Outlook Money Conclave
Physical branches are here to stay : Paresh Sukthankar
Proliferation of digital channels has changed the face of banks , but all channels , including physical branches , will co-exist
Despite the mushrooming of new-age payment companies , full service banks that offer full a range of solutions to customers will hold a significant advantage over niche players , HDFC Bank deputy managing director Paresh Sukthankar said at Outlook Money ’ s maiden two-day conclave held recently in Mumbai .
Even as he acknowledged that banks had become less visible , Sukthankar affirmed that physical branches were “ still a channel for acquiring new customers , crossselling and for giving advice ’’.
“ When you want advice , you are less likely to deal with someone giving advice over phone or online . At least certain segments want to come into the branch ,” Sukthankar noted , while weighing in on the ‘ bricks versus clicks ’ debate .
Thanks to the proliferation of niche players like payment banks ,
Paresh Sukthankar , Deputy MD , HDFC Bank tech and wallet companies who provide a one-click experience and fintech companies , customers today are spoilt for choice .
New-age payment channels have cornered a huge share of transactions . At HDFC Bank itself , nearly 80 per cent of customer initiated transactions go through online banking or mobile banking . In future , robotic helpers could become mainstream too .
In this backdrop , it is often speculated whether the traditional full-service banks will continue to survive or grow the way they are . “ I , for one , am more than convinced that banks that are able to offer a complete offering and meet their customers ’ needs across the full spectrum actually have a significant advantage over individual niche players provided they can match the product capabilities and , most importantly , the experience that these players can provide ,” Sukthankar said .
A bank customer has several options to make a payment transaction - credit or debit cards , net banking and mobile banking , whether it rides on QR code , UPI or is IMPS based . “ It is important to have virtually full range of solutions that a customer should look for . Millennials may not want to get into a branch , but equally that there is a branch somewhere gives customers a comfort ,” he said , adding that the idea was not to be prescriptive as customers will have different preferences .
“ As long as you are willing to give customers a choice , then I think banks clearly have not just a role to play but are on an extremely strong footing ,” contended Sukthankar . “ What we are going to see perhaps is the proliferation of several other channels . We believe that these channels will co-exist .”
On the flipside , banks which are not able to service their customers through multiple channels and do not have a full range of these products will lose individual slices of customers ’ wallets .
“ If your customer starts using another company ’ s wallet , a third entity for bill payment and a fourth where he takes a personal loan , you are going to lose your customer over a period of time ,” said Sukthankar . “ So , it is important for banks to evolve in terms of their own product suite and capability of servicing customers using technology .” letters @ outlookmoney . com
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Outlook Money April 2018 www . outlookmoney . com