The document discusses ABC bank's plans to launch mobile banking services. It summarizes RBI guidelines for mobile banking and key risks like anonymity. It also discusses Anjali's plan to use SERVQUAL and QFD tools to understand customer expectations and requirements. This will help design attractive mobile banking services and identify specifications to gain a competitive edge. The document also provides an overview of the current mobile banking landscape in India and common mobile banking services provided.

1. Service design for mobile
banking
Presented by:
Avvab, Ayush, Lokesh Manmeet, Mehak, Prabhat,Prakhar,
Rajat , Ronit & Zeeshan

2. Case facts:
 ABC bank had been a pioneer in automation and
highly regarded for its technology initiatives.
 Anjali- in charge of Special Projects Cell
 Enjoyed an edge over other mid-cap banks by
effective deployment of IT and networking for
managing its costs of service delivery and efficiency of
operations.
 Directors are aware of successful m-banking
applications in developing countries like Philippines,
South Africa and Kenya.

3.  In Oct 2008, RBI issued guidelines for banks to
provide mobile banking among different accounts of
banks.
 Non-banking transactions are not yet permitted.
RBI guidelines:
 Allowed to banks-licensed, physical presence in
India, implemented core banking.
 Domestic rupee transactions, daily cap for fund
transfer and purchase of goods/services-Rs.50,000
per customer.
 Governed by KYC, AML and CFT.
 Secure and ensure confidentiality, integrity,
authenticity and non-repudiability

4.  Risk factors in m-banking are anonymity,
elusiveness, rapidity and poor oversight.
 Anonymity and elusiveness can be managed
after completion of UID.
 Attractive design of service would be key to
successful launch of m-banking.
 Decides to use SERVQUAL tool to determine
the gaps in customer expectations and their
perceptions.
 Intends to get responses from urban and rural
customer compiled and analyzed on 5
categories: reliability, assurance, tangibles,
empathy and responsiveness.

5.  Plans a cross functional team to identify design
characteristics of m-banking and then perform
cost benefit analysis to get competitive edge in
market.
 QFD will translate customer requirements into
product or service specifications.
 She want to build an m-banking USP to attract
high value customers from competition as well
as new customers from rural areas which is a
very long run process.
 By this we can say she should follow thorough
analysis and professional service design.

6. `The QFD technique is based on the analysis of the clients’
requirements, which normally are expressed in qualitative
terms, such as: “easy to use”, “safe”, “comfortable” or
“luxurious”
Client
Require
ment
Design
Require
ments
Process
characteris
tics
Market
Entry

7. PREVENTIVE DESIGN
REDUCTION OF
DEVELOPMENT TIME
CLIENT SATISFACTION

8. The QFD methodology is based on the development of a
series of matrices called “House of Quality”

10. Benchmarking:
 The QFD technique allows for a competitor assessment
with Benchmarking. The competitor’s services are
compared to the company’s services.
 Benchmarking is carried out for “What” and “How”
 The two companies’ services are compared along the lines
of client requirements (“What”)
 In the technical competitor comparison (“How”s), the
design requirement fulfilment will be compared.

11. What are the Servqual
Gaps?
 Gap 1: The difference between management
perceptions of what customers expect and
what customers really do expect
 Gap 2: The difference between management
perceptions and service quality
specifications - the standards gap

12. Gap 3: The difference between service quality
specifications and actual service delivery - are
standards consistently met?
Gap 4: The difference between service delivery
and what is communicated externally - are
promises made consistently fulfilled?
Gap 5: The difference between what customers
expect of a service and what they actually
receive

13. The Five Key Service
Dimensions
 TANGIBLES - the appearance of physical facilities,
equipment, personnel and information material
 RELIABILITY - the ability to perform the service
accurately and dependably
 RESPONSIVENESS - the willingness to help
customers and provide a prompt service

14.  EMPATHY - a combination of the following:
 Access (physical and social) -
approachability and ease of contact
 Communication - keeping customers
informed in a language they understand
and really listening to them
 Understanding the customer - making the
effort to get to know customers and their
specific needs

15.  ASSURANCE - a combination of the following
 Competence - having the requisite skills and
knowledge
 Courtesy - politeness, respect, consideration
and friendliness of contact staff
 Credibility - trustworthiness, believability and
honesty of staff
 Security - freedom from danger, risk or doubt

16. Examples -
Application of the SERVQUAL Model in Diff
erent Contexts
 To assess the quality of physiotherapy services
 Measuring service quality in information
technology centre
 To determine the relative importance of critical
factors in delivering service quality of banks in
Malaysia

17. Recent status of mobile
banking in India:
 Primarily forced by convenience and promptness.
 It is convenient, low cost channel and not location
specific like ATM.
 Month-on-month transactions carried out through
mobile banking are surging both in volume and value
terms.
 Increasing smart phone adoption and initiatives such
as media promotions and customer education
programs for mobile banking have led to this uptrend.

18.  Fast growing transactions through mobile banking-
Prepaid mobile recharges, DTH recharges, ticket
bookings (movies/travel) .
 The key players in the mobile banking market in India
are ICICI Bank, HDFC Bank, SBI Bank, Axis
Bank, Canara Bank, Syndicate Bank, Bank
of Baroda etc.
 The SBI group dominates this space in volume terms
with an overall share of 67.4 per cent in total
volumes.
 Private and foreign banks follow, with an overall share
of 30.1 per cent in November.

19.  Around 3% of SBI's and 10million of ICICI Bank
customer base are currently registered for mobile
banking.
 According to RBI data, a total of 3.7 crore mobile
transactions took place between February and
November 2012, jumping around 1.7 times in volumes
over this 10-month period.
 Currently there is no cap on per-day transactions
for encrypted transactions in banking channels,
including mobile banking which are set by individual
banks depending on their risk perception of the
respective channels.

20.  However, for unencrypted transactions, such as those
through SMS, the RBI has set a limit of Rs 5,000 per
day.
 According to the MasterCard Mobile Payments
Readiness Index, India ranked 21st among 34
countries with the score of 31.4 on a scale of 100.
 It is data-driven survey of the global mobile payments
landscape which relies on an analysis of 34 countries
and their readiness to use three types of mobile
payments: person to person, mobile e-commerce and
mobile payments at the point of sale.

21.  It also points out that consumers in India have not
yet fully embraced mobile payments. Only 14% of
Indian consumers are familiar with both P2P and m-
commerce transactions, and 10% are familiar with
POS transactions.
 Singapore topped the charts with a score of 45.6
followed by Canada and the US with scores of 42
and 41.5, respectively.

22. Fund Transfer, deposits and Payment
 Domestic and international fund transfers
 Micro-payment handling
 Mobile recharging
 Commercial payment processing
 Bill payment processing
 Peer to Peer payments

23. Investments
 Portfolio management services
 Real-time stock quotes
 Personalized alerts and notifications on security prices.

24. SMS Banking
 SMS banking services are operated using both push and
pull messages.
 Push messages are those that the bank chooses to send
out to a customer's mobile phone, without the customer
initiating a request for the information.
 Typically push messages could be either Mobile
marketing messages or messages alerting an event which
happens in the customer's bank account, such as a large
withdrawal of funds from the ATM or a large payment
using the customer's credit card, etc.

25. Support
 Status of requests for credit, including mortgage approval, and
insurance coverage
 Check book and card requests.
 Exchange of data messages and email, including complaint submission
and tracking
 ATM Location.

26. Mercl