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PROJECT EXCHANGE A PRESENTATION OF FINDINGS 23 RD MAY, 2008 FOR: ICICI BANK LTD. BY: Q MARKET RESEARCH (A DIVISION OF QUANTUM MARKET RESEARCH PVT. LTD.)

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Presentation on theme: "PROJECT EXCHANGE A PRESENTATION OF FINDINGS 23 RD MAY, 2008 FOR: ICICI BANK LTD. BY: Q MARKET RESEARCH (A DIVISION OF QUANTUM MARKET RESEARCH PVT. LTD.)"— Presentation transcript:

1 PROJECT EXCHANGE A PRESENTATION OF FINDINGS 23 RD 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 RESEARCH SAMPLE CENTRESAGEINCOME GROUPTECHNIQUE Mumbai SEC C SEC B1B2 1 FGD Lucknow SEC B1B2 SEC C 1 FGD Kurnool SEC C SEC B1B2 1 FGD

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 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 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: 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 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%

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 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 banks 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 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 APPEAL OF CONCEPTS: HIGH APPEAL MOBILE BANKING MODERATE APPEAL MOBILE COMMERCE REMITTANCES BANKING IS STILL MANUAL & SLOW BANKING IS STILL EVOLVING BANKING HAS EVOLVED

8 REACTION TO THE CONCEPTS MOBILE BANKINGMOBILE COMMERCEREMITTANCES MUMBAI LUCKNOW KURNOOL High appeal towards all 3 concepts In synch with perceptions of evolution in banking processes Equated with consumer centric endeavor by banks 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 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 High appeal Seen as a convenience Saves time & energy for consumers Simplifies & changes their perceptions to banking transactions

9 MOBILE BANKINGMOBILE COMMERCEREMITTANCES 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 TRANSFORMS MY LIFE & LIFESTYLE TRANSFORMS PAYMENTS TRANSFORMS MONEY TRANSFER

10 AREA 2: PRICE-VALUE EVALUATION

11 MOBILE BANKINGMOBILE COMMERCEREMITTANCES 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? TRANSFORMS MY LIFE HENCE, NEED 100% ACCOUNTABILITY TRANSFORMS PAYMENTS HENCE, HELP ME SAVE, NOT SPEND MORE TRANSFORMS MONEY TRANSFER HENCE, NEED 100% SECURITY

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

13 COMPARATIVE CONCEPT PRICING 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 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% MOBILE BANKINGMOBILE COMMERCEREMITTANCES PRICE PER TRANSACTION Balance Enquiry: Rs.5-10 Fund Transfer: Rs.5-20 Mobile Top-up: Rs.3-10 Bill Payment: Rs SUBSCRIPTION Rs for unlimited use PRICE PER TRANSACTION Rs.1-5 per transaction Upto Rs.100 for ticket booking SUBSCRIPTION FEE Monthly: Rs Months: Rs Annual: Rs COST PER TRANSACTION 1-2% Not more than that

14 MOBILE BANKINGMOBILE COMMERCEREMITTANCES 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

15 AREA 3: CONCLUSION & RECOMMENDATIONS

16 IN SUM - PRICING & CONCEPTS MOBILE BANKINGMOBILE COMMERCEREMITTANCES MUMBAI LUCKNOW KURNOOL 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 CONSUMERS NOT WILLING TO PAY MORE THAN 2% NEED TO POSITION THIS SERVICE AS A VALUE ADD TO MOBILE BANKING SERVICE

17 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 /- so these modern features will be accessible to us as well APPENDIX – CONSUMER QUOTES MOBILE BANKING

18 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 dont 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 APPENDIX – CONSUMER QUOTES MOBILE COMMERCE

19 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 dont go there anymore if the PIN number gets into the wrong hands then anyone can remove the money APPENDIX – CONSUMER QUOTES REMITTANCES


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