Service Project DHIRAJ ROLL NO 41

8/4/2019 Service Project DHIRAJ ROLL NO 41

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7Ps of BANKINGPRODUCT MIX

The banks primarily deal in services and therefore, the formulation of product mix

is required to be in the face of changing business environment conditions. Of

course the public sector commercial banks have launched a number of policies and

programs for the development of backward regions and welfare of the weaker

sections of the society but at the same time it is also right to mention that their

development-oriented welfare programs are not optimal to the national socio-

economic requirements. A proportional contraction in the number of customers is

found affecting the business of public sector commercial banks. The changingpsychology, the increasing expectation, the rising income, the changing lifestyles,

the increasing domination of foreign bans and the changing needs and

requirements of the customers at large make it essential that they innovate their

service mix and make them of worked class. The development of new generic

product, especially when the business environment is regulated is found a difficult

task. However, it is pertinent that banks formulate a package in tune with the

changing business conditions. Against this background, we find it significant that

the banking organizations minify, magnify, combine and modify their service mix.

In the formulation of service mix, the banks can follow two guidelines, first is

related to the processing of product to market needs and the second is concerned

with the processing of market needs to product. In the first process, the needs to the

target market are anticipated and visualized and therefore, we expect the prices

likely to be productive. In the second process, the banks react to the expressed

needs and therefore we consider it reactive. It is essential that every product is

measured up to the accepted technical standards. This is because no consumer

would buy a product, which contains technical faults. Technical perfection in

service is meant prompt delivery, quick disposal, and presentation of right data,

right filing, proper documentation or so. If computers start disobeying, the

command and the customers get wrong facts, the use of technology would be a

minus point, and you dont have any excuse for your faults.

Marketing aims not only offering but also at creating\innovating the

services\schemes found new to the competitors vis-a vis- to the customers. The


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enhanced customer patronage would be a reward to the bank. The additional

attractions, the product attractiveness would be a plus point of your mix, which

would help you in many ways. This makes it essential that the banking

organizations are sincere to the innovations process and try to enrich their

peripheral services much earlier than the competitors. We also find the productportfolio of the banks. While formulating the services mix, it is also pertinent that

the bank professionals make possible affair synchronization of core and peripheral

services. To be more specific, the peripheral services need an intensive care since

the core services are found by and large the same. Innovating the peripheral

services thus appears to be an important functional responsibility of marketing

professionals. We cant deny the fact that if the foreign banks have been getting a

positive response; the credibility goes to their innovative peripheral services.

Thus, the formulation of product mix is found to be a difficult task that requiresworld-class professionalism.

PROMOTIONAL MIX:

Promotion mix includes advertising, publicity, sales promotion, wordofmouth

promotion, personal selling and telemarketing. Each of these services needs to be

applied in different degree. These components can be useful in the banking

business in the following ways:

Advertising

Advertising is paid form of communication. Banking organizations use this

component of the promotion mix with motto of informing, sensing and persuading

the customers. While advertising it is essential to be aware of key decision making

areas so that instrumentally helps banks at micro and macro levels.

Finalizing the budget:

This is related to the formulation of the budget for advertisement. The bank

professionals, senior executives and even the policy planners are found to be

involved in the process. The business of a bank determines the scale of the

advertisement budget. In addition, the intensity of competition also plays a decisive

role since in the majority of cases; we find a increase in the budget due to a change

in the competitors strategy.


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Selecting a suitable vehicle:

There are a number of devices to advertise, such as broad cast media, telecast

media and print media. In the face of the budgetary provisions, it is necessary to

select a suitable vehicle. For promoting the banking business, the print media isfound to be economic as well as effective.

Making possible creative:

The advertising professionals bear the responsibility of making the appeals,

slogans and messages more creative. Here, creative means making the

advertisement programs distinct to the competitive organizations, which are active

in influencing the impulse of the customers and successful in informing and

sensing the customers. This requires an in-depth knowledge of the receivingcapacity of the target market for which the advertisements are designed.

Testing the effectiveness:

It bears an analogous significance that our advertisements are effective in

influencing the impulse of customers by energizing persuasion. For making the

process effective, it is essential to test the effectiveness before launching of the

commercial advertisements.

Instrumentality of branch managers:

At micro level, a branch manager bears the responsibility of advertising locally so

that the messages reach the target audience.

Characters and themes:

At apex level it is also important that while advertising the senior executives watch

the process minutely and select events, characters having a regional orientation.

The popular characters and sensational moments are likely to be impact generating.

The theme for appeals and messages also needs due attention. Of course, they have

a legitimate right of advertising but it is not meant that like the goods

manufacturing organizations, the service generating organizations also start

making invasion on culture. It is necessary to regulate a bias to gender, profession,

region or so.


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Public relations:

In the banking services the effectiveness of public Relations is found in high

magnitude. It is in this context that difference is found in designing of the mix for

promoting the banking services.

Telemarketing:

The telemarketing is a process of promoting the business with the help of

sophisticated communication network. Telemarketing is found instrumental in

advertising the banking services and the banking organizations can use this tool of

the promotion mix both for advertising and selling. This minimizes the dependence

of banking organizations on sales people and just a counter or center as listed in the

call numbers may service multi- dimensional services.Telemarketing is likely to play an incremental role in marketing the banking

services. The leading foreign banks and even some of the private sector

commercial banks have been found promoting telemarketing and they have been

getting positive results for their efforts.

Word-Of- Mouth:

Much communication about the banking services actually takes place by word- of-

mouth information, which is also known as word- of- mouth promotion. The oral

publicity plays an important role in eliminating the negative comments and

improving the services. This also helps the banker to know the feedback, which

may simplify the task of improving the quality of services. This component of

promotion mix is not to influence budget adversely or generate additional financial

burden. By improving the quality of services and by offering small gifts to the

word- of- mouth promoters, bankers can get more business command in their area.

The above facts make it clear that such kind of promotion is influenced by a

number of factors. The most dominating factor is the quality of services offered.

The bank professionals, the frontline staff and the senior executives should realize

that degeneration in quality would make this tool effective.


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PRICE MIX

In the formulation of marketing mix, the pricing decisions occupy a place of

outstanding significance. The pricing decisions include the decisions related tointerest and fee or commission charged by banks. Pricing decisions are found

instrumental in motivating or influencing the target market. The RBI regulates the

rate of interest and the Indian Banks Association controls other charges. In our

country, the price mix is more important because the banking organizations are

also supposed to sub serve the interests of the weaker sections and the backward

regions. Also in making the pricing decisions, the Government Of India

instrumentalists or commands everything as a shadow policy maker. This also

complicates the price mix for banking sector.Pricing policy of a bank is considered important for raising the number of

customers vis--vis the accretion of deposits. Also the quality of service provided

has direct relationship with the fees charged. Thus while deciding the price mix

customer services rank the top position. Banks also have to take the value

satisfaction variable in to consideration. The value and satisfaction cannot be

quantified in terms of money since it differs from person to person. Keeping in

view the level of satisfaction of a particular segment, the banks have to frame the

pricing strategies.

The banking organizations are required to frame two- fold strategies. First, the

strategy is concerned with interest and fee charged and the second strategy is

related to the interest paid. Since both the strategies throw a vice- versa impact, it

is important that banks attempt to establish a correlation between two. It is

essential that both the buyers as well as the sellers have feeling of winning.

THE PEOPLE

Sophisticated technologies no doubt, inject life and strength to our efficiency but

the instrumentality of sophisticated technologies start turning sour id the human

resources are not managed in a right fashion. We cant deny the fact that if foreign

banks are performing fantastically; it is not only due to the sophisticated

information technologies they use but the result of a fair synchronization of new


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information technologies and a team of personally committed employees. The

moment they witness lack of productive human resources even the new generation

of information technologies would hardly produce the desired results. In addition

to the professional excellence, the employees working in the foreign banks are

generally value- based. Thus we accept the fact that generation of efficiency issubstantially influenced by the quality of human resources. The quality for banking

sector is an aggregation of all the properties, which are found essential for

generating the efficiency and projecting a fair image. Even efficiency essentially is

supported by ethical dimension, humanity and humanism.

The development of human resources makes the ways for the formation of human

capital. Human resources can be developed through education, training and by

psychological tests. Even incentives can inject efficiency and can motivate people

for productive and qualitative work.

THE PROCESS

Flow of activities: all the major activities of banks follow RBI guidelines. There

has to be adherence to certain rules and principles in the banking operations. The

activities have been segregated into various departments accordingly.

Standardization: banks have got standardized procedures got typical transactions.

In fact not only all the branches of a single-bank, but all the banks have some

standardization in them. This is because of the rules they are subject to. Besides

this, each of the banks has its standard forms, documentations etc. Standardization

saves a lot of time behind individual transaction.

Customization: There are specialty counters at each branch to deal with customers

of a particular scheme. Besides this the customers can select their deposit period

among the available alternatives.

Number of stores: numbers of steps are usually specified and a specific pattern is

followed to minimize time taken.

Simplicity: in banks various functions are segregated. Separate counters exist

with clear indication. Thus a customer wanting to deposit money goes to

deposits counter and does not mingle elsewhere. This makes procedures not only

simple but consume less time. Besides instruction boards in national boards in

national and regional language help the customers further.


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Customer involvement: ATM does not involve any bank employees. Besides,

during usual bank transactions, there is definite customer involvement at some or

the other place because of the money matters and signature requires.

THE PHYSICAL EVIDENCE

The physical evidences include signage, reports, punch lines, other tangibles,

employees dress code etc. The companys financial reports are issued to the

customers to emphasis or credibility. Even some of the banks follow a dress code

for their internal customers. This helps the customers to feel the ease and comfort

Signage: each and every bank has its logo by which a person can identify the

company. Thus such signages are significant for creating visualization and

corporate identity.Tangibles: banks give pens, writing pads to the internal customers. Even the

passbooks, chequebooks, etc reduce the inherent intangibility of services.

Punch lines: punch lines or the corporate statement depict the philosophy and

attitude of the bank. Banks have influential punch lines to attract the customers.

Banking marketing consists of identifying the most profitable markets now

and in future, assessing the present and future needs of customers, setting business

development goals, making plans-all in the context of changing environment.

THE 4 Is OF BANK MARKETING

There are four distinctive characteristics of service, which create challenges and

opportunities. They are commonly known as the four Is namely:

1. Intangibility2. Inconsistency3. Inseparability4. Inventory.


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1.)IntangibilityIt is that characteristics of a service indicating that it has no physical attributes

that a person may feel, hear, taste before they buy it.

For example, a person who is new to a bank and wants to open up an account in

the bank cannot feel or taste it and ascertain whether the bank is good or bad

before opening an account. He has to experience it, feel how the service is, how

humbly do people or the staff members behave with him, is his money invested or

put in a safe account or not. It is only then he would come to know about the

services. This could be done only from the trust that he would have built up, as

these things cannot be inspected before the use. Therefore, most banks now a days,indulge in tangibilizing the intangibles i.e. they provide tangible clues to the

prospective customers like the different awards that they have received for their

superior services, their annual records, etc. this helps the customers in selecting the

banks more easily.

2.)InconsistencyIt refers to variability or heterogeneity. In case of a bank, a new customer or a

rarely going customer may not get the same type of service as a regular customer

may get. This may be the case because the staff members know the person well as

he comes often but they dont know that person who does not come in again and

again.

Also another point for inconsistency is that there is variability in the service

delivered by different people, that is services delivered differs from people to

people. Like in case of a bank, different staff members would provide different

services. In the bank, a person may have lot of work and may not attend to a

customer .On the other hand, some other person with the same work may attend

him with great enthusiasm. In order to tackle this inconsistency aspect, adequate

training and motivation must be provided to the employees. This will result in

higher number of customers for the bank, higher profits and subsequently lower

retention rate.


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Eg. PUNJAB NATIONAL BANK prides itself for providing crown of quality

for customer who is the king and is an ISO 9002 certified bank. Thus, they will

have to ensure that their service quality level is always consistent and up to the

mark to meet the tall expectations of their customers.

3.)InseparabilityInseparability is that characteristics of a service indicating that it cannot be

separated from creator-seller of the product. Many services are created, delivered

and consumed simultaneously through interaction between customers and service

producers. This is a source of major limitation for the bank. But technology has in

a big way helped the banks to cope with this problem.

Production of services, when it comes to banks can be performed in the following

3 ways:

(i) Co- production: In this case both the service provider and the customer work

together to produce services. When a customer wants to withdraw cash from the

banking premises, then both the customer and the service provider needs to be

present.

(ii) Isolated production: It is that part of service that is done outside to an

organization. Eg. Tele-Banking.

(iii) Self Service production: In this case, the customer uses the equipments of the

service providers and self serves it. Eg. ATM.

4.)InventoryInventory relates to the perishable characteristics of the service marketing. If a

customer starts his day at eight in the morning and ends it at four, but if bank is

open only from 9:00 a.m. to 1:00 p.m. in the afternoon, then one might not be able

to attend it. The demand for banking services also fluctuates by day and hour. The

day before the holiday, weekend, most Mondays and Saturdays, pension and salary


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days are heavier than normal banking hours. So service faces a lot of problem from

inventory as it cannot be stored, saved and then used later.

DEFINITION OF E-BANKING

Electronic banking, also known as electronic funds transfer (EFT), is simply the

use of electronic means to transfer funds directly from one account to another,

rather than by cheque or cash. You can use electronic funds transfer to:

Have your paycheck deposited directly into your bank or credit union checkingaccount.

Withdraw money from your checking account from an ATM machine with apersonal identification number (PIN), at your convenience, day or night.

Instruct your bank or credit union to automatically pay certain monthly billsfrom your account, such as your auto loan or your mortgage payment.

Have the bank or credit union transfer funds each month from your checkingaccount to your mutual fund account.

Have your government social security benefits check or your tax refunddeposited directly into your checking account.

Buy groceries, gasoline and other purchases at the point-of-sale, using a checkcard rather than cash, credit or a personal check.

Use a smart card with a prepaid amount of money embedded in it for useinstead of cash at a pay phone, expressway road toll, or on college campuses at

the library's photocopy machine or bookstores.


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Use your computer and personal finance software to coordinate your totalpersonal financial management process, integrating data and activities related

to your income, spending, saving, investing, recordkeeping, bill-paying and

taxes, along with basic financial analysis and decision making.


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VARIOUS FORMS OF E-BANKING:

INTERNET BANKING:

Internet Banking lets you handle many banking transactions via your personal

computer. For instance, you may use your computer to view your account balance,

request transfers between accounts, and pay bills electronically.

Internet banking system and method in which a personal computer is connected by

a network service provider directly to a host computer system of a bank such that

customer service requests can be processed automatically without need for

intervention by customer service representatives. The system is capable of

distinguishing between those customer service requests which are capable of

automated fulfillment and those requests which require handling by a customer

service representative. The system is integrated with the host computer system of

the bank so that the remote banking customer can access other automated services

of the bank. The method of the invention includes the steps of inputting a customer

banking request from among a menu of banking requests at a remote personnelcomputer; transmitting the banking requests to a host computer over a network;

receiving the request at the host computer; identifying the type of customer

banking request received; automatic logging of the service request, comparing the

received request to a stored table of request types, each of the request types having

an attribute to indicate whether the request type is capable of being fulfilled by a

customer service representative or by an automated system; and, depending upon

the attribute, directing the request either to a queue for handling by a customer

service representative or to a queue for processing by an automated system.

AUTOMATED TELLER MACHINES (ATM):

An unattended electronic machine in a public place, connected to a data system

and related equipment and activated by a bank customer to obtain cash


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withdrawals and other banking services. Also called automatic teller machine,

cash machine; also called money machine.

An automated teller machine or automatic teller machine (ATM) is an

electronic computerized telecommunications device that allows a financialinstitution's customers to directly use a secure method of communication to access

their bank accounts, order or make cash withdrawals (or cash advances using a

credit card) and check their account balances without the need for a human bank

teller (or cashier in the UK). Many ATMs also allow people to deposit cash or

cheques, transfer money between their bank accounts, top up their mobile phones'

pre-paid accounts or even buy postage stamps.

On most modern ATMs, the customer identifies him or herself by inserting a

plastic card with a magnetic stripe or a plastic smartcard with a chip that contains

his or her account number. The customer then verifies their identity by entering a

passcode, often referred to as a PIN (Personal Identification Number) of four or

more digits. Upon successful entry of the PIN, the customer may perform a

transaction.

If the number is entered incorrectly several times in a row (usually three attempts

per card insertion), some ATMs will attempt retain the card as a security

precaution to prevent an unauthorized user from discovering the PIN byguesswork. Captured cards are often destroyed if the ATM owner is not the card

issuing bank, as non-customer's identities cannot be reliably confirmed.

The Indian market today has approximately more than 25,000 ATMs.

TELE BANKING:

Undertaking a host of banking related services including financial transactions

from the convenience of customers chosen place anywhere across the GLOBE and

any time of date and night has now been made possible by introducing on-line

Telebanking services. By dialing the given Telebanking number through a landline

or a mobile from anywhere, the customer can access his account and by following

the user-friendly menu, entire banking can be done through Interactive Voice
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Response (IVR) system. With sufficient numbers of hunting lines made available,

customer call will hardly fail. The system is bi-lingual and has following facilities

offered

Automatic balance voice out for the default account. Balance inquiry and transaction inquiry in all Inquiry of all term deposit account Statement of account by Fax, e-mail or ordinary mail. Cheque book request Stop payment which is on-line and instantaneous Transfer of funds with CBS which is automatic and instantaneous Utility Bill Payments Renewal of term deposit which is automatic and instantaneous Voice out of last five transactions.

SMART CARD:

A smart card usually contains an embedded 8-bit microprocessor (a kind of

computer chip). The microprocessor is under a contact pad on one side of the card.

Think of the microprocessor as replacing the usual magnetic stripe present on a

credit card or debit card. The microprocessor on the smart card is there for

security. The host computer and card reader actually "talk" to the microprocessor.

The microprocessor enforces access to the data on the card. The chips in these

cards are capable of many kinds of transactions. For example, a person could make

purchases from their credit account, debit account or from a stored account value

that's reload able. The enhanced memory and processing capacity of the smart card

is many times that of traditional magnetic-stripe cards and can accommodate

several different applications on a single card. It can also hold identification


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information, which means no more shuffling through cards in the wallet to find the

right one -- the Smart Card will be the only one needed.

Smart cards can also be used with a smart card reader attachment to a personal

computer to authenticate a user. Smart cards are much more popular in Europethan in the U.S. In Europe the health insurance and banking industries use smart

cards extensively. Every German citizen has a smart card for health insurance.

Even though smart cards have been around in their modern form for at least a

decade, they are just starting to take off in the U.S.

DEBIT CARD:

Debit cards are also known as check cards. Debit cards look like credit cards or

ATM (automated teller machine) cards, but operate like cash or a personal check.

Debit cards are different from credit cards. While a credit card is a way to "pay

later," a debit card is a way to "pay now." When you use a debit card, your money

is quickly deducted from your checking or savings account.

Debit cards are accepted at many locations, including grocery stores, retail stores,

gasoline stations, and restaurants. You can use your card anywhere merchants

display your card's brand name or logo. They offer an alternative to carrying acheckbook or cash.

E-CHEQUE:

An e-Cheque is the electronic version or representation of paper cheque. The Information and Legal Framework on the E-Cheque is the same as that of

the paper cheques. It can now be used in place of paper cheques to do any and all remote

transactions.

An E-cheque work the same way a cheque does, the cheque writer "writes" thee-Cheque using one of many types of electronic devices and "gives" the e-

Cheque to the payee electronically. The payee "deposits" the Electronic Cheque


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receives credit, and the payee's bank "clears" the e-Cheque to the paying bank.

The paying bank validates the e-Cheque and then "charges" the check writer's

account for the check

OTHER FORMS OF ELECTRONIC BANKING

Direct Deposit Electronic Bill Payment Electronic Check Conversion Cash Value Stored, Etc.


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BENEFITS OF E-BANKING

BENEFITS OF E-BANKING

For Banks:

Price- In the long run a bank can save on money by not paying for tellers or for

managing branches. Plus, it's cheaper to make transactions over the Internet.

Customer Base- The Internet allows banks to reach a whole new market- and a

well off one too, because there are no geographic boundaries with the Internet. The

Internet also provides a level playing field for small banks who want to add to their

customer base.

Efficiency- Banks can become more efficient than they already are by providing

Internet access for their customers. The Internet provides the bank with an almost

paper less system.

Customer Service and Satisfaction- Banking on the Internet not only allow the

customer to have a full range of services available to them but it also allows them

some services not offered at any of the branches. The person does not have to go to

a branch where that service may or may not be offer. A person can print of

information, forms, and applications via the Internet and be able to search for

information efficiently instead of waiting in line and asking a teller. With more

better and faster options a bank will surly be able to create better customer

relations and satisfaction.

Image- A bank seems more state of the art to a customer if they offer Internet

access. A person may not want to use Internet banking but having the serviceavailable gives a person the feeling that their bank is on the cutting image.


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For Customers:

Bill Pay: Bill Pay is a service offered through Internet banking that allows thecustomer to set up bill payments to just about anyone. Customer can select the

person or company whom he wants to make a payment and Bill Pay will withdraw

the money from his account and send the payee a paper check or an electronic

payment

Other Important Facilities: E- banking gives customer the control over nearly

every aspect of managing his bank accounts. Besides the Customers can, Buy and

Sell Securities, Check Stock Market Information, Check Currency Rates, CheckBalances, See which checks are cleared, Transfer Money, View Transaction

History and avoid going to an actual bank. The best benefit is that Internet banking

is free. At many banks the customer doesn't have to maintain a required minimum

balance. The second big benefit is better interest rates for the customer.


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The Housing Development Finance Corporation Limited (HDFC) was amongst the

first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to

set up a bank in the private sector, as part of the RBI's liberalization of the Indian

Banking Industry in 1994. The bank was incorporated in August 1994 in the name

of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank

commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build

sound customer franchises across distinct businesses so as to be the preferred

provider of banking services for target retail and wholesale customer segments, and

to achieve healthy growth in profitability, consistent with the bank's risk appetite.

The bank is committed to maintain the highest level of ethical standards,

professional integrity, corporate governance and regulatory compliance. HDFCBank's business philosophy is based on four core values - Operational Excellence,

Customer Focus, Product Leadership and People.

HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable

network of 1,506 branches spread in 635 cities across India. All branches are

linked on an online real-time basis. Customers in over 500 locations are also

serviced through Telephone Banking. The Bank's expansion plans take intoaccount the need to have a presence in all major industrial and commercial centres

where its corporate customers are located as well as the need to build a strong retail

customer base for both deposits and loan products. Being a clearing/settlement

bank to various leading stock exchanges, the Bank has branches in the centres

where the NSE/BSE have a strong and active member base.


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The Bank also has 3,573 networked ATMs across these cities. Moreover, HDFC

Bank's ATM network can be accessed by all domestic and international

Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express

Credit/Charge cardholders.

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have online

connectivity, which enables the bank to offer speedy funds transfer facilities to its

customers. Multi-branch access is also provided to retail customers through the

branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best

technology available internationally, to build the infrastructure for a world class

bank. The Bank's business is supported by scalable and robust systems whichensure that our clients always get the finest services we offer.

The Bank has prioritised its engagement in technology and the internet as one of its

key goals and has already made significant progress in web-enabling its core

businesses. In each of its businesses, the Bank has succeeded in leveraging its

market position, expertise and technology to create a competitive advantage and

build market share.


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E- BANKING AND OTHER PRODUCTS AT HDFC BANK

Loan Product Deposit Product Investment & Insurance

Auto Loan Loan Against

Security

Loan AgainstProperty

Personal loan Credit card 2-wheeler loan Commercial

vehicles finance

Home loans Retail business

banking

Tractor loan Working CapitalFinance Construction

Equipment Finance

Health CareFinance

Education Loan Gold Loan

Saving a/c Current a/c Fixed deposit Demat a/c Safe Deposit

Lockers

Mutual Fund Bonds Knowledge Centre Insurance General and Health

Insurance Equity and

Derivatives

Mudra Gold Bar

Cards Payment Services Access To Bank

Credit Card Debit Card Prepaid Card

NetSafe Merchant Prepaid Refill Billpay

NetBanking OneView InstaAlertMobileBanking


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--------------------------------

Forex Services--------------------------------

Product & Services Trade Services Forex service

Branch Locater

RBI Guidelines

Visa Billpay InstaPay DirectPay VisaMoney

Transfer eMonies

Electronic

Funds Transfer

Online Paymentof Direct Tax

ATM Phone Banking Email Statements Branch Network

HDFC BANK business strategy emphasizes the following:

Increase market share in Indias expanding banking and financialservices industry by following a disciplined growth strategy focusing on

quality and not on quantity and delivering high quality customer service.

Leverage our technology platform and open scalable systems to deliver moreproducts to more customers and to control operating costs.

Maintain current high standards for asset quality through disciplined creditrisk management.

Develop innovative products and services that attract the targetedcustomers and address inefficiencies in the Indian financial sector.

Continue to develop products and services that reduce banks cost of funds. Focus on high earnings growth with low volatility.


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TECHNOLOGY USED IN HDFC BANK

In the era of globalization each and every sector faced the stiff competition

from their rivals. And world also converted into the flat from the globe. After the

policy of liberalization and RBI initiatives to take the step for the private sectorbanks, more and more changes are taking the part into it. And there are create

competition between the private sector banks and public sector bank.

Private sector banks are today used the latest technology for the different

transaction of day to day banking life. As we know that Information Technology

plays the vital role in the each and every industries and gives the optimum return

from the limited resources. Banks are service industries and today IT gives the

innovative Technology application to Banking industries. HDFC BANK is the

leader in the industries and today IT and HDFC BANK together combined they

reached the sky. New technology changed the mind of the customers and changedthe queue concept from the history banking transaction. Today there are

different channels are available for the banking transactions.

We can see that the how technology gives the best results in the below diagram.

There are drastically changes seen in the use of Internet banking, in a year 2001

(2%) and in the year 2009 ( 45%).

This type of technology gives the freedom to retail customers.

Centralized Processing Units Derived Economies of Scale

Electronic Straight Through

Processing

Reduced Transaction Cost

Data Warehousing , CRM Improve cost efficiency, Cross

sell

Innovative Technology Application Provide new or superior

products

HDFC BANK is the very consistent player in the New private sector banks. New

private sector banks to withstand the competition from public sector banks came up

with innovative products and superior service.


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Conclusion

From all of this, we have learnt that information technology has empowered

customers and businesses with information needed to make better investmentdecisions. At the same time, technology is allowing banks to offer new products,

operate more efficiently, raise productivity, expand geographically and compete

globally. A more efficient, productive banking industry is providing services of

greater quality and value.

E-banking has become a necessary survival weapon and is fundamentally changing

the banking industry worldwide. To day, the click of the mouse offers customers

banking services at a much lower cost and also empowers them with

unprecedented freedom in choosing vendors for their financial service needs. No

country today has a choice whether to implement E-banking or not given the global

and competitive nature of the economy. The invasion of banking by technology has

created an information age and commoditization of banking services. Banks have

come to realize that survival in the new e-economy depends on delivering some or

all of their banking services on the Internet while continuing to support their

traditional infrastructure.

The rise of E-banking is redefining business relationships and the most successful

banks will be those that can truly strengthen their relationship with their customers.

Without any doubt, the international scope of E-banking provides new growth

perspectives and Internet business is a catalyst for new technologies and new

business processes. With rapid advances in telecommunication systems and digital

technology, E-banking has become a strategic weapon for banks to remain

profitable. It has been transformed beyond what anyone could have foreseen 25

years ago.

Two years ago, E-banking was a strategic advantage, nowadays; it is a business

reality, if not a necessity.


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Documents

Service Project DHIRAJ ROLL NO 41