Re Retail tail ba banking nking in n a d a digital gital wo - - PowerPoint PPT Presentation

Re Retail tail ba banking nking in n a d a digital gital wo world rld

December mber 2015 15

Cer ertai ain statem ements s in these se slides des are e forwar ard-look

• oking

g statem ements. s. These se statem ements s are e based ed on manageme agement's s current expecta pectation

• ns

s and are e subject ect to uncer ertain ainty y and change ges s in circu cums mstan ance ces.

• s. Actual

ual res esult ults s may differ ffer material ally from

• m those

se includ uded ed in these se stateme ments nts due to a variety of factors

• rs.

. More e inform

• rmat

ation

• n about these

se factors

• rs is contai

ained ned in ICICI Bank's 's filings ngs with h the US Securi urities es and Exchange ange Commissi mission

• n.

All finan anci cial al and other er inform

• rmat

ation

• n in these

se slides, des, other er than finan anci cial al and other er inform

• rmation

n for specifi cific c subsi sidiari aries es wher ere e specifi cifical cally menti ntion

• ned,

ed, is on an unconsol solidat ated basis s for ICICI Bank Limite mited only unles ess s specifi cifical cally y stated ed to be on a consolida

• lidated basis

s for ICICI Bank Limi mited ted and its subsidi idiarie aries.

• s. Pl

Pleas ase also

• refer

efer to the e stateme tement t of unconsol solidat ated, d, consoli

• lida

dated d and segm gment ental al res esult ults s req equire uired by Indian n regul egulat ation

• ns

s that has, , along ng with these se slides, des, been en filed ed with the e stock k exchanges in India where ICICI Bank’s equity shares are listed and with the New York k Stock k Excha hange nge and the e US Securi urities s and Exchange ange Commi mmiss ssion, n, and is ava vail ilable able on our website site www.i .icici icibank.co ank.com

2

The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise

1 2

3

ICICI I Bank: leaders ership ip in technolo

• logy

gy

3

The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise

1 2

4

ICICI I Bank: leaders ership ip in technolo

• logy

gy

3

Risin ing g share e of working ng age ge popula latio tion

• Add

ddition tion of aro round und 12 milli llion to the workfo rkforce rce ever ery y year ear for

• r next

xt five ve years ars

A A young g popula latio tion n with median an age ge

• f 25 years

840 840 1,053 1,432 1,501

Drivers ers of digitization zation in India

Favourable ble demogr graphic phic profile ile Government’s focus on ‘Digital India’ & move to cashless economy

5

The e digital al sh shift t

Sign gnific ificant nt transform formation tion in banking ng Banking g : then Banking g : now

6

Evolvin ving g banki king ng landsc scap ape

7

• Telecom

com companies ies, , securiti rities es market t entity ty, , postal servic ice, e, bottom of pyramid id players ers, , payment servic ice e provid iders ers, , technolo

• logy

gy company and NBFCs

• Payments:

s: expanding ding infra rastru structur ture e and number er & t types of players rs

• 11 pay

aymen ment t bank nk licensees, censees, 40 prepai repaid pay aymen ment t instr trume ument nt issuer uer licen ensees, sees, 10+ pay aymen ment t aggre gregator gators

Regu gula lator

• r encour

uragin ging g innovatio tion Entitie ities with divers rse e sector r exper erie ience e & c capabiliti lities es granted ed payment bank licenses es

Imperat erative ives s for banks

8

Constant t innovatio tion: n: rich h functio iona nality lity & h high gh quality ty customer er experi erien ence e Focu cus on leve vera ragin ing larger ger produ duct ct suite e & d deeper er customer er relations tionshi hips Explore lore mutually lly benefici ficial l partne ners rshi hips ps

The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise

1 2

9

ICICI I Bank: leaders ership ip in technolo

• logy

gy

3

10

Enhanc nced ed ret etail il franchise hise

Heal althy thy gro rowth th in fee e income come

Sustained ned gr growth h in gr granul ular r deposits its Robust t loan portfo folio lio gr growth h Low delinquencies and NPAs The Bank continue ues to scale up its retail il busine ness ss and invest t in streng ngthe theni ning ng the franchi hise e & & distrib tributi ution n infra rastru tructur ture

Extensive ensive geo eograp aphi hical al pres esen ence

11

Sign gnifica ificant nt inve vestm tments ents made in distribu ribution tion

~52% of bra ranc nche hes in semi mi- urb rban an and nd rural ral area eas Supp uppleme lemented nted by ~13,000 000 ATMs; Ms; continuing ntinuing to invest vest in ATMs Ms

Bran anch ch network

• rk

Strong g ret etai ail l dep eposit sit franchise hise

12

Sign gnific ificant nt impro rovem emen ent t in funding ng profile ile

• ~17%

17% CAGR in CAS ASA A deposits its since e Mar 2009

• Retail

il deposits its as % of domestic tic deposits its increa eased sed from ~5 ~50% at Ma Mar 2009 9 to ~77% at Sep 2015 2015 Driven en by c contin inue ued invest stmen ments ts in physical l and techno nologica logical l infra rastru tructur ture

Robust st portfo folio lio growth (1 (1/2)

13

Secured ed retail il lendin ding g drivin ing g over 20% gr growth

• Retail

il segm gment nt constit itute utes ~44% of the total loan book

• ~20% CAGR

R in retai tail loa

• ans

ns since ce Mar r 2012

Sep 2014 2014 Sep 2015 2015

Home loans

Sep 2014 2014 Sep 2015 2015

Auto loans Focus on increa easin ing g branch-based sed sourcin cing g of loans

Robust st portfo folio lio growth (2 (2/2)

14

Strong g gr growth h in unsecured red person

• nal

al loans & credit it cards

Sep 2014 2014 Sep 2015 2015

Persona

• nal

l loans

Sep 2014 2014 Sep 2015 2015

Credit it cards ~70% of increm emen enta tal l unsecur ured ed lendin ding g to existin sting g customers ers Health thy gr growth h in credit it card issuances es & & spends Leaders ership ip position ion amongs gst private te sector r banks in debit t ca card spends

Sign gnific ificant nt prese senc nce e in rural al & s semi-ur urba ban n markets

Netwo work rk Branc anche hes Gramin amin bra ranc nche hes BCs1 & & CSPs2 Partner rtner linkages nkages

2,108 08 branches es in rura ral l & s semi-ur urban n markets ts

Focus s on ru rural l busi siness ess (1 (1/2)

15

1. 1. BCs: Busine iness corresponde ndents nts 2. 2. CSPs: Customer servic ice points nts

Approach to lending Selective geographical approach Col

• llatera

lateral based ased lend nding ing Granul anular ar por

• rtfo

tfolio lio

Diverse rse produc uct t suite e & g granul ular r lendin ding Continu nue e to focu cus on gr growth th while e monito tori ring risks s

16

Key product cts s include de loans aga gainst t go gold jewelr elry, , farm equipm pmen ent t loans, kisan credit it card, agr gri term loans and loans to Self Help Group ups (SHG)

Por

• rtfol

tfolio io contri ntributes~15% utes~15% to retail tail loa

• ans

ns ~30% y-o-y y growth

• wth at

Sept eptemb ember er 30, 2015

Focus s on ru rural l busi siness ess (2 (2/2)

Sust stain ained ed moment entum um in fe fees es

17

Retail il fees gr growin ing g by 15-20% 20% y-o-y

• Focus on cross-sel

ell l of third rd party products ts to existin ting g customers ers

• Lead

ader ership ship in distri stributio ution n of insur urance ance

• Stron

rong g gro rowt wth h in mutua ual l fund nd dis istr tributio ibution

Retail il banking ng expec ected ted to contin inue ue to drive e gr growth h in overall ll fees Curren ent t share of fees

Ret etail ail ass sset et quality ty

18

Low delin inquen quencies cies and NPAs As Delin inque uenc ncy levels ls indic icatin ting g no sign gns of stress ss in the retail il portfo folio lio An Analytic ics used for credit it decisions ions Substantia tial l impro rovem emen ent t in credit dit infra rastru structur ture

• Establi

ablishe hed credi edit t bure reaus aus with h extens tensiv ive e database atabase

• Incre

reased ased custom tomer er awar areness eness

Focus on lendin ing g to existin ting g customers ers

The digi gital al shift & evolvin ing g banking g landscape pe ICICI I Bank: strong ng retail il & r rural al franchise ise

1 2

19

ICICI I Bank: leaders ership ip in technolo

• logy

gy

3

20

ICICI I Bank has always ys been a p pioneer eer in bringing ing technology

• logy-ena

nabled bled produ ducts ts & & servic ices es to customers ers We are focusin ing g on levera eragin ging g the three ee key transform formatio tiona nal l trends nds in technolo

• logy

gy – mobility lity, , digi gitiza ization tion and rapid gr growth th of social l media

Lev

everag erage te technolo

• logy

y & & digitizat itizatio ion to to:

Grow

• w retail

il banking ng at a p pace faster r than market et

Build

ild platforms forms & & servi vices ces for emergin rging India ia Persona

• nalis

lise e experi erien ence e & s servic ices es for cu customers ers

To be the best in class in retail

ail banking g perf rform

• rmanc

nce

21

Our st strategic tegic objec ective ive

Lea eadershi ership p in tec echnology logy

Digiti gitizi zing ng chann nnels ls Digiti gitizi zing ng exper xperienc ience Digiti gitizi zing ng core re

22

Focu cus on analyt ytics cs acr cross areas to improve

• ve producti

ctivi vity ty & effic icien iency

Digitizing gitizing Channels nels

Apps Social Intern ernet et Lea eadershi ership p in tec echnology logy

23

Digitizing izing channels els

24

Then No Now Mobile le Social Web Pockets Over 60% of total l transactio tions ns by savings gs account customers ers through ugh new age ge digi gita tal l channels ls

iMobile

Firs rst t in India ia: :

• Taggi

ging ng freq equen uent t transactio ansactions ns as favour vourites ites

• In

In-app app chat t function ctionality ality

• Alerts

erts & noti tifications fications throu rough gh ‘Google Now’

• ‘iWish

Wish’ flexible recurring deposits eposits

Integra grated ted view of all ICICI I Bank relat ations ionship hips

25

Your Digital Account

Over 100 servic ices es available le

Annual nual mob

• bile

le banking nking transa ansactions tions expected xpected at abo bout ut ₹ 800 billio llion

Intern ernet et banki king ng

26

• One of the larges

gest t bouquet ets s of seamles ess s service ces

• Onli

line ne das ashb hboa

• ard

rd - ‘My View’

• Investme

estment nt mana nageme gement nt & tax serv rvices ices tools ls

• ~15 millio

lion visitors

• rs monthly

ly

• Transaction

tions s of over ` 2 trill llio ion n proces essed ed annually ly Refres reshed ed & intui uitiv ive e website te

First rst bank nk to cross

• ss 3 mi

millio llion n transacti ansactions ns in a month nth on Immed mediate iate Payment yment Serv ervice ice (IMPS MPS) pla latfo tform rm

Ba Bankin ing g se services ces on so social med edia ia

27

Firs rst t bank in As Asia to launch Facebook

• k Banking
• Intro

roduc duced ed transfer fer of funds on Twitter er

• Secu

cure e servi vice ce on ICICI I serve vers rs

• Other

r facilitie ities: s: telec lecom m bills ls & r recha harges rges, , fixed ed deposit sits s and e-stateme ements ts

• Hash-ta

tags gs used for transactio ctions ns: : #pay, #reg eg, , #topup up, , #ibal al Firs rst t bank in As Asia & & second gl globally lly to launch Twitter er Banking g

• Financ

ncia ial l transactio ctions ns on Facebook

• k
• Only

y bank to offer r NR NRI remitt ittanc nce e through ugh Facebook

• k
• High

ghest est fan base among g banks: about 4.0 million lion

Comprehensive digital wallet

28

~60% of download ads by non-IC ICIC ICI I Bank users rs Over 2.5 million lion downloa

• ads

mVisa

29

Firs rst t bank gl globally ally to launch mVisa

• mVisa launched

ed on debit t cards for enablin ling g in in-store tore payments s by j just scanning ng a Q QR code using g the customers ers mobile le phone camera

• mVisa upgr

grade de in Pockets app app relea eased ed for exis istin ting g debit t ca cardhold

• lders

ers

30

Digitizing gitizing the experience perience

Paym yment ents Inclusi sion

• n

Automa mation tion Lea eadershi ership p in tec echnology logy

Digitizing izing ex exper erience ience

31

Then No Now Payment solutio tions ns Smart vault Touch Banking ng Innova vativ tive e incl clus usion ion Instant nt cr credit it

Automatio ation of transa sactions tions (1 (1/2)

Firs rst t bank in India ia to launch ch 24x7 7 fully ly automated ed branche hes

• 108 Touch Banking

g branche hes, , across 33 cities es in India ia

• Services

ervices includ lude ATM in the branch ranch, , insta ta-banking nking kiosk,

• sk, cash

h accep eptor tor machine hines, s, vide deo call ll facility ility

• Over 1,250

0 self f servic ice e kiosks s at o

• ther

r branch ches

• 23

23 financia cial l & n non-fin financ ncial ial services ces through ugh automated ed devices es at branches es

• Pre-sta

tagin ging g of transactio ctions ns by customers ers through ugh Instaba bankin king mobile le app

32

An Annually ly over 30 millio lion n transaction tions s expected ted using g self-ser servic ice e devices es

Automatio ation of transa sactions tions (2 (2/2)

Automatio ion n across areas to improv

• ve

e customer er experi erien ence ce

• Forms with pre-popu

popula lated ted customer er details ils

• Digi

gitiz tization tion of servic ice e request ests

• Updatio

ion of e-mail il ID throug ugh h SMS

• Deliv

ivera erable ble manage gemen ent portal al

• 24x7

7 Au Automated d Lock cker er

• State

ate of the e art t rob

• boti

tic techno hnology gy

• Hi

Hi-te tech h secur urity ity system tem & multi ti- level vel checks ks

• Examp

ample le of ‘Make in India’: ~80% Indian dian comp mponents nents

33

Paym yment ent so solutions ions (1 (1/2)

34

Firs rst t bank in India ia to launch contactles less debit/cr t/credit edit cards

• Over

ver 1,100 NFC1 termin rminal als s dep eploye loyed acro ross ss 800 merc rcha hants nts in Mumba mbai, i, Hyd yder eraba abad & Gurgaon rgaon

• Comprehe
• mprehensive

nsive rol

• ll

l out t pla lan n being eing implemen mplemented ted for

• r deve

velop loping ing termi minal nal eco-system system & issui uing ng cards rds across ross Indi dia

• 1. Near field communi

nica catio ion

• 2. Radio
• frequency

ncy identif ifica ication ion

Firs rst t bank in India ia to launch trans nsit it card solutio tions ns for metro & & bus transport port

• Transit

sit Metro ro solutio tions ns

• Debi

ebit t & credit edit card rds s with h NFC1 metro tro smart rt card rd chip ip

• Auto

to-to top up facil ility ity

• Easy

sy recha harge rge using ng SMS/i S/intern nternet et

• Solutions

ions for road transport port

• Prep

epaid aid card rd with h dual ual walle llet (RFID FID2 chip ip & magne netic tic chip ip)

Paym yment ent so solutions ions (2 (2/2)

35

India’s first bank to implement interoperable electro ctroni nic toll l collec ection tion

• 1. Radio
• frequency

ncy identif ificat icatio ion

• Prepa

paid id RFID ID1 tags gs for vehicles les for electr ctronic

• nic toll co

collecti ection

• n
• Develo

veloped ed central tral clearing earing house use to proc rocess ess the tol

• ll

l pay aymen ments ts

• Implem

plemented ented on over er 180 toll ll pla lazas zas includ luding ng Mumbai mbai-Delhi Delhi & Mumbai mbai- Chenna ennai i corr rrido idors

• Mandate

ndate receiv ceived ed for

• r National

tional Highways ghways

36

NRI se services ces

Firs rst t bank in India ia to provide de mobile le remit itta tanc nce e servi vice; ce; largest gest onlin ine e presen sence ce

• Enabled

led instant t transfers fers from US & Canada

• 24x7

7 toll free e customer er care accessible ble from all ge geogr graphie phies

• Firs

rst t bank to launch ch remit itta tanc nces es through ugh Facebook

• k
• Video banking

ng, , intern rnet et banking g & imobile ile available ble for all servic ices es

• Only bank to offer

r onlin ine paperle rless s account openin ing g for NRI customers ers in the US

Digital al so solutions ions for loan cust stomers ers

37

Towards paperle rless s loans

• Loan sanctions

ns in minutes tes

• Instant

tant decisioning cisioning with h online nline iden entity tity and nd credi edit t check

• Field

eld for

• rce

ce equi uipped ed with h mob

• bile

ile app pp to scan n documents

• cuments
• Persona
• nal

l Loans at P POS

• Instant

tant fundi nding ng of purchase urchase at Point int of Sale le

India’s first bank to launch mobile app based loan relat ations ionshi hips s & real-tim time e deliv iverab erables les tracking ng

• Both

th functio ctional nalities ities integr tegrated ated in the new iMobile

• bile app

pp iLoa

• ans

ns & & iTra

rack ck

Innovatio ations s in financ ncial ial inclusi sion

• n
• Aa

Aadhaar integra ratio tion n for EBT1/DBT DBT2

• Mobile

le based remitt ittanc nce e servic ices es

• Bank on wheels

s and micro

• ATMs

38

Technolo

• logy

gy reducin cing g the cost to serve e a l large ge and widesprea pread d market

1. 1. EBT: Electron ronic ic Benefit Trans nsfe fers rs 2. 2. DBT: Direct Benefit Trans nsfers rs

Digital al village age

39

India’s first digital village set up in Ak Akodara dedicat cated ed to the nation n by Hon’ble Prim ime e Minist ster er to the nation

• Convert

rted ed Ak Akodara villa lage ge in Sabarkantha tha distric rict t in Gujarat t into a Digi gital al Village ge

• Initia

tiativ tive e centered red around d 3Cs

• Cashle

shless pay aymen ment t ecosy

• system

stem

• Comprehe
• mprehensive

nsive app pproach ach include ludes educ ucati ation, n, healthcar althcare e & skill ll devel evelopme ment nt

• Connected
• nnected with

h wi wi-fi fi for

• r Inter

ernet net & social cial medi dia inclusion lusion

40

Lea eadershi ership p in tec echnology logy

Digitizing gitizing the Core re

Front Office ice Mid Office ice Ba Back Office ice

Digitizing izing core

41

Then No Now Tab banking ng Operation tions Video banking ng

Digitizing izing sa sales es

• KYC through

ugh scanned d document nts

• Demo videos for product

cts s and servic ices es

• Upsell

ll of mutual l funds & insura ranc nce

• Being

g intro rodu duce ced d for loan produc ucts ts

42

Over 3 m million lion savings gs accounts sourced ed throug ugh h Tab banking ng With digi gitiza tization, ion, an a account can be opened d within in a d day as aga gainst t about four days ys earlier lier

Mid office e & b back office

• Video banking

ng app

• 24X7 face

ce-to to-fac face e banking anking

• EFT cheques

es

• App

pp-based ased cheque eque issuan uance e & image age based ased cheque eque proc rocessing essing

• Image

ge-ba based ed process ssin ing g of documents nts

• OCR

OCR1 to reduc uce e data entry ry & & erro ror r rates

• Au

Automated ed proces essin sing Branch servic ices es shiftin ting g to customers’ mobiles Digi gitizin tizing g operation tions s

43

1. 1. OCR: : Optic ical l Character recogni nitio tion

Focus s on analytics lytics

44

Analyti ytics s to improve ve productivi ivity ty

45

• Multi-cha

hann nnel el lead capture, re, assign gnmen ment t and fulfillm fillmen ent

• 360 degr

gree ee view of customer er profile ile, , sales trend ndin ing g and forecas castin ting

• Online

ne business ess analytic ics and reports rts

• Underst

rstandin nding g micro

• markets

ts and tailorin

• ring

g strategies egies

• Designin

gning g branch/ h/ATM TM expans nsion ions s across ge geogr graphi hies es

• Synchron
• nizin

izing g central al and local decisio sion n making Geo-spati patial l mapping CRM

Activity Planning Sales Pipeline

Relationship Mgmt

Sales Forecast Lead Qualify Guided Selling Content Mgmt Onboarding

Inves estments tments bei eing made e in..

46

Big g Data An Analytics

• Customer

er enga gage gemen ent

• Real

al time e offers fers and nd infor formation mation enriched riched with h geo eo taggi ging ng

• Customer

er servic ice e and fraud preven ention tion

• Real

al time e failur ilure reporting eporting

• Transacti

ansaction n monitor nitoring ing

• Campaign

gns

• Micro

ro-segmen segmenta tation tion and nd pro ropensity nsity mod

• del

els

Inves estments tments bei eing made e in..

47

Real time e consist sten ent t messagin ing g across channels ls Omni Channel el Campaign gn Manage gemen ent

• Real time

e data feeds from multiple iple systems

• Rules

es run on real l time events and historic

• rical

l behavio iour ur based data

• Di

Dissem emina inatio tion n of messages ges uniformly

• rmly

across channels ls

In su summary ary

48

ICICI I Bank has establis lishe hed a s strong ng retail il & r rura ral l franchi hise e Health thy gr growth h in retail il deposits its

Driv iven n by mortga rtgage ge and d auto to loa

• ans

ns Focus cus on unsecure ecured lend nding ing to existi isting ng custo tomer mers

Sign gnific ificant nt scale-up up in retail il lendin ing Substantia tial l expans nsion ion of physical l footprin rint

Buildi lding ng granul anular ar rura ral por

• rtfo

tfolio io

In su summary ary

49

Levera eragi ging ng digi gita tal l technology

• logy for profita

itable ble gr growth: h: Au Automatio ion n of routin tine e transactio ctions ns Digi gitizin tizing g core areas to improve

• ve efficien

ciency & perfor forma manc nce An Analytic ics used to support rt all areas Innovativ tive e produc ucts s to improve

• ve experi

erien ence ce New age ge digi gital al channels ls for customer er convenien ience

Thank k you

50