The banking industry is a dynamic and rapidly growing segment of every economy. The internationalization of the banking system leads to big changes over the credit system and also pushes financial institutions to operate on a competitive basis with a primary focus on providing high quality services at the lowest possible cost. The increasing competition in the banking industry leads to the need for quality in service and the aim to achieve an emphasis on quality, dynamic and continuous involvement of the human factor in the whole banking service system.
This paper illustrates the value and importance of marketing for banks. Firstly, it reviews the history of the Greek banking system and the basic concepts that governs it. The core of the work which is presented here follows an extended analysis of reference to the role of the Bank Marketing in banking sector. In addition, the paper analyzes the Integration of Marketing in banking and also the necessity of implementing the Marketing banking.
Moreover, in this essay different definitions of Bank Marketing are given and there are some references in the peculiarities of banking services in connection with the Marketing. Finally, the paper represents the marketing mix in Banking Services. The history of the Greek banking system begins in 1828 with the establishing of the National Bank’s brokerage, which was designed to solve financial problems. In 1834 due to lack of funding resources, which came from foreign loans, the National Bank closed.
In 1841 created the National Bank of Greece (ETE) to private and public funds. The main work was the acceptance deposits, the granting of commercial and residential mortgage loans, as also the monopoly right to issue banknotes. In 1864 the ETE has lost the monopoly of issuing banknotes, because of the Ionian Bank, which had activity until then only in the Ionian Islands, commenced operations in other parts of Greece. A large number of banks created in the second half of 19th century, and the Bank of Athens became the second largest bank market.
In 1928, the establishment of the Bank of Greece, as central bank, and the establishment of the National Mortgage Bank of Greece (EKTE) and the Agricultural Bank Greece (ATE), the National Bank had lost the privilege of issuing banknotes and other activities which were related to the Housing and Rural Credit. Until the Second World War, several small banks closed and immediately after the war there were many mergers of banks (National Bank – Bank of Athens, Ionian etc. ). The largest banks were nationalized and that’s why the majority of banking system becomes directly or indirectly under the State control.
From 1960, the internationalization of the banking system led to a substantial increase in the number of foreign banks settled in Greece. This input of foreign banks continued, aided by the accession of Greece to European Union in 1981. In 1984 there were 41 banks and special credit institutions in Greece. The National Bank dominates the banking market accounting about 55% of it. The Group of Emporiki Bank owns approximately 20% of the market. The two largest private banks, Bank of Credit and Ergasias hold 7% and 4% respectively, while all other commercial banks account about 2-3% of the market.
From the above it appears that approximately 75% of the market controlled by two major Banking Groups and from the public sector. Nowadays, the main purpose of Greek commercial banks is to provide services in banking system and their main work is the acceptance of deposits, lending and servicing of international trade. Regarding to the branch network, the number of bank branches in Greece is the smallest in Europe. It is generally observed that the Greek commercial banks have significantly lower total assets, deposits and loans per branch than commercial banks in other European countries.