Digital Strategy. CLSA India Forum

Transcription

1 Digital Strategy CLSA India Forum Nov 2015

2 Emerging Digital Scenario in Financial Services Multiple Players searching for spaces to occupy (aggregators, banks, payment banks). First mover advantage. Recognition that Digitization can both enhance and replace delivery models 2

3 FAQs around Digital Banking Digital Noise How to measure digital success Threat from Payment Banks Compete or Collaborate The future of wallets and App Fatigue Will branches disappear or reconfigure How not to lose the eyeballs of customers 3

4 Our Take: Management Beliefs - Digital Focus on digital channels as core across lifecycle and not as alternate Technology focused on finding, serving and engaging customers Creating different dining experiences from one kitchen menu Convenience does not imply faceless banking; human connect remains critical Partnerships will provide the context or application for frictionless banking Strategy must generate productivity, profitability and efficiency 4

5 Digital Strategy more important than Technology Technology is not an advantage per se: Available off the shelf unless the technology is highly proprietary Limited lag time of 3-6 months between competitive actions Our transactions already use technology comprehensively - 85% of transactions electronic (Range: 80%-90% for top private sector banks) However an integrated Digital Strategy can extract significant value via: 1. Innovation as Service Differentiator 2. Transformation to Online Offerings 3. Partnering with the Digital Ecosystem 4. Evolution to Online and Digital Channels 5. Improved Decision Making & Analytics 6. Operating Efficiency in Front & Back Office 5

6 Innovation as a Service Differentiator 1 Video Branch Account Number of Choice Instantly redeem credit card reward points Choose denomination at the ATM Cheque images on account statement Mobile transfers with cardless access at our ATM 6

7 Transformation to Online Offerings 2 Assets Personal Loans New and Pre Approved Credit Cards New and Pre Approved Car Loan LAP Gold Liability New Savings Account A/c Upgrades Card Upgrades RD FD Investments, Payments. Health Insurance Life Insurance Mutual Funds FOREX Funds Transfer Abroad Others Lockers Tax Filling Assistance Travel Booking Bill Payments PMSBY/PMJJBY We are now ready to offer a comprehensive product suite to our customers through the Digital Channels Launched In Progress New 7

8 Partnering with the Digital Ecosystem 3 Online Financial Aggregators Business Correspondent E Marketplaces Turn Key Technology Solutions Fin Tech companies Wallet powering Payment Network Providers BIN Sponsors for Merchant Aggregators Loyalty Programmes and Campaigns Tech Partnerships 8 Social Networking Portals

9 Evolution to Online & Digital Channels 4 Aggregators Efficient Use of Own Channels Website/ Indusnet ATM Personali zation Mobile App Digital Branch Social Banking: Facebook & Twitter Marketplace Partnerships Snapdeal 2 Wheeler Sale Car Dekho Website Content Solution 9

10 Improved decision making and analytics 5 Tab based sales generation deployed in ~1,400 locations. Only images and data flow. Multi party linkages e.g. CIBIL & field verification. Credit Decisioning for 2W < 2 hours. Leadership in 2W! Progenie Mobility Solution 10

11 Operating Efficiency in Front & Back Office 6 Front Office Examples Alternate channels: Virtual & Tele RMs 360 degree customer view Analyzed pricing Context specific product offers Customer Relationship Management Corporate Banking portal and Mobility solutions Digital vertical with digital business heads Direct Connect to Call Centre Back Office Examples Collections via hand held devices Parallel processing at Mumbai and Chennai hubs to free up capacity Continuous improvement: 100 s of projects via just-do-it initiatives Usage of cloud based solutions to host applications and provide low cost access in remote locations Fraud and AML alerts on in flight transactions Solution Delivery Team Employee certification programmes API based integration 11

12 Thank You