CHANGING TRENDS OF BANKING INDUSTRY

Presented by-
by-

Punit Khatnani
Ashwani Singh
 Changing trends in banking

R The Banking sector has been immensely benefited from the implementation
of superior technology during the recent past, almost in every nation in the
world.

R Productivity enhancement, innovative products, speedy transactions seamless

transfer of funds, real time information system, and efficient risk management
are some of the advantage derived through the technology.

R Information technology has also improved the efficiency and robustness of

business processes across banking sector.
 IT in Banking

R Indian banking industry, today is in the midst of an IT revolution.

R A combination of regulatory and competitive reasons has led to increasing

importance of total banking automation in the Indian Banking Industry.

R Information Technology has basically been used under two different avenues
in Banking. One is Communication and Connectivity and other is Business
Process .

R The bank which used the right technology to supply timely information will see
productivity increase and thereby gain a competitive edge.

R To compete in an economy which is opening up, it is imperative for the Indian

Banks to observe the latest technology and modify it to suit their environment.
 Innovative services

R Electronic Payment Services ± E Cheques

R Real Time Gross Settlement (RTGS)

R Electronic Funds Transfer (EFT)

R Electronic Clearing Service (ECS)

R Automatic Teller Machine (ATM)

R Point of Sale Terminal

R Tele Banking

R Electronic Data Interchange (EDI)

 Electronic Payment Services ± E Cheques

R Nowadays we are hearing about e-governance, e-mail, e-commerce, e-

tail etc.

R In the same manner, a new technology is being developed in US for

introduction of e-cheque, which will eventually replace the
conventional paper cheque.

R India, as harbinger to the introduction of e-cheque, the Negotiable

Instruments Act has already been amended to include; Truncated
cheque and E-cheque instruments.
 Real Time Gross Settlement (RTGS)

R Real Time Gross Settlement system, introduced in India since March 2004, is a
system through which electronics instructions can be given by banks to
transfer funds from their account to the account of another bank.

R The RTGS system is maintained and operated by the RBI and provides a
means of efficient and faster funds transfer among banks facilitating their
financial operations.

R As the name suggests, funds transfer between banks takes place on a µReal
Time' basis.

R Therefore, money can reach the beneficiary instantaneously and the

beneficiary's bank has the responsibility to credit the beneficiary's account
within two hours.
 Electronic Funds Transfer (EFT)

R Electronic Funds Transfer (EFT) is a system whereby anyone who

wants to make payment to another person/company etc. can approach
his bank and make cash payment or give instructions/authorization to
transfer funds directly from his own account to the bank account of the
receiver/beneficiary.

R Complete details such as the receiver's name, bank account number,

account type (savings or current account), bank name, city, branch
name etc. should be furnished to the bank at the time of requesting for
such transfers so that the amount reaches the beneficiaries' account
correctly and faster. RBI is the service provider of EFT.
 Electronic Clearing Service (ECS)

R Electronic Clearing Service is a retail payment system that can be used

to make bulk payments/receipts of a similar nature especially where
each individual payment is of a repetitive nature and of relatively
smaller amount.

R This facility is meant for companies and government departments to

make/receive large volumes of payments rather than for funds
transfers by individuals.
 Automatic Teller Machine (ATM)

R Automatic Teller Machine is the most popular devise in India, which

enables the customers to withdraw their money 24 hours a day 7 days
a week.

R It is a devise that allows customer who has an ATM card to perform

routine banking transactions without interacting with a human teller.

R In addition to cash withdrawal, ATMs can be used for payment of utility

bills, funds transfer between accounts, deposit of cheques and cash
into accounts, balance enquiry etc.

\
 Point of Sale Terminal
R Point of Sale Terminal is a computer
terminal that is linked online to the
computerized customer information files
in a bank and magnetically encoded
plastic transaction card that identifies
the customer to the computer.

R During a transaction, the customer's

account is debited and the retailer's
account is credited by the computer for
the amount of purchase.
 Tele Banking

R Tele Banking facilitates the customer to do entire non-cash related

banking on telephone.

R Under this devise Automatic Voice Recorder is used for simpler

queries and transactions. For complicated queries and transactions,
manned phone terminals are used.
 Electronic Data Interchange (EDI)

R Electronic Data Interchange is the electronic exchange of business

documents like purchase order, invoices, shipping notices, receiving
advices etc.

R In a standard, computer processed, universally accepted format

between trading partners. EDI can also be used to transmit financial
information and payments in electronic form.
 COMPANY PROFILE: AXIS BANK

R Axis Bank India begin operations as new private banks in 1994 after the Government of
India allowed new private banks to be established. Axis Bank was jointly promoted by
the Administrator of the specified undertaking of the -

Unit Trust of India (UTI-I)

Life Insurance Corporation of India (LIC)
General Insurance Corporation Ltd.
Also with associates viz. National Insurance Company Ltd., The New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

R Axis Bank in India today is capitalized with Rs. 232.86 Crores with 47.50% public holding
other than promoters.

R It has more than 200 branch offices and Extension Counters in the country with over
1250 Axis Bank ATM proving to be one of the largest ATM networks in the country.

R AT PAR Cheque facility.

R International Travel Currency Card.

 BUSINESS DESCRIPTION

R The Bank's principal activities are to provide commercial banking services

which include

merchant banking
direct finance
infrastructure finance
venture capital fund
Trusteeship
forex
other related financial services

R The Bank has 463 branches and 263 extension counters throughout India.
During April, 2006 the Bank open-end 1 overseas branch in Singapore.
 PROMOTERS

R UTI Bank Ltd. has been promoted by the largest and the best Financial
Institution of the country, UTI.

R The Bank was set up with a capital of Rs. 115 crore, with

UTI contributing Rs. 100 crore,

LIC - Rs. 7.5 crore
GIC and its four subsidiaries contributing Rs. 1.5 crore each.
 VALUES

R Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clientele.
R Continuous technology upgradation while maintaining human values.
R Progressive globalization and achieving international standards.
R Efficiency and effectiveness built on ethical practices.
R Customer Satisfaction through
Providing quality service effectively and efficiently
"Smile, it enhances your face value" is a service quality stressed on
Periodic Customer Service Audits
R Maximization of Stakeholder value
R Success through Teamwork, Integrity and People.
7P¶s
7P¶s FRAME WORK IN AXIS BANK
 Products and Services on offered by AXIS
Bank:

R Accounts

R Deposits

R Loans

R Insurance

R Advisory Services
 PRICE

R AXIS bank has developed innovative strategies against its competitors with
respect to pricing by use of technology.

R The use of technology is the strategic differentiator for AXIS bank that helps in
cost minimization and creating efficiency for the customer.

R The creation of centralized processing system linking all its branches has been
a major strategic move in this regard.
 PROMOTION

R Some of the promotional activities undertaken are:

Cross Selling exercises

Organizing school level painting competitions in order to create awareness

about the environmental concerns and the wild life to promote kids advantage
account.

Wheels of fortune - This promo are targeted at all those customers who avail a
personal loan, car or a two wheeler loan. There will be lucky draw at the end of
the promo and the winners would get exotic prizes.

Personalized promos by sending mailers about various products on offer to all

those who come in contact during the mass promotion strategies.
 PLACE

R Axis bank is widely spread in India and its core banking operations has huge
network ±

580 branches and extension counters foreign offices ± in Singapore, Hong

Kong, Shanghai and Dubai
2457 ATMs reaches out to 350 cities, towns and villages across the country

R AXIS bank owns a wholly owned distribution channel with dedicated

workforce, thereby lowering the operating costs. It uses its network base to
good effect to sell customized products.
 PROCESS

R It refers to

Your offices
Your waiting rooms
Your brochures
Your correspondence
Every single visual element about your company.

R Everything counts. Everything helps or hurts. Everything affects your

customer's confidence about dealing with you.
 POSITIONING

R AXIS Bank has positioned its branches in all the strategic position so that it is easily
accessible to maximum customer. It has also come up with some phone banking centre
and centralized collection and payment hub.

R CENTRALISED PHONE BANKING CENTRE

The Bank¶s Centralized Phone Banking Centre provides customers across the country
Access to the Bank over the phone, handling multiple queries in about 7000 calls per day

R CENTRALISED COLLECTION AND PAYMENT HUB

The Bank¶s Centralized Collection and Payment Hub (CCPH) manages the entire
collection and payment activity under the Bank¶s Cash Management Services (CMS)
across the country, handling on an average about Rs.5000 crores per month on the
collection front and about
Rs.1500 crores per month on the payment front.
 PEOPLE

R AXIS bank values its human resources very highly and is on a constant
endeavor to continuously develop its human resources by laying strong
emphasis on training development.

R It possesses a highly motivated team of professionals and has the lowest

employee turnover rate in the industry.
MAJOR PLAYER IN THE BANKING
INDUSTRY: