Customer Satisfaction Vs Service Quality Presentation by A.Krishna Kumar

1. 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

2. Contents of Presentation Customer Satisfaction Service Quality Indian Banking: Challenges The SBI Story

3. Custormer Satisfaction • 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.

4. Service Quality • 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

5. Improving Service Quality • 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 customerswhenever needed • Customer Feedback • Discover customer dissatisfaction • Identify customer needs • Discover priorities of Quality • Compare performance with the competition • Determine opportunities for improvement

6. Improving Service Quality • 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

7. 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

8. 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

9. 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

10. The SBI Story • Meeting the first challenge • To provide quality service to all the customer classes as per their needs

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

12. 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

13. ATM Project • Value Added Services • Bill Payments, Payment of College/Hostel Fee • Card to Card transfer of funds • Donation to Temples / Trusts

14. Internet Banking • 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

15. Mobile BankingServices • 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

16. The SBI Story • Meeting the second challenge • To reach 600,000+ villages and provide Financial Inclusion

17. 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

18. The SBI Story • Meeting the Third challenge • To scale up to the growing demand for banking services

19. 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

20. 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

21. Thank you