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
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Contents of Presentation
State Bank of India
Customer Satisfaction
Service Quality
Indian Banking: Challenges
The SBI Story
1
Custormer Satisfaction
• Customer satisfaction is the key to remain in
business
State Bank of India
• 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.
2
Service Quality
State Bank of India
• 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
3
Improving Service Quality
• Excellence in Customer Service must be the primary goal of any
organization.
State Bank of India
• 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
4
Improving Service Quality
• Provide consistent Service Experience
State Bank of India
• 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
5
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 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
6
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
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Indian Banking Challenges: Scaling Up
State Bank of India
• 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
8
State Bank of India
The SBI Story
Meeting the first challenge
•To provide quality service to all the
customer classes as per their needs
9
SBI: IT Architecture:
Enabling 24*7 IT Operations
Stakeholders
Prospects
State Bank of India
Customers
Mobile
Banking
ATM
Network of Branches
External Agents
Group Companies
Call
Centre
Help
Desk
Internet Banking
Shared operations
centre(s)
Resource Management
ALM
Associate Banks
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
State Bank of India
• One of the largest private worldwide network
•Using Leased lines, ISDN, PSTN, MPLS, VSATs
•More than 25,000 touch points
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State Bank of India
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
12
Internet Banking
State Bank of India
Retail Services
• 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
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Mobile Banking
Services
Funds transfer using NEFT
State Bank of India
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
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State Bank of India
The SBI Story
Meeting the second challenge
•To reach 600,000+ villages and provide Financial Inclusion
15
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
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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
17
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
18
SBI: Biggest Bank in the Service of Smallest Customer
 More than 2 centuries of Trust
State Bank of India
 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
19
State Bank of India
Thank you
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