ING Hunt for Lions

2. Executive Summary
• Digital Banking is the future of Banking. Survey results indicate that 18-35 Age groups are more
likely to switch to a better bank with respect to digital services.
• The demographics of the Indian populace point to a younger population with 65% below the age
of 35.
• ING Direct’s simple approach to banking in Australia is paying rich dividends and it shows through
winning awards for the third consecutive year.
• A Ernest & Young Global Survey points out that simplicity is the major factor among respondents
to creating new customers as well as increasing customer retention.
• Hence the best strategy for ING Vysya bank would be to focus on customer retention through
adoption of the best practices at ING Direct in the short term, while increasing customer base
through innovative schemes in Online Banking by providing more E-commerce facilities and
targeting the age group of 13-35 through an effective marketing campaign in the long run.
• Unique approaches: Penetrating rural markets, RuPay network, e-commerce tie-ups

3. Digital Banking vs Branch Banking
• Why do customers buy from where they buy?
Digital Banking
24x7
Availability
Online
Shopping
Mobile Bill
Payment
Instant Fund
Transfer
Online Account
Management
• Weaknesses - security concerns, site disruption due to technical glitches, site navigation issues &
accessibility issues for people from remote areas

4. Digital Banking vs Branch Banking
• Why do customers buy from where they buy?
Branch Banking
ATMs Security Customer
Service
Cash
Deposits
• Weaknesses - More costlier to carry out transactions when compared to Online banking, Delay in
decision making because of limited powers of branches & inconvenience to the customers in
terms of travel and costs

5. Why Digital Banking is the way forward!
of the total people who were surveyed
were likely to change their bank, if they
found an alternative with better Digital
Banking services. 52%
Survey Result: How likely are you to shift to a
Bank that offers better Digital Banking Services
than your current one ?
of the population is less than 35 years of
age in India. If we consider their
preferences alone, then 65%
62%of those surveyed in the age group of Less
than 35 years said they were likely to
change their bank if they found one
offering better digital services

6. Road Map to Digital Banking
• From the survey it can be understood
that younger people prefer Digital
Banking to Branch Banking and vice
versa for older people.
• The future lies in Digital Banking as the
predicted age for the average Indian in
2020 is 29 years and with 65% of the
population lesser than 35 years.
• Currently digital banking is an extension
to branch banking. It is set to reverse in
the coming years as more people use
mobile banking which is the easiest
medium of access to digital banking for
the rural populace.

7. Tapping the market
• ING Vysya has a robust and uncluttered web presence
(ingvysyabank.com).
• The ING Vysya App developed in partnership with Mindtree, has been
downloaded 50,000 times in 2 months. 1
• ING Direct has been voted Australia’s best non-major bank for the
third consecutive year. 2
• To effectively leveraging these assets, ING Vysya Bank must grow the
numbers in an aggressive campaign by targeting new customers in
the age group of 13-35 years.

8. Savings Account
• To increase enrolment in savings account, The Zing savings account
with a personalized debit card offering can be introduced in schools
to teenage students.
• It can be rolled in 2 phases: Phase-I targeting Metros and Phase-II
targeting Tier 2 cities.
• Tie-ups with mobile e-recharge solutions such as Paytm, Freecharge
etc. to provide mobile recharge facility through SMS will increase the
rate of enrolment.
• The ability to personalize the debit cards will be more valued by
students than other age groups and should be emphasized

9. Education Loans & Financial Inclusion
• Most banks target students applying for higher educations by directly
contacting them on campus with Education loans.
• ING Vysya Bank while providing educational loans, can try to bundle
it with a debit card & online banking a/c facility. In the eyes of the
customer, it will be perceived as a bonus benefit and not as an
expense.
• With major competitors such as ICICI & HDFC becoming part of the
RuPay network, ING Vysya should not overlook it.
• By joining Jan Dhan Yojana scheme, ING Vysya can increase its rural
penetration.

10. RuPay Network
RuPay card is an alternative to Visa & MasterCard developed by
National Payments corporation of India
Advantages Disadvantages
Lesser
Processing
Fee
Faster
Transactions
No
Quarterly
Fees
• RuPay doesn’t have international acceptance, but
NPCI is working hard to rectify this by partnering
with Discover Financial Services and Japan Credit
Bureau.
• RuPay doesn’t offer credit card but it is expected to
do so by March 2015
• ING Vysya can offer RuPay cards in rural areas where international transactions. It can start
offering it in the urban market once it’s disadvantages are sorted out

11. Retaining Customers and Increasing Referrals
• A Global Survey by E&Y (Includes India) found that the most common reason for customers to
open/close accounts in the past year was their experience with Banks rather than rates/fees and
convenience and accessibility. Simplicity of the interactions increased consumer trust in the bank
and increased trust leads to loyalty in customers, bringing in referrals.
• In fact 41% of the people were willing to pay more for simpler experience and interactions.
• Improving customer experience is crucial to increasing current a/c & credit card numbers.
Reasons that customers opened or
closed accounts in the past 12 months

12. Term Deposits
7 days to
15 days
ING HDFC ING HDFC
4.00% 3.50%
16 days to
30 days
5.00% 5.00%
31 days to
60 days
5.50% 6.00%
61 days to
91 days
8.80% 8.25%
92 days to
181 days
8.90% 8.25%
182 days
to 364
days
9.00% 8.75%
365 days 9.00 % 8.75%
366 days
to 730
days
9.25% 8.75%
731 days
to 999
days
9.00 % 8.75%
1000 days 9.25% 8.75%
1001 days
to 1096
days
9.00% 8.75%
1097 days
to < 5
years
9.00% 8.75%
5 years to
10 years
9.00% 8.25%
Comparison between ING Vysya
& HDFC interest rates:
As can be seen, ING Vysya offers
superior interest rates when
compared to its competitor
HDFC.
However to increase numbers,
advocacy is needed. Advocacy
can only be achieved through
trust which increases with
simplicity of customer
interactions.

13. Online Partnerships
• The Bank completed a partnership with Indian Railway Catering and Tourism Corporation (IRCTC)
for online booking of railway tickets. Such initiatives have enabled the Bank to witness strong
growth in online payment transactions.
• In continuation with such initiatives, ING Vysya can partner with E-commerce sites such as
Flipkart, Amazon, Snapdeal in product launches. For example ING Vysya can offer a “X”% cashback
on the launch of Xiaomi Mi 3.
• In addition to Text Recharge services, ING Vysya can increase its customer base by bringing in
Online recharge of DTH, Electricity bills,etc.
• Partnership with travel sites such as RedBus and GoIbibo in terms of cashback offers such that it
can be redeemed only if they use the same card in the same website can increase customer
retention as well as customer base.

14. References
• References is included in the notes for each slide.
• Survey Report can be accessed at
https://huntforlions.typeform.com/report/gSzY6K/oKde
• Raw Survey data is attached to the email.
• (Karthick Raja_First Year_IIMTrichy.xlsx)