SERVICE BLUEPRINT

PROJECT ON SBI
(BANKING INDUSTRY)

SM Group: 3, Study Group: 10

Nikhil Chandra JN23PGC039
Manik Seth JN23PGC032
Rohan Guwalani
Ujjwal Aggarwal
Shourya Shahi
Shweta Verma

Submitted to: Prof. Deepak Halan

INDEX

S No. Table Of Contents

1. Overview Of The Sector/Industry

2. Major Players In This Industry

3. Current Trends In Relation To That Sector

4. How Technology Has Shaped Up The Business Models In The

Sector

5. Challenges And Opportunity In The Industry

6. Service Concept

7. 7 P’s For The New Service

8. Service Process Blueprint

9. Identify The Important Service Encounters And Possible Fail Points

10. Strategies To Plug Probable Fail Points

OVERVIEW OF THE BANKING INDUSTRY
The banking industry plays a critical role in the global economy, offering financial services
that enable individuals, businesses, and governments to manage their money. It encompasses
a wide range of services, including deposits, loans, investments, wealth management, and
digital banking. With the rise of technology, banks have increasingly adopted online and
mobile platforms to enhance customer experience, making banking more accessible and
convenient. Customer service is a vital aspect of the industry, ensuring that clients are
supported in their financial journeys, from basic transactions to complex investments.
• Retail Banking
Retail banking refers to the direct dealings between the bank and individual consumers. SBI
offers a wide range of services including savings accounts, fixed deposits, personal loans, and
credit cards. The competency of customer service here is critical, as employees must guide
customers through various financial products, ensuring their needs are met while providing a
positive banking experience. Personal interaction, quick problem resolution, and reliable
digital services (like mobile and internet banking) all play a role in creating customer loyalty.
• Corporate and Commercial Banking
Corporate banking involves banking services for businesses, from small enterprises to large
corporations. SBI provides services such as business loans, merchant services, and cash
management. For commercial clients, exceptional customer service translates into
understanding their business needs, offering tailored solutions, and providing efficient, time-
sensitive services that enhance the overall customer experience.
• Investment Banking
Investment banking caters to institutions, corporations, and governments, helping them raise
capital, manage financial risks, and execute mergers and acquisitions. Customer service in
investment banking means providing specialized advice and ensuring the success of financial
deals. Professionalism, trust, and a high level of communication are key to this sector’s
success, as clients rely on the bank’s expertise to manage complex financial transactions and
investments.
• Wealth Management and Private Banking
This sector deals with high-net-worth individuals, offering personalized financial services
like investment management, estate planning, and tax advisory. In this niche, customer
service is all about building trust, confidentiality, and providing customized solutions that
align with the client’s financial goals. Private bankers often act as personal financial advisors,
and the level of service and attention to detail is critical in ensuring client satisfaction and
loyalty.
• Digital Banking and Fintech
Digital banking, including mobile banking apps and online banking services, has
revolutionized the banking industry. Customer service here is about providing seamless, user-
friendly digital experiences and ensuring quick, secure transactions. Efficient technical
support, user experience design, and 24/7 service availability are key to maintaining customer
satisfaction in this sector.
• Risk Management and Compliance
While this sector might not interact with customers directly, it plays a crucial role in ensuring
the safety and security of banking services. Customer service in this area involves
maintaining trust by protecting customers from fraud, ensuring legal compliance, and
managing financial risks. By safeguarding customer data and ensuring a transparent,
compliant environment, this sector contributes to the overall customer experience.
.

Source: https://www.ibef.org/uploads/industry/Infrographics/large/banking-
infographic-may-2024.pdf

MAJOR PLAYERS IN THIS INDUSTRY

The Indian banking industry is a dynamic sector, featuring a blend of large

public-sector banks, private banks, and foreign players all competing for market
share. Here are some major players:

Banks:

State Bank of India (SBI): The largest public-sector bank in India

with a wide network of branches, offering a comprehensive range of
banking services including retail, corporate, and international banking.

HDFC Bank: One of the leading private sector banks known for its
focus on technology-driven services, customer experience, and strong
financial performance.

ICICI Bank: Another major private-sector bank, ICICI offers a wide

range of services from retail and corporate banking to insurance and
wealth management.
 Axis Bank: Known for its diverse product portfolio in retail, corporate,
and international banking, with a focus on customer-centric digital
innovations.

Punjab National Bank (PNB): One of the largest public-sector

banks, PNB offers services across retail, MSME, and corporate
banking with a strong rural presence.

Citi India: A leading foreign bank that caters to high-net-worth

individuals and corporate clients with specialized financial products
and wealth management services.

Kotak Mahindra Bank: An emerging player in the private sector,

Kotak has a strong focus on digital banking, offering a wide range of
personalized financial services.

The Indian banking industry has seen significant

transformation characterized by technological disruption, increasing
competition from fintech, and an emphasis on financial inclusion.

 Digital Banking & Fintech: The rise of digital wallets, payment platforms like UPI,
and mobile banking apps has shifted customer expectations toward faster and more
convenient services. Banks are partnering with fintech companies to offer innovative
products, making it easier for customers to access banking services digitally.
 Customer Experience: Indian banks are increasingly focusing on enhancing the
customer experience through personalized banking services, better online platforms,
and improved customer service. Chatbots, AI-driven financial tools, and real-time
support are becoming industry standards.
 Regulatory Changes: Reforms like the Insolvency and Bankruptcy Code (IBC) and
the introduction of digital KYC (Know Your Customer) have streamlined processes,
making banking more efficient and transparent.
 Sustainability Focus: More banks are focusing on ESG (Environmental, Social, and
Governance) criteria in their operations and investments, supporting green finance
initiatives and sustainable projects.

The banking industry in India continues to evolve, driven by the dual forces of regulatory
reforms and technological advancements. This has led to greater competition among banks
and the emergence of fintech’s, transforming the way banking services are delivered across
the country.
CURRENT TRENDS IN RELATION TO THIS SECTOR
 Sustainability: Indian banks are increasingly adopting sustainable banking practices,
driven by customer demand for eco-friendly solutions. This includes offering green
loans for renewable energy projects, reducing carbon footprints through paperless
banking, and promoting digital transactions to minimize waste. Banks are also
incorporating environmental, social, and governance (ESG) factors into their
investment decisions, supporting green finance initiatives.
 Local and Inclusive Banking: With a strong push for financial inclusion, many
banks are focusing on expanding services to rural and underserved areas. By offering
microfinance, small loans, and easy access to savings accounts, they support local
communities and ensure that rural and lower-income populations are included in the
formal banking system. Government initiatives like Pradhan Mantri Jan Dhan Yojana
(PMJDY) have played a crucial role in this trend.
 Digital Banking and Fintech Integration: The banking sector is rapidly moving
toward digitization, with the rise of fintech companies and mobile banking platforms.
Technologies such as UPI (Unified Payments Interface), digital wallets, and net
banking have transformed how consumers interact with banks. There’s an increasing
focus on seamless digital experiences, enabling customers to perform banking
transactions with ease through apps and online services.
 Contactless Banking & Payments: Post-pandemic, contactless payment methods
like tap-and-pay cards, UPI QR codes, and mobile wallets have gained significant
traction. Banks are offering contactless services such as digital onboarding, e-KYC
(Know Your Customer), and remote financial advisory services, reducing the need for
physical visits to branches.
 Artificial Intelligence & Automation: AI-powered chatbots and virtual assistants are
being widely adopted to enhance customer service and automate routine tasks like
answering inquiries, processing transactions, and offering financial advice. This not
only improves efficiency but also ensures 24/7 service availability. AI is also used for
fraud detection, risk management, and credit scoring.
 Blockchain and Cryptocurrency: While India is still grappling with regulations
around cryptocurrencies, many banks are exploring blockchain technology for secure
transactions, improving transparency, and speeding up processes like cross-border
payments. Blockchain’s potential in the banking industry is driving innovation,
particularly in areas of security and fraud prevention.
 Data-Driven Personalization: Banks are using big data analytics to offer
personalized financial products and services to customers. By analyzing customer
behaviour and preferences, banks can provide tailored offers, customized loan
 products, and personalized investment advice. This enhances customer loyalty and
satisfaction by meeting individual financial needs more effectively.
 Cybersecurity Focus: With the growing reliance on digital banking, cybersecurity
has become a top priority. Banks are investing in advanced security measures, such as
multi-factor authentication, encryption, and biometrics, to protect customer data and
prevent cyber threats. Strengthening cybersecurity is critical to maintaining trust in
digital platforms.
 Open Banking: Open banking, where banks allow third-party developers to access
their financial data via APIs, is a growing trend. This enables customers to use new
financial services and apps while fostering innovation within the sector. By sharing
data securely, banks can offer better customer experiences and facilitate a wider range
of services.
 Sustainable Investments and Green Bonds: Like other sectors, the banking industry
is increasingly focusing on sustainable finance. Banks are issuing green bonds and
promoting investments in eco-friendly projects. These initiatives align with the global
focus on environmental sustainability, addressing customer demands for ethical and
responsible investment options.

HOW TECHNOLOGY HAS SHAPED UP THE BUSINESS

MODELS IN THE SECTOR
Technology has significantly transformed the business models in the banking sector, making
operations more efficient, customer-centric, and secure. Here’s how technology has reshaped
the landscape:

1. Digital-First Banking: Many banks have shifted to a digital-first approach, offering

mobile and internet banking platforms that allow customers to perform transactions, check
balances, apply for loans, and access services remotely. This has reduced reliance on physical
branches and has made banking more accessible, especially for younger, tech-savvy
customers.

2. Fintech Collaboration: Collaboration with fintech companies has introduced innovative

financial products and services. From digital wallets and online payment platforms to lending
and investment apps, fintech integration has enhanced customer experience by offering faster,
more efficient services. It has also increased competition, prompting traditional banks to
innovate rapidly.

3. Artificial Intelligence and Automation: AI and automation have streamlined many

back-end processes, reduced costs and improving efficiency. Chatbots and virtual assistants
now handle routine customer queries, freeing up bank employees for more complex tasks. AI
also helps banks in risk management, fraud detection, and offering personalized financial
products.

4. Open Banking and APIs: The rise of open banking has allowed banks to share customer
data with third-party developers via APIs (Application Programming Interfaces). This has
led to the creation of new financial services and apps that provide customers with a broader
range of options. It also promotes a more collaborative banking ecosystem, where different
entities can innovate together.

5. Contactless Payments and Cashless Transactions: Technology has driven the shift
toward cashless and contactless payments, especially through platforms like UPI (Unified
Payments Interface), mobile wallets, and tap-and-pay cards. These technologies have
reduced the need for cash handling and physical bank visits, enhancing convenience and
safety, especially in a post-pandemic world.

6. Blockchain and Cryptocurrency: While still in a nascent stage, blockchain technology

is being explored for its potential in secure transactions, especially in cross-border payments.
Some banks are also beginning to experiment with cryptocurrency for secure, transparent,
and decentralized transactions, though regulations are still evolving in this space.

7. Data Analytics and Personalization: Banks are leveraging big data and analytics to
gain insights into customer behaviour, enabling them to offer personalized financial products
and services. This data-driven approach allows banks to craft tailor-made solutions,
improving customer engagement and loyalty while identifying new revenue streams.

8. Cybersecurity Enhancements: As digital banking grows, the need for robust

cybersecurity has intensified. Banks are now investing in advanced security technologies
like multi-factor authentication, encryption, and biometrics (fingerprint and facial
recognition) to protect customer data and secure transactions.

9. Neobanks and Virtual Banking: The emergence of neobanks—digital-only banks with

no physical branches—has redefined the traditional banking model. These banks focus solely
on online services, offering streamlined banking experiences with lower overhead costs.
Neobanks cater to a tech-savvy audience that prefers full-service banking from mobile
devices.

10. Cloud Computing: Banks are increasingly adopting cloud technology for data storage
and processing, enabling them to scale operations, enhance efficiency, and offer innovative
services like real-time data analysis. Cloud platforms also support faster service delivery and
facilitate more agile business models.

11. Remote and Contactless Services: Technology has facilitated remote banking,
allowing customers to access services from anywhere. From remote account opening using e-
KYC (electronic Know Your Customer) to remote customer support, banks are minimizing
the need for physical branch visits.
CHALLENGES AND OPPORTUNITY IN THE INDUSTRY
Challenges:

 Intense Competition: With numerous public, private, and international banks,

maintaining market share is increasingly difficult. Fintech’s and neo-banks are also
posing threats to traditional banks by offering tech-driven and customer-centric
solutions.
 Regulatory Compliance: Banks must adhere to strict regulatory frameworks,
including anti-money laundering (AML) regulations, know-your-customer (KYC)
rules, and capital requirements imposed by governing bodies. Non-compliance leads
to fines and reputational damage.
 Technological Disruption: The rapid pace of technological innovation requires
constant upgrading of digital infrastructures to compete with fintech innovations and
maintain customer satisfaction. Failure to adapt can lead to obsolescence.
 Cybersecurity Threats: The growing volume of online transactions increases
vulnerability to cyberattacks. Banks face the constant challenge of protecting sensitive
financial data from breaches and ensuring consumer trust.
 Changing Consumer Preferences: The shift towards digital banking has made
consumers expect real-time, personalized, and convenient banking experiences.
Traditional banks struggle to keep up with these demands without a fully digitalized
model.
 Low-Interest Rates: In many regions, prolonged low-interest rates reduce profit
margins on loans and deposits, which is a significant source of income for banks. This
impacts the overall profitability of banks.

Opportunities:

 Digital Transformation: With the rise of digital banking, there is a huge opportunity
to develop advanced online and mobile banking platforms, chatbots for customer
support, and AI-based financial planning tools to enhance customer experience.
 Financial Inclusion: Expanding banking services to underserved populations in rural
areas and Tier 2 and 3 cities offers banks opportunities to tap into new customer
segments, particularly through microfinance and digital banking solutions.
 Sustainable Banking: There is an increasing demand for environmentally
responsible banking solutions. Banks that prioritize sustainability and offer green
financing, ESG-focused investments, and carbon-neutral products can build stronger
relationships with eco-conscious customers.
  Partnerships with Fintech’s: Collaborating with fintech companies to offer
innovative products and services can help banks remain competitive while benefiting
from fintech’s’ agility and expertise in customer-centric solutions.
 Wealth Management Services: As disposable incomes increase, particularly among
millennials and Gen Z, banks have opportunities to offer personalized investment
advice, retirement planning, and other wealth management services.
 Blockchain and Cryptocurrencies: Leveraging blockchain technology can help
banks improve transparency, security, and speed in transactions. Additionally,
offering crypto services or creating digital assets can attract tech-savvy customers.

SERVICE CONCEPT OF “GREEN BANK”

"GreenBank" is a fully digital and sustainable banking platform that focuses on offering eco-
friendly banking solutions. The mission is: "To empower individuals and businesses to
manage their finances while contributing to a greener future. Through innovative digital tools
and sustainable financial products, we aim to build a better, more sustainable world."
GreenBank will focus on:

 Providing carbon-neutral banking services

 Offering eco-friendly investment options, such as green bonds and ESG-focused
portfolios
 Promoting paperless banking with fully digital onboarding, transactions, and customer
support
 Partnering with green energy companies and other sustainability-focused businesses
for special financial offers
The Seven Ps of Customer Service for “Greenbank”
Product:

 Eco-friendly banking products like savings accounts, loans, credit cards, and
investment portfolios aimed at sustainability
 Focus on digital services to reduce paper usage
 Carbon footprint calculators and eco-conscious financial management tools

Price:

 Competitive pricing with a focus on discounts for eco-friendly transactions

 Lower interest rates on loans for sustainable projects
 No fees for digital transactions and green investments

Place:

 Entirely digital banking service accessible via mobile app and website
 Minimal physical infrastructure to reduce environmental impact, ensuring all
transactions and services are online

Promotion:

 Use digital marketing strategies to promote sustainability efforts and green financial
products
 Collaborate with influencers and NGOs focused on environmental issues
 Offer referral programs with tree-planting or carbon-offset rewards for new sign-ups

People:

 Environmentally aware customer service and support teams

 GreenBank ambassadors to promote eco-friendly financial products
 Collaborate with sustainability experts to offer guidance and advice to customers

Process:

 Streamlined, paperless, and fully digital onboarding process

 Quick online loan approvals for green projects and investments
 Automated investment tools to offer personalized eco-investment advice

Physical Evidence:

 Mobile app and website designed with green aesthetics to reinforce sustainability
themes
 Digital certificates or statements showing carbon offset initiatives for each transaction
 Customer testimonials and case studies on how GreenBank services have promoted
sustainability.
Visual representation of Service process Blueprint of Eco-Delish
KEY SERVICE ENCOUNTERS
Greeting and Assisting Customers: Bank staff welcome customers into the branch
and guide them to the appropriate service counters, whether it's for general inquiries,
account opening, or loan processing.

Account and Loan Personalization: Customers personalize their banking services

based on their needs, such as selecting account types, loans, or choosing investment
products that align with their financial goals.

Online Banking and App Services: Customers engage with online and mobile
banking services for activities like money transfers, bill payments, or applying for
new products.

Processing Transactions and Services: Bank staff process financial transactions,

approve loans, and handle various other customer requests in a timely manner.

Requesting Feedback: After receiving service, customers are asked for feedback
through digital channels or in-branch forms regarding their experience with SBI’s
services.

POSSIBLE FAIL POINTS

1. Greeting and Assisting Customers: If customers are not welcomed promptly or
aren’t directed to the correct service counter, it could lead to confusion and
dissatisfaction.
2. Account and Loan Personalization: Miscommunication during account setup or
loan processing could result in customers receiving the wrong product or loan terms,
harming their experience.
3. Online Banking and App Services: Technical glitches, slow transaction times, or
complex navigation in the app or online banking system can frustrate users and reduce
trust in SBI’s digital services.
4. Processing Transactions: Delays in processing transactions or approval of loans
could result in customer frustration and dissatisfaction, especially in urgent situations.
5. Requesting Feedback: Not asking for feedback consistently or making the process
difficult could prevent the bank from identifying areas for improvement in the
customer experience.
STRATEGIES TO PLUG PROBABLE FAIL POINTS
Greeting and Assisting Customers:

 Train staff to greet and assist customers efficiently, ensuring they are promptly
directed to the correct service counter or department.
 Implement a dedicated customer service desk to manage traffic during peak
hours and offer guidance.
Account and Loan Personalization:

 Ensure staff is trained to clearly explain product options and loan terms to
avoid miscommunication.
 Develop online tools that allow customers to explore and compare products
before making decisions.
Online Banking and App Services:

 Regularly update the mobile app and website to ensure a seamless and glitch-
free experience.
 Implement user-friendly interfaces with clear instructions for completing
transactions and resolving common issues quickly through FAQs or chatbots.
Processing Transactions:

 Use advanced transaction management systems to speed up the approval

process and ensure real-time updates on transaction status.
 Set clear service-level agreements (SLAs) for processing time and provide
customers with estimated wait times.
Requesting Feedback:

 Send automatic emails, SMS, or in-app notifications to customers after each

service encounter to request feedback.
 Ensure that in-branch feedback systems are easy to use, such as tablets or
feedback kiosks for quick reviews.

Overall Strategic Enhancements:

 Technology Enablement: Invest in digital platforms and mobile apps that offer
seamless banking experiences, allowing customers to manage their accounts, loans,
and investments effortlessly. Introduce self-service kiosks for quick in-branch
transactions.
 Ongoing Staff Training: Provide regular customer service and product training
to ensure employees are well-versed in the latest banking services and technology.
This will improve their ability to handle customer queries and ensure smooth service
encounters.