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WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT &

RESEARCH

Current Status of eCRM !n In"!an #an$!n% A Sur'e(

#(

S)r!$ant *an+ar

PGDM e#!, -./0 1 /2

TRIMESTER VI

SPECIALISATION FINANCE

ROLL NO 34

Un"er t)e Gu!"an5e of

Prof. Prasannavadanan Thampi

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ACKNOWLEDGEMENT

This final year project has been a olden opportunity for learnin and self5

development. $ consider myself very luc*y and honored to have so many

wonderful people lead me throuh in completion of this project.

.

$ wish to e6press my indebted ratitude and special than*s to Prof.

Prasannavadanan Thampi- who in spite of bein e6traordinarily busy with his

duties- too* time out to hear- uide and *eep me on the correct path. 7e helped all

the time and ave the riht direction towards the completion of the project. 7isadvice is invaluable and will definitely help me in my lon term oals.

My project was very well supported by Mrs. 0uvarna Mohe and Mr. Ganesh

Devarushi who were always there for support durin all the times of the project.

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INDE8

Ta9:e of Contents

1. #bstract

4. $ntroduction

8. 'iterature ,eview

9. Profile of :an*s

;. &,M in ban*s

. Methodoloy

?. Data #nalysis@. Discussion

1A.&onclusion

11.,eference

14.#nne6ure3 Buestionnaire

/7 A#STRACT

  e&,M can help ban* to manae customer interaction more effectively to maintain

competitiveness in present economy.Moreover an6iety is ta*en as a moderatin variable thatmoderates the relationship between %5&,M and customer satisfaction. or this 9A Cuestionnaires

were distributed responses were obtained. The future research should comprise of factors that

can be used to evaluate the customer satisfaction. $n addition the moderatin impact of other

dispositional variables should be used to evaluate customer satisfaction.

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discernin and not loyal to ban*s. This ma*es it imperative that ban*s provide best possible

 products and services to satisfy customer. To face the challene of retention of customers- there

have been active efforts in the ban*in circles to switch over to customer5centric business model.

The *ey success of such a model depends upon the way adopted by ban*s with respect to

customer data manaement and customer relationship manaement.

=ver the years- $ndian ban*s have e6panded to cover a lare eoraphic + functional

area to meet the developmental needs. They have been manain a world of information about

customers E their personal information. They have a close relationship with their customers and a

ood *nowlede of their needs- reCuirements. Thouh this offers them a different advantae-

they face a basic problem. &ustomer5centricity also implies increasin investment in technoloy.

=verthe last decade- ban*s world5over have re5enineered their orani"ations to improve

efficiency and move customers to lower cost- automated channels- such as #TMs and net

 ban*in. :ut this need not be the case. 7owever- to ma6imi"e the value of this resource- our 

 ban*s need to uprade their branches from transaction processin centers into customer5centric

service centers. This transformation would help them achieve bottom line business benefits byretainin the most profitable customers. :ranches could also be used to inform and educate

customers about other- easier channels- to advise on and sell new financial instruments li*e

customer!s loans- insurance- mutual fund products- etc. There is a rowin reali"ation amon

$ndian ban*s that it no loner pays to have a Ftransaction5basedF operatin model. They too* 

more efforts to develop a relationship5oriented model of operations focusin on customer centric

services. The biest challene our ban*s face today is to establish customer privacy without

which all other efforts towards operational e6cellence are meaninless. :an*s are involved with

the nature of the product and nature of customer needs. &ustomer relationship manaement

/&,M2 is all about ,epeatin.

$t must be noted- however- that customer5centric ban*in also involves lots of ris*s. The ban*in industry all over the world is bein thrust into a wild new world of privacy issue. The

 ban*s need to set up serious overnance systems for privacy ris* manaement. $t must be

reminded that customer privacy issues threaten to compromise the use of information technoloy

which is at the very center of and customer relationship manaement. The serious issue for ban*s

is that they will not be able to secured customer privacy completely without underminin the

most e6citin innovations in ban*in. These innovations promise lots of benefits- both for 

consumers and providers. :ut to capture them- ban*s and their customers will have to ma*e

some critical tradeoffs. )hen the sta*es are so hih- nothin can be left to chance- which is why

 ban*s must immediately bein developin comprehensive approaches to the security issue.

&ustomer ,elationship Manaement is the innovation of industry shiftin and the level of 

competiveness orani"ations have had to deal with in order to ain competitive advantae in the

mar*et. $n the last few decades we have seen a dramatic economic shift from manufacturin to

information and *nowlede driven services /,amaswani- 0rivastava- + :harava- 4AA@2. 0uch

shift has contributed to a correspondin increase in intanible assets li*e brand reconition.

&,M is tools of intermediaries which help companies succeed in the transition that we have had

from a production economy to a service one. #ccordin to Payne and row /4AA;2 &,M is a

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communicatin- creatin loyalty- customer service- trust cultivation and relationship maintenance

and ban*s. The same may also act as a platform for JM processes in ban*s li*e *nowlede

creation- sharin- dissemination and e6ploitation.

Re!5)::e:" an" S5)efter7 4?

The &ustomer ,elationship Manaement is still in its pioneerin stae. &ustomer relationship

manaement in electronic commerce /e5&,M2 is one of the fastest rowin manaement

techniCues adopted by online enterprises.

G!:9ert 7 3?

&,M has emered due to the chane in mar*etin environment. The lin* of the &,M with the

technoloy ma*es it!s more interestin to e6plore.

Kaa$ura et a: 700? N%a!= 7?7

Technoloical developments enable businesses to implement &,M systems that can create

 practical mass customi"ation mar*etin prorams- based on one5to5one mar*etin techniCues.

Pe>>ers= Ro%ers= & Dorf= 72B3? Re!nart, & Kuar=

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&,M is defined accordin to Gummesson as “&,M is the values and strateies of relationship

mar*etin E with particular emphasis on customer relationships5 turned into practical

applicationK. 0terne!s definition of &,M is easier than Gummesson- “&,M is the art of usinevery piece of information that comes into your ban* about each customer as means of tailorin

your communications with them on a one5to5one basisK.

&ustomer ,elationship Manaement is the establishment- development- maintenance and

utili"ation of lon5term mutually valuable relationships between customers and the ban*s.

0uccessful customer relationship manaement focuses on understandin the needs and desires of 

the consumers and is achieved by placin these needs at the heart of the business by interatin

them with the ban*s stratey- people- technoloy and business processes. :an*s are involved

with the nature of the product and nature of customer needs. &ustomer relationship manaement

/&,M2 is all about ,epeatin.

#t the heart of a perfect &,M techniCue is the creation of mutual value for all the parties

involved in the business process. $t is about creatin and maintainin competitive advantae by

 bein the best at understandin- communicatin- and deliverin- and developin e6istinconsumers relationships in addition to creatin and *eepin new customers. 0o the concept of 

 product life cycle is ivin way to the concept of customer life cycle focusin on the creation of 

 products and services that achieve the future need of the e6istin customers and creatin

additional services that increase e6istin customer relationships beyond transactions. &,M is a

comprehensive approach for creatin- maintainin and increase customer relationship. $t

 provides harmless co5ordination between customer service- mar*etin- information technoloy

and other customer related functions. $t involves people- process and technoloy to maintain

relationships with all the customers.Today- in the competitive business world- manaement

reali"es that customers are the core of a business and that a ban*s success depends on effectively

manain relationships with them. #ll objectives are focused to one sinle oal that is to ma*e

customers happy because they are the ones who *eepthe business runnin. %ssentially- &,M

focuses on buildinsustainable customer and lon5term relationships that add value for both the

 ban* and the customer. :esides widespread areement that &,M can have a direct and indirect

impact on customer satisfaction- loyalty- sales and profit- the sinificance of &,M and the

factors that lead to its successful implementation is an area of widespread debate.

&,M is a business stratey depends upon relationship5oriented mar*etin that serves

mar*etin as a tool. &,M can be assumed to be a uniform effort for definin- maintainin- and

developin a customer relationship networ* and consolidation of achievin bilateral benefits for 

all parties concerned throuh interactive and personali"ed communication and with an ever5

increasin value durin a lon period of time.

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-7 Custoer Inforat!on Conso:!"at!on E $nstead of customer information bein stored in

 product centric silos- /for e.. separate databases of savins account + credit card customers2-

with &,M the information is stored in a customer centric manner coverin all the products of the

 ban*. &,M interates various channels to deliver a host of services to customers- while aidin

the functionin of the ban*.

07 Mar$et!n% E &entral repository for products- pricin and competitive information- as well as

internal trainin material- sales presentations- proposal templates and mar*etin collateral.

37 0B."e%ree '!e+ of 5o>an( E This means whoever the ban* spea*s to- irrespective of 

whether the communication is from sales- finance or support- the ban* is aware of the

interaction. ,emoval of inconsistencies of data ma*es the client interaction processes smooth

and efficient- thus leadin to enhanced customer satisfaction.

27 Persona:!,e" sa:es )oe >a%e E &,M can provide a sinle view where 0ales Maners andaents can et all the most up5to5date information in one place- includin opportunity- account-

news- and e6pense report information. This would ma*e sales decision fast and consistent.

B7 Lea" an" O>>ortun!t( Mana%eent E These enable orani"ations to effectively manae

leads and opportunities and trac* the leads throuh deal closure- the reCuired follow5up and

interaction with the prospects.

7 A5t!'!t( Mana%eent  E $t helps manaers to assin and trac* the activities of various

members. Thus improved transparency leads to improved efficiency.

7 Conta5t Center  E $t enables customer service aent to provide uniform service across

multiple channels such as phone- $nternet- email- a6.

47 O>erat!ona: Ineff!5!en5( Reo'a: E &,M can help in 0tratey ormulation to eliminate

current operational inefficiencies. #n effective &,M solution supports all channels of customer 

interaction includin telephone- fa6- e5mail- the online portals- wireless devices- #TMs- and face5

to5face contacts with ban* personnel. $t also lin*s these customer touch points to an operations

center and connects the operations center with the relevant internal and e6ternal business

 partners.

/.7 En)an5e" >ro"u5t!'!t( E &,M can help in enhanced productivity of customers- partners

and employees.

//7 CRM +!t) #us!ness Inte::!%en5e  5 :an*s need to analy"e the performance of customer 

relationships- uncover trends in customer behavior- and understand the true business value of 

their customers. &,M with business intellience allows ban*s to assess customer sements-

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Global 4AAA companies- evolvin to e5&,M reCuire process and orani"ational chanes- a suite

of upraded applications- and a non5trivial technical architecture to support both the e5&,M

 process and the enterprise applications that automate the process. Mid5si"e companies may benefit from less sophisticated- and easier to implement /and afford2 hosted solutions- offered

throuh #pplication 0ervice Providers. :ut reardless of the si"e of your firm- you have no

choice but to evolve to e5&,M Cuic*ly. orrester ,esearch e6pects e5&,M applications to“obsoleteK channel5specific &,M applications by 4AA4. McJinsey + &ompany notes that

“capturin and effectively usin customer profiles will determine winners and losers inO

ecommerce development.K%lectronic customer relationship manaement /e5&,M2 is seen to arise from the consolidation of 

traditional &,M with the e5business applications mar*etplace and has created a flurry of activity

amon ban*s. e5&,M is the proverbial double5eded sword- presentin both opportunities and

challenes for ban*s considerin its adoption and implementation. This e6plores the mar*etinopportunities e5&,M creates for ban*s such as enhanced customer interactions and relationships

as well as personalisation options- all of which are potential sources of competitive advantae. $t

also e6plores the challenes confrontin ban*s implementin e5&,M such as manain an

online ban*in- data interation issues and information technoloy /$T2 architecture challenes.Directions for future research are also suested5&,M describes the broad rane of technoloies

used to support a ban*s &,M stratey. $t can be seen to arise from the consolidation of traditional&,M with the e5business applications mar*etplace.$nternet in recent times has emered as one of the potent way to ease the access to ban*s. )ith

the innovative technoloies provided by telecom providers ban*s have made it possible for customers to pay bills at home with the use of internet. These include MT('- :0%0- and

#$,T%' etc. Lnderstandin the importance of internet as a medium to reach the customers-

$ndian private sector ban*s li*e $&$&$ :an*- 7D& :an*- Global Trust :an* andLT$ :an*-

have ta*en the lead in e5ban*in. orein ban*s operatin in $ndia li*e &itiban* ederal :an*-70:& :an*- Deutsche :an* and #:( #mro :an*- ,:0 arealso in the same practice.

,ecently it has been seen that even the $ndian public sector ban*s li*e 0:$ have beun the

internet enabled services for their customers.LT$ in connection &omet Ma6 is loo*in to create a communication networ* for its customers.

The networ* is said to help in #TM servicin and intern manaement information system with

the ;A 0#T terminals at strateic locations.#s the ban*s need to collect- oranise and use the information related to customers in a

systematic manner- e5&,M is a potent and efficient way to do that. $t can help with developin

the accurate customer profiles to customi"e the offerins and improve the customer e6perience

 by buildin healthy relationships. )ith some efficient data minin techniCues- e5&,M will act asa facilitator in convertin the loads of information into useful customer profiles and touch points

hence improvin the Cuality of data. #n oranisation must *eep a customer centric approach in

implementin the e5&,M stratey to ma*e it a profitable one and this will include the culture - process and people bein interated into the core framewor*. :an*s need to understand that they

need to ma*e a beinnin. 0tart small- but start. 'ater they can learn and improve. inally- it is

very important to communicate- train and measure all activities. The framewor* recommendsleadership and motivation driven by top manaement to optimise customer relationships on the

 basis of customer information.

eCRM features

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additional functions and the ability to scale to meet future rowth and dynamic business

demands. :e careful

Ste>s to eCRM Su55ess

Many factors play a part in ensurin that the implementation any level of e5&,M is successful.

=ne obvious way it could be measured is by the ability for the system to add value to the e6istin

 business. There are four suested implementation steps that affect the viability of a project li*e

this3

• Developin customer5centric strateies

• ,edesinin wor*flow manaement systems

• ,e5enineerin wor* processes

• 0upportin with the riht technoloy

37 Prof!:e of #an$s

/? Pu9:!5 Se5tor #an$s

S#IThe :an* is actively involved since 1@>8 in non5profit activity called &ommunity

0ervices :an*in. #ll branches and administrative offices throuhout the country sponsor and

 participate in lare number of welfare activities and social causes. Their business is more than ban*in because they touch the lives of people anywhere in many ways. Their commitment to

nation5buildin is complete + comprehensive.

0:$ J% P=$(T0

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N $ndia!s larest &ommercial :an*in Group- consistin of 0:$ and 41 0ubsidiaries- <

Qoint entures and > #ssociates

N ,ated ### by &risil /a 0tandard and Poor company2 indicatin hihest safetyN Maintainin a , of R14H consistently

N $ndependent ,is* Governance structure + interated ris* manaement of credit-

mar*et and operational ris*sN 7ih levels of corporate overnance E :oard driven decision ma*in

N 0tron internal and e6ternal audit systems E #udit committee of the :oard consists

of hihly Cualified and independent directorsN (ew initiatives in Pension und- $nfrastructure und- Point of 0ale and General

$nsurance in partnership with lare international players

N 0tron record of corporate social responsibility /&0,2 activities

 PN#

%stablished in 1?@; at 'ahore- undivided $ndia- Punjab (ational :an* /P(:2 has the

distinction of bein the first $ndian ban* to have been started solely with $ndian capital. The ban* 

was nationali"ed in Quly 1@

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N unded 0ervices

N (on unded 0ervices

N 0peciali"ed 0ervicesN alue #dded 0ervices

ICICI

$n =ctober 4AA1- the :oards of Directors of $&$&$ and $&$&$ :an* approved the merer 

of $&$&$and two of its wholly5owned retail finance subsidiaries- $&$&$ Personal inancial0ervices 'imited and $&$&$ &apital 0ervices 'imited- with $&$&$ :an*. $&$&$ Group offers a

wide rane of ban*in products and financial services to corporate and retail customers throuh a

variety of delivery channels and throuh its speciali"ed roup companies- subsidiaries and

affiliates in the areas of personal ban*in- investment ban*in- life and eneral insurance-venture capital and asset manaement. )ith a stron customer focus- the $&$&$ Group

&ompanies have maintained and enhanced their leadership position in their respective sectors.

The :an* currently has subsidiaries in the Lnited Jindom- ,ussia and &anada- branches in

0inapore- :ahrain- 7on Jon- 0ri 'an*a and Dubai $nternational inance &entre andrepresentative offices in the Lnited 0tates- Lnited #rab %mirates- &hina- 0outh #frica-

:anladesh- Thailand- Malaysia and $ndonesia. $&$&$ emeres as the major source of foreincurrency loans to $ndian industry.

27 CRM Pra5t!5es !n #an$ 

CRM !n ICICI #an$ 

The ban* has successfully leveraed the power of inacle and has deployed the solutionin the areas of core ban*in- consumer e5ban*in- corporate e5ban*in and &,M. )ith inacle-

$&$&$ :an* has also ained the fle6ibility to easily develop new products tareted at specific

sements such as $&$&$ :an* oun 0tars5 a product taretin children- )omens #ccount

addressin wor*in women and :an* campus taretin students.The &,M initiatives in $ndia!s $&$&$ :an* hold toether its compellin story of rowth.

$ts rowth in customer base- channels- and product and service offerins. The $&$&$ ban* is one

of the private sector ban* which is providin the customer value added services. They are not

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&,M- accordin to $&$&$ consists of followin approaches3

S# GETTING PERSONALI*ED INFORMATION ON CUSTOMERSThe ban* collects all the information about the customers for processin. $&$&$ ban* has

mainly 9 service offerins vi"3 loan account- savin account- current account and fi6ed deposits.Moreover- the ban* has many customers in each cateory. 0o- they collect the data on one server 

and thus the company ets the personali"ed information on each customer by as*in them to fillthe information in customer application form.

S: WHAT IS THE VALUE OF THE RELATIONSHIPJ#fter the collection of the personali"ed information on every customer- the department

chec*s out the value of the relationship with each and every customer. 'ater- they decide how toapproach the customer for *nowin what his needs and wants areU #fter this is done- the

company offers him the customi"ed product.

S& CUSTOMI*ED OFFERINGS TO THE CUSTOMER The step which comes after decidin the value of the customer is that the company offers

the person the customi"ed product. Moreover- they also practice a concept called cross5 sellin

over here. &ross E sellin refers to offerin another product from the service offerin of the ban* to the customer which he has not one for.

SD CONVERTING A PROSPECTIVE CUSTOMER INTO A TRUE CUSTOMER7The last approach of &,M accordin to $&$&$ ban* is that they try to convert the

 prospective customer into a true customer. ,iht from the moment the inCuiry comes- theyfollow5 up the customer and then ma*e him to come to the ban* occasionally and then reularly.

T)e >ro5esses for "e:!'er!n% CRMT)e too:s an" t)e >ro5esses are as fo::o+

N &ustomer application form

N &entrali"ed software where the whole data is collected.N )ide rane of offerin

N &ross E sellin and

N eedbac* forms

D!fferent C)anne:s for A55ess!n% Ser'!5es

#an$ #ran5)

)e can find a host of $&$&$ retail products at our widespread :an* :ranch networ*5:an* 

#ccounts- &redit and Debit cards- :onds- Demat #ccounts- 'oans aainst 0hares- etc.

ATM Net+or$ 

Ma*e balance enCuiries

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Ma*e cash withdrawals

ree access to all #TMs

Payee name available on the Mini statement.Mini statement shows last 1A transactions

'eder :alance available in Mini statement.

P)one #an$!n%

49 hour manned &ustomer &are &enter $nteractive oice ,esponse /$,2 facility available

:ill pay reCuests

0top payment reCuest

:alance enCuiriesGive standin instructions for payments

=pen a i6ed Deposit

Dial E a E draft

Internet #an$!n%

Payment of Ltility :ills5electricity- phone etc.

=nline ,ailway tic*et boo*in

85in51 Demat #ccount$nter :an* funds transfer /available in select cities2

Third party transfer 

Mo9!:e #an$!n%

$&$&$ ban* mobile ban*in enables us to ban* while bein on the move.$&$&$ ban* 

mobile ban*in can be divided into two broad cateories of facilities3

A:ert fa5!:!t(3 $&$&$ ban* mobile ban*in alerts facility *eeps us informed about the sinificant

transactions in your accounts. $t *eeps us updated wherever we o.

Reuest fa5!:!t(3 $&$&$ ban* mobile ban*in reCuests facility enables us to Cuery for our 

account balance.

INSTA #an$!n%

$&$&$ :an*!s “$nsta :an*inK enables us to conduct ban*in transactions anytime from

anywhere. ou can avail of this anywhere5#nytime ban*in service throuh our 495hour channels li*e #TM- $nternet :an*in- $nstant oice ,esponse /$,2 :an*in and Mobile

:an*in- and from ? a.m. to ? p.m. These uniCue and user5friendly channels have brouht

 ban*in services to your finertips. rom balance enCuiry to chec*in cheCue status to orderina new cheCue boo*- you can communicate with $&$&$ :an* from the comfort of your home or in

the middle of a busy day at the office.

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 CRM !n HDFC #an$ 

7D& :an* is ma*in all possibilities come true for its customers. The ban* offers

tareted messain and other customi"ed services usin (&,!s #ptra eMar*etin software. The ban* runs one to5one /customi"ed2 and one5to5all tareted messain via all self5service channels

li*e the #TM- mobile ban*in and $nternet ban*in. Most ban*s do not have clean data of thecustomer with reards to residential address and other details. This implementation helps 7D&

:an* with a more thorouh analysis of the chane in customer demoraphics and thus- planstheir campains better after bein eCuipped with a thorouh data repository in the data

warehouse Ser'!5es

#lon with tareted messain- the ban* is also offerin fast #TM services. 7D& :an* 

has launched ‘favorite transaction! that allows the customer to set a particular amount for 

withdrawal so that every time he visits the #TM he will not be accessin the same screens. Thishas reduced the number of screens the customer must access while usin the #TM machine for 

withdrawin cash. Till now- the customer had to access @ screens- which has now been reduced

to five screens- which has in turn resulted in a reduction of 9A percent in the time ta*en tocomplete a transaction.They have been powered by the data warehousin- data minin- modelinand analytics abilities and have structured data in the &,M to implement this software. The

major benefits from the implementation is savin about 9A percent of the transaction time at the

#TMs- ability to personali"e communication via self5service channels enablin activeenaement with the customer- which further enhances the ability of the &,M for analytics.

7D& has revamped its corporate website in line with its communication philosophy.

The new improved- interactive- and user5friendly website is in sync with its need5basedcommunication stratey of helpin individuals throuh their decision of selectin the riht plans

that fit their needs.

N Prote5t!on3 (eed for a sound income protection in case of unfortunate demise of an

individual

N In'estent (eed to ensure lon5term real rowth of an individual!s moneyN Sa'!n%3 (eed to save for the milestones and protect an individual!s savins too

N Ret!reent3 (eed to save for a comfortable life post retirement

The new improved website leveraes to educate customers in choosin the riht. The

website is desined to provide an enhanced user e6perience to our e6istin as well as prospectivecustomers throuh simple naviation- faster access- and rich content and enhanced utility as a

service delivery tool. The objective of their new website is to educate customer!s riht from the process of identifyin their needs- to the final process of select the plan that fits their needs- the

website features an elaborate and e6clusive *nowlede section desined to help a customer.

T)e ot)er sa:!ent features of t)e +e9s!te are

• &aters to all types of $nternet users 5 advanced- moderate and new users

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• aster and convenient naviation /e.. no need to use bac* pae button access to relevant

and important lin*s available on every web pae2

• Jey information at your finertips. e.. structured flow of *ey product information and their 

features

• %nhanced interactivity throuh user interaction and involvement /tools and calculators2

• Modular structure ma*in the website future ready with fle6ibility to accommodaterestructurin and additional content in future

• Lses flash and other advanced software to provide a better surfin e6perience to the user- but

throuh its intellience moves to a classic mode if the user does not have the reCuisite

software to view the same.

• &ompatible with all browser s i.e. $nternet %6plorer < and above- irefo6 Mo"illa- 0afari-

=pera and Goole &hrome

or 7D&- the &,M activities span three sements3 #a5$off!5e= +)!5) ena9:es a::transa5t!ons7  or instance- a transfer of funds will involve recordin the transfer reCuest-debitin and creditin the account appropriately and the transformation by tele6 or demand draft.

The bac* office enables the core activities of ban*in transactions. D!str!9ut!on of t)e 9an$s>ro"u5ts an" ser'!5es !n t)e ar$et7  That is- enablin customer interaction throuh the

$nternet- #TMs- the mobile phone.7D&s corporate customers need not visit the ban* for manyof their transactions either. P&5based corporate ban*in lets authori"ed personnel in corporates

open letters of credit or pays suppliers and interates the transaction with the %,P system. The

third sort of automation enables the business intellience and &,M aspects of a ban*s business.7D& :an* can ana:(,e 5)anne: >rof!ta9!:!t(. 0ay- determine which type of customer access

which channel the most- and evaluate the cost5benefits of offerin a service to customers. or 

cash manaement- they use a pac*ae from a Pune company called &ashes. There Depositorysystems run on software provided by Mumbai5based Jalpataru. or loans- that uses (ucleus

0oftware. To provide round5the5cloc* service and support to its customers- 7D& :an* has

Lni65based systems from 0un Microsystems as hosts for its ban*in software. $t is in the processof movin the application to a mainframe5class L($V machine /the %1AAAA from 0un2 .Many

other systems run on $ntel based &ompaC or $:M hardware with Microsoft (T or )indows 4AAA

as the =peratin platform. The systems are run on a centrali"ed basis with the branches accessin

them via telecommunication lines /leased lines from the DoT2. #ll departments within theorani"ation were automated simultaneously. They wor* on a centrali"ed database- the addition

of new branches and new cities made very little impact on the day5to5day operations of the other 

e6istin branches. %very server at 7D& :an* had its own direct attached storae that led todistributed storae uprades and inefficient use of storae. The storae sub5systems were not

hihly available and resilient. Thus- to provide scalable- reliable storae systems- and a 0#(

environment for all their applications- 7D& :an* opted for a solution from 7itachi Data

0ystems. Playin in a dynamic mar*et- where there is a constant need to innovate and stay aheadof competition- 7D& :an*s objective is to build sound customer franchises across distinct

 businesses- so as to become the preferred provider of ban*in services for taret retail and

wholesale customer sements.

CRM !n S#I

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The need for system automation became critical at 0:$. The challene was to meet the

demandin service and fulfillment levels of the rowin. 0:$ was on the loo*out for a

technoloy solution that was easy to implement- cost5effective and robust to e6pand its presencein the insurance sector and achieve a hiher deree of service differentiation. #lthouh the

orani"ation had a centrali"ed system- most of the wor* was done manually. they had aclientIserver architecture in place. :ut it was not interated with the leacy systems.

%arly on- the top manaement reali"ed that technoloy was a crucial driver for productand service delivery. #lthouh usin the e6tensive 0:$ roup platform for cross5sellin products

and services was a viable option- reachin and enain the customer cost effectively reCuired a

technoloy bac*bone. %arlier- they had little enterprise software to support its business and the processes were carried out in an ad hoc manner.

There were hiccups as various centers had problems connectin to the &,M portal- which

have been solved. They are usin multiple types of connectivity- leased lines that terminate at thecentral data center in Mumbai- broadband connections- dial5up connections- telephone lines- etc.

The type of connectivity depends on the number of users in that particular branch and the *ind of 

wor* bein done there. They have their mail server and other functionalities on the portal too.

Te5)no:o%(

The development tool- )eb 'oic )or*shop- is Qava5based- allowin people at 0:$ to develop

and customi"e applications at a faster pace. #pplications runnin on the system permit themanaement of content- merchandise and campain5related details. The company has even

moved its internal applications to the portal. Thus- even when a staff member is wor*in

internally- he is wor*in with an interface of a browserIportal. )hat used to be on a clientIserver environment is now on the portal.

unctions li*e cash manaement- proposal details and issuin policies all happen on the

 portal. 7avin deployed )eb 'oic- 0:$ is able to run its cycle5all its processes riht from

claims processin to &,M5on the portal. 0ome features of the system are load balancin-effective code deployment and clusterin support /496>2. Plans are afoot to use the portal for 

 providin self service to customers- partners and employees. =ne can just come in- lo on to the

 portal- and access any *ind of information.0:$ implemented the system in a different manner. )ith this initiative- 0:$ has derived

Cuite a few benefits. or instance- it has been able to reduce the Turn #round Time /T#T2.

“:ecause of this initiative they could spot a few processes that would otherwise never bereali"ed. They have outsourced some routine wor* which was done centrally and was manual.

 (ow- irrespective of the location of the wor*- it!s done throuh the portal and they are able to

manae it better.

Sa'!n% t!e an" one(Process improvements are evident. #ll of this happened with minimal system chanes without

addin to the e6istin infrastructure The solution has also brouht down by ;A percent the timeta*en for specific processes li*e cash manaement. )ith a view to understandin the data Cuality

aps and to develop a road map to closin them- 0:$ enaed 0pectrum :usiness 0upport 'td.!s

Data fi6 0olutions team /now Data fi6 Technoloies Pvt. 'td.2 to underta*e a Data Buality 0tudyand #udit /DB #udit2.

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Data ua:!t( Consu:t!n% an" Au"!t7

0:$ is eCuipped to develop a blue5print for their &ustomer Buality $nitiatives to createlon5term competitive advantae. 0tate :an* of $ndia /0:$2- $ndia!s larest financial services

conlomerate has contracted to implement #nti Money 'aunderin /#M'2 software #M'=&J 

from 8i $nfotech 'td .it helps the ban* in manain its overnment clients better. &ashW)illTMhelps 0:$ improve revenue- ma6imi"e profits- optimi"e costs- and establish efficient

manaement systems to accelerate rowth.0:$ is now usin (ucleus 0oftware!s &ashW)illTM

for Drafts- $ncome Ta6 ,efund =rders /$T,=2- Multi &ity &heCue /M&&2 and &ollectionsservices. The implementation was done in a phased manner where Payments and &ollections

modules implemented initially were subseCuently replaced by the newer version of 

&ashW)illTM. (ucleus &ashW)illTM will power the cash manaement product of 0tate :an* 

of $ndia. $t supports the ban* in handlin of overnment business li*e $T,=- 0:$ rihts issue.. (ucleus &ash Manaement 0olution &ashW)illTM built on new eneration technoloies of 

=racle empowers ban*s to offer their corporate customers optimi"ed cash manaement services-

dramatically improvin funds collection and inflow forecastin- payment dispatch and funds

utili"ation. $t provides anytime- anywhere access to Cuality real5time consolidated informationand seamlessly supports multiban*- multi5currency- multi5linual transactions- ensurin smooth

flow of information and cash.

CRM +!t) PN#P(: chose 0pectrum :usiness 0upports $nsiht solutions /now part of $nsiht Technoloies Pvt.

'td.2 to provide the Data5cleansin and D% duplication solution for the first 9.8 million records

from branches. The followin tas*s were done by the $nsiht team- usin 0crubby for Data5cleansin and Decuple for Data D% duplication3

Data &leansin and D% duplication of Mirated Data.

X Generatin e6ception reports of bad Cuality data based on various data Cualitydimensions li*e invalidity- inaccuracy- missin values- precision etc.

X Developin onscreen validation routines which could be used by the :ranches.

X Measurin success of validation and incorporatin corrections bac* into the system.

X Data Deduplication by identifyin LniCue $ndividuals and 7ouseholds.X Generatin various &ustomer sementation reports which could be used by P(:s thin* 

tan*.

T)e fo::o+!n% $e( 5ustoer "!s5o'er!es +ere >art of t)e ana:(s!s

5 Top 4AH of customers.

5 Georaphical and Demoraphic sementation.

5 Data Buality #nalysis.

5 'oyalty scores based on house holdin.

The visionary "eal and the futuristic view of the :an*!s top manaement in the year 

4AAA54AA1 incubated the idea of introduction of a &entrali"ed :an*in solution. The bold andinnovative thouht culminated into the &:0 architecture with inacle application on =racle

Database and 0un hardware platform with 0olaris =peratin 0ystem. $n 4AA154AA4- P(:

embar*ed upon a transformation journey unparalleled in the country in terms of scale and

4

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technoloy. The ban* became the first public sector ban* in $ndia to opt for a new eneration

core ban*in platform E inacle from $nfosys. 0ince then- inacle has enabled the ban* to

consolidate and centrali"e its operations- improvin branch efficiency and productivity per employee. &onsolidation has also resulted in reduction of revenue lea*ae and cost- while

increasin ease of technical support and maintenance at branches. )ith inacle!s aile and future

 proof technoloy- the ban* today has over 44-;AA concurrent users. The solution!s scalability hasalso enabled the ban*!s scalability to be the best in the country with the number of pea* 

transactions at 8.; million. inacle core ban*in platform also provides the ban* with

e6ceptional aility for product innovation and improved fle6ibility of operations. )ith seamlessinteration of delivery channels such as #TM and internet ban*in solutions- P(: is able to

 provide 49V> services to customers at a reduced transaction cost. 0un 0P#,& enterprise M

series and enery efficient &hip Multi5Threadin /&MT2 systems runnin the 0olaris =peratin

0ystem delivered hiher performance and scalability- enablin P(:!s architecture to scaleseamlessly. Periodic consolidation of servers and storae by 0un Professional 0ervices also

delivered important benefits E optimi"in compute and storae utili"ation- reducin power-

coolin and space costs sinificantly over a period of time. 0un technoloies also ensured

continuous availability of the ban*in platform with the Disaster ,ecovery 0ite established bythe ban* and as part of test drills- the :an* has successfully operated out of its alternative

datacenter /D,02. P(:!s choice of the =racle Database has provided the ban*!s &,Minfrastructure with robustness- manaement features- security and scalability as well as

 performance reCuirements to service 8.; million transactions and 44;AA concurrent users E a

sinificant achievement in the $ndian ban*in industry

B7 Stu"( O9@e5t!'e

To study the present state of customer relationship manaement in Public and

Private sector ban*s- identifyin the important aspects of &,M- the customer view point on the

e6istin e5&,M- fiurin out e6istin aps present in the system and tryin to fiure out

different ways to improve e5&,M in public and private sector ban*s

4>

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Se5on"ar( Resear5) an" "ata

0econdary data was collected as part of this research to provide bac*round information related

to the study area. &ollection of secondary data also provided a better insiht to various

theoretical framewor*s and models already e6istin in the subject area and provided a solid

foundation for desinin in5depth interviews that were reCuired to collect primary data.

To cover a wide spectrum of views and to achieve an unbiased overview of the subject area- most

of the relevant data collected throuh the secondary research method were used in literature

review. This detailed review of literature related to e5&,M provided a proper understandin of 

the earlier wor* conducted in this broad area and raised research Cuestions reardin the

techniCue for e5&,M. 'iterature review also provided information about specific issues- which

were come forward while usin e5&,M

Pr!ar( Resear5)

&ollection of primary data throuh the Cualitative research method was vital to the success of 

this research. This is mainly because the aim of this research is to identify whether the

transformational effects of e5&,M method predicted in literature were actually possible in a

 practical conte6t. $t is also worth noticin the fact that e6istin academic research related to e5

&,M does not provide a clear data.

7 Data Ana:(s!s

Sa>:!n%

There are four ban*s- which have applied e5&,M systems to their customer service in Mumbairecently3 0:$- P(:- 7D&- $&$&$ Buestionnaires were distributed to 9A e5&,M e6periencedcustomers of these ban*s. )e received >;H usable responses for the study.

These four ban*s have acted internationally by issuin financial products such as lobale6Cuisite articles- international stoc* funds- and %uropean mar*et funds- etc. This research data5

collection was desined to use these sample ban*s and then analysed these to build the

theoretical relationship. The research results could be hihly e6pected toward enerali"ation

4@

8/17/2019 MRP eCRM

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 because the new e6tension theory could contribute and apply to the mostly ban*in systems.

These ban*s also issue many diversified products- includin3 traditional financial merchandise

such as stoc*s- bonds- deposits- and financial bills- etc. popular financial merchandise such asreal estate investment trusts /,%$T02- cash cards- and credit cards- etc. and new financial

merchandise such as hih5tech industry funds- emerin mar*et stoc*s- and lobal e6Cuisite

articles- etc. Data from these sample ban*s were used to show how an e5&,M service plays animportant role in the mar*etin interation process. 0pecifically- e5&,M raises the level of 

seller5buyer transaction satisfaction when sellersIban*s successfully promote their financial

merchandise to buyersIcustomers- because sellers could use e5&,M service to understand the preferences and needs of the customers.

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1 . AH

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es - >AH

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Custoer Va:ue I>ro'eent strate%!es

8

8/17/2019 MRP eCRM

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a? I"ent!f( Custoer Va:ue

$n the funds industry- the cost of customer acCuisition is very hih and the sellin cycle is Cuitelon. $t ta*es easily 154 years- if not loner- for prospectin a customer. Thus- the &apability to

retain e6istin customers- specially the ood ones- is crucial to und 0ervices.

7ence- it is of paramount importance to3

12 ind out what these customers value most

42 Deliver such value to satisfy them /or e6ceed their e6pectations282 (urture the e6istin relationship

92 Jeep them as our loyal customers all the time.

To find out what are the services valued most by the tareted 4AH of the customer- we need toconduct face5to5case interview sessions with the customers individually to solicit their direct

feedbac*. 7avin said so- $ recommend that a standard Cuestionnaire to be desined to facilitate

the interview sessions. :y doin so- we allow the fle6ibility to obtain any unsolicited input from

customers yet we can also set the scope of the interview so that we can have a common andmeaninful base to further our investiations.

9? De5!"e an" De'e:o> Va:ue I>ro'eent In!t!at!'es

#fter we find out the customer e6pectation and value ap- we have to plan the detailed actions to bride the aps.

5? I>:eent I>ro'eent In!t!at!'es

#fter we wor* out the improvement initiatives- we have to form tas* force/s2 to implement them.

T)ree fa5tor !>ro'eent Re5oen"at!on for CRM

  Peo>:e Fa5tor

  # positive interaction amon employees- customers- and vendors will

create a successful enterprise.  $f there are complaints from employees about the customers- vendors-

other departments as well as complaints about employees from the side of 

customers- the aps have to be brided before startin a &,M initiative.

 

Trainin sessions should be held for employees to educate them about theimportance of &,M and train them in the same.

  Pro5ess Fa5tor

  The &,M success is also influenced by the process factor.

  :efore introducin a new technoloy- the ban* manaement needs to

review their business and wor*flow processes  P:ann!n% Fa5tor

8>

8/17/2019 MRP eCRM

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  Plannin is a particular *ind of decision5ma*in that addresses the specific

future that manaers desire for their orani"ations.  # well5developed plan will ive the manaers to stretch boundaries and

achieve orani"ation oals.  0ome of the important parameters in the plan are Deadlines- le6ibility-

$nteration- and Metrics.

/.7Con5:us!on

The ban*s are now under tremendous pressure to retain the older customers because of the

competition in the :an*in 0ector. This would not only ensure better customer relations but also

8?

8/17/2019 MRP eCRM

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loyalty amon them- which is very critical and important in today!s competitive world. :an*s

have started ac*nowledin the importance of the customers in developin their business. They

have reconi"ed that it is essential to protect and row its customer base and ultimately its

 profitability. The ban*s can do this by buildin a stron relationship with the customers. To meet

the customer needs and to beat the competition- they must deliver superior Cuality service. The e5

&,M approach adopted by ban*s focuses on ma6imi"in the value for the customer and the

 ban*. The *ey drivers to customer loyalty are3

/a2 Positive online 0ervices/b2 7onesty- $nterity and ,eliability.

/c2 Productive advice and delivery of the promised service.

/d2 &onsistent delivery of superior Cuality service./e2 0implicity and easiness of doin business.

/f2 # fair and efficient complaints resolution.

There is an immense need of adeCuate trainin and motivation to the ban*ers to create fruitful

and everlastin relations with their valuable customers. The more effectively you can useinformation about your customers to meet their needs- hiher the satisfaction the more profitable

we will be. =perational e5&,M needs analytical e5&,M with predictive data minin models at

its core.

//7Referen5es• www.cdrb.orIjournalI4AA@I9I4.pdf 

• http3IIrbi.or.inIscriptsI:0&ircular$nde6Display.asp6

• citeseer6.ist.psu.eduIviewdocIdownloadUdoiY1A.1.1.14

8/17/2019 MRP eCRM

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• http3IIwww.thelobaljournals.comIijarIfile.phpUvalYMTL6(w

• http3IIprj.co.inIsetupIbusinessIpaper9A.pdf 

• www.isrj.netILploadedDataI44A.pdf 

• http3IIwww.manaementparadise.comIitmmumbaiIdocumentsI;?@?Iicici5ban*5crmI

• http3IIwww.ijcns.comIpdfI4AA@.pdf 

• www.euroasiapub.orI$Q,$MIsep4A14I

8/17/2019 MRP eCRM

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1. (ame

4. #e

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4A8A

 8A9A

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;A

8/17/2019 MRP eCRM

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 Demat

?. 7ow many time you visited to ban* in monthU

 Mark only one oval.

'ess than ; times

 ;1A times

 More than 1A times

@. Do you use $nternet ban*inU

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es

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1A. )hat types of service you li*e while usin internet ban*inU

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und Transfer 

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11. 7ow would you rate customer care services rendered by the ban* with respect to $nternet

:an*inU

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1

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14. 7ave you loed any compliant reardin internet ban*in facilityU

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18. $f yes- in how many days ban* addresses the issueU

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48 days

 8> days

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