Customer loyalty can help improve profitability of banks, and is important for Indian banks to outperform their peers going ahead. This was one of the topics discussed at Bancon 2010 on Friday.
According to a survey conducted by McKinsey, though 95 per cent of Indian customers are satisfied, they are not loyal to their banks. About 33 per cent of satisfied customers are willing to switch banks. This is true for public, private and foreign banks.
Indian customers have low expectations, hence they are highly satisfied, said Mr Alok Kshirsagar, Director and Head, Mc Kinsey.
Customer loyalty can help improve profitability two to three times, Mr Kshirasagar added.
According to Mr Aditya Puri, Managing Director, HDFC Bank, as customer needs change banks must change technology, products, marketing and delivery channels, while managing both costs and revenue. “Banks have to make profits and satisfy their customers,'” he said.
Ms Chanda Kochhar, CEO and MD, ICICI Bank, said given the growth of the Indian economy, the banking sector can grow almost eight times in a decade. The size of opportunity is large and scale is humungous.
Segments
In the next 10 years, the banking sector will see customers ranging from the microfinance sector on one side to the large infrastructure on the other side. Between these two categories there will be mass, mass-affluent, high net-worth individuals, small and medium enterprises and corporate clients. These customers have to be served differently. The distribution mix, therefore, should involve both brick-and-mortar and technology. Banks will have to also rely more on analytics for improving customer satisfaction. And the learning from customer experience, in turn, has to go into improving analytics.
Mr Rana Kapoor, MD and CEO, YES Bank, said over the next 10 years, Indian banks will get retail business from both a burgeoning middle class and a large retired class. “Both ends of the spectrum provide opportunities for retail banking to provide all kinds of services and products. Therefore, banks should have scalable models driven by technology and telecommunication and not just brick and mortar,” Mr Kapoor said.
Mr Neeraj Swaroop, CEO-India, Standard Chartered Bank, said banks have to carefully choose segments they want to service. Citing the example of StanChart in India, Mr Swaroop said being a foreign bank it followed a tech-driven model earlier, but was now focusing more on relationship and branch-banking model for customer acquisition and delivery of products.
+1.jpg)
0 comments
Post a Comment