Hiteeksha NMIMS Mumbai

HiteekshaNMIMS Mumbai

ING Vysya Bank

A ROAD MAP FOR DIGITAL

TRANSFORMATION

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• Branches may remain closed on holidays.

• Relationship manager may be unfriendly.

• Funds needed for operation of brick and mortar buildings

• Higher interest rates are charged in the developed area to compensate for the lower rates charged in the backward areas

• Travel cost involved in approaching the branch bank

• Branch banks require an average of about $4,700 to be kept in your savings account without charging you a nominal monthly maintenance fee.

Cost

• Delay in service at branch banks• Since the branch manager has to seek permission from the head office on each and every matter, this results in unnecessary delay and red- tapism in the banking business.

Time

Customer service Interest

rates

Challenges faced by Branch Banking

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• Online banking is open and available 24/7

• No dependence on relationship mangers and agents

• Funds needed for operation of brick and mortar buildings

• Higher interest rates are charged in the developed area to compensate for the lower rates charged in the backward areas



Cost


Time


rates

Solutions identified

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• No extra charge levied on customers since no funds required for infrastructure development



Cost


Time


rates


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• No travel cost incurred.• Access to the bank is easier,

from anywhere and at anytime.

Cost


Time


rates


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• No travel cost incurred.• Access to the bank is easier,

from anywhere and at anytime.

Cost

• The functionality andservices offered by the bank are available atThe users’ fingertips –at home, in the office..• Time is saved as there is nodelay in traveling and customerservice

Time


rates


Branch Banking

• Confidence. • No danger of online

failed transactions.• More secure.

Strengths

• Cumbersome to travel.

• Branches may not be in your area.

Weaknesses

• Branches can be increased in rural areas.

• Eg: JanDhanYojna in India

Opportunities

• IT revolution. • Online

transactions are efficient and quick.

Threats

SWOTAnalysis

Digital Banking

• Diminished transaction costs.

• Easier integration of services.

• Interactive marketing.

Strengths

• Security threat • Uneasiness with the

rural population• Liquid cash can be

manipulated

Weaknesses

• With JanDhanYojna, banks will be overfilling with customers soon

• With so much untapped population it becomes a necessity

Opportunities

• Cyber security • Difficulty in maintaining

so much data• One attack on the bank

and millions will be affected.

Threats

SWOTAnalysis

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Industrial Digital Transformation

Source: Digital_Transformation__A_Road-Map_for_Billion-Dollar_Organizations by Capgemini Consulting

Source: Pew Research Center August 2013 The Financial Brand

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Customer Insights

Preferences

Online bankingBranch BankngNeutral

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Product Offering ComparisonBANK NAME PERIOD OF FIXED DEPOSIT

ING Vysya 366 to 730 days

Central Bank of India 777 days

IDBI Bank 5 years

Axis Bank 2 Years < 30 months

Comparison of Periods of FDs of Major Banks (Source: allbankingsolutions.com)

Home Loan comparison

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The Road Map

eTransfers, Mobile

payments

Analytics and CRM Digital tools

Online communities and support

• Using internet as a medium: either through computer or mobile.

• Mobile Payment using• SMS• Direct Mobile

Billing• WAP• NFC

• Relationship with the customer maintained over internet. (CCRM).

• Customer inputs taken (via social media) and solution found out.

• Money management tools to aid customers in financial management.• View expenditure,

savings and income activities.

• Open forums to discuss schemes.

• Feedback from customers via forums.

• Latest information (regarding a scheme or a policy) to be posted on the forum.

Activ

ities

Out

com

es

• Ease of payments.• On-the-go payment.• Quicker transaction.

• Easily approachable.• Customer satisfaction is

taken care of.• Brand loyalty.• Providing germane info.

• Immediate visibility to valuable insights.• Ability to track budgets.• Customer profitability

and cross selling

• Transparency.• Building confidence in

customers.• Increased marketing

Road Map (cont..)

Virtual Assistant Digital Signage Mobile Apps and social media Other

• VAs are either self employed or under company management.

• Provide customer service through e-mail, internet and more recently through Skype, Google voice etc.

• Digital ads to attract customers.

• Using LEDs, LCDs for hoardings or spreading graphic images, videos, streaming media on the net.

• Use of apps for assistance (as done by ING in Netherlands in collaboration with Nuance).

• Social media ads to capture the next-gen.

• E-signatures• QR scanning code• Virtual queues • Financial planners• Multilingual facility

Activ

ities

Out

com

es

• Protean solutions provided.• Multifaceted.• Low cost as no hiring of

the assistant required.

• Easily understood as they are simple.• Increases marketing

scope.• Attracts more attention

• Future customer base is attracted.• ‘See more buy more’

philosophy is used.

• Security• Boost traffic to website• Reduced waiting time • Risk management • Increased Globalization

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Summary and Conclusion

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SR NO TOPICS COVERED

1. Challenges Faced By Branch Banking

2. Solutions Identified

3. SWOT analysis: Branch Banking v/s Digital Banking

4. Industrial Digital Transformation (Graphs)

5. Customer Insight (Research on preferred banking methods)

6. Road Map: A Step By Step indication of digitalization can be obtained

Conclusion: • Analysis on problems faced by Branch Banking is done.• A SWOT analysis is performed.• Product Comparison is show.• A Research which shows preference to Digital Banking is performed.• A Road Map used to obtain the same is studied in detail.

Thank You

ING Vysya Bank

Business

Hiteeksha NMIMS Mumbai