Date post: | 22-Apr-2015 |
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Business |
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Honey ShahNMIMS Mumbai
DIGITAL BANKING VS BRANCH BANKINGHunt for the Lions – The ING Way
INTRODUCTION Branch Banking is the traditional banking system where the customers has
to go to branches to avail the financial services offered by banks
Digital Banking is the term used to refer E-banking including social, mobile and online banking methods
New channel integration technologies, security, enabling a more seamless end-to-end experience for customers
PROBLEMS No ease access to the consumers to manage the finances
No centralized management to manage and take decisions
No mechanism to monitor and keep track of information with ease
Difficult to reach branch for small information or transaction
Dissatisfaction among the consumer as no standardized and quick information
BUSINESS OPPORTUNITY 82% of the consumers prefer digital banking as compare to 68% of the
Branch banking
43% development is in the digitized banking
Increasing Customer satisfaction as they could do transaction anytime & anywhere
Online financial service account for 3607 crores in 2013 among which 29% insurance related activities
Digital banking start-up focuses on financial management tools and reported 60 percent growth in accounts over a three-month period.
Manage costs by diverting customers to a digital experience, away from higher-cost physical channels
SOLUTIONS Centralized system to manage services and take decisions
Better opportunity for the consumers to avail services
Single, easy and uniform platform for information and financial services
Kiosk to be proposed for availing the services anytime / anywhere to avail services like cash transaction, account opening etc.
Target demographics with increased digital adoption
Build an online reputation and be perceived as innovative
SWOT ANALYSIS
1. High cost of service2. Continual wants of customers wants and needs3. Hostile feelings of employees due to possible pending layoffs due to automation4. Multiple option for the customers5. Initial investment in technology will be expensive
1. The ability to have a larger customer base2. Global expansion-This is an enormous market which will be a great opportunity in the future3. The ability to take advantage of the growing opportunity of internet banking
1. Continual changing technology2. Uncertainty of the banking industry3. Competition from the lower price operation4. Possible failure of product due to non-acceptance of customers
SWOT
85% population below 30 years, which are tech-savvy improving the population demand potential for e- banking
As many as 7% of account holders in the country are using the Internet for banking transactions, while branch banking has fallen by a full 15 percentage points, according to a report by global management consultancy McKinsey & Company
69% of customers already use the Internet to buy financial products
MARKET OVERVIEW As per Neilsen
Research, Internet banking is increasing while branch banking usage is decreasing
Multiple channels to connect with bank will increasingly important to have a 360-degree view of customer device touch points and to optimum customer experience
BUSINESS MODEL CANVASKey Partners
● Investment partners● Technology vendors● Regulatory Agencies
Value Proposition
● Low-cost transactional banking● Peer-to-Peer payments● Budgeting● Easy access to consumer finance● 0% financing● E-commerce● B2B Exchange
Key Activities
● Platform Development● IT Operations:
Set-up and Maintenance of system
● Role based Configuration● Collaboration with Partners●Home Financial Planner
Customer Relationships
● High degree of automated services● Personalized telephone services● ATM kiosk and Mobile application
Key Resources
● IT Infrastructure:FacilitiesDatabaseHardwareSoftwareServers
● Human:Web and Application developmentManagement
Customer Segments
● Retail banking consumers● SMEs
BUSINESS MODEL CANVASChannels
● Internet site● Ad words, AdSense, SEO etc.● Telephone banking● Mobile Application
Revenue Streams
● Transaction fee● Interest income● Cross-selling JV Partners● Other financial products
● Data Center Operations Cost:
Maintenance CostServer Management CostDatabase Management CostFacility Handling Cost
● R&D Cost:Platform Development Cost
● Marketing & Sales Cost
● General & Administrative Cost:Support StaffsEmployeesTrainingManagement
● All fixed costs
Cost Structure
OPERATING MODEL – DIGITAL BANKING Digital Strategy—a road map with
defined business objectives
Banks and insurers need to understand the youth’s online expectations and behaviors to engage them within a short attention span
Overcoming adoption barriers with easy-to-use functionality will be of primary importance in targeting the nation’s older age groups
RATE OF DIGITAL ADOPTION VS TYPE OF DIGITAL ACTIVITY
STATISTICS
Yes No0%
10%
20%
30%
40%
50%
60%
70%65%
35%
Users of E-banking
Users of E-banking
SBI ICICI HDFC ING Vysya
Other Banks
0%
5%
10%
15%
20%
25%
30%
35%
40%
30%
20%
10%
5%
35%
No of Users of Bank
No of Users of Bank
Yes No0%
10%
20%
30%
40%
50%
60%
70%60%
40%
Online Bill payment service
Online Bill payment service
STATISTICS
Yes No0%
10%
20%
30%
40%
50%
60%
70%
80%70%
30%
Users of Online Shopping
Users of Online Shopping
Yes No0%
10%
20%
30%
40%
50%
60%
70%
35%
65%
Users of Online Fund Transfer
Users of Online Fund Trans...
Yes No0%
10%
20%
30%
40%
50%
60%
70% 65%
35%
Satisfied Customers from E-Banking
Satisfied Customers from E-Bank...
REFERENCES Site References:-
www.ingvysyabank.com/ https://in.linkedin.com/company/ing-vysya-bank http://www.soppnox.com/blog/indians-buy-online-shop/ http://
www.nielsen.com/us/en/insights/news/2014/the-evolution-of-modern-banking.html
http://www.nielsen.com/us/en/insights/news/2014/a-look-at-connected-banking-consumers.html
http://www.business-standard.com/article/finance/7-account-holders-in-india-use-net-banking-study-111072000193_1.html
http://www.banking2020.com/2011/11/03/consumers-are-increasingly-using-multiple-devices-to-support-banking-needs/#.VCQSxxbSK-M
THANK YOU