3. Executive Summary
Transactional and operational efficiency takes top priority in banking systems. The disruption caused by digitization would add value to
the bank and could cater to the changing consumer behavior trends. More than one in every four would consider a branch less digital
bank to brick and mortar branch. Indian youth would go for a bank which proactively recommends products and services which are
suited to their needs Therefore , a direct to customer , targeted banking service which runs on multiple integrated channels would prove
to drive customer delight.
Agenda Deliverables
• Identify reasons on why customers choose
a particular banking channel
• Identify ways to build a strong digital banking
platform for ING Vysya bank
• Analyze the products of ING Vysya Bank and their
way forward in digital banking model
Chathurya P, LIBA Hunt for the lions challenge 3
4
3
Introduction
Qualitative research &
Quantitative research
SWOT analysis
1
2
5 Conclusion
Digital banking platform model &
Product analysis
• Prepare a SWOT analysis for digital banking and
branch banking platforms
4. QUALITATIVE RESEARCH QUANTITATIVE RESEARCH
Phase Two
Exploratory
Research
Target
• Branch banking
customers
Techniques
• Depth Interviews:
face-to-face &
teleconferencing
(35 people)
• Projective
Techniques
Objectives
• Learn their
perceptions
• Identify delight
factors
Research Design
4
Phase Three
Descriptive &
Causal Research
Phase Zero
Laying the
Groundwork
Phase Four
Consolidation
Phase One
Exploratory
Research
Objectives
• Understand
various banking
channels
• Gain perspectives
on the way
forward
Techniques
• Secondary
Research
Target
• Digital banking
customers
Techniques
• Depth Interview:
face-to-face &
teleconferencing
(25 people)
Objectives
• Identify the
factors which
delighted them
• Identify pain
points
Target
• Branch banking
and digital banking
customers
Techniques
• Survey
Questionnaire
(100 people)
Objectives
• Create hypothesis
• Validate them
• Find behavioral
Descriptions
• Find Causal
relations
Objective
• Analysis of
findings
• Final
Recommendations
Chathurya P, LIBA Hunt for the lions challenge
5. Qualitative Research: Phase One- Digital platform
5
Tele-
Conferencing&
Face to Face
Loosely
Structured
One-on-One
10-15 minutes
each
Sample Size
25
Laddering
Technique
Influenced by
the
respondent’s
responses
Depth
Interview:
Teleconference
Random
Sampling from
customers
Chathurya P, LIBA Hunt for the lions challenge
Digital banking
customers
Identify the
factors which
delighted them
Depth interview:
Tele-conferencing
Depth Interview Guiding Principles
Identify levels of recognition
of various digital banking
channels:
• Top of the Mind
• Spontaneous
• Aided
Identify what features
delighted customers
Identify features which
could be replicated across
touch points to drive delight
6. Qualitative Research: Phase two- Branch Platform
Depth Interview Guiding Principles
Chathurya P, LIBA Hunt for the lions challenge 6
Branch banking customers
Learn their perceptions
Identify delight factors
Depth Interviews
Projective Techniques
Sample Size:
35
Hidden Issue
Questioning
aimed at
understanding
the pain points
Depth
Interview
Random
Sampling from
Branch banking
customers
Projective Technique
Identify levels of recognition
of from branch banking
• Top of the Mind
• Spontaneous
• Aided
Identify what delight points
and pain points were there in
branch banking customers
Obtain clues on possible
changes as well as new
additions, to drive delight
Methodology
• 50 telephone calls
• 20 Digital banking customers
• 30 Branch banking customers
• 10 face to face interviews
7. Phase I:Digital Customer Happy Points
• “I can save a lot of time by doing my transactions online!”
• “SMS alerts of all transactions are very useful. I can always cross check
when I tally it later”
• “ING vysya’s website provide information about all their latest
• “ I save a lot of cost through digital banking. No fuel charges, no energy
• “Whenever I have a doubt, I call the 1800 toll free number. It is very easy.”
• “The service is very prompt. That is one of the best things of ING Vysya”
Email updates
& SMS alerts
Personalized
services
Chathurya P, LIBA Hunt for the lions challenge 7
wastage and no time wastage ”
Time &
cost saving Latest
Easy access offerings
& use
Convenience
Speed of
transactions
Toll free
service
Accuracy
offerings which is very useful”
• “Digital banking is very helpful . Money transfers are done within fraction
of a second”
• “Good thing about ING Vysya online portal is that it is very simple and easy to
understand”
Phase II: Branch Customer Happy points
• “Bank personnel can hand hold me through all my transactions!”
• “It is a time of joy when I get to meet many of my fellow pensioners”
• “I get very personalized services. Bank manager treat me like a guest”
• “There is absolutely no security issue. I can verify my accounts real
time”
• “I don’t trust internet banking. There can be lot of frauds. Therefore I
prefer branch banking”
• “I am not a tech savvy person. I don’t understand banking online. I do
all transactions via my branch”
• “I am very comfortable with ING vysya’s branch services. No need to
panic”
Full security
Trust
Ancillary
services
Socializing
venue Direct
verification
No
complexity
Assistance
8. Phase I :Digital Customer Pain Points Phase II : Branch Customer Pain Points
Long queue
Low speed
Mistakes in
accounting
Unfriendly
behavior
Time consuming
Not available
24*7
• “Features are same for everyone, I need some sort of personalization”
• “While doing online transactions, I get a weird number in my account
summary. It would be better if they can give the website URL”
• “ I am 60+, branch banking is unavailable on Sundays. I need to plan my things
early”
• “some times, bank personnel takes a lot of time to respond. They are
unfriendly “
Chathurya P, LIBA Hunt for the lions challenge 8
Less
documentation
No full fledged
services
Lack of good
virtual assistant
En cash reward
points
No
customization
Transaction
summary
details
• “I cannot take DD online. Why can’t they provide that functionality?”
• “I need to visit branch to change my contact number. It would be better
if they have biometric verification system”
• “I often get confused between lot of products. Why don’t they provide a
small write up on all such details??”
• “Long queue inside the branch during first week of the month is disgusting!”
• “They do wrong credit and debit sometimes. I face all the problems thereafter
!”
9. SWOT analysis- Digital banking
• Loss of reputation
• Loss of data security
• Loss of privacy
• Convenience
• High Speed
• Cost saving
• 24*7 availability
• Accuracy
• Security
Strengths Weakness
Chathurya P, LIBA Hunt for the lions challenge 9
• Leverage of big data
analytics
• Biometric verification
• Mobile platforms
• Integrated marketing
communication through
social media platforms
• Less customization
•Absence of full fledged
services
• Lack of integrated
communication
•Non initiation of
ancillary services
Weakness
Threats
Strengths
SWOT
Opportunities
SWOT analysis- Branch banking
• Digital disruption
throwing branch into
oblivion
• Core banking solutions
leading to single
integrated Omni channel
banking
• High customization
• Full fledged services
• Direct verification
• Time consuming
• Prone to operational
risk
• High cost of operation
• Absence of 24* 7
services
• Sales and advisory
services
• Cross selling services
• Relationship
management center
• An Apple store
approach
SWOT
Opportunities Threats
10. Quantitative Research: Phase three
Survey questionnaire :Guiding Principles
Chathurya P, LIBA Hunt for the lions challenge 10
Branch banking customers
and Digital banking
customers
Create hypothesis and
validate them
Find behavioral
Descriptions and causal
relations
Survey Questionnaire
Sample
Size: 100
Hidden Issue
Questioning
aimed at
understanding
the pain points
Survey
Questionnaire
Students,
Professors,
Professionals
and Retired
people
• Identify levels of recognition
of from branch banking and
digital banking services
• Validate reasons for customer
preferences over a particular
channel
Identify the factors that could
be changed to create
customer delight
Obtain clues about customer
needs in the future banking
scenario
Survey questionnaire :Sample format
11.
12. Future expectations from Digital banking-Customer Verbatim
Full fledged
digital services
Digital
signature
1 Customer-
1 ATM card
Future pillars of digital banking
Chathurya P, LIBA Hunt for the lions challenge 12
• Industrialization
Flawless delivery on basic needs
• Virtualized banking services
Provide convenience ,choice and control
• Social needs and empowerment
Hyper connectivity
• Self fulfillment
Personalization and data intelligence
13. ING VYSYA PERGO- The Future Digital Banking Platform Model
“ING VYSYA PERGO- One stop solution low end disruption model for ING Vysya to cross upcoming digital hurdles”
Direct to customer banking service
“Striver” individuals- who value money
Low cost structure- No branch infrastructure needed
Higher interest rate on savings
Lower service charges
Less fees charged
A model to create a savings bank/FD account through
PERGO
Customer
places
order in
digital
portal
Chathurya P, LIBA Hunt for the lions challenge 13
Savings account
Fixed deposit [FD] account
Home loan and education loan
4 mutual fund portfolios
Telephone
Mobile devices
Desktop PC
Telephone
Email
Direct login
Existing
bank A/C
details
Money
deducted
from
source
Creation of
a Savings
bank
account
IFSC code existing other
bank account number
Digital signature
Necessary digital proof
Confirmation through
Email and SMS
Central
PERGO
clearing
house
Customer wants
to create a
savings
account/FD
account
14. ING VYSYA PERGO- The way ahead
For mutual funds, there are four major ING VYSYA funds which are sold through PERGO
• Large cap fund
• Medium cap fund
• Small cap fund
• Debt fund
Mix of these are provided to customers according to
aggressive, conservative and moderate risk appetite
Chathurya P, LIBA Hunt for the lions challenge 14
Four call centers across India
Mumbai
Chennai
Delhi
Kolkata
50,000 customers per day
Call center executives trained on
exclusively four products-Fully
focused and in depth training
THE BANK OF THE FUTURE-PERGO
Industria
lization
Virtualiz
ation
Social
needs
Self
happy
Standardize|Optimize|Cooperate|Safely hold
cash|Process transactions|Provide credit|Manage
account
Integrated
channels|When|Where|Why|Whom|Choice|Control
|Convenience
Information empowerment|Hyper
connectvity|Leverage of social media platforms
Self fulfiment|Data intelligence|Leverage of big
data analyics|Perosnalization
Customer delight
15. Financial viability study
Financial analayis for "PERGO"-ING VYSYA's digital banking platform
Start up requirements
Chathurya P, LIBA Hunt for the lions challenge 15
Value in Rs Crore
2015 2016 2017 2018 2019 2020
Interest earned 1200.00 1440.00 1728.00 2073.60 2488.32 2985.98
Other income 250.00 295.00 348.10 423.00 499.14 588.99
Total income under "PERGO" 1450.00 1735.00 2076.10 2496.60 2987.46 3574.97
Interest expense 1400.00 1435.00 1470.88 1507.65 1545.34 1583.97
Employee cost 300.00 309.00 339.90 373.89 411.28 452.41
Selling and admin expenses 200.00 205.00 210.13 215.38 220.76 226.28
Depreciation 12.00 12.15 12.30 12.46 12.61 12.77
Operating expenses 280.00 286.16 292.46 298.89 305.47 312.19
Misselenaeous expense 70.00 72.80 75.71 78.74 81.89 85.17
Total expense under "PERGO" 2262.00 2320.11 2401.37 2487.00 2577.35 2672.78
Operating profit under "PERGO" -812.00 -585.11 -325.27 9.60 410.11 902.19
• Break even to reach from III rd year of operation.
• PERGO interest earned growth estimated to be 20 % YoY
• Operating expenses are very less compared to traditional model as there is no
branch infrastructure
• Initial marketing spend for “PERGO” will be high as trust factor and fool proof
model of PERGO to be communicated to customers
• Software expenses to be spent on network design, architecture and software
implementation using various technologies and anti data theft and fraud proof
soft wares
• Hardware requirements include that of networking devices such as routers, data
8000.00
7000.00
6000.00
5000.00
4000.00
3000.00
2000.00
1000.00
Operating Profit YoY
servers etc 0.00
1 2 3 4 5 6
Operating profit under
"PERGO"
Total expense under
"PERGO"
Total income under
"PERGO"
Value in Rs Crore
Software expenses 1400
Hardware expenses 750
Employee hiring 60
Employee training 120
Marketing spend 320
Misseleneous 150
Total spending 2800
Investment(Own fund) 2800
16. ING Vysya- Products analysis and their way forward in PERGO framework
Wealth Management Services
• Company snippets for investment recommendation to be made and communicated
regularly
• Current “Apply now” option to be directed to PERGO portal
PERGO Secure Wallet
• Pay through PERGO e-Wallet
• No need to type card number , expiry date every time
• Encrypted, safe and secure payment route
Zing , Zwipe and Platina Savings account
• Zings account to be combined with educational account within PERGO framework
• Zwipe account can be modified to encash earned reward points
• Regular update calls to customers to detail about products and account facilities
Term deposits
• As infrastructure costs are less, additional interest rates can be given in PERGO accounts
• Interest accrual and maturity dates can be notified earlier and ask for deposit renewals
• Current “Apply now” option to be directed to PERGO portal
NEW PRODUCT DEVELOPMENT
“PERGO INSTANT”
Quick money transfer
services across 25 countries
• Enables to send money across
nations within a click of a
laptop, mobile or tablet
• Low services charges
• Safe and secure
• Locked in exchange rates
• Regular tracking on money
transit Thank You!
Please note: Survey response sheets and reference files for secondary
research are attached along with the PPT in the mail
Chathurya P, LIBA Hunt for the lions challenge 16
17. References
Documents
• Asia Financial Institutions- Digital Banking in Asia; Winning approaches in a new generation of financial services.pdf
• 201407digitaldisruptioninbanking- accentureconsumerdigitalbankingsurveyonline-140702114251-phpapp02.pdf
• 20130328webinartrendsengagementbanking-v2-130328140603-phpapp02.pdf
• ABASurveyShowsMoreConsumersPreferOLB.pdf
• accenturereporteverydaybank-140317235903-phpapp01.pdf
• bringthebranchexperiencetotheatm-121009084817-phpapp01.pdf
• Banking-on-Data-Science.pdf
• How-Banks-Can-Use-Social-Media-Analytics-To-Drive-Business-Advantage.pdf
Websites
• www.ingvysyabank.com
• https://www.xoom.com
• https://www.payzippy.com/
• http://www.hdfcbank.com/
• http://www.rbi.org.in/
• www.moneycontrol.com
• www.nseindia.com
• www.sbi.co.in
• www.icicibank.com
• www.khanacademy.org
Chathurya P, LIBA Hunt for the lions challenge 17