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© 2010 Wipro Ltd - Confidential 2
© 2009 Wipro Ltd - Confidential 2 © 2011 Wipro Ltd - Confidential 2
3
1 Changing Trends in the Banking Industry
Survey Findings
2 Survey by Knowledge@Wharton and Wipro
Agenda
4 The Wipro View
© 2010 Wipro Ltd - Confidential 4 © 2011 Wipro Ltd - Confidential 4
Changing trends in the banking industry
Emerging class of customers are becoming
more digitally savvy
Demand on bank branches to move beyond
conventional functions
SMBs beginning to use bank branches for sophisticated
financial advice, support and products
Emergence of business models to cater to increasingly technical
demands of the new brand of digitally savvy customers
© 2010 Wipro Ltd - Confidential 6 © 2011 Wipro Ltd - Confidential 6
Objective and Respondent profile
Knowlegde@Wharton and Wipro conducted in the U.S. and India to
captures the emerging business models for bank branches
Surveyed respondents
India, Europe, Middle
East, Africa,
South/Central
America , other
countries in Asia
766 total
respondents
44%
56%
© 2010 Wipro Ltd - Confidential 8 © 2011 Wipro Ltd - Confidential 8
Survey Findings
Transactions performed in branch: U.S Vs. Ind.
• 75% of Indian respondents
required personal contact with
financial experts as compared to
44% of U.S. respondents
• 62% Indian respondents say they
use a bank branch, while 82% if U.S.
respondents use a bank branch.
Use of Banking Channels: Degree of Comfort
• ATM usage trends among Indian
and U.S. respondents were similar
with 82% and 83% of them using
ATMs respectively
• 89% U.S. respondents used
internet banking whereas the
corresponding % was only 67%
among Indian respondents.
© 2010 Wipro Ltd - Confidential 9 © 2011 Wipro Ltd - Confidential 9
Relevance of Bank Branches
Bank branches expected to remain relevant in the near future.
However, due to increasing networking and inter-connectedness,
customer engagement models will undergo significant transformation
with the rise of digitally savvy customers
Transactions getting digitized (Internet Banking, Mobile Banking)
and are becoming increasingly popular but customers prefer
direct branch contact for important transactions.
With growing importance of digital media, branches will focus on sales
and advisory services and move away from servicing.
Bank branches need to invest in technology up gradation to re-
envision how services are provided.
© 2010 Wipro Ltd - Confidential 10 © 2011 Wipro Ltd - Confidential 10
Touch Points for Digitally Savvy Customers
Information Services
Interactive solutions with touch point screens, Wi-Fi, interactive video kiosks, iPad desks
Account servicing
Self-service or assisted-self-service to reduce service delivery costs
SME Needs and Financial Counseling Integrating sales, CRM, business intelligence and core systems
Smart phones will increase usage of social media for product marketing and campaigns Trend
© 2010 Wipro Ltd - Confidential 11 © 2011 Wipro Ltd - Confidential 11
Customer services – Experiences
43
25
22
9
Idea of floating financial advisors using
iPad-like mobile tools in branch peak
hours
Good
Excellent
Do not care
Bad
• Respondents said they were comfortable
using self-service tools only if they were
user friendly
• Heavy dependency (41% of total
respondents) still depend on bank
branches for customer service
43
25
22
9
Current Branch Experience
Good
Excellent
Do not Care
Bad
• 43% respondents said their branch experience
was good but could be improved. This is
attributed to customer service shortcomings
• This can be improved by better customer
communication, efficiency gains through
process upgrades and training
© 2010 Wipro Ltd - Confidential 13 © 2011 Wipro Ltd - Confidential 13
Wipro’s Service Delivery Model
Transaction Value-
Chain
Transaction Types
Channel
Technology vs. Value
Ideal Service Model
Sales
Low-Complex Originations
High-Complex Originations
New Customers
Branch, Internet Low tech – High Value Assisted Self Service
Advisory
Advice
Financial Planning
Portfolio Management
Branch Low tech – High Value
Assisted
Servicing: Transaction
Based
Customer Servicing
(Products & Accounts
Internet, Branch,
Mobile, Call
center
High tech – Low Value
Self Service
Assisted Self Service
Servicing: Information
Based
Product and Services
Information
Internet, Branch Low tech – Low Value
Self Service
Servicing Resolutions
Complaints
Exceptions
Branch, Call
Centre
Low tech – Low Value
Assisted
© 2010 Wipro Ltd - Confidential 14 © 2011 Wipro Ltd - Confidential 14
Finding the right Service Delivery Model
The sales function at banks lends itself to
delivery at both branches and over the
Internet, with either assisted service or
assisted self-service. These are low-tech
models, but offer high value
Transaction-based services for customer
accounts or financial products could be
rendered through a variety of channels:
branches, call centers, the Internet and
mobile banking
Information about products and services
could be provided at both branches and
over the Internet in self-service models.
This is both low-tech and offers low value
Services such as resolving customer
complaints can be provided at both
branches and through call centers in
assisted-service models
© 2010 Wipro Ltd - Confidential 15 © 2011 Wipro Ltd - Confidential 15
Future steps in Branch Banking – Key Takeaways
“Mobile wallet” popular among low-income group and small-vendor community as it offers facility of
managing micropayments on handsets
Social media will facilitate flagging customer needs quicker than conventional methods
Physical size of banks will shrink to save infrastructure, capital and running expenses
Branches will have more automation and integration by enabling self-service or assisted self-service
Bank branches to focus on revenue generation by cross-selling financial products and integrating business
intelligence with branch-level and customer relationship management (CRM) solutions
Leveraging virtual technology to access pools of SME customers for multiple locations
Data sources to be brought together at the individual level through analytics:
Usage of analytics to better understand needs of digital customers
Customer transaction records can be mined for insights
Identifying right products for customers based on demographic profile and peer group buying behaviour
© 2010 Wipro Ltd - Confidential 16 © 2011 Wipro Ltd - Confidential 16
For more details please visit the link below
http://www.wipro.com/landing-pages/Pages/branchless-banking.aspx
© 2010 Wipro Ltd - Confidential 17 © 2011 Wipro Ltd - Confidential 17
Wipro set up the Council for Industry Research, comprised of domain and
technology experts from the organization, to address the needs of customers.
It specifically surveys innovative strategies that will help customers gain
competitive advantage in the market. The Council, in collaboration with
leading academic institutions and industry bodies, studies market trends to
help equip organizations with insights to facilitate their IT and business
strategies.
For more information on the Research Council visit www.wipro.com/insights
or mail [email protected]
About Wipro Council of Industry Research
© 2010 Wipro Ltd - Confidential 18 © 2011 Wipro Ltd - Confidential 18
Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a
leading Information Technology, Consulting and Outsourcing company, that
delivers solutions to enable its clients do business better. Wipro Technologies
delivers winning business outcomes through its deep industry experience and
a 360 degree view of “Business through Technology” – helping clients create
successful and adaptive businesses. A company recognised globally for its
comprehensive portfolio of services, a practitioner’s approach to delivering
innovation and an organization wide commitment to sustainability, Wipro
Technologies has over120,000 employees and clients across 54 countries.
For more information, please visit www.wipro.com
About Wipro Technologies
© 2011 Wipro Ltd - Confidential
Thank you
© Wipro Limited, 2011. All rights reserved.
For more information visit www.wipro.com
No part of this document may be reproduced in whole or in part without the written permission of the authors.
Wipro is not liable for any business outcome based on the views presented in this document. For specific
implementation clients should take advise from their client engagement manager.