Axis Bank Limited · NSE:AXISBANK
Axis Bank — Jefferies India CTO Summit 2021
45 slides from Axis Bank's conference presentation, Nov 23, 2021
Slide 1: Exchange disclosure cover letter
AXIS/CO/CS/439/2021-22 November 23, 2021 Chief Manager, The Deputy General Manager, Listing & Compliance Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor 1st Floor, New Trading Ring, Plot No. C/1, “G” Block Rotunda Building Bandra-Kurla Com
Slide 2: Interactions held on November 23, 2021
Place: Mumbai Interactions held on November 23, 2021 Sr. Institution Name No. Jefferies India CTO Summit 1 Abu Dhabi Investment Authority (ADIA) 2 Aditya Birla Sun Life Asset Management 3 Alchemy Investment Management 4 Birla Sun Life Insurance 5 Canara Robeco Mutual Fund 6 Navi Mutual Fund 7 New Ho
Slide 3: Digital Banking 2.0
Digital Banking 2.0 Jefferies India Tech Summit November 2021 * Tablet based account opening process for Q2FY22 ^RBI data for 2M Q2FY22 by volume NSE: AXISBANK ^^Based on all financial transactions by individual customers in Q2FY22 ** through phygital and digital mode in H1FY22 BSE: 532215 # by volu
Slide 4: India's Best Digital Bank
India’s Best Digital Bank National E-Summit & Awards 15% 13% 4.6 Market share in UPI Market share in Mobile App ratings transactions1 transactions1 (Apple store) 1. In terms of volumes for Q2FY22 2
Slide 5: Digital Banking – Axis Bank's "silent revolution"
Digital Banking – Axis Bank’s “silent revolution” ~77% 76% 71% 67% 55% 48% 4.6 Credit cards Digitally active New SA Fixed deposits PL disbursed** New MF SIP Mobile App issued** customers acquisition* opened (H1FY22) sales (H1FY22) ratings D2C products (Q2FY22) (Q2FY22) 250+ 15% 13% 91% 95,000+ ~980
Slide 6: Digital leadership and technology driven transformation are key pillars of our GPS strategy
Digital leadership and technology driven transformation are key pillars of our GPS strategy Strengthen the organizational core and quality of our balance sheet 1 significantly 2 Invest in technology capabilities to deliver on our Transformation plans 3 Act with relentless focus on making Axis digita
Slide 7: Our digital strategy is aligned with our GPS strategy
Our digital strategy is aligned with our GPS strategy A B C Reimagine Customer Transform Build Future-ready Proposition the Core Capabilities Digital-first products Ops excellence & institutionalization of Data architecture 3.0; moving beyond embedding design thinking data & tech enabled operating r
Slide 8: The OPEN philosophy underpins everything we do
The OPEN philosophy underpins everything we do 0-based redesign; customer Playbook for agile, customer centric design for all teams centric, design led and 0-operations to collaboratively change the Bank Building in-house capabilities on different elements such Proprietary in-house capabilities as d
Slide 9: We are working on 30+ initiatives to execute our digital strategy
We are working on 30+ initiatives to execute our digital strategy Acquisition Cross sell / Up sell Lifecycle management Risk management Retail liabilities LEAP: Digital journey for CASA opening Pre-approved and e2e Archetype based personalized Thanos: Insurance marketplace Partnerships for SA acquis
Slide 10: Our digital strategy is aligned with our GPS strategy
Our digital strategy is aligned with our GPS strategy A B C Reimagine Customer Transform Build Future-ready Proposition the Core Capabilities Digital-first products embedding Ops excellence & institutionalization of Data architecture 3.0; moving design thinking data & tech enabled operating rhythm b
Slide 11: Digital is an important customer acquisition engine for the Bank
Digital is an important customer acquisition engine for the Bank, which continues to achieve scale Where we were Latest update Product (Dec ’20) (Sep’ 21) Deposits 2 Video KYC enabled Savings 10% 20% Accounts (non salaried)* Video KYC enabled Savings 2 -- 8% Accounts (salaried) Fixed Deposits (for 1
Slide 12: Digital is an important customer acquisition engine for the Bank
Digital is an important customer acquisition engine for the Bank, which continues to achieve scale Where we were* Latest update* Product (Dec ’20) (Sep ’21) Investments 1 2 Mutual Funds (new SIP sales) 36% 48% Public Provident Fund 80% 95% 1 9MFY21 2 H1FY22 * digital contribution to overall volumes
Slide 13: We continue to introduce and scale new products driven by zero-based redesign
We continue to introduce and scale new products driven by our zero-based redesign philosophy Detailed further Our product portfolio New launches Buy Now Paylater GrabDeals Cards lifecycle Auto loan O/W Remittance Digital Gold Insurance 2.0 ODFD 0-operations based redesigned journey with customer at
Slide 14: Buy Now Pay Later on Freecharge
Buy Now Pay Later on Freecharge Insta onboarding, decisioning & activation – all in 3 steps in less than 3 minutes Customer clicks on paylater Customer Also available for new-to-Bank provides basic banner and can customers personal details view details Launched on the Bank’s proprietary Jarvis loan
Slide 15: Partner Engagement Layer: Jarvis lending platform
Buy Now Pay Later on Freecharge | Developed on ‘Jarvis’: our in-house developed, cloud native, API oriented lending platform JARVIS - Axis’ Digital Lending System New-age Loan Management System Downstream Supports small ticket, small tenor, Applications limit/loan, multiple interest rate/fee struc
Slide 16: Leap | Digital Savings Account onboarding
Leap | Digital Savings Account onboarding Mobile first, customer driven design with After choosing from 5 SA Customer ~90% of savings accounts getting variants, provides activated within 24 hours Customer shares personal, family Higher flexibility on schemes vs. peers Aadhaar, PAN and address and mo
Slide 17: Leap Digital Savings Account | Impact
Leap Digital Savings Account | Impact Operational impact, Indexed Financial impact, Indexed # Physical documents required Cost of acquisition 100 100 -38% 62 -100% 0 Physical Digital Physical Digital NTRF* True rate 100 6% 106 100 -100% 0 Physical Digital Physical Digital * NFTR – Not First Time Rig
Slide 18: Grabdeals e-commerce marketplace
Grabdeals e-commerce marketplace | Festive season helps to achieve blitz scale and gain significant customer traction About Grab Deals Festive season Simple 3-step process to avail cash back on Grab Deals: Browse → Authenticate → Shop 27 Days Up to10% cashback 5 Partners Integrated with WhatsApp cha
Slide 19: We are adopting a combination of approaches for the digital ecosystem
We are adopting a combination of approaches for the digital ecosystem Detailed further Build our own capabilities, partner with FinTechs where there is complementarity and invest in areas that have adjacencies 17
Slide 20: Improved traction in cards acquisition aided by KTB partnerships
We are seeing improved traction in cards acquisition aided by KTB partnerships New Credit Cards acquisition Share of KTB^ sourcing Credit Cards in force (mn) (indexed to 100) 11.7% 11.4% 11.5% 11.4% 11.6%* 23% 298 21% 234 7.51 153 7.15 128 7.14 6% 6.87 6.87 100 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 FY2
Slide 21: Flipkart Axis Bank Credit card | Acquisition journey
Flipkart Axis Bank Credit card | Acquisition journey Digital acquisition, fulfilment & servicing via partner platforms Video KYC and Digitization of Income Customer clicks on Documents to digitize application Customer fills up the Flipkart Axis Bank form and submits journey – unique to Axis Bank Cre
Slide 22: Flipkart Axis Bank Credit card | Impact
Flipkart Axis Bank Credit card | Impact Customer impact, Indexed Financial impact, Indexed 30 day Early activation Monthly activity Spends/open 150 140 150 100 40% 50% 100 50% 100 Axis Bank CC Flipkart Axis Bank CC* Axis Bank CC Flipkart Axis Bank CC* Axis Bank CC Flipkart Axis Bank CC* * Flipkart A
Slide 23: Our Mobile Banking volumes continue to grow
Our Mobile Banking volumes continue to grow Axis Mobile is amongst the highest ranked Banking app on Apple Store (rating of 4.6) & Google Play Store (4.5) and offers 250+ DIY services Axis Bank Mobile Banking Volumes (in Mn) ~5 Mn non-Axis Bank 69% YOY customers using Axis Mobile & Axis Pay apps 1,6
Slide 24: WhatsApp Banking emerging as a significant channel
WhatsApp Banking emerging as a significant channel Insta Opt-In, real-time fulfilment of request on WhatsApp with 24x7 availability AI enabled Axis Aha integration to answer all FAQs Hosted and managed on Axis Bank private cloud Seamlessly integrated with WhatsApp for an almost native Comprehensive
Slide 25: WhatsApp Banking | Impact
WhatsApp Banking | Impact 10 months of successfully delivering banking services through WhatsApp 15 2.3 Mn+ 6.2 Mn+ Total Services Unique Customer Customer Live Opt-ins Interactions Account Level Credit Card FAQs Answered Pre Approved Axis Locations Enquiry Enquiry (via Aha!) Offers Requests 3.3 Mn+
Slide 26: Setting up best-in-class personalization engine
Setting up best-in-class personalization engine to deliver distinctive customer experience… CUSTOMER Creating Digital DNA What is the current life stage of a customer? – Married with kids elements for more than – Self Employed - Doctor 26 Mn customers What does a customer do? How much does the custo
Slide 27: 100+ nudges developed & deployed via custom cloud native serving layer
100+ nudges developed & deployed via custom cloud native serving layer Leveraging situational triggers to craft a multistep curricula for ETB … … & NTB to develop depth in engagement 1st March - Account ₹30,000 credited to 30th March -Bill Opened the account Pay set-up Payments Spends Recency Freech
Slide 28: Our digital strategy is aligned with our GPS strategy
Our digital strategy is aligned with our GPS strategy A B C Reimagine Customer Transform Build Future-ready Proposition the Core Capabilities Digital-first products embedding Ops excellence & institutionalization of Data architecture 3.0; moving beyond design thinking data & tech enabled operating r
Slide 29: Branch of the Future
Branch of the Future | Transform the way Axis Bank engages with and serves its customers Re-engineer key service requests to release frontline capacity from servicing and enable focus on relationship building & sales 250+ services available digitally – amongst the highest in industry Enters Aadhar O
Slide 30: Branch of the Future | Impact
Branch of the Future | Impact Services accounting for ~65% Aggregated 92%+ <1% 60%* of request volumes in metrics STP rate NFTR rate Digital adoption branches are now digitally available Updation of PAN service request illustration STP increased by NFTR reduced by 300 100 36% 64 3X 100 From To From
Slide 31: We are the leader in cloud adoption in the banking sector
We are the leader in cloud adoption in the banking sector 29
Slide 32: CI/CD deployments through the Jenkins pipeline
500 deployments in CI/CD mode through the ‘Jenkins’ pipeline The DevSecOps Build Farm for Axis is capable of handling multi cloud CI CD All security tools have embedded security tolerance Platform supports the entire spectrum from (Selenium) monolithic deployment in traditional application servers t
Slide 33: Resiliency at Axis being built through multiple initiatives
Resiliency at Axis being built through multiple initiatives Built for Resiliency Continuous Technology Refresh - Year-on-year >25% Refresh towards Latest Technology Adoption Data Centre New Age Tech. Data Network Continuous Re-skilling - Data Centers Expansion Adoption of SDN, Latest Maximum availab
Slide 34: Developing in-house tech, design and AI capabilities
Developing in-house tech, design and AI capabilities The Bank is focusing on developing its in-house capabilities Enterprise Agile Centre of Excellence Customer Experience will be IA center of excellence Architecture Practice (CoE) to build capabilities to a focal point of all technology (CoE) to cr
Slide 35: Sub-zero design platform for a unified user experience
Sub-zero design platform for a unified user experience Subzero is a collection of guidelines and components shared among designers and developers in order to create a streamlined and enjoyable user experience for all Axis Bank customers. At its centre is the pattern library which contains reusable c
Slide 36: Committed to Highest Standards of Data Security and Customer Privacy (1/2)
Committed to Highest Standards of Data Security and Customer Privacy (1/2) Security by Design Defence in depth though best in Vulnerability and threat management 24 x 7 events monitoring by SOC class security technology and across the entire tech. landscape through Next Gen SIEM, threat process cont
Slide 37: Committed to Highest Standards of Data Security and Customer Privacy (2/2)
Committed to Highest Standards of Data Security and Customer Privacy (2/2) Key Capabilities In-House Cyber Breach 24x7 Dark Web Monitoring Cyber Security Threat Intelligence Assessment a. Fraudulent / Phishing sites from best-in-class commercial sources For safely simulating multiphase, real- b. Art
Slide 38: Our digital strategy is aligned with our GPS strategy
Our digital strategy is aligned with our GPS strategy A B C Reimagine Customer Transform Build Future-ready Proposition the Core Capabilities Digital-first products embedding Ops excellence & institutionalization of Data architecture 3.0; moving beyond design thinking data & tech enabled operating r
Slide 39: Best in class analytics solution leveraging alternate data
Best in class analytics solution leveraging alternate data to implement large scale models 1 We have begun our cloud data infrastructure 1 2 journey Data and Alternate Information 2 We are building alternate data platforms to data architecture enable score-based underwriting for next 100 million+ cu
Slide 40: We are moving to Data Architecture 3.0
We are moving to Data Architecture 3.0 Data Stack 3.0 - Cloud Big data clusters developed on Hadoop with PetaByte scale data Streaming Analytics Data Science 150+ use cases deployed across credit, fraud, marketing analytics on cloud decisioning platform BI ML Multiple machine learning based credit m
Slide 41: KTB cards sourcing contributing significantly with good risk outcomes
KTB cards sourcing has started contributing significantly with good risk outcomes and activation rates % of Business contribution KTB (Known to Bank) base of 140 23 mn customers 21 Built market tested credit 6 models based on KTB data FY20 FY21 H1FY22 Credit risk outcomes for KTB performing signific
Slide 42: Building the right team with the right talent
Building the right team with the right talent ~77% …new hires from non-banking background ~1000 250 Fintech’s Consulting …people dedicated .. member strong in- E-commerce Campus to digital agenda house tech team IT Others .. across roles forming full service teams Design Digital mark
Slide 43: The organization is moving to more flexible ways of working
The organization is moving to more flexible ways of working… Future of work 2.0 20% Employees in alternate formats full-time employees now working from anywhere; reinforcing Axis group’s position as a leader ~2,500 in employee flexibility ~100% Hybrid work the new normal, all employees have returned
Slide 44: … and creating a future-ready workspace
… and creating a future-ready workspace One Axis App App with enhanced Self-Service and access to required information through ~30 modules Onboarding Virtual ID, visiting card & mandatory declarations for new joinees Active One screen view of benefits, employee profile, payroll and reimbursements, l
Slide 45: Thank you
Thank you A's BANK