PROJECT EXCHANGE
A PRESENTATION OF FINDINGS
23RD MAY, 2008
FOR: ICICI BANK LTD.
BY: Q MARKET RESEARCH
(A DIVISION OF QUANTUM MARKET RESEARCH PVT. LTD.)
GS/AMG/611696
RESEARCH BACKGROUND
•
Research was conducted to identify a ballpark price range for each of the following
product/service offerings:
– Mobile Banking
– Mobile Commerce
– Remittance
•
Prior to establishing the price points, there was a quick context setting to
understand the value that each of these offerings bring to the consumer
RESEARCH SAMPLE
CENTRES
AGE
INCOME GROUP
TECHNIQUE
Mumbai
25-35
35-45
SEC C
SEC B1B2
1 FGD
1 FGD
Lucknow
25-35
35-45
SEC B1B2
SEC C
1 FGD
1 FGD
Kurnool
25-35
35-45
SEC C
SEC B1B2
1 FGD
1 FGD
STRUCTURE OF THE PRESENTATION
AREA 1: CONTEXT SETTING – WHAT VALUE DOES
EACH CONCEPT
BRING TO THE
CUSTOMER
AREA 2: PRICE – VALUE EVALUATION
AREA 3: CONCLUSION & RECOMMENDATION
AREA 1: CONTEXT SETTING – WHAT VALUE DOES
EACH CONCEPT
BRING TO THE
CUSTOMER
THE 3 CONCEPTS
MOBILE BANKING
Ability to access your bank a/c via your mobile phone
to conduct the following transactions:
•Balance Enquiry
•Mobile top-up
•Fund transfer to another a/c
•Utility bill payments
COST PER TRANSACTION:
•Balance Enquiry: Rs.1
•Mobile top-up: Rs. 5
•Funds Transfer: Rs. 5
•Utility bill payments: Rs. 5 per bill
MOBILE COMMERCE
Ability to use your mobile phone (linked to your bank
a/c, cr./dr. card) to pay for goods & services: for
example •Pay for travel (rail & air)
COST PER TRANSACTION:
•Per transaction: Rs. 5
ANNUAL SUBSCRIPTION
•Unlimited use: Rs.50 per annum
SUBSCRIPTION FEE
•Per month: Rs.7
•For 6 months: Rs. 30
•Per annum: Rs. 50
REMITTANCE
Ability to transfer funds from your bank a/c to a beneficiary, who does not have a
bank a/c. For example •You have a bank a/c and would like to send your relative (in another town) some
money. You access your bank a/c through your mobile phone & transfer funds to a
particular mobile phone number. You also receive a PIN number which you
communicate to the beneficiary, who then goes to an ATM, inputs the PIN & receives
the money.
•The beneficiary could also go to a designated post office/agent & receive the funds
COST PER TRANSACTION:
•2%
•3%
•4%
DIFFERENCES BY CENTRE
MUMBAI
•Savvy about both mobile & banking developments
•Aware of various facilities such as ATMs & Internet
•Migrated to the city for better prospects
•Frequently sends money to family/relatives in
hometown
•Looking for convenient solutions to various banking
transactions
LUCKNOW
•Sense of being in transition  moving towards better
banking systems & urbanization
•High appeal of technology & systems linked with
banking & mobiles  cues modernity
•Displeased with current branch banking systems
•Need to find solutions to the bank’s inefficiency
KURNOOL
•Low awareness & exposure to mobile & banking
developments
•Poor infrastructure – fewer ATMs, Bank branches not
in close proximity, low technology & systems
•Creates sense of concern on how new systems will
function given that low exposure to technology &
automation in processes
BANKING
HAS EVOLVED
BANKING IS
STILL EVOLVING
APPEAL OF CONCEPTS:
HIGH APPEAL FOR ALL IDEAS
•MOBILE BANKING
•MOBILE COMMERCE
•REMITTANCES
APPEAL OF CONCEPTS:
HIGH APPEAL
•MOBILE BANKING
•MOBILE COMMERCE
MODERATE APPEAL
•REMITTANCES
BANKING IS STILL
MANUAL & SLOW
APPEAL OF CONCEPTS:
HIGH APPEAL
•MOBILE BANKING
MODERATE APPEAL
•MOBILE COMMERCE
•REMITTANCES
REACTION TO THE CONCEPTS
MOBILE BANKING
MUMBAI
LUCKNOW
KURNOOL
MOBILE COMMERCE
REMITTANCES
High appeal towards all 3 concepts
In synch with perceptions of evolution in banking processes
Equated with consumer centric endeavor by banks
Seen as added convenience for consumers
Freedom from drudgery of slow branch banking
Promises redefinition of lifestyle & transactions
High appeal
Seen as a convenience
Saves time & energy for
consumers
Simplifies & changes their
perceptions to banking
transactions
Given banking systems are yet
evolving, this concept arouses
concerns of risk, efficiency &
transparency
Low relevance & appeal
Low relevance as ATMs far away
Association with credit cards,
& post office perceived
debit cards & flight tickets
inefficient
creates perceptions of being See this service of value only in
expensive
times of emergency
Premium services, hence
The consumer sees himself as
not for me
the beneficiary
VALUE IT BRINGS TO THE CUSTOMER
MOBILE BANKING
•
Makes life simpler
•
Redefines mobile usage
•
Redefines utility
•
Saves time & energy
•
Gives you peace of mind
•
Repositions the user as one
who is savvy & progressive
TRANSFORMS MY
LIFE & LIFESTYLE
MOBILE COMMERCE
•
Added convenience &
flexibility
•
Repositions payment
transactions
•
Safety & security
TRANSFORMS PAYMENTS
REMITTANCES
•
Emergency service
•
Not a recurring need
for most (except
Mumbai consumers)
•
Value addition but not
a core need
TRANSFORMS MONEY
TRANSFER
AREA 2: PRICE-VALUE EVALUATION
WHAT DETRACTS VALUE PERCEPTIONS?
MOBILE BANKING
MOBILE COMMERCE
REMITTANCES
• Concerns linked with security
if mobile phone is lost
• Concerns linked with
upgradation to Cr./Dr. card
• Concerns linked with
safety & security
• Fear of hidden costs & actual
expenses being higher than
those indicated
• Perceived as maintaining
minimum balance &
increase in expenses
• Hence, trust &
credibility of banks
crucial
• Credibility of the banks &
fraudulent behaviour
• Private banks: hidden
costs, higher rates,
selfish motive
• Govt. banks: slow, poor
infrastructure, not
trustworthy
• Need clarity on list of
goods & services covered
• Need assurance of fool
proof system – low faith
in systems
TRANSFORMS MY LIFE
HENCE,
NEED 100% ACCOUNTABILITY
TRANSFORMS PAYMENTS
HENCE,
HELP ME SAVE, NOT SPEND MORE
• Mode of verification &
authentication
• Insecurity if ATMs not
working or Post Office is
shut
TRANSFORMS MONEY
TRANSFER HENCE,
NEED 100% SECURITY
PRICE PERCEPTIONS - SPONTANEOUS
MOBILE BANKING
PRICE PER TRANSACTION
• Balance Enquiry: Rs.5-10
• Fund Transfer: Rs.5-20
• Mobile Top-up: Rs.3-10
• Bill Payment: Rs.3- 10
SUBSCRIPTION
•
Rs.100-250 for unlimited
use
TRANSFORMS MY
LIFE & LIFESTYLE HENCE,
WILLING TO PAY A PREMIUM
MOBILE COMMERCE
PRICE PER TRANSACTION
• Rs.1-5 per transaction
• Upto Rs.100 for ticket
booking
REMITTANCES
COST PER TRANSACTION
• 1-2%
• Not more than that
SUBSCRIPTION FEE
•
Monthly: Rs.10-15
• 6 Months: Rs.20-40
• Annual: Rs. 50-75
TRANSFORMS PAYMENTS
HENCE, WILLING TO SUBSCRIBE
TRANSFORMS MONEY
TRANSFER
BUT AROUSES CONCERNS
COMPARATIVE CONCEPT PRICING
MOBILE BANKING
COST PER TRANSACTION:
•Balance Enquiry: Rs.1
•Mobile top-up: Rs. 5
•Funds Transfer: Rs. 5
•Utility bill payments: Rs. 5 per bill
ANNUAL SUBSCRIPTION
•Unlimited use: Rs.50 per annum
PRICE PER TRANSACTION
• Balance Enquiry: Rs.5-10
• Fund Transfer: Rs.5-20
• Mobile Top-up: Rs.3-10
• Bill Payment: Rs.3- 10
SUBSCRIPTION
•
Rs.100-250 for unlimited
use
MOBILE COMMERCE
COST PER TRANSACTION:
•Per transaction: Rs. 5
SUBSCRIPTION FEE
•Per month: Rs.7
•For 6 months: Rs. 30
•Per annum: Rs. 50
PRICE PER TRANSACTION
• Rs.1-5 per transaction
• Upto Rs.100 for ticket
booking
SUBSCRIPTION FEE
•
Monthly: Rs.10-15
• 6 Months: Rs.20-40
• Annual: Rs. 50-75
REMITTANCES
COST PER TRANSACTION:
•2%
•3%
•4%
COST PER TRANSACTION
• 1-2%
• Not more than that
KEY TAKE OUT
MOBILE BANKING
• Consumers more than
willing to pay Rs.50 for
annual subscriptions
• All consumers willing to pay
at par or higher than price
quoted in the concept for
• Fund transfer &
• Balance enquiry
• Bill Payments
• Mobile Top-up:
• Expect to pay a low
price as money gets
deducted from talk
time in any case
MOBILE COMMERCE
• Currently, focus is on ticket
bookings
• Not a recurring need hence
willing to pay a premium for
convenience
• Expect prices to be lower than
those paid to agents
• Ideal service must include bus
ticket as well
• Price becomes secondary as
low need/involvement with
the service
• All consumers willing to pay
at par or more than quoted
amount for subscriptions
REMITTANCES
• Consumers show least
interest in this concept
• All consumers feel
percentage pricing is
expensive & expect
slabs like the other
concepts
• Need to bolster security
& safety of transfers
AREA 3: CONCLUSION & RECOMMENDATIONS
IN SUM - PRICING & CONCEPTS
MOBILE BANKING
MOBILE COMMERCE
REMITTANCES
MUMBAI
++
++
++
LUCKNOW
++
+
+-
KURNOOL
++
-+
-+
SUBSCRIPTION FEE OF
RS.50/- FOR UNLIMITED
USE
CONSUMERS NOT WILLING
TO PAY MORE THAN 2%
MISCOMPREHENDED AS
NEED TO POSITION THIS
PRIMARILY FOR TICKET BOOKING SERVICE AS A VALUE ADD
TO MOBILE BANKING
ALL CONSUMERS WILLING TO
SERVICE
PAY ANNUAL FEE OF RS.50/- FOR
UNLIMITED USE
APPENDIX – CONSUMER QUOTES
MOBILE BANKING
•
•
•
•
•
•
•
•
•
“no need to stand in queue at banks, this will save us a lot of time”
“we will not have to go to the ATM also as they are far away & mostly under
maintenance”
“mobile has become part of our life & this is very useful for us”
“this is very useful for ladies who are busy with household chores”
“on weekends when banks are shut this will come handy”
“we will have no more emergencies or running around as they have covered all
important services under one package”
“whoever uses this will feel relaxed & feel like his life has developed suddenly”
“this makes life so easy for us, if time is saved you can use your time on other
activities”
“now mobile phones cost 500-800/- so these modern features will be accessible to
us as well”
APPENDIX – CONSUMER QUOTES
MOBILE COMMERCE
•
•
•
•
•
•
•
•
“fantastic idea, no more waiting in line or getting stuck in traffic anymore”
“life will become convenient & this will save us time & energy”
“I will spend less time at the bank & booking counter if this is available on the
mobile”
“no need to carry cash in our hand, there is safety but we might have to maintain
a minimum balance”
“we have heard these cards are not good, the family expenses will rise with this”
“we don’t carry credit or debit cards as yet, how is this useful for us”
“there might be heavy service charges for delivering the tickets to our house”
“what if the bank does not charge the amount correctly”
APPENDIX – CONSUMER QUOTES
REMITTANCES
•
•
•
•
•
“the idea is interesting but there are negatives about it”
“what if we lose the PIN number or suddenly the other party does not need the
money”
“this will be useful in emergencies or during marriages”
“the post office is usually shut and is far away from our house, we don’t go there
anymore”
“if the PIN number gets into the wrong hands then anyone can remove the
money”