We don’t need Banks but only Banking Services
This was a statement made by one of the KPMG consultants during our conversation and seriously I never knew that a single sentence could flame of an entire philosophy of service-delivery pyramid (maybe I must be copyright this keyword).
Notice carefully, and you find that there are more number of seats for relationship managers (a.k.a colgate smiley MBA grads) rather than those paleontologic meshed/barbed counters.
To understand this transformation let me present an analogy with something i am really good with -
To further understand this transformation(Process) of these retail banks, we must first classify the entire set of services and then look at their delivery models... hence constructing what i shall term for the current moment as "SERVICE-DELIVERY PYRAMID" (c)
As you can notice, first we organize all of the services offered by the bank based upon the frequency of operations (higher frequency means it figures down the pyramid and vice-versa) and see the Value offered by these services. Obviously HNIs (High Networth Individuals) would contribute to a large margin of funds while daily operations such as money transfer for retail customers though would be costly for the bank would be provided for free.
Strategic decision making based upon the SDP :-
Based upon the output you get, now you decide on the Delivery stream-lining you would want to undertake; as as in the case of retail banks they decided to reduce the cost for these high-frequency but no-value services making them being done offline across ATMs and i-bankings.
On a note about this strategic model, we can also label the services being offered by any vertical (banking, telecom, OnG, etc) in any desired logic(a few examples)
1) Frequency of operations
2) Degree of Automation possible
3) Value (Cost/profit) of the services
4) Business Impact of the services.
Hence we can observe how the movement of brick and mortar settings of these banks into click and mortar have enabled their operations into the next innovative phase. As you could now observe by other trends also, how banks such as ICICI and HSBC refer to innovations as process-innovations and not merely product changes.
Of course, talking about secret ingredients and magic formulaes; here is another googly by the business world
If ever you thought it were not possible to provide service without owning any infrastructure, then THINK AGAIN... esp; when it is a player who's a virgin
A mobile virtual network operator (MVNO) is a company that provides mobile phone service but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have all of the infrastructure required to provide mobile telephone service.
This news of even more relevant in the prime-time with TRAIs (Telecom Regulatory Authority of India) nod for MVNO operators in India.
