Among these major sectors retail industry has undergone a spurt growth as a result of the emergence and mushrooming of departmental stores and malls in many cities. Many reasons can be attributed to this unprecedented growth and the insatiable appetite of the never satisfied consumers seems to the major reason. This paper examines the marketing issues and challenges of retail banking in the UK with special reference to HSBC in the banking sector. The paper attempts to dwell on the intricacies of service marketing that may arise in the efforts to sell financial services of the bank.
Retail banking is not a new buzzword in the banking industry as banks have been providing retail banking services since its inception. But, the retail spurt in banking industry has only a few years history. Retail banking means and includes all dealings and transactions of a bank with its individual customers. In the words of Shyamala Gopinath, Deputy Governor of Reserve Bank of India, "Retail banking is, however, quite broad in nature - it refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side, are the more important of the products offered by banks. ...Show more