How can Internet help the dwindling BANKING Sector in India Conceptualized by Abhishek Bhardwaj @

True power of the Internet In this time of crisis, cutting down overheads and costs is on the “to do list” of every bank. Internet industry can definitely help if banks realize the true power of Internet.

In this time of crisis, cutting down overheads and costs is on the “to do list” of every bank.

Internet industry can definitely help if banks realize the true power of Internet.

How is Internet currently employed? Net Banking / e-Banking / Online Banking Statements / Transactions Summary Inter Branch Funds Transfer (all branches not e-banking enabled) Inter Bank Funds Transfer (all banks not enabled with this service) Bills Payment - Phone & Electricity Lead Generation for Deposits, Investment Plans, Credit Cards Marketing, Advertising, Brand Building and Lead Generation

Net Banking / e-Banking / Online Banking

Statements / Transactions Summary

Inter Branch Funds Transfer (all branches not e-banking enabled)

Inter Bank Funds Transfer (all banks not enabled with this service)

Bills Payment - Phone & Electricity

Lead Generation for Deposits, Investment Plans, Credit Cards

Marketing, Advertising, Brand Building and Lead Generation

Poor monetization of traffic In India net banking is one of the most popular activities on the Internet. According to Alexa , the list of 100 most popular websites in India has 4 websites that are of top most banks in India. www.icicibank.com - Rank 27, ICICI Bank www.hdfcbank.com - Rank 34, HDFC Bank www.onlinesbi.com - Rank 98, State Bank of India www.citibank.co.in - Rank 100, Citi Bank Yet only partial monetization

In India net banking is one of the most popular activities on the Internet.

According to Alexa , the list of 100 most popular websites in India has 4 websites that are of top most banks in India.

www.icicibank.com - Rank 27, ICICI Bank

www.hdfcbank.com - Rank 34, HDFC Bank

www.onlinesbi.com - Rank 98, State Bank of India

www.citibank.co.in - Rank 100, Citi Bank

Yet only partial monetization

Online Banking No doubt, online banking does save a lot for the banks. It is an excellent facility for banks’ customers as well. It is 4 th most popular activity on Internet in India after Email, Social Networking and e-Commerce.

No doubt, online banking does save a lot for the banks.

It is an excellent facility for banks’ customers as well.

It is 4 th most popular activity on Internet in India after Email, Social Networking and e-Commerce.

Huge amount of Traffic Banks’ portals have so much of traffic and what do visitors do? They transact transfer funds pay e-checks fill lead form for a loans, insurance or an investment plan . Why let go of such visitors who are thinking nothing but money and not just money; flowing money!

Banks’ portals have so much of traffic and what do visitors do?

They transact

transfer funds

pay e-checks

fill lead form for a loans, insurance or an investment plan .

Why let go of such visitors who are thinking nothing but money and not just money; flowing money!

How can Banks employ Internet? What can banks do? How to monetize such HIGH-QUALITY traffic? How can banks turn their online banking portals into a minting machine?

What can banks do?

How to monetize such

HIGH-QUALITY traffic?

How can banks turn their

online banking portals into a

minting machine?

1. Let them Shop These customer are more than comfortable playing with their money on their bank’s website. If the bank could provide a Online Shopping Facility and great deals on daily need products like grocery, books, gadgets etc. Why would you or I even bother going to eBay or any online store and spending hours on bidding and comparing prices? No consumer can resist a Discount + Reward Points deal . Huge amount of money can be made by any bank since there is no product display cost involved; only order delivery costs and these costs can be bared by the suppliers and the bank could earn a commission on every sale.

These customer are more than comfortable playing with their money on their bank’s website.

If the bank could provide a Online Shopping Facility and great deals on daily need products like grocery, books, gadgets etc.

Why would you or I even bother going to eBay or any online store and spending hours on bidding and comparing prices?

No consumer can resist a Discount + Reward Points deal .

Huge amount of money can be made by any bank since there is no product display cost involved; only order delivery costs and these costs can be bared by the suppliers and the bank could earn a commission on every sale.

2. Payment gateway give-away Why services like Paypal or Google Checkout exist when banks handle all the transactions. Why can’t an online merchant just have a free payment plugin for his website powered by his bank? The bank could charge a small %age on every transaction.

Why services like Paypal or Google Checkout exist when banks handle all the transactions.

Why can’t an online merchant just have a free payment plugin for his website powered by his bank?

The bank could charge a small %age on every transaction.

3. Online Customer support Every bank can offer customer support over the Internet. Millions of people use voice-chat enabled Instant Messengers. Does that ring a bell? customers will now have a free mode to reach a bank. no expensive telecom equipment end to [your call is valuable to us, please stay on the line] bull shit for customers (everyone hates to wait) cost per seat = salary of support executive + electricity.

Every bank can offer customer support over the Internet.

Millions of people use voice-chat enabled Instant Messengers.

Does that ring a bell?

customers will now have a free mode to reach a bank.

no expensive telecom equipment

end to [your call is valuable to us, please stay on the line] bull shit for customers (everyone hates to wait)

cost per seat = salary of support executive + electricity.

4. Go Green Use energy efficient eco-friendly web servers. promote paperless banking; we don’t need to sign any papers by hand these days. we have digital signatures available. a digital signature can cost around Rs.2000 the bank can provide a digital signature to their customers for FREE. banks swill save more than that by resorting to paperless banking.

Use energy efficient eco-friendly web servers.

promote paperless banking; we don’t need to sign any papers by hand these days. we have digital signatures available.

a digital signature can cost around Rs.2000

the bank can provide a digital signature to their customers for FREE.

banks swill save more than that by resorting to paperless banking.

5.Let Debit Cards go online Most of the Indian online stores don’t accept debit cards. The number of debit card holders is 10 times more than that of credit card holders in India. Or may be even more. Let customers use debit cards for online shopping at least where they can pay in the Indian currency. No one would mind paying a small convenience fee as low as Rs.10 per transaction. Lets say, the number of daily online purchases in India is 1,00,000 and that means Rs.10,00,000 can be made everyday and that is Rs.36 crores to be made every year. Actual figures are actually more than that! 1 Lakh daily transactions happen on IRCTC’s website alone

Most of the Indian online stores don’t accept debit cards.

The number of debit card holders is 10 times more than that of credit card holders in India. Or may be even more.

Let customers use debit cards for online shopping at least where they can pay in the Indian currency.

No one would mind paying a small convenience fee as low as Rs.10 per transaction.

Lets say, the number of daily online purchases in India is 1,00,000 and that means Rs.10,00,000 can be made everyday and that is Rs.36 crores to be made every year.

Actual figures are actually more than that! 1 Lakh daily transactions happen on IRCTC’s website alone

Loads of good opportunities for Indian IT companies to help banks in India and globally. Please let me know how you liked this piece of concept curry. Source: http://www.conceptcurry.com/internet-industry/banking-sector-dwindles-internet-industry-for-the-rescue/ Or Click Here

Loads of good opportunities for Indian IT companies to help banks in India and globally.

Please let me know how you liked

this piece of concept curry.

Source: http://www.conceptcurry.com/internet-industry/banking-sector-dwindles-internet-industry-for-the-rescue/

Or Click Here