Banking Marketing

Each credit institution is interested in attracting more clients, so it carefully develops banking marketing. Specialists engaged in this activity should investigate various aspects of market relations in order to make timely changes in the bank's policy. In addition, one should proceed from the wishes and requirements of the consumer group.

In fact, banking marketing is a set of activities that includes planning step-by-step actions, analyzing the financial market conditions, implementing a specific program and further promoting it. Since the main goal of any commercial bank is to generate profit and maximize it, the marketing specialist must create conditions that satisfy the interests of the two sides: the credit institution and the clients.

Banking marketing involves the following functions:

• Formation of the information base.
• Study and selection of specific methods and techniques of marketing.
• Development of measures to promote banking services on the market.
• Conducting a quality advertising campaign.

Marketing of banking services is based on the development of a specific program for promoting a particular product. Drawing up a specific strategy involves examining the market needs and the capacity of the credit institution to provide the desired service. Of course, it is necessary to make a predictive assessment of the profitability of this project, which will give grounds for confirming the feasibility of its implementation.

The most common concepts are leadership, concentration and differentiation. If bank marketing is based on a strategy of leadership in reducing costs, then all further activities of the bank are aimed at the maximum reduction in the level of costs. As a rule, it is applied in case of high competition, that is, when credit institutions offer similar services under similar conditions. After all, in such circumstances, the demands on the part of customers are significantly increased. Often this strategy is used by large banks to implement large-scale programs.

With a strategy called focus or concentration, the bank chooses a separate market segment under which a particular product is developed. It is assumed that the specialist focuses all his attention on satisfying the desires of a narrow consumer group. As a rule, credit institutions are engaged in the search for a segment that has not yet interested the competitors, because then the chances of success significantly increase. A vivid example of a concentration strategy is the activity of specialized banks.

And the third type of strategic approach of a credit institution in marketing activities is the opposite of the previous one and is based on attracting a wide range of client groups. That is, a specialist is developing a banking product with such properties and distinctive features that would be equally attractive to all categories of consumers, for example, the introduction of a new type of lending.

In our country, bank marketing is at the stage of development and gradual introduction. However, it should be noted that the development of any program to promote services requires significant costs. That is why many credit institutions do not dare to apply bank marketing. Public funding can alleviate the situation, but so far the budget is not enough. I would like to note the problem of shortage of qualified workers specializing in marketing activities. There is still progress, because the banking system is improving every year.