social media in banking industry

BANKING INDUSTRY IN INDIA

HOW BANKS CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS

© InRev Systems 2011

IND

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There is a shift in the Indian banking market from public to private and foreign banks

7%17%

76%

Market Share by Assets (2002-03)

Foreign BanksPrivate BanksPublic Banks

7%19%

74%

Market Share by Assets (2009-10)

Foreign BanksPrivate BanksPublic Banks

Source: IBEFRBI

Banks

Scheduled Commercial

Banks

Cooperative Credit

Institutions

Financial Institutions

All-India Financial

Institutions

State-level Institutions

Other Institutions

Public Sector Banks

Private Sector Banks Foreign Banks Regional Rural

Banks

Urban Cooperative

Banks

Rural Cooperative Credit Institutions

Source: RBI

Structure of Indian Banking System



IND

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Offices of Commercial Banks in India

Bank Group 2006 2007 2008 2009 2010

SBI & its Associates 14310 14673 15846 16878 18114

Nationalized Banks 35858 37431 39234 40854 43187

Public Sector Banks 50168 52104 55080 57732 61301

Old Private Sector Banks 4819 4826 4690 4908 5174

New Private Sector Banks 2016 2598 3632 4328 5213

Private Sector Banks 6835 7424 8322 9236 10387

Foreign Banks 259 272 279 295 310

Regional Rural Banks 14807 14843 15070 15485 15723

Non-Scheduled Commercial Banks 41 46 46 46 47

Total Commercial Banks 72110 74689 78797 82794 87768

Source: RBI


IND

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TTRA

CTIV

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Industry Rivalry

Threat of New Entrants

Supplier PowerBuyer Power

Threat of Substitute

012345

IndustryRivalry

Fixed cost and exit cost is high which makes the industry attractive while large no of players makes it less attractive. Overall, the attractiveness of the industry due to industry rivalry is medium

Threat of New Entrants

Very capital intensive and involvement of economy of scale makes the industry attractive. The industry is highly regulated. Overall attractiveness due to threat of new entrants is high

Supplier Power

There are not many no of suppliers. Moreover, backward integration of the supplier is quite possible. Overall, the attractiveness of the industry due to supplier power is medium

Buyer Power

There are large no of buyers and forward integration of the buyers is not likely. Brand of the bank plays an important role in customers choosing their banks. Overall, the attractiveness of the industry due to buyer power is medium to high

Threat of Substitute

There are a no of substitutes available such as moneylenders, micro-finance institutions, etc. However the reliability of banks makes it very attractive over its counterparts. Overall, the attractiveness of the industry due to threat of substitute is high

Overall, the attractiveness of the industry is HIGH


SOCI

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EDIA

USA

GE

STAT

SLinkedIn has over 100 MILLION users and adds about 1 MILLION new users to its service every week. The median age of LinkedIn users is 41, and the average user has 60 connections. 20 percent of its members are in the service industry

Twitter has more than 145 MILLION users and adds about 6 MILLION new users a month. On average 140 million tweets are sent a day. More than 460,000 new account have been added every day . The median age of a Twitter user is 35 years old and the average user has 70 followers

Facebook currently has over 500 MILLION active users around the globe and 50% of these active users log on to Facebook in any given day. Facebook's median age is 31 and its average user has 130 friends and is connected to 80 community pages, groups or events while average user creates 90 pieces of content each month

YouTube has 2 BILLION views per day, and 24 hours of video is uploaded every minute. YouTube achieved for the first time the milestone of 100 videos watched per user last year

WH

Y SO

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IA?


Access sentiments of customers

Consumer Insights

Brand Health

Tracking Engagement with customers

Reaching out to customers

CRM

Negative word-of-mouth spreads fast especially in the social media and it is essential to engage proactively with such customers

It is essential to engage with customers to attract new customers as well as to understand the needs of customers

WH

Y SO

CIAL

MED

IA?


Has your bank got new product or service which you want to be make aware among your customer base? Social media is the best and easiest place to drive awareness of your product/service

It is essential for your bank to provide the best service and solution to your customers. By leveraging social media, banks can develop and increase their relationship with customers

Develops & Deepens Customer

Relationship

Foster Innovation &

Idea

Hasten Awareness

Hiring Employers

Social media is the right place to collect information about the company. Social media is filled with suggestions for improvements and ideas and these can be used to foster innovation

Banks can use social media to identify and attract high quality job candidates. The number of prospects are high and is one of the easiest way of employment recruitment


SOCI

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GRA

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0 1 2 3 4 5 6 7 80

0.5

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1.5

2

2.5

3

No of Channels

Inte

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Lev

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Interaction Plot of the Private Sector Banks in the Social Media Space


SOCI

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Social Media Grades for the Private Sector Banks in India

Banks No of Channels Social Grades

HDFC BANK 8 3.06

ICICI BANK 8 2.81

AXIS BANK 5 2.28

CITI BANK 5 2.02

YES BANK 6 1.97

KOTAK MAHINDRA 5 1.62

STANDARD CHARETERED 4 1.8

INDUS IND BANK 4 1.24

ING VYSYA BANK 3 0.79

SOUTH INDIAN BANK 3 0.72

KARNATAKA BANK 3 0.57

BANK OF PUNJAB 2 0.36

The Social Media Grades shows how active the banks are in the social media space

Calculated on a scale of 5, the interactivity level of the banks in Facebook, Twitter, LinkedIn, YouTube and Blogs are taken into consideration

No of channels represents the bank’s presence in any social networking sites


HD

FC B

ANK

Blog Facebook Page

Engagement in Facebook YouTube Channel

HDFC Bank is one of the most prominent private sector bank in India using social media as a way of connecting and engaging with customers


HD

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ANK

HDFC leverage the power of twitter for both customer engagement and notification

HDFC Bank has more than 12307 followers in LinkedIn


SOCI

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AGEM

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0 1 2 3 4 50

0.5

1

1.5

2

2.5

No of Channels

Inte

racti

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Lev

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Interaction Plot of the Public Sector Banks in the Social Media Space


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Social Media Grades for the Public Sector Banks in India

Banks No of Channels Social Grades

SBI 5 1.68

BANK OF BARODA 5 1.39

PUNJAB NATIONAL BANK 5 1.28

CANARA BANK 4 1.16

IDBI 3 0.88

BANK OF INDIA 2 0.51

CORPORATION BANK 3 0.43

PUNJAB & SIND BANK 2 0.35

DENA BANK 2 0.35

VIJAYA BANK 2 0.35

ORIENTAL BANK OF COMMERCE 2 0.35

ANDHRA BANK 1 0.16

The Social Media Grades shows how active the banks are in the social media space

Calculated on a scale of 5, the interactivity level of the banks in Facebook, Twitter, LinkedIn, YouTube and Blogs are taken into consideration

No of channels represents the bank’s presence in any social networking sites

Public Sector Banks are lagging behind their counterparts


STAT

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Engagement & NotificationIn Twitter

Facebook Page

Facebook Corporate PageYouTube Channel

SBI is one of the most active public sector bank in India using social media as a way of connecting and engaging with customers

State Bank of India has more than 6500 followers in LinkedIn


Simplify360 is a web based social media engagement and analytics platform that offers a ONE STOP SOLUTION to the social media needs of a business and lets you engage with your customers and interpret your social presence

Simplify360 provides an easy to use platform for tracking and listening to what people are talking about your brand in social communities.

With Simplify360 you can not only LISTEN to what your customers are talking about your brand but also ENGAGE with them!

Simplify360 lets you ANALYSE the social media presence of your brand by giving you actionable insights

SIM

PLIF

Y360


SIM

PLIF

Y360

ICICI Mentions in Twitter

ICICI versus HDFC mentions in Twitter

TRACK real time conversations about your brand. Once you understand how your product is perceived, you can take informed decisions to market it better

COMPARE the performance of your brand against your competitor


SIM

PLIF

Y360

Demographic of people who talk about SBI

Demographic of people who talk about ICICI

TRACK the demographic profile of the people talking about your brand and COMPARE it with your competitors

It can be observed that people all throughout the different age groups talk about ICICI whereas people only in their 20’s and early 30’s talk about SBI. SBI may want to know the reason behind the less patronage in the age group of 35 and above


SIM

PLIF

Y360

Tracking the keyword “bank”

TRACK specific keywords to identify how your brand is mentioned in the industry

DETERMINE the industry trend

Tracking negative sentiments about keyword “bank”

IDENTIFY what are the things that people talk negative about in your industry and ACT accordingly


SIM

PLIF

Y360

Negative Feedback about American Express

ENGAGE TODAY with your customers using SIMPLIFY360

CREATE email campaign, polls and Not only do you get to define the goal for your campaign but see the progress in terms of visibility and reach of the campaign created

Brand Monitoring & Sentiment Analysis

Social Analytics Dashboard

Schedule Messages and RSS Feed

Personalized URL Tracking

Download Data and Reports

Creating Polls and Sharing

Email Campaigns

Team Collaboration and Work Assignment

Email and Notification

Re-tweet, follow, send message andEngage with your customers


OU

R AC

HIE

VEM

ENTS

Our applications has been covered by top media houses in the world including Forbes, PCWorld, CNBC YoungTurks, KillerStartup, SiliconIndia, CIO, Smart Company and many more

Featured as ‘Startup of the Month’ in Silicon India 2010

Selected as one of the top innovative product companies at Microsoft TechSpark 2010.

Featured in a Young Turks CNBC TV 18 as top selected innovative companies.

© InRev Systems (2011)

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VP - Sales, InRev Systems

http://simplify360.com/

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http://simplify360.com/blog/

http://simplify360.com/blog/



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