SERVICE DESIGN FOR MOBILE BANKING

Presented by:

Amritesh Sinha(05)Bharat Sharma(11)Swapnil Bhosale(12)Ch.L.Snehaja(16)Devanshu Gupta(19)

Submitted to:

Prof.Rajendra Todalbhagi

CASE FACTS: ABC bank had been a pioneer in

automation and highly regarded for its technology initiatives.

Anjali- in charge of Special Projects Cell Enjoyed an edge over other mid-cap

banks by effective deployment of IT and networking for managing its costs of service delivery and efficiency of operations.

Directors are aware of successful m-banking applications in developing countries like Philippines, South Africa and Kenya.

In Oct 2008, RBI issued guidelines for banks to provide mobile banking among different accounts of banks.

Non-banking transactions are not yet permitted.

RBI guidelines: Allowed to banks-licensed, physical

presence in India, implemented core banking.

Domestic rupee transactions, daily cap for fund transfer and purchase of goods/services-Rs.50,000 per customer.

Governed by KYC, AML and CFT. Secure and ensure confidentiality, integrity,

authenticity and non-repudiability

Risk factors in m-banking are anonymity, elusiveness, rapidity and poor oversight.

Anonymity and elusiveness can be managed after completion of UID.

Attractive design of service would be key to successful launch of m-banking.

Decides to use SERVQUAL tool to determine the gaps in customer expectations and their perceptions.

Intends to get responses from urban and rural customer compiled and analyzed on 5 categories: reliability, assurance, tangibles, empathy and responsiveness.

Plans a cross functional team to identify design characteristics of m-banking and then perform cost benefit analysis to get competitive edge in market.

QFD will translate customer requirements into product or service specifications.

She want to build an m-banking USP to attract high value customers from competition as well as new customers from rural areas which is a very long run process.

By this we can say she should follow thorough analysis and professional service design.

`The QFD technique is based on the analysis of the clients’ requirements, which normally are expressed in qualitative terms, such as: “easy to use”, “safe”, “comfortable” or “luxurious”

Client Requirement

Design Requirement

s

Process characte

ristics

Market Entry

QFD TECHNIQUE:

PREVENTIVE DESIGN

REDUCTION OF DEVELOPMENT TIME

CLIENT SATISFACTION

QFD ADVANTAGES:

The QFD methodology is based on the development of a series of matrices called “House of Quality”

QFD METHODOLOGY:

RELATION MATRIX:

BENCHMARKING: The QFD technique allows for a competitor

assessment with Benchmarking. The competitor’s services are compared to the company’s services.

Benchmarking is carried out for “What” and “How”

The two companies’ services are compared along the lines of client requirements (“What”)

In the technical competitor comparison (“How”s), the design requirement fulfilment will be compared.

WHAT ARE THE SERVQUAL GAPS?

Gap 1: The difference between management perceptions of what customers expect and what customers really do expect

Gap 2: The difference between management perceptions and service quality specifications - the standards gap

Gap 3: The difference between service quality specifications and actual service delivery - are standards consistently met?

Gap 4: The difference between service delivery and what is communicated externally - are promises made consistently fulfilled?

Gap 5: The difference between what customers expect of a service and what they actually receive

THE FIVE KEY SERVICE DIMENSIONS

TANGIBLES - the appearance of physical facilities, equipment, personnel and information material

RELIABILITY - the ability to perform the service accurately and dependably

RESPONSIVENESS - the willingness to help customers and provide a prompt service

EMPATHY - a combination of the following:

Access (physical and social) - approachability and ease of contact

Communication - keeping customers informed in a language they understand and really listening to them

Understanding the customer - making the effort to get to know customers and their specific needs

ASSURANCE - a combination of the following

Competence - having the requisite skills and knowledge

Courtesy - politeness, respect, consideration and friendliness of contact staff

Credibility - trustworthiness, believability and honesty of staff

Security - freedom from danger, risk or doubt

EXAMPLES - APPLICATION OF THE SERVQUAL MODEL IN DIFFERENT CONTEXTS

To assess the quality of physiotherapy services

Measuring service quality in information technology centre

To determine the relative importance of critical factors in delivering service quality of banks in Malaysia

RECENT STATUS OF MOBILE BANKING IN INDIA:

Primarily forced by convenience and promptness.

It is convenient, low cost channel and not location specific like ATM.

Month-on-month transactions carried out through mobile banking are surging both in volume and value terms.

Increasing smart phone adoption and initiatives such as media promotions and customer education programs for mobile banking have led to this uptrend.

Fast growing transactions through mobile banking-Prepaid mobile recharges, DTH recharges, ticket bookings (movies/travel) . 

The key players in the mobile banking market in India are ICICI Bank, HDFC Bank, SBI Bank, Axis Bank, Canara Bank, Syndicate Bank, Bank of Baroda etc. 

The SBI group dominates this space in volume terms with an overall share of 67.4 per cent in total volumes.

Private and foreign banks follow, with an overall share of 30.1 per cent in November. 

Around 3% of SBI's and 10million of ICICI Bank customer base are currently registered for mobile banking. 

According to RBI data, a total of 3.7 crore mobile transactions took place between February and November 2012, jumping around 1.7 times in volumes over this 10-month period.

Currently there is no cap on per-day transactions for encrypted transactions in banking channels, including mobile banking which are set by individual banks depending on their risk perception of the respective channels.

However, for unencrypted transactions, such as those through SMS, the RBI has set a limit of Rs 5,000 per day.

According to the MasterCard Mobile Payments Readiness Index, India ranked 21st among 34 countries with the score of 31.4 on a scale of 100. 

It is data-driven survey of the global mobile payments landscape which relies on an analysis of 34 countries and their readiness to use three types of mobile payments: person to person, mobile e-commerce and mobile payments at the point of sale.

 

It also points out that consumers in India have not yet fully embraced mobile payments. Only 14% of Indian consumers are familiar with both P2P and m-commerce transactions, and 10% are familiar with POS transactions.

Singapore topped the charts with a score of 45.6 followed by Canada and the US with scores of 42 and 41.5, respectively.

FUND TRANSFER, DEPOSITS AND PAYMENT

Domestic and international fund transfers Micro-payment handling Mobile recharging Commercial payment processing Bill payment processing Peer to Peer payments

BUSINESS APPLICATIONS OF M-BANKING:

INVESTMENTS

Portfolio management services

Real-time stock quotes

Personalized alerts and notifications on security prices.

SMS BANKING SMS banking services are operated using both push

and pull messages. Push messages are those that the bank chooses to

send out to a customer's mobile phone, without the customer initiating a request for the information.

Typically push messages could be either Mobile marketing messages or messages alerting an event which happens in the customer's bank account, such as a large withdrawal of funds from the ATM or a large payment using the customer's credit card, etc.

SUPPORT Status of requests for credit, including mortgage

approval, and insurance coverage

Check book and card requests.

Exchange of data messages and email, including complaint submission and tracking

ATM Location.

RURAL DEVELOPMENT PROGRAMS FOR FARMERS AND POOR PEOPLE:

 Insurance for Rural India

Microfinance• Non-availability of network connection• � Cost of network connectivity (air-time)

to access data• � Security of confidential data

transmitted/received over the air• � Speed of transactions• � Data loss and recovery

M-PESA for poor people, farmer and daily wages people by VODAFONE

• The initiative is currently up and running in Rajasthan, India’s largest state, where a pilot allows HDFC customers to enjoy basic banking services at the 2,200 retailers that support the initiative across the state’s 320 villages and 54 towns.

Payment gateway for NGO

• One Time Payment Only• Payment Gateway can be integrated with any bank• Payment Gateway cost depends up on plan• Payment Gateway system can be integrated on their

existing website or they can set-up new website for same.