BYGAURI SURABHI DUBEY

CONTENTS
Distinguishing Characteristics of Services

How they are constraints to the banking services

Strategies to overcome the constraints Private Banking in India

ICICI bank- brief introduction

STP of ICICI bank How ICICI took on its competitors

Catering to the rural segment

Conclusion References

DISTINGUISHING CHARACTERISTICS OF SERVICES

Intangibility
(cannt be felt,smelled or tasted before purchase)

Inseparability
(produced & delivered simultaneously)

Perishability
(cannt be stored or saved)

Heterogeneity
(Depends upon who provide them,when & where they are provided)

HOW THE CHARACTERISTICS ARE CONSTRAINTS

Intangibility

Marketers have nothing to show to their customers Less chance for improvement in the quality Marketers have less control for handling demand and supply fluctuations
Difficult to ensure consistency in service

Inseparability

Perishability

Heterogenity

quality

DIMENSIONS OF SERVICE QUALITY:

S.NO. DIMENSIONS DESCRIPTION

1.
2. 3. 4. 5.

RELIABILITY
TANGIBLES RESPONSIVENESS ASSURANCE EMPATHY

Ability of the company to perform the promised service dependably and accurately
Appearance of the physical facilities, equipment, personnel, and communication materials Willingness of the employees to help customers and provide prompt service Competence, courtesy, credibility and security Individualized attention the firm provides to its customers, includes access, communication and understanding

Source: kotler & keller;2006

ORGANIZATIONAL FEATURES:
HR
TECHNOLOGY PLANNING OPERATIONS ORGANIZATIONAL RELATIONS

Dror Shuki, Deployment of Service Quality Characteristics, World Academy of Science, Engineering and Technology-30,2007,pg31-32

HR STRATEGIES:
Service Features Strategies

Intangibility

Good presentation & explanations of the product from employees

Customer conversation like problem identification & solving, Appropriate responses to customer complaints Gap analysis for identifying gap in quality Improving services delivery

Perishability

Variability

Inseparability

Employee training

TECHNOLOGY:
Service Features Intangibility Strategies Opportunities to show more additional evidence of services Well designed Websites Frequently updated accurate information Ease of navigation Advertising E-services available for 24*7 More freedom for customers to select & purchase services & marketers to handle supply & demand Less variations in the quality because of e-services being electronically based Easily customized since customers become more participated in the process by providing more individual information

Perishability

Variability

Inseparability

OPERATIONS:
Service Features Intangibility Strategies Provide tangibility through : physical location of the facility Office layout and ambience Comfortable waiting areas that alleviates the distress of the customer Capacity management- adjusting services to match demand Adjust price to influence demand Improving services delivery Disintermediation

Perishability Variability Inseparability

Reference: Dynamics of Indian banking: views and vistas, Manoranjan Sharma

ORGANISATIONAL RELATIONS:
Service Features Intangibility Strategies Ensuring safety & security Perishability Variability Service guarantees Integrating internal quality improvements & external customer measures

Inseparability

Disintermediation CRM

PRIVATE BANKING IN INDIA:

Initially all the banks in India were private banks, which

were founded in the pre-independence era to cater to the banking needs of the people. In 1921, three major banks i.e. Bank of Bengal, Bank of Bombay, and Bank of Madras, merged to form Imperial Bank of India. In 1935, the Reserve Bank of India (RBI) was established and it took over the central banking responsibilities from the Imperial Bank of India. In 1955, Imperial Bank of India was subsequently transformed into State Bank of India (SBI).

Cont
On 19 July 1969, the Government of India nationalized the

14 largest commercial banks of India. In 1994, the Reserve Bank Of India issued a policy of liberalization to license limited number of private banks, which came to be known as New Generation tech-savvy banks. Then Housing Development Finance Corporation Limited (HDFC) became the first (still existing) to receive an 'in principle' approval from the (RBI) to set up a bank in the private sector.

BRIEF INTRODUCTION:
Promoted by ICICI (One of the leading Financial

Institution established in 1955 at the initiative of Govt. of India and World Bank) in the year 1994. ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) as on March 31, 2010 Largest new generation Bank in terms of branch network The Bank has a network of 2,035 branches and about 5,518 ATMs in India and presence in 18 countries. In May,2010 ICICI Bank announced merger with Bank of Rajasthan.

 All 463 branches of Bank of Rajasthan have started to

function as ICICI Bank's branches from Aug 13,2010, after the approval of RBI. The merger of Bank of Rajasthan would help ICICI Bank increase its branch network by almost 25 %. This will give greater visibility to ICICI Bank in western parts of the country.

Source: The Economic Times, 14 Aug,2010.

ICICI BANK TODAY:

Large capital base Vast talent pool
Indias largest private sector bank and one stop financial solutions provider with a diversified and de-risked business model

Low operating costs

Technology focus Strong corporate relationships

METROPOLITAN
(MAB-Rs. 10,000)
(Geographic & Income)

URBAN

SEGMENTATION

SEMI-URBAN

RURAL

(MAB-Rs. 2,500)

 Occupation

Different products for different occupational segment identified Power pay : salaried employees Business multiplier : businessman
Attractive gifts offered depending on the segment Currently, on opening savings account

senior citizen- ghazal CD women-ladies magazines College goers-rock music CD

TARGETING:
TARGET
CUSTOMERS RETAIL

CUTOMERS

CORPORATE CUSTOMERS

WEALTH
CUSTOMERS

NORMAL CUSTOMERS

NONEARNERS

SALARIED

BUSINESS PERSON

POSITIONING:
Opportunities Unlimited Hum Hain Na
2003

Vishwas h to sab kuch h

2008

Khayal aapka
2010

2005

Safer,Simpler, Smarter
2001

HOW ICICI TOOK ON ITS COMPETITORS

1. Leverage on technology
2. Asset driven to liability driven bank 3. More customer oriented than others

LEVERAGE ON TECHNOLOGY:
The first one to start Internet banking.
ATM, anytime ,anywhere banking. First institution to start a web based securities trading through its subsidiary ICICI Web Trade Ltd.

Need to introduce Technology Changing lifestyle :

Increasing urbanization

Lowered transaction cost

MODE OF TRANSACTION BRANCHES ATMs INTERNET BANKING TRANSACTION COST (per transaction) Rs 50 Rs 15 Rs 4

MOBILE BANKING

Re 1

Source: The Economic Times, Sept.21,2010

Outcome The clicks and bricks approach has led to: increased business volumes, lower service delivery time, increased business efficiency reduction in the cost of client servicing.

Mode of Transaction Branches ATM Internet banking Mobile banking Call center

2000 94% 3% 2% 0% 1%

2009 13% 46% 38% 1% 2%

Source: The Economic Times, Sept.21,2010

 Role of technology in future

Use of UID
More transaction through bank especially internet
Less fraud in terms of tax evasion

Estimated 4 times increase in bank deposit base from 46 lakh crore (present) to 200 lakh crore (by 2020)

HOW ICICI TOOK ON ITS COMPETITORS CONT

2.Asset driven bank to liability driven bank From giver to taker 3. More customer oriented than others From transaction oriented to relationship oriented

CATERING TO THE RURAL SEGMENT:

Franchise Model:A one man office ( known as the

Kendra") in the village forms an interface between the villagers and the banks products and facilities.
Use of Biometric system :can be operated on biometric

authentication.
Customised ATMs: battery operated,so that power failure

is not an issue.

 MICROFINANCE: (i) Group delivery models SHGs JLGs (ii) Individual banking

CONCLUSION:
With the continuous growth of competition in the

market place, understanding customers has become more and more important.
Technology has an important and positive effect on

customer towards the banking services and the service quality has been improved.
Rural market is having a large potential which is yet to

be tapped.

References:
Shuki Dror, Deployment of Service Quality Characteristics, World Academy of Science, Engineering and Technology-30,2007 Chun wang, zheng wang, The impact of internet on service quality in the banking sector, Master Thesis, Lulea University Of Technology,2006-07 Dynamics of Indian banking: views and vistas, Manoranjan Sharma Economic Times