Once perceived as powerful babu fiefdoms, public sector banks claim to be changing for the ones they love... their customers
The image makeover exercise is a proactive
step initiated by some of the public sector banks (PSBs) and is a step in the right direction. PSBs have over the years tended to be perceived in a similar manner, however today these banks are competing with each other. Thanks to the strong regulatory framework in India, most PSBs are in good shape and now realise the need to differentiate themselves not only vis-à-vis foreign or private sector banks, but more so with the other PSBs. Over the last few years, PSB’s have expeditiously brought about improvements in their service levels by adopting technology in a big way and many of the PSBs have branches comparable to the new-age private sector/foreign banks. In this backdrop it is not surprising that some of the banks have opted for an image makeover. The re-branding of these banks has also to be looked at in the context of changing Indian demographics – with more than half of the country being 25 years old or less. These banks recognise that the needs of this population are different and hence it pays to look young. In a fiercely competitive financial services industry, it has become imperative, if not mandatory to reposition PSBs in order to attract and retain customers who have a wide range of alternatives. The re-branding exercise also take into account the post-2009 scenario, when competition from foreign banks is expected to increase as the sector opens up.
The image makeover exercise is a proactive
step initiated by some of the public sector banks (PSBs) and is a step in the right direction. PSBs have over the years tended to be perceived in a similar manner, however today these banks are competing with each other. Thanks to the strong regulatory framework in India, most PSBs are in good shape and now realise the need to differentiate themselves not only vis-à-vis foreign or private sector banks, but more so with the other PSBs. Over the last few years, PSB’s have expeditiously brought about improvements in their service levels by adopting technology in a big way and many of the PSBs have branches comparable to the new-age private sector/foreign banks. In this backdrop it is not surprising that some of the banks have opted for an image makeover. The re-branding of these banks has also to be looked at in the context of changing Indian demographics – with more than half of the country being 25 years old or less. These banks recognise that the needs of this population are different and hence it pays to look young. In a fiercely competitive financial services industry, it has become imperative, if not mandatory to reposition PSBs in order to attract and retain customers who have a wide range of alternatives. The re-branding exercise also take into account the post-2009 scenario, when competition from foreign banks is expected to increase as the sector opens up. 
No comments:
Post a Comment