Yes Bank, has adopted an innovative way to crowdsource ideas from the millennium generation, by way of creating a competition for the B-School students, see the details here. This also provides Yes Bank the opportunity to interact with the best of breed talents.
The case study (PDF file), makes an interesting reading. Why interesting? because, beyond half a paragraph on unbanked and frugal innovation, the 14 pager report, it mainly focuses on top of the pyramid customers, and too focused on what Western banks have done.
The Top of the Pyramid segment, or the Sec-A as we call them, already have multiple accounts with the best banks. The case study, reflects the persona of the Yes Bank itself. Thus, is it trying to compete with the best of the Big private Banks, like ICICI, HDFC ? or international banks like CITI?
In the new regulatory landscape, see my slideshare, the mid sized banks like Yes Banks, should avoid competing with Wallets providers, Payment Banks and Small Finance Banks. As, they carry less regulatory baggage and thus more agile.
Also, it should not, and it can not compete with banks tagged by RBI as "Too Big to Fail". As these Big Banks are perceived to be more stable. While I have relationships, with multiple banks, the monies I bank with them is proportional to their size. I checked with my friends and acquaintances, and I see a similar pattern.
In my opinion mid sized banks should have dual brand strategy, under an umbrella brand:
The two new brands should focus on Digital Disruption technology enablers, and both these brands avoid the bank branches.
The unbanked can have door step banking, via TABLET enabled BC (Banking Correspondents) also, now called Bank Mitra.
For the Next Gen "cool factor" banking, it can something like Moven Bank, hear Brett King, CEO & Founder of Moven, the Mobile App only bank, talks about "Friction-less Banking" .
The case study (PDF file), makes an interesting reading. Why interesting? because, beyond half a paragraph on unbanked and frugal innovation, the 14 pager report, it mainly focuses on top of the pyramid customers, and too focused on what Western banks have done.
The Top of the Pyramid segment, or the Sec-A as we call them, already have multiple accounts with the best banks. The case study, reflects the persona of the Yes Bank itself. Thus, is it trying to compete with the best of the Big private Banks, like ICICI, HDFC ? or international banks like CITI?
In the new regulatory landscape, see my slideshare, the mid sized banks like Yes Banks, should avoid competing with Wallets providers, Payment Banks and Small Finance Banks. As, they carry less regulatory baggage and thus more agile.
Also, it should not, and it can not compete with banks tagged by RBI as "Too Big to Fail". As these Big Banks are perceived to be more stable. While I have relationships, with multiple banks, the monies I bank with them is proportional to their size. I checked with my friends and acquaintances, and I see a similar pattern.
In my opinion mid sized banks should have dual brand strategy, under an umbrella brand:
- One Brand, say YES NEXT GEN: focused on aspirational youth and enthuse a "Cool" factor.
- Second Brand, YES BASICS, which focuses on urban poor and unbanked.
The two new brands should focus on Digital Disruption technology enablers, and both these brands avoid the bank branches.
The unbanked can have door step banking, via TABLET enabled BC (Banking Correspondents) also, now called Bank Mitra.
For the Next Gen "cool factor" banking, it can something like Moven Bank, hear Brett King, CEO & Founder of Moven, the Mobile App only bank, talks about "Friction-less Banking" .
