HDFC case study of micro finance
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The document discusses HDFC, a housing finance corporation in India. It provides loans to individuals looking to buy homes. HDFC gained popularity as more young people wanted to own property but needed financial support. The document discusses HDFC's brand positioning as a premier and trustworthy housing finance institution. It discusses HDFC's competition in the market from other banks and HDFC's strategies like direct sales agents and customized solutions. The document also has several questions about motivating rural customers, reinventing HDFC, training employees, insurance policies, and maintaining long-term relationships with customers.
HDFC case study of micro finance
- 1. HDFCHDFC Kavita Mathews (M:03)Kavita Mathews (M:03) Kevin Pinto (M:04)Kevin Pinto (M:04) Mamta Gour (M:06)Mamta Gour (M:06)
- 2. IntroductionIntroduction The purpose was to provide loans for individualsThe purpose was to provide loans for individuals looking at buying a house.looking at buying a house. The reason this concept gained popularity was becauseThe reason this concept gained popularity was because the younger generation became more independent.the younger generation became more independent. They wanted to own a property but wanted financialThey wanted to own a property but wanted financial support.support.
- 3. Brand positioningBrand positioning The premier Housing Finance Corporation.The premier Housing Finance Corporation. TrustworthyTrustworthy
- 4. Competition and SalesCompetition and Sales strategystrategy Due to RBI regulations, other banks too entered theDue to RBI regulations, other banks too entered the market.market. Strategies like Direct Sales Agents and customizedStrategies like Direct Sales Agents and customized customer solutions.customer solutions.
- 5. How to motivate rural customersHow to motivate rural customers to take home finance?to take home finance?
- 6. How to motivate rural customers toHow to motivate rural customers to take home finance?take home finance? Customized loan repayment options like:Customized loan repayment options like: Longer repayment optionsLonger repayment options No penalty on early repaymentNo penalty on early repayment Relaxed collateral normsRelaxed collateral norms Loans for repairsLoans for repairs
- 7. What ways should be developed by HDFCWhat ways should be developed by HDFC to reinvent itself and ensure leadershipto reinvent itself and ensure leadership position in the market?position in the market?
- 8. Ways developed by HDFC to reinventWays developed by HDFC to reinvent itself and ensure leadershipitself and ensure leadership Expansion-More MergersExpansion-More Mergers Keeping in mind , the success of HDFC-Centurion Bank merger ,Keeping in mind , the success of HDFC-Centurion Bank merger , which is was the largest merger in Banking Sector which enabled HDFCwhich is was the largest merger in Banking Sector which enabled HDFC to expand its branch network from 750 to 1,850 branches andto expand its branch network from 750 to 1,850 branches and spreading from 325 to 820 cities in the immediate past two years.spreading from 325 to 820 cities in the immediate past two years. It can be said that such large scale merger should be adopted byIt can be said that such large scale merger should be adopted by HDFC for its re-invention.HDFC for its re-invention.
- 9. Hi-Tech Training & DevelopmentHi-Tech Training & Development Employees are always as important as theEmployees are always as important as the “sugar to“sugar to the cake” for any re-invention , hence HDFC apart fromthe cake” for any re-invention , hence HDFC apart from e-learning & training for training new-recruits shoulde-learning & training for training new-recruits should develop M-training module which should uses mobiledevelop M-training module which should uses mobile as a mode of disseminating information and training.as a mode of disseminating information and training.
- 10. Revision of Insurance SlabRevision of Insurance Slab ““The great majority continues to trust government-owned banksThe great majority continues to trust government-owned banks much more when it comes to parking hard-earned moneymuch more when it comes to parking hard-earned money”” becausebecause public sector banks have a government guarantee against failurepublic sector banks have a government guarantee against failure They have an access to unlimited capital because the governmentThey have an access to unlimited capital because the government backing.backing. So if the insurance sector issue policies covering deposits aboveSo if the insurance sector issue policies covering deposits above Rs.100k (up to Rs.100k is covered by Deposit InsuranceRs.100k (up to Rs.100k is covered by Deposit Insurance Corporation) to HDFC banks (as there is no risk of public sectorCorporation) to HDFC banks (as there is no risk of public sector banks being wound up), there could be gradual change in thisbanks being wound up), there could be gradual change in this regard.regard.
- 11. CTC conditions..CTC conditions.. Many things need to change – how chief executives and directorsMany things need to change – how chief executives and directors are appointed, salaries for senior appointments, the relationshipare appointed, salaries for senior appointments, the relationship with the shareholder (ie the government), the extent ofwith the shareholder (ie the government), the extent of operational freedom, and so on.operational freedom, and so on.
- 12. In a market like home finance, what steps shouldIn a market like home finance, what steps should be adopted and maintained by HDFC to ensurebe adopted and maintained by HDFC to ensure long term relationship with their customers?long term relationship with their customers?
- 13. Customer centricCustomer centric HDFC to reinvent itself has to stay relevant toHDFC to reinvent itself has to stay relevant to customers and ... The only way to rise up to thiscustomers and ... The only way to rise up to this challenge is by practicing true customer-centricitychallenge is by practicing true customer-centricity which means selling more protection-oriented productswhich means selling more protection-oriented products such as term, health and mortgage protection policies.such as term, health and mortgage protection policies.
- 14. Steps adopted and maintained to ensure aSteps adopted and maintained to ensure a long term relationshiplong term relationship HDFC Bank Uses CRM to achieve itsHDFC Bank Uses CRM to achieve its ““One BankOne Bank”” Vision Boosting Profit and Customer SatisfactionVision Boosting Profit and Customer Satisfaction Manage end-to-end sales process across departments forManage end-to-end sales process across departments for all products on a single platform.all products on a single platform. Use CRM to enhance cross sell, up-sell capabilitiesUse CRM to enhance cross sell, up-sell capabilities across all customer touch points.across all customer touch points.
- 15. As one of the top IT spenders, HDFC Bank has deepAs one of the top IT spenders, HDFC Bank has deep relationships with all key technology partners.relationships with all key technology partners. Customers are made aware about their loan transactionCustomers are made aware about their loan transaction status through SMS, Email etc.status through SMS, Email etc. Advance intimation is sent before the post datedAdvance intimation is sent before the post dated cheques are banked.cheques are banked. Enable service and action guarantee across channels.Enable service and action guarantee across channels. Customers have access to multiple channels (like callCustomers have access to multiple channels (like call centre, internet banking, email, phone banking, branchcentre, internet banking, email, phone banking, branch visits etc.) for their service requirements.visits etc.) for their service requirements.
- 16. Thank you