BRANCHvs.

DIGITAL

HUNT FOR THE LIONS – THE ING WAY

VIPUL JAIN

DELHI SCHOOL OF MANAGEMENT, DTU

FIRST YEAR, MBA

BANKING

Executive Summary

• ING needs tie-ups with payment gateways to show ING among the popular banks on top.

• A budget needs to be allotted for advertisement, which is next to none right now. (TV, Radio, Facebook promoted Ads, Metro banners)

• Creative schemes to lure customers (‘really’ personalized cards, integrated shopping portal)

• Focus on the really innovative & beneficial features being offered (Bill notifications, FD+, Interest Rates)

• Users have gone digital, and so does everyone who wants to grow, needs to.

• A survey of 3000 people confirms this trend and highlights the importance of internet & mobile banking.

• ING has a great deal of products to offer, but little online presence.

• SWOT Analysis of Branch & Digital Banking focus that even though digital is the trend to follow, branch banking cannot be ignored.

SWOT Analysis – Branch Banking

S Human Factor – Not everyone is tech savvy, a human face is always required to handle such customers.

S Humans don’t run on Wi-Fi signals.

W A busy day does see some disgruntled customers

W Buildings, AC’s, PC’s, other equipment, salaries – everything costs!

O You show people your establishments to impress them, or maybe even people accompanying them.

O A constant reminder every few kilometers about the ING Vyasya Bank

T If people know there isn’t proper space to park their vehicles at the bank, they avoid visiting. I do.

T Rude customers test the staffs’ patience & someone’s outburst might hurt the image of the bank

T Well, guards & cameras are there for a reason, a very negligible threat but very important.

SWOT Analysis – Branch Banking

SWOT Analysis – Digital Banking

S Everything at your fingertips

S I pay my electricity bill in 40 seconds, at max, by using net banking.

W No internet, no access

W Need secure payment gateways and servers good enough to handle a large number of customers at once

O Like the current deals on ING – “Get a free movie voucher on payment of bills” or “ING e-deals”

O Example - SBI Marketplace

T People fall for “You have won $1 million, please send your account details!”

T Quite often, user’s internet goes down during a transaction.

SWOT Analysis – Digital Banking

Survey Findings

• This survey has been done by PwC (Pricewaterhouse Coopers), world’s 2nd largest professional services network, as measured by 2013 revenues.Survey Source: Digital Banking Survey

• Digital facilities are a top priority for new customers, specially Generation Y

• Not only Net Banking but Mobile Banking is equally important, a fact that many financial institutions ignore

• Provision to create FD’s, transfer funds and even download Loan forms should be made available on the mobile platform.

• The ING mobile app - With a good presence, 4.1 rating & constant replies to issues, it looks like this area is covered.

• Clearly customers are willing to pay for better services, surprisingly, in a cost-conscious nation like India too. This supports new steps that can be taken by ING (personalized cards, marketplace), would be welcomed.• Example: I had a SanDisk

16GB 3.0 pen drive that wasn’t working up to it’s mark. I sent one email proving my claims and they promptly offered me a replacement. And instead of a 16GB model they offered me the 32GB, free of cost, just for the trouble.Since then, even though there are many cheaper alternatives to it, I always go for & recommend SanDisk. In fact SanDisk is the first name that pops in my head when I hear ‘Service’.

Roadmap Towards Digital Banking

• Try to purchase www.ingvysya.com too & redirect users to bank website like www.ing.com does

• Allow personalized Credit/Debit cards. Example – ICICI Expressions

• Keep up the promotional offers where using ING Cards/Net Banking avails the user a discount or cashback

• Needs more visibility on Payment gateways. Examples -

• Creative initiatives to increase the ING brand presence, like ICICI is doing with its Unifare Credit Card (Metro Smart Card + Credit Card)

• Convenient/Easier, yet secure payment.ICICI has a password grid for secure payments, but it remembers regularly visited websites and skips this authorization on such websites giving a personal touch to the customer’s shopping experience.

Existing ING Products• ING Mobile App• Well made Eye-catching design. Low size so that low end devices can install

too.

• Constant updates unlike primitive app design like ICICI

• Unique features like Bill Payment Reminder, Cheque Tracker

• A link to the mobile app should be on the Homepage

• ING Fixed Deposits• High interest rates compared to other banks.

• Example: The attractive 61+ days period

• ING Saving Banks Accounts

• All types of accounts available

• The Zing savings though has a minimum balance ofRs.2500, while public banks like SBI, Corporation offerSavings A/C at Rs.1000.

Conclusion

• ING has a lot to offer (in terms of digital & physical banking)

• But due to lack of advertising, these features go unnoticed to the masses

• Visibility is key!

• The trend is shifting towards Digital Banking, so more focus and resources should be put into that area

• Some unexplored options can be tested in focus groups like a marketplace, personalized & multi-purpose cards, feedback form in ING Mobile app for additional features users would like to add

• A link to the mobile App on the ING Homepage

THANK YOU