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Trends in Banking Part-VI


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This Presentation has interesting facts on HDFC Bank trying to make their ATM's as mini branches,Punjab & Sind Bank's UP Biz success,SMARTPHONE to be used at ATMs for txns,Digital Banking

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Trends in Banking Part-VI

  1. 1. Trends in Banking (Part VI)
  2. 2. HDFC Bank to make its ATMs mini branches
  3. 3. HDFC Bank ATMs will soon give customers instant personal credit, top-up loans & approve credit-card application. The move to make ATMs more than just a cash dispensing tool would help HDFC in morphing to Digital Bank HDFC states that it was important that they build “Scale” which could be easily achieved over widespread ATM network In the First phase, the bank would offer loans under 10 seconds across its ATM Network In 2015,HDFC had launched new product using its backend advance analytics that can disburse personal loans under 10 seconds At the end of December quarter HDFC Bank had ; 11,843 ATMS & 4,281 Branches(cost of setting-up branch was typically 10 times more than cost of setting an ATM) At the end of third quarter in 2015,the size of HDFC Banks personal loan book stood at Rs.35,494 crores against Rs.24,988 crore in the same quarter in 2014 The second phase which will begin in April 2016 will have ATMs disbursing top-up loans & renewing Gold Loans HDFC will be using “Advanced Analytics” to determine a customers worthiness HDFC Banks Click-to-Call facility at ATM This can be used by a non- customer. Once you see the offers on the ATM & you want to avail this offer, you can click on the screen. HDFC customer care will call you back in less than 2 Mins
  4. 4. THE BIG LEAGUE In the pilot project that HDFC undertook, it was found that 40-42%of the customers were using the offers on ATM outside the branch-hour timing & out of this 50% were doing it between 5 & 9 AM
  5. 5. Cholamandalam Investments & Finance expects Payment Banks to start in 12-14 Months (The firm also receives Board Approval to raise Rs.6,000 Crores through Non-Convertible Debentures)
  6. 6. Cholamandalam Investment & Finance Company Ltd launched as the financial services arm of the Murugappa Group is in the process of appointing a consultant for its payment bank project & is expecting the Bank to be ready in next 12-14 months The Board has approved a proposal to invest upto Rs.75 crores in equity shares of Cholamandalam Distribution Services Limited(CDSL),a 100% subsidiary of the company as a long- term investment for its payment Bank The capital infusion is consequent to CDSL obtaining an in-principle approval for payment bank license from RBI As per RBI guidelines/terms & conditions of in-principle approval for conversion into a payment bank, CDSL shall maintain a minimum net worth of Rs.100 cr all times The company has posted a growth of 31.2% in net profit at Rs.148.03 cr during quarter ended Dec 31,2015 as compared to Rs.112.79 cr posted during the same quarter of 2014 The Board has also approved raising Rs.6,000 cr through Non-Convertible Debentures The Total income from operations as on Dec 2015 stood at Rs.1060 crores as against Rs.970.29 crores during 2014 (an increase of 9.25%)
  7. 7. Cholamandalam Investments & Finance at a Glance • The Total Assets under Management(AUM)of the company has crossed Rs.30,000 crores & the Net Income margin has seen a growth of 17% during the December 2015 quarter compared to the corresponding quarter of 2014 • According to the company, Profit improvements has happened because of; • Good Book Growth • Better fee income on disbursement • Cost of funds has been lower • NPAs under control • In December 2015,the Board also approved a proposal to invest upto Rs.8 crores in White Data Systems India Pvt Ltd towards acquiring controlling stake of 63%.The company is in the business of providing holistic freight data solutions • CDSL disbursed Rs.3245 cr in Vehicle Finance Business as against Rs.2,290 cr in Dec 2015 quarter. • Home Equity disbursements grew by 17% from Rs.754 cr during Dec 2014 quarter to Rs.882 cr in the corresponding quarter of Dec 2015 quarter • The aggregate disbursements for the quarter were Rs.4260 cr as against Rs.3082 cr during the third quarter of 2015
  8. 8. Navigating through the Digital Banking Space (Banks, e-tailers & third-party independent companies are coming up with interesting options for customers)
  9. 9. Non Banking entities like e- commerce companies are offering “Electronic Wallets” Banking these days is no longer about opening accounts or increasing card usage. Every player wants its customer to transact more & provides them all possible ways of transactions using digital modes Leading Banks today provide technology- driven payment & money transfers solutions through social media platforms, e-mails, text messages or a tap on a ‘smart phone’
  10. 10. E-Wallets may be issued by; -Banks -E-tailers -Third-party independent payment companies like PayTm/Citus Pay -Also Mobile operators In semi-closed wallets, the maximum reloadable amount & the maximum balance every month is Rs.10,000.This can go upto Rs.50,000/1,00,000 in the wallet if one gives his KYC documents to the issuer Typically three types of transactions are done in PayTm e-wallets; 1.Shop & Pay Online 2.Pay Online 3.Use it Offline/shop & use offline E-Wallets/Prepaid Instruments A major attraction of these e-wallets are -cash-back offers -Discounts -Deals (You spend Rs.500 & get a refund of Rs.70.You save money as you spend)
  11. 11. Punjab & Sind Bank’s Uttar Pradesh’s Biz touches Rs.11,000 Crores
  12. 12. Punjab & Sind Bank has touched almost Rs.11,000 cr in total business in Uttar Pradesh Punjab & Sind Bank has total of 220 branches across the UP state Punjab & Sind Bank has achieved significant improvement in the credit deposit ratio (CDR) in UP and are mobilizing low cost deposits, Chairman of the Bank Jatinderbir Singh said The agricultural advances of the Punjab & Sind Bank UP branches was over 81% of the priority sector advances Of total business of over Rs.10,900 cr, the deposit & dvances account for Rs.6,000 cr & Rs.4,000 cr respectively
  13. 13. SMARTPHONES to replace Debit Cards at ATM Machines (Dozens of US Banks are installing new ATM’s or updating existing ones to allow customers to order cash on a mobile App without having to insert a Bank ATM Card)
  14. 14. The card less ATM is gaining ground in the US & around the world with SMARTPHONE technology allowing for speedier & more secure transactions Dozens of US Banks are installing new ATM’s or updating existing ones to allow customers to order cash on a Mobile Application & then scan a code to get the money without inserting an ATM Card US Banking Giants Wells Fargo, Bank of America(BoA) & Chase are in the process of deploying the new ATM’s, as are a number of regional banks & financial groups around the world FIS-A major provider of software & technology for ATM’s believes that the model of using SMARTPHONES at ATM reduces a lot of vulnerabilities.FIS card less system is being used at some 2,000 ATM’s operated by at least 28 banks in US The concept of using SMARTPHONE-based system in ATM aims to curb the growing problem of “skimming” in which criminals steal the data on a card often by inserting devices into the ATM Card slot. Skimming cost the Global Banking industry some $ 2 billion in 2015 & can lead to other kinds of fraud when card data is stolen Another security benefit of using SMARTPHONE- based system in ATM is that authenticating on the handset reduces the time spent at the ATM to around 10 seconds instead of the typical 30-40 Bank of America(BoA) is currently developing a new card less ATM solution based on NFC(Near Field Communication)technology to allow customers to authenticate without the use of the card.The Bank will roll out this facility in select ATMs in SiliconValley, San Francisco, Charlotte,NewYork & Boston
  15. 15. Case Study In case of Chase Bank, customers will be able to request an access code through the Chase Mobile App & enter it at the ATM to do their transactions. Later on they will be able to use their digital mobile wallets to complete the transaction at the ATM Wells Fargo is also on board developing ATMs that will allow customers to use their SMARTPHONES to obtain an 8-digit token to authorize a cash withdrawal. Wells Fargo will support Android Pay for this facility Chicago-based BMO Harris ,an affiliate of Bank of Montreal began using SMARTPHONE at its 750 ATMs in 2015 ATM manufacturer Diebold is testing a Headless Teller Machine without a screen or keypad which dispenses cash from interaction on the SMARTPHONE. Customers need to only verify their identity which can be done with the devices fingerprint reader or possibly with an iris scanner on the ATM Diebold is testing the new concept with Citibank that could prove a better experience
  16. 16. Anup George Rebello Asst.Manager The Catholic Syrian Bank Ltd (