C O N N

special featureStrategies to improve : Customer Service in BanksM. D. Mallya *Banking industry witnessed substantial growth in termsof business levels and is all set to scale new heightsin the inclusive environment. It is fast penetratinginto the hinterland further expanding its coverage.The customer base, branch network, and the alternatedelivery channels have grown manifold in the lastfew years. Along with the increasing volumes, thecustomer expectations are also rising concomitantlyand the banks too are gearing up to improve the qualityof customer service. Maintaining a sustained focuson the quality of customer service, while servicinglarger number of customers is indeed a challengingproposition.Banks need to put in place a strong service architecturesupported by well aligned strategies to harness thepotentiality of newly strengthening relationships. Infact, greater coordination, collaboration, better vendormanagement and improved skills of people managementcome under focus. Technology and Business processRe-engineering are the two latest building blocks tomake technology work for customers. Simplificationof processes and procedures and mapping them insync with technology architecture needs a wide scalere-engineering. Most banks are putting revisedprocesses in place to improve the turn around time andoperational efficiency.In fact, the Service industry is meant to deliver whatits customers precisely need. The solution lies inunderstanding and providing what the customerseeks. Therefore, the competitive differentiator of aservice organisation, more importantly for banks,depends on their ability to customise the class andquality of service to meet their client needs. In a fastdiversifying banking industry, it is enterprising tobench mark its quality and range of services tomatch customer demands. The leadership, vision andability of banks to perceive what customers wouldneed in future can make a lot of difference in shapingup the preparedness of banks to the next level to availthe first mover advantage.A couple of decades back, banks usually werecapable of offering almost a similar range of productsand services to customers at the same price. Therewas hardly any scope to create any unique valueproposition. As a result, there was rarely any differencein the product profile and pricing. The interest ratestoo were fully regulated. It was a similar model ofbusiness for banks to provide routine type ofcustomer service. In this background beginning withthe banking sector reforms initiated in 1991-92, thefocus on the quality of customer service, employeeorientation in banks began to change for better. Theold adage - 'Customer is King' gained attention inBanks in a real sense. Policies and system reformswere fast transforming to turn banking space intocomfort zone for customers. The standard of customerservice began to improve attracting new customerbase.Customer service has come to occupy the centrestage of operations in the banking industry. Thebanking system in India today has perhaps thelargest outreach for delivery of financial servicesand is also serving as an important conduit to supportthe growth momentum. While the coverage has beenexpanding day by day, the quality and content ofdelivery of customer service has assumed newdimensions. Banks began to improve capabilities tohandle the increasing demands and expectations* Chairman & Managing Director, Bank of Baroda and President, IIBF.The Journal of Indian Institute of Banking & Finance October - December 2011 7