Introduction

Axis Bank is the third largest private sector bank in India

Why did we choose Axis Bank?

It is one of the new generation banks (started in 1994). We were not customers of Axis and so we
wanted to understand the service operations and organizational culture of the bank.

Slide 2

The banking sector has highly intangible elements. The intangible elements involved in the
service process dominate the value creation in the organization.

Slide 3

The banking service is an information processing service wherein the nature of the service
includes intangible actions which is directed to the recipient as an intangible asset.

Slide 4

The success factor in the banking industry depends on the customer and the service provider with
respect to the relationship with the customer and the service personnel and the relationship with
the customer and the machine/technological aspects involved in the service process.

Slide 5 – Operations in Axis Bank

The demand in this sector can be understood with respect to the perceived needs of the consumer
and the location of the bank.

The perceived needs includes the products and services that the bank offers to its customers

Corporate Banking

Customer Needs:

Credit Facilities, Short term loans, project finance, export credit, factoring, channel
financing, structured products, discounting of bills, documentary credits, guarantees, foreign
exchange, derivative products

Liability Services: - Current Accounts

Retail Banking

Customer Needs:
 Savings Account, Life and General Insurance, Fixed Deposit, Gold Loans, Mutual Funds,
Debit, Credit, Prepaid Cards, ATMs, Mobile Remittance & Net Banking, Home, Vehicle
and Personal Loans

Location:

- PAN India - 3,589 domestic branches (including extension counters) and 13,977 ATMs
across the country, 1,946 cities and towns

- 9 overseas offices with branches at Singapore, Hong Kong, Dubai (at the DIFC),
Shanghai and Colombo; representative offices at Dubai, Abu Dhabi and Dhaka and an
overseas subsidiary at London, UK.

Slide 6

The service process

It is a Job shop process flow wherein most of the products offered require a unique set-up and
sequencing of process steps with an objective to provide customer satisfaction and addressing to
the clients’ needs.

It is a High Contact Service process because it is a service industry and the customers avail the
service by visiting the service facility and they are co-producers. There is active contact between
the service provider and the recipient.

Services Offered:

Core Services Supplementary

Accounts Booking Hotels Recharge & Paying Online Banking
Deposits Flight Tickets Bills Branch Banking
Cards Electronics Investments and Mobile Banking
Forex Furniture Donation Remote Banking
Investments Groceries Payment of Taxes Phone Banking
Insurance Medicines
Rural Banking Gifts

Slide 7

Supporting Elements: ATMs, Website and gateways, Mobile App, Availability of paying
slips

Facilitating Elements: Offers on third-party platforms such as online shopping with flipkart,
bookmyshow, big basket, etc.
 Implicit: Privacy of customer profile, safe, secure and convenient banking, welcoming nature
of the personnel

Explicit: Attitude of the personnel, on-time problem solving

Service Operation Manager:

Axis Bank deals with Retail Banking, Corporate Banking, Rural Banking and also Burgundy
banking which is a premium banking experience which enables in the wealth management of the
account holders.

The operation basically takes place in these 4 aspects.

Slide 8

Service Personnel include Branch Manager, Credit Manager, Relationship Manager, Operations
Manager, Personal Banker, Customer Service Officer, etc.

The organization manages its people by

- Nurturing and Empowerment of Employees

- The Bank has entered into a partnership with the world’s largest online learning platform
Coursera for customised online certification programmes for employees.
- Axis Champions: the Bank’s premier awards platform, which is an initiative to drive
alignment of culture across the organisation and recognize champions for their role model
behaviours.
- Axis Blitz: Is a platform to reinforce these behaviours through storytelling and experience
sharing with Senior Leaders of the Bank.
- ‘With You’ - an initiative to provide confidential counselling services to employees and
their families for anything, at any time.
- ACElerate (Axis Capability Enhancement Programme)

Evaluation

The service can be evaluated on the improvement in KPIs which includes:

- Total Deposits
- Saving Bank Deposit
- Net Interest Income
- Total Advances
- Operating Revenue
- Operating Profit
- net profit
- EPS
 - Awards and Recognition

Slide 9

Strategic Vision

Target Market:

Corporate Banking

Target Segment: Large and Mid-Corporate customers, Small and Medium Enterprise Businesses
(SME)

Retail Banking

Target Segment: Individuals with high net worth, senior citizens, working mothers, armed forces
personnel, students and salaried employees.

Service Concept:

The objective of the bank is to provide financial services with the core focus on:

- Customer centricity
- Ethics
- Transparency
- Team work
- Ownership

Operating strategy:

Technology, HR, operations, marketing

Service Delivery:

Slide 10

Competitive environment of services:

 - High entry barriers
- Highly capital intensive
- Service innovations are not patentable
- High Economies of Scale

Basic Focus Strategies of Axis Bank

Service Focused: there are many markets served a narrow service offering provided.

Slide 11

Strategic Marketplace Considerations

Slide 12

Service Life Cycle: Distinctive Competency Achieved