The Indian banking industry is today at crossroads. It is trying to make the transition from the era of socialist rhetoric to the era of the marketing mantra. The Indian banking industry was trailing its peers in developed countries in terms of service quality. The main reason behind the revolution in the Indian banking industry can be attributed to technology. From standing for hours in a queue to withdraw paltry sums, we have reached a stage where we hardly need to know where our bank is located. Commercial banks—faced with the pressures of globalization, competition from nonbanking financial institutions and volatile market dynamics—are constantly seeking new ways to add value to their services. Banking processes are intangible, and hence, complex to measure. The quality of the interactions that bank tellers, relationship managers, investment consultants, etc. have with customers can rarely be standardized to ensure uniformity. Banks that provide poor quality service will find it difficult to survive. Read more
