Professional Documents
Culture Documents
Pooja Lalwani
(HR001)
Ishan Bansal
(HR008)
Gagandeep Singh (HR020)
Kriti Gupta
(HR023)
Abstract
Social media is gaining wider importance day by day. Around two third of the internet
population visit social networking sites and the traffic on these sites is increasing exponentially.
In order to leverage on this evolving opportunity, the Banking sector is deliberating on the role
that social media can play in the businesses and beyond.Viral Infection or Viral Marketing is a
term originated from the concept of social networking. The power of Information Sharing and
Transmission has infused a volcanic potential in this concept of viral marketing. Today, people
share views and take feedback before purchases and this activity of sharing is a crux of Social
Networking.
The ICICI Bank, being pioneer in Banking and Financial services has envisioned the essence of
Social Networking in Business and Operations and is focusing a lot on innovative methods to
use this media for customer acquisitionandretention. The Bank is undergoing a rapid transition
from its As-Is systems to To-Be systems. From 24X7 electronic branches to Social CRM to
Pockets applications, the number of relevant services are increasing and so the customer base
and revenues. The market offers a huge potential of over 20 million perspective customers
every year. This customer base if converted into sales gives immense opportunities for Business
Continuity in the long term.
The benefits of services over social media are immense. From a better return on investment
(ROI) to round the clock customer support to ever increased customer satisfaction, the medium
offers lot of ways to innovate. The concept of Social CRM provides newer and richer ways to
interact with customers and to build long term relations with them. Pockets apps add new
horizons to the market share of ICICI Bank. The Bank is also using social media for its internal
collaboration and development. ICICI Foundation extensively uses social media for the
interaction and community development with the Bank and its subsidiaries.
Risks and challenges come with benefits. Risks synchronize with the nature of business. In
Banking, security is of utmost importance and Social media is one of the most unsecure
medium of interaction. Doing critical businesses on such media requires extensive risk and
unsecure transactions. In order to overcome such risks, lot of customer education is necessary.
Along with above, Infrastructure building is also very important. Integration risks are also there
when Database or certain views are shared with Social networking sites. Data leakage may
happen in such cases.
The ICICI Group under its able executive management team is focused on strengthening its
franchise, capitalizing on new opportunities and investing in growth while exercising prudence
where requiredin the context of challenges in the environment. Ibelieve this strategic approach
will drive continuedstrong performance in the years ahead.- K.V. Kamath
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Table of Contents
S.No.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Topic
Background Note
- Company Overview
- Industry Overview
Introduction to the Case
Needs & Requirement Analysis
- Table 1
Business Solutions
- Table 2
SWOT Analysis of the solutions
- Table 3
Implementation & Business Challenges
Solution Vendors & Partners
Business Benefits Tangible & Intangible
Concluding Remarks
- Table 4
Appendix& Exhibits
- Exhibit 1
- Exhibit 2
- Exhibit 3
- Exhibit 4
- Exhibit 5
- Exhibit 6
- Exhibit 7
- Exhibit 8
- Exhibit 9
- Exhibit 10
- Exhibit 11
- Exhibit 12
References
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Background Note
Industry Overview: Banking Sector of India
Banking sector is the major constituent of the financial sector. Banking in India originated in
1786 with the establishment of Bank of India. Banking has helped in developing the vital sectors
of the economy and usher in a new dawn of progress on the Indian horizon.
The Indian Banking industry is governed by the Banking Regulation Act of India, 1949 and can
be broadly classified into two major categories,nonscheduled banks and scheduled banks.The
industry is currently in a transition phase. On the one hand, the Public sector banks, which are
the mainstay of the Indian Banking System, are in the process of shedding their flab in terms of
excessive manpower, excessive Non-Performing Assets and excessive governmental equity,
while on the other hand the private sector banks are consolidating themselves through mergers
and acquisitions. Banking sector operates in plethora of 3 business sections:Retail Banking,
Wholesale Banking and Treasury Banking. Banking customer group is broadly classified in two
groups depending on service usage- general customers and the industrial customers. Exhibit 1
shows the structural hierarchy of the Indian Banking Industry.
Company Overview: ICICI Bank
ICICI Bank is an Indian multinational bank and financial services company headquartered
in Mumbai. Based on 2013 information, it is the second largest bank in India by assets. It offers
a wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialized subsidiaries in the
BFSI sector.
Key Highlights of the Company are
1. ICICI Banks total current assets amounts to about USD 100 billion and Net profit after
tax for the fiscal 2012-13 was USD 1.5 billion.
2. The bank has a vast network of over 3,350 branches and over 10,500 ATMs in India.
3. The bank has a presence in 19 countries.
4. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed
on the New York Stock Exchange (NYSE).
Along with a foothold in retail and wholesale banking, the ICICI Group operates in the areas of
Investment Banking, life and non-life insurance, venture capital and asset management. Some
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of its major products include Pockets, Kisan Credit Card, iWish the flexi recurring deposit
scheme etc.
In Fiscal 2012-13, the Bank adopted a three-pronged strategy of balancing growth, profitability
and risk management. Through this approach, it achieved several key milestones, thereby
further strengthening its platform for profitable growth. The Bank is focusing a lot on rural
development under its main agenda of rural growth.The Bank carries out many CSR initiatives a
few prominent ones are -ICICI Foundation and Go Green Initiative.
The company focuses a lot on development through technology. ICICI bank believes in
infrastructure development, development of information systems and use of path-breaking
technologies. Recently in 2013, it has launched a series of Facebook applications under the
name Pockets which provide banking solutions over Facebook social networking site.
Some of the private banks are using their Facebook page to provide customers, exclusive offers,
product details and customer care services.
These banks are also using Twitter handles and Youtube channels for effective CRM and
customer engagement. The banking sector is also evolving its social media networking strategy
to involve its new workforce segment. Banks are in a process of developing social intranets for
such purpose. These intranets also supportLearning Management Systems (LMS) in addition.
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2. Customer Acquisition& Retention: with the ever evolving volatile market and increasing
competition, the need for customer acquisition and stability is of utmost importance for the
Bank. Along with Brand building, Viral marketing (word-of-mouth marketing) is also of much
importance. Feedbacks about the service whether negative or positive spread at the speed
of sound and influence purchasing decisions. Under such circumstances, marketers are
focusing and mapping Ps of marketing to Rs of Relation Building (as depicted in the
following figure).
3. Internal Collaboration, Training & Recruitment: just like Gen Y customers, newer
generation workforce are using social media for interaction and networking. The bank can
leverage this opportunity to encourage productive and innovative interaction among
employees. Those with common interests and goal can form communities. Various LMS
(Learning Management Systems) can be formed through such initiatives. The initiative also
provides the Bank to use social media for employee branding, employee development, job
hiring, background verification etc.
about social media. But the main obstacle is the perception that the return on investment
(ROI) from such initiatives is uncertain. Following figure depicts McKinsey matrix for social
media targeted marketing. Refer to Exhibit 4 for the corresponding McKinsey matrix.
Table 1shows the mapping of needs with corresponding requirements and suggested proposals
for the implementation.
S.No.
Need
1.
2.
Customer Acquisition
and Retention
attracting new
customer segment
Internal Collaboration,
Training & Recruitment:
handling a new
generation workforce
3.
Corresponding Requirement
Suggested Solutions/
Proposal
CRM solutions that take into account - Advanced CRM
social interaction feature of the
solutions
users.
- Intelligent CRM
- Technological requirements
Solutions
- People Solutions
- New ways of Customer
- Use of social media
segmentation& targeting
through collaboration
- Advanced social engagement
- Viral Marketing
models
- Training models through social
- Development of
media, e.g. Twitter
employees social
- Advanced ways of recruitment
communities
- Advanced Learning Management
- LMS through
Systems
participation
Table 1
Business Solution(s)
Social CRM a new way of Customer Relationship Management
Today, more than ever before, the ability to maximize customer loyalty through close and
durable relationships is critical to the banks ability to grow its businesses. In addition to
supporting enterprise view of customers across multiple host systems, it is also important to
obtain a global view of customers across multiple legal entities and countries for a multinational bank. This helps manage the various lifecycle stages in a relationship with the
customer, and access comprehensive segmentation information, all through a unified view.
The ICICI Bank today, lays primary focus on retaining thecustomers or potential customers by
linking services and increasing their stakes with an account in the bank. It is important more so
because, technology has penetrated the scope of operations of all banks thereby enabling most
banks to offer similar products and policies. In such a competitive environment, service
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Marketing: The marketing module not only generates demand through multi-channel
and multi-wave campaigns, but can manage campaigns that maximize ROI on every
marketing dollar.
Table 2 (Source: Infosys, Accelerate Innovation, Get a 360 degree view of customers, Finacle
CRM Solution)
Key advantages of Finacle CRM
Start with complete and accurate customer information: Finacle CRM provides a single
customer truth with a complete and unifiedrelationship view of the portfolio held
across the bank and multiple host systems.
Market the right products to each customer: Targeted right-selling involves offering the
best suited product, for every customer,based on their individual needs and
preferences. With Finacle CRM, sales andmarketing programs become more effective
because they are guided by customerintelligence.
Originate and process online: Automated product origination and processing makes it
possible for customers to getquicker responses to their requests.
Improve sales results: Finacle CRM contains an automated and configurable quota
management system tohelp banks measure the relative performance of each sales staff
member
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Refer to Exhibit 8 for the ICICI Banks hiring pamphlet on its Facebook Page.
Weakness
Opportunities
Risk Prudence
Efficient Capital Deployment
Growing Consumerism
Mitigate credit risks
Untapped consumer segments
Operational Integration and consumer
confidence
Table 3 - SWOT
Security Concerns
Legal Compliances
Past allegations against the companys
online transactions
Implementation challenges
Receptivity of employees and
consumers
Presence of other non-financial players
offering similar solutions
Threats
Low stickiness
Low loyalty of consumers
Preference for individual identity,
personalized services & security
Mismatch in internal and external
stakeholders expectations
Morale and motivation issues of
employees
Saturated markets
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Inadequate focus on objectives: This typically occurs after the system is the process of
implementation. When hard times hit, the organization may lose sight of its goals and
eventually steer away from the clearly laid out objectives. Goals may get interchanged,
may become mixed up and could also potentially lose their original importance.
Insufficient Resources: Another challenge of is that of inadequate or insufficient
resources. Organizations start lessening their budgets for the current phase in order to
handle the initial extortionate costs that are incurred. Organizations tend to fail at
utilizing the required resources for success and that can indeed result in failure.
Faulty Metrics: Inappropriate metrics also cause hassles in such CRM and transaction
system. Organizations constantly fail to use the right metrics. This is often seen to be a
reason for failure. In fact, failure to choose the right method of measurement is a main
reason of why this system may not work.
People
viewing their job, their commitments and their operations from a customer
perspective. This could result in customer dissatisfaction and eventually loss the
company its profits; thereby making the software a wasteful and often a loss making
expenditure.
Ineffective Communication: poor communication of requirements and expectations to
the people can result in role ambiguity as well as lower commitment and focus towards
deliverables. If poor communication is a feature of the system, it will not function
properly. All significant people in the business must accurately know the correct
information needed and how to use it to be able to make the best use of the software.
Leadership Orientation:Leadership is extremely crucial for the organization. Leadership
must be far-sighted and receptive to organizational dynamics. In the absence of a
strong leadership, many problems could arise in terms of implementation plans.
Management must lead by example.
Poor Planning: planning is another people-oriented feature which must be taken into
consideration. If the plans that were originally proposed for the company are not right
for its customers the most apt thing to do is to roll it back and start from scratch. Many
companies make the mistake of implementing the system as a complete solution. This
can be risky. It is better to break down the projects into manageable pieces that occur
on a short-term basis. It is also equally important to incorporate all the necessary
departments so the projects are small and flexible enough to allow adjustments as they
occur.
Technology
Security: In Banking, security is of utmost importance and Social media is one of the
most unsecure medium of interaction. Doing critical businesses on such media requires
extensive risk and unsecure transactions to overcome problems of data leakage,
integration risks associated with database sharing. In order to overcome such risks, lot
of customer education is necessary.
Straight Through Processing (STP): Another big challenge for Finacle is STP of most of
the financial transactions. With the ICICI group having several companies under its
umbrella, Finacle needed to seamlessly integrate with multiple applications such
ascredit cards, mutual funds, brokerage, call centre and data warehousing systems.
Managing Transaction Volumes: The scalable and open systems based architecture,
enabled Finacle to successfully manage the resultant increase in transaction levels from
400,000 transactions a day in 2000 to nearly 2.1 million by 2005 with an associated
growth in peak volumes by 5.5 times. With Finacle, the bank currently has the ability to
process 0.27 million cheques per day and manage 7000 concurrent users.
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Financial Considerations
Heavy Outlay: The initial problem begins with the expensive costs that occur when
implementing the system. For CRM systems, initial costs are because of vendor given
support based solutions. For Pockets, User Interface integration costs are also high. It is
a huge investment to maintain a customer database and that too of such a large
measure. The additional expense comes from the money needed for the computer
hardware, software, and personnel that is needed to a) build it and b) maintain it.
These extortionate costs can lead to aadverse vibe within the company and can lower
the receptivity towards its implementation and may also result in a system collapse.
Tardy and slow returns:The penultimate challenge of solutions over social media is the
fact that it gives off slower and tardy returns. It is often seen that the large investment
that was originally spent may not show returns for quite a few years. This can serve to
test and try the patience of the company and can lead to employees and management
slacking in their efforts to improve the implementation. A lot of these problems can be
resolved and held under control as long as the company is dedicated to follow through
with the entire process.
Refer to Exhibit 9 for the comprehensive details on the implanting solutions through Social
Media.
increasing overall efficiency. Currently, only 25 percent of all transactions take place through
branches and 75 percent through other delivery channels. This reduction in routine transactions
through the branch has enabled ICICI Bank to aggressively use its branch network as customer
acquisition units. On an average, ICICI Bank adds 300,000 customers a month, which is among
the highest in the world. See Exhibit 10 for the break-up of transaction activities pre and post
Finacle.
2. Facebook- the vendor for Pockets: The ICICI Bank and Facebook social networking site rolled
out a new venture called Pockets apps in September 2013. The app primarily targets at young
customers and enable them to transfer money, recharge mobile phones and book movie tickets
from their Facebook pages. This new app is a natural progression of the Your Bank Facebook
app that the Bank introduced last year in 2012, enabling its customers to view their savings
account details and statements while on Facebook, as well as to order a cheque book and
upgrade debit card. See Exhibit 11 for the Facebook promotion of pockets.
Speaking on the launch, ChandaKochhar, MD & CEO, ICICI Bank said: "The app will enable young
consumers who spend a lot of time on Facebook to carry out a wide set of transactions without
having to leave the social media site".
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and create a pipeline of opportunities for right-selling. Social CRM can integrate with other
white-labeled solutions to develop the right message for each customer.
Increase operational efficiency: SocialCRM supports business automationfor processes and
business activities,eliminating manual tasks and reducingprocess time. Straight-throughProcessing (STP) abilities speed up turnaround and allow for speedy completion of tedious
tasks. And the multilingual Web-based single repository of information enables remotely
located bankers to collaborate and transact seamlessly.
Increased global reach: strong presence worldwide can be achieved through the reach of social
media. In the words of SujitGanguli, Head Corporate Brand and Communications, We have
built a 2.1 million+ strong community on Facebook in less than 18 months.Our YouTube channel
is a library to view our advertisements, watch interviews of our senior management, view
product videos and share them among each other. Our channel has garnered over 1.1 million
views in one year and eight months, and has helped us to disseminate video information on
other platforms such as Facebook and Twitter.
Lower the total cost of ownership: SocialCRM is future-ready because it is Web-based and built
on open technologies that can be seamlessly integrated with other enterprise applications. The
solutions robust architecture and proven scalability protects the banks technology
investments.
Round the clock customer support: Social media is one of the arms for 24*7 customer support,
educating the fans about security issues and safe banking practices, driving and recruiting work
force, the integrated use of prominent networks and customized solutions derived from social
media data will go a long way in creating social ICICI bank of the future.
Concluding Remarks
Effective collaboration of People, Processes and Technologies with that of necessary data and
information can lead to path breaking innovations. These innovations can change the way we
access services and utilities. The banking sector is the one of the most important sectors of an
economy and is vulnerable to security issues and risks. With the invention of new technologies,
risk of securities and hacking increases. ROI and Costing are also another area of focus in such
niche areas of operations and must be the prime focus of all technologies and processes no
matter the direction of innovation.
Social Media, the medium which is traditionally symbolized as a time killer, and is often related
to wasteful ventures, can actually be used for productive processes like Marketing and Banking.
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To facilitate this, the need of an hour is continuous innovation and development. The need to
gather relevant data and filter noise so that useful information can be produced and The
Banking industry should focus on this need.
The way ICICI has successfully leveraged on this need can serve to be a benchmark for other
players in the industry to follow and take Social Networking to serve a productive and a crucial
end. Thus, with Creation, Collaboration and Connection, such Banking solutions over social
media can change the way we share and use information and information systems. In effect,
the right balance and mix of People, Processes and Technology can serve to be a great leap
forward for the way the banking system is governed. Not only will this aid the way customers
look upon towards the industry, but also will it give the banks a key competitive edge in the fast
paced, volatile and saturated industry. Refer to Exhibit 12 for Listen-Engage-Optimize model
that provides a futuristic approach to Banking through Social Media.
Table 4 summarizes the Objectives by mapping Business Intelligence with Social Intelligence.
Table 4
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Exhibit 3 Financial Brand 2013 Social Media Rankings of the world banking industry
Facebook Eng. Rate
Twitter
Followers
Tweets
Sent
YouTube
Views
Power
100
Total
Score
Bank
Area
Facebook
Likes
Chase
USA
3,794,363
0.04%
22,279
559
116,052
2,589
Capital One
USA
2,886,260
0.07%
74,703
3,410
4,671,644
2,454
ICICI Bank
IN
2,279,021
3.14%
8,419
13,571
1,124,893
1,753
BofA
USA
1,013,123
7.00%
199,594
1,926
5,138,842
1,732
E*TRADE Bank
USA
68,561
3.97%
11,883
614
12,318,934
1,424
HDFC
IN
1,585,454
1.61%
7,794
7,350
304,242
1,135
Citi
USA
736,466
4.83%
149,319
7,305
2,770,748
1,121
Axis
IN
1,311,641
2.61%
2,128
776
1,090,963
1,006
GT Bank
NIG
1,239,860
2.20%
51,976
10,302
285,514
1,000
10
Wells Fargo
USA
522,071
2.47%
44,117
2,806
5,550,920
868
11
Credit Suisse
CH
57,730
0.75%
18,760
1,868
9,469,284
752
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Vulnerability
Return On Investment
Training
Information Security
Customer Complaints
Channels
Branches
94 %
25 %
ATM's
3%
43 %
Internet &
Mobile
2%
21 %
Call Centers
1%
11 %
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IDRBT (An RBI body) report, Social Media Framework for Indian Banking Sector, August
2013
Indian Banking Industry Rising Above the Waves, ( January 2013) Dinodia Capital
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978-0-7506-1707-9
Jump up ^ SAP Insider (15 November 2007) Still Struggling to Reduce Call Center Costs
Without Losing Customers?
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(IJBMI), 2(9), 121-131. [1]
DeGregor, Dennison (2011). Customer-Transparent Enterprise: Beyond 20th Century CRM.
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articles.economictimes.indiatimes.com/2013-09-18/news/42183270_1_chanda-kochharicici-bank-lehman-brothers
ICICI bank Youtube channel: www.youtube.com/user/icicibank
thefinancialbrand.com/30954/power-100-2013-q2-bank-rankings/
www.infosys.com/finacle/customers/case-studies/pages/investment-in-technology.aspx
articles.economictimes.indiatimes.com/2013-09-25/news/42394770_1_icici-bank-chandakochhar-farmville
Is ICICIs Facebook Application Pockets Violating Indian Cyber And Banking Laws? an
article at www.perry4law.org/cecsrdi/?p=1041
www.gadgets.ndtv.com/telecom/news/vodafone-and-icici-launch-m-pesa-mobile-paymentservice-in-the-north-east-444873
ICICI Fb page: www.facebook.com/icicibank
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