Innovation, Customisation Are Critical Growth Drivers

Mumbai, November 27: | Updated: Nov 28 2002, 05:30am hrs
Plain vanilla products are no longer able to attract customers and foster growth. For this purpose, banks are constantly innovating and improvising on their product offerings. High value individuals are every bankers cherished clients and customisation has become the buzz word when it comes to these clients. "Innovation has become an industry phenomenon and new innovative products do not surprise anyone. Information technology and proliferating delivery platforms are the key drivers of innovative banking practices," said the State Bank of Indias chief general manager, TS Bhattacharya speaking at 4th international exhibition and conference organised by Exhibitions India Pvt Ltd. He also added that the Reserve Bank of India encourages banks to adopt new technologies and become competitive by global standards.

Speaking at the session on customer acquisition and retention IndusInd Banks executive vice-president, Jayanta K Basu said: "A good customer should not change his shop and a good shop should not change its customers. Customer retention is the key to success of a bank and a customer with multiple accounts is much easier to retain." He also added that if a customer uses more than one service from the same bank he is likely to remain with the bank as he knows the bank very well.

"We often try to force solutions on customers as they suit us. We should not do that, but make sure that we deliver what the customer wants," said India Switch Companys chief operating officer, Mani Mamallan. He also added: "We are moving from a living front-end model to a non-living front-end model and it is now imperative to do so. However, we must keep in mind that we still have the requisite amount of human touch in the system."

KPMG Consulting Pvt Ltd associate director, S Mahesh said: "Level of customisation of products of every need of the customer is a very important feature of private banking, especially at a time when all are talking about commoditisation of products in this sector. A true private banker is one which makes you wonder if you are the only client." He said that apart from differentiation, the quality of information and advisory services provided is the key to success.