By Rachita Rattan IIM Lucknow, class of 2013

1. Mobile First Strategy, Increasing Adoption and
Customer Engagement on Kotak Mobile App
-Rachita Rattan
rachita.rattan@kotak.com

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WHY DRIVE MOBILE BANKING ?
Mobile
banking stats

3. Stickiness
12/6/2020 Rachita Rattan 3
WHY DRIVE MOBILE BANKING ?
Replacing visits
to Branch
Instant
Gratification
Increase share of
Mind and Wallet
Increase in
Relationship Value
24*7
Accessible
Customer
Satisfaction/
Delight
Revenue
Generation
Acquisition of
New Customers
Min.
Costs in
Long run
High ROI

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Approach
On-boarding
NTB &
Bringing
existing
customers
on Mobile
Increasing
Utility of app
and
Efficiency in
usage
Making the
app actively
engage with
users
Rewarding
Usage
Eliminating
the need of
Branches in
the Long Run
Mobile First
Strategy:
•End-to-end
Sales, Tracking,
Entry to App on
Mobile app
Enabling and Analyzing end to end customer Journey on Mobile App
Informing
•Incentivising
•Eliminating
barriers to entry
for existing
customers
•Part-taking in
consumer
journeys
•Empowering
users to do more
Maximizing the
content/features
available Pre-
Login
App should
•Remind
•Inform
•Advise
•Cross Sell
Leverage
Analytics to
infuse
intelligence in
app
•Reward Loyalty
•Customized
rewards
Rewarding will
lead to
continuous
engagement
•Move maximum
possible branch
activities to App
Aim on the go
access to bank
for all purposes
Monitor and remedy drop-outs, customer satisfaction levels, RVs, ROI at each stage

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MOBILE FIRST ACQUISITION AND ENGAGEMENT STRATEGY
Lead
Generation
Online
Application
+
E-KYC
+
I.P. through
P.G.
Track
Accounts Other Products
I.P. Funds
credited to a
virtual card
Receive
Debit Card,
Cheque
book, Net
Banking
•AdWords
Mobile and In-
Mobile
Targeted Ads
for capturing
potential
customers
•Promote Paper
Free account
opening
exclusively by
downloading
Mobile App
•Apply Now
option in Mobile
App. (Platform
for all ‘Apply
Now’ products)
•Enable OTP
based E-KYC
(Full KYC) and
funding through
a Debit Card/Net
banking
•Unique
Application
number
generated at
application
completion
•Track the
application
progress on
mobile app using
the unique
number
•Whenever the
account gets
opened,
generate a
Virtual Prepaid
Card
accessible
through app
•It will enable
Customer to use
the funds
instantly
•Other Mobile
app features get
unlocked by
MPIN

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INCREASING ADOPTION IN EXISTING USER BASE
Existing Base Non Users Cold Users Regular Users
Referral Campaign
Peer influence and word of
mouth are some of the
biggest influencers in
banking app adoption
Remind,Incentivise
Downloads
Some users may be active
on Net and Phone banking
channels but not on app.
Target them using SMS,
Emails & Net banking
And get a
movie ticket
free
Ref Code:Shaina@350
Identify, Segment,
Guide
Transfer
funds through
Mobile next
time and get
a Starbucks
voucher
Identify: tasks possible on App
being done on other channels
repeatedly
Segment: Group customers
basis their behaviour
Inform: Convey, in a
targeted fashion,
the benefits of using the App
Guide: Train/Enable the
contact points to guide and
assist the customer effectively
to use the mobile app
CCC
E.g.. PIN
Change/regeneration
E.g.. Check past
transactions
BRANCH
Inertia to Adoption Lack of Awareness

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INCREASING ADOPTION IN EXISTING USER BASE
Existing Base Non Users Cold Users Regular Users
Independent
Mobile App Login
2 Factor Authentication:
Mobile No. + Debit Card No.
Mobile No. + Account No.
Mobile No. + Email ID
SMS Banking
Identify segments /cities
where app adoption is
hampered by network
issues/absence of smart
phone; Push SMS banking
Effective
Communication
Segment :
•Regular to heavy Users of
banking services not active on
any digital channel
•Users of higher age groups
Device Effective
Communication strategy to
decrease perceived risk
•Enable login through
Biometrics to restrict login
Barriers to Adoption Lack of Trust
Segmentation
Effective
Communication
Perceived
Utility
Perceived
Risk
Primary Research and analyzing stages and reasons of drop-out may give better insights to device appropriate strategies

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ENGAGING EXISTING USER BASE BETTER
Existing Base Non Users Cold Users Regular Users
CCC in Mobile App
Customer Chat Centre
Giving an in-app option to
chat with customer care
centre can increase the use
of app and customer
satisfaction manifold
GEN Y prefers to chat
•Users may not like to wade through
IVR options to talk to a customer
care executive
•In-App option to chat with customer
care executive will not only
circumvent the cumbersome IVR but
provide solutions on the go
M-Commerce and
Targeted Offers
Aim : Take part in
consumer journeys and
make them as smooth as
possible
•Mobile Recharge: Ability to
browse plans and set auto-
recharge for every month
•Bill Pay: Ability to register
by just clicking a pic of the
bill
•Onboard merchants which
are frequently used by a
majority: Movie tickets, Cab
/bus Booking.
•Tie up with a mega online
store like Flipkart/Snapdeal
One Click Payment

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LEVERAGING EXISTING CUSTOMER USERS
Existing Base
Personal Finance
Management
Intuitive
Visualization
•Tool to fetch
Assets/Income and
Liabilities/Expenses data
•Category wise assets
and Liability overview of
the customer relationship
•Pre-set standard
category wise
spend/saving thresholds
basis past data
Non Users Cold Users Regular Users
Incentivise Desired
Behaviour
Advice/Cross-Sell
•Basis the spend
patterns/ balance sheet of
the customer, assign
Badges. E.g. User with
high average credit card
spends/total spends on
‘E-Commerce’:
INTERNET CHILD
•Prompt him/her to use M-
commerce in app in
exchange of an e-com
voucher/cashback
•Leverage data to cross-
sell products
Eg. High balance in
savings account
Recommend
RD/FD/Mutual
Funds/Insurance basis
customer segment and
behaviour
•Allow users to receive
customized feed on
topics of choice
Gamification
These 2 can be undertaken
without PFM or Gamification
by leveraging data to increase
engagement

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LEVERAGING EXISTING CUSTOMER USERS
Existing Base
Infusing
Intelligence
Pro-Activeness
Mobile App should:
•Remind: Due dates of
Credit Card, Bill Payment,
Expiry of Offers etc.
•Advise/Recommend:
Offers basis spends,
Cross-sell products
basis user behaviour,
Tax saving investments
etc.
Non Users Cold Users Regular Users
PG Page Detection Geo-Fencing
When on a PG page,
customer has to:
•Search for the card
•Manually enter card
details
App should detect a PG
page and populate card
details on a smart
banner
Geo-Fencing can be used
to prompt highly relevant
offers to the users
Eg. Kotak Offer: Get a
donut free with any
coffee.
If one enters CCD outlet,
app should notify this
offer as a push
notification

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LEVERAGING EXISTING CUSTOMER USERS
Existing Base
Pro-Activeness
Non Users Cold Users Regular Users
PG Page Detection Geo-Fencing
Credit card bill payment of Rs. 25,600
due by 3rd May. Tap here to pay
Debit Card No: 4393 9345 6671 4211
Expiry Date: 10/17 CVV: 448
Get a free Donut with any Coffee in
CCD on using a Kotak Card

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LEVERAGING EXISTING CUSTOMER USERS
Existing Base Non Users Cold Users Regular Users
Cheque Deposit/Stop
Cheque
Many small business owners
use branches primarily for
cheque management.
Allowing users to perform
remote cheque deposit will
bring efficiency in system
Navigate to
ATM/Branch Loyalty Program
Camera
differentiates Mobile
from Web
ATM/Branch
addresses per se
add little value
Navigation to the
branch/ATM become utmost
important in tier-II and tier-
III cities where physical
network may not be as
extensive
Incentivise spends
through Net and
Mobile banking
Integrated Loyalty program
for Net and Mobile banking
for M-commerce and other
merchant transactions

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APPROACH
Goals
Means to the
Goals
How does increasing adoption rates, user engagement and adopting Mobile First strategy help?
Are these goals or means to the goals ?
Adoption
Benefits to Bank
Less pressure on
branch/manned
channels
Cost efficient
scalable channel
Benefits to
Customer
Lesser branch
visits/phone
banking use
Minimum barriers
to use for
managing txns.
Instant access
Ease of applying
to new products
Benefits to Bank
Increase in share
of mind
Stickiness of use
Increase in share
of wallet
Opportunity to
cross sell
Increase in RV
Benefits to
Customer
Lesser branch
visits/phone
banking use
Minimum barriers
to use. Instant
access
Engagement

14. Adoption: Why,
• PIN not received
• PIN received, not installed
• Installed not used
• Once or twice used
• What % use app
• Rural, urban
• Rural urban divide: bridge divide, free internet
• Urban: Net banking but not mobile app can be easily on-boarded
• If no. Is different from registered mobile no. Then you cannot install app-LHF
• Within app how many call customer care
• How many calls can be solved through app: can be asked to download the app. Can their pin be generated instantly
• PIN generation eg.
• Navigation to branch. Integrate with mobile app
• SMS of tracking
• See younger people data. Promote app to them- LHF
• Biometrics login: no need of pin etc.
• Breaking apps

15. • Social Media: fb page- how many users visit fb page, option to download app
• Twitter
• Movie ticket voucher on registering and making a transfer through
• SMS with voucher/gift
• Email: see behaviour of users not using mobile app, targeted emailer- focused on most used service-
• Bank agnostic app
• Usage: best price m-commerce. If you find cheapest we;ll refund
• No. Of services: see what processes are branch users
• No of services v/s promotion
• Offers se m-com
• In-app chat
• Path + Validation in app + call
• Credit Card etc. discount by using through app
• Managing personal finances ??
• Make the app indispensible. Suggest when to pay bills, gold, expiry of offers, tax reminders
• Search option in app
• Category wise spends: data to customer,

16. Mobile First
• ICICI
• Apply now
• Track
• Funds
• In virtual card
• RM to
Give pin and account no.
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In the long run, aim should be to eliminate branch visits to the
maximum possible extent

18. Benefits to Bank
• Customer Delight
• Efficiency
• Cost saving
• Cross sell
• Share of wallet
• Stickiness
• Cost saving
• increasing customer base
• Profitability
• Revenue generation
• Engagement/Share of Mind
• Customer acquisition
• Customer retention: Increasing psychological barriers to exit
• Higher ROI
• Instant Gratification
12/6/2020 18Rachita Rattan

19. • To unlock feature, open an account instantly
• Peer use is an influencer
• Incentivise word of mouth/referrals
• Mini app pre-installedin various mobile phones
• On net banking but not on mobile app
• Specificallytier-2, apps get imp as branches are not abundant
• Requests on call centre which can be done through mobile app
• When internet is not available. Error message- SMS banking details should be present
• Insurance premium (what can be done in net banking)
• Stop cheque/deposit cheque
• Stop change delete ECS
• I would like my mobile app to recommend a card/accountthat will offer me better rewards while paying for a specific purchase
• Badges like: Saver, Trader- accordinglysuggest products. Eg EMI suggestions,
• Search option
• Mobile Commerce
• Eliminate barriers to adoption
• Targeted approach: people who visit branch to do tasks can be instructed to download app
• SMS if net slow
• How to build trust in mobile banking: Biometrics
• PFM: Accordinglysuggest products
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