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Prabhat Project Report RETAIL BANKING

Prabhat Project Report RETAIL BANKING


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I, PRABHAT KUMAR do hereby declare that the Dissertation report titled:


Is a genuine research work undertaken by me and it has not been published anywhere earlier.

It has been completed under the guidance of Mrs. Rachna Sexena (Faculty), IIMS Bareilly.

Date: Place:



Every work requires a diligent effort not only on the part of the person directly involved in the successful completion of the work but also the ones who are willing to help and guidance. In the same regards, I would like to thank my Faculty Guide, Mrs. Rachna Sexena who has been a constant support in the working of the project.

Furthermore, I would like to express my gratitude to the employees of ICICI Bank who helped me towards the successful completion of this dissertation and without whose help, the completion of this report would not have been possible.


Chapter 1: Introduction

Introduction to Retail Banking

Chapter 2: Objectives and Methodology

Chapter 3: Case- ICICI Bank
Distribution Strategies Product centric Strategies ICICI Branding

Chapter 4: Innovations by other banks
Savings Account Home Loans Credit Cards Auto Loans

Chapter 5: Customer Preference Survey

Chapter 6: Conclusion Chapter 7: Executive Summary Chapter 8: References Annexure: Question Home Loans Credit Cards Auto Loans Savings Account Chapter 5: Customer Preference Survey Recommendations .

Services offered include: savings and checking accounts. consumers largely selected their banks based on how convenient the location of bank’s branches was to their homes or offices.Chapter 6: Conclusion naire INTRODUCTION Retail Banking Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. personal loans. With the Advent of new technologies in the business of bank. Before Internet era. mortgages. credit cards. and so forth. such as Internet banking and ATMs. now customers . debit cards.

The size of the retail market is Rs 50.000 crore which includes credit card spending of Rs10. Personal Loan at Rs 4000 crore (10-15% CAGR) and auto loans at Rs75. Customer shifting. cost pressure and increased competition are some of the reasons for this shift in focus.000 crore (5% CAGR) . Retailing is now favored because of better norms. Due to globalization a new generation of private sector banks and many foreign banks have also entered the market and they have brought with them several useful and innovative products.000 crore (30% CAGR). This is just the beginning of the story. GROWTH IN RETAIL BANKING Bankers have been increasingly shifting focus to retail banking to increase profitability and reduce delinquency rates. Further it offers many opportunities and potential for credit expansion. and so has the choices of customers for selecting the banks.000 crore.can freely chose any bank for their transactions. Thus the customer base of banks has increased. public sector banks are also becoming more technology savvy and customer oriented. lesser asset quality problem and low NPA. Due to forced competition. The markets for the other goods are Housing loan at Rs 25.

and corporate) Today. products and services and practically nil switching costs. the customers have many expectations from bank such as (i) Service at reduced cost (ii) Service “Anytime Anywhere” (iii) Personalized Service With increased number of banks. Internet and kiosk) •Multiple customer groups (consumer. Non-traditional competition. 5% increase in customer retention can increase profitability by 35% in banking business. Therefore banks are now stressing on retaining customers and increasing . branch. small business. market consolidation. new technology. 50% in insurance and brokerage.Moreover. and 125% in the consumer credit card market. customers are easily switching banks whenever they find better services and products. and the proliferation of the Internet are changing the competitive landscape of the retail banking industry. Banks are finding it tough to get new customers and more importantly retain existing customers. investments and securities) •Multiple channels of distribution (call center. Today’ retail banking sector is characterized by following: •Multiple products (deposits. credit cards. According to a research by Reichheld and Sasser in the Harvard Business Review. insurance.

This may be explained better from two initiatives bank took in the past: 1. offerings and building long-term relationships with their customers through more customized products. Banks also need to find out the avenues for increased customer satisfaction. The increase in customer satisfaction has translated to loyalty that resulted in higher . Banks also need to identify customers and products that would be most profitable and target customers with products that are most appropriate to their needs and serve the customers with greater cost efficiency. enhanced value offerings. how to sell and how to be different to increase profitability. was a significant increase in that intangible called customer satisfaction. since customers would use them instead of a branch to transact business. which leads to increased customer loyalty. Earlier what drove many bankers to invest in ATMs was the promise of reduced branch cost.market share. whom to sell. personalized services and increased accessibility. however. But what was discovered is that the financial impact of ATMs is a marginal increase in fee income substantially offset by the cost of significant increases in the number of customer transactions. The value proposition. What do the banks need ? The banks now need to find out what to sell. Banks need to differentiate themselves by adding value-added service. when to sell.

customer retention and growing franchise value. which will now be skewed towards Retail products. however. banks need to retain existing customers with enhanced personalized services and products. . This is reflected in a change in the urban household income pattern. Thus. Bankers invested in Internet banking. Firstly. Studies have now shown. Potential for Retail in India: Is sky the limit? The Indian players are bullish on the Retail business and this is not totally unfounded. Again customer satisfaction drives the value proposition. that the primary value of offering Internet banking services lies in the increased retention of highly valued customer segments. The direct fallout of such a change will be the consumption patterns and hence the banking habits of Indians. believing that the Internet was a lower-cost delivery channel and a way to increase sales. which best suits their needs and satisfies them the most. There are two main reasons behind this. 2. it is now undeniable that the face of the Indian consumer is changing.

Going by international standards. the financial services market is highly over-leveraged in India.e. There.At the same time. India compares pretty poorly with the other economies of the world that are now becoming comparable in terms of spending patterns with the opening up of our economy. On the other hand. The comparison with the West is even more staggering. Although the players are . car and consumer loans. the potential lies in the fact that of all the consumer expenditure in India in 2001. particularly from local private banks such as HDFC and ICICI. But how competitive are the players? The fact that the statistics reveal a huge potential also brings with it a threat that is true for any sector of a country that is opening up. All banks are targeting the fluffiest segment i. Another comparison that is natural when comparing Retail sectors is the use of credit cards. less than 1% was through plastic. Competition is fierce. the upwardly mobile urban salaried class. while the total outstanding Retail loans in Taiwan is around 41% of GDP. For instance. in the business of home. Just how competitive are our banks? Is the threat of getting drubbed by foreign competition real? To analyze this. Here also. the figure in India stands at less than 5%. one needs to get into the shoes of the foreign banks. the corresponding US figure standing at 18%. precisely lie the pitfalls of such explosive growth. a large portion of the Indian population is simply not “bankable” – taking profitability into consideration.

So these banks often take the Direct Selling Agent (DSA) route whereby low-end jobs like sourcing or transaction processing are outsourced to small regional layers. Overdependence on this segment is bound to bring in inflexibility in the business. What about the foreign giants? The foreign banks have identified this problem but there are certain systematic risks involved in operating in the Retail market for them. These include regulatory restrictions that prevent them from expanding their branch network.employed and the semi-urban rich. you know that a significant commission earned out of any such booking gets ploughed back to our own economy. Perhaps. However.spreading their operations into segments like self. . one of the biggest impediments in foreign players leveraging the Indian markets is the absence of positive credit bureaus. the spend-now-pay-later “credit culture” in India is just not picking up. as a McKinsey study points out actual write-offs on NPAs show a strong negative correlation with sharing of positive information. What has been a positive step towards this is a negative file sharing started by a consortium of 11 banks. when you see a loan mela or a road show showcasing the retail bouquet of an elite MNC giant. In the west the risk profile can be easily mapped to things like SSNs and this information can be publicly traded. it is an open secret that the big city Indian yuppies form the most profitable segment. On top of this. PAN is a step in this direction but lot more work need to be done. So now on. A swift legal procedure against consumers creating bad debt is virtually nonexistent.

and with relatively large retail networks—seem to have no pressing need to acquire a local bank. We just cannot afford to look inwards and repeat the mistakes that were the side effects of the . Established foreign banks have preferred to take over customers or businesses from other foreign banks that want to leave. So over the past few years.Finally. Germany's Deutsche Bank and Japan's Bank of Tokyo-Mitsubishi. in spite of the entry of MNCs in many industries.2% is falling. has acquired customers from France's BNP. So all for the keeping then? This will perhaps be the most wrongful inference that can be drawn from the above. Retail Banking has seen a flurry of panicky exits. Yet Citibank. HSBC and Standard Chartered—all in India for more than a century. ABN Amro took over Bank of America's retail business. the vast geographical and cultural diversity of the country makes credit policy formulation a tough job and it simply cannot be dictated from a Wall Street or a Singapore boardroom! All these add up to the unattractiveness of the Indian retail market to the foreign players. Those that remain might be thought to be likely buyers of Indian banks. in recent years. Fewer than 40 remain in India and their share of total bank assets currently 7. Thus HSBC.

•Lower credit risk by tighter controls and better analysis . A case in point is the successful implementation of micro-credit networks in Bangladesh. They have often tried to copy process designs that have been tested. in the West.” •Push retail growth by upping market shares and tapping new customers. notwithstanding the long queues in front of the teller counter in the SBI Joka branch. Each economic culture has its own traits and one who successfully adapts those to the business is the eventual winner. The focus of the sector should remain in macroeconomic wealth creation and not increasing the per capita indebtedness that will do little but add to the NPA burden. ICICI Bank “ Fast growth in retail is not because of sheer passion for numbers.nationalization of the Banking System. Executive Director. Indian banks have shown little or no interest in innovative tailor-made products. NEW PRIVATE BANKS: STRATEGY PAYING OFF In the words of Chanda Kochchar. albeit successfully. Retail Banking in India has to be developed in the Indian way. Rather. Positioning a bank as a tech-savvy financial vendor in a country where Internet penetration is an abysmal 1. A growing market can never be an alibi for lack of innovation. it’s the result of strategic thinking.65% can only add to the overleveraging as pointed out earlier.

strong processes and customer focus. •Operational efficiencies. The key dimensions of ICICI’s retail strategy for increasing its market share are: •Innovative products •Parity pricing •Customer convenience through a vast range of delivery channels. PUSH RETAIL GROWTH BY UPPING MARKET SHARES AND TAPPING NEW CUSTOMERS. fast growth and thereby economies of scale .•Leverage balance sheet strength and strong corporate relationships •Follow the customer worldwide and build scalable model for global rollout. •Cross-selling of the entire range of credit and investment products and banking services to existing customers is a critical aspect of our retail strategy. I. Since initial investments are high in Retail.

cheque books etc.000 new customers everyday and if a customer does 70 to 75 transactions per year. Incredibly ICICI actually does it. which the bank does. the bank’s incremental retail business is 30% the size of the industry and its operating costs are said to be among the lowest. then the bank must run an assembly. to process more than one crore cheques a month. stringent credit practices help control quality and robust back office and use of technology help improve efficiencies. For instance. It has set up a centralized back office and 18 regional back offices (so called “factories” by the bank) to do account opening. Impressively the bank’s team actually studies assembly line operations and shopfloor operations of manufacturing companies like Ford and Hyundai Motor to improve the . And today. Hub And Spoke Model ICICI employs a hub-and-spoke model to improve its operational efficiencies. the cheques are scanned at the regional hubs. While the distribution network enables the bank to add numbers. issuing of credit cards and ATM cards.line like operation to process transactions. That helps speed up the process without adding more employees. mailing of account statements. OPERATIONAL EFFICIENCIES If the bank is adding 10.help ICICI make profits much earlier.

there is a structured field investigation process to check on the legal documents and property valuation. which approves or rejects customer acquisitions. the bank projects the increase in customer base and transactions for the next quarter and accordingly increases its backoffice bandwidth. although distribution is decentralized. risk control is centralized. it is the credit team working on the central credit policy. a three. they are not just scalable but also replicated across functions. which means while the sales team is responsible for getting new business. All that helps to keep a close watch on retail credit quality and explains why the bank’s retail net NPA is 0. because the process was manual. In case of mortgages. Besides.75%. customers are now given a pre-printed welcome kit when they open an account and the cards are activated the next day. his cheque book. For instance. Adopting a “straight through” processing system lowered the waiting time to five days and reduced the mail load to one envelope. Credit is separate from sales.turnaround time. every quarter. Standardization Of Processes In ICICI bank. Starting a few months ago. . Since the processes are standardized. IN that time.week waiting period was involved. earlier when a customer applied to open an account. ATM card and pin number would arrive in seven separate envelopes.

7 million deposit customers. Student Banking Services for students. Following a life stage segmentation strategy. From that day onwards. with over 4.g. Under this. ICICI Bank offers differentiated liability products to various categories of customers depending on their age group. . we are constantly striving to provide products and services that enable customers to fulfill their financial requirements. Besides it is offering various Tax saving schemes namely ICICI pension plan. This has reduced funding cost and has enabled them to create a stable funding base. For e.com for share trading. Moreover customers can have access to ICICI Direct. ICICI Safety bond. Tax Saving mutual fund schemes and so on. PRODUCTS During fiscal 2003. As same as HDFC bank deposits. As the leading provider of retail financial services. if the customer has more than Rs10.000 balance in his savings bank account that excess will be transferred to Value Added Savings Account. he will be given fixed deposit interest rate on the remaining balancr. ICICI had continued their focus on retail deposits. no entry load or exit load will be charged on customers.: Young Star Accounts for children below the age of 18 years.CUSTOMER SERVICE STRATEGY ICICI has the special account called “Value Added Savings Account:.

While the distribution network enables the bank to add numbers, stringent credit practices help control quality and robust back office and use of technology help improve efficiencies. In ICICI bank, although distribution is decentralized, risk control is centralized. Credit is separate from sales, which means while the sales team is responsible for getting new business, it is the credit team working on the central credit policy, which approves or rejects customer acquisitions. In case of mortgages, there is a structured field investigation process to check on the legal documents and property valuation. All that helps to keep a close watch on retail credit quality and explains why the bank’s retail net NPA is 0.75%.


To diversify risk across geographies, the bank in the last two years has been increasing its global footprint and following the Indian corporate customers overseas, where it has set up seven representative offices or branches with applications put in for two more in South Africa and Bangladesh, and a subsidiary in Russia.

Going forward the bank’s policy to consolidate its presence in existing markets, accelerate growth, sustain profitability and build a business model to withstand the pressures of a global rollout. M&A as a route for growth is unlikely as the bank sees little value in acquisitions given the bank’s own reach and equity with customers. Instead, he wants to grow it organically to keep both costs and risks down.









In a bid to further strengthen its balance sheet, the bank securitized assets worth RS 10,700 crore. For marginally lower realization, it takes a lot of risk off the bank’s own balance sheet. With Basel II norms round the corner, the bank will have to access low cost funds to protect its profit margins and cover bad loans.


Multi-channel driven retail customer expansion With the market expansion and customer expansion, ICICI can’t just expand branches. Therefore it needs to look for another delivery model making it convenient to the customers to do banking. So it needs a model to prevent the customer from coming to the bank and at the same time service him.

So there are various other modes like Internet, Mobile, Phone Banking. Roughly, only 30% of the transaction happens through branch, 50% through ATMs, and 10% with phone banking and net banking, but cost wise these channels have a very low cost as compared to a branch transaction. On a rough estimate, if at a branch ICICI has to spend Rs50 per transaction, at an ATM it is almost 25% of the Rs50. So cost of transaction is very low. Therefore it encourages customers to use the ATM or call up if he needs a cheque book etc. If they want to transfer money, it encourages them to go online. ICICI has branches open for 12 hours and migration of the customers from physical to online saves a lot of cost to the bank . To cope with the growth in expansion, ICICI is sourcing almost 2 lakh customers per month. The branches are the same and there is tremendous pressure otherwise on the branch. Therefore, it encourages migration.

Certain core activities customer will continue to do from the branches. There are people

5 million customer accounts.000 at March 31. things are taking time. ICICI Bank has developed multiple access channels comprising lean brick and mortar branches. Things are improving.500 to 84. taking the total number of accounts up from 0. ICICI Bank’s Internet banking customers increased 400% to 550. To efficiently distribute its products and services.000. it starts putting up an ATM. A significant portion of this increase came from savings accounts which increased from 0. FY2001 saw a significant growth in the branch network (including extension counters) to 378. on account of the merger of Bank of Madura. These investments in channel infrastructure have enabled ICICI Bank to achieve rapid growth in its retail business.who come to the bank just to find out the balance.66 million.2 million at March 31. The current network of 510 ATMs is the largest in the country accounting for nearly 20% of all ATMs in the country. Right now there are 300 transactions per ATM per day. call centers and Internet banking. ICICI has almost 1700 ATMs coming up. it is convenient and popular. Earlier. NRI accounts also witnessed a strong growth and increased from 23. ATMs. there were so many apprehensions about the success of ATMs. India being a conservative country. In March 2001. Today. Customers can now access their ICICI Bank accounts over telephones in 17 cities. . During the year ICICI Bank added over 2. 2001.65 million at March 31. ICICI Bank became the first Indian bank to cross the 500 ATM mark. The moment it crosses 400 plus. 2000 to 3. 2001.29 million to 1.

Call Centre and Internet Banking. at a substantially lower cost. head of the retail channel infrastructure group at ICICI Bank. “When the banking sector was liberalised we knew that to get a lead over the well entrenched PSU banks. It services a customer base of more than 5 million customer accounts through a multi-channel access network. rather than set up a branch in every suburb. For instance. ICICI Bank has hit upon a ratio of 8 ATMs to one branch office. ICICI is also developing new strategies to leverage their ATM outlets. . This includes more than 500 branches and extension counters. we had to take the help of delivery channels like ATMs.Says O P Srivastava. Anywhere Banking ICICI Bank is the second largest bank in the country. thus effectively reaching out to a large customer base. over 1800 ATMs. This was the only way to counter the reach of national players. Such has been the impact of ATMs that ICICI Bank’s customer base has grown from two million to five million in the last two years.” ICICI Bank is the most aggressive deployer of ATMs and has seen its base surge from 125 ATMs in January 2000 to 1.200 ATMs today. ICICI attributes this increase to the increase in ATM outlets.

one can access the various services ICICI Bank has to offer at anytime. anywhere banking. anywhere and from anyplace. http://www. carry out online broking and make other . videoconference with a customer service executive.com/pfsuser/channels/internet/internet. Its e-lobbies are its answer to expanding its branch network while still controlling costs. Keeping in line with the idea of offering convenient. the self-service banking centers allow customers to pay bills. please click on the topic of your interest mentioned in the left menu.icicibank. These clients make good cross-selling prospects as they are a relatively risk-averse segment. withdraw money. htm E-LOBBIES By installing self-service machines and maybe a one-man enquiry point at the large corporate. ICICI Bank has pioneered the idea of unstaffed branches in India. anytime. Using leading edge technology.Thus. the bank has provided a convenient service for the employees. To learn more about the various channels.

Home Loans disbursed by ICICI bank for the year 2002-03 were Rs7000 crore. auto loan and credit card portfolio utilizing its 1000 odd DSAs. Supported by the call centre. The e-lobbies also offer Braille and voiceenabled ATMs for visually impaired customers. by now famous ‘loan melas’ are conducted by DSAa under the supervision of its employees. Evenits. DIRECT APPROACH Recognising the inconvenience of visiting a branch in the highly populated and traffic congested cities like Mumbai and Delhi. couples could invite the agent to meet them at home after dinner when both husband and wife are . About 70% of the incremental growth in personal loans. without needing a cashier. ICICI Bank decided to use direct agents to sell its mortgages. the e-lobbies also display artwork by upcoming artists. acting as an art gallery. the direct sales agent could arrange a convenient time to visit and discuss the product with the prospective client. At some locations. which would identify prospects and initiate dialogue. DISTRIBUTION THROUGH INTERMEDIARIES ICICI Bank has seen 100% of its incremental growth in its home loan portfolio through the DSA network.such transactions. The bank also grew its retail personal loan. For example. This allowed the bank for personal preferences to be catered for. 40% of its Rs 4100crore incremental growth in auto finance and 60% of credit card issuance came from DSAs.

Moreover. expanding its distribution network to 145 cities and towns across India. what is the new thing it can tell him? That is where new and innovative products help.present. strong distribution capability and customer service focus. such as credit cards and personal loans. The key drivers for growth were the strength of our corporate relationships with leading automobile manufacturers. it also focuses on the customized products for various segments like r "Young star" account focused on young children. The new products at ICICI give a lot of value added services to the customer making the product more attractive from the plain vanilla products available at other banks. A similar sales model was used to sell other products. During the fiscal year 2002. it increased its lead in the automobile loans market. ‘Bank on Campus ‘for the college student and . ICICI Bank teamed up with the manufacturers and dealers – so that it became the preferred financier at each level – from the customer to the dealer to the manufacturer. To sell its automobile and two-wheeler loans. PRODUCT CENTRIC INNNOVATIONS IN ICICI BANK If the bank goes to a guy who is already banking with one of the nationalized bank.

SPECIAL SAVINGS ACCOUNT . ICICI BANK provides the following retail banking products for its customers: SAVINGS ACCOUNTS Features •The ICICI Bank Ncash debit card is a debit-cum-ATM card providing the convenience of acceptance at merchant establishments and cash withdrawals at ATMs. •Anywhere Banking . ICICI also focuses a lot on cross selling to promote the products.50.This facility entitles the account holder to withdraw or deposit cash upto a limit of Rs. •Auto Invest Account •Internet Banking is offered free of cost. •An average quarterly balance of Rs 5.000 only.000 across all ICICI Bank branches.salary account for the working people. •A customer can give the bank various types of standing instructions like transferring to fixed deposit accounts at regular intervals.

Features •An operating account with free multi city chequebook facility. SENIOR CITIZENS SAVINGS ACCOUNT Features •Higher Interest Rates.5. there is no penalty for nonmaintenance of minimum balances in the accounts. •No minimum balance requirement. which offers to sweep balances above Rs.000 in multiples of Rs.25. In other words. •Internet Banking •Free Anywhere banking •Free collection of outstation cheques •Free monthly account statements. •A saving account. . •Payroll processing for employees of the organisation through ICICI Bank Salary Accounts •Inward remittance through Money2India for FCRA approved trusts.000 to a fixed deposit for 1 year.

000 across all ICICI Bank branches.This facility entitles the account holder to withdraw or deposit cash upto a limit of Rs.•Demand Loan / overdraft against deposits will be upto 90% of the deposit. all features of the existing bank account are available with this . A Fixed deposit with a minimum value of Rs.000 and avail zero balance facility in the savings accounts WOMEN ACCOUNT The features of the account have been specially designed keeping in mind a woman's financial requirements. •The upcountry cheque collection facility for locations with ICICI Bank presence free of charge to the Senior Citizen customers. •Anywhere Banking .50. •Auto Invest Account •Internet Banking is offered free of cost. These include : A)Recurring B)Financial planning Deposits of children C) Family Shield Insurance In addition to these.10.

unlike the normal current account which is based on the . In addition. he gets: Free Phone Banking Free transfer of funds into his / her account from any ICICI Bank account • • Annual statement of accounts CURRENT ACCOUNTS Made to Order current account Made2order current account. a student can now look forward to the new face we have given to banking .his / her computer monitor.account as well such as •Free international debit card •Internet Banking •Phone Banking •ATM's BANK@CAMPUS With bank@campus. ICICI Bank's Student Banking Service.

. It makes banking a pleasure and of course teaches your child to manage their personal finances.quarterly balance. The made2order current account is totally flexible and can be adapted to changing business requirement. cute companions will guide your child through the world of banking -through checking the account balance. A personalized schedule of charges is derived for each customer based on: •Service Required •QAB as agreed to be maintained in the account •Float expected in the account YOUNG STARS ACCOUNT Banking can be fun Here. at Young Stars. fun zones and special pages on the internet. without having the requirement to Current Accounts have specific requirement of Quarterly Average Balance (QAB) maintenance and inturn offer various facilities free of cost to the customer based on the QAB. allows the customer to have customized current account based on the business requirement.

you can access your child's account with all the fun links to special zones designed to suit your child's area of interests and also impart knowledge on the current events of the world. you can even shop with him / her at Young Stars very own shopping page.With the pocket money that you transfer to your child's account. LOANS Home Loan: •Attractive interest rates •Door-step service from enquiry stage till final disbursement •Can transfer your existing high-interest rate loan •Free personal accidental insurance •Special 100% funding for select properties •Personal Loan •Car Loan •Two Wheeler Loan •Commercial Vehicle Loan •Loans against Securities . You can even open a recurring deposit in your child's name. Once you are done with your 'banking'.

you can buy using Indian rupees.•Farm Equipment Loans •Construction Equipment Loans •Office Equipment Loans •Medical Equipment Loans •Loan against Gold ICICI CARDS ICICI TRAVEL CARD The ICICI Bank Travel Card is a powerful new concept for international travelers: a prepaid card. and withdraw in any local currency in the world Convenient & Secure:No more hassles of finding Money Changers and encashing travellers cheques! .

000 VISA ATMs. •Accepted at over 90. Your ICICI Bank HPCL Debit Card comes packed with the following features: •Direct On-line debit to your ICICI Bank account. Just hand it over at any HPCL pumps and SAVE on your fuel purchases. In fact you can use the card for all your shopping.50. •International card offering deposit access at over 13 million shops and & VISA ATM's all over the world. DEBIT CARDS ICICI Bank HPCL Debit Card. so you spend with total control. One can also shop at over 13 million merchants who accept VISA Electron Cards. dining and traveling needs. A debit card designed with just your convenience in mind. more than 1. .000 VISA ATMs all over India.As good as Cash: ICICI Bank Travel Card gives access to local currency through 8. Worldwide Assistance: Round the clock medical and travel assistance.000 shops.800 ICICI Bank ATM's and more than 10. •Refund of surcharge* for fuel purchases at HPCL pumps.The Sensible Choice Basic Features ICICI Bank and HPCL bring the "Fuel" Debit Card.

the ICICI Bank Ncash Debit card is a most convenient accessory for you.•24 Hour Customer Care Centre •Speed-O-Miles Rewards Programme. Only more comfort and convenience! With the ICICI Bank Ncash Debit Card you can shop using VISA Electron's on-line debit program. ICICI Bank Ncash Debit Card. customers can park surplus funds in their current accounts in high-liquidity mutual funds through an automatic sweep facility. No more searching for the nearest ATM.Power Your Wallet Basic Features Combining the acceptability of a credit card and the prudence of an ATM Card. According to a bank release. •Itemized billing on your bank statement. •Lost card insurance. and debit your ICICI Bank account directly when transacting at any VISA accredited member establishment or ATM across the world! RECENT LAUNCH ICICI Bank has recently launched `Mutual Fund Sweep Account' for its current account holders. No more fear of overspending. .

The release quoted Ms Chanda Kochchar. as saying. However. mutual fund sweep account is a new product. Executive Director. The choice of funds would be increased subsequently.'' Most of the private sector and foreign banks have been offering a sweep facility in the savings account through which customers can park surplus funds in fixed deposits. the mutual fund schemes available under this facility are restricted to liquid fund schemes of Prudential ICICI AMC and GIC Mutual Fund.Initially. CHALLENGES FOR ICICI BANK The Changing Market •Increasing customer expectations •Complex products •Reduced pioneer advantage •Competitive pressure on margins •Products to client service orientation . ICICI Bank. "it is a unique product that merges the transaction efficiency of the banking account with the returns potential of a liquid mutual fund and is likely to change the way mutual funds are sold and distributed.

The Operations Challenge •Retail business is a transaction oriented business •Growth in business volumes •Increase in customer numbers •Higher transaction volumes •Operational challenge present in all aspects of the business •Front Office •Back Office •Various systems and processes linking them MEETING THE CHALLENGE Operations •Anticipate transaction volumes and build capacity to meet the same •Improve productivity of processes •Re-engineer processes to enhance efficiencies of scale •Sufficient internal controls and risk management practices .

Organisation Structure •Evolving organisation structure •Geographic to functional orientation •Customer centric orientation for identified segments •Product centric orientation for mass market •Product centric approach helps gain market share •Customer centric approach helps deepen relationships Understanding the customer •Market research and customer surveys to help in •designing appropriate products and processes •improving cross sell ratio and profitability •Controlling cost by eliminating unnecessary product features and processes •Pricing products according to value to customer rather than cost •Managing performance of employees in delivering customer delight Alliances and partnerships .

asp? pt=&si=625205291&rf=0&ci= ICICI Bank has overtaken HDFC.697 crore recorded . this mix is changing and the incremental growth of corporate to retail is now 45:55.•Bundling of services to improve convenience to customers •Overcoming regulatory constraints •Enhancing customer experience and promoting stickiness Gauging Customer Satisfaction •Regular tracking of customer requests and requirements •Analysis of the same •Ascertaining change in processes required to meet customer requests •Re-engineer processes based on feedback The retail lending portfolio of the bank is growing @ 40-50%. the deposit products by 3040% and credit cards by over 100%.278 crore as against Rs 12.com/scripts/equitytalk/asp/detail. However.outlookmoney. for the fiscal 200304 by registering disbursements of Rs 13. a major player in home loan market. The Balance Sheet mix of corporate and retail is now 68:32. ICICI: TOUCHING EVERY ASPECT OF CUSTOMER INTERACTION http://www.

. HDFC Bank was also sourcing housing loans from HDFC. banking industry sources said. The bank at present has a market share of about 27 per cent of the total market of Rs 5. According the HDFC's annual performance.000 crore approximately.278 crore in FY-04.by the latter. We will also increase our presence even beyond the 400-plus locations where we are currently present".659. HDFC chairman Deepak Parekh has in the past gone on record that the housing finance company was not looking at a market share growth but would focus on growing profitably. along with innovative addon services.697 crore (Rs 9.4 crore in FY-03 to Rs 13. In the words of ICICI Bank Home Loans’ Rajiv Sabharwal.951 crore in FY-03). rose from Rs 8. "We will continue to try and provide competitive rates. The disbursals of ICICI Bank. Both entities were marketing their home loan products through their branch networks and direct sales agents.00. which has grown aggressively in a time span of five years. the disbursals of the entity in FY-04 grew by 28 per cent at Rs 12.

Innovations in the Cards market have resulted in the evolution of the card from being a “convenient alternative to Cash” to becoming the “financial window” for the bank to offer bundled services to consumers. Cards issuers constantly analyse customer behaviour.5 per cent INNOVATIONS IN CREDIT CARDS The Evolution of Credit cards The acceptance of the Credit Card as a replacement for cash has become a reality and the average usage has hit 3. competition and technological advances to innovate and improve the . The expanding gamut of credit cards: Today. Credits Cards thus. This has been a natural evolution with the intermediation of Banks disappearing and the avenues for large scale secured loans being a distant past. Card products span a wide range of offerings that are structured to meet the requirements/demands/life style of consumers.5 Cards per person in advanced markets. the rates were pegged between 7. the turnover matching that for Cash and Cheques.5 per cent for all tenures on floating rates while in case of HDFC.ICICI Bank was currently offering home loans at 7. have become an integral part of Consumer Finance with banks becoming large issuers and acquirers over the years.5 to 8.

In addition. to impact: •Credit Limit •Over limit etc.productmix for specific customer segments. numerous card types have evolved to meet the needs of various consumer groups. host of generic services are linked to the Card Products (these would wary from an issuer to issuer with most of the underlying features being alike) INNOVATIONS IN THE CARDS BUSINESS Aided by technology and innovation fuelled by the market needs and underlying growth propositions. and Loyalty programs to encourage cardholders to increase card spends and also to revolve the . Affinity. Banks have roped in partners for Co-branding. These are implemented using a combination of: •Features •New Card Designs •Fee / APR / Charges linked to option of services •Pricing Strategies •Loyalty / Rewards / promotions /campaigns •Behavioural / Transactional Scoring. Co-issuing.

joining of retailers and telecom companies into this space. alliances and products have reached a stage where the offerings on Card products include the following variants. Cards businesses are evolving with intense competition. covering those segments as well. attractive ROI.credit thus promising to maximise the value for each $ spent by the customer.9 Million Cards Portfolio in one Year) •Business Purchase Cards (Meeting all the Purchase requirements of a small / Medium Enterprise) •Co-branded Cards aimed at maximizing benefits to the Card Holder by both the issuing and Co-branding partners. technology. •Co-issuing for and on behalf of a partner •Affinity Cards representing a close user group with the benefits realised on the spend by the Affinity Group •Instalment Loans with EMI linked to Card outside the Credit Limit •Personal Loan linked to a Card •Consumer Loan disbursed through a Card with a credit line equivalent to the Loan . which were outside the traditional consumer segment: •Corporate / Business Cards (AMEX having a $45 BN spend on their 4. Card being the underlying proposition in ecommerce and the best and most convenient vehicle for delivering financial services across borders. practices. services. Continuous improvement of processes.

This special card is issued to celebrate the spirit of the Standard Chartered Mumbai Marathon and to compliment the spirit of fitness. The exclusive offers for the customer include: Free Reebok Running Shoes: A pair of Reebok 3D Runner Shoes worth Rs. The Marathon Card is a logical extension of the Standard Chartered Bank product suite. Standard Chartered’s Marathon Credit Card Standard Chartered Bank in association with VISA International has introduced the Marathon credit card.amount…The paid up instalments adding to Open To Buy (OTB) •Secondary Limits on the Cards during high spend seasons •Hybrid products covering the features of the Card and the Loan •Virtual Card (e-card for exclusive use on the net) •A Card as part of the Mobile Phone SIM card for making Payments etc. Its earlier success includes that of the Cricket Card.are . the Soccer Card and Olympic Games Card. It has partnered with Reebok in its endeavour to promote fitness among the customers. 2290/. Standard Chartered Bank is the market leader in sport based affinity card programmes.

Win Reebok treadmills: On spending just Rs 900/. offering discounts at retail stores or tying up with hotels for holiday packages to ensure customer loyalty. for a period of 8 months.offered free with every card Balance Transfer at 0. for the first 6 months.99% per month.2. 45. luring you to binge on your card. These cards are offered free for life. Citibank’s "Premium" A 20 per cent discount at the newest food haunt in town.99%: An attractive balance transfer at a very low interest rate of 0. customers get a chance to win Reebok treadmills worth Rs. with a customer base of seven million people. they feel that the usage and understanding of the card users are not high. and . Almost all the credit card companies are looking at the same old F&B tie-ups.each. Is the credit card market heading for clutter? Are credit card companies struggling to differentiate their respective brands? Although industry experts claim that the market is growing at a rate of 25-30 per cent every year. Supplementary Card free for life: All Marathon cardmembers could gift their near and dear ones supplementary Marathon Credit Cards. an opportunity to win diamonds with every purchase or a holiday package dirt-cheap — each time you receive your credit card statement.000/.on the Marathon Credit Card every month. out will pop a host of rewards along with it.

Director (Corporate Affairs)." he added. While the market is getting cluttered with offers. Rewards and sales The strategy of offering rewards in the form of a discounted meal or a holiday may sound run-of-the-mill. Cardholders also get a fee waiver on purchase of fuel at over 225 designated Bharat Petroleum outlets in 10 cities across the country. but credit card companies still feel that it is a good way of increasing sales.that only 20 per cent of the card base actually generates revenue for the card issuers. is an example of offering a value proposition." says Neel Chatterjee. . Standard Chartered Bank takes great care in ensuring the relevance of such offers to the customers. incentives and tie-ups. "One of the concerns of many card issuers in India is to ensure that once the customer is sold the credit card. It enables cardholders to earn one reward point for every Rs 125 spent on the card. Standard Chartered Bank. The relevance of such offers is ascertained through extensive research and feedback from customers. "Smartfill. the co-branded card launched by Standard Chartered Bank and Bharat Petroleum in association with Visa. it becomes the preferred payment mechanism in his wallet vis-à-vis other cards that he may own. Encouraging cardholders to use their cards initially through rewards and benefits is a good way of increasing category awareness and drives up card sales volumes.

Each of these targets the need of particular groups of people. we would continue to look for partnership and associations to provide other value added services to the consumers.The need of the hour is to develop new and innovative areas of usage of cards.." says the ICICI spokesperson. Yet another example of a credit card company trying to offer its customers value propositions through co-branding is ICICI Bank. ICICI Bank-Trinetra and ICICI BankAmway. AUTO LOANS INTRODUCTION Chalti Ka Naam Gaadi.. which are not only relevant to the customers but also make business sense to the companies. . ICICI Bank-BPL. The bank has four co-branding relationships — ICICI Bank-HPCL..

565 3.973 3.445 2.973 Mahindra Countrywid 8.492 3.993 ICICI Fiat 8.000 loan) 1year (Rs) Citibank HSBC 9.423 (Rs) 2.097 3 years 5 (Rs) 3. but can you understand the multiple car loan options in the market? You have 6/6 eyesight but still can't read the fine print.541 3.515 2.515 3. We help you in clearing the clutter behind all the jargon.120 9.438 Cardholders get a discount Existing customers get preferential rates Check for accountholder benefits ICICI bond holder get discount Only Fiat Cars years HDFC Bank 8.451 2. Happy driving! Comparison Of Different Banks/ Auto Finance Companies EMI (per Rs Remarks 100.451 Comprehensive schemes incl leasing Maruti Specials .993 8.912 Finance Kotak 8. Nowadays there are many cars in the market and as many (if not more) ways to buy them.489 2.459 2.515 3.You might be able to differentiate between a cylinder and a piston.

973 3. which is valued before setting up the limit. The overdraft facility is provided in the form of an ICICI Bank Roaming Current Account (with an overdraft limit). The customer pays interest only on the amount withdrawn by him from the account for the period it is withdrawn for.Dec '2001 New products or innovations in the car finance sector Car Overdraft: ICICI Bank has already launched the Car Overdraft product in 2004 and it is going to be a focus area in the year 2005.500 2.493 2. 3.975 Only for Ford cars.993 Grindlays Saraswat Bank Ford Credit 8. Once this limit is set up.438 Offered special services to expedite delivery Slow processing and FD requirements Source: Auto India.e ANZ 8. This limit depends on the vintage and condition of the car. the customers can then withdraw money from ATMs or use their debit cards at various merchant establishments as per his requirement. He also has . An overdraft account is opened for the customer with a pre-approved limit set up.425 3.492 2.

Standard Chartered is offering loans of up to 75 per cent of the value of a car less than five years old. Used cars loans: These are expected to get more aggressive. Car loans is another turf where competition is forcing innovation. very similar to the facility available on credit cards repayment. car loan. On getting a confirmation he can walk into any dealership or contact our channel partner and take the car by completing minimal documentation.the flexibility of repaying a minimum of 5 per cent of the total outstanding every month. the rate is cheaper because the loan . but even customers with repayments from other financiers. The availability of used cars loans is now expected to reach much beyond the current reach and into the C category smaller townships across India. For instance. Loan on Phone: This is a unique offer to some of ICICI customers who have been given a pre-approved car loan based on their existing relationship. Refinance and top-up loans are also being offered for not just ICICI Bank customers. Even though it is classified as a personal loan. With better control on process of transactions on used cars — highlighted by entry of organised players and showroom price tags. credit card. as also the regular benefits of a roaming current account. The customer can simply contact the call centre to find out if he/she has a pre-approved loan. this is expected to lead to more financing on used cars. The car overdraft facility is like providing mixed benefits of a personal loan.

They also get the flexibility of repaying only a minimum of five per cent of the total outstanding every month. ICICI Bank HPCL Visa Electron Debit card. customers will get all the regular benefits of ICICI Bank 'roaming current account'. internet banking. In addition. The account is accessible to the customer through multi-city cheque and debit card.is secured against the car and the money can be used for anything. Under the scheme. ICICI Bank introduces `Car Overdraft' facility ICICI Bank has launched the 'car overdraft' facility against the car as security. fund transfer facilities. the bank will open an ICICI Bank roaming current account in the customer's name with a pre-approved overdraft limit. personal loans are costlier because they are unsecured loans. The customer will pay interest only on the amount withdrawn and for the period it is withdrawn. Normally. according to the bank. The limit of the overdraft will be determined on the basis of the vintage and condition of the car. phone banking etc. including multi-city chequebook. .

The key results are: Branch banking is the most popular in the age group >30 years as there are almost 67% of respondents in these age groups who prefer branch banking over all the other methods. This is followed by ATMs. internet banking and. As the above pie charts depict branch banking usage is also dependent on the age of the customer segment.CUSTOMER PREFERENCES SURVEY “Which bank/s are you banking with?” As the graph clearly shows. phone banking and mobile banking in that order. the most popular and the most used channel for all retail banking needs is still branch banking. .

time consuming and they were not aware that these services were available with the bank. . majority of the respondents felt that convenience was more important to them than the extra costs involved in getting those services.In the age groups up to 30 years. The other reasons cited were: •Never felt the need to use any other method •Don’t want to try something new etc. it would be acceptable to the customers. “Reasons for not using the lower ranked channels” A majority of people banking with public banks cited the reason that they did not use technology based methods like ATM. as they were either not available with the bank or they did not know how to use them On the other hand. the majority of private and foreign banks’ customers felt that these methods were unreliable. internet etc. branch banking was the second choice for the majority of the customers. As depicted by the graph. • This implies that even if banks charge a nominal fee for some of the extra services to make retail banking more convenient to the customers.

Majority of the respondents who agreed that internet was not secure had either never used internet as a channel or used it as their last choice for banking.“Branch banking is the most reliable channel since it involves face to face interaction” “Information concerning internet banking transactions can be tampered by others” Security of the banking transactions over the internet seemed to be the most important hindrance in making people use internet as a channel for retail banking. Similarly those who disagreed that internet was not secure. used it as their first or second choice for retail banking functions. “I would not like to use new technology based methods for my banking transactions” Approx 65 % agreed and 35% disagreed that they would like to try internet and other methods on trial basis if they knew how to use them and if there banks provided them with all the required information. This shows that the banks more than just providing the services should also focus on . This shows their reliability on internet and preference for convenience.

.spreading awareness about them and also make people aware of how easy they are to use and how to use them. “What according to you should the banks do to retain you as a customer?” As depicted by the above pie charts. people in different age groups have different expectations from their banks which are as follows: •Respondents in the age group of 20-25 and 25-30 had similar requirements as a majority of respondents of both the groups favored bundling of banking and non banking services followed by a need for innovative products. the most important reason cited for dis-satisfaction was high interest on loans followed by bad service which includes ATMs usually not working. The least important reason for dissatisfaction was cited as Lack of special offers for existing customers. the reason for which can be that customers want first to be satisfied with the current products and services before being offered new products from the same bank. Mobile message alerts not being received on time etc. “Factors considered important for choosing a retail bank” As shown in the above graph.

approx 33% would need credit cards.e a majority of them needed home loans in the next two years followed by auto loans. •77% of the respondents in the age group 25-30 years mentioned that they would need a home loan in the next two years followed by 23% who said that they would need auto loans. “What are the information tools that you use for making your retail banking products decisions? “ The pie charts for future retail banking requirements give the following results: •Majority of people in the age group (approx 50%) would need auto loans in the next two years. •A similar result was shown in the segment of 30-40 years i. This finding proves that this is the most attractive segment for banks to give housing loan offers. which is for their first vehicle.•An equal number of respondents in the age group of 30-40 gave importance to innovative products. •Respondents in the age group of >30 years seemed to be more price sensitive towards the products & services being provided by the banks. convenient distribution channels and less costly services as tools for banks to retain them •The respondents in the age group of greater than 40 wanted less costly services and convenient distribution channels. . Followed by this.

yet 73% of the respondents agreed that they would prefer going to their current bank for their future retail banking needs as well." Although personal experience and loyalty was not rated high as an important factor for making retail banking decision.•A majority in the age group > 40 years planned to take home loans in the next two years even though for them the intention was to buy a second car for the family. “I would prefer the bank I am currently banking with. for my next future retail banking need” FPRIVATE "TYPE=PICT.ALT=Your browser may not support display of this image. This proves that cross selling can prove to an important strategy for banks to increase their share in the customer’s wallet. . Almost an equal number wanted to get credit cards and home loans in the near future. •Only 13% of the respondents that too belonging to the age group of >40 years said that they needed personal loans in the near future.

g Home Loans for the age group of 25-30 years. this is essentially true for some of the Public Sector Banks. •Banks should devise future products looking at the individual requirements of the various customer segments. usage and reliability if they want to save costs at the distribution channel’s end. Therefore the banks need to focus on spreading more awareness about their benefits. phone banking etc. For e. . most of the customers are reluctant to use them as they are either not aware of it. Moreover they should direct their marketing strategies towards segments which can be the most attractive for that particular retail product. •Banks need to focus on factors like promptness of service and quality of service in order to gain the market share. think it is unreliable or do not know how to use them.RECOMMENDATIONS •Although the banks have been providing distribution channels like in internet.

want better services. It is characterized by the: •Significant change in demographic profile •Huge market potential •Increasingly challenging business environment •Competitive tools are different – need to redefine delivery models and . •Customers today are willing to pay more for convenience.•Another aspect that was revealed out of this survey was that customers favor retail banking products which combine a banking product with non banking products or benefits. For e. are willing to try new product and delivery channels if they are safe." CONCLUSION TO MY RESEARCH The retail banking scenario is changing at an immense speed. This is being implemented in the Credit and debit cards to a large extent but now should also be linked to the other products. •What the retail banks need to do is identify new segments more frequently and come up with more and more value-propositions which will give the customers enough and more reasons to use their products. All this provides immense opportunity for banks to continue inventing to grow in the retail banking industry.g The banks could probably look at offering a credit card to college students for their educational expenses.

business processes. . They need to learn from each other and also benchmark not only banking and financial services industries but winning companies across a wide range of industries A continuous innovation in every aspect of business can only help banks to keep pace with the ever changing and ever evolving consumer mind. In this fast changing scenario. banks need to equip themselves with internal capabilities and build efficient and viable business models to create the advantage of new opportunities available into a long term sustainable competitive advantage Banks today cannot restrict their learnings to the best practices followed in the industry but they need to look at other benchmark industries to derive learning on various important business parameters.

I have also included examples from some other banks that have been bringing in product . personal loans.EXECUTIVE SUMMARY The Project involves studying the retail banking strategies being adopted by various banks with special focus on ICICI Bank. mortgages. debit cards. Thereafter I have included ICICI as a case to understand the strategies followed by it in order to grow in the retail banking scenario. credit cards. The report starts with a detailed analysis of the retail industry how its has grown and who are the major players in the industry. Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts. and so forth.

. Thereafter the report tries to look at the other important aspect of Retail Banking i. Home Loans and Auto Loans. the customer’s perspective. This has been done through a market survey of sample size of 50 respondents. to their current retail requirements and also their future requirements and expectations. My main focus has been on the Savings Account. On the basis of the entire research I have given my own recommendations and conclusion as to what should be the focus of the banks in order to succeed in the retail banking arena. The questionnaire had a wide range of questions from the distribution channels used by the customers. This information was gathered by studying the products and distribution channels of these banks and selecting some of the best examples.centric and distribution centric innovations in order to differentiate themselves.e. his preferences and expectations. Credit Cards.

January 14. New Age Banking Way” Business Standard “Innovation games bankers play” Tamal Bandyopadhyay | May 22.2002 “Knowing Your Customer. the new growth driver” •Business Today January 2. 2004/05 “Banking ON Emotional Bonding” •Financial Express. Oct 21.REFERENCES Magazines: •Chartered Financial Analyst. 2005 “India’s Best Banks” •Pitch: Marketing at crossroads December 15. 2004 Websites: .Indian Banking November 2004 “Retail Banking.

bseindia.myiris.wharton.com/pfsuser/aboutus/investorelations/annualreport/pdf/ar2k3.php •http://www.•http://fic.bcg.com-downloads-pdf-ITJ2551_5OVKFbGH37.igi-online.bseindia.com-downloads-AsianBanking.com/downloads/PersonalFinance.pdf •http--www.pdf •http://www.com/cards/compare1.edu/fic/papers/97/9748.pdf •www.com/publications/files/Protecting_the_Franchise_as_New_Forces_Tr ansform_Retail_Banking_Sep04_OfA. Indiainfoline.icicibank.hdfcbank.com •http--www.pdf •http://www.pdf •http://www.upenn.pdf .pdf •http--www.com-pdf_forms-investorpresentation.

QUESTIONNAIRE 1. Which bank/s are you currently banking with? (Please mention all) 2. Which retail banking products do you currently have? •Home Loans •Auto Loans •Credit Cards •Savings Account •Personal Loans •Others ___________________________________ .

3. Rank the following channels from 1 to 5 in terms of how much do you use these channels ( 1 being the rank of the channel that you use the most) •Internet Banking •ATMs •Branch Banking •Phone Banking •Mobile banking 4. Tick the reason/s for not using the lower ranked channels mentioned in Q3: •It is not available with my bank •It is unreliable •I don’t know how to use it •I think its very complicated and confusing to use •Its more time consuming than the other methods •I don’t know if it’s available with my bank and for my banking needs •It is costlier than the other channels .

no ATM around my area etc ) •Any other reason ____________________________ 5.Disagree 5 .Somewhat Agree 4 .•I don’t have access to it (no internet connection. 3 .Strongly agree. •Information concerning internet banking transactions can be tampered by others .Strongly Disagree Trade off between Convenience and Costs •“Convenience is more important for fulfilling my banking needs than the extra costs involved” Reliability •“Branch banking is the most reliable channel since it involves face to face interaction” •I am concerned over the security aspects of internet banking transactions. no phone. 2 – Agree. Please mark your level of agreement with the following statements: 1 .

Rate the factor from 1 to 5 in terms of their importance in choosing a retail bank (5 being the highest and 1 being the least) •Charges/ Fees for services •Quality of service •Loyalty/ Personal experience with the bank •Branch ambience and location •Speed/ promptness of service •Brand image (like ICICI reliable) •Special promotional offers (0% interest on credit cards for 1 year etc ) .•I don’t like to use new technology based channels for my banking transactions” Triability •To what extent would you use internet banking and paid channels if it is available on a trial basis for a month Very interested ----------------------------------------.Not Interested 12345 6.

one being the lowest rating and 5 being the highest.) •High interest rates on loans/ overdrafts •Bad customer service •Less number of delivery channels (branches/ ATMs etc) •Time consuming transactions/ Processes •Lack of special offers for existing customers •Inefficient staff •Mention if any other reason ______________________________ 8.•Interest rates on deposits/ car loans/ auto loans/ credit cards etc •Others Please specify ________________________________ 7. should the banks do to retain you as a customer? •Better and innovative products •More convenient distribution channels •Less costly services . Rate the possible reasons for dissatisfaction from a retail banking provider (rate from 1 to 5. What according to you.

What could be you future financial needs in the next 2 years? •Home Loans •Car Loan . Which of the following information search tools which you could use for making a choice for your retail banking product? •Family/ Friends/ Relatives advice •Bank staff •Website visits •Newspapers •Banking magazines and reviews •Others 10.•Combining financial services to provide package offers •Bundling of banking services and non banking services (such as tickets to concerts. discounts at stores with credit cards etc) •Establish a better brand image. •Others please specify __________________________ 9.

“I would prefer the bank I am currently banking with. for my next retail banking need” •Yes •No: .•Credit Cards •Savings Account •Personal loans •Others ___________________________________ 11.

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