World class practices at banks
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This document provides an overview of world-class customer service practices at banks. It discusses the concept of world-class service and how it can be defined and measured. It emphasizes putting customer-focused thinking at the center of everything and providing a consistently outstanding customer experience. The document then provides examples of innovative customer service practices at various international banks. It also summarizes information about two major Indian banks - ICICI Bank and Bank of Baroda - including their history, products/services, networks, and initiatives to improve customer experience.
World class practices at banks
- 1. World Class Practices at Banks Presented by Akshay Jain (2013004) Abhishek Jain (2013002) 1
- 2. World-class service: Definition, promotion and measurement • Concept of World-Class Service (WCS) has been discussed in all aspects of business since the mid-1980s • Yet there seems no real consensus on what it actually means. • Some claim “world-class service organizations 'wow' their customers by providing a consistently outstanding customer experience in all channels”. 2
- 3. Customer Service • It separates good companies from the best ones. And in times of turbo-speed, full transparency, and highly demanding customers it´s more important than ever! • If you provide great customer service, you´ll receive great rewards in the form of loyal customers who will even bring their friends with them. • Or as expressed by Doug Warner from the opposite perspective: "In the world of Internet Customer Service, it´s important to remember your competitor is only one mouse click away.” 3
- 4. How to create and maintain an exceptional customer service culture • Offer a Good and Reliable Product/Service • Put Customer-Focused Thinking at the Centre of Everything • Worship Your Customer • Top Management Commitment and Engagement • Act As Quickly And As Reliable As Possible • Use Leading Technology • Leverage Excellent Customer Service 4
- 5. INTRODUCTION OF BANKING Definition Of Bank: • Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits of money from the public, repayable on demand or otherwise and withdraw by cheque, draft or otherwise.“ -Banking Companies (Regulation) Act,1949 5
- 6. HISTORY OF BANKS IN INDIA • Banking in India originated in the last decades of the 18th century • The first banks were THE GENERAL BANK OF INDIA, which started in 1786 • The oldest bank in existence in India is the STATE BANK OF INDIA, which originated as the BANK OF CALCUTTA in June 1806 • The first fully Indian owned bank was the ALLAHABAD BANK, established in 1865 • The banking industry has grown at a compounded annual rate of over 51 per cent since April 2001 • Industry life cycle – Growing stage 6
- 7. Evolution of Banking Pre-Independence Post-Independence Owdh Commercial Bank(1881) Punjab National Bank (1895) The Bank of India (1906), Bank of Baroda Ltd (1908), Central Bank of India Ltd (1911) Reserve Bank of India (1935) Nationalization of Banks Imperial Bank of India brought under public ownership (1955) Formation of State Bank Group (1955-59) Emergence of New Private Sector Banks (1993) 7
- 8. Banks Market Structure In India 77% 17% 6% Public Banks Private Banks Foreign Banks 8
- 9. BANKING STRUCTURE IN INDIA • COMMERCIAL BANKS: Scheduled Commercial Banks Non- scheduled Banks • CO-OPERATIVE BANKS: Short term lending oriented Co-operative Banks Long term lending oriented Co-operative Banks • INDIGENOUS BANKERS: Those whose main business is banking Those who combine their banking business with trading activities and Those who act as commission agents. (For them the banking business is a side business). 9
- 10. RECENT TRENDS IN BANKING • Electronic Payment Services – E- Cheques • Real Time Gross Settlement (RTGS) • Electronic Funds Transfer (EFT) • Electronic Clearing Service (ECS) • Automatic Teller Machine (ATM) • Point of Sale Terminal • Tele Banking 10
- 11. MAJOR CHALLENGES & OPPORTUNITIES TO INDIAN BANKS Banking industry’s opportunities includes: • A growing economy, • Banking deregulation, • Increased client borrowing, • An increase in the number of banks, • An increase in the money supply, • Low government-set credit rates and • Larger customer checking account balances. Major challenges faced by banks: • High transaction costs • IT revolution • Timely technological up gradation • Intense Competition • Privacy and Safety • Global banking • Financial inclusion 11
- 12. INNOVATIVE BANKING CUSTOMER SERVICE INTERNATIONALLY • BayBanks of Massachusetts is using the mail-order company.A major result of this functional benchmarking was the establishment of a 24-hour customer service center that can not only respond to queries and complaints but also promote and sell the bank's products and services. • Seafirst Bank in Seattle redefined itself from a "retail bank" to a "retailer" and has benchmarked with retailers known for world class customer service such as fast-food restaurant chains. • Citicorp looks as itself as less of a bank and more of a "factory". This factory processes raw materials in the form of documents, application forms, and customer requests and the final product is a satisfied customer. Desks, departments, offices, and other work stations serve as the machines and equipment of this document factory. 12
- 13. Many more Examples • Banco Frances has established an information center or "encyclopaedia" in the waiting lounge. • ASB Bank Limited has established a phone center to accept, process, and resolve customer complaints. • Bank Pertanian Malaysia (BPM) has extended the concept of "mobile banking." • The Korean Technology Banking Corporation (KTB) is setting up a Technology Financing Information Centre to serve the various needs of its clients, most of which are setting up joint-ventures overseas. 13
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- 15. ABOUT ICICI BANK • Industrial Credit and Investment Corporation of India • Founded in 1955 by as a joint-venture of the World Bank • ICICI Bank launched internet banking operations in 1998. • In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange. • ICICI Bank is India's second-largest bank. 15
- 16. PROFILE OF ICICI BANK • Type : Public • Founded : 1995 • Headquarter: Mumbai, Maharashtra, India • Industry : Banking, Financial service • Net revenue: US$ 13.812 billion (2011) • Net Profit : US$ 1.366 billion (2011) • Employees : 79,978 (2011 • Website : www.icicibank.com 16
- 17. BOARD OF DIRECTORS • Chairmen : K.V.Kamath • CEO : Chanda Kochhar • Executive Director : N. S. Kannan • Vice president : Mr. Vishvesh G. Bhaga • General manager : Ms. Shilpa Kumar 17
- 18. NETWORK OF ICICI • It has 8003 ATMs in the country • The Bank has a network of 2752 branches in India. • It has a presence in 19 countries , including India. • Traded as BSE, NSE, NYSE and BSE SENSEX 18
- 19. Products • Commercial Banking • Project Finance • Global Markets • Investment Banking • Financial Institutions Capital Markets and Custodial Services • Technology Finance 19
- 20. Innovation • Internet Banking • Mobile Banking – iMobile – SMS Banking – m.icicibank.com – Mobile Money – Call to Pay – IMPS • Pockets by ICICI Bank – QUICK PAY – SEND MONEY TO FRIENDS – PREPAID MOBILE RECHARGE – BOOK MOVIE TICKETS FOR YOUR WHOLE GANG – TRANSACT, KEEP TRACK OF YOUR ACCOUNT AND DO A LOT MORE! – BEING SOCIAL IS MORE FUN NOW THAT WE HAVE POCKETS BY ICICI BANK! 20
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- 22. Bank Of Baroda • Third largest Public Sector bank in India, • After State Bank of India and Punjab National Bank • Founded in 1908 • Headquartered at Baroda • It has total of 3159 branches including 70 overseas • Has a total staff of 38063 • CMD of BOB is M.D.Mallaya 22
- 23. Mission Statement • To be a top ranking National Bank of International Standards committed to augmenting stake holders' value through concern, care and competence. Our Logo • Our new logo is a unique representation of a universal symbol. It comprises dual ‘B’ letterforms that hold the rays of the rising sun. We call this the Baroda Sun. 23
- 24. History of BOB • 1908: Maharaja Sayajirao Gaekwad III set up Bank of Baroda (BOB). • 1910: established its first branch in Ahmedabad • 1953: established a branch in Mombasa and another in Kampala • 1959: acquired Hind Bank. • 1961: merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra • 1963: acquired Surat Banking Corporation in Surat, Gujarat. • 1964: acquired two banks, Umbergaon People’s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state. • 1969: The Government of India nationalized 14 top banks, including BOB 24
- 25. History contd. • 1975: BOB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh • 1998:BOB also acquired Punjab Cooperative Bank in a rescue. • 1999: BOB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. • 2007: In its centenary year, BOB's total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people. • 2009: Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand 25
- 26. Services • Apart from the Loans, Deposits, Credit and Debit Cards, Bank of Baroda offers other services to make financial dealings easy and convenient. • Demat • Baroda health • Remittances(baroda money express) • Collection services • ECS(electronic clearing services) • Government business(PPF , tax collection and savings bonds) 26
- 27. The Initiative • Bank is amongst first in the industry to complete an all-inclusive rebranding exercise wherein various novel customer centric initiatives were undertaken along with the change of logo. • The initiatives include setting up of specialized NRI Branches, Gen-Next Branches and Retail Loan Factories/ SME Loan Factories with an assembly line approach of processing loans for speedy disbursal of loans. 27
- 28. Business Process Reengineering (BPR) • Bank had initiated a major Business Process Reengineering to give a big boost to sales growth by enhancing customer satisfaction and by making possible alternate channel migration thus reinventing itself to challenges of the 21st century. • Bank’s BPR project known as “Project- Navnirmaan” has altogether 18 activities covering both the BPR and organisational restructuring, aimed at transforming the Bank’s branches into modern “sales & service” outlets. 28
- 29. The most important initiatives planned under this project include – • Conversion of all metro and urban branches into modern centres known as Baroda Next branches; • Creation of Automated and Leaner Back Offices like City Back Office (for automated cheque processing etc.), • Regional Back Office (for faster account opening etc.), • Establishment of two Call Centres, • Creation of Academy of Excellence, • Introduction of Frontline Automation at select branches for customer convenience and • Organizational Restructuring. 29
- 30. People Initiatives • Bank is endowed with a competent and motivated employee base • Strategic HR interventions gave the Bank competitive advantage. • Bank launched a comprehensive leadership development program ‘Project UDAAN’ during 2010-11 with the prime objective of creating leaders for the future. 30
- 31. New Technology Platform • Bank has made substantial progress in its end-to-end business and IT strategy project covering the Bank’s domestic, overseas and subsidiary operations. • Bank has been providing to its customers Internet Banking • Bank has a wide network of ATMs across the country and has also launched mobile ATMs in select cities. • Bank has implemented the Global Treasury Solution in its key territories like UK, UAE, Bahamas, Bahrain, Hong Kong, Singapore and Belgium. • Various technological initiatives in overseas operations such as implementation of Centralized SWIFT activity 31
- 32. The Future • Bank has achieved substantial progress in technology and is continuously integrating multiple platforms of technology to generate synergies. • Bank continuously attempts to adapt to the dynamic economic environment while engaging in long term relationships to provide superior customer service. 32
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- 34. History • 1812 - founded as City Bank of New York. • 1894 - became the largest bank in the United States. • 1902 - began expanding internationally and became the first major U.S. bank to establish a foreign department. • 1930 - became the largest bank in the world with 100 branches in 23 countries outside the United States. • 1976 - changed its name to Citibank. • 1981 - purchased Diners Club. • 1994 - opening of the first fully foreign owned commercial bank in Russia • 1995 - opening of the first full service branch in China • 1998 - Citibank was merged into Citigroup 34
- 35. Citibank • Citibank is the consumer and corporate banking division of leading financial services company Citigroup. • The company has operations in around 1,700 locations, in more than 140 countries worldwide. • Citibank offers the following products and services: – Banking services – Credit cards – Mortgages, Loans – Investments – Insurance – Small business services – Corporate/Institutional services – Asset management – Government services – Private banking 35
- 36. Leadership through Innovation • 1985: First bank to launch a dedicated platform focused on serving the unique banking and wealth management needs of the Non Resident Indian. • 1986: Pioneered Cash Management. • 1993/1998/2001: First to OFFER 24-hour Phone banking/Internet banking/SMS alerts. • 2009: First to bring to India next-generation contactless Credit Card payments based on Near Field Communications technology with Citi Tap and Pay. • 2010: First brokerage house to launch Financial Information Exchange (FIX) protocol, the industry-driven international messaging standard, adopted by NSE. 36
- 37. Leadership through Innovation • 2012: First to roll out SMS-to-Call and Click-to-Call; instantly connecting customers to Citibank officers. • 2012: Launch of India's first airline agnostic card through Citi Premier Miles. • 2012: First Smart Banking Branch launch in India. • 2012: Launch of market-first mobile-banking receivables solution Citi Mobile Collect. • 2013: Launch of the First Fully Integrated and Certified Mobile Payment Solution. • 2013: Instant Credit Card issuance at Mumbai's first mall-based smart-banking branch at Palladium, Lower Parel, Mumbai. 37
- 38. Learning • The use of best practices, when incorporated within all areas of an organisation, including its stakeholder relationships, can lead to an organisation attaining world class performance. • The fastest and easiest way to improve is to compare and learn from other successful organisations (for example, through using a benchmarking approach). • The potential improvements to be gained from adapting and incorporating proven high performance practices in your organisation can be anything from small continuous steps of improvement, to radical breakthroughs that result in significant positive change. 38
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