0. Customer Satisfaction Deputy Managing Director (IT)
MB-ZXE332(SBI)(AM)(LL)
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

1. Contents of Presentation
MB-ZXE332(SBI)(AM)(LL)
Customer Satisfaction
Service Quality
Indian Banking: Challenges
The SBI Story

2. Custormer Satisfaction
MB-ZXE332(SBI)(AM)(LL)
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.

3. Service Quality
MB-ZXE332(SBI)(AM)(LL)
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

4. Improving Service Quality
MB-ZXE332(SBI)(AM)(LL)
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 customers whenever needed
Customer Feedback
Discover customer dissatisfaction
Identify customer needs
Discover priorities of Quality
Compare performance with the competition
Determine opportunities for improvement

5. Improving Service Quality
MB-ZXE332(SBI)(AM)(LL)
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

6. Indian Banking Challenges: Customer Diversity
MB-ZXE332(SBI)(AM)(LL)
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

7. Indian Banking Challenges: Financial Inclusion
MB-ZXE332(SBI)(AM)(LL)
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

8. Indian Banking Challenges: Scaling Up
MB-ZXE332(SBI)(AM)(LL)
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

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

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

11. WIDE AREA NETWORKING AND CORE BANKING
MB-ZXE332(SBI)(AM)(LL)
WIDE AREA NETWORKING AND CORE BANKING
All 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

12. ATM Project Value Added Services
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ATM Project
Numbers
Nearly 20,000 ATMs
Largest Bank owned network in the world
Card base
66 mn.- Largest card base in South Asia
Connectivity
Part land lines and part through VSATs
Daily Hit rate
300 hits per ATM
Transaction Volume
Average : 134 million per month
Cash dispensed
Rs. 330 billion per month
Value Added Services
Bill Payments, Payment of College/Hostel Fee
Card to Card transfer of funds
Donation to Temples / Trusts

13. Internet Banking No. of Users: 5 million txns per month Services:
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Internet Banking
Retail Services
Corporate Services
Customer to Self
Customer to Customer
Customer to Utility Service Provider
Customer to Institutions
Customer to e-commerce sites
Customer to Government
Business to Self
Business to Business
Business to Employees
Business to Institutions
Business to Government
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

14. Mobile Banking Services
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Mobile Banking Services
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

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

16. Financial Inclusion: SBI Initiative
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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

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

18. Preparing for the future
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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 within this year
Opening 1000 branches every year

19. SBI: Biggest Bank in the Service of Smallest Customer
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SBI: Biggest Bank in the Service of Smallest Customer
More than 2 centuries of Trust
Widest reach with more than branches of the group on Core Banking
Nearly 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

20. 2002-07-17MB-ZXE332(SBI)(AM)(LL)
Thank you