Identifying New initiatives for Maintaining

Competitive Advantage
Internship Report,11th May 2020 –18th May 2020

Intern Name: RAYALA VARA SAI THRINADH YADHAV.

AMCAT ID: 11541055426370.

Campus & Batch Number: Manipal & Batch 14

Reporting Manager Employee ID:92492

Reporting Manager Name:Nerella Lakshmi Narasimhan

SOL ID of the posted Branch:008

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Sr. No. TOPIC Page. No.

1. Introduction

About Project 4

2. Scope of the project 7

3. Methodology used for conducting the analysis 8

4. Data Analysis 9

5. Interpretation 10-13

6. Conclusion 14-16

7 Learning. 14-16

8 Recommendations & Action plan 17

9 References 20

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INTERNSHIP ACTIVITY LOG SHEET FOR THE PERIOD 11/5/2020 TO 18/5/2020

Date Define the activity Whether directly Remarks

related to project

11/05/2020 Project Study INTRODUCTION Basic Information Of

Project

12/05/2020 Importance of the Scope Of The Project Outcome and Impact

project On the Customes

13/05/2020 Reaserch Among the Methodology Used Initiatives of our bank

Different banks Compare to Industry

14/05/2020 Souce the Information Analysis of the Project Source and Analyse the
Steps

15/05/2020 New Age Banking and Interpretation Explanation of Some

Explanation Features that could
keep Compitative
Advantage

16/05/2020 Learning About the Conclusion and OverRight the Present

Concepts Learning Challenges Facing By
the Customers

17/05/2020 & Suggestions for Speed Recommendations and Based upon the
Banking Action Plan Industry and fast
18/05/2020 Services & Personalized
Service.

INTRODUCTION

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Topic: Identifying New Initiatives for Maintaining Competitive Advantage.

To stay competitive, bank investing into technology to digitize nearly every aspect of
businesses. But keep up with constant change coming from all directions?

 New technology in banking is already transforming the financial sector, and the
traditional banking landscape is set to rapidly change in the next five years.
 Safety features, such as advanced cryptography and biometrics, will help protect against
bank scams, and remote applications will make it easier than ever to do your banking
without visiting a branch — but if you do, the experience is likely to be much more
customer-friendly.
 customer journeys are increasingly complex, and customers expect your organization to
provide personalized, seamless experiences.

As customer data continues to flood the enterprise, many leading financial institutions are
leveraging journey analytics to effectively manage, measure and optimize customer journeys,
and dramatically improve customer experience.

 Customer demand for more high-tech services, and for connectivity between popular
financial management apps and their primary bank accounts, may finally force banks to
set aside their security and competitive fears and strike data-sharing deals with fintechs.
 Meanwhile, artificial intelligence and automation's impacts will continue to be felt at
many Banks and Financial Institutions, though regulators will have a say in the pace of
adoption.

Changing business models,Compliance pressures, and disruptive technologies.

 forcing traditional institutions to rethink the way they do business.

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  As data breaches become prevalent and privacy concerns intensify, regulatory and
compliance requirements become more restrictive as a result.
 And, if all of that wasn’t enough, customer demands are evolving as consumers seek
round-the-clock personalized service.

We as a Bank rate and believe most will be up for the challenge and should be
able to implement an effective technology strategy to remain relevant.

 A complete background analysis of Retail Banking Market, which includes an assessment

of the parental market, emerging trends by segments and regional markets, Significant
changes in market dynamics and market overview is covered in the report.
 Understand the market and its segments. Look for those niches that aren’t well serviced
by competitors and can be profitably targeted and sold to.

Develop an understanding of what customers really want and establish a value

proposition that grabs their attention.

 Work out the key things that you need to do really well to support and deliver the value
proposition. For example, service levels, quality, branding, pricing, etc..
 Understand what your strengths and core competencies are and how you can use these
in innovative ways to provide value to your chosen market.
 Design our business model to support and deliver the value proposition.

The customer profile is changing, too. There are some painful lessons ahead, for sure, in how
the youngest customers — Generation Z — differ even from the still sometimes

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The Below are the Model Example of the Customer Service Channels and Development of Indian
Banking Industry As Follows

SCOPE OF PROJECT

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Objective:Key Points

 Keeping Landmark in the Banking Sector while Starting A New innovative Methods in

giving Service to the Customers.

 The banking and financial services industry is turning its focus toward innovation to

prepare for a future that will be increasingly driven by technology.

 Key trends driving these innovations include ongoing digital transformation,

collaboration with FinTech, and the increasing role of artificial intelligence and robotics.

 Bank should re-define overselves as agile technology companies as customer

preferences, demographics and lifestyles change.

 Challenging to design policies and knowledgeable governance of more complex

development, monitoring and use.

 Enhanced spending on infrastructure, speedy implementation of projects and

continuation of reforms are expected to provide further impetus to growth.

METHODOLOGY USED FOR CONDUCTING ANALYSIS

The start of a new decade is a good time to forecast what’s ahead for retail and commercial
banking in Next Coming Years.

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  Meteorologists make a distinction between long-term trends in climate and the short-
term fluctuations that they call weather.
 In a similar way, bankers need to manage day-to-day developments while adapting their
strategy in response to longer-term shifts.
 Measures of fit or discrimination may have different interpretations than in traditional
techniques and Greater emphasis on out-of-sample performance and stability metrics.

Innovating for Tomorrow

 To be able to compete and grow where margins are thin, competition is fierce,
regulations are changing and technology has an increasing impact, financial institutions
must place innovation as a top priority.
 Organizational cultures must be shifted to support innovations that will impact
increasingly outdated business models.

DATA ANALYSIS

Identification of technology development trends is essential for supporting decision makers in

forecasting and identifying related innovation activities and industrial growth.

 Different from the traditional technology development trends based on keyword-based

quantitative methods, which usually predict trends by finding key technologies without

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 showing how to develop them, our method allows the identification of future direction
and industry goal for the technology domain and shows detailed paths for achieving
them.
 This analysis of the top retail banking trends for 2020 aims to help readers understand
the fast-changing dynamics of the banking ecosystem.

Market Size

The Indian banking system consists of 18 public sector banks, 22 private sector banks, 46
foreign banks, 53 regional rural banks, 1,542 urban cooperative banks and 94,384 rural
cooperative banks as of September 2019. During FY07–19, deposits grew at a CAGR of 11.11
per cent and reached US$ 1.86 trillion by FY19. Deposits as of Feb 2020, stood at Rs 132.35 lakh
crore (US$ 1,893.77 billion).

INTERPRETATION

The global banking sector is becoming both more strategically focused and technologically
advanced to respond to consumer expectations while trying to defend market share against an
increasing array of competitors.

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  A great deal of emphasis is being placed on digitizing core business processes and
reassessing organizational structures and internal talent to be better prepared for the
future of banking.
 This transformation illustrates the increasing desire to become a ‘digital bank’.
 The Indian economy is perhaps on the brink of a slowdown. At the same time, the RBI
and its authorities are under scrutiny for the perceived lack of banking control. Result -
the Indian banker is losing sleep over both slow growth and heightened risk.

The nature of work, and the 'Service,' will change

Automating work anywhere they can, especially routine work like cutting and pasting data from
one app to another. Use of AI and robotics will only grow provided banking regulators become
more open-minded about them.

Banks build trust around fees

Unexpected account charges are one reason why some two billion adults remain unbanked.
This year, banks may offer consumers relief from fees and help them make better money
decisions.

Digital currencies emerge.

We Could see digital currencies move from speculative to proven, supporting uptake by central
banks to clear and settle payments instantaneously.

For Instance the China Introduced Digital Currency in this year.

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Getting more specific about challengers.

The variety of banking players is clouding business model nomenclature and, thus, incumbents’
responses.May see the label "challenger bank" replaced with terms that are model-specific
Requirements and Related Queries and Requests of the Customers.

Smart workflows

With the help of embedded AI aiding the backend operations of banks, will be able to quickly
identify bottlenecks in their operation workflows and bring in significant improvements in
process efficiencies.

Automated personalisation
Bank will leverage the power of fintech to personalise the offerings that users see on all their
devices. Banks will change the appearance of apps based on actual usage.

This will make users feel more connected with banks and it will also set the stage for efficient
self-service. There will also be advancements in providing pre-filled data to users based on their
previous interaction history, preferences and banking habits.

Rising Expectations
Today’s Customer is smarter, savvier, and more informed than ever before and expects a high
degree of personalization and convenience out of their banking experience.

Changing customer demographics play a major role in these heightened expectations: With
each new generation of banking customer comes a more innate understanding of technology
and, as a result, an increased expectation of digitized experiences.

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Customer Retention

 Financial services customers expect personalized and meaningful experiences through

simple and intuitive interfaces on any device, anywhere, and at any time.
 Although customer experience can be hard to quantify, customer turnover is tangible
and customer loyalty is quickly becoming an endangered concept.
 Customer loyalty is a product of rich client relationships that begin with knowing the
customer and their expectations, as well as implementing an ongoing client-centric
approach.

Create a financial supermarket

 Taking a page from some of the larger digital businesses, bank can offer a curated and
vetted mix of internal and third-party offerings.
 This aggregation model provides customers with easy, one-stop access to financial
products and the ability to address multiple financial needs through a single, integrated
channel.
 Building a financial supermarket allows a bank to focus on the high-return side of the
industry:

Expansion of Open Banking

More and more regulatory bodies globally are requiring banking organizations to enable
customers to share their data securely with third parties to power new financial services and
increase competition in the banking industry.

By making account and payment data available through secure application programming
interfaces (APIs), consumers have greater freedom and control in how they interact with their
financial service providers.

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Payments Everywhere
The payments industry has been, and will continue to be, one of the most dynamic areas of
innovation in the banking industry.

Impacted by changing consumer expectations and driven by technological advances, innovation

will continue to come from traditional financial institutions, fintech firms and big tech players.

Electronic Payment Services – E Cheques

Now-a-days we are hearing about e-governance, e-mail, e-commerce, e-tail etc. In the same
manner, a new technology is being developed in US for introduction of e-cheque, which will
eventually replace the conventional paper cheque.

India, as harbinger to the introduction of e-cheque, the Negotiable Instruments Act has already
been amended to include, Truncated cheque and E-cheque instruments.

CONCLUSION & LEARNING

The importance of innovation and developing new solutions that take advantage of data,
advanced analytics, digital technologies and new delivery platforms has never been more
important.

We are seeing organizations innovate in targeting, expanding services, re-configuring delivery

channels, delivering proactive advice, integrating payments and applying blockchain
technology.

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Advice bar rises from products to promises

AI assistants more frequent in banking, a new class of digital advice may emerge for hyper-
relevant help that gives customers more rewarding financial outcomes.

Can Bank change privacy risk challenges into gains?-Yes challenges ahead for the financial
services privacy function—but opportunities for business gains.

By focusing on financial consumers’ dual need for privacy and for personalized services, the
privacy function can help personalize financial offers.

A greater value proposition

Business happens faster than ever, complicating the risk scenario for privacy, data and security.
But there's an advantage for financial providers ready to leverage privacy data into hyper
personalized services.

Next-gen chatbots - Adopting chatbots for supporting customer interactions.

Currently, these chatbots are said to possess the intelligence of a 2-3-year old.

However, as machines do not suffer from physical or learning fatigue, the evolution of a chatbot
could be best described as more exponential than linear.

So, in Coming Days , we could expect more chatbots to be deployed with improved quality of
interactions, speed of responses, and accuracy in decision-making.

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Value across the customer journey

For most consumers, working with a bank is just a means to an end: ensuring a secure
retirement, growing a business, or buying a home,for example.

Most banks, however, tend to focus only on discrete, bank-centered moments in the
customer’s overall journey, such as offering a mortgage, when the customer’s larger goal is
buying the house.

By attending only to the bank-related part of the overall journey, banks leave considerable
value on the table.

Bank can grow by engaging with consumers at other stages of their decision journey.

For example, a bank might give advice to customers on how much to save for retirement or
borrow for a home, or help them to determine the best rates and maturities for financial
instruments.

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 RECOMMENDATIONS AND ACTION PLAN

Innovation and serving a segment of one is not limited to individual consumers. Banks and
credit unions should also focus their efforts on the small and medium enterprise (SME) segment
and the needs of individual businesses.

Benefit: A Bank must be clear what benefit(s) their product or service provides. It must offer
real value and generate interest.

Target Market: A Bank must establish who is purchasing from the Financial Institution how it
can cater to their target market.

Competitors: It is important for a Bank to understand other competitors in the competitive

landscape.

Intelligent tools give RMs extra powers.

What stays key: Smart, inventive employees augmented by the right technology. In 2020,
commercial banking relationship managers, particularly, will use AI to enhance their ability to
add value.

To tap into the value of data, companies are increasingly turning to machine learning and
artificial intelligence (AI).

As hardware, processing power and storage capacities have rocketed into the stratosphere, so
has companies’ ability to solve complex, real-world business problems through the application
of machine learning/AI techniques and algorithms.

“Emerging Trends in the Validation of Machine Learning and Artificial Intelligence Models.”
New approaches and techniques offer much richer applications and use cases for machine
learning and AI, including:

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  Risk modeling.
 Portfolio management.
 Algorithmic trading.
 Fraud and misconduct detection.
 Loan/insurance underwriting

Online deposits

Technology has facilitated the growth of digital deposits, so banks no longer need to rely as
heavily on branches to accumulate deposits. This has leveled the playing field, enabling a host
of digital players to compete for deposits. For years, a handful of digital banks have offered
accounts that attracted consumers through high yields and digital convenience.

Digitalisation Of Insurance Distribution

Banks are not the only ones that have been digitalising their processes. While still preparing its
regulation on insurtech, insurance companies have been entering into partnerships with third
parties to distribute their products through online channels.

This is not surprising, given that the cost of distributing insurance products online is much lower
than doing this through physical branches and offices.

The wealth of data generated through online transactions also helps insurance companies to
assess which products are best suited to their customers, and decide how to price them.

Reskilling the Banking Landscape

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The Axis bank Moving Beyond the Traditional Ways to Reskilling Work space.

India's banking sector has undergone a paradigm shift in the past two decades. The demand for
skills in sectors like banking and finance is evolving in response to the impact of digital
transformation.

Banking industry employs highly skilled people with specialized education qualification for most
of its functions.

However, over the last few years there has been an increasing trend to outsource recruitment
and training needs of private sector banks to specialized skill development companies.

The role of outsourcing has grown from being a mere cog to creation of employment
opportunities for graduates aspiring to join banking sector.

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 REFERENCES

 Axis Bank Website

 Compitative Banks Comprision.
 Internship Experience
 Impressions about the Challenges and Personilized Services
 Thefinancialbrand.com
 Financialservices.gov.in
 Corporatefinanceinstitute.com

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