Marketing Strategy for Alternate

Channel Products

Group 4
Aritha Krishnan G, Kiran Sudevan,
Remya Rajeev, Sonya M H,
Ranjith R, Thomas John
 Alternate Channels
What
Whatis…
is....

Platform to direct the customers from branch to convenient modes of

banking

Different Channels….
ATMs, Internet Banking, Mobile Banking, GCC, POS Terminals, i-
collect, Tiny cards, Gift Cards etc.

What we want….
Desired extent of coverage: 50%
 Importance
Transaction Mode Cost per Transaction

Branch Rs 55 (cash txn)

Rs 45 (transfer txn)
ATM Rs 18
Internet Banking Rs 7.50 appr.
Mobile Banking 0.50 paise
Objectives
 Methodology
Interview Method

 Personal
 Telephonic
 Group
 Focus

Observation Method
 POS

Observations

• Main competitors- Axis Bank and HDFC

• Settlement on T+2 basis
• Excellent after sale service by Axis Bank
• No rent charged by other banks
 Strategies - POS
• Marketing should focus on the following:
– T+1 settlement cycle
– Large base of SBI card holders
– Cash Management Made Easier
– Vast network of branches give easy access for merchants.
– No installation charges
– No hidden charges
 Strategies - POS
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 i-collect
We offer….

• Generic e-payment module by SBI

• Customization to the needs of institutions
• Pre-designed web pages hosted on onlinesbi
• Remitters can log on to INB and select the institution to pay the amount
• Instant online generation of receipt
• Reconciliation reports generated on daily basis
 Strategies – i-collect
• Marketing Strategy to focus on the following :
– Convenient and online fund collection
– Easier reconciliation and report generation
– Customized web page creation enabled for the institution
– Online receipt generation for remitter
– Convenience to remitter – need not visit branch or institution for remitting funds
– Lower Cost to remitter: Payment at branch is charged at Rs.50/- while i-collect
payment costs only Rs.10/-

• Launching Pilot project at SBOA School

• IT Department, ESI, EPF corporation etc can be targeted
• KSEB, KWA, BSNL etc can be targeted
 Mobile Banking
We offer….
 State Bank Freedom
 Available in mobiles through following modes - Application based, USSD and WAP
 Services offered-Utility bill payments, Intra and Interbank fund transfers, Demat
Account, Mobile Top-up, Cheque Book Requests etc

Observations….
 Knowledge in complaint redressal lacking among branch staff
 Customers hesitant due to the SMS charges incurred
 Concerns regarding transaction security raised by customers
 User Demo not available in website to guide customers
 USSD mode not popular among staff- isolating low end mobile users
 Situational Analysis
Mobile Banking
SBI ICICI HDFC Federal Axis

Fund √ √ √ √ √
Transfer
Bill Pay √ √ √ √ √

ATM Card X X √ √ X
Blocking
Loan Account X √ X X X
Access

Demat √ √ X X X
Strategies – Mobile Banking
Strategies – Mobile Banking
 Internet Banking
We offer….
 Online SBI
 Portal is certified by Verisign
 Services offered- intra and inter bank fund transfer, Bill payments, merchant
payments, online account opening, request for cheque book, draft, Demat account,
ASBA, i-collect, Visa transfer etc .

Observations….
Observations
 Users are still concerned about transaction security
 Time delay / branch support for regeneration of passwords
 Facility provided only when requested by customer-push strategy not observed
 Situational Analysis
Internet Banking
SBI ICICI HDFC Federal Axis

Fund Transfer √ √ √ √ √

Bill Pay √ √ √ √ √

ATM Card X X √ √ X
Blocking
Instant Password X √ √ √ √
Regeneration

Mobile Recharge X √ X X √
 Strategies – Internet Banking
• Marketing strategy should focus on the following:
– Convenience of Banking from home
– 24x7 banking
– Highly Secure
– Simple and user friendly interface
– Facilities like fund transfer, Bill payments, online account opening, request for cheque
book, draft, demat account etc.
Strategies – Internet Banking
 Product Enhancement
Menu in regional language

Online Password regeneration

Password change to be prompted

 Green Channel Counter
We offer….
• A Green Banking initiative
• Paper-less, convenient and faster banking to customers.
• No VVR checking is required
• Lesser data entry in CBS

Observations…..
Observations
• Not implemented in all branches
• GCC implemented in only one counter in branches
• Hits at the GCC are not very high
• Not very popular among the branch staff
Strategies - GCC
 ATM
We offer….
• State Bank group has the largest network of ATMs
• Facilities for trust donation, air ticket booking, Cheque Book request, card to card
transfer, credit card bill pay, mobile top up etc are available in addition to cash
withdrawal.

Observations….
• In spite of vast network, rate of issuing transaction is high
• Except for cash withdrawal , other functions available in the ATM are not very
popular
Strategies - ATM
Our marketing efforts should focus on increasing our acquiring
transactions - “Withdraw using any bank’s ATM card.”
 Outcome of Marketing

i- collect

NSS Group of Institutions, Nehru Group of Institutions, Valluvanad

Medical College,NIT Calicut, CGMC Calicut, DOEACC Calicut,
MIMS Calicut, DCSMAT Vagamon

POS
Thomas Hotels & Resorts Pvt. Ltd., Residency Towers, KIMS
Hospitals, Rajadhani Group, Muthoot Hotels, Ayyappas,
Somatheeram, Tandem Group of Institutions
 Conclusion
• Vast opportunities emerging for Alternate Banking channels
• Focus should be on making this a core competency of the bank
• Product oriented marketing is the need of the hour
• Staff support towards the cause to be ensured
• TAT based complaint redressal
 The Big Idea

Never step into the branch again

With SBI Alternate channels, banking is so easy that

you don’t have to step into a branch again