are varied and the outcomes are far reaching, enabling financial inclusion, educational
inclusion, investment planning, retirement planning, retail banking and so much more.

A study of the innovations in advertising by the banking sector gives an insight into
the manner of reach out to hitherto untapped customers. The banks that have
innovated in the manner of reach out through innovative advertising have charted the
futuristic path with giant strides forward.

The study brings out the following aspects:-

 Understanding the time line perspective of the need to reach out.

 Providing a bird’s eye view of how innovation in advertising has
ensured this reach out.
 Finding and providing an insight into certain major strategies and
techniques that have created success in generating demand for the
products and services.
 The competences of the banks and the functional areas wherefrom
such innovative advertising has been directed has increased and has
spiralled for the products and services.
 The study brings out the difference between innovative advertising
opening new horizons and opening closed doors as compared to
lack of innovation which leads to lack of reciprocal action by the
consumers.
2.4.8 Limitations of study:
 The Indian market is segmented into different income levels and
the response to the Banking sector benefits is linked with the
overall need for greater financial inclusion.
 The segment within the fold of digitisation and technology stand to
benefit greatly from innovative advertising in the Banking sector
and innovation is continually progressing to bridge the digital
divide.

35
  Due to time constraints it has not been possible to administer the
questionnaire to unbanked and rural areas and gauge the impact of
innovative advertising on differential segments

Chapter 3

Review of Literature

Ayres (2015) explained that banks are needs to implement well-organized advertising
campaign for market development. Advertising is necessary for banks and provide
elemental supports for banks. Advertising is fundamental key for long-term growth and
provide organization at contemporary business environment to have capability to
improve customer awareness of products to achieve demand. Competition in banking
sector is very fierce and banks needs to updates customer's mind about the attractive
offers that are provided by bank to customers.

Storey (2013) explained that banks are always to provide lots of financial information
relating to banks performance through advertising to enable stakeholders of banks to
get all facts relating to current bank operations. Banks implements advertising to inform
stakeholders with information related to bank performance every year and to enable
stakeholders to be aware of the effective performance of bank. Banks should declare
also the annual reports related to bank performance every year to public people as per
local regulations relating to banks.

Sisson, (2015) explained that advertisements enable banks to improve large number of
people awareness about the quality of services that are provided by bank to attract more
people to deal with bank and to gain people trust of the bank operations. Advertising
supports banks to make more customers to be conscious of all bank services and enable
banks to make people aware of bank packages of services. Bank brand can be more
familiar to larger number of people in banking sector by advertising. Banks needs
always to perform wide advertising relating to bank offers and to provide customers
with all facts that make customers to have satisfaction of bank performance to attract
the to deal with bank.

36
Henderson (2014) explained that advertisements support banks in competition with
other banks and to have better opportunities to raise bank market-share by attracting
customers of other banking through advertising campaign. Advertisements had strong
role to support banks to expand effectively in banking sector and to enable customers
to get higher awareness of overall bank offers and bank products. Advertisements
makes possible to banks to gain more profit through the positive roles of advertising to
attract superior number of customers and to encourage them to take decision to deal
with bank. Advertisements enable banks to target specific segmentation of customers
and to focus advertising efforts to make an exact segment of bank customers to be aware
of bank offer. Advertisements enable bank to send a specific message for bank
customers and to attract customers attention to bank offers to gain higher customers
trust.

Schuler (2015) explained that advertisements attracts customers to decide to deal with
bank due to role of advertising to support customers to get vital facts reeling to overall
bank operations and bank history to lead ore customers to decide to deal with bank and
to open their account in bank. Advertisements provide banks with strong brand name
and remind customers about performance of bank and range of services that are
provided by bank to people in banking sector. Advertisements support banks for long-
term growth and enable to attract more customers and to create strong relationships with
current customers of banks.

E-commerce is now considered to hold the guarantee of a new commercial revolution

by offering a reasonably priced and direct way to exchange information and to sell or
buy products and services. This revolution in the market place has set in movement a
revolution in the banking sector for the provision of a payment system that is compatible
with the demands of the electronic marketplace (Balachandher et al, 2001).

Innovations in information processing, telecommunications, and related technologies –

known collectively as “information technology” (IT) – are often credited with helping
stimulate strong growth in the many economies (Coombs et al, 1987).

It seems obvious then that, technological innovation affects not just banking and
financial services, but also the way of an economy and its capability for continued

37
growth. IT is defined as the modern handling of information by electronic means, which
involves its admittance, storage, processing, transportation or transfer and delivery (Ige,
1995).

According to Alu (2002), IT affects financial institutions by lessening enquiry, saving

time, and improving service delivery. In recent decades, investment in IT by
commercial banks has served to rationalize operations, improve competitiveness, and
increase the variety and quality of services provided.

According to Yasuharu (2003), implementation of information technology and

communication networking has brought revolution in the performance of the banks and
the financial institutions. It is argued that theatrical structural changes are in store for
financial services industry as a result of the Internet revolution; others see a continuation
of trends already under way.

Shimizu, Santoshi (2010) studied Indian banking during financial crisis. He

Concluded that Indian Banking is strong enough and unaffected by global financial
Crisis. India’s rapid growth since 2000 has been accompanied by a rise in the savings
And investments rates. He also concluded that in spite of all type of banking in India,
Financial saving still account for a small percentage of household savings. The
Growth in SME and Financial Inclusion is not up to mark as per potential in India.
He also suggested that the mergers of small banks should be considered to increase
The size of banks.

Mosahab, Rahim, Mahamd, Osman and Ramayah, T. (2010) conducted their

Research in Bank of Tehran-Iran and studied the relationship between services
Quality, satisfaction and loyalty. They concluded that in all aspects customers’
Expectation are higher than their perceptions of bank’s operations. Customer
Satisfaction is the mediator in the effects of service quality on service loyalty

Mittal, Arun and Mittal, Priya (2010) concluded that consumer behaviour is the
base of all marketing and promotional strategies in banking sector. Banks are required
to redesign their promotion mix as per consumer behaviour. They also revealed that
mass media advertising is the most preferred mode of promotion of banking services.

38
Siddiqui, Masood H and Tripathi, Shakini N (2010) analysed the complaint
Attitudes in the banking sector and suggested that service failures in retail banking
tend to have a negative impact on service quality and also affect the customer
satisfaction. They have divided customer into four segments: non-complainers,
switchers, prompt complainers and positive thinkers. Bank has to design effective and
customized service recovery strategies.

Verma, Arjun and Anit Roy Parul, (2010) revealed that a bank has to implement
promotion strategies on continuous basis, as Bank of Baroda has implemented. The
implementation focused promotion strategies such as celebrity brand ambassador
(Rahul Darvid, Indian Cricket player), expansion, focused publicity, corporate color
of logo and regular advertisement on electronic and paper media.

The effort to promote banking business is quite distinguished affair. At present it has
become very tricky to due to challenging trends of industry, increasing competition
and efficiency of regulatory environment, and the financial system. The complexity in
the banking services is also an issue of vital importance. This is the time when banks
are offering new and innovative services, frequently in the market. The content of
Promotional tools should help the customer in making most valuable decision. This
can be firmly said that well-designed promotional strategies are very important to
promote banking services effectively. In marketing any product or service, customer
satisfaction has been given the prime importance. The most frustrating aspect
Of marketing of banks is lack of management support, lack of inter-departmental
cooperation, government regulations and advertising & media problems. (Berry &
Lindgreen, 1980).

Sarin & Anil (2007) recommended that manpower in service organizations must
work with the focus of satisfying the customer. Promotional packages are very
important for financial service industry (Ananda & Murugaiah, 2003). Thus the
orientation of banks should be with a much wider focus in relation to consumer and
market needs, and the consequent marketing strategies. The challenges put forth by
the changing environment have to be effectively tackled to identify the consumer

39
needs and providing valuable services through product innovation (Nair Raman,
2006).

A study by Krishna, Suryanarayana & Srikant (2005) recommended that

Promotional strategies should be designed as per the nature of the services to be
promoted. The advertisers should seek a narrative approach to communicate the
Service experience rather than a logical, argumentative approach. Narrative approach
involves storytelling methodology using sequence of events (Sehgal Roli,
2004).

It has been generalized in the studies that services marketing advertisement is more
challenging than the advertising of tangible products (Ray and Bose,
2006). the case should be taken in the marketing of financial services very seriously
(Farrokhtakin, Stavash, 2000). While formulating marketing strategy, a bank
should focus attention on (i) consumer sovereignty, (ii) attitude, (iii) responsiveness
and personal skills of bank staff, (iv) revitalizing the marketing department, (v) top
Management support to the marketing department, (vi) participation of marketing
personnel in key bank decisions (Kumar Ashok, 1991).

Mohanlal Sharma (1979) "Structural changes in Indian commercial banking

system since 1969: A study of portfolio profits and policy" analysed the effects of
Nationalization on the banking industry in India T. Radha (2003), impact of banking
sector reforms on the Performance of commercial banks in India 1989-
90 to 1998-99-studied the effects of the Narasimham committee recommendation on
the banking industry. Dr. N. Bharathi (2007) in her article Indian Banking
And Finance - A Paradigm Shift- wrote that the banking industry is currently in a
transition phase.

Dun & Bradstreet (2008) (an international research body)" India's Top Banks 2008"-
there has been a significant growth in the banking infrastructure of India.

40
Taking into account all 82 banks in India, there are overall 56,640 branches or offices,
the total assets of all scheduled commercial banks by end-March 2010 is
Approximately Rs 40, 90,000 crore.

VM Kumbhar (2009) "Alternative banking: A modern practice in India" the Indian

banking sector has witnessed major transformation during the last 40 year. It has
passed through various phases. In the process, it has embraced superior technology,
new products and services that are customer centric. Indian Bankers Association &
McKinsey (2010) - Indian Banking 2010- Towards High Performing Sector-
Analysis the state of Indian Banking Industry in the financial year 2010.
ICRA (2011) Indian Banking Sector: Challenges Unlikely to Derail the Progress
Made- Analysis the various challenges & opportunities that stand in front
Of the Indian Banking Industry.

A macro level study by Manoj P. K (2012) “Information and Communication

Technology (ICT) for Effective Implementation of MGNREGA in India: An
Analysis” has noted the vital significance of ICT for faster, hassle-free, and
transparent implementation of MGNREGA. Need for ICT, its benefits, ICT success
stories (e.g. MGNREGA in Rajasthan), challenges in ICT adoption etc. are discussed.
Neeraja James and Manoj P K (2014) in their paper “Relevance of E-Banking in
the Rural Area – An Empirical Investigation” have studied the relevance of E-
banking services with a focus on a rural area in Kerala and have suggested measures
for better reach of banking in rural areas.

An empirical study on e-CRM by Manoj P K, Jacob Joju, and Vasantha (2014)

“Impact of E-CRM on Commercial Banking: An Empirical Investigation with
Reference to Private Sector Banks in Kerala” in International Journal of Applied
Financial Services & Marketing Perspectives (IJAFSMP) has revealed that most of the
customers of private sector have used CRM including different ICT-based services.
Majority of customers and bank officials preferred e-CRM and ICT- based services
and bank marketing.

41
In a study by Jacob Joju, Vasantha S and Manoj P.K. (2015) “E-CRM: A
Perspective of Urban and Rural Banks in Kerala” in International Journal of Recent
Advances in Multidisciplinary Research, the authors have compared the acceptance of
e-CRM among the urban and rural customers. It has been noted that e-CRM is more
accepted among the urban customers, and that rural customers have more preference
of „human factor‟ in the services than their urban counterparts.

In his recent paper, Manoj P. K (2016) “Bank Marketing in India in the Current ICT
Era: Strategies for Effective Promotion of Bank Products” in International Journal of
Advance Research in Computer Science and Management Studies the need for
adoption of ICT for effective delivery of bank products is highlighted. Of the six
strategies suggested for marketing of bank products, the sixth strategy is about the
effective use of e- CRM.

Another study on e-CRM in the Indian context done using field survey of bank
customers, by Jacob Joju, Vasantha S., & Sony Joseph (2016) “E-Leveraging e-
CRM for Future” in Indian Journal of Science and Technology, has pointed out the
need for leveraging e- CRM in today’s competitive scenario for survival and growth
of banks. Reserve Bank of India (RBI) publication authored by Maiti, Sasanka, S.
(2017) “From Cash to Non-cash and Cheque to Digital” has studied the impact of the
RBI initiatives to promote non-cash (digital) mode transactions, the progress of such
initiatives, and has noted that there has been „fundamental shift‟ towards non-cash
(digital) transactions in the ongoing „Demo “era, i.e. since 8 Nov. 2016.

A study by Lakshmi and Manoj P. K (2017) “Rural Customers and ICT-based Bank
Products a Study with a Focus on Kannur District Co-operative Bank and Kerala
Gramin Bank” in International Journal of Economic Research (IJER) has noted the
growing acceptance of ICT-based products among rural customers. While ICT
adoption is required, equally important is staff training and their skill development.
Above all, a human touch needs to be ensured by the bank staff in their services.
Despite many studies on the impact of ICT on Indian banks, studies that focus on CTS
are scarce. This is the research gap located for this study

Leorge William R and Hiran C Barksdale1 studied the marketing

42
Activities in the service firms and discovered that services marketing is
Generally on the low ebb. Service firms tend to be less marketing oriented less
Likely to have marketing mix activities carried out in the marketing department;
Less likely to perform analysis in the area of service product more likely to
Undertake advertising internally rather than go to specialized advertising
Agencies less likely to have overall sales plan less likely to develop sales
Training programmes less likely to utilize the services marketing consultants
And marketing research firms and less likely to spend much on marketing, as
A percentage of gross sales’.

Bessom, Richard M and Donald W Jackson jr2 referred that 400 service
And marketing firms revealed that service firms are less likely to have
Marketing departments, to make use of sales planning and training, and to
Employ marketing professionals like consultants, advertising firms and market
Research agencies.

James F Devlin3 studied as to how attempts can be made

To add value when offering services exhibiting increased complexity,
Intangibility and impalpability in the eyes of most consumers. It was found that
The features and quality of the core services provided are judged by managers
To be more important in adding value to more complex services; as are
Organizational factors such as image and reputation. In addition, price is
Perceived to be significantly more important in adding value to more simple,
Rather than complex, offerings.

Sasser4 identified that services depend upon input from both service
Employees and consumers for their production, quality of the service output
Depends very much on the nature of the personal interactions of these parties.
This makes the potential for variability in the service performance quite high
Which leads to the next distinctive characteristic of services, namely
Heterogeneity/ variability. The quality and the performance of a service varies
From person to person and from day to day. Services, because they are
Performed and always involve a human element cannot be standardized the
Way goods are.

43
A service is always subject to some variation in performance
And developing realistic standards of performance is extremely difficult. This is
To say that services are heterogeneous in nature. People’s performance day
In and day out fluctuates up and down. The level of consistency that you can
Count on and try to communicate to the customers is not a certain thing.

Variability is freak in manufacturing of goods whereas it is inherent in

Services. For e. g. no two transactions in a bank can provide identical
Experiences. The nature and quality of service by a frontline staff member of a
Bank tends to vary from one client to another on the same working day. In
Many services, quality control problems are minimized by achieving
Standardization in output with the induction of equipment and machines for
Labour. Service providers being human beings cannot maintain a uniform level
Of dexterity, skill and emotional stability since they are subject to emotional
Swings.

Therefore, we can say that services have certain specific

Characteristics, which make them different from the goods. Since banks
Essentially deal with services, the bank marketing must involve wider
Dimensions then the customary 4 P’s of marketing mix viz. price, product,
Place and promotion. It must emphasise on ensuring a higher of consultancy
And quality in terms of both product creation and delivery. Therefore, three
More P’s, people, procedures and physical evidence should also be included
In marketing of services. In addition to this, the banks must attractively
Package (add new features, schemes etc.), price and position their services to
Lure the potential customers and retain the loyalties of the existing ones.

Further, market research must be carried out regularly by banks to

Understand the customers’ requirements in terms of banking hours, convenient
Location, after-sales services, advertising media, new services, behaviour of
The banking staff etc. This will in turn direct the banks in taking a fresh look at
Their existing promotional, pricing, communication strategies and thereby help
In taking steps to improve upon them.

44
Today, the banking sector is changing in terms of providing the
Customer with what he wants, when he wants and where he wants. Thus, the
Element of marketing which was unheard of in earlier days of banking has
Assumed great significance in today’s world of stiff competition. As such, no
Bank today can do without marketing its services.

Sarkar5, Kaptan6 and Sagane reveal that most of the work in the area
Of marketing of financial services has been undertaken in countries like
USA and U. K. This area of research has not received much attention of the
Researchers in India. A few studies which have been conducted in India reveal
That no comprehensive study has been carried out to make a comparative
Analysis of marketing strategies of the public, private and foreign banks in
India. Thus, there is a need to carry out an in-depth study of the marketing
Strategies of the banks and their subsequent in pact upon customer
Awareness, requirements and satisfaction.

Sankaran M7 studied the measures that would help domestic players in

Financial services sector to improve their competitive efficiency, and there by
To reduce the transaction costs. The study found that a specific set of sources
Of sustainable competitive advantage relevant for Financial Service Industry
Are a) Product and process innovations, b) brand equity, c) positive influences
Of ‘Communication goods’, d) corporate culture, e) experience effects, f) scale
Effects and g) information technology.

Trevor Watkins8, while studying the current state of the financial

Services industry worldwide, identified four major trends: the trend towards
Financial conglomeration, Globalization, Information technology in bank
Marketing and new approaches to financial services marketing. These trends,
It was concluded, will effect the marketing of banks and other financial
Services in the 1990’s.

Studies have been made by various commissions and committees of

The Government of India covering important issues which are relevant to the
Marketing of bank services. The report of the Banking Commission under the
Chairmanship of Shree R.G. Saraiya9 submitted in 1972, contains

45
Recommendations for improvement in methods and procedures prevalent in
The Indian banking system for rendering efficient services to various types of
Customers.

Talwar Committee10, appointed in 1977, made 176 recommendations

Covering various aspects of customer service in banking. The National
Council of Applied Economic Research11 evaluated the improvement in
Customer service including implementation of guidelines of Finance Ministry,
Studied the customers’ complaint handling by customer service centres and
Emphasized its importance both to the customers as well as banks.
It suggested some remedial measures on falling standards of customer
Service. In 1990, RBI constituted a 14 member committee under the
Chairmanship of Shree M. N. Goiporia, to study the state of customer service
In commercial banks. The committee in its report, submitted on 5th December
1991, made 97 recommendations for improving customer service in banks.

B. N. Bhattacharya18, Koparkar19, Sreedar20 have dealt with marketing

In commercial banks. They have emphasized motivation research, marketing
Research and promotional aspects in marketing of services and suggested to
Improve the marketing strategies to cope with the changing environment.
Nascenzi21 pointed out that though bankers use market segmentation they
Were yet to identify and locate their best customers. He suggested that market
Segmentation must be used to define profitable target customers.

Popli, G S and Rao, D N (2010) conducted a brief study on the CRM

Implementation in Indian Banks at Delhi and found out private banks have
Implemented CRM more effectively compared to PSU banks. This revealed that
Private Banks are more innovative in understanding their customers and building
Good relations with system marketing. Dardad, Rashmi (2010) observed that CRM
is the new innovative marketing strategies in the Indian banking and emerged as a
powerful tool for effective management of customer needs and satisfaction.

Bhattacharya, Sujoy and Singh, Deepali (2010) analysed the CRM in Indian Retail

46
Banking with predictive purchase behaviour, predicative contact behaviour,
predicative
Retention behaviour, predicative response behaviour and predicative migration and
Defection behaviour. They concluded that all banks have realized the importance of
CRM but neither the time frame nor a road map is clear to them. They also
Suggested a clear road map for CRM implementation in Indian banking.
Mishra, Uma Shankar (2010) compared the service quality in between public and
Private sectors banks in India. He concluded that Indian banking has implemented
Service quality dimensions fully but still there is lot of scope to achieve service
Objectives. PSBs have to redefine their customer service parameters to compete with
Other banks. They have to minimize service gaps in expected service to perceived
Service.

Sharma, Nishi (2010) studied the CSR in Indian Banking. She studied that
Developed countries have incorporated CSR in their annual budget while in
Developing countries it is under implementation. She concluded that due to absence
Of stringent compliance and regulations, Indian banking has not adopted CSR in full
Sprit. While some of banks have implemented CSR as marketing tool to increase
Loyalty of customers. She also analysed the CSR practices and its reporting models in
Indian banking.

Ravichandran, K., Mat-Nor, Fauuzias and Mohd-Said, Rasidh (2010) analysed

the
efficiency and performance using CRAMEL (C-Capital Adequacy, R- Resources,
Asset Quality, M-Management Quality, E-Earning Quality, L-Liquidity ). They
Studied that the merger of selected public and private banks was initiated by market
Forces. They concluded that mergers did not seem to enhance the productive
Efficiency of the banks. Before mergers, two main parameters such as total advances
To deposits and profitability should be considered.

Singh, Rajesh Kumar (2009) focused on the Indian banking sector reforms and
Assessed selected bank-specific and macro-economic determinants (investment,
Advances, deposits and assets) which have significant effect on profitability. During
The last decade Indian banking sector has transformed with high level of technology,

47
Diversity and sophistication in products and services and improved efficiency. The
Broad-based reforms have made the banking sector competitive and positioned it to
Support sustained economic growth.

Nath, Prithwiraj, Mukherjee, Avinandan and Pal, Manabendranath (2009)

explored the linkage between strategic grouping and performance of the Indian
banking sector. They grouped the PSBs based on similar asset quality, operational
efficiency and profitability using the graphical display method of Co-plot. Relative
Performance of the banks in terms of their efficiency of converting the resources to
Financial outputs was obtained using Data Envelopment Analysis technique. They
Provide a framework to commercial banks to make the policy decisions informed
About their competitive positioning in the target market, develop long-term strategic
Focus and identify a benchmark for improving their performance.

Masood, Omar Bora Aktan and Sahil Chaudhary (2009) investigated the
integration and causal relationship between Rerun on Assets and Return on Equity
Of Saudi Banks. They found that there is a strong co-integration in between these
Two variables which reflect the bank profitability.

Dutta, Kirti and Dutta, Anil (2009) analysed the customer expectations and
Perceptions across the Indian Banking Industry through factor analysis and
Cronbach’s Alpha. They concluded that the expectations of bank customers are
Higher than their perceptions. The gap is wider in PSBs than foreign banks. Factor
Analysis showed that tangibility, assurance, empathy and reliability dimensions are
Explanatory variables predicting customer satisfaction. Tangibility factor has the
Highest impact on overall customer satisfaction.

Girdhar, Seema (2009) studied the relationship built through internal customer in
cooperative banks and concluded that the success of these type of banks depends on
The relationship. Such relationship will be possible through quality service by
Employees.

Uppal, R. K. (2009) conducted an empirical study on the customer service in Indian

Commercial banks and highlighted that highly satisfied and delighted customer is a

48
Very vital non-financial asset for bank. He studied PSBs, Private and Foreign Banks
Operating at Amritsar district of Punjab and concluded that customers have shifted to
Technology based banks for fast quality service.

Fatima, Johra Kayeser and Razzaque, Mohammed A, (2009) stressed the

customer–
Employee relationship. They conducted their study for private commercial banks in
Bangladesh. They found that despite general economic growth and increased amount
Of savings, there was no concomitant growth in the number of depositors. Banks
Have taken steps to attract customers and satisfy them by adopting service
Orientation. They focused to develop customer–employee relationship through
Suitable strategy and tactics and develop sustainable relationship with customers to
Improve their performance. Their study intends to identify the personal and social
Antecedents of customer involvement in the context of banking. Marketing of bank
Services has become increasingly competitive in many third world countries.

Jham, Vimi (2009) conducted empirical investigation of customer satisfaction with

Multi-channel banking and sought three major banking channels i.e. Branch
Banking, ATM and Internet banking. These channels have reduced the turnaround
Time of customer and bank and have also increased the customer satisfaction.

Das, Sh Kallol & Gupta, Hirak Das, (2009) focused on the Indian Banking system
And their Service Quality-CRM (Customer Relationship Management). They have
Revealed that CRM implemented in banks still needs significant improvement to
Increase marketing performance.

Zahid, Md. Shahidul Islam, (2008) studied the marketing of Private Bank in Dhaka
City. He contributed that banks should reinvent their marketing strategy for long
Term growth and for satisfaction of customers.

Lynette M. McDonald and Sharyn Rundle Thiele (2008) suggested that managers
Have to understand the CSR and its impact on the customer satisfaction. They
Studied the gaps in CSR implementation and its total impact on performance and its
Outcome for the organizations.

49
Gupta, S L and Mittal, Arun (2008) concluded that in India, PSBs are more reliable
but not up to mark in quality and innovation. While private sector banks are not
reliable due to hidden charges and false hidden information in advertising but they are
good at service quality. Both kinds of banks have adopted similar type of promotional
tools but private banks are adopting push strategies to attract and catch the customers.

Agnus Lind (2008) stressed that bank should implement relationship strategy to cater
to and facilitate the corporate. They should understand the underlying business model
of the corporate in order to support its full supply and demand chain. The treasury
plays an important role in the corporate dealing.

Jham, Vimi and Khan, Kaleem M. (2008) studied the customer satisfaction of five
banks based on financial distribution channel. They found that today banks are
offering their products and services through enchased distribution channels. The Place
among 7Ps is important in this intense competition and can generate customer
satisfaction through less time consumption.

Cornelia, Mitran Paula and Mihaela, Bebeselea (2008) have advised efficient
marketing strategies in the banking field during crisis conditions. The economic and
financial crisis during 2008 has created a propitious ground in which all banking
experts have to come out with efficient marketing strategies. The banks can
themselves measure their performance and design many service standards with good
marketing strategies. These marketing strategies should be aligned with social
responsibility to generate long term return for bank.

Kottler, Philip (2008), revealed that marketing management is related to products and
services according to customer needs and wants. He has described marketing mix i.e.
4Ps (Product, Price, Place, and Promotion). He has considered the marketing
management concepts and change in these concepts according to the environment. He
also narrated the importance of sales force and their control mechanism.

Verma, Satish and Saini, Rohit (2008) studied the level of competition and market
Power in Indian banking during 1992-2006. They found that Indian banking is

50
Characterized by a relatively higher degree of competition compared to that of
Counterparts particularly in the European countries. The average mark-up over
Marginal cost has been 10% during the said period. The foreign banks charge nearly
Twice the mark-up level as compared to PSBs and Private Banks. The average mark-
up
Level declined from 20% at the beginning of reforms to 5% in 2006, reflecting a
Sharp decline in market power.

Gopinath, Shyamala (2008) in her writing concentrated on the customer satisfaction

Issues. She provided complete picture about the banker’s relationship with customer
And suggested that to increase the customer satisfaction banks must strengthen its
Own grievance redressal machinery, insist on transparency in dealings with the
Customers and be reasonable in pricing.

Singh, P K and Pachory, Meenal (2008) studied the promotion mix in Indian
Banking and concluded that banks are implementing appropriate promotion mix to
Attract customers and creating brand loyalty.

Leeladhar, V. (2008) contributed on customer service by stressing on payment and

Settlement system in India. He said that payment and settlement system is the
Backbone of the financial sector and they should be offered to satisfy the customer.

Zeithaml, Valarie A. and Jobitner, Mary (2007), revealed that service marketing
Management should fill the gaps of expected service to perceived service. This can
Be achieved by adopting a comprehensive package of 7Ps (Products, Price, Place,
Promotion, People, Physical Evidence, Process) and also customize the Pre-Sale
Service to Post-Sale Service in order to deliver maximum satisfaction. For better
Understanding of the service marketing they have divided the service marketing and
Have provided important topics such as focus on the customer, listening to the
Customer requirements-GAPS model, aligning strategy, service design, delivering
And performing service and managing service promises by bridging all the gaps.

Sharma, Jyoti (2007) revealed that customer satisfaction and loyalty in Indian
Banking should be reviewed. Banks should create a service package to win
Customer’s loyalty through different marketing strategies.

51
Parthasarathi, B R (2005) stressed on the paramount importance of customer service
In banks and suggested some tools to deliver best customer service. He suggested
That a bank has to adopt innovative strategies to meet customer requirements by
Involvement of people.

Lakshminarasimha, and Murali, S (2006) suggested some measures based on 5

Dimensions viz. Tangibles (appearance of physical facilities, equipment and
Personnel); Reliability (ability to perform service dependably and accurately);
Responsiveness of bank personnel to various requests and demands of the
Customers, Assurance to customers as reflected through knowledge and trust of
People in the banks and finally Empathy caring of bank towards customers.

Sathye, Milind (2005) analysed the Indian government steps of dilution of equity in
PSBs from 1990 to improve efficiency and performance. He analysed the data from
1998-2005 on the parameters of deposit per employee with synchronic approach and
Historical approach. He concluded that these steps have deep impact on PSBs and
Have improved the performance and efficiency.

Ratnam, N Vijaya and Kumari, V Suguna (2005) stressed the importance of

Customer focus. They stated that from 1950 to 60, the focus was on serving the
Customer, between 1960- 1980, the focus was on satisfying the customers; during
1980-
90, the focus was on pleasing the customer, during 1990-2000, the focus was on
Delighting a customer and beyond 2000 focus has been on retaining the customer.
They have concluded that a satisfied customer is the best ambassador for a bank and
He must be served quick and immediate services.

Maher, Jill K. & Clark, John, (2005) implemented the SERVQUAL dimensions
Model to find the variations in service quality in banking sector. They advised to
Recognize intense competition well in advance and develop marketing strategies that
Differentiate themselves from the competitors. They should judge the service quality
Through service encounters and varying level of customer satisfaction.

52
The paper with title “Expectations and Perceptions of Service Quality in Old and
New Generation Banks- A study of select banks in the South Canara Region” by

Joshina, A.J. and Koshi, Moli. P. (2005) showed that service marketing was
Different from goods marketing because of inherent differences in service as
Compared to goods. The service was intangible, heterogeneous, production and
Consumption took place simultaneously and it was perishable. The results showed
The challenges based by the service business and had given rise to the need for new
Concepts and approaches for marketing and managing service businesses. New
Generation banks like ICICI, UTI Bank exceeded expectations of service quality in
Dimensions of reliability, empathy and price. In case of other dimensions like
Tangibility, responsiveness and assurance, there was negative gap in perception and
Expectations but it was much smaller in new generation banks than old generation
Banks.

Swarup, K. Santi (2004) studied Indian banking and its service quality. He
Suggested that for delivering quality service, it is imperative to have customer
Orientation as culture in the bank. Customer orientation builds long term relationship
Resulting in customer satisfaction and cash flows to the bank.

Machiraja, H.R. (2004), revealed that commercial banks play an important role in
The development of economy. Banks are the prime vehicle through which credit and
Monetary policies are transmitted to the whole economy. They deal in variety of
Assets and accommodate different type of borrowing. They accept deposits for short
Period and deploy the funds by way of loans and advances, overdraft, working
Capital requirements, purchase/ discount to industry. The banking system is
Classified into branch banking and unit banking. In branch banking the bank has
Different branches all over the country and in unit banking the bank operation is
Confined to a single office.

Bhaskar, P. V. Anantha (2004) has concluded that once good service is extended to
a customer, a loyal customer will work as an ambassador to the bank and facilitates

53
Growth of business. Ramesha, Hundekar, S.G. and Kumbar, B.D. (2004) reveal
that marketing strategies are the base to generate customer friendly banking services.
These offer broad– based service package to face stiff competition.

Singh, Sultan (2004) appraised the customer service in PSBs. He concluded that the
Level of customer service and satisfaction is determined by branch location and
Design, variety of service, rates and charges, systems and procedures, delegation and
decentralization, mechanization and computerization, competitive efficiency,
Complaint redressal and most important are staff skills, attitudes and responses.

The paper titled “Impact of Information Technology on the Indian Banking Sector” by
Soch, Harmeen K. and the purpose of the paper named “Impact of Information
Technology management practices on customer service”, by Karimi, Jahangir,
Somers, Toni M. and Gupta, Yash P. (2002) was to gauge whether IT management
practices differ among firms where IT has a major role in transforming marketing,
operations, or both, which gave the firms advantage by affecting customer service.

Several research hypotheses were tested using data obtained from a survey of IT-
leaders in the financial services industry. The results clearly indicated that the IT
leader firms had a higher level of IT management sophistication and a higher role for
their IT leaders compared to IT-enabled customer focus, IT-enabled operations focus,
and IT-laggard firms. The study concluded that IT management practices differed
among IT leader firms, IT-enabled customer focus, IT-enabled operations focus and
IT-laggard firms. This paper was silent on other aspects of IT like functional
integration, technological integration, etc., besides customer service.

In paper titled “Capturing the customer’s voice-A case study in banking” by

Bhattacharyya, S.K. and Rahman, Zillur (2002), customer needs and wants in a bank
were properly emphasized. Customer needs were categorized as Basic needs,
Performance needs and Excitement needs. The various banking services like
tangibility, reliability, competence, courtesy, understanding customers,
communication, access, responsiveness, credibility, and security; were related with

54
these needs. This paper helped to identify how customers perceived services of a
bank.

A paper titled “Technology-Key to success” by Sen, Ashish (1997), had discussed

About the importance of IT in banking. He said that the competition unleashed by the
Reforms process have improved the services of banks thus making them more
Customer-oriented. Technology has played an important role in making this happen.
Computerization in commercial banks has indeed travelled a long way. Starting with
Reconciliation of inter-branch transaction and providing whole-bank MIS reports, on
A selective basis, computerization was confined to bank head offices alone for quite
Some time. In subsequent phases, computerization spanned many areas including
Branches, back office and front office operations.

Use of modern, state of the art technology in banking, is being increasingly seen as
essential not only for good customer service, but also for good housekeeping.

55
 Chapter 4

Analysis and Interpretation of Data

1. Gender

Table 1:-
Particulars No. of respondents Percentage
Male 61 57.5%
Female 45 42,5%

Graph 1-

Gender

42.5%
male
57.5%
female

Interpretation:

The target respondents were 106. Out of which 61 were males and 45 females i.e. 57.5% are
males and 42.5% are females.

56
 2. Age

Table 2:–

Particulars No. of respondents Percentage

17-25 26 24.5%
25-40 38 35.8%
40-60 37 34.9%
Above 60 5 4.7%

Graph 2 -

Age
4.70%

24.50%
17-25
34.90% 25-40
40-60
Above 60
35.80%

Interpretation:

The target respondents were 106.

For age group 17-25 the number of respondents are 26 i.e. 24.5%,

For age group 25-40 the number of respondents are 38 i.e. 35.8%,

For age group 40-60 the number of respondents are 37 i.e. 35.9%, and

The number of respondents above 60 years of age are 5 i.e. 4.7%

57
 3. Occupation

Table 3:-

Particulars No. of respondents Percentage

Student 23 21.7%
Business 12 11.3%
Service 62 58.5%
Housewife 5 4.7%
Senior citizen 4 3.8%

Graph 3 –

Occupation
3.80%
4.70%

21.70% Student
Business
Service
11.30%
Housewife
58.50% Seniorcitizen

Interpretation:

Out of 106 respondents -

The number of respondents who were students were 23 i.e. 21.7%

The number of respondents who had their own business were 12 i.e. 11.3%,

The number of respondents who were in service were 62 i.e. 58.5%,

The number of respondents who were housewife were 5 i.e. 4.7%, and

The number of respondents who were senior citizen were 4 i.e. 3.8%.

58
 4. Average Monthly Income (INR)

Table 4:-

Particulars No .of respondents Percentage

Upton 20000 29 27.4%
20000-50000 23 21.7%
50000-100000 30 28.3%
100000-500000 17 16%
Above 500000 7 6.6%

Graph 4 –

Average Monthly Income (INR)

6.60%

16% Upto 20000

27.40%
20000-50000
50000-100000
100000-500000
28.30%
21.70% Above 500000

Interpretation:

Out of 106 respondents –

29 respondents i.e. 27.4% earn up to Rs 20000 per month,

23 respondents i.e. 21.7% earn between Rs 20000-50000 per month,

30 respondents i.e. 28.3% earn between Rs 50000-100000 per month,

17 respondents i.e. 16% earn between Rs 100000-500000 per month, and

7 respondents i.e. 6.6% earn Above Rs 500000 per month.

59
5. Which is your primary bank?

Table 5:-
Particulars No. of respondents
SBI 10
ICICI 10
HDFC 10
SVC Cooperative bank 15
Axis 10
Bank of India 10
Saraswat 4
Bank of Baroda 2
Canara bank 2
IDBI 3
Yes bank 4
Bharat bank 2
Vijaya bank 2
Standard charter bank 5
DBS 4
Union bank 3
Dena bank 5
Bank of Maharashtra 5

60
 6. How long have you been with your bank?

Table 6:-

Particulars No. of respondents Percentage

Less than 1 year 2 1.9%
1-5 years 29 27.4%
5-10 years 25 23.6%
More than 10 years 50 47.2%

Graph 6 –

How long have you been with your bank?

1.90%

27.40% Less than 1 year

47.20% 1-5 years
5-10 years
More than 10 years

23.60%

Interpretation:

Out of 106 respondents –

2 respondents i.e. 1.9% have been with their bank for less than a year,

29 respondents i.e. 27.4% have been with their bank for 1-5 years,

25 respondents i.e. 23.6% have been with their bank for 5-10 years, and

50 respondents i.e. 47.2% have been with their bank more than 10 years.

61
 7. Did advertisement play an important role in selecting your bank?

Table 7:-
Particulars No. of respondents Percentage
Yes 37 34.9%
No 69 65.1%

Graph 7 –

Dud advertisement play an important role

in selecting your bank

34.90%
Yes
No
65.10%

Interpretation:

Out of 106 respondents –

For 37 respondents i.e. for 34.9% advertisement played an important role while selecting
their primary bank, whereas,

For 69 respondents i.e. 65.1% advertisement did not play an important role while selecting
their primary bank.

62
 8. In how many banks do you have an account?
Table 8:-
Particulars No. of respondents Percentage
1 19 17.9%
2 56 52.8%
3 21 19.8%
4 4 3.8%
5 6 5.7%

Graph 8 –

In how many banks do you have an

account?
5.70%
3.80%

17.90%
1
2
19.80%
3
4

52.80% 5

Interpretation:

Out of 106 respondents –

19 respondents i.e. 17.9% have account in one bank only,

56 respondents i.e. 52.8% have account in two banks,

21 respondents i.e. 19.8% have account in 3 banks,

4 respondents i.e. 3.8% have account in 4 banks, and

6 respondents i.e. 5.7% have account in 5 banks.

63
9. What is the convenient way of banking?
Table 9:-
Particulars No. of respondents Percentage
Branch visit 21 19.8%
Net banking 54 50.9%
Relationship manager 0 0
Mobile apps 30 28.3%
Telephone banking 1 0.9%

Graph 9 –

What is the convenient way of banking?

0.90%

19.80%
Branch visist
28.30%
Net banking
Realationship manager
Mobile apps
0%
Telephone banking
50.90%

Interpretation:
Out of 106 respondents –
19.8% i.e. 21 respondents feel branch visit is the convenient way of banking,
50.9% i.e. 54 respondents feel net banking is the convenient way of banking,
28.3% i.e. 30 respondents feel mobile apps is the convenient way of banking,
Only 1 respondent i.e. 0.9% feel telephone banking is the convenient way of banking,
and
Zero respondent agree that relationship manager is the convenient way of banking.

64
10.How often do you use these services of your bank per month?

Table 10:-

Particulars Never Once a 2-5 times 5-10 times More than

month 10 times
Branch 30 55 18 2 1
banking
Net 20 18 51 13 4
banking
ATM 15 20 60 6 5
Mobile 24 19 39 20 4
banking
Telephone 81 16 7 0 2
banking

Graph 10 –

How often do you use these services of

your bank per month?
90
80
70
60 Never
50 Once a month
40 2-5 times
30 5-10 times
20
More than 10 times
10
0
BRANH NET BANKING ATM MOBILE TELPHONE
BANKING BANKING BANKING

65
Interpretation:
 In case of branch banking- 30 respondents never use branch banking, 55 use it
once a month, 18 use it 2-5 times a month, 2 use it 5-10 times, and only 1
respondent uses branch banking 10 times a month.
 In case of net banking – 20 respondents have never used net banking, 18 use it
once a month, 51 use it 2-5 times a month, 13 use it 5-10 times a month, and 4
use it more than 10 times a month.
 In case of ATM – 15 respondents have never used ATM, 20 use it once a
month, 60 use ATM 2-5 times a month, 6 use it 5-10 times a month, and 5 use
ATM more than 10 times a month.
 In case of mobile banking – 24 respondents have never used mobile banking,
19 use it once a month, 39 use it 2-5 times a month, 20 use it 5-10 times a
month, and 4 use mobile banking more than 10 times a month.
 In case of telephone banking – 81 respondents have never used telephone
banking, 16 use it once a month, 7 use it 2-5 times a month, no respondent
uses telephone banking 5-10 times a month, and 2 use telephone banking more
than 10 times a month.

66
11.What do you like about bank advertisement?
Table 11:-
Particulars No. of respondents Percentage
Creativity 36 34.3%
Information about the 78 74.3%
product or service
Brand ambassador 14 13.3%
A level of consumer 43 41%
interaction
Humour 16 15.2%
Theme 17 16.2%
Graph 11 –

What do you like about bank

advertisement?
CREATIVITY 34.30%

INFORMATION ABOUT PRODUCTION OR SERVICE 74.30%

BRAND AMBASSADOR 13.30%

A LEVEL OF CONSUMER INTERACTION 41%

HUMOUR 15.20%

THEME 16.20%

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

Interpretation:
Out of 106 respondents –
74.3% i.e. 78 respondents like information about products or services in an
advertisement,
41% i.e. 43 respondents like a level of consumer interaction in an advertisement,
34.3% i.e. 36 respondents like creativity in an advertisement,
16.2% i.e. 17 respondents like theme of an advertisement,
15.2% i.e. 16 respondents like humour in an advertisement, and
13.3% i.e. 14 respondents like brand ambassadors in and advertisement.

67
 12. What type of advertisements are influential on your buying behaviour?
Table 12:-
Particular No. of respondents Percentage
Radio ads 12 11.4%
TV ads 66 62.9%
Email or posts 25 23.8%
Newspaper or magazines 51 48.6%
Online ads 43 41%
Billboards 16 15.2%
Graph 12 –

What types of advertisment are influential

on your buying behaviour?
RADIO ADS 11.40%

TV ADS 63%

EMAIL OR POSTS 24%

NEWSPAPER OR MAGAZINES 49%

0

ONLINE ADS 41%

BILLBOARDS 15.20%

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

Interpretation:

Out of 106 respondents –

For 63% i.e. 66 respondents TV ads are influential,

For 49% i.e. 51respondents ads in newspaper or magazines are influential,

For 41% i.e. 43respondents online ads are influential,

For 24% i.e. 25respondents ads via email or posts are influential,

For 15.2% i.e. 16respondents ads on billboards are influential,

For 11.4% i.e. 12respondents radio ads are influential.

68
13. Which channels do you use to handle the following activities?
Table 13:-
Particulars Net banking Mobile apps Branch visit Telephone
banking
Transfer funds 59 23 23 1
from one
account to
another
Transfer funds 41 36 29 0
to another
person
Pay bills 37 59 10 0
International 46 12 46 2
money
transfer
Balance 34 56 12 4
enquiry
Apply for a 12 12 80 2
loan
Update 29 30 46 1
account details

69
Graph 13

Which channels do you use

90
80
70
60
50
40
30 Net banking
20
10 Mobile apps
0 Branch visit
Telephone banking

Interpretation:

 In case of transferring funds from one account to another- 59 use net banking 23 use
mobile apps, 23 visit branch, and 1 respondent uses telephone banking.
 In case of transferring funds to another person- 41 respondents use net banking, 36
use mobile apps, 29 visit branch, no one use telephone banking.
 In case of paying bills- 37 respondents use net banking, 59 use mobile apps, 10 visit
branch, and no one uses telephone banking.
 In case of international fund transfer- 46respondents use net banking, 12 use mobile
apps, 46 respondents visit branch, and 2 use telephone banking.
 In case of applying of loan- 12 respondents use net banking, 12 use mobile apps, 80
respondents visit branch, and 2 use telephone banking,
 In case of balance enquiry-34 respondents use net banking, 56 use mobile apps, 12
visit branch, and 4 use telephone banking.
 In case updating account details- 20 respondents use net banking, 30 use mobile apps,
46 visit branch, and 1 respondent uses telephone banking.

70
14.Would you go for net banking service if following services were offered?
Table 14:-
Particulars Yes No
Stronger data security 97 9
Ease in 98 8
login/authentication
process
Track on different account 89 17
simultaneously
Discounted fees for 94 12
certain services
Graph 14 –

Would you go for net banking service if following

features were offered?
120
97 98 94
100 89
80
60
40
17 12
20 9 8
Yes
0
No

Interpretation:
 If stronger data and security is offered 97 respondents will use net banking
whereas, 9 respondents won’t go for net banking.
 If ease in login feature is offered then 98 respondents will use net banking
whereas 8 respondents won’t use net banking.
 If keeping track on different accounts simultaneously is possible then 89
respondents will use net banking whereas 17 won’t use net banking.
 If discount is offered on certain service then 94 respondents will use net
banking, whereas 12 won’t use net banking.

71
 15. Are you satisfied with the innovative services and products offered by
your bank?

Table 15:-
Particulars No. of respondents Percentage
Yes 94 88.7%
No 12 11.3%

Graph 15 –

Are you satsified with the innovative services and

products offered by your bank?

11.30%

Yes
No

88.70%

Interpretation:
Out of 106 respondent
88.7% i.e. 94 respondents are satisfied with innovative products and service offered by their
banks, whereas,
11.3% i.e. 12 respondents are not satisfied with innovative services and products offered by
their banks.

72
 Chapter 5
Findings and Conclusion

5.1 Findings:

 The target respondents were 106. Out of which 61 were males and 45 females i.e.
57.5% are males and 42.5% are females.
 The target respondents were 106 - For age group 17-25 the number of respondents are
26 i.e. 24.5%, For age group 25-40 the number of respondents are 38 i.e. 35.8%, For
age group 40-60 the number of respondents are 37 i.e. 35.9%, and The number of
respondents above 60 years of age are 5 i.e. 4.7%
 Out of 106 respondents - The number of respondents who were students were 23 i.e.
21.7%, The number of respondents who had their own business were 12 i.e. 11.3%,
The number of respondents who were in service were 62 i.e. 58.5%, The number of
respondents who were housewife were 5 i.e. 4.7%, and The number of respondents
who were senior citizen were 4 i.e. 3.8%.
 Out of 106 respondents –29 respondents i.e. 27.4% earn up to Rs 20000 per month, 23
respondents i.e. 21.7% earn between Rs 20000-50000 per month, 30 respondents i.e.
28.3% earn between Rs 50000-100000 per month, 17 respondents i.e. 16% earn
between Rs 100000-500000 per month, and 7 respondents i.e. 6.6% earn Above Rs
500000 per month.
 Out of 106 respondents – 2 respondents i.e. 1.9% have been with their bank for less
than a year, 29 respondents i.e. 27.4% have been with their bank for 1-5 years, 25
respondents i.e. 23.6% have been with their bank for 5-10 years, and 50 respondents
i.e. 47.2% have been with their bank more than 10 years.
 Out of 106 respondents –For 37 respondents i.e. for 34.9% advertisement played an
important role while selecting their primary bank, whereas, For 69 respondents i.e.
65.1% advertisement did not play an important role while selecting their primary
bank.

73
 Out of 106 respondents –19 respondents i.e. 17.9% have account in one bank only,56
respondents i.e. 52.8% have account in two banks, 21 respondents i.e. 19.8% have
account in 3 banks, 4 respondents i.e. 3.8% have account in 4 banks, and
 Out of 106 respondents –19.8% i.e. 21 respondents feel branch visit is the convenient
way of banking, 50.9% i.e. 54 respondents feel net banking is the convenient way of
banking, 28.3% i.e. 30 respondents feel mobile apps is the convenient way of
banking, Only 1 respondent i.e. 0.9% feel telephone banking is the convenient way of
banking, and Zero respondent agree that relationship manager is the convenient way
of banking.
 In case of branch banking- 30 respondents never use branch banking, 55 use it once a
month, 18 use it 2-5 times a month, 2 use it 5-10 times, and only 1 respondent uses
branch banking 10 times a month. In case of net banking – 20 respondents have never
used net banking, 18 use it once a month, 51 use it 2-5 times a month, 13 use it 5-10
times a month, and 4 use it more than 10 times a month. In case of ATM – 15
respondents have never used ATM, 20 use it once a month, 60 use ATM 2-5 times a
month, 6 use it 5-10 times a month, and 5 use ATM more than 10 times a month. In
case of mobile banking – 24 respondents have never used mobile banking, 19 use it
once a month, 39 use it 2-5 times a month, 20 use it 5-10 times a month, and 4 use
mobile banking more than 10 times a month. In case of telephone banking – 81
respondents have never used telephone banking, 16 use it once a month, 7 use it 2-5
times a month, no respondent uses telephone banking 5-10 times a month, and 2 use
telephone banking more than 10 times a month.
 Out of 106 respondents –74.3% i.e. 78 respondents like information about products or
services in an advertisement, 41% i.e. 43 respondents like a level of consumer
interaction in an advertisement, 34.3% i.e. 36 respondents like creativity in an
advertisement, 16.2% i.e. 17 respondents like theme of an advertisement, 15.2% i.e.
16 respondents like humour in an advertisement, and 13.3% i.e. 14 respondents like
brand ambassadors in and advertisement.
 Out of 106 respondents - For 63% i.e. 66 respondents TV ads are influential, For 49%
i.e. 51respondents ads in newspaper or magazines are influential, For 41% i.e.
43respondents online ads are influential, For 24% i.e. 25respondents ads via email or
posts are influential, For 15.2% i.e. 16respondents ads on billboards are influential,
For 11.4% i.e. 12respondents radio ads are influential.

74
 In case of transferring funds from one account to another- 59 use net banking 23 use
mobile apps, 23 visit branch, and 1 respondent uses telephone banking. In case of
transferring funds to another person- 41 respondents use net banking, 36 use mobile
apps, 29 visit branch, no one use telephone banking. In case of paying bills- 37
respondents use net banking, 59 use mobile apps, 10 visit branch, and no one uses
telephone banking. In case of international fund transfer- 46respondents use net
banking, 12 use mobile apps, 46 respondents visit branch, and 2 use telephone
banking. In case of applying of loan- 12 respondents use net banking, 12 use mobile
apps, 80 respondents visit branch, and 2 use telephone banking, In case of balance
enquiry-34 respondents use net banking, 56 use mobile apps, 12 visit branch, and 4
use telephone banking. In case updating account details- 20 respondents use net
banking, 30 use mobile apps, 46 visit branch, and 1 respondent uses telephone
banking.
 If stronger data and security is offered 97 respondents will use net banking whereas, 9
respondents won’t go for net banking. If ease in login feature is offered then 98
respondents will use net banking whereas 8 respondents won’t use net banking. If
keeping track on different accounts simultaneously is possible then 89 respondents
will use net banking whereas 17 won’t use net banking. If discount is offered on
certain service then 94 respondents will use net banking, whereas 12 won’t use net
banking.
 Out of 106 respondent - 88.7% i.e. 94 respondents are satisfied with innovative
products and service offered by their banks, whereas, 11.3% i.e. 12 respondents are
not satisfied with innovative services and products offered by their banks.

75
 5.2 Conclusion:

The increasing competition in the marketplace of Banking products and services has resulted
in innovating new strategies to tap potential customers. In the existing red ocean of vast
availability of varied Banking products and services from a number of Banks, the need to
reach out and garner customers through innovative advertising has gained momentum. Under
the pressures of a vast converging market and competitive forces, the task of attracting
customers, attaining customers and retaining customers’ calls for a higher standard of market
expertise and understanding. This is very much required in the Financial Services Market. In
retail banking, some brands which seem intrinsically uninteresting must be presented through
innovative advertising in order to build relationships and create brands. This innovation in
advertising is happening and will continue, because it is the only solution provider to build
and better customer relationship and to create a demand beyond the marketplace of existing
demand-a Blue Ocean. Through conventional advertising most banks engage in tends to
concentrate on awareness and product features rather than relationship building and
establishing trite brand values. As banking institutions gradually become ever more
aggressively marketed, finding the most appropriate, innovative and creative solutions to
clients’ marketing needs will remain the most important competitive advantage. As revealed
by the study, Banks that have taken the lead in creating innovative advertising have leveraged
onto increased demand by creating a Blue Ocean.

As enunciated in the findings, the Indian Banking Sector is unfolding further and opening the
floodgates to innovative advertising and thereby ideal 21st century marketing. A study of the
various innovative advertisements in tune with the innovations in the Banking sector and the
changing needs and preferences as studied in the context of the Indian scenario in the current
timeframe, directs our attention to the increasing segment of population that is coming into
the fold of Banking products and services and the scope for increased market share and size
through innovative advertising. Customer behaviours and expectations are quickly adjusting
to a world where products and services are recommended based on past behaviours and
where location-based offers are provided instantaneously on their mobile device. Customers
don’t want to go to branches or do banking. They want financial information and the ability
to transact fingertip-ready. They crave for the best and this best has to be well communicated

76
through innovative advertising that reaches out in a timely manner and succeeds in evoking
the desired response.

A study of the data gathered with respect to innovative advertising by various Banks with
respect to their products and services and the analysis of the response to the questionnaire
reveals the importance of innovative advertisements in the Banking sector. It also casts light
on the various innovative advertisements in the Banking sector that have succeeded in
making a mark and creating an impact. The results of innovative advertising that serves to
transform demand by steering it towards purposive action has been well enumerated and
explained. Innovative advertising is the way forward for the Banking sector to reach out and
to deliver.

77
 Chapter 6
Suggestions

 The bank advertisement are influential but not a larger level. The banks need
to be more creative while advertising their products and service.
 There are few innovative products and services which people are not aware of
as they were not advertised on a larger scale. Banks need to advertise these
products so as to capture a larger market area.
 Banks need to add more features in their products and services and make them
safer and easier for people to use.

78
 Chapter 7
Bibliography
 References:
 M. Bhuvana, P. G. Thirumagal and S .Vasantha, Big Data Analytics - A Leveraging
Technology for Indian Commercial Banks, Indian Journal of Science and Technology,
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 Saranya. J1, Anitha. K 2, Dr. S.Vasantha, An Empirical Study on Role of ICT in
Banking Sector,IJMCR, Vol 2 Apr 2014
 KPMG Report, Interdependence of Emerging Technology on next-generation
banking, January 2017
 KPMG Report, Digital Banking, Feb 2016
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 https://www.npci.org.in/
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digital-banking-in-india-thanks-to-these-startups/#5489c2374a17
 https://www.vccircle.com/what-blockchain-and-why-icici-bank-s-use-it-big-deal/
 http://www.indiabitcoin.com/reserve-bank-of-india-successfully-tests-blockchain-
technology/
 http://www.idrbt.ac.in/assets/publications/Best%20Practices/BCT.pdf
 https://www.icicibank.com/aboutus/article.page?identifier=news-icici-bank-
introduces-software-robotics-to-power-banking-operations-20160809103646464
 http://www.thehindu.com/business/Industry/ICICI-Bank-deploys-software-
robots/article14628465.ece
 http://trak.in/tags/business/2017/01/30/hdfc-bank-automation-humanoid-ira/

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 https://analyticsindiamag.com/analytics-in-indian-banking-sector-on-a-right-track/
 http://computer.expressbpd.com/news/dbs-bank-launches-indias-first-mobile-only-
virtual-bank-powered-by-artificial-intelligence-and-aaadhar/17291/
 https://letstalkpayments.com/a-glimpse-into-the-future-of-banking-indias-first-bank-
in-an-app/
 https://letstalkpayments.com/a-list-of-mobile-only-banks/

 Websites:

 https://economictimes.indiatimes.com/small-biz/money/digitizing-lending-blue-
ocean-in-banking-sector/articleshow/48784910.cms
 https://www.ukessays.com/essays/marketing/role-of-advertisement-in-financial-
sector-marketing-essay.php
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.researchgate
.net/publication/297343750_Yes_Bank_Future_Banking&ved=2ahUKEwjfkvGnxPL
gAhXNZCsKHbJWD0wQFjAHegQIBxAB&usg=AOvVaw0CSOo3Rqq2MWRAwO
otkZf1
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://wap.business-
standard.com/article-amp/management/finding-blue-oceans-
109111700010_1.html&ved=2ahUKEwjfkvGnxPLgAhXNZCsKHbJWD0wQFjAGeg
QICRAB&usg=AOvVaw3Sem4FjNSVnT5aBg813QLN&ampcf=1
 https://goo.gl/images/sifYyf
 https://goo.gl/images/sFpq2R
 https://goo.gl/images/cXrUXx
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://m.economictimes.
com/industry/banking/finance/banking/hdfc-bank-clocking-rs-1000-cr-in-digital-loan-
sales-launches-online-loans-against-
mfs/amp_articleshow/64293171.cms&ved=2ahUKEwjA14PUxvLgAhWHe30KHaYe
Da8QFjACegQIBRAB&usg=AOvVaw3NwYQVVgK5agAcrdXq4swk&ampcf=1
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://en-
gb.facebook.com/business/success/hdfc-
bank&ved=2ahUKEwitxeWpx_LgAhXGYH0KHbO6An4QFjAQegQIARAB&usg=
AOvVaw3YWAE4AKEC6R5D0rJUDQf1

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 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.exchange4
media.com/amp/marketing-news/promotions-to-mark-hdfc-bank-strategy-
10567.html&ved=2ahUKEwitxeWpx_LgAhXGYH0KHbO6An4QFjAAegQIBBAB
&usg=AOvVaw1vTZJP5EHumOTFosgE9b4B&ampcf=1

 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.livemint.co
m/Consumer/fiRpsiXFHRG2FiGi1zvhIK/Kotak-Mahindra-Banks-ad-campaign-with-
Ranveer-Singh-
centres.html%3Ffacet%3Damp&ved=2ahUKEwiJlfLQyPLgAhUYcCsKHbm4D18Q
FjAGegQICRAB&usg=AOvVaw1PkkgAz_0chUNR0NwCiYGF&ampcf=1
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.afaqs.com/n
ews/story/24620_Kotak-Mahindra-to-
simplify&ved=2ahUKEwjvxsDCyfLgAhXUe30KHU-
hDooQFjAFegQIBxAB&usg=AOvVaw0NxeFkgUa0DN_V5mX7kC2b
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.forbes.com/
sites/stevedenning/2017/09/24/moving-to-blue-ocean-strategy-a-five-step-process-to-
make-the-
shift/amp/&ved=2ahUKEwj23dv7yfLgAhXHV30KHTX_DksQFjAHegQICBAB&us
g=AOvVaw0AlqWtWB9rKJZr8WFqhzmq&ampcf=1
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=http://www.ft.lk/special-
report/blue-ocean-strategy-and-the-banking-industry/22-
557855&ved=2ahUKEwiU7OuUy_LgAhVHfysKHS4mA94QFjACegQIAhAB&usg
=AOvVaw0_XUdvnESk0bzRJjtBU4BI
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://brandequity.econo
mictimes.indiatimes.com/amp/news/advertising/state-bank-of-indias-cash-ki-aadat-
badlo-ad-campaign-wants-you-to-go-
cashless/56871757&ved=2ahUKEwjRgqfLy_LgAhXKbSsKHf2sDdQQFjACegQIBR
AB&usg=AOvVaw3FZHciyyhhu6AdfKuzH-w3&ampcf=1
 https://www.google.co.in/url?sa=t&source=web&rct=j&url=https://www.blueoceanst
rategy.com/bos-
moves/jcdecaux/&ved=2ahUKEwixpsDrzPLgAhVDaCsKHWwSA_oQFjAKegQIAh
AB&usg=AOvVaw2EcOAwekyJDPnD1zs5D15c

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 Chapter 8
Annexure
A study of Innovative advertisement creating blue ocean strategy with respect to
banking products and services.

1. Name
2. Gender
Mark only one oval.
a) Male
b) Female

3. Age
Mark only one oval.
a) 17-25
b) 25-40
c) 40-60
d) Above 60

4. Occupation
Mark only one oval.
a) Student
b) Business
c) Service
d) Housewife
e) Senior citizen

5. Average Monthly Income (INR)

Mark only one oval.
a) Up to 20000
b) 20000-50000
c) 50000-100000
d) 100000-500000
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 e) Above 500000
6. Which is your primary bank?

7. How long have you been with your bank?

Mark only one oval.
a) Less than 1 year
b) 1-5 years
c) 5-10 years
d) More than 10 years

8. Did advertisement play an important role in selecting your bank?

Mark only one oval.
a) Yes
b) No

9. In how many banks do you have an account?

Mark only one oval.
a) 1
b) 2
c) 3
d) 4
e) 5

10. What is the convenient way of banking?

Mark only one oval.
a) Branch visit
b) Net banking
c) Relationship manager
d) Mobile apps
e) Telephone banking

83
11. How often do you use these services of your bank per month?
Never Once a month 2-5 times 5-10 times More than 10 times
a) Branch banking
b) Net banking
c) ATM
d) Mobile apps
e) Telephone banking

12. What do you like about bank advertisement?

Check all that apply.
a) Creativity
b) Information about the product or service
c) Brand ambassador
d) A level of consumer interaction
e) Humour
f) Theme

13. What types of advertisements are influential on your buying behaviour?

Check all that apply.
a) Radio ads
b) TV ads
c) Email or posts
d) Newspaper or magazines
e) Online ads
f) Billboards

84
14. Which channels do you use to handle the following activities?
Mark only one oval per row.
Net banking Mobile apps Branch visit Telephone banking
a) Transfer funds from one
account to another.
a) Transfer funds to another person
b) Pay bills
c) International money transfer
d) Balance inquiry
e) Apply for a loan
f) Update account details

15. Would you go for net banking service if following features were offered?
Mark only one oval per row.
Yes No
a) Stronger data security
b) Ease in login / authentication process
c) Track on different account simultaneously
d) Discounted fees for certain services

16. Are you satisfied with the innovative service and products offered by your bank? *
Mark only one oval.
a) Yes
b) No

85