World Class Practices

at Banks

Presented by Akshay Jain (2013004)

Abhishek Jain (2013002)1

World-class service: Definition, promotion

and measurement

• Concept of World-Class Service (WCS) has been discussed

in all aspects of business since the mid-1980s

• Yet there seems no real consensus on what it actually means.

• Some claim

“world-class service organizations 'wow' their customers by

providing a consistently outstanding customer experience in all

channels”.

2

Customer Service

• It separates good companies from the best ones. And in times of turbo-speed, full transparency, and highly demanding customers it´s more important than ever!

• If you provide great customer service, you´ll receive great rewards in the form of loyal customers who will even bring their friends with them.

• Or as expressed by Doug Warner from the opposite perspective: "In the world of Internet Customer Service, it´s important to remember your competitor is only one mouse click away.”

3

How to create and maintain an exceptional

customer service culture

• Offer a Good and Reliable Product/Service

• Put Customer-Focused Thinking at the Centre of Everything

• Worship Your Customer

• Top Management Commitment and Engagement

• Act As Quickly And As Reliable As Possible

• Use Leading Technology

• Leverage Excellent Customer Service

4

INTRODUCTION OF BANKING

Definition Of Bank:

• Banking Means "Accepting Deposits for the purpose of

lending or Investment of deposits of money from the

public, repayable on demand or otherwise and withdraw

by cheque, draft or otherwise.“

-Banking Companies (Regulation) Act,1949

5

HISTORY OF BANKS IN INDIA

• Banking in India originated in the last decades of the 18th century

• The first banks were THE GENERAL BANK OF INDIA, which

started in 1786

• The oldest bank in existence in India is the STATE BANK OF INDIA,

which originated as the BANK OF CALCUTTA in June 1806

• The first fully Indian owned bank was the ALLAHABAD BANK,

established in 1865

• The banking industry has grown at a compounded annual rate of over

51 per cent since April 2001

• Industry life cycle – Growing stage

6

Evolution of Banking

Pre-Independence Post-Independence

Owdh Commercial Bank(1881)

Punjab National Bank (1895)

The Bank of India (1906), Bank of

Baroda Ltd (1908), Central Bank of

India Ltd (1911)

Reserve Bank of India (1935)

Nationalization of Banks

Imperial Bank of India brought

under public ownership (1955)

Formation of State Bank Group

(1955-59)

Emergence of New Private Sector

Banks (1993)

7

77%

17%6%

Banks Market Structure In India

Public Banks

Private Banks

Foreign Banks

8

BANKING STRUCTURE IN INDIA

• COMMERCIAL BANKS: Scheduled Commercial Banks Non- scheduled Banks

• CO-OPERATIVE BANKS: Short term lending oriented Co-operative Banks Long term lending oriented Co-operative Banks

• INDIGENOUS BANKERS: Those whose main business is banking Those who combine their banking business with trading activities and Those who act as commission agents. (For them the banking business

is a side business).

9

RECENT TRENDS IN BANKING

• Electronic Payment Services – E- Cheques

• Real Time Gross Settlement (RTGS)

• Electronic Funds Transfer (EFT)

• Electronic Clearing Service (ECS)

• Automatic Teller Machine (ATM)

• Point of Sale Terminal

• Tele Banking

10

MAJOR CHALLENGES & OPPORTUNITIES

TO INDIAN BANKS

Banking industry’s opportunities includes:

• A growing economy,

• Banking deregulation,

• Increased client borrowing,

• An increase in the number of banks,

• An increase in the money supply,

• Low government-set credit rates and

• Larger customer checking account balances.

Major challenges faced by banks:

• High transaction costs

• IT revolution

• Timely technological up gradation

• Intense Competition

• Privacy and Safety

• Global banking

• Financial inclusion

11

INNOVATIVE BANKING CUSTOMER

SERVICE INTERNATIONALLY• BayBanks of Massachusetts is using the mail-order company. A major

result of this functional benchmarking was the establishment of a 24-hour

customer service center that can not only respond to queries and

complaints but also promote and sell the bank's products and services.

• Seafirst Bank in Seattle redefined itself from a "retail bank" to a

"retailer" and has benchmarked with retailers known for world class

customer service such as fast-food restaurant chains.

• Citicorp looks as itself as less of a bank and more of a "factory". This

factory processes raw materials in the form of documents, application

forms, and customer requests and the final product is a satisfied customer.

Desks, departments, offices, and other work stations serve as the machines

and equipment of this document factory. 12

Many more Examples

• Banco Frances has established an information center or "encyclopaedia" in

the waiting lounge.

• ASB Bank Limited has established a phone center to accept, process, and

resolve customer complaints.

• Bank Pertanian Malaysia (BPM) has extended the concept of "mobile

banking."

• The Korean Technology Banking Corporation (KTB) is setting up a

Technology Financing Information Centre to serve the various needs of its

clients, most of which are setting up joint-ventures overseas.

13

14

ABOUT ICICI BANK

• Industrial Credit and Investment Corporation of India

• Founded in 1955 by as a joint-venture of the World Bank

• ICICI Bank launched internet banking operations in 1998.

• In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange.

• ICICI Bank is India's second-largest bank.

15

PROFILE OF ICICI BANK

• Type : Public

• Founded : 1995

• Headquarter: Mumbai, Maharashtra, India

• Industry : Banking, Financial service

• Net revenue: US$ 13.812 billion (2011)

• Net Profit : US$ 1.366 billion (2011)

• Employees : 79,978 (2011

• Website : www.icicibank.com

16

BOARD OF DIRECTORS

• Chairmen : K.V.Kamath

• CEO : Chanda Kochhar

• Executive Director : N. S. Kannan

• Vice president : Mr. Vishvesh G. Bhaga

• General manager : Ms. Shilpa Kumar

17

NETWORK OF ICICI

• It has 8003 ATMs in the country

• The Bank has a network of 2752 branches in India.

• It has a presence in 19 countries , including India.

• Traded as BSE, NSE, NYSE and BSE SENSEX

18

Products

• Commercial Banking

• Project Finance

• Global Markets

• Investment Banking

• Financial Institutions Capital Markets and

Custodial Services

• Technology Finance

19

Innovation

• Internet Banking

• Mobile Banking– iMobile

– SMS Banking

– m.icicibank.com

– Mobile Money

– Call to Pay

– IMPS

• Pockets by ICICI Bank– QUICK PAY

– SEND MONEY TO FRIENDS

– PREPAID MOBILE RECHARGE

– BOOK MOVIE TICKETS FOR

YOUR WHOLE GANG

– TRANSACT, KEEP TRACK OF

YOUR ACCOUNT AND DO A LOT

MORE!

– BEING SOCIAL IS MORE FUN

NOW THAT WE HAVE POCKETS

BY ICICI BANK!

20

21

Bank Of Baroda

• Third largest Public Sector bank in India,

• After State Bank of India and Punjab National Bank

• Founded in 1908

• Headquartered at Baroda

• It has total of 3159 branches including 70 overseas

• Has a total staff of 38063

• CMD of BOB is M.D.Mallaya

22

Mission Statement

• To be a top ranking National Bank of International Standards

committed to augmenting stake holders' value through

concern, care and competence.

Our Logo

• Our new logo is a unique representation of a universal

symbol. It comprises dual ‘B’ letterforms that hold the rays

of the rising sun. We call this the Baroda Sun.

23

History of BOB

• 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB).

• 1910: established its first branch in Ahmedabad

• 1953: established a branch in Mombasa and another in Kampala

• 1959: acquired Hind Bank.

• 1961: merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra

• 1963: acquired Surat Banking Corporation in Surat, Gujarat.

• 1964: acquired two banks, Umbergaon People’s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.

• 1969: The Government of India nationalized 14 top banks, including BOB

24

History contd.

• 1975: BOB acquired the majority shareholding and management

control of Bareilly Corporation Bank (est. 1928) and Nainital

Bank (est. in 1954), both in Uttar Pradesh

• 1998:BOB also acquired Punjab Cooperative Bank in a rescue.

• 1999: BOB merged in Bareilly Corporation Bank in another rescue.

At the time, Bareilly had 64 branches, including four in Delhi.

• 2007: In its centenary year, BOB's total business crossed 2.09 lakh

crores, its branches crossed 1000, and its global customer base 29

million people.

• 2009: Bank of Baroda registered with the Reserve Bank of New

Zealand, enabling it to trade as a bank in New Zealand

25

Services

• Apart from the Loans, Deposits, Credit and Debit Cards, Bank

of Baroda offers other services to make financial dealings

easy and convenient.

• Demat

• Baroda health

• Remittances(baroda money express)

• Collection services

• ECS(electronic clearing services)

• Government business(PPF , tax collection and savings bonds)

26

The Initiative

• Bank is amongst first in the industry to complete an all-

inclusive rebranding exercise wherein various novel customer

centric initiatives were undertaken along with the change of

logo.

• The initiatives include setting up of specialized NRI Branches,

Gen-Next Branches and Retail Loan Factories/ SME Loan

Factories with an assembly line approach of processing loans

for speedy disbursal of loans.

27

Business Process Reengineering (BPR)

• Bank had initiated a major Business Process Reengineering to

give a big boost to sales growth by enhancing customer

satisfaction and by making possible alternate channel

migration thus reinventing itself to challenges of the 21st

century.

• Bank’s BPR project known as “Project- Navnirmaan” has

altogether 18 activities covering both the BPR and

organisational restructuring, aimed at transforming the Bank’s

branches into modern “sales & service” outlets.

28

The most important initiatives planned under this project include –

• Conversion of all metro and urban branches into modern centres

known as Baroda Next branches;

• Creation of Automated and Leaner Back Offices like City Back

Office (for automated cheque processing etc.),

• Regional Back Office (for faster account opening etc.),

• Establishment of two Call Centres,

• Creation of Academy of Excellence,

• Introduction of Frontline Automation at select branches for

customer convenience and

• Organizational Restructuring.29

People Initiatives

• Bank is endowed with a competent and motivated

employee base

• Strategic HR interventions gave the Bank competitive

advantage.

• Bank launched a comprehensive leadership

development program ‘Project UDAAN’ during

2010-11 with the prime objective of creating leaders

for the future.

30

New Technology Platform

• Bank has made substantial progress in its end-to-end business and IT strategy project covering the Bank’s domestic, overseas and subsidiary operations.

• Bank has been providing to its customers Internet Banking

• Bank has a wide network of ATMs across the country and has also launched mobile ATMs in select cities.

• Bank has implemented the Global Treasury Solution in its key territories like UK, UAE, Bahamas, Bahrain, Hong Kong, Singapore and Belgium.

• Various technological initiatives in overseas operations such as implementation of Centralized SWIFT activity

31

The Future

• Bank has achieved substantial progress in technology

and is continuously integrating multiple platforms of

technology to generate synergies.

• Bank continuously attempts to adapt to the dynamic

economic environment while engaging in long term

relationships to provide superior customer service.

32

33

History

• 1812 - founded as City Bank of New York.

• 1894 - became the largest bank in the United States.

• 1902 - began expanding internationally and became the first major U.S. bank to establish a foreign department.

• 1930 - became the largest bank in the world with 100 branches in 23 countries outside the United States.

• 1976 - changed its name to Citibank.

• 1981 - purchased Diners Club.

• 1994 - opening of the first fully foreign owned commercial bank in Russia

• 1995 - opening of the first full service branch in China

• 1998 - Citibank was merged into Citigroup

34

Citibank

• Citibank is the consumer and corporate banking division of

leading financial services company Citigroup.

• The company has operations in around 1,700 locations, in more

than 140 countries worldwide.

• Citibank offers the following products and services:

– Banking services

– Credit cards

– Mortgages, Loans

– Investments

– Insurance

– Small business services

– Corporate/Institutional services

– Asset management

– Government services

– Private banking

35

Leadership through Innovation

• 1985: First bank to launch a dedicated platform focused on

serving the unique banking and wealth management needs of the

Non Resident Indian.

• 1986: Pioneered Cash Management.

• 1993/1998/2001: First to OFFER 24-hour Phone

banking/Internet banking/SMS alerts.

• 2009: First to bring to India next-generation contactless

Credit Card payments based on Near Field Communications

technology with Citi Tap and Pay.

• 2010: First brokerage house to launch Financial Information

Exchange (FIX) protocol, the industry-driven international

messaging standard, adopted by NSE.

36

Leadership through Innovation

• 2012: First to roll out SMS-to-Call and Click-to-Call; instantly

connecting customers to Citibank officers.

• 2012: Launch of India's first airline agnostic card through Citi

Premier Miles.

• 2012: First Smart Banking Branch launch in India.

• 2012: Launch of market-first mobile-banking receivables

solution Citi Mobile Collect.

• 2013: Launch of the First Fully Integrated and

Certified Mobile Payment Solution.

• 2013: Instant Credit Card issuance at Mumbai's first mall-based

smart-banking branch at Palladium, Lower Parel, Mumbai.

37

Learning

• The use of best practices, when incorporated within all areas of

an organisation, including its stakeholder relationships, can lead

to an organisation attaining world class performance.

• The fastest and easiest way to improve is to compare and learn

from other successful organisations (for example, through using a

benchmarking approach).

• The potential improvements to be gained from adapting and

incorporating proven high performance practices in your

organisation can be anything from small continuous steps of

improvement, to radical breakthroughs that result in significant

positive change.38

39