Icici Case Study Final | Online Banking | Banks

INTRODUCTION

ICICI bank was incorporated as a commercial banking company, by the Industrial Credit and Investment Corporation of India (ICICI), in May 1994. The first ICICI branch was started in June 1994 at Chennai. The bank provides an array of domestic and international banking services to enable national and international trade and business, investment and foreign exchange and treasury services. Right from its inception the bank focused more on incorporating advanced technology. The bank operated the largest chain of ATMs in the country, which amounted to more than 450 in 2000. All the bank's branches were fully computerized and networked through V-SAT technology. By 1999, the number of branches increased to 65 and the bank plans to have over 200 branches by the end of 2002. In April 2000, ICICI became the first Indian bank to be listed on the New York Stock Exchange

INTERNET BANKING
ICICI was always regarded as one of the best private banks to foster advanced technologies in the banking sector. As part of its technology drive, in 1997, ICICI launched 'Infinity,' the first Indian Internet banking service. The service was launched to reduce transaction cost and offer convenient banking to customers. This meant enabling the customers to access their bank account and make transactions at any time. ICICI realized that to make Infinity a success, it would have to invest heavily in sound Internet banking e-commerce technology. During 1995-99, ICICI invested Rs50 million in online banking technology solutions. In 1997, ICICI bought the 'BankAway' software from Infosys. BankAway was an e-commerce solution that provided the bank a platform to offer an integrated financial services portal to the customers. It offered access to account information, bill payment, cash management, trade, finance and online shopping. 'Infinity' was initially targeted at the non-resident Indians (NRIs) to enable them to manage their bank accounts in India through the Internet. According to the bank's sources, Infinity helped to increase the business generated from NRI customers from Rs300 million in 1997 to Rs1.4 billion in 1998. The service was also aimed at individuals in the age group of 30 to 50

years working in the corporate sector and proficient in using technology. However, over the next few years, the bank enhanced its services to attract other customers as well. As a result, by early 2000, ICICI had over 110,000 Internet banking customers. In the first half of 2000, ICICI's Internet banking customer base touched 275,000.

CORPORATE BANKING AT ICICI
At ICICI Bank, corporates are offered a wide range of products and services, the technologies to leverage them anytime, anywhere and the expertise to customize them to client-specific requirements. From cash management to corporate finance, from forex to acquisition financing, we provide you with end-to-end services for all your banking needs.

The result is an overall financial solution for your company that helps you accomplish your objectives:
• ICICI Bank can guide you through the universe of strategic alternatives - from

identifying potential merger or acquisition targets to realigning your business' capital structure. • ICICI Bank has been the foremost arrangers of acquisition finance for cross border

transactions and is the preferred financer for acquisitions by Indian companies in overseas markets. • The Bank has also developed Forex risk hedging products for clients after

comprehensive research of the risks a corporate body is exposed to, e.g., Interest Rate, Forex, Commodity, Credit Risk, etc. • We offer you global services through our correspondent banking relationship with

950 foreign banks and maintain a NOSTRO account in 19 currencies to service you better and have strong ties with our neighbouring countries • ICICI Bank is the leading collecting bankers to Public & Private Placement/ Mutual

Funds/ Capital Gains Bonds issues. Besides, we have products specially designed for the financial intermediaries to meet their unique requirements.

We support your international business by meeting working capital requirements of

export and import financing. We also have a host of non-funded services for our clients. • Whatever your industry, size or financial requirements, ICICI Bank has the expertise

and the solutions to partner you all the way.

TRANSACTION BANKING
The Bank delivers world class banking services to financial sector clients. Our current roaming accounts empower you with 'Anytime, Anywhere Banking'. They are designed for your convenience. Our comprehensive collection and payment services span India's largest CMS network of over 4,500 branches. We provide correspondent banking tie-ups with foreign banks to assist them in their India-related businesses.

LOAN SYNDICATION
The FISG is responsible for syndication of loans to corporate clients. ICIC ensure the participation of banks and financial institution for the syndication of loans. Some of the products syndicated are • • • • Project Finance Corporate Term Loans Working Capital Loans Acquisition Finance, etc.

SELL DOWN
ICICI Bank is a market leader in the securitisation and asset sell-down market. From its portfolio, the FISG offers different products to its clients in this segment. The products are: • Asset-Backed Securities (ABS).

• • •

Mortgage-Backed Securities (MBS). Corporate Loan Sell-down. Direct Loan Assignment.

BUYOUTS
As a part of a risk-diversification and portfolio-churning strategy, ICICI Bank offers buyouts of the assets of its financial sector clients.

RESOURCES
The Bank also raises resources, from clients, for internal use by issuing a gamut of products, which run from Certificates of Deposit (CDs) to Term deposits to Term Loans.

WEB BASED TOOLS REQUIRED FOR INTERNET BANKING OF ICICI

HARDWARE AND SOFTWARE NEEDED TO ACCESS ICICI BANK INTERNET BANKING

ICICI recommends the following:    Computer with 500MHz processor or higher 64 MB RAM or higher Internet connection of 28.8 kbps or higher

The following operating systems:  Windows 98, NT, 2000, XP

The following browsers:   Microsoft® Internet Explorer 5.XX and above Netscape® 7.XX and above

ONLINE SERVICES PROVIDED BY ICICI

THE VARIOUS ONLINE SERVICES PROVIDED BY ICICI ARE:
1. MONEY MANAGER
The Money Manager enables you to have a single access view of all your ICICI Bank relationships. Your account will need to be linked to a Net Banking username. The Money Manager will gather and aggregate your information from the following relationships: • • • • • • • • Savings Account Fixed Deposit Recurring Deposit Current Account (Individual) All Credit Cards All Loans (Individual) Demat Account B2- Branch Free Savings Account

With the money manager you can easily keep track of your money. Simply add your savings or current account, your credit cards and your home loans and watch as this innovative tool categorises and effectively present your money, enabling you to make smarter decisions.

Features and Benefits:
Single Access
• As a valued ICICI Bank customer, you probably have multiple accounts with us; a

Credit Card, a Home Loan, a Savings or Current Account and more. This tool enables you to track your money across multiple types of ICICI Bank Accounts in one place.

It’s quite simple. Just add your information for each account to set up your Money

Manager Account. This is a onetime activity that will only take a few minutes. The Money Manager tool then gathers your data and updates it daily.

Categorise spends
The Money Manager tool downloads and categorises your balances and transactions automatically on a daily basis. You are then presented with graphs that give you an immediate view of your spending, income, balances and net worth. This categorised view helps you manage your accounts effectively. You spends can be categorised automatically into a predefined list of over 80 categories. You can also add and edit categories. As time goes on, you will have fewer adjustment to make with this innovative tool.

Enter cash spends
With the Money Manager you can manually add and categorise cash spends. Tracking ATM cash withdrawals is not sufficient to understand your spending patterns. With detailed and specific categories to use, you will always know where your cash has gone. The My Wallet account will allow you to track your cash expenses. Each expense transaction you add decreases the Cash category and increases the category you choose. You'll see the change immediately. Note: You must add an ICICI Bank Account to the Money Manager before the Cash Tracking feature (My Wallet Account) becomes available.

View Spend Patterns
Make smarter financial decisions by tracking your expenses over time. You can view graphs and charts across all your accounts that will provide an insightful view into your spending habits. You’ll automatically realize if you need to cut down on eating out, entertainment or any other expense.

Set & Track Budgets

See the impact of today’s spending decisions on you bank balance at the end of the month, or the year. Learn your spending habits and see your account trends to set achievable goals. You will immediately know what steps you can take today, to save more tomorrow.

Get Reminders & Alerts
Track your budgets, payments and dues and set email and SMS alerts when you are nearing a due date, or overshooting a budget. The Money Manager can let you know when your Savings Account balance falls below a predetermined amount. This useful feature will ensure you never have to pay another late fee again. For example, in the case of your electricity bill payment, yoCash Wallet The facility allows you to track your day to day cash transactions as and when you do it. All you have to do is, send an sms from your mobile phone with details of your cash transactions. The transactions are added to My Wallet page in Money Manager with the rest of your cash amounts. The transaction date is recorded as the day you sent the SMS.

Investments
Your Investments are basically taken from the Demat holdings and Fixed Deposits of ICICI Bank account. They are updated on a daily basis. You get a graphical representation of your entire investment.

2. FUNDS TRANSFER(e cheques)
With ICICIBank.com, transferring funds from your ICICI Bank Account is very simple. There are various options provided online for transferring funds. You can choose to: • • • • Transfer Funds to Your own ICICI Bank Account across India Transfer Funds to Other ICICI Bank Account across India Transfer Funds to Non ICICI Bank Account using NEFT/RTGS across India Transfer Funds to Other Account using IMPS (24*7) across India

With Funds Transfer on ICICIBank.com, you can: • • • Forget about writing out & sending cheques/ DD's or pay orders to the payee. Free yourself from the worry of payment instruments getting lost/misplaced in transit. Transact from the comfort of your home or office through ICICI Bank Internet

Banking. • • Transfer money to any ICICI Bank account, anywhere in India. Transfer money to specified non-ICICI Bank accounts in over 100 cities across India.

With Funds Transfer on iMobile, you can: • ICICI Bank iMobile application users can now make financial transactions of up to

Rs.50, 000 per day for funds transfer, bill pay and mShop. This is accordance to the new Mobile Banking guidelines issued by Reserve Bank of India.

3. BILL PAYMENT
Benefits of using ICICI Bank Bill Pay: •Pay your regular monthly bills (telephone, electricity, mobile bills, insurance etc.) right here - from your desktop. Click here to view the list of billers. •No more missed deadlines, no more late fines - you can schedule your bills in advance and avoid missing the bill due dates. •Track your payment history - all your payments made to a biller are stored automatically for your future reference. •For certain billers, you can even view the bill online. So no more hunting around to find the right amount to be paid •For certain billers, you can pay your bills using ICICI Bank Credit Card.

4. PREPAID MOBILE RECHARGE

Recharge your Prepaid Mobile from the comfort of your home or office, anytime, anywhere with Prepaid Mobile Recharge Facility on ICICIBank.com. To avail this facility, all you need to do is follow the steps given below: •Login to www.icicibank.com with your Internet Banking User id and Password •Your Internet Banking User id and Passwords are provided in the Welcome Kit given to you at the time of opening your ICICI Bank account •In case you do not have your Internet Banking User id/ Passwords, please call our 24-Hour Phone Banking numbers •Go to Banking (or) Bill Pay section •Click on the Prepaid Mobile Recharge option •Select your operator name and circle; enter your mobile number and amount of recharge •Enter your Transaction Password to complete your transaction. •Your request will be completed in a few minutes.

5. ICICI BANK PURE GOLD
Gold has been traditionally the popular investment for Indians. In fact, India, even today is amongst the largest buyers of Gold in the world. ICICI Bank with its 'Pure Gold' offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organised avenue to satisfy that need, by taking care of the two key components Reliability and Convenience. Reliability: 24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold carries a 99.99% Assay Certification, signifying highest level of purity, as per international standards.. Convenience: ICICI Bank Pure Gold is competitively priced based on daily prices in the international bullion market. Currently, gold is available in 0.5g, 1g, 2.5g, 5g, 8g, 20g and 50g categories, subsequently other denominations will also be introduced.

***ICICI Bank Pure Gold is available through select branches of ICICI Bank and internet banking. ICICI Bank Account Holders may buy gold by issuing a cheque from their Savings Account, or by providing a Debit Mandate or buy gold online through ICICI Bank Net Banking. NonICICI Bank Account Holders may buy gold by giving a cheque in favour of ICICI Bank Ltd**

BUSINESS MODELS

BUSINESS MODELS
On account of the growing competition in the Internet banking sector, ICICI focused on enhancing and extending its business-to-business (B2B) and B2C services through tie-ups and acquisitions.  The bank entered into a 50-50 joint venture with Satyam Infoway in December 1999 to offer retail banking products and services on the Internet. R. Ramraj, Managing Director, Satyam Infoway, said, "ICICI bank has many corporate clients and the idea is to develop e-commerce on a B2B platform where payments will be facilitated through ICICI. The alliance is going to give a big fillip to B2B."  Infinity's services included account information, funds transfer, bill payments, online Real-Time e-shopping payments; communication with bank manager, various customized services. The products were targeted at two different customers: individuals and small businesses, and corporates having an annual turnover of over Rs 500 million.  In the first half of 2000, ICICI introduced new Internet banking products for school and college students. Kid-e-bank was introduced to help children between 5-12 years to open an account and check the account balance on the Internet. Bank@campus was a service for students to enable services like ATMs, Smart Card, educational loans etc. It was launched across the country in many campuses.  As part of its B2C programs, ICICI tied up with 10 shopping malls all over India. This allowed customers to shop and pay bills online from their accounts. It also tied up with 24 billing companies across 11 cities, including Bharat Sanchar Nigam Ltd. (BSNL) for bill payment. The bank also offered mutual funds related services to its customers. It also tied up with automobile major Ford, for local delivery of its car 'Ikon' against orders placed on the Internet. In 2000, ICICI bank acquired the Bank of Madura. Bank of Madura (BoM). BoM was amalgamated with ICICI bank from March 10, 2001, as a part of which, ICICI acquired BoM's customer base of 1.2 million. However, analysts felt the biggest gain was BoM's ITsavvy employees. By 2001, ICICI bank had emerged as one of the leading providers of Internet banking services in India. The bank was reportedly moving towards becoming a fullfledged e-commerce company in a couple of years.

ELECTRONIC PAYMENT SYSTEMS

ELECTRONIC PAYMENT SYSTEMS
Electronic modes of payment solutions offered by ICICI Bank include Funds Transfer, Real Time Gross Settlement (RTGS) and National Electronic Funds Transfer (NEFT). Further, ICICI Bank also offers the facility to send e-mail advices to the beneficiaries for all electronic fund transfers.

1. FUNDS TRANSFER
This facility can be used for payment by customers to beneficiaries who are ICICI Bank account holders. This method of funds transfer is the fastest and the most secure form of remittance.

2. REAL TIME GROSS SETTLEMENT (RTGS)
RTGS offers functionality of online, real time, funds transfer facility across banks. This facility can be used for transfers involving an amount greater than or equal to Rs. 2,00,000. RTGS advantages: • • • • Seamless movement of funds Real time transfers and faster credit Elimination of delays due to outstation funds transfer E-mail alerts to beneficiaries

3. NATIONAL ELECTRONIC FUNDS TRANSFER (NEFT)
NEFT facilitates transfer of funds electronically from one account to another, between NEFT participant bank branches in India. This product offers functionality of online funds transfer facility across banks. It is primarily for low value transactions and offers an efficient, secure, economic, reliable and expeditious solution for funds transfer.

SECURITY

SECURITY
ICICI Bank i-safe
At ICICI Bank, convenience and safety of account is of utmost importance. In view of this, ICICI introduced "i-safe" an application to enhance the security of online account with additional authentication of One Time Password (OTP), which is sent to your registered mobile number / e-mail ID. In event of any unusual activity in your Internet Banking access pattern, 'i-safe' will generate One Time Password (OTP) that will be sent to your mobile number / e-mail ID* registered with it. Authenticating the OTP on Internet Banking 'One Time Password Authentication' page is mandatory to access the account online. *OTP is sent on the registered mobile number to Resident Account holders and on e-mail ID to Non Resident Account holders. BENEFITS:   Sends an SMS / e-mail in case of an unusual access pattern in your Internet Banking account. Online account can be accessed only after additional authentication of OTP.

As per ICICI: FIREWALL One of the security mechanisms used to protect systems and your information is called a firewall. ICICI’S firewalls use a combination of industrial strength computer hardware and software that is designed to securely separate the Internet from its Internal Web servers, computer systems, networks and databases. During the secure online sessions with RBC Web sites, firewalls prevent unauthorized Internet traffic from entering our Web servers, systems and network.

TO ENHANCING SECURITY OF ONLINE BANKING EXPERIENCE ICICI SUGGESTS (in FAQ’S):
• • • • bank. • • You report any suspicious or fraudulent e-mail/sites to the bank immediately. Always read the online security tips provided by the bank from time to time Always ensure your PC is updated with latest anti-virus and operating system patches. Install personal firewall and anti-spy ware to protect your PC from internet attacks. Always change your online banking passwords periodically say every month. Review credit card & bank statements regularly and report any irregularities to the

MOBILE BANKING

MOBILE BANKING
With ICICI Bank Mobile Banking, you can check your account balance, transfer funds 24 x 7, pay your bills, book bus and flight tickets, recharge your prepaid mobile or DTH connection and do a lot more effortlessly and securely. Mobile Banking services work with almost all types of handsets and help you access your ICICI Bank account easily and securely. IMobile is ICICI Bank's mobile banking application. Easy, convenient and secure to use, iMobile lets you transfer funds, pay bills, book travel or movie tickets, recharge your prepaid mobile and DTH, locate an ATM, and a do lot more while you are on the go. Services Offered by iMobile: iMobile offers a wide range of banking and informational services to make banking convenient for you. You can access the following services through iMobile: • • • • • • • • • • • • • • Bank Account Credit Card Other Accounts mShop Bill Pay IServices Fund transfer Balance enquiry Open a fixed deposit Last 5 transactions Stop cheque request Cheque status enquiry Cheque book request Open recurring deposit

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