Retail ail bankin ing in a d digi gital tal world Septemb - - PowerPoint PPT Presentation

Retail ail bankin ing in a d digi gital tal world

Septemb tember er 2015

Certai ain n statements nts in these se slides s are forwar ard-loo

• oki

king statements nts. . These statements nts are based on management' nt's s current nt expectat ations ns and are subject to uncertai ainty nty and changes s in circum umst stanc ances.

• s. Actual

al result ults s may diffe fer materi rial ally ly from those include luded d in these se statem tements ts due to a variety of factors

• rs.

. More inform

• rmat

ation

• n about these

se factors

• rs is contai

aine ned d in ICICI Bank' k's s filing ngs s with h the US Securi urities s and Excha hang nge Commiss ssion

• n.

All financ ancial al and other inform

• rmat

ation

• n in these

se slide des, s, other than financ ancial al and other r inform

• rmat

ation ion for specific fic subsidi idiar aries ies where re specifi ifical ally ly mentione ned, d, is on an unconsoli nsolidat dated basis s for ICICI Bank k Limited only unless ss specific fical ally stated to be on a consol solidat ated d basis s for ICICI Bank k Limit ited d and its s subsi sidiar diaries.

• ies. Pleas

ase also

• refer to the statem

tement nt of uncon

• nsol

solidat ated, d, consol solidat dated and segmenta ntal resu sults s requir uired d by Indian an regula ulation

• ns

s that has, along with h these se slide des, s, been n filed d with h the stock k exchanges in India where ICICI Bank’s equity shares are listed and with the New York k Stock k Exchang ange and the US Securi urities s and Exchan hange Commis issi sion

• n,

, and is avail ilab able le on our websi site te www.i .icicibank. ibank.com

• m

2

The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise

1 2

3

ICICI CI Bank: k: leadership adership in techno hnolo logy

3

The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise

1 2

4

ICICI CI Bank: k: leadership adership in techno hnolo logy

3

Rising ing share re of work rking ing age populatio lation

• Addition
• n of aroun

und d 12 million

• n to the

workf kfor

• rce

ce every y year for next five ve years

A young ng popula lation tion with h media ian n age

• f 25 years

rs

840 840 1,053 1,432 1,501

Drivers rs of digitiz tizati ation n in India ia

Favo vourab urable le demo mograp aphic hic profile ile Government’s focus on ‘Digital India’ & move to cashless economy

5

The digital tal shift ft (1/2) /2)

Strong ng digital ital tailw lwind inds s in India…

World ld No. 1 World ld No. 2 350 350 mn mn interne net users s ~40%-mobi mobile le only World ld No. 1 ~41% of e- commerce ce on mobil ile World ld No. 1 ~10% of WhatsA sApp pp users s from

• m India

ia Among ng the fastest st in the world Over 55% growth h in smartpho phone ne usage Among ng the fastest st in the world Among ng fastest st growing ng marke kets s for Twitter ~32% increas ease e in interne net users s in 2014

6

The digital tal shift ft (2/2) /2)

…continuing to transform banking Bankin king : then Bankin king : now

7

Evolving lving banking ing landscap ape

8

• Telec

lecom m companies, anies, securit urities ies market et entit tity, postal al servic vice, botto tom m of pyramid amid playe yers, rs, payme ment nt servic vice provid viders, ers, techn hnolo logy y company any and NBF BFCs Cs

• Payments

ments: : expand anding ing infras rastru tructu ture re and number er & types es of playe yers

• 11 payme

ment nt bank k licen ense sees es, , 40 prepa epaid id payme ment nt instrum ument nt issue uer lice cens nsees, s, 10+ payment nt aggrega gator

• rs

Regulato ulator r encourag uraging ing innova vatio ion Entit titie ies s with th diverse erse secto tor r experie erienc nce e & capabiliti ilities granted anted payme ment nt bank licenses nses

Imperati atives for bank nks

9

Constant tant innovatio vation: n: rich h functio tionality nality & high h quality lity custome mer experie erienc nce e Focus us on leverag veraging ing larg rger er produc uct t suite te & deeper eper custome mer relatio lationsh nship ips Explo lore re mutually ally benefic icial ial partnership tnerships

The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise

1 2

10

ICICI CI Bank: k: leadership adership in techno hnolo logy

3

11

Enhance hanced retai ail l franc anchis hise

Healt lthy hy growth h in fee incom

• me

Sustaine ained growth th in granular anular deposit sits s Robust ust loan n portf tfolio lio growth th Low delinquencies and NPAs The Bank continu inues es to scale le up its retail ail busine ness s and invest st in streng ngthe hening ning the franc nchise hise & & distrib tributio tion n infrast rastru ructu ture re

Exte tensi nsive geogra raphic hical al presence nce

12

Signif nific icant ant inves vestme tment nts s made e in distrib ribut utio ion

~52% of branc nche hes s in semi- urban an and rural areas Suppl plement nted d by ~12,80 800 0 ATMs; continu nuing ng to invest st in ATMs

Branc nch network

• rk

Strong ng retail il deposit it franchise nchise

13

Signif nific icant ant impro rove vement ment in funding ing profile ile

• ~16%

6% CAGR in CASA deposit sits s since e Mar r 2009 009

• Retail

tail deposit sits s as % of domestic estic deposit sits s increase reased from m ~50% 50% at Mar 2009 09 to ~78% 8% at Jun 2015 15 Driven iven by continu inued ed inves vestme tment nts s in physic ical al and techno nolo logic ical al infrastru rastructur ture

Robust ust portfo foli lio growth th (1/2) /2)

14

Secured ured retail tail lending ing driving ving over r 20% 0% growth th

• Retail

tail segme ment nt constit titute tes ~43% 3% of the total l loan book

• ~20% CAGR

R in retail ail loans ns since ce Mar 2012

Jun 2014 Jun 2015

Home me loans ns

Jun 2014 Jun 2015

Auto loans ns

Robust ust portfo foli lio growth th (2/2) /2)

15

Unsecured ured perso sonal al loans ns & credit it cards growing ing off a low base

Jun 2014 Jun 2015

Perso sonal nal loans ns

Jun 2014 Jun 2015

Credit it cards ~70% 0% of increme rement ntal al unsec ecure ured lend nding ing to exist sting ing custome mers Healthy althy growth th in credit it card issuanc uances & & spends Leadership hip positio ition among ngst st priva vate te secto tor r banks ks in debit it card spends

Signif nific icant ant presenc sence in rural al & semi-urb urban an mark rkets ts

Networ

• rk

Branch ches Grami min branc nche hes BCs1 & & CSPs Ps2 Partne ner linkages kages

2,106 106 branc nche hes in rural al & semi-urb urban an markets kets

Focus us on rural l busine iness (1/2) /2)

16

1. 1. BCs: Busines ness corresponde pondent nts 2. 2. CSPs Ps: Custome mer service ce point nts

Approach to lending Selective geographical approach Collat ateral al based d lendi ding ng Granu nular ar portfol

• lio

Dive verse rse produc uct t suite te & granular anular lending ing Contin tinue ue to focus s on growth th while ile monito toring ring risks ks

17

Key y produc ucts ts includ ude loans ns agains ainst t gold jewelr lry, farm rm equipme ipment t loans, s, kisan an credit it card, agri ri term rm loans s and loans ns to Self f Help Groups s (SHG)

Portfol

• lio
• contributes

butes~1 ~15% 5% to retail loans s ~33% y-o-y growt wth h at June 30, 2015

Focus us on rural l busine iness (2/2) /2)

Sustai tained momentum mentum in fees

18

Retail tail fees s growing ing by 15-20% 0% y-o-y

• Robus

ust t third rd party ty distrib tributio ution n fees

• Leader

dersh ship ip in distribu ibution ion of insur uranc ance

• Strong

ng growth h in mutual al fund nd distribut bution

• n

Curre rent t share re of fees Retail tail banking ing expected ted to continue inue to drive ve growth th in overall rall fees es

Retai ail l asset t quali lity ty

19

Low delinq linque uenc ncie ies and NPAs Delinq linquenc uency y leve vels ls indic icating ating no signs ns of stress s in the retail ail portf tfolio lio Analytic lytics s used for credit it decisio isions s Substant tantial ial impro rove veme ment nt in credit it infrastru rastructur ture

• Establi

blish shed ed credit dit bureaus eaus with exten ensi sive e database ase

• Increase

ased d custom

• mer awarene

ness ss

Focus us on lend nding ing to exist sting ing custome mers

The digital ital shift t & evolving lving banking ing landsc scap ape ICICI CI Bank: k: strong ng retail ail & rural al franc nchise hise

1 2

20

ICICI CI Bank: k: leadership adership in techno hnolo logy

3

21

ICICI CI Bank has alway ays been a pione neer r in bring nging ing techno hnolo logy-enabled nabled produc ucts ts & & servic rvices s to custome mers rs We are focusing ing on leve veraging raging the three key transf nsforma rmatio ional nal trend nds in technolo hnology y – mobili lity, digitiz itizatio ation n and rapid id growth th of social al media ia

Leverag

erage e techn hnolo

• logy

y & & digitiz itization ation to:

Grow retai

ail l bankin king at a pace faster ter than n market et

Build

ld platforms rms & & servic rvices for emerg rging ing India ia Perso sonalis nalise e experi erienc ence e & servic rvices es for custome mers

To be the best in class

ss in retail tail banking ing performanc rmance

22

Our strate tegic ic objective tive

Leaders rship hip in techn hnology

Digitizing ng chann nnel els Digitizing g experie ienc nce Digitizing ng core

23

Focus us on analytic lytics across s areas as to impro rove ve produc uctivit tivity y & effic icie ienc ncy

Digitizin izing g Channels ls

Apps Apps Socia ial Inte terne rnet Leaders rship hip in techn hnology

24

Digiti itizing ing chann nnels ls

25

Then Now Mobile ile Social al Web Pockets ts Over r 60% 0% of total l trans nsac actio tions ns by saving ings s account nt custome mers rs through ugh new age e digit ital al channe nels ls

iMobil ile

First st in India: a:

• Tagging

g frequ quent t transac actio tions as favou

• urites

tes

• In

In-app pp chat function

• nal

ality ty

• Alerts

ts & n notificatio ations through gh ‘Google Now’

• ‘iWish’ flexible recurring

depos

• sits

ts

Integrate rated view of all l ICICI CI Bank k relatio lationsh nship ips

26

Your Digital Account

Over er 100 00 servi vices es availab ilable le

Annual ual mobil ile banki king ng transact actio ions ns expected cted at about ut ₹ 800 billi lion

• n

Inte terne rnet t bank nking ing

27

• One of the larg

rgest st bouque uets ts of seamle mless ss services vices

• Online dashbo

boar ard d - ‘My View’

• Investment

nt managem gement nt & t tax servi vices tools

• Interne

rnet banking ing contribu ribute tes to ~48% 8% in number r & ~38% 8% in value ue of incre reme mental ntal retail tail term rm deposit sits s

• ~15

5 million lion visito itors rs monthly thly

• Transac

nsactions tions of over r ` 2 trilli llion processe sed annuall ually Refre reshe hed & intuitive itive websit site

Bank nking ing servic ices on social al media

28

First st bank k in Asia a to launc nch h Facebook k Bankin king

• Intro

roduc uced transf sfer r of funds on Twitt tter r

• Secure

ure servic vice on ICICI CI serve rvers rs

• Other

r facilities ilities – balanc ance inquirie uiries, tele lecom/ m/DT DTH recharg harges

• Hash-tag

tags s used for transac nsactio tions: ns: #pay ay, #reg, , #topup up, #ibal al First st bank k in Asia a & & second nd globall ally y to launc nch h Twitte tter r Banking king

• Financ

ancial ial trans nsac actio tions ns on Facebo ebook

• Only

y bank to offer r NRI I remittan mittance throug ugh h Facebo ebook

• Highe

hest t fan base among ng banks ks: : over r 3.9 millio lion

Comprehensive digital wallet

29

~60% 0% of downlo nload ads by non-ICI ICICI CI Bank users rs Play y video

http://youtu.be/kscCF-jBh_o

Over r 1 millio llion n downlo nload ads in four r month ths

30

Digitizin izing g the experienc ience

Payments nts Inclus lusio ion Automatio

• mation

Leaders rship hip in techn hnology

Digiti itizing ing experi rience

31

Then Now Payme ment nt solutio tions ns Smart rt vault lt Touch h Bankin king Innova vative ive inclusio lusion Instant ant credit it

Automatio mation n of transa nsactio tions ns (1/2) /2)

First st bank k in India a to launc nch h 24x7 x7 fully y automate mated branc nche hes

• 101

1 Touch h Bankin king branc nche hes, across ss 33 cities ies in India

• Servic

vices incl clude ude ATM in the branc nch, h, insta- banki king ng kiosk sk, , cash h accept ptor

• r machi

hine nes, s, video

• call facility
• Over

r 1,000 000 self servic vice kiosks ks at other r branc nche hes

• Offers

s 23 financ ancial al & non-finan nancial al servic vices

• Cash

h accept eptor r machin hines es

• Enables real time cash depos
• sit

32

Annually ually over r 30 millio lion n trans nsac actio tions ns expect ected ed using ng self-ser servic vice devic vices

Automatio mation n of transa nsactio tions ns (2/2) /2)

Automatio mation n across s area eas s to impro rove ve custome mer r experie erienc nce

• Forms

rms with h pre-populate ulated custome mer detai ails ls

• Digitiz

itization ation of service rvice reque uests sts

• Updati

ation of e-ma mail il ID throug ugh h SMS

• Deliv

liverable able manag ageme ment t portal al

• 24x7

x7 Automa mate ted Locker

• State of the art roboti
• tic technol
• logy
• gy
• Hi

Hi-tech ch secur urity y system & multi ti- level checks

• Exampl

ple of ‘Make in India’: ~80% Indian an compo ponents ts

33

Play y video

https: ps://you

• utu.be

u.be/3CZJ ZJVku5 ku5ym4

Paym ayment nt solutio utions ns (1/2) /2)

34

First st bank k in India a to launc nch h contac actle tless s debit/c it/credit redit cards

• Over 1,100

0 NFC1 termi minals nals deploye loyed d across

• ss 800

merch chant ants s in Mumbai, Hyderabad abad & Gurgaon aon

• Compre

prehe hens nsive ive roll ll out plan n being ng imple leme mented nted for developi

• ping

ng terminal nal eco-sys system & issui uing ng cards ds across ss India dia

• 1. Near fiel

eld comm mmunication

• 2. Radio freq

equen ency identification

First st bank in India a to launc nch h trans nsit it card solutio tions ns for metro ro & & bus transp nsport rt

• Transit

nsit Metro tro solutio tions

• Debit

it & credit dit cards ds with NFC1 metro

• smart card

d chip

• Auto-top
• p up facility
• Easy rechar

harge e using ng SMS/inter erne net

• Solutio

tions ns for road transp sport rt

• Pr

Prepaid paid card d with dual l walle let (RFID ID2 chip p & m magne netic ic chip)

Paym ayment nt solutio utions ns (2/2) /2)

35

India’s first bank to implement interoperable electro tronic nic toll l collec lectio tion n

• 1. Radio freq

equen ency identification

• Prepaid

aid RFID ID1 tags s for vehic icle les s for elect ectro ronic nic toll l collec lectio tion

• Develope
• ped

d central al cleari aring house se to proce cess ss the toll payments nts

• Implement

nted d on Mumbai ai-Delhi hi Corridor dor & M Mumbai ai-Pun une Expresswa sway

• Mandate

e rece ceive ived d for National

• nal

Highwa ways ys

36

NRI I servic ices

First st bank in India a to provid vide e mobile ile remittanc mittance servic rvice; ; larg rgest st online ine presenc sence

• Enab

abled led instant tant trans nsfers rs from m US & Canada ada

• 24x7

x7 toll l free custome mer r care access ssib ible le from m all l geograp raphies hies

• First

st bank k to launc nch remittan mittances s through ugh Facebo ebook

• Video bankin

king, interne rnet banking ing & imobile ile availab ailable le for all servic vices es

• Only

y bank to offer r online ine paperle rless s account unt opening ning for NRI I custome mers rs in the US

Digita ital soluti utions ns for loan n customers rs

37

Towar ards s paperle rless ss loans ns

• Loan sanctio

tions s in minutes utes

• Instan

ant decision

• ning with online identity

y and credi dit check

• Field

d force equipp pped d with mobile app to scan docum uments nts

• Perso

sonal nal Loans ns at POS

• Instan

ant fundi ding of purchas ase at Point of Sale

India’s first bank to launch mobile app based loan relatio lationship nships & real-time time delive liverable rables tracking king

• Both functio

tional alitie ties integr grated ated in the new iMobi bile app iLoans ans & & iTrac

ack

Innovatio novations ns in financi ancial al inclus lusio ion

• Aadhaar

haar integratio ration n for EBT1/DBT DBT2

• Mobile

ile based ed remitt ittanc ance e servic vices es

• Bank

k on wheels ls and micro ro ATMs

38

Techn hnolo logy y reduc ucing ing the e cost to serve ve a larg rge and widesp espre read ad market ket

1. 1. EBT: Elec ectronic Benef efit Transf sfer ers 2. 2. DBT: Direc ect Benef efit Transf sfer ers

Digita ital villa lage

39

India’s first digital village set up in Akodara ara dedic icated ated to the e natio ion n by Hon’ble Prime me Minist nister r to the natio ion

• Conve

verte rted Akodara ara villa lage in Sabark arkanth antha distri trict in Gujarat arat into a Digital ital Villag lage

• Initiative

tiative centere tered around und 3Cs

• Cashl

hles ess paymen ent ecosyst ystem em

• Compr

prehe hens nsive ve approach

• ach include

udes s educat cation ion, , healt lthc hcare are & skill ll developm

• pment

nt

• Conne

nect cted d with wi wi-fi fi for Interne net & social al media a inclus usion

• n

40

Leaders rship hip in techn hnology

Digitiz izin ing g the Core

Front nt Office ice Mid Office ice Back Office ice

Digiti itizing ing core

41

Then Now Tab banking ing Operatio rations ns Video bankin king

Digiti itizing ing sales

• KYC throug

ugh h scanned ned docume uments nts

• Demo

mo video eos s for produc ucts ts and servic vices es

• Upsell

ell of mutual ual funds & insuranc rance

• Being

ing intro roduc uced ed for loan n products ts

42

~70% 0% of saving ings s accounts nts opene ned using ng table lets ts With h digitiz itizatio ation, n, an accoun unt t can be opened ned within hin a day as against ainst about t four days earli lier

Mid offic ice & back offic ice

• Video

eo banking ing app

• 24X7 face-to

to-face ace banki king ng

• Insta-bankin

anking

• Pr

Pre-pr proce

• cess

ss trans nsaction ctions

• EFT cheque

ues

• App-base

based d cheque que issuance ance & image based d cheque que proce cess ssin ing

• Imag

age-base ased processing sing of docume ments ts

• OCR

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

• Automate

mated process ssing ing Branc nch h service vices shifting ting to customers’ mobiles Digitiz itizing ing operatio rations ns

43

1. 1. OCR: Optical Charact cter er recogni nition

• n

Focus us on analy lytic tics

44

Analytic lytics to impro rove producti uctivity ity

45

• Mult

lti-channel hannel lead capture, ure, assig ignme nment nt and fulfillme illment

• 360

0 degre ree view of custome mer r profile ile, sales es trend ending ing and forecas ecasting ing

• Online

ine busine ness s analyt lytic ics s and reports rts

• Understanding

tanding micro ro marke rkets ts and tailoring loring strate ategie ies

• Desig

signing ning branch/ h/ATM expansion ansions across ss geographie raphies

• Synchroniz

hronizing ing central tral and local al decis ision ion making ing Geo-sp spatial atial mapping ing CRM

Activity Planning Sales Pipeline

Relationship Mgmt

Sales Forecast Lead Qualify Guided Selling Content Mgmt Onboarding

Investmen tments ts being ng made in..

46

Big Data a Analy alytic tics

• Custome

mer r enga ngageme ment

• Real time offers

s and infor

• rmat

ation

• n

enric iche hed d with geo taggin ing

• Custome

mer r servic rvice e and fraud preve ventio ntion

• Real

l time e failu lure e repor

• rtin

ing

• Trans

nsaction ction monitor

• ring

ng

• Campaig

aigns ns

• Micro-se

segme gmenta ntation

• n and prope

pens nsity y models

Investmen tments ts being ng made in..

47

Real al time consis iste tent nt messag saging ing across s channels nnels Omni i Channe nel l Camp mpai aign n Manag ageme ment nt

• Real

al time data feeds from m multip tiple le systems tems

• Rules

les run on real l time e event ents s and historic rical al behaviou aviour based data

• Dissemi

seminatio ation n of messag sages s uniformly rmly across s channels nnels

In summ mmar ary

48

ICICI CI Bank has establis ablished hed a strong ng retail tail & rural al franc nchise hise Healthy althy growth th in retai ail l deposit sits

Driv iven en by mortgag age e and auto loans ns Focus us on unsecu cured d lendi nding ng to existin sting custom

• mers

Signif nific icant ant scale le-up up in retail ail lending ing Substant tantial ial expans ansio ion n of physica sical l footprint rint

Buildi ding ng granul ular ar rural al portfol

• lio

In summ mmar ary

49

Leve verag raging ing digital ital techno hnolo logy y for profit itable able growth: h: Automatio mation n of routin tine e trans nsac actio tions Digitiz itizing ing core e area eas to impro rove ve effic icienc iency y & performanc rmance Analytic lytics s used to support rt all areas as Innova vative ive produc ucts ts to impro rove ve experie erienc nce New age digital ital channels nnels for custome mer r convenie nience

Thank you

50