Management Discussion and Analysis

Customer Centricity

Our customers are at the centre of all our activities, and we aim to provide them with an unparalleled banking experience. This calls for deeply understanding our customer – their needs, their preferences, their concerns – and responding with products and services that meet and even exceed their expectations. It also involves transforming our own processes and remaining agile in a rapidly changing environment. Accordingly, the Bank carefully segments its diverse customer base and identifies and tailors its services to serve each group. This targeted approach is what allows us to differentiate our value proposition and build customer loyalty.

Customer segmentation Table – 08

Criteria High net-worth Corporate SME Micro customers Mass market
Income/Size of relationship/Business turnover/Exposure Individuals with banking relationships above set thresholds Annual business turnover> Rs. 750 Mn./Exposure> Rs. 250 Mn. Annual business turnover< Rs. 750 Mn./ Exposure< Rs. 250 Mn. Exposure< Rs. 500,000 Individuals not falling into other categories
Price sensitivity High High Moderate Low Low
Products of interest Investment Transactional, trade finance, and project finance Factoring, leasing and project financing Transactional Transactional
Number of transactions Low High Moderate Low Low
Level of engagement High High Moderate Low Low
Objective Wealth maximisation Funding and growth Funding and growth Funding and advice Personal financial needs
Background Business community/Professionals Rated, large to
medium corporates
Medium business Self-employed Salaried employees
Number of banking relationships Many Many Many A few A few
Level of competition from banks High High Moderate Low Moderate

The type of segmentation illustrated here enables the Bank to gain greater knowledge and understanding of the customer and better align with their unique banking requirements (refer Table 09).

Channel mix and target market on perceived customer preference Table – 09

Customer segment Branches Internet banking ATMs Call centre Mobile Banking Relationship managers Business promotion officers Premier banking units
Corporates X X
Micro X X X X X
Millennials X X X X
Others X X
High net-worth