ING Hunt for Lions

2. The ING Case Study Competition
ING VYSYA BANK

3. Well appointed branches and slick websites will no longer be enough, as customers
expect services on the move. Location-based offers, timely and relevant content, and
interactive applications will form the basis of the mobile customer’s engagement with
their banks.
ING VYSYA BANK
Executive Summary
Digital modernization gives traditional banks a second chance. A smart, enterprise-wide
approach positions them to deepen customer satisfaction and loyalty, driving long-term
relationships and profitability.
Digital technology gives banks the opportunity to regain their relevance with customers,
and the heart of that connection is data. Every consumer click, swipe, comment and
search creates a unique virtual identity
The implication for banks is that as business models are transformed by the shift to digital
channels, it opens up new opportunities for engaging and interacting with customers to
build relationships and grow revenues.
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4. Insights - Why do customers buy from where they buy?
ING VYSYA BANK
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5. SWOT Analysis( Digital Vs Branch Banking)
Strengths Weaknesses
• Cost :- Cost per transaction is lower in digital
banking as compared to branch banking.
• Time:- Time consumed in any transaction is
significantly less in digital than other options.
• Convenient:- The ease of use is high in digital due
to the availability of internet and mobility and
increasing penetration.
• Availability:- Bank’s are working hard and have
been successful in maintaining 24*7 uptime for the
online systems as compared to the prescribed
operating hours of branches.
Opportunities Threats
ING VYSYA BANK
• Infrastructure:- Although the scenario is
changing at a rapid pace still considering Indian
scenario, The banking system still lacks proper
technology based infrastructure.
• Risk Measures:- Ineffective risk measures are a
source of concern for digital banking owing to
nascent stage.
• Access:- A vast population is still not tech savvy
and issues of access control keeps on arising with
digital marketing
• Products:- Still a wide of banking products are
not available online while offline availability is
efficient.
• Technology:- Advancement of technologies,
strong asset base would help in bigger growth of
online measures.
• Users:- Internet using customer base is likely to
increase in future as compared to offline users.
• Trust :- A sophisticated security system is a
must and has a lot of scope of improvement.
• Financial Inclusion:- With government
focussed on financial inclusion model, A vast
array of opportunities have opened up.
• Grievance:- Robust Grievance redressal system
is opportunity for both the modes.
• Tech Savvy:- Solutions provided needs a basic
understanding of technology be it mobile or
computers which is not the case in branch
banking owing to human touch
• Investment:- Huge investment in technology is
required for setting up the infrastructure and thus
additional capital requirements.
• Security:- Any digitized solution is always prone
to security threats, the same is lesser in branch
based approach
• Fatigue:- There is always possibility of technical
failures which will affect the both.
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6. ING VYSYA BANK
Digital Banking Roadmap
• Integrated infrastructure for seamless retrieval, storage and
distribution of information and data.
• Digital banking requires regulations and policies for protection
of value of data and information.
• Content management roadmap for digital banking includes
storage, management, workflow, process, integration,
reporting, information.
• Business strategy components include a service orientation,
governance, technology adoption, process alignment, tuning
and optimization.
• Analytics include multidimensional analysis based on
geography, customer type, product, real time content analysis.
It also includes tracking consumer behaviour and correlating it
to revenue driven activities and nurture cross selling
opportunities.
• Information must be accessible from anywhere and from any
mobile form factor. Other key components include social
media, the digital app store as a one-stop shop for mobile
business applications, authentication and access security.
• A consistent user experience needs to be provided across all
major interaction touch points. Other key factors include
campaign management, branding, search engine optimization,
user experience and session management.
Seven Strategic Areas to Consider
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7. ING VYSYA BANK
Digital Banking Model
VALUE
PROPOSITIONS
•Convenience
•Self-service
•Trust
• Liquidity
CUSTOMER
RELATIONSHIPS
•Customer lifetime
value
• Improve customer
engagement
•Loyalty
•Repeat transactions
CHANNELS
•Branch
•Web
•ATM
•KIOSK
•IVR
•Social Media
CUSTOMER
SEGMENTS
•Convenience
•Self-service
•Trust
•Liquidity
KEY
PARTNERS
•Digital partners
•Merchants
•Payment
networks
•Telcos
•Technology
partners
•Logistics
partners KEY
RESOURCES
•Capital
•Sales channels
•Branches
•Employees
•Sales brokers
(Lending)
KEY
ACTIVITIES
•Payments
•Lending
•Deposits
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8. • Partnering micro,
small and medium
enterprises in
their growth
• Specialized
understanding of
the market
segment
• Long market
experience enables
strong growth
with strong asset
quality
Wealth management solutions to
High Net worth individuals and
entities, including individuals,
families, small businesses and
large corporations.
ING VYSYA BANK
Tailored
credit
products for
poultry,
dairy,
agriculture,
cold storage
and logistics
businesses
• Loan against property,
Home loans,. Gold
Loans, Personal loans,
Commercial vehicle loans
etc
• Enables significant cross
selling opportunities to
existing customers
Wealth management products and
services, Insurance, bill payment solutions,
Gold sales, Foreign Exchange services,
forex cards, lockers, internet banking,
phone banking etc
Multiple products across savings,
current, fixed deposits accounts
catering to multiple customer segments
Targeted products such
as Kisan credit cards,
produce loans,
agriculture term loans
etc.
Analysis of ING Products
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9. SCOPE
The main purpose of the research is to understand the customer’s insights, tendency of them to likely shift from
the branch banking to digital model of banking and key areas to be focussed for the future.
DATA Gathering
• Primary Source
The primary source for the data collection has been personal interviews, questionnaires in the form of Google
forms which were got filled from the customers of ING as well as customers of other banks. The Primary
method of Data Collection would suit this type of Research Design.
• Secondary Source
Secondary source for the data collection has been websites for various banks including ING and Reserve bank
of India
SURVEY Method
Sample size considered was 100, The subjects were selected on the ease of availability. The data analysis
techniques such as pie chart, histogram and bar diagrams are used.
ACCURACY
It is difficult to know if all the respondents gave accurate information; some respondents tend to give
misleading information.
ING VYSYA BANK
Research Methodology
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10. Out of 100 respondents 78% of them were male and 22%
were female
ING VYSYA BANK
DATA Analysis
Out of 100 respondents the segregation on basis of age is shown
above
On the basis of educational qualification the sample size is represented
in pie chart
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11. Use of the Digital or Branch
Solutions
ING VYSYA BANK
Preferred channels for buying
for different age groups
As Generation Y ‘grows up’ with digital, it will be more important for
banks to match their digital expectations.
As online services get equipped
with more and better functionality,
it will transform the traditional
interaction model with the
consumer Willingness: Consumers will
pay more for good services,
They suggested they would
be willing to pay an optimal
price for services
1:- Notification via twitter or
Facebook
2:- Spending Analysis
3:- Third Party Offers
4:- Willing to pay for new
services
SurveyFindings
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12. ING VYSYA BANK
Banking Industry
•Total assets increased more
than five times to reach
US$1.3 trillion
• Total credits and deposits
grew consistently at
approximately 20% to reach
US$0.8 trillion and US $1.1
trillion respectively.
•Number of bank branches
reached nearly 93,000.
Incremental branches in the past 9 years
Industry Reach
Source:- RBI Statistical data 2012-2013
• The number of bank branches in urban and semi-urban areas has been
growing at a fast pace. Fifty eight percent of ~25,000 branches opened
in last five years were in urban and semi-urban regions.
• Indian banks have been increasingly growing their international
presence in the recent past. In part to cater to the growing Indian
diaspora in foreign countries (estimated at ~ 20 mn persons) and in part
to meet the growing demands from cross border trade and economic
activity.
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13. Industry Reach
Source:- India Commercial Banking Report
• There has been an intense debate on the appropriate
model for FI. RBI has favored bank-led model instead
of the technology-led model which has been successful
in many other countries. The model allows the country
to leverage existing branch base for a planned,
structured and sustained FI process
• Supply Chain Financing (SCF) is gaining traction in
India, SCF is rapidly gaining attention in international
markets and is growing at a pace of 30 – 40 percent at
major international banks according to a research
ING VYSYA BANK
• The Factoring bill essentially protects micro and
small businesses from delayed payments for goods
and services by larger entities. Traditional banks
used to provide loans based on the borrower’s (i.e.
the MSME player’s) ability to service the loan.
• Factoring will however evaluate the lending
decision based on the ultimate debtor (i.e. the
ultimate customer of the MSME). This will greatly
improve the liquidity and working capital problems
of MSME players
Source:- Factors Chain International
With favourable legislations, factoring is gradually taking
off in India. The Indian market constitutes a mere one
percent of the world’s factoring market
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14. ING VYSYA BANK
Growth Prediction
• India's banking industry could become
the fifth largest banking sector globally
by 2020 and the third largest by 2025.
• These days, banks in India are turning
their focus to servicing clients and
improving their technology
infrastructure.
• The popularity of internet and mobile
banking is at an all-time high, with
customer relationship management
(CRM) and data warehousing anticipated
to drive the next wave of banking
technology in the country.
• Total lending and deposits increased at a
compound annual growth rate (CAGR) of 22.8 per
cent and 21.2 per cent, respectively, during FY 06–
13 and are further poised for growth, backed by
demand for housing and personal finance.
• With the help of the Financial Inclusion Plan (FY
10–13), the banking connectivity in India
increased more than threefold to 211,234 villages
in 2013 from 67,694, at the beginning of the plan
period.
Source:- http://www.ibef.org/industry/banking-india.aspx
Source:- IBEF banking report
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15. ING VYSYA BANK
Conclusion
• Banks face the dilemma of having to choose one of two available paths
open to them: whether to stay with traditional banking models that have
served banks well until now, or embrace change and serve the customer in
a way that the customer wants.
• Acknowledge that the new digital feature set is changing the way
consumers interact with their banks. Understanding the different needs of
different customer groups is essential, as a one-size approach will prove
insufficient to meet the range of needs of customers.
• Banking will necessarily become increasingly intertwined with customers’
digital lives. New business models and means of interaction will be
required in order to be successful in this changing business context.
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16. ING VYSYA BANK
Reference
• http://www.rbi.org.in/home.aspx
• http://www.ingvysyabank.com/
• http://www.pwc.com/gx/en/banking-capital-markets/banking-2020/
• http://www.accenture.com/in-en/industry/financial-services/
banking/Pages/index.aspx
• http://www.cognizant.com/banking-financial-services
• http://www.kpmg.com/IN/en/IssuesAndInsights/ArticlesPublications/Docu
ments/KPMG-CII-Indian-Banking.pdf
• http://www.ibef.org/industry/banking-india.aspx
• Internet banking acceptance model: Cross-market examination by Bander
Alsajjan and Charles Dennis
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