ING Hunt for Lions

2. Case Study on Digital Marketing

3. Executive Summary
Digital Marketing Vs.
Branch Banking
Executive Summary
Customer Insight Road Map Digital Banking Model
The role of branches as the hub of transactions in India’s banking sector is undergoing a silent transformation as more
and more individuals move to the digital medium for services that once could only be provided through branches.
Banks are increasingly viewing branches as a place where they can render services beyond basic banking such as advising
people on their savings or selling them investment products. The change is more visible in private and foreign banks in
India as they push more and more functions online and use branches as a hub for sourcing loans and providing financial
advisory services.
This is an era of Millennials, 72% of the Millennials would like to bank with non-financial Services companies with which
they do business (like Google or Amazon)* compared to 27% for those who are above 55. Understanding the needs of
GenY is a Business Need.
The Financial products of Banks have very low differentiation, rate of Interest and terms and conditions being the only
differentiating factors. Therefore, “Quality of Services” is the only way of capturing higher market share.
Primary research indicates that, People don’t not associate ING Vysya with the word Digital Banking, over banks like
HDFC, ICICI Bank. Increasing visibility and effectively engaging the GenY is important through Digital banking Model.
Understanding the Customer and addressing the major concern over use of Digital Banking such as Security, Ease of use
and Locational Accessibility is important to develop a roadmap for the strategy to leverage Digital Banking Advantage.
Another major weakness is the Lack of Customer Relationship Building through the digital platforms. A Digital Plan
should not Operate in Silos but in tandem with the Brick and Mortar Banking for better and enhanced customer support
and relationship building.
In reality, the major sustainable competitive advantage lie in technology, product experience and organizational culture
among banks.
*Accenture Report, “The Digital Disruption of the Bank”

4. Executive Summary
Digital Marketing Vs.
Branch Banking
Digital Marketing Vs. Branch Banking
Why do customers buy from where they buy?
Digital Banking
• Fast and Secure Processing
• Accessible at Finger tip
• Maximize customer contact capability
• One Stop shop to multiple customer needs
• Easy place to check Balance, Transfer Funds and Pay Bills
and other Facilities like FD/ RD, Mobile Recharge etc
Branch Banking
• NEFT/ RTGS Transactions of Larger amounts for those
who are skeptical for Theft
• Depositing Cash
• Creation of DD
• Basic Formalities like change of Names, address and
other details
• Unavailability of Internet
Customer Insight Road Map Digital Banking Model
“Data from RBI indicates that the
rate at which the urban branches
were increasing is seeing a decline,
while semi-urban and rural
branches have picked up in pace in
the last few years. Digital banking
no doubt has had a role to play in
this,” - Saurabh Tripathi, partner
and director at The Boston
Consulting Group (BCG)

5. Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
SWOT Analysis of Digital Marketing
Strength Weakness
 New Age marketing
 Competitive advantage for economies of scale
 Rich customer resources
 Customer See Same bank through Multiple Touch points –
Threat Opportunity
Omni Channel
 Simplicity and Immediacy at the convenience of the
customer
 Risk of losing customers due to poor online banking
experience
 Increase of cyber crime
 Online banking risks, credit card skimming and data leakage
leading to operational and reputational risk
 Low Internet Penetration
 Poor CRM
 Lack of security
 Tendency to missell due to lack of face-to-face interface
 Low literacy of online financial services
 Greater penetration and improved touch points
 Low cost- Lesser Cost to the Bank per Transaction
 Increased demand for financial products
 Scope for better customer account maintenance and data
analytics

6. Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Primary Research: Introduction to the Respondents
Age of the Respondents
22%
73%
4%
0%
0%
18-24 25-31 32-38 39-45 45+
43%
47%
Occupation of the Respondents
4%
6%
0% 10% 20% 30% 40% 50%
Employed with Government
Services
Self Employeed
others
Employed with a Private Firm
41%
22%
18%
12%
6%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Annual Income of the People
Appreciation of Digital Banking
4%
96%
120%
100%
80%
60%
40%
20%
0%
No Yes
Around 73% of the people are in
the range of 25 to 31 years, which
is the major target generation for
the Digital banking
The Annual Income of the
respondents were appreciably
varying. This was important to
gauge the different needs of
different income range customers
About 47% of the of the
respondents are Employed with
the Private Firms, while 43% are
other like part time or freelancers
or students
The Survey clearly shows the
acceptance and appreciated for
Digital Platforms of Banking. 96%
of them already uses Digital
Platforms
*The entire data report and analysis is attached in Appendix

7. Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Primary Research: Perception of Other Banks for
Digital Banking
The Factor Analysis of the Ranking of the Banks based
on the perception of the Respondents
Rank Bank Name*
1 American Express
2 HDFC Bank
3 Axis Bank
4 ICICI Bank
5 ING Vysya
6 IDBI Bank
7 State Bank of India
The Factor Analysis of the Ranking of the Banks
based on the perception of the Respondents
Understanding the
Perception of the
Respondents
The ranking was based on the
preference of the respondents
, the bank which comes first in
their minds
This means that the visibility
of American Express and HDFC
Bank and ICICI Bank are higher
and they are preferred to the
customers for the digital
banking platforms
Fund Transfer upto 50,000
Fund Transfer for a large
amount like 1,00,000 or
more
Fund Transfer upto few
1000's
Checking the balance
Any other Additional
Features
Movie tickets Booking
Mobile Recharge
Understanding the
usage pattern for the
Digital Banking Usage
The major transactions which
takes place are Fund Transfer
below 50,000 and Checking
the Balance
* These Banks were selected based on the general perception of their visibility in
India

8. Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Primary Research: Respondents Behavior
Major Access Points for Digital
Any other
43%
55%
60%
50%
40%
30%
20%
10%
0%
2%
Mobile App of
the Bank
Social Media
such as
Facebook
banking
Safety of Digital banking
33%
67%
Yes No
Preference for Banking Platform
80%
20%
Digital Banking using Mobile App or Social Media Branch Banking
Important Concern of the Respondents while using Digital
Banking in Descending Order of Preference by Factor Analysis
Transactional Security
Ease of use of the mobile App
Informational Security
Other add on services (like mobile
recharges and movie ticket booking
etc)
Important Disadvantages of going to a Brick and Mortar Bank
(At the Top is the most important Concern) by Factor Analysis
Low ATM Accessibility
Written Forms
Time Consuming
Bank Branch is not nearby
Bank Branch fixed timing
In a Nut Shell:
Thus, While social media is not considered as the major access
point for digital banking (2%), Mobile app of the bank is seen as
a very important tool (55%)
The Most Important Factors for for the users of Digital Banking
is the Transactional Security and Ease of Use of the mobile App
are the major concerns
The major disadvantages for the Brick and Mortar Bank is
perceived to be the Low ATM Accessibility and lower visibility i.e.
Bank Branch not nearby and higher time consumption
These points are kept in mind to create the Digital banking
Model for ING Vysya
*The entire data report and analysis is attached in Appendix

9. Secondary Research
Accenture Digital Disruption
Executive Summary
48% are interested in real time
forward looking spending
analysis
71% considers banking
relationship to be transactional
rather than relationship Driven
27% would consider branchless
digital bank
51% want their banks to
proactively recommend them
products
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Benchmarking: ROE, Deposits and
Advances**
HDFC Bank ICICI Bank Axis Bank
ING Vysya
Bank
Deposits (in Rs. Mn) 1962470 2926136 2526136 413340
Advances (in Rs. Mn) 2397206 2902494 1969660 317720
**data from RBI
25
20
15
10
5
Benchmarking ROE, Net interest Margin, CRAR**
• Lower CRAR of ING Vysya vs other banks
suggests that it is less capable than others
to deal with various types of liabilities and
risks
• Higher Deposits to Advances Ratio of ING
Vysya vs other banks shows the bank hasn’t
got enough customers to lend loans to
20.34
13.1
18.53
14.24
4.28%
2.70% 3.09%
3.02%
16.80%
18.74%
17%
13.24%
0
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
HDFC Bank ICICI Bank Axis Bank ING Vysya Bank
Return On Equity Net Interest Margin CRAR
HDFC Bank
1.5
1
0.5
0
ICICI Bank
Axis Bank
ING Vysya Bank
Deposits/Advances**

10. Understanding the different Behavior Preferences Per
Channel and Creating the Strategies
Focused
• Set Budget Goals
• Apply for Mortgage
• Buy Stocks
• Bill Payments
• Opening RD/FD
accounts etc.
Physical
• Signing for
Mortgage
• Depositing Cash
• Using ATM for cash
withdrawals
• NEFT transfer of
huge Cash amounts
Casual
• See Spending
Patterns
• View Stock
Portfolio
• Balance View
• Fund Transfer upto
50,000
Quick
• View Stock Prices
• Payments
• View Account
balance
•Mobile Recharges
Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model

11. Executive Summary
Bank Social Media Score*
HDFC Bank 5.14
ICICI Bank 4.78
American Express 4.64
State Bank of India 3.64
Kotak Mahindra
3.32
Bank
Yes Bank 3.22
Citi Bank 2.82
Bank of Baroda 2.82
South Indian Bank 2.7
Bank Of India 2.52
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Secondary Research: Building Blocks- Situation In India
* Social Media score is of 2010 at www. ifbimconnect.wordpress.com
Ranking Bank Name Bank Category Daily Online Visitors
1 HDFC Bank New Private 417360
2 ICICI Bank New Private 400266
3 Axis Bank New Private 159840
4 SBI SBI & Associates 132534
Kotak Mahindra
5
Bank
New Private 43956
6 Union Bank of India Nationalised 29748
7 IDBI Bank Other PSU 21756
Oriental Bank of
11
Commerce
Nationalised 15096
13 Syndicate Bank Nationalised 12654
12 PunjabNational Bank Nationalised 12654
14 ING Vysya Bank Private Banks 9324
Based on the above data, In India, the visibility and perception for ING Vysya for Digital Marketing is low

12. Digitalization with a Human Touch - 'Quality Service' the sole
differentiator for acquiring market share
Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
By and large, the products offered by banks across pan India are similar. Products differ from bank to bank in terms of minor variations in interest rates, margins
etc. This being the case, in a technology and product neutral environment, the sole differentiator for acquiring market share is the 'quality service' to
customers. Quality service is generally associated with transparency in terms, quickness in response, courteous behavior, trust and a strong sense of
commitment to serve. The product knowledge is also essential.
Quality can be defined on the basis of service as a function of efficient use of technology, product knowledge in terms of its features (including pricing) and
rendering of personalized service. The lesser the tendency to misssell, the better will be the service. In reality, there are differences in technology, product
experiences, and organizational culture among banks. As banks are moving towards similar technology and products/services, good service becomes the
differentiator in acquiring market share.
Leveraging on
the Customer
data through the
various digital
platforms of the
current
capability
Understand
the
Customer
using Data
Analytics
Branch Banking
and Digital
Banking go hand
in hand; Higher
the accessibility,
higher is the
brand recall
Increase
visibility
Set up two way
communication
channels through
effective use of social
media and increase
touch points like
suggestive products to
the customer based
on his online activities
Security should be
important as it will
build up trust
Effective
CRM

13. Way Forward: Dedicated Team for Digital Banking, Analytics and Social Media
Understanding Customer using Data
Analytics- its an Iterative Process
• Data Analytics:
As it is clearly seen, Digital Banking is
on the rise, analyzing the Customer
Transaction history using Social
Analytical Tools
• Improvisation:
Leveraging the insights from the
customer transactional History to
improve the products and service
offerings
Increase visibility
• Branch Banking:
ING Vysya Bank is a Old Private sector
Bank however, its visibility in Tier I and
III cities is low, For the Indian Market,
a physical Presence is important to
garner trust as in India Word of Mouth
is the best way to market
• Digital Banking:
Enhancing the Social Media Presence
and Improving the Mobile App for ING
Vysya Bank by Engaging the GenY the
next generation of Banking Users
Giving a Human Touch
• Improved CRM:
Eliminating the major weakness of
Digital Banking with providing Quality
Service and Quick Problem Resolution,
detailed information about Theft and
fraud and means to protection and
promote transparency
• Customer Focused Organization
Culture:
Creating a culture where every
employee of ING Vysya is dedicated
and committed to give the best service
to the employees
Creating a dedicated Social Media
Team to give quick Response and never
shy/run away from complains
Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Understand Generation Y: social media is ideal for a better understanding of client behaviour and client interests. The most advanced
banking players in this respect are leveraging these new networks to help develop new applications for their products. Significantly, 70% of
users say they believe recommendations made through social media, whereas only 20% trust conventional advertising

14. Digital Banking 2.0
Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Create your own
distribution vision of the
future
Develop a portfolio of mini-transformations
to deliver
the vision
• The bank needs to select the
most important things it wants
to change so as to translate its
vision into action
• Identify the key priority areas
Lock in an integrated
roadmap and execute
• Maintain and monitor the
portfolio of mini-transformations
• Elaborate a high level business
case for pursuing them and
monitor progress
• Identify the implications for IT
and Governance, and monitor
accordingly

15. Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Digital Banking 2.0: Action Plan for the Future
In India A Bank cannot do away with the Branch Banking, But have to keep a tab on the Digital Space as well
Branches are becoming more sales and advice oriented
Branches: Right size and
boost sales performance
• Light Size Network: Optimize Branch Network by adapting both the Location and Branch formats to customers needs
• Structure better the time spent on sales. Concentrated periods of commercial activity tend to be more effective and efficient than periodic bursts of activity.
• Industrialize The Sales And Support Process: This can be one of the most productive aspects of any branch transformation. Doing so requires choosing a few routines
and processes (activity planning, selection of contacts, standard execution drills, using an activity registry) and aligning each one to a member of the organization so
as to ensure they are performed in a controlled fashion. In combination with the right campaigns this can boost sales by 20%-30%
• Provide branch staff with high quality leads, by using the bank’s own data and combining this with customer insights from additional behavioral data
• Improve performance management: In order to successfully transform a bank’s branch network staff and managers will require strong performance management
disciplines (for example, operational KPIs that staff can influence, and effective performance dialogues) and proactive skills development
The role of call centers is changing as banks migrate their basic activities to digital channels
(notably the web and mobile), and clients dial a call or video center to seek advice and support
Call centers: Make it the
preferred channel for support
• Increase service to sales conversion: the average call center, aided by the intelligent call routing of customers to the best agents, use of CRM, and an approach to
performance management that aims to develop the appropriate mindset.
•Upgrade quality to become the preferred channel: increasingly using the call center to provide high quality service and advice (and sales) for customers. This remote
phone channel is, today, typically exclusive to certain segments and not available to the full customer base.
• Be ready for video: Visual aspect starts to assume a new importance
• Free-up capacity: Reduce the waiting time, call back facilities, scope to improve their demand management with better forecasting and staffing, to reduce call times,
and to optimize call routing

16. Executive Summary
Digital Marketing Vs.
Branch Banking
Customer Insight Road Map Digital Banking Model
Digital Banking 2.0: Action Plan for the Future
Create the “Apple Experience” - Make digital channels the channels of choice
Digital: Open the Digital Bank
before non-banks do
• Increase penetration: Stimulate more customers to use the bank’s apps and websites more often. Create a “wow” experience for clients: innovations might include easier log-on,
faster and more flexible transactions, and well laid-out screens.
•Make information easily accessible: for the Aggregator sites to endorse you willingly, If banks do not provide clear and transparent information these aggregators will direct
customers to someone else’s site.
• Address security concerns: some 45% of consumers say this is the single most important reason why they don’t bank online. It may be more a matter of perception than reality, but
if so banks have to alter that perception.
•Multichannel processes: Optimize to eliminate leakage and improve experience:
• Attract high-quality traffic and leads: Use event marketing to attract traffic. This will become an essential part of the initial phase of the purchasing process as customers
increasingly search for information on the internet, notably via aggregators and online benchmarks, before deciding which product to buy (through any channel).
• Use CRM and behavioral data: Banks are sitting on an enviable wealth of information, but so far most have only used the tip of the iceberg.
• Use targeted personalized marketing: The Internet enables banks to target ‘segments’ as tiny as just a single consumer. For example, to ascertain exactly who has logged on to a
page and then to customize offers or investment advice to that individual
Improve ‘end-to-end’ processes to reduce ‘leakage’ – Great Client experience across all the 3-4 channels per
person
Multichannel processes:
Optimize to eliminate leakage
and improve experience
• Leakage of the kinds: Missing telephone numbers and email addresses on the web, or poor communication between call centre and branch over a customer’s follow
up visit, were among the issues raised. Inadequate search engines and complex forms result in promising leads being missed.
• Optimized Processes: Bank is responsible for integrating products, services and channels in a way that ensures delivery of an integrated value proposition to every
customer. Revenue ‘leakage’ can be as much as 60 – 80 % of total generated leads as a result. To improve these processes and identify sources of such ‘leakage’, banks
should take what we call an ‘end-to-end’ approach
•Gaining awareness and After sales support are important

17. Appendix
Respondents Data and Analysis:
Banks Benchmarking:
SPSS Analysis:
RBI data used: www.rbi.org.in