state bank of india 0 customer satisfaction vs service quality presentation by a.krishna kumar...
TRANSCRIPT
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Customer SatisfactionCustomer SatisfactionVsVs
Service QualityService Quality
Presentation byPresentation by
A.Krishna KumarA.Krishna KumarDeputy Managing Director (IT)Deputy Managing Director (IT)
State Bank of IndiaState Bank of India
6th Banking Technology 2010 Conference &6th Banking Technology 2010 Conference &Banking Technology Awards 2009Banking Technology Awards 2009
January 28, 2010January 28, 2010
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Contents of PresentationContents of Presentation
Customer Satisfaction
Service Quality
Indian Banking: Challenges
The SBI Story
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Custormer SatisfactionCustormer Satisfaction
• Customer satisfaction is the key to remain in business
• Customer should get what is needed
• At the desired time, place and at the right price.
• 96% dissatisfied customers don’t complain- but share with others.
• 91% unhappy customers never purchase goods / services again.
• 82-95% customers can be retained if they get a prompt response.
• It costs 5 times to attract a new customer than to retain an existing customer.
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Service QualityService Quality
• Customer needs go on changing. Expectations continue to increase. Quality level needs to be improved accordingly.
• Quality in a product or service is not what the supplier puts in. It is the value the customer perceives.
• Quality in customer service requires awareness of needs, problems, fears and aspirations of the customer
• It is extremely important to deliver what is promised
•Demand generation is always easier than demand fulfillment
• Strive to give customers more than what they expect
• Dissatisfied Customers like to talk to a real, live, responsive person who will listen and help them get satisfaction
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Improving Service QualityImproving Service Quality
• Excellence in Customer Service must be the primary goal of any organization.
• Every employee should understand the importance of Service Quality and Customer Satisfaction
• Communicate with customers not only while transacting but more importantly when not transacting
• Complaint resolution mechanism should leverage technology and also have real, live, responsive persons to communicate to dissatisfied customers whenever needed
• Customer Feedback
• Discover customer dissatisfaction
• Identify customer needs
• Discover priorities of Quality
• Compare performance with the competition
• Determine opportunities for improvement
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Improving Service QualityImproving Service Quality
• Provide consistent Service Experience
• Before / During / After Sale
• Across all Channels and touch points
• Keep IT infrastructure scaled up to the expected / real volumes and running 24x7
• Leverage existing customer information / behavior for knowing customer needs in advance
• Data Warehouse and Customer Relationship Management
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Indian Banking Challenges: Customer DiversityIndian Banking Challenges: Customer Diversity
• India is a country of diversity and also of disparities.
• A number of Indians appear in Forbe’s Billionaires list yet India also has the largest concentration of poor
• Luxury cars and bullock carts share the same roads
• Skyscrapers coexist with slums
• First challenge is to provide quality service to all the customer classes as per their needs
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Indian Banking Challenges: Financial InclusionIndian Banking Challenges: Financial Inclusion
• On an all India basis 41% of adult population is unbanked
• 500 million Mobile users but about half of them do not have a bank account
• One bank branch caters to 16,000 individuals in India, while a similar branch in developed countries address the needs of 1,500 to 4,500 individuals.
• Second challenge is to reach 600,000+ villages and provide Financial Inclusion
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Indian Banking Challenges: Scaling UpIndian Banking Challenges: Scaling Up
• India’s economic growth: Second only to China
• Projected to overtake Germany as the world’s fifth largest consumer market
• In two decades, Indian middle class (earning between $4500 to $22000 per year) will be more than half a billion strong
• Third challenge is to scale up to the growing demand for banking services
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The SBI StoryThe SBI StoryMeeting the first challengeMeeting the first challenge
•To provide quality service to all the customer classes as per their needs
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SBI: IT Architecture: SBI: IT Architecture: Enabling 24*7 IT OperationsEnabling 24*7 IT Operations
Corporate Office
Shared operations centre(s)
ATMCall
Centre
Network of Branches
Resource Management
ALM
Treasury
Risk Management
External Agents
Group Companies
Associate Banks
Other Banks & Alliances
RBI
Stakeholders ProspectsCustomers
Product Development
OPERATING UNITS
Internet Banking
Help Desk
Mobile Banking
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WIDE AREA NETWORKING AND CORE BANKINGWIDE AREA NETWORKING AND CORE BANKING
• All 17000+ branches of SBI Group are on Core Banking.•Enabling Anywhere Anytime banking
• One of the largest private worldwide network•Using Leased lines, ISDN, PSTN, MPLS, VSATs
•More than 25,000 touch points
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Numbers Nearly 20,000 ATMsLargest Bank owned network in the world
Card base 66 mn.- Largest card base in South Asia
Connectivity Part land lines and part through VSATs
Daily Hit rate • 300 hits per ATM
Transaction Volume
Average : 134 million per month
Cash dispensed Rs. 330 billion per month
ATM ProjectATM Project
Value Added Services
Bill Payments, Payment of College/Hostel Fee
Card to Card transfer of funds
Donation to Temples / Trusts
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Internet BankingInternet Banking
Retail Services Corporate Services
• Customer to Self• Customer to Customer• Customer to Utility Service Provider• Customer to Institutions• Customer to e-commerce sites• Customer to Government
• Business to Self
• Business to Business
• Business to Employees
• Business to Institutions
• Business to Government
No. of Users: 4 million
5 million txns per month 3.5 million Retail1.5 million Corporate
Services: Funds transfers (including
through RTGS & NEFT, Payment of utility bills, Payment of taxes, Booking of Rail/Air tickets
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Mobile BankingMobile BankingServicesServices
Funds transfer using NEFT
Enquiry Services (Balance enquiry / Mini statement)
Request Services (Cheque book request)
Bill Payment (Utility bills, Credit Cards)
m-Commerce (Mobile top up, Merchant Payments, SBI Life Insurance premium)
1.5 lac registered users
10,000 transactions per day
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The SBI StoryThe SBI StoryMeeting the second challengeMeeting the second challenge
•To reach 600,000+ villages and provide Financial Inclusion
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Financial Inclusion: SBI InitiativeFinancial Inclusion: SBI Initiative
Enabled through Point of Sale (POS) instrument and Smart Cards
Reaching 100 thousand unbanked villages
Over 1million ‘No Frills’ Savings accounts opened
Government benefits paid directly to beneficiary's account
Operated through Business Correspondent model
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The SBI StoryThe SBI StoryMeeting the Third challengeMeeting the Third challenge
•To scale up to the growing demand for banking services
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Preparing for the futurePreparing for the future
Scaling up technology infrastructure and inducting cutting edge technologyEnterprise Data Warehouse under
implementation
Revamping Network
Scaling up ATM installations to 25000 within this year
Opening 1000 branches every year
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SBI: Biggest Bank in the Service of Smallest Customer
More than 2 centuries of Trust
Widest reach with more than 17000 branches of the group on Core Banking
Nearly 20000 ATMs of the group
All branches enabled for Secure Internet Banking and Mobile Banking
All branches enabled for RTGS and NEFT
State of the art Data Centre and Disaster Recovery Site
Enabled E-Government projects
Technology driven Financial Inclusion
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Thank youThank you