Relationship marketing in private banking in South Africa

Abstract

Deals with the success of relationship marketing in the private banking sector. A comprehensive literature review of relationship marketing was undertaken. A study was undertaken among a sample of 118 high net worth individuals, 53 with personal bankers, and 65 without, to establish whether relationship marketing was working in this banking sector. The results show that relationships are an important criterion in the selection of a private bank. A comprehensive analysis of the various stages a client has in a relationship with a bank are discussed. Lastly, the implications for the private banking industry are dealt with in a comprehensive manner.

Acquisition effects in private banking: avoiding client losses

“…Sources from the literature collated stated that the relationship in private banking between bank and client is particularly important (Akerlund, 2005;Bhalakrishnan, n. d.), supported by other sources stressing the importance of relationship on an individual/personal basis between staff/relationship manager and client (Bhalakrishnan, n. d.;Abratt & Russell, 1999;Akerlund, 2005;Molyneux & Omarini, 2005;Bruhn, Georgi, & Tuzovic, 2009;Gratwohl, 2011). Therefore, it seemed necessary to empirically research at a later stage if the relationship between bank and client, relationship manager and client or both might have an influence on consumer perception.…”

“…The literature referred to frequent meetings with the client and the service provider (Akerlund, 2005) as well as easy access to the bank (Abratt & Russell, 1999) and banking staff (Akerlund, 2005) as characteristics for private banking services corresponding with the determinant "access". This determinant was defined by Parasuraman et al (1985, p. 47) as "ease of contact".…”

“…Some studies dealt with the customers' perception on the image and reputation of the bank. It was elicited in one study that clients' evaluation criteria, to start a relationship with a bank, included the bank's service reputation (Abratt & Russell, 1999). Molyneux and Omarini (2005, p.17) stated that "the image of the bank, as far as trust is concerned, is represented through the esteem and the familiarity that the customer might summarize by saying: 'I can trust my bank'" .…”

“…Studies undertaken in the private banking sector stated that word-of-mouth (WOM) communication is very relevant (Abratt & Russell, 1999;Putz, 2002). The service sectors rely more on word of mouth promotion than on other media, and the chances of receiving word of mouth promotion in private banking can be maximized by providing excellent service and knowing their clients well (Abratt & Russell, 1999). Consequently, the literature confirmed that the attributes word of mouth and past experience of clients have an impact on the expectations of the customer as stated by Parasuraman et al (1985).…”

Is the Banking Organization Providing IT Enabled Services with Accuracy and Measured Against the Agreed Specifications

“…This development has therefore made the introduction of electronic purse a reality in banking and is redefining what a legal lender is in monetary terms (Abratt et al, 1999).…”