This document discusses the transition from branch banking to digital banking. It notes that banks are increasingly adopting digital business models to capture more market share. Digital banking is seen as cheaper, faster and more convenient than branch banking. However, branch banking provides benefits like security and personalized service. The document outlines strategies for ING VYSYA bank to expand its digital offerings, such as providing online advisory services, payments, and account management. It also discusses challenges like maintaining simplicity and security with digital financial services.
1. 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
2. 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
3. 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
4. • 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.
Consumer Trends | Digital Adoption
As per RBI data electronic transactions
are increasing day by day and
transactions in paper are decreasing. It
gives positive indication for Digital
Banking.
5. • 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.
• 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.
6. Branches are expensive and un wieldy
95% of new product sales happens at
the branch
Online
80% adults
use internet
and 51% bank
online
Mobile
52% CAGR for
Mobile Banking
Transactions
Social Media
2.4B Social
networking
accounts
7. SWOT Analysis of Branch Banking
ETOP SAP
Customized branches according to
region Secure
Capture the rural market Knowledge accessibility
Expansion of anti-cyclical Management
activities Personal relationship/ service
Building new client relationship Receive advice first hand
Expanding the advisory and other
services offer to clients Focus on Customer service
Wastage of paper Promotions
Lot of queue More convenient
Maximum Number of employee
Needed
Highly qualified and experienced
staff
Slow Process Maturity matched funding
Changes of errors are high Time & money consuming
Limited Time hours High queues
SWOT Analysis of Digital Banking
ETOP SAP
Environmental Factor Internal Factor
Online Market Unique Products
Innovation Technology
New Services Cost Advantages
Emerging Markets Customer Loyalty
New Products Brand Name
New Markets Cost Structure
New Technology Customer Service
Bad Economy Weak management
Govt Regulations Weak R&D
Political Risk High staff Turnover
Volatile Revenue
Substitute Products
SWOT Analysis of Branch and Digital Banking
8. The path to next gen digital banking
EXTENDbusiness
models
ENGAGE stakeholders ENABLE through
technology
Customer Reach
• Channel Omnification
• On-the-go banking
• Preferred channels
Increase speed
• Applications modernization
• Cloud / SaaS
• Selective outsourcing
Remote Access Tools
• Remote deposit capture
• Digital vaults and wallets
• Decoupled debit cards
Customer Experience
• Unified experience
• Self-service
• Faster navigation
Improve efficiency
• Business process re-engineering
• Process automation
• Reduce operating costs
Alternate Models
• NFC / QR Codes / P2P
• Advisory through PFM
• Gamification
Sales & Marketing
• Analytics and contextual services
• Predictive selling
• Loyalty
Workforce Enablement
• Digital sales tools
• Deliver faster & better service
• BYOD & remote availability
Products & Pricing
• Product Packaging & bundling
• Simulations
• Relationship based pricing
10. 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
banking and mobile banking
11. Future Road Map for ING VYSYAHappening NowSubject
GamificationNiche Targeting, Personalization /
Customization, Loyalty, Location-
Based offers
Content & Consumer
Centricity
Comparisons, ReviewsVideo & Chat functions for advisory
services, Online Account Management
Online Advisory Services
QR Codes, Crowdfunding / Group
Payments, hands-free
P2P, immediate transfers, NFC, Mobile
Wallets & Couponing
Online & Mobile Payments
Pure-Play MobileOmni-Channel, Direct ServiceMulti Channels & Devices
E-VaultsExpedited Payments, Configurable
alerts
Self Services
Social Investment for banks, reviews,
social media P2P payments, Community
Banking model
Benchmarking, social log-in, social
investments, marketing
Social Media
Digital Road Map for ING VYSYA
12. Digital*
Personalized
• Self Service
• Peer 2 Peer /
Group payments
• Customer
enablement
• Basic social media
& analytics
• Online Chat
Digital*
Engaged
• Channel integration
• Online Video & Chats
• Online Account
Management
• Partial fulfillment
• Max. services through
digital channels
Digital*
Innovative
•24x7x365 access to
all services through
digital channels
•Focus on functional
innovations and new
operating models
2 Online
Advisory
Services
3 Online
& Mobile
Payments
4 Online
Advisory
Services
5 DIGITAL
Digital*
Informational
• Personalization /
Customization
• Loyalty
• Consumer
Centricity
Digital*
Transactional
• Online Video &
Chats
• Comparisons &
Reviews
• Online Account
Management
1CONTENT &
CONSUMER
CENTRICITY
13. Online Video & Chats
• Video & Chat functions for
advisory services
• Online virtual chat
Comparisons & Reviews
• Competitors start to feature
reviews on their products &
services, especially in insurance.
Online Account
Management
• Consumers can apply for
banking account, insurance
services etc. online
• Mobile signature and data
retention
Digital Banking is only about new technology or business models. So ING
VYSYA has to take these steps.
• Mobile is the game-
changer so Bank has to
make its mobile app simple
and more popularize
• Increase Online Market
Presence Using Advanced
Technology Platforms 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
• Increase Spending on
Customer Analytics Tools to
Improve Customer
Relationships.
• Bank has to make a
customize app for Wealth
management and Bank
Insurance
14. Peer 2 Peer / Group
payments
• Immediate transfers
• Crowdfunding
• 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.
Online / Mobile
Services
•Configurable alerts now span a
variety of needs, such as bill
payment reminder, incoming
payment alert, etc.
•Expedited payments
Digital ATMs
• Smartphone-enabled
ATMs
• Video Tellers
E-Vaults
•E-vaults enable clients to
store important and critical
documents in the secure
folders that are provided
along with their online
accounts.
Technology
•NFC
•Hands Free
•QR Codes
Omni-Channels
• Services are available
seamlessly on any
platform
• Online / offline
convergence
Direct Service
• Online channel for
offline competitors
Pure Play
• Online / Mobile only
Convenience
Solutions
•Mobile Wallets & Couponing
•Check deposits & mailing
15. 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
