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4. CASE STUDIES
4.1. HSBC NRI Services Research & Promotion
4.1.1. OBJECTIVES:
Research on HSBC NRI service offerings
Suggestion of Promotional activities
Suggestion of new services (core + soft) with regard to NRI banking
4.1.2 RESEARCH DESIGN:
The research is exploratory in nature as the NRI services are being identified and ranked in the order of
their importance. The problems faced by NRIs are also being explored.
4.1.3 RESEARCH METHODOLOGY:
Primary Research This includes interviewing the NRIs through phone, and mailing questionnaires to
the NRIs through internet.
Secondary Research This includes collection of data from books, internet, research papers etc.
4.1.4 About HSBC
Headquartered in London, HSBC is one of the largest banking and financial services organizations in the
world. HSBC's international network comprises around 9,500 offices in 86 countries and territories in
Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
Through an international network linked by advanced technology, including a rapidly growing e-
commerce capability, HSBC provides a comprehensive range of financial services: personal financial
services; commercial banking; corporate, investment banking and markets; private banking; and other
activities.
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HSBC's origins in India date back to 1853, when the Mercantile Bank of India was established in
Mumbai. The Bank has since, steadily grown in reach and service offerings, keeping pace with the
evolving banking and financial needs of its customers.
In India, the Bank offers a comprehensive suite of world-class products and services to its corporate and
commercial banking clients as also to a fast growing personal banking customer base.
NRI
An NRI is a person resident outside India who is a citizen of India or is a person of Indian origin.
Under the Foreign Exchange Management Act (FEMA), generally, a person is resident outside India if
he is in India for less than 182 days during the course of the preceding financial year and also includesany person who stays abroad
for employment, or
for carrying on any business or vocation, or
for any other purpose indicating an intention of stay outside India for an uncertain period
for education provided the student has stayed overseas for more than 182 days in the preceding
financial year.
Under the Income tax Act, an individual is resident in India in a year if he:
is in India for at least 182 days or;
is in India for 365 days or more in the 4 years preceding that year and is in India for 60 days or
more in that year.
In other cases, the individual will be a non-resident under the Income-tax Act
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List of NRIs in major countries
The list of NRIs in major countries across the world is given below:
COUNTRIES NUMBERS
Middle EastSaudi Arabia 1,400,000
United Arab Emirates 1,200,000Kuwait 500,000Oman 350,000Qatar 175,000Bahrain 140,000Yemen 100,000Jordan 4,100
South East Asia
Malaysia 2,300,000Singapore 400,000
South America and the Caribbean
Guyana 326,782Suriname 162113
Trinidad 473735
As well as nominal communities in Barbados,Belize, Jamaica, Grenada, St. Lucia,
St. Vincent, Martinique and Guadeloupe.
Africa
South Africa 1,200,000Mauritius 800,000Kenya 70,000Uganda 60,000
Tanzania 50,000Madagascar 30,000Mozambique 21,000Zambia 20,000Zimbabwe 20,000
Europe
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United Kingdom 1,500,000 Netherlands France 70,000
North America
United States 2,500,00Canada 713,330 (2001)
Oceania
Fiji 350,000Australia 150,000 New Zealand
Source: http://www.nriol.com
The countries whose numbers have been highlighted in yellow are the countries where the population of
NRIs is extremely high.
NRI Banking
NRI banking is a niche segment with almost every major bank providing plethora of services to NRIs. In
recent years NRIs have come to be seen as an important niche segment for wealth managers to target
and as a key potential growth area in the future.
This brief assesses the strategies that companies are using to target NRIs.
This report assesses the scope and nature of the NRI market and reviews the competitive
strategies of key competitors. Findings are based on secondary and primary research.
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It is the major banks like HSBC, HDFC, SBI, Bank of Baroda, Citibanketc. that provide plethora of
services to woo the NRIs. NRI services have gained a lot of momentum in the recent past.
The areas marked in red are the ones that are of maximum priority. USA, UK and the Middle-East fal
into this category. The obvious reason being that majority of NRIs are concentrated in these regions.
The areas marked in dark blue are the areas where there is a fair amount of NRI population but not as
much as the areas that are marked in red. These areas would include Asia-Pacific, Europe (excluding
UK), and Africa.
The areas marked in grey are of the least priority. This is because of the fact that there are very few
NRIs in that particular area. E.g.: South America.
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Process
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The process begins with a NRI identifying a need for bank account to comfortably remit money to India,
invest in Indian markets, depositing foreign currency in Indian rupees etc. The need might evolve
differently for different people. For NRI students the need might involve when they start earning,
whereas for a NRI professional the need might arise the moment he steps into a foreign country. For an
NRI already settled in one country, the need might arise once he has earned a sizeable income.
The next step is evaluating the alternatives. The alternatives in this case might be ICICI, Citibank, SBI,
Bank of Baroda etc. The NRI will weigh the pros and cons of each bank and select a bank which he feels
will most suit him. It has to be noted that in this case word-of-mouth is very important mode of
communication in this case.
The NRI will consider all the required parameters like comfort, portfolio of services, customer
friendliness etc. before selecting a bank/s. The 2 most important parameters that a NRI will consider will
be economy and customer service. It has been observed that customer service is one area where they are
not ready to compromise.
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The NRI will then communicate with the Relationship Manager (RM) and see whether the bank actually
lives up to its expectations. His direct communication with the Relationship Manager (RM) will give
him hands on experience about the bank and will create a positive or negative perception about the bank.
Once the conversation between the NRI and RM is complete the NRI will make his decision and finish
all the formalities.
Providing thorough service, consistency and continuous innovation will enable the bank to retain its
customers. The customers (NRIs) will be loyal to the bank once it proves its mettle. This can be
achieved through CRM.
Word-of-mouth advertising is the most powerful form of advertising as far as banks are concerned. Once
the existing NRI is satisfied, he will automatically rope in a plethora of NRIs and this is a continuous
process. E.g.: SBI bank has most customers whose fathers/mothers have accounts in SBI. This shows
that the best way to attract more customers is by retaining the old ones. This is last step wherein, the new
customers are attracted and retained. This step is never-ending.
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4.1.5. Competitors Analysis
A Competitors Analysis was done in order to find out the services that are being provided by major
banks vis--vis HSBC.
The major competitors in this field are:
CITIBANK
HDFC
ICICI
SBI
a. SERVICES PROVIDED BY HSBC
The NRI services provided by HSBC are as follows:
Rupee Accounts/Deposits
HSBC provides a magnanimous range of rupee accounts and deposits. The different rupee
accounts that are:
1. NRE (Non Resident External Savings account and Term Deposits)
2. NRO (Non Resident Ordinary Rupee Savings, Current and Term Deposit Accounts)
3. RFC (Resident Foreign Currency Deposits)
4. FCNR (Foreign currency Non-Resident Deposits)
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The tenure of various deposits is as follows:
NRE Term Deposits 1 yr - 3 yrs
NRO Term Deposits 15 days - 5 yrs
RFC Term Deposits 30 days - 6 months
FCNR Term Deposits1 yr -3 yrs (USD & GBP)
1 yr - 2 yrs (EURO, JPY, CAD, AUD)
HSBC provides an interest rate of 3.89% compounded.
HSBC offers a plethora of remittance services to suit the needs of NRIs of different income
group. The different services provided are:
1. Dial or Click transfers
Sending money to India from, for Free in 3 working days
2. FastCHEQUE transfers
Incredibly easy remittance facility, enabling remittance to India for free in 3-5 working
days
3. Wire Transfers
Usually for high value remittances which is both quick and safe. Remittance is possible
in eight major currencies.
4. Foreign Currency Cheques/Drafts
Sending money in simple and traditional form of remittance and crediting takes place in
around 14-21 days.
5. Indian Rupee Drafts
Flexibility to buy an Indian Rupee Draft at any HSBC bank and mail the same to
beneficiaries back in India.
Country Guidance
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This is one service which has been received very well by the NRIs. HSBC provides country
specific information for students/other NRIs moving to those countries. They provide
information such as key cities, etiquettes, communication etc.
b. CITIBANK:
Citibank is one of the major pre-eminent financial services company, with some 200 million customer
accounts in more than 100 countries. The inception of Citibank was in 1812, Bank Handlowy in 1870
Smith Barney in 1873, Banamex in 1884, and Salomon Brothers in 1910.
Citibank is one of the stronger players in the NRI segment. Citibank with their rationality approach have
been extremely successful in attracting potential customers. Citibank has gone ahead of the competition
by continuously innovating services. The main services that are provided by Citibank are:
NRI Accounts/Deposits:
Citibank provides numerous NRI accounts and deposits to suit the needs of various categories of
NRIs. This includes
1. Rupee Checking account
2. Indian Deposits
3. Internet Banking
Home Loans:
Citibank provides home loan solutions that guide a person through the process of taking a NRI
home loan from application, to disbursement of the entire amount
as soon as the application for a home loan with Citibank is put forth, a Relationship Manager is
assigned, who steers the customer through the entire process.
Overdraft
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The US Dollar Overdraft is a secured overdraft facility against your NRI investments and
deposits and helps meet your short term liquidity needs.
Foreign Currency Loans
Foreseeing a loan requirement for a NRIs personal investment or business needs, Citibank
provides the flexibility to avail the convenience of foreign currency loans against the NRIs
Globe Deposits.
Swapping of currencies with loans reduces the interest cost by taking advantage of exchange rate
opportunities
Transfers
1. Automated Clearing House (ACH):
ACH is a unique, paperless and online transfer facility in the U.S. It saves a person from
the hassle of going to a bank or posting a check for affecting a transfer. Using the ACH
facility, one can transfer funds online into the Rupee Checking Account from his/her
local U.S. account, provided your bank in the U.S participates in the ACH network.2. Citibank Global Transfers Facility:
It allows NRIs to transfer funds from the local Citibank Account to Citibank Rupee
Checking Account instantaneously.
3. National Electronic Funds Transfer (NEFT) / RTGS
It is one of the fastest ways to transfer funds to India. It gives the ability to transfer funds
online from Rupee Checking Account to any local account in India to over 41,000
branches. No charges from Citibank for this facility.
4. Dial-to-transfer
This refers to the phone transfer. Money can be remitted to India by placing a call.
5. Loans and Investments
Citibank provides a variety of services with regard to global investments such as
Treasury Services, Structured Products, Mutual Funds and Fixed Income securities.
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c. HDFC
The Housing Development Finance Corporation Limited (HDFC) was incorporated in August 1994 in
the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.
HDFC provides the following NRI services:
Rupee account/Deposits
The various accounts/deposits provided by the bank are NRE Accounts, NRO Accounts and
Special Resident Indian Savings Account.
1. Special Resident Indian Savings Account:
This account is available for Resident family members of existing as well as new NRI
customers. The account also offers the leverage to the customers to group their savings
account with the account of the respective NRIs.
The various deposit schemes available with HDFC are NRE deposits, NRO deposits, Super
Saver Account, Sweep-in Account, FCNR and RFC deposits and accounts.
1. Super Saver Account:
This account combines a Fixed Deposit and Savings/Current account. The bank also
offers an overdraft of 75% if the deposit, or 1 Crore, whichever is lower without breaking
the Fixed Deposit or losing interest.
2. Sweep-In Account:
This allows the NRI to link the Fixed Deposit to NRI savings or current account. It helps
to cover the deficit in Savings or Current Account by your Fixed Deposit, without
disturbing the interest on the reminder.
Remittances
The various remittance services provided by HDFC are:
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1. QuickRemit:
QuickRremit allows the transfer of funds from the foreign country to family members
back in India through internet at relatively negligible time.
2. Cheque Lockl-Box:
Money can be remitted by mailing a Cheque to local mailbox.
3. Telegraphic/Wire Transfer:
The most commonly used form of transfer
4. Fund Transfers through Cheques/DDs/TCs:
It is the traditional way of transferring funds through cheques and demand drafts.
d. ICICI
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was
its wholly-owned subsidiary.
ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at
March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a
network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries. ICICI Bank
offers a wide range of banking products and financial services to corporate and retail customers through
a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of
investment banking, life and non-life insurance, venture capital and asset management. The Bank
currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia
and Indonesia. Our UK subsidiary has established branches in Belgium and Germany.
ICICI bank offers a comprehensive list of services. The service offered encompasses almost all the
categories of NRIs including students. ICICI has gained a lot of prominence in the NRI segment by
targeting students. The main servicesprovided are:
Rupee Accounts/Deposits:
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A variety of Rupee account and deposits are offered by ICICI which include NRI Edge, NRE
NRO, RFC, NRI SmartSave Account, Student Account, Global Indian Account and Seafarers
Account.
1. NRI Edge:
NRI Edge is ICICI Bank's new premium banking product for NRIs from across the
world. It is equipped with premium Platinum Debit card, a dedicated 24x7 phone banking
team and exclusive investment options. For NRIs looking priority service and exclusive
privileges, NRI Edge is an ideal choice.
Investments
ICICI Bank offers abundant investment opportunities for NRI investors which is often flexible
and lucrative.
1. Offshore Banking Deposits:
This offers investment in various currencies. The tenure period is between 3- 6 years
which exemplifies the fact that an NRI can park his money in the currency and duration
of his choice.
2. Singapore Deposits
3. Bahrain Deposits4. Structured Deposits
5. Private Equity
6. Commercial Real Estate
Money Transfer:
Like most banks ICICI provides a complete remittance facility. The main services offered are
1. Online Transfers:
This includes E-transfer (ACH), Money2india, Netbanking transfer, Chequelock box and
Web-based wire transfer.
2. Wire Transfers
3. Foreign Currency Cheques
Property Solutions:
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ICICI Bank offers a wide variety of home loan products tailored to the unique needs of NRIs
Insurance:
ICICI provides Life Insurance and General Insurance to NRIs.
Loan Against Deposits
ICICI provides liquidity in NRIs investments by offering a loan facility against his/their
deposits. Rupee loans are provided against the security of NRIs Rupee Deposits or FCNR
deposits.
e. SBI
The State Bank of India, the countrys oldest Bank and a premier in terms of balance sheet size, number
of branches, market capitalization and profits is today going through a momentous phase of Change and
Transformation the two hundred year old Public sector behemoth is today stirring out of its Public
Sector legacy and moving with an agility to give the Private and Foreign Banks a run for their money.
The main NRI services offered by SBI are:
NRI accounts:
SBI offers a huge range of NRI accounts. It offers fixed deposits in various currencies such as
the USD, CAD, AUD, GBP etc.
Deposits:
The flexibility provided for deposits in staggering. The tenure ranges from a mere 6 months to 5
years.
Car-Loan Schemes:
State Bank of India presents a special product in car loans to cater to overseas Indians. This is
one of the most unique and effective service offering in the NRI segment.
To meet their specific needs, SBI has launched a new car loan scheme titled as NRI-Car Loan.Under the stated scheme the Borrower will be a Resident Indian who is a close relative of
sponsoring NRI/PIO who would be the Guarantor.
Under the NRI Car Loan Scheme the NRI/PIO will be the Guarantor and the NRIs /PIO's
nominee will be the principal applicant. The car loan will be granted at the request of Guarantor
(NRI/PIO)
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Purpose:
Loan is for the purpose of Purchase of new passenger cars, Multi Utility Vehicles (MUVs) and
SUVs.
Eligibility:
For Borrower & Guarantor
Age: 21- 65 years (for both). Loan to be repaid before the guarantor turns 65 yrs of age.
A Comparative Analysis has been prepared to find out the respective strengths and weaknesses of each
of the major banks providing NRI services.
HSBC CITIBANK HDFC ICICI SBI STANDARD
CHARTED
Remitting money
to India
Remitting money
to India
Remitting
money to India
Remitting
money to India
Remitting money
to India
Remitting money
to India
Rupee accounts Rupee accounts Rupee accounts Rupee accounts Rupee accounts Rupee accounts
NRI deposits (1-
3 years)
NRI deposits NRI deposits NRI deposits NRI deposits NRI deposits
Loans Loans Loans Loans, Property
Solutions
Loans(*car-loans,
home loans)
Loans
Country
Guidance
Special Services
(Not specified)
Investments
(PIS, Private
Banking)
Investments and
Insurance
Investments Investments
4.1.6. Primary Research
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A primary research was conducted to find out the banks preferred by NRIs, the services availed by
them, the gaps in services and new services that the customers would like the bank/s to incorporate.
The sample size was unbiased covering NRIs residing in various parts of the world.
The questionnaire was sent across to NRIs in various countries including USA, Spain, Saudi Arabia etc
through email and on certain occasions questions were asked through phone. The responses were
collected and inferences were drawn. These inferences were then analyzed and the following
conclusions were drawn.
18
Preferred banks for NRI accounts
2
1
2
5
1
3
Citibank
HDFC
HSBC
ICICI
SBI
StandardCharted
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WT
4 2
Various
DepositSchemes(NRE,NRO..)
Investme
nt andInsuranceSchemes
L
4 5 1
Number of NRI accounts
It is evident from the pie chart that the most preferred bank for NRIs is SBI. It is ironic seeing a Public
sector bank overtaking the likes ofHSBC, HDFC etc. The major thing noted here is that the services
provided to NRIs changes from country to country. A NRI is USA/UK receives lot more services than a
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NRI who resides in any other country like Argentina, Nigeria and to an extent Gulf. This might be due
to the fact that the percentage of NRIs in USA/UK is huge compared to other countries.
Nationalized banks are more preferred as compared to Private players like Citibank and ICICI as per
the survey. Persons from the Gulf prefer SBI and Bank of Baroda whereas most people in USA prefer
Citibank and ICICI. Citibank is the most preferred bank in USA for NRIs. In Europe, people prefer SBI
and other Indian banks.
Economy plays a major role in selection of a bank. A customer doesnt want to be charged
miscellaneous amounts for some service he never availed. Also excessive remittance charges is a huge
let down for NRIs. This is one more reason due to which nationalized banks are preferred over their
Private counterparts.
It has been found that people in Gulf tend to have more than one NRI accounts and have accounts with
multiple banks. This trend is also present in the US but to a lesser extent.
The service that is most sought by NRIs is the Ease and Comfort of remitting money to India. Also
NRIs are very particular about the types of NRI accounts and Deposits that the banks offer them.
Investment opportunities also play a vital when it comes to the selection of bank by NRIs. In fact,
most customers open NRI bank accounts for the purpose ofRemittance and Investment opportunities
only. The survey has shown that customers want to invest in the Indian stock markets and presently
only one bank (HDFC) provides that faclity.
NRIs in the survey want betterBenefits and Policies with regard to interest rates and insurance policies.
Safety is also a major factor which NRI customers look closely before choosing a bank.
The NRIs do not want their funds to be misused or stolen. They are very particular about the safety and
do a prodigious amount of research before selecting a bank with good safety. This might be one of the
reasons that SBI is more preferred than other banks as it ensures safety.
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The most important thing that NRIs found lacking was good Customer Service. Many a time it has so
happened that a reputed bank has held up NRIs life savings due to some software error or other such
excuses. NRIs are very frustrated with these activities. The filing of a lawsuit and claiming damages is
a long and complicated process.Almost all the NRIs whose survey was taken agreed to the fact that these
banks need to improve their customer service.
The bank which is finally ready to improve the customer service is the bank that will gain the maximum
NRI customers.
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4.1.7. Promotional Tools Used by Various Banks
Banks normally use 2 methods of promoting their services. One is the Rational approach and other is
the Emotional approach. Banks such as SBI use their emotional touch to appeal to the customers
whereas banks such as HSBC use the rational quotient to attract the customers.
The most common tools used by most banks are:
Personal Selling
Direct Marketing
Brand Building
Sales Promotion/advertising
HSBC
The promotion of HSBC bank is a unique mix of Rational and Emotional appeal. Rationality
occupies the major space, but small quantities of emotions are added to the mix. The following
two schemes exemplify the same.
Country specific services
HSBC provides a unique, one of a kind country specific service. It provides information about
the countrys culture, holidays, etiquettes, hot spots etc. to the NRI/s who is traveling to that
particular country.
This service can presently be availed only for a few countries.
Blockbuster Weekends
This is the part wherein a small amount of emotional appeal comes into the picture. HSBC offers
special blockbuster weekends (screening of bollywood movies in particular channels) to NRIs
who have accounts with them. The factor of nostalgia has been exploited to the maximum
possible extent.
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CITIBANK
Citibank also uses a combination of rational and emotional appeal with more focus on emotional appeal.
Personal touch
Citibank gives a personal touch to the NRI the moment he subscribes for a service. A
Relationship Manager is appointed to a NRI as soon as he subscribes for any service. This person
takes care of all the NRIs requirements. This gives the NRI the familiarity of dealing with one
person as well as helps in breaking the barrier.
Tie-up with Indiaplaza.in
NRI love to gift their dear ones back in India. Citibank just made that easier by tying up with
Indiaplaza.in. This website consists of a comprehensive list of gifts that one can send to
friends/family back in India. Citibank users get to avail special discounts and offers which
purchasing these gifts. The range of gifts is from Cakes to Electronics.
Complimentary Bollywood DVDs
This is mainly used as a promotional tool. Indians outside are very nostalgic. Taking advantage
of this fact, many banks go bollywood happy! In this case, Citibank provides free complimentary
DVDs (Hindi Movies) when a NRI opens an account with them. This is one of the soft services
that really help in attracting the customers who are unsure of selecting the bank.
HDFC
HDFC uses a rational approach to attract their customers.
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Variety of Investment opportunities
The range of Investment opportunities provided by HDFC for NRIs is astounding. Their services
are holistic and cover the needs of common investors and HNIs. One of the major USPs of the
bank is that they provide Portfolio Investment Scheme (PIS) which allows a NRI to invest in
the Indian stock markets.
They also provide numerous Mutual Funds investment schemes.
Also, HDFC provides tailor made Wealth Management schemes and Private Banking for
HNIs.
Exclusive Gold credit card for NRIs
Credit Cards have become a part of life. An exclusive credit card in foreign countries allows the
NRIs to have that flexibility in spending. This goes a long way in attracting customers.
ICICI
ICICI bank appeals to the customer in an emotional manner with a hint of rational approach added to the
mix. This unique approach is both intriguing and attractive. Their main promotional schemes are:
Special accounts
ICICI is renowned for providing tailor made accounts to various segments of the society. They
provide special accounts for Student NRIs, Seafarer and Global Indian account
Customization is required in banking and ICICI is the one bank that provides it.
Property consultants
Purchasing a home is a tedious and lengthy affair intertwined with many complications and
frauds. This becomes all the more difficult for an NRI to purchase a house at the right place and
right amount. ICICI bank has appointed property consultants for NRIs who want to purchase
homes in back in India.
Economical charges
ICICI bank provides one of the most economical charges with respect to remittances. This being
one of the major requisites of customers is a huge influencer.
Innovation
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4.1.8. SWOT Analysis of HSBC
Strengths Weaknesses Opportunities Threats
Brand Equity Limited Services Untapped markets Reverse Brain-
Drain
Country-specific
services
GAPs in service
provided by
competitors
Tough
Competition
Economical
The survey and SWOT analysis imply the need of certain Core and Soft services that need to be added
to the portfolio.
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4.1.9. Recommendations
The main services that need to be added are:
Core Services:
PIS (Portfolio Investment Services).
The survey conducted showed that NRIs were quite enthusiastic about investing in Indian Stock
markets but expressed the lack of availability of such services. Investing in Indian Stock markets
is highly lucrative and rewarding. Considering the fact that India in a developing country and it
is at a high growth stage the amount of probable investors (especially NRIs) is colossal. Seeing
the present trend, it is evident that HSBC needs to include the Portfolio Investment Services
This service is presently only being offered by HDFC. It has the potential to grow as a major
service in the future.
Increase the loan Portfolio.
The bank should try and provide Personal loans and Educational/Sibling loans. This
conclusion has been arrived at with the help of a small survey. The survey was conducted to find
whether NRI students who finished their Graduation/ Post Graduation abroad would like their
siblings in India to pursue their careers/education abroad.
The NRI students will not be able to afford the amount required to sponsor their siblings to
pursue their careers/education abroad. If a sibling loan is opted for, there will be a sizeable
percentage of NRI who will opt for this service.
Wealth Management services
Wealth Management services should be provided for NRIs who are High Net worth Individuals
(HNIs). NRIs who are earning substantial income need to invest their money wisely. The Indian
stock market is very lucrative for NRIs to invest in. There is more and more interest being
generated for investments in the Indian stock markets.This service would help in encapsulating
the NRI (HNI) cadre.
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Student Accounts
There has been a trend of many Indian students going abroad for the sake of studies and settling
there. These students mostly open a NRI account to satiate their needs. Its been observed that
most students/persons once open an account and are satisfied with it, they will seldom switchbanks. This means that a student NRI customer is a potential customer for life. ICICI bank is
already providing this facility to NRI students. This service would help HSBC tap the potential
customers at the grass-root level.
Instant Transfers (ACH/RTGS)
Almost every bank has started a facility of instant transfer of funds. This is very vital when it
comes to remitting money during an emergency. Situations where time is of essence might
require Instant transfers. SBI provides instant transfer services. This needs to be added to the
portfolio to give a holistic product offering.
Differentiation of Services
Indians value relationships. This fact does not change even if an Indian goes abroad. These
relationships assume different meanings in various age groups. Instead of offering the same
services to all NRIs the bank can offer slightly differentiated services to different sub-groups ofNRIs. The services need not differ. The positioning of services need to be specific and focused
so as to make the NRIs believe that these services have been specially designed for them.
These services have been differentiated in a manner which has taken all these above factors into
consideration. The culmination of these factors presents a very holistic ideology, by which each
segment of NRIs can be captured.
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The services have been separated categorically. They have been represented in the
following manner.
Quick Transfer of money Comfort of Remittance Comfort of Remittance
(RTGS/ACH)
Designated RMs to Credit/Debit card Wealth Management Schemes
facilitate with clients facility for family
Transparency Deposit Schemes Venture Opportunities
in India
Ease of banking for parents back in
India
The differentiation has to be carried out in the above mentioned order.
These are major Core services that need to be added to the services mix to attract more customers.
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Soft Services:
Soft Services are certain add on services that need to be provided along with the Core services to make
the whole service offering striking and gravitating.
Festival Offerings
India is a land of festivals. No matter how far an Indian goes, he always remembers the festivals
and sends gifts/money to his loved ones in India. It is during these festivals that remittance
frequencies and amount of money remitted increases drastically. NRIs during this time becomevery fidgety and touchy with regard to service. HSBC could offer special schemes and incentives
to NRIs during these times. These incentives could be reduction in time of transfer, reduced
costs, free gifts etc.
E.g.: During Rakhshabandhan many brothers living abroad send gifts to their sisters living in
India. There need not be any NRI account opened with the bank. Bank of Baroda offers free
remittance without the requirement of opening a account with the bank. This service intertwined
with the festivals would be a huge success.
Increasing Emotional Appeal during Festivals
Festivals like Diwali, Holi are the ones that bond Indian families together no matter how far they
are from each other. The emotions run extremely high during these times. These are the times
when the bank can emotionally bond with the NRIs with relative ease. This can be achieved by
providing small mementoes, or greeting cards or gifts just to remind them that the Bank cares
This emotional attachment will help the bank override small diversions in services. The
customers will be more tolerant that they would be otherwise. This will also help the bank create
positive brand equity in the mind of the consumers.
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The list of probable festivals for both the above mentioned points is listed below
Festivals
Gokulastami
Onam
Christmas
Rakhsha Bandhan
Diwali
Easter
Dussera
Holi
Durga PoojaMahakumbhmela
Ramlila
Mahashivartri
Navaratri
Pongal
Ganesh Chaturti
Eid
Bakri Eid
The festivals highlighted in red are the ones that will have maximum NRI activities. These are the top
priority festivals that need to be targeted directly.
Tie-up with Online gift-shop
NRIs normally remit money to India. But they also like to surprise their loved ones with gifts and
other articles. It becomes a lot less cumbersome for a NRI when he is able to buy gifts
directly linked to the website of the bank. Not only that, it also gains the trust of NRIs as they
already trust the bank. This service will have a few positive effects. The NRI/s likes/like to work
with the bank as it provides a plethora of options for gifts, it saves his time, and he trusts the
bank. Then it affects the online gift shop which gains to stand a lot of revenue from this venture.
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Student Related Services
As NRI students are one of the target segments, it is vital that HSBC targets them in every
possible way. This service could be an extension to country guide. The bank could provide NRI
students guidance in form of selecting colleges, the residence, the underlying areas, loan
guidance etc.
Reverse Effect
Normally, the trend is that most NRIs send gifts to their loved ones in India and not the other
way round. But, today many families back in India want to gift their loved ones in the foreign
countries. During their (NRIs) special days, HSBC on behalf of the families in India or on their
request can send a small gift/memento to the NRI. Indians are one of the most emotional beings
in the world. The NRIs would be very touched and delighted. This would again help in creating
an affinity towards the brand. This can be termed as reverse-effect.
Extension of Country Guide
The country guide which is being provided by HSBC bank is only extended to USA. This service
is one that is not being provided by the competitors. According to a survey that was conducted
many NRIs especially students are very open to the idea of country guidance. If this service
could be extended to other countries it would be received positively by the NRI customers who
yearn for such services.
Tie-ups with Online sites providing add-on services
There are a few online websites such as www.aai-baba.com and www.doorstepdoctor.com
which specifically cater to the needs of the NRIs.
Aai-baba.com provides parental care (includes providing tiffins, providing chauffeurs, maids
etc.) to parents of NRIs. This service is presently available only in Maharashtra.
Doorstepdoctor.com provides medical services for aged parents of NRIs at the comfort of their
homes. They provide regular medical checkup of patients, hospitalization, medication etc. all in
all a holistic medical care service.
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Today most NRIs who have been settled abroad for a while worry about their aged parents
health and well being. If these websites can tie up with HSBC their advertising will be done
through the banks website. In return, HSBC will have the ability to provide which other banks
cannot provide. This would act as huge influencer for selecting a bank. The NRI customers of
HSBC will have access to these websites and the trust factor of these websites will increase
monumentally once it ties up with this bank.
Thus, it results in a Win-Win situation for both the parties.
Promotional Activities
Sending cards/mementoes on occasions:
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The bank can identify the reason during which money/gifts are being remitted. This column can
be optional. If the occasion is wedding, Child birth etc. the bank can from its side send a
gift/card/memento to the family of the NRI. We would be targeting one of the important
recipients of the service.
Promoting Occasion-wise services:
In the previous section the need to differentiate services was explored. These services need to be
effectively promoted during those festival months so as to gain the maximum out of these
festivals and attract the customers.
Direct Marketing:
Direct Marketing is one of the most powerful tools in banking sector. It allows the bank to make
personal contact with the customers/NRIs, in the process building a strong relationship with
customer. A letter drafted in a Indian way (some Sanskrit words/slokas etc.) with traditional
Indian envelope will surely grab the attention of the NRIs.
The main advantages of Direct Marketing are:
Quick to produce:
Preparation and mailing a small promotion is possible within days or weeks. Direct mail is
perfect for quickly testing prices, offers, and potential audiences. We/HSBC complete contro
over the media, the audience, and banks offer.
Quicker response:
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Not only is direct mail quicker to prepare, but response time to direct mail is usually quicker as
well. HSBC can project the final results of a mailing quickly and accurately. Ogilvy can build an
advertising campaign with more confidence by testing small lists, then building to larger lists.
Highly targeted:
Using carefully developed lists, the bank can target its mailings more selectively than with most
other media. Almost any market segment, buyer profile, or area of the Treasure Coast you feel is
most appropriate for your business can be reached with effortless ease.
Less competition:
The advertising message does not have to compete with other advertising messages. Thecompetitors are less apt to know your current strategy.
More personal:
Not only can letters be personalized via mail-merging techniques, but there can be use of more
informal language in writing the letter and the letter can be directed to the specific interest of the
reader.
Enhance newspaper advertising:
The bank can build on customer awareness by complimenting its print advertising with the
impact of targeted mail.
Easy response:
The inclusion of an order card and return envelope makes it convenient for the consumer to
respond to direct mail.
List of loyal customers:
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Direct mail will allow the bank to build and maintain a list of prime prospects for future direct
mail campaigns.
Targeting Students who are giving GRE/GMAT
Most of the future generations of NRIs are students who give their GRE/GMAT exams and go
abroad. They study and often settle in foreign countries. If HSBC could offer some kind of
student guidance and student accounts (Refer Core services), the potential customers would be
targeted from the infancy stages. This time is the easiest time to build brand loyalty. By targeting
these students, we would capture a major chunk of student population of NRIs.
Offering Special Schemes to NRIs working in Organizations
Today, one of the major chunk of NRIs are persons who have been sent abroad through their
organizations back in India or ones who have been hired by Fortune 500 companies. Most of
these companies have a sizeable amount of Indians working amongst them. If HSBC could
provide certain additional features to the NRIs working in these organizations (like Vodafones
corporate offers), then it could easily capture these segments.
Advertising Near Consulates
Advertising inside consulates or on consulate website would be a very difficult proposition. Most
people who want to go abroad would have to visit a Consulate to obtain a visa. I
hoardings/signage/s could be displayed near these consulates it would aid in brand recall. OOH
has been gaining more and more prominence in the recent past. So it is preferable the company
displays these hoardings/signages in these areas.
Participating in NRI events/meets:
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The one thing that NRIs all over the world predictably do is they have a meeting or event
somewhere in the world once every 6 months or 1 year. All NRIs of one community make it a
point to participate in these events. The thing that can be exemplified is that majority of the
target segment attends these meets. Examples of these meets could be Viswa Hindu Parishad
Meet, NR Maharastrians Meets, etc. If HSBC sponsors such an event then it can easily
promote its NRI accounts in these meets. Simple participating would be a brand building
exercise.
This would be a very powerful tool as the company would be directly interacting with its target
audience. This congregation of NRIs presents a huge opportunity to the bank to advertise a
relatively economical cost and high returns.
Offering special schemes at NRI meets:
This is an extension of the previous point. To woo the target segment the company can offer
certain incentives so that the NRIs get attracted. Eg: In a worldwide Maharastrian meet the bank
can offer special schemes on remittance of money to Maharashtra.
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4.1.10. Conclusion
NRI banking is one of the upcoming niche markets in the banking sector. NRI banking is sure to gain
more prominence in the near future. The growing trend of NRIs exemplifies the fact that sector of NRI
banking is about to grow exponentially. The frequency of Indians settling in various parts of the globe
like Australia, New Zealand etc. has increased dramatically. The only hurdle that makes the niche a bit
challenging is the amount of the banks that are coveting for the market share in this segment.
HSBC, being one of the most premium banks in the world, is sure to gain more prominence in NRI
segment. It needs to improve its customer service and invoke the desire in customers to open NRI
account in its branches. NRI banking is a segment which has eluded HSBC for a long time.
It can be concluded that HSBC has the capability to capture the much coveted NRI segment with some
focused and effective promotion strategies.
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