PROJECT EXCHANGE A PRESENTATION OF FINDINGS 23 RD MAY, 2008

1. PROJECT EXCHANGEA PRESENTATION OF FINDINGS23RD MAY, 2008 FOR: ICICI BANK LTD. BY: Q MARKET RESEARCH (A DIVISION OF QUANTUM MARKET RESEARCH PVT. LTD.) GS/AMG/611696

2. RESEARCH BACKGROUND • Research was conducted to identify a ballpark price range for each of the following product/service offerings: • Mobile Banking • Mobile Commerce • Remittance • Prior to establishing the price points, there was a quick context setting to understand the value that each of these offerings bring to the consumer

3. CENTRES AGE INCOME GROUP TECHNIQUE Mumbai 25-35 35-45 SEC C SEC B1B2 1 FGD 1 FGD Lucknow 25-35 35-45 SEC B1B2 SEC C 1 FGD 1 FGD Kurnool 25-35 35-45 SEC C SEC B1B2 1 FGD 1 FGD RESEARCH SAMPLE

4. STRUCTURE OF THE PRESENTATION AREA 1: CONTEXT SETTING – WHAT VALUE DOES EACH CONCEPT BRING TO THE CUSTOMER AREA 2: PRICE – VALUE EVALUATION AREA 3: CONCLUSION & RECOMMENDATION

5. AREA 1: CONTEXT SETTING – WHAT VALUE DOES EACH CONCEPT BRING TO THE CUSTOMER

6. THE 3 CONCEPTS COST PER TRANSACTION: • Balance Enquiry: Rs.1 • Mobile top-up: Rs. 5 • Funds Transfer: Rs. 5 • Utility bill payments: Rs. 5 per bill ANNUAL SUBSCRIPTION • Unlimited use: Rs.50 per annum MOBILE BANKING Ability to access your bank a/c via your mobile phone to conduct the following transactions: • Balance Enquiry • Mobile top-up • Fund transfer to another a/c • Utility bill payments COST PER TRANSACTION: • Per transaction: Rs. 5 SUBSCRIPTION FEE • Per month: Rs.7 • For 6 months: Rs. 30 • Per annum: Rs. 50 MOBILE COMMERCE Ability to use your mobile phone (linked to your bank a/c, cr./dr. card) to pay for goods & services: for example - • Pay for travel (rail & air) REMITTANCE Ability to transfer funds from your bank a/c to a beneficiary, who does not have a bank a/c. For example - • You have a bank a/c and would like to send your relative (in another town) some money. You access your bank a/c through your mobile phone & transfer funds to a particular mobile phone number. You also receive a PIN number which you communicate to the beneficiary, who then goes to an ATM, inputs the PIN & receives the money. • The beneficiary could also go to a designated post office/agent & receive the funds COST PER TRANSACTION: • 2% • 3% • 4%

7. DIFFERENCES BY CENTRE MUMBAI • Savvy about both mobile & banking developments • Aware of various facilities such as ATMs & Internet • Migrated to the city for better prospects • Frequently sends money to family/relatives in hometown • Looking for convenient solutions to various banking transactions BANKING HAS EVOLVED APPEAL OF CONCEPTS: HIGH APPEAL FOR ALL IDEAS • MOBILE BANKING • MOBILE COMMERCE • REMITTANCES APPEAL OF CONCEPTS: HIGH APPEAL • MOBILE BANKING • MOBILE COMMERCE MODERATE APPEAL • REMITTANCES BANKING IS STILL EVOLVING LUCKNOW • Sense of being in transition  moving towards better banking systems & urbanization • High appeal of technology & systems linked with banking & mobiles  cues modernity • Displeased with current branch banking systems • Need to find solutions to the bank’s inefficiency KURNOOL • Low awareness & exposure to mobile & banking developments • Poor infrastructure – fewer ATMs, Bank branches not in close proximity, low technology & systems • Creates sense of concern on how new systems will function given that low exposure to technology & automation in processes BANKING IS STILL MANUAL & SLOW APPEAL OF CONCEPTS: HIGH APPEAL • MOBILE BANKING MODERATE APPEAL • MOBILE COMMERCE • REMITTANCES

8. REACTION TO THE CONCEPTS MOBILE BANKING MOBILE COMMERCE REMITTANCES High appeal towards all 3 concepts In synch with perceptions of evolution in banking processes Equated with consumer centric endeavor by banks MUMBAI Seen as added convenience for consumers Freedom from drudgery of slow branch banking Promises redefinition of lifestyle & transactions Given banking systems are yet evolving, this concept arouses concerns of risk, efficiency & transparency LUCKNOW High appeal Seen as a convenience Saves time & energy for consumers Simplifies & changes their perceptions to banking transactions Low relevance & appeal Association with credit cards, debit cards & flight tickets creates perceptions of being expensive Premium services, hence not for me Low relevance as ATMs far away & post office perceived inefficient See this service of value only in times of emergency The consumer sees himself as the beneficiary KURNOOL

9. Makes life simpler • Redefines mobile usage • Redefines utility • Saves time & energy • Gives you peace of mind • Repositions the user as one who is savvy & progressive • Added convenience & flexibility • Repositions payment transactions • Safety & security • Emergency service • Not a recurring need for most (except Mumbai consumers) • Value addition but not a core need VALUE IT BRINGS TO THE CUSTOMER MOBILE BANKING MOBILE COMMERCE REMITTANCES TRANSFORMS MONEY TRANSFER TRANSFORMS MY LIFE & LIFESTYLE TRANSFORMS PAYMENTS

10. AREA 2: PRICE-VALUE EVALUATION

11. Concerns linked with security if mobile phone is lost • Fear of hidden costs & actual expenses being higher than those indicated • Credibility of the banks & fraudulent behaviour • Private banks: hidden costs, higher rates, selfish motive • Govt. banks: slow, poor infrastructure, not trustworthy • Concerns linked with upgradation to Cr./Dr. card • Perceived as maintaining minimum balance & increase in expenses • Need clarity on list of goods & services covered • Mode of verification & authentication • Concerns linked with safety & security • Hence, trust & credibility of banks crucial • Need assurance of fool proof system – low faith in systems • Insecurity if ATMs not working or Post Office is shut WHAT DETRACTS VALUE PERCEPTIONS? MOBILE BANKING MOBILE COMMERCE REMITTANCES TRANSFORMS MONEY TRANSFER HENCE, NEED 100% SECURITY TRANSFORMS PAYMENTS HENCE, HELP ME SAVE, NOT SPEND MORE TRANSFORMS MY LIFE HENCE, NEED 100% ACCOUNTABILITY

12. PRICE PER TRANSACTION • Balance Enquiry: Rs.5-10 • Fund Transfer: Rs.5-20 • Mobile Top-up: Rs.3-10 • Bill Payment: Rs.3- 10 SUBSCRIPTION • Rs.100-250 for unlimited use PRICE PER TRANSACTION • Rs.1-5 per transaction • Upto Rs.100 for ticket booking SUBSCRIPTION FEE • Monthly: Rs.10-15 • 6 Months: Rs.20-40 • Annual: Rs. 50-75 COST PER TRANSACTION • 1-2% • Not more than that PRICE PERCEPTIONS - SPONTANEOUS MOBILE BANKING MOBILE COMMERCE REMITTANCES TRANSFORMS MY LIFE & LIFESTYLE HENCE, WILLING TO PAY A PREMIUM TRANSFORMS MONEY TRANSFER BUT AROUSES CONCERNS TRANSFORMS PAYMENTS HENCE, WILLING TO SUBSCRIBE

13. PRICE PER TRANSACTION • Balance Enquiry: Rs.5-10 • Fund Transfer: Rs.5-20 • Mobile Top-up: Rs.3-10 • Bill Payment: Rs.3- 10 SUBSCRIPTION • Rs.100-250 for unlimited use PRICE PER TRANSACTION • Rs.1-5 per transaction • Upto Rs.100 for ticket booking SUBSCRIPTION FEE • Monthly: Rs.10-15 • 6 Months: Rs.20-40 • Annual: Rs. 50-75 COST PER TRANSACTION • 1-2% • Not more than that COMPARATIVE CONCEPT PRICING MOBILE BANKING MOBILE COMMERCE REMITTANCES COST PER TRANSACTION: • Per transaction: Rs. 5 SUBSCRIPTION FEE • Per month: Rs.7 • For 6 months: Rs. 30 • Per annum: Rs. 50 COST PER TRANSACTION: • 2% • 3% • 4% COST PER TRANSACTION: • Balance Enquiry: Rs.1 • Mobile top-up: Rs. 5 • Funds Transfer: Rs. 5 • Utility bill payments: Rs. 5 per bill ANNUAL SUBSCRIPTION • Unlimited use: Rs.50 per annum

14. Consumers more than willing to pay Rs.50 for annual subscriptions • All consumers willing to pay at par or higher than price quoted in the concept for • Fund transfer & • Balance enquiry • Bill Payments • Mobile Top-up: • Expect to pay a low price as money gets deducted from talk time in any case • Currently, focus is on ticket bookings • Not a recurring need hence willing to pay a premium for convenience • Expect prices to be lower than those paid to agents • Ideal service must include bus ticket as well • Price becomes secondary as low need/involvement with the service • All consumers willing to pay at par or more than quoted amount for subscriptions • Consumers show least interest in this concept • All consumers feel percentage pricing is expensive & expect slabs like the other concepts • Need to bolster security & safety of transfers KEY TAKE OUT MOBILE BANKING MOBILE COMMERCE REMITTANCES

15. AREA 3: CONCLUSION & RECOMMENDATIONS

16. IN SUM - PRICING & CONCEPTS MOBILE BANKING MOBILE COMMERCE REMITTANCES ++ ++ ++ MUMBAI + + - ++ LUCKNOW ++ - + - + KURNOOL CONSUMERS NOT WILLING TO PAY MORE THAN 2% NEED TO POSITION THIS SERVICE AS A VALUE ADD TO MOBILE BANKING SERVICE SUBSCRIPTION FEE OF RS.50/- FOR UNLIMITED USE MISCOMPREHENDED AS PRIMARILY FOR TICKET BOOKING ALL CONSUMERS WILLING TO PAY ANNUAL FEE OF RS.50/- FOR UNLIMITED USE

17. APPENDIX – CONSUMER QUOTES MOBILE BANKING • “no need to stand in queue at banks, this will save us a lot of time” • “we will not have to go to the ATM also as they are far away & mostly under maintenance” • “mobile has become part of our life & this is very useful for us” • “this is very useful for ladies who are busy with household chores” • “on weekends when banks are shut this will come handy” • “we will have no more emergencies or running around as they have covered all important services under one package” • “whoever uses this will feel relaxed & feel like his life has developed suddenly” • “this makes life so easy for us, if time is saved you can use your time on other activities” • “now mobile phones cost 500-800/- so these modern features will be accessible to us as well”

18. APPENDIX – CONSUMER QUOTES MOBILE COMMERCE • “fantastic idea, no more waiting in line or getting stuck in traffic anymore” • “life will become convenient & this will save us time & energy” • “I will spend less time at the bank & booking counter if this is available on the mobile” • “no need to carry cash in our hand, there is safety but we might have to maintain a minimum balance” • “we have heard these cards are not good, the family expenses will rise with this” • “we don’t carry credit or debit cards as yet, how is this useful for us” • “there might be heavy service charges for delivering the tickets to our house” • “what if the bank does not charge the amount correctly”

19. APPENDIX – CONSUMER QUOTES REMITTANCES • “the idea is interesting but there are negatives about it” • “what if we lose the PIN number or suddenly the other party does not need the money” • “this will be useful in emergencies or during marriages” • “the post office is usually shut and is far away from our house, we don’t go there anymore” • “if the PIN number gets into the wrong hands then anyone can remove the money”