MSME GROWTH – Bank of India
MSME GROWTH
Problem
- Delays in processing transactions, approvals or services can lead to frustration and lost business opportunities.
- Retaining customers is crucial for long-term success.
- Poor asset quality often seen in the form of Non-Performing Assets affects the Bank’s financial health & profitability.
- Outdated or limited product offerings can lead to reduced competitiveness & inability to meet diverse customer needs.
- Manual processes can be time-consuming, prone to errors, and costly.
Solution
- Implementing marketing automation tools to ensure consistent messaging across online and offline channels.
- Streamlining onboarding processes for Existing-to- Bank (ETB) and New-To-Bank (NTB) Customers.
- Enhancing the accuracy and efficiency of credit risk evaluation review existing credit assessment methods.
- Developing and launching innovative products that meet customer needs.
- Conducting market research and customer surveys to identify product needs.
Outcomes
- The project successful execution and new product offerings likely attracted more customers.
- Successful implementation of new processes and technologies boosted employee confidence and morale.
- Training Programs associated with the project improved employees Skills and knowledge.
- The project likely facilitated better relationships and partnerships with major players, including technology providers.
- The Bank’s new product and services set industry standards and served as a model for best practices in financial schemes.
SKOCH Award Nominee
Category: Banks
Sub-Category: Leadership – MSMEs
Project: MSME GROWTH
Start Date: 4-01-2023
Organisation: Bank of India
Respondent: Anshuman Tewari
https://bankofindia.co.in/
Level: BFSI – 1
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Case Study
MSME GROWTH
Introduction:
Bank of India has achieved 11.67% Y-O-Y growth rate and targeted growth rate for 2024-25 is 19.62%. The attributable factors for this achievement that is product innovation. asset quality, omnichannel marketing and customer retention.
Problems:
Delays in processing transactions, approvals or services can lead to frustration and lost business opportunities and retaining customers is crucial for long-term success. Poor asset quality often seen in the form of Non-Performing Assets affects the Bank’s financial health & profitability. Outdated or limited product offerings can lead to reduced competitiveness & inability to meet diverse customer needs. Manual processes can be time-consuming, prone to errors, and costly.
Solution:
Implementing marketing automation tools to ensure consistent messaging across online and offline channels. Streamlining onboarding processes for Existing-to- Bank (ETB) and New-To-Bank (NTB) Customers. Enhancing the accuracy and efficiency of credit risk evaluation review existing credit assessment methods.
Challenges:
Gathering accurate comprehensive data required significant effort. Involvement of Multiple Departments and co-ordination: Ensuring smooth collaborations among various departments was crucial but challenging. Aligning the objectives and strategies across different teams required effective communication and management.
Innovation:
MSME Department carefully selected a comprehensive strategy to achieve the goal of MSME Growth. The chosen solutions – New Product Development, T-A-T (Turn-Around-Time) Improvement, Omnichannel Marketing, Change Management, and Campaign Mode Business drive – designed to work synergistically to drive growth, enhance customer experience, and improve operational efficiency.
Outcomes:
The project successful execution and new product offerings likely attracted more customers. Successful implementation of new processes and technologies boosted employee confidence and morale. Training Programs associated with the project improved employees Skills and knowledge. The project likely facilitated better relationships and partnerships with major players, including technology providers. The Bank’s new product and services set industry standards and served as a model for best practices in financial schemes.
Opportunities:
These schemes will be revised as per the dynamic needs of the market and provide best in class product offerings and customer service. For the near future, Champion Sector has been identified and bank has developed a product suiting the needs of the sector and sizable business is expected from this product.
Summary:
BOI introduced its new product offerings with best-in-industry product features. Focus was T-A-T improvement and on-boarding customers with better credit discipline and debt appetite. Leading to substantial increase in the total size of MSME Loans & helped in containing the NPA levels.
For more information, please contact:
Anshuman Tewari at Anshuman.Tewari2@bankofindia.co.in
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