Mahindra War Room By Team: Marvin
Introduction
Mahindra has been providing financial services predominantly in semi-
urban and rural market in physical formats. With this format, Mahindra
Finance has built a base of 6 million customers and 3 million guarantors.
But, the recent shift in urban market towards digitalization has urged the
need for the entire finance system to go digital.
• Tata Capital
Competitors of • Bajaj Finance
Mahindra • ICICI Bank
• Hero Fincorp
Finance • Axis Bank
The shift
• DIGITAL LITRACY: With the birth of low-cost smartphones
and affordable internet connection, India is moving
towards digitalization. While services like Taxi and
medical services have gone online, financial services need
to enter the online business now.
• RURAL MARKET MENTALITY: While most of the nation
has gone digital, in some parts of rural India, complete
digitalization is still a far cry. They are dependent on
physically present sources due to lack of education and
trust issues.
• EXPANDING SCOPE OF FINANCIAL SERVICES: The scope
of financial services is no more limited to just providing
loan. Insurance, credit, EMIs and even loan on different
activities have become quite pre-dominant.
• In a nutshell, Mahindra needs to adopt a Phygital model of
business with expanding services in domains other than
general loan services.
Emerging trends in consumer behavior
• From the last 5 years we have observed the trends of emerging digital banking in India. The
purchasing power of customers has increased manifold, and the traditional buying decision
process has become more dynamic. The expectation of customers with respect to service
providers has hence transitioned from information keepers to trusted advisors.
• Customers look for convenience these days and tries to minimize their time spend on
waiting for long queues in banks. Digital banking provided plethora of options to choose
from and customers are now expecting their needs to be met instantaneously. This would
be taken as an opportunity and a perfect target market to launch something which is yet
not existing in the market.
• Banks can follow the rule of “customer first and employee second”
• Customers to be treated as the first priority and made them feel that bank do care for their
investments and profits. Serving all the customers in order to satisfy their needs will impact
on the goodwill of the bank.
• Focus areas:
• Work on building relationships with customers
• Come up with products or services which are not there in the market
• Focusing on the above-mentioned areas help banks to keep pace with technology and
changing consumer buying pattern. Consumers are more into digital and online banking services
which provide solutions on the touch of their fingertips.
Phygital Model
AS TECHNOLOGY AND DIGITAL
SERVICES CONTINUE TO INGRAIN DUE TO THIS PARADIGM SHIFT,
THEMSELVES INTO MORE ASPECTS MAHINDRA FINANCE SHOULD GO
OF OUR LIVES, THE FINANCIAL FOR PHYGITAL MODEL TO
SECTOR HAS NOT BEEN IMMUNE. TRANSFORM ITS FINANCING.
NEW TECHNOLOGY HAS GIVEN WAY
TO NEW SERVICES AND WITH NEW
SERVICES COMES DISRUPTION OF
THE OLD.
THE DIGITAL INDIA
• Digitization: Convenience is the main constituent to
build a good customer experience. ICICI has made so
many banking service digital. Now is the time, to expand
the horizon to some services to go digital, which even
the customer did not expect.
• Demonetization: Provide a service for free, get a huge
customer base and generate revenue.
• Dematerialization: Replace the offline product with an
online service.
• Democratization: Customer is the new king. Use the
pull marketing concept and do not push your product/
service on the customer.
Fintech: Fintech is a broad, far-encompassing term
which primarily refers to banks and financial institutions
looking to make full use of available hardware and
software capabilities; as well as referring to the systems
themselves. Usage of Robocalls, online budgeting tools,
spending tracking, even automated chatbots for
customer service can be the ways in which Fintech is
altering the landscape of financial services.
Initiatives
Digital Disruptors: Bypassing the need for expensive
processors, lengthy loan procedures, or extensive
footwork; Fintech disruptors come in all shapes and
sizes. Mahindra can provide small business lending
services through an automated lending platform.
• AI and Machine learning: The world of
AI and machine learning will leave an
indelible mark on the financial industry.
In fact, it already has. It can help
Mahindra Finance in managing complex
algorithms created from enormous
amounts of data and providing
insights into consumer behavior,
providing real-time investment insights,
regulatory compliance, and many more.
• Blockchain: It is often associated with
Bitcoin and other cryptocurrencies;
however, Blockchain technology offers
tremendous possibilities for other
areas. Blockchain’s ledger system builds
trust with users, increases transparency,
and minimizes human error as well as
risk.
BUSINESS MODELS
Design to distrupt
Augmented reality (AR) is an interactive experience of a real-world environment where the objects
that reside in the real-world are enhanced by computer-generated perceptual information.
Business
Model: AR
ICICI can launch their Augmented reality mobile app with lot of interactive features that reformed the
way customers manage their bank accounts. The application have all the existing Internet banking
features like - to see their current balance, spending in the last two weeks, categories they have spent
most on and future payments due on their credit cards.
account Apart from this, AR app can also provide online Robo Advisors (virtual advisors) which help or
warns the customers for their spending or payment due or minimum account balance etc. This app
management allows them to make a border line for their online payments and if they tries to dodge the savings
v/s spending line, app will automatically stop their payment. This will help customers to save as
much as they want.
Application can also provide with warning notifications as customer have a tendency to forget
payment deadlines and this would result in spending more in the form of fine or account charges.
This app also allows current account customers, mainly business accounts to deposit their cheques
online (without going to bank and waiting in the queue). Sender will sigh the E-cheques and send to
the receiver and then they will deposit the same online.
Business Model: AR Property Guide App
Using the AR Property guide app, a user can get all
the possible information about a property just by
After the introduction of Real estate (Regulation and entering the basic information about that particular
Development) Act, investment in property has property as asked by the app. With our app the
become transparent and more attractive. We can property dealers can showcase their properties
create a product that can enhance the customer inside-out. Personalising it more can make the app
experience of buying a property. more likeable. Hence, a customer can enter rough
details about how his dream house should look like
on the property, and we can build them a blueprint.
It can be most useful for those who can not pay a visit
to the property due to time or distance issues. Our AR Other stakeholders would include the furniture
property guide app can give them a visual dealers and paint companies. Our app allows a
representation of how the property would look like in customer to create a virtual representation of the
real life along with other relevant details that a house. This can be done in association with certain
customer would want to know while making a furniture and paint manufacturing companies.
purchase decision.
• It is show time for the Augmented Reality on how it can
innovate industries beyond entertainment. There is need for
more efficient and healthy food production.
• The AR Farm manager aims to optimize farming by inculcating
a scientific approach to yield a robust harvest.
• It can plan your entire harvesting routine with proper time at
which the action needs to be done and the amount of input
Business Model: used. The AI system can also predict weather conditions.
Hence, eradicating the failure due to uncertainty of weather.
AR Farm manager • The AR system can also tell the farmer about the soil quality
and track the presence of pests and insects in the fields. It can
also categorize as to which nutrients present in the soil are
helpful for the crop and which are harmful.
• The AR farm manager will also give you an estimated budget of
cost incurred in the entire process of harvesting. This can help
in better determination of the price of the crop.
• Furthermore, if a farmer uses the app for his production, it is
more likely that he would meet his funding requirements by
taking loan from the bank. The most important factor in
success of this business model would be marketing and
education of the app usage.
THANK
YOU
