Changing dynamics

Module-5S-7 B-Tech IT (2014)

Changing Dynamics in the Banking Industry

Module-5: Syllabus

E-Banking : Changing Dynamics in the Banking Industry– Changing Consumer Needs, Cost Reduction, Demographic Trends

Regulatory Reform Technology Based Financial Services Products

– Home Banking using bank’s Proprietary Software– Banking via the PC using Dial-up Software – Banking via Online Services; – Banking vis the Web

Security First Network bank Management issues in online Banking

– Marketing, Pricing

Reference Books

Ravi Kalakota, Andrew B Whinston, “Electronic Commerce: A Manager’s Guide”, Pearson Education, 2009

Dr. Tushar Kanti, Manish Kumar, Shilpi Gupta,” E-Commerce”, Savera Publishing House, New Delhi

Indian Institute of banking & Finance, ”General Bank Management”, Macmillan India Ltd, 2008

Vikas Taneja, Sakshi Parashar,”E-Banking and E-Commerce “ , alfa Publications, New Delhi, 2011


1. Changing Consumer Needs– Globalisation ,Privatisation, Liberalisation

2. Cost Reduction– Technological

3. Demographic Trends4. Banking Regulation

CHANGING PERCEPTION ABOUT CUSTOMER

Servicing the Customer – 1950’s to 1960’s Satisfying the Customer - 1960’s to 1980’s Pleasing the Customer - 1980’s to 1990’s Delighting the Customer -1990’-2000 Retaining the Customer – 2000 and beyond

Changing Consumer Needs

The 7 Ps of Marketing Forces of LPG Competition

Indian banks are facing substantial competitive pressures as banking landscape gets redefined

BANKS

Deregulation

Increasing financial disclosure requirements and credit rating requirements for banks

Basel-II requirements, income recognition and provisioning standards

Greater managerial autonomy to banks

Consolidation / Increasing M & A activity

Privatisation / corporatisation / IPO’s

Increasing availability of risk management products like derivatives Managing asset quality, NPA

Improving productivity

E-Business


WHAT IS THE TRIGGER?

Hyper Competition Shrinking Margins Need to Reduce Cost Take Advantage of Technology Changing Customer Expectations Simplified the Procedure and Process Reduce Traditional Risk Offer Better / Improved Service Some Constraints [Policy/Resources/Physical/Structure]

How Banks get affected

The size of profit pools are getting smaller. Sluggish employment growth and stringent credit criteria

weakens the demand and success ratios for consumer and small business loans.

Recent regulatory reforms have increased the cost of compliance and operating costs for the entire banking industry. Regulations such as Basel III that require banks to hold more capital have added to the burden and it has become a pressing concern for many small and mid-tier banks, thrifts, and credit unions.

Improve operational efficiency

Minimise costs

Enable high-speed processing

Allow data capture and data mining

Banking sector early adopters of technology

Improve customer experience with enhanced internal efficiency


Progress of computerization in PSB

Accenture(June 2011)

Technology impact on banking post 2000

Infrastructure

RTGS (2004)1

NEFT (2005)2

Interbank Mobile Payments System (2010) ATM installed base of over 100,000 (over 27%

compounded growth from 2006 to 2012) POS terminals over 700,000

1. Real time gross settlement system2. National electronic funds transfer

Optimization of branch networks using ATMs


The relaxation of norms for using ‘other bank' ATMs by the Reserve Bank of India in 2009 seems to have encouraged banks to set up more ATMs across the country in order to garner fee-based income, acquire new customers as well as to service the existing ones



ICICI Bank

Internet

ATMs

Branches

Call centre

Share of transactions in

2012

35%

41%

12%

2%

The disruptive power of technology

Mobile 2%

POS 7%

Share of transactions in

2001

2%

3%

94%

1%

-

-

Technology is in a continuing state of flux

Higher capacity and processing capability Software to run the devices Ability to connect through broadband and wireless Mobility, new platforms and the ecosystems in

handheld devices

From mainframe to minicomputer to desktop PC

And now, mainframe in a pocket

New platforms such as for payments are now challenging the traditional bank channels

Changing Consumer Needs

Changing demographics; Changing work patterns; Increasing financial assets and liabilities of

households; Increasing awareness of value; and Willingness to adopt technology.

Changing Customer Needs Indian retail banking has been showing phenomenal

growth

In 2004-05, 42% of credit growth came from retail Over the last 5 years CAGR has been over 35% Retail credit level crossed Rs.189K Crore in 2004-05 Market has transformed into a ‘buyer’s market’ from a

‘seller’s market’ Comprises of multiple products, channels of

distribution and multiple customer groups

Customer Needs

Economy vs. Retail Banking Retail assets are just 22% of the total banking

assets of India

Contribution of retail loans to GDP:India 6% China 15 %, Thailand 24% Taiwan 52%

Indian population below 35 yrs of Age – 70 % Reach of Formal Banking Channels – 20-25% of

Indian population Source: Cygnus Industry Insight

Auto28%

Other personal Loans16%

Home49%

Consumer Durables

7%

Market Share: Retail Loan - 2005

Change in Consumer Needs

Customer Preferences for Multiple channels

The accelerated retail growth has been on a historically low base

Penetration continues to be significantly low compared to global bench marks

Share of retail credit expected to grow from 22% to 36%

Retail credit grow to Rs.575,000 crs by 2010 at an annual growth rate of 25%

Source: Cygnus industry insight

Future Of Retail BankingFuture Of Retail Banking

Future of Retail Banking Contd…. Dramatic changes expected in the credit

portfolio of Banks in the next 5 years

Housing will continue to be the biggest growth segment, followed by Auto loans

Banks need to expand and diversify by focussing on non urban segment as well as varied income and demographic groups

Rural areas offer tremendous potential too which needs to be exploited

Strategic prerequisites….

Performance oriented leadership

Sophisticated marketing and sales

Efficient distribution channels

Process efficiency and ease of scalability

Superior credit policy, procedures and skills Source: Mckinsey

Challenges Sustaining Customer loyalty

NPA reduction & Fraud prevention

Avoiding Debt Trap for customers

Bringing Rural masses into mainstream banking

Strategies for Future…

Reaching to masses : Need to customize Customer segmentation/differentiation Data mining/CRM based campaigns Products per customer/loyalty Promoting low risk retail lending products

Offer an array of products and financial advisory.

Strategies for Future… Contd.

Cost effective expansion Renewed emphasis on superior execution by

front-line employees Grow through Alliances:

Hospitality Education

Retailers Automobiles

Consumer Durables Housing/Construction

Customer segmentation

The bank that best addresses and anticipates

customers needs, delivers consistently higher

quality service and connects to the customer

via their channel of choice wins

Y.Y.Chin, OCBC Bank

Winning Strategy

IT solutions for Banks

Tata Consultancy Services (TCS) acquired Australian Financial Network Services (FNS), a core banking solutions vendor, for approximately $26m. TCS has bought the stakes owned by Macquarie Bank and other promoters in an all-cash deal(2005)

Finacle, the banking software solutions suite of Infosys Technologies

HCL’s partnership with leading Core Banking vendors like SAP, Oracle and Misys is leveraged to provide intricate product customization and multi-layered implementation initiatives across the world for leading banks.

Cost Reduction Post-technology adoption, only 10% of the

banking staff is involved in "back office" jobs and the remaining 90% of the banking staff are freed for performing "front office" jobs of customer acquisition, servicing and retention by ensuring customer loyalty. “– RBI Deputy Governor KC Chakrabarty

(07/09/2010)

As per Census 2011

India's population stands at 1.21 billion, slightly more than the forecast, although the population growth rate has declined from 1.97% per annum between 1991 and 2001 to 1.64% between 2001 and 2011.

India has a younger population in comparison to many other countries.

Labour force in India is expected to increase by 32% over the next 20 years while it will decline for developed nations and China

CHANGING CONSUMER DEMOGRAPHICS Growing disposable incomes

Youngest population in the world Increasing literacy levels Higher adaptability to technology Growing consumerism Fiscal incentives for home loans Changing mindsets-willingness to borrow or

lend Desire to improve lifestyles Banks vying for higher market share

http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2598

The next wave: being connected 2.25 bn (32%) of world population is online

today, and 1.10 bn users are on 3G Mobile internet is ramping up dramatically

– 57 mn 3G users in China, y-o-y growth of 115%– 39 mn 3G users in India, y-o-y growth of 840%

Mobile internet now makes up 50% of internet traffic in India

Out of 1.80 bn mobile users in China and India One billion will go online in two years

Source: KPCB

Connectivity in India ..

100 mn internet users, 800 mn mobile subscribers Broadband connectivity a catalyst Consumers are becoming part of the cloud

seamlessly without consciously realising it Device costs will continue to drop More and more capabilities would be available at

lower costs

.. would have a significant impact on banking

Third largest internet user base

Second largest mobile subscriber

base

India’s current positioningChina(USD)

2003 2005 2010 2012 (E)

GDP (bn) 1,641 2,257 5,930 7,992Per capita GDP

1,270 1,726 3,738 5,899

Population (bn)

1.29 1.31 1.34 1.35

(E) - estimateNote: GDP is on nominal basisSource:IMF

India(USD)

2003 2005 2010 2012 (E)

GDP (bn) 590 808 1,598 1,779Per capita GDP

549 729 1,342 1,455

Population (bn)

1.07 1.11 1.19 1.22 India in 2010 was at the juncture where China was in 2003

354445

6468

115117

146157

171174

249

HyderabadChennaiUkraine

BangaloreCzech

KolkataPortugal

DelhiThailandDenmarkMumbaiBelgium

Rapid urbanisation

Source: Mckinsey

GDP USD bn

India’s metros in 2030 will be as large as some

countries were in 2005

India’s large metros in 2030: by GDP

Assuming an annual GDP growth of 8.0% between 2009-2018 and 7.0% between 2018-2030

Over 700 mn people across 600,000 villages Rural growth supported by:

– Changing characteristic of rural economy with reduced dependency on agriculture

– Rising wealth creation with estimate of 40 mn middle & high income households by 2010

Resurgent rural India

31.838.351.4

24.1 25.8

20.0

37.5 42.428.6

0

20

40

60

80

100

1999-00 2004-05 2008-09

Services

Industry

Agriculture

Share in rural NDP(%)Agriculture Industry Services

Looking ahead: impact of per capita GDP growth

Per capita GDP < US$ 500

Per capita GDP at US$ 500 -1,500

Per capita GDP at US$ 1,500 -2,500

Demand for better living environment

• Limited aspirations

• Low affordability

• Increased affordability

• Aspirations of a better lifestyle

Per capita GDP at US$ 2,500-4,000

Accelerating consumption cycle

Early 2000

2002-2011

2012-2017

2018-2021

Technology for the masses

Only 10% have life insurance

< 1% have general insurance

Only 2% have a credit card

59% of India’s households avail of banking services

Only 13% have an ATM + Debit card

The challenge is in banking 700 million people in 600,000 villages in close to 600 districts

Channel innovationDriving scale and profitability

Opening and operating savings accounts Easy KYCSmart cards

POS machines

Low cost ATMs

Mobile phones

Low cost branch

Used by branchless banking channels

Resource efficient branches

To bridge distance and ease transactions

For all banking operations Steadily gaining traction

54

Smart cards have simplified data capture

Biometric Transaction Card

Biometric smart card for secure validation Overcome distance by setting up service

points close to customers Most effective for the poor and uneducated

Branch in a box POS based solution offering banking

transactions like balance enquiry, cash withdrawal, deposit

Cheque payment (with capability to display signatures for verification)

RTGS1/ NEFT2

Can support transactions like pass book printing, opening of fixed deposits and bill payment

Low bandwidth GPRS connectivity

1. Real time gross settlement system2. National electronic funds transfer

ATM The oldest of the alternative banking channels and

enjoys the highest level of acceptance among customers. – The number of ATMs in India has doubled in the past three

years. More than 100,000 ATMs, around 70 per cent of them in

urban locations(2011-12). Global research firm Celent expects the number of

ATMs to double by 2016, with more than 50 per cent being set up in small towns.

Month-wise total volume of NFS Transactions From Jan 2013

Month/Year

No. Of participants

No. Of ATM

balance enquiry

Cash withdrawal

Pin Change

Mini Statement

Total Volume

Jan-13 129 1,09,664 3,96,61,110 14,75,62,566 2,21,014 44,37,657 19,18,82,347

Feb-13 143 1,11,493 3,72,57,214 13,82,20,349 2,16,506 42,50,210 17,99,44,279

Mar-13 150 1,16,025 4,12,20,908 15,82,38,934 2,85,276 52,31,088 20,49,76,206

Apr-13 150 1,18,660 4,16,80,350 15,67,16,840 3,07,855 64,44,567 20,51,49,612

May-13 176 1,20,828 4,04,94,563 16,25,14,775 3,07,934 65,57,104 20,98,74,376

Jun-13 185 1,24,078 3,88,97,846 15,69,23,710 3,23,634 63,72,028 20,25,17,218

Jul-13 196 1,26,612 4,25,18,702 16,37,08,983 3,49,932 69,73,798 21,35,51,415

NEFT and RTGS transactions

The volume of online fund transfers through NEFT (National Electronic Funds Transfer, used for low value transactions) and RTGS (Real Time Gross Settlement, used for high-value transaction) grew by 71 per cent and 11.7 per cent, respectively– RBI: 2011-12

Unique identity number

Preliminary KYC and wider acceptance

Instant identity verification Basis for Know Your Customer Build credit history Improve service delivery to the poor Customer management to avoid issues of over-leveraging

Financial services for all

Direct payment of benefits such as NREGA, Social Security Pension schemes Subsidy transfer

Payment ecosystem

Credit

Cashless payments through mobile wallets

Account history from electronic transactions for data driven lending

Customer engagement

Customer acquisition and on-boarding

Branches

ATMs

Online channels

Products that address needs of diverse customer segments

Strong distribution backing products Development of new channels by leveraging

technology Consistency in experience across channels

Customer engagementServicing customers through the life cycle

Analytics

Consistency of customer experience across channels of distribution

Analytics to understand and address customer needs across diverse segments

Development of banking history for underbanked and unbanked customers for cost effective credit

Cross-industry competition caused by deregulation

Developmental Financial Institutions transforming to banks

Banks like SBI venturing to Long Term Project Financing

Growth in capital market causes disintermediation and companies raise funds from both domestic & abroad

Re-alignment of Development Finance Institutions

ICICI from DFI to BankIDBI to Bank retaining DFI status

Deregulation of interest ratesIncreasing disintermediationMounting NPAs in DFIs due to unfavourable Business Cycles, Politically motivated social banking schemes, unscrupulous creditors lagging/denying repayment of loans in the absence of strong laws like SARFEASI Act 2000

DFIs in India 1947 IFCI debated status from 2003 to 2006 and finally continuing as

DFI 1956 ICICI become Bank in 2002 1964 UTI become UTI MF 2003 1964 IDBI become bank in 2004 with DFI status EXIM bank – March 1982 IIFCL 2004 Specialised Financial Institutions

– IFCI Venture Capital Funds Ltd; ICICI Venture Funds Ltd; Tourism Finance Corporation of India Ltd

Sectoral DFIs also proliferated– RFC, PFC,

Globalisation

Globalization (or globalisation) describes an ongoing process by which regional economies, societies and cultures have become integrated through globe-spanning networks of exchange.

Economic globalization: the integration of national economies into the international economy through trade, foreign direct investment, capital flows, migration, and the spread of technology

Globalisation

Correspondent Banking Entry of foreign Banks; SBI and others opening foreign branchesIntegration of services with Internet BankingGrowth in foreign trade, Migration of worker class to Gulf, Europe and USALevel playing field expected by 2009, not materialised due to US Recession and bursting of several leading banks and FIs there during 2006-2008

Privatisation

Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector (government) to the private sector (business).

Privatisation

Listing of PSBs like SBI etc..Single holding in banks not >10%

Govt ownership in Indian banks reduces

In 2005 the government owned 100% shares only in four out of the 19 nationalised banks.

At present in all the nationalised banks, and IDBI Bank and State Bank of India i.e. PSBs, the government has less than 100% holding; in almost 14 of them the private shareholding exceeds 30%.

Entry Norms

Bank Nationalisation 1955(SBI), 1959(7 associates); 1969 (14 No.s);1980 (6 No.s)

Foreign ownership cannot exceed 20%, By law Govt holding not <51%

Stake sales in PSU banks Entry of private banks

– Indus Ind Bank 1994– HDFC Bank 1995– UTI Bank(Axis Bank)– Yes Bank

Privatisation

In the first wave of privatisation of the banking sector, 10 players were allowed in the mid-1990s and these included ICICI Bank, HDFC Bank and IDBI Bank, among others.

The last time new banks were allowed was in 2002-03 when two licences were issued. 2010 guidelines finalised in 2012 with Rs 500 cr capital

Branch expansion restriction on Foreign banks to be phased out; Subsidiary route

Entry Norms Feb 2013

Capital 5 billion Foreign shareholding max 74% Promoters holding 40% capital to be

reduced to 15% in due course 13% capital adequacy ratio

Liberalisation

Liberalization (or liberalisation) refers to a relaxation of previous government restrictions, usually in areas of social or economic policy.

Started with interest rate deregulation in early 90s

Liberalisation

Banks are given freedom to fix the price for their products

RBI fixes policy rates and Reserve requirements only

Banks can decide the limits for WC loan Norms for ATMs, Off-site ATMs, Branch

expansion Norms for NPAs recognition and management

RBIRBIINITIATIVESINITIATIVESIN PAYMENTIN PAYMENT

&&SETTLEMENTSETTLEMENT

SYSTEMSSYSTEMS Compliance with BIS Core Principles

Clearing Corporationof India

RTGS

CFMSPKI based Security

SFMS

INFINET

IDRBT

PDO-NDS & SSS

Institute for development and Research in Banking Technology (IDRBT), Hyderabad

The set up in the mid nineties, as a research and technology centre for the Banking sector;

Commencement of Certification Authority (CA) functions of the IDRBT for ensuring that electronic banking transactions get the requisite legal protection under the Information Technology Act, 2000

INFINET

The commissioning in 1999, of the Indian Financial Network as a Closed User Group based network for the exclusive use of the Banking sector with state-of-the-art safety and security. The network supports applications having features such as Public Key Infrastructure (PKI) which international networks such as S.W.I.F.T. are implemented

SWIFT

Society for Worldwide Inter-Bank Financial Telecommunication (SWIFT), Brussels is a co-operative society for interbank financial networking, is established in May 1973 with 239 participating banks from 15 countries

More than 9,000 banking organisations, securities institutions and corporate customers in 209 countries trust to exchange millions of standardised financial messages.

– Messages relating to financial transaction, debit-credit exchange, and foreign exchange.

– Make customers to automate and standardise financial transactions, thereby lowering costs, reducing operational risk and eliminating inefficiencies from their operations.

– Available 24 hours to participating member.

Other IT related initiatives

Ensuring Information Systems Audit (IS Audit) in the banks for which detailed guidelines relating to IS Audit were formulated and circulated;

Enabling IT based delivery channels which enhance customer service at banks, in areas such as cash delivery through shared Automated Teller Machines (ATMs), card based transaction settlements etc.;

Providing Guidelines for Internet Banking, which facilitated the banks to ensure that common minimum requirements relating to Internet Banking offerings were provided for;

Other IT related initiatives

Providing detailed specifications to banks on the configuration of systems relating to critical inter-bank payment system applications such as Real Time Gross Settlement (RTGS) System, Negotiated Dealing System (NDS), Centralised Funds Management System (CFMS) etc.;

Implementation of the National Financial Switch (NFS) to ensure interconnectivity of shared ATMs and to provide for funds settlement across various banks.

National payment corporation of India: www.npci.org.in

National financial switch – ATM switching Immediate payment system – mobile phone Automated clearing house - ECS Aadhar payment bridge system Interoperable financial inclusion system - BC Cheque truncation system Express cheque clearing system Aadhar enabled payment system RuPay

Indian Banks’ Technology Consortium

RBI Working Group on Information Security, Electronic Banking, Technology Risk Management and Tackling Cyber Fraud recommended formation of Technology Consortium under the aegis of IDRBT


Established by IDRBT to work with

Indian banks Academic institutions Industry bodies & Outstanding professionals

Indian Banks’ Technology Consortium Objectives

Impact Banking AdvancementDevelopment & Practical application of technology

Develop and update standards in the use of technology and information security in banks

Improve customer service and advocate regulation / legislation.

Pioneer New Technologies with PoC,

Focus on Collaborative Research in Technology Development &

Resolution of Shared Problems & Challenges in Banking Technology

Indian Banks’ Technology Consortium Charter

Indian Banks’ Technology Consortium Proposed Activities

Discuss and research technology issues

Work collaboratively

Solve shared problems and challenges

Pioneer new technologies that benefit banks

Collaborative research projects

Technology development pilots

Proof-of-concept tests


Advantages to members

Updating of current developments and trends

Promoting standards

Networking on shared technical challenges

Discussing the legal and regulatory dimension of complex technical issues facing the banking industry

Conducting studies affecting the industry as a whole

Address issues faced by banks collaboratively

Indian Banks’ Technology Consortium Organizational Structure

Executive Board Members

Director, IDRBT CEO / Chairman, IBA Chairman / Executive Directors / Managing Directors / Deputy

Managing Directors / Chief General Manager from Banks Government Representative Academician from top Technology / Management institutions NASSCOM representative Chief General Manager, DIT, RBI (Invitee)


Advisory Council Members

Chief Operating Officer, IDRBTChief General Manager / General Manager from the

Banks presently working in the IT domainGeneral Manager, DIT, RBIGovernment RepresentativeAcademicians from top Technology / Management

institutions

I

Vendor Affiliates

Representatives from the Industry / Vendor affiliates will be nominated by the Executive Board for a project on a case to case basis.


I


Steering Committees Members

Chief Operating Officer, IDRBT Senior Executives from the Banks presently working in the

IT domain General Manager / Deputy General Manager, DIT / Payment

Systems, RBI Academicians from IITs / Universities / Research Institutes Faculty, IDRBT

Technology

Transaction based systems to Core Banking Solutions and then to Integrated Systems

Telephone & Fax to PC/Mobile with Internet connectivity

Clearing and settlement systems on INFINET and linking to SWIFT making througput processing

Relationship banking, Universal banking, and Unit banking gaining importance

Financial stability forum Report 2008

Issues in fraud monitoring Supervisory process On-site inspection Revised strategies of on-site supervision

– Frequency– Reporting and registration system for NBFCs

Off-site monitoring and surveillance system(OSMOS) Supervisory rating

– CAMELS / CACS since 1998-99 Preventive supervision-prompt corrective action

– Trigger points CRAR 9-6, 3-6 and below 3, net NPA 10-15% or above 15%, and ROA below 0.25%

Risk based supervision

Monetary and Credit Policy statement , April 2000– Formal risk assessment of a bank by producing a

detailed risk profile– Designing a customised supervisory action plan

based on risk profile for each bank– Delineating scope and extent of supervision to target

high risk areas and areas of supervisory concern– Issues related to HR and skill development

Bank’s Marketing Mix

Product, Price, Place, Promotion Success of Delivery channels

– Strong bank branding. – Unique value to customers. – Customer centric -- reflecting the customer

relationship. – Must be easy to use and intuitive to the customer. – Finally, and most important, it must be secure!

Changes in Bank’s Marketing Mix Core Banking and ATMs altered the branch’s layout,

the way of servicing customers Freeing of Interest Rates widened product portfolio Code ensured display of rates and better level of

banking services Internet enabled Universal banking from any where

any device at any time New segments like Film Financing got established VRS gave way to young technically oriented staff

Role of Information Technology (IT) and Customer Relationship Management (CRM) in Banking

The application of IT and e-banking is becoming the order of the day with the banking system heading towards virtual banking

STRATEGIES OF BANKS

Citibank : Parallel Banking HSBC Bank : Leveraging branches to grow C’ ICICI Bank: Reducing importance of branch HDFC Bank : Conservative migration AXIS Bank : ATM’s as a force multiplier

RECENT TRENDS IN BANKING

Entry of New Generation Banks New Products and Services Increasing Non- Interest and Fee Based

Income Collaboration between Banking & Insurance

Companies. Improvement in Service Quality Increasing focus on Retail Banking Shift Towards Branchless Banking Focus shifting to inclusive banking

RECENT TRENDS IN BANKING

Outsourcing of Resources [Human&Non-human]

Steady Reduction in Interest Rates Corporate governance and Business

Transformation Regulatory reforms Mergers, Acquisitions and

Consolidations

Industry’s response to the change

“Any where”, “Any time” Banking Improved processes/Bundled product offerings

Faster service/Reduced TATs Customer specific products/offerings on a regular

basis ‘Bank’ customer has replaced ‘Branch’ customer Focus on understanding customer needs/

preferences Segmentation/Differentiation of customers Customer driven strategies Building relationships

IT Expenditure pattern

Documents

Changing dynamics