Bank Marketing


Bank marketing is the marketing of bank services. This bank services are financial services ranging from simple collection of deposits to complex services such as export financing, loan syndication, capital market activities and insurance services. Thus the term bank marketing can be used interchangeable with marketing of financial services.

Bank marketing involves Double-sided marketing.

Double-sided marketing means a bank must first engage in marketing to buy its raw materials (deposits) and engage in marketing again to sell it other services (such as loans and other investments)

A banker has to attract customers to sell deposits to him and also has to attract them to buy loans and advances from him. This means a bank buys from its customers and at the same time sells to its customers. What the banker buys is regarded as bank product (such as deposits) and at the same time what the bank sell is regarded as its own products (loans and advances)

Deposits could be sourced by approaching a potential surplus economic unit such as teachers, businessmen/women, traders, shop owners, public/civil servants etc which could further be categorized into individuals, business owners, and corporate bodies. These economic units, when made to open accounts with banks should also be made to avail themselves of credit facilities offered by the banks.

It is advisable that every bank employee, right from the top to the bottom should be a marketer, and incentives should be given to those who attracts deposits. For example, it could be a rule that anybody who attracts up to #50,000 deposits should be given #5,000 incentive, #200,000 should attracts #20,000 incentive. If an incentive system is considered in deposit mobilization, the volume of the primary deposit will increase and the welfare of the staff will be enhanced.

There should also be adequate incentive to those who save with the bank in terms of interest payment.

Depositors are now very enlightened to know which bank pays what, in the system, and therefore should take cognizance of this.

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