HAPPY BANK

By, Balaji, Hiren, Kethan, Jillian, Sai Nisha

VISION STATEMENT:

To be a customer friendly Bank.

MISSION STATEMENT:

To strive to achieve excellence in customer service. To maximize profitability of the Bank. To provide quality, innovative services according to customer expectations. Enhance employees professional skills and strengthen cohesiveness. To offer the best products and services.

We have designed all our products aiming not only to satisfy our customers need but to delight them Door step banking To survive in the todays completion one has to have something to create a market or segment. Our Unique product is Door step banking. We would send our executives to the customers house if they want to avail this service How is this going to work We will minimize the branches as we serve the customers from their homes and we will have a charge of for the customers who want to avail this service. Net & Mobile Banking Considering the mindset of the senior citizens they may not be open to the technology ways of banking and they may be hindrance of knowledge to use or the fear of misuse. Hence we have created mobile and net banking easier than ever. For example if you want to buy a train ticket, click payment and then just enter your user name and password. Your transaction is complete

Bank conveniently with facilities like NetBanking, PhoneBanking and MobileBanking check your account balance, pay utility bills or stop cheque payments all via SMS. Time Deposits Liquidity with higher returns, with the new Senior Citizens Account, you have the option of holding your money in Time Deposits, which can be linked to your Savings Account. You will enjoy both high returns on your money on easy liquidity. Time Deposits: Higher Interest rates exclusive for you* Deposits are held in units of Rs. 1,000 for easy liquidity Choice of flexible tenures Option to set the automatic roll-over facility (renew your deposit when it matures, ensuring that your money never stops earning interest!) Option of overdrafts against your Time Deposit (allowing you to meet your shortterm liquidity needs, while earning higher rates of interest on your deposit!)

Debit Card Free Transactions at ATMs of all banks. No restrictions on number of ATM transactions. Shop with pride with your Easy Shop International Debit Card, offered free for life to the primary account holder. You can spend up to Rs. 40,000 per day at any point of sale (POS). Enjoy cash withdrawals of up to Rs. 25,000 per day.

Price

Phonebanking - Non IVR

Free Rs. 50 per call on non maintenance of Min balance for transactions that are available on IVR but are done through the PhoneBanking

executive. ATM Card ATM Card - Replacement charges ATM Card - Transaction charge for NonPartner banks Debit Card - Annual Fee - Regular Free Rs. 100 (plus taxes) NA

Free for life time for 1st applicant Rs.100 per year (plus taxes) for other applicants Free for lifetime for 1st applicant Rs. 100 per year (plus taxes) for other applicants Free for lifetime for 1st applicant Rs. 100 per year (plus taxes) for other applicants Free for lifetime for 1st applicant Rs. 100 per year (plus taxes) for other applicants Replacement of a damaged card - No charges & Replacement of a lost card Rs. 100 (plus taxes) (for all card types) Free Rs. 50 (plus taxes) Transactions declined at other Bank ATMs anywhere in the world or at a Merchant outlet outside India due to insufficient funds will be charged at Rs.

Debit Card - Annual Fee - Women's Card

Debit Card - Renewal Fee - Regular

Debit Card - Renewal Fee - Women's Card

Debit Card - Replacement charges

Debit Card - Transaction Charge PIN regeneration charge Decline charge for insufficient balance

25 per transaction (plus taxes) Add-on Debit Card - Regular Rs. 100 per year (plus taxes) - One addon card free for the first year Rs. 100 per year (plus taxes) NIL

Add-on Debit Card - Women's Card NEFT Charges - Inward NEFT Charges- outward

Amounts up to Rs. 10,000 - Rs.2.5 (exclusive of taxes) per transaction Amounts from Rs.10,001 to Rs.1 lakh Rs. 5 (exclusive of taxes) per transaction Amounts above Rs. 1 lakh up to Rs. 2 lakh - Rs. 15 (exclusive of taxes) per transaction Amounts above Rs.2 lakh Rs.25 (exclusive of taxes) per transaction Customers having NSBL*A/c - Rs 20/Customers having Non-NSBL* A/c: UptoRs 5,000 - Rs 70/Above Rs 5,000 - Rs 95/* Nepal State Bank Ltd

NEFT Charges for Indo Nepal transactions

RTGS - Outward

Above Rs. 2 Lakhs to 5 Lakhs - Rs. 25 (inclusive of taxes) per transaction Above Rs 5 Lakhs - Rs. 50 (inclusive of taxes) per transaction NIL NIL Free

RTGS - Inward Mobilebanking Netbanking

BUSINESS STRATEGY/PLAN

The strategy adopted by the bank is to exclusively cater to the needs of the senior citizens residing in Chennai. Basically conducting a SWOT analysis helped in analyzing the all round aspects of the bank so that we can aim at better customer service thereby gaining profits. Strengths: Largest bank in India operating across all states and catering to all customer needs like basic banking, private banking and investment banking. Successfully diversified the operations to a number of financial spheres. Massive customer pool. Success is attributed to aggressive and innovative marketing strategies for its diversified range of products and services.

Weakness: High service charges for various transactions making it expensive to afford for major sections of the society.

Opportunities: Expanding business by serving the senior citizens.

Threats: Heavy competition from other leading banks.

Looking into the above mentioned categories the bank stands a good chance in retaining a good share in the market after venturing into this new idea of opening a Domestic bank for senior citizens.

Business Model: The business model covers the following aspects.

Purpose: The main reason behind the idea to open a domestic bank is to satisfy the elderly customers with more care so that the burden upon them is reduced and service is simplified. Also there is no other bank which offers such a service so our bank would

like to be a pioneer in providing this service. The bank aims at adding value to the customers and enhance their banking experience.

Target Customers: No doubt, the bank wants to serve all the senior citizens above the age of 60 yrs This also includes those who are retired and also those who indulge themselves in business or other forms of sevice. Distribution Channels: The bank concentrates on capitalizing the deposits from all senior citizens who hail from Chennai. And also looks at providing savings benefit with a higher interes rate, pension assistance, insurance policies , exposure to stock market etc. Core Capabilities: The bank will lay its focus mainly on targeting the various investment alternatives available for the older people which will give them a secured rate of income on a regular basis. Real estate advisory should offer solutions to appropriately utilize major portion of funds available in profitable ventures. Efficient Porfolio Mangement for high net worth senior citizens in the locality.

Revenue Model:

Main challenges of New Business Model First of all, the implementation of the new business model requires a new skills set. Sales forces should be created combining private bankers from different backgrounds. One not only needs bankers coming from the traditional private banking industry but also professionals with greater competencies and experiences. Operational Planning :

Operational planning is the process of linking strategic goals and objectives to tactical goals and objectives. It describes milestones, conditions for success and explains how, or what portion of, a strategic plan will be put into operation during a given operational period. Operational plans should establish the activities and budgets for each part of the organization for the next 1 3 years. They link the strategic plan with the activities the organization will deliver and the resources required to deliver them. Like a strategic plan, an operational plan addresses four questions:

Where are we now? Where do we want to be? How do we get there? How do we measure our progress?

Operational plans should contain:

Clear objectives Activities to be delivered Quality standards Desired outcomes Staffing and resource requirements Implementation timetables A process for monitoring progress.

Clear objectives: We envision to emerge as a strong vibrant Bank through synchronization of human, financial and technological resources. Activities to be delivered:

1. 2. 3. 4. 5. 6. 7.

Receipt of Cash Encashment of Cheques Issue of Cheque-Book/DDs/POs Opening of an Account Payment of DDs/POs Retirement of Bills Updation of Pass Book/ Issue of Account

10-15 Minutes 10-15 Minutes 15-20 Minutes 15-20 Minutes 10-20 Minutes 20-30 Minutes 05-10 Minutes

Statement 8. Statement of Account to be issued regularly

On every 5th of the Month.

SPECIAL TREATMENT FOR SENIOR CITIZENS 1. All persons of 60 years and above are eligible for the following special treatment. (For proof of age - School leaving certificate, LIC policy, Voter identity card, Passport or Birth Certificate issued by a competent authority be given/submitted.) 2. Separate line / queue for Senior Citizens in front of every counter, is provided by branches with counter clerk attending to the customers alternatively from both the lines similar to arrangements in vogue at Railway Booking Centers.

3. Seating arrangements are provided to all the customers including Senior Citizens /
Pensioners and Physically Challenged Persons at all the Branches / Offices of the Bank. The senior citizen can open Fixed Deposit Account jointly with other person below the age of 60 years but the first name should be of senior citizen. The scheme is applicable for fresh deposit or renewal of deposit.

4. Rate of Interest a) It has also been decided to give additional benefit to Senior Citizens over and above card rates only on term deposits of any amount as under:"The Senior Citizen shall be given as additional rate of 0.50% on any amount over and above the mentioned rates for deposits with maturity period 190 days and above for fresh and renewed deposits." b) Ex -staff Members are eligible for 1% extra rate of interest, however, please note that if the Ex-Staff Member is also a Senior Citizen, he will also be eligible for additional interest applicable to Senior Citizen shown as above.

Quality standards: In its firm striving for quality perfection, the Bank has secured the ISO 9001:2000 certification for 2 branches. By end of the current financial, the Bank is targeting 4 more branches for this quality certification. Desired outcomes:

In a short span the bank will become very popular with people and the attractive schemes for senior citizens could make it to the limelight again.

To sum up we can say elderly citizens should invest a portion of their retirement corpus in the Senior Citizen Savings Scheme as it offers safety, liquidity and regular periodic income.

Staffing and resource requirements:

One of the upcoming private sector bank in Chennai. Headquartered in Chennai, has 6 branches across Tamil Nadu and has announced the recruitment of 100candidates to be deployed at various branches across the locations.

Details Post: Probationary Officers/Specialist officers/Clerks/Trainees Vacancy: 100 Scale: Rs.10000/-/25700 Dates: Online registration of applications 1.1.2014 to 1.2.2014 written test 1.03.2013

Eligibility Age: 21 - 30yrs as on 1.1.2014 Qualifications: Minimum 60% marks in graduation, as on 1.1.2014 Proficiency in computer operations is necessary Diploma in banking & finance from IIBF (desirable) Selection process Based on performance in the written test comprising of Objective and Descriptive sections, successful candidates will be called for an interview. Final selection will be made based on the overall performance of the candidate in both written test and interview. Please note that wrong answers will carry a negative mark of 0.25.

Application Fee Gen/OBC:Rs.400 SC/ST:Rs.50 Payment can be made at any of our branch. After making the payment, candidates can submit applications online before March 2014. A printout of the application can be preserved for reference (should not send by post).

New Hiring in FY13: 100 Probationary Officers 38 Clerks 20 Campus Recruitment 10 Specialist officers 20 Trainees -- 12

Implementation timetables: 1 Quarter one 2014 Recruitment 2 Quarter 2 2014 On the Job Training 3 Quarter 3 2014 Tracking the performance 4 Quarter 4 2014 Publish the findings

A process for monitoring progress:

Monitoring by front-line staff: Front-line employees know the most about customers and their typical patterns of transaction activities. They are in the best position to identify unusual activities. An effective monitoring system therefore includes provision of regular training to front-line staff to foster a high level of awareness in them. The training provided should cover the fraud risks associated with the operations for which front-line staff is responsible.

Monitoring past transactions: Effective monitoring requires the production of periodic MIS reports and/or alerts, as well as the establishment of proper review procedures to ensure that customer transactions are a part of a bank or financial institutions monitoring efforts on a risk-sensitive basis. Periodic transaction- monitoring reports and/or alerts should at the minimum cover cash and cheque transactions, frequent transfers from one or multiple locations, (especially in the case of newly opened accounts), a sudden surge in account activity or behaviour, loan payments and prepayments, and reactivation of dormant accounts followed by unusually large or frequent transactions. Regular review of system parameters: Regardless of whether an automated system is used, effective monitoring requires regular review and updating of the parameters or criteria used to generate monitoring reports or issue alerts. Regular enhancements should also be made to a bank or financial institutions transaction-monitoring system to take into account changes in business operations and nw fraud typologies. Any enhancements made to a system should be properly documented and approved by the organizations management. Management commitment: A prerequisite for establishing and maintaining an effective transaction-monitoring system is the support and commitment of an organizations senior management. No transaction-monitoring system can be effective in the absence of adequate resources to maintain and operate the system

Summary: Happy Bank is set up to satisfy the needs of senior citizens, increase profitability, decrease operating costs and improve financial performance. In the days of intense competition, superior service is the only differentiator left before the banks to attract, retain and partner with the customers. Superior service quality enables a firm to differentiate itself from its competition, gain a sustainable competitive advantage, and enhance efficiency. Thus, improving service quality leads to the customer satisfaction and, ultimately, to customer loyalty.