consumer bank

8/9/2019 consumer bank

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Launching a consumer

bank in India

Group 1


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B

anks in India Foreign Banks

Nationalized banks

Other scheduled commercial banks SBI and its associates

Co-operative Banks


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Foreign Banks

AB bank

ABN Amro

Abu Dhabi Commercial Bank

American Express Banking Corporation

Antwerp Diamond Bank

Bank International Indonesia

Bank of America

Bank ofBahrain & Kuwait

Bank of Ceylon

Bank of Nova Scotla

Bank of Tokyo Mitsubishi UFJ

Barclays Bank

BNP Paribas

Caylon Bank

Chinatrust Commercial bank

Citibank

DBS Bank

Deutsche Bank

HSBC Bank

JP Morgan Chase BankJSC VTBBank

Krung Thal Bank

Mashreq Bank

Mizuho Corporate Bank

Oman International Bank

Slnhan bank

Soclete GeneraleSonall Bank

Standard Chartered Bank

State Bank of Mauritius

UBS AG


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Nationalised Banks

Allahabad Bank

Andhra Bank

Bank ofBaroda

Bank of India

Bank of Maharashtra

Canara Bank

Central bank of India

Corporation Bank

Dena Bank

IDBI Bank Ltd

Indian Bank

Indian Overseas Bank

Oriental Bank of

Commerce Punjab and Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India United Bank of India

Vijaya Bank


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Other Scheduled Commercial Banks

Axis Bank

Bank of Rajasthan

Catholic Syrian Bank

City Union Bank

Development Credit Bank

Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICIB

ank IndusInd Bank

ING Vyasa Bank

Jammu and Kashmir Bank

Karnataka Bank

Karur Vyasa Bank

Kotak Mahindra BankLakshmi Vilas Bank

Nainital Bank

Ratnakar Bank

SBI Commercial and

International bank

South Indian BankTamilNad Mercantile Bank

Yes Bank


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SBI & the Associates

State Bank ofBikaner and Jaipur

State Bank of Hyderabad

State Bank of India State Bank of Indore

State Bank of Mysore

State Bank of Patiala State Bank of Travancore


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Customer Segmentation:

A disturbing trend

Upperclass

Middleclass

Lower class

Many banks

Mostbanks

Leastbanks


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A new segment: defining the TA

The poor in India havebeen growing

All efforts till date have

been unequallyskewed towards therural

No mechanism to

measure the numberor extent of the urbanpoor

The Poor

Rural Poor Urban Poor

Earning Not provided for


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Justification

The India-Urban Poverty Report 2009 states:

The urban population is increasing at a faster rate than its totalpopulation

While presently 28 per cent of the population is urban (286 million),

by 2030, India will have 41 per cent of its population living in citiesand towns

With India becoming increasingly urban, there is also an increase inthe number of urban poor and the latest National Sample SurveyOrganisation survey reports that there are over 80 million poorpeople living in the cities and towns of India

It is this large section of the population, which also lacks access tothe most basic banking services - such as savings accounts, credit,remittances and payment services, financial advisory services, etc


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Financial Inclusion:

Talking the talk The concept of financial inclusion: first mooted by the RBI in its

annual policy statement of 2005-06 made clear to banks that whilecommercial considerations are important, banks are bestowed withspecial privileges and that they are, therefore, obliged to providebanking services to all segments of the population on an equitable

basis Pursuant to this, the RBI advised all banks in November 2005 to

make available a basic banking no-frills account either with nil orvery low minimum balances as well as charges that would makesuch accounts accessible to vast sections of the population. Thenature and number of transactions in such accounts could be

restricted, but made known to a customer in advance in atransparent manner

Significant progress has been made in the opening of suchaccounts and it is estimated that as on March 31, 2009, over 33million had been opened.


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Final Inclusion: Losing track

General unwillingness

KYC norms

Difference between rural and urban poor


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Final inclusion: Disturbing trends

Banks reluctant and hesitant

TA unaware and under-represented

The Rangarajan Committee Report on Financial Inclusion(2008) states

(i) There are no clear estimates of the number of people inurban areas with no access to organised financial services

(ii) That even money lenders often shy away from lending tourban poor

(iii) That urban branches of banks, even though having

manpower and technology support, are not attuned toSHG lending or micro-finance.


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Financial Inclusion:

Time to walk the walk? A bank dedicated to the needs of the urban

poor only

Actually working towards banking theunbanked in India

Facilities and working based on the special

needs of its TA

Time to walk the walk?


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Target Audience Redefined

Choosing them on multiple-attributes:

Income, occupation, education

Should be earning at least 3k per month, have a basic

level of education and are currently employed

TA includes:

Auto driversHouse maids

Hawkers

Vendors

Barbers

Daily wage earnersWatchmen

Taxi drivers

Drivers


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Barriers

Before:

KYC norms

Banks are hesitantNon-countable

Comfort level

Lack of trustHand-to-mouth

After:

Funding

Market SegmentationBuilding trust: new

Different levels of awareness

GuaranteeTechnology/staff


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Definition & Problems: Urban poor

Debt-trap

Basic problems

Self-employment Saving

Training

Personalization Unawareness


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Working

The Government

CSR

New foreign banks Outsourcing by large private banks

International organisations

Voluntary funders


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Facilities

Why does a person use a bank?

Accounts, FD, loans, debit card

What are we talking about?An alternative to the black market

Unique saving options

Flexible loan facilities

Self-employment

Everyday solutions

Flexible work timings

24*7 Phone service


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Facilities

NFA: caps

Loans: caps, trimester

Savings: everyday (gullak system) Education/employment: caps, training

Group meets: follow ups, free guidance

(hamdard) Database formation

Local recruitment


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Competition Redefined

SBI

ICICI , Canara, PNB,

Indian bank Basix

SEWA

Co-operative banks


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Basic proposition going forward

A bank for the urban poor

A new concept. Such a bank does not exist

The bank offers new facilities in a new way

Pa

riva

r Bank

To bank the unbanked in Delhi


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Communication Strategy

We battle against not just physical barriers but

mental ones

How?


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The Communication Strategy

Brand Definition

Marketing Objectives

Role of AdvertisingCompetition

Target Market

Where are we?

Where are we going?

The Button

Support


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Brand Definition

We are what no one is as no one has done

what we are doing the way we are doing it.

Our aim itself encompasses several problems

and the way we meet the challenge to provide

for the urban poor defines us.


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Marketing Objective

MAKE IT TAKE OFF To aggressively promote the bank as a new

concept in Delhi and NCR, prepare a databaseof the TA and work towards financial inclusion

in the same area over a period of 5 years.


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Role of advertising

MAKE THEM TRYIntroduce, promiseandassure

The idea is to establish a character who

belongs to this category and calls others to

join the family.


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Competition

Standing out on the basisofservices

being offered

Micro finance, government subsidy, selfemployment and housing


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Competitors

Direct

Banks

All private sector

All public sector

All co-operative banks

Regional banks

Foreign banks

Indirect

Finance companies

NGOS

Chit fund companies

NBFI

Local money lender

Others

Post office


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Target Audience

Sevak kumar, driver, UP resident, 12th pass,

driver for kids, washes cars, rent: 3k, earns: 6k

Can: save Dev Lal, vegetable seller, Haryana resident,

primary school, earns: 9k, spends: 6k

Can: save

Shyam Singh, auto-driver, UP resident, High

school, earns: 16k, rent: 3000, emi: 12000

Can help


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Target Audience

Laxmi Kumar, house-maid, Bihar, uneducated,

earns: 10k, expenses: 6k

Needs: loans for child education Bhushan Lal, uneducated, basket maker

Needs: working capital

And so on


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Where are we?

No where we dont exist as a tangible but as a

diffused idea spread across various

institutions.


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Whereare we going?

Toour target audiencemind

Should be curious enough to find out more

and meet our on-field executives.


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TheButton

PARIVAAR BANK

aapko samjhe, aapka saath de, aapki apni

zarurato ke liye

Familyconnect

Personalisation andfollow upFree guidance

Gullaksystem


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Support

Indian urban poverty report

KJ Udeshi, chairperson, The Banking codes

and standards boards of India RBI annual report 2008-2009

consumer bank

Documents