Launching a consumer

bank in India

Group 1
 Banks in India
• Foreign Banks
• Nationalized banks
• Other scheduled commercial banks
• SBI and its associates
• Co-operative Banks
 Foreign Banks
Chinatrust Commercial bank
• AB bank
Citibank
• ABN Amro •DBS Bank
• Abu Dhabi Commercial Bank •Deutsche Bank
• American Express Banking Corporation •HSBC Bank
• •JP Morgan Chase Bank
Antwerp Diamond Bank
•JSC VTB Bank
• Bank International Indonesia •Krung Thal Bank
• Bank of America •Mashreq Bank
• Bank of Bahrain & Kuwait •Mizuho Corporate Bank
• Bank of Ceylon •Oman International Bank
•Slnhan bank
• Bank of Nova Scotla
•Soclete Generale
• Bank of Tokyo Mitsubishi UFJ •Sonall Bank
• Barclays Bank •Standard Chartered Bank
• BNP Paribas •State Bank of Mauritius
• Caylon Bank •UBS AG
 Nationalised Banks

• Allahabad Bank • Indian Overseas Bank

• Andhra Bank • Oriental Bank of
• Bank of Baroda Commerce
• Bank of India • Punjab and Sind Bank
• Bank of Maharashtra • Punjab National Bank
• Canara Bank • Syndicate Bank
• Central bank of India • UCO Bank
• Corporation Bank • Union Bank of India
• Dena Bank • United Bank of India
• IDBI Bank Ltd • Vijaya Bank
• Indian Bank
 Other Scheduled Commercial Banks
• Axis Bank ING Vyasa Bank
• Bank of Rajasthan Jammu and Kashmir Bank
• Catholic Syrian Bank Karnataka Bank
• City Union Bank Karur Vyasa Bank
Kotak Mahindra Bank
• Development Credit Bank
Lakshmi Vilas Bank
• Dhanalakshmi Bank Nainital Bank
• Federal Bank Ratnakar Bank
• HDFC Bank SBI Commercial and
• International bank
ICICI Bank
South Indian Bank
• IndusInd Bank TamilNad Mercantile Bank
Yes Bank
 SBI & the Associates
• State Bank of Bikaner and Jaipur
• State Bank of Hyderabad
• State Bank of India
• State Bank of Indore
• State Bank of Mysore
• State Bank of Patiala
• State Bank of Travancore
Customer Segmentation:
A disturbing trend
A new segment: defining the TA
The Poor • The poor in India have
been growing
Rural Poor Urban Poor
• All efforts till date
have been unequally
skewed towards the
Earning Not provided for rural
• No mechanism to
measure the number
or extent of the urban
poor
Justification
The India-Urban Poverty Report 2009 states:
• The urban population is increasing at a faster rate than its total
population
• While presently 28 per cent of the population is urban (286 million),
by 2030, India will have 41 per cent of its population living in cities
and towns
• With India becoming increasingly urban, there is also an increase in
the number of urban poor and the latest National Sample Survey
Organisation survey reports that there are over 80 million poor
people living in the cities and towns of India
• It is this large section of the population, which also lacks access to
the most basic banking services - such as savings accounts, credit,
remittances and payment services, financial advisory services, etc
Financial Inclusion:
Talking the talk
• The concept of “financial inclusion”: first mooted by the RBI in its
annual policy statement of 2005-06 made clear to banks that while
commercial considerations are important, banks are bestowed with
special privileges and that they are, therefore, obliged to provide
banking services to all segments of the population on an equitable
basis
• Pursuant to this, the RBI advised all banks in November 2005 to
make available a basic banking ‘no-frills’ account either with ‘nil’ or
very low minimum balances as well as charges that would make
such accounts accessible to vast sections of the population. The
nature and number of transactions in such accounts could be
restricted, but made known to a customer in advance in a
transparent manner
• Significant progress has been made in the opening of such
accounts and it is estimated that as on March 31, 2009, over 33
million had been opened.
Final Inclusion: Losing track
• General unwillingness
• KYC norms
• Difference between rural and urban poor
Final inclusion: Disturbing trends
• Banks reluctant and hesitant
• TA unaware and under-represented
• The Rangarajan Committee Report on Financial Inclusion
(2008) states
(i) There are no clear estimates of the number of people in
urban areas with no access to organised financial services
(ii)That even money lenders often shy away from lending to
urban poor
(iii)That urban branches of banks, even though having
manpower and technology support, are not attuned to SHG
lending or micro-finance.
Financial Inclusion:
Time to walk the walk?
• A bank dedicated to the needs of the urban
poor only
• Actually working towards banking the
unbanked in India
• Facilities and working based on the special
needs of its TA

• Time to walk the walk?

Target Audience Redefined
• Choosing them on multiple-attributes:
Income, occupation, education
• Should be earning at least 3k per month, have a basic level of
education and are currently employed
• TA includes:
Barriers
• Before: • After:
KYC norms Funding
Banks are hesitant Market Segmentation
Non-countable Building trust: new
Comfort level Different levels of awareness
Lack of trust Guarantee
Hand-to-mouth Technology/staff
Definition & Problems: Urban poor
• Debt-trap
• Basic problems
• Self-employment
• Saving
• Training
• Personalization
• Unawareness
Working
• The Government
• CSR
• New foreign banks
• Outsourcing by large private banks
• International organisations
• Voluntary funders
Facilities
• Why does a person use a bank?
Accounts, FD, loans, debit card
• What are we talking about?
An alternative to the black market
Unique saving options
Flexible loan facilities
Self-employment
Everyday solutions
Flexible work timings
24*7 Phone service
Facilities
• NFA: caps
• Loans: caps, trimester
• Savings: everyday (gullak system)
• Education/employment: caps, training
• Group meets: follow ups, free guidance
(hamdard)
• Database formation
• Local recruitment
Competition Redefined
• SBI
• ICICI , Canara, PNB,
• Indian bank
• Basix
• SEWA
• Co-operative banks
Basic proposition going forward
• A bank for the urban poor
• A new concept. Such a bank does not exist
• The bank offers new facilities in a new way

• Parivar Bank
To bank the unbanked in Delhi
 Communication Strategy
We battle against not just physical barriers but
mental ones

How?
The Communication Strategy

Brand Definition
Marketing Objectives
Role of Advertising
Competition
Target Market
Where are we?
Where are we going?
The Button
Support
 Brand Definition
• “We are what no one is as no one has done
what we are doing the way we are doing it.
Our aim itself encompasses several problems
and the way we meet the challenge to provide
for the urban poor defines us.”
 Marketing Objective

• MAKE IT TAKE OFF

• “To aggressively promote the bank as a new
concept in Delhi and NCR, prepare a database
of the TA and work towards financial inclusion
in the same area over a period of 5 years.”
 Role of advertising

• MAKE THEM TRY

Introduce, promise and assure

The idea is to establish a character who

belongs to this category and calls others to
join the family.
 Competition
• Standing out on the basis of services
being offered
Micro finance, government subsidy, self
employment and housing
 Competitors
Direct Indirect
• Banks • Finance companies
• All private sector • NGO’S
• All public sector • Chit fund companies
• All co-operative banks • NBFI
• Regional banks • Local money lender
• Foreign banks
• Others
Post office
Target Audience
• Sevak kumar, driver, UP resident, 12th pass, driver
for kids, washes cars, rent: 3k, earns: 6k
Can: save
• Dev Lal, vegetable seller, Haryana resident, primary
school, earns: 9k, spends: 6k
Can: save
• Shyam Singh, auto-driver, UP resident, High school,
earns: 16k, rent: 3000, emi: 12000
Can help
Target Audience
• Laxmi Kumar, house-maid, Bihar, uneducated,
earns: 10k, expenses: 6k
Needs: loans for child education
• Bhushan Lal, uneducated, basket maker
Needs: working capital

And so on…
 Where are we?
• No where we don’t exist as a tangible but as a
diffused idea spread across various
institutions.
 Where are we going?
• To our target audience mind
Should be curious enough to find out more
and meet our on-field executives.
 The Button
• “PARIVAAR BANK”
‘aapko samjhe, aapka saath de, aapki apni
zarurato ke liye’

Family connect
Personalisation and follow up
Free guidance
Gullak system
 Support
• Indian urban poverty report
• KJ Udeshi, chairperson, The Banking codes
and standards boards of India
• RBI annual report 2008-2009