Digital Banking

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Digital BankingOpportunity for Extraordinary Gainsin Reach, Service, and Productivityin the Next 5 Years

August 22nd, 2015 Submitted by: Group !"ay #inda$ %&P'(()* !nshu$ +erma %&P'((55 &ahesh umar %&P'((*-+ipin umar #ain %&P'((..


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Digital vs digitization-15sept14.pptx

Digital Opportunity

Engage customers on digital channels for higher engagement / sales Not just lower cost

Digitize various processes to improve efficiency

Sales

Back officeCredit collections / monitoring

Administrati e functions

Create propositions to attract the digitally savvy fast gro!ing segment

"or# together to create systemic efficiency $eg. Eradicate cash%

1


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Challenges Faced by Indian Banks

&ndia is a huge population country !ith closer channel integration'et!een rural and ur'an populace.

(nother challenge is non- 'ranch channels thro! up is the lac# ofhuman touch.

1

)andling huge no. of complaints and ma#ing technology tailored tothe needs of different sections of people.

*argets to meet +(,E -&&& orms 'y arch 0 12.

)igher 3rovisioning orms due to tougher rules set 'y +&.

)igher ,taff etirements in 3,+ 'y 0 12. )igher 3( s due to economic do!nturn.


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CASA growth = Transaction growth,avings 'alance vs. transactions per account across 'an#s $67 14%

Balance100,000

/ acti e account

!0,000

"0,000

#0,000

20,000

0

0 10 20 $0 #0 50 "0

%otal transactions / acti e account2


5/32Digital vs digitization-15sept14.pptx

Digital transactions will dominate in years

*ransaction profile of &ndian +an#s

8ro!thC(8

&igital

4 -5 9 A%'/C&'

%raditional

()1#

() 20*+

() 20*++

$

5$-

#0-

1!-



!merging paradigms

Current 3aradigm Emerging 3aradigm

Deposits 'usiness : Paymentsdeposit

servicefollows

offer payments for free

#



Small business claim banks are disinterested.

5

of digital c annels used

1 -

#

11 -

$

0 -

2

1

0

Ne er / &on t remem3er 4nce 'an times

. of times digital c annel was e67lained



"hy is digital adoption low#

*oo 'usy opening accounts

Cum'ersome on-'oarding process

;rganizational o!nership of digital channels not prominent

Digital channel designed for transactions not for engagement / sales

Disproportionate attention on retail $,+% at the cost of , E $C(%

!



Customer ac$uisition producti%ity is stagnant

um'er of savings 'an# accounts opened per metro andur'an 'ranch

8S9*:arge

8S9*'ediu

m

8ri ate *4ld 8ri ate*New

() 12;1$ () 1$;1#

" 5"!!"01,052

$$

1,5 #

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Digiti&ation o' sales is huge opportunity

&mpact

3roductivity *(* 6irst *ime ight$6* %

*raveltime

1



Could public sector leap 'rog to a digital back end#

+ac# office 6*E as percentage of total 6*E $67 14%

1$



()*+), o%er sta''ing in administrati%e 'unctionsDigital toolsfor efficiency(dmin staff / *otal 'an# 6*E $67 14%

- of total 3ank (%> 1#e

lationship 9anagement :C>9; Tool to capture businessleads and allocation o' leads to the sales agents 'orcon%er* sion1

Cross*selling and 7p*selling throughthe smart de%ices1

>emote ad%isory1 Sub?ect 9atter !@ perts :S9!s; o' the Bank and also o' our Subsidiariesare a%ailable through %ideo 'or 'inancial counselling1

!%ent areas to conduct e%ents o' inter*est to the T86 with marketing o' Bank s

products in 'ocus1

DBOs6 since they are in Shopping 9alls and 5igh Street locations to attract the T8 to our books6 'unc*tion 'rom () A9 to () /919any more products4'eatures will be introduced in due course and rollout to co%er more geographical areais being planned1

The 'BI (o%ernor) &r* 'aghura$ 'a+an) %isited SBI INTO C! outlet at ,hoeni- Mar.et City in Mu$/ai


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Technological Initiati%es launched by /SB0s

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State Bank o' India has always been at the 'ore'ront in adopting inter*acti%e and incenti%i&ing ways to moti%ate customers and engage with them1 The latest initiati%e 'romthe Bank comes to users in the 'orm o' a mobile smart phone application1 The application StateBank Any* where :'ormerly known as State Bank Freedom /lus; was launched on( th 9arch6 +)( :'or Android; and th 9ay6 +)( :'or IOS; 'ollowed by Blackberry1

State Bank Anywhere isthe most e''icient6 e''ecti%e6 easy to use6secure retail internet smart phone applica*tion 'or banking that makes banking easierthan e%er1State Bank Anywhere hasrecei%ed an o%erwhelming response 'romusers and it continues to grow in popular*

ity day a'ter day1 The below numbers pro%ide a clear testi*

Features: Account in'o and 9ini State*

ment9*/assbook* an electronic %er* sion o' a

passbook a%ailable on a smart phoneFund Trans'er to accounts inSBI and other BanksCredit Card : ISA; Trans'er

mony o' its acceptanceamong our users

Bank is continually engagingwith users through Social9edia :Facebook6 Twitter6

3ouTube etc1;own websites6 thisapplication

and Bank sto promote andincrease

Instant TermTD>4e*STD>Deposits

Deposits E e*and >ecurring

its adoption1 To reach a wider audience segment6 hindi %ersion o' State Bank Anywhere in the name has also been

launched1 Bill /ay 'or billers6 already

registeredAT9 cum Debit Card hot list* ingChe$ue Book >e$uest9obile Top up6 DT5 >echarge

Appro . nu!ber of "tate #an$ An%&here 'o&nloads (co!bininoo le* iO" and #lac$+ berr%)

,-., lacs

A era e User ratin (out of /) 0.1

STATE BANK ANYWHERE


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2 citin offers

Currently a Cash Back scheme is currently in e''ect 'rom April st +)( to G) th Sept6 +)( to incenti%i&e users using State Bank Anywhere 'or per'orming transactions throughthe application1 Download today 'rom 8oogle /lay4iOS App store or Blackberry "orld and e@perience

banking on your 'ingertips1

What is m-Passbook

m*/assbook is an electronic replication o' our physical passbook1 All transactions get synced into the passbook1 New Features in ne-t release of m- Passbook

Support 'or O''line %iewing

Search 'acility with amount6 date etc1

To be made a%ailable in i*OS1

A%ailability in 5indi1

STATE BANK ANYWHERE


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Digital vs digitization-15sept14.pptx 1

&o! to earn 'e!ard oints (


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()he Enterprise- wi e 2oyalty program rewar s youfor various transactions across many bankingservices.Debit 'arInternet Banking&obile Banking

(ersonal Banking2oansDemat +ccount!ural Banking

S&E +ccounts

1

State Bank !ewar 4 is the Enterprise - wi e2oyalty (rogram for all State Bank customers thatawar s them with !ewar (oints for varioustransactions across many banking services.

)here to use 'e!ard oints (


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Digital vs digitization-15sept14.pptx 1

) (*ou can redeem $our 'e!ard oints to get+',, gifts- merchandise and services on

!!!.StateBank'e!ard/.com or on the StateBank 'e!ard/ mo%ile app.

)his platform of =!EE gifts, merchan ise an

services inclu es* &obile$D) !echarge+irline ticketsBus tickets

&ovie ticketsEntertainment pro ucts, Electronic items=amily, ome, =ashion 5 Beauty pro uctsSports pro ucts


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At first people refuse

thin can be done*

to belie e that a stran e ne&

...and then the% hope it can be done*

...then the% see it can be done*

...then it3s done and all&as not done before.

the &orld &onders &h% it

F H Burnett

1

Date post:	09-Mar-2016
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