banking services (7 p's included)

BANKING SERVICES

Chinmoy Das

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INTRODUCTION

• The term bank is either derived from old Italian word banca or from a French word banque both mean a Bench or money exchange table.

• A bank is a financial institution and a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital market. A bank connects customers with capital deficits to customers with capital surpluses.

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HISTORY OF BANKING IN INDIA

• The first bank in India was established in 1786. From 1786 till today it has gone through three distinct phases.

• PHASE 1

Early phase from 1786 to 1969 of Indian banks.

• PHASE 2

Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

• PHASE 3

New phase of Indian Banking system with the advent of Indian Financial & Banking

Sector Reforms after 1991. 3

DEFINITION

Section 5 (b) of the Banking Regulation Act 1949 defines “Banking” as

• “Accepting for the purpose of lending and investment, deposits of money from the

public repayable on demand or otherwise and withdraw able by cheque, draft,

order or otherwise.”

In simple words, Banking can be defined as the business activity of accepting and

safeguarding money owned by other individuals and entities, and then lending out

this money in order to earn a profit.

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Contribution towards GDP of India

• The total bank deposits increased from Rs. 9.1 billion($960 million) in 1970-71

to Rs. 8309.22 billion ($620 billion) in 2009-10. Current deposit is Rs.

67504.54 billion($1.1 trillion).

• There are total 151 commercial banks in India by 2013 with total of 1,09,811

number of branches.

• It contributes INR 243294 Cr. to India’s GDP.

• Service sector contribution is 57.3% to India's economy. And out of this 57.3%,

banking sector contributes 80%.

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Major Players in India

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International Bank (Competitor)

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Marketing Mix

• PRODUCT

• PRICE

• PLACE

• PROMOTION

• PEOPLE

• PROCESS

• PHYSICAL EVIDENCE

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State Bank of India

• Founded on 2nd July 1806 as Bank of Calcutta. Bank of Madras merged into the other two

"presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to form the Imperial

Bank of India, which in turn became the State Bank of India.

• Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State Bank of India.

• State Bank of India (SBI) is an Indian multinational, Public Sector banking, and

financial services company. It is a government-owned corporation with its headquarters in

Mumbai, Maharashtra.

• As of December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign

offices, making it the largest banking and financial services company in India.

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Market Capture

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PRODUCT

• DEPOSITS

• ADVANCES & LOANS

• CONSULTANCY

• INVESTMENTS

• INTERNATIONAL BANKIKNG

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Contd..

• CARDS: CREDIT CARD, ATM CARD, TRAVELERS CARD

• DEMAT SERVICES

• ONLINE MONEY TRANSFER

• MOBILE BANKING, INTERNET BANKING

• AGRICULTURAL BANKING, MICRO CREDIT, etc.

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PRICING

• INTEREST RATES

• CONSULTING FEES

• COMMISSION

Parameters for determining Price:

• Bank product group price specification

• Bank product price specification

• Business partner price arrangement

• Business partner price agreement.

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PLACE

• BRANCH

• ATM

• HOUSE / OFFICE (INTERNET BANKING & MOBILE BANKING)

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Contd..

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PROMOTION

• ADVERTISING - Television, radio, movies, theatres.

• PRINT MEDIA- Hoardings, newspaper, magazines.

• PUBLICITY- Road shows, campus visits, sponsorship.

• SALES PROMOTION- Gifts, discount and commission, incentives, etc.

• PERSONAL SELLING- Cross-sale (selling at competitors place),

personalized service

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PEOPLE

• BRANCH MANAGER

• FRONT LINE OFFICERS

• EMPLOYEES

• CUSTOMERS

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PROCESS

For opening a Savings Bank

Account

Get the Token number and wait for our turn.

Approach the counter and ask details for opening an savings account.

The operator gives a form to be filled and asks us to get the required documents.

He then verifies the documents and request us to wait for further confirmation.

Makes a confirmation, take signatures and then our account is opened.

Backstage/Invisible Process

Finally ask us to deposit initial amount to start the savings account.

Onstage/Visible Process

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Process of Recruitment

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PHYSICAL EVIDENCE

• SIGNAGE

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• BILLBOARDS AND HOARDINGS

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• Financial Reports- The Company’s financial reports issued to the customers.

• Tangibles- Pens, Writing Pads to the internal customers.

Passbook and Cheque books to the customers.

• Punch lines- “With You All the Way“ - SBI, "Hum Hai Naa”- ICICI,

“World’s Local Bank” – HSBC

• Employee’s Dress Code

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ICICI BANK

ICICI Bank was established by the Industrial Credit and Investment Corporation of India (ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994. The parent company was formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-sector insurance companies to provide project financing to Indian industry.

In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group, offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

ICICI Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion (US$ 99 billion) at March 31, 2014 and profit after tax Rs. 98.10 billion (US$ 1,637 million) for the year ended March 31, 2014. ICICI Bank currently has a network of 3,820 Branches and 11,798 ATM's across India.

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Contd..

• In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size.

• In September 2013, ICICI Bank launched a one of its kind app on Facebook 'Pockets by ICICI Bank' to enable customers to carry out a wide range of financial transactions on Facebook. Customers can access the ICICI Bank appby logging into their Facebook account and then going to the official ICICI Bank Facebook page, and clicking on the tab for Pockets by ICICI Bank.

• ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun & Bradstreet Banking awards.

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Products

Account and Deposits

• Titanium Privilege Savings Account,

• Family Banking

Investments

• Investments

• Mutual Fund, Forex

• Gold

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Insurance

• Life Insurance

• Health Insurance

• Complete Health Insurance Policy

• Health Care Plus

• Personal Protect Insurance Policy

• Home Insurance

• Car Insurance

• Two Wheeler Insurance

• Mobile Banking, Internet Banking

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Place

• Branch

• ATMs

• At Home, Offices (Internet Banking, Mobile Banking)

Has 1900 branches across India and

33 in Mumbai.

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Promotion

• Advertising - Television, radio, movies, theatres

• Print Media- Hoardings, newspaper, magazines

• Publicity- Road shows, campus visits, sandwich man, Sponsorship

• Sales Promotion- Gifts, discount and commission, incentives, etc.

• Personal Selling- Cross-sale (selling at competitors place), personalized service

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Physical Evidence

1. Signage

2. Financial Reports- The Company’s financial reports are issued to the customers to emphasis or credibility.

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3. Tangibles- Pens, Writing Pads to the internal customers. Passbook and Cheque books to the customers.

4. Billboards and Hoardings.

4. Punch line - “Hum Hai Naa”

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Segmentation

• Tier-I – Mortgage, Auto loan, Education Loan, Investment & Insurance

• Tier –II-Housing Loan, 2 wheeler Loan, Gold Loan, Credit Card, Mutual Funds.

• Tier-III- Loan Against Property, Fixed Deposits, Insurance.

• Rural & Semi –urban Branches- Agriculture Loans, Motor Loans, Etc.

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Target People

• Banks target all age group of people between 10-59, 60 and above.

• Child’s savings account can be opened by their parents, for studies & other purposes.

• Scheme for students availing ‘‘Student’s Account” i.e. whose minimum balance is zero.

• And other various schemes and plans for adults and old people.

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THANK YOU

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