Crm Practices at Icici Bank

CRM Practices at : ICICI Bank

Submitted to-Mr. Thirumal Reddy(Professor Marketing)

Submitted by- Priyank Kumar Singh

TPS A – 20021

Introduction

ICICI Bank Limited (NSE: ICICIBANK, BSE: 532174, NYSE: IBN) is an Indian diversified financial services company headquartered in Mumbai, Maharashtra. It is the second largest bank in India by assets and third largest by market capitalization. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank has a network of 2,883 branches and 10021 ATM's in India, and has a presence in 19 countries, including India.

The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has established branches in Belgium and Germany.

ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and Canara Bank.

Corporate history

ICICI Bank was established in 1994 by the Industrial Credit and Investment Corporation of

India, an Indian financial institution, as a wholly owned subsidiary. The parent company was

formed in 1955 as a joint-venture of the World Bank, India's public-sector banks and public-

sector insurance companies to provide project financing to Indian industry. The bank was

initially known as the Industrial Credit and Investment Corporation of India Bank, before it

changed its name to the abbreviated ICICI Bank. The parent company was later merged into

ICICI Bank. ICICI Bank launched internet banking operations in 1998. ICICI's shareholding in

ICICI Bank was reduced to 46 percent, through a public offering of shares in India in 1998,

followed by an equity offering in the form of American Depositary Receipts on the NYSE in

2000. ICICI Bank acquired the Bank of Madura Limited in an all-stock deal in 2001, and sold

additional stakes to institutional investors during 2001-02.

In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group, offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its five million American depository shares issue generating a demand book 13 times the offer size.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.

In 2008, following the 2008 financial crisis, customers rushed to ATM's and branches in some locations due to rumors of adverse financial position of ICICI Bank. The Reserve Bank of India issued a clarification on the financial strength of ICICI Bank to dispel the rumors.

Subsidiaries

Domestic

ICICI Lombard

ICICI Prudential Life Insurance Company Limited

ICICI Securities Limited

ICICI Prudential Asset Management Company Limited

ICICI Venture

ICICI Home Finance

ICICI direct.com

ICICI fund

International

ICICI Bank UK PLC

ICICI Bank Canada

ICICI Bank Eurasia LLC

Creation of market infrastructure in India

ICICI Bank has contributed to set up different institutions which include the following:

National Stock Exchange

The National Stock Exchange was promoted by India’s leading financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a

nationwide trading facility for equities, debt instruments and hybrids, by ensuring equal access to investors all over the country through an appropriate communication network.

Credit Rating Information Services of India Limited

In 1987, ICICI Ltd. along with UTI set up CRISIL as India's first professional credit rating agency. CRISIL offers a comprehensive range of integrated products and service offerings which include credit ratings, capital market information, industry analysis and detailed reports.

National Commodities and Derivatives Exchange Limited

NCDEX is a professionally managed online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank.

Financial Innovation Network and Operations Pvt Ltd.

ICICI Bank has facilitated setting up of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide technology solutions and services to reach the underserved and underbanked population of the country. Using cutting edge technologies like smart cards, biometrics and a basket of support services, FINO enables financial institutions to conceptualise, develop and operationalise projects to support sector initiatives in microfinance and livelihoods.

Entrepreneurship Development Institute of India

Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of the Govt. of Gujarat as a national resource organisation committed to entrepreneurship development, education, training and research.

North Eastern Development Finance Corporation

North Eastern Development Finance Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agree-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India. NEDFI is the premier financial and development institution for the North East region.

Asset Reconstruction Company India Limited

Following the enactment of the Securitisation Act in 2002, ICICI Bank together with other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative environment for the resolution of distressed debt in India. ARCIL was established to acquire non performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help in the maximisation of recovery. This would relieve institutions and banks from the burden of pursuing NPAs, and allow them to focus on core banking activities.

Credit Information Bureau of India Limited

ICICI Bank has also helped in setting up Credit Information Bureau of India Limited (CIBIL), India’s first national credit bureau in 2000. CIBIL provides a repository of information (which contains the credit history of commercial and consumer borrowers) to its members in the form of

credit information reports. The members of CIBIL include banks, financial institutions, state financial corporations, non-banking financial companies, housing finance companies and credit card companies.

ACKNOWLEDGEMENT

Introduction to CRM at ICICI Bank

CRM is an acronym for ‘Customer Relationship Management’. It’s a set of strategies, processes,metrics, organizational culture and technology solutions that enhance an organization's ability tosee the differences in its present & prospective customers, track new opportunities to better servecustomers and act, instantly and profitably, on those differences and opportunities. RecentlyCRM has taken a center stage in the business world with businesses concentrating on savingmoney and increasing profits by redefining internal processes and procedures. It costs acompany dramatically less to retain and grow an existing client, than it does to court new ones.The aim of CRM is to optimize the use of technology and human resources.CRM services consist of the following major segments: Consulting services Implementation services CRM Outsourcing services Training servicesCRM AT ICICI BANKEmphasizing on the importance of CRM one of the ICICI employees said, “With the overallimprovement in the ETL1 process made possible by PowerCenter, we benefited from greater dataimmediacy for business users and more reliable information, which resulted in quicker analysisand timely reporting.” - Gurnam Saini, Assistant General Manager, ICICI Bank

A view of CRM Banking solutions

A view of direct banking solutions

CRM at ICICI Bank involves increased communication between the bank and its present and prospective customers. Its philosophy focuses on each and every customer’s satisfaction. CRM facilitated coordination of multiple business functions & multiple channel of communication with the customers to carry out customer management more efficiently. It also automated the process flow tracking in the product sales process and helped generate customized reports and promote cross-selling. The typical components of a CRM strategy at ICICI are as follows:

Understand and differentiate: Understanding customers is important in order to develop a sound relationship with them. Customer profiling is done in order to understand demographics, purchase pattern and channel preference. CRM also helped Extraction, Transformation & Loading . ICICI in valuation of its customers to understand customer profitability and Customer Life Time Value (CLV).

Develop and customize: - In a customer centric business environment, the products andprocesses have to be according to customers’ needs and preferences. ICICI has always focused on developing channels of service delivery according to customers’ need and service expectation.

Interact and Deliver: To foster a strong customer relationship ICICI ensured that allareas of the bank have easy access to relevant, actionable customer information and employees should be trained on how to use customer information to tailor interactions based on both customer needs and potential customer value.

Accquire and Retain: CRM helped ICICI to figure out valuable customers and made it easy to formulate retention strategies for them. It also helped it cope up with the change in customer’s life cycle and offer services accordingly.IMPLEMENTING CRM AT ICICI BANK

Implimenting the CRM at ICICI Bank

The key to implementing CRM was in understanding organization and customers in a better way. There are five interrelated areas that were taken care of before implementing CRM:- Business Focus- Organizational Structure- Business Metrics- Marketing Focus and Technology

Business Focus: There are various components of CRM like customer information, sales, marketing trends and marketing efficacy that acted in tandem to improve relationship betweenICICI and its consumers. ICICI captured customer data and analyzed them while dealing withcustomers at these very touch points. A CRM solution from Siebel was implemented for the automation of customer handling in all key retail products of the Group. The solution allows customer service agents to track all customer complaints and requests. It also allows target setting and centralized tracking of turnaround times for request fulfillment. The solution went live in phases during fiscal 2002. The Bank has also undertaken a retail data warehouse initiative to achieve customer integration at the back-office. This central view of the total customer relationship is being used extensively for identifying opportunities to cross-sell new products andservices to the existing customer base.

Technology Focus: ICICI Bank continues to leverage ICT2 as a strategic tool for its businessoperations to gain competitive advantage. Its technology strategy emphasizes enhanced level of customer services through 24x7 availability, multi-channel banking and straight through processing, and cost efficiency through optimal use of electronic channels, wider and focused market reach and opportunities for cross-selling. The Technology Management Group (TMG) is the focal point for the ICICI Group’s technology strategy and Group-wide technology initiatives. This group reports directly to the Managing Director & CEO.

A key to ICICI’s success has been its ability to harness business information to CRM initiatives that have fueled growth and helped attract more than 30 million customers. The foundation for ICICI Bank’s wide-ranging CRM programs is a Sybase IQ-based data warehouse. Developers had used a combination of PL/SQL and BTEQ scripting, a proprietary technology specific to the data warehouse, for data extraction, transformation, and loading (ETL). With its growing customer base, IT administrators recognized that the bank needed a more powerful, sophisticateddata integration system to help ensure the warehouse lived up to its potential as an analytic CRM engine that delivered tangible bottom-line results.

To step up to the next level of data integration, ICICI Bank officials agreed with a recommendation from Teradata’s professional services division, which provided systems integration support for the data warehouse, to implement the Informatica PowerCenter enterprise data integration platform. (The Bank initially used Teradata as its data warehouse platform and migrated to Sybase IQ a year ago.) ICICI Bank deployed PowerCenter in 2003 as it embarked on the next phase of its warehouse, which would add data from five new sources, in addition to the initial three sources of retail banking, credit cards, and securities information. The next step in the CRM implementation process was gap analysis which essentially is assessing different loopholes in:- Marketing, sales and service practices- Collection, capture, processing and deployment of customer information- Distribution and operations effectiveness at customer touch points.

BENCHMARKS/RESULTS

Time-Norms for Various Banking Transactions at ICICI Bank

1- Cash payment Up to 15 minutes2 -Receipt of cash Up to 15 minutes3 -For issuance of demand draft Up to 10 minutes4 -Payment of demand drafts Up to15 minutes5 -Payment of fixed deposit receipts 20 to 25 minutes6 -Opening of an account% 25 to 30 minutes7 -Statement of accounts (request for duplicate) Within 3 working days8-Collection of cheques -:Local Normally within 4 days -:Outstation Normally within 21 days

10 CONCLUSIONS

Briefing and Conclusion of CRM Process at ICICI Bank INTERVIEW WITH AN EMPLOYEESuvobrata: Good evening Ms Priyanka Devedas.Ms Priyanka: Good evening Suvobrata.Suvobrata: Is it the right time to talk? We need your help regarding CRM Processes at ICICI.Ms Priyanka: Sure Suvobrata, Tell me how can I help you?Suvobrata: Can you just brief us regarding CRM process of ICICI bank?Ms Priyanka: CRM at ICICI is an extensive process which involves communication with existing customers and prospective customers. There are multiple channels through which we communicate with customers to carry out customer management process. We use different softwares to carry out these process.Suvobrata: We have also heard that ICICI Bank is the number one bank in India in customer relationship management. What is ICICI doing different than other banks?Ms Priyanka: We use latest software to understand our customers, their demographics and needs. We try to provide them customized products as per their requirements. You must be aware of different credit card schemes provided by us to customers.Suvobrata: CRM is the activity done at various levels of the organization, how does ICICI implement it?Ms Priyanka: Implementation part is done by Top management and I am not aware of the wholeprocess. I can just tell you that “GAP analysis “is done before we embark on CRM implementation.Suvobrata: Thank you very much Ms Devadas.Ms Priyanka: You’re welcome Suvobrata. Feel free to contact if you need further assistance. Have a nice day.

Thus, we see that a focused and customer centric approach helped ICICI Bank become 2 bank in India (till recently, as PNB has taken over it as the No 2 bank in India now). ICICI has used CRM not only as a tool but also as a strategy to gain competitive advantage over other new Generation private banks. It has invested a lot in ICT and spared no pains in giving best to the customers. Its multi-pronged approach towards managing customer relationship is paying dividends constantly and as a result we see millions of happy satisfied customers determined to make it one of the most successful banks in India.11