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BANKING SERVICES

PRESENTED BY:RATNESH WAGHMARE

INDIAN BANKING SECTOR

Introduction
Initially the banking industry only indulged in lending and borrowing of fund. However, due to globalization the banking sector has advanced further and further and now provides not only lending and borrowing of fund services but also includes insurance and mutual funds and related services. In India the banking sector is divided into two Public Sector Banks, Private Sector Banks and Foreign Banks further they were categorized as Retail Banking, Commercial Banking, Investment Banking depending on the type of services they provide

Current Banking Scenario


Current Banking Scenario Currently, India has 81 scheduled commercial banks (SCBs) 28 (19 Nationalised banks + 8 SBI Group + 1 IDBI), 29 Foreign banks and 24 Private banks. They have a combined network of over 53,000 branches and 17,000 ATMs. The public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18% and 7% respectively.

Type : public Traded as : BSE: 532174 NSE: ICICIBANK NYSE: IBN BSE SENSEX Constituent Industry : Banking, Financial services Founded : 1955 Headquarters : Mumbai, Maharashtra, India Area served : worldwide

Contd
Key people : K. V. Kamath (Non-executive Chairman) Chanda Kochhar (MD & CEO) Products : Credit cards, Consumer banking, corporate banking,finance and insurance,investment banking, mortgage loans, private banking, wealth management

About icici
It is the second largest bank in India by assets and third largest by market capitalization. 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 areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,883 branches and 10021 ATM's in India, and has a presence in 19 countries, including India.

Contd
The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and Canara Bank.

Marketing Triangle

7 PS OF MARKETING FOR ICICI BANK


PRODUCT MIX: 1. DEPOSITS: ICICI Bank offers wide variety of Deposit products to suit our requirements. Savings Account Senior Citizen Services Young Stars Fixed Deposits: Recurring Deposits: Roaming Current Account: Bank @ Campus ICICI Bank Salary Account

Product mix contd


2. INVESTMENTS ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold" Foreign Exchange Services Senior Citizens Savings Scheme, 2004

Product mix
3. ANYWHERE BANKING 4. LOAN 5. CARDS 6. DEMAT SERVICES 7. MOBILE BANKING 8. NRI SERVICES

PRICING MIX
The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market The pricing policy of a bank is considered important for raising the number of customers vis--vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position.

PLACE
This component of marketing mix is related to the offering of services. The services are sold through the branches. The 2 important decision making areas are: making available the promised services to the ultimate users and selecting a suitable place for bank branches. The number of branches OF ICICI: 1900 in India and 33 in Mumbai.

PROMOTION MIX
Advertising: Television, radio, movies, theatres Print media: hoardings, newspaper, magazines Publicity: road shows, campus visits, sandwich man, Sponsorship Sales promotion: gifts, discount and commission, incentives,etc. Personal selling: Cross-sale (selling at competitors place),personalized service Telemarketing: ICICI one source Call center (mind space)

PROCESS
Flow of activities: all the major activities of ICICI banks follow RBI guidelines. Standardization: ICICI bank has got standardized procedures got typical transactions. Customization: There are specialty counters at each branch to deal with customers of a particular scheme.

PHYSICAL EVIDENCES
Physical evidence is the material part of a service. Internet/web pages Paperwork Brochures Furnishings Business cards The building itself (such as prestigious offices or scenic headquarters)

THE PEOPLE
In a bank organization, employees are essentially the contact personnel with customer. Therefore, an employee plays an important role in the marketing operations of a service organization. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organisation to its customers.

Marketing strategy Basis for segmentation


Occupation :-Different products for different occupational segment identified Income:- Minimum balance serves as a income segment barrier Geographical:- Concentrated on Tier 1 & Tier 2 Cities trying to extend reach Age:Different products like student account
Hum hain na!

Targeting
Differentiated Marketing Strategy Tailors its marketing campaigns to meet the needs of its target prospects Creates differentiated product offering for different segment Use of technology in tracking customer segment
Hum hain na!

Positioning
Core proposition Hum hain na trust, credibility, total financial solution provider (brought about through its cross selling effort) Modernization process and physical evidence technology as the backbone and accelerator

Product differentiation
Variants in various basic products like savings bank accounts to suit different customer base and customer needs Product augmentation Redefinition of the banking products with extra benefits and features added to the products

Distribution Strategy
Cross selling of products as a major area of focus Creation of concept of DSA (Direct Selling Agent) Creation of concept of DST (Direct Selling Team) Effort on the part of the bank to reach the customer rather than waiting for the customer Use of internet, mobile, ATMs and other technological device to reach and serve the Hum hain na! customers

Outdoor Activities
Need to be seeneverywhere!! Events at corporate campus Promotional material at channel partner outlets Billboards Signboards Kiosks in residential and commercial complexes

FLOWCHART DEPICTING SERVICE FLOW OF ICICI BANK


ICICI BRANCH SERVICE BEING DIVIDED ATTENDED BY EXECUTIVE QUERIES BEING ASKED
CONVINCING THE PERSON CREATING LIKING FOR THE PRODUCT

REMOVING ANY MISCONCEP TIONS


EFFORTS MADE TO PROVIDE SOLUTIONS

ENDING WITH

SOLVING THE QUERIES/CLO SING THE DEED

EFFORTS MADE TO KNOW INTEREST

Growing importance of channels


Reach out to new customers Reach out to remote geographies Improve our existing offerings by providing faster processing through cost effective solutions Deliver new products Data collection and mining

Development of Alternate Channels is Important to

Extended Reach by Multi-channel Offerings

Multi-channel delivery model


m-Banking Internet Bank ATM Network Branch Network

Agent Network

Call centre

SERVICE RECOVERY
It refers to the actions taken by an organization in response to a service

failure. Reasons of Service failure: Service may be unavailable when promised It may be delivered later or too slowly Outcome may be incorrect or poorly executed Employees may be rude or uncaring Advantages . Procedural fairness: In terms of policies, rules, timeliness of complaint process Easy access to the complaint process & quick handling The procedures should be clear, speed & hassle free.

Service Recovery Strategies: Do it right the first time- make the service fail safe ,Encourage & track complaints Act quickly, Provide adequate explanations ,Treat customers fairly , Cultivate relationship with customers , Learn from recovery experiences , Learn from lost customers

ICICI
Handling senior management cases and ensuring quality control; achieving 95% quality score. Preparing audit reports and cases of common errors; collating reports to floor and providing feedback. Conducting sessions for R&R (Rewards and Recognition) to keep the team spirit high. Conducting root cause analysis and sharing feedback with officers of various channels for cases which lead to service recovery.

CONFLICT HANDLING
Conflict of Interest and Outside Activities Privacy/Confidentiality Gifts and Entertainment Know Your Customer / Anti Money Laundering Accuracy of Company Records and Reporting Protecting ICICI Groups Assets Workplace Responsibilities Compliance with Laws, Rules and Regulations

Hum hain na!