Digital Banking

Kotak Mahindra Bank

Mumbai, June 23rd, 2015

Going Digital @Kotak

Population 1265 Mn

India’s Key Digital Statistical Indicators

Mobile Penetration -

74%

Internet Users – 19%

Social Media -9%

84% use social Media on

Mobile

* Smart Phone Users – 200 Mn

Global Digital Landscape

Internet Penetration

Mobile Share of Web Traffic

Average Net Speed (Mbps)

Ecommerce adoption

93 (Canada)

19

42

76 (Nigeria)

72

33

25.3 (S. Korea)

2

4.5

64 (UK)

14

34

Average India Global Best

Digital An imperative for Indian banks

Digital infrastructure rapidly expanding

Regulatory changes becoming more facilitative

Customer digital readiness rapidly increasing

~160 Mn urban internet users in 2014 (1.5X from 2012)

>200 Mn smart phones by 2015

Aadhaar – eKYC (UIDAI accounts rapidly expanding)

Information bureaus for instant credit appraisal

~60% customers with internet digitally influenced for banking

> 40% express strong interest for right digital solutions

Integral part of the changing competitive

context

Digitization top of the agenda for incumbents

New / non-banks putting digital at centre of strategy

Revenue pools could come under threat

Payment: core component of the digital agenda

Digital Agenda A two Pronged approach with payments as core

Digital enablement of retail business

Parallel pure play Digital model

1 2

Kotak

Public Sector Banks

Apr to Aug ‘14 Sep ‘14 onwards

Others

Private Sector & MNC Banks

Technology in Banking Creating superior experience

Others

iTrack iLoans RM Video Banking

Windows iMobile

Instant loan

World’s First- Accounts for digitally active & socially connected Kotak Jifi & Jifi Saver

EFMA Accenture Innovation Awards, 2014: Best new

product and service

Exchange4media's Indian Digital Media Awards, 2014:

Best Digital Innovation

EMVIES, 2014: Best Media Innovation - Digital (Social

Media)

Socialathon, 2014: Best Use of Social Media in a Larger

Campaign 6% Interest

Hashtag banking

Kotak Rewards

Kotak Money watch

Credit Score

World’s first bank to integrate with Twitter for Banking Hashtag Banking

23 banking services offered including Mobile & DTH recharge

A 360 degree Personal Financial management tool Money Watch

First Bank to integrate PFM into net banking

Basic Platform Features

Set Budget & Track performance

Auto-categorisation of expense

Add Billers & set alerts

Paid Platinum Platform

Income Tax Computation & Tax Filing

Secure storage of Financial Documents

Integrating E commerce with Kotak payments Kotak Rewards

Transaction Rewards are given on • 100 + Ecommerce

Partners

• 7000 + Hotels

Simplifying Payments -First Bank to launch Email & Mobile no’s based transfer

Mail & Message Money

An innovative, convenient way of making fund transfer

• No need to know beneficiary bank account

• IFSC

World’s First Bank agnostic P2P Platform Kaypay - Any bank to any bank

Transfer money to Facebook,

Google+, email/ Mobile friends

No beneficiary details required

Instantaneous 24X7

Digital Focus @Kotak

Mobility Digital

Acquisition Social Security Big Data

& Analytics

Payments

Physical & Digital Co existence

App Launch

Push notifications Message money

Flight Booking

Multiple CRN

Apr 2013

Aug 2014

July 2013

Dec 2014

Mar 2015

Consumer Insight

Family as a unit

Increase Engagement Send money to mobile

Mobile recharge

Nov 2013

Industry First

High utility

PIN change

May 2014

Forgot PIN

Innovation & convenience Mobile App journey

Jun 2015

Add a Bill

Open RD

Simplify Registration

Revamped registration

process

Recharge plans

Hotel Booking

One time transfer Pre login balance

a

Creating seamless checkout experience mStore

16

Seamless login to merchant sites No need to create a separate login

Single-click payment with account/credit card

Lower drop-out in payment

Benefits to Customer

Benefits to Merchant

Captive customer base Additional traffic

Name / address / payment details are pre-populated - Faster check-out

Rich analytics for customized offers

Mobile leads the way @Kotak

17

• Over 1/3rd of Bank’s active customers use Mobile banking

• 1/3rd of Mobile users are Mobile Only.

• Mobile to Net Banking login is 3times

• Mobile login likely to surpass internet banking login soon

• Kotak Mobile transaction and customer adoption as percentage of customer base –one of the highest in industry

• Over 80 transaction types enabled on Mobile App in native experience

• Average transaction value of Mobile App among Top 3 in industry.

Great online experience Recommendation based Apply now

Capture basic details of customer for lead generation. Google map integration with Pincode to determine if lead is serviceable or not

Intuitive question which would depend on the input provided by customers

Recommendation basis the customer profile

a

Kotak is ranked 13th globally as most social bank

Social Products launched online with

Blogger

50% of our Customer are on facebook,

whom we target via Custom Cluster

* The Financial Brand

7th Most followed bank on twitter globally

Search / Transact

Contextual

Next Best Offer

Customer search for Personal Loans

Customer buys Flight tickets

See contextual Banner on website

Mobile notifications for Travel Card

If customer, call center gets lead for

Personal Loan

E-mail pitching shows Travel Cards

Big Data & Analytics Customized offers through UNICA

a

UNICA has identified Purchase Patterns

Mobile App – GPS locates customer

at a mall

Customer gets a customized time

bound offer

Big Data & Analytics Transaction behavior & Location mapping based offers

a

Kotak Payment Journey

Payment launches in 2014-

15

Mail Money – Email ID

based P2P

Message Money –

Mobile no based P2P

Kaypay – Bank

agnostic P2P

PG – P2m tie ups with 13

aggregator

mStore – P2M –

Flight & Hotel

bookings

Hashtag banking – P2M via twitter

a

PHYSICAL

DIGITAL

O R

Blending Physical with Digital

& it continues

Disclaimer This presentation is for information purposes only and does not constitute an offer, solicitation or advertisement with respect to the purchase or sale of any security of Kotak Mahindra Bank Limited (the “Bank”) and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. No offering of securities of the Bank will be made except by means of a statutory offering document containing detailed information about the Bank.

This presentation is not a complete description of the Bank. Certain statements in the presentation contain words or phrases that are forward looking statements. All forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated by the relevant forward looking statement. Any opinion, estimate or projection herein constitutes a judgment as of the date of this presentation, and there can be no assurance that future results or events will be consistent with any such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the Bank. We do not have any obligation to, and do not intend to, update or otherwise revise any statements reflecting circumstances arising after the date of this presentation or to reflect the occurrence of underlying events, even if the underlying assumptions do not come to fruition.

All information contained in this presentation has been prepared solely by the Bank. No information contained herein has been independently verified by anyone else. No representation or warranty (express or implied) of any nature is made nor is any responsibility or liability of any kind accepted with respect to the truthfulness, completeness or accuracy of any information, projection, representation or warranty (expressed or implied) or omissions in this presentation. Neither the Bank nor anyone else accepts any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith. This presentation may not be used, reproduced, copied, distributed, shared, or disseminated in any other manner.

The distribution of this document in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

Figures for the previous period/ year have been regrouped wherever necessary to conform to current period’s / year’s presentation. Totals in some columns/ rows may not agree due to rounding off.

Copyright Kotak Mahindra Bank Ltd. 2015