Nov 2015
Digital Strategy
JM Financial India Conference
Multiple Players – searching for spaces to occupy (aggregators,
banks, payment banks). First mover advantage.
Recognition that Digitization can both enhance and replace
delivery models
2
Emerging Digital Scenario in Financial Services
Digital Noise
How to measure digital success
Threat from Payment Banks
Compete or Collaborate
The future of wallets and App Fatigue
Will branches disappear or reconfigure
How not to lose the “eyeballs” of customers
3
FAQs around Digital Banking
Focus on “digital” channels as core across lifecycle and not as alternate
Technology focused on “finding”, “serving” and “engaging” customers
Creating different “dining experiences” from one kitchen menu
Convenience does not imply faceless banking; human connect remains
critical
Partnerships will provide the “context” or “application” for frictionless
banking
Strategy must generate productivity, profitability and efficiency
4
Our Take: Management Beliefs - Digital
Digital Strategy more important than Technology
5
Technology is not an advantage per se:
Available off the shelf unless the technology is highly proprietary
Limited lag time of 3 - 6 months between competitive actions
Our transactions already use technology comprehensively - 85% of
transactions electronic (Range: 80%-90% for top private sector banks)
However an integrated Digital Strategy can extract significant value via:
1. Innovation as Service Differentiator
2. Transformation to Online Offerings
3. Partnering with the Digital Ecosystem
4. Evolution to Online and Digital Channels
5. Improved Decision Making & Analytics
6. Operating Efficiency in Front & Back Office
6
Innovation as a Service Differentiator
Video Branch
Choose denomination at the ATM
Account Number of Choice Instantly redeem credit card reward points
Cheque images on account statement Mobile transfers with cardless
access at our ATM
1
Transformation to Online Offerings
7
Assets
Personal Loans New and Pre Approved
Credit Cards New and Pre Approved
Car Loan LAP Gold
Liability
New Savings Account
A/c Upgrades Card Upgrades RD FD
Investments ,
Payments.
Health Insurance
Life Insurance Mutual Funds
Lockers Others
Tax Filling Assistance
In Progress
We are now ready to offer a comprehensive product suite to our customers through the Digital Channels
Travel Booking Bill Payments
FOREX
Launched
PMSBY/PMJJBY
Funds Transfer Abroad
New
2
Online Financial Aggregators
E Marketplaces
Fin Tech companies – Wallet powering
BIN Sponsors for Merchant
Aggregators
Loyalty Programmes and
Campaigns
Payment Network Providers
Turn Key Technology Solutions
Business Correspondent
8
Partnering with the Digital Ecosystem 3
Social Networking Portals
Tech Partnerships
Evolution to Online & Digital Channels
9
Aggregators
Marketplace Partnerships
Efficient Use of Own Channels
ATM
Personali
zation
Website/
Indusnet
Mobile
App
Snapdeal – 2 Wheeler Sale
Car Dekho – Website Content Solution
Social Banking: Facebook & Twitter
Digital
Branch
4
10
Improved decision making and analytics
Progenie Mobility Solution
Tab based sales generation deployed in
~1,400 locations. Only images and data flow.
Multi party linkages e.g. CIBIL & field
verification. Credit Decisioning for 2W < 2
hours. Leadership in 2W !
5
11
Operating Efficiency in Front & Back Office
Front Office Examples
Alternate channels: Virtual & Tele RMs
360 degree customer view Analyzed pricing Context specific product offers Customer Relationship
Management Corporate Banking portal and
Mobility solutions Digital vertical with digital business
heads Direct Connect to Call Centre
Back Office Examples
Collections via hand held devices Parallel processing at Mumbai and
Chennai hubs to free up capacity Continuous improvement: 100’s of
projects via “just-do-it” initiatives Usage of cloud based solutions to
host applications and provide low cost access in remote locations
Fraud and AML alerts on in flight transactions
Solution Delivery Team Employee certification programmes API based integration
6
Thank You