Customer Satisfaction Deputy Managing Director (IT) 2002-07-17MB-ZXE332(SBI)(AM)(LL) 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) Customer Satisfaction Service Quality Indian Banking: Challenges The SBI Story

Custormer Satisfaction 2002-07-17MB-ZXE332(SBI)(AM)(LL) Customer satisfaction is the key to remain in business Customer should get what is needed At the desired time, place and at the right price. 96% dissatisfied customers don’t 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) Customer needs go on changing. Expectations continue to increase. Quality level needs to be improved accordingly. 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) Excellence in Customer Service must be the primary goal of any organization. Every employee should understand the importance of Service Quality and Customer Satisfaction 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) Provide consistent Service Experience Before / During / After Sale 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) Indian Banking Challenges: Customer Diversity India is a country of diversity and also of disparities. A number of Indians appear in Forbe’s 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) Indian Banking Challenges: Financial Inclusion 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) Indian Banking Challenges: Scaling Up India’s economic growth: Second only to China Projected to overtake Germany as the world’s 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

Meeting the first challenge 2002-07-17MB-ZXE332(SBI)(AM)(LL) The SBI Story Meeting the first challenge To provide quality service to all the customer classes as per their needs

Enabling 24*7 IT Operations SBI: IT Architecture: Enabling 24*7 IT Operations 2002-07-17MB-ZXE332(SBI)(AM)(LL) Stakeholders Prospects Customers Internet Banking ATM Mobile Banking Help Desk Call Centre Network of Branches External Agents Group Companies Associate Banks Other Banks & Alliances RBI Shared operations centre(s) Resource Management ALM Treasury Risk Management OPERATING UNITS Product Development Corporate Office

WIDE AREA NETWORKING AND CORE BANKING 2002-07-17MB-ZXE332(SBI)(AM)(LL) 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 Using Leased lines, ISDN, PSTN, MPLS, VSATs More than 25,000 touch points

ATM Project Value Added Services 2002-07-17MB-ZXE332(SBI)(AM)(LL) ATM Project Numbers Nearly 20,000 ATMs Largest Bank owned network in the world Card base 66 mn.- Largest card base in South Asia Connectivity 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 No. of Users: 5 million txns per month Services: 2002-07-17MB-ZXE332(SBI)(AM)(LL) Internet Banking Retail Services Corporate Services 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

Mobile Banking Services 2002-07-17MB-ZXE332(SBI)(AM)(LL) Mobile Banking Services 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

The SBI Story Meeting the second challenge 2002-07-17MB-ZXE332(SBI)(AM)(LL) The SBI Story Meeting the second challenge To reach 600,000+ villages and provide Financial Inclusion

Financial Inclusion: SBI Initiative 2002-07-17MB-ZXE332(SBI)(AM)(LL) Financial Inclusion: SBI Initiative 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

The SBI Story Meeting the Third challenge 2002-07-17MB-ZXE332(SBI)(AM)(LL) The SBI Story Meeting the Third challenge To scale up to the growing demand for banking services

Preparing for the future 2002-07-17MB-ZXE332(SBI)(AM)(LL) Preparing for the future 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 2002-07-17MB-ZXE332(SBI)(AM)(LL) 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 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

2002-07-17MB-ZXE332(SBI)(AM)(LL) Thank you