Prioritites on customer interest and values important to customer. Business is to create a customer.

Customers view of the world: Ms Rama Bijapurkar Like a prayer: Cant prove whether this would lead to ur prayer being addressed etc. Framework of how to think about CC and as a lens to use. Hector Ruis Chairman of AMD says CC is doing things on behalf of the customer and manking a profit while doing so. Tyranny of OR. Customer satisfaction or Profit. No OR tyr. Mgmnt exists for the same purpose. To get, retain, deepen business, emotionally bond, this is a key part of the profit story. Creating value to a customer. Winning over competiotion, deliver better over competition. Better value than the next better derivative being offered. Loyalty, stickiness, advocacy happens whn more value is being delivered than competition. World changes, rules change. Problem of plenty, hyper growth. Prblm of mkt share, What is the mindset, Create 20 new prdts and 1 will click. Startreck: Saleforce: Feet on street. Grow with selling. Brand magic driving growth. Brand is thatalk for your walk. FS sector better advertised. Is there value delivery happening Value in whose opinion? Center mounted vs Side mounted. Changing value equations. Do it yourself. The current holy grail. Time rich and money poor and vice versa. The latter part outsource work. Vlaue is in the eyes of the neholder. Whn your delivering value, what is the value you are going to deliver and signal it. How to configure it. Eg: in a hotel. Service is anything you want it to be . Multiskill ppl and figure out a way to deliver it. Modernity. Add and extract value. Modernity to others may not be modernity to me. What is value? The sigma of all the benefits you offer minus the costs. Very subjective Can be both rational and emotional. Costs are not just about price. Processing value. India is self employed. V r designing products for ppl who r paycheck based. Worng match Value = CPV: Cusotmer perceived value. Buy market share. Capability to offer more convenience etc over the others. Compnay competition, and customer. B-C = Profit

Vme>> Vcomp. Minimise cost to me and value to the customer. Money is just not about the buying power and the liquidity. About security, power etc. More input from your end does not mean customer perceived value. More service is not necessarily better. Design deliver and signal. Customer Fairness: Fariness: Customers confidence that fair treatment is being given. 2: Pdts and services designed fairly 3: Provide proper info and appropriate updates 4: Suitable advice 5: Perform as Led to expect Processing value: How do customers process value: Poor having more complex needs than the rich. CVP is complex What Drives customer perceptions of value: Money today is important to me now, but less imporatn later in life Education change perceptions? Educate about something that fundamentally does not make sense is a waste. Educate where there is a vlue logic transfor the logic or the product ur offering. Eg of value desing and delivery: Outsoucirng and then those ppl not being aware of the products offered. Process obsessed and customer hostile. Difference between perfume and Bank acc. KYC. Financial Inclusion: where is the value being delivered. Design delivery is a huge issue. Language barrier on ATM screens for uneducated. R v delivering value through inclusion SME hospital: This is the value of Customer centricity.

Meaningful segmentation, To deliver to various segments, managing the cost of complexity. Where you choose to play is important to manage complexity. Changing customers, or kind of customers in the bank annual report?

Changing profile of customer and the banker. How do you change the same? Finding stability in the unstable world. Accepting ppl as they are and catering to their needs. Is the customer taken seriously in the board room. Mkt share based on prod, geo etc. Which part of ur business is being responded to a particular segment is the toughest to answer. Multiplicity of products? More products to cater to various segments. Build a common platform and build on it or have radically different products. Thoughful, defensible segmentation. T rich m poor and vice versa is good segmentation. FS products being intangible and not much research on segmentation. However FMCG also facing the same thing or can FMCG data help? FS has invested in sources that helps in data gathering. Quality of compliance Employee as a customer with changing demographics. Completely new tools to judge customer satisfaction.

------------------------------------------------------------------------------------Bringing customer focus to customer strategy.

Productivity excellence through customer centricity: Mr Saurabh Tripathi Customer centricity in Indian Banking

CC is a prayer and the prayer might may or maynt be answered. In banking what is CC is not exactly known.

Survey of 5000 cusotmers and the finding of the research. 3 measures: Retention: How many will nt switch their bankd=k acc despite better prices. Drivers: no of interactions with the bank 62% said will not switch. 52% 2. Satifactiodn: Net satis score. Very satisfied Not satisfied. Meeting customers expectations. 3. Advocacy: Getting customers to recommend. What is driving advocacy in he Indian Banking. Yes ppl who were not sure.o Low dvocacy dspite high satisfaction. Net promoters score: High for Savings and moves downward towards lending and MFs. Retention: With increasing alternative channels the percentage of switching decreases. (ATM+Mobile+Internet) With increase in alternate channels, tha balance maintained increases. 20 % increase. Normalised for socio economic category. State in India: On an avg, how many channels a customer uses: 1.8. Best is 2.3 on an average. Customer education will improve this. Adoption rate: Branch and ATM > 90 Other services like Dr card, mobile etc < 25. Y they dint use the alt channels: Not aware: Most common reason, Mobile Dont know: ATM

Safety: Dr card Hidden charges: Inconvinience: Internet Bad xperince in the past: Call Center Dont feel the need: Mobile banking Mobile banking not designed for applications in banking initially. Pvt sector bank customers interact more with their banks. Customers who interact more with their banks keep higher balances and are profitable. On an avg, for Large pvt sctr banks: Interaction is 3.8. For public sector is 2.9. Pvt sector banks have provided better dservices through convenience in transacting. Customer segmentation needs to better and this has a impact on the balances they keep with the bank. Customer satisfactiodn: Satified have high balances. Customers satisfied with new channels are overall satisfied with the bank. Therfore if u introduce new alternate channels, ensure availability and convenience. Level of diss with call centers and Debit cards is huge. Dr card has a direct impact on CASA. Huge benefit associated, but most diss creating element. Advocacy: Excellence in non routine transactions gives customer satisfaction but does not build advocacy. Net satisfaction for no nrrt: 53. Diss satisfy with NRRT: -78. Satis with NRRT: 90% Advocacy remained same. However it effects satisfaction. No comp: Adv score: 32 -33: Com, not satisfied 66: satisfied with compl resol As frequency of branch visits go up, advocacy also goes up. Its important to get customers to the bank. Customer meets. Business value of customers voice.

Mass market banking and the deposits. State of CC in India

How do you benefit if u be CC

Financial inclusion: Ramesh Ramanathan Janalakshmi: JFS: Urban Micro Finance company. Non profit holding company. Oldest Microfinance company. Beginning from Sanghamitra. Myth that living close to a bank branch means financial inclusion. Not just bottom of the pramid, but there is a pyramid at the bottom of the pyramid. Understand the diff segments. Sub basement: Include: 1st gen migrants. Cant lend, however open liability accounts. Nurture: Classic urban poor. SHG, microfinance loan serviced at the door step. Int the nuture grp is accelerate: Beyond the loan, deepening the relationship. Individual relation ship. Above this is A- Middle and over it A-MSME. MSME is 15-20 Lac of credit. We need to talk about the <=10L ppl Nuture: About these customers: 92% illiterate. Urban: 0 accumulated savings. 66% Accelerate: Studies in Banglore: Delivering value to them. Micro finance is high touch banking. Goin to doorstep and giving collecting money. Not seen as an opportunity but as a liability. Commercial value for us as a service provider. JFS has 30k customers. JanaOne center, an advisory center. Data and credit history allowing JFS to offer loans to this group as they also have xperince and prior loans MSME market: JFS built a credit engine. Pan card, auditors cert etc A-Middle: Here we know only history. We do not have 2 year data regarding the ppl. Out of 7000, 78 % percent have no bank accounts but have an avg business history f 10 yrs. 1 million micro entrepreunuers who dont have bank acc. Most dont have book of accounts as well. Missing middle. How big is this area.

Most of them are in an informal business. Massive opportunity but there has to be an innovation as to how to tap them. Illiterate: Howver want to move to IT jobs. CC: the information instructure To transform the org, we need information infrastructure to build for financial inclusion. Need of information technology more than the banking sector to tap the financially excluded. Know what kind of info is needed from the data available. Business side separated from CC who do R&D. Learn about customers aspirations. Needs to be driven from the top. Regulators perspective on customer centricity: D G Kale Landscape: We require banking but not the banks. What banks should be in the future. Challenge for India: Continuos decline of Finanical savings in domestic savings. Not a good sign. Savings thru the financial channel is amust for growth. Rela estate and Gold incestment is not good. Its going to end up in charity which is getting wasted. Voice of the silent majority: Rate of interest that would instigate ppl to save. Awareness of the regulator is very low. Survey conducted showed that ppl were not aware of what exactly RBI was doing and its responsibilities. Who is backing u, supervisory etc Regulators effectiveness: Cost of compliance and cost of bringing back an org that would collapse. Tax arbiterage lead to the notion of too big to fail and self regulation. Prof Stiglis mentions as the regulatory capture. We cnnt absorb this Risk profiling: Make the person understand which profile he is falling into and the kinds of risk he is exposed to to be more CC. Zero tolerance for failure: Very accomoadtive in putting everything under human error. We howver do not confess about the error. Tolerance for mistakes is not at the zero level which now should be changed. Treating customers fairly: Right from the beginning, this was thought that TCF is important and being CC. Howver needs to be measured. Less no of complaints does not mean that ur perfect. Does not reflect service quality.

Switching service providers: V talk of competition but the customers have no choice cause of location. Competion comes in where > 100 branches r there. Such centers are only 63 in number. To bring CC make switching easy. Problems with FS providers: Staregy for customer acquisition but no strategy for mapping the acquisition is not there Financial Advice: SHld there be a fee charged? Financial crime: Hand holding and explaining to customers is not there. We are more interested in acquiring the customers. KYC entails knowing the customer. Walk the talk. When it comes to Fin crime, v need to prove tht the liability is on the customer and not the bank Accessing fin Info: What to look for in a fin report? Does the person know Vulnerability: Vulnerability in terms of information: Is it resulting in proper decision making? Or analysis paralysis? Satisfaction is a psychological experience. Consult the customer for the customer needs not just as a compliance measure. Pressure: Internet banking: <20 sec transaction. Supply : Cutomise the products and standardise the products. Not vice versa. Each cust needs something unique Redress: Knowledge of the grievience redressal mechanism. Courage to go for greivence redrassal comes from education. Impact: How does this offereing affect me in terms of social standing or peer pressure. Rationale for regulation and taxonomy of vul: Comes with social responsibility. FI also is included. FI includes Education and consumer protection and this will make him feel protected leading to process of fair traement. TCF: Sense of TCF has to be driven from the top mangament of the bank. R v now treating better or worse. The take is 50-50. R u confident that u have been treated fairly. TCF is a holistic approach and not just crowd management. TCF outcomes: TCF is core to corporate culture.

Roadmap for customer centricity M V Nair Are we ticking at the same pace with the cheese or the cheese has already been moved. CBS is no more a competitive offereing. Same with alternative channels and BPR. Creative management of the information will now be the key source of competitive advantage. Peep into the past: Segment to be catered to in the future: Pre reforms: 1. MKT share predicted to come down from 80 to 56, but the psbs have still held on. PVT sector has come with technology, better marketing. In 2008, the crises resulted in flight to safety and choose PSBs. This led to the growth in the balnce sheet. Now tht the mkt share has remained intact we cannot remain lax. While we talk about asset quality, y is it that the valuation of PSB is low. Biggest challenge is asset liab mismatch, reducing CASA, common equity capital. Reasons: Few banks who have actually analysed the data and shift some of the good accounts. 2. Segment dealing with: 400 billion accounts in the banking sector. The next gen also will have the same number. Are we prepared for such large nos and have the capability to service them. Existing customers are underbanked. Looking at the avg no of products And u have a new gen coming in. Approach for the two needs to be different. Only banks without MFIs taking this challenge is difficult. Information is power. Offer products that suit the customer need. Winning in this business to be based on total customisation. Serious drawback of PSBs is quality: Asset quality deterioration. In 2010, NPA: 2.1 2.9 for pvt. In 2012: 4.7 and 2.1. Reversing. Post 2008, public sector had a role to play. We kept on lending, but it helped the economy. Also CBS made the NPA calculation better. We also financed the 1.3 trillion infrastructure oppor. PSBs financed it. As pvt sectr provided data to CIBIL, it was rejected initially. Now acceptance is 75% and they are in a position to utilise this data. They got the benefit of data. This indicates that the better we use the data of the customers, the better we benefit. UBI: Create better experience for the customer and the employees. Provision of a customer lobby. Placing of a customer care unit. Single processing center for complinats, service requests. Opportunity for customers, empowerment. Quicker resolution and RCA. Training ppl and backing of customer intelligence unit. Work of CRM.

Advantages for us: Cheap technology, we are better advanced. Integration of social networking. Huge opportunity. When we dig for gold, we move through dust. We have to clean, collect the data from the customers. Unless we are trying to get this data right, other things we do is a sheer waste.

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