This Presentation has interesting facts on HDFC Bank trying to make their ATM's as mini branches,Punjab & Sind Bank's UP Biz success,SMARTPHONE to be used at ATMs for txns,Digital Banking
3. HDFC Bank ATMs will soon give customers instant personal credit, top-up loans &
approve credit-card application. The move to make ATMs more than just a cash dispensing
tool would help HDFC in morphing to Digital Bank
HDFC states that it was important that they build “Scale” which could be easily achieved
over widespread ATM network
In the First
phase, the
bank would
offer loans
under 10
seconds
across its
ATM
Network
In 2015,HDFC
had launched
new product
using its
backend
advance
analytics that
can disburse
personal loans
under 10
seconds
At the end of December quarter HDFC Bank had ;
11,843 ATMS & 4,281 Branches(cost of setting-up branch
was typically 10 times more than cost of setting an ATM)
At the end of
third quarter in
2015,the size of
HDFC Banks
personal loan
book stood at
Rs.35,494 crores
against
Rs.24,988 crore
in the same
quarter in 2014
The second phase which will begin in April
2016 will have ATMs disbursing top-up
loans & renewing Gold Loans
HDFC will be using
“Advanced
Analytics” to
determine a
customers worthiness
HDFC Banks Click-to-Call
facility at ATM
This can be used by a non-
customer. Once you see the
offers on the ATM & you
want to avail this offer, you
can click on the screen.
HDFC customer care will
call you back in less than 2
Mins
4. THE BIG LEAGUE
In the pilot project that HDFC undertook, it was
found that 40-42%of the customers were using the
offers on ATM outside the branch-hour timing &
out of this 50% were doing it between 5 & 9 AM
5. Cholamandalam Investments &
Finance expects Payment Banks
to start in 12-14 Months
(The firm also receives Board Approval to raise Rs.6,000
Crores through Non-Convertible Debentures)
6. Cholamandalam Investment & Finance
Company Ltd launched as the financial
services arm of the Murugappa Group is
in the process of appointing a consultant
for its payment bank project & is
expecting the Bank to be ready in next
12-14 months
The Board has approved a proposal to
invest upto Rs.75 crores in equity
shares of Cholamandalam Distribution
Services Limited(CDSL),a 100%
subsidiary of the company as a long-
term investment for its payment Bank
The capital infusion is consequent to CDSL
obtaining an in-principle approval for
payment bank license from RBI
As per RBI guidelines/terms & conditions
of in-principle approval for conversion into
a payment bank, CDSL shall maintain a
minimum net worth of Rs.100 cr all times
The company has posted a growth of 31.2% in net
profit at Rs.148.03 cr during quarter
ended Dec 31,2015 as compared to
Rs.112.79 cr posted during the same
quarter of 2014
The Board has also approved raising Rs.6,000 cr
through Non-Convertible Debentures
The Total income from
operations as on Dec 2015
stood at Rs.1060 crores as
against Rs.970.29 crores
during 2014
(an increase of 9.25%)
7. Cholamandalam Investments & Finance at a Glance
• The Total Assets under Management(AUM)of the company has crossed
Rs.30,000 crores & the Net Income margin has seen a growth of 17% during
the December 2015 quarter compared to the corresponding quarter of 2014
• According to the company, Profit improvements has happened because of;
• Good Book Growth
• Better fee income on disbursement
• Cost of funds has been lower
• NPAs under control
• In December 2015,the Board also approved a proposal to invest upto Rs.8 crores in
White Data Systems India Pvt Ltd towards acquiring controlling stake of 63%.The
company is in the business of providing holistic freight data solutions
• CDSL disbursed Rs.3245 cr in Vehicle Finance Business as against Rs.2,290 cr
in Dec 2015 quarter.
• Home Equity disbursements grew by 17% from Rs.754 cr during Dec 2014 quarter to
Rs.882 cr in the corresponding quarter of Dec 2015 quarter
• The aggregate disbursements for the quarter were Rs.4260 cr as against Rs.3082 cr
during the third quarter of 2015
8. Navigating through the Digital Banking Space
(Banks, e-tailers & third-party independent companies are
coming up with interesting options for customers)
9. Non Banking
entities like e-
commerce
companies are
offering
“Electronic
Wallets”
Banking these days is no
longer about opening accounts
or increasing card usage. Every
player wants its customer to
transact more & provides them
all possible ways of
transactions using digital
modes
Leading Banks today
provide technology-
driven payment &
money transfers
solutions through
social media platforms,
e-mails, text messages
or a tap on a ‘smart
phone’
10. E-Wallets may be issued by;
-Banks
-E-tailers
-Third-party independent
payment companies like
PayTm/Citus Pay
-Also Mobile operators
In semi-closed wallets,
the maximum reloadable
amount & the maximum
balance every month is
Rs.10,000.This can go
upto
Rs.50,000/1,00,000 in
the wallet if one gives his
KYC documents to the
issuer
Typically three types of
transactions are done
in PayTm e-wallets;
1.Shop & Pay Online
2.Pay Online
3.Use it Offline/shop &
use offline
E-Wallets/Prepaid Instruments
A major attraction of these e-wallets are
-cash-back offers
-Discounts
-Deals
(You spend Rs.500 & get a refund of
Rs.70.You save money as you spend)
11. Punjab & Sind Bank’s Uttar
Pradesh’s Biz touches
Rs.11,000 Crores
12. Punjab & Sind Bank
has touched almost
Rs.11,000 cr in total
business in Uttar
Pradesh
Punjab & Sind
Bank has total of
220 branches
across the UP state
Punjab & Sind Bank has
achieved significant
improvement in the credit
deposit ratio (CDR) in UP and
are mobilizing low cost
deposits, Chairman of the Bank
Jatinderbir Singh said
The agricultural advances
of the Punjab & Sind
Bank UP branches was
over 81% of the
priority sector advances
Of total business of over
Rs.10,900 cr, the deposit
& dvances account for
Rs.6,000 cr & Rs.4,000
cr respectively
13. SMARTPHONES to replace Debit Cards at
ATM Machines
(Dozens of US Banks are installing new ATM’s or updating existing ones to allow
customers to order cash on a mobile App without having to insert a Bank ATM Card)
14. The card less ATM is gaining ground in the
US & around the world with
SMARTPHONE technology allowing for
speedier & more secure transactions
Dozens of US Banks are installing new
ATM’s or updating existing ones to
allow customers to order cash on a
Mobile Application & then scan a code
to get the money without inserting an
ATM Card
US Banking Giants Wells Fargo, Bank of
America(BoA) & Chase are in the process
of deploying the new ATM’s, as are a
number of regional banks & financial groups
around the world
FIS-A major provider of software &
technology for ATM’s believes that the
model of using SMARTPHONES at ATM
reduces a lot of vulnerabilities.FIS card
less system is being used at some
2,000 ATM’s operated by at least 28
banks in US
The concept of using SMARTPHONE-based
system in ATM aims to curb the growing problem
of “skimming” in which criminals steal the data on
a card often by inserting devices into the ATM
Card slot. Skimming cost the Global Banking
industry some $ 2 billion in 2015 & can lead to
other kinds of fraud when card data is stolen
Another security benefit of using SMARTPHONE-
based system in ATM is that authenticating on the
handset reduces the time spent at the ATM to
around 10 seconds instead of the typical 30-40
Bank of America(BoA) is currently developing a
new card less ATM solution based on NFC(Near
Field Communication)technology to allow
customers to authenticate without the use of the
card.The Bank will roll out this facility in select
ATMs in SiliconValley, San Francisco,
Charlotte,NewYork & Boston
15. Case Study
In case of Chase Bank, customers
will be able to request an access
code through the Chase Mobile
App & enter it at the ATM to do
their transactions. Later on they
will be able to use their digital
mobile wallets to complete the
transaction at the ATM
Wells Fargo is also on board
developing ATMs that will allow
customers to use their
SMARTPHONES to obtain an 8-digit
token to authorize a cash withdrawal.
Wells Fargo will support Android Pay
for this facility
Chicago-based BMO Harris ,an
affiliate of Bank of Montreal
began using SMARTPHONE at its
750 ATMs in 2015
ATM manufacturer Diebold is testing a Headless
Teller Machine without a screen or keypad which
dispenses cash from interaction on the
SMARTPHONE. Customers need to only
verify their identity which can be done with the
devices fingerprint reader or possibly with an iris
scanner on the ATM
Diebold is testing the
new concept with
Citibank that could
prove a better
experience
