Communication in the commercial banking sector in Nepal is carried out very poorly in correspondence. Practicing effective banking communication makes work easier, faster, comfortable, and accurate as a mediator between bank, customer, government, shareholder, suppliers, client, board of directors, and employees. The purpose of this chapter is to provide insight on how the banking communication system operates in Nepal, how effective those techniques and tools are, and thereby proposes policy recommendations for improvising banking communication. The chapter uses extensive desk reviews followed by related literature to understand the field of study. In the demand side, providing time to address customer problems, adopting effective communication measures, and increasing banking facilities increase awareness in banking communication, while, on the supply side, in order to improve the banking system, the banks should focus on financial service management, adopting e-banking and organizational regulation policies for customer satisfaction.
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Effective banking communication can strengthen the connection between customer, suppliers, stakeholders, managers, client, employees, board of directors, neighbor, community and nation (Thussu, 2018; Parajuli et al., 2020). In communication, numerous of barriers are formulated such as perceptual barriers, language barriers, emotional barriers, physical barriers and cultural barriers (Van Eemeren & Grootendorst, 2016). Effective communication fosters ideas and builds common ground to develop complex interpersonal relationships. The communication pattern has changes telephone, email and fax into instant messaging/chat, virtual words, social networking sites, wikis, twitter, blogs in the workplace which become very beneficial to transfer information from one place to another place and save data and information. (B.K. et al., 2019, Austin & Pinkleton, 2015) argued that human capital are strong foundation for any organization with verbal and non-verbal communication and for banks as well. Communication media are important in attracting attention, holding attention, and increasing the information’s accessibility and its impact on consumer perception (Herr et al., 1991; Bucăţa & Rizecu, 2017). Communication between senders and receivers of the information is considered to be an important process (Mohr & Nevin, 1990; Haroon & Mallik, 2018; Paudel et al., 2021). Banks communicate distinctly among the customers that will help in improving satisfaction among customers and each customer will have distinct effects of the same information communicated (Schlich, 2012; Şeitan, 2017). Thus, banking communication considers the emotional impact of the message along with the actual information and factual content in good banking operation (Van Staden et al., 2007).
Although banks and their services have been advancing in Nepalese commercial banks customer satisfaction in terms of communication is still a far cry (Gautam & Dhital, 2004; Shrestha et al., 2018). Shrestha (2018) stated that updating and listening to customers in an effective way leads to customer satisfaction and loyalty among customer towards the bank and customer still feels employees of bank require training on communication. Similarly, Sapkota et al. (2018) analyzed role of information communication technology in Nepalese banking industry show pros and cons of using information and communication technology in Nepalese banks. (Gaire, 2018; Parajuli et al., 2019) concluded that communication has significant role in the satisfaction of customers and banks should continuously keep reviewing and monitoring the communication strategies and practices in his study; effectiveness of internet banking system and clients satisfaction. Till date various discussions and research are made on customers’ perception on banking communication in Nepal. Gautam & Dhital (2004) covered customer satisfaction in Nepalese commercial banks; prospects and challenges of e-banking in Nepal (Banstola, 2007); Application of management control system in Nepalese commercial banks (Rijal, 2006); Role of information communication technology (ICT) in Nepalese banking sector (Sapkota et al., 2018).