Branch banking vs.

Digital
banking and how to go
forward
Presented by: Ashish Kumar
Second year Student of
Asia Pacific Institute of Management New
Delhi
2K13A19@asiapacific.edu ashish_patial@yahoo.com
EXECUTIVE SUMMARY
• Banks try to capture more market
share and for that they adopt digital
business model.

• Gradually Banks reducing paper

based interactions, primary focus has
been on enhancing the product suite
with the value added service.

• Capture more customers with Digital

Banking.

• Road map for ING VYSYA

Digitalization
Digital banking vs. Branch Banking
• People like Digital banking because it is More
Cheaper, Faster, Easier and Less Time
Consuming in comparison of Branch
banking

• People like Branch banking because

it is More Secure, Receiving
information on product/ services
first hand, Personal
relationship/service, in comparison
of Branch banking
 Consumer Trends | Digital Adoption
• The increase in internet and mobile adoption
provides new ways for consumers to access
banking services.

• New channels include websites, social media,

mobile apps and others.

As per RBI data electronic transactions

are increasing day by day and
transactions in paper are decreasing. It
gives positive indication for Digital
Banking.
• New banking and investment apps are
more secure and make logging in and
use much easier than the website.
Consumers use these apps 30% more
frequently than any other app type.

• The main challenge in mobile

financial services is keeping
them simple and intuitive, as
financial services can be
complex

• As per RBI Mobile transactions

are increasing day by day.
Branches are expensive and un wieldy Online
Mobile Social Media

95% of new product sales happens at 2.4B Social

the branch 80% adults 52% CAGR for networking
use internet Mobile Banking accounts
and 51% bank Transactions
online
 SWOT Analysis of Branch and Digital Banking

SWOT Analysis of Branch Banking

SWOT Analysis of Digital Banking ETOP SAP
ETOP SAP
Customized branches according to
region Secure
Capture the rural market Knowledge accessibility
Environmental Factor Internal Factor
Online Market Unique Products Expansion of anti-cyclical Management
Innovation Technology activities Personal relationship/ service

New Services Cost Advantages

Building new client relationship Receive advice first hand
Emerging Markets Customer Loyalty
New Products Brand Name
Expanding the advisory and other
New Markets Cost Structure services offer to clients Focus on Customer service
New Technology Customer Service Wastage of paper Promotions
Lot of queue More convenient
Bad Economy Weak management
Govt Regulations Weak R&D Maximum Number of employee Highly qualified and experienced
Needed staff
Political Risk High staff Turnover
Slow Process Maturity matched funding
Volatile Revenue Changes of errors are high Time & money consuming
Substitute Products Limited Time hours High queues
The path to next gen digital banking
ENGAGE stakeholders ENABLE through
technology
Customer Reach Increase speed
• Channel Omnification • Applications
• On-the-go banking modernization
• Preferred channels • Cloud / SaaS
• Selective
outsourcing
Customer Experience Improve efficiency
• Unified experience • Business process re-engineering
• Self-service • Process automation
• Faster navigation • Reduce operating costs
Sales & Marketing Workforce Enablement
• Analytics and contextual services • Digital sales tools
• Predictive selling • Deliver faster & better service
• Loyalty • BYOD & remote availability
EXTEND business
models
Remote Access Tools
• Remote deposit capture
• Digital vaults and wallets
• Decoupled debit cards
Alternate Models
• NFC / QR Codes / P2P
• Advisory through PFM
• Gamification
Products & Pricing
• Product Packaging & bundling
• Simulations
• Relationship based pricing
Digital Banking core challenges
Retail, Investment Wealth Credit
Wholesale Payments & Insurance
Banking Management Organizations Cards
Banking

• Core Banking • Securities • Wealth • Loan Origination • Payments • Package

Modernization Back-Office Management • Credit Transformation Implementation
• Pricing & Transformation Advisory Information • Card System • Distribution
Billing • OTC • Portfolio Services Transformation Management
• Loyalty Trading
Derivatives Analytics

Digital Transformation
Bank address key challenges of Cost, Compliance & Customer Retention

Customer 80%
Web page 18 Web page 30
0 Seconds initiates 8 Seconds customers
slow to load Seconds doesn’t load Seconds
Transaction quit

Interested Unhappy Annoyed Dissonant

Analysis of ING VYSYA Product and services

ING VYSYA Unique features to its customer that help to improve

the
revenue and taping more market share.
• Self employed and small to mid sized enterprises

• New to Bank salary accounts

• Institutional customers

• Zwipe classic savings account for mass affluent

Segment
• Flexi current account targeted at owners of seasonal
businesses
• Easy credit overdraft facility for salary account
holders
• Institutional savings account and fixed deposit for institutional
clients
requiring customized solutions
• Creating stickiness by delivering superior experience on
internet
 Digital Road Map for ING VYSYA
Subject Happening Now Future Road Map for ING VYSYA
Content & Consumer Niche Targeting, Personalization / Gamification
Centricity Customization, Loyalty,
Location- Based offers
Online Advisory Services Video & Chat functions for advisory Comparisons,
Reviews services, Online Account Management

Online & Mobile Payments P2P, immediate transfers, NFC, Mobile QR Codes, Crowdfunding / Group
Wallets & Couponing Payments, hands-free
Multi Channels & Devices Omni-Channel, Direct Service Pure-Play Mobile

Self Services Expedited Payments, Configurable E-Vaults

alerts
Social Media Benchmarking, social log-in, social Social Investment for banks, reviews,
investments, marketing social media P2P payments,
Community
Banking model
 4 Online 5 DIGITAL
Advisory
3 Online Services
& Mobile
2 Online Payments
Digital*

1CONTENT & Advisory

Services
Digital* Innovative
• 24x7x365 access
CONSUMER Digital* Engaged to all services
CENTRICITY • Channel integration through digital
Digital* Personalized • Online Video & Chats channels
• Self Service • Online Account • Focus on functional
Digital* Transactional
• Peer 2 Peer / Management innovations and
• Online Video & Group payments • Partial fulfillment new
Informational Chats operating models
• Customer • Max. services through
• • Comparisons & enablement
Personalization / Reviews digital channels
Customization • Basic social media
• Online Account & analytics
• Loyalty Management
• Consumer • Online Chat
Centricity
Digital Banking is only about new technology or business models. So ING
VYSYA has to take these steps.

• Mobile is the game- Online Video & Chats

changer so Bank has to
make its mobile app • Increase Spending on
simple and more
popularize
• Increase Online Market
Presence Using Advanced
Technology Platforms • Bank has to make a
Such As Web 2.0 and
Social Networks
• Increase Push Towards
Web-Based Activities to
Put the Online Channel on
an Equal Footing with
Branch Networks
• Video & Chat functions
for advisory services
Customer Analytics Tools
• Online virtual chat
to Improve Customer
Relationships.
Comparisons & Reviews
• Competitors start to feature
customize app for reviews on their products &
services, especially in insurance.
Wealth management and
Bank Insurance
Online Account
Management
• Consumers can apply for
banking account, insurance
services etc. online
• Mobile signature and data
retention
 Digital ATMs Peer 2 Peer / Group
Pure Play
• Smartphone-enabled payments
• Online / Mobile only
ATMs • Immediate transfers

• Video Tellers • Crowdfunding

Omni-Channels
• Services are available
seamlessly on any E-Vaults
platform • E-vaults enable clients to
store important and critical
• Online / offline documents in the secure
convergence folders that are provided
along with their online
accounts.
• Mobile & Social Media p2p
payments :Social media
enables instant money
transfer among members
of the family and friends.
This is especially beneficial
to Gen Y consumers.

Direct Service
• Online channel for
offline competitors Online / Mobile
Services
Technology • Configurable alerts now span a
•NFC variety of needs, such as bill
Convenience •Hands Free payment reminder, incoming
Solutions •QR Codes payment alert, etc.
• Mobile Wallets &
• Expedited payments
Couponing
• Check deposits & mailing
Conclusion
Digital
Transformation:
• Not restricted to channels or
technology only, needs to be a
holistic transformation across
back-office, staff and
operations as well.

• About building the right mix of

“Bricks and Clicks”.

• No silver bullet, it has to be

unique strategy based on
business drivers, customer
segment, goals etc.

Thank you