case study based

1. SERVICE DESIGN FOR
MOBILE BANKING
Presented by:
 DHRUV GOYAL
 DHRUV JHAWAR
 DISHA SRIVASTAVA
 DIVYAARORA
 DIYANSHU PUJARA
 DUSHYANT DHANTA
 GAURAV
 GAURAV CHUGH
 GOKUL SOOD
 PRAVESH
Submitted to:
Prof. Pravesh Ghosh

2. CASE FACTS:
 ABC bank had been a pioneer in automation and highly
regarded for its technology initiatives.
 Anjali is 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.
 In Oct 2008, RBI issued guidelines for banks to provide
mobile banking among different accounts of banks.

3. 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- reputability.

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.

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
Requirem
ent
Design
Requirem
ents
Process
characterist
ics
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
 Gap 3: The difference between service quality
specifications and actual service delivery - are
standards consistently met?

12. 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
 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

14.  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

15.  Q 1. Explore the latest provisions of RBI for mobile
banking. Based on these, what should be Anjali’s approach
– thorough analysis and professional service design or
quick solution? Why?
 Banks which are licensed, supervised and having physical
presence in India, are permitted to offer mobile banking
services. Only banks who have implemented core banking
solutions are permitted to provide mobile banking services.
 The services shall be restricted only to customers of banks
and/or holders of debit/credit cards issued as per the extant
Reserve Bank of India guidelines.
 Only Indian Rupee based domestic services shall be
provided. Use of mobile banking services for cross border
inward and outward transfers is strictly prohibited.

16.  Banks may also use the services of Business Correspondent
appointed in compliance with RBI guidelines, for extending
this facility to their customers.
 The guidelines issued by the Reserve Bank on ‘Risks and
Controls in Computers and Telecommunications’ vide
circular DBS.CO.ITC.BC. 10/ 31.09.001/ 97-98 dated 4th
February 1998 will apply mutatis mutandis to Mobile
Banking.
 The guidelines issued by Reserve Bank on “Know Your
Customer (KYC)”, “Anti Money Laundering (AML)” and
“Combating the Financing of Terrorism (CFT)” from time
to time would be applicable to mobile based banking
services also.
 Banks shall file Suspicious Transaction Report (STR) to
Financial Intelligence Unit – India (FIU-IND) for mobile
banking transactions as in the case of normal banking
transactions.

17.  According to us, The guidelines issued by the Reserve
Bank on ‘Risks and Controls in Computers and
Telecommunications’ vide circular DBS.CO.ITC.BC. 10/
31.09.001/ 97-98 dated 4th February 1998 will apply
mutatis mutandis to Mobile Banking, this should be
Anjali’s approach as she had done her MBA with
specialization in “Telecommunication Technology &
Management” and there are some risk factors presented in
mobile banking.

18.  Q 2. Explain, how can QFD help in service design?
 The purpose of QFD is to translate customers’ vague
statements into actionable design specifications.
It also provides an objective, structured forum in which
people from various functions of the design and production
process can communicate their needs and opinions on the
structure of the service. QFD is an approach, not a rigidly
designed set of procedures. But although firms must adapt
the methods of QFD to suit their own particular needs,
certain common tools are employed by all users of QFD.
The central tool of QFD analysis is a diagram called the
House of Quality.

19.  Q 3. Give illustrative examples to explain how SERVQUAL
framework would help in designing m – banking services?
 SERVQUAL helps to assess a company’s service quality
along each of the five SERVQUAL dimensions. For
example – ABC bank carries out the servqual survey to
know where the m-banking service stands in the perceptions
of the consumers.
 It helps to track customer’s expectations and perceptions
over time. For example – ABC bank wants to compare its
last year score with the current year so as to improve m-
banking service over time.
 This framework helps to compare a company’s servqual
score over other competitors. For example – ABC bank
wants to compare its score with XYZ bank to see whose
service is better.

20.  Servqual framework identifies and examines customer
segments that differ significantly in the assessment of a
company’s service performance.
 Lastly, with the help of this framework the internal service
quality can also be assessed i.e.; interdepartmental
comparison.

21.  Q 4. Explain the recent status of m – banking in India?
 Mobile banking in India is set to explode – approximately
43 million urban Indians used their mobile phones to access
banking services during quarter ending August, 2009, a
reach of 15% among urban Indian mobile phone user.
 Checking account balances is the most popular banking
service used by urban Indians with almost 40 million users
followed by checking last three transactions, 28 million and
status of cheques with 21 million users.
 Mobile banking is popular among the Rs.1 to 5 lakhs per
year income group with almost 60% of mobile banking
users falling in the income bracket, an indicator of adoption
of this service by younger generation.

22.  Q 5. What are the possible business applications of m –
banking?
Few applications are as follows:
 Check balances and statements
 Make payments
 View and set up alerts
 See your business and your own personal accounts in one
place
 Allow employees to see your business transactions within
Mobile Business Banking using their own log on details.

23.  Q 6. What are the possible applications of m –banking for :
1. Rural Development & Agriculture -
• Akshaya
• Bhoomi
• Drishtee
• E – choupal
• Gyandoot
• N – logue
2. Micro – financing –
• Non-availability of network connection
• Cost of network connectivity (air-time) to access data
• Security of confidential data transmitted/received over the air
• Speed of transactions

24.  3. M-PESA for poor people, farmer and daily wages people
by VODAFONE –
The initiative is currently up and running in Rajasthan,
India’s largest state, where a pilot allows HDFC customers
to enjoy basic banking services at the 2,200 retailers that
support the initiative across the state’s 320 villages and 54
towns.
 4. Payment gateway for NGO
• One Time Payment Only
• Payment Gateway can be integrated with any bank.
• Payment Gateway cost depends up on plan.
• Payment Gateway system can be integrated on their
existing website or they can set-up new website for same.