A few Indian Banks have embarked on a modular approach to tap the extraordinary market of both banked and largely unbanked population in India. At the same time, these banks are slipping on “trustworthiness”, “brand image” and are well aware of the growing “customer dissatisfaction” towards their services. I have had my own share of experiences that, in comparison to my experiences in banks in other geographies, is a grim reminder of the milestones far ahead.
Digital Credit Union (DCU), USA
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DCU, an internet only bank, is the only bank with which I have some very pleasant memories of banking. It has a modular approach and perhaps the best bank for small-time customers that are ignored by big banks.
• Modular approach that encourages modularity and commonality
• Optimized System: Very consistent service across phone and internet.
• Human interaction is professional, empathetic and customer-friendly.
The Royal Bank of Canada (RBC), Canada
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Most of the interaction was over the phone except for a couple of meetings in person. Overall, it was a very painless experience as appointments were on time, tasks executed as scheduled by the bank. The entire lifecycle was very well streamlined and, perhaps, it is an excellent example of a system orchestrated by straight-through processes.
• Modular approach that encourages modularity and commonality
• Optimized system: Experience of a consistent service across different channels.
• Human interaction is professional, empathetic and customer-friendly.
ICICI Bank, Canada
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This was a very intriguing experience on both positive and negative notes. On a positive note, the loan process was complete without even a single meeting with a human. That was fantastic!! On a negative note, the communication bottlenecks, in terms of improper acknowledgements and inaccurate information, almost nullified the positive experience.
• Modular approach that encourages modularity and commonality
• Not-so-optimized system: Experience is inconsistent across different channels. Inadequate training of staff is a major factor.
• Human interaction is fairly professional, hardly empathetic and relatively better in customer service.
ICICI Bank, India
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ICICI Bank is one of the very few banks that demonstrate that they do attempt to improve their service. However, whenever I enter any ICICI bank I am wary of people that aggressively sell various products like personal loans, credit cards, insurance etc.,. Too many customers, enticed by misleading offers, have ensured a fairly large customer base and, consequently, the IT platform and the environment is unable to support the customer base. “Customer churn” is obvious and is definitely a threat that needs to be addressed pro-actively.
• Modular approach that encourages modularity and commonality
• Not-so-optimized system: Experience is inconsistent across different channels. Inadequate training of staff is a major factor.
• Human interaction is relatively better. A lot more improvement is required to sustain the growth going forward.
State Bank of India, India
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Describing the experience as “Stone Age” is perhaps an overstatement. However, the customer service was dismal right from the beginning. One would hardly have an opportunity to feel like a customer because one is not treated like a customer.
• “Silos” is the name of the game.
• The idea of “Optimization” is farfetched.
• Human interaction is pathetic. An employee definitely feels like a customer.
To be fair, ICICI Bank is leading the banking industry, in India, in terms of modularization, customer service and globalization. While we pat ourselves on our back for our achievements in the banking industry, we need to set global benchmarks. ICICI bank, India’s largest commercial bank with a market capitalization of $25 billion, is only one tenth the size of Citibank. China has five banks in the top 50 global list while India has none.
Indian banks have a great opportunity to grow where ninety percent of the population uses no bank to open a bank account. The advancement in mobile banking promises a revolutionary way of banking with the 270 million odd mobile subscribers and an innovative channel to reach the unbanked population.
The bank with a SOA based platform that can help sustain the balance between modular banking and customer service has a great potential to be a market leader.
Tuesday, August 26, 2008
Tuesday, August 19, 2008
We bring it on ourselves....
I was window-shopping with my wife in T-Nagar (most crowded place in Chennai). Surprisingly, it was a very pleasant experience and I wanted to stay in T-nagar for a long time. It was very crowded, but it was very organized. The vehicles yielded to pedestrians that were waiting at a cross-path junction. The pedestrians crossed the road on the designated cross-path. The best part was that there was not even in a single vehicle honking!! No dust!! Less pollution!! Very hot though. I see people taking the time to walk to a garbage dump to dispose a small piece of chocolate paper. No spitting!! I watch people smiling and exchanging pleasantries. It was a beautiful day. My wife and I spotted our favorite food-joint and seated ourselves in a corner table. As I was excitedly thinking of my favorite “chilli porata” that I could order, my son performed a “kung fu” stunt and slammed on my face. I woke up from my nap. The physical impact of “slamming” was so much so that I could barely recall most of the incidents in my fabulous dream.
I know. Wouldn’t that be great? The everyday challenges that we go through just to co-exist in the world’s second most populous country makes us tired, unpleasant and unhealthy. The common reasons that we give: the government, the beggars, the cyclists, the auto, the illiterate, the laborers etc. I hear all the time that it is due to lack of education. I think it is more than education. I see educated people (that I know) throwing garbage from their Skodas and Accords. It is the attitude that matters.
There are a plethora of problems in India that are very complex and will take several decades or perhaps centuries to overcome. However, there are some simple behavioral changes, at least among the so called “educated” circles, can bring a world of difference. For starters, it is to consciously litter at designated places. It is not uncommon to see people throw garbage from the tenth floor of their posh apartments. What a disgrace?!
I am really proud of my neighbor who had invited the garbage disposal company to our apartment to discuss recycling options. Thanks to this good Samaritan, our entire apartment complex, uses the recycling bin.
If we could only reflect on the disregard for anything that we demonstrate in our daily grind, a major part of our discomfort and annoyance can be avoided. It is not the system that is to be blamed for all problems. A good system is not a panacea. There are many avenues to avoid problems that we bring it on ourselves.
I know. Wouldn’t that be great? The everyday challenges that we go through just to co-exist in the world’s second most populous country makes us tired, unpleasant and unhealthy. The common reasons that we give: the government, the beggars, the cyclists, the auto, the illiterate, the laborers etc. I hear all the time that it is due to lack of education. I think it is more than education. I see educated people (that I know) throwing garbage from their Skodas and Accords. It is the attitude that matters.
There are a plethora of problems in India that are very complex and will take several decades or perhaps centuries to overcome. However, there are some simple behavioral changes, at least among the so called “educated” circles, can bring a world of difference. For starters, it is to consciously litter at designated places. It is not uncommon to see people throw garbage from the tenth floor of their posh apartments. What a disgrace?!
I am really proud of my neighbor who had invited the garbage disposal company to our apartment to discuss recycling options. Thanks to this good Samaritan, our entire apartment complex, uses the recycling bin.
If we could only reflect on the disregard for anything that we demonstrate in our daily grind, a major part of our discomfort and annoyance can be avoided. It is not the system that is to be blamed for all problems. A good system is not a panacea. There are many avenues to avoid problems that we bring it on ourselves.
Monday, August 18, 2008
We regret that your Card has been rejected.
Unsolicited calls from credit card companies have become more of an annoyance that sometimes even infuriates customers, especially in India, as telecom regulations barely protect the consumers. It is exacerbated by unsolicited calls to customers for whom the same bank had rejected, a week back, the application for a credit card. As the customer furiously confronts the call-rep, the call-rep unabashedly says, “Sir, I am not calling from HDFC. I am from a different company. I am only selling HDFC cards.”
Am I missing something?!!!
Banks, in order to market their products, have adapted their business models to collaborate with third-party vendors/companies. The bank’s IT infrastructure does not support a platform that is easy to integrate among internal systems, let alone the external systems.
There are two levels of bottlenecks: internal and external.
Internally, the systems operate in silos which are a perfect recipe for a 0` customer view. Let alone the third-party vendor, even the bank’s internal systems will not be able to provide a 360` degree view of the customer.
Externally, if the IT infrastructure does not support a system to provide a 360` view of the customer, the business model fails. Easy and effective integration with third-party systems should be a precedent to collaboration with third-party vendors.
Banks like ICICI and HDFC have come a long way in evolving their IT infrastructure that is inclined towards a modular approach. However, it is not uncommon for customers to experience inconsistent service across different channels. The reason is that these systems are not optimized enough to provide a consistent service to the customers.
Banks, with a 360` view of the customer, not only have a great potential to grow but also have an opportunity to reduce cost by avoiding unnecessary processing of loans, cards etc.
Business Intelligence that is based on SOA and a well-integrated system is the only hope for banks to improve customer service with higher cross-sell rates.
Am I missing something?!!!
Banks, in order to market their products, have adapted their business models to collaborate with third-party vendors/companies. The bank’s IT infrastructure does not support a platform that is easy to integrate among internal systems, let alone the external systems.
There are two levels of bottlenecks: internal and external.
Internally, the systems operate in silos which are a perfect recipe for a 0` customer view. Let alone the third-party vendor, even the bank’s internal systems will not be able to provide a 360` degree view of the customer.
Externally, if the IT infrastructure does not support a system to provide a 360` view of the customer, the business model fails. Easy and effective integration with third-party systems should be a precedent to collaboration with third-party vendors.
Banks like ICICI and HDFC have come a long way in evolving their IT infrastructure that is inclined towards a modular approach. However, it is not uncommon for customers to experience inconsistent service across different channels. The reason is that these systems are not optimized enough to provide a consistent service to the customers.
Banks, with a 360` view of the customer, not only have a great potential to grow but also have an opportunity to reduce cost by avoiding unnecessary processing of loans, cards etc.
Business Intelligence that is based on SOA and a well-integrated system is the only hope for banks to improve customer service with higher cross-sell rates.
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