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Case Study: Will a Bank’s New Technology Help or Hurt Morale?

• Leonard A. Schlesinger

A CEO weighs the growth benefits of AI against the downsides of impersonal decision making.

Beth Daniels, the CEO of Michigan’s Vanir Bancorp, sat silent as her chief human resources officer and chief financial officer traded jabs. The trio had founded their community bank three years earlier with the mission of serving small-business owners, particularly those on the lower end of the credit spectrum. After getting a start-up off the ground in a mature, heavily regulated industry, they were a tight-knit, battle-tested team. But the current meeting was turning into a civil war.

• Leonard A. Schlesinger is the Baker Foundation Professor at Harvard Business School, where he serves as chair of its practice-based faculty.

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Case Study 7: The Digital Transformation of Banking—An Industry Changing Beyond Recognition

• First Online: 06 February 2020

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• Hubert Tardieu 6 ,
• David Daly 7 ,
• José Esteban-Lauzán 8 ,
• John Hall 9 &
• George Miller 10  

Part of the book series: Future of Business and Finance ((FBF))

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Partly as a result of the rise of FinTechs, banking is a sector that is facing significant disruption. In this case study, we identify some of the innovations that are being made both by young start-ups and long-established banks. We explore emerging opportunities in terms of business models, as well as how new operating models will boost customer-centricity and optimize costs through intelligent automation. The challenges of strategy, leadership, and attracting and retaining digital talent are analyzed. Finally, we conclude with a discussion of how platforms will enable new ecosystems of partners to work together to create and capture customer value.

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Accenture. (2018). Beyond north Star gazing . https://www.accenture.com/_acnmedia/pdf-85/accenture-banking-beyond-north-star-gazing.pdf . Accessed October 26, 2019.

Bain. New bank strategies require new operating models . https://www.bain.com/contentassets/a97b9014afc84a76ae9fb723d3e94ead/bain_brief_new_bank_strategies_require_new_operating_models.pdf . Accessed October 26, 2019.

The Financial Brand. Is the banking industry prepared for a world without bankers ? https://thefinancialbrand.com/86253/banking-future-of-work-training-digital-trends/ . Accessed October 26, 2019.

Capgemini. (2017, October). The digital talent gap . https://www.capgemini.com/wp-content/uploads/2017/10/report_the-digital-talent-gap_final.pdf . Accessed October 26, 2019.

Efma. (2018, September). World retail banking report 2018 . https://www.efma.com/study/detail/28603 . Accessed October 26, 2019.

EY. (2018, June). How convergence in banking could be an opportunity for growth . https://consulting.ey.com/convergence-banking-opportunity-growth/ . Accessed October 26, 2019.

EY. (2016). Global consumer banking survey . https://eyfinancialservicesthoughtgallery.ie/wp-content/uploads/2016/10/ey-the-relevance-challenge-2016.pdf . Accessed October 26, 2019.

IDC. (2018, March). The business value of the stripe payments platform . https://stripe.com/files/payments/IDC_Business_Value_of_Stripe_Platform_Full%20Study.pdf

KPMG. (2019, July). The future of digital banking: Banking in 2030. https://home.kpmg/au/en/home/insights/2019/07/future-of-digital-banking-in-2030.html . Accessed October 26, 2019.

McKinsey. (2018, August). The lending revolution: How digital credit is changing banks from the inside . https://www.mckinsey.com/business-functions/risk/our-insights/the-lending-revolution-how-digital-credit-is-changing-banks-from-the-inside . Accessed October 26, 2019.

OnDeck. (2019). https://www.ondeck.com/home5-lendstart . Accessed October 26, 2019.

Quartz. (2019, August). Digital banks are racking up users, but will they ever make money ? https://qz.com/1679197/when-will-digital-banks-like-n26-and-revolut-start-making-money/ . Accessed october 26, 2019.

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Tardieu, H., Daly, D., Esteban-Lauzán, J., Hall, J., Miller, G. (2020). Case Study 7: The Digital Transformation of Banking—An Industry Changing Beyond Recognition. In: Deliberately Digital. Future of Business and Finance. Springer, Cham. https://doi.org/10.1007/978-3-030-37955-1_28

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Managing a customer-experience transformation in banking

Regulation. Fickle customer loyalties. Nontraditional competitors. As if a decade of razor-thin margins and reputation issues weren’t enough, the mix of challenges facing global banks makes it easy to see why so many now voice a commitment to improved customer experience as a legitimate differentiator in an increasingly competitive environment. Of the 50 largest global banks, three out of four now pledge themselves to some form of customer-experience transformation. 1 Analysis of the 50 largest global banks’ annual reports and investor presentations for the latest financial year; based on the S&P Global Market Intelligence list of banks by total assets.

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The benefits of such a strategy have been increasingly clear for some time across sectors and geographies. As practitioners like Amazon and Apple have demonstrated, real value resides not only in the products and services a company provides but also in the way that it delivers them. A seamless customer experience can be worth at least as much as a superior product or efficient process—building customer loyalty, reducing costs, making employees happier, and boosting revenues significantly. One bank that undertook a customer-experience transformation concluded that the lifetime profitability of a satisfied customer willing to actively recommend the bank to his or her friends was five to eight times greater than one who had a negative perception.

Many leading banks are pouring tremendous resources into transforming the customer experience , often with mixed results. This is understandable. A customer’s banking relationship includes key journeys that range from onboarding and transacting to maintenance and problem resolution. Effective transformations must not only recognize the complexity of these relationships but must also make a priority of the parts of the experience that matter most—in order to manage the cross-functional, end-to-end nature of customer needs rather than deferring to existing organizational structures.

Depending on a bank’s customer-experience goals, transformations can vary in regard to the time and resources required. In our experience, a handful of elements are necessary to execute any program that will deliver durable impact. These include, among other things, a consistent focus on value , ensuring the customer’s central role in any transformation, and the ability to scale a program. This article explores the ways that some banks have implemented these and other critical steps in constructing successful customer-experience transformations.

Remaking banking customer experience in response to coronavirus

Failure modes.

Customers are central to a wave of new opportunities and challenges facing banking executives, with regulators increasingly expecting banks to deliver on more than just credit-risk management and associated capital requirements. For example, regulators around the world increasingly examine customer complaints for examples of problematic sales practices and inadequate customer service. For the biggest banks, how they treat their customers is becoming more of a political issue, as any CEO who has been called before a congressional or parliamentary inquiry can attest.

Customers’ loyalty is also at risk. Banks face an expanding array of new competitors. The entry of companies like Alipay, Amazon Cash, Facebook Messenger P2P, WeChat, and other services skilled at customer ease and experience may, in the longer term, disintermediate traditional banks from customer relationships and reduce banks’ distribution margins. Another consequence is that players outside the traditional financial-services industry are starting to set the benchmarks for customer experience in banking. Internet retailers and other e-commerce players typically sit atop customer-satisfaction rankings. Banks often lumber in the middle of the pack.

As banks pour more effort into improving experience, we find three missteps to be the most likely culprits when efforts fall short of the mark. First, many banks ignore the need to achieve early, quick wins to demonstrate value and build momentum for change. Teams eager to achieve dramatic impact set out to create moments of customer delight and fix pain points across all journeys or processes at the same time and are often overwhelmed by the complexity and costs of redesign.

For example, one bank moved to fix its full mortgage journey in a single, focused effort. Despite a large investment of time and money, however, its gold-plated solution proved too complex to implement all at once. Early impact never materialized. As payback deadlines loomed, the team couldn’t deliver convincingly on redesigning complex systems, processes, or risk policies. Senior management balked at committing additional time and energy. The transformation never got off the ground and was ultimately abandoned.

Ironically, another way that customer-experience transformation efforts go awry is by leaving the customer out of a front-and-center focus in propelling a change effort. Despite the growing awareness of the value in superior customer experience, efforts to improve it are rarely held to the same rigor as an effort behind, say, a traditional productivity transformation. The customer’s voice is often left silent as change agents latch onto digitization to leapfrog competitors , self-service improvements, and revamped staffing models.

One payments player sought to improve its process of resolving customer disputes. It was considering a complete reworking of its technology to reduce processing time. However, after collecting customer feedback and conducting additional customer interviews, the company learned that the major pain point was not processing time but the lack of status updates customers received. By better understanding what was disturbing customers, the company was able to solve the problem with much less effort and with a greater likelihood of improving the experience.

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Finally, banks often fail to set up transformation programs with scaling in mind. In complex organizations it is easy for change efforts to get stuck in the depths of business silos, even when the objective is to create a cross-functional platform for tracking customer preferences and improving outcomes. Efforts that don’t give customer experience the same top-team and board attention as large-scale productivity-improvement efforts, and that don’t devote the same resources to oversight and measurement, risk lapsing into cursory efforts marked by meaningless bulletin-board slogans such as “customer experience is everyone’s job.”

Toward a durable transformation program

In our experience we’ve found banks increasingly finding success with “at scale” transformation efforts. These efforts define the bank as a series of customer journeys that can be reimagined and applied across functions and the organization as a whole. As value is demonstrated, larger and larger parts of the organization are included . In the early stages, such transformations take advantage of cross-functional teams that work within existing roles and in parallel with reporting structures. Over time, by emphasizing this type of agile collaboration, organizational structures can be revamped to deliver the new experiences sustainably over multiple years. The result is a transformation that delivers early impact and momentum and an opportunity to evolve as needs change, without the disruptive shock of tearing up an operating model in the fragile, early stages.

Every customer-experience transformation following such a model relies on certain prerequisites (Exhibit 1). These begin with a top-down, unwavering C-suite commitment to the program and to modeling the customer-experience behaviors that the organization espouses. They also include commitment to a bottom-up feedback loop to measure progress and involve employees in implementing and refining improvements. At the center of such efforts lies a dedication to a customer’s end-to-end experience with his or her bank—that is, the whole journey rather than individual, transactional touchpoints in the relationship. In turning that commitment into a successful business strategy for banks, we find five elements critical to implementing a superior customer-journey and experience transformation at scale.

Hard wire customer experience to value

The financial benefits of improving customer experience are clear. One bank found that customers willing to promote the bank were four times more likely than neutral customers to add additional products. These customers also typically see the bank as their main financial institution—a key driver of overall lifetime revenue. Many customer-experience programs are launched off the back of analyses such as this. However, few of these programs home in on where the value comes from. In addition, many do not hold themselves accountable to deliver greater profitability. Without a quantified link to value and a sound business case , transformation efforts can’t show early gains, build momentum among functional executives, or earn a seat at the executive team’s table.

To that end, we find it useful for banks to apply the same rigor of value attribution to customer experience as they do for productivity programs. One US payments company, for example, used fine-grained customer feedback, coupled with advanced analytics , to identify customer pain points that were driving problem calls to its call center. Managers selected the five customer journeys that drove about 20 percent of calls and redesigned them with the aim of eliminating all the calls. During implementation, the team realized that it had a broader opportunity for improving the vast majority of its customer-service interactions over a period of several years.

Stay agile to ensure scalability

While the overall transformation needs to be broken up into manageable work efforts, setting up for scale should be the goal from the first day. Too often, retail banks build oversize, bespoke teams and processes to address individual customer journeys with inadequate ways of collaborating across functions and measuring progress.

One global bank sought to take customer satisfaction to a higher level to break away from the competition. Managers set out to systematically reengineer key steps along customer journeys but found they were inhibited by the lack of a common language to define those journeys. Executives on the marketing side thought about life events, while product owners viewed the customer experience through the lens of purchasing products. Without a common language, the bank struggled to approach customer-experience transformation in a uniform way across functions, handcuffing efforts to collect the right facts to jointly identify and resolve pain points.

A breakthrough came when the team was able to collaboratively define a simple and pragmatic taxonomy arranged by products and across steps in the key banking customer journeys (Exhibit 2). The common language achieved could then be used to broaden the customer-experience transformation across multiple parts of the organization.

The next step was to then systematically redesign and reengineer the customer journeys at scale. In order to provide senior management with a consistent way of discussing the status of journey redesign, bank managers set out to define a common “maturity” model that could be applied across all journeys.

The maturity model addressed four key gates to pass through on the way to customer-experience improvement (Exhibit 3). The work at level one was to establish a fact base behind prioritized customer journeys, for example, understanding what truly drives customer experience and satisfaction in securing a home loan.

At the next level, the team defined an overall target for improving the journey and established an “agile studio” to stimulate solution ideas and execute improvements. Such sprints took place over periods of two to four weeks. At the third level, the team mapped pain points to the underlying elements for each critical step in the journey and their importance to overall customer experience. In this case, the real issue for customers was how the bank delivered the conversation about loan pricing. Against this deeper understanding of the sources of customer experience, the team was then able to put in place an iterative process of developing and testing rapid prototypes of minimum viable products and refining knowledge with each new application.

The end result: a set of actions that encouraged earlier, better conversations with the customer on price. Throughout the process, the team also continuously tracked impact via customer and employee feedback. Over a period of nine months, the bank registered a 15-point improvement in customer satisfaction for its home-loan journey, from a score of negative five to ten. 2 On a scale ranging from negative 100 to 100.

This bank’s story is not unique. Banks struggle to pursue customer-experience transformation amid the complexities of running their day-to-day business. But by combining a common taxonomy with a structured maturity model, it is possible to quickly identify customer pain points and to create minimum viable products. Agile, iterative testing then allows a team to test new approaches, learn from failure, and refine and start over again at a high metabolic rate. This approach can produce value early and provide the successes to build momentum and secure ongoing support from the organization.

Don’t forget the customer

Even banks that have thoughtfully created a flexible, iterative improvement process at times inadvertently overlook the most critical stakeholder: the customer. In the rush to digitally enable customer journeys and transform the customer experience, it’s easy to be swept away by a bias for technological solutions. But key customers can easily become skeptical about not having a human representative to call when things go wrong. The right balance requires study, but when interactions are new or particularly complex, the personal touch is still an important differentiator of customer service. Without an explicit link to and inclusion of the customer, no transformation will ever be fully right.

Customer Experience

Similarly, gathering and segmenting data are classic starting points in understanding customers. But data by themselves are insufficient. The most successful customer-experience efforts apply a human filter to collected information to address key questions about the motivations and wishes of customers. Some of the successful transformations we’ve observed have included customers in their design via a variety of techniques: structured interviews, customer panels, zero-based-design workshops, and executives spending time in call centers and branches to experience firsthand what customers encounter and to shape customer-centric responses.

Continuously push for more value

Improving customer journeys is not a linear process. Often the first round of initiatives will not deliver the desired satisfaction levels. Moving from good improvement to great will require regularly going back to the drawing board and maintaining patience and a mind-set of always pushing for more in the interest of customers. One European bank established a rhythm of regularly recurring customer-journey improvements. At the beginning of its customer-experience transformation, it identified and redesigned each of its most important journeys. Since then, it has reconvened its cross-functional customer-experience teams in regular intervals of 12 to 36 months, depending on the importance of the journey under review. In these “hot periods,” lasting several weeks, the teams react to all customer feedback that requires structural adjustments that are larger than can be handled alongside day-to-day operations. Concentrating this work effort in a cross-functional team is an effective way for the bank to regularly optimize journeys.

Such a continuous-improvement regimen can help foster a superior customer-experience mind-set. One way is at the front line, with employees closing the loop with customers on direct feedback, then using those insights to change the way the process is designed. A second benefit accrues from continuously improving service design. Product companies understand better than banks and other service organizations that using customer insights is a way to develop a superior product. But banks have rarely invested the same way in service design. Creating a pipeline of feedback and actions, rather than simply reporting metrics, is one way to ensure that the customer’s voice is always present in any transformation effort.

Establish a cross-functional team with C-suite backing

Transforming customer experience in a bank requires bringing stakeholders from distribution, product, risk, legal, pricing, and other departments to the table. Regular risks include potentially conflicting agendas or timelines. Resolving these barriers requires active sponsorship from the top.

Leaders in customer experience pursue a number of approaches to overcome this kind of complexity. One way is to set up a dedicated customer-experience organization within the bank. Dedicated teams encourage a continuous focus on customer experience across product, service, and geographical silos. In contrast, trying to fit customer-experience team members seamlessly into the existing organization can wind up emphasizing narrow customer touchpoints, which reduces effectiveness. In all cases, the CEO must make customer experience a priority, and in some cases the appointment of a chief customer officer can serve to underline that commitment.

The benefits of superior customer experience—bottom-line results and stronger customer and frontline-worker loyalty—are not lost on banks. By keeping a focus on the handful of elements central to successfully transforming customer journeys, banks can tap those benefits for durable competitive advantage.

Nicolas Maechler is a partner in McKinsey’s Paris office, Jonathan Michael is a partner in the Sydney office, Robert Schiff is a partner in the San Francisco office, and Thomas Rüdiger Smith is an associate partner in the Melbourne office.

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Journal of Enterprise Information Management

ISSN : 1741-0398

Article publication date: 23 November 2022

Issue publication date: 7 March 2023

The paper aims to help enterprises gain valuable knowledge about big data implementation in practice and improve their information management ability, as they accumulate experience, to reuse or adapt the proposed method to achieve a sustainable competitive advantage.

Design/methodology/approach

Guided by the theory of technological frames of reference (TFR) and transaction cost theory (TCT), this paper describes a real-world case study in the banking industry to explain how to help enterprises leverage big data analytics for changes. Through close integration with bank's daily operations and strategic planning, the case study shows how the analytics team frame the challenge and analyze the data with two analytic models – customer segmentation (unsupervised) and product affinity prediction (supervised), to initiate the adoption of big data analytics in precise marketing.

The study reported relevant findings from a longitudinal data analysis and identified some key success factors. First, non-technical factors, for example intuitive analytics results, appropriate evaluation baseline, multiple-wave implementation and selection of marketing channels critically influence big data implementation progress in organizations. Second, a successful campaign also relies on technical factors. For example, the clustering analytics could promote customers' response rates, and the product affinity prediction model could boost efficient transaction and lower time costs.

Originality/value

For theoretical contribution, this paper verified that the outstanding characteristics of online mutual fund platforms brought up by Nagle, Seamans and Tadelis (2010) could not guarantee organizations' competitive advantages from the aspect of TCT.

• Transaction cost theory
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He, W. , Hung, J.-L. and Liu, L. (2023), "Impact of big data analytics on banking: a case study", Journal of Enterprise Information Management , Vol. 36 No. 2, pp. 459-479. https://doi.org/10.1108/JEIM-05-2020-0176

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HDFC Bank Case Study 2021 – Industry, SWOT, Financials & Shareholding

by Jitendra Singh | Mar 4, 2021 | Case Study , Stocks | 1 comment

HDFC Bank Case Study and analysis 2021: In this article, we will look into the fundamentals of HDFC Bank, focusing on both qualitative and quantitative aspects. Here, we will perform the SWOT Analysis of HDFC Bank, Michael Porter’s 5 Force Analysis, followed by looking into HDFC Bank’s key financials. We hope you will find the HDFC Bank case study helpful.

Disclaimer: This article is only for informational purposes and should not be considered any kind of advisory/advice.  Please perform your independent analysis before investing in stocks, or take the help of your investment advisor. The data is collected from  Trade Brains Portal .

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About HDFC Bank and its Business Model

Incorporated in 1994, HDFC Bank is one of the earliest private sector banks to get approval from RBI in this segment. HDFC Bank has a pan India presence with over 5400+ banking outlets in 2800+ cities, having a wide base of more than 56 million customers and all its branches interlinked on an online real-time basis.

HDFC Limited is the promoter of the company, which was established in 1977. HDFC Bank came up with its 50 crore-IPO in March 1996, receiving 55 times subscription. Currently, HDFC Bank is the largest bank in India in terms of market capitalization (Nearly Rs 8.8 Lac Cr.). HDFC Securities and HDB Financial Services are the subsidiary companies of the bank.

HDFC Bank primarily provides the following services:

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• Retail Banking (Loan Products, Deposits, Insurance, Cards, Demat services, etc.)
• Wholesale Banking (Commercial Banking. Investment Banking, etc.)
• Treasury (Forex, Debt Securities, Asset Liability Management)

HDFC Bank Case Study – Industry Analysis

There are 12 PSU banks, 22 Private sector banks, 1485 urban cooperative banks, 56 regional rural banks, 46 foreign banks and 96,000 rural cooperative banks in India. The total number of ATMs in India has constantly seen a rise and there are 209,110 ATMs in India as of August 2020, which are expected to further grow to 407,000 by the end of 2021.

In the last four years, bank credit recorded a growth of 3.57% CAGR, surging to $1698.97 billion as of FY20. At the same time, deposits rose with a CAGR of 13.93% reaching $1.93trillion by FY20. However, the growth in total deposits to GDB has fallen to 7.9% in FY20 owing to pandemic crises, which was above 9% before it.

Due to strong economic activity and growth, rising salaries, and easier access to credit, the credit demand has surged resulting in the Credit to GDP ratio advancing to 56%. However, it is still far less than the developed economies of the world. Even in China, it is revolving around 150 to 200%.

As of FY20, India’s Retail lending to GDP ratio is 18% , whereas in developed economies (US, UK) it varies between 70% – 80%).

Michael Porter’s 5 Force Analysis of HDFC Bank

1. rivalry amongst competitors.

• The banking sector has evolved very rapidly in the past few years with technology coming in, and now it is not only limited to depositing and lending but various categories of loans and advances, digital services, insurance schemes, cards, broking services, etc.; hence, the banks face stiff competition from its rivals.

2. A Threat by Substitutes

• For services like mutual funds, investments, insurances, categorized loans, etc., banks are not the only option these days because a lot of niche players have put their foot in the specialized category, surging the threat by substitutes for the banks.
• Another threat for the traditional banks is NEO Banks. The  Neo Banks  are virtual banks that operate online, are completely digital, and have a minimum physical presence.

3. Barriers to Entry

• Banks run in a highly regulated sector. Strict regulatory norms, huge initial capital requirements and winning the trust of people make it very tough for new players to come out as a national level bank in India. However, if a company enters as a niche player, there are relatively fewer entry barriers.
• With RBI approving the functioning of new small finance banks, payment banks and entry of foreign banks, the competition has further intensified in the Indian banking sector.

4. Bargaining Power of Suppliers

• The only supply which banks need is capital and they have four sources for the capital supply viz. deposits from customers, mortgage securities, loans, and loans from financial institutions. Customer deposits enjoy higher bargaining power as it is totally dependent on income and availability of options.
• Financial Institutions need to hedge inflation, and banks are liable to the rules and regulations of the RBI which makes them a safer bet; hence, they have less bargaining power.

5. Bargaining Power of Customers

• In modern days, customers not only expect proper banking but also the quality and faster services. With the advent of digitalization and the entry of new private banks and foreign banks, the bargaining power of customers has increased a lot.
• In terms of lending, creditworthy borrowers enjoy a high level of bargaining power as there is a large availability of banks and NBFCs which are ready to offer attractive loans and services at low switching and other costs.

HDFC Bank Case Study – SWOT Analysis

Now, moving forward in our HDFC Bank case study, we will perform the SWOT analysis.

1. Strengths

• Currently, HDFC Bank is the leader in the retail loan segment (personal, car and home loans) and credit card business, increasing its market share each year
• The HDFC tag has become a sign of trust in the people as HDFC has come out as a pioneer not only in banking, but loans, insurances, mutual funds, AMC and brokerage.
• HDFC Bank has always been an institution of its words as it has, without fail, delivered its guidance and this has created a strong brand loyalty in the market for them.
• HDFC Bank has very well leveraged the technology to help its profitability, only 34% transaction via Internet Banking in 2010 to 95% transaction in 2020.

2. Weaknesses

• HDFC bank doesn’t have a significant rural presence as compared to its peers. Since its inception, it has focused mainly on high-end clients. However, the focus is shifting in the recent period as nearly 50% of its branches are now in semi-urban and rural areas.

3. Opportunities

• The average age of the Indian population is around 28 years and more than 65% of the population is below 35, with increasing disposable income and rising urbanization, the demand for retail loans is expected to increase. HDFC Bank, being a leader in retail lending, can make the best out of this opportunity.
• With modernization in farming and a rise in rural and semi-urban disposable income, consumer spending is expected to rise. HDFC Bank can increase its market share in these segments by grabbing this opportunity. Currently, the bank has only 21% of the branches in rural areas.
• A lot of niche players have set up their strong branches in respective segments, which has shown stiff competition and has shrined the market share and profit margin for the company. Example – Gold Loans, Mutual Funds , Brokerage, etc.
• In-Vehicle Financing (which is HDFC Bank’s major source of lending income), most of the leading vehicle companies are providing the same service, which is a threat to the bank’s business.

Asian Paints Case Study 2021 – Industry, SWOT, Financials & Shareholding

HDFC Bank’s Management

HDFC Bank has set high standards in corporate governance since its inception.

Right from sticking to their words to proper book writing, HDFC has never compromised with the banking standards, and all the credit goes to Mr. Aditya Puri, the man behind HDFC Bank, who took the bank to such great heights that today its market capitalization is more than that of Goldman Sachs and Morgan Stanley of the US.

In 2020, after 26 years of service, he retired from his position in the bank and passed on the baton of Managing Director to Mr. Shasidhar Jagadishan. He joined the bank as a Manager in the finance function in 1996 and with an experience of over 29 years in banking, Jagadishan has led various segments of the sector in the past.

Financial Analysis of HDFC Bank

• 48% of the total revenue for HDFC bank comes from Retail Banking, followed by Wholesale Banking (27%), Treasury (12%), and 13% of the total comes from other sources.
• Industries receive a maximum share of loans issued by HDFC bank, which is 31.7%, followed by Personal Loans and Services both at a 28.7% share of the total. Only 10.9% of the total loans are issued to Agricultural and allied activities.
• HDFC Bank has a 31.3% market share in credit card transactions, showing a growth of 0.23% from the previous fiscal year, which makes it the market leader, followed by SBI.
• HDFC Bank is the market leader in large corporate Banking and Mid-Size Corporate Banking with 75% and 60% share respectively.
• In Mobile Banking Transaction, the market share of HDFC bank is 11.8%, which has seen a degrowth of 0.66% in the current fiscal year.
• With each year, HDFC Bank has shown increasing net profit, which makes the 1-year profit growth (24.57%) greater than both 3-year CAGR (21.75%) and 5-year CAGR (20.78%).

• Capital Adequacy Ratio, which is a very important figure for any bank stands at 18.52% for HDFC Bank.
• As of Sept 2020 HDFC, is at the second position in bank advances with a 10.1% market share, which has shown a rise from 9.25% a year ago. SBI tops this list with a 22.8% market share, Bank of Baroda is at the third spot with a 6.68% share, followed by Kotak Mahindra Bank (6.35%).
• HDFC Bank is again at the second spot in the market share of Bank deposits with 8.6%. SBI leads with a nearly 24.57% market share. PNB holds 7.5% of the market share in this category, coming out as the third followed by Bank of Baroda with 6.89%.

HDFC Bank Financial Ratios

1. profitability ratios.

• As of FY20, the net profit margin for the bank stands at 22.87%, which has seen a continuous rise for the last 4 fiscal years. This a very positive sign for the bank’s profitability.
• The Net Interest Margin (NIM) has been fluctuating from the range of 3.85% to 4.05% in the last 5 fiscal years. Currently, it stands at 3.82% as of FY20.
• Since FY16, there has been a constant fall in RoE, right from the high of 18.26% to 16.4% as of FY20.

• RoA has been more or less constant for the company, currently at 1.89%, which is a very positive sign.

2. Operational Ratios

• Gross NPA for the bank has fallen from FY19 (1.36) to 1.26, which a positive sign for the company. A similar improvement is also visible in the Net NPA, currently standing at 0.36.
• The CASA ratio for the bank is 42.23%, which has been seeing a continuous fall since FY17 (48.03%). However, there has been a spike rise in FY17 as in FY16, it was 43.25 and in FY18, again came to the almost same level of 43.5.
• In FY19, Advance Growth witnessed a massive spike from 18.71 level in FY18 rising to 24.47%. However, in FY20, it again fell nearly 4 points, coming down to 21.27%.

HDFC Bank Case Study – Shareholding Pattern

• Promoters hold 26% shares in the bank, which has been almost at the same level for the last many quarters. In the December quarter a years ago, the promoter holding was 26.18%. The marginal fall is only due to Aditya Puri retiring and selling few shares for his post-retirement finance, which he stated.
• FIIs own 39.95% shareholding in the bank, which has been increasing for years in every quarter. HDFC bank has been a darling share in the investor community.
• 21.70% of shares are owned by DIIs as of December Quarter 2020. Although it is less than the SeptQ2020(22.90%), it is still far above the year-ago quarter (21.07).
• Public holding in HDFC bank is 12.95% as of Dec Q2020, which has tanked from the year-ago quarter (14.83%) as FIIs increasing their share, which is evident from the rising share prices.

Closing Thoughts

In this article, we tried to perform a quick HDFC Bank   case study. Although there are still many other prospects to look into, however, this guide would have given you a basic idea about HDFC Bank.

What do you think about HDFC Bank fundamentals from the long-term investment point of view? Do let us know in the comment section below. Take care and happy investing!

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Top 10 Banking Cybersecurity Case Studies [2024]

In an era where digital threats are becoming increasingly sophisticated, the banking sector faces unique cybersecurity challenges that require robust and innovative solutions. This article explores five compelling bank case studies, each demonstrating strategic responses to cyber threats. These examples highlight the complexities of protecting financial data and showcase how adopting advanced security measures can fortify institutions against the evolving landscape of cyber risks. By examining these real-world scenarios, we aim to provide valuable insights into the strategies that lead to successful cybersecurity outcomes in the banking industry.

1. Enhancing Cybersecurity Measures at Global Bank Corp

Company profile.

Global Bank Corp, headquartered in New York City, is a prominent financial institution established in 1922. The bank manages over $2 trillion in assets and serves millions of customers worldwide, including individuals, corporations, and governments. Known for its robust financial services, ranging from investment banking to consumer finance, Global Bank Corp prides itself on its innovative banking approach and commitment to customer security. With a global workforce exceeding 100,000, the bank is an integral part of the global financial system.

Global Bank Corp identified an increasing trend in sophisticated cyber threats targeting the financial sector. These threats included advanced persistent threats (APTs), phishing attacks, and ransomware aimed at stealing sensitive customer data and disrupting financial operations. The nature of these attacks not only threatened the privacy and assets of the bank’s clients but also posed severe risks to the bank’s reputation and operational stability. The challenge was compounded by the bank’s vast digital footprint and the need to comply with stringent regulatory requirements across different jurisdictions.

Global Bank Corp launched an extensive cybersecurity overhaul to tackle these emerging threats effectively. The cornerstone of this initiative was establishing a next-generation Security Operations Center (SOC) equipped with the latest in threat intelligence and incident response technologies. The bank employed artificial intelligence algorithms to swiftly identify irregular patterns and security lapses, outpacing traditional detection methods. Furthermore, Global Bank Corp implemented multi-factor authentication and end-to-end encryption across all digital platforms to secure client transactions and data. They initiated a comprehensive employee education initiative centered on enhancing cybersecurity awareness and promoting security best practices. Strategic partnerships with leading cybersecurity firms allowed the bank to stay ahead of emerging cyber threats through continuous updates and adaptive security measures.

Implementing these advanced cybersecurity measures significantly enhanced Global Bank Corp’s defensive capabilities. The bank observed an 80% reduction in successful phishing attempts and a substantial decrease in vulnerability exploits. The strengthened security protocols improved compliance with global financial regulations, minimizing legal and financial risks associated with cyber incidents. This proactive cybersecurity strategy protected customers’ assets and reinforced Global Bank Corp’s reputation as a secure and trustworthy institution. The successful overhaul of their cybersecurity landscape has set a new industry standard, showcasing the critical importance of cybersecurity in safeguarding the financial sector’s integrity.

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2. Bolstering Cyber Resilience at Continental Bank

Based in London, United Kingdom, Continental Bank is a distinguished leader in the global banking sector, established in the early 1900s. Managing assets exceeding $1.5 trillion, Continental Bank offers various financial services, including personal banking, corporate finance, asset management, and more. The bank serves a diverse clientele across Europe, Asia, and the Americas, employing over 80,000 people worldwide. Known for its dedication to innovation and client care, Continental Bank has always led the way in adopting innovative technologies within its operations.

Continental Bank faced increasing cybersecurity threats characterized by sophisticated tactics such as spear-phishing, malware attacks, and data breaches, specifically targeting high-net-worth individuals and corporate accounts. The rapid evolution of cyber-attack methodologies and Continental Bank’s extensive digital services exposed critical vulnerabilities in their cybersecurity framework. This posed severe risks to customer data privacy and financial security and could potentially lead to significant reputational damage. Additionally, the bank needed to align its cybersecurity practices with the stringent regulatory standards required in its various jurisdictions.

To counter these threats, Continental Bank launched a strategic cybersecurity enhancement initiative. Central to this initiative was developing an advanced Cyber Threat Intelligence Unit (CTIU), which utilized artificial intelligence and machine learning to predict and neutralize threats in real time. The bank also developed a comprehensive endpoint security solution to protect its network endpoints against advanced attacks. This was complemented by deploying blockchain technology to secure transactions and customer data with immutable records, significantly reducing the risk of data tampering and fraud.

Recognizing the importance of human factors in cybersecurity, Continental Bank implemented a mandatory cybersecurity training program for all employees, focusing on identifying phishing attempts and secure data handling practices. The bank also introduced regular simulated cyber-attack drills to prepare and evaluate the staff’s response to real-world cyber incidents. These measures were supported by continuous audits and updates to the cybersecurity protocols to ensure compliance with the latest security standards.

The proactive cybersecurity strategies adopted by Continental Bank led to a marked improvement in their overall cyber resilience. The bank reported a 75% reduction in incident response times and a significant decrease in successful cyber attacks. Enhanced security measures and training programs led to heightened alertness among employees, drastically reducing the incidence of human error-related security breaches. Adherence to global regulatory norms improved, boosting confidence among stakeholders and clients. The comprehensive cybersecurity strategy not only protected the bank’s essential assets but also reinforced Continental Bank’s status as a trustworthy and secure institution. This commitment to cybersecurity has positioned Continental Bank as a leader in financial security innovation, influencing broader industry practices and standards.

3. Cybersecurity Transformation at Pacific Trust Bank

Pacific Trust Bank, headquartered in San Francisco, California, has been a significant player in the American banking landscape since its establishment in 1960. The bank manages over $900 billion in assets and serves a substantial customer base comprising individuals, small businesses, and large corporations. Pacific Trust Bank is renowned for its customer-centric services, offering various products from conventional banking to investment services. With around 50,000 employees across its branches, the bank has continually embraced technological innovations to enhance service delivery and security.

Pacific Trust Bank faced a dual challenge of increasingly sophisticated cyber-attacks and growing regulatory compliance demands. The bank had been a target for cybercriminals using tactics such as credential stuffing, ransomware, and social engineering to infiltrate its systems. These threats not only jeopardized the privacy and security of client data but also threatened to undermine the bank’s compliance with financial regulations, potentially incurring hefty fines and damaging its standing in the financial community.

Pacific Trust Bank initiated a comprehensive cybersecurity overhaul in response to these challenges. The first step was implementing a robust multi-factor authentication (MFA) system across all digital customer touchpoints, significantly enhancing the security of online transactions and data access. The bank also integrated advanced behavioral analytics to monitor and analyze user behavior for signs of anomalous activities, which could indicate a security breach.

Furthermore, Pacific Trust Bank developed a partnership with a leading cybersecurity firm to deploy an enterprise-grade firewall and intrusion detection system (IDS) that provided real-time insights and defenses against potential cyber threats. The bank established a dedicated in-house cybersecurity team responsible for continuous monitoring, incident response, and ongoing security assessments to bolster its cybersecurity workforce. Pacific Trust Bank launched a bank-wide cybersecurity awareness campaign to reinforce these technological advances, educating employees about potential cyber threats and their role in preventing them. This included regular workshops, simulated phishing exercises, and the latest cybersecurity trends and practices updates.

The strategic cybersecurity initiatives implemented by Pacific Trust Bank led to a significant enhancement of its security posture. There was a 90% reduction in the frequency of security incidents, and the new systems successfully thwarted multiple high-profile cyber-attack attempts. Enhanced security protocols boosted consumer confidence and trust, essential for maintaining and expanding the customer base in a competitive market. Additionally, the rigorous compliance with regulatory standards mitigated legal risks and solidified Pacific Trust Bank’s reputation as a secure and responsible financial institution.

Related: Is Banking a Stressful Job?

4. Advanced Cyber Defense Initiative at EuroFinance Bank

EuroFinance Bank, based in Frankfurt, Germany, is one of Europe’s oldest and most respected banking institutions, with roots dating back to 1884. In managing assets worth over €1 trillion, EuroFinance Bank caters to many clients across Europe, including governments, multinational corporations, and private individuals. The bank employs approximately 30,000 staff and operates a network of branches and digital platforms, offering comprehensive banking and financial advisory services.

EuroFinance Bank identified a significant vulnerability in its cyber defenses, primarily due to outdated security infrastructure and the increasing sophistication of cyber-attacks targeted at the financial sector. These vulnerabilities were particularly acute in mobile banking and digital payments, where the intersection of high transaction volumes and sensitive customer data presented attractive targets for cybercriminals. The bank needed to address these challenges to prevent potential data breaches, financial fraud, and loss of customer trust.

EuroFinance Bank embarked on an ambitious project to modernize its cybersecurity infrastructure. This project focused on enhancing digital payment security by implementing state-of-the-art cryptographic solutions and secure socket layer (SSL) protocols to protect data in transit. The bank also adopted cloud-based security solutions, providing scalable and robust defenses against various cyber threats.

An integral part of their strategy was the introduction of an AI-driven security platform that leveraged machine learning to detect and respond to security anomalies in real-time. EuroFinance Bank also established a new protocol for rapid incident response and recovery, which included automated systems for immediate threat neutralization and recovery processes to minimize downtime and service disruption. To ensure the effectiveness of these technological tools, EuroFinance Bank invested in comprehensive training programs for all employees, focusing on cybersecurity best practices and the importance of maintaining a secure digital environment. The bank also initiated regular security audits and penetration testing conducted by external experts to continuously assess and refine their security measures.

The cybersecurity overhaul at EuroFinance Bank yielded substantial improvements. The enhanced security measures significantly reduced the incidence of cyber-attacks, with a reported decrease of over 85% in attempted data breaches. The advanced security protocols around digital payments fortified the bank’s defenses against transactional fraud, instilling greater confidence among clients using digital banking services. EuroFinance Bank’s proactive approach safeguarded its operational integrity and client data and reinforced its reputation as a leader in banking security within the financial industry.

5. Cybersecurity Revamp at Heritage Banking Group

Heritage Banking Group, founded in 1932 and headquartered in Toronto, Canada, is a key player in the North American banking sector. With assets under management exceeding CAD $800 billion, Heritage Banking Group provides diverse financial services, including retail banking, commercial lending, and wealth management. It operates more than 1,200 branches across Canada and the United States and employs over 70,000 staff. The bank has consistently prioritized customer service and innovation, embracing new technologies to enhance user experience and operational efficiency.

Heritage Banking Group was confronted with an escalating series of cyber threats that targeted the bank’s infrastructure and its customers. These threats included sophisticated phishing schemes, malware attacks, and insider threats that sought to compromise sensitive data and disrupt financial transactions. Increased adoption of mobile banking by consumers broadened the potential for security risks, introducing fresh challenges. This situation posed a risk to customer confidence and data security and threatened to impact the bank’s compliance with international financial regulations.

In response to these cybersecurity challenges, Heritage Banking Group initiated a strategic overhaul of its cybersecurity protocols. A pivotal element of this strategy was the deployment of a sophisticated fraud detection system that leveraged artificial intelligence to spot and halt fraudulent activities instantly. The bank also implemented a secure API gateway to protect data exchanges between the bank’s apps and services, ensuring that all data transfers met the highest security standards.

To tackle the risk of insider threats, Heritage Banking Group introduced a comprehensive data access management system, which strictly controlled and monitored access to sensitive information based on roles and responsibilities. Additionally, the bank rolled out biometric authentication technologies for employees and customers, enhancing security measures for access to physical and digital assets. Recognizing the importance of a proactive security posture, Heritage Banking Group established a Cybersecurity Fusion Center, a hub for all cybersecurity activities. This center combined threat intelligence, incident response, and cybersecurity operations to enable a coordinated and agile response to potential cyber threats. The bank also launched regular cybersecurity awareness and training programs for all staff, emphasizing each employee’s critical role in maintaining security.

The comprehensive cybersecurity measures adopted by Heritage Banking Group significantly strengthened its defense mechanisms against a wide array of cyber threats. The new fraud detection systems led to a 60% reduction in reported fraud cases, while the secure API gateways minimized potential data breaches. Introducing biometric security measures significantly reduced unauthorized access incidents, enhancing the security of customer accounts and sensitive bank data.

These improvements profoundly impacted customer trust, evidenced by increased engagement with the bank’s digital platforms. Furthermore, the advanced security measures ensured that Heritage Banking Group fully complies with national and international regulatory standards, preserving its reputation as a secure and reliable banking institution. This strategic focus on cybersecurity protected the bank’s assets and positioned Heritage Banking Group as an industry leader in cybersecurity innovation within the financial sector.

Related: How to Build a Career in Investment Banking?

6. Spear-phishing Attack Prevention at JP Morgan Chase

JP Morgan Chase, headquartered in New York City, is one of the largest and most influential financial entities globally, managing assets worth approximately $3.7 trillion. The bank offers a comprehensive array of services, including personal banking, corporate finance, investment services, and asset management, serving a diverse clientele across multiple continents. It is recognized for its robust security approach and commitment to leveraging cutting-edge technology to safeguard its operations.

In an age characterized by advanced cyber threats, JP Morgan Chase encountered a formidable obstacle in the form of targeted spear-phishing attacks. These attacks involved highly targeted and deceptive communications that aimed to trick employees into exposing sensitive information such as login credentials and access to financial systems. Given the sophisticated nature of these attacks, they represented a potent threat to the integrity of the bank’s security protocols, posing risks of data breaches, financial loss, and considerable damage to its reputation.

JP Morgan Chase adopted a comprehensive and proactive approach to mitigate spear-phishing risks. The cornerstone of this strategy was implementing an advanced email security system that utilized state-of-the-art machine learning algorithms to identify and filter out malicious emails. This system could analyze email content for phishing indicators, thereby preventing many attacks before they could reach employee inboxes.

Alongside technological solutions, JP Morgan Chase bolstered its defenses through employee education. The bank instituted a widespread cybersecurity awareness program that included regular training sessions, simulations of phishing scenarios, and communications on the latest phishing techniques and trends. This program aimed to equip employees with the necessary skills and knowledge to effectively recognize and report phishing attempts.

At JP Morgan Chase, the successful execution of sophisticated email filtering technology alongside extensive employee training resulted in a significant reduction in both the frequency and impact of spear-phishing attacks targeting the bank. This two-pronged defense mechanism safeguarded crucial data and fostered a culture of cybersecurity consciousness and alertness among the employees. This proactive stance on cybersecurity reinforced JP Morgan Chase’s reputation as a secure and trustworthy financial institution committed to protecting its stakeholders from emerging cyber threats.

7. Defense Against DDoS Attacks at HSBC

HSBC, headquartered in London, UK, ranks as one of the world’s leading banking and financial services companies, with operations spanning 64 countries and territories and assets totaling over $2.9 trillion. Renowned for its extensive global presence and commitment to technological innovation, HSBC serves a broad spectrum of clients, including individuals, businesses, and governments. The bank’s strategy strongly focuses on maintaining high customer service and security standards.

HSBC was increasingly targeted by distributed denial-of-service (DDoS) attacks, a cyber threat designed to overwhelm the bank’s network infrastructure and disrupt its online services. These attacks aimed to flood the servers with excessive internet traffic, causing slowdowns or complete outages, which prevented legitimate users from accessing their accounts and conducting transactions. The frequency and complexity of these attacks required HSBC to adopt a more robust cybersecurity approach to protect its operations and maintain customer confidence.

To effectively counter these threats, HSBC embarked on a comprehensive upgrade of its network defenses. The bank implemented state-of-the-art DDoS mitigation tools that could detect unusual traffic flows and respond automatically to neutralize threats before they could impact server performance. These tools included real-time traffic analysis, automated response mechanisms, and adaptive rate-limiting techniques designed to absorb and reroute malicious traffic.

Additionally, HSBC enhanced its infrastructure by adopting a more resilient network architecture. This included the deployment of redundant network pathways and servers strategically located across different geographies, ensuring that even if one part of the network was attacked, other parts could handle the increased load without affecting overall service availability.

The proactive cybersecurity measures implemented by HSBC proved highly effective. The bank saw a drastic reduction in the frequency and impact of DDoS attacks. Online banking services remained operational, with minimal disruption during attack attempts, preserving the trust and satisfaction of HSBC’s customers. This strengthened network defense protected critical financial services and showcased HSBC’s commitment to maintaining leading-edge security practices in the face of evolving cyber threats. The success of these initiatives has further solidified HSBC’s reputation as a reliable and secure banking institution in the global financial landscape.

Related: FinTech vs Investment Banking

8. Insider Threat Management at Deutsche Bank

Company  profile.

Deutsche Bank, headquartered in Frankfurt, Germany, is a leading global financial institution providing diverse services such as corporate finance, investment banking, and asset management. It operates in more than 58 countries, holding a notable position in the international financial market. It oversees trillions of dollars in assets and has many finance professionals working globally. Known for its rigorous adherence to regulatory standards and an innovative approach to banking, Deutsche Bank continuously seeks to enhance its operational security and risk management practices.

The rise in insider threats represented a critical challenge for Deutsche Bank, manifesting in various forms such as data leaks, financial fraud, and other malicious activities initiated within the organization. These threats were difficult to detect and posed severe risks to the bank’s operational integrity, customer trust, and compliance with stringent international banking regulations. Addressing these vulnerabilities was paramount to prevent potential financial losses and reputational damage.

Deutsche Bank implemented robust measures to enhance its internal security protocols in response to the growing insider threat landscape. This initiative began with integrating an advanced access control system that enforced strict authentication and authorization policies across all sensitive systems. The bank implemented advanced monitoring technologies that utilized artificial intelligence and machine learning to scrutinize employee behaviors and identify abnormal patterns that may signal potential security violations.

Moreover, Deutsche Bank established a comprehensive insider threat program that included regular security audits, enhanced surveillance of critical data assets, and rigorous background checks for all employees. The program also featured continuous training and awareness campaigns that educated staff on the importance of security, the indicators of insider threats, and the procedures for reporting suspicious activities.

The measures implemented by Deutsche Bank significantly mitigated the risks associated with insider threats. By tightening access controls and employing sophisticated behavioral analytics, the bank could detect and respond to unusual activities more swiftly and effectively. The insider threat program reduced the incidence of internal security breaches and strengthened the overall security culture within the organization. The enhancements strengthened the bank’s standing for security and dependability, confirming its dedication to safeguarding its resources and upholding the confidence of its customers and stakeholders.

9. Mobile Banking Security Enhancement at Bank of America

Bank of America, with its headquarters in Charlotte, North Carolina, is a prominent financial institution in the United States, catering to more than 66 million consumers and small businesses globally. The bank is involved in various financial services sectors, such as retail banking, wealth management, and investment banking. With a rich history and a robust global presence, Bank of America is committed to providing secure and innovative financial solutions to its diverse clientele.

As mobile banking continued to grow in popularity, Bank of America faced increasing security challenges related to its mobile banking applications. The proliferation of mobile banking provided convenience to customers but also introduced significant security risks, such as unauthorized access, data theft, and fraudulent transactions. The challenge was enhancing mobile banking operations’ security without compromising user experience and accessibility.

Bank of America implemented advanced security measures designed for its mobile banking platforms to address these challenges. One of the key initiatives was the introduction of biometric authentication technologies, including fingerprint scanning and facial recognition, which provided a more secure and user-friendly method of accessing banking services than traditional passwords.

Additionally, the bank adopted secure coding practices for its mobile applications to protect against vulnerabilities that cyber attackers could exploit. These practices were complemented by regular security assessments and updates to ensure the mobile apps remained protected against new threats.

Furthermore, Bank of America launched a real-time fraud detection system that monitored transactions for suspicious activity. This system utilized machine learning algorithms to analyze transaction patterns and flag anomalies that could indicate fraud, allowing the bank to respond quickly and prevent potential losses.

The enhancements to mobile banking security at Bank of America significantly reduced unauthorized access and fraud incidents. The integration of biometric authentication has significantly enhanced the security of mobile banking while also boosting user satisfaction through its streamlined user experience. The proactive security measures ensured that the bank’s mobile platforms remained robust and trustworthy, enabling Bank of America to maintain a competitive edge in the digital banking space while ensuring the safety and confidence of its customers.

Related: Investment Banking Interview Questions

10. Regulatory Compliance and Cyber Risk Management at Standard Chartered

Standard Chartered, headquartered in London, UK, is a prominent global banking group with significant operations across Asia, Africa, and the Middle East. Managing assets worth over $720 billion, Standard Chartered offers various services, including corporate banking, private banking, and treasury and securities services. Known for its strong focus on emerging markets, the bank prioritizes compliance with international financial regulations and maintaining high cybersecurity standards to protect its clients’ interests.

Standard Chartered faced complex challenges related to compliance with various financial regulations across different jurisdictions and the need to manage escalating cybersecurity risks. The dynamic nature of cyber threats and the stringent regulatory requirements made it imperative for the bank to adopt a holistic approach to cyber risk management aligned with global compliance standards.

Standard Chartered developed a centralized compliance management system that integrated cybersecurity measures with regulatory compliance processes to tackle these challenges effectively. This system utilized advanced analytics to monitor compliance levels and identify potential breaches before they could occur.

In addition to the compliance system, Standard Chartered enhanced its cybersecurity infrastructure by adopting a layered security approach. This included deploying sophisticated encryption technologies, robust access controls, and continuous monitoring systems that provided real-time alerts on potential cyber threats. The bank also established a dedicated compliance and cybersecurity team to ensure that all regulatory requirements were met and that the cybersecurity measures were always up to date with the latest industry standards.

The comprehensive strategies implemented by Standard Chartered significantly strengthened its regulatory compliance and cybersecurity posture. The centralized management system allowed the bank to efficiently manage its compliance obligations and mitigate risks associated with non-compliance. Moreover, the enhanced cybersecurity measures reduced the frequency and impact of cyber incidents, protecting sensitive customer data and maintaining trust among clients and stakeholders. These proactive efforts safeguarded Standard Chartered’s operational integrity and reinforced its reputation as a secure and compliant banking institution in the competitive global market.

The case studies presented in this article underline the critical importance of proactive cybersecurity measures in safeguarding the banking sector’s integrity. From enhancing digital payment security to implementing cutting-edge fraud detection systems, these banks have demonstrated that a comprehensive approach to cybersecurity can substantially mitigate risks and enhance trust among customers. As cyber threats continue to evolve, the lessons drawn from these examples are invaluable for any financial institution aiming to bolster its cyber defenses and maintain its reputation in an increasingly digital world.

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Merger and Acquisition in Indian Banking Sector: A Case Study of Bank of Baroda

18 Pages Posted: 1 Feb 2022

Dr. Chetan Kashyap

Landmark Institute of Management and Technology

Date Written: December 8, 2021

Now a days, Mergers and acquisitions in the Banking sector are very important for the growing of Indian Banking Sector. This can be achieved through Cost Reduction and Increasing Revenue. Merger and acquisition emerge as a reality. Bank mergers are one of the strategies for strengthening the Indian Economy by enhancing the banking sector. The Government of India is pursuing the policy of amalgamating public-sector bank. On 1 April 2019, the merger of Vijaya Bank and Dena Bank with the Bank of Baroda came into effect. After the merger, Bank of Baroda became the third largest bank and second largest public sector bank to serving banking and strengthening the Indian Economy This research paper looks at Mergers and Acquisitions (M&A’s) that have happened in Indian banking sector to understand the resulting synergies and the long term implications of the merger. The paper also analyses recent trends in banks regarding the Mergers and Acquisitions. The study covers the reasons for bank Mergers and Acquisitions in Indian banking sector. It also studies Bank of Baroda and its Associates merger with Vijaya Bank and Dena bank, the timeline of merger and acquisition of BOB, effects of Mega merger on BOB and analyzing the Operational and financial performance of Bank of Baroda through Pre and Post-Merger period with the help of various parameters. The findings suggest that to some extent M&A’s has been successful in Indian banking sector. The conclusion of this study that the mergers of BOB would help in better management of capital. Along with merger the focus should be on adequate reforms in governance and management of these banks. Finally the area of service is more widened due to merger. Bank of Baroda has experienced positive impact due to merger. This comparative study includes data was collected from secondary sources such as websites, articles and annual reports and analysis has been shown with the help of charts.

Keywords: Corporate Finance, Corporate Governance

JEL Classification: G34

Suggested Citation: Suggested Citation

Dr. Chetan Kashyap (Contact Author)

Landmark institute of management and technology ( email ), do you have a job opening that you would like to promote on ssrn, paper statistics, related ejournals, emerging markets: finance ejournal.

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--> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> --> -->   -->   1 | 2 | 3 | 4 Next >> Industry Wise Case Studies Case related links. Detailed Subject-wise Listing Company-wise Listing Case Study Method Best Selling Case Studies Prize Winning Case Studies ICMR Cases Used in Textbooks Institutions Using ICMR Cases ICMR News IBS Center for Management Research (ICMR), IFHE Campus, Donthanapally, Sankarapally Road, Hyderabad-501 504, Andhra Pradesh, INDIA. Ph: +91- 8417- 236667, E-mail: [email protected] All rights reserved. Is Design Thinking the new DNA of the Banking Sector? Design Thinking has been successfully used to create new value and solve complex problems in Banking by corporations such as Bank of America, BBVA, Citibank and Capital One. Design thinking has become increasingly popular in the banking industry as banks look to improve their customer experience and stay competitive in a rapidly changing market. Design thinking is a human-centered approach to problem-solving that emphasizes empathy, collaboration, and experimentation. It involves understanding customer needs, generating ideas, prototyping solutions, and testing them in the real world. There have been both successes and failures in the application of design thinking in banking. Some banks have successfully used design thinking to develop innovative products and services that meet the changing needs of their customers. For example, BBVA Bank in Spain used design thinking to develop its mobile banking app, which has been highly successful in attracting and retaining customers. The app is user-friendly, intuitive, and personalized, providing customers with a seamless banking experience. Other banks have struggled to implement design thinking successfully. Some have failed to fully embrace the customer-centric approach of design thinking and have instead focused on internal processes and systems. As a result, they have developed products and services that do not meet the needs of their customers. Other banks have found it challenging to overcome organizational barriers and cultural resistance to change, which has hindered the implementation of design thinking initiatives. Design thinking has the potential to transform the banking industry by improving the customer experience and developing innovative solutions to complex problems. While some banks have successfully implemented design thinking, others have struggled to achieve success. However, the increasing adoption of design thinking in banking suggests that it is a valuable approach that will continue to drive innovation and customer satisfaction in the industry. Read case studies about the use of Design Thinking in Banking by these and other corporations. Read about their involvement with design thinking and the kinds of problems that have been tackled through the case studies and other articles about the use of design thinking in banking: Design Thinking helps businesses to create user-centric products and services by discovering insights into user needs, applying these insights to their business model and generating innovative ideas. In this five-part series, Sarah Dickins gives advice on how Design Thinking techniques can help you to orientate your product development around user need. Read more... In 2017, employees, managers, and partners of Société Générale Global Solution Centre agreed that invoices based on time tracking and project allocation were a chronic and painful challenge. At SG-GSC, customers were billed for the time each assigned employee worked. The process of collecting the time worked by those employees (HCC) was a complicated and difficult ordeal. It consumed 21 days per month for senior employees. These employees had to navigate different systems, many types of contracts, high staff mobility, and a variety of processes between business lines. This is an example of accelerating a transformation through co-design. Eighty-two professionals gathered, representing OTP’s whole organization. Together, they were able to achieve months of work in just three days. OTP Bank Romania (OTP) was at a key turning point in late 2018. The organization was undergoing changes in its leadership team. This new team helped them develop an ambitious goal: OTP Bank will double its market share in 5 years. The banking industry has become increasingly concerned over the challenge that emerging fintech startups pose to banks’ traditional ways of doing business and the threat that they present to revenue streams. In response, many banks have created internal innovation labs to counter these risks. “Design thinking” has become an important tool in the effort and is being used to explore how banks can boost their growth by applying the approach in a rapidly changing environment and an era of de-banking. The hottest Trend in Banking is the use of Design Thinking to transform banking services. If the one product you’re known for is ubiquitous, how can you stop your customers from leaving for other banks? For Capital One, the answer was a small laboratory within the larger bank. The group leading this innovative push calls themselves  Capital One Labs , and their secret weapon is free coffee. Ever since it became clear that smart design led to the success of many products, companies have been employing it in other areas, from customer experiences, to strategy, to business ecosystems. But as design is used in increasingly complex contexts, a new hurdle has emerged: gaining acceptance (for the new solutions). Co-creation and empathy are fundamental principles of design thinking that enable teams to collaborate and solve user problems at pace. Cross-functional collaboration and deep understanding of end-users help to break down barriers between organization silos, resulting in an aligned vision and more holistic, user-centered solutions. However, the geographically-dispersed nature of investment banks can make co-creation and empathy-building challenging. Whether it is fintech, new regulations, or increasing customer demands, banks need to rethink the way they address wicked challenges related to designing and launching value-adding products and services that meet current and future customer needs. Design thinking has emerged as a highly effective and customer-centric method for solving these types of business problems. It is based on observing customers in their natural environment, prototyping ideas, and validating them with real customers in an iterative way, working towards the best possible solution. Service design includes all the intangible aspects of how an organization seeks to build a relationship over time with its customers. And one goal of prototyping these service design experiences is to bring tangibility to these intangible experiences. Prototyping is such a powerful tool because you're organizing your service around the needs of the end consumer. Prototyping is important for determining what lands correctly and what’s missing. It’s a way to depict how the experience might play out over time and to gather feedback around that. Digitization of Services, especially in the banking sector is creating enormous risk for traditional banks who have not placed the customer at the center of their customer service activities. In general customers of physical banks are not very happy with their banks, whereas those at digital banks are much happier. Herein lies the risk for traditional physical banks. This report offers some good analytical information. How banks can boost their growth through design thinking in a de-banking era. There is broad concern in the banking industry that an important share of revenues and the traditional ways of doing business are at risk due to the emergence of fintech startups that are challenging the established players. In the current economic environment, banks are looking to adapt and evolve their business models to meet these challenges and opportunities. Design Thinking is proving to be a useful tool that can help banks in their endeavors. How do you encourage new customers to open bank accounts? In 2004, Bank of America used the Design Thinking methodology to look at the problem from a human centered perspective when they assigned design agency IDEO to boost their enrollment numbers: a problem that at the time, lacked any user perspective on why it was so hard for customers to save. How design thinking’s user-centric approach is helping Hong Kong embrace a cashless future. The world is rapidly moving towards a cash-lite society with the continuing global spread of the coronavirus disease, Covid-19, helping to accelerate the demand for digital payment services. Many people have been not only adopting social distancing measures during the pandemic, but also trying to avoid contact with people through the use of bank notes and coins by choosing digital payment methods or shopping online. Except in Hong Kong... JavaScript seems to be disabled in your browser. You must have JavaScript enabled in your browser to utilize the functionality of this website. 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Once the query  is generated, one of ET CASES’ Case Research Managers will undertake primary/secondary research and develop the case study. Please send an e-mail to [email protected] to place a query or get in touch with us. Don’t miss out! Be the first to hear about new cases, special promotions and more – just pop your email in the box below. Case Study of the Indian Banking and Financial Services Industry using Strategic Tools Finance is like Oil to the Engine of the Indian Economy As finance is the grease and the oil that keeps the engine of any economy running, the BFSI sector assumes importance in this context. While the post independence era witnessed many large private banks that were either family or community run as well as some government owned banks, the nationalization of the banking sector in 1969 and the early 1970s meant that the government was the prime mover as far as banking and finance was concerned. The situation of government ownership of banks continued well into the 1990s when the first wave of liberalization ensured that banks were now allowed to be privately owned. While multinational banks were always privately owned, most Indian banks were government owned or owned in a quasi governmental manner. Even after liberalization, the RBI or the Reserve Bank of India proceeded cautiously as far as private ownership of the BFSI sector was concerned. However, this did not deter many firms such as the NBFCs or the Non Banking Financial Companies from operating and indeed, flouting the rules thereby leading to periodic bouts of crises. Becoming World Class in their Practices and Dealing with Crises Now, the BFSI sector in India is in a position where it can compete with its peers abroad and elsewhere mainly due to the pioneering efforts of the first wave of post liberalization banks such as HDFC and ICICI. No wonder that the Indian BFSI sector has become a dream job destination for millions of graduates in the technical and managerial institutes. Having said that, at present, the BFSI sector in India is in crisis due to its profligate lending practices during the boom years of the first decade of the 21st century . Indeed, concomitant with the growth of the Indian Economy and the blistering pace of capacity addition as well as booming industries, the banks and financial institutions threw caution to the winds and engaged in indiscriminate lending without doing their due diligence. For instance, during the heydays of growth between 2000 and 2008, banks, and financial institutions in India lent to just about anybody and the GFC or the Global Financial Crisis of 2008 resulted in such debts turning bad. However, it is to the credit of the then ruling dispensation that the 2008 crisis and the global bust did not have major impacts on the Indian BFSI sector due to adequate oversight and regulation by the government in tandem with the RBI. Having said that, some experts believe that what they did was to merely “kick the can down the road” without solving the problem and this in turn led to the ballooning of the NPAs or the Non Performing Assets to such an extent that at the moment, absent massive recapitalization, the Indian BFSI sector would be in major trouble soon. PESTLE Analysis In India, like in most developing countries, politics is inseparable from business and hence, the Indian BFSI Sector is indeed impacted heavily by the policies and the regulations that are passed by the ruling dispensations at the center . Moreover, given the high incidence of governmental and public sector ownership of the so-called State Run Banks, political interference is natural and a major input into the decision making process at the banks. While experts have repeatedly called for lesser political interference in the running of the banks, most people agree that it is routine for lenders in the public sector and even the private sector to pay heed to requests from politicians as far as lending and other aspects are concerned. Moreover, the political masters appoint the chairpersons of the banks and financial institutions and this gives them a major say I the day to business practices at these entities. Economic forces determine the workings of the BFSI sector and it is but natural that the economic environment plays a major role in the fortunes of the sector. Whether it is liberalization or the GFC or the Demonetization measure, banks and financial institutions are heavily impacted by the macro and the micro economic forces. Indeed, both of them are important unlike in the West where the macro is often the main driver of performance of banks. The reason for this is that the Indian Economy has not yet matured to an extent where micro trends are insignificant. For instance, small changes in consumer loans and personal finance segments is enough to cause major impacts on the workings and business practices of the firms in the BFSI sector. Having said that, the steady development and integration of the Indian Economy into the broader global economy has resulted in the macro gaining traction as the moving force of the BFSI sector. The changing socio-cultural profiles and the demographic shifts underway among the Indian consumers does impact the Indian BFSI sector to a great extent. For instance, with the increase in the population of the youth, banks and financial institutions are offering ever more lucrative investment options to this segment. In addition, Indians are now more risk prone as far as their investment patterns are concerned. This can be seen in the rising numbers of people taking personal, housing, consumer, and other loans to fund their extravagant lifestyles. Moreover, with the rise in consumerism, there has been a concomitant increase in the numbers of Indians holding credit cards and debit cards that are also in tune with the Indian Government’s Digital India push for payment avenues. Indeed, taken together, what the changing sociocultural dynamics indicates is that the BFSI sector in India is at a stage where it is mimicking the consumer lending practices that are usually associated with the West. Technological It would be an understatement to say that there is a paradox at the heart of the Indian BFSI sector as far as impacts of technological advances are concerned. For instance, while banking is as old as the Indian Republic, it was only recently that the Indian BFSI sector took to technology in a big way. Once having done so, it ensured that its tech offerings were as good as those of the advanced countries with the added advantage of the Indian IT (Information Technology) industry being at the forefront of the adoption of technology in banking and finance. Having said that, the paradox here is that while a certain percentage (some of would say miniscule) transacts online and the mobile channels with advanced tech, the majority of Indians are simply in the tech wilderness as far as their ability to leverage technology is concerned. Indeed, this is the reason why Demonetization and the concomitant push towards Digital Banking failed to take off as most Indians are not used to using tech enabled banking and payment channels. Given the fact that the Indian Legal System is cumbersome and long winding, it is natural for banks and financial institutions in India to take the consumers for granted including trying out unconventional and often, legally dubious methods of loan recovery as well as selling of financial products. Indeed, while there are many cases of fraud that are registered annually, the resolution, or the settlement of such cases is lackluster to say the least. In addition, with the country having weak laws as far as cybercrime is concerned, the thousands of Indians who fall prey to phishing, cyber fraud, and online scams keeps growing without any meaningful solution to their woes. Thus, it can be said that there is an urgent need to rectify the situation. Environmental This aspect does not have much of an impact on the Indian BFSI sector since Green Lending and CSR or Corporate Social Responsibility business practices are yet to take off among the banks and financial institutions. Indeed, it is only recently that the banks and financial institutions started a separate department for these aspects and hence, the sector has a long way to go before it catches up in this regard. SWOT Analysis The main strength of the Indian BFSI sector lies in its ability to deliver volumes since India being a large and diverse country, offers the benefits of a humungous customer base. In addition, the Indian BFSI sector also relies on high net worth individuals who are a sizable segment of the population considering the number of Millionaires and Billionaires in the country. Apart from this, the Indian BFSI sector is also heavily driven by corporates who use it for their domestic and international operations. Having said that, the most notable weakness of the Indian BFSI sector is its informal and unstructured lending and banking processes . Indeed, despite attempts by the RBI and the Finance Ministry, they have been unable to rein in the dubious practices followed by the banks and NBFCs. For instance, the recent scandals involving well connected businesspersons and the allegations of misconduct that has been leveled indicates that crony capitalism is very much the case as far as the Indian BFSI sector is concerned. This in turn, raises serious questions about its ability to mature into a world class sector which does not bode well for the country’s aspiration to be a global player and a key pillar of the global economy. Opportunities On the other hand, there are humungous opportunities for the Indian BFSI Sector since the majority of the population is unbanked and especially in the rural areas where banks and formal financial sector firms do not have a presence. Indeed, banking for the unbanked offers an unprecedented opportunity for the Indian BFSI sector as can be seen from the success of emerging banks such as Bandhan Bank. Further, there are many options for the latest generation payments banks and other institutions that are cropping up to take advantage of the mobile and Smartphone penetration to leverage their existing banking channels. However, there are dark clouds on the horizon for the Indian BFSI sector especially in terms of the rising bad loans and the NPAs (Non Performing Assets) which can bring down the banking sector if they are not managed in a structured manner. Indeed, it can be said that the Indian BFSI sector is facing an existential crisis as far as the problem of NPAs are concerned . added to this, someday or the other, the sector has to grow beyond its dubious and wink and nudge informal and personal collusion crony capitalist practices if it has to well and truly emerge as a global player. The Reserve Bank of India and Demonetization No discussion on the Indian BFSI sector is complete without examining the role of the RBI, the country’s mandated regulator. Starting in its pre independence and post independences periods of regulating the Indian BFSI sector to the privatization wave where it was tasked with maintaining monetary policy and its preeminent role in safeguarding the Indian Economy from external shocks such as the GFC of 2008, the RBI has indeed done a stellar job of stewarding the Indian BFSI sector. Having said that, its neutrality and independence have been questioned in recent years especially with the Demonetization measure, and this has worrying trends for the future of the Indian BFSI sector. Indeed, Demonetization could be counted as the most radical measure as far as the Indian Economy in the post independence era is concerned . Though there were other notable moves such as nationalization and liberalization as well as devaluation of the Indian Rupee, Demonetization beats the other bold moves hollow with its singular thrust of being disruptive in nature. It would not be an understatement to say that with this measure, the BFSI sector received such a jolt and a shock that the after effects would continue to be felt for years to come. Authorship/Referencing - About the Author(s) The article is Written and Reviewed by Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider . To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url. 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Bank Term Funding Program (BTFP) Problems with Bank Term Funding Program (BTFP) MBA Knowledge Base Business • Management • Technology Home » Management Case Studies » Customer Relationship Management (CRM) in Banking: A Case Study of ICICI Bank Customer Relationship Management (CRM) in Banking: A Case Study of ICICI Bank Focus on ICICI Bank’s Initiatives The use of Customer Relationship Management (CRM) in banking has gained importance with the aggressive strategies for customer acquisition and retention being employed by banks in today’s competitive milieu. This has resulted in the adoption of various CRM initiatives by these banks to enable them achieve their objectives . The steps that banks follow in implementing Customer Relationship Management (CRM) are: Identifying CRM initiatives with reference to the objectives to be attained (such as increased number of customers, enhanced per-customer profitability, etc.), Setting measurable targets for each initiative in terms of growth in profits, number of customers, etc. and Evaluating and choosing the appropriate Customer Relationship Management (CRM) package that will help the company achieve its CRM goals (a comparison of pay-offs against investments could be carried out during the evaluation exercise). Customer Relationship Management (CRM) has been deployed in retail banking. The challenges in managing customer relations in retail banking are due to the multiple products being offered and the diverse channels being used for the distribution of the products. Customer expectation from banks can be summed up as: “ Any time anywhere service, personalized offers, and lower payouts”. Aggressive marketing and promotions on the part of the banks have resulted in most customers happily switching loyalties to enjoy better privileges, thereby making the task of retaining them more difficult for the banks. The use of Customer Relationship Management (CRM) in banking has been essentially done for the following purposes: Targeting customers : It is necessary for banks to identify potential customers for approaching them with suitable offers. The transactional data that is generated through customer interactions and also by taking into account the profile of the customer (such as the lifecycle stage, economic background, family commitments, etc.) needs to be collated into one database to facilitate its proper analysis. For example, a customer interacts with the banks for savings accounts, credit cards, home loans, car loans, demat accounts, etc. the data generated through all these services needs to be integrated to enable effective targeting. After the integration is done, a profitability analysis of the customer needs to be undertaken to acquire an understanding of the profit-worthiness of the customer before targeting him with new offers. Sales reference material : A consolidated information database on all products, pricing, competitor information, sales presentations, proposal templates and marketing collateral should be accessible to all the people concerned. These prove to be very helpful in Sales Force Automation (SFA) wherein the salesperson gets instantaneous access to all relevant material as and when it is required (especially when he/she is in a meeting with a client.) Consistent interface with customers : The communication to customers from various departments like sales, finance, customer support, etc. should be consistent and not contradictory. Therefore, all departments should be privy to a unified view of the customer to enable a consistent approach. Removal of inconsistencies is necessary to ensure that customers are not harassed and frustrated owing to poor internal co-ordination. This is bound to enhance customer satisfaction. The contact centers used to interface with customers should ensure consistency in customer interaction, irrespective of the medium used for the interaction such as telephone, Internet, e-mail, fax, etc. Banks can use the data on customers to effectively segment the customers before targeting them. Proper analysis of all available data will enable banks to understand the needs of various customer segments and the issues that determine “value” for that segment. Accordingly, suitable campaigns can be designed to address the issues relevant for that segment and to ensure higher loyalty from these customers. When data analysis is done in the right manner, it helps in generating opportunities for cross-selling and up-selling. ICICI Bank’s CRM Initiatives ICICI Bank has to manage more than 13 million customers. The bank has over 550 branches, a network of 2025 ATMs, multiple call centers, Internet banking and mobile banking. Its customers often use multiple channels, and they are increasingly turning to electronic banking options. Business from the Internet. ATMs and other electronic channels now comprises more than 50 per cent of all transactions. In the process of making its business grow to this level, ICICI Bank has distinguished itself from other banks through its relationship with customers. The Teradata solution focuses on a Customer Relationship Management (CRM) platform. Information from various legacy and transaction systems is fed into a single enterprise called wide data warehouse. This allows the bank to generate a single view of its customers. The warehouse has the capability to integrate data from multiple sources comprising Oracle and flat files. The Behavior Explorer enables profiling of customers and querying on various parameters. These enable the bank staff create suitable campaigns for targeting individual customers on the basis of their requirements. The logistics in the system have also led to other benefits like interactive reports, unearthing cross-selling opportunities as well as finding out about the channel usage undertaken by a segment. The data access was facilitated through the use of Cognos Power Cubes. The Benefits of CRM Customers’ usage pattern : ICICI’s CRM data warehouse integrates data from multiple sources and enables users to find out about the customer’s various transactions pertaining to savings accounts, credit cards , fixed deposits, etc. The warehouse also gives indications regarding the customer’s channel usage. New product development : Analysis at ICICI guide product development and marketing campaigns through Behaviour Explorer, whereby customer profiling can be undertaken by using ad hoc queries. The products thus created take into account the customer’s needs and desires, enabling the bank to satisfy customers through better personalization and customization of services . Central data management : The initial implementation of CRM allowed ICICI to analyse its customer database, which includes information from eight separate operations systems including retail banking, bonds, fixed deposits, retail consumer loans, credit cards, custodial services, online share trading and ATM. Some Noteworthy CRM Initiatives of ICICI Bank Mobile ATMs : Customers of ICICI Bank can access their bank accounts through mobile ATMs. These ATMs are kept in vans and parked at locations that have a high traffic of bank customers such as the commercial areas in a city or upmarket residential areas ICICI Bank now provides standard ATM facilities through ATM vans. This facility has been tried at Mumbai, Chandigarh and various places in Kerala during specified timings. Bulk Deposits : The ICICI Bank’s Bulk Deposit ATMs enable customers to deposit large amounts at one time. Unlike conventional ATMs, which are able to accept only 30 notes at a time, these ATMs allow the deposit of huge amounts. The Bulk Deposit ATM is available in Mumbai’s Vashi sector branch office of ICICI. The bulk deposit facility can be availed of by select customers who need to deposit huge amounts of cash. ICICI Bank issues a special card called the `Deposit Only Card’ to facilitate this service. This card allows for deposit transactions only. The service is further facilitated by the provision of special bags at ATMs in which a customer can put his money. After the deposit slip is filled, the bag can be inserted in the ATM. The transaction slip is then generated by the ATM as an acknowledgement of the deposit. ICICI Bank also has cash pick-up service for business customers under the business banking segment. ATMs for the visually challenged : ICICI Bank has launched ATMs with special voice-guided systems, which guide a visually challenged person to access ATMs without any help. The jack on the terminal enables headphones to be connected to it and voice commands enable the customer to transact business. Customers may choose a suitable language to get voice commands. After the language selection is done, the customer is guided to ensure that the ATM card is inserted in the right slot and thereafter, guidance is provided for entering the PIN by using the keypad. A raised button is provided on number 5 to enable users to identify the numbers easily through touch. The slot for cash collection has such raised `pips’ that enable easy identification through touch. Other Services through ATMs : Apart from the usual transactions involving the bank, some other services can also be availed of by ICICI Bank customers. These include: Prepaid mobile recharge Buying and renewing Internet packs (such as those of TATA Indicom Internet service provider and Sify). Making donations for Tirupati Tirumala Devasthanams, Nathdwara temple and Shri Mata Vaishnodevi shrine. Mutual fund transactions, and Bill payments Mobile phone as a Virtual Wallet : The mobile phone has been transformed into a virtual wallet — a new innovation in mobile commerce. On September 19, 2005, Airtel, ICICI Bank and VISA announced the launch of mChq — a revolutionary new service — which is a credit card using the mobile phone. This is the first mobile-to-mobile payment option which enables Airtel customers and ICICI Bank Visa cardholders to pay for their purchases with their Airtel Mobile phones. The service has eliminated the need for carrying physical cash for making a purchase and also the problems associated with the point of sale (POS) terminal since the mobile phone services as a secure POS and a payment mechanism. Social Events : ICICI Bank organized the largest domestic invitational amateur golf event for HNI (high-net-worth individuals) customers. This nation-wide golf tournament had over one lakh high-net-worth clients of ICICI Bank’s private banking division participating in the event. Mobile Banking Benefits : Mobile banking enables the customer to avail of many facilities by just sending an SMS. These facilities, which are currently offered free of cost, are as follows: Locating ATM Locating branch Locating drop box Alert facilities like salary credit, account debit/credit, cheque bounce, etc., and Queries on banking, cards and demat account Explain the initiatives take by ICICI Bank to promote Customer Relationship Management (CRM). Discuss the benefits of the initiatives taken by ICICI Bank to promote Customer Relationship Management (CRM). What should be the core elements of CRM that ICICI bank in your opinion should follow, besides what they are already following to make themselves a distinct bank from their competitors Outsourcing CRM is one activity that most organizations follow. Is it a viable option. Give your views keeping in mind the cost involved in implementing CRM and enhancing business also. 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Nurturing the vibrant garden of banking: identifying customer expectations in banking In today’s evolving banking landscape, the shift towards personalized, seamless experiences across digital and physical platforms is undeniable. As digitization transforms interactions, banks must enhance customer journeys across all touchpoints. The Capgemini World Retail Banking Report highlights that 80% of customers are drawn to fast, easy-to-use personalized services, emphasizing the demand for instant gratification. Banks that excel in proactive and innovative communication see higher retention rates, underscoring the importance of customer-centric strategies in building trust and loyalty. Preparing the soil: understanding the essence of customer loyalty Just as soil preparation precedes planting, banks must first understand the needs of their customers. It’s not just about addressing these needs, but cultivating loyalty , much like nurturing a vibrant garden where deep, meaningful relationships are prioritized over mere transactions. In a competitive market, customer loyalty hinges on positive experiences across all services and interactions. As traditional banks and fintech disruptors compete, customer loyalty relies on enhanced service through transparency, innovation, integrated offerings, effective problem resolution, and quick support. Watering the garden: role of customer service in building loyalty Customer service is key to loyalty, using voice of the customer insights to translate feedback into strategies . The J.D. Power 2024 U.S. Retail Banking Satisfaction Study reveals an 8% increase in customers switching banks due to poor service, up from 5% in 2018. This highlights the critical role of customer service. Limited access and inconsistent support : reduced branch locations and hours, along with digital and physical channel inconsistencies, hinder seamless support. Unresolved issues and slow resolution : customers value accessible, knowledgeable representatives, but their unavailability leads to unresolved issues and reduced engagement. Impersonal and automated interactions : customers experience impersonal interactions due to generic services, feeling undervalued, with automated systems and long wait times amplifying frustration. Feeding fertilizers to seedlings: essential components of customer service strategy Enhancing key components of customer service boosts loyalty and cultivates positive experiences. Crucial components include: Building loyalty through digital experiences: A seamless and user-friendly digital experience is essential. A frictionless digital experience directly correlates to customer loyalty. For instance, Erica, Bank of America’s AI-powered assistant, has handled over 800 million inquiries from 42 million clients, contributing significantly to customer satisfaction and retention . Personalization is key: Customers expect personalized services , including tailored product recommendations and solutions. Banks leveraging customer data for personalized experiences foster higher satisfaction and loyalty. A Bain & Co. survey indicates that the more respondents felt their bank personalized the relationship, the higher NPS they gave . Harnessing technology in customer service: According to Capgemini’s World Retail Banking Report contact center employees dedicate 82% of their time with customers to operational and support tasks, instead of focusing more productively on customer needs and sales. However, leveraging the latest technology like AI-powered chatbots and virtual assistants for routine inquiries can free up human agents for more complex issues. Many leading banks have deployed these technologies to answer frequently asked questions about account balances, transactions, and branch locations. Relationship-based strategies: In a competitive landscape, prioritizing relationship-based loyalty is crucial. A decline in customer experience quality saw retention drop from 78% in 2022 to 76% in 2023 , as reported by Forrester . Hybrid approaches excel in emotional engagement, and offering proactive financial advisory services and continuous feedback loops ensures customers feel valued and have enriched interactions. Prioritizing human assistance: Despite technological advancements, human intelligence is unmatched in problem-solving. Customers crave real-time solutions often requiring a person who can empathize and deliver results. By empowering agents with the tools and knowledge to solve problems quickly and efficiently, banks can turn potential frustrations into loyalty-building moments. It’s about more than just answering questions – it’s about creating connections that make customers feel valued and understood. Measuring customer loyalty isn’t just about numbers but about building deep connections. Metrics like CSAT, NPS, and CLTV provide insights, but the story goes beyond data. Analyzing feedback, decoding agent interactions, and segmenting the customer base reveal hidden loyalty drivers. By setting clear goals, choosing the right metrics, and listening to customers, contact centers can transform loyalty from a concept into reality. Harvesting the fruits: harnessing the benefits of elevated loyalty in banking In the banking industry , cultivating loyalty culminates in reaping substantial brand value and impacting the top line for banks. Retaining existing customers proves more cost-effective than acquiring new ones, highlighting the importance of prioritizing customer satisfaction. Effective customer service not only boosts retention but also opens avenues for cross-selling, upselling, and referrals. These strategies collectively enhance revenue streams and foster sustained growth within the banking sector. Meet our expert Senior Director, Contact Center Transformation Leader Contact with us. We are sorry, the form submission failed. Please try again. Research and insight World Retail Banking Report 2024 Retail and commercial banking Investigative Stories Entertainment Life & Living Tech & Startup Rising Star Star Literature Daily Star Books Roundtables Star Holiday weekend read Environment Supplements Brand Stories Law & Our Rights Most Viewed US to back interim govt in holding free, fair polls How Indian media reacted to Shakib’s ‘bombshell' Schools half-closed, fans send best wishes to Shakib as Kanpur readies for action Yunus seeks US partnership in Bangladesh's new journey Bank failures and reforms: The case for an independent deposit insurance system Bank failure is a common phenomenon across the globe, often driven by poor management, fraud, corruption, excessive risk-taking, and inadequate capitalisation. Economic downturns, sudden regulatory changes and natural disasters can also play a significant role in bank failure. In recent years, we saw examples like the collapses of Silicon Valley Bank and Signature Bank in the US and Credit Suisse in Europe, and the near collapse of Yes Bank in India, all for a variety of these reasons. In contrast, Bangladesh has not experienced many bank failures, though issues like moral hazard, distorted incentives, reduced market discipline, and inefficient resource allocation are prevalent. These factors often lead banks to be careless in lending practices, while expecting government bailout with taxpayers' money. A major cause of bank failure is the liquidity crisis. To mitigate the severity of the recent liquidity crunch in the country's banking system, the central bank has provided assistance through instruments like the repo facility, standing lending facility (SLF), and special liquidity support (SLS). Why is managing banks’ liquidity risks so important? During this period of high inflation, when monetary tightening is typically needed to reduce the money supply, the Bangladesh Bank injected liquidity to avoid crises at certain banks. This approach runs counter to international best practices and is questionable during a time of soaring inflation. Essentially, the central bank is preventing bank failures and preserving public confidence in the system by ensuring adequate liquidity to meet depositor withdrawals. A common global practice is the establishment of a deposit insurance system to offer stability to the financial system as an adjunct to the central bank's lender of last resort function and to work for establishing a safety net for depositors. However, this system does not always guarantee full protection from losses. For all latest news, follow The Daily Star's Google News channel. Banking sector issues that the new governor should address Bangladesh has had such a system in place since 1984, governed by the Bank Deposit Insurance Act, 2000 and managed by the central bank. The Deposit Insurance Department under the Bangladesh Bank collects premiums from all scheduled banks, including foreign branches, and deposits these funds into the Deposit Insurance Trust Fund (DITF). The DITF's resources are typically invested in government securities, BB bills and repo, as approved by the trustee board. Notably, members of this trustee board are the same as the governing body of Bangladesh Bank. In many countries, deposit insurance is managed by a separate body rather than the central bank. Major economies such as the US, UK and Japan have independent entities handling deposit insurance. In some developing countries, deposit insurance bodies operate as subsidiaries of the central bank but remain distinct from it. In Bangladesh, however, the central bank directly manages the system. A laundry list for BB governor In the US, the Federal Deposit Insurance Corporation ( FDIC ) insures depositors up to $250,000 per depositor, per insured bank, for each account ownership category. This is significantly higher than the $80,000 per capita GNI in the US. The FDIC also plays a key role in facilitating the purchase and assumption of failed banks, ensuring minimal disruption for the depositors. If no buyer is found, the FDIC may liquidate the bank's assets. Its long history of effectively managing bank failures includes notable events like the Great Depression, the Savings and Loan Crisis of the 1980s, the 2008 Financial Crisis, and the recent failures of Silicon Valley Bank and Signature Bank. Similarly, Japan's Deposit Insurance Corporation covers transactional accounts in full, while other deposits are insured up to 10 million yen per bank, which is close to the double of 5.7 million yen per capita GNI. In India, the Deposit Insurance and Credit Guarantee Corporation ( DICGC ), a subsidiary of the Reserve Bank of India, insures all types of bank deposits up to 500,000 rupees per depositor, per bank—while the per capita GNI is around 210,000 rupees. Lessons for Bangladesh from US bank collapse International examples suggest that Bangladesh's deposit insurance limit should be increased, and at the same time, the institutional system of deposit insurance should be reorganised. Researchers often recommend that the insured amount should be equivalent to one to two times the per capita GDP. However, the current insured amount in the country is significantly lower than the provisional per capita income of Tk 306,144. A recent statement by the Bangladesh Bank governor indicates that a depositor is eligible to receive a maximum of Tk 200,000 per account in the event of a bank failure. However, as of September 9, 2024, the Bangladesh Bank website states that a depositor is eligible to receive only Tk 100,000 per person , irregardless of the number of accounts or banks that they have. This discrepancy between some statements and the information stated on the central bank website must be clarified to build depositor confidence. Even if the insured amount is set at Tk 200,000, it is insufficient to meet the expectations of many depositors, particularly in the context of rising incomes and economic uncertainty. A case for making jobseekers’ info open data In recent years, Bangladesh has witnessed significant growth in Islamic banking. It is essential to implement mechanisms that protect the depositors of Islamic banks, ensuring that these institutions are also covered under the deposit insurance system. Additionally, inclusion of non-bank financial institutions (NBFIs) in this system can be explored for the overall financial market stability. To enhance financial stability and boost depositor confidence, the authorities should consider establishing an independent deposit insurance corporation with a separate board, distinct from the governing body of the Bangladesh Bank. Such an independent entity could play a crucial role in ensuring a stable financial system by closely monitoring the banks' liquidity positions. Moreover, it could manage the accumulated funds more efficiently and potentially increase the insured amount for depositors. This separation of deposit insurance functions would not only reduce the burden on the Bangladesh Bank, but also contribute to the overall stability of the financial sector. Views expressed in this article are the author's own.   Follow  The Daily Star Opinion on Facebook  for the latest opinions, commentaries and analyses by experts and professionals. To contribute your article or letter to The Daily Star Opinion, see our  guidelines for submission . Related News When does a bank fail? Banking reform roadmap useless if past failures not understood Banking sector distressed by reform failure: key economist BB creates ‘Policy Advisor’ post to implement banking reforms বরিশালে ইলিশের কেজি ১৭০০ টাকা, ভারতে যাচ্ছে ১২০০ টাকায় স্থানীয় মৎস্য বিভাগ ও রপ্তানিকারক প্রতিষ্ঠানের কর্তাব্যক্তিদের সঙ্গে কথা বলেও এর যৌক্তিক উত্তর পাওয়া যায়নি। বাংলাদেশের প্রতি সমর্থন ও সহযোগিতা বাড়াতে বিশ্ব সম্প্রদায়ের প্রতি ড. ইউনূসের আহ্বান 187 IMAGES (DOC) Bank Management Case Study Introduction to Banking Sector In India Essay Example Case Study On Money And Banking Class 12 Marketing of Financial Services: A Case Study of Indian Banking Sector PPT CASE STUDY: How BankBazaar Brought The Banking And Insurance Sector VIDEO Banking and Financial Industry Trends applying AI and Intelligent Automation Monsanto issue in India: Case study related to IPR 16 240411Th 통신 및 네트워크 개론 (학부 24-1) NGCN301/EECE442 The Case of the Chaotic Library CA Inter Sep 2024 RTP Case study Students Presentation Case Study COMMENTS Banks & Banking: Articles, Research, & Case Studies on Banks & Banking Among the findings: A bank's ability to produce deposits is by far the most important determinant in explaining cross-sectional variation in bank value. 1. 2. →. New research on banks and banking from Harvard Business School faculty on issues including central banking, commercial banking, and investment banking. Case Study: Will a Bank's New Technology Help or Hurt Morale? Read more on Business management or related topics Customer experience, IT management, Burnout and Financial service sector A version of this article appeared in the July-August 2021 issue of ... AI in Banking [20 Case Studies] [2024] As we navigate through these case studies, we gain insights into the strategic advantages and practical impacts of AI in the banking sector, underscoring its importance in shaping the future of finance. Related: High-Paying Banking Jobs & Career Paths . AI in Banking [20 Case Studies] [2024] Case Study 1: JP Morgan Chase: Streamlining Loan ... Case Study 7: The Digital Transformation of Banking—An Industry Partly as a result of the rise of FinTechs, banking is a sector that is facing significant disruption. In this case study, we identify some of the innovations that are being made both by young start-ups and long-established banks. ... reducing the need for any additional software and related staff costs. ... The Digital Transformation in Banking Case Study Roundup Published July 22, 2022 By Liz Llewellyn-Maxwell. As the world grows more and more digital, customers across every industry are expecting digital-first, timely assistance and support. As shown in this digital transformation in banking case study roundup, all businesses — including banks — have been forced to change and evolve with the times. Top ten banking tech case studies in 2018 Written by FinTech Futures. 27th December 2018. Tech modernisation: full speed ahead. Banks and financial institutions from around the world have been sharing with us their tech modernisation experiences. Here are the top case studies of 2018: Live Oak Bank and Finxact - riding the second wave. The future of AI in banking The McKinsey Global Institute (MGI) estimates that across the global banking sector, gen AI could add between $200 billion and $340 billion in value annually, or 2.8 to 4.7 percent of total industry revenues, largely through increased productivity. 1 The economic potential of generative AI: The next productivity frontier," McKinsey, June 14 ... Transforming a customer experience in banking Of the 50 largest global banks, three out of four now pledge themselves to some form of customer-experience transformation. 1. Stay current on your favorite topics. Subscribe. The benefits of such a strategy have been increasingly clear for some time across sectors and geographies. Big Data Applications the Banking Sector: A Bibliometric Analysis The United States and China's collaboration is noteworthy, as they have constructed two big data and banking sector-related papers. ... Hung J. L., Luo B. (2016). FinTech in Taiwan: A case study of a bank's strategic planning for an investment in a FinTech company. Financial Innovation, 2(1), 1-16. Crossref. Impact of big data analytics on banking: a case study Design/methodology/approach. Guided by the theory of technological frames of reference (TFR) and transaction cost theory (TCT), this paper describes a real-world case study in the banking industry to explain how to help enterprises leverage big data analytics for changes. Through close integration with bank's daily operations and strategic ... Case study: How one of India's largest public sector banks ... O ne of India's leading public sector banks merged with two other banks and the combined entity resulted in one of the country's largest banking entities. It was the largest merger in the Indian banking industry at the time. At the time of the merger, the bank's primary objective was to achieve seamless Day-1 integration with minimal customer disruption and smooth structural, cultural ... Top 25 FinTech Case Studies [A Detailed Exploration] [2024] Related: How to Get an Internship in the FinTech Sector? Case Study 6: Chime - Revolutionizing Personal Banking Essential Term: Digital Banking. Digital banking represents the digitization of all traditional banking activities, where financial services are delivered predominantly through the internet. HDFC Bank Case Study 2021 In Mobile Banking Transaction, the market share of HDFC bank is 11.8%, which has seen a degrowth of 0.66% in the current fiscal year. With each year, HDFC Bank has shown increasing net profit, which makes the 1-year profit growth (24.57%) greater than both 3-year CAGR (21.75%) and 5-year CAGR (20.78%). CAR. HDFC Bank. Top 10 Banking Cybersecurity Case Studies [2024] Top 10 Banking Cybersecurity Case Studies [2024] In an era where digital threats are becoming increasingly sophisticated, the banking sector faces unique cybersecurity challenges that require robust and innovative solutions. This article explores five compelling bank case studies, each demonstrating strategic responses to cyber threats. Merger and Acquisition in Indian Banking Sector: A Case Study of Bank Merger and acquisition emerge as a reality. Bank mergers are one of the strategies for strengthening the Indian Economy by enhancing the banking sector. The Government of India is pursuing the policy of amalgamating public-sector bank. On 1 April 2019, the merger of Vijaya Bank and Dena Bank with the Bank of Baroda came into effect. Banking Case Studies Industry Wise Case Studies. Agriculture Auctioning Auto and Ancillaries Aviation Banking & Financial Services Conglomerate Consulting Services Consumer Electronics Education, Training, and Development Energy and Natural Resources Engineering, Construction, and Real Estate More Industry Wise Case Studies >> Case Related Links. Detailed Subject ... Design Thinking in Banking Design thinking is a human-centered approach to problem-solving that emphasizes empathy, collaboration, and experimentation. It involves understanding customer needs, generating ideas, prototyping solutions, and testing them in the real world. There have been both successes and failures in the application of design thinking in banking. (PDF) Digital Banking A Case Study of India direction in which the digital banking bandwagon is heading. As per a study by e - Marketer, a US based. market r esearch firm, the number of smart phone users in India was 291.6 million by the ... Banking and Financial Services Case Studies 15. per page. Banking and Financial Services case studies / BFSI cases deals with risk management strategies in banks and insurance sector, restructuring of loans, managing interest rate risk for insurance companies, Indian payment banks and business strategy, P2P lending in India, commercial and industrial loan management etc. Mergers and Acquisitions in India: a Case Study on Indian Banking Sector Consolidation of Indian banking sector through mergers and acquisitions on commercial considerations and business strategies - is the essential pre- requisite. In the light of emerging global and Indian trends in the banking sector, this study highlights the main issues related with mergers and acquisition in the banking sector in India. Case Study of the Indian Banking and Financial Services Industry using Having said that, at present, the BFSI sector in India is in crisis due to its profligate lending practices during the boom years of the first decade of the 21st century. Indeed, concomitant with the growth of the Indian Economy and the blistering pace of capacity addition as well as booming industries, the banks and financial institutions ... Mergers and Acquisitions in the Banking Sector: A Systematic Literature This study attempts to provide a systematic review of recent M&A literature that has examined the different themes of M&As and their impact on the performance of the banking sector with an emphasis on 2013-2023. The objective of the study is to identify the important research gaps and provide direction for future research. Customer Relationship Management (CRM) in Banking: A Case Study of The use of Customer Relationship Management (CRM) in banking has been essentially done for the following purposes: Targeting customers: It is necessary for banks to identify potential customers for approaching them with suitable offers. The transactional data that is generated through customer interactions and also by taking into account the ... PDF Selected Cases 6. Risk Management : A Case Study on Derivative 64 - Shri Raj Kumar Sharma & Shri Rakesh Mamodia 7. Direct Marketing V/s Referral Marketing: 78 A Case Study of a Co-operative Bank - Ms Mauli S Bodiwala 8. Digital Tools for Preventing Frauds in Corporate Loans 98 - Shri Gautam Kumar 9. Data Breach and Cyber Attacks: The Case of Bankcorp 123 Creating a loyal experience for customers in banking Harvesting the fruits: harnessing the benefits of elevated loyalty in banking. In the banking industry, cultivating loyalty culminates in reaping substantial brand value and impacting the top line for banks. Retaining existing customers proves more cost-effective than acquiring new ones, highlighting the importance of prioritizing customer ... Bank failures and reforms: The case for an independent deposit An independent deposit insurance mechanism is crucial for ensuring a stable financial system through close monitoring of the banks' liquidity positions. Daring to Be a Mother: A Case Study on Being Black, Being Pregnant, and 2 We borrow from Burrows (Citation 2016) to define the Black tax as "the societal charges placed on African Americans in order to enter and participate in white spaces" (p. 15, emphasis added).Burrows further delineates that historical and societal underpinnings of the Black tax manifest in the materiality of Black people needing to be twice as good to obtain half as much as their white ... assignment business plan case study course work essay report research paper speech term paper thesis