the business of retailing investor presentation by ......brandz: top 50 most valuable indian brands...
TRANSCRIPT
The Business of Retailing Investor Presentation by Consumer Banking
Presentation Outline
The Business of Retailing: Our Beliefs
Consumer Bank Performance: Key Metrics
Building Blocks of Consumer Bank
Future Plans
8 Core Beliefs drive the retail franchise of the Bank
1. Segmentation creates value – geographic segmentation and client segmentation
2. Scale is crucial; Build scale selectively
3. Universality of products and offerings
4. Efficient distributor – don’t manufacture everything
5. No “one size fit all” approach – solutions driven by segmentation
6. Client centricity through responsive innovation and share of wallet penetration
7. Technology / Digitization to find, serve and engage with customers and in the way
we run the business
8. Brand is built through customer advocacy and responsive innovations
Presentation Outline
The Business of Retailing: Our Beliefs
Consumer Bank Performance: Key Metrics
Building Blocks of Consumer Bank
Future Plans
1186 3059
9915
0
2000
4000
6000
8000
10000
2008 2011 2014
IndusInd SA has grown much faster than industry
IndusInd SA deposits have grown at CAGR of 48% compared to 19% for other new
private sector banks*
*Other pvt. banks include HDFC,ICICI, Axis, Kotak, Yes and ING Vysya
1,80,768
3,06,206
-
50,000
1,00,000
1,50,000
2,00,000
2,50,000
3,00,000
3,50,000
2011 2014
19%
Rs Cr Rs Cr
48%
IndusInd SA has grown at CAGR of 48% over
last 3 years
SA in other new private sector banks has
grown at CAGR of 19% over last 3 years
SA grew from 6.2% to 16.4% of overall
deposits over last 2 planning cycles
6.2%
8.9%
16.4%
5.0%
10.0%
15.0%
20.0%
2008 2011 2014
37%
Source: Annual Reports 2014
IndusInd branch footprint has grown much faster than industry
1. Other pvt. banks include HDFC,ICICI, Axis, Kotak, Yes and ING Vysya
6,930
11,271
-
2,000
4,000
6,000
8,000
10,000
12,000
2011 2014
180 300
602
0
200
400
600
800
2008 2011 2014
18%
Rs Cr Rs Cr
26%
IndusInd branch footprint has grown at 26% Branch footprint of new private sector banks
has grown by 18%
ATM footprint has also grown with the
branch network
336 594
1110
0
200
400
600
800
1000
1200
2008 2011 2014
# of clients nearly tripled over last two
planning cycles
0.9 1.2
2.7
-
1.0
2.0
3.0
2008 2011 2014
mn clients
Source: Annual Reports 2014
Consumer Non Vehicle and small business portfolio growth has
been strong
7293 11392
21604 227
3181
0
5000
10000
15000
20000
25000
30000
2008 2011 2014
Overall Consumer (Non Vehicle) + BBG has
grown at 69% over last three years
69%
1135
3410
12754
28195
7293
BBG
Consumer Loans (Non Vehicle)
Consumer Loans (Vehicle)
Overall Consumer (non vehicle) + BBG grew by 69% from 1362 Cr to 6591 Cr between 2011 & 2014
Share of Consumer (Non Vehicle) grew
from 2% to 13% of Consumer loan book
Share of Consumer (Non Vehicle) + BBG
grew from 5% to 12% of Bank’s loan book
44%
CAGR 2011-14
141%
24%
98% 87%
2% 13%
0%
50%
100%
2011 2014
Non Vehicle
Vehicle
51% 49%
44% 39%
1% 6%
4% 6%
0%
20%
40%
60%
80%
100%
2011 2014BBG Consumer Non VehicleConsumer Vehicle Corporate
12%
IndusInd Brand is well-recognized now
BrandZ: Top 50 Most
Valuable Indian Brands
IndusInd ranked 19th in the
Top 50 Most Valuable Indian
Brands 2014 as per the
BrandZ Top 50 Ranking
powered by WPP Plc and
Millward Brown
ET: Best Indian Brands
Paul Writer: Star
Brand
IndusInd awarded “Star
Brand 2011” in ICMR Star
Brands of India Survey
M.IT.R-50 Marketing &IT
Recognition Program
amongst top 50 brands-
organised by Paul Writer in
association with IBM
IndusInd ranked 39th in
the Best Indian Brands
2014 as per the Economic
Times and Interbrand Best
Indian Brand Study
Presentation Outline
The Business of Retailing: Our Beliefs
Consumer Bank Performance: Key Metrics
Building Blocks of Consumer Bank
Future Plans
3 core Building Blocks of Consumer Bank: Segmentation, Digitization
and Employee Development enabled by Op. Excellence & Quality
Consumer Bank
Segmentation Digitization /
Technology
Employee
Development
Operational Excellence
Quality Framework
Geographic segmentation has been core to Consumer Bank strategy
2009 2014 2011 2010 2012 2013
Categorization
of branches
into A / B / C
Creation of
CAT A+
Creation of
Home
Markets
Creation of
Developed
Markets
Creation of
Rural
Markets
Delivery formats attuned to cater to distinctive needs of each segment
in different geographies
• 2-person branches
operating in hub and
spoke model
• Designed for
efficiency
• Biometric
authentication
• Micro-ATMs
• Business As Usual
Branches
• Co-branding with
White Label ATM
operators
• Flagship branches in
metros and top
cities
• Enhanced brand
image in select
catchments
• Virtual Teller
Machines (mini
branch)
• Video Branch
• Digital branches
• Differentiated 24x7
service with STP;
offering ease and
convenience
• Virtual Teller
Machines (mini
branch)
• Video Branch
Rural BaU Metro / Home Markets
Branches
Other delivery
channels
Focussed approach to client segments through channels has created
value
3.1 4.1
5.2
-
1.0
2.0
3.0
4.0
5.0
6.0
Overall Select Exclusive
Cross-Sell Ratio of >5 in
Exclusive segment
Products per client
Built universality to bring full suite of products to our clients and to
acquire new relationships
Savings
Life Insurance
Investments
General Insurance
2008 2008-11
Savings
Life Insurance
Investments
General Insurance
Trade FX
Credit Cards
Home Loans
2011-14
Savings
Life Insurance
Investments
General Insurance
Trade / FX
Credit Cards
Home Loans
LAP
BBG
Business Loans
Personal Loans
Gold Loans
Health Insurance
Current
SME
Individuals
Current Current
Basic offerings
• Launch of trade to meet needs of business owners
• Launch of Retail FX, HL & Cards to acquire new reln. & to meet needs of existing clients
• Added BBG, LAP, BL to bring full suite of products to SMEs
• Added GL, PL and Health for individuals
Retail FX
We will continue to expand our offering to bring full suite of
products to our Retail clients
Retail
Kisan Credit Card
Mobile / Digital Wallets: own or through partnerships
Aadhar led Direct Benefit Transfers
Solutions / alliances for domestic remittances
Payment Solutions for international remittances
Loan Against Securities
Current Product Suite New Asset Products Payment Solutions
Savings
Life Insurance
Investments
General Insurance
Credit Cards
Home Loans
Personal Loans
Gold Loans
Health Insurance
We will continue to expand our offering to bring full suite of
products to our SME clients
SME
Trade / FX
LAP
BBG
Business Loans
Current Account
Cheque Protect
Commercial Cards
Transaction Banking Solutions
Mobile / Mobile-POS led payment solutions
Payment Gateways for online payments
Facilitation of payments through bin sponsorship
Loan Against Card Receivables
WC/TL for Agri SMEs
Current Product Suite New Asset Products Payment Solutions
We will continue to expand our offering to bring full suite of products to
our Government / Institutional Clients clients
Government / Institutional
clients
Solutions for government & institutional clients
Solutions for fee collection
Toll Collection
E-tendering Tax Collection
Welfare Payments
Illustrative
Technology led innovations have been core to Bank’s DNA:
Bringing many industry first client centric innovations
We are putting in place the building blocks of a Digital Bank
Digital
Marketing Data Analytics
Channel
Innovation
Product
Development
Operating
Process
Redesign
Digital Bank
Social Media
Marketing
Search Engine
Marketing, etc
Virtual / Video
Branch
Mobile Based
Solutions & Apps
Micro-
segmentation of
clients
Straight Through
Processing
Online / Instant
Decisioning
Analyzed Pricing
Segment specific
Product Bundles
Tele-RM /
Virtual RM
Context specific
product offers
Predictive
analytics
Operational Excellence core to Consumer Bank driven by 3 core
beliefs
Paperless Operations:
Minimize physical
movement of paper
Efficient, lean
operations
Ensure control
& compliance
Provide superior
client
experience
Straight Through
Processing
Faster TAT to customers
Operational Excellence: Our Beliefs Principles
Faster Decisioning
Scalability
Mystery
Shopping
A robust Quality Framework underpins the entire organization
Consumer Bank Quality Framework
Sales Discipline
• FTR
• Product Mix
• Quality of wealth business
Skilling
• Attrition
• IndusPro Certification
• Product / Process Knowledge
Consistent, Superior Customer Service
• Mystery Shopping
• Complaint / Request Resolution TAT
• Service Score
• Client Activation
Embedded in KRAs
of employees at all
levels
Strong focus on
tracking quality on
a regular basis
Quality Scorecard
published monthly
Certification
Program such as
IndusPro
Voice of
Customer
Survey
We lay high focus on employee development throughout employee
lifecycle
Hiring
Training Performance Management
Hire-Train-Deploy Model with
supervisory alignment to hire entry
level frontline
Balanced Scorecard Led Approach with focus
on
1. Business
2. Quality
3. Control & Compliance
IndusPro: Award winning program for
frontline skilling with continuous evaluation
MT Program in service & sales roles
to create home grown talent
E-learning for skilling in cost effective,
scalable manner:
• 6K participants and 15K man-hours / month Quality Framework embedded in KRAs at each
level across the organization
Presentation Outline
The Business of Retailing: Our Beliefs
Consumer Bank Performance: Key Metrics
Building Blocks of Consumer Bank
Future Plans
Bank has a clearly articulated ambition for Planning Cycle III
Consumer Bank committed to the overall Bank’s vision for PC III
Diversify Dominate
Differentiate
Launch of new asset
products
Payment Solutions
Home Markets
Digitization for client
lifecycle management
Micro-segment
specific product /
solutions
Products & Solutions
for Rural & Agri
Banking
6 core themes will drive the future for Consumer Bank going forward
• Growth and diversification of consumer assets
• New Business Opportunities – Payments and transaction banking
• Scale up of distribution
• Digital Bank: Use of technology to find, serve and engage with customers
• Sharper focus on geographic and client segmentation; micro-segmentation
and creation of new segments
• Focus on client level revenue and profitability
Planning Cycle III: Distribution Expansion
Consumer Bank will double its footprint over next 3 years
180 300 602
1200
0
200
400
600
800
1000
1200
1400
2008 2011 2014 2017
336 594 1110
3400
0
1000
2000
3000
4000
2008 2011 2014 2017
Branches ATMs
Consumer Bank will double its client base over next 3 years
0.9 1.2 2.7
5.4
-
2.0
4.0
6.0
2008 2011 2014 2017
mn clients
ATM expansion plan also includes co-branded
ATMs with WLA operators
Thank You!