ING Hunt for Lions

2. ING CASE STUDY COMPETITON
Executive Summary
Primary Research
Insights from Research
Segmentation & Targeting
SWOT of Branch Banking
SWOT of Digital Banking
Present Scenario
Future Ahead and Innovations
Conclusion

3. Executive Summary
• Compare Digital Banking and Branch Banking and understand their
pros and cons
• Understanding the different types of Digital Banking and the different
services which they offer currently
• Finding out why people use these type of services aided by online
survey and desk research
• Roadmap for the future by bringing innovations like highly customized
services at an individual level with the help of data mining and
machine learning and entering the new markets by educating the
market
THE ING CASE STUDY COMPETITON- 2014 3

4. Primary Research
Data
included
people of
age group
from 18-50
People from diverse
backgrounds like
Businessmen, Service
men Student,
Housewife, Software-
Developer, Doctors, etc.
Gender
diversity
People from
various cities
across the
country
Data
mixture
THE ING CASE STUDY COMPETITON- 2014 4
NUMBER OF OVERALL TRANSACTIONS %WISE
3.45
34.48
36.21
15.52
5.17
3.45
1.72 0.00
0.00
0
0 1
2 4
7 10
15 25
50 100
NUMBER OF DIGITAL TRANSACTION %-WISE
00%1%%2%3%
5%
7%
12%
23%
47%
0 1
2 4
7 10
15 25
50 100

5. Insights from Data …
Going through the survey results
it was found that the majority of
the transactions are used for
Recharging cell phones & DTH,
Shopping, Fund Transfers and
Viewing A/C Details.
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Percentage wise Transaction Business Transaction
7%
23%
14%
8%
18%
21%
8%1%
Mobile and DTH Recharge
Online Term Deposit
Pay Taxes
Funds Transfer
Viewing A/C Details and
Recent Transactions
Shopping
Withdrawal
Percentage wise difficulties Security Concerns, Looks
5%
52%
23%
16%
2%2%
very complex
Security Concerns
Looks very complex
Others
Security Concerns, Looks
very complex, Too tough
Branch Banking is more
suitable for me
After analysis of primary data, it
was found that major issue
which stops online transaction
from over taking branch banking
are security concerns.

6. How Digital Banking sees the market ..
Segmentation
&
Targeting
Readiness-
Stage
Unaware - No digital knowledge
Aware - Digital knowledge but not using digital banking
Interested - Using digital banking.
Age group
Less than 25 years of age
25-40 years of age
More than 40 years of age
Digital Banking as a percentage of overall Transactions
THE ING CASE STUDY COMPETITON- 2014 6
I don’t use digital
banking because
of security issues
I want to use
digital banking
but it is very
complex .. 
Target Group
0
52.63157895
48.94736842
38.46153846
47.05882353
6.25
0
60
50
40
30
20
10
0
0-17 18-21 22-26 27-31 32-36 37-44 45-100
Percentage
Age Group

7. Analysis of Branch Banking
S
O
W
T
STRENGTHS
 Customer Relationship Management is there
because of Personal Interaction
 Security Concern is not there as it is traditional
concept and bank was viewed as something very
safe
 Up-gradation Cost is low as the up-gradation of
infrastructure doesn’t take place very quickly
WEAKNESSES
× Generalized products – same products were
offered for all customers
× Cost-Disadvantages as we need to pay for the
staffs and the building
× Slow Transaction Process as it is done by people
× 24*7 service is not there
OPPORTUNITIES
• New Technology/Innovation
• New Markets/Emerging markets – Rural Market
• New Products or Customised Products
• Customer engagement when staffs can be trained
with both good soft skills and knowledge about
the products and services which the banks offers
THREATS
• Substitute Products like Digital Banking
• Govt. Regulation
• Continual change in Technology so the staffs
need to be trained and that incurs a high cost
THE ING CASE STUDY COMPETITON- 2014 7

8. Analysis of Digital Banking
S
O
W
T
STRENGTHS
 Transaction Process is very fast
 24*7 service
 Increased accuracy as the data is entered directly
by the customer
 Customised Products because we get to know
customer much better
 Global Area Coverage i.e. can be accessed anywhere
WEAKNESS
× Customer Relationship Management- still a
large population wants to have a manual
intervention for their service
× Up-gradation Cost is High and Technology
changes very quickly
× Security Concerns is a big issue when it comes
for digital banking
OPPORTUNITIES
• New Technology/Innovation- Huge scope and it is
believed that digital marketing still doesn’t knows its
potential
• New Markets/Emerging markets – Rural market is
THE ING CASE STUDY COMPETITON- 2014 8
something which can be tapped efficiently
• New Products – Bring new and customised products
• Social engagement – On a long term basis there
should be social platform to engage with customers
THREATS
• Volatile Revenue – Still the growth cannot be
predicted
• Substitute Products – Older Technology will be
slowly taken by advanced products
• Govt. Regulation – Any change in norms can
impact the sector very badly
• Continual change in Technology so one needs to
be updated else competitors will take over

9. Present Scenario …
Points of Access
• Internet Banking
• Mobile Banking
• Phone Banking
• SMS Banking
• IMPS
• Automated Teller Machines
Services includes
• Funds Transfer
• Bill Payments like:
• Mobile/Landline
• Electricity
• Term Deposit
• Pay Taxes
• Viewing Account and Transactions
details
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9
What people say ..
P1: Mobile Banking is very
convenient to use.
P2: At times Net Banking
seems very risky when you
have high balance.
P3: For transferring funds
instantly IMPS is best for
me.
What experts say ..
Technology has always
impacted our life and
digital banking will change
our life-style. Digital
Banking is bound to
change a lot …

10. The Way Ahead …
• Overcome Security concerns
• Divide the customer’s account into two parts, low-level account for day to day
small amount transactions and high-level account for occasional high amount
transactions
• For daily transactions the customer will use low level account. This will be
very simple and will allow customers to risk a predefined small amount. This
will build confidence in the minds of the customer
• For occasional transactions the customer will use high level account. This will
have high security
THE ING CASE STUDY COMPETITON- 2014
10
Main
Account
Low Level
Account
High Level
Account
Daily
Transactions
Occasional
Transactions
Very Easy and
Simple
High Security

11. The Way Ahead … (Contd.)
• Data Mining and Machine Learning
• With Mobile number and GPS, track the position of the customer on regular
basis and develop insights from them
• Suppose a particular customer regularly goes to a nearby mall for general
shopping and the GPS says that customer is nearby then notify the customer
of any ongoing offers in the malls (if any)
• This will be an additional and customised service and the bank will profit as
the transaction is likely to be digital (as it will be an unplanned transaction)
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Receives
On-going
Sales Offer
Goes to Mall

12. The Road Ahead … (Contd.)
• Do routine work of the customer
• Tie-up with major telecom companies for paying the bills of the customer
directly without the customer doing it manually – this not only gives extra
benefit to the customer but also reduces traffic
• Pay School fees directly
• DTH Recharge every month
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PAST
F
U
T
U
R
E
PRESENT DAY ..

13. The Road Ahead … (Contd.)
• Penetrate into untapped market
• Rural market
• Make people aware
• Tier II and Tier III cities
• Tie-up with restaurants and give
customers a delight factor
No free table but bank has provisions
Seminar at tier II and tier III cities
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14. The Road Ahead … (Contd.)
“Cloud Computing may be a black box,
but E-locker is easy to use and very safe too”
THE ING CASE STUDY COMPETITON- 2014 14
E-Locker
Scan
Save
Secure
Stay Connected
Storing
documents
online to make
it more
accessible 24*7

15. Conclusion
• Some of the benefits of Digital Banking as compared to Branch
Banking are Convenience, 24*7 service and transactions at your click
• Currently major transactions take place at bank branches and the
digital transactions have not yet been leveraged to its full advantage
• The bigger and unrealized market still remains the rural market which
needs planning and execution like awareness programs about
benefits of digital world
• The roadmap for future can be to gain trust from the customers with
respect to security and bring innovation like gaining insights from
customer behavior, E-Locker, etc.
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