Commercial banking all over the world has developed on the solid foundation of customer relationships. Thereafter, as the banks acquired monopoly status the nature relationships underwent a sea change when they experienced a situation of “walk in business.” Customers also resorted to banking in a routine manner on a transaction or a product basis.
A banking relationship is a mutually acknowledged, conscious commitment between the customer and the bank to do business with each other over a sustained period of time. Not all consumer wish to buy on relationship basis, preferring instead a transaction basis in which each buying decision is made independently and is not affected by past purchase.
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