Determining the effectiveness of relationship banking within Absa medium business segment

Abstract

South African commercial financial institutions have during the past years witnessed tough economic conditions, whilst competition between the banks have continued to increase as well, with each commercial bank trying to optimize its sales capabilities in the most effective and efficient manner. Absa medium business banking division has also been exposed to these tough economic conditions, coupled with intense competition from other local financial institutions. In attempt to ensure future success of Absa medium business bank, it would be prudent for Absa to determine the effectiveness of relationship banking within Absa medium business bank. The literature review that has been done parallel to the research studies, provides a conceptual framework of the attributes that are directly related to relationship banking, whilst it also outlines the important role which the concept of relationship banking fulfils within a service-oriented organistation such as Absa bank. Empirical studies in the form of qualitative and quantitative research have been performed, in which the data that have been collected from market research information, has statistically and analytically been done and assessed, which provided valuable insight information in support of the objectives of the study proposal. The study also provided for opportunities for additional research to be undertaken in respect of concepts relevant to relationship banking and relationship marketing, but not limited to service-oriented departments within Absa, but also to any other organisation striving to be client-centric, and striving to enhance its sales-force effectiveness, productivity and efficiency within the "eyes" of the customer.