Axis Bank Limited · NSE:AXISBANK
Axis Bank — Investor Presentation (December 2020)
41 slides from Axis Bank's investor presentation, December 2020
Slide 1: Axis Bank Digital: OPEN
Axis Bank Digital: OPEN December 2020 1
Slide 2: Digital Banking – Axis Bank's "silent revolution"
Digital Banking – Axis Bank’s “silent revolution” 73% 73% 72% 58% 52% 48% 4.6 Digitally active Fixed deposits New SA PL disbursed** Credit cards New MF Mobile App customers opened** acquisition* issued** sales** ratings D2C products 250 20% 17% 87% 60,000 250 300+ Services on Market share in Market
Slide 3: Trends shaping the bank of the future
Trends shaping the bank of the future Bank of the future will be invisible and embedded into the customers journey – ecosystems and partnerships will become critical Data, digital and technology will converge to provide personalized banking Public data and Digital infrastructure will enable dramatic
Slide 4: Our aspirations
Our aspirations Delivering a distinctive customer experience • Through distinctive frictionless experience/ journeys Enhance the bank’s growth profile by expanding market share • Deliver at-scale digital propositions addressing customer needs Deliver sustainable value through digital Release efficie
Slide 5: Our Digital Bank strategy
Our Digital Bank strategy Partner of choice Reimagine top 1 2 Transform the core 3 for select end-end journeys ecosystems 4 Data and analytics 5 People, processes, technology 5
Slide 6: Our Digital Bank strategy
Our Digital Bank strategy Reimagine top Embed into 1 2 Transform the core 3 end-end journeys ecosystems 4 Data and analytics 5 People, processes, technology 6
Slide 7: Reimagining customer journeys
1 Reimagining customer journeys Build integrated Introduce new products/ propositions Reimagine end-end segments journeys • ~100 journeys identified; basis size, • 4 new areas (products, segments • Customer centric cross-product digital profitability and franchise relevance identified) propositions
Slide 8: OPEN: Axis Bank principles for reimagined customer journeys
1 OPEN: Axis Bank principles for reimagined customer journeys 0-based redesign; customer centric, design led and 0-operations Proprietary in-house capabilities Ecosystems capable; built for all Axis and partner channels Numbers, Numbers, Numbers: Impact led and metrics driven 8
Slide 9: Leap: Digital Savings Account onboarding
1 Leap: Digital Savings Account onboarding Key steps in the journey 0 operations; min to no data entry and all checks done by machines; 15% cash back; free Times Prime membership Built fully in-house Product Listing Page Step1:EKYC Step2:Profile Information Built as micro-services; extended to partn
Slide 10: Leap: Impact metrics
1 Leap: Impact metrics Customer impact Operational impact Financial impact All the figures are Indexed • Account opening TAT ^ • Physical documents required (in #) • Cost of acquisition 100 100 100 74 26% 75% 100% 25 0 Physical Digital Physical Digital Physical Digital • True rate 125 100 25% • Cust
Slide 11: Maximus (Digital PL): Impact metrics
1 Maximus (Digital PL): Impact metrics Customer impact Operational impact Financial impact All the figures are Indexed • End-end disbursal TAT ^ • Physical documents required (in #) • Cost of acquisition 100 100 100 99% 100% 85% 0 15 0 Physical Digital Physical Digital Physical Digital • Fields to b
Slide 12: Mutual Funds: Impact metrics
1 Mutual Funds: Impact metrics Customer impact Operational impact Financial impact • Purchase TAT ^ • Physical documents required (in #) • Digital contribution to fresh SIPs 100 100 48% 99% 100% 0 0 41 pp Physical Digital Physical Digital 7% H1 FY 20 H1 FY 21 • Physical fields to be entered (in #) •
Slide 13: Digital Business loan (GST example)
1 Digital Business loan (GST example) Key steps in the journey 5-8 min to disbursal; integrations for data; automated real time underwriting Proprietary underwriting model Generic Page Step1: Business Details Step2: GST Details Built as micro-services; extended to partners Delivering clear bottomlin
Slide 14: Maximus (Digital BL): Impact metrics
1 Maximus (Digital BL): Impact metrics Customer impact Operational impact Financial impact • End-end disbursal TAT^ • # Physical documents required • Cost of acquisition* 100 100 100 99% 100% 71% 29 0 0 Physical Digital Physical Digital Physical Digital • # Fields to be entered • Non STP ** • Contri
Slide 15: Holistic digitization solutions for the Kirana ecosystem
1 Holistic digitization solutions for the Kirana ecosystem The Indian retail industry is expected to reach $2.2 trillion by 2025; ~90% of FMCG retailing is in the form of unorganized kiranas All the major players like Jio, Walmart, Amazon are eyeing the local kiranas to unlock opportunities Axis Ban
Slide 16: Digital initiatives in Corporate banking: 3 primary vectors
1 Digital initiatives in Corporate banking are focused across 3 primary vectors Bespoke • Focus on sector specific solutions and solutioning for customers 02 • bespoke needs of large corporates Commercialization at scale provides access to significant revenue pools • Drive towards 100% registration
Slide 17: Comprehensive Internet Banking solution with a wide array of features
1 We have put into place a comprehensive Internet Banking solution with a wide array of features Key Features • A/c Management • Vendor Payments • Salary Payments Complete overview of finances • Utility Bill Payments • Statutory Payments • Trade & Forex • Supply Chain End to end Visibility across •
Slide 18: Specialised areas like Trade
1 At the same time, we have also focused on specialised areas like Trade • Remittance credited • Online platform • within an hour • Anywhere 24 X 7 • Online rate booking • Authorization on the move with • A1 / A2 remittances Mobile App • Bene addition • Templated trxns • Paperless • Bulk Upload • Di
Slide 19: We are building a strong and ever expanding API backbone
1 We are building a strong and ever expanding API backbone Vendor Salary Accounts & GST Recon Payee Balance Registration Mini Statement Payee Account Validation Receivable Statement Payments s eCollections Tag Activation Enquiry API Eazypay NACH Bill IFSC Check Fastag Payments Biller CC/OD limits GS
Slide 20: Our Digital Bank strategy
Our Digital Bank strategy Reimagine top Embed into 1 2 Transform the core 3 end-end journeys ecosystems 4 Data and analytics 5 People, processes, technology 20
Slide 21: 50+ Initiatives identified and underway
2 Branch of the future: Frontline productivity enhancement Objective Initiatives • Frontline time spent on servicing and operations 1• Reimagine branch processes leveraging digital 100 36% 2• Redefine frontline roles to focus on relationship management 64 • Institutionalise Axis way; build data and
Slide 22: Operations transformation: Back office productivity enhancement
2 Operations transformation: Back office productivity enhancement Process Capability Building & Automation Analytics Customer Experience Transformation competency development Providing uniform & seamless Automation of processes Leveraging data analytics to Building quality culture and journey to cus
Slide 23: Empower employee, release costs and enhance effectiveness
2 Empower employee, release costs and enhance effectiveness Details Benefits • Intelligent, comprehensive, proactive and hyper- • Enable meaningful customer conversations via personalized employee tool analytics • Covering 300 journeys across bank and subsidiaries • Empower managers to have control
Slide 24: Sankalp (SME): Reimagined journeys for productivity
3 Sankalp (SME): Reimagined journeys to deliver better frontline and back office productivity – Credit journey example Key steps in the journey What makes the journey distinctive/ best-in class • Single click pre-screening against knock-off factors in CCP like CIBIL, BQS • Instant rating for exposur
Slide 25: CBG: Impact metrics
3 CBG: Impact metrics Customer impact Operational impact • 50% reduction in end-end TAT • Due diligence TAT reduced by 75% • Exposure based documentation reduces • 40% reduction in effort in creating credit appraisal document requirement for Small ticket loans memo • Capability to upload documents d
Slide 26: Our Digital Bank strategy
Our Digital Bank strategy Reimagine top Embed into 1 2 Transform the core 3 end-end journeys ecosystems 4 Data and analytics 5 People, processes, technology 26
Slide 27: We aspire to deeply ingrain into select ecosystems and transform them
3 We aspire to deeply ingrain into select ecosystems and transform them Ecosystems 2.0 Ecosystem 1.0 Partnerships • Build organizational capability for • Fully integrated products • Jointly develop end-end ecosystem working with partners • Lifecycle services solutions • Product specific partnerships
Slide 28: Our API developer portal is live and hosts a full range of APIs
3 Our API developer portal is live and hosts a full range of APIs • Integrate with any ERP, App, processing engine Adaptability • Adapters for SAP PI/PO Scalability • Ability to handle large volumes APIs • Digital: RTGS, NEFT, IMPS, Fund Transfer for all modes • Paper-Based: Cash, Cheque & Demand Dr
Slide 29: We have built multiple product partnerships across multiple partners
3 We have build multiple products partnerships across multiple partners Neo Banking FD Credit cards Small ticket loan Auto loan Merchant loans Coming Coming Soon Soon Representative partners 29
Slide 30: Full product lifecycle on partner platforms – FD example
3 We have enabled full lifecycle of products (acquisition and management) on partner platforms – FD example End-to-end FD acquisition journey, native on partner platform FD maintenance and servicing on partner platform Email FD Advice Amount and PAN & Bank tenure detail selection validation View FD
Slide 31: Moving from ecosystems 1.0 to ecosystems 2.0
3 We are moving from ecosystems 1.0 to ecosystems 2.0 Ecosystem 1.0 Ecosystem 2.0 1• Typically product specific 1• Focus on customer lifecycle 2• 1-2 products 2• Multiproduct 3• Origination journey integration 3• Creation of new journeys – involving financial ………………… product and core product 4• Acqu
Slide 32: Working with partners to build out a merchant ecosystem
4 We are working with partners to build out a merchant ecosystem The ecosystem will deliver value to each entity Axis bank aims to offer a suite of products delivered through • Improved retailer coverage • Improved working capital cycle and shelf space • Increased sales to retailers • Higher sales t
Slide 33: Our Digital Bank strategy
Our Digital Bank strategy Reimagine top Embed into 1 2 Transform the core 3 end-end journeys ecosystems 4 Data and analytics 5 People, processes, technology 33
Slide 34: Today, Bank leverages analytics at a large scale
4 Today, Bank leverages analytics at a large scale Bank covers wide spectrum of analytics … … covering most of the organization Driving business growth through budget Credit Cards & Payments Business Analytics planning, pricing strategy & product engineering Rural Lending Retail Lending Retail Banki
Slide 35: We are fairly advanced in our analytics maturity curve
4 We are fairly advanced in our analytics maturity curve Analytics Sophistication Data Descriptive Prescriptive Predictive Optimizations Artificial Management Analytics Analytics Analytics Intelligence 9k dashboards to 100+ use cases 12 models live Pricing Built capabilities to 1.5+ petabyte data 48
Slide 36: Significant business impact from data driven decisioning
4 Significant business impact been created through data driven decisioning 72% of retails loans are 71% of credit card sourcing is `4.5k Cr of Home Loan BT decisioned via proprietary done via our database stopped in this FY till machine learning models programs September end 9000 reports published a
Slide 37: Setting up the right data infrastructure
4 Setting up the right data infrastructure Superior Machine Learning Models Hadoop Cluster with scale of Petabyte • Ensemble Machine learning model • Real time big data capability with petabyte scale • More than 2000 attributes considered • Live with 100’s of big data use cases • 120% better GINI th
Slide 38: Our Digital Bank strategy
Our Digital Bank strategy Reimagine top Embed into 1 2 Transform the core 3 end-end journeys ecosystems 4 Data and analytics 5 People, processes, technology 38
Slide 39: Building the right team with right talent
5 Building the right team with right talent 110 + 75% .. member strong in-house …new hires from non-banking background tech team • Fintech’s • Consulting • E-commerce • Campus • Design 800 + • Developers – Front-end, • IT • Others back-end, full stack .. across roles forming full service teams • Dev
Slide 40: Enabling the team through right technology and process
5 Enabling the team through right technology and process Agile product development lifecycle Continuous deployment Micro-services based architecture Plan Plan Operate Maintain Analyse Code Deploy Continuous integration Continuous delivery Test and integrate Design Build Release Implement Test • Cros
Slide 41: Thank you
Thank you A's BANK