CHAPTER VI SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION

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1 CHAPTER VI SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION 6.1 INTRODUCTION The study was aimed at marketing of banking service in Salem District. An attempt was made to find out the problems encountered by the respondents. The study was conducted in the Salem district by selecting 375 customers and 125 bank officials who are in and around Salem district. Field survey method and personal interview technique were employed to collect information. The data thus, collected were subdued into suitable tabular forms for drawing inferences. Quantitative techniques like average, percentage, range, two-way tables, chisquare tests and weighted average were applied as and when found necessary. The level of satisfaction was identified by means of a scoring scheme. In this chapter, an attempt has been made to recapitulate the key findings, suggestions and conclusion. 6.2 FINDINGS RELATING TO THE PERSONAL PROFILE FACTORS OF CUSTOMERS It is inferred from the analysis that majority of the respondents are male, belong to the age group of yrs and are rural customer The study reveals that the 49.5 percent of the customers maintain account with Indian Bank, 21.3 percent of the customers maintain account with Indian Overseas Bank and 27.5 percent of them maintain account with State Bank. It is concluded that majority 36.8 percent of the customers having period of 6-10 yrs relationship with bank and majority 57.3 percent of the customers are motivated by their friends 227

2 It is found from the study that majority 72.5 percent of the customer the types of account is savings bank and 27.5 percent of them the types of account is are Current A/c and the Reasons for opening account Nearness It is found from the study that majority of the respondents are 84.3 percent do not availed any loan Majority of the respondents (65.9 percent) stated that the Time taken for withdrawal of cash is Less than 20 minutes and the Time taken for depositing money is20-30 minutes It is found from the study that 40.7 percent of the customer stated that the Time taken for processing loan application is Less than 15 days and 95.7 percent of the customer stated that the Opinion about preferred bank timings is 8 am to 8 pm and 98.7 percent of the customer stated that the there is no complaint in the banks. Majority of the respondents never avail the Bank cheque book, Travelers cheque, Gift cheque, Mail transfer, Cheque clearing, Overdraft and Other services and occasionally avail the bank Demand draft. Thus, it is inferred from the analysis that the maximum frequency of availing bank services was Bank cheque book. Majority of the respondents are very much satisfied about the Furniture and Provision and Technology used, satisfied about bank interior decoration, forms used and clarity in passbook entries, neutral about counter designs, timely issue of cheque book and method of treating customers. Majority of the respondents strongly agree about the reasonable business hours, Flexibility in bank operation and maintaining legitimate secrecy in 228

3 banks and agree about Bank located in accessible place and information given by banks are accurate It is found from the study that majority of the respondent s opinion is highly reasonable about the general service charges, time taken for remitting cash and reasonable about time taken for withdrawal of cash, time taken for clearance of cheque, providing information about bank transactions and helping in getting special provision facilities Regarding grievances handling it is found from the study that majority of the respondent s opinion is not at all reasonable about method of maintaining complaint boxes, method of hearing grievances, method of disposing grievances, attitude of officials after making complaints, general behaviour of staff towards customers, personalized services for redressal 6.3 Findings Relating to the Association between Location of the Bank, Bank in which Account is Maintained, Types of Account, Time taken for withdrawal of Cash and Depositing Money In order to find the relationship between the Location of the Bank and Time taken for withdrawal of cash, a chi-square test was used and result of the test is shown there is highly significant association between the Location of the Bank and Time taken for withdrawal of cash, Location of the Bank and Time taken for depositing money, Bank in which account is maintained and Time taken for withdrawal of cash, Bank in which account is maintained and Time taken for depositing money and significant association between the Type of account and Time taken for depositing money 229

4 The study reveals that the there is no significant difference in the mean scores of gender, age and Opinion about preferred bank timings, Period of relationship with bank, Time taken for depositing money regarding Availing Bank Services but there is significant difference in the mean scores of the Bank in which account is maintained and Time taken for withdrawal of cash regarding Availing Bank Services Regarding Location and Timings it is found from the analysis that there is no significant difference in the mean scores among gender, Opinion about preferred bank timings, Bank in which account is maintained and Period of relationship with bank regarding Location and Timings. But there is significant difference in the mean scores among location of the respondents; hence the mean satisfaction regarding Location and Timings is more among the rural respondents. Similarly there is significant difference in the mean scores is found from age group, Time taken for withdrawal of cash, Time taken for depositing money. Regarding Cost of Services it is found from the analysis that there is no significant difference in the mean scores among gender regarding Cost of Services. But there is significant difference in the mean scores among location of the respondents; hence the mean satisfaction regarding Cost of Services is more among the rural respondents. Similarly there is significant difference in the mean scores is found from age group, Opinion about preferred bank timings, Bank in which account is maintained, Period of relationship with bank, Time taken for withdrawal of cash, Time taken for depositing money 230

5 6.4 Findings relating to the effect of personal variables on Availing Bank Services From the multiple regression analysis the effect of personal variables namely location of banks, period of relationship with banks, time taken withdrawal of cash, time taken for depositing money is found on Availing Bank Services (dependent variable). From the customers of Indian bank no independent variables have significant effect on the dependent variable of Availing Bank Services. But it is observed from the analysis that the Period of Relationship with Bank has significant effect on Availing Bank Services among the customers of Indian overseas bank. Similarly form the customers of State bank the independent variables of Gender, Location of Bank, Time taken for withdrawal of cash and Time taken for depositing money have significant effect on the dependent variable of Availing Bank Services. 6.5 Findings relating to the effect of personal variables on Amenities and Services From the multiple regression analysis the effect of personal variables namely location of banks, period of relationship with banks, time taken withdrawal of cash, time taken for depositing money is found on Amenities and Services (dependent variable). Form the customers of Indian bank the independent variables of period of relationship with banks, time taken withdrawal of cash, time taken for depositing money have significant effect on the dependent variable of Amenities and Services. Similarly it is observed from the analysis that the only Location has significant effect on Amenities and Services among the customers of 231

6 Indian overseas bank and no independent variables have significant effect on the dependent variable of Amenities and Services among State bank customers. 6.6 Findings relating to the effect of personal variables on Location and Timings From the multiple regression analysis the effect of personal variables namely location of banks, period of relationship with banks, time taken withdrawal of cash, time taken for depositing money is found on Location and Timings (dependent variable). From the customers of Indian bank the independent variables of age, period of relationship with banks, time taken withdrawal of cash, time taken for depositing money have significant effect on the dependent variable of Location and Timings. Similarly it is observed from the analysis that the only time taken withdrawal of cash, time taken for depositing money have significant effect on Location and Timings among the customers of Indian overseas bank and the independent variables of location & time taken withdrawal of cash have significant effect on the dependent variable of Location and Timings among State bank customers. 6.7 Findings relating to the effect of personal variables on Cost of Services From the multiple regression analysis the effect of personal variables namely location of banks, period of relationship with banks, time taken withdrawal of cash, time taken for depositing money is found on Cost of Services (dependent variable). Form the customers of Indian bank all the independent variables of age, period of relationship with banks, time taken withdrawal of cash, time taken for depositing money have significant effect on the dependent variable of Cost of Services. Similarly it is observed from the analysis that age, Period of 232

7 Relationship with Bank, time taken for withdrawal of cash, time taken for depositing money have significant effect on Cost of Services among the customers of Indian overseas bank and the independent variables of location & time taken withdrawal of cash, Time taken for depositing money have significant effect on the dependent variable of Cost of Services among State bank customers. 6.7 Findings relating to the Discriminant analysis Discriminant function attempts to find the linear combinations of the predictors that best separate the populations. It is seen from the analysis that nearly 38.5 % of the variation in the Discriminant Function is due to General Service charges, which contributes maximally, in discriminating between opinions of the customer of three banks. Next comes, Gift cheque ore, which contributes about 37.9 % in discriminating between the opinion of the customer of three banks followed by Bank located in accessible place and Business hours are reasonable 6.8 FINDINGS RELATING TO THE PERSONAL PROFILE FACTORS OF OFFICERS It is inferred from the analysis that majority of the officers are from Indian bank belonging to the age group of yrs and the location of the bank is rural, 40.8 percent of officers are under graduate, 45.6 percent of them have studied up to Post Graduate having work experience of years. 6.9 Findings relating to the Opinion about service provided It is inferred from the analysis that majority of the officers Strongly agree about the reasonable Quick Service, Customer friendly approach, Goodwill of the bank, Liberal loans, and Ability to manage and agree about Courtesy, Variety of services and Nearness to customer. But have no opinion about less formality. 233

8 6.10 Findings relating to the Opinion about hindrances It is inferred from the analysis that majority of the officer s opinion about the hindrance of rare slow services, usually Overcrowding, Rigid formalities are occasional, No physical infrastructure, Location disadvantage & Conventional service mode is never Findings relating to the opinion about bank service The study reveals that the there is no significant difference in the mean scores of age, designation, education and experience regarding Bank Services but there is significant difference in the mean scores of the Bank in which account is maintained and location regarding Availing Bank Services 6.14 SUGGESTIONS Customers feel that the time taken by them for withdrawal of cash and depositing cash are more than that is prescribed in the notice boards of the banks. Hence necessary arrangements to be made to overcome these difficulties. The expectations of the customers should be understood and powerful service strategy is to be created. The value of services provided should be measured in terms of validly and quantity. The banks have to build a service oriented culture and should define service offering. The concept of customer asserts managements may be emphasized so that the customers are treated royally in relation to bank services. Though there is increase in the use of cheques and demand drafts, the increase is comparatively less in the modern age. Hence steps may be mathematically 234

9 computed and steps may be taken to relocate the branches, so that the location is not a problem to the customers. Anywhere banking service, which is offered by few banks in India, the customer can transact from any branch of the bank. The details regarding the customers made available in a central computer linked to various branches. All the information relating to the customer can be accessed from this system. Banks are now looking forward to relationship banking, which establishes a relationship with the customer in such a way that all the bank transactions of the customer domestic or international and relating to the assets or liabilities of the customers will be under taken by a single bank. Whenever complaints are made in branches, all the staff in the banks should came forward to minimize the distress. Officers alone cannot minimize the distress. Hence suitable instructions may be given to staff with regard to redressal of grievances. This activity is to be considered as teamwork. The branches in this area may be provided with suitable furniture s and fittings, so that the customers can at least sit and wait for completing bank transactions. Standardized furniture may be provided to the customers, while waiting in the bank branches. Banks should be permitted to operate on the basis of operational flexibility and functional autonomy within the broad framework of the guidelines issued by the Reserve Bank of India. The Indian Overseas Bank seems to be doing the best. The IOB as a group have been considerably more efficient than all other bank groups. But it has less branch in the District so it should increase its branch. 235

10 The introduction of professional management at all the levels of banking operations would be meaningful. It is found that branches are opened in the rural areas but the branch managers hardly to get any special training. The RBI Central Government and the top management need to divert their attention to such a sensitive issue. The topmost priority to the customer needs and preferences, particularly while tailoring the location and timing of services, is the need of the hour. The development of an effective communication system or formation of a communication mix so as to transmit the right information of the right prospects at the right time, should not be delayed. The mounting inflationary pressure and the various incentives offered by the other financial agents have made it urgent that the commercial banks also revamp their pricing strategies. This means an increase in the rate of interest. It is generally felt that the existing credit squeeze is mostly due to the failure of bankers to entice the customers of different groups. The acceleration of deposits would make possible credit expansion. It is essential that the rate of lending is maximized. Incompetent and demoralized staff cannot render good service. Hence, training becomes important in order to change employees attitudes and build up their morale and interpersonal skills. Motivating the staff and showing that the organization cares and respects the employees is equally important. Introduction of computers to support customer service is of great value to the organization. It improves efficiency, productivity and the quality of services. 236

11 Delegation of appropriate authority to employees who deal with customers so as to enable them to take on-the-spot decision. The best way to develop a service strategy is to listen to the customers. Conducting regular customer surveys will improve the services and communication with the customers constantly through press advertisements. Keeping an eye on the competitors and how they handle their customers and their problems can help the banks to shape the strategy. It may be necessary for the customers to organize themselves into forums and associations so that their voice is heard CONCLUSION The study is a rewarding exercise in the sense that, in addition to identifying the factors which influence the opinion, it also brought out the problems encountered by the respondents from various angle. It is not always easy to measure satisfaction of the customers as the term itself is highly subjective. Various services are to be identified and measured in the order of importance and the availability of such services to the customers is to be measured. Banks should also ensure that customer services do not suffer for want of suitable personnel and sufficient infrastructure in the banks. Since service marketing is customer oriented, banks should enhance their services customer friendly. This will provide customer relationship management in an efficient and effective manner. Marketing of banking services should be undertaken by the banks in a simple way, to overcome the difficulties faced by the customers. This has enabled the researcher to give certain practical solutions to the problems encountered by the respondents in banks. 237