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RETAIL BANKING     IN INDIA <ul><li>PRESENTED BY: (GROUP 4) </li></ul><ul><li>SAKET RARA </li></ul><ul><li>SAGAR NIKAM </l...
SUMMARY  <ul><li>RETAIL BANKING:  Retail banking refers to banking in which banking institutions execute transactions dire...
SUMMARY CONTINUED….. <ul><li>FIVE FOCUS AREAS: </li></ul><ul><li>Imagination </li></ul><ul><li>Emotional Connection </li><...
THE RETAIL BANKING STRATEGIES ADOPTED BY A FEW NEW AGE BANKING ORGANIZATION IN INDIA.  DISCUSS…
RETAIL BANKING STRATERGIES  <ul><li>Constant innovation in products, services to match the requirements of the customer se...
RETAIL BANKING STRATEGIES CONTINUED…. <ul><li>Fixed and unfixed Deposits, (cluster deposits which can be broken into small...
WHAT ARE THE STEPS TAKEN TOWARDS TRANSFORMING RETAIL BANKING BY BANKS LIKE SBI?
STEPS <ul><li>Presence And Availability </li></ul><ul><li>Core Banking </li></ul><ul><li>Extended Hours, Quality & Quickne...
<ul><li>Merger/Acquisition Process </li></ul><ul><li>- Imperial Bank Of India </li></ul><ul><li>- State Bank Of Saurashtra...
3. SHOULD RETAIL BANKING BE TREATED LIKE RETAIL STORES IN TERMS OF ITS OPERATIONS TO MEET WITH SUCCESS IN INDIA AS SUGGEST...
PRESENT SCENARIO <ul><li>Indian retail banking has been showing phenomenal growth </li></ul><ul><li>In 2004-05, 42% of cre...
ECONOMY VS. RETAIL BANKING <ul><li>Retail assets are just 22% of the total banking assets of India </li></ul><ul><li>Contr...
MARKET SHARE: RETAIL LOAN - 2005
BANKING LIKE RETAIL STORE <ul><li>“ Any where”, “Any time” Banking </li></ul><ul><li>Improved processes/Bundled product of...
<ul><li>SIMILARITIES:  </li></ul><ul><li>Customer oriented approach  </li></ul><ul><li>Stiff competition to be tackled </l...
RETAIL BANKING IN RETAIL STORES WAY…  AS IS / BEFORE TO BE /NOW PRIORITY  Credit & Risk  Customers & retailing  APPROACH  ...
RETAIL BANKING IN RETAIL STORES WAY TO IMPROVE FIVE FOCUS AREAS RETAIL STORES  APPLICABILITY TO RETAIL BANKS IMAGINATION  ...
RETAIL BANKING IN RETAIL STORES WAY… FIVE COMMANDMENTS RETAIL STORES APPLICABILITY TO RETAIL BANK SEGMENTATION, TARGETING,...
CONCLUSION <ul><li>Retail banking has a great scope in India due to increase in consumerism, purchasing power of customers...
THANK YOU…!
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RETAIL BANKING

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CASE STUDY ON RETAIL BANKING

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  1. 1. RETAIL BANKING IN INDIA <ul><li>PRESENTED BY: (GROUP 4) </li></ul><ul><li>SAKET RARA </li></ul><ul><li>SAGAR NIKAM </li></ul><ul><li>SACHIN MORE </li></ul><ul><li>NITIN DAFADE </li></ul><ul><li>GAURAV KUMAR </li></ul><ul><li>MITHUN SADAVARTE </li></ul><ul><li>DEEPAK DODDAMANI </li></ul>
  2. 2. SUMMARY <ul><li>RETAIL BANKING: Retail banking refers to banking in which banking institutions execute transactions directly with consumers rather than corporations or other banks. </li></ul><ul><li>Services offered includes : Savings and checking accounts, mortgages, personal loans, debit cards, credit cards and so forth. </li></ul><ul><li>Indian retail banking is showing phenomenal growth </li></ul><ul><li>Key drivers: Increased consumerism, Internet, Emergence of new age companies, technology. </li></ul>
  3. 3. SUMMARY CONTINUED….. <ul><li>FIVE FOCUS AREAS: </li></ul><ul><li>Imagination </li></ul><ul><li>Emotional Connection </li></ul><ul><li>Functional & technical advantage </li></ul><ul><li>Personalized contact </li></ul><ul><li>Testing & Improvement </li></ul><ul><li>THE FIVE COMMANDMENTS </li></ul><ul><li>Market offering & positioning </li></ul><ul><li>Customer relationships </li></ul><ul><li>Competitors study </li></ul><ul><li>Customer care & feedback </li></ul><ul><li>Employees satisfaction </li></ul>
  4. 4. THE RETAIL BANKING STRATEGIES ADOPTED BY A FEW NEW AGE BANKING ORGANIZATION IN INDIA. DISCUSS…
  5. 5. RETAIL BANKING STRATERGIES <ul><li>Constant innovation in products, services to match the requirements of the customer segment. </li></ul><ul><li>Quality service and quickness in delivery. </li></ul><ul><li>Introduction of new delivery channels </li></ul><ul><li>Tapping of unexploited potential and increasing the volume of business </li></ul><ul><li>Detail Market research </li></ul><ul><li>Cross selling of products </li></ul><ul><li>Business process outsourcing </li></ul><ul><li>Tie-up arrangements </li></ul>
  6. 6. RETAIL BANKING STRATEGIES CONTINUED…. <ul><li>Fixed and unfixed Deposits, (cluster deposits which can be broken into smaller units to help meet depositors’ overdraft without breaking up entirely) </li></ul><ul><li>Centralized database for ‘any branch banking’ </li></ul><ul><li>(whereby the customer can access his account in any of the branches) </li></ul><ul><li>Room services (whereby the customers are visited at their residences offices to enable them to open their accounts) </li></ul><ul><li>Automatic teller machines </li></ul><ul><li>Tele banking network </li></ul><ul><li>Extended banking time </li></ul><ul><li>Courier pickup for cheques and documents </li></ul>
  7. 7. WHAT ARE THE STEPS TAKEN TOWARDS TRANSFORMING RETAIL BANKING BY BANKS LIKE SBI?
  8. 8. STEPS <ul><li>Presence And Availability </li></ul><ul><li>Core Banking </li></ul><ul><li>Extended Hours, Quality & Quickness in Delivery </li></ul><ul><li>Better Infrastructure </li></ul><ul><li>Make Routine Tasks Easier And Less Time Consuming </li></ul><ul><li>- Net Banking </li></ul><ul><li>- ATM Centers </li></ul><ul><li>- Handy Fund Transactions </li></ul>
  9. 9. <ul><li>Merger/Acquisition Process </li></ul><ul><li>- Imperial Bank Of India </li></ul><ul><li>- State Bank Of Saurashtra, Cochin, Travancore, Indore </li></ul><ul><li>Services, Product Range, Group Companies </li></ul><ul><li>SBI---- </li></ul><ul><li>- Capital Market Ltd. </li></ul><ul><li>- Mutual Fund </li></ul><ul><li>- Cards And Payment Services </li></ul><ul><li>- Factor And Communication Services </li></ul>
  10. 10. 3. SHOULD RETAIL BANKING BE TREATED LIKE RETAIL STORES IN TERMS OF ITS OPERATIONS TO MEET WITH SUCCESS IN INDIA AS SUGGESTED BY BCG?
  11. 11. PRESENT SCENARIO <ul><li>Indian retail banking has been showing phenomenal growth </li></ul><ul><li>In 2004-05, 42% of credit growth came from retail </li></ul><ul><li>Over the last 5 years CAGR has been over 35% </li></ul><ul><li>Retail credit level crossed Rs.189K Crore in 2004-05 </li></ul><ul><li>Market has transformed into a ‘buyer’s market’ from a ‘seller’s market’ </li></ul><ul><li>Comprises of multiple products, channels of distribution and multiple customer groups </li></ul>
  12. 12. ECONOMY VS. RETAIL BANKING <ul><li>Retail assets are just 22% of the total banking assets of India </li></ul><ul><li>Contribution of retail loans to GDP: </li></ul><ul><li>India 6% China 15 %, </li></ul><ul><li>Thailand 24% Taiwan 52% </li></ul><ul><li>Indian population below 35 yrs of Age – 70 % </li></ul><ul><li>Reach of Formal Banking Channels – 20-25% of Indian population </li></ul><ul><li>Source: Cygnus Industry Insight </li></ul>
  13. 13. MARKET SHARE: RETAIL LOAN - 2005
  14. 14. BANKING LIKE RETAIL STORE <ul><li>“ Any where”, “Any time” Banking </li></ul><ul><li>Improved processes/Bundled product offerings </li></ul><ul><li>Faster service/Reduced TATs </li></ul><ul><li>Customer specific products/offerings on a regular basis </li></ul><ul><li>Focus on understanding customer needs/ preferences </li></ul><ul><li>Segmentation/Differentiation of customers </li></ul><ul><li>Building relationships </li></ul>
  15. 15. <ul><li>SIMILARITIES: </li></ul><ul><li>Customer oriented approach </li></ul><ul><li>Stiff competition to be tackled </li></ul><ul><li>Dynamic business environment </li></ul><ul><li>Faster changes in technology & methods </li></ul><ul><li>Greater potential in Indian market </li></ul><ul><li>DIFFERENCES: </li></ul><ul><li>Mind sets different </li></ul><ul><li>Priorities are different </li></ul><ul><li>Differentiation potential varies </li></ul><ul><li>Customer buying behavior is different </li></ul>RETAIL BANKING V/S RETAIL STORES
  16. 16. RETAIL BANKING IN RETAIL STORES WAY… AS IS / BEFORE TO BE /NOW PRIORITY Credit & Risk Customers & retailing APPROACH Secure & conventional location for financial transactions (Banks dictate terms) Customer centric retail banking (Customer is King) CUSTOMER BASE Corporation & other banks Retail consumers, corporate clients, other banks FORMATS Single Entity Multi-location, multi branch MORE EMPHASIS ON Improving transactional efficiency Providing service and value to consumers CUSTOMIZATION Rarely there Highly customized
  17. 17. RETAIL BANKING IN RETAIL STORES WAY TO IMPROVE FIVE FOCUS AREAS RETAIL STORES APPLICABILITY TO RETAIL BANKS IMAGINATION Sell dreams, Offer a vision where customers can go. Sell dreams of comfortable & secure retirement plans etc. EMOTIONAL CONNECTIONS Provide information, Serve & create bond e.g. Update new plans tapping new needs FUNCTIONAL & TECHNICAL ADVANTAGES Retail stores provide value- added products & services Create products & services with act as differentiator PERSONALIZED CONTACT Data warehousing, data mining e.g. advices on money management depending on individual needs TESTING & IMPROVEMENT Keep experimenting New methods, plans, Implement & improve
  18. 18. RETAIL BANKING IN RETAIL STORES WAY… FIVE COMMANDMENTS RETAIL STORES APPLICABILITY TO RETAIL BANK SEGMENTATION, TARGETING, POSITIONING accordingly make product offerings simple & relevant e. g. positioning HBOS :Consumer champion in Britain CUSTOMER RELATIONSHIP Track & correct mis-perceptions of customers Feedback,complaints,helpdesk. COMPETITION Survey competitors: offerings, strategies & promotions & beat them Competitor oriented strategy, Be updated & improve PROACTIVE Listen to customers continually & carefully Unstated needs identification INCENTIVES Performance based To Sales & frontline, back-office staff
  19. 19. CONCLUSION <ul><li>Retail banking has a great scope in India due to increase in consumerism, purchasing power of customers. </li></ul><ul><li>E-banking, phone banking, Mobile banking, ATM, have become necessity, and are no more factor of differentiation in urban and semi urban cities. </li></ul><ul><li>Bankers can adopt strategies used by retail stores to very large extent to woo the customers and survive in competition. </li></ul>
  20. 20. THANK YOU…!
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