H1 2019 India Commercial Banking Council Market Report
Transcript of H1 2019 India Commercial Banking Council Market Report
H1 2019 India Commercial Banking CouncilMarket ReportPresented by: RFi GroupAnalyst: Hui Sien Law, Research Analyst – Asia
For questions and enquiries, please contact:Andrew Kim, Client Services Director – Asia, [email protected]
2www.rfigroup.com Copyright Retail Finance Intelligence Limited Commercial in Confidence
I N T R O D U C T I O N T O R F i G R O U P
Global intelligence + local Insight = Informed decisions
3
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
www.rfigroup.com • Copyright Retail Finance Intelligence Pty Ltd 2018 • Commercial in Confidence 3
Our Purpose
“TO ANSWER THE
DIFFICULT QUESTIONS”
4www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
Understanding and Knowledge of Financial Services
Data-based Actionable Insights
Global / Local The Customer is King
I N T R O D U C T I O N T O R F i G R O U P
What make us different?
5www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
Low cost/ High value FastAll inclusive
subscriptionsEnterprise wide
I N T R O D U C T I O N T O R F i G R O U P
The client value proposition
6www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
Our blue-chip client base…I N T R O D U C T I O N T O R F i G R O U P
7www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
I N T R O D U C T I O N T O R F i G R O U P
Financial Councils – Global
Priority & Retail Banking Council
Payments & Innovation Council
Merchant Acquiring Council
Digital Banking Council
Commercial BankingCouncil
SME Banking Council
Youth Banking Open Banking/ PSD2 Council
Commercial Payments
B2B Payments Remittance
8www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
I N T R O D U C T I O N T O R F i G R O U P
Our hybrid bespoke/ syndicated model – how RFiGroup partners with its clients…
9www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
M O N T H L Y M E E T I N G - N O V E M B E R 2 0 1 9
Insight DeliveryRFi’sgoal is to deliver data driven actionable insights to our clients in every interaction
To what extent did we provide valuable answers to your business priorities
To what extent did we provide you with actionable insights
Are you using the RFi Group research insights within your business
1
2
3
Have your say here!
10www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
I N T R O D U C T I O N T O R F i G R O U P
Financial Councils – Global
Priority & Retail Banking Council
Payments & Innovation Council
Merchant Acquiring Council
Digital Banking Council
Commercial BankingCouncil
SME Banking Council
Youth Banking Open Banking/ PSD2 Council
Commercial Payments
B2B Payments Remittance
11
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
• Research Methodology
• Market report
• Firmographics• Market overview• Business Sentiment• Future banking• Business products• Relationship management• Channels
Agenda
12
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
• The data in this report is sourced from the H1 2019 India Commercial Banking Council survey. The surveys were in field
from March to April 2019.
• In total over 378 businesses were interviewed online.
• Basic quotas were applied to ensure that respondents are representative of the India business population by industry
and revenue. To qualify as a commercial banking client, company must have a global annual revenue between U.S $10
million and U.S $500 million.
• In terms of reporting,
• All currency related questions are in US$ unless otherwise stated
• For single response questions, totals may not add to 100% due to rounding. Multi-response question totals do
not add to 100% as respondents can choose more than one response
• NPS is calculated by subtracting the proportion of customers who said the likelihood of recommending the
institution was a rank of between 0-6, from the proportion of customers who said the likelihood was between 9-
10 where 0 is ‘not at all likely’ and 10 is ‘extremely likely’
• Slides marked with an institution’s logo in the title are proprietary to the institution.
• Further data cuts are available on request.
Methodology
13
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
• The H1 2019 India Commercial Banking Council survey is only asked to respondents who have direct knowledge of
their companies’ financials and are of the following positions.
• Owner/ Operator
• Director
• Chief Executive Officer (CEO)
• Chief Financial Officer (CFO)
• Partner
• Logic checks in the online questionnaire ensure that responses are coherent. Respondents are otherwise terminated
from the survey.
• Fieldwork for the survey is divided into two phases, the soft launch and the full launch. Data check is performed twice,
one after soft launch and the other after full launch.
• Additional checks are performed to remove straight-liners and duplicates.
Quality Assurance
• Finance Manager
• Managing Partner
• Not for profit Office Bearer
• Managing Director/ General Manager
• Financial Director
14
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
▪ NPS is a measure of recommendation amongst Existing Clients
▪ It correlates well with Intent to buy more amongst Existing Clients
▪ However, smaller brands even with high NPS can have a smaller absolute number of promoters, compared to a larger brand with lower NPS
▪ The introduction of a new product or an exciting scheme in the market by one brand has the potential of disrupting the market. The incumbents NPS may remain high but their sales may not speak the same language in the face of the new product.
▪ Some brands can over-service existing customers thus getting high NPS, at a cost, and focus less on acquisition. NPS surveys can tell us potential acquisition triggers.
▪ There is cultural bias in scoring so we must look at scores trended within each market and Vs competition in each market (not across markets). Markets like India, Indonesia and UAE generally give higher scores, whereas Hong Kong, Korea, Singapore and Taiwan give lower scores.
Net Promoter Score
15
Market Report• Firmographics
• Market overview
• Business Sentiment
• Future banking
• Business products
• Relationship management
• Channels
16
Preview Slides
• Primary Bank: Recommendation
• Main Domestic/ International Bank: Switching Drivers
• Future Product Take-Up
17
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
Primary Bank: Recommendation
How likely are you to recommend your bank?By primary bank, Trended
61%72%
51%65% 61% 67% 63% 64%
48%60% 62% 65%
48%60% 58% 59%
FY 2018 H1 2019 FY 2018 H1 2019 FY 2018 H1 2019 FY 2018 H1 2019 FY 2018 H1 2019 FY 2018 H1 2019 FY 2018 H1 2019 FY 2018 H1 2019
HSBC SCB Citibank ICICI Bank SBI HDFC Bank AXIS Bank Total
Difficult (0-6) Neutrals (7-8) Easy (9-10)
Base: Primary bank relationships (FY 2018: AXIS Bank: n=97, Citibank: n=127, HDFC Bank: n=224, HSBC: n=176, ICICI Bank: n=182, SBI: n=120, Standard Chartered: n=104, Total: n=1169; H1 2019: AXIS Bank: n=57, Citibank: n=58, HDFC Bank: n=116, HSBC: n=47, ICICI Bank: n=91, SBI: n=63, Standard Chartered: n=40, Total: n=617)
55 6647
63 57 62 55 6238
60 55 5940
56 50 54
NPS Scores [100 × (%(9-10) - %(0-6))]
18
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
Better online banking 31%
A larger credit facility 29%
Faster borrowing process 28%
Better operational processing quality, efficiency and reliability 28%
More commitment to the business' long term growth 27%
Better branch access 27%
Better pricing and fees 26%
Better telephone banking 26%
The business applied for a loan product and was not approved the amount needed
26%
Better integration between the business' banking and its accounting/ finance software
26%
Main Domestic/ International Bank: Switching
Base 1: Primary bank relationships (H1 2019: 617)Base 2: Companies who are considering switching their main domestic/ international bank (H1 2019: n=395)Base 3: Companies who are considering switching their main domestic/ international bank excluding respondents who selected “I don’t know” (H1 2019: n=369)
14%
13%
8%
7%
6%
5%
5%
4%
3%
3%
HDFC Bank
ICICI Bank
AXIS Bank
SBI
HSBC
Citibank
SCB
Kotak Bank
Indian Overseas Bank
DBS
Where are you planning to switch to? Why is your business looking to switch the main domestic/ international business bank?
Top 10 drivers
14% 50%
How likely is your business to switch its main domestic/ international business bank?
Very unlikely (0-2) Unlikely (3-4) Neutral (5) Likely (6-7) Very likely (8-10)
Potential switchers
19
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence
Future Product Take-Up
93%
71%
66%
59%
51%
39%
32%
0% 20% 40% 60% 80% 100%
Cash services
Trade-related products
Borrowing products
Cards
Foreign exchange products
Insurance products
Investment/Wealth products
What business banking products does the
business intend to take up in the next 12
months?
96% 92%
<$50M >$50M
% who are planning to take up new products
By annual turnover
Base 1: All companies (H1 2019: <$50m: n=79, >$50m: n=299, n=378)Base 2: Businesses who intend to take up new banking products in the next 12 months (H1 2019: n=350)
Yes
93%
No
7%
Do you intend to take up new banking products in the
next 12 months?
20
Intelligence to bank onIntelligence to bank on
21
Legal notice and disclaimer
- This presentation has been prepared by Retail Finance Intelligence Pty Limited ACN 121 015 192 and its associated entities worldwide (“RFi Group”) and is provided to you for the purposes set out in the agreement signed by you relating to this presentation.
- All information contained in this presentation (including this notice) (“Information”) is confidential. By receiving the Information you are deemed to agree that you will hold the Information in strict confidence and keep it secret, and not reproduce, disclose or distribute the Information to any third party or publish the Information for any purpose. The obligations imposed upon you by this document are in addition to the obligations imposed upon you under any non-disclosure agreement or other agreement signed by you relating to the Information. You agree not to modify or alter the Information in any way. If you are not the intended recipient you must not use or disclose the information in this research in any way. If you received it in error, please tell us immediately by return e-mail and delete the document. We do not guarantee the integrity of any e-mails or attached files and are not responsible for any changes made to them by any other person.
- This Information shall not form the basis of any contract or commitment. No action should be taken on the basis of, or in reliance on, this presentation.- Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the Information, opinions
and conclusions, or as to the reasonableness of any assumption contained in this presentation. By receiving this presentation and to the extent permitted by law, you release RFi Group and its officers, employees, agents and associates from any liability (including, without limitation, in respect of direct, indirect or consequential loss or
damage or loss or damage arising by negligence) arising as a result of the reliance by you or any other person on anything contained in or omitted from this presentation.- Any forward looking statements included in this presentation involve subjective judgment and analysis and are subject to significant uncertainties, risks and
contingencies, many of which are outside the control of, and are unknown to, RFi Group or its officers, employees, agents or associates. Actual future events may vary materially from any forward looking statements and the assumptions on which those statements are based. Given these uncertainties, you are cautioned to not place undue reliance on any such forward looking statements.
- Unless otherwise specified in any agreement to which this presentation relates, no responsibility is accepted by RFi Group or any of its officers, employees, agents or associates, nor any other person, for any of the Information or for any action taken by you on the basis of the Information.
- RFi Group is not licenced to, has not and does not provide any financial advice or deal with any financial products or securities in the process of assisting in the compilation of this Information. This Information does not constitute investment, legal, taxation, financial product or other advice and the presentation does not take into account your investment objectives, financial situation or particular needs. You are responsible for forming your own opinions and conclusions on such matters and should make your own independent assessment of the information and seek independent professional advice in relation to the Information and any action taken on the basis of the Information. RFi Group does not make, adopt or endorse any recommendation in this document.
- Unless otherwise specified in any agreement to which this presentation relates, The “Intellectual Property Rights” (meaning any and all patents, rights in inventions, trade marks, service marks, copyrights and related rights, database rights, moral rights, rights in designs, know-how and all or any other intellectual or industrial property rights whether or not registered or capable of registration in any part of the world together with all or any goodwill relating to them) in this presentation and those created by the creation of this presentation and any services to which this presentation relates, shall belong to RFi Group.
22
R F i G R O U P - I N D I A C O M M E R C I A L B A N K I N G C O U N C I L H 1 2 0 1 9
www.rfigroup.com Copyright Retail Finance Intelligence Pty Limited Commercial in Confidence