Customer Buyer Behavior in Sri Lanka’s Banking Industry

Abstract

Commercial banking in Sri Lanka has entered a new era, thanks to the formation of perceptible good governance, a strife-free business environment and hopefully, a progressive minded civilian Government at the helm of affairs. This being said, it is necessary to consider the aims and objectives of a research venture of this genre which seeks, at its core objective, a deeper analysis of the malaise that ails Sri Lankan commercial banking at this juncture, the remedial measures that could ameliorate the present woes in the commercial banking sector. Commercial banking has always been underlined by customer preferences and choices and the need for analysing this aspect is also one of the tasks of this paper. The dissertation follows a typical questionnaires and interview method of collecting data using standard practices. With much more risks and challenges at stake for lead banks like Commercial Bank of Ceylon (CBoC), it is indeed in the fitness of things that this bank needs to turn the searchlight inwards and review its competencies in the wake of major changes in the global banking business which impinges on the banking sector of this island nation too, albeit marginally. The banking sector in SL and more particularly the larger banks, have their tasks clearly cut out, in terms of providing a larger dose of safety, stability, fund accretion and good returns to investors besides excellent service to all genres of customers and clients.

Introduction

This dissertation is fundamentally concerned about customer buying behaviour in the banking industry, with special reference to an extremely consumer-friendly and pro-active banking company like the Commercial Bank of Ceylon(CBoC) which has an array of dazzling banking products and services all lined up for wary customers and potential customers. The CBoC Model has been specially commissioned for this study because it is an epitome of consumer banking at its best, providing all kinds of banking products and services with a large global network. Besides, natives of this island nation are, by temperament, friendly and ever helpful, which makes banking business for tourists and foreign visitors even a more congenial and pleasant experience, when compared to the hassles t they experience in other major destinations of the world.

Research aims and objectives

The main aims and objectives of this study is to discern how banking business has evolved over time in terms of the deployment of new products and services by premier banks like CBoC to gain and sustain market leadership. The objectives also entail the strategic techniques by which markets control could be maintained in future years in the face of extreme competition from global banks and financial institutions and also the changing profile of banking business in a global context, brought about by larger and more extensive use of technology and internet usage. Buyer behaviour is important since a large number of variable, both direct and indirect work in the context of consumer behaviour, including consumer preferences, trends and perceived changes in business modelling.

Buyer Behaviour and Factors influencing it

Consumer behaviour is depends on the culture of the society, social factors, personal opinion and psychological factors prevailing in the society. Any market cannot manage such issues. But we can take in to consideration of this kind of factors while lunching a product or services.

Factors influencing consumer behaviour

Culture has a big role while determining the consumer behaviour of a person. It greatly depends on the society how the person grown in the society, because the human behaviour is mostly learned. In Sri Lanka they have a culture which is influenced by their religion and colonialisation of the foreigners. A culture has a sub culture, if a group of people have common experience they will share common values also. It includes nationalities, religions, cultural group etc in Sri Lanka Buddhists, Hindus, and Muslims are there. In all society all have some social structure. A person’s action is depends on a groups which the person belonging to. Everywhere we can see the class deference that is upper class, middle class and lower class. And the family member also highly influenced the buying behaviour of the people. A person use to involve in cluster like family club and some organizations. Role and status defines the particular place of the group in the society. And the personal matters like their age, job, economic status, etc are included. People changes the baying habit of goods And services over their life time. According to the age the food clothes, equipment, hobby are changes. And buying habit is changes according to their life cycle. Particular stage in which the family is going through determines the family establishment. A persons job is also influences the buying of goods and services. The blue collar workers use to buy rough work cloths. In the case of executives they use to buy business suit. The people’s job is a main factor for their buying habit. The economic position influences the choice of a product. If recession is prevailing in the economy the marketers take an action to redesign, relocate and reprise their product. A person’s life style will be different from other person. That is life style matters a lot. A person’s lifestyle is depends on their activities like work, hobbies, shopping, sports, social events and their interest like food, fashion, family and recreation. Personality influences the buying habit of a person, it defers from person to person. Personality usually describes the self confidence, supremacy, friendliness, independence, defensiveness, flexibility and aggressiveness. A persons self concept or self image is reflect their buying habit.

A person’s self concept reflects their identity that is ‘we are what we have’. Psychological factors are also important while buying a product or service. In psychological factors the first one is motivation, a person have many needs biological as well as psychological.

Basic need satisfaction is also a driving factor in buying decisions. The psychological need comprises of recognition, regard, and belonging. When people act some thing they start learning something. If learning takes place there will be a change in one person’s behaviour. Learning arises through interplay of forces, stimuli, prompts, reply and strengthening.

While acting or learning something people acquires faith and attitudes. And it is highly influences the buying behaviour of the people. The general public have some inclination, or dislike towards religion, politics, personal grooming, music, food and drinks and everything else in the world.

Attitude comprises one person’s continuous evaluation, emotion, and propensity towards an idea or a thing. That is attitude consisting of a person’s likes and dislikes. The rising social and regulatory anxiety for the environment leads to an increasing number of companies to think green issues as a major source of strategic change. The trend has great and multifaceted implications on the technical strategy of company and their innovations in products. During the past few decades the customers in Sri Lanka that is people in Sri Lanka have eco-awareness. There are some barriers to the dispersal of eco-friendly consumption and product style. So now all most all companies are focusing on green marketing concept.

Buyers in the Service sector primarily buyers of financial products and leisure products

Sri Lanka has microfinance landscapes worldwide. The microfinance means the stipulation of financial services to low income clients or customers and self-employed who is not accessing banking related services. Sri Lankan microfinance landscape is engaged by a varied range of microfinance consultants from huge government controlled Samrudhi banks, the regional Development Banks and Cooperative Rural banks through private commercial bank to small NGOs.

Thus, these are the service providers range of institutions, finance companies, co-operatives, global and local NGO’s for commercial and growth oriented banking companies > But when matched against global standards, Sri Lankan microfinance banks are of very minimal importance.

The critical issues are low political structure and the lack of sufficient administration or controls, and also the quality of the institutions..; there is no adequate supervision or regulation, and the quality of the Organization. Lake of information on invisible hand that is demand and supply frequently causes partly covering and inadequate services.

ProMiS (Promotion of the Microfinance Sector) is an integrated cooperative plan enforced by Ministry of Finance and Sri Lankan alliance with German Technical Cooperation (GTZ). Goal of ProMiS is that of sustainable improvement of the poor sections of the society in Sri Lanka.

CBC would be throwing in 31 more branches in this island country who would be devoted to SMEs. According to the Chairman of the bank there is tremendous scope for banking products. The commercial bank of Ceylon group’s main principle is that the concurrent financial services all over Ceylon through its 134 branches and 346 Commercial Automated teller machines. And the other services providing is that off-shore banking, personal banking, trade financing, resident and non resident foreign currency process and other travel services. The group provides project financing, lease financing, rural credit, credit cards, telebanking and intranet facilities to customers.

About travel and Leisure

Tourism is the one of the main major business in Sri Lanka. The principle commercial sector in Sri Lanka constitutes its tourism, beverage exports, clothing rice and other farming products. Earnings from abroad also contribute immensely to inward remittances. Tourists focus Sri Lanka Island because of its Island. This is located in southern and eastern part of the country. Tourism gives a very huge amount of foreign exchange for the country. So the government promotes the tourist sector in Sri Lanka. This country has rich and abundant natural resources which are also combined with the warmth of their people. To promote tourism world widely Sri Lanka suggested the rural holyday destination. Tourists are attracted by the sceneries, sightseeing, etc. So Sri Lanka should take in to consideration of the trends in global tourism. Tourists arrives in Sri Lanka is consistently increased last few months. For example in January 2010 tourist reached in Sri Lanka is 50,000 which is 32 percent more in the period of 2009. The leisure sector have a great benefit with the prevailing situation because the existing transportation and will be geared to make the most of return on the expected tourism boom. And we can see the rate of hotels room charges in the Sri Lanka’s are increasing significantly. Hotels are making loses but there is a chance for boosting hotels business, because of the trends of the tourism in Sri Lanka. Hotels in Colombo city restrictions will execute firstly due to business clients and the outstation hotels are predictable to execute from the middle of the year from tourist entrance.

Literature review

It is very much important that for a banking sector it is prerequisite to retain valuable clients with them always in order to enhance their business operations and also to achieve the target. While considering current scenario for Commercial Bank of Ceylon PLC need to do a lot in order to stay in this competitive world along with other banks. Their main focuses always emphasis on the customers because customers are their strengths. Without them it is not possible for a bank to survive. Management of the bank always focuses on customer buying patterns. A very good knowledge regarding the understanding about the customer buying patterns are necessary for commercial banks to survive in the market. It is not necessary that customer-buying patterns always be static or same. Its all depends upon the trends and different factors. Because of evolution of different types of banking it is very difficult for the banks to stay in the market. Thus banks are always focusing on introducing different types of products for the customers. It is with these different types of products these banks are always attracting the customers towards the bank. Meaning of the bank has been changed a lot and it is not the same as what one thinks about the bank long years back. Long years back the bank is meant for investing and borrowing money. However now bank is providing many sorts of services to the customers and it is not limited to investing and borrowing of money.

In case of Commercial bank of Ceylon PLC numerous amount of products are put in to the market for attracting the customers towards the bank. Some of their financial services includes saving money, borrowing money, leasing facilities, electronic banking, priority banking, holiday banking, ATM network and correspondent banking. These all services will get change according to the buying patterns of the customer. Besides this bank will need to regularly check out the customer buying patterns and according to that bank make changes in the product they are offering to the customers. The next segment of this section mainly deals with different authors view on customer behaviour patterns in the banking sector.

In a book called ‘high-performance computing’ written by R. J. Allan, M. F. Guest, A.D. Simpson and D. S. Henty mentions about customer profiling in the bank. Author’s mentions that banks have got great challenges to face in the current competitive world. Author summarized in the following way. “Banks are struggling to respond to the rapidly changing expectations of personal customers, the demands of regulators, the opportunities afford by new technologies and the threat of new, potentially better-placed competitors.” (Allan et al. 1999, p.480).

Authors suggest that in order to stay focused in the competitive world or in today’s market organization needs to be very much aware in profile their customers. This is reflected like this that is it is necessary that to record past customer behaviour patterns in actual business transaction because it is always going to be the very good indicator for the future buying prototype. Authors point out that customer’s requirements are set to change rapidly and if banks cannot meet this challenges then banks position will be no where. Within the context of banking customer profiling is said to be paramount. ”The first key to sustained success is a superior understanding of what tomorrow’s customers want from their prime provider of financial service.” (Allan et al. 1999, p.480). Authors in this book always emphasis on customers in the bank. It is with the customers and their behaviour patterns banks are always focused on the business and also in their profit margins. Good customers of the bank are always profitable to the bank. Bank should always employ customer-oriented focus rather than account oriented focus in order to know about behaviour patterns of the customer thoroughly. In order to achieve this author mentioned some possibilities. First one is targeting the effective customer. This implies understanding or identifying certain attributes of the customer and about the products they are constantly using. Always target those products and those customers. Second one is customer behaviour prediction. “Patterns of behaviour may be used to predict to predict when a customer may require a product, or will cease to need a product etc.” (Allan et al. 1999, p.481).

Third one is better customer service. Provision of providing information and advice to the customers must be always based on the different segments of customers. The different segments include customer’s life stage, life style, their intentions and their family circumstances. Bank always design specific products based on understanding the customers behaviour pattern. Customer always categorizes products by good or bad and by looking their attributes. It is this attributes that is always going to influence while purchasing the products by the customer. Author specifies there are different ways to consider these issues and it’s by the domain knowledge. Domain knowledge here means knowledge of financial experts and their well versed knowledge in different types of financial products. An ultimate requirement needed is user based view regarding the information about the customer and this information must always access in timely and consistent manner. This will always help the bank to know about the customer and their behaviour.

In a book named ‘Marketing financial services’ written by Mary Ann Pezzullo mentions about customer behaviour patterns in commercial banks. Author mentions that understanding and knowledge regarding the customer buying patterns is very much important in the banking sector. One of the important issues regarding this is only by understands about the customer behaviour patterns regarding certain product is very much important in order for bank to stay in the competitive world along with other banks. It is this factor that relies in customer for choosing the particular bank. Commercial banks should always focus on this to keep the customer in their side. Author explicitly stated in her book that “Customer wants and needs are not static, but constantly changing.” (Pezzullo 1998, p.14). Thus banks need to always focus on this issue regarding about changing behaviour pattern of the customer or consumer. It is necessary that commercial banks need to monitor on these changes happening around about and should adapt their products according to needs of the customer. According to the needs of the customer bank need to distribute their products, or else there won’t be having any benefit for the banks and also for the customers. Author also mentions about the current scenarios or trends. Author says that presently customers are always seeking to have service done from the bank very fast and easy manner. Even if it is any kind of financial services customer always aims everything to be done very easily without having any complications. Customers are always seeking the ultimate speed and convenience from the banks while providing any sort of financial services. Author in this book suggest that “Buying patterns for consumer financial services have undergone dramatic changes in the past several years.” (Pezzullo 1998, p.15).

Consumer’s interest always is in seeking the wide assortment of investment products and services which includes mutual funds and insurance. Present scenario suggests commercial banks need to take care the customers very carefully because customers have got lots of alternatives and everything is widely open. That is there are numerous of other financial institution present in the country. So commercial bank need to always stay focus. Even nowadays bank marketers are finding it very difficult to compete with other financial institution present in the country. In order to compete in the competitive world and also for making the customers in their side banks are always trying to introduce new products and services which attracts the customers. It is based on the products customers decide to choose the bank for getting the service for their needs. Author mentions that there are some cases that can happen in case of banks. That is customer won’t be aware about the new products introduced in the bank. In this there can be chances to loss the customers. In other words bank will find it difficult to retain the existing customers. This can be avoided and valuable clients can be retained if bank employs effective marketing strategy. This is very important in case of commercial banks in order to retain their valuable clients.

In a scholarly article named ‘Developing CRM to Retain Customer Loyalty’ written by Louise M. Vaughn and Patricia Greer discussed about different products and services that suit customer’s financial needs. “With aggressiveness marketing efforts among banks offering similar products and services, customer satisfaction is has become very subjective.” (Hammond 2009, p.2).

Many researchers suggest that Customer Relationship Management (CRM) has proven to be one of the successful factors in banking sector to know about various customer behaviour patterns regarding the various products and services provides by the bank to customers. Author of this scholarly article mentions that banking sector has changed a lot during last few to cater most of the customer needs. Current scenario suggests that customers are highly knowledgeable, elegant and self-assured on regarding various products and services provided by the bank. Author points out commercial banks always need to set or maintain a very good relation with customers and about their buying pattern. The employees working in the bank always need to know their customers very nearly. Only then it will be able to understand the customers and their behaviour regarding the certain phenomena will be very clearly understandable. Interaction with the customers by the banks is also very much necessary in order to understand about their buying behaviour patterns. It is prerequisite in the banking sector because it will help to identify their needs vary easily. Identifying the needs of the customer is very much important in the banking sector. This is very important in order to retain the customers. If these are not happening then it is sure that bank won’t have customers in their hands.

If customers are not with the bank, then it will put the bank in miserable condition and bank will find it difficult to survive in this competitive world. Author mentions about the importance of customer relationship management. Author says that by implementing the customer relationship management it is very easy for the bank to provide customer satisfaction. A very good customer relationship management always helps to retain the valuable customers at their side. This will help the bank to know about their customers very well. Apart from that it will helps to build “long-lasting relationship with its customers.” (Hammond 2009, p.3). Bank needs to employ this in order to serve and develop customers loyalty efficiently. Author point out that “CRM is a comprehensive strategy and the process of acquiring, retaining, and partnering with selective customers to create superior value for the company and the customer.” (Hammond 2009, p.2).

Author also suggests that many of the banking institutions such as HSBC group, TCF and Wells Fargo are implemented CRM in great success. It is necessary to provide customers of the bank very good environment and great experiences to make them with the bank always. Providing good environment and great experiences means providing the customers very good products and services they are intended for. Author mentions that CRM can provide employees all sorts of information that is needed about the customer’s needs and wants. This will always helps to build very good relation between the bank and the customers. It is necessary that bank need to find out good customers because they always bring profit to the bank. Bank need not let those good customers to go away. In order to retain them with the bank sometimes need to make some changes in their products and services. Customer’s satisfaction and building the good relationship between them is one of the major factors that rely in organizing the relation between the bank and the customer. These will always enhance the commercial bank to retain their valuable customers. In a newspaper magazine namely InfoWorld there appears one article called know your customers written by Martin LaMonica. Author in this article clearly mentions about “knowing your customer.” (InfoWorld, 1997, p.62).

Many authors told it is very important especially for commercial banks to know about the customers very clearly. Analyzing about the customer behaviour is very important. Without analyzing the customer behaviour pattern it will be very difficult for the bank to know about their customers and also it will affect the products of the bank. It is because implementing some products and services without caring the customers won’t do any kind of benefits for the commercial bank. Building “an accurate customer profile based on customer behaviour” (InfoWorld, 1997, p.62) is one of the key concepts for the commercial bank to know more about the customers.

While making new products and services banks need to analyze its future perceptive also. That is whether the implemented product and services get popularity in future or not. If banks are implementing the products and services after analyzing the trends of the customer there is no need to worry. Otherwise it will become a major concern. Author specifies one of the important big obsessions is regarding customer focus. There needs through look at each of the customer and each of the product and it needs to rate them according to the customers needs. Then it will be very easy for the banks to know which of the product is very popular and famous. Author mentions one example also in this that is “if a customer uses ATMs more often than going to a bank and doing transactions with a teller, the bank may offer this customer more ATM services or offer incentives to use the banks online service.” (InfoWorld, 1997, p.62). From this it is very clear that banks need to make some adjustments according to the needs of the customer only then it is possible retain the customers always with the bank and can enhance their operation.

In a book named ‘Adapting to Financial Globalization’ written by Morten Balling, Eduard Hochreiter and Elizabeth Hennessy mentions about various types’ consumer behaviour patterns in the bank. Authors clearly suggest that banks are always looking or analyzing the various customer behaviour patterns. Banks are analyzing this because according to this banks introduce various products for customers. Author mentions in past “traditional structure and operation of the financial services industry, consumers had little choice in terms of selecting financial instruments and delivery channels.” (Balling, Hochreeiter & Hennessy 2001, p.210).

At that time customers won’t have much choice in choosing the products of the bank and they mainly depend on the bank for investing and borrowing the money. Financial service industry will provide only limited amounts of products to the customers and customers won’t be having many options for choosing and these customers are mainly having very limited products in front of them to choose. But now everything has changed and customers had wide range options in choosing the various products. Rapid change has occurred due to different phenomena. One main obsession is rapid change in market condition. A change in market forced banks to change a lot in order to stay with other competitors. The market change forced banks to introduce more financial products for the customers. The main intention is to attract the customers towards the bank. The profit of the bank always relies on consumer buying behaviour. It is very prerequisite that banks need to adapt according to the behaviour of the customers. Author mentions in this book that “a common approach to understanding consumer buying behaviour is to generate complex models of consumer decision-making.” (Balling, Hochreeiter & Hennessy 2001, p.211).

Understanding about consumer behaviour is one of the most important issue banks need to keep in mind. It is because of consumer’s majority of the banks can move smoothly with out any problem. So, bank need to follow a very approach for understanding the consumer behaviour pattern. Author mentions about one model in this book to understand about the consumer behaviour pattern. Author suggests the model should be mixture “of constructs such as attention, attitude, motive, interaction etc., which are combined with marketing inputs such as price, quality, social variables and aspects of actual behaviour such as overt search, ultimate leading to purchase and satisfaction.” (Balling, Hochreeiter & Hennessy 2001, p.211). Author mentions that this model can help banks to understand about the consumer behaviour up to an extent. But this model as some drawbacks such as this model cannot explain why some of the customers are always showing same behaviour pattern and why some customers are always changing their behaviour patterns or why behaviour pattern of certain customers are altering rapidly. There are two main factors that can be identified in customer behaviour pattern. One is the ability of the customer to make decision and second one is moral conduct of the customer that always underlies the decision. In other words it can be specified as self-interest orientation. Presently customers are all have high thinking ability. So when bank introduces any new product customer thinks about that product twice or thrice before choosing that product. Author mentions that customers didn’t want to happen any kind of uncertainness to occur after choosing the product of the bank. Another important factor author mentions in this book to know about the customer pattern is by having banker-customer interaction. This is very important factor to know about the different behaviour patterns of the customer. Author mentions that customer’s behaviour pattern had undergone lots of change during recent years. Bank always needs to know about their valuable customers and their interests and their buying pattern in order to retain their clients with them and also to secure the banks position in the market.

Research design

The commercial Bank of Ceylon Plc is one of the emerging industrial banking particularly in Sri Lanka with more than 171 divisions and almost 340 ATM divisions in that particular area. In additional to that Commercial Bank of Ceylon also functions its operations in the Bangladesh too. The commercial Bank of Ceylon in Sri Lanka is the one of the technically developed, innovative and maintaining the good consumer welcoming monetary service establishment in Sri Lanka. The commercial Bank of Ceylon has offered various products and services to satisfy the consumer. “Its products include corporate banking, personal banking and treasury. The services of the Group include personal banking, trade financing, off-shore banking, resident and non-resident foreign currency, operations and travel related services. The other offers providing by the banks are project financing and lease financing to the customers, more over they were providing rural credit, credit cards, and telephonic banking and intranet services to the customers.” (Commercial bank of Ceylon plc, 2010).

In order to maintain harmonies customer relationship Bank must be assessed the customer reactions as well as the customer behaviour towards products and services offered by the Bank. There is also a primary variation on customer behaviour for the period of the previous five years. The customer’s expenditure habit is increasing so that the Bank has increased the loan.

Proper research design must be carried out to understand the consumer’s behaviour towards the commercial Bank of Ceylon Plc in Sri Lanka. Research design is mainly framed to identify and analyze different ways for conducting the research and it also involves taking decision related to the sources from which the information has to be collected. Research design is an arrangement of situation and examination of all the information in a way that it aims to connect the significance of the research intention. Research design may be either qualitative or quantitative. Design also includes surveys, and information discovery enquiries and all. Research design provide clear route to the research. It is an arrangement of circumstances and assessment of all the data’s in a way that it aims to connect the meaning of the research purpose.

Methods of finding data

The methods for data collection is planned to find out information by the following needs obtaining the both primary and secondary data’s which are relevant for understand the consumers buying behaviours in the banking industry. “The Commercial Bank of Ceylon has been adjudged Sri Lanka’s ‘Best Bank’ for the 11th year by one of the world’s most respected financial publications, Global Finance (USA), in a year when some of the best banks of previous years have lost their places to competitors due to the credit crunch and turmoil in financial markets.” (Commercial bank of Ceylon limited was adjusted as the best bank in Sri Lanka by two leading magazines in UK & USA, 2010).

The Commercial Bank of Ceylon Plc Sri Lanka’s ‘Best Bank’ and also the bank offered a large variety of the products and services to its customer. So it is necessary to understand the consumer behaviours’ of the consumers to understand whether the needs and wants of the customer as well as the satisfactions occurred through the service provided by the Sri Lanka’s banking industry.

Primary Data

The primary data for analyzing the consumer’s behaviours in the Commercial Bank of Ceylon Inc Sri Lanka’s obtained through well arranged questionnaire from the target group of consumers. Data’s was collected through both immediately and not direct methods from the respondents in The Commercial Bank of Ceylon Plc in Sri Lanka. If data’s are collected directly from the group through primary source it will help to get accurate information because in this case we are directly approaching to the target group for getting information various methods are used to collect the information from the target consumers. The methods are describes below:

Interviews

It is one the common method used to collect information from the customers to order to understand consumers buying behaviours in the banking industry in Sri Lanka. It is face to face discussion among the two or persons to gain the necessary information to understand the customer behaviour. Through this method of data collection it helps the management to understand and assess the consumer’s behaviours in the commercial bank of Ceylon. In order to carry out the interview they must satisfy certain requirements such as the interviewer must have good knowledge about in the area from nation or origin. And also the particular interviewer must be correctly well-informed and educated in the organization of these questionnaires and also he should have the information about to achieve the illustration for caring out the interview.

Questioners

Questioners is the another method use to collect information from the target customers to obtain the relevant information to understand the buying behaviours in the Commercial Bank of Ceylon Inc Sri Lanka’s. The Questioners should be well structured and it must be understandable to the customers in the market. A questionnaire is the one the strong research tool and it contains the various questions and some of the other relevant matters for the reason of collecting data’s from the customers in the given bank in the Sri Lanka. Both open ended and closed ended Questioners is used.From ended Questioners is carried out to obtain the information in the deliberate manner.Closed ended Questioners used to obtain the information in the single words such as the Questioners comprises of the YES or NO type questions. The reaction choices for the closed-ended question must be comprehensive and commonly restricted. After the information collected from the questionnaire next step is to analysis the information with the help of different test.

Surveys

Surveys is one of the approach used to gather the quantitative data’s to analyze the consumers behaviours in the banking industry in given inhabitants. Survey by paid form is the anther way most of the organization are used to gather the customers view about the product and services offered. Under this method, they are giving cash as a reward. The questions mainly utilized for the survey methods must be well planned and consistent. It is one most effective method for gathering the data’s in the big inhabitants. This type of data collection is easy to manage and open from the various mistakes.

Sampling

Sample is the area we adopt from the large inhabitants for the purpose of investigation. The random sampling technique was used to collect data. A Random model sampling is the one of the common way of selecting the sample. Random model sampling could be submitted to acquiring a numeral of free investigation from the same chance allocation. Certain doubt is connected with the calculation of random sampling. Sample plan is an exact plan for getting the sample from group. The total sample taken for the study was 100. The group consist workers from almost all the post in the banks as well as to the customers too. A wide variety of types of sampling methods are used to follow a line of investigation, but here the simple sampling method we adopt to conduct the study..

Focus Groups

It is the type of Qualitative research design under this type collection of populace are requested told about their awareness, view, belief, a approach about the product and services offered by the Commercial Bank of Ceylon Plc Sri Lanka’s.It is a interactive method so that the feedback and opinion of the customers are obtained directly. And also members are free to tell there opinion.Most relevant information is obtained through this method of data collection.

Secondary Data

Secondary Data is the information gathered by other person. It is type of data which is prepared already for some other purpose and used for analysis the consumer behaviour as a secondary source. It may be accessible from interior sources, or it may be gathered and published by a further business establishment. The most common foundations of the secondary information consists of the journals, Peer reviewed journals, Government publication on statistical data, surveys, company records etc… Secondary Data examination helps the investigator in many ways such as; this method helps to save the moment used to collect the information, offers high standard data etc… Secondary data was gathered and investigated by the firm to assemble the needs of different research aims. Secondary data collection method helps find out the difficulties more easily and properly and also it offers a foundation for the assessment for the information that is acquires by the examiner. Secondary information separated in to two ways like Qualitative information and Quantitative information.

Peer reviewed journals

It is a type of secondary source. It is scholarship connecting exacting academic area is printed. Various magazines are possessed by the Commercial Bank of Ceylon Plc Sri Lanka’s. All these journals are provided lots of information to assess the buying behaviours of consumers in the banking service sector. Various type of products’ are offered by the bank such as credit card, debit card, Customer services, and insurances facilities etc…Bank magazines and journals are clearly specify these areas and the also the consumer behaviours towards it. One of the United Nation foundation magazines “The Banker” contains that the Commercial Bank of Ceylon declares it is selected as the Bank of the year. It is hard for an individual writer or investigate panel to blemish each fault or error in a complex part of work. Peer reviewed journals submit to the effort completed at the time of the showing of presented document and support applications.

Government publication on statistical data

Government publication on statistical data is the secondary source used to obtain the information regarding the consumers buying behaviours in the Commercial Bank of Ceylon. Statistical data is the discipline of building efficient use of arithmetical information connecting to cluster of human beings. And also compact with all facets numerical data consisting not only the gathering, examination and explanation of such information but also the preparation of gathering of information in stipulations of plan the study and trial. Commercial Bank of Ceylon Plc products consists of commercial and personal banking and treasury. This particular bank carried out 335 ATM facilities in the Sri Lanka and13 of the ATM facilities in Bangladesh too. Commercial Bank of Ceylon function almost 172 bank opening in Sri Lanka and about 15 in Bangladesh. The main thing is that Commercial Bank of Ceylon functions in the Bangladesh, Middle East and Sri Lanka. The administration authority of Sri Lanka offers regular informs to the present dealings in the Sir Lankan safety condition, growth activities, an up to date synopsis of viewpoint of the various most important newspapers.

Data analysis

After collecting the Information through the questionnaires and interviews data analysis occupies functioning to uncover patterns and tendency in the set of information. It is an Important and the most stimulating stage used in the survey. Data analysis helps to make convinced that all the questions and the information collection tool will obtain the relevant data that we need for the research. The analysis of data is an enduring process of the research and also it will help to understand the buying behaviours of the customers in the banking industry. Banking industry nowadays serves a lot of services to the society so it is very much necessary to understand the buying behaviours consumers in the market. The analysis of the data is the scrutiny of obtained data from the questionnaire and the interviews by the way of inspection, transformation, and finally the conclusion. The data analysis consists of the investigative data examination, arithmetical data examination methods. The different apparatus used for the analysis are spontaneous and users friendly like the software and the statistical apparatus. The data obtained from the study can be mathematical or the quantitative in nature. If the analysis is in the quantitative form they are to be analyzed in the qualitative form and hiring the statistical tools also for the analysis. A choice of methods of data investigation is used for conducting the research studies, such as Qualitative study, Quantitative study and Content study.

Qualitative analysis of data

There is dissimilarity amid the qualitative and the quantitative study of research and also the comparative important amid these two types of data study are appropriate in the field of examination of the customer behaviours in the banking industry. The qualitative research are those that comprises of the data’s that are in the numerical form and the questions provided in the questionnaire are closed ended and the responded is not at a liberty to express his views and the suggestions. Both Closed ended and open ended questions help to obtain the necessary information from the consumers to analysis the consumer behaviours.

Content Analysis

The content analysis is another form of analysis of the qualitative data’s which are reduced or minimized to the arithmetical information and it is the technique of the investigating by of using the media all the way through the articles, newspapers and also through the messages of the politicians on TV and radio. The intention of the content analysis is the maximization of the all the relevant data needed for understanding the buying behaviours in the banking industry and communication among them. The type of the examination that are carried out through the television advertisement and all, the main intend of the content analysis is the sampling and to decide what to be investigated from the journals, books, magazines etc.

Quantitative Analysis of data

The quantitative research is the way to planned analyzing and examination of the quantitative data collection from the consumers to understand the buying behaviours in the field of banking industry. The idea of the quantitative method is the employment of the mathematical and statistical model and the analysis of the hypothesis. The quantitative link is the major connection among the empirical methods and the mathematical analysis used for the data analysis. The quantitative information is the main usage of the quantitative variables and they are measurement oriented and based on the outcomes. The different task involved in them is the stating of the hypothesis, initiating the variable and the adoption of the different kind of the strategic methods.

Methodology

The methodology is an explanatory of the procedure connect in the field of the consumer behaviour with respect to the Commercial Bank of Ceylon Plc. Sri Lanka.The methodology is the way to the analytically solve the troubles that are in involved in the research. As the science is concerned in the studying the research and the examination is concerned in scientific study. The scientific study involve in the study of the problem and the logic that are involved in the problems. It is necessary for the market analyst to know about the research methods but also about the various methodologies that are involved. It is very vital for the analyst or the researcher to analyze and design the methodology of the study. There should be an exposure to the research problems and to the understanding for the evaluation of the same.

It has various scope and the research methods and the data analysis method constitute the part of methodology. The scope of the methodology is vast in comparison to the methods incorporated. In order to carrying the big size examination the method must be consistent, quick and not space uncontrollable. Mostly the two clusters of ways are usually used to assess the composition of bank. The methodology is evaluated by the analyst and the externals are not involved in the assortment of the methodology. For the outstanding research the methodology should be systematic, logical, empirical and replicable. Data report is the procedure of investigating the information or data accessible in the present information sources.

Data Analysis

Data examination is a one of the means of examination of the data with the objective of highlighting productive information, suggesting conclusion and carry to build the high-quality result. The analysis of the information collected was passed through the two major phases. The first phase was to transliterate the information gathered from the bank selected and create comprehensive report for every case. In each case the report were likely prepared to assist the investigator in the next phase. Data plan is the general parlance in the research and the examination. It can be used for the both logical and the systematic examination. The data is the collection of the information denoted as a voyage of discovery. The data plan is the questioning of research which is the depot of awareness and information. The data analysis planning is the backbone of a total project and the information analysis, it can be done only by proper planning and the organizing of the each of the information.The main assignment involved in the each of them are fundamental in to the analysis. The main tasks included are the development of the analysis plan, where the analyses have to be conducted by the advising of the experience in the data analysis. The plan should be well analyzed and then made the assessment of the same. It is followed by the analysis of the plan and the prototype of the plan, which include the pilot structuring of the plan.

The third step includes the logical amend of the same data and the analysis of the failures and the defaults in the program. The appropriate investigation of the data should be done and the period and the resources are saved. The result sections that are obtained from the same are to be analyzed and they are to be recorded in the section of the findings. The consumer behaviour varies from circumstances to circumstances. And also the consumer would walk off various means to fulfil its wants depending on the communal, intellectual, family, monetary and educational environment. So, the proper understanding about the customer behaviours in the commercial Bank of Ceylon Plc must be properly identified by way of collecting proper information from the customers.

The main task involved in the each of them is vital in to the analysis. The main tasks included are the development of the analysis plan, where the analyses have to be carried out by the advising of the practice in the data analysis. The plan should be well examined and then made the assessment of the same. It is followed by the examination of the plan and the illustration of the plan, which comprises the pilot structuring of the plan. The next stage comprises the consistent adjusting of the same data and the analysis of the failures and the defaults in the program. Through the data analysis it will helps to get result of the analysis of the consumer behaviour with respect of the commercial Bank of Ceylon.

Decision trees logarithms

Decision trees logarithms are analytical form, which is make use of to the graphically arrange datas concerning probable alternatives, penalties and ending assessment. And it also used in work out for scheming possibilities and information drawing out.Decision trees are also make use of, for make a judgment among various action. It generates a diagram of a variety of hazards, rewards and possible significances of every choice. A decision Tree comprises of 3 kinds of nodes such as Choice node (be a symbol of squares), probability node (be a symbol circles), conclusion node (be a symbol of squares triangles) courses of action. The main benefit of a decision tree is that it helps to exact worth to the result of various activities so that it assists us to reduce the ambiguity of complex result.

Explanation

The decision tree for the difficulty is exposed underneath.

Quantitative techniques for Decision Makers help us offer by means of a thorough understanding of the function and use of quantitative techniques in efficient administration and administrative decision-making

Areas that need improvement

Organizational culture

The success of any company depends on the traditions, norms and the suit among the company culture, customers and the employees. The organization culture is the collection of principles to determine the operational efficiency, people behaviour and the beneficiaries of the company. The principles of them include the norms, beliefs and the values which are interior to the organization. The organization culture is the behaviour traits of the organization with norms, values and beliefs, which is emblematic, holistic, and amalgamating, with good stability which is much complexes for alteration.

The combined rules and policies by the organization is the self explanatory of the organizational culture. The culture is the base for the exhibiting of the individual behaviour with in the organization. The culture can be defined as the set of the certain observable behaviours and the fundamental values that oblige behaviour. the vision, mission , value statements are the factors used to describe the company’s culture. The commercial bank of Ceylon have their own vision statement states as “To be the most technologically advanced, innovative and customer friendly financial services organization in Sri Lanka, poised for further expansion in South Asia” (Vision & mission, 2010) and the mission statement of them include the “Providing reliable, innovative, customer friendly financial services, utilising cutting edge technology and focusing continuously on productivity improvement whilst developing our staff and acquiring necessary expertise to expand locally and regionally.” (Vision & mission, 2010). From the mission and the vision statement of the commercial bank of Ceylon it is understood that the organization culture mainly focus on the innovation of the latest technologies, the customer relationships and the financial constraints.

The commercial bank of Ceylon is much concerned about the organization culture and the practices, the company has released the administrative circular for the employees in their organization and the essentiality of maintaining the culture relating to the ethics, and the importance in the maintaining the success or the failure of the organization.

The organization culture is very important and applicable to the senior most officials in the organization, managers and to the all other employees in the organization. The culture policies and the principles are much crucial to the management where they have to make a clear understanding of the organization members and the motivations. The new measures and the activities are complicated to implement as they do not mix up with the culture.

Marketing of organizational services

The marketing services of the banking services helps in identifying the marketing criteria of the commercial Ceylon bank and in understanding the commitment of employees in the state owned bank. The marketing of the organizational services is the well designed attempt with the approach to defeat the different kind of the resistance to the change, integration and the co-ordination. The shift towards the importance of the human capital and the different change in the banking sector lead to the change in the paradigm shift among the employees. The marketing of the organization finds an equal opportunity for the employees and the customers.

The marketing of the organization has to consider the basic marketing tactics and the promotion plan. The overall organization goals have to be considered in the marketing of the organization. The marketing of the organization takes different steps into account, the first and the foremost is the identifying the target market, then it is followed by the analysis of the competitors and the collaborators, the pricing have to be considered and the pricing consists of the identifying the market promotion and the marketing plan, which include the strategic plans and the budget constraints. The main back bone of the marketing is the advertising plan which is the cash paid form of promoting the product in the print and the mass media, the advertisement expenses are those lead to a big amount to the organization. The certain expenses are to be taken care of and the effective marketing of the products have to be done in order to identify the trends in the market in terms of the service products.

Customer relationship management

The customer relationship management is an upcoming trend in the current scenario, The CRM is the business subject, were the banking sectors realize the need for the long term relationships and the marinating the long term relationship with the people. The CRM has the ability to attract and retain the customers. The present situation is the competitive banking market with much attraction to add on in the industry, The CRM is the best way of the banks to retain the employees in the market. CRM can help the commercial bank of Ceylon to understand clearly business motive and to retain the customers and to make the business process with much of the improved process in the market.

The maintaining and the managing of the relationship with the customers and making them satisfied and delighted in the organization is much essential in the age of globalization, the customer satisfaction is the only way to boost the success and to be the catalyst in the organizational growth. The perception of the company is based on the attitudes and the good experiences about the different services provided by the firm.

Customer relationship

The customer relationship marketing is the communications that facilitate the delineation of and increases the value of the customers and the correct means to motivate the customer to be loyal to the firm. The customer relationship management is the strategy and process of acquiring, retaining and partnering with the different selective customers in the industry, for the creation of the advanced and the qualitative value to the customer. The customer relationship management in the banking industry can be defined as the development of the long lasting strategy agreement with the customer depending on the value basis. The customer relationship in the banking industry depends on the philosophy of the doing business on the strategic orientation that focuses on keeping on improving the current interactions with the parties that involve rather than dealing with the new parties. The philosophy of the CRM is the underlying concept that deals with the maintaining of the long lasting relationship among the customers in the industry.

CRM marketing

The important aspect in the customer retention is the CRM marketing, the banking sector should develop the time in terms of the evaluating and controlling the quality of the relationships, the two types of monitoring the relationships are the database of the customer and the relationship survey. The current customers are surveyed in the different terms of the customer relationships. The successful CRM identify the needs and wants of the customer and then they incorporate with the goals and the objectives of the organization.

In the age of globalization and technology innovation, the internet has a vast role in the organizational growth and the wide spread of its facility. The use of the internet provides a better passage for the electronic implementation of the CRM. The electronic CRM entails an efficient communication and much involvement in the interaction with the customers from the customer and the organizational point of view. In implementing the electronic services the banking sector has to define the main business objectives and have a better access to the current CRM elements in the sector. The goals of the CRM are to help the business in achieving the success in the operations in terms of the services and the functional efficiency. They concentrate on the excellent customer satisfaction, the marketing and the selling of the banking products and the services very efficiently, minimizing the marketing process, attracting of the customers and in increase in revenue.

The main benefits of the CRM implementing for an organization are the helping the organization to gain a better understanding of the customer needs and in improving the overall satisfaction of the customer. The electronic CRM are helping the business to take a better advantage of the web technology and to maintain an enduring relationship with the customers and the banking sector which have implemented the electronic CRM has given an eye opening benefit for the firm. The non implementations of the CRM are found to be the victim of the competitive disadvantage.

Risk management/Crisis Management

The risk is the negative aspect in the business; it is defined as the negative impact in the business matters as it can be due to the internal and the external factors of the firm. The risk varies to different extends, and is present in all sectors of the business. The risk management contributes for the success of the bank; the objective of the risk management is to formerly identify the risk associated with the firm and to identify the consistency in the risk factors and the different impacts on the banking sector.

The risk in the commercial sector can be managed by the designing of the different policies and principles to analyze the different type of the risk; the commercial bank of Ceylon has the different kind of the risk type and the measuring of the appropriateness in the organization. The risk management system in the bank are designed in such a manner as to structure the address the both the banking and the non banking risk covering the balance sheet exposures. There are the credit risk management activities and the credit accordance with the bank and the policy and the directives are cost determined. The credit management analyses evaluates and direct the credit port folio of the bank by the assessing the overall risk of the firm.

There are three type of the risk that are associated by the firm they are the risk involved in the operations, credit issues and the market risk. The credit risk is the potential that the borrower or the counter party may fail to meet the obligations in terms of payment or the borrowings.

In the current situation it is much obvious that the commercial banks have improvised much in the performance, productivity and in profitability. The commercial bank of Ceylon had an improvement in the overall capital adequacy which had made them to increase the performance and to have a rise in the statutory level. The deregulatory banking environment has been a factor along the risk factors fro the improvement and to gain the profitable opportunities in making the managing and the administering the banking sector with a pace with the customers and to have an increasing opportunity in terms of profitability and revenue. The commercial Bank of Ceylon is striving to raise up the credit assessment and the risk management potentials by the retaining the employee strength and the innovating of the new technologies and to development for a better performance overall.

In the credit assessment the banking experts have to sustain a good rapport and balance among the risks, customers and credits. The banks need to have a diversified of products like the loans, deposits, savings, and oversees deposits. The bank should balance in the interest rates where the lower the interest it may lead the bank to the loss. The financial reserves and the capital investment should be good for the firm; the commercial bank should have the optimum of the resources, where they should have the investment to meet the future needs, and to have a risk free and a profit oriented firm.

The investment is always the risk which is associated with the credit, and it comes to the investment decision of the large companies the decision can be used in a good manner in dealing with the risk and the returns. The credit risk is very difficult, especially in lending of the loans, so the bank has to take up the sufficient security which equalizes the amount of the loan. The banks have to cross check the each of the security aspects before providing the loans.

The risk of the losers is the major factor that has to be considered and the return off and the bad debts also lead the bank to major insolvency issues.

If the risk management is higher for the banks, the capital investment in the reserves also should be at a higher rate, where it may lead the bank to the instability and insolvency. As the commercial banks are considered the bank should have the separate department for the assessing the risk and monitoring and evaluating the same. The department should also analyze the portfolio and the loan review and act as a performance indicator of the bank.

Buyer behaviour

A buyer is an individual who purchases the goods or hire the services from the organization. A buyer or the customer may not be the end user or the current purchaser of the product. A buyer is the one who actually gets engaged into buying or the probability to be the buyer in the near future. The buying behaviour is the sub division of the human behaviour exhibit, the buyer behaviour concerns the explicit variety of the human actions, the human nature that have the direct effect on the buying and selling of the goods in the marketing origination.

The buyer behaviour has a lot of contributions from inter disciplinary subjects like the economics, psychology and political science and cultural affairs. The numerous cultural traits also contribute to the buying behaviour; the main aspects are the motivation, attitude, personality, expectations, beliefs and values.

The motivation is the driving force depending on the behaviour, the different theories by Maslow help in knowing the motivation postulates which depend on the hierarchy of the needs, wants and the desires. The buying behaviour is much depended on the attitude; the attitude defines as organizations which rely on the emotion, perception, and the cognition process.

Many of the organization have the different departments to research on the needs, wants and the consumer tastes and preferences in making the product well and to make it available at a very ease to the consumer. The different strategies that are related to the consumer in the buying market are the nature of the markets, the motivational factors, the attitudes, preferences and the intentions.

The nature of the market consists of the customer relating facts like the location, characteristics, change, comparisons and the market expectations. The motivational factors include the motives for the purchase, the different factors that influence the specific features, store preferences and the shopping comparing product with the competitor product. The attitude depends on the attitude towards the product, the satisfaction provided by the product and the strength of them and the outstanding benefits of them. The preference by the buyer is the customized product and the intentions of them include the purchase intentions and the analyzing of the relationship between the aspiration and the purchaser. The cognitive dissonance is the major factor affecting, which include the negative psychological feeling of the consumer stating weather the product is satisfactory or weather they are worth for the cash spent.

The buyer behaviour has the different patterns that are involved; they are the degree of involvement and the time taken. The degree of the involvement is the behavioural pattern in buying of the products by the customer. As the commercial bank is considered the behaviour depends on the reputation of the banks and the services offered and by the comparative study and the analysis with the other institutions offering the same services. The time can be divided for the different kind of the methods in the behaviour, they are the planned buying, where a proper planning is done on the variety and the budget, the second kind is the emergency buying where they are only need based and after the customer do not maintain any rapport with the organization and the third mode is the impulse buying where the decision on the organization is made on all the sudden, where a pre thinking or the proper planning is not done.

Strategic Management

The strategic management is the management which includes the designing, researching and implementing the long term action plans with long term objectives and mainly emphasis on, mission, vision, objectives, plans and the policies of the organization for achieving the success. Strategic management is said to be a continuous process which monitors the entire business in which the company is involved, the strategic management makes the competitor analysis and set the targets and goals to compete with the competitors, The strategic management in the baking sector has the different department for evaluating each strategy annually to identify the methodology of implementing and whether it has succeed or to be replaced by a new strategic measures to cope up with arising circumstances, technology, competitors, and situations. A strategy is the store house of the commitments in the organization and the strategies are interdependent to gain the competitive advantage of the firm. The success and the failure of the business enterprise depend on the ability and the efficiency of the organization in meeting the long term goals and the targets of the organization. “A strategic intent is a company’s vision of what it wants to achieve in the long term. It must convey a significant stretch for your company, a sense of direction, discovery, and opportunity that can be communicated as worthwhile to all employees. It should not focus so much on today’s problems but rather on tomorrow’s opportunities.” (Strategic management, n.d).

The success of the strategic management firm depends on the better planning process in the organization. The different planning process in the organization includes the clear understanding of the business and the growth opportunities of the business and the area of the improvement of key areas. The competitions have to be considered well and the thorough knowledge of the firm’s competitors has to be analyzed. The strategic planning also deals with the good relationship to be maintained with customers in the banking sector. The stake holders and the customers have to be focused in order to make the good customer relationship and to strengthen the relationship among the customers to make the good contact with the customers and to increase the effectiveness and the efficiency of the organization. The strategic planning process deals mainly with the mission, vision, competition analysis, strategy formulation, implementation and control.

Strategic management engages in the various decisions with reference to the banking industry, and the opportunities in the surroundings and the upcoming market trends. It depends on the task that can perform and provide the sufficient resources for the discarding what it doesn’t want to perform. The strategic values of the decision makers and the aspiration from the key players the ethical and the legal constraint can be focused.

The strategic management can be devised according to the changing situations by the process of evaluating the strategy. The strategy management forms an essential step in the process of controlling the business enterprise. The strategic evaluation is the process to look deeply in the analysis of the critical factors which identify the quality of the current situation and the evaluation results. In short the strategic evaluation procedure consists of the looking of the different facts that are relating to the policies, plans and the approach towards the business in the organization. The strategic evaluation is mainly on the criteria of the business appropriateness, policy, principles and the critical assumptions based on the organization.

Results of the study

The results of this study do validate the positive impacts of consumer behaviour on Sri Lankan banking business. The majority of the respondents were of the opinion that Sri Lankan banking, despite the crises in the island nation, does reach global standards and use of technology has been immense, especially with regard to fund transfers, use of ATMs and other related banking services. CBC having carved a niche of its own in Sri Lanka, customers who have experienced its service would be diffident to use alternative services- such is the exceptional customer friendly and warm kind of response customers, clients and even tourists’ gain in their interactions with this premier bank of this country.

To a very large extent, it could be assumed that the high levels of business service, customer care and personalized attention that is inherent in this kind of banking business needs to be carried forward in robust measure. Again, the study does seen to concur the fact that while major improvements need to be sustained in the privacy and confidentiality of transactions, greater deployment of safe technology and larger array of products in line with other global banks like Stanchart, ICICI, British Bank of the Middle East, and so on, Since banking business is highly competitive in the global arena, it is important that CBC needs to gear itself to meet this challenge head on, especially in the present situation of licenses being given for many private banks and money changers’ to operate within and outside the country. There is need to increase and maintain market share and also develop core banking services in line with banking needs all over the world. One of the major revenue assets that Sri Lanka possesses is large tourist traffic throughout the year that needs to be complemented with excellent support services by the islanders through taking greater care and comfort for both tourists and businessmen alike. With Foreign direct investments (FDI) in Sri Lanka on the increase due to a strong and stable civilian government, banking has indirectly received a strong impetus and it is only posterity that could tell the world how best this has been utilized by the banking sector in this country. Moreover, Sri Lanka’s deep and abundant export potential has also the support and backing of the banking system, for which there are marked customer preferences and choices. As the major and Number One local bank in Sri Lanka, CBC perhaps has a wider role and responsibility to be able to take this to the next level of global business and reinvigorate the country’s sagging economy besieged with internal strife and decade’s long wars.

Enhanced levels of service to customers

In line with the requirements of customers, the bank needs to enforce a climate of innovativeness and urgency in banking transactions in line with customer trends and preferences. In a unified and globally structured banking system, private banks need to show continued performance to remain on top. This may be one of the reasons why a local bank like CBoC has won accolades over the past decade or so, which sets it apart from its competitors and other banks in the country. Perhaps these banks has got its fundamental right and have focused on its core banking skills in order to provide excellent customer service over its chequered history of well over a century in this business. It offers a total customer servicing including, inter alia, web-based banking, and a network of over 300 ATM all over the country, including ATM’s within the premise of select customers and clients. The facilities offered to customers could be as follows:

• Large stratified ATM facilities
• Internet Banking services
• Wide number of branches
• Supermarket services
• Trade finance and institutional banking
• Derivative trading and credit instruments
• Banking services offered include corporate banking, personal banking and treasury operations including risk management, foreign currency and dual currency deposits.
• Immediate money transfer service
• Credit Card transactions
• Weekend and holiday banking
• “Priority Banking” (Enhancing customer convenience, 2008).

The wide array of banking products and services proffered by CBoC is perhaps unmatched by any other large scale banking unit in this country and may be one of the principal reasons why customers always seek out this bank as their banking partner.

Conclusions

Perhaps a limited survey of the kind used for this survey needs to form the premise for a large, more well expanded research program that could underpin the service levels of commercial banks vis-à-vis the global banking business. When viewed from a strictly commercial perspective it could not be denied that with all the issues (internal and external) that confront the banking industry in Sri Lanka, it has indeed shown remarkable resilience and strengths of character to be able to overcome these hurdles and still remain globally competitive.

Again, various other issues like profitability, return on assets and investments and most predominantly, returns to shareholders and employees are major issues that need to be addressed. Customer behaviour being positive and well oriented towards growth, it would be correct to assume that the future does augur well for local Sril Lankan banks like Commercial Bank of Ceylon. Political stability and economic recovery packages need to be infused with the help of FDI, setting up of foreign businesses in the country and making greater economic inroads through greater exports, favourable balance of trade and payment situation, strong foreign currency reserves and al well directed and people oriented growth development plans and programs that are intended not to hoard funds and wealth in the hands of a select few but to use the same for creating a better social order and greater betterment for the people of this island nation.

Besides, it is also important that although at the moment this bank has the innate capacity and competencies to offer good customer service, it is also necessary for it to be able to offer sustainability and improved and upgraded service in the time to come, not only to increase the quantum of its business but also to be able to preserve and enhance its market share in future. The impact of competitive business elements is uncertain just as much as working in a global banking environment.

Thus just as customers and clients need to take extra care of their banking priorities, it is also necessary for banks to offer a wide and varied array of banking products, services and utility to be able to meet increased demands from different sections of the customer community but also gear itself to meet future challenges from the global banking industry of which it forms a integral part.

Perhaps one of the redeeming features about the banking industry in Sri Lanka is that it is not exposed to the kind of major economic upheavals and vicissitudes that could be encountered by a larger nation like India or Russia. Since the quantum of business involved is relatively small, the risk factor may be smaller and easier manageable. But this, in no way offers any kind of justification for a poorer or low grade performance.

As this research paper has rightly proved, the banking sector in SL and more particularly the larger banks, have their tasks clearly cut out, in terms of providing a larger dose of safety, stability, fund accretion and good returns to investors besides excellent service to all genres of customers and clients.

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