Customer Satisfaction Vs Service Quality

State Bank of India

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
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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.
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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
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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
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Improving Service Quality

Provide consistent Service Experience
Before / During / After Sale
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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
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Indian Banking Challenges: Customer Diversity

India is a country of diversity and also of disparities.

State Bank of India

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
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Indian Banking Challenges: Financial Inclusion

On an all India basis 41% of adult population is unbanked

State Bank of India

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
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Indian Banking Challenges: Scaling Up

Indias economic growth: Second only to China

State Bank of India

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
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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

Prospects

State Bank of India

ATM Network of Branches

External Agents Group Companies Associate Banks Internet Banking

Mobile Banking

Help Desk

Call Centre

Shared operations centre(s)

Resource Management ALM

Other Banks & Alliances

RBI

OPERATING UNITS
Product Development

Treasury

Risk Management

Corporate Office
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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

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ATM Project
Numbers Nearly 20,000 ATMs Largest Bank owned network in the world
66 mn.- Largest card base in South Asia Part land lines and part through VSATs

Card base Connectivity

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Daily Hit rate

Transaction Volume Cash dispensed

300 hits per ATM

Average : 134 million per month 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

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Internet Banking
Retail Services Corporate 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

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 13

Mobile Banking
Services

Funds transfer using NEFT

Enquiry Services (Balance enquiry / Mini statement)
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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
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State Bank of India

The SBI Story Meeting the second challenge

To reach 600,000+ villages and provide Financial Inclusion

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Financial Inclusion: SBI Initiative

Enabled through Point of Sale (POS) instrument and Smart Cards
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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

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State Bank of India

The SBI Story Meeting the Third challenge

To scale up to the growing demand for banking services

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Preparing for the future

Scaling up technology infrastructure and inducting cutting edge technology
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Enterprise Data Warehouse under implementation

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

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State Bank of India

Thank you

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