How the Introduction of Net Banking Incurred Losses to a Private Bank and How They Gained Profit with the Help of Intensive Product Analysis?

This private bank provided services for generations and was earning a large amount of revenue providing good services to their customers. Since the technology enhanced with the introduction of new and innovative products and features, the bank introduced net banking and UPI to the customers. The bank started facing problems with UPI and net banking as the customers started registering complaints against it. The bank authorities went on to seek the services of Research Nester analysts to strategically devise a solution for effective product analysis using their expertise and experience.

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An overview:

1

A private bank dealing in cash, debit card and credit card payments went on to build resources and capacity to initiate net banking. The transition although seemed smooth, hit turbulent waters owing to the incorporation of complex technologies.

2

The company continuously failed to identify the crucial aspects of net banking that needed consistent evaluation. The company’s strategy was focused on delivering as per the supply and demand analysis. It unconsciously neglected the functionality, performance, security, usability, and mutual compatibility of net banking and UPI.

3

With recurring failures in delivering functional and efficient user experience, it found itself at a loss of revenue and customer acquisition.

4

Finally, Research Nester was brought into the domain to facilitate a strategy for effective product analysis.

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The Story

The bank was founded in 2002. At the beginning of 2019, it ventured into introducing digital banking and UPI to provide banking facilities from anywhere. The company produced various payment products such as credit cards, debit cards, and personal cheques. The bank was earning a large amount of revenue. However, with the onslaught of the COVID-19 pandemic, the banking trends changed drastically shifting towards net banking. The company did try to keep pace with the evolving market dynamics but the lack of domain-specific expertise resulted in the failure in identifying vulnerabilities and ineffective product analysis. Moreover, the relationship with the clients changed. To complicate matters further, there were issues to provide a speedy network and other technical issues. This resulted in a poor user experience. All this started to drain the profits, margins, and resources. Research Nester analysts stepped in at this crucial time when the company was incurring losses and was finding it difficult to keep afloat.

Our Solution:

Research Nester analysts suggested a change of strategy that there must be extensive measures to secure customers’ accounts and money. In fact, to boost further growth and profitability, digital banking could also be promoted as an additional service, where customers could pay a subscription that covered both the use of the associated services. Recurring revenue would be more valuable than one-time revenue as it would enhance customer loyalty. However, Research Nester consultants also analyzed that for the above business model to work the products should earn the trust of the users. The following strategies were suggested by RNPL analysts-

  • Trend detection service, which is a microservice with a visual interface that helps clients find trends on the market worthy to invest in.
  • Market map solution, aimed to collect and categorize information about companies in different industries with a visual interface, flexible functionality, and additional features.
  • Use of Machine Learning algorithms and natural language processing techniques in a web crawler tool to search and analyze financial news.
  • Conducting regular online payment security audits.
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Results

The company was seeing dwindling sales right from its very beginning, with sales figures being ~USD 6 billion in 2019. Even the products sold were failing to meet user expectations. With COVID-19 barging in unexpectedly, the company authorities tried to re-strategize their production and marketing but all efforts fell flat. By the end of 2020, the cash registers of the company showed a bleak scenario with sales being a meager ~USD 4 billion. The leadership of the company took the advice and suggestions offered by RNPL consultants to bring the business back on track. After re-planning and re-structuring its product analysis strategies, the sales improved initially little by little to reach ~USD 7 billion in 2021 and gradually progressed significantly to reach ~USD 8 billion in 2022.

Research Nester consultants used their experience and expertise to facilitate the incorporation of the right product analysis methodologies for the company. This way the startup was able to build a prominent market position and create profitable prospects for future growth.

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Swara Keni

Head- Global Business Development

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