social media in banking industry
DESCRIPTION
This presentation shows how banks can use social media to grow their businessTRANSCRIPT
BANKING INDUSTRY IN INDIA
HOW BANKS CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS
© InRev Systems 2011
IND
UST
RY O
VERV
IEW
There is a shift in the Indian banking market from public to private and foreign banks
7%17%
76%
Market Share by Assets (2002-03)
Foreign BanksPrivate BanksPublic Banks
7%19%
74%
Market Share by Assets (2009-10)
Foreign BanksPrivate BanksPublic Banks
Source: IBEFRBI
Banks
Scheduled Commercial
Banks
Cooperative Credit
Institutions
Financial Institutions
All-India Financial
Institutions
State-level Institutions
Other Institutions
Public Sector Banks
Private Sector Banks Foreign Banks Regional Rural
Banks
Urban Cooperative
Banks
Rural Cooperative Credit Institutions
Source: RBI
Structure of Indian Banking System
© InRev Systems 2011
© InRev Systems 2011
IND
UST
RY O
VERV
IEW
Offices of Commercial Banks in India
Bank Group 2006 2007 2008 2009 2010
SBI & its Associates 14310 14673 15846 16878 18114
Nationalized Banks 35858 37431 39234 40854 43187
Public Sector Banks 50168 52104 55080 57732 61301
Old Private Sector Banks 4819 4826 4690 4908 5174
New Private Sector Banks 2016 2598 3632 4328 5213
Private Sector Banks 6835 7424 8322 9236 10387
Foreign Banks 259 272 279 295 310
Regional Rural Banks 14807 14843 15070 15485 15723
Non-Scheduled Commercial Banks 41 46 46 46 47
Total Commercial Banks 72110 74689 78797 82794 87768
Source: RBI
© InRev Systems 2011
IND
UST
RY A
TTRA
CTIV
ENES
S
Industry Rivalry
Threat of New Entrants
Supplier PowerBuyer Power
Threat of Substitute
012345
IndustryRivalry
Fixed cost and exit cost is high which makes the industry attractive while large no of players makes it less attractive. Overall, the attractiveness of the industry due to industry rivalry is medium
Threat of New Entrants
Very capital intensive and involvement of economy of scale makes the industry attractive. The industry is highly regulated. Overall attractiveness due to threat of new entrants is high
Supplier Power
There are not many no of suppliers. Moreover, backward integration of the supplier is quite possible. Overall, the attractiveness of the industry due to supplier power is medium
Buyer Power
There are large no of buyers and forward integration of the buyers is not likely. Brand of the bank plays an important role in customers choosing their banks. Overall, the attractiveness of the industry due to buyer power is medium to high
Threat of Substitute
There are a no of substitutes available such as moneylenders, micro-finance institutions, etc. However the reliability of banks makes it very attractive over its counterparts. Overall, the attractiveness of the industry due to threat of substitute is high
Overall, the attractiveness of the industry is HIGH
© InRev Systems 2011
SOCI
AL M
EDIA
USA
GE
STAT
SLinkedIn has over 100 MILLION users and adds about 1 MILLION new users to its service every week. The median age of LinkedIn users is 41, and the average user has 60 connections. 20 percent of its members are in the service industry
Twitter has more than 145 MILLION users and adds about 6 MILLION new users a month. On average 140 million tweets are sent a day. More than 460,000 new account have been added every day . The median age of a Twitter user is 35 years old and the average user has 70 followers
Facebook currently has over 500 MILLION active users around the globe and 50% of these active users log on to Facebook in any given day. Facebook's median age is 31 and its average user has 130 friends and is connected to 80 community pages, groups or events while average user creates 90 pieces of content each month
YouTube has 2 BILLION views per day, and 24 hours of video is uploaded every minute. YouTube achieved for the first time the milestone of 100 videos watched per user last year
WH
Y SO
CIAL
MED
IA?
© InRev Systems 2011
Access sentiments of customers
Consumer Insights
Brand Health
Tracking Engagement with customers
Reaching out to customers
CRM
Negative word-of-mouth spreads fast especially in the social media and it is essential to engage proactively with such customers
It is essential to engage with customers to attract new customers as well as to understand the needs of customers
WH
Y SO
CIAL
MED
IA?
© InRev Systems 2011
Has your bank got new product or service which you want to be make aware among your customer base? Social media is the best and easiest place to drive awareness of your product/service
It is essential for your bank to provide the best service and solution to your customers. By leveraging social media, banks can develop and increase their relationship with customers
Develops & Deepens Customer
Relationship
Foster Innovation &
Idea
Hasten Awareness
Hiring Employers
Social media is the right place to collect information about the company. Social media is filled with suggestions for improvements and ideas and these can be used to foster innovation
Banks can use social media to identify and attract high quality job candidates. The number of prospects are high and is one of the easiest way of employment recruitment
© InRev Systems 2011
SOCI
AL E
NG
AGEM
ENT
GRA
PH
0 1 2 3 4 5 6 7 80
0.5
1
1.5
2
2.5
3
No of Channels
Inte
racti
vity
Lev
el
Interaction Plot of the Private Sector Banks in the Social Media Space
© InRev Systems 2011
SOCI
AL E
NG
AGEM
ENT
GRA
DES
Social Media Grades for the Private Sector Banks in India
Banks No of Channels Social Grades
HDFC BANK 8 3.06
ICICI BANK 8 2.81
AXIS BANK 5 2.28
CITI BANK 5 2.02
YES BANK 6 1.97
KOTAK MAHINDRA 5 1.62
STANDARD CHARETERED 4 1.8
INDUS IND BANK 4 1.24
ING VYSYA BANK 3 0.79
SOUTH INDIAN BANK 3 0.72
KARNATAKA BANK 3 0.57
BANK OF PUNJAB 2 0.36
The Social Media Grades shows how active the banks are in the social media space
Calculated on a scale of 5, the interactivity level of the banks in Facebook, Twitter, LinkedIn, YouTube and Blogs are taken into consideration
No of channels represents the bank’s presence in any social networking sites
© InRev Systems 2011
HD
FC B
ANK
Blog Facebook Page
Engagement in Facebook YouTube Channel
HDFC Bank is one of the most prominent private sector bank in India using social media as a way of connecting and engaging with customers
© InRev Systems 2011
HD
FC B
ANK
HDFC leverage the power of twitter for both customer engagement and notification
HDFC Bank has more than 12307 followers in LinkedIn
© InRev Systems 2011
SOCI
AL E
NG
AGEM
ENT
GRA
PH
0 1 2 3 4 50
0.5
1
1.5
2
2.5
No of Channels
Inte
racti
vity
Lev
el
Interaction Plot of the Public Sector Banks in the Social Media Space
© InRev Systems 2011
SOCI
AL E
NG
AGEM
ENT
GRA
DES
Social Media Grades for the Public Sector Banks in India
Banks No of Channels Social Grades
SBI 5 1.68
BANK OF BARODA 5 1.39
PUNJAB NATIONAL BANK 5 1.28
CANARA BANK 4 1.16
IDBI 3 0.88
BANK OF INDIA 2 0.51
CORPORATION BANK 3 0.43
PUNJAB & SIND BANK 2 0.35
DENA BANK 2 0.35
VIJAYA BANK 2 0.35
ORIENTAL BANK OF COMMERCE 2 0.35
ANDHRA BANK 1 0.16
The Social Media Grades shows how active the banks are in the social media space
Calculated on a scale of 5, the interactivity level of the banks in Facebook, Twitter, LinkedIn, YouTube and Blogs are taken into consideration
No of channels represents the bank’s presence in any social networking sites
Public Sector Banks are lagging behind their counterparts
© InRev Systems 2011
STAT
E BA
NK
OF
IND
IA
Engagement & NotificationIn Twitter
Facebook Page
Facebook Corporate PageYouTube Channel
SBI is one of the most active public sector bank in India using social media as a way of connecting and engaging with customers
State Bank of India has more than 6500 followers in LinkedIn
© InRev Systems 2011
Simplify360 is a web based social media engagement and analytics platform that offers a ONE STOP SOLUTION to the social media needs of a business and lets you engage with your customers and interpret your social presence
Simplify360 provides an easy to use platform for tracking and listening to what people are talking about your brand in social communities.
With Simplify360 you can not only LISTEN to what your customers are talking about your brand but also ENGAGE with them!
Simplify360 lets you ANALYSE the social media presence of your brand by giving you actionable insights
SIM
PLIF
Y360
© InRev Systems 2011
SIM
PLIF
Y360
ICICI Mentions in Twitter
ICICI versus HDFC mentions in Twitter
TRACK real time conversations about your brand. Once you understand how your product is perceived, you can take informed decisions to market it better
COMPARE the performance of your brand against your competitor
© InRev Systems 2011
SIM
PLIF
Y360
Demographic of people who talk about SBI
Demographic of people who talk about ICICI
TRACK the demographic profile of the people talking about your brand and COMPARE it with your competitors
It can be observed that people all throughout the different age groups talk about ICICI whereas people only in their 20’s and early 30’s talk about SBI. SBI may want to know the reason behind the less patronage in the age group of 35 and above
© InRev Systems 2011
SIM
PLIF
Y360
Tracking the keyword “bank”
TRACK specific keywords to identify how your brand is mentioned in the industry
DETERMINE the industry trend
Tracking negative sentiments about keyword “bank”
IDENTIFY what are the things that people talk negative about in your industry and ACT accordingly
© InRev Systems 2011
SIM
PLIF
Y360
Negative Feedback about American Express
ENGAGE TODAY with your customers using SIMPLIFY360
CREATE email campaign, polls and Not only do you get to define the goal for your campaign but see the progress in terms of visibility and reach of the campaign created
Brand Monitoring & Sentiment Analysis
Social Analytics Dashboard
Schedule Messages and RSS Feed
Personalized URL Tracking
Download Data and Reports
Creating Polls and Sharing
Email Campaigns
Team Collaboration and Work Assignment
Email and Notification
Re-tweet, follow, send message andEngage with your customers
© InRev Systems 2011
OU
R AC
HIE
VEM
ENTS
Our applications has been covered by top media houses in the world including Forbes, PCWorld, CNBC YoungTurks, KillerStartup, SiliconIndia, CIO, Smart Company and many more
Featured as ‘Startup of the Month’ in Silicon India 2010
Selected as one of the top innovative product companies at Microsoft TechSpark 2010.
Featured in a Young Turks CNBC TV 18 as top selected innovative companies.
© InRev Systems (2011)
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VP - Sales, InRev Systems