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Banking Goes Creative by Vinod Shah, Cards Operations Manager, ICICI Bank

Banking Goes Creative

By : Vinod Shah, Cards Operations Manager, ICICI Bank
Industry : Banking Functional Area : Business Processes
Keywords :

Banking

CRM

Retail Banking

Creative

Goes

CRM Vendors

Branch Automation

Activity:  2 comments  399 views  last activity : 07 06 2010 20:18:04 +0000
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It is the most common experience to all of us that the moment we enter a bank, we  look for some assistance in our transaction as we expect to be served immediately. Earlier on entering any bank, one would try to catch the eye of an employee. Depending on the size of the bank, there will be any number of employees working unmindful of a customer's entry. With the exponential growth of touch points and sophistication, the frontline salesforce is assuming the role of a relationship person and is constantly under the microscopic observation of the customer. At a time when channel innovation has become the order of the day to encourage effective banking habits among customers, a vital component of the supply chain, namely, customer interface, is totally missing.

But do you think that the trend is still same?, obviously not. Today we witness the concept of retail banking, which provide a single face to its customers across business lines and channels, grow revenue organically, improve operating efficiency, and ensure regulatory compliance. Moreover, it  provides work templates, data structures and processes, solution design models, and financial management components that accelerate the development of a range of multi-channel solutions.

Technically speaking, Retail banking is among the most financially conservative of all vertical industries, and as such, CRM has tended to focus on things like branch automation, fraud detection, straight-through-processing and other internally-focused efficiency plays. Interestingly enough, CRM vendors with a foothold in retail banking got there with largely operationally focused, "middle office" offers .

Every major bank is focussing on the retail banking and I think tey all should adhere there thinking and functioning to the following four approaches:

  • Combining fast time to market, innovation, and local client intimacy;
  • Ensuring full multi-channel integration and optimisation;
  • Increasing sales productivity through dynamic branch management;
  • Leveraging a multi-brand portfolio to create attractive value propositions for each market segment

    • The ways in which consumers use retail banks are changing rapidly. The payments industry faces significant challenges – and opportunities – from the continuing move away from cash to a range of electronic alternatives. despite the background of turbulence and uncertainty, the imperative of improving the efficiency and effectiveness of current business models remains. Banks are increasingly realizing the need to become more customer-centered. Despite those who believed – or hoped – that it might wither away, the branch network remains an important channel, and improving branch effectiveness can contribute to sales growth.

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    2 comments on "Banking Goes Creative"
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      Commented by  Reuben Ray, Regional Manager, Tata Capital Ltd    | 10 15 2008 08:41:22 +0000 
    Good writeup...I feel its now time for mass customization. Let us take the example of one common man; he has various payments to make in lieu of good & services enjoyed. If we can incorporate a Supply Chain Finance concept for individuals, which we anyway are trying to develop, it will add great value & common sense to eradicating physical currency & only dealing with limits.
Will add details in a separate article.
      Commented by  Gaurav Banerjee, Consultant, NewGround    | 05 01 2008 05:56:49 +0000 
    I agree with Vinod, where he mentions about the fast changing world of retail banking. From my experience and observations in this industry in the US, I would say retail banking is rapidly changing in to "Experience" banking. This is a very simple but at the same time very powerful concept. The idea here is to have tellers act as "sellers" and involve in proactive selling. When the customers come in looking for simple transactions - cash withdrawl or deposit, there is usually a floater in the lobby - think of a bus conductor, with a wireless cash dispensing system - he/she can immediately access your accounts through the wireless system and give/take cash from you. That ways it helps clear the clutter on the "shop" floor, and tellers can now focus on important customers. 

Added to this concept is integration of five senses in the lobby. This not only creates an unique ambience, but also helps solidify the brand identity in a customer's psyche. For example, if you walk in to a bank lobby and are greeted with cinnamon & coffee smell (now thats my favourite - but there are infite types of smell).... so every time a customer smells cinnamon or coffee...what does she associate that smell with? - Your bank!

For more information on this topic do not hesitate to send me a message here or email me at gbanerjee@newground.com

Thanks,
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