Challenges in Marketing Financial Services in India

A highly unique and specialized branch of marketing, the marketing of financial services includes a gamut of complex activities – both pre-sales and post-sales. Financial Institutions are always on the prowl to increase their account balances, increase their customer base, retain customers,post high profits and in turn acquire new customers. All this and much more relevance to the financial services marketing activity can be achieved through some understanding of the strategic perspectives of financial services. The banks and financial institutions cited in this article are the ICICI Bank, the HDFC Bank, the UTI Bank,Reliance Money, Kotak Securities and Tata AIG.

A highly unique and specialized branch of marketing, the marketing of financial services includes a gamut of complex activities – both pre-sales and post-sales. Moreover, a buyer’s market has made its presence in the financial services industry, making it necessary to imbibe a strategic insight into this marketing activity. Predicting consumer behavior, market segmentation and targeting a niche market all form part of the strategies to market financial services.Competitive markets, intricate product characteristics and intangibility have made the job of the financial service-marketer very profound and challenging.

In the direction of achieving excellence in marketing through easy and anywhere banking, it can be said that financial institutions have made great progress in educating their customers. A generous mention may be made on the recent proliferation of the Internet as a medium of knowledge and communication that has helped customers become aware of the various products offered by different financial institutions. A virtual relationship of trust is being established between the financial institution and the customer, given the increased access to financial data across the board about various products and services offered by the financial institution the customer transacts with and the competitor financial institution. This relationship remains the key substance when it comes to marketing financial services. It should also be kept in mind by the marketer that such relationships are built when right services are marketed to the right customer.

Financial institutions are always on the prowl to increase their account balances, increase their customer base, retain customers, post high profits and in turn acquire new customers. All this and much more relevance to the financial services marketing activity can be achieved through some understanding of the strategic perspectives of
financial services.

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