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    Retail Banking in India

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    Ch Tarun
    This document discusses retail banking in India and strategies adopted by banks. It notes that retail banking refers to banking services for individual consumers and is growing in India. New age banks are using strategies like constant innovation, quality service, new delivery channels, market research, and cross-selling. Banks like SBI are transforming retail banking through measures like expanded access, core banking technologies, improved infrastructure, and easier digital services. Adopting operations like retail stores could help banks succeed in India by focusing on customers, segmentation, relationships, and competition.

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    Retail Banking in India

    Uploaded by

    Ch Tarun
    93 views20 pages
    This document discusses retail banking in India and strategies adopted by banks. It notes that retail banking refers to banking services for individual consumers and is growing in India. New age banks are using strategies like constant innovation, quality service, new delivery channels, market research, and cross-selling. Banks like SBI are transforming retail banking through measures like expanded access, core banking technologies, improved infrastructure, and easier digital services. Adopting operations like retail stores could help banks succeed in India by focusing on customers, segmentation, relationships, and competition.

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    This document discusses retail banking in India and strategies adopted by banks. It notes that retail banking refers to banking services for individual consumers and is growing in India. New age banks are using strategies like constant innovation, quality service, new delivery channels, market research, and cross-selling. Banks like SBI are transforming retail banking through measures like expanded access, core banking technologies, improved infrastructure, and easier digital services. Adopting operations like retail stores could help banks succeed in India by focusing on customers, segmentation, relationships, and competition.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    93 views20 pages

    Retail Banking in India

    Uploaded by

    Ch Tarun
    This document discusses retail banking in India and strategies adopted by banks. It notes that retail banking refers to banking services for individual consumers and is growing in India. New age banks are using strategies like constant innovation, quality service, new delivery channels, market research, and cross-selling. Banks like SBI are transforming retail banking through measures like expanded access, core banking technologies, improved infrastructure, and easier digital services. Adopting operations like retail stores could help banks succeed in India by focusing on customers, segmentation, relationships, and competition.

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    of 20

    RETAIL BANKING

             
             IN INDIA

    PRESENTED BY: (GROUP 4)

    SAKET RARA

    SAGAR NIKAM

    SACHIN MORE

    NITIN DAFADE

    GAURAV KUMAR

    MITHUN SADAVARTE

    DEEPAK DODDAMANI 
    SUMMARY 
    RETAIL BANKING: Retail banking refers to 
    banking in which banking institutions execute 
    transactions directly with consumers rather than 
    corporations or other banks.

    Services offered includes : Savings and checking 
    accounts, mortgages, personal loans, debit cards, 
    credit cards and so forth.

    Indian retail banking is showing phenomenal 
    growth 

    Key drivers: Increased consumerism, Internet, 
    Emergence of  new age companies, technology.
    SUMMARY CONTINUED…..
    FIVE FOCUS AREAS:
    Imagination
    Emotional Connection
    Functional & technical advantage
    Personalized contact 
    Testing & Improvement 

    THE FIVE COMMANDMENTS
    Market offering & positioning 
    Customer relationships
    Competitors study 
    Customer care & feedback 
    Employees satisfaction
    THE RETAIL BANKING 
    STRATEGIES ADOPTED BY A FEW 
    NEW AGE BANKING 
    ORGANIZATION IN INDIA.
     DISCUSS…
    RETAIL BANKING STRATERGIES 
     Constant innovation in products, services to 
    match the requirements of the customer 
    segment.
     Quality service and quickness in delivery.

     Introduction of new delivery channels

     Tapping of unexploited potential and increasing 
    the volume of business
     Detail Market research

     Cross selling of products

     Business process outsourcing

     Tie­up arrangements
    RETAIL BANKING STRATEGIES 
    CONTINUED….
     Fixed and unfixed Deposits, (cluster deposits 
    which can be broken into smaller units to help 
    meet depositors’ overdraft without breaking up 
    entirely)
     Centralized database for ‘any branch banking’

     (whereby the customer can access his account in 
    any of the branches)
     Room services (whereby the customers are 
    visited at their residences offices to enable them 
    to open their accounts)
     Automatic teller machines

     Tele banking network

     Extended banking time 

     Courier pickup for cheques and documents 
    WHAT ARE THE STEPS TAKEN 
    TOWARDS TRANSFORMING 
    RETAIL BANKING BY BANKS LIKE 
    SBI?
    STEPS

     Presence And Availability
     Core Banking
     Extended Hours, Quality & Quickness in 
    Delivery
     Better Infrastructure
     Make Routine Tasks Easier And Less Time 
    Consuming
    ­ Net Banking
    ­ ATM Centers
    ­ Handy Fund Transactions
     Merger/Acquisition Process
    ­ Imperial Bank Of India
    ­ State Bank Of Saurashtra, Cochin, Travancore, Indore 

     Services, Product Range, Group Companies
    SBI­­­­
    ­ Capital Market Ltd.
    ­ Mutual Fund
    ­ Cards And Payment Services
    ­ Factor And Communication Services
    3.  SHOULD  RETAIL  BANKING 
    BE  TREATED  LIKE  RETAIL 
    STORES  IN  TERMS  OF  ITS 
    OPERATIONS  TO  MEET  WITH 
    SUCCESS  IN  INDIA  AS 
    SUGGESTED BY BCG? 
    PRESENT SCENARIO
     Indian  retail  banking  has  been  showing  phenomenal 
    growth
     In 2004­05, 42% of credit growth came from retail
     Over the last 5 years CAGR has been over 35%
     Retail credit level crossed Rs.189K Crore in 2004­05
     Market  has  transformed  into  a  ‘buyer’s  market’  from  a 
    ‘seller’s market’
     Comprises  of  multiple  products,  channels  of  distribution 
    and multiple customer groups
    ECONOMY VS. RETAIL 
    BANKING
     Retail  assets  are  just  22%  of  the  total  banking  assets  of 
    India
       Contribution of retail loans to GDP:
    India  6% China 15 %, 
    Thailand  24% Taiwan  52%
       Indian population below 35 yrs of Age – 70 %
          Reach  of  Formal  Banking  Channels  –  20­25%  of  Indian 
    population
                                       Source: Cygnus Industry Insight
    MARKET SHARE: RETAIL LOAN ­ 2005
    Consumer
    Durables
    7%

    Auto
    28%
    Home
    49%

    Other personal
    Loans
    16%
    BANKING LIKE RETAIL STORE
     “Any where”, “Any time” Banking
     Improved processes/Bundled product offerings
     Faster service/Reduced TATs
     Customer specific products/offerings on a regular basis
     Focus on understanding customer needs/ preferences
     Segmentation/Differentiation of customers
     Building relationships
    RETAIL BANKING V/S RETAIL 
    STORES 
    SIMILARITIES: 
    2) Customer oriented approach 

    3)  Stiff competition to be tackled

    4)  Dynamic business environment 

    5) Faster changes  in  technology & methods 

    6) Greater potential in Indian market 

    DIFFERENCES: 
    8) Mind sets different 

    9) Priorities are different

    10)Differentiation potential varies

    11) Customer buying behavior is different
    RETAIL BANKING IN RETAIL 
    STORES WAY… 
                AS IS / BEFORE    TO BE /NOW

    PRIORITY  Credit & Risk   Customers & 


        retailing 
    APPROACH    Secure & conventional  Customer centric 
    location for financial  retail banking 
    transactions  (Customer is King)
    (Banks dictate terms)
     CUSTOMER  Corporation & other   Retail consumers, 
    BASE banks  corporate clients, 
    other banks 
     FORMATS  Single Entity  Multi­location, multi 
    branch
      MORE  Improving transactional   Providing  service 
    EMPHASIS ON  efficiency and value to 
    consumers
    CUSTOMIZATION  Rarely there  Highly customized 
    WAY
    TO IMPROVE FIVE FOCUS AREAS
     RETAIL STORES  APPLICABILITY 
    TO RETAIL BANKS
    IMAGINATION  Sell dreams, Offer a   Sell dreams of 
    vision where  comfortable & secure 
    customers can go. retirement plans etc.
    EMOTIONAL  Provide information, e.g. Update new plans 
    CONNECTIONS Serve & create bond tapping new needs

    FUNCTIONAL &  Retail stores provide  Create products & 


    TECHNICAL  value­ added products  services with  act as 
    ADVANTAGES & services differentiator 

    PERSONALIZED  Data warehousing,   e.g. advices on money 


    CONTACT  data mining  management 
    depending on 
    individual needs
    TESTING &  Keep experimenting  New methods, plans,
    IMPROVEMENT  Implement & improve  
    RETAIL BANKING IN RETAIL STORES 
    WAY…
    FIVE COMMANDMENTS
    RETAIL STORES APPLICABILITY 
    TO RETAIL 
    BANK
    SEGMENTATION,  accordingly make product  e. g. positioning 
    TARGETING,  offerings simple &  HBOS  :Consumer 
    POSITIONING  relevant  champion in Britain

    CUSTOMER  Track & correct mis­ Feedback,complaint


    RELATIONSHIP perceptions of customers s,helpdesk.

    Survey competitors: Competitor oriented 
    COMPETITION  offerings, strategies &   strategy, Be 
    promotions  & beat them updated & improve 

    PROACTIVE  Listen to customers  Unstated needs 


    continually & carefully  identification 
    INCENTIVES Performance based  To Sales & 
    frontline, back­
    office staff
    CONCLUSION
     Retail banking has a great scope in India due to 
    increase in consumerism, purchasing power of 
    customers. 

     E­banking, phone banking, Mobile banking, 
    ATM, have become necessity, and are no more 
    factor of differentiation in urban and semi urban 
    cities.

     Bankers can adopt strategies used by retail 
    stores to very large extent to woo the customers 
    and survive in competition.
    THANK YOU…!

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