Service Blueprint Banking Sector

Submitted By Group 12: Anish Shah 041 Vinit Gandhi 111 Dhwani Shah 139 Raj Sodha- 151 Bhavik Solani - 152

Introduction to Banking in India

O The banking sector in India has been widening its scope

due to liberalization. Banks today are not mere suppliers of money. O Banks have diversified into many other services like credit card, insurance, mutual funds. O Services provided are very money oriented hence very high on involvement. O Consistent and reliable services are important to gain trust from the customers.

Banking Structure
Reserve Bank of India

Commercial Banks

Co-operative Banks

Development Banks

Nationalized

Private

Short-term credit

Long-term credit

Agricultural Credit

Urban Credit

EXIM

Industrial

Agricultural

O Personal Banking O Loans O Cards O Forex

Services offered by HDFC Bank

O Accounts & Deposits

O Insurance
O NRI Banking O Remittances O Investments & insurance pay loan schemes O Wholesale Banking O Corporate O SMEs O Government sector

SWOT Analysis of HDFC

Weakness Strengths
Second largest private player Extremely low attrition rate Good financial advisors Weak presence in rural areas Lacks aggressive marketing Fluctuating share prices

Opportunities
Greater scope for acquisitions & strategic alliances Good opportunities abroad Better asset quality measures , profits likely to increase

Threats
Non banking financial companies and new age banks are increasing HDFC is not able to expand its market share as ICICI imposes major threat

Product Levels
BENEFIT WITH RESPECT TO THE BANKING INDUSTRY 1. CORE BENEFIT Withdrawal & Deposit of money 2 BASIC PRODUCT Bank a/c, documents, cheque books, etc

3 EXPECTED PRODUCT

Timely service & flexibility of withdrawal & deposit, safety of funds, etc ATMs, e- banking, tele banking, Home loans, forex, credit cards,

4 AUGMENTED PRODUCT

5 POTENTIAL PRODUCT Mobile banking

Service Process Matrix

Service Process Matrix
Low
Degree of labor intensity
Degree of customisation

High

Service Factory

Service Shop

Professional Service Mass Service BANKING SECTOR

High
Source: Schmenner, R.G. (1986), How can service business survive and prosper?, Sloan Management Review, Spring 1986, 21 32.

Product
O Banking is a very critical sector and the

competition in this sector is very fierce after liberalization. Banks have to choose on important parameters while determining the product mix. - Target Customers - Services to be given - Government control

Service Flower

Physical Evidence

Bank Branches

ATMs

Website

Cheque Books, Pass Books etc

Logo Tagline Bank Brochure Statement of accounts Employees uniform Relationship managers

PRICE
O The interest rates charged by the different banks.
O While framing a pricing policy different pricing

methods can be used:

1.
2. 3. 4. 5.

Value Pricing Cost plus pricing Going rate pricing Competitive based pricing Market oriented approach

Place
O Place mix is the location analysis for banks branches. There

are number of factors affecting the determination of the location of the branch of bank. It is very necessary a bank to situated at a location where most of its target population is located. O Some of the important factors affecting the location analysis of a bank are: 1. Adequate availability of transportation 2. Communication, electricity and other necessary facilities for smooth functioning of the bank 3. Neat and clean surroundings 4. Safety 5. Physical distribution and electronic distribution 6. Location of branch, head office, ATMs

Channels
O Zero Level

ATMs Customers Branches Customers Website Customers Mobile Customers O 1 Level Shopping Places Card Banking Customers

People
O The banking organizations are supposed to satisfy

different types of customers living in different segments. The segmentation of market makes the task of bank professionals easier. O Segmentation with respect to: 1) Household Segment 2) Gender Segment 3) Profession Segment 4) Institutional Sector O Internal People include all the employees and vendors.

Promotion
O Personal Selling: The bank marketers get the best

opportunity to tangibilize the product through personal selling; persuasion is more effective with direct contact. It helps in creating impulse buying O Advertising: TV advertisements, Festive promotions, newspaper advertisements. Point of Purchase materials like brochures, calendars, diaries etc. O Public Relations: Social welfare and CSR activities

Process (Blueprint Components)

O Line of interaction : direct interactions between the

customer and organization. O Line of visibility : this line separates all service activities that are visible to the customers from those that are not visible. O Physical evidence : the elements which the customer actually see or experience when they use a service and which contribute to the perceived quality of service.

O Customer actions : includes steps, choices, activities

and interactions that customer perform in the process of purchasing, consuming and evaluating the service. O Onstage contact employee actions : steps and activities that contact employees perform and are visible to the customer. O Backstage contact employee actions: steps and activities that occur behind the scene to support onstage activities. O Support processes : covers the internal services, steps and interactions that take place to support the contact employees in delivering the service.

Service Blueprints

Creating a new account

Physical Evidence
Welcome Desk Chairs/Desk Form/Brochure Money Counting machine

Customer Action

Inquiry

Interaction with the banker

Fill forms and Submit

Makes payment

Line of Interaction Employee Action Line of Visibility Background Activities

Entry into customer database Payment credited to A/C Guide to New A/C counter Give details of various accounts Enter details about new A/C Receives payment and credit to A/C

Depositing Money
Rack of depositing bank slips Waiting area of the bank Deposit Counter

Physical Evidence

Customer Action

Enter Bank

Fill Slip

Give slip at deposit counter with cash/ cheque

Line of Interaction
Employee Action
Watchman gives deposit slip

Receive slip and enter details

Line of Visibility
Background Activities
Details of cash/ cheque are entered into database and money credited

Issue of credit card

Physical Evidence
Credit card form waiting area Credit card kit

Customer Action

Inquiry

Fills the form and attaches docs

Wait

Receives the credit card kit

Line of Interaction Employee Action Line of Visibility Background Activities

Entry in the system
Issue of credit cards and dispatch Explain diff types of credit cards and benefits Check docs and enter in database Verification of documents Gives credit card kit to customer and explain details

Bank Lending Process

Loan application
=== ==== ====

Branch 30min--1hr.

Officer

Pay book
===== $ 0 $ ==== =====

w Notify Line customer

w
Receive Payment Final payment Confirm

Decline F Verify income data Initial screening 1 day

of visibility
Issue check

F Close account

Deny Credit check 2 days

Accept

Print payment book 3 days Branch records Accounting

Delinquent F Verify payer

Employer
Bank accounts Data base records

Credit bureau
F

F
W

Fail point

Customer wait

Employee decision

Cheque Clearing Process

Internet Banking

Describe what services you have blueprinted and why?

O We are making Blueprint for primary Banking

Services. 1. Opening an account 2. Depositing Money 3. Withdrawing Money 4. Bank Lending Operation 5. Cheque Clearing Process 6. Internet Banking As Banking envelopes many services under it, it is difficult to blueprint every service.

Describe key customer actions & why they are crucial to success of service?
Key customer interactions according to us are: Opening an account: Filling forms, signatures, photographs & submitting required documents become a critical activity from customers side. Depositing Money: Filling the slip and checking the passbook becomes critical for depositing. Issue of Credit Card: Filling forms, signatures, photographs & submitting required documents become a critical activity from customers side Bank Lending Operations: Apply for loan Cheque Clearing Process: Provide cheque to the bank teller Internet Banking: Access bank page & provide login information. Process payment.

Describe key Employee actions & why they are crucial to success of service
Key employee actions are: Opening an account: Explaining the details about all the accounts and guiding the potential customer through the whole process. Depositing the money: Actual counting of money and updating the database is the critical activity on the employees side Issue of Credit Card: Explain various credit card offerings, collect & verify documents, issue card kit to the customer. Bank Lending Operations: Verify the documents provided, then process loan for approval. Cheque Clearing Process: Provide receipt to the customer. Clear the cheque after verifying the bank account & balance. Issue amount to the customers bank.

Describe key elements of the physical evidence

1. 2. 3. 4. 5. 6. Branch Deposit counter Helpdesk Credit Card Internet Bank Website

Service Failures
O Opening an account 1. 2. 3. O 1. 2. O

Was the potential customer correctly guided about the various types of accounts? Was the personal banker well informed about the account services provided? Were his needs and capabilities correctly gauged? Depositing the money Was the depositing process easy? Was the waiting queue very long? Issue of credit card Was the customer correctly furnished about the card? Was the experience pleasant? Did the credit card arrive on time? Was the verification procedure explained to the customer?

1.
2. 3. 4.

Service Failures
O Bank Lending Operations: O Was the customer correctly explained the loan procedure? O Did the customer furnish correct information? O Was the credit check approved? O Was the verification of bank accounts successful? O Cheque Clearing Process: O Was the details furnished appropriate? O Did the cheque belong to the issuer? O Was there presence of enough funds in the issuer

accounts?
O Internet Banking: O Were the login details valid?

Uses Of Service Blueprint

O Providing a Platform for Innovation
O Recognizing Roles and Interdependencies O Facilitating O O O

Both

Strategic

and

Tactical

Innovations Transferring and Storing Innovation Knowledge Designing the Moments of Truth Clarifying Competitive Positioning Understanding the Ideal Service Experience

Application of Service Blueprint

O O O O O O O O O O

Rendering service as promised Managing fail points Training systems Quality control Creating realistic customer expectations Service system design Promotion Empowering the human element Selection criteria Job description

Thank You