The Entry of new generation private sector banks and evolving technology has been changing the face of the Indian banking industry. It is necessary for PSBs to adopt a standardized customer services code to remain competitive and profitable. The Goiporia committee set up by the RBI in 1990 to study customer services in PSBs, has made 97 suggestions to improve customer services. The PSBs are still reluctant to adopt some of these suggestions, while private banks are making every effort to delight their customers. PSBs should learn to retain the customers to remain in business.
A good banking sector with a good banking habit can accelerate the pace of development of a country. Banking is a key industry in the service sector and it will not be travesty of truth to call it the financial nerve center of the economy. The unique characteristics of the service industry such as intangibility, inseparability, heterogeneity, perishability and ownership puts it on an altogether different footing. Money creation is another unique characteristic of banking. The Indian banking system has the largest branch network spread over a vast area. The banking structure is also of importance, as more than 90% of the banking business is handled by PsBs. About 50% of the branches of PSBs,i.e., more than 32,200 branches are rural in nature. A majority of customers of these banks are illiterate, ignorant, poor, backward and with little banking experience. There have been developmental banking functions attached to PSBs and, therefore, they were thought of as vehicles for development rather than as commercial business entities. In the last one-and-a-half decade, with the introduction of the financial sector reforms, there has been a sea change in the banking scenario. Right from the seventies there was a clamor for amelioration in customer services in banks. With the emergence of new generation banks, introduction of technology, competition, deregulation, etc., new dimensions to customer service have been added. In the present scenario "customers delight" has been the buzz word in banking. Both the old generation and the new generation banks are working hard to improve customer loyalty and retention equity.
As far as the customer is concerned, he is the pivot of all activities in the era of consumerism. Customer is god in the UK and USA. Customer is the king in Japan But, the customer is the boss in India and the boss is always right. He is the boss because he can fire you whenever he is unhappy with you or your work.
It is a fact that ineffectiveness of officials and a consequent undue influence of trade unions has sent feelers to individuals that the work or service are not very important which has degenerated into mass indiscipline, impoliteness, uncourteousness, deteriorated punctuality, irresponsible behavior and stubborn attitude. These behavioral malignancies have ultimately permeated the present malady of bad/poor customer service. Thus, there has been an Advanced Internal Deficiencies Syndrome (AIDS) in banks and it is fatal if not confronted. This calls for a panacea that will heal the system and provide a turnaround and U-turn from the present state. The solution is seen only by a change of attitude and behavior of staff members at all levels. |
