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The Business of Retailing

Investor Presentation by Consumer Banking

Presentation Outline
The Business of Retailing: Our Beliefs

Consumer Bank Performance: Key Metrics


Building Blocks of Consumer Bank
Future Plans

8 Core Beliefs drive the retail franchise of the Bank


1. Segmentation creates value geographic segmentation and client segmentation
2. Scale is crucial; Build scale selectively
3. Universality of products and offerings

4. Efficient distributor dont manufacture everything


5. No one size fit all approach solutions driven by segmentation

6. Client centricity through responsive innovation and share of wallet penetration


7. Technology / Digitization to find, serve and engage with customers and in the way
we run the business
8. Brand is built through customer advocacy and responsive innovations

Presentation Outline
The Business of Retailing: Our Beliefs

Consumer Bank Performance: Key Metrics


Building Blocks of Consumer Bank
Future Plans

IndusInd SA has grown much faster than industry


IndusInd SA deposits have grown at CAGR of 48% compared to 19% for other new
private sector banks*
SA in other new private sector banks has
grown at CAGR of 19% over last 3 years

10000

Rs Cr

Rs Cr

8000

3,50,000

9915

4000

2,50,000

2000
0

2,00,000
3,06,206

1,50,000

48%

6000

19%

3,00,000

1,00,000

IndusInd SA has grown at CAGR of 48% over


last 3 years

1,80,768

50,000

37%
1186

3059

2008
2011
2014
SA grew from 6.2% to 16.4% of overall
deposits over last 2 planning cycles
20.0%
16.4%
15.0%

2011

2014

10.0%

8.9%
6.2%

5.0%
2008
Source: Annual Reports 2014
*Other pvt. banks include HDFC,ICICI, Axis, Kotak, Yes and ING Vysya

2011

2014

IndusInd branch footprint has grown much faster than industry


Branch footprint of new private sector banks
has grown by 18%
Rs Cr
12,000
10,000
8,000
6,000
4,000
2,000
-

IndusInd branch footprint has grown at 26%

Rs Cr
800

18%

600
400

11,271

200

6,930

2011

2.0
2.7
0.9

1.2

2008

2011

602
180

2008

2014

# of clients nearly tripled over last two


planning cycles
mn clients
3.0

1.0

26%

2014

300

2011

2014

ATM footprint has also grown with the


branch network
1200
1000
800
600
400
200
0

1110
336

2008

Source: Annual Reports 2014


1. Other pvt. banks include HDFC,ICICI, Axis, Kotak, Yes and ING Vysya

594

2011

2014

Consumer Non Vehicle and small business portfolio growth has


been strong
Overall Consumer (Non Vehicle) + BBG has
grown at 69% over last three years

Share of Consumer (Non Vehicle) grew


from 2% to 13% of Consumer loan book

CAGR
2011-14

100%

2%

13%

3410

44%

50%

98%

87%

3181

141%

28195

30000
69%

25000
20000
15000
10000

7293

5000

7293

12754
1135
227

24%

11392

2008

2011

BBG
Consumer Loans (Non Vehicle)
Consumer Loans (Vehicle)

2014
Overall Consumer
(non vehicle) +
BBG grew by 69%
from 1362 Cr to
6591 Cr between
2011 & 2014

2014

Share of Consumer (Non Vehicle) + BBG


grew from 5% to 12% of Banks loan book
100%

Vehicle

0%
2011

21604

Non Vehicle

80%

4%
1%

6%

44%

39%

51%

49%

2011

2014

60%

6%

12%

40%
20%
0%
BBG
Consumer Vehicle

Consumer Non Vehicle


Corporate

IndusInd Brand is well-recognized now


BrandZ: Top 50 Most
Valuable Indian Brands

IndusInd ranked 19th in the


Top 50 Most Valuable Indian
Brands 2014 as per the
BrandZ Top 50 Ranking
powered by WPP Plc and
Millward Brown

ET: Best Indian Brands

IndusInd ranked 39th in


the Best Indian Brands
2014 as per the Economic
Times and Interbrand Best
Indian Brand Study

Paul Writer: Star


Brand

IndusInd awarded Star


Brand 2011 in ICMR Star
Brands of India Survey
M.IT.R-50 Marketing &IT
Recognition Program
amongst top 50 brandsorganised by Paul Writer in
association with IBM

Presentation Outline
The Business of Retailing: Our Beliefs

Consumer Bank Performance: Key Metrics


Building Blocks of Consumer Bank
Future Plans

3 core Building Blocks of Consumer Bank: Segmentation, Digitization


and Employee Development enabled by Op. Excellence & Quality

Consumer Bank

Segmentation

Digitization /
Technology

Operational Excellence
Quality Framework

Employee
Development

Geographic segmentation has been core to Consumer Bank strategy

2009

2010

Categorization
of branches
into A / B / C

2011

Creation of
CAT A+

2012

Creation of
Home
Markets

2013

Creation of
Developed
Markets

2014

Creation of
Rural
Markets

Delivery formats attuned to cater to distinctive needs of each segment


in different geographies
Rural

2-person branches
operating in hub and
spoke model

Designed for
efficiency

Biometric
authentication
Micro-ATMs

Branches
Other delivery
channels

Metro / Home Markets

BaU

Business As Usual
Branches

Co-branding with
White Label ATM
operators

Flagship branches in
metros and top
cities

Enhanced brand
image in select
catchments

Virtual Teller
Machines (mini
branch)
Video Branch

Digital branches
Differentiated 24x7
service with STP;
offering ease and
convenience

Virtual Teller
Machines (mini
branch)
Video Branch

Focussed approach to client segments through channels has created


value
Cross-Sell Ratio of >5 in
Exclusive segment
Products per client

6.0
5.0
4.0
3.0

5.2
4.1

2.0
3.1
1.0
Overall

Select

Exclusive

Built universality to bring full suite of products to our clients and to


acquire new relationships
2008

2008-11

2011-14
Business Loans
BBG
LAP

SME
Current

Trade FX

Trade / FX

Current

Current
Gold Loans
Personal Loans

Retail FX

Health Insurance

Home Loans

Individuals

Home Loans

Credit Cards

Credit Cards

Investments

Investments

General Insurance

General Insurance

General Insurance

Life Insurance

Life Insurance

Life Insurance

Savings

Savings

Savings

Basic offerings

Launch of trade to meet


needs of business owners
Launch of Retail FX, HL &
Cards to acquire new reln.
& to meet needs of
existing clients

Investments

Added BBG, LAP, BL to


bring full suite of
products to SMEs
Added GL, PL and
Health for individuals

We will continue to expand our offering to bring full suite of


products to our Retail clients
Current Product Suite

New Asset Products

Payment Solutions
Mobile / Digital Wallets: own
or through partnerships
Aadhar led Direct Benefit
Transfers
Solutions / alliances for
domestic remittances

Loan Against Securities


Gold Loans
Personal Loans

Retail

Health Insurance
Home Loans
Credit Cards

Investments
General Insurance
Life Insurance
Savings

Kisan Credit Card

Payment Solutions for


international remittances

We will continue to expand our offering to bring full suite of


products to our SME clients
Current Product Suite

New Asset Products

Payment Solutions
Transaction Banking Solutions
Mobile / Mobile-POS led
payment solutions
Payment Gateways for online
payments

WC/TL for Agri SMEs


Commercial Cards

SME
Cheque Protect
Business Loans
BBG
LAP
Trade / FX
Current Account

Loan Against Card


Receivables

Facilitation of payments
through bin sponsorship

We will continue to expand our offering to bring full suite of products to


our Government / Institutional Clients clients
Solutions for government & institutional clients
Illustrative

Government /
Institutional
clients

Solutions for fee


collection

Toll Collection

E-tendering

Tax Collection

Welfare Payments

Technology led innovations have been core to Banks DNA:


Bringing many industry first client centric innovations

We are putting in place the building blocks of a Digital Bank

Digital Bank

Data Analytics

Operating
Process
Redesign

Product
Development

Virtual / Video
Branch

Microsegmentation of
clients

Straight Through
Processing

Analyzed Pricing

Mobile Based
Solutions & Apps

Context specific
product offers

Online / Instant
Decisioning

Segment specific
Product Bundles

Tele-RM /
Virtual RM

Predictive
analytics

Digital
Marketing

Channel
Innovation

Social Media
Marketing

Search Engine
Marketing, etc

Operational Excellence core to Consumer Bank driven by 3 core


beliefs

Operational Excellence: Our Beliefs

Principles
Paperless Operations:
Minimize physical
movement of paper

Efficient, lean
operations

Straight Through
Processing

Faster TAT to customers


Provide superior
client
experience

Ensure control
& compliance

Faster Decisioning

Scalability

A robust Quality Framework underpins the entire organization

Consumer Bank Quality Framework


Sales Discipline

Skilling

FTR

Product Mix
Quality of wealth

business

Mystery
Shopping

Consistent, Superior
Customer Service

Quality Scorecard
published monthly

Mystery Shopping
Complaint /
Request
Resolution TAT
Service Score
Client Activation

Embedded in KRAs
of employees at all
levels

Attrition

IndusPro
Certification
Product / Process

Knowledge

Certification
Program such as
IndusPro

Voice of
Customer
Survey

Strong focus on
tracking quality on
a regular basis

We lay high focus on employee development throughout employee


lifecycle

Hiring

Hire-Train-Deploy Model with


supervisory alignment to hire entry
level frontline
MT Program in service & sales roles
to create home grown talent

Performance
Management

Balanced Scorecard Led Approach with focus


on
1. Business
2. Quality
3. Control & Compliance
Quality Framework embedded in KRAs at each
level across the organization

Training

IndusPro: Award winning program for


frontline skilling with continuous evaluation

E-learning for skilling in cost effective,


scalable manner:
6K participants and 15K man-hours / month

Presentation Outline
The Business of Retailing: Our Beliefs

Consumer Bank Performance: Key Metrics


Building Blocks of Consumer Bank
Future Plans

Bank has a clearly articulated ambition for Planning Cycle III

Consumer Bank committed to the overall Banks vision for PC III

Dominate

Diversify

Home Markets

Launch of new asset


products
Payment Solutions
Products & Solutions
for Rural & Agri
Banking

Differentiate

Digitization for client


lifecycle management
Micro-segment
specific product /
solutions

6 core themes will drive the future for Consumer Bank going forward

Growth and diversification of consumer assets

New Business Opportunities Payments and transaction banking

Scale up of distribution

Digital Bank: Use of technology to find, serve and engage with customers

Sharper focus on geographic and client segmentation; micro-segmentation


and creation of new segments

Focus on client level revenue and profitability

Planning Cycle III: Distribution Expansion


Consumer Bank will double its footprint over next 3 years

Branches
1400
1200
1000
800
600
400
200
180
0
2008

ATMs
4000
3000

1200

2000
1000

602
300

0
2011

2014

3400

2017

336

594

2008

2011

1110
2014

Consumer Bank will double its client base over next 3 years
mn clients
6.0
4.0
5.4

2.0

0.9

1.2

2008

2011

ATM expansion plan also includes co-branded


ATMs with WLA operators

2.7
2014

2017

2017

Thank You!

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