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Service Blueprint
Banking SectorSubmitted By Group 12:
Anish Shah041
Vinit Gandhi111Dhwani Shah139
Raj Sodha- 151
Bhavik Solani - 152
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Introduction to Banking in India
O The banking sector in India has been widening its scope
due to liberalization. Banks today are not mere suppliers
of money.
O
Banks have diversified into many other services likecredit card, insurance, mutual funds.
O Services provided are very money oriented hence very
high on involvement.
O
Consistent and reliable services are important to gaintrust from the customers.
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Banking Structure
Reserve Bank of India
Commercial Banks Co-operative Banks Development Banks
Nationalized Private Short-term credit Long-term credit
Agricultural Credit UrbanCredit
EXIM Industrial Agricultural
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Services offered by HDFC
BankO Personal Banking
O Accounts & Deposits
O Loans
O Cards
O Forex
O Insurance
O NRI Banking
O Remittances
O
Investments & insurance pay loan schemesO Wholesale Banking
O Corporate
O SMEs
O Government sector
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SWOT Analysis of HDFC
StrengthsSecond largest privateplayer
Extremely low attrition rate
Good financial advisors
WeaknessWeak presence in ruralareas
Lacks aggressivemarketing
Fluctuating share prices
OpportunitiesGreater scope foracquisitions & strategicalliances
Good opportunities abroadBetter asset qualitymeasures , profits likely toincrease
ThreatsNon banking financialcompanies and new agebanks are increasing
HDFC is not able toexpand its market shareas ICICI imposes majorthreat
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Product Levels
BENEFITWITH RESPECT TO THE BANKING INDUSTRY
1. CORE BENEFITWithdrawal & Deposit of money
2 BASIC PRODUCT
Bank a/c, documents, cheque books, etc
3 EXPECTED PRODUCTTimely service & flexibility of withdrawal & deposit, safety of funds,
etc
4 AUGMENTED PRODUCT
ATMs, e- banking, telebanking,
Home loans, forex, credit cards,
5 POTENTIAL PRODUCTMobile banking
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Service Process Matrix
Service Process Matrix
Source: Schmenner, R.G. (1986), How can service business survive and prosper?, Sloan Management Review, Spring1986, 21 32.
Service Factory Service Shop
Mass Service
Professional Service
Low
High
HighDegree of customisation
De
greeoflaborintensity
BANKINGSECTOR
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Product
O Banking is a very critical sector and the
competition in this sector is very fierce after
liberalization. Banks have to choose onimportant parameters while determining the
product mix.
- Target Customers
- Services to be given- Government control
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Service Flower
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Physical Evidence
Bank Branches ATMs
WebsiteCheque Books,Pass Books etc
Logo
Tagline
Bank Brochure
Statement of accounts
Employees uniform
Relationship managers
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PRICEO The interest rates charged by the different banks.
O While framing a pricing policy different pricing
methods can be used:
1. Value Pricing
2. Cost plus pricing
3.Going rate pricing
4. Competitive based pricing
5. Market oriented approach
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Place
O Place mix is the location analysis for banks branches. There
are number of factors affecting the determination of the
location of the branch of bank. It is very necessary a bank to
situated at a location where most of its target population is
located.
O Some of the important factors affecting the location analysisof a bank are:
1. Adequate availability of transportation
2. Communication, electricity and other necessary
facilities for smooth functioning of the bank
3. Neat and clean surroundings4. Safety
5. Physical distribution and electronic distribution
6. Location of branch, head office, ATMs
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Channels
O Zero Level
ATMs Customers
Branches Customers
Website Customers
Mobile Customers
O 1 Level
Shopping Places
Card Banking
Customers
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People
O The banking organizations are supposed to satisfy
different types of customers living in different segments.
The segmentation of market makes the task of bank
professionals easier.O Segmentation with respect to:
1) Household Segment
2) Gender Segment
3) Profession Segment4) Institutional Sector
O Internal People include all the employees and vendors.
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PromotionO Personal Selling: The bank marketers get the best
opportunity to tangibilize the product through
personal selling; persuasion is more effective withdirect contact. It helps in creating impulse buying
O Advertising: TV advertisements, Festive promotions,
newspaper advertisements. Point of Purchase
materials like brochures, calendars, diaries etc.
O Public Relations: Social welfare and CSR activities
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Process (Blueprint Components)
O Line of interaction : direct interactions between thecustomer and organization.
O Line of visibility : this line separates all serviceactivities that are visible to the customers from thosethat are not visible.
O Physical evidence : the elements which the customer
actually see or experience when they use a serviceand which contribute to the perceived quality ofservice.
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O Customer actions : includes steps, choices, activitiesand interactions that customer perform in the process
of purchasing, consuming and evaluating the service.
O Onstage contact employee actions : steps and
activities that contact employees perform and are
visible to the customer.
O Backstage contact employee actions: steps and
activities that occur behind the scene to support
onstage activities.
O Support processes : covers the internal services,
steps and interactions that take place to support the
contact employees in delivering the service.
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Service Blueprints
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Welcome Desk Chairs/Desk Form/BrochureMoney Counting
machine
InquiryInteraction with
the bankerFill forms and
SubmitMakes payment
Guide to NewA/C counter
Give details ofvarious accounts
Enter detailsabout new A/C
Receivespayment andcredit to A/C
Entry intocustomerdatabase
Paymentcredited to
A/C
Line of Visibility
Physical Evidence
Customer Action
Employee Action
Background Activities
Line of Interaction
Creating a new account
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Rack of depositingbank slips
Waiting area of thebank
Deposit Counter
Enter Bank Fill SlipGive slip at depositcounter with cash/
cheque
Receive slip andenter details
Details of cash/ cheque are enteredinto database and money credited
Line of Visibility
Physical Evidence
Customer Action
Employee Action
Background Activities
Line of Interaction
Watchman givesdeposit slip
Depositing Money
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Credit card form waiting area
InquiryFills the formand attaches
docsWait
Receives thecredit card kit
Explain difftypes of credit
cards andbenefits
Check docs andenter in database
Verification ofdocuments
Gives creditcard kit to
customer andexplain details
Entry in thesystem
Issue ofcredit cardsand dispatch
Line of Visibility
Physical Evidence
Customer Action
Employee Action
Background Activities
Line of Interaction
Credit card kit
Issue of credit card
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Loan application Branch Officer Pay book
30min--1hr.
Line of visibility
Deny
1 day 2 days 3 days
Fail point Customer wait Employee decision
=======
========= $ 0 $ ==== =====
ReceivePayment
FinalpaymentDecline Notify
customerIssuecheck
Confirm
Creditcheck
Accept Printpaymentbook
Delinquent Closeaccount
Verify
incomedata
Initialscreening
Verifypayer
Employer Creditbureau Branch
recordsBank
accounts
AccountingData base
records
FW
ww
F
F
F
F
F
F
Bank Lending Process
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Cheque Clearing Process
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Internet Banking
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Describe what services you have
blueprinted and why?O We are making Blueprint for primary Banking
Services.
1. Opening an account
2. Depositing Money3. Withdrawing Money
4. Bank Lending Operation
5. Cheque Clearing Process
6. Internet Banking
As Banking envelopes many services under it, it isdifficult to blueprint every service.
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Describe key customer actions & why
they are crucial to success of service?Key customer interactions according to us are: Opening an account: Filling forms, signatures,
photographs & submitting required documents become acritical activity from customers side.
Depositing Money: Filling the slip and checking thepassbook becomes critical for depositing.
Issue of Credit Card: Filling forms, signatures,photographs & submitting required documents become acritical activity from customers side
Bank Lending Operations: Apply for loan
Cheque Clearing Process: Provide cheque to the bankteller
Internet Banking: Access bank page & provide logininformation. Process payment.
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Describe key Employee actions & why
they are crucial to success of serviceKey employee actions are:
Opening an account: Explaining the details about all the accounts
and guiding the potential customer through the whole process.
Depositing the money: Actual counting of money and updating thedatabase is the critical activity on the employees side
Issue of Credit Card: Explain various credit card offerings, collect
& verify documents, issue card kit to the customer.
Bank Lending Operations: Verify the documents provided, then
process loan for approval. Cheque Clearing Process: Provide receipt to the customer. Clear
the cheque after verifying the bank account & balance. Issue amount
to the customers bank.
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Describe key elements of the physical
evidence1. Branch
2. Deposit counter
3. Helpdesk4. Credit Card
5. Internet
6. Bank Website
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Service FailuresO Opening an account
1. Was the potential customer correctly guided about the various types of
accounts?
2. Was the personal banker well informed about the account services provided?
3. Were his needs and capabilities correctly gauged?
O Depositing the money
1. Was the depositing process easy?
2. Was the waiting queue very long?
O
Issue of credit card1. Was the customer correctly furnished about the card?
2. Was the experience pleasant?
3. Did the credit card arrive on time?
4. Was the verification procedure explained to the customer?
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Service FailuresO Bank Lending Operations:
O Was the customer correctly explained the loan procedure?
O Did the customer furnish correct information?
O Was the credit check approved?
O Was the verification of bank accounts successful?
O Cheque Clearing Process:
O Was the details furnished appropriate?
O Did the cheque belong to the issuer?
O Was there presence of enough funds in the issueraccounts?
O Internet Banking:
O Were the login details valid?
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Uses Of Service Blueprint
O Providing a Platform for Innovation
O Recognizing Roles and Interdependencies
O Facilitating Both Strategic and TacticalInnovations
O Transferring and Storing Innovation Knowledge
O Designing the Moments of Truth
O Clarifying Competitive Positioning
O Understanding the Ideal Service Experience
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Application of Service Blueprint
O Rendering service as promised
O Managing fail points
O Training systems
O Quality controlO Creating realistic customer expectations
O Service system design
O Promotion
O Empowering the human element
O Selection criteriaO Job description
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Thank You