Internet is considered a boon to Banking. It can reduce cost, increase reach and
provide anytime, anywhere Banking. ICICI Bank was one of the earliest in India
to adopt Internet Banking and later try to use technology wherever it is
relevant. However, increasingly, the Bank is becoming "Techno-Dependent"
rather than "Techno-Driven" and the customer service and the basics of Banking
are being relegated to the background... In traditional Banking principles,
these are the early signs of impending sickness. Because, when customers feel
sick of the Bank, we can say that the Bank is on the path to sickness.
Now that ICICI Bank is planning a major IPO, it is necessary to understand
whether the Bank is heading in the right direction or there is a problem hidden
underneath.
As a long time observer of ICICI Bank and its technological forays as well as my
own long Banking experience, it appears that ICICI Bank is a classic case
of how an organization can be losing out because of "Mis-application of
Technology". Instead of Technology being a facilitator for better functioning,
Technology at ICICI has become a hindrance for its core business objectives.
Today, an operator in ICICI Bank is unable to generate an e-mail account
statement for a month if the number of transactions of the customer during the
month is less than 3!!!.
Why?
Somebody who configured the system was told that sending e-mail statement to a
customer is either unnecessary or un economical if the number of transactions is
not 4 or more during a month. Obviously, the person who gave such an idea must
be totally unaware of what is Banking?. He/she also does not understand the
legal consequences of not informing the customer about the changes in the
account balance and probable loss or damage that may be caused to the customer
on account of such a lapse.
To Compound the inability to send an e-mail statement, the Bank has no
accessibility for its customers since the Customer Care Call centers are nothing
but sand pits for dumping customer queries. The Bank does not understand that
every action of the Customer Call Center operator is a representation of the
Bank and both legally as well as in terms of the image, the activities of these
operators are binding on the Bank.
The so called Internet Banking has been a disaster right from the beginning
since it was so secured with passwords that no customer could use it
conveniently.
There are many customer experiences to which links are provided at the end of
the article to come to the conclusion that the Bank has been experiencing a
variety of Customer service problems for quite some time now.
It is clear that ICICI Bank does not realize that Technology is a tool with
which the business objective of an organization can be achieved faster and more
economically. The way technology is being used by ICICI Bank, it is
putting off customers and creating a huge gulf between the Banker and the
Customer. The Bank is "Technology Bound" rather than "Technology Driven". The
current generation of Bank staff appear to be unaware of "Banking" and are not
Bankers but are only "Key Board Operators". They are unable to understand and
appreciate that behind the Computer screen, there is a Customer for whom the
Bank exists. A Customer who is not dependent on the Bank but on whom the Bank
is dependent. A Customer who is not an interruption to the Bank's work but
is the reason for the Bank's work. A Customer who should be the King and not the
servant of the servant.
It appears that the traditional bankers like Mr Kamat who brought the Bank upto
its current status are no longer in control of its functioning and the new
generation which has taken over is probably Tech Savvy but not Banking
savvy.
If this trend continues, the future of ICICI Bank is in jeopardy and the
proposed IPO will be a big disaster for investors.
What ICICI Bank needs now is an "Image Audit" and "Technology Audit" so that
some steps can be taken to improve the sagging image of the Bank.
