09 d31e0019

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09 d31e0019

  1. 1. RETAIL BANKING STRATEGIES FOR THE FUTURE Khairuddin 09D31E0019
  2. 2. 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>Retail credit levelcrossed Rs.189,000 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>
  3. 3. Market Share: Retail Loan - 2005
  4. 4. Drivers Of Retail Growth <ul><li>CHANGING CONSUMER DEMOGRAPHICS </li></ul><ul><li>Growing disposable incomes </li></ul><ul><li>Youngest population in the world </li></ul><ul><li>Increasing literacy levels </li></ul><ul><li>Higher adaptability to technology </li></ul><ul><li>Fiscal incentives for home loans </li></ul><ul><li>Changing mindsets-willingness to borrow/lend </li></ul><ul><li>Desire to improve lifestyles </li></ul>
  5. 5. Industry’s response to the change <ul><li>“ Any where”, “Any time” Banking </li></ul><ul><li>Faster service & processing </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>
  6. 6. <ul><li>The accelerated retail growth has been on a historically low base </li></ul><ul><li>Penetration continues to be significantly low compared to global bench marks </li></ul><ul><li>Share of retail credit expected to grow from 22% to 36% </li></ul><ul><li>Retail credit expected to grow to Rs.575,000 crs by 2015 at an annual growth rate of 25% </li></ul>Future Of Retail Banking
  7. 7. Future of Retail Banking Contd …. <ul><li>Dramatic changes expected in the credit portfolio of Banks in the next 5 years </li></ul><ul><li>Housing will continue to be the biggest growth segment, followed by Auto loans </li></ul><ul><li>Banks need to expand and diversify by focussing on non urban segment as well as varied income and demographic groups </li></ul><ul><li>Rural areas offer tremendous potential too which needs to be exploited </li></ul>
  8. 8. Challenges <ul><li>Sustaining Customer loyalty </li></ul><ul><li>NPA reduction & Fraud prevention </li></ul><ul><li>Avoiding Debt Trap for customers </li></ul><ul><li>Bringing Rural masses into mainstream banking </li></ul>
  9. 9. Strategies for Future… <ul><li>Customer segmentation/differentiation </li></ul><ul><li>Data mining/CRM based campaigns </li></ul><ul><li>Products per customer/loyalty </li></ul><ul><li>Promoting low risk retail lending products </li></ul><ul><li>Offer an array of products and financial advisory. </li></ul>
  10. 10. Strategies for Future… Contd. <ul><li>Cost effective expansion </li></ul><ul><li>Renewed emphasis on superior execution by front-line employees </li></ul><ul><li>Grow through Alliances: </li></ul><ul><ul><ul><li>Hospitality Education </li></ul></ul></ul><ul><ul><ul><li>Retailers Automobiles </li></ul></ul></ul><ul><ul><ul><li>Consumer Durables Housing/Construction </li></ul></ul></ul>
  11. 11. <ul><li>The bank that best addresses and anticipates customers needs, delivers consistently higher quality service and connects to the customer via their channel of choice wins </li></ul>Winning Strategy
  12. 12. Thank You !

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