Marketing of Services in Financial Institutions “ProCredit Bank”

 

Introduction
The dynamic evolution of marketing in the banking sector is a continuous process influenced by technological advancements, regulatory changes, and ever-evolving customer expectations. Recognizing and addressing customer needs are essential for banks seeking sustainable relationships and a competitive advantage in today’s financial landscape. The diverse functions of marketing management play a crucial role in this process, from acquiring and retaining customers to promoting financial products, building the brand, and market research. Embracing data analysis, strategic marketing not only meets the diverse needs of customers but also transforms banks into dynamic and adaptive entities, positioning them as reliable partners during customers’ financial journeys. As the industry continues to navigate transformative changes, strategic marketing remains a key driver for fostering loyalty and ensuring the long-term success of financial institutions.

Financial Needs
Bank Response to Consumer Needs
Understanding the intricacies of customer needs is crucial for financial institutions seeking to offer tailored and effective services. A detailed examination of these requirements is essential for banks aiming to foster long-term relationships and maintain a competitive advantage in the dynamic financial landscape.

To effectively meet customer needs, financial institutions must delve into a comprehensive analysis of the various financial demands of their clientele. This includes understanding different income levels, risk appetites, financial goals, and life stages of customers. Conducting thorough market research and leveraging data analytics, banks can gain invaluable insights into the specific needs of different customer segments.

The complex dimensions explored in the banking field highlight the necessity for adaptability and customer focus. Analyzing income and expenditure patterns provides a foundational understanding that enables banks to tailor their offerings to align with the diverse financial realities of their clientele. Delving into risk tolerance and investment objectives is essential for creating personalized solutions that resonate with individual preferences, fostering not only customer satisfaction but also a sense of financial security.

Considerations of life stages emerge as a guiding principle, acknowledging that different phases of life require different financial products and services. By acknowledging and accommodating these diverse needs, banks position themselves as essential partners throughout their customers’ developmental journeys. This multifaceted approach transforms banking from a transactional effort into a dynamic and adaptive relationship, strengthening customer loyalty and positioning financial institutions as formidable forces in an ever-evolving landscape.

Meeting customer needs through strategic marketing is a comprehensive approach that empowers financial institutions to build a strong connection with their clientele. By deepening their understanding of customers, these institutions can not only develop targeted products but also personalize their communication strategies. This tailored approach, encompassing educational initiatives and personalized communication, not only attracts and retains customers but also positions the financial institution as a trusted partner in the customer’s financial journey. Ultimately, the symbiotic relationship created through strategic marketing efforts ensures that the institution is not merely a service provider but a facilitator of financial empowerment and education for its customers.

Coverage and Complexity for Bank Marketing
The Concept of Marketing
The concept of marketing encompasses the business philosophy of an institution or individual, characterized by a focus on the consumer expressed through continuous and harmonious efforts throughout the entire process of fulfilling consumer needs and desires and achieving the objectives of the enterprise. If we want to know what our job is, then we must start with the mission. There is only one correct definition for the mission of the enterprise: customer satisfaction. What the enterprise thinks to produce is not of primary importance, especially not for its future and success. Crucial is what the consumer thinks to buy, specifically what represents value for them, determining what your enterprise produces. To understand the concept of marketing correctly, it should be emphasized that the activities of the enterprise begin and end with the consumer. Through marketing, the enterprise identifies and analyzes their needs and demands and pursues them until fulfillment.
Given that the key concept of marketing focuses on the consumer, any business entity engaged in the production of products and services for success never dares to forget that:

In a free market economy, the consumer is king.
Every time, we must put ourselves in the consumer’s shoes.
By fulfilling the needs and demands of the consumer, the permanent goal is the satisfaction of their desires, etc.
Dr. Philip Kotler defines marketing as the science and art of exploring, creating, and giving preference to the achievement of market needs toward profit. According to Kotler, marketing identifies unfulfilled needs and desires, determining the measures and quantity of the market.

Peter Drucker says that if we want to know what our job is, then we must start with the mission. There is only one correct definition for the mission of the enterprise: customer satisfaction. What the enterprise thinks to produce is not of primary importance; what it presents as value determines what your enterprise is.

The American Marketing Association states that marketing is the process of planning and implementing the concepts of pricing, promotion, and distribution of ideas, goods, and services with the aim of creating an exchange that satisfies the needs of individuals and organizations.

How was marketing created in banks!?
The evolution of marketing in the banking sector reflects a dynamic interaction between economic, technological, and regulatory forces over time. In the early stages, when banking services were basic and few in number, personal relationships and trust were paramount. However, with the development of industrialization at the end of the 19th century, competition among banks intensified, prompting the recognition of the need for marketing efforts. After World War II, an increase in consumption and economic growth pushed banks to diversify their services, and marketing strategies shifted towards creating brand identities and promoting a wider range of financial products.

The second half of the 20th century witnessed a transformative impact of technological advances in banks. Computers, the internet, and later digital channels revolutionized how banks conducted business. Marketing strategies adapted to this changing landscape, incorporating digital channels for advertising, communication, and customer interactions. Globalization and deregulation further increased competition, requiring sophisticated marketing approaches, including market segmentation and targeted advertising. In the 21st century, digital transformation accelerated, with online banking, mobile applications, and digital payment systems becoming integral. This led banks to adopt digital marketing strategies, emphasizing social media and personalized approaches through Customer Relationship Management (CRM) systems.

As the banking sector continues to evolve, marketing strategies remain dynamic, shaped by continuous technological innovations, regulatory changes, and shifts in consumer expectations. Striking a balance between maintaining trust, adhering to regulations, and embracing advanced marketing techniques is likely to define the future landscape of marketing in the banking industry.

What were the changes in the banking sector over the past 10 years?
The banking sector has undergone significant changes in the past decade, primarily driven by rapid advancements in technology. The shift towards digital transformation, the emergence of fintech disruptors, and the integration of innovative technologies such as blockchain and AI have reshaped the industry. This evolution has led to a more interconnected and customer-focused banking landscape.

As banking institutions navigate these changes, the impact on marketing approaches is evident. Personalization, digital marketing strategies, content creation, and the integration of AI-driven tools in customer service have become integral components of the industry’s marketing. The use of social media and influencer marketing reflects a broader effort to engage with customers on platforms they frequent, creating a more dynamic and interactive relationship.

Looking ahead, the banking sector is likely to remain on this trajectory of technological innovation, adapting marketing strategies to meet evolving customer development expectations. Emphasis on data security and regulatory compliance will continue to be paramount, and the industry will need to strike a delicate balance between embracing innovation and addressing potential risks. Overall, the banking sector will continue to be shaped by the dynamic interaction between technological advancements, regulatory frameworks, and the evolving needs of the modern consumer.

Functions of Marketing Management in Banks
The diverse functions of marketing management within the banking sector emphasize its critical role in the success and sustainability of financial institutions. The foundational pillar of acquiring and retaining customers underscores the importance of identifying and attracting targeted customer segments through strategic campaigns, ensuring a strong customer base during the implementation of programs to cultivate customer loyalty. At the same time, promoting financial products involves developing and communicating various product portfolios, using different channels to effectively reach and engage the targeted audience.

The second crucial dimension involves building and positioning the brand, emphasizing the creation and maintenance of a positive brand image. This includes strategic differentiation from competitors and the careful management of the overall brand experience. The third dimension, market research, implies the need for continuous adaptation to stay aligned with customer needs, industry trends, and competitive landscapes.

Use of Marketing in Financial Institutions
Case Study — ProCredit Bank

We aim to be the “house bank” for very small and small businesses because we believe these enterprises create numerous job opportunities, contributing to the development of the Albanian economy. We strive to promote a culture of savings among families and individuals, as well as to provide transparent and responsible banking services for people living and working in the areas served by our bank. For ProCredit Bank employees, implementing responsible standards and principles is not just a way of working; it’s a way of life. We offer more than just a job: we provide an opportunity to be part of an ethical institution, focused on responsible banking.

For ProCredit Bank, responsibility means:
Transparent communication and respect for our clients and colleagues.
Providing a reliable, understandable, and easily usable financial service designed to meet our clients’ needs.
Creating a positive and sustainable impact on the development of local businesses, promoting environmental sustainability, and the well-being of our employees.
This responsibility in banking allows us to build a long-term relationship with our clients based on mutual trust. We believe in these principles, and their implementation in our daily work sets us apart.

Brief History of the Enterprise
It is the successor of MicroEnterprise Bank, the most successful bank in Kosovo since 2000, founded through the initiative of several internationally renowned financial institutions. It was the first bank opened in the post-war period in Kosovo, quickly transforming into a true commercial bank offering a wide range of banking services. In its early years, this bank received significant donor funds for Kosovo and became the leading savings bank. In 2002, it became the first bank to offer card services to its customers, making Kosovo one of the most developed regions in terms of card usage in banking. In 2003, this institution was rebranded as ProCredit Bank, joining the ProCredit Bank network. It continues to maintain a high pace of providing consumer services, ensuring quality and satisfaction. ProCredit Bank receives the Corporate Social Responsibility 2021 award from Kosovo CSR Network.
This award comes as a result of ProCredit Bank’s dedication to achieving sustainable development objectives within the UN’s 2030 Agenda, as well as its continuous contribution over the years to improving community well-being and implementing ongoing policies aimed at environmental protection. “For ProCredit Bank, this award is an additional confirmation of the implementation of many projects that clearly outline our strategy and high social responsibility, deeply embedded in each of our colleagues,” emphasized Besar Pllana from ProCredit.

Mission of the Bank
ProCredit Bank is a development bank that offers comprehensive banking services. We provide quality services for private individuals and businesses. In our operations, we adhere to a set of basic principles:
-We value transparency in communication with clients.
-We do not promote consumer loans.
-We offer services based on each client’s situation and sound financial analysis.
By offering simple deposit services for private clients and making substantial investments in financial education, we aim to promote a savings culture that can bring stability and security to families. Our shareholders expect sustainable long-term returns on investment and are not interested in maximizing short-term profits. We make significant investments in staff training to create a pleasant and efficient working atmosphere, offering the most honest and competent services to our clients.

Internet Marketing
Internet marketing at ProCredit Bank is well developed. One notable service is E-Banking, an electronic banking service that allows consumers to perform banking services 24 hours a day from home or office. Through this electronic service, consumers can check their bank balance and conduct various transactions within and outside Kosovo. With these services, clients can save time and have direct access to their accounts for any transaction at any time. E-Banking is highly convenient for individuals working during the day and unable to visit a physical bank. The security of funds is high, and it is widely used by many reputable banks.

Through the internet banking system, clients can use the following services:
-Execution of institutional payments within ProCredit Bank branches
-Execution of national payments with other local banks in euros
-Execution of international payments for commercial transactions.
Information on accounts:
-Account movements and balance
-Daily statements of accounts
-Viewing the latest orders through E-Banking
-Viewing all orders made through our bank.

Media Used by the Bank
Various media are utilized for marketing purposes, including online platforms, TV, print media, etc. Through the internet, different websites provide a platform where enterprises can advertise for free, reaching a broader audience. TV marketing involves airing various commercials, but unlike internet websites, TV advertisements are paid. Print media, whether newspapers or magazines, also involves paid marketing.

Communication and the media used for communication by ProCredit Bank are diverse. The bank communicates effectively with its consumers through various media, including print media such as newspapers and magazines, billboards, TV, various videos, and its website on the internet.

Promotion
Promotion is the communication process between the business and buyers with the aim of creating a positive perception of products and services. Promotion at ProCredit takes various forms, such as advertising, publicity, personal selling, sales promotion, online promotion, in newspapers, on billboards, etc. Personal selling at ProCredit Bank occurs when the sales force or ProCredit Bank staff collaborates with consumers to build good relationships and aims to achieve sales. Personal selling is carried out through sales channels such as TV, radio, newspapers, new media, direct advertising, and is a primary form at ProCredit Bank. Promotion is also done through various advertisements on TV, such as ProCredit Bank appearing daily on RTK, which consumers see and may be interested in purchasing a bank product. Promotion is also done in daily newspapers, such as in the widely-read newspaper “Kosova Sot,” and on the internet, where the bank’s website presents all information and data for consumers to be informed about all bank rules. Advertisement analysis. The main advertising media are newspapers, magazines, television, radio, direct advertising, etc. Newspapers are the most widely used medium for distributing advertising messages. Newspapers have their advantages and disadvantages. Advantages include the possibility of various announcements, reliability, etc. Disadvantages include not being read by everyone, a short lifespan, poor material quality, etc. ProCredit Bank consistently runs advertisements, indicating that its promotion is well developed. Advertisements for this company are presented on occasions such as holidays, the introduction of new services, products, new packages, with advertisements mainly appearing on the last page of the newspaper or on its back cover. The advertisement covers the entire newspaper page, informing consumers on how they can contact the bank, directly by visiting the bank, via phone, and through its website. Company “ProCredit Bank”

Products
ProCredit Bank offers excellent services for clients and a wide range of banking products:
-Money transfers
-Current account
-Savings account
-Savings Plan
-Time deposit account
-Cards — Credits
-Overdraft for private clients
-Banking packages
-E-banking — SMS services
-General terms and conditions
-Sales point terminals
-Contracting partners
-Pricing — private clients
-SMS Top Up
-Recommendations on security measures for using E-Banking.

Prices
Prices include all information and fees of the bank, such as:
Prices for opening and maintaining the account, including:
-Account opening
-Minimum balance
-Account maintenance fee
-Interest rates, etc.
As of June 1, 2017, the bank applies a monthly commission on the current account. This monthly commission for private clients includes the maintenance of the current and savings account, issuing and maintaining the debit card, e-Banking service, token, and Customer Identifying Code. For business clients, the monthly commission on the current account includes maintaining the current account, issuing and maintaining the debit card, e-Banking service, token (up to two tokens if necessary), and the Customer Identifying Code. All the mentioned services are necessary to operate with your bank accounts in the 24/7 Zones and other alternative channels offered by the bank. If you do not have any of the mentioned services, you can visit the nearest bank branch to acquire these services.

Distribution
Distribution is one of the 4Ps of the marketing mix that is responsible for:

Creating contacts with consumers
-Selling products
-Delivering products to the consumer
-The distribution of the bank is done in the following way:

-The funds of the loan up to €10,000 initially must be distributed to the borrower’s account.
-The withdrawal of the loan in cash is allowed up to the amount of €10,000.
-Funds of the loan over €10,000 from the borrower’s account must be distributed only through bank transfers supported by valid documents.
To be in compliance with the paragraphs of this clause (as read above), the bank must ensure an internal control system that will distribute the loan in accordance with the specified regulations.

SWOT Analysis

Strengths:
-Loaded website with abundant information for clients.
-Easy and fast way to find information.
-Multilingual content.
-Business loans.
-Loans for vehicle purchases.

Weaknesses:
-Irregular functioning of E-banking.
-Delay in electronic payment if made over the weekend.

Opportunities:
-Adjustment of the electronic payment system.
-Faster information retrieval, etc.

Threats:
-Threats from competition in E-marketing.
-Irregular management of the website.

Comparison of ProCredit Bank with Teb Bank
The main branches of ProCredit are in Pristina, Gjilan, Peja, Prizren, Ferizaj, and Mitrovica, while Teb has 27 branches and sub-branches in various countries. ProCredit allows you to get higher loans than other banks to help improve your business efficiency. The best opportunities are with ProCredit Bank.

Being among the most recognized and largest companies in our market means that you will face a series of competitors aiming to come in first. ProCredit faces not only one but several competitors, including Teb, Raiffeisen Bank, etc., well-known in our market. However, consumers and various social networks make us aware of the competition and the preference for these two giant companies.

Conclusion
ProCredit Bank is a quality service bank that works to meet consumer demands. Our policies are based on the philosophy of open and transparent communication between the staff, a philosophy that is the focus of all ProCredit banks worldwide. We place special emphasis on transparency in the recruitment and selection process, as well as ongoing professional development for our employees. We believe that the commitment and competence of our employees are essential to providing a very high-quality and responsible service to our clients. ProCredit Bank emphasizes the importance of building an honest and mutually respectful relationship between employees, as well as creating a pleasant working environment, with open communication and a long-term perspective. We seek employees who are not only interested in a specific position but also interested in understanding our long-term objectives. Applicants must also have a desire for continuous development within the institution and demonstrate a commitment to our ethical and moral approach in providing banking services.

Reference
Promocioni –Prof.As.Dr. Artan Duka ,Dr Niko Pano
Strategjitë e marketingut- Prof .Nail Reshidi, Prishitnë, 2007
www.procreditbank-kos.com — Kompania “ProCredit Bank”

-Nebih Haziri