ING Hunt for Lions

2. Executive Summary
• It’s a high time now that Banks specifically private banks get into full fledged digital operations. Banks should
understand that their approach now should be Customer-Centric which delights the user and provides him
with convenience of carrying out banking transactions from wherever and whenever he wants
• Having said that some of the private banks such as ICICI Bank, Kotak Mahindra Bank & Axis Bank have scaled
up their activities towards Digital adoption of their products with the necessary technical enhancements along
with following the norms set upon by RBI
• Along with the Marketing and promotions of the services that will be provided by Banks on a digital platform,
they also need to restructure their organizational structure and removing barriers for Digital Strategy. ING
Vysya needs to work on the back end that is required in order to set up a full functional Digital operation
feasible and viable
• The scope of Digital banking is quite appealing, there has been remarkable growth in the number of
NEFT/RTGS transactions last year as compared to 2012 and even more when considering Internet Banking,
Online transactions through Credit/Debit Card which depicts us the mood of Indian Consumer that is shifting
towards digital
• Matter-of-fact that RTGS grew from 941 INR trillion to 1026.4 INR Trillion from the span of 2010 to 2012,
Mobile payment rose to 229% in 2013 as compared to previous year
References: Cognizant Business Consultancy & Accenture Consultancy, Reserve Bank of India

3. SWOT Analysis for Digital Banking
Strengths Weaknesses
Opportunities
Threats
• Customized Personal attention
• Low Cost induced per Customer
• Ease of Convenience
• Customer can carry transactions from
anywhere at anytime
• Huge savings for banks as less paperwork
will be Involved
• Less Time required, automated process
• Increased Reach & Marketing in reduced
costs
• High bank service charges.
• Poor technology infrastructure
• Ineffective risk measures
• Easy Access of internet banking account
by wrong people through email ids
• When the server is down the whole
process is handicapped
• Banks provides all services through
electronic computerized machines and this
creates problems to the less educated
people
• Capital requirements
• Huge investment in technologies
• Low awareness amongst traditional users
• Increasing risk management expertise
• Advancement of technologies, strong
asset base would help in bigger growth
• India’s internet penetration is Increasing,
hence more opportunities

4. CASA Products of ING Vysya Bank
Features
Genereal
Current A/C
Comfort
Current A/c
Advantage
Current A/C
Orange
Current A/c
Platina
Current A/c
AQB (Rs.) 10,000 25,000 50,000 1,00,000 5,00,000
Features
Platina
Savings
A/C
Zwipe/Zwip
e Classic
SavingsA/c
Orange
Savings A/C
Aspira
Salary A/c
Advantage
Salary A/c
Zing
Savings A/C
AQB (Rs.) 1,00,000
25,000/20,00
0
10,000 Zero Zero 2,500
Current Account
Saving Account

5. Comparison with other Banks
Bank A B C
ING Vysya Platina Account
Formula Saving
Account
Orange Saving Account
ICICI
Titanium Privileged
Account
Gold Privileged
Account
Savings Account
HDFC
Platinum
Account
Saving Max
Account
Regular Savings
Account

6. Research Analysis
Percentage of Individuals
Preferring Branch Banking
13%
5% 4%
78%
20-30 30-40 40-50 >51
Percentage of Individuals
Preferring Digital Banking
54%
20%
15%
11%
20-30 30-40 40-50 >51
Reason for preferring Bank branching instead of Net banking
0% 5% 10% 15% 20% 25% 30% 35% 40%
Prefer Personal Touch
Satisfied with Bank Branching
No internet Access
Security Issues

7. Scope of Digital Banking
1100
1050
1000
950
900
850
2010-11 2011-12 2012-13
RTGS
• RTGS have increased from 1900 INR Crores in
FY2004 to 1026 lakh Crores in FY2013
• NEFT has rised from 17100 INR Crore in FY2004
to 29 lakh crore in FY2013
• Credit Cards payment have grown 7 seven times
from 2004 till 2013 and it hovering around Rs 1.2
Lakh crore
• Debit card payment have increased to 15 times to
around Rs 74300 Crore a year in 2013
INR Trillion
References: Cognizant Business Consultancy & Accenture Consultancy, Reserve Bank of India

8. Scope of Digital banking
Increase in the Shift to Digital payments
6000
4000
2000
0
Average monthly Credit Card
Usage in INR
2010-11 2011-12 2012-2013
300
200
100
0
Average monthly Debit Cards
usage in INR
2010-11 2011-12 2012-13
References: Cognizant Business Consultancy & Accenture Consultancy, Reserve Bank of India

9. 7 Strategic areas to consider
Infrastructure:
Few Banks have integrated infrastructure in place to enable the
seamless retrieval,
storage and distribution of information and data,
both up- and downstream.
Data:
Precise information is the key to understanding bank customers
and creating unique digital personas for tailored interactions.
Financial instruments and transaction
Content:
An enterprise content management roadmap
for digital banking includes storage, management,
workflow, process, integration, BI, analytics, reporting,
information architecture meta-model, content type, and
lifecycle and syndication methodology
. Business process:
Process components include a
service orientation, governance, technology adoption,
process orchestration, tuning and optimization, rules
engine adoption and enterprise service bus adoption
Digital Strategy

10. Strategic Areas to consider…
Analytics:
Analytics capabilities include multi dimensional analysis by geography, customer type, IVR path,
and speech to text. They also include data, Web site and real-time content analysis, user profiling and
segmentation, campaign optimization, time and path correlation, frequency and monetary analysis.
Also important is the ability to track customer behaviour to correlate with revenue-driving activities
and nurture cross-selling opportunities.
Social and mobile:
Information must be accessible from anywhere and from any mobile form factor. Other key
components include collaboration for external client facing business applications, authentication and
access security
User experience:
A consistent user experience needs to be provided across all major interaction touch points. Other
key factors include an information architecture, personas, wireframes, screen flows (process UI),
visual design, interactive mockups, campaign management, branding, search engine optimization,
user experience and session management, responsive Web design, usability, prototyping and UI
technology.
References: Cognizant Business Consultancy & Accenture Consultancy

11. Digital Banking’s Multi-dimensional Attributes
Channels: For smaller banks, a mobile
channel strategy may be the best choice
rather than investing in a state-of-the-art
digital branch infrastructure. For larger
banks, a diversity of branch designs is an
option, as are kiosks, smart ATMs, digital
recognition technology, video and enhanced
personal banking tools and offices.
Partnership and acquisition models: Banks
can offer digital services directly, or they can
partner with or acquire young companies to
gain digital capabilities and processes. BBVA
recently acquired Simple, an American online
banking platform, for $117 million.
Revenue models: E-commerce business
models build on the potential for generating
multiple transactions from individual
customers. Online banking goes beyond
single transactions by focusing on
interactions and loyalty that serve to
maximize customer lifetime value.
References: Cognizant Business Consultancy & Accenture Consultancy

12. Digital Banking Enterprise Roadmap
A bank’s choice of digital
business model is heavily
influenced by factors:
• Processes for sales,
customer acquisition and
customer service.
• Customer experience with
automation, self-service and
assisted service.
• Product pricing and
design, as well as the cost
structures supporting them.
• Underlying incentives and
compensation systems.
References: Cognizant Business Consultancy & Accenture Consultancy

13. Breaking Organizational Barriers
Building a Digital Organization Structure
• Many banks operate in silos that do not offer integrated
service offerings, digital or otherwise. Such
compartmentalization is the result of traditional
organizational management approaches that segregated
offerings by and within lines of business and by product
and channel.
• However, out-dated silo structures run counter to
digital banking’s holistic view of customers, and they
have played a large part in the industry’s painfully slow
transition to online banking.
• Digital banking breaks through organizational barriers.
It compels banks to rethink organizational constructs, as
well as revenue and profitability recognition across the
enterprise
• The reorganization includes merging current lines of
business management and the enterprise-level product
and technology functions, as depicted in Figure 6.
Removing Organizational Barriers
References: Cognizant Business Consultancy & Accenture Consultancy

14. Conclusion
Looking at the scope of the digital growth in the country along with
the advent of new Internet start-ups in the country, the general trend
of people is shifting towards having digital life. ING Vysya could
command and capitalize this growing potential by placing their
products digitally paired with aggressive marketing campaign which
could create a niche sector in the market and get an early mover
advantage. Having said that ING Vysya should also invest and make
sure that there Digital system is robust enough to handle this
increasing demand and cater the needs of the people.