Just like any other business, customers are the core of the banking business too. It is for customers, all the products and services of banks have to be designed. Customers are the actual users and beneficiaries of such services. If a customer has to feel-good factor for a bank, it works as an inducer for attracting numerous customers as a happy customer brings in many customers. In case, if it is not so, it is highly disadvantageous for banks as no good message of banking services of the bank will flow impacting adversely on the goodwill and reputation of the bank. Thus, modern banks have highly prioritized customers and started designing products and rendering services as per the need of customers. This concept of making banking services customer-oriented is called customer-oriented banking services (COBS).
Customer-oriented banking services are simply the concept of initiating customer-oriented services rendered by banks. It is adding something in addition to existing banking services. It is more of understanding what customers want and imposing such identified factors in all types of banking services. It is about bringing happiness, satisfaction, belongingness and loyalty to customers via means of banking services provided. It is concerned with customer attraction at the beginning and retention in long run by banks. COBS is about making banking services more customer-centric for better customer delight. In precise, customer-oriented banking service is about making banking services most suitable, easily accessible, more satisfiable, gratefully acceptable and much trustable with orientation from customers’ side rather than from bank’s perspective. Such customer-orientedness is highly advocated in directives, guidelines and policies formulated by Nepal Rastra Bank in the context of Nepal. Such advocacy has raised a voice in customer-orientedness in every aspect of banking services. Some of which are mentioned below:
- Deposit Services: Bank provide deposit services through different deposit accounts. The accounts collect saving from individuals and institutions. Such deposit schemes are provided at the most attractive rate as per the expectation of customers. For more customer-oriented services, these deposit accounts have sufficient additional banking facilities free of cost or at very little cost. Similarly, techniques like home banking, door-to-door banking, financial literacy on efficient saving, online account opening, real-time balance inquiry through SMS or mobile banking etc. have been initiated by Nepalese banks for enhancing customer delight and convenience in deposit services provided.
- Loan Services: Another key aspect of customer-oriented banking service is on loan services. Loan products have been designed to meet almost every purpose of potential borrowers. Loan application to disbursement has been simplified with no burden charges and transparent interest rates. Overdraft and working capital loan as per credibility and need of clients along with the relation with the bank. Most banks do pre-inform about changes in an interest rate and charges through SMS or e=mail alerts. Easy renewal, justifiable expansion, proper rescheduling and restructuring, omission of charges or penalties during COVID-19 lockdown and prohibitory orders etc. are offered by Nepalese banks as part of customer-orientedness in loan services.
- Card Services: Card-based carrying of cash and payment is an essential part of modern banking services. As a part of this, Nepalese banks are offering different card services. This includes ATM/Debit Cards, Credit Card, Travel Card, Prepaid Card, Dollar Card etc. These cards are either accepted domestically or internationally. These are widely accepted in point-of-sale terminals and online platforms. For more customer-orientedness, the issuance and renewal charges off such cards have been lowered to large extent or made free of cost. More payment terminals are being added for making them widely usable. All these have contributed immensely to making customers happy, satisfied and free from the cash-carrying burden.
- Digital Services: Today’s banks are providing numerous digital banking services in Nepal. This includes direct access to bank accounts through internet banking, mobile banking and connect IPS. These can be operated online by the account holder for fund transfer, utility bill payment, wallet loading, mobile top-up and recharge, payment to internet service providers, airline ticketing etc. Similarly, Nepalese banks have a high focus on contributing towards digital and cashless economy through QR (Quick Response) based payment and POS-based payment. Likewise, ATM (Automated Teller Machine) and CDM (Cash Deposit Machine) are being installed extensively throughout Nepal by banks. Banks even have started using robots to guide while visiting AtM outlets or branches. All such efforts of banks are part of customer-oriented banking services for better and higher customer delight.
- Trade Finance Services: Trade finance is another key part of the customer-oriented banking service provided by Nepalese banks. Banks are providing easy facilities such as a letter of credit, bank guarantee, telegraphic transfer etc. to most businesses to make easy national and international trade or business. These facilities have become a huge part of bank business and banking services. These have emerged and evolved as a key way of ensuring customer-orientedness in banking services provided.
- Remittance Services: Remittance refers to a transfer of money from one place to another within a country or between two countries. It has become an essential part of banking service in a country like Nepal where the inward flow of remittance from foreign employment is tremendous. Such service is provided by banks from their all branches throughout the country. Banks act as remit agents of national and international remit companies or can have their own remittance service. Banks can appoint agents other than branches for their remittance product anywhere inside or outside Nepal as per prevailing law and regulation. Since remittance is for all classes of people at rural to urban locations, it is initiated and provided with a high customer focus. Thus, remittance service is an essential part of customer-oriented banking service.
- Merchant Banking Services: Banks have high geographical coverage and are easily accessible to people from urban to remote areas. In recent times, ever since the first COVID-19 wave and lockdown, the craze for the share market has gone sky-high. People have started opening more DEMAT accounts, connect IPS, CRN etc. All these are parts of merchant banking. These services are provided by banks alongwith the legal provision of opening subsidiary companies for merchant banking. All these are initiated as part of customer-oriented services linking with basic deposit service provided by banks.
- Other Services: Apart from the above-discussed banking services as part of customer orientation, banks also provide additional services too. This includes services like foreign exchange, gold import and sales, locker, customer queries handling through care centers, addressing customer complaints etc. All such services are designed so as tomeet customer needs of different aspects. All such services are simplified and supportively provided by bank staff with high customer orientation.
