Aditi SinghNMIMS Mumbai

CASE STUDYHUNT FOR LIONS

EXECUTIVE SUMMARY

This report has been constructed with the aim of understanding banking behaviour of the people in India and proposing to ING VYSYA a way ahead in digital banking.A survey was created and 200 responses were collected based on which following results were deduced:1. ING VYSYA’s brand visibility is above average but almost null brand salience ie when

people were asked which banks would you open an account with ING was not in the list of top 5 in almost all responses.

2. ING offers highly competitive products but lacks in creating awareness about them.3. Digital Banking is highly accepted by people in all cities but the products available

online are limited4. Availability of products online plays an important role in selection of bank5. A lot of people know of ING as an insurance company and not as a bank.

IDEA GENERATION

• SWOT ANALYSIS• PRIMARY RESEARCH• SECONDARY RESEARCH• MARKET TREND• FUTURE PREDICTIONS

T

DIGITAL

BRANCH

DIGITAL

BRANCH

• Branches in areas with little or no internet• Tapping rural areas and areas where people are

apprehensive of internet banking

• Reduced cost of handling branches.• Market penetration where branches are not present- Breaking

of geographical restrictions.• Ease of usage• Simplifying Engagement- Reducing processes, paperwork etc

• Security concerns of customers• Competitors like ICICI, YES, HSBC, CITI which have managed to

gain high visibility by extensive marketing and promotions(both ATL and BTL)

• Data, systems and processes across different product lines need to be shared and leveraged on all touchpoints to remain competitive

• Changes in regulatory environment leading to increased IT expenditure

• High focus on customer engagement- Hiring of suitable professionals for the job as there in an increased focus on the customer

• Convenience charges for using net banking facilities• Customers need to visit the branch for services not provided by

internet banking anyway hence prefer it• Little awareness of ING VYSYA’S offerings even though highly

competitive• Very few products available through digital banking• Poor customer relationship management

• Change in lifestyle of customers• Increasing use of phones, tablets, notebooks etc for online

purchases• Leveraging data for improved services by the use of analytics.• Increased demand for financial products•

• People still prefer face to face transactions – Trust Factor• Option of customization according to customers needs• Relationship Building

OS W• Minimum use of mobile, and digital interactivity within the branch

• Uneven geographical penetration• Time consuming • Very high amount of paperwork

PRIMARY RESEARCHA survey was carried out to understand customer behaviour and needs.Following questions were asked apart from Age, City, Employment Status and Annual Income.• Which of the following bank(s) do you hold account(s) with? • Which of the following services do you visit the bank for? • Which of the following services would you use if available online?• If a bank provides you with the above facilities, would you open a

new account with them? • What restricts you from using your bank's net banking facility? • How do you know about ING VYSYA?

?

OBJECTIVESThe survey was carried out with the following objectives:1. Bank preferences and reasons behind them.2. Digital Banking or Branch Banking- Customer Insights3. Apprehensions of customers with using internet banking.4. To find out existing products which are most probable to drive the

customer to switch to digital banking.5. New products which can be introduced by ING VYSYA according to

customer needs and can be used as PODs for customer acquisition.6. Brand and Product awareness of ING VYSYA

IDEA SCREEING- INSIGHTS• Only 5% of the respondents had an ING VYSYA account. Most had

accounts with ICICI with HDFC and AXIS coming close 2nd and 3rd (Private players). Almost all had an SBI account. • Most of the respondents prefer to never visit a bank branch. Almost

40% visit the visit a branch to open an account, get a credit card/DD issued and issuing/depositing of cheques.• When asked what services if provided by a bank could lead them to

open an account with them, I was surprised to find out that 70.21% wanted free RTGS/NEFT services which ING VYSYA offers but the consumers are not aware of it.• Demand Draft and Credit Card online issue facility was also in high

demand by 55.3% and 53.2% of the respondents respectively.

• Account closure and discontinuing of services ( eg FD ) if available online was also a major reason which people demanded though only these would not motivate them to change their banks.• Awareness of ING VYSYA as a bank was low • Very few people were aware of any promotional offers by the banks

which means there is a lack of offers or the collaborations in the case of these offers are not materializing into customer engagement.

ROADMAP

• Major cities like Mumbai, Delhi and Bangalore in the first phase (2 months)

• Above middle class• As ING has already made a mark in the

southern part of the country, marketing and promotional activities should be done in all major cities in the north after first phase.

TARGET

• Online Issue of Credit Cards(as ING does not need documentation for the same) and Demand Drafts

• Advertising of:• ING VYSYA’s free RTGS/NEFT

services• No penalty for discontinuing

PRODUCTS • As ING VYSYA has launch a credit card recently with lower credit limits than Standard Chartered and American Express, if available online, could be hot-selling.

PRODUCT DEVELOPMENT

ACTIVITY ACTION WEEK1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

1. Concept Development and Testing

Product features, benefits and feasibility through virtual

computer aided rendering

2. Business Analysis

1

3. Beta Testing and Market

Testing

4. Technical Implementatio

n

Calculating selling price, sales volume, profitability and

break even2

Introduction of the product and test run in a market

suggested

As ING VYSYA already has net banking facilities, it has to focus on partnerships and collaborations with various online shopping websites, Movie Theaters like PVR,

BIGetc for increased visibility

3

4

RECOMMENDATIONS

• ING VYSYA has highly competitive products but awareness is low so it needs to promote it’s products to the mass. As it is a comparatively growing bank ING VYSYA can use Below the Line activities to gain visibility.• As a lot of young people are in the >10LPA category in major cities, ING

VYSYA should target these customers by means of sponsorships in MBA colleges, promotional offers in collaboration with online retailers. • A few options can be given on the online platform apart from the ones

already suggested which will help in creating Points of Difference1. Option to discontinue FD2. Account Closure

RECOMMENDATIONS

• Reduce time for opening account to 24 hrs like other competitors which presently is 2-3 days.

SOURCES:

• http://www.ingvysyabank.com/credit-cards.aspx• http://rbidocs.rbi.org.in/rdocs/PublicationReport/Pdfs/21595.pdf• http

://thefinancialbrand.com/27137/future-of-online-banking-culture-change-tbunch/

THANK YOU!

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