Innovative Journal of Business and Management 3: 4July -August (2014) 59 - 72. Contents lists available at www.innovativejournal.in INNOVATIVE JOURNAL OF BUSINESS AND MANAGEMENT Journal homepage: http://innovativejournal.in/ijbm/index.php/ijbm 59 INCREASING THE EFFECTIVENESS OF BANKING SERVICES BY LISTENING TO MARGINALIZED CONSUMERS. Shweta Anand 1 , Deepika Saxena 2 1 School of Management Gautam Buddha University, Greater Noida, UP, India (Within Delhi NCR) 2 Jagan Institute of Management Studies, Rohini, Delhi, Greater Noida, UP, India, ARTICLE INFO ABSTRACT Corresponding Author: Dr. Shweta Anand Associate Professor, School of Managemen,t Gautam Buddha University, Greater Noida, UP, India Key Words: Banking Services, Technological Advancement, Business Correspondent / Business Facilitator Model, Financial Literacy Programmes, Credit Counseling Centers, Common Service Centers, Banking Consumers. DOI:http://dx.doi.org/10.15520/ijbm.vol 3.iss4.8.pp 59-72 Purpose – Considering India’s vast population and its varied geography, the challenge of banking the unbanked cannot be met without appropriate initiatives. Initiatives are being taken by banks in India in various ways i.e. technological advancement, diversification of distribution channels in term of Business Correspondent Model and Business Facilitator Model, by conducting financial literacy programmes and so on. Objective- The objective of this paper is to identify the level of awareness and the level of usage of the initiatives taken by banking services for inclusion of the low income groups of the society into the formal financial services system. Design/methodology/approach – For this purpose, primary data is collected from 50 respondents in Delhi/NCR using a questionnaire. It had questions pertaining to awareness and usage of various services offered by Banking to its consumers. The services were categorized as Online Banking, Tele Banking, SMS Banking, ATM Banking and so on. The responses were analyzed with the help of statistical tools. Findings – The study revealed that people of low income level are aware about those services which are widely spread and have visibility in the society like ATMs. People are also building trust on the business correspondent model as their response towards BCs is positive. SMS service is gaining popularity due to widespread mobile inclusion in India. Originality/value – The paper is particularly useful for banks who would like to increase the effectiveness of the services offered by them. For other initiatives to have wider approach, banks need to spread awareness. They should all realize that spreading financial awareness is not one time initiative, but a continuous process. ©2014, IJBM, All Right Reserved INTRODUCTION Financial Inclusion is a key determinant of sustainable and inclusive growth. It is important and essentially required to connect the banked and the unbanked sectors and enable the unbanked to become vibrant and productive participants in the process of economic growth. Banks in India play an important role in financial inclusion and growth of the country. In the recent past years the banks have been taking various initiatives in terms of technological advancement, diversifying the distribution channels and spreading the reach of financial awareness through financial literacy programmes. Financial inclusion is the delivery of basic financial services at an affordable cost to the vast sections of the disadvantaged and low income groups. It is the “process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost”. It is the provision of affordable financial services, viz., access to payments and remittance facilities, savings, loans and insurance services by the formal financial system to those who tend to be excluded. Technological advancement has come out with lot of measures for people to do banking transactions at their ease like Online banking, SMS banking, Tele-banking and ATMs. Distribution channels like Business Correspondent model and Business Facilitator model are few initiatives which are actually approaching at the bottom of the pyramid and acting as bank branch at the next door. Common Service Centers and Credit Counseling Centers have been opened to avoid the trouble in banking transactions. Without the financial literacy and awareness among the people all initiatives undertaken by banks will prove to be unfruitful. Thus, banks have been taking