Date post: | 23-Jun-2015 |
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RajeshSIMSREE
Executive Summary Banks were always known for Customer Loyalty over years, but
with recent increase in competition over the online services of banking it has no longer been the same scenario
Advances in Online Banking Network and recent exponential growth in the mobile and smart phones development, banking is now seen in a completely new perspective
Focus is now driven on how to retain a customer along with adding new customer base by providing value added services and being at par with the competitors
The Case Study here analyses the offerings of the ING Vysya Bank in comparison with the other banks in digital banking taking into considerations of the pros and cons related to the digital banking
It focuses on the growth of the industry and how to take this growth forward towards adopting new digital banking technologies keeping in mind the culture and acceptance level of the digital banking products for the Indian consumers
The research for the case study includes primary and secondary research on digital banking in India and conclusions based on the research shows us a road map for the adoption of Digital banking for ING Vysya Bank
AGENDA
Digital Banking Vs Branc
h Banki
ng
SWOT Analy
sis
ING Vysya Bank Produ
cts
Industry
Background
Competitor
s Offerings
Way Forward for Digita
l Banki
ng
Conclusion
WHY CUTOMERS BUY FROM WHERE THEY BUY ????
Digital Bankin
g Vs Branch Bankin
g
SWOT Analys
is
ING Vysya Bank
Products
Industry
Background
Competitors Offerin
gs
Way Forward for
Digital Bankin
g
Conclusion
Digital Banking
Growing at a very fast pace, especially usage of mobile smart
phones gives extreme convenience to access and transact anywhere
anytime
People prefer going online and transact as it saves them time, effort and provides lower cost and faster
transaction
Increase inclination towards digital medium for the population with age
groups 15-40
Branch Banking
People used to the branch banking having lesser acceptance of the digital medium when it comes to
transaction of money due to security concerns or other reasons
People with age group above 40 are less incline to the digital medium and thus branch banking is the preferred
way for them
People in Rural Areas are very less aware on the digital medium and the branch banking is far more reachable
and approachable for them than digital
SWOT – DIGITAL BANKING
Digital Banking
Vs Branch Banking
SWOT Analysi
s
ING Vysya Bank
Products
Industry
Background
Competitors Offerin
gs
Way Forward for
Digital Bankin
g
Conclusion
Strengths• Can be accessed anywhere anytime• Saves a lot of Time• Faster transaction with lower costs• Customer friendly• Provides better convenience and more
efficiency
Weakness• Security concerns over the digital mode• People acceptance level of involving
money via digital mode not favourable• Demographics with age group above 45
less inclined towards digital world• In India rural population and a lot of
people in urban not used to the digital - world
Threats• Better Customer services and advices
provided in bank branching• Any security related issues or news can
pose as threat• Bank branches tapping the people not
using digital medium
Opportunities• Increasing awareness about digital banking
benefits amongst people• High growth been seen in the sector and can be
leveraged by providing value added services• Higher growth in the mobile smart phone users –
a big market• Changing acceptance level for digital medium• Better digital infrastructure aimed at - Digital
India plan by RBI
SWOT – BRANCH BANKING
Digital Banking
Vs Branch Banking
SWOT Analysi
s
ING Vysya Bank
Products
Industry
Background
Competitors Offerin
gs
Way Forward for
Digital Bankin
g
Conclusion
Strengths• Sense of security when it comes to
branch banking• Better catering to the requirements of
the customer when in person• Face to face interaction preferred by
customers• Used to this medium
Weakness• Going all the way to branch – time
consuming• Long queues in Branch• Slower Transaction process• Higher Transaction Costs• Experience wit staff different every
time – Bad experiences too possible• Not open 24*7
Threats• People preference towards digital
banking• High growth in mobile banking• Online banks accessible all the time• ATM increasing in number• Digital banking providing faster and
efficient services
Opportunities• Focus on improved customer service• Make the branch highly efficient in
terms of operations• Take advantage of the face to face to
face interactions with the customer
ING VYSYA – DIGITAL PRESENCE
Digital Banking
Vs Branch Banking
SWOT Analysis
ING Vysya Bank
Products
Industry
Background
Competitors Offerin
gs
Way Forward for
Digital Bankin
g
Conclusion
Fund Transfer
Bill Payments
Open/Close Fixed Deposits
Shop Online Via net Banking
Linking different accounts, demat, investment, credit
cards
Bill payments
Funds Transfer
Save Cheque
Shopping
ATM Locator
Transfer Funds between your ING accounts
Do RTGS/NEFT Transactions with higher daily limits
Do Future dated transactions
Set up transaction flows - Maker/Approver/View Only
Create Fixed Deposits Online
Partially/Completely break Fixed Deposits
Request for a Demand Draft / Pay Order
Internet Banking
Mobile Banking
Business Net-Banking
DIGITAL BANKING GROWING
Digital Banking
Vs Branch Banking
SWOT Analysis
ING Vysya Bank
Products
Industry
Background
Competitors Offerin
gs
Way Forward for
Digital Bankin
g
Conclusion
Tren
ds I
n M
ob
ile
Ban
kin
g
Trends in Payments
ING VYSYA PERFORMANCE
Year Gross Earnings
(Cr.)
Net Profits (Cr.)
No. of Branches
2009-10 2853.11 242.22 482
2010-11 3349.02 318.65 511
2011-12 4526.56 456.30 531
2012-13 5588.46 612.96 546
2013-14 6072.34 657.85 557
Digital Banking
Vs Branch Banking
SWOT Analysis
ING Vysya Bank
Products
Industry
Background
Competitors Offerin
gs
Way Forward for
Digital Bankin
g
Conclusion
Rolled out ING Mobile
Core Banking Transformation & Data Center Modernization Implemented
Mastercard’s best E-Commerce program- industry 1st OTAC security model
Prestigious CIO 100 award implementing risk-based authentication solution
Tech Target’s Top 10 Business Intelligence ImplementationsElectronic Bank Realization Certificates (e-BRC)TDS certificates are made available on internet banking platformCTS (Cheque truncation system) grid for Mumbai
COMPETITORS OFFERINGSICICI BANK
• E-Locker• My Money
• Pockets• Mobile
Money• Call to Pay
AXIS Bank• Apply for IPO
online• Stop Cheque
Payments• Mail Facility• Net Secure System• Personalization
Features Via Mobile• CMS Power Cheque
Yes Bank• Money Monitor
• YES Pay Now• Insta Account
opening• Yes Bank Money• Capital Market &
Escrow Account Services
HDFC Bank• Credit Card Auto
Pay – Via Mobile• Mutual Fund
Operations• VISA Money
Transfer – Via Mobile
• Cash On Call• Dial an EMI
ICICI BANK
• E-Locker• My Money
• Pockets• Mobile Money
• Call to Pay
AXIS Bank
• Apply for IPO online• Stop Cheque Payments• Mail Facility• Net Secure System• Personalization Features Via Mobile• CMS Power Cheque
WAY FORWARD – DIGITAL BANKING
Card-less ATM transfers and withdrawals
Omni-Channel Customer Experience
Multi Channel On boarding
ROAD MAP– DIGITAL BANKING
New Customer ExperienceEffective Operating Model
Digital Banking
Vs Branch Banking
SWOT Analysis
ING Vysya Bank
Products
Industry
Background
Competitors
Offerings
Way Forward for
Digital Bankin
g
Conclusion
Transparency & Fair price
High quality interaction
Fast & Secure Processing
Variety of Products & Services
Enhanced Revenue model
Integrated Digital Infrastructure
Streamlined governance & agile culture
Lean Channel & Organization Structures
Outside World Inside Organization
Deliver the existing services with continuous improvement to retain customer loyalty
Increase Investment and expenditure on the Mobile and online features providing value added services
High Focus on the services already been provided by the competitors and quick adoption of these services with
various value adds
Research & development on the new services that can give an edge above others
Creating Awareness about the Digital Banking and its benefits to the rural area people and also training
campaigns for their understanding
Increasing the reach via advertisements and sales activities and also using the mobile platform for effective
promotion
Tie ups with telecom and IT companies to provide end to end customized advisory and transactional services
ANALYSIS, FINDINGS &CONCLUSIONS
Digital Banking
Vs Branch Banking
SWOT Analysis
ING Vysya Bank
Products
Industry
Background
Competitors
Offerings
Way Forward for
Digital Bankin
g
Conclusion
2%
8%
60%
3%
27% atmcustomer careinternet - web browsersmart phone appvisiting near branch
depo
sit -
mon
ey
fund
tran
sfer
open
eing
fd
appl
ying
for l
oan
wealth
man
gem
ent
0102030405060708090
Bank BranchDigital Banking
Medium of Accessing Bank Information
•Preference for Bank Branch for almost all services
Annual Income: < 2l
•Except for applying loans, all other services being preferred in digital medium
Annual Income: 2-5
•Fund transfer and opening FD being preferred for digital
Annual Income: 5-8
•Except Fund Transfer all services preferred in branch
Annual Income: 8-15
•All services preferred in branch
Annual Income: > 15
ANALYSIS, FINDINGS &CONCLUSIONS
Digital Banking
Vs Branch Banking
SWOT Analysis
ING Vysya Bank
Products
Industry
Background
Competitors
Offerings
Way Forward for
Digital Bankin
g
Conclusion
The people from age group of 20-39 years are actively using digital medium As the salary and age in this group(20-39) increase there are concerns
regarding the security of the digital banking The key targets or opportunities for the banks is to focus on the people of
above 40 years age Knowledge of the system and seminars to impart the use of digital banking
is required in this age group Also majority of the small entrepreneurs prefer the bank branching rather
than the digital mode of banking Preference for funds transfer in digital mode has been very high but for
other services people still prefer bank branching Focus for ING Vysya should be on tapping the people from the rural area
and the people of age more than 40 years by keeping knowledge sessions or some other innovative solutions
ING Vysya needs to be on par with the other competitors for the existing digital customers
Expenditure on R&D should be kept in mind seeing the digital infrastructure of India, as although innovative technological solutions will add on to the customer base of ING Vysya, but can prove to be additional cost if conditions and demand not favored