Marketing Strategy for Alternate Channel Products

Group 4Aritha Krishnan G, Kiran Sudevan,

Remya Rajeev, Sonya M H, Ranjith R, Thomas John

Alternate ChannelsWhat is…

Platform to direct the customers from branch to convenient modes of banking

ATMs, Internet Banking, Mobile Banking, GCC, POS Terminals, i-collect, Tiny cards, Gift Cards etc.

Desired extent of coverage: 50%

What is....

Different Channels….

What we want….

ImportanceTransaction Mode Cost per Transaction

Branch Rs 55 (cash txn)Rs 45 (transfer txn)

ATM Rs 18

Internet Banking Rs 7.50 appr.

Mobile Banking 0.50 paise

Objectives

Methodology

Personal Telephonic Group Focus

Interview Method

Observation Method

POS

• Main competitors- Axis Bank and HDFC• Settlement on T+2 basis• Excellent after sale service by Axis Bank• No rent charged by other banks

Observations

Strategies - POS

• Marketing should focus on the following:– T+1 settlement cycle– Large base of SBI card holders– Cash Management Made Easier– Vast network of branches give easy access for merchants.– No installation charges– No hidden charges

Strategies - POS

Waive Rent

Loan against

transaction

routed

Target Railways,

KSFE, KSEB etcTarget TEL customers

i-collect

• Generic e-payment module by SBI • Customization to the needs of institutions • Pre-designed web pages hosted on onlinesbi• Remitters can log on to INB and select the institution to pay the amount• Instant online generation of receipt • Reconciliation reports generated on daily basis

We offer….

Strategies – i-collect

• Marketing Strategy to focus on the following :– Convenient and online fund collection– Easier reconciliation and report generation– Customized web page creation enabled for the institution– Online receipt generation for remitter– Convenience to remitter – need not visit branch or institution for remitting funds– Lower Cost to remitter: Payment at branch is charged at Rs.50/- while i-collect

payment costs only Rs.10/-

• Launching Pilot project at SBOA School• IT Department, ESI, EPF corporation etc can be targeted• KSEB, KWA, BSNL etc can be targeted

Mobile Banking

State Bank Freedom Available in mobiles through following modes - Application based, USSD and WAP Services offered-Utility bill payments, Intra and Interbank fund transfers, Demat

Account, Mobile Top-up, Cheque Book Requests etc

Knowledge in complaint redressal lacking among branch staff Customers hesitant due to the SMS charges incurred Concerns regarding transaction security raised by customers User Demo not available in website to guide customers USSD mode not popular among staff- isolating low end mobile users

We offer….

Observations….

Situational Analysis

SBI ICICI HDFC Federal Axis

Fund Transfer

√ √ √ √ √

Bill Pay √ √ √ √ √

ATM Card Blocking

X X √ √ X

Loan Account Access

X √ X X X

Demat √ √ X X X

Mobile Banking

Strategies – Mobile Banking

Strategies – Mobile Banking

Internet Banking

Online SBI Portal is certified by Verisign Services offered- intra and inter bank fund transfer, Bill payments, merchant

payments, online account opening, request for cheque book, draft, Demat account, ASBA, i-collect, Visa transfer etc .

Observations Users are still concerned about transaction security Time delay / branch support for regeneration of passwords Facility provided only when requested by customer-push strategy not observed

We offer….

Observations….

Situational Analysis

SBI ICICI HDFC Federal Axis

Fund Transfer √ √ √ √ √

Bill Pay √ √ √ √ √

ATM Card Blocking

X X √ √ X

Instant Password Regeneration

X √ √ √ √

Mobile Recharge X √ X X √

Internet Banking

Strategies – Internet Banking• Marketing strategy should focus on the following:

– Convenience of Banking from home– 24x7 banking– Highly Secure– Simple and user friendly interface– Facilities like fund transfer, Bill payments, online account opening, request for cheque

book, draft, demat account etc.

Strategies – Internet Banking

Product Enhancement

Menu in regional language

Online Password regeneration

Password change to be prompted

Green Channel Counter

• A Green Banking initiative • Paper-less, convenient and faster banking to customers.• No VVR checking is required• Lesser data entry in CBS

Observations• Not implemented in all branches • GCC implemented in only one counter in branches• Hits at the GCC are not very high• Not very popular among the branch staff

We offer….

Observations…..

Strategies - GCC

ATM

• State Bank group has the largest network of ATMs• Facilities for trust donation, air ticket booking, Cheque Book request, card to card

transfer, credit card bill pay, mobile top up etc are available in addition to cash withdrawal.

• In spite of vast network, rate of issuing transaction is high• Except for cash withdrawal , other functions available in the ATM are not very

popular

We offer….

Observations….

Strategies - ATM

Our marketing efforts should focus on increasing our acquiring transactions - “Withdraw using any bank’s ATM card.”

Outcome of Marketing

NSS Group of Institutions, Nehru Group of Institutions, Valluvanad Medical College,NIT Calicut, CGMC Calicut, DOEACC Calicut, MIMS Calicut, DCSMAT Vagamon

Thomas Hotels & Resorts Pvt. Ltd., Residency Towers, KIMS

Hospitals, Rajadhani Group, Muthoot Hotels, Ayyappas, Somatheeram, Tandem Group of Institutions

i- collect

POS

Conclusion• Vast opportunities emerging for Alternate Banking channels • Focus should be on making this a core competency of the bank • Product oriented marketing is the need of the hour• Staff support towards the cause to be ensured• TAT based complaint redressal

The Big Idea

Never step into the branch again

With SBI Alternate channels, banking is so easy that you don’t have to step into a branch again