Search

What is Relationship Banking?

Important banking qna for banking aspirants, which is helpful in banking exam.

Apr 13, 2015 16:24 IST
facebook IconTwitter IconWhatsapp Icon

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.

Related Stories