ING Hunt for Lions

2. Index
This document is prepared to analyze the opportunity
presented by digital banking in banking sector. In this era of
digitalization many have started questioning the relevance
of branches in places where people have resources and
knowledge to use digital banking. In this document we have
tried to analyze the consumer behavior and cost that can
be saved by digital banking.
Below is the index to follow this slide.
 Consumer analysis(slide 3-5)
 SWOT analysis(slide 6)
 Road map and strategy(slide 7-8)
 Cost and benefit calculation(slide 9-10)
 Product portfolio analysis(11)
 Conclusion(12)

3. Consumer Analysis
 We collected responses through a survey and
interviewed people over telephone/Face to face.
 Among 120 people, 80 were survey respondent
and rest were interviewed through phone/Face to
face.
 We wanted to know that today's how and why
customer use banking services and what their
inclination are. We surveyed people who were
educated at minimum graduate level across all
age group.
 Link of the survey is
https://www.surveymonkey.com/s/Y2V2J65
 In our survey result we found that almost 93.3 %
people prefer net banking over branch banking .
 75 % people have never visited their respective
branch in last six month.
 Almost 100 out 120 respondent feel that it saves
a lot of time and easy to use.
 Most of the user access their net banking through
PC but almost half the users use mobile also.
 Basic utility and credit card payment scored high
in purpose of use.
 Respondent who provided suggestion, among
them many of the respondent wants all
documentation to be done online and they also
believe that customer care executive are not well
trained.

4. Consumer preferences in new Era

5. Consumer behavior in digital banking product

6. STRENTGH
>Internet banking is not bounded by time and
place.
>Cost effective for both client and bank.
>More front end can be placed in the back end
it will result in better services and efficient
data handling.
>A bank can employ more resources on
promotion and product design from day to
day banking business
>Provide better Management Information
system
WEAKNESS
>Security threats are high
>Require highly skilled worker for support and
maintenance
>Distance between customer and bank increases.
>It is still hard to implement KYC norms and
deposit cash through Internet banking.
OPPORTUNITY
SWOT
>As more young and tech savvy generation will
enter in to colleges or workforce demand for
internet banking will increase.
>In our survey we found that any one who is good
with computer prefer net banking over branch
barring his age or gender.
>Advent and growth of online trading will also
attract people towards digital banking.
>With advance of technology more product
offering will be possible on digital banking.
THREAT
>Law is still not sufficient to deal with all legal
issues regarding internet banking.
>As implementing the technology come with a
huge cost ,it can throw small players out of
business thus creating a oligopolistic market
where cartelization is possible

7. A Road Map

8. Road map
Short term Strategy (0-3 Years)
 Our short term Strategy will be closing down some
of our Segment A branches in next 3 years with a
well defined process.
 Workforce released from these places will be
deployed to win more customers and prepared
them for use of digital banking.
 All the branches of these metro and tier one cities
which will be closed down, will be replaced with
small outlets where basic customer processing and
queries can be handled.
Issues that can come up in above strategy:
 Most of the big customers, who are in to business
where cash payment is a norm prefer depositing
cash.
Solution
 Bank will offer pick up of money from customer’s
place.
Assumption:
 While forming above strategy we assumed that
ING Vysya is already on digital Platform. As
information sourced from its website, we know
that it has capability to offer any product of digital
banking. So we believe that ING Vysya will not
incur any infrastructure and technology related
charges in short run.
Long term strategy(3-12 years)
 In long term more people, who are consumer of
Segment B branches will shift towards
Digital/Internet Platform. Most customer of Segment
A will also be Internet Banking.
 Removal of Branch banking in segment A and
Segment B.
 Some of the workforce and infrastructure can be
diverted towards Segment C.
 Creation of a fully integrated internet banking
platform where even document submission can be
done online.
 Outsourcing of technology work to competent
vendors for this transformation.
 Central headquarter to control all net banking
related activity.
ISSUE:
 Cost of getting a Central headquarter will be high.
 Choosing a right IT vendor will be a tough task.
Solution:
 Saving from short run will be utilized.
 A competitive bidding will help in while choosing
vendor.

9. Cost calculation for short term strategy
 First identification of some
branches, those falls in
Segment A was done. Our
assumption is that in big
and metro cities we will be
able to drop 1 out of three
physical branch. Belief for
this comes from the
consumer behavior shown
in the survey as consumer
of these branches are
heavily in to Digital
banking. Below is the list of
those cities and probable
drop no. of physical
branches
 We found that at least 58
branches can be shifted in
to a outlet with in three
years
 We also estimated average
cost of rental and employee
salary per branch

10. Cost calculation for short term strategy

11. Product comparison and their way forward in
digital marketing

12. Conclusion
 In our survey we found that young generation across the
cities and people of metro has found digital banking a very
good substitute to their respective physical branch.
 We have strong reason to believe that digital banking is a
way forward also growth in this sector suggest the same.
 So we believe that now time has come to segment the
market in terms of digital and non digital customer and
serve them accordingly. It also high to reduce the physical
branches where customer are heavily incline towards
digital banking
 We also believe that cost reduction through Internet
baking can be utilized in increasing the efficiency and
creating a robust system to gain competitive advantages.