Retail portfolios of banks are growing by leaps and bounds, but the tie-up of banks with dealers and their promotion through call centers is unfortunately not giving due emphasis to customer care, thus, damaging the image of the banks. There is a need for exploring plausible routes like brand building across product categories, takeover from the dealer, reverse the call center focus, etc. Strong branding of products not only provides a competitive edge, but also improves the long-term relationship with customers.

Whilst a strong reason for the first two facts has been the availability of installment finance, the third opens up an untapped segment for finance companies in the organized sector. Rural credit offtake for such purchases have largely been without recourse to credit from the organized sector. More and more banks are viewing retail finance seriously as their traditional corporate funding avenue is drying up. Large corporates are meeting their funds requirement both for the short term (working capital) and medium/long term through equity and debt subscribed directly by mutual funds or even retailed. Unfortunately, the "herd" instinct is prevalent with many offerings not planned out well, both in terms of product features and the delivery mechanisms. Whilst the customer has benefited by the borrowing rates moving southwards, the lender faces a great deal of uncertainty as to how to sustain customer demand and mind share in an excess supply situation.

ICICI was perhaps the first off the mark with a "brand-building" strategy and Amitabh Bachan brought ICICI's name into many a household with an effective media campaign. Undoubtedly, there is a fair recall of ICICI amongst potential retail customers. Whether media costs are commensurate with the market share is a moot point.

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