Marketing of Bank Services In Commercial and Cooperative Banks

The Evolution of Marketing in the Banking Industry

Abstract

Banking industry is one of the most important serviceindustry which touches the lives of millions of people. Its service is uniqueboth in social and economic points of view of a nation. Earlier the attitude ofbanking service was that it was not professional to sell one's services and wasunnecessary in the sense that traditional relationships and quality of productswere sufficient to carry forward the tasks. Before the mid 1950's, the bankshad no understanding or regard for marketing. The bank building was created inthe image of a Greek Temple to impress the public about the importance of abank. The interior was austere and the teller rarely smiled. Bankers maintainedaustere dignity and they hardly maintained friendliness. It was in the late 1950's that marketing in bankingindustry emerged in the west. Its emergence was in the form of advertising andpromotion concept. At that time, personal setting could not get a significantplace. Gradually, there was a change in the attitude of bankers, probably intime with the attitudinal change in customers. The idea of customers'satisfaction began in the late 1950's, flourished in 1960's and became an integralpart of the banking services in the 1970's. But the same trend could not beapplicable, especially in developing countries and to be more specific in Indiabecause of socio-economic and political reasons.