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State Bank of

India

Customer Satisfaction
Vs
Service Quality
Presentation by

A.Krishna Kumar
Deputy Managing Director (IT)
State Bank of India
6th Banking Technology 2010 Conference &
Banking Technology Awards 2009
January 28, 2010

Contents of Presentation
Customer Satisfaction

State Bank of
India

Service Quality

Indian Banking: Challenges

The SBI Story

Custormer Satisfaction
Customer satisfaction is the key to remain in
business
Customer should get what is needed
State Bank of
India

At the desired time, place and at the right price.

96% dissatisfied customers dont complain- but


share with others.
91% unhappy customers never purchase goods /
services again.
82-95% customers can be retained if they get a
prompt response.
It costs 5 times to attract a new customer than to
retain an existing customer.

Service Quality
Customer needs go on changing. Expectations continue
to increase. Quality level needs to be improved
accordingly.

State Bank of
India

Quality in a product or service is not what the supplier


puts in. It is the value the customer perceives.
Quality in customer service requires awareness of needs,
problems, fears and aspirations of the customer
It is extremely important to deliver what is promised
Demand generation is always easier than demand fulfillment
Strive to give customers more than what they expect

Dissatisfied Customers like to talk to a real, live,


responsive person who will listen and help them get
satisfaction

Improving Service Quality


Excellence in Customer Service must be the primary goal of any
organization.
Every employee should understand the importance of Service
Quality and Customer Satisfaction

State Bank of
India

Communicate with customers not only while transacting but more


importantly when not transacting
Complaint resolution mechanism should leverage technology and
also have real, live, responsive persons to communicate to
dissatisfied customers whenever needed

Customer Feedback
Discover customer dissatisfaction
Identify customer needs
Discover priorities of Quality
Compare performance with the competition
Determine opportunities for improvement

Improving Service Quality


Provide consistent Service Experience
Before / During / After Sale

State Bank of
India

Across all Channels and touch points


Keep IT infrastructure scaled up to the expected /
real volumes and running 24x7

Leverage existing customer information /


behavior for knowing customer needs in
advance
Data Warehouse and Customer Relationship
Management

Indian Banking Challenges: Customer Diversity

State Bank of
India

India is a country of diversity and also of


disparities.
A number of Indians appear in Forbes
Billionaires list yet India also has the largest
concentration of poor
Luxury cars and bullock carts share the
same roads
Skyscrapers coexist with slums
First challenge is to provide quality
service to all the customer classes as per
their needs

Indian Banking Challenges: Financial Inclusion

State Bank of
India

On an all India basis 41% of adult population


is unbanked
500 million Mobile users but about half of
them do not have a bank account
One bank branch caters to 16,000
individuals in India, while a similar branch in
developed countries address the needs of
1,500 to 4,500 individuals.
Second challenge is to reach 600,000+
villages and provide Financial Inclusion

Indian Banking Challenges: Scaling Up

State Bank of
India

Indias economic growth: Second only to


China
Projected to overtake Germany as the
worlds fifth largest consumer market
In two decades, Indian middle class (earning
between $4500 to $22000 per year) will be
more than half a billion strong
Third challenge is to scale up to the
growing demand for banking services

State Bank of
India

The SBI Story


Meeting the first challenge
To provide quality service to all the
customer classes as per their needs

SBI: IT Architecture:
Enabling 24*7 IT Operations

Stakeholders

Customers

State Bank of
India

ATM
Network of Branches
External Agents
Group Companies

Prospects

Internet Banking

Mobile
Banking

Shared operations
centre(s)

Associate Banks
Other Banks & Alliances
RBI

OPERATING UNITS
Product Development

Corporate Office

Call
Centre

Help
Desk

Resource Management
ALM
Treasury
Risk Management

WIDE AREA NETWORKING AND CORE BANKING

All 17000+ branches of SBI Group are on Core


Banking.
Enabling Anywhere Anytime banking

One of the largest private worldwide network


State Bank of
India

Using Leased lines, ISDN, PSTN, MPLS, VSATs


More than 25,000 touch points

State Bank of
India

ATM Project
Numbers

Nearly 20,000 ATMs


Largest Bank owned network in the world

Card base
Connectivity

66 mn.- Largest card base in South Asia


Part land lines and part through VSATs

Daily Hit rate

300 hits per ATM

Transaction
Volume

Average : 134 million per month

Cash dispensed

Rs. 330 billion per month

Value Added Services


Bill Payments, Payment of College/Hostel Fee
Card to Card transfer of funds
Donation to Temples / Trusts

Internet Banking
Retail Services

State Bank of
India

Customer to Self
Customer to Customer
Customer to Utility Service Provider
Customer to Institutions
Customer to e-commerce sites
Customer to Government

Corporate Services

Business to Self
Business to Business
Business to Employees
Business to Institutions
Business to Government
No. of Users:
4 million

5 million txns per month


3.5 million Retail
1.5 million Corporate

Services:
Funds transfers (including
through RTGS & NEFT,
Payment of utility bills,
Payment of taxes, Booking of
Rail/Air tickets

Mobile Banking
Services

State Bank of
India

Funds transfer using NEFT


Enquiry Services (Balance enquiry /
Mini statement)
Request Services (Cheque book
request)
Bill Payment (Utility bills, Credit
Cards)
m-Commerce (Mobile top up,
Merchant Payments, SBI Life
Insurance premium)
1.5 lac registered users
10,000 transactions per day

State Bank of
India

The SBI Story


Meeting the second challenge
To reach 600,000+ villages and provide Financial Inclusion

Financial Inclusion: SBI Initiative

State Bank of
India

Enabled through Point of Sale (POS)


instrument and Smart Cards
Reaching 100 thousand unbanked villages
Over 1million No Frills Savings accounts
opened
Government benefits paid directly to
beneficiary's account
Operated through Business Correspondent
model

State Bank of
India

The SBI Story


Meeting the Third challenge
To scale up to the growing demand for banking services

Preparing for the future

State Bank of
India

Scaling up technology infrastructure


and inducting cutting edge technology
Enterprise Data Warehouse under
implementation

Revamping Network
Scaling up ATM installations to 25000
within this year
Opening 1000 branches every year

SBI: Biggest Bank in the Service of Smallest Customer


More than 2 centuries of Trust
Widest reach with more than
17000 branches of the group on
Core Banking

State Bank of
India

Nearly 20000 ATMs of the group


All branches enabled for Secure
Internet Banking and Mobile
Banking
All branches enabled for RTGS
and NEFT
State of the art Data Centre and
Disaster Recovery Site
Enabled E-Government projects
Technology driven Financial
Inclusion

State Bank of
India

Thank you

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