Digital Banking Kotak Mahindra Bank Mumbai, June 23 rd, 2015
Going Digital @Kotak
India s Key Digital Statistical Indicators Population 1265 Mn Mobile Penetration - 74% Internet Users 19% Social Media - 9% 84% use social Media on Mobile * Smart Phone Users 200 Mn
Global Digital Landscape Internet Penetration Average Net Speed (Mbps) 42 93 (Canada) 19 4.5 25.3 (S. Korea) 2 Mobile Share of Web Traffic Ecommerce adoption 33 76 (Nigeria) 72 34 64 (UK) 14 Average Global Best India
Digital An imperative for Indian banks Digital infrastructure rapidly expanding Regulatory changes becoming more facilitative Customer digital readiness rapidly increasing Integral part of the changing competitive context ~160 Mn urban internet users in 2014 (1.5X from 2012) >200 Mn smart phones by 2015 Aadhaar ekyc (UIDAI accounts rapidly expanding) Information bureaus for instant credit appraisal ~60% customers with internet digitally influenced for banking > 40% express strong interest for right digital solutions Digitization top of the agenda for incumbents New / non-banks putting digital at centre of strategy Revenue pools could come under threat
Digital Agenda A two Pronged approach with payments as core 1 2 Digital enablement of retail business Parallel pure play Digital model Payment: core component of the digital agenda
Technology in Banking Creating superior experience Private Sector & MNC Banks Windows imobile itrack iloans RM Video Banking Others Others Instant loan Kotak Public Sector Banks Apr to Aug 14 Sep 14 onwards
World s First- Accounts for digitally active & socially connected Kotak Jifi & Jifi Saver EFMA Accenture Innovation Awards, 2014: Best new product and service Exchange4media's Indian Digital Media Awards, 2014: Best Digital Innovation EMVIES, 2014: Best Media Innovation - Digital (Social Media) 6% Interest Hashtag banking Kotak Rewards Kotak Money watch Credit Score Socialathon, 2014: Best Use of Social Media in a Larger Campaign
World s first bank to integrate with Twitter for Banking Hashtag Banking 23 banking services offered including Mobile & DTH recharge
A 360 degree Personal Financial management tool Money Watch Basic Platform Features Set Budget & Track performance Auto-categorisation of expense Add Billers & set alerts Paid Platinum Platform Income Tax Computation & Tax Filing Secure storage of Financial Documents First Bank to integrate PFM into net banking
Integrating E commerce with Kotak payments Kotak Rewards Transaction Rewards are given on 100 + Ecommerce Partners 7000 + Hotels
Simplifying Payments -First Bank to launch Email & Mobile no s based transfer Mail & Message Money An innovative, convenient way of making fund transfer No need to know beneficiary bank account IFSC
World s First Bank agnostic P2P Platform Kaypay - Any bank to any bank Transfer money to Facebook, Google+, email/ Mobile friends No beneficiary details required Instantaneous 24X7
Digital Focus @Kotak Mobility Digital Acquisition Social Security Big Data & Analytics Payments Physical & Digital Co existence
Innovation & convenience Mobile App journey Consumer Insight App Launch High utility One time transfer Pre login balance Increase Engagement Push notifications Forgot PIN Family as a unit Multiple CRN Send money to mobile Message money Simplify Registration Revamped registration process Recharge plans Apr 2013 July 2013 Nov 2013 May 2014 Aug 2014 Dec 2014 Mar 2015 Jun 2015 a Mobile recharge PIN change Flight Booking Industry First Hotel Booking Add a Bill Open RD
Creating seamless checkout experience mstore Benefits to Customer Seamless login to merchant sites No need to create a separate login Single-click payment with account/credit card Name / address / payment details are pre-populated - Faster check-out Benefits to Merchant Captive customer base Additional traffic Lower drop-out in payment Rich analytics for customized offers 16
Mobile leads the way @Kotak Over 1/3rd of Bank s active customers use Mobile banking 1/3rd of Mobile users are Mobile Only. Mobile to Net Banking login is 3times Mobile login likely to surpass internet banking login soon Kotak Mobile transaction and customer adoption as percentage of customer base one of the highest in industry Over 80 transaction types enabled on Mobile App in native experience Average transaction value of Mobile App among Top 3 in industry. 17
Great online experience Recommendation based Apply now Capture basic details of customer for lead generation. Google map integration with Pincode to determine if lead is serviceable or not Intuitive question which would depend on the input provided by customers a Recommendation basis the customer profile
Kotak is ranked 13th globally as most social bank 50% of our Customer are on facebook, whom we target via Custom Cluster Social Products launched online with Blogger 7 th Most followed bank on twitter globally * The Financial Brand
Big Data & Analytics Customized offers through UNICA Search / Transact Customer search for Personal Loans Customer buys Flight tickets Contextual See contextual Banner on website Mobile notifications for Travel Card Next Best Offer a If customer, call center gets lead for Personal Loan E-mail pitching shows Travel Cards
Big Data & Analytics Transaction behavior & Location mapping based offers UNICA has identified Purchase Patterns Mobile App GPS locates customer at a mall Customer gets a customized time bound offer a
Kotak Payment Journey a Hashtag banking P2M via twitter mstore P2M Flight & Hotel bookings Mail Money Email ID based P2P Payment launches in 2014-15 PG P2m tie ups with 13 aggregator Message Money Mobile no based P2P Kaypay Bank agnostic P2P
DIGITAL O R PHYSICAL Blending Physical with Digital
& it continues
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