Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)


What Determines Split Banking? Evidence from Indian Exporting SMEs

Author(s): Manpreet Kaur

Severe competition fuelled by liberalisation, privatisation and globalisation has changed the outlook of Indian banking industry during the last two decades. Banks are facing an arena where they all are rushing towards acquiring new customers. Competing banks allure customers by offering better services at lower prices. Customers are no longer loyal and they don’t stick to one bank like earlier; rather they maintain multiple banking relationships to get competitive benefits. As a result, Indian banking industry is encountering a problem known as split banking. Split banking means usage of more than one bank as primary bank by customers. It results in decreased share of customer’s wallet towards a bank and hence, less profitability for banks. In the present study, an effort has been made to identify determinants of satisfaction of exporting SMEs who follow split banking. Exporting SMEs have been specifically focused upon in the research study as they constitute an important segment of banks’ market. Beyond academic interests of the study, findings of the study would also be helpful for commercial banks in increasing their share of wallet among exporting SMEs.

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