Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

C_Kochhar_ICICI

Document Sample
C_Kochhar_ICICI Powered By Docstoc
					Bank Cards and E-payments




  May 16, 2012
Agenda


Background


e-Payment Initiatives


Benefits and Key Focus Areas


In Conclusion
Agenda


Background


e-Payment Initiatives


Benefits and Key Focus Areas


In Conclusion
 E-Payments



             
                 Covers large canvas
E-Payments
             
                 Can change the way we shop, pay bills,
                 travel, conduct business, bank and live
                          Development Drives Growth
                                                                        Television        Electricity
                                                                          (1926)            (1873)
                          100
                                             Microwave                      Radio
                                               (1953)                       (1905)                             Telephone
                                                                                                                 (1876)
                          80
Percentage of Ownership




                                                               VCR
                                                              (1952)
                                                                                                              Automobile
                                                                                                                (1886)

                          60


                                          PC
                          40            (1975)
                                              Internet
                                Cell Phone     (1975)
                                  (1983)
                          20




                            0                 20         40            60            80                 100                120
                  Source-- Microsoft                      Years Since Introduction
Explosive growth of e-commerce




The explosive growth of e-payment is driven on the sound
platform offered by e-payment technologies …!
        eCommerce – Few examples
                                        Live happenings across World !!


                                                  Fund Transfers
                           Fund Transfers
                                                  Bill Payments
Mobile Top-up                                     Ticketing & Reservation

                And more   ...                    Prepaid card Top-ups
                                                  Broking
                                 Bill Payments    Auctions
  Ticketing                                       Gaming
                           Shopping
mCommerce
                                 Transaction brokers/
                                  Payment Enablers
 Mobile Airline Ticketing        Act as “mBusiness store
                                  front” ( e.g.: mShopping)

                            Third party Mobile
 Mobile Shopping                                  Banks/
                            Service Providers/
                                                  Credit card
                            Mobile Operators/     Companies
                            Service Aggregators
 Mobile Stock Trading

                               Role of Infomediaries
                               Proof Of Purchase
 Mobile Movie ticketing
From payments to e-payments




Source: Using the mobile device to identify and pay for services;
Jason Andersson; Ericsson AB;2002 April
India :
Increased Usage of e-Channels @ ICICI Bank

                     Share of           Share of
    Channel       transactions in    transactions in
                    March 2000      September 2005

   Branches           94%                30%

     ATMs              3%                40%

    Internet           2%                15%
  Call centre &
    mobile
                       1%                15%
However..




India remains an overwhelming cash based economy

    More than 90% PCE made with cash
Agenda


Background


e-Payment Initiatives


Benefits and Key Focus Areas


In Conclusion
Cards
Drivers of migrating payments through
cards



    Spend on cards in India is only about 1% of PCE

    Number of cards has increased from 7 Mn in 2000 to 44
    Mn in 2004 (CAGR 55%)

    Usage up from 2 Bn USD in 2000 to 22 Bn USD in 2004
 Drivers of migrating payments through
 cards



          Innovative Product Proposition
Drivers
          backed by Operations & Service Excellence
  Innovative Product Proposition
              Co-branded  proposition to drive
Co-Branded       Loyalty and
  Cards
                 Incentive to use




              ICICIBank HPCL Credit Card
                 The largest VISA co-brand in Asia
 Example         Constitutes a growing proportion of total
                  card issues - 42% in ’04 to 45% in ’05
                 Fuel spends 2.5 times more than spends
                  on regular cards
        Innovative Product Proposition
                                          Travel Card
                                              Wider acceptability and greater security
 Travel Card
                                              Multiple currencies and denominations
                                              Spends on Travel Cards increasing steadily



                                                                   Spends on Travel Card is Increasing

                                                           100%
 Or g an ised M ar k et Est im at e f o r Ou t b o u n d
          Rem it t an c e f r o m In d ia ($ Bn )          80%

                         FY'04       FY'05       FY'06     60%                                    Travel Cards
Travellers Cheques              1       1.15        1.25   40%                                    Travellers Cheques
Travel Cards                 0.02        0.1        0.25
Total                        1.02       1.25         1.5   20%

Source Amex and VISA Estimates                              0%
                                                                  FY'04     FY'05       FY'06
Debit Card Volume and Spends – Asia Pacific
 Debit Cards

               Can revolutionalize electronic payments in
               India

               Canbe a major catalyst in changing
               consumer behaviour
Debit Cards
                 % of cards in India today are Debit
               70
               Cards

               Usage   is widening
   Debit Cards Performance @ICICI Bank
                                  Cards in Force (number in Mn)


                    8
                    7
   Increasing       6

  penetration of    5
                    4
   Debit Cards      3
                    2
                    1
                    0
                         Mar-03       Mar-04           Mar-05     Sep-05



                     Total Spends on Debit Cards increased
Increasing spends     more than 4.5 times over last two years
  on Debit Cards     Spends per Debit Card increased 43%
                      over last two years
 Emerging Trends in Debit Cards Business


            Segmentation and service
               Mechant rewards and loyalty programs
               Relationship management


Emerging    New   innovations in technology e.g. wireless
 Trends     POS

            New payment forms e.g. contactless,
            through mobile phones
Remittances/ Money Transfer
Card to Card Money Transfer

   Cards can provide cost
    effective channel for
    remittance

   Value can be loaded from
    bank account of sender to
    card of receiver

   Improves efficiency and
    accessibility
    Card based remittance

                REMITTER                BENEFICIARY          PRODUCT




                            Internet
Credit /Debit
   Card                                   Prepaid / Debit/   Card to Card
                             ATM
                                            Credit Card        Transfer
   Cash
                              Card
                           settlement
                            system
Visa Money Transfer - Performance
SME Business
 SME Business



           
               Use of electronic channels will
  SME           
                  Increase efficiency
Business        
                  Track expenditure
                
                  Improve productivity
   Innovative Product Proposition

             
Fleet Card       Cashless transaction and credit facilities for
                 closed user group environment


             
               Credit resides on card
             
               Ability to break up limits into constituent parts
 Benefits    
               Convenience – cash-less transactions, multi-
               application, single cheque repayment
             
               Loyalty – attractive rewards points
             
               Complete MIS to users
  Innovative Product Proposition


             
               Pre-paid and credit versions
             
               Partnership with leading oil companies
ICICI Bank   
               Working capital requirements of transporters
   Fleet       (goods available at oil company outlets)
             
  Cards        To be extended for multi-applications i.e. toll,
               spare parts etc.
             
               656812 DriveTrack fleet cards already issued
               and in use
Rural / Agri Business
  Rural and Agricultural Economy




            
Rural and       Technology and electronic payment systems
  Agri          can be the key drivers to help us reach out to
Business        the rural / agri population through cost
                effective modes of delivery
   Innovative Product Proposition


Farmer     
               Low cost payment mode for use in Rural / Agri
 Card          economy


           
             Easy access to credit – enhanced reach through
             low-cost ATMs & merchant outlets
           
Benefits     Faster updation & access to repayments –
             electronic transactions
           
             Reduced financing cost – amount utilized when
             needed
           
             Removal of cheque & consequent delays
Innovative Product Proposition

        
          Loans to farmers for agricultural use (including
          inputs )
        
          Limit resides on card
        
ICICI     Usage
            
Bank          Cash withdrawal from ICICI bank ATMs
            
Kisan         POS usage through ICICI Bank POS only
            
Card          Other services through local bank branches
        
          Eg. Loans to tobacco farmers, sugarcane
          farmers etc
        
          Top rural ATM currently handles approx. 350
          transactions/day
Government Sector
 Government Sector – A big potential




             
               Procurement/ Purchase
Government   
               Tax Collection (Filing of returns on the net)
  Sector     
               Distribution of pension on cards
             
               Government bills (e-governance)
 Government Sector – A big potential



             
                 Will make government transactions more
Government       transparent
  Sector     
                 Will reduce administrative paperwork
Internet
  Evolution of Internet Banking

Access to Basic                              Transfer to other
                        Transfer from one
    Account                                     customer
                       account to another
  Information                                accounts with the
                       for same customer
                                                  Bank
                         within the Bank




                   Other Value Added
                                             Transfer to other
                  transactions like Bill
                                            accounts across the
                      Pay, Online
                                                  Bank
                     Bancassurance
  ICICIBank.com


           
             Online Demand Draft
           
             Money Order Online
           
Various      Seamless Billpay
Services   
             Pure Gold Online
Offered    
             Bureau De Change
           
             Mutual Funds Online
           
             Outward Remittance
           
             Bancassurance Integration
  ICICIBank.com



                 
                     Monthly Users: 6 lakhs
 Users and       
transactions         Monthly fund transfers : 5 lakhs
                 
                     Monthly Bill payments : 2.33 lakhs


          Railway Online ticketing – 0.3 Mn tickets online to 3 Mn
          tickets in 2006
Mobile
   Evolution of Mobile Banking

                From Push
                 Services                                   To Pull services




                                               ICICI Bank Offerings
                                               
ICICI Bank Offerings                              Account Balance Inquiry
                                              
   Account Debit/Credit - When bank A/c is        Last 3 transactions
   debited by Rs.5000/- or more,as specified   
                                                  Cheque Status Inquiry
   by customer                                 
                                                 Stop Cheque Request.
   Cheque Bounce intimation                    
                                                 Cheque Book Request
   Balance above/ below Limit specified by     
                                                  Bill payments
   customer                                    
                                                 Payment due date
   Credit card payment due date reminder       
                                                 Reward points for redemption
   Approaching credit limit intimation         
                                                 Demat balance enquiry
   Demat account credited/debited              
                                                 Transaction status
   Instruction rejection intimation            
                                                  Bill Details
Mobile Top-up


 Allows card holders to top
 up mobile airtime using
 Credit / Debit card

 Potential  applications:
     Airline and Railway
      tickets
     Bill payments
mChq

    The first mobile-to-mobile
    payment option between
    customers & retailers

    A mobile will now serve as a
    Secure Point of Sale (POS)
    terminal and payment
    mechanism

    Simple and fully secure
    transaction since every
    transaction is pre-approved by
    the cardholder and digitally
    signed for, through a PIN
    number
Visa Wave
   Visa Chip Card

   Just 1 account for contact
    chip, contact less and
    magnetic stripe technology

   Launched in Malaysia, Korea,
    Taiwan

   For use in supermarkets,
    convenient stores, mega
    malls, quick-service
    restaurants
Agenda


Background


e-Payment Initiatives


Benefits and Key Focus Areas


In Conclusion
Benefits



            Convenience
            Lower transaction costs
Benefits    Increased operational efficiency
            Can help reduce the size of informal
             economy
   Key Focus Areas


                  Needto focus on security and transaction
                  authentication for various channels
                     Payer authentication – “Verified by VISA” and
 Security and         “ MasterCard SecureCode” programs to
 transaction          increase payment security
authentication       CV2/CVC2 (CVD) Verification to confirm
                      genuineness of cards and legitimacy of
                      account numbers
                     Dual authentication for Internet Banking
    Key Focus Areas



                 Customereducation on benefits and security
  Customer       requirements like password protection etc of
education and    each e-payment channel
   channel
 penetration     Increased penetration of the channels and
                 devices like mobile phone, Internet, POS etc
                 for increased acceptability and usage
Agenda


Background


e-Payment Initiatives


Benefits and Key Focus Areas


In Conclusion
   In Conclusion
                        new channels for e-payments today
                 Various
                 to complement traditional channels

                 Penetration of e-channels has increased
                 substantially

In Conclusion
                 New technology initiatives and platforms
                 provides the ability to drive newer payment
                 channels

                 Customertoday is more responsive to adopt
                 newer channels
   In Conclusion


                     number of transactions through e-
                 Total
                 payments will increase expontentially

                 Need to continue focus on
In Conclusion
                     Security of various e-channels
                     Customer Education
                     Penetration of enabling infrastructure to
                     realise true potential of e-payment
Thank You

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:5/16/2012
language:
pages:53
fanzhongqing fanzhongqing http://
About