Date post: | 18-Jun-2015 |
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Business |
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Ashish BahetiIIM Shillong
ING CASE STUDY COMPETITON
Executive SummaryPrimary ResearchInsights from ResearchSegmentation & Targeting SWOT of Branch BankingSWOT of Digital BankingPresent ScenarioFuture Ahead and InnovationsConclusion
THE ING CASE STUDY COMPETITON- 2014 3
Executive Summary• Compare Digital Banking and Branch Banking and understand their
pros and cons• Understanding the different types of Digital Banking and the different
services which they offer currently• Finding out why people use these type of services aided by online
survey and desk research• Roadmap for the future by bringing innovations like highly customized
services at an individual level with the help of data mining and machine learning and entering the new markets by educating the market
THE ING CASE STUDY COMPETITON- 2014 4
Primary Research
Data included people of age group
from 18-50
People from diverse backgrounds like
Businessmen, Service men Student,
Housewife, Software-Developer, Doctors, etc.
Gender diversity
People from various cities
across the country
Data mixture
Data Sheet
3.45
34.48
36.21
15.52
5.17
3.45 1.72
NUMBER OF OVERALL TRANSACTIONS %WISE
0 1 2
4 7 10
15 25 50
100
0%1%2% 3%5%
7%
12%
23%
47%
NUMBER of Digital transaction %-wise
0 1 2
4 7 10
15 25 50
100
THE ING CASE STUDY COMPETITON- 2014 5
Insights from Data …
8%
23%
14%8%
21%
18%
8%2%
Percentage wise Transaction Business Transaction
Mobile and DTH Recharge
Online Term Deposit
Pay Taxes
Funds Transfer
Viewing A/C Details and Recent Transactions
Shopping
Withdrawal
5%
52%16%
23%
2%2%
Percentage wise difficultiesSecurity Concerns, Looks very complex
Security Concerns
Looks very complex
Others
Security Concerns, Looks very complex, Too tough
Branch Banking is more suitable for me
After analysis of primary data, it was found that major issue which stops online transaction from over taking branch banking are security concerns.
Going through the survey results it was found that the majority of
the transactions are used for Recharging cell phones & DTH, Shopping, Fund Transfers and
Viewing A/C Details.
THE ING CASE STUDY COMPETITON- 2014 6
How Digital Banking sees the market ..
Segmentation&
Targeting
Readiness- Stage
Unaware - No digital knowledgeAware - Digital knowledge but not using digital banking
Interested - Using digital banking.
Age groupLess than 25 years of age
25-40 years of ageMore than 40 years of age
I don’t use digital banking because of security issues
I want to use digital banking
but it is very complex ..
Target Group
0-17 18-21 22-26 27-31 32-36 37-44 45-1000
10
20
30
40
50
60
0
52.6315789473684 48.9473684210
52638.4615384615
385
47.0588235294118
6.250
Digital Banking as a percentage of overall Transactions
Age Group
Perc
enta
ge
THE ING CASE STUDY COMPETITON- 2014 7
SO
WT
Analysis of Branch Banking
STRENGTHS Customer Relationship Management is there
because of Personal Interaction Security Concern is not there as it is traditional
concept and bank was viewed as something very safe
Up-gradation Cost is low as the up-gradation of infrastructure doesn’t take place very quickly
WEAKNESSES× Generalized products – same products were
offered for all customers× Cost-Disadvantages as we need to pay for the
staffs and the building× Slow Transaction Process as it is done by people× 24*7 service is not there
OPPORTUNITIES• New Technology/Innovation
• New Markets/Emerging markets – Rural Market
• New Products or Customised Products
• Customer engagement when staffs can be trained with both good soft skills and knowledge about the products and services which the banks offers
THREATS• Substitute Products like Digital Banking
• Govt. Regulation
• Continual change in Technology so the staffs need to be trained and that incurs a high cost
THE ING CASE STUDY COMPETITON- 2014 8
SO
WT
Analysis of Digital Banking
STRENGTHS Transaction Process is very fast
24*7 service
Increased accuracy as the data is entered directly by the customer
Customised Products because we get to know customer much better
Global Area Coverage i.e. can be accessed anywhere
WEAKNESS× Customer Relationship Management- still a large
population wants to have a manual intervention for their service
× Up-gradation Cost is High and Technology changes very quickly
× Security Concerns is a big issue when it comes for digital banking
OPPORTUNITIES• New Technology/Innovation- Huge scope and it is
believed that digital marketing still doesn’t knows its potential
• New Markets/Emerging markets – Rural market is something which can be tapped efficiently
• New Products – Bring new and customised products
• Social engagement – On a long term basis there should be social platform to engage with customers
THREATS• Volatile Revenue – Still the growth cannot be predicted
• Substitute Products – Older Technology will be slowly taken by advanced products
• Govt. Regulation – Any change in norms can impact the sector very badly
• Continual change in Technology so one needs to be updated else competitors will take over
9
Present Scenario …
Points of Access
• Internet Banking• Mobile Banking• Phone Banking• SMS Banking• IMPS• Automated Teller Machines
Services includes
• Funds Transfer• Bill Payments like:
• Mobile/Landline• Electricity
• Term Deposit• Pay Taxes• Viewing Account and Transactions
details
THE ING CASE STUDY COMPETITON- 2014
What people say ..P1: Mobile Banking is very convenient to use.P2: At times Net Banking seems very risky when you have high balance.P3: For transferring funds instantly IMPS is best for me.
What experts say ..Technology has always impacted our life and digital banking will change our life-style. Digital Banking is bound to change a lot …
10
The Way Ahead …• Overcome Security concerns• Divide the customer’s account into two parts, low-level account for day to day
small amount transactions and high-level account for occasional high amount transactions• For daily transactions the customer will use low level account. This will be
very simple and will allow customers to risk a predefined small amount. This will build confidence in the minds of the customer• For occasional transactions the customer will use high level account. This will
have high security
THE ING CASE STUDY COMPETITON- 2014
Main Account
Low LevelAccount
High LevelAccount
Daily Transactions
OccasionalTransactions
Very Easy and Simple
High Security
THE ING CASE STUDY COMPETITON- 2014 11
The Way Ahead … (Contd.)• Data Mining and Machine Learning• With Mobile number and GPS, track the position of the customer on regular
basis and develop insights from them• Suppose a particular customer regularly goes to a nearby mall for general
shopping and the GPS says that customer is nearby then notify the customer of any ongoing offers in the malls (if any)• This will be an additional and customised service and the bank will profit as
the transaction is likely to be digital (as it will be an unplanned transaction)
Receives On-going Sales
OfferGoes to Mall
THE ING CASE STUDY COMPETITON- 2014 12
The Road Ahead … (Contd.)
• Do routine work of the customer• Tie-up with major telecom companies for paying the bills of the customer
directly without the customer doing it manually – this not only gives extra benefit to the customer but also reduces traffic• Pay School fees directly• DTH Recharge every month
PASTFUTURE
PRESENT DAY ..
THE ING CASE STUDY COMPETITON- 2014 13
The Road Ahead … (Contd.)
• Penetrate into untapped market• Rural market
• Make people aware • Tier II and Tier III cities
• Tie-up with restaurants and give customers a delight factor
Sunday
No free table but bank has provisions
Make your
weekend count
Seminar at tier II and tier III cities
THE ING CASE STUDY COMPETITON- 2014 14
The Road Ahead … (Contd.)
“Cloud Computing may be a black box, but E-locker is easy to use and very safe too”
E-LockerScanSaveSecureStay Connected
Storing documents
online to make it more
accessible 24*7
THE ING CASE STUDY COMPETITON- 2014 15
Conclusion
• Some of the benefits of Digital Banking as compared to Branch Banking are Convenience, 24*7 service and transactions at your click• Currently major transactions take place at bank branches and the
digital transactions have not yet been leveraged to its full advantage• The bigger and unrealized market still remains the rural market which
needs planning and execution like awareness programs about benefits of digital world• The roadmap for future can be to gain trust from the customers with
respect to security and bring innovation like gaining insights from customer behavior, E-Locker, etc.
THE ING CASE STUDY COMPETITON- 2014 16
THANK YOU