Trends in Banking Part I
HDFC ‘s M-banking Traffic
HDFC Bank has seen more than “9 Fold growth” in Mobile Banking Transaction in Jan
2015 compared to Jan 2014
HDFC Bank recorded 1.49 Million
Transactions in Jan 2015 compared to 0.29
Million in Jan 2014
HDFC
The Bank is also launching a Mobile Banking Application that will be available on the “Apple Watch” to be launched in India in July end of 2015.HDFC is probably the 4th lender in the world to have such an app & the 1st Indian Bank to have it app on the Apple Watch. Currently 10 Txns are allowed on Watch
HDFC
Mobile Banking will overtake Internet Transactions by 2016.As of now, HDFC offers around 80 type of transactions on Mobile Banking platform & 175 on Internet BankingFY 15-63% Txns(Digital)FY 14-55% Txns(Digital)FY 13-44% Txns(Digital
Can
ara Bank
The Bank saw one of the biggest jumps in Mobile Banking Txns compared to Jan 2014.The value of its Mobile Banking Txns rose to Rs.883.47 Crores in Jan 2015 compared to Rs.7 Crores in Jan 2015
HDFC/Canara Bank’s success at Mobile Banking
SBI eyeing Top Spot in Value termsThe country’s largest Bank, State Bank of
India hopes to pip HDFC Bank to become the largest Mobile Banking player in value terms
At present even as SBI has the highest volume of Txns on M-Banking platform but in value
terms SBI remains at the 3rd position
SBI will soon launch ‘Corporate Internet Banking’ on Mobile
Platform & as soon as this happens SBI will catch up the numbers to the
top spot-says “Arundhati Bhattacharya”
According to RBI data;Bank Month Value(Cr)
HDFC April 2015
5,686.5
SBI April 2015
1,710
Total Txn in Mobile Banking sector =Rs.18,869 Crores
At present SBI is getting the retail segment on to the Mobile Platform. The moment
Corporate Internet Banking starts happening on mobile, the number in terms of Txns & Value will go up exponentially
After SBI has tied-up with big e-commerce players such as Amazon, Snapdeal,PayPal,MakeMyTrip,it will
shortly open a separate digital vertical to spur its business through the online
medium
Upto 30% of e-commerce Txns worldwide are now happening on Mobile devices. The degree to which online embrace mobile technology vastly differs across different markets.•Asian Shoppers conduct almost half of their online purchases on mobile devices •Consumers from the USA & other Western Markets use a mobile device in roughly 1 out of 4 online txns
Asians are the ‘Most Avid
Mobile Shoppers’
SBI’s over-the-top Strategy to go Digital
SBI RewardzIndia’s most rewarding enterprise-wide
Loyalty Program
Areas where SBI has targeted for Reward Points
Debit CardsInternet Banking Mobile Banking
Personal Banking
Loans
DEMAT Account
Rural Banking
SME Accounts
Debit Cards
oYou earn 1 Reward Point for every Rs.200 spent with your State Bank Debit Card
o Also, there is a large Max Get More network partner brands where State Bank Rewardz members earn EXTRA Reward Points for swiping their State Bank Debit Cards
DEMAT Accounts
Txn type Reward Points
Opening of Paid Account 125
1ST Trade 125
For every INR 500/- brokerage earned by SSL (points will be calculated in multiples of INR 500/- brokerage earned by SSL)
100
Internet BankingYou earn Reward Points on various Financial and
Non-financial Internet banking transactions on your computer as well as on State Bank anywhere App
Txn type Reward Points
Registration + First Transaction Via State Bank Anywhere App(First transaction within a month from activation date with minimum
transaction value of INR 75/-)
125
Registration + First financial transaction\(First transaction within a month from activation date with minimum
transaction value of INR 75/-)
125
First 15 financial transactions within 6 months of activation 8/txn
All financial transactions post 6 months of activation or completion of 1st 15 transactions, whichever is earlier
3/txn
First 10 Non Financial transactions within 6 months of activation 8/txn
Txn type Reward Points
Registration + First Financial Transaction (Minimum Transaction of INR 75 within 1 month of
registration)
200
Bill payments (SBI Life, SBI Card) 2/Transaction
Other Bills payments 1/Transaction
First third party transfer on NEFT/IMPS (Minimum Transaction of INR 5,000)
30
Subsequent third party transfers on NEFT/IMPS (Up to 10 Transactions; with Minimum Transaction Value INR 1,000)
3/Transaction
5 or more third party transfers on NEFT/IMPS during a quarter (Minimum Transaction of INR 1,000)
20
3 or more third party transfers on NEFT/IMPS during a month (Minimum Transaction of INR 1,000)
15
Mobile Banking
Txn type Reward Points
Savings Account/Salary Account/NRI Account
Online account opening with KYCs & min balance of INR 1,000 160
Account opening with all KYCs & min balance of INR 2,000 (SB and CSP)
100
First transaction through Demat account 100
No cheque book request in a year 20
Loading of Family NRI Card through INB 20/ INR 1,000
Contact details update up to once in a year (SB, CSP and NRI) 20
Pehla Kadam/Pehli Udaan Account opening, with all KYCs & min balance of INR 1000
100
Account opening with INB & MB and with min balance stipulation (INR 1,000 for online account opening and INR 2,000 for account opening through Branch)
100
SI for 12 months in the PPF account (Points will be rewarded after completion of last installment)
100
Personal Banking
Loans(Both Domestic & NRI)
Txn type Reward Points
Auto loan EMI repayment within monthly due date 2/ month/ INR 1,000
Education loan EMI repayment within monthly due date 2/ month/ INR 1,000
Personal loan EMI repayment within monthly due date 2/ month/ INR 1,000
Home Loan Timely repayment of EMI via Standing Instruction from SBI Account (Excluding Staff & Max Gain Accounts)
30
Home Loan Timely repayment of EMI by all other Customers (Excluding Staff & Max Gain)
15
You earn Reward Points on repayment of Home Loan, Auto Loan, Personal Loan and Education loan
Rural Banking
Txn type Reward Points
Applicable to KCC/ACC Accounts
Routing the proceeds of crop to KCC a/c (at least 3 credits in a year. Credit amount should be minimum 10% of outstanding) 150
Activation of State Bank Kisan Card(on RuPay platform) 75
(i) If the KCC/ACC account is renewed within 12 months from the date of disbursement/renewal
350
(ii) If the KCC/ACC account is renewed within 24 months from the date of disbursement/renewal
250
(iii) If the KCC/ACC account is renewed after 24 months from the date of disbursement/renewal
150
No overdue Agri Term Loan accounts within the Financial Year from April to March (Applicable to Agri Term Loans)
250
Get rewarded on Rural Banking Transactions from KCC accounts to Agri
Term Loans
SME Accounts
Txn type Reward Points
SME Current Account with QAB - INR 10,000/- 120
SME Current Account with QAB - INR 20,000/- 150
SME Current Account with QAB - INR 1,00,000/- 750
SME Current Account with QAB - INR 5,00,000/- 3000
Activation of SME Insta Deposit Card 20
Activation of SME Business Debit Card 20
First Transaction through CINB Saral 20
First Transaction on Insta Card or BDC Card 20
Activation of dormant proprietorship current account 20
Riding on the Booming e-
commerce space & increasing adoption of non-cash txns, the combined share of
SBI & its five associate banks in the Debit Card space has touched 25% in
FY 15
E-Commerce/POS txns
Debit Card spends at POS & e-commerce
txns of the State Bank Group crossed Rs.30,000
Crores in FY 15 (increase of 38.8% of
Total debit Card spends)
Promotion of Channels
SBI has been actively promoting Debit Card
usage by running various promotional
& Cashback campaigns.SBI
Rewardz(enterprise Loyalty
Program is an example).In terms of the number of M-Banking txns, SBI continues to be a
market leader with a 46% share
Total Debit Card Issued
State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Travancore
& State Bank of Mysore form the SBI Group. As of March 2015,SBI Group has issued over 20.59
Crore Debit Cards(highest in the country)
SBIAchievements