Storm the Norm

by Anisha Motwani

  To establish its ‘differentiated’ position in the mind of the consumer, Axis could not just replicate what its competitors were doing. It had to challenge convention and do things differently.

  The journey of reinvention begins with understanding the consumer

  Various industry-level researches reflected that 54 per cent of the Indian demographic was under twenty-five years of age. Times were changing. So were consumer choices. It was a time of rapid transformation in lifestyles, preferences, opinions and choices.

  This brought about a sea change in terms of consumer expectations of brands, which had to be in sync with the evolving consumer value system. The once clearly defined dividing line between the metros (big cities) and smaller towns had been blurring. This was evident in the penetration of global brands into these smaller markets across industries and in an overall spike in service delivery to these consumers. The consumers of India had suddenly taken charge, and brands across industries had sat up to take notice. However, one industry, until recently not much affected by this change, and still operating within set parameters, was banking.

  Problem: An undifferentiated brand with no clear proposition

  With consumers becoming increasingly discerning and the market reacting to the volatility of these changes, the Axis Bank team scrutinized the market and came across a peculiar problem.

  While business was growing for the bank, the brand (Axis Bank) did not have spontaneous recall across geographies and neither was it considered relevant by the younger audience. With no clear positioning, it was confused with various other brands.

  There was clearly need for a new brand image that would connect with and make itself relevant to the new and emerging India, including its aspirational youth.

  Identifying opportunity

  As one would imagine, trust was the biggest factor in the banking financial services category and it was firmly held by the biggest Indian bank—State Bank of India (SBI)—owing to sheer size and sovereign lineage. Indian consumers had three clear categories of banks to choose from—public sector banks, Indian private banks and multinational banks. The team had to find a way of leveraging the legacy of the UTI brand, at the same time transforming its image from dated to contemporary and from ordinary to distinctive. A brand with global standards had to be built. Mere plastering over the surface wasn’t going to be enough for reinventing the brand. Through extensive research, a few insights were uncovered. To begin with, the new generation of consumers had its own set of values and beliefs fuelled by boundless opportunities. By the age of thirty-two, these new-age consumers were consuming all financial products at least once, and their past experience would shape future purchases. Hence, it only made sense to shift focus to this younger consumer segment.1 Digging deeper, it became apparent that the new generation was forward looking and aspirational while remaining grounded and aware of its responsibilities. It needed a partner, not a banker. This insight helped shape the new imagery of Axis Bank, and thus began the journey of partnering this new, emerging consumer.

  The way the brand needed to gain mind share, and eventually business, from this set of consumers, was by truly imbibing and embodying their value system; by becoming a brand they could relate to—a young and progressive bank for the new-age Indian.

  This manifested itself in a brand essence defined as ‘Progress without Pause’. It was rooted strongly in the philosophy that the modern Indian believes that life is a series of milestones that every individual wants to cross. Every success is a milestone in the journey called life.

  ‘Progress without Pause’ came to form the DNA of Axis Bank. The positioning reshaped the bank’s strategy and it was activated at every single consumer touch point. And thus began the quest to become a more relevant, preferred, and differentiated contender among the more established private sector players. The challenge now was to transform this brand essence into each and every aspect of the brand that a consumer came in contact with.

  The journey to this transformation in terms of the seven Ps of service marketing is related here.

  Innovative ‘products’ designed to address specific consumer needs

  Banking used to be a commoditized industry, with little innovation and customization in the products offered to customers. And there was nothing to deter competitors from quickly copying what little innovation there was. Consumers made choice of bank based on proximity to their home/office or recommendations by friends and family.

  With new-age consumers customizing everything from ringtones to cars, there was clearly need to create differentiated products that would be relevant to them.

  A more youth-centric tone of communication was not enough; designing unconventional products that appealed to the young, progressive consumer was imperative for drawing in this segment. So while most other banks were taking the route of slashing prices or increasing the rate of interest, Axis Bank identified and created product propositions to address specific consumer needs.

  For instance:

  »The Ladies First Card designed especially for homemakers, with features that helped manage, spend and track household expenses better. This product was based on the insight that homemakers usually got a fixed household budget from their husbands, mostly in cash. They managed the house with this money and stored the balance they saved within the home—in the kitchen or in their cupboards. Managing cash was a hassle, since they had to keep a detailed tab of what was spent where. Keeping the cash safe was another problem. The Ladies First Card addressed all these issues.

  »The Happy Ending Home Loan, where customers had their last twelve equated monthly instalments (EMI) waived off, simply by being punctual in paying their EMIs. The insight here was that while most salaried customers were regular in repaying, there was no benefit in being regular. It changed that convention by rewarding these customers.

  »A range of credit cards aptly titled ‘MY Cards’, which allowed customers to customize their cards according to their spend pattern. So, the ‘MY Wings’ card got travel enthusiasts extra discounts and cashback on all their air, rail and bus spends, while the ‘MY Zone’ card was designed for entertainment lovers, giving them discounts on movie tickets and extra reward points on shopping and dining on weekends. For those who wanted to customize everything on their card, there was the ‘MY Choice’ card. Here, they could choose the categories they mostly spent on, and get a 5 per cent cashback on those.

  »The YOUTH Account: Axis Bank realized the potential of the 222 million-strong youth market and sought to launch a savings account product to tap into this consumer segment. Initially, the product was aimed at migrant college/university students who were living away from home, possibly for the first time in their lives. Living alone made it essential for them to manage their own finances to some degree. They weren’t financially independent because they still received money from their parents, but having their own bank account now became necessary. Axis Bank decided to adopt this as the core around which the YOUTH Account would be created. It decided to empower individual youngsters. The YOUTH Account would allow them to customize their debit cards and mobile apps, and they could even draw money from their parents’ linked bank accounts with just a few clicks. All of this without ever having to step into a bank.

  »Taking the offerings to the digital and social space: To appeal to the younger and contemporary target group, it was imperative for Axis Bank to take a leadership position in the digital and social media space. This came in the form of a dedicated focus by the brand on new and innovative digital products like a mobile banking application with features like bill pay, funds transfer, customized offerings which were state of the art when it came to the industry standards. In 2015, the bank also came up with a first-of-its-kind multi-social payment application called PING PAY. The application allowed users to make or receive payments across multiple social media platforms without knowing any bank account details of the other person. PING PAY challenged the existing ways of money transfer by excl
uding traditional requirements and platforms.

  In addition, the Bank launched its most premium personal banking service, Burgundy, in FY2015. Designed especially for the busy, affluent high-networth (HNI) customer, Burgundy offers end-to-end personalized banking, wealth management solutions and business solutions to meet investment needs of HNI individuals. Burgundy also serves corporate advisory needs of families in business. It brings solutions offered by various business groups (both retail and corporate) within the bank and different group entities on to one integrated platform.

  The brand has since continued to improvise and innovate in this medium not only with its product and service offerings but also by creating a substantial footprint in the social media space. As on 31 March 2015, it had over 3 million likes on Facebook, over 75,000 followers across its handles on Twitter, over 75,000 followers on LinkedIn and over 43 million views on its YouTube channel. It also launched a blog by the name of www.itsallaboutmoney.com. On this blog, it hosted content around everything to do with banking and finance to engage with its audience groups.

  Axis Bank had not only paved the way for innovative products, but also an innovative approach to banking. And the results showed in the new-age consumer taking to these innovations instantly.

  ‘Pricing’ it right for the Maximizer Mindset

  For young and progressive Indian consumers, time is of the essence, and they seek simplicity in everything they do. Axis Bank applied this insight to reprice its products. With extensive research, the bank discovered it was almost impossible for the average customer to understand the complex maze of charges and keep track of their average quarterly balances (AQB). It decided to go through a massive restructuring to move away from the conventional AQB charges model, to an average monthly balance (AMB) charges model.

  Axis Bank also discovered that consumers could not be bothered with maintaining monthly balances on their credit cards. Thus, in an industry first, it introduced annual fees on products like the YOUTH Account and Ladies First Card.

  Not only that, Axis Bank was one of the first banks to waive off pre-payment charges on its home loans.

  The bank did not stop there—it introduced eDGE, its first pan-service loyalty rewards programme. Unlike the loyalty programmes of competitor banks which rewarded customers on card spends, eDGE was designed to reward customers for every relationship they had with the bank—savings account, cards, loans and electronic channel transactions.

  The new pricing strategy resonated with the ‘maximizer’ in this young and progressive consumer set, and the impact reflected on the business as well as the brand.

  Boosting financial inclusion through a unique ‘placement’ model

  Axis Bank challenged convention to deliver financial services at affordable cost to all sections of society. The bank was aware that with only 50 per cent penetration of its banking products and services, there was huge potential for expansion. The result was a unique business correspondent (BC) model.

  Under this initiative, Axis Bank partnered with two leading telecom operators to leverage their massive networks, to reach out to various parts of the country and service the unbanked populace. India has more than 500 million mobile phone subscribers, compared to just 240 million individuals with bank accounts. This served as the perfect distribution platform for reaching out to the masses and taking banking services to all corners of the country. The mobile companies partnering with the bank also stood to gain by providing this value-added service to their customers.

  Rural agricultural lending is another key focus area within retail banking. It allowed the bank to serve the multiple needs of the farmer— both as a producer and as a consumer. In order to provide a strategic focus, the bank has adopted an area-centric approach in agriculture-intensive areas with the presence of decentralized area offices following a hub and spoke model.

  The model was simple—customers would access designated retail outlets for cash-in, cash-out and transfer of funds. Other banking functions such as balance enquiry, mini-statement and change of mPIN, would all be supported by the mobile platform. This provided a highly accessible, convenient, secure and cost-effective solution to customers who had thus far remained financially excluded.

  Axis Bank in partnership with Suvidhaa Infoserve, recently announced the launch of the Axis Bank–Suvidhaa Prepaid Card, a first-of-its-kind initiative in the banking industry, which leverages the e-KYC platform for instant on-boarding, cash deposit and withdrawal for the customer. The card is built on three components—the large reach of the BC network; instant eKYC, based on Aadhaar; and the ability of prepaid cards to be usable everywhere (interoperability). These come together to create a unique solution for the migrant population, which had hitherto found it difficult to access basic banking services for savings or money transfer.

  The bank’s efforts continued with the BC model going even beyond telecom partners. The model ensured that visiting a branch was no longer a necessity.

  These inventive business models enabled the bank to reach out to all parts of the country and make banking accessible for different sections of society, thereby fostering the growth of not only the bank’s business, but the nation’s as well.

  From a typical office-style branch to a modern retail-style ‘Physical’ presence

  The Bank initiated an effort to ease the customer’s journey in the branches, for which research played an important role in getting an indepth understanding of the customer. Customers were closely observed and interviewed, and role plays were conducted to get a deeper insight into branch functioning with reference to customer expectations and behaviour. The idea here was to provide an immersive retail experience for customers.

  The exterior zone of branches was redesigned with the purpose of creating awareness and engagement, using visual language. The new branch fascia and pole signage made it easier for people to locate the branch on a busy thoroughfare. Interiors were redesigned with designated zones— self-service, retail and transaction. The key principle was to anticipate each and every aspect of the customer journey, communicating relevant information and making the banking process smooth for the customer.

  The self-service zone was fashioned to allow customers to perform their most basic transactions, such as cash withdrawal, cash deposit, cheque deposit and request for cheque book, on their own. This area was made accessible to customers 24X7.

  The retail zone had a dedicated area to showcase retail products from the bank, along with a sales lounge and a premium lounge to serve high-net-worth customers.

  The transaction zone, which included teller counters, was placed at the extreme end in the new branch layout, similar to checkout counters in a mall.

  The idea was to move branches from being ‘transaction-heavy’ spaces towards ‘financial advisory’ spaces. This would help attract the new and emerging tech-savvy generation, which was seeking alternate channels for simplifying its financial transactions.

  In today’s scenario, Axis Bank is the first private sector bank to introduce recycler ATMs that enable customers to deposit as well as withdraw cash from the same machine. The recycler ATMs reduce the frequency of loading cash in the machine as well as the cost of idle cash, as they allow cash-recycling operations by dispensing deposited cash for future withdrawal transactions, thereby improving the efficiency of the bank’s cash operations. The bank has deployed around 300 recyclers and plans to scale up the same in the coming months. The same approach was extended as the brand expanded its network through the year.

  On the other hand, the bank’s digital initiatives have continued to make significant progress and remain integral to providing a superior customer service proposition. As a part of the same, the bank also launched a free Wi-Fi service, available to all Axis Bank customers across key branches, during FY2015. The bank also embarked on its journey of providing multi-format branches to serve its varied set of customer segments in different geographies.

  »Flagship branches: The bank has re-launched t
wenty-five strategic, high-footfall branches as 24X7 flagship branches that have been designed to provide its customers with an immersive retail banking experience. The innovative design-led approach for these branches has been arrived at after extensive ethnographic research.

  »Express branches: In a move to facilitate digitization of banking services, the bank recently launched 24X7 ‘express branches’ offering services such as cash withdrawals, instant cash deposits, cheque deposits, instant account opening, Internet banking, instant issuance of gift and foreign currency cards, online buying of insurance and advisory services. These express branches will be conveniently located either in malls or office complexes or business parks.

  ‘Omni-channel approach to connect to consumers

  The creation of alternate channels was necessary in a context where consumers were transacting in nuanced ways through different mediums. The new Indian was always on the move, with no time to visit branches on weekdays. Since banking seemed like a chore to them, they did not want to spend their weekends at a branch. Options that allowed them to bank from the comfort of their home and office were therefore the need of the hour.

  As the number of ways to connect with customers increases and self-service channels become the primary way of banking, a simple multi-channel strategy fails to suffice anymore. Instead, an omni-channel approach, characterized by consistent processes, consistent data and seamless integration across various channels provides the bank a competitive advantage. Technology has enabled customer accessibility to all products across all channels through seamless multi-channel integration. The bank has been simultaneously focusing on ‘digitization’ of its backend processes and empowerment of its customers with mobile-led, simple, anytime anywhere ‘digital’ banking.

  Axis Bank decided to take this to the next level with a secure, userfriendly Internet banking platform and cutting-edge mobile application, both built with features that made banking-on-the-go simpler and more convenient. The new mobile app pushed customization to a new level, by letting customers personalize everything from account details to menu options, navigation style, and even adding photos of beneficiaries from Facebook or the phone album or by clicking a new picture. It truly was the new way to bank.