The public sector Indian Bank is gearing to lure high net worth individuals (HNIs) and new generation users by aggressively focussing on technology banking services through a phalanx of innovative schemes. This also signals the bank's intentions to bring down the age profile of its customers. |
"The core banking solution-installed (CBS) branches are catering to about 98 per cent of the business and we are targeting 100 per cent CBS by March 2008. This will help us transform into a highly customer-oriented and technology-driven bank," said M S Sundara Rajan, chairman and managing director, Indian Bank. |
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The bank has introduced special schemes such as SB Platinum, variable RD, global credit and debit cards, internet banking, demat accounts and current account sweep facilities for HNIs. |
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The bank is planning additional initiatives to attract the HNI customers. These include setting up separate counters for HNI customers in select branches, having floor managers in various branches to take care of HNI customers and money gram or express money remittances facilities, especially for NRIs in the USA and West Asia. A beginning has already been made, Sundara Rajan said. |
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The bank is trying to attract software professionals as part of its plans to bring down the age profile of its customers. |
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"We are focusing on IT companies, especially the midsize segment, to get their employee accounts. Special presentations are being made on the products and services of our bank. Loans for the purchase of laptops, vehicle loans (two-wheeler and four-wheeler), home loans and salaried class loans are being made available at competitive rates. We are receiving a lot of enquiries for home loans as our rates are very competitive. Our insurance products such as Arogya Raksha are also gaining popularity," he said. |
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Moreover, Indian Bank is using education loans as a tool to attract young customers. The bank tracks its young educational loan customers and keeps in touch with them in order to convert them into customers at a later point. |
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"We can attract and retain these young people as loyalty levels will be high," said Rajan. |
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During April-November 2007, the bank assisted 28,817 students with funds worth Rs 306.45 crore. The total number of students who have availed of educational loans as on November 30, 2007 was 87,536 and total loans disbursed were Rs 1,006.34 crore. |
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"The major advantage of attracting these young customers is that they add to the low-cost deposits of the bank," Sundara Rajan said. However, the bank feels that cross-selling of products on the CBS network needs to be addressed. |
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"We are presently collating all data about our customers. In the next few months, we will be in a position to structure our cross-selling based on different customer profiles," he added. |
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