Live Research Project- HDFC Bank’s Strategy

for 2020 using video as a channel

INDIAN INSTITUTE OF MANAGEMENT RAIPUR

CHEKKA GEETHA
18pgp045@iimraipur.ac.in

DODDI SWATHI KIRAN KUMAR

18pgp226@iimraipur.ac.in

SARVASUDDI AKHILA
18pgp170@iimraipur.ac.in

SOBHA SIVA RAMAKRISHNA

18pgp243@iimraipur.ac.in
 INNOVATIVE METHODS TO IMPROVE CUSTOMER
RELATIONSHIP MANAGEMENT IN BANKING SECTOR

Building up and keeping up solid associations with clients is vital to a bank's prosperity. As per Investopedia, a
regarded online asset for contributing instruction, relationship managing an account improves benefit. By strategically
pitching an expansive exhibit of money related items and administrations, banks can fortify their associations with clients
and increment unwaveringness. Thus, perfection in client commitment must be a need for banks. From the example of 136
keeping money experts, 99% of the respondents said that the nature of client commitment is either Imperative/Critical to the
achievement of their business. To evaluate the effect of client commitment on a bank's main concern, Gallup Exploration
directed an investigation in 2013 with US Retail Banks and found that clients who were completely drawn in conveyed to
their essential bank an extra $402 in income every year, contrasted and clients who were separated. Extra incomes from
completely drew in clients came to $869 when customers were mass princely customers .

63% Percentage of respondents who have been invited to take

63%
part in video banking session. N=4,144
10% FACE-TO-FACE VIDEO BANKING
9%
 When customers and bank staff engage in banking
transactions or consultations through remote video
collaboration sessions, seems to be an obvious solution.
According to the survey,
 Video banking is perceived to enhance the customer
experience when compared to more traditional banking
channels
 It high-quality interaction as a branch visit, and also
offers more convenience to customers, since they can make
their transactions from the comfort of their homes instead of
Online In-branch Either travelling to the bank
video video  Video banking also enables new and valuable
engagement opportunities, such as the ability to include people who would not be able to attend in-person meetings
 Around 93 percent of survey participants responding that they felt video banking would have a Positive/Strongly
Positive impact on customer satisfaction
 the video banking is available over a network that is stable, reliable and controlled from end-to-end
 Initially offer their video services from the banks’ own properties, allowing their customers to visually
communicate with banking experts via the bank’s proprietary corporate network
 These services are usually offered either using dedicated kiosks within their branches, on ATMs and ITMs, or in
private meeting rooms where a bank teller can host customers and invite remote subject matter experts and/or
family members to join remotely as needed
 Some of these projects have been very successful and led banks to be willing to expand the video offerings beyond
the bank network so that their customers could access the services wherever they happened to be, over the public
Internet via desktop and mobile devices
To do this, banks really needed a visual communications solution that would provide a high-quality experience over
variable Internet connections and would scale both easily and affordably.
  10% of banks have already deployed a video banking service
 50%^plan to launch a video banking service within 12 months
 80% plan to launch a video banking service in longer term

With more saving money organizations propelling, guiding or truly assessing the alternative of offering video
managing an account to the clients, the odds are high for this kind of administration to before long be as pervasive as web-
based saving money is today. the results from the online survey that was conducted, it is likely that in the not-too-distant
future, video banking will be a common way for banking customers to engage with bank representatives to participate in a
broad variety of transactions.

Shaping a Video Banking Service:

One customer segment

Almost 75 percent of review respondents felt that video banking money ought to be an administration that is accessible for
a wide client base, not exclusively to a constrained client segment. Choosing which administrations to offer to which
client’s criteria would be finished in the planning stages of the program.

Respondents indicated that complex services such as:

 private banking
 wealth management
 mortgages and loans
 savings and investment plans

were the most important types of offerings to include as part of video banking services offered, although a significant
number of bankers indicated that they would also consider using video to enable much simpler transactions and
discussions ranging from introductory meetings for new customers and updates on current accounts or cards.

The main reasons for deploying a video banking service:

Respondents also identified the key motivators for offering video banking to their customers. On top of the list were
increasing customer satisfaction and loyalty, building perception as an innovative bank, and enhancing the online
experience.
The above statistical data show different fields, about the customers like increase customer, attract customer and the
branches. According to them we can plan where to make improvement. So, we observed on some of the fields which are
mentioned below.

Till now we have discussed about the video banking and the deploys for them now here are the best communication
tools like voice video development through personalized video marketing for communication and search engine
optimization.

PERSONALISED VIDEOMARKETING FOR COMMUNICATION:

1. ONLINE VIDEO CONSUMPTIONS GROWS 5TIMES:

 96% were focused on long form videos and usually watch more than 20mins video
 In India there is a short form consumption and Deeply fear of data charges
 More than 90% spend on mobile
 2.5 times watch time on mobile (web)
 In many cities like Moradabad (22%), Ahmedabad (13%), Hubli (12%), Sonipat (12%) watch rate is
more in these cities
 According to CAGR 23% of watch has increased from past years
 Hotstar, Netflix and Amazon Prime Video are the most viewed sites in video field

2. EMAILS:
 Individual emails (to specific gap with specific need)
 Collect customers info through email signups
 Target main email ids like business emails rather than personal emails

3. SOCIAL MEDIA CHANNEL:

 Interaction through social media
 Collect responses through Automation Technology
 India is using video platforms and it was positioned 3 rd after Indonesia and Philippines

SEARCH ENGINE OPTIMIZATION:

SEO techniques that must implement right away to increase search traffic. Getting more visitors should
help convert more people into customers too

 Every day, people use Google to conduct over 3.5 billion searches
 In the U.S., 78% of people use the web to research products and services before buying
 Once the website begins to rank in the first pages of Google’s search results, you’ll get more visibility
 This means more traffic, more conversions, and eventually, increased revenue
 Getting to page one of the search results is vital. 75% of users don’t even click past the first page!

The below steps mentioned will help in increasing SEO in any field :

1. Complete an SEO Audit on HDFC website:

Auditing is a growth hacking technique that will help to attract and retain customers. An SEO
audit means we are closely examining the overall site performance, setting new goals based on what to
find, and implementing tactics to reach those goals. This process helps to increase the profits by making
the best use of the content already have.

2. Learn what the users want:

We need to focus on what the target customers want. When to understand what they want, so that
we can develop content that draws them in. When we listen to feedback from our target customer, it guides
the content to create and attract more of them. The opinions of the users count will make the public and
determines whose idea, article, product, or concept gets shared or funded .
 Use social media platforms like Quora
 See the most popular pages in Google Analytics
  Observe what posts get the most shares
 Listen to visitor comments on your blog posts

3. Creating SEO optimized landing pages:

 A well-designed landing page can improve the lead generation and sales. The more landing pages
we create, the more gateways will open up for incoming search traffic.
 According to the SEO research firm, Marketing Sherpa, 44% of clicks for B2B companies go to a
homepage, not a landing page
 So, the homepage is important, but a landing page is where we can initiate a strong relationship.
 No navigation (you want users to stay on the page!)
 Useful, informative content
 A call to action (to sign up for your product, service, download a lead magnet, o r another type of
action)

4. Website is to be mobile-friendly:
 Mobile-friendly algorithm is supposed to give an additional ranking boost for mobile-friendly websites in
the mobile search results
 Responsive web design: is an approach to web design aimed at allowing desktop webpages to be
viewed in response to the size of the screen or web browser one is viewing with

5. Grow the traffic with infographics:

 Infographics are popular because they allow you to display complex information in an easy to
understand way
 Since 65% of people are visual learners, a graphic goes a lot further than just a text article
 We can generate up to 60,000 visitors
 The traffic could grow 12% faster
 An infographic is 30x more likely to be read

6. Optimize the content for Rank Brain:

 Rank Brain is an artificial intelligence system that helps analyze search results
 It learns what a page of content is about and how that relates to keywords peopl e are searching
for
 Essentially, it helps connect a search with relevant results

These are some of the techniques to be implemented for the search engine optimization to
strengthen HDFC communication strategy in video platform.
 STRATEGY FOR 2020 & AFTER 2020

Successfully Implementing a Video Banking Service:

The challenges that might be encountered during the process of deploying a video banking service, potential issues
were grouped into 3 categories:

Technology Challenges Organizational Challenges Cultural Challenges

To overcome various technology
barriers to deliver a great customer
experience
Identifying and acquiring the required
resource allocations to deliver a quality
video banking solution.
Making banks to ensure that their
existing internal teams will embrace the
service and customer adoption be
managed within the bank and will be
driven externally

The main challenges to deploying a video banking service and key considerations for wider adoption:

This initial excitement notwithstanding, there are a few key aspects that need to be addressed collectively by the
industry for wider adoption of Blockchain Technology:

Security concerns given recent incidents:

 Financial services institutions have been wary of open or ‘permission less’ Blockchains (like the one used as
Bitcoin ledger) simply because the loopholes are still less understood
 This was exacerbated by the recent incidents like the DAO Attack that further evidenced the vulnerability of
Blockchains

Scalability through collaboration:

 While the initial experimentations are encouraging, we are yet to see a scalable model that can produce sustained
Business outcomes
 This is partly since such models necessarily demand participation of wider stakeholders including Banks,
Regulators and Governments to come on the same platform to make it a successful exercise
 A case in point is Banks reaping full benefits of automated underwriting of mortgages on the Blockchain through
smart contracts is contingent on having a robust land record digitization programmed

Lack of standardization:

 Fragmented experimentation by many on Blockchain has led to a scenario where there is no standard protocol yet
 This is a necessity in financial services where standardization is synonymous with ‘trust’ for the end consumers
 While there are competing consortia emerging, many of them like R3CEV are working towards developing a
common standard for members. This can be a slow process implying further delay in wider adoption

Evolving Regulatory and Legal clarity:

 While Regulators have been sceptic about a competing Crypto-currency like Bitcoin or Ether, they have been
mostly supportive of the underlying Blockchain technology
 However, like Banks, most Regulators too are on a learning curve and it will take due time for a clear point of
view to emerge
 Similarly, there is lack of legal clarity in areas like enforcing of smart contracts in the real world and further work
is required I these areas before we see large scale adoption of Blockchain and DLT by the financial services
industry in general.
To overcome the challenges, the strategies to be implemented before and after 2020 are:

1. STRATEGY FOR 2020:

REVAMPING THE DIGITAL AGENDA:

 By 2020 the average age of India will be 29 years and in this new age consumer base is technology savvy,
always connected and looking for a personalized, contextual experience with real-time online information.
 Cell phone penetration has reached almost 85% and the rise of the middle class has increased the number of
households with internet connectivity.
 Banks are acknowledging this change and almost all banks are in the process of rolling out online, mobile and
social banking extensions to their core offerings to respond to this changing consumer demographic.
 Several banks have deployed best in class online and mobile banking features including personalization, bank
wide customer relationship views and cross channel integration.

Prevented respondents from offering Video Banking Challenges that had to be overcome by respondents in banking
services to implement video banking

TECHNOLOGY:

The technologies that to be used for the growth of infrastructure of IT resources are:

1. KPI’s:
Establish KPIs up front and implement the right tools and processes to evaluate the performance of the video
banking service. This is the one of the way to improve its value and fine-tune the offering to take full advantage of
video banking’s opportunities.
 It will reduce the average handling time and increase the first call resolution rate in the contact center
 It will strengthen private banking client relationships with deeper wallet share
 It will increase loan closure rates and shorten the sales cycle
 It will be the head of retail banking willing to optimize the cost of the branch network

2. Watson IBM:
 Watson is an artificially intelligent computer system capable of answering questions posed in natural
language
 Watson on the IBM Cloud allows you to integrate the world's most powerful AI into your application and
store, train and manage your data in the most secure cloud
  Watson discovery: Unlock hidden values to find answers, monitor trends and surface patterns
 Watson assistant: Build quickly and deploy chat boards, and virtual agents across a variety of channels
 Watson recognition: Tag and classify visual content using machine learning

3. Robotic Automation Process(RPA):

 Mimics Human Actions
 Mimics Human Judgement
 Augment Human Intelligence
 Mimics Human Intelligence
 It can reduce Complex manual processes pose quality issue
 It can improve case handling productivity to address the existing case backlog and meet regulatory
requirements

4. Augmented Reality and Virtual Reality:

 VR and AR offer new channels to reach the Millennials
 Enhancing the brick and mortar bank branch with augmented reality
 The virtual bank branch experience
 3D visualization and mixed reality enrich financial traders’ user experience
 VR provides immersive learning experience to educate children about money

SECURITIES:

1. Cognitive analytics (Artificial Intelligence):

 It is a new approach to information discovery and decision-making.
 Inspired from the human brain processes information, draws conclusions, and codifies instincts and
experiences into learning, it can bridge the gap between the intent of big data and the reality of
practical decision-making.
 Machine learning systems, artificial intelligence, and natural language processing are practical
 Natural Language processing – Ontology Based information extraction and Speech recognition
 Natural Language generation
 Machine Learning – Neural networks or Deep learning
 Computer Vision – Image recognition

2. Cyber Security:

Cyber risk, while not at all new, has rocketed up the list of leading issues for banks–for the regulators. So,
here we have the methods to overcome the risk.

 Digital wallets:
The digital wallets industry is largely at a nascent stage in India and banks are more
focused on building a user base than perhaps looking into fraud control measures. However, it is
observed that the mobile platform adoption rates in India are much higher than in other parts of the
world. It is therefore likely that this surge in adoption rates may be accompanied by a spate of cyber
frauds.
 EMV Chip-based cards:
EMV chip-based cards may have been fixed, it is only a matter of time before new
vulnerabilities are identified and exploited. They merely shift the threat landscape from point of sale
to the payment life cycle and the applications merchants run in their online environments.

 SMS OTP:
Two-factor authentication needs to evolve further and use alternative channels to perform
out of band delivery of OTPs. So, while the use of SMS-based OTP is being deprecated, secure
mobile device is still a viable alternative to SMS-based OTP.
Comparative maturity and impact model for emerging technologies:

3. 9 feature point facial recognition:

 Face recognition has been widely applied in security system, credit-card verification, and criminal
identifications, teleconference and so on
 It is well known that it’s very difficult to detect the features exactly on each face images due to the
complication of human face structure and the diversity of face features and shooting angle.
  It can be done by 9 feature points for the face recognition security system
 9 feature points that have the property of angle invariance, including 2 eyeballs, 4 near and far corners of
eyes, the midpoint of nostrils and 2 mouth corners

2. STRATEGY AFTER 2020:

Preparing the Future: After the voice and video banking we can enter a new strategy that is HOLOGRAM
which is one of the fast-growing technology in the present world. Leading up to 2020, radically transformed Bank models
will emerge. A glimpse ahead shows an emphasis on innovative technologies to vastly facilitate banking - inclusive
banking through new types of Bank models, non-traditional alliances to make banking affordable, these capabilities will
make banking customer centric. Banking in the future will be collaborative, exciting and will raise the bar in setting new
standards. Let us discuss about, how the Holograms are used and implemented.

 HOLOGRAMS is profound in Banking world because it enables trust among entities that have no other
basis for trust.
 While it may impact financial services first and most visibly, ultimately, it’s going to impact all banking
world in the future.
 Holography is a technique that enables a light field, which is generally the product of a light source
scattered off objects, to be recorded and later reconstructed when the original light field is no longer
present, due to the absence of the original objects
 Holography can be thought of as somewhat similar to sound recording or video recording, it is encoded
in such a way that it can be reproduced later, without the presence of the original vibrating matter

IMPLEMENTING HOLOGRAMS (Banking Sectors):

1. SYNECHRON TECHNOLOGIES (smart and paperless):

 SYNECHRON built an application for Amazon Eco, a giant speaker with built in microphone that
uses artificial intelligence to respond to user’s voice commands and reminds users the due date of
next bill or transferring the money to another account etc.,
 It was proposed in UAE-Digital Innovation center in Dubai
 BEACONS-trigger notifications can be identified by finger prints, heart beats, before presented with
banking info 360 virtual formal Café Banking Style
 Ex: If you go into a room, it’s dark, it authenticates you, it lights up with floor-to-ceiling digital
walls with a Holographic projection of your representative
 Giant Interaction Simulation Table Allows to view financial projections and beam the info to
their phones and private kiosks for video conferencing with call center

2. GOGGLES TECHNOLOGY:
 A hologram machine was already implemented in Unmanned Chinese Bank It allows to buy gold,
change currency using virtual reality Goggles
 Room equipped with teleconference software allows VIP clients to request help from human
employees
 Fig. Unmanned Chinese Bank, Shanghai

BENEFITS:

By implementing the new strategies and technologies:

 Positions of the organization as innovative

 Increased satisfaction level
 Faster service
 Better customer intimacy
 Reduced work in branches
 Reduced agent churn rate in contact center
 Increased loyalty
 Increase in revenue and brand value
 Acquire invaluable experience
 Reap higher rewards
 Gain a competitive advantage
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