Enabling RightChoice Retail Banks

digital transformation

Making Physical work with Digital




Roy was contemplating his future moves as he stood staring through his 25
th
Floor office in the
upmarket Nariman Point Business District of Mumbai. The twenty page revenue report sitting
on his desk had unnerved him to a great extent. While the revenue figures of RightChoice
Banks retail division had been stagnating for quite a while now but what came as a rude shock
was that the revenues had actually declined by 2% in the 2
nd
quarter of 2014. This would be the
first contraction in revenues in the last 20 quarters and Roy being promoted as the CEO of India
Retail operations only a year back could not afford such a setback so early into his stint. Looking
through his office window across the horizon over the Arabian Sea, Roy tried to gather his
thoughts and calm himself down.
Roy had joined the Right Choice bank as a young MBA way back in 1988. The London based
bank with operations in 57 countries had just set up shop in India and was looking for young
enterprising people to take care of its fledging India operations and Roy perfectly fit the bill.
What followed next was the meteoric rise of the RightChoice banks operations in India and
alongwith it the rise of Roys career.
RightChoice bank had always patted itself for understanding the Voice of the customer and
had devised its operations accordingly. The Retail Bank always had the customer as its first
priority and the customers had returned the favour by making the RightChoice Bank the
numero uno retail bank of the country. The bank had branches in 127 Tier 1 and Tier 2 towns of
FINANCIAL SITUATION


India and followed customer friendly timings of 8AM to 8PM long before its competitors
followed suit. The bank was trusted and loved by its patrons especially the young professionals
and was a welcome change from the typical PSU banks which were associated with long queues
and longer holidays making it the largest retail bank with revenues of Rs 4,000 Crores from its
Indian retail operations alone.
However, the bank was losing steam in the past few quarters and was scoring less and less on
various customer satisfaction indices (See Exhibit 1)
Roys chain of thought was interrupted by a beep on his mobile. Ravindra Chandra had sent a
mail requesting a meeting to discuss the future course of action. Ravindra Chandra headed the
credit card division and Roy knew that the turnaround in banks fortune had to begin from the
same division. (See Exhibit 2)
Now a unique thing about the credit card division which any retail banking veteran will tell you
is that although the division might be small in terms of revenues or profits but it is the most
important division when it comes to acquiring new customers. Once these customers are
associated with the brand of the bank they can be egged on to use other banking products
based on their past purchase data analysis.
However the performance of the RightChoice credit card division left a lot to be desired and
Roy immediately called Chandra to his cabin. The meeting lasted a total of 90 minutes where
Roy and Chandra identified the key steps to be taken to reverse the sliding fortunes of the Right
Choice Bank.
Some of the key points of the meeting summarized from the minutes of the meeting are
The primary reason for a drop in revenue was less use of the RightChoice credit cards.
This was a startling development as with the arrival of e-commerce and digital payments
technology the credit card usage for competitors had actually gone up while it had fallen
for RightChoice bank (See Exhibit2)

Target Group - Young customers had been a key driver for RightChoices growth
historically in all the markets they operated in. RightChoice had been the bank of choice
for young Indians also. However, in the past few quarters this loyal base had deserted
RightChoice for other nimble competitors.



Customer Retention Based on advanced analytics RightChoices big data team had
validated the hypothesis that the customer life time value of a loyal customer is far far
greater than a customer who is giving his business attracted only by
discounts/promotions. Right choice had to look for means to retain customers and
cross sell and up sell to them

Digital Transformation - Although the bank had an internet banking site and credit card
facilities it needed a complete digital transformation to ensure seamless customer
journey. People had to be encouraged to visit its site, try out its products and find a
convenient way to transacting across channels and products. The USP had to be
Customer Convenience

New channel exploration RightChoice needed to explore new channels of customer
acquisition. Right choice had a strong presence in offline retail but it had failed
miserably in attracting the young internet savvy customers. It had to be innovative in its
approach.

After the meeting Roy realized that the two key focus areas for RightChoice bank would be
marketing and technology. The marketing team and the CIO would have to work in tandem to
achieve the Digital vision. Roy knew that it was easier said than done because with the
increasing size of Right Choices operations the departments had started working in silos and
any meaningful interaction between the CIO and CMOs team in the current structure would be
challenging and that too was an understatement.
Roy needed managerial expertise to help him devise an effective strategy and hence he got
consultants from Capgemini Consulting Digital Thought leaders in the industry to help him
break the logjam.
You are a consultant from Capgemini Consulting and have been given the following problem
statement from Mr. Rangarajan Roy, CEO India Retail operations, RightChoice Bank
1. Devise a digital strategy to arrest the fall in revenues in the short term (1 year) and an
increase in revenues (10% y-o-y) in the long term (5 years)- Max 2 slides





2. Design a reporting structure to ensure greater coordination between the departments
of marketing and IT. You can make a separate team handling such projects or create a
new position to ensure coordination or create an entirely new department with matrix
reporting structure. However give only one suggestion along with the performance
indicators to evaluate the success of the team/position/department.- Max 2 slides.

3. Suggest channels to acquire new customers especially credit card customers Max 2
slides

4. Suggest methods of improving customer retention 1 slide





GENERAL RULES
1. Round 1 submission should be in a word document format, strictly not more
than eight A4 equivalent pages with a minimum font size of 11 and a maximum
font size of 12. An appendix of no more than five A4 equivalent pages can be
added.
a. The first page of the document to mandatorily content the Team name,
team member names and campus name.
b. Document Name : Agon2014_Team Name_Campus Name

2. Round 2 submissions should be in a PowerPoint format, with the presentation
no more than 10 content slides in length.



EXHIBITS:
Exhibit 1: Customer Satisfaction score
Customer satisfaction score is an average of various customer satisfaction metrics (like Net
Present Value, Customer Lifetime Value etc) created by consultants and analytics firms hired by
RightChoice Bank.








0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14
Customer satisfaction metrics
Industry average Customer experience score
RightChoice Customer experience score



Exhibit 2: Credit card data

Credit Card Data for RightChoice
Quarter Credit Card Revenues
(In INR Crores)
No. of credit card customers (In
lakhs)
Q2 14 500 12.5
Q1 14 520 12.9
Q4 13 498 12.5
Q3 13 480 12.3
Q2 13 460 11.5
Q1 13 420 10.7
Q4 13 360 9.7
Q3 13 312 8.8
Credit Card Data for Nearest Competitor
Quarter Credit Card Revenues
(In INR Crores)
No. of credit card customers (In
lakhs)
Q2 14 375 10
Q1 14 335 8.8
Q4 13 300 8
Q3 13 270 7.3
Q2 13 250 6.7
Q1 13 220 6
Q4 13 200 5.5
Q3 13 175 4.8


Exhibit 3: Segmentation and targeting the right TG

Age (Years) Male Female
0 18 Low Priority Low Priority
18-24 Medium Priority Medium Priority
24-35 High Priority High Priority
35-45 High Priority Medium Priority
45-60 Medium Priority Low Priority
60+ Medium Priority Low Priority