Comparative market analysis & ways to increase our.pptx

BANKIG PPT ON PERSONAL LOAN

1. Comparative market analysis & ways to increase our share in personal loan APU APURBA DEV ABHISEKH JAY Shreemoyee Vandana

2. “If you don't have some bad loans you are not in business.” Paul Volcker ( Chairman of the Federal Reserve, year 1979 )

3. A personal loan is a type of unsecured loan provided by financial institutions such as banks, credit unions, or online lenders. Key Characteristics: Unsecured Fixed Amount. Fixed Interest Rate. Fixed Term. Credit-Based.

4. Types of Personal Loan Express Credit : Permanent salaried employee with minimum of 1 year length of service. Minimum CIBIL 650 for govt. employee and 670 for others. Minimum salary rupees 15,000 NMI. Express Elite : High income eligibility of rupees 1 lakh and above with maximum loan amount rupees 35 lakhs and flexible repayments. Express Lite : Targeted eligibility of monthly income ranging from loan amount rupees 7,000 to 14,999 offers minimum rupees 25,000 to max 1.8 lakhs, with minimum repayment period of 36 months. Express Flexy : Overdraft facility for diamond salaried customer NMI between 15K to 1 lakh, and for Platinum salaried with NMI above rupees 1 lakh allowing customer to access funda as needed up to preapproved limit. Realtime Express Credit : Seamless digital experience with real time loan sanction and disbursement Available to existing govt and defense salaried customer with minimum NMI rupees 15K, loan amount ranging 25K to 30 lakhs for regular customer and 35 lakhs for excess elite customer.

5. MARKET SIZE Unsecured personal loans surged to Rs. 13.32 lakh crore as of March 2023 from 4.26 lakh crore in March 2017, recording a Y-O-Y growth 23 percent. India personal loan market is projected to witness a CAGR of 26.5 % during the forecast period FY 25 - FY32.

6. GROWING MARKET SHARE

7. CUSTOMER DEMOGRAPHY OF PERSONAL LOAN

8. A comparative market analysis (CMA) in the context of personal loans involves evaluating the current market conditions, competitors, and customer preferences to determine how the State Bank of India (SBI) can enhance its market share in this segment. Here's an outline of what a CMA might entail and strategies SBI could adopt: Market Overview: Current Market Size: Assess the total market size for personal loans in India and specifically in regions where SBI Operates. Growth Trends: Analyze historical data to identify growth trends in the personal loan market. Customer Demographics: Understand the demographics of personal loan customers, including age, income, employment status, and geographic location.

9. A comparative market analysis (CMA) Competitor Analysis: Major Competitors: Identify key competitors in the personal loan market (e.g., HDFC Bank, ICICI Bank, Axis Bank). Growth Trends : Determine the market share of each competitor. Product Comparison: Compare loan products based on interest rates, fees, loan terms, and customer service. Marketing Strategies: Evaluate the marketing and promotional strategies used by competitors.

10. A comparative market analysis (CMA) Customer Preferences: Loan Features: Identify features that customers value most (e.g., low interest rates, quick disbursement, flexible repayment options). Customer Feedback : Collect and analyze customer feedback to understand pain points and areas for improvement.

11. A comparative market analysis (CMA) Ways to Increase Market Share in Personal Loans for SBI Competitive Interest Rates: Rate Adjustments: Offer competitive interest rates to attract more customers. Promotional Offers: Introduce limited-time promotional rates for new customers Enhanced Digital Platforms: Online Applications: Improve the online application process for personal loans to make it more user-friendly and efficient. Mobile App Integration: Enhance the mobile app to include features such as loan calculators, application tracking, and instant approvals.

12. A comparative market analysis (CMA) Ways to Increase Market Share in Personal Loans for SBI Personalized Loan Products: Customized Solutions: Offer personalized loan products tailored to specific customer segments (e.g., salaried employees, self-employed individuals, professionals). Flexible Terms: Provide flexible repayment terms and options for prepayment without penalties. Improved Customer Service: 24/7 Support: Offer round-the-clock customer support through various channels (phone, chat, email). Branch Outreach: Enhance customer service at branches by training staff to handle personal loan inquiries efficiently.

13. A comparative market analysis (CMA) Ways to Increase Market Share in Personal Loans for SBI Strategic Marketing: Targeted Campaigns : Run targeted marketing campaigns using data analytics to identify and reach potential customers. Partnerships : Partner with employers, educational institutions, and other organizations to offer special loan products. Financial Education: Workshops and Seminars : Conduct financial education workshops and seminars to inform customers about the benefits of personal loans and responsible borrowing. Online Resources : Provide online resources, such as articles and videos, to educate customers about personal loans.

14. A comparative market analysis (CMA) Ways to Increase Market Share in Personal Loans for SBI Loyalty Programs: Rewards Programs : Introduce loyalty programs that offer rewards or benefits for existing customers who take out personal loans. Referral Bonuses : Implement a referral program that rewards customers for referring friends and family. Risk Management: Credit Scoring Models : Utilize advanced credit scoring models to assess and manage risk, ensuring that creditworthy customers receive approvals quickly. Loan Insurance : Offer loan protection insurance to provide peace of mind to borrowers.

15. Data show banks continued to bet big on personal loans in third quarter

16. Emerging market and developing economics projected 10% bank loan growth in 2024. Bank loan growth in select emerging market and developing economics (2022 - 2024)

17. To increase market share in the personal loan sector, financial institutions should adopt a multifaceted approach focusing on product innovation, technological integration, customer experience enhancement, expanded distribution, competitive pricing, effective risk management, robust marketing, and strict regulatory compliance. Conclusion

18. Thank You