ING Hunt for Lions

2. EXECUTIVE SUMMARY
• Banks are one of the very few sectors that has been slow in
adopting digital technology. It just doesn't mean adding
new channels such as online and mobile banking. It means
striving to provide an enhanced user experience by
seamlessly integrating with the existing channels. This
integration shouldn't be at the cost of losing a loyal
customer who might prefer a traditional face to face
interaction but should be aimed at providing a seamless
transition platform that would initially entice and delight
the customer with a variety of new user friendly features.
This channel can never replace the branch banking but the
channels can always supplement each other to provide a
holistic user experience.

3. SWOT Analysis – DIGITAL BANKING
STRENGTHS W EAKNESSES
O
PPORTUNITIES T
HREATS
• Reduced operational cost due to
increase in self service
• Improved user-experience and
customized products
• Help in better regulatory
compliance
• Provides enhanced customer
value proposition
• High expectations from customer
• Matures and Baby bloomers are slow
in adopting
• Preference for face to face interaction
for Complex Products
• In some European countries full online
account is not legally allowed
• More engaging and personalized
• Cross and Up selling
• Customer data insights
• 85% reduction in time
• Better reachability through online
services
• Privacy and Security Implication -
Social Networks with Official Banking
Channel
• Telecommunications operators
• Regulatory changes – BASEL Norms,
Dodd-Franklin, FATCA

4. SWOT Analysis – BRANCH BANKING
STRENGTHS WEAKNESSES
• 75% of processing cost – front office
•Higher per transaction cost
•Requires huge investment and can be
unprofitable
•Regional imbalances – concentrated in
one part of the country
SWOT
•30-40% circulation of cash
replaced by digital transaction
• Increasing penetration of mobiles
and internet
• Increasing customer churn
•Space constraint and rising land prices
in crowded urban areas
Analysis
• Building personal relationship with the
customer
•Successful in cross-selling products
across channels
• Provides best client experience
• Customers preference for
Personal assistance - Complex Products
• Matures and Gen X which still prefer a
human touch
• Provide variety of products in a single
channel
OPPORTUNITIES THREATS

5. Digital Banking – MARKET RESEARCH
1 2 3 4 5 6 7 8 9
Mobile banking Branch Branking Online banking
Ease of access, Reliability, service level and
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
brand are considered to be the major factors
Research methodology
•2 focus group discussions
• 11 in depth interviews
• Questionnaire involving 105 responses
• Ex- Canara bank employee
• Current Citibank employee
Please refer to Appendix: Research report for more details
Key inferences
2
Online Banking is the most preferred
3
medium for any bank activity
80
60
40
20
0
1
2
3
4
5
6
7
8

6. Digital Banking – MARKET RESEARCH
Key inferences
Gen Y prefers Financial Management
Tool and facility to manage bills in one place
Gen X prefers Online Advisory Services
2
and Saving Money Tips
Reason for not downloading the app -
3
Lack of awareness of the benefits
Gen X Gen Y(25%)
Baby bloomers
CUSTOMER
PROFILING
• 80’s to 90’s
• Tech-savy
• High
maintenance
• pre 80’s
•Traditional
banking
• 19 40’s and 80’
•Prefer simplicity
of use
• Digital -enabler
1
21
31
3
24
3
5
Financial
Management Tool
User-friendly
interface
Online Video
Advisory Service
Manage/Pay bills at
one place
Saving money
advice/tips
Electronic Wallet
GEN X
GEN Y
PREFERRED ONLINE BANKING FEATURES
41
51
48
45
25
OPEN/CLOSE
ACCOUNT
FD
FMT
WEB CHAT
CUSTOMISATION

7. DIGITAL PRODUCTS AND SERVICES COMPARISON
ING VYSYA YES BANK CITY UNION KARUR VYSYA KOTAK
 X  Financial X
Management
Balance
Meter
Unique Mobile X
Balance
Meter
MAHINDRA
Money
Watch
Money
Monitor
Tool
 
YpayCash
 Financial X
Management
Tool
~
High

High Moderate

Product variety
Mutual
funds
purchase
and
redeem
mPOS

Banking
Feature
~
X
X Online FD
withdrawal
and closure
X
~ Moderate ~ Moderate

COMPETITORS

8. PRODUCT AND SERVICE IMPROVEMENT
1
2
4
5
6
3
NRO/NRE ACCOUNT - Online Account Opening Feature
CREDIT/DEBIT CARDS - Card to Card transfer feature
FIXED DEPOSIT – Sweep In and Out feature in Mobile
Banking
ONLINE AND MOBILE ACCOUNT – Option to Display
Balance (Included in the SETTINGS tab)
CASA ACCOUNT - Spending utilisation, Credit Card
Analysis, Current Account Budget Status
CURRENT ACCOUNT – Reelationship Manager not just
for Platina Accounts but for all types of accounts
SERVICE
IMPROVEMENT
PRODUCT
IMPROVEMENT

9. In-channel excellence Consistency across channels Multichannel integration
4.Multi-channel banking
Non-financial Services
Product
specific features
Digitising less
complex activity
1.Providing tips for saving amount and
providing new investment options
depending on the needs of the
customer
2. NRI account opening online (HDFC,
State Bank, ICICI)
3. Remote deposit capture (in
addition to the existing facsimile
printing facility)
4. The motto – The new face of
money – should be consistent across
all channels. Branches just act as a
controller and verifier.
5. Mobile money service and wallet
solution in addition to the existing
services
5. Financial
Solution Provider
6. Dashboard to provide the
management with best cross-sell
practices using Logistical Regression,
Neural Network and Decision trees
7. Setting up a smart bank is relatively
costly but provides differentiated
customer experience
7. Data integration and
analytics
Move towards omni-channel
strategy
1
2
3 4
5
6
7

10. CRM THROUGH MULTI-CHANNEL INTEGRATION
Enhance
Relationship with
Gen Y – Use non-financial
services
like investment
education websites
Online communities
for generating ideas
Integration among
different channels
Consolidate
Customer
Information
Predict
Customer
Preference
Personalize
Customer
Interactions
Optimize
Predictions
Advertise in
recharge sites, social
media and Shopping
Malls
Suggest products by
accessing the
cookies from
customers browser
Reduced number of
clicks
Enhancement of
direct interaction
tool
Buy right keywords
(online) and target
the best banner ads
Age and social
status can be initial
indicators

11. PERFORMANCE PERFORMANCE PARAMETERS
PARAMETERS
• DIGITISATION INDEX
FACTORS
- Ratio of digital transaction per year
- Number of digital products
- Number of customers
 Follows S-Curve and is a measure of
Channel adoptability, Penetration and
Diffusion
LEAD CONVERTION RATIO
 Number of customers added to
digital channel (online/mobile)
BASKET PROFITABILITY
Measure of Customer’s Profitability
 Indicator for efficiency of Cross-
Selling and up-selling
Customized
Products
Standard
low
interest
products
Branch
Banking
Digital
Banking

12. SUPPORTERS FOR DIGITISATION
z
FINANCIAL INCENTIVES for
new online users instead of
functional incentives
Gamification of online and
mobile services – enhance
user interface
Set up customer portal to
generate new product and
service ideas
Collaborate with educational
institutes to setup educational
sites that impart
knowledge to your
customers’ kids
Provide non-financial and
value-added services
0.05% Reduction in
Interest rate fro first
time users
Save your money –
Credit nearest whole
number according to
customer’s choice
Partnership with
telecommunication
companies for enhanced
customer services

13. REFERENCES
• http://www.atkearney.com/financial-institutions/ideas-insights/article/-/asset_publisher/LCcgOeS4t85g/content/reducing-complexity-in-
retail-banking-simple-wins-every-time/10192
• http://www.accenture.com/sitecollectiondocuments/pdf/accenture-consumer-us-retail-banking-survey.pdf
• http://www.ey.com/Publication/vwLUAssets/The_digitisation_of_everything_-
_How_organisations_must_adapt_to_changing_consumer_behaviour/$FILE/EY_Digitisation_of_everything.pdf
• http://www.pwc.com/en_GX/gx/banking-capital-markets/banking-2020/assets/pwc-retail-banking-2020-evolution-or-revolution.pdf
• http://www.kurtsalmon.com/uploads/Efma-Report-Phygital-Kurt-Salmon.pdf

14. THANK YOU