Forming a Strategic Direction Plan for Corporate and Retail Banking in India

market assessment

Client Challenge

The client, a leading European bank, was looking to grow its presence in India through focused attention on specific underpenetrated areas of corporate banking like the factoring and leasing market, by growing its customer base for its existing corporate banking offering and also through the possible entry into the retail banking market in India. The client wanted to assess the market potential of all banking products, identify target industries and customer segments as well as explore the scope of partnering with local institutions to accelerate market penetration.

 

Our Approach 

UC Strategy supported the objective along the following work areas in corporate and retail banking:

  • In corporate banking, evaluated entry decision into the factoring and leasing market in India
    • Eventually decided to enter based on the then market size and growth potential over the next 5 years, the capabilities assessment for successful offering of these products, the mode of operation as a bank or non-banking financial company, competition analysis of financials, customer base, geographical presence, strategic direction and strategic fit
    • Evaluated market potential across all corporate banking products, industries and customer segments
    • Analysed customer behavior through primary research across industries and customer segments
      • Banking products typically used
      • Key criteria used when choosing a bank
      • Bank group preferences (Public sector, private sector and foreign banks)
      • Need gaps (if any)
    • Analysed the competitive landscape in India with specific focus on comparable foreign banks and new private sector banks
    • Built a strategic direction plan for growth of corporate banking product portfolio and customer base:
      • Define focused product approach
      • Identify target customer segments and industries
      • Identify capabilities required
      • Define capability development agenda
    • Evaluated a business plan including financial projections and key actions
      • Validation of existing business plan
      • Revise financial projections
      • Identify critical elements to be monitored to realize B-plan targets
    • In retail banking, evaluated the decision to enter into the Indian retail banking market:
      • Estimated market potential across key products
      • Assessed areas of retail banking for entry and the products therein – Mass banking vs Private banking (i.e. Wealth  Management)
      • Built customer insight on products preferences and bank selection criteria
      • Specified capabilities required to competitively offer retail products
      • Analysed the competitive landscape through case studies of failures and success stories of foreign and small private sector banks in India

Our Impact

  • UC Strategy facilitated the client’s decision to enter the leasing and factoring market in India. Provided the market size and growth predictions to facilitate business case presentation to the parent bank for entry into the said markets. Quantified the potential customer base and profiled them for targeted entry into the market
  • In corporate banking, realigned client focus in terms key industries, customer segments and products. Aligned the business plan in accordance with strategic recommendations and created an action plan for achievement of business plan targets
  • In retail banking, facilitated clients decision to enter retail banking in India and provided a directional plan for the entry

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