Blueprint of Banking Sector

7/28/2019 Blueprint of Banking Sector

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Service Blueprint

Banking SectorSubmitted By Group 12:

Anish Shah041

Vinit Gandhi111Dhwani Shah139

Raj Sodha- 151

Bhavik Solani - 152


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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 likecredit card, insurance, mutual funds.

O Services provided are very money oriented hence very

high on involvement.

O

Consistent and reliable services are important to gaintrust from the customers.


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Banking Structure

Reserve Bank of India

Commercial Banks Co-operative Banks Development Banks

Nationalized Private Short-term credit Long-term credit

Agricultural Credit UrbanCredit

EXIM Industrial Agricultural


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Services offered by HDFC

BankO Personal Banking

O Accounts & Deposits

O Loans

O Cards

O Forex

O Insurance

O NRI Banking

O Remittances

O

Investments & insurance pay loan schemesO Wholesale Banking

O Corporate

O SMEs

O Government sector


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SWOT Analysis of HDFC

StrengthsSecond largest privateplayer

Extremely low attrition rate

Good financial advisors

WeaknessWeak presence in ruralareas

Lacks aggressivemarketing

Fluctuating share prices

OpportunitiesGreater scope foracquisitions & strategicalliances

Good opportunities abroadBetter asset qualitymeasures , profits likely toincrease

ThreatsNon banking financialcompanies and new agebanks are increasing

HDFC is not able toexpand its market shareas ICICI imposes majorthreat


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Product Levels

BENEFITWITH RESPECT TO THE BANKING INDUSTRY

1. CORE BENEFITWithdrawal & Deposit of money

2 BASIC PRODUCT

Bank a/c, documents, cheque books, etc

3 EXPECTED PRODUCTTimely service & flexibility of withdrawal & deposit, safety of funds,

etc

4 AUGMENTED PRODUCT

ATMs, e- banking, telebanking,

Home loans, forex, credit cards,

5 POTENTIAL PRODUCTMobile banking


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Service Process Matrix

Service Process Matrix

Source: Schmenner, R.G. (1986), How can service business survive and prosper?, Sloan Management Review, Spring1986, 21 32.

Service Factory Service Shop

Mass Service

Professional Service

Low

High

HighDegree of customisation

De

greeoflaborintensity

BANKINGSECTOR


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Product

O Banking is a very critical sector and the

competition in this sector is very fierce after

liberalization. Banks have to choose onimportant parameters while determining the

product mix.

- Target Customers

- Services to be given- Government control


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Service Flower


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Physical Evidence

Bank Branches ATMs

WebsiteCheque Books,Pass Books etc

Logo

Tagline

Bank Brochure

Statement of accounts

Employees uniform

Relationship managers


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PRICEO The interest rates charged by the different banks.

O While framing a pricing policy different pricing

methods can be used:

1. Value Pricing

2. Cost plus pricing

3.Going rate pricing

4. Competitive based pricing

5. Market oriented approach


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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 analysisof 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 surroundings4. Safety

5. Physical distribution and electronic distribution

6. Location of branch, head office, ATMs


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Channels

O Zero Level

ATMs Customers

Branches Customers

Website Customers

Mobile Customers

O 1 Level

Shopping Places

Card Banking

Customers


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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 Segment4) Institutional Sector

O Internal People include all the employees and vendors.


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PromotionO Personal Selling: The bank marketers get the best

opportunity to tangibilize the product through

personal selling; persuasion is more effective withdirect 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


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Process (Blueprint Components)

O Line of interaction : direct interactions between thecustomer and organization.

O Line of visibility : this line separates all serviceactivities that are visible to the customers from thosethat are not visible.

O Physical evidence : the elements which the customer

actually see or experience when they use a serviceand which contribute to the perceived quality ofservice.


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O Customer actions : includes steps, choices, activitiesand 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.


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Service Blueprints


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Welcome Desk Chairs/Desk Form/BrochureMoney Counting

machine

InquiryInteraction with

the bankerFill forms and

SubmitMakes payment

Guide to NewA/C counter

Give details ofvarious accounts

Enter detailsabout new A/C

Receivespayment andcredit to A/C

Entry intocustomerdatabase

Paymentcredited to

A/C

Line of Visibility

Physical Evidence

Customer Action

Employee Action

Background Activities

Line of Interaction

Creating a new account


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Rack of depositingbank slips

Waiting area of thebank

Deposit Counter

Enter Bank Fill SlipGive slip at depositcounter with cash/

cheque

Receive slip andenter details

Details of cash/ cheque are enteredinto database and money credited

Line of Visibility

Physical Evidence

Customer Action

Employee Action


Line of Interaction

Watchman givesdeposit slip

Depositing Money


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Credit card form waiting area

InquiryFills the formand attaches

docsWait

Receives thecredit card kit

Explain difftypes of credit

cards andbenefits

Check docs andenter in database

Verification ofdocuments

Gives creditcard kit to

customer andexplain details

Entry in thesystem

Issue ofcredit cardsand dispatch

Line of Visibility

Physical Evidence

Customer Action

Employee Action


Line of Interaction

Credit card kit

Issue of credit card


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Loan application Branch Officer Pay book

30min--1hr.

Line of visibility

Deny

1 day 2 days 3 days

Fail point Customer wait Employee decision

=======

========= $ 0 $ ==== =====

ReceivePayment

FinalpaymentDecline Notify

customerIssuecheck

Confirm

Creditcheck

Accept Printpaymentbook

Delinquent Closeaccount

Verify

incomedata

Initialscreening

Verifypayer

Employer Creditbureau Branch

recordsBank

accounts

AccountingData base

records

FW

ww

F

F

F

F

F

F

Bank Lending Process


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Cheque Clearing Process


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Internet Banking


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Describe what services you have

blueprinted and why?O We are making Blueprint for primary Banking

Services.

1. Opening an account

2. Depositing Money3. Withdrawing Money

4. Bank Lending Operation

5. Cheque Clearing Process

6. Internet Banking

As Banking envelopes many services under it, it isdifficult to blueprint every service.


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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 acritical activity from customers side.

Depositing Money: Filling the slip and checking thepassbook becomes critical for depositing.

Issue of Credit Card: Filling forms, signatures,photographs & submitting required documents become acritical activity from customers side

Bank Lending Operations: Apply for loan

Cheque Clearing Process: Provide cheque to the bankteller

Internet Banking: Access bank page & provide logininformation. Process payment.


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Describe key Employee actions & why

they are crucial to success of serviceKey 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 thedatabase 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.


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Describe key elements of the physical

evidence1. Branch

2. Deposit counter

3. Helpdesk4. Credit Card

5. Internet

6. Bank Website


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Service FailuresO Opening an account

1. Was the potential customer correctly guided about the various types of

accounts?

2. Was the personal banker well informed about the account services provided?

3. Were his needs and capabilities correctly gauged?

O Depositing the money

1. Was the depositing process easy?

2. Was the waiting queue very long?

O

Issue of credit card1. Was the customer correctly furnished about the card?

2. Was the experience pleasant?

3. Did the credit card arrive on time?

4. Was the verification procedure explained to the customer?


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Service FailuresO 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 issueraccounts?

O Internet Banking:

O Were the login details valid?


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Uses Of Service Blueprint

O Providing a Platform for Innovation

O Recognizing Roles and Interdependencies

O Facilitating Both Strategic and TacticalInnovations

O Transferring and Storing Innovation Knowledge

O Designing the Moments of Truth

O Clarifying Competitive Positioning

O Understanding the Ideal Service Experience


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Application of Service Blueprint

O Rendering service as promised

O Managing fail points

O Training systems

O Quality controlO Creating realistic customer expectations

O Service system design

O Promotion

O Empowering the human element

O Selection criteriaO Job description


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Thank You

Blueprint of Banking Sector

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