FINAL RESEARCH PROJECT REPORT

ON
“Product & service innovation in Retail banking industry”
CONDUCTED FOR

RETAIL BANKING INDUSTRY.

SUBMITTED TO

JAGRAN INSTITUTE OF MANAGEMENT (JIM)

SESSION: 2006-08

UNDER THE GUIDANCE OF: SUBMITTED BY:

Ms. Saba Iqbal Mr. Abhishek Srivastava

ACKNOWLEDGEMENT

Ms Saba IqbalDr. S.K. Agarwal, Director, JIM,

 PREFACE

OBJECTIVE AND SCOPE OF THE STUDY

INNOVATION.
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CHAPTER NO. CHAPTER TITLE

1 Acknowledgement

2 Preface

3 Objective & Scope of the study

4 Study of existing products & services

1 Innovation (What & Why)

2 Basic requirements for innovation

7 Retail banking?
8
Problems & their innovative solution

9 Macro drivers for innovation

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Top trends in banking
11 Emerging bank technologies

12 Role of services & its impact on

customer’s experience.

13 Conclusions
14 Recommendations

15 References

Study of Existing Products and Services

Cards

Accounts & Deposits

 Loans

Wealth Management

Payment Services
Small & Medium Enterprises

Agricultural & Rural Banking

 Why innovation: Dare to be different:
Consumer banking plays an important role in banks'
profitability. Although the growing economy and further
improvements in the level of household income have created
many opportunities for consumer banking, there is also
increasingly strong competition amongst the financial
institutions due to the liberalization and globalization of the
banking industry. In order to remain competitive, banks have
to take steps to introduce new consumer banking products
and services that will make banking more convenient and
accessible to the public.

Banks are increasingly becoming integrated financial entities. Apart from offering
the traditional banking products, banks today also provide advisory and wealth
management services, such as promoting third-party unit trust funds and insurance
products as well as will-writing services and also to remain competitive in this world
they need to innovate consistently.

“INNOVATION is nothing but to meet out present need of the customer

by consistently making the process convenient and accessible to the public. It also
consists of identifying and anticipating the current and future problems and
providing future and created requirements”.
…………(Abhishek Srivastava)

After knowing what really is an innovation it will be convenient for us to innovate

something. First step is to understand the existing and future problems of the
customers accordingly to find a very innovative solution. We see three types of
innovation being pursued in the market.
 The first is product and services innovation.
 The second is operations innovation.
 And the third is business and enterprise model innovation.

All these three types of innovations are complementary to each other therefore we
will consider each type of innovation. All of these innovations bring benefits to
banks, but we see business model innovation as bringing the greatest and most
sustainable return.

Basic requirements for innovation

Retail banking?

Services offered include: savings and checking accounts,

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Now one by one we will be focusing on customer’s existing and would be

requirements and we will try to find out a new way, process and model to accomplish
it.

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Solution: -
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Solution: -
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Problem: -
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Drivers of Innovation
Emerging bank technologies: -
 Now we will see how technologies are emerging as far as banking
industry is concerned.

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Technologies that look promising for banks: -

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Innovation must deliver better customer experience,

which is
 Innovating Customer Service
Between hidebound marketing ideas, long-standing structural limitations, and
complex regulatory requirements, banking by and large lags far behind most other
consumer retail industries in developing leading-edge products and services.
Innovating customer services is far more difficult task than any other task because
of the following reasons: -
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Future Profit Sources

Paradigm

1) Customer insight
2) Offer optimization
3) Cross-selling
4) Common processes
 5) Service efficiency and effectiveness

Conclusion

Recommendations: -
 Formulate and communicate a viewpoint for all prevalent and emerging
technologies.
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 Elevate multichannel design to “customer experience management.”

 Architect to assure business strategy execution.

 Prepare for changes in payments and regulation.

 Departments within banking organizations are usually highly segregated from
one another; the people who know what kind of technical innovations are
needed are often completely isolated from those in a position to deliver the
innovations.

 Banks must be exceptionally careful not to overcomplicate their offerings

 For better customer services banks should open their branches on public
holidays; offering foreign language services in areas with large migrant
populations; or renovating branches to create a more customer friendly
environment. What is clear is that most of this so-called innovation occurs on
the consumer side of the fence.
 Value for Money; Loyalty to the Relationship; and Quality of Bank’s People
should be their top three most important service/relationship factors.

REFERENCES

• Wikipedia.com
• Google.com
• Altavista.com
• Answers.com
• Capegemini.com
• Ingvysyabank.com
My Message
“Hello Friends I am Abhishek Srivastava student of
Jagran Institute of Management. I wish to share
moments with you readers about this report. This
report is nothing but my sincere effort towards
fulfillment of PGDBM. This report could not be
completed without direct and indirect support of my
teachers. They have given important suggestions
and guidance to accomplish that task.

I choose that topic because today the whole world is

heading towards innovation to differentiate
themselves from others. I take that topic to be more
relevant in today’s environment so I started
pursuing it. I planned certain steps to accomplish
that task initially I collected information about the
existing products and services prevailing in the
market then I moved forward to make it more
innovating and fresh for the society. I searched for
people’s problems and tried to find out an
innovative solution of it.

I want you people to read that document and try to

find some relevance out of it. I am hungry for your
precious comments on to that which you can post to
my mail ID if you wish finally I want to say best of
luck for your future and lastly I would like to convey
my gratitude to my honorable teachers for making
me what I am”.
Thank you
My respected teachers: -
Mr. Vinod Kr Sharma
Ms. Shatarupa Sarkar
Mr. Sanjay Srivastava
Mrs. Charu Yadav and my project guide
Ms. Saba Iqbal