Internet Banking Of

State Bank Of India

IMPACT OF TRAINING ON MARKETING AND

SERVICES ON INTERNET BANKING
Objectives
The main objectives of the research are:
To understand the concept of Marketing, Service and
Training on Internet banking and importance, to bank.
To build up SWOT analysis of Internet banking of SBI
To build up various solutions for drawbacks in net
banking
Need of the Study
This study is needed to find out the impact of training,
marketing and services of Internet Banking of SBI and its
importance to bank.
Data Collection
The data is collected from the official website of State Bank Of
India and other Banks websites.


Internet Banking Of
State Bank Of India

INTERNET BANKING

Services offered by Internet Banking in SBI

RETAIL BANKING:The Retail banking application is an integration of several
functional areas, and enables customers to:

E-Ticketing

SBI E-Tax

Bill Payment

Eztrade@sbi

RTGS/NEFT

E-Payment

Fund Transfer

Third Party Transfer

Demand Draft

Cheque Book Request

Account Opening Request

Account Statement

Transaction Enquiry
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Internet Banking Of
State Bank Of India

Demat Account Statement

Donation

State Bank Virtual Card

CORPORATE BANKING:The OnlineSBI corporate banking application provides features

to administer and manage corporate accounts online.
The products offered under Corporate Internet Banking:

Advantage (Khata)

Advantage Plus (KhataPlus)

CINB (Saral)

Privilege (Vyapaar)

Freedom (Vistaar)

Electronic Vendor Finance

Electronic Dealer Finance

Direct Debit

E-Collection

The services offered under Corporate Internet Banking:

Access to multiple users

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Internet Banking Of
State Bank Of India

Account view / Statement

Funds Transfer

Third party funds transfer (RTGS/NEFT)

Demand Draft request

Utility Bill Payment

Bulk transaction through file upload

Direct and indirect tax payment

SMS/Email alerts

User hierarchy with discretionary access/rights to accounts

MIS reports

Host to Host integration

Demat View facility

The services offered by other banks are not greatly different

from the ones offered in State Bank. Also State Bank has a
robust and tailor made products in Corporate Internet Banking
covering right from a proprietorship firm to Large Public Sector
undertaking and Government offices.
Industry Majors like ONGC, IOC, etc.

It is being used by


Internet Banking Of
State Bank Of India

The products and services in Internet Banking are being

customized

by

the

Global

Information

Technology

Centre(GITC), Belapur, Navi Mumbai.

The value added services introduced by the bank in the last
couple of years are listed in Annexure 1
Marketing in the Bank
The marketing in the bank is driven through mainly various
Campaigns launched from time to time. The latest of such
campaigns being SANKALP campaign providing incentives to
the staff members viz., Branch Manager/Controllers etc. The
bank has been able to achieve all the targeted goals set under the
campaign. In the earlier years we have conducted campaigns
viz., PRAYAS and CHAITANYA.

However we could only

achieve about 35% of the target in Campaign CHAITANYA.

The bank had also launched Re.1 campaign to popularize the
usage amongst staff members. However all the campaigns were
restricted to only Retail Internet Banking.


Internet Banking Of
State Bank Of India

The other means of marketing adopted being Banners placed at

the branches headed by Chief Managers and above.
The branches are also incentivized with Transfer Price
Mechanism

for

mobilization

of

Internet

banking

accounts/transactions.
eZ cards are also being provided to the customers who are
opening new accounts with the bank.
The bank is contemplating to

launch Media Campaigns in

visual and audio media during the current FY.

The figures during the Financial Year 2011-2012 is provided
below:


Internet Banking Of
State Bank Of India

INTERNET BANKING STATISTICS (IN LACs)

Growth %Growt

As on As on
Mar1 Mar1
1
2

Head

Registered
Users
Retail
Registered
Users
Corporate

Upto

h During

Mar1

2012

2
44%

58.65

84.65

26.0
0

3.94

4.98

1.04

Retail
Txns

980.6
9

1812.1
9

831.
5

84%

Corporate
Txns

456.7
7

798.13

341.
36

74%

No. of
Online Bill
Payments

174.4
5

374.63

200.
18

115%

26%

The %age growth under all the parameters is encouraging. This

has been mainly driven by campaigns as also the training
provided across the bank.


Internet Banking Of
State Bank Of India

The % of Internet Banking transactions as to Core transactions

is at a healthy_____ %.
TRAINING
The training with regard to Internet Banking at the Basic,
Intermediate and Advanced level is being mainly provided at the
Apex Institute SBIICM.
Basic level programmes / workshops are conducted at the
various SBLCs of the Bank. Branch Managers and Trainers
attending programmes at State Bank Staff College are given
basic/intermediate inputs in Internet Banking by the faculty
from SBIICM.
During the period April 2011 to March 2012, SBIICM
conducted 282 programmes covering 6736 officials. SBIICM
also covered 19 specialized or advanced Internet Banking
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Internet Banking Of
State Bank Of India

programmes to cover both Retail as well as Corporate Internet

Banking.

The above specialized programmes covered in

training 418 staff members (officers) during the period. In all

the other programmes, basic and intermediate inputs on Internet
Banking was provided to all the trainees.
To study the impact of training in Marketing and Services of
Internet Banking, we analysed the pattern of various parameters
as listed below, before and after the training programme for a
couple of programmes.
Participants from

following branches attended advanced

Internet Banking programme:

COMMERCIAL
BRANCH,
BANGALORE
COMMERCIAL
BRANCH,
BANGALORE
COM BRANCH,
MADURAI
COM BRANCH,
MADURAI
CAG, CHENNAI
CAG, CHENNAI
CAG, AHMEDABAD
CAG, AHMEDABAD


Internet Banking Of
State Bank Of India
IND FINANCE
BRANCH, PUNE
IND FINANCE
BRANCH, PUNE
CAG HYDERABAD
CAG HYDERABAD
IND FINANCE
BRANCH,
HYDERABAD
IND FINANCE
BRANCH,
HYDERABAD
BACKBAY
RECLAMATION
BACKBAY
RECLAMATION
OVERSEAS
BRANCH,
BANGALORE
OVERSEAS
BRANCH,
BANGALORE
IND FINANCE
BRANCH,
BANGALORE
IND FINANCE
BRANCH,
BANGALORE
COMMERCIAL
BRANCH LUCKNOW
COMMERCIAL
BRANCH LUCKNOW
CAG, DELHI
CAG, DELHI
OVERSEAS
BRANCH, DELHI
OVERSEAS
BRANCH, DELHI
COMMERCIAL
BRANCH,
COIMBATORE
COMMERCIAL
BRANCH,
COIMBATORE

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Internet Banking Of
State Bank Of India
COMM BR
BHUBANESWAR
COMM BR
BHUBANESWAR
COMMERCIAL
BRANCH, INDORE
COMMERCIAL
BRANCH, INDORE
INDUSTRIAL
FINANCE BRANCH,
BARODA
INDUSTRIAL
FINANCE BRANCH,
BARODA

Internet Banking Statistcs of the Branches covered under

training during Nov,2011
As on
As on
October
December
%age
2011(Befor 2011(After
Increa
Users
e Training)
Training)
Difference
se
1 Retail Users
2 Khata Users

12
2

11
0

-1
-2

-8
-100

3 Vyaapaar
4 Vistaar
5 Retail Txns
Retail Amt
6 Txns
7 Khata Plus
8 Saral
Corporate
9 Debits Count
Corporate
10 Credits Count

2
5
6993

8
19
7706

6
14
713

300
280
10

35956428.12
1
1

61441383.12
4
2

25484955
3
1

71
300
100

54450

57203

2753

125041

121810

-3231

-3

11


Internet Banking Of
State Bank Of India
Corporate
11 Amount

21326675839
7.86

297613718600.
60

8434696020
2.74

40

The impact is seen in corporate internet banking registrations, esp

Vyapaar and Vistaar regn.s
The internet banking programme mainly addresses both Corporate as
well as Retail
Internet Banking. However the knowledge level of Corporate
Internet banking at
the operational level is not as much as it is in Retail INB. And hence
the jump or spurt
Also the people identified for pure Internet Banking programmes
from the Circles are mainly from Mid corporate or SME intensive
branches.

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Internet Banking Of
State Bank Of India

From this we could infer on the following:

The following were the main points

Market Share of the various banks is not available with the
Bank or with any other agency, as available in Mobile Banking.
The bank in the absence of such a data, is handicapped to make
directed/focussed efforts to garner / migrate customers to
alternate channels or market Internet Banking.

This is an

essential first step.

While campaigns have been the main marketing strategy
currently

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employed, the same has not enabled our staff to


Internet Banking Of
State Bank Of India

clarify many of the doubts / security apprehension that our

customers have on Internet Banking.
The knowledge in addressing routine customer problems /
issues at the operating branch level is found to be low. Many of
these problems get escalated to Corporate Centre (GITC),
especially in Corporate Internet Banking. This could result in
Customer dissatisfaction as also the customer getting back to
normal banking instead of alternate channel.
Customer meets should be organized at frequent intervals to
educate them on the features available in Internet Banking. The
advantages of alternate channels must be impressed upon. A
helpline to cater to customer queries on Internet Banking should
be established, that would go a long way.
In Corporate Internet Banking, currently GITC officials go over
to the various Circles to impress upon the features of CINB to
Government Offices, Public Sector Undertakings etc. However
thereafter we do not have resource at the Circle Level to carry
this further and book business.
There have also been aberrations in achieving targets stipulated
under various campaigns, as some customers are provided
without their knowledge, RINB with just enquiry rights.
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Internet Banking Of
State Bank Of India

Saral was launched in CINB because of the limitations of the

earlier versions for a large number of proprietary firms. Also
the knowledge gaps were high in handling the other CINB
products like Vyapaar and Vistaar.
More than 40% of the staff are not using internet banking which
could seriously impair the promotion of Internet Banking. On a
survey of the officers alone we found that 4686 officers out of
5957 officers surveyed alone used Internet Banking.

The

remaining 1271 did not have even user id.

While budgets are settled for Internet Banking, it is also found
that followup of the targets is not as desired in Internet Banking
esp, CINB.

The controllers visits should cover Internet

Banking.
There is acute shortage of resourceful personnel to immediately
resolve the issues of the customers at the operating end. Lack of
timely resolution demotivates the customers to use Internet
Banking. There is only one identified person in each circle who
knows to resolve. At times, there have been customers, who are
unable to put through transactions in CINB ever after 1 year of
availing the CINB facility. This has resulted in not escalating

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Internet Banking Of
State Bank Of India

the problems of the customers in time resulting in non-usage by

the customers.
There is also shortage of literature / writeup on INB at the
Branch level other than eZ cards which is also not very popular.
This can be overcome by displays and literature made available
at the branches as also the ATMs. Visibility, Advertisement,
Displays at the Banking halls should be promoted, Literature to
customers on Security / Phishing attacks and educating
customers on Internet Banking will go a long way in promoting
Internet Banking.
There is only one DGM with a small team who is driving the
Internet Banking at the whole bank level for marketing.
We also find that there is no consultant for marketing strategy.
This is evidenced by not having the Market Share at the whole
bank level.
A new contemporary homepage is available today which has
decluttered the login page.
In the government sector, the egovernance initiative that has
been made in Madhya Pradesh and Chattisgarh can be exploited
in other States.
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Internet Banking Of
State Bank Of India

When a customer is unable to login, many a time it takes about

15 days to resolve the issue resulting in lack of confidence at the
customer end.
The following may be looked in the short terms
The following may be our strategy in the long term.

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