Metamorphosis of Marketing Financial Services in India

By V, Krishna Chaitanya | Journal of Services Research, April-September 2005 | Go to article overview

Metamorphosis of Marketing Financial Services in India


V, Krishna Chaitanya, Journal of Services Research


The Financial Service industry in India has grown tremendously particularly after eighties. Number of new services and products like credit cards, ATMs, consumer finance, mutual funds, dematerialization, factoring, securitization, credit rating, leasing, investment banking, forfeiting, have become a norm since then. The driving forces behind this development are liberalization, economic reforms and deregulations, economic changes and rapid developments in capital markets. All these factors provided a greater freedom to private sector to become more competitive, productive, effective and efficient. The customers have become more demanding and prefer innovative products and quality services at faster speed from the companies. This has made the job of financial service company much tougher and challenging, as they need to understand the customers changing needs, offer new products and services and most importantly they have to promote these.

Therefore in the present day context it has become even more important to learn the application of marketing theories of product, providing service quality, distribution and planning for a customer oriented marketing strategy.

The paper discusses about

i. Understanding the meaning, nature and scope of financial services activities in India.

ii. Studying the features of financial services and financial products

iii. To frame a marketing strategy on how to attain service quality and focus on effective distribution.

iv. To study the key drivers of change in financial service industry.

INTRODUCTION

The Indian financial services industry has undergone a metamorphosis since 1990. During the late seventies and early eighties, The Indian financial services industry was dominated by commercial banks and financial institutions which focused on catering to the needs of Indian industries. The late eighties and early nineties saw the mushrooming of financial companies offering a wide range of financial services. The economic liberalization has brought complete transformation in the Indian financial service industry.

MEANING OF FINANCIAL SERVICES

In general, all types of activities which are of a financial nature could be brought under the term 'financial services'. The term 'Financial Services' in a broad sense means 'mobilizing and allocating savings'. Thus, it includes all activities involved in the transformation of saving into investment.

Avadhani, (1998) opines that the 'financial service' can also be called 'Financial intermediation'. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of it and particularly to corporate customers. Thus, financial services sector is a key area and it is very vital for industrial development. A well-developed financial services industry is absolutely necessary to mobilize the savings and to allocate them to various investible channels and thereby to promote industrial development in a country.

RANGE OF FINANCIAL SERVICES

Financial services cover a wide range of activities. They can be broadly classified into two namely:

1. Traditional activities

2. Modern activities

Traditional activities are further classified into two, namely:

i. Fund based

ii. Non-fund based

Figure 1 below narrates the classification of Financial Services.

1. Traditional activities: are the services encompassing both capital market and money market activities and can be grouped under Fund based & non-fund based activities.

i. Fund based activities:

a) Underwriting of shares, debentures, new issues.

b) Dealing in secondary market activities

c) Involving in money market instruments

d) Lease equipments, hire purchases, venture capital, factoring and forfeiting etc.

e) Participating in foreign exchange market activities. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Metamorphosis of Marketing Financial Services in India
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.