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How can Internet

help the dwindling BANKING Sector

in IndiaConceptualized by Abhishek Bhardwaj

@

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True power of the Internet• In this time of crisis, cutting down

overheads and costs is on the “to do list” of every bank.

• Internet industry can definitely help if banks realize the true power of Internet.

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How is Internet currently employed?

• Net Banking / e-Banking / Online Banking – Statements / Transactions Summary

– Inter Branch Funds Transfer (all branches not e-banking enabled)

– Inter Bank Funds Transfer (all banks not enabled with this service)

– Bills Payment - Phone & Electricity

– Lead Generation for Deposits, Investment Plans, Credit Cards

• Marketing, Advertising, Brand Building and Lead Generation

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Poor monetization of traffic• In India net banking is one of the most popular activities

on the Internet.

• According to Alexa, the list of 100 most popular websites in India has 4 websites that are of top most banks in India.– www.icicibank.com - Rank 27, ICICI Bank – www.hdfcbank.com - Rank 34, HDFC Bank – www.onlinesbi.com - Rank 98, State Bank of India – www.citibank.co.in - Rank 100, Citi Bank

• Yet only partial monetization

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Online Banking• No doubt, online banking does save a lot

for the banks.

• It is an excellent facility for banks’ customers as well.

• It is 4th most popular activity on Internet in India after Email, Social Networking and e-Commerce.

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Huge amount of Traffic• Banks’ portals have so much of traffic and what

do visitors do?

– They transact – transfer funds– pay e-checks– fill lead form for a loans, insurance or an investment

plan.

• Why let go of such visitors who are thinking nothing but money and not just money; flowing money!

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How can Banks employ Internet?What can banks do?

How to monetize such HIGH-QUALITY traffic?

How can banks turn their online banking portals into a

minting machine?

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1. Let them Shop

• These customer are more than comfortable playing with their money on their bank’s website.

• If the bank could provide a Online Shopping Facility and great deals on daily need products like grocery, books, gadgets etc.

• Why would you or I even bother going to eBay or any online store and spending hours on bidding and comparing prices?

• No consumer can resist a Discount + Reward Points deal.

• Huge amount of money can be made by any bank since there is no product display cost involved; only order delivery costs and these costs can be bared by the suppliers and the bank could earn a commission on every sale.

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2. Payment gateway give-away

• Why services like Paypal or Google Checkout exist when banks handle all the transactions.

• Why can’t an online merchant just have a free payment plugin for his website powered by his bank?

• The bank could charge a small %age on every transaction.

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3. Online Customer support

• Every bank can offer customer support over the Internet.

• Millions of people use voice-chat enabled Instant Messengers.

• Does that ring a bell?– customers will now have a free mode to reach a bank.– no expensive telecom equipment– end to [your call is valuable to us, please stay on the line] bull

shit for customers (everyone hates to wait)– cost per seat = salary of support executive + electricity.

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4. Go Green• Use energy efficient eco-friendly web servers.

• promote paperless banking; we don’t need to sign any papers by hand these days. we have digital signatures available.

• a digital signature can cost around Rs.2000

• the bank can provide a digital signature to their customers for FREE.

• banks swill save more than that by resorting to paperless banking.

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5.Let Debit Cards go online• Most of the Indian online stores don’t accept debit cards.

• The number of debit card holders is 10 times more than that of credit card holders in India. Or may be even more.

• Let customers use debit cards for online shopping at least where they can pay in the Indian currency.

• No one would mind paying a small convenience fee as low as Rs.10 per transaction.

• Lets say, the number of daily online purchases in India is 1,00,000 and that means Rs.10,00,000 can be made everyday and that is Rs.36 crores to be made every year.

• Actual figures are actually more than that! 1 Lakh daily transactions happen on IRCTC’s website alone

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Loads of good opportunities for Indian IT companies to help banks in India and globally.

Please let me know how you liked this piece of concept curry.

Source: http://www.conceptcurry.com/internet-industry/banking-sector-dwindles-internet-industry-for-the-rescue/

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