Scm in Banking Sector

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SCM IN BANKING SECTOR
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PRESENTATION FLOW
Service Industry – Features  SCM in Service Industry  Banking Industry – Overview  Problem Statement  Objectives for FY2010  Retail Banking (Liquidity and Credit Management)  Credit Card Delivery Mechanism  Corporate Banking  HNI Banking 

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UNIQUE FEATURES OF SERVICE INDUSTRY
 The

customer – a participant in the service process  Simultaneous production and consumption 

Perishability

 Limited

Scale Economies  Labor Intensiveness  Intangibility

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SCM IN SERVICE INDUSTRY
Supplier Relationship Management
Source Negotiate Buy Design Collaboration

Integrated Supply Chain Management
Strategic Planning Demand Planning Supply Planning

Customer Relationship Management
Market Price Sell

Fulfillment
Field Service

Call Center Order Management
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Supply Collaboration

BANKING INDUSTRY

• CASA Deposits • Wholesale Deposits

Intermediary Banks

• Cash Management • Credit Management

•Retail Credit (Secured and Unsecured) •Wholesale Credit •Non-interest income Customers - Gross Credit

Investors Aggregate Deposits

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OVERVIEW OF THE BANKING SECTOR IN INDIA
Deposits
5.60% 3.00%

Gross Credit
5.50% 2.50%

17.10% 50.50% 23.80%

17.80% 50.50%

23.70%

Nationalized Banks SBI and Associates Other Scheduled Commercial Banks Foreign Banks Regional Rural Banks

Nationalized Bank SBI and Associates Other Scheduled Commercial Banks Foreign Banks Regional Rural Banks

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SCM IN BANKING

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PROBLEM STATEMENT
Vision – To be the No.1 Bank in India in terms of Aggregate Deposits and Gross Credit.  Mission – To provide holistic banking services customized to each individual.  Goal – To become a high performance bank in terms of CASA Deposits and Good Credit Portfolio.  Problem Statement – Design SCM for executing strategy for FY2010 of ICICI Bank. 

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STRATEGY FOR FY2010 ICICI BANK

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CURRENT SCM - M’S MANAGEMENT


Man Management
 

Depositors Customers mySAP for SRM Siebel for CRM

Suppliers (SRM)
Depositors Investors



Method Management
 



Material Management


Liquidity Management (BI Tool)  Credit Management (Finnone) 

Bank (ISCM)
Cash Management Credit Management Channel Management



Machine Management
Servers and Infrastructure  Branches and Outlets

Products (CRM)
Credit Cards
Treasury Loans

Advisory Services

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RETAIL BANKING

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RETAIL BANKING


To increase CASA in comparison to Wholesale Deposit and increase low cost CASA 

 

 

Strategic Location - Location in Tier II (Pune, Kolkatta, Hyderabad) and Tier III Cities (Jaipur, Ghaziabad, Kochi) Specific Targets - Focus on Small Time Traders and Working Class in Small Companies Technology Driven Products - Increase the amount of cashless transactions using Internet and Mobile Banking. Core Banking Solutions – It reduces customer turnaround time and provides anywhere banking. Marketing – Increase canvassing using technology in order to reduce cost of deposit acquisition.

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RETAIL BANKING


To increase Capital Adequacy and reduce unsecured retail credit  





Target Credit - Focus on secured credit and reduce high risk weighted assets. Increase Fee Based Income – Increase fee income from issuing Letter of Credit and Guarantee. Restructure Products – Reduce dependence on retail loans like Home and Car Loans and provide loans for Working Capital. Reduce Cost of Marketing – Approach clients with customized technology driven products. 14

CREDIT CARD SUPPLY CHAIN

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JUST IN TIME SERVICES
Banks are more intimately linking their systems with the enterprise resource planning (ERP) systems of their clients  Just-in-time financing arrangements  As banks become more attuned to what's going on in clients' supply chains, they can make better financing decisions for them  So instead of providing a general working capital loan,...
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