retail banking
Post on 13-Jan-2015
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RETAIL BANKING IN INDIA
PRESENTED BY: (GROUP 4)
SAKET RARASAGAR NIKAMSACHIN MORENITIN DAFADEGAURAV KUMARMITHUN SADAVARTEDEEPAK DODDAMANI
SUMMARY RETAIL BANKING: Retail banking refers to
banking in which banking institutions execute transactions directly with consumers rather than corporations or other banks.
Services offered includes : Savings and checking accounts, mortgages, personal loans, debit cards, credit cards and so forth.
Indian retail banking is showing phenomenal growth
Key drivers: Increased consumerism, Internet, Emergence of new age companies, technology.
SUMMARY CONTINUED…..FIVE FOCUS AREAS:ImaginationEmotional ConnectionFunctional & technical advantagePersonalized contact Testing & Improvement
THE FIVE COMMANDMENTSMarket offering & positioning Customer relationshipsCompetitors study Customer care & feedback Employees satisfaction
THE RETAIL BANKING STRATEGIES ADOPTED BY A FEW NEW AGE BANKING ORGANIZATION IN
INDIA. DISCUSS…
RETAIL BANKING STRATERGIES Constant innovation in products, services to
match the requirements of the customer segment.
Quality service and quickness in delivery. Introduction of new delivery channels Tapping of unexploited potential and
increasing the volume of business Detail Market research Cross selling of products Business process outsourcing Tie-up arrangements
RETAIL BANKING STRATEGIES CONTINUED…. Fixed and unfixed Deposits, (cluster deposits
which can be broken into smaller units to help meet depositors’ overdraft without breaking up entirely)
Centralized database for ‘any branch banking’ (whereby the customer can access his account
in any of the branches) Room services (whereby the customers are
visited at their residences offices to enable them to open their accounts)
Automatic teller machines Tele banking network Extended banking time Courier pickup for cheques and documents
WHAT ARE THE STEPS TAKEN TOWARDS TRANSFORMING RETAIL
BANKING BY BANKS LIKE SBI?
STEPS
Presence And Availability Core Banking Extended Hours, Quality & Quickness in
Delivery Better Infrastructure Make Routine Tasks Easier And Less Time
Consuming- Net Banking
- ATM Centers
- Handy Fund Transactions
Merger/Acquisition Process- Imperial Bank Of India
- State Bank Of Saurashtra, Cochin, Travancore, Indore
Services, Product Range, Group CompaniesSBI----
- Capital Market Ltd.
- Mutual Fund
- Cards And Payment Services
- Factor And Communication Services
3. SHOULD RETAIL BANKING BE TREATED LIKE RETAIL STORES IN TERMS OF ITS OPERATIONS TO MEET WITH SUCCESS IN INDIA AS SUGGESTED BY BCG?
PRESENT SCENARIO 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
ECONOMY VS. RETAIL BANKING Retail assets are just 22% of the total banking assets
of India Contribution of retail loans to GDP:
India 6% China15 %, 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
MARKET SHARE: RETAIL LOAN - 2005
Auto28%
Other personal Loans16%
Home49%
Consumer Durables
7%
BANKING LIKE RETAIL STORE “Any where”, “Any time” Banking
Improved processes/Bundled product offerings
Faster service/Reduced TATs
Customer specific products/offerings on a regular basis
Focus on understanding customer needs/ preferences
Segmentation/Differentiation of customers
Building relationships
SIMILARITIES: 1) Customer oriented approach 2) Stiff competition to be tackled3) Dynamic business environment 4) Faster changes in technology & methods 5) Greater potential in Indian market DIFFERENCES: 1) Mind sets different 2) Priorities are different3) Differentiation potential varies4) Customer buying behavior is different
RETAIL BANKING V/S RETAIL STORES
RETAIL BANKING IN RETAIL STORES WAY…
AS IS / BEFORE TO BE /NOW
PRIORITY Credit & Risk Customers & retailing
APPROACH Secure & conventional location for financial transactions (Banks dictate terms)
Customer centric retail banking (Customer is King)
CUSTOMER BASE Corporation & other banks
Retail consumers, corporate clients, other banks
FORMATS Single Entity Multi-location, multi branch
MORE EMPHASIS ON
Improving transactional efficiency
Providing service and value to consumers
CUSTOMIZATION Rarely there Highly customized
RETAIL BANKING IN RETAIL STORES WAYTO IMPROVE FIVE FOCUS AREAS
RETAIL STORES APPLICABILITY TO RETAIL BANKS
IMAGINATION Sell dreams, Offer a vision where customers can go.
Sell dreams of comfortable & secure retirement plans etc.
EMOTIONAL CONNECTIONS
Provide information,Serve & create bond
e.g. Update new plans tapping new needs
FUNCTIONAL & TECHNICAL ADVANTAGES
Retail stores provide value- added products & services
Create products & services with act as differentiator
PERSONALIZED CONTACT
Data warehousing, data mining
e.g. advices on money management depending on individual needs
TESTING & IMPROVEMENT
Keep experimenting New methods, plans,Implement & improve
RETAIL BANKING IN RETAIL STORES WAY…FIVE COMMANDMENTS
RETAIL STORES APPLICABILITY TO RETAIL BANK
SEGMENTATION, TARGETING, POSITIONING
accordingly make product offerings simple & relevant
e. g. positioning HBOS :Consumer champion in Britain
CUSTOMER RELATIONSHIP
Track & correct mis-perceptions of customers
Feedback,complaints,helpdesk.
COMPETITION Survey competitors:offerings, strategies & promotions & beat them
Competitor oriented strategy, Be updated & improve
PROACTIVE Listen to customers continually & carefully
Unstated needs identification
INCENTIVES Performance based To Sales & frontline, back-office staff
CONCLUSION
Retail banking has a great scope in India due to increase in consumerism, purchasing power of customers.
E-banking, phone banking, Mobile banking, ATM, have become necessity, and are no more factor of differentiation in urban and semi urban cities.
Bankers can adopt strategies used by retail stores to very large extent to woo the customers and survive in competition.
THANK YOU…!
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