Cases

Market assessment study on Consumer Finance for a Multinational bank in India

Background and Challenge

The client, one of the largest multinational banks in India wanted to assess the consumer finance segment. They requested UC to help them in the following:

  • Assess the market for the following products:

    1) Personal Loans

    2) Home Equity

    3) Sales Finance – for consumer durables and 2 wheelers

  • Competitive benchmarking of the key competitors

Approach and Recommendations

To develop a market assessment study, UC adopted the following approach:

  • Conducted primary research across 12 cities with over 65 respondents to:

    1) Estimate the current market size city wise for each product

    Validated on the basis of secondary research, primary research insights and competitors’ operations

     

    2) Understand customer dynamics and needs (how they vary across cities)

    3) Understand the end use of finance

    4) Assess needs of consumers

    5) Profiled competition:

    Target customer segment

    Products and services offered

    Penetration levels

    Interest rates

    Credit approval process

    Risk management system

    Turnaround process

    Cost structure

    Profitability

    Future expansion plans

    Positioning

     

  • Estimated future market size, product mix and profitability
  • Assessed the attractiveness of the market on an all India basis, product wise and city wise
  • Defined key success factors

Results

The client received an understanding of the market for its products along with a detailed profile of their key competitors.