1. Corporate vs. Retail Banking
Prasad Kaipa

2. Corporate vs. Retail Banking
Small number of customers
Narrow client base
Large value transactions
Large number of transactions
Inter-bank transactions
Larger sum of money
Inter-bank markets
Funds for business undertakings
Low cost of processing
Bank has Lower spreads
Mobilitation of deposits for individuals
Lending to small business and retail local markets
Large volume and low value transactions
Liabilities are mostly related to various types of deposits accounts
Loan portfolio is dominated by the consumer loans
High processing cost
Higher interest spread

3. High level of customer relationship
Concept of a personal banker
Close attention and quick service to customers
Each customer has unique requirements
Custom solutions and total service approach
Moderate level of customer relationships
Range of options with high technology component
Value differentiation comes from customer service
Dedicated, highly professional employees at junior and middle management level value differentiation
Product needs to be well defined, easily serviceable and potentially profitable.

4. Transformation in retail banking
In the past, customers were happy with moderate-yield, low-risk and low-cost savings deposits
New generation prefers to invest to build wealth,
demand very high levels of convenience,
expect better working technology,
Require information and advice that can be acted upon, and
Prefer wide range of alternative products
They are highly individualistic and require customized solutions to what they perceive to be unique needs

5. Role of information Technology
It contributed to major upheaval in wholesale banking though its impact on retail bank is increasing.
Technology based delivery channels such as ATMs did not differentiate retail banks.
Corporate clients are more familiar with automation than retail customers in India.
Internet banking has not taken root in India though it is growing. It still represents a small % of banking transactions.

6. Why move to retail banking?
Downfall in the demand of credit
Slackness in the economic activities
To attract rich middle class with consumer finance and housing finance products
Increase lending business to growing number of entrepreneurs and startups

7. Elements of Leadership: Franklin D. Roosevelt
as illustrated by Prof. David Gergen (MS Thesis: Leadership perspectives (2003) by Rajnish Jain)
Second class mind but first class temperament (Justice Holmes, 1933)
A contagious confidence in the future
Capacity to relax, reflect, recharge
Extraordinary Emotional Intelligence
World-class communicator (Through the press, mass media and through symbolism (knew how to avoid over-exposure)
Consesual leadership style
Skill in building coalitions (voters, members of congress and international allies)
Set moral objectives and followed pragmatic means
His strengths were his weaknesses (devious, secretive, manipulative and ruthless)
Magnet for a strong team
An Indispensable partner and co-leader: Eleanor

8. Roosevelt’s Rules of Leadership
Embrace “the strenuous life”
Learn to be fearless
Keep learning about life
Ride ahead of black care
In your ambition, focus on the job at hand
Exercise power to the hilt
Speak softly, carry a big stick
Choose and use your team wisely
Know right from wrong
Charisma (and publicity) help
Face the future with indomitable optimism
Serve Others

9. Roosevelt quotes
Strenuous life: I wish to preach, not the doctrine of ignoble ease, but the doctrine of the strenuous life, the life of toil and effort, of labor and strife; to preach that highest form of success which comes, not to the man who desires mere easy peace, but to the man who does not shrink from danger, from hardship, or from bitter toil, and who out of these wins the splendid ultimate triumph.
Being Fearless: There were all kinds of things of which I was afraid at first, ranging from grizzly bears to ‘mean’ horses and gun-fighters; but by acting as if I was not afraid I gradually ceased to be afraid. Most men can have the same experience if they choose. They will first learn to bear themselves well in trials which they anticipate and which they school themselves in advance to meet. After a while the habit will grow on them, and they will behave well in sudden and unexpected emergencies which come upon them unawares.
Learning: As soon as any man has ceased to be able to learn, his usefulness as a teacher is at an end. When he himself can’t learn, he has reached the stage where other people can’t learn from him.
Indomitable optimism: Life brings sorrows and joys alike. It is what a man does with them---not what they do to him---that is the true test of his mettle.
Serve others: The Man in the Arena---It is not the critic who counts; not the man who points out how strong man stumbles, or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, and comes short again and again, because there is no effort without error or shortcoming; who knows the great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who know neither victory nor defeat.

10. Principles of Officership
Duty
Loyalty
Honor
Competence
Subordination
Service to country
Teamwork
Leadership
---West Point model of leadership

11. West Point Training and Leadership ModelBE
Know Do
Educate
Train
Inspire
Develop

12. Leadership As Calibration Larry Summers, President, Harvard University
Rule #1: The world is an uncertain place, and one must be quite uncertain as to how world events will play out. (proper decision- making requires recognizing the probabilistic elements and recognizing multiple uncertainties.)
Rule #2: Make decisions with a long-term horizon but with the awareness that you need to get through the short term.
Rule #3: Decide when you need to decide. Don’t decide because someone else wants you to. Always preserve the ability to make choices later.
Rule #4: Make sure you hear the voice contrary to the one you are inclined to favor. If somebody suggests doing “x”, he likes to ask “ what are the best reasons not to do X?”
Rule #5: With any people the more people employed to proffer insight and solutions, the better.
From Leadership, Winter a summary of Harvard University Leadership Roundtable, Spring 2002.

13. Managing vs. Leading Plan Vision Organize Align Control Motivate
Values
Direction
What Leaders Do based on Jim Fisher, Dean, Rotman School of Management, U of Toronto
Involvement

14. Key elements of persuasion
Credibility that assures
Empathy that bonds
Explanations that inform
Logic that convinces
Words and ideas that inspire
--- David Gergen as quoted by Rajnish Jain in his MS Thesis (2003)

15. Participative Decision-making
Autocratic Decision
Consultation
Joint Decision
Delegation
High influence by others
No influence by others
Source: Rajnish Jain 2003 from Yuki

16. How U.S. Banks Stack Up in 2004 Citigroup $1.19 trillion
J.P. Morgan-Bank One $1.1 trillion
Bank-America-FleetBoston $966.4 billion
Wells Fargo $369.6 billion
Wachovia $364.3 billion
Washington Mutual $241.9 billion
U.S. Bancorp $194.9 billion
National City Corp. $123.4 billion
SunTrust Banks $120.9 billion
Bank of New York $99.6 billion
compiled by American Banker --Assets as of 6/30/03

17. Leadership
A prince….ought to choose the fox and the lion; because the lion cannot defend himself against traps and the fox cannot defend himself against wolves. Therefore, it is necessary to be a fox to discover the traps and a lion to terrify the wolves. Those who rely simply on the lion do not understand this. -- Machiavelli, The Prince (1513)

18. Guidelines for transformational leadership (Yuki 2002)
Articulate a clear and appealing vision
Explain how the vision can be achived
Act confidently and optimistically
Express confidence in followers
Use dramatic, symbolic actions to emphasize key values
Lead by example
Empower people to achieve the vision

19. Crucibles of Leadership (Bennis and Thomas 2002)
Adaptive Capacity
Hardiness (transcend adversity)
First Class Noticer
Learning
Proactively seizing opportunities
Creativity
Engaging Others by Creating Shared Meaning
Encourage dissent
Empathy
Obsessive communication
Voice
Purpose
Self-awareness, self-confidence EQ
Integrity
Ambition
Competence
Moral compass
From interviews of extra-ordinary achievers under 35 (geeks) and over 70 (geezers)

20. EQ Vs. IQ
90% of the difference in the profiles of star performers with aver average ones in senior leadership positions was attributable emotional intelligence rather than cognitive abilities. -- Daniel Goleman based on research at nearly 200 large, global companies.
Woodrow Wilson is the only US president who has had a ph.d.

21. Spiritual Leadership
Worldview—underlying beliefs by which a leader views and brings forth into the world.
Authenticity— genuineness based on a principle-oriented approach.
Mastery—pursuit of mastery of self and others.
Service—action based on an other-focused approach.

22. Authenticity
1. Communication—defined as the leader’s ability to effectively exchange information, objectives, and vision with followers.
2. Connection—defined as a bond between leader and followers based on the leader’s ability to affiliate at the followers’ level.
3. Consistency—defined as a leader’s ability to retain constancy in words, deeds, and actions with minimal variation.
4. Conviction—defined as the leader’s firmly held belief in the vision.

23. Authenticity
5. Courage—defined as the leader’s ability to stay true to the vision and course of action regardless of sacrifice, difficulty, or uncertainty.
6. Equality—defined as equal opportunity and treatment among followers in relation to the vision.
7. Exemplar—defined as the leader’s ability to be an ideal example of those principles fundamental to his worldview.
Values—defined as the core qualities demonstrated by the leader.
Vision—defined as the leader’s future ideal for self and followers.

24. Soulful Leadership Model - Kathleen Fleming Dissertation 2004

25. Soulful Leadership Model Kathleen Fleming Dissertation 2004