BPR in ING Vysya Bank

Prsented By:Raman Kumar Choudhary

MHROD 2012

Contents

• About BPR• About ING Vysya Bank• Journey and Mile Stones• BPR for Customer Relationship• Challenges• Solutions• Outcome

What is BPR?

• Reengineering is the fundamental rethinking and redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed.

(Hammer & Champy, 1993)

BPR Versus Process Simplification

Process Reengineering

Radical TransformationVision-Led

Change Attitudes & BehaviorsDirector-Led

Limited Number of Initiatives

Process Simplification

Incremental ChangeProcess-Led

Assume Attitudes & BehaviorsManagement-Led

Various Simultaneous Projects

(Source Coulson-Thomas, 1992)

BPR Versus Continuous Improvement

Process Reengineering

Radical TransformationPeople & Technology Focus

High InvestmentRebuild

Champion Driven

Continuous Improvement

Incremental ChangePeople Focus

Low InvestmentImprove ExistingWork Unit Driven

What is a Business Process?

• A group of logically related tasks that use the firm's resources to provide customer-oriented results in support of the organization's objectives

Why Reengineer?

• Customers– Demanding– Sophistication– Changing Needs

• Competition– Local– Global

Why Reengineer?

• Change– Technology– Customer Preferences

About ING Vysya Bank ING Vysya Bank Ltd., is an entity formed with the

coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002.

Journey and Mile Stones• 1930Set up in Bangalore• 1948Scheduled Bank• 1985Largest Private Sector Bank• 1987The Vysya Bank Leasing Ltd. Commenced• 1988Pioneered the concept of Co branding of Credit

Cards• 1990Promoted Vysya Bank Housing Finance Ltd.• 1992Deposits cross Rs.1000 crores• 1993Number of Branches crossed 300

• 1996Signs Strategic Alliance with BBL., Belgium. Two National Awards by Gem & Jewellery Export Promotion Council for excellent performance in Export Promotion

• 1998Cash Management Services, & commissioning of VSAT. Golden Peacock Award - for the best HR Practices by Institute of Directors. Rated as Best Domestic Bank in India by Global Finance (International Financial Journal - June 1998)

• 2000State -of - the -art Date Centre at ITPL, Bangalore.RBI clears setting up of ING Vysya Life Insurance Company.

• 2001ING-Vysya commenced life insurance business.• 2002The Bank launched a range of products &

services like the Vys Vyapar Plus, the range of loan schemes for traders, ATM services, Smartserv, personal assistant service, Save & Secure, an account that provides accident hospitalization and insurance cover, Sambandh, the International Debit Card and the mi-b@nk net banking service.

• 2002ING takes over the Management of the Bank from October 7th , 2002

• 2002RBI clears the new name of the Bank as ING Vysya Bank Ltd, vide their letter of 17.12.02

• 2003Introduced customer friendly products like Orange Savings, Orange Current and Protected Home Loans

• 2004Introduced Protected Home Loans - a housing loan product

• 2005Introduced Solo - My Own Account for youth and Customer Service Line – Phone Banking Service

• 2006Bank has networked all the branches to facilitate ‘AAA’ transactions i.e. Anywhere, Anytime & Anyhow Banking

BPR for Customer Relationship

• Financial institutions are perceived to be opaque and inwardly focused.

• ING Vysya Bank's worldwide market research suggested the same: customers do not feel in control of their money when dealing with financial services companies.

• C.V.G. Prasad, CIO, ING Vysya Bank, wanted to change the perception of customers.

• He decided to launch the 'customer first' initiative that would use technology and BPR creatively towards the objective of making the bank 'easy to deal with' for customers.

Challenges • From a technology perspective, all customers facing

core banking processes relevant for account opening and account maintenance had to be re-engineered for the project.

• Users were comfortable with the existing processes and didn't want to change the way they work.

• Initially, there was a significant disconnect between the people who designed the new processes and people involved in user acceptance testing.

Solutions

• Using pre-generated kits for accessing telephone banking and ATM,

• Instantaneous replacement of lost cards was the first step.

• Stocking pre-generated inventory of accounts and access devices like PINs and ATM cards at all customer touch-points

• Additional training on the current and modified business processes with inputs on the benefits of the re-engineered process was provided to the users.

• Installation of new IT system• Training program for employees

Outcome

• The BPR Process was completed in August 2008.

• Cost savings of Rs 2.5 crore at the time of project closure.

• The project reduced account opening and service request fulfillment cycle times by more than 90 percent

• Making customers very happy.

References

• http://www.ingvysyabank.com• http://www.computerworld.in• http://www.cio.in

THANKS