Market Segmentation And Effective Product Design For Financial Institutions To Achieve ‘Financial Inclusion’ In India
Keywords:
Financial Inclusion, Inclusive Growth, Cluster Analysis.Abstract
Finance has become an integral part of an economy. Banking institutions play a vital role in facilitating the development of financial system as well as to achieve ‘financial inclusion’ which is the prime objective of policy makers in our economy. The term ‘financial inclusion’ has gained popularity in all emerging economies especially in Indian economy after financial sector reforms. Financial inclusion has become an essential pre-requisite for achieving ‘Inclusive Growth’ in Indian economy and for accelerating economic and social life of all people. The basic financial services at affordable prices to the weaker section of the society is an essential task for policy makers in recent era. Without changing its main regular functions, how a financial institution can grow through applying different environmental friendly policies throughout the India is a big question? Due to the various constraints like lack of infrastructural problem, environmental problem, geographical problem, basic education and local political problem, financial institution are not able to reach the needy people in rural areas. Therefore the development of proper plan and product design for individual and group of needy people is a prime concern of each planner especially in financial institution. Keeping the alarming situation in mind it is time for Financial Institutions to improve the quality of alternative financial products and policies so that they can reach the national as well as global market for maximization of sales & profit. On the basis of this background, this paper attempts to make a comprehensive study of financial institutional parameters by collecting primary data through questionnaire survey from customers, by using Cluster analysis to find out different product needs of different group of people in our locality. The study found that both Internal and external product design can help to improve the quality of services and also alternative policies for different groups may help them for their basic needs to achieve “Inclusive Growth”. Indian financial backbone can be improved and global platform can be reached by using these alternative policy for customer satisfaction in all level.
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