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Paul Noronha

In comfort zone: The plush interior – bean bang, LCD TV et al - of a lounge in Bank of Baroda in Pune.–

Shobha Kannan

Mumbai, Sept. 25 The public sector banks are now gearing up to shed their dowdy image and introduce upmarket branches in order to tap the younger generation customers. They are looking at bringing the ‘luxury element’ to their branches to attract tech-savvy customers.

Senior officials at public sector banks feel that a majority of the affluent young customers flock to the new generation private sector banks.

“Even while the branch strength and reach of private banks is relatively lower compared to public sector banks, they grab a major share of the young people because of the technological comfort and fancy they provide,” said Mr T.S. Narayanasami, Chairman and Managing Director, Bank of India.

He, however, feels that public sector banks tend to perform better where their branches are in good locations, have a fine ambience and the staff highly proactive.

“We need to follow a customer renewal programme in order to tap the younger generation,” said Mr Sangeet Shukla, Chief General Manager, Personal Banking, State Bank of India.

He feels public sector banks face a major risk of losing out on this category of customers completely if they do not take adequate measures.

State Bank of India has also undertaken a branch renewal programme. “About 1,000 of our branches have already undergone changes,” said Mr Shukla.

SBI is also planning to introduce café shops, and mini library in some of its branches. “We already have similar things happening at our branches at IITs and IIMs,” said Mr Shukla.

The banks have taken various initiatives to make banking a pleasant experience for the generation next. While some of them have remodelled their branches and made their products and technology more accessible, others have trained their staff to meet the expectations of the young crowd.

Bank of Baroda has set up a Gen Next branch in Pune which has a ‘Yo! Zone’, where the customer can relax on a bean bag and catch up with a movie or his favourite sports channel on an LCD television apart from carrying out his regular banking transactions.

The branch at Pune also offers career counselling to its young clientele. “We did a survey on the career plans and ambitions of the younger generation and learnt that a significant number of them wanted to go abroad for their education, for which they required funds,” said Mr A.K. Khandelwal, Chairman and Managing Director, Bank of Baroda. The bank also conducts periodic seminars in association with the British Council Library, he said.

Based on the success of this branch, the bank plans to roll out similar initiatives in Bangalore, Ahmedabad, Delhi, Chennai and Baroda among others. “We are also planning to have one such branch in Mumbai, we might convert one of our branches in Church Gate area for the same,” said Mr Khandelwal.

Senior bankers feel that the age and psychology of their employees are not in synch with the needs of young consumers. “Though their experience surely adds value to the bank, there are certain areas that needs to be addressed,” said Mr M.V. Nair, Chairman and Managing Director, Union Bank of India.

Union Bank of India has tied up with management institutes like Narsee Monjee to train and sharpen the skills of their employees and make them competitive enough to work as relationship managers at branches.

The bank is also looking at a makeover of its branches in another two months. “We are targeting the makeover of about 250 branches on an annual basis. We would like to standardise the branches so that it becomes more like a sales and service centre,” he said.

More Stories on : Banking | Public Sector Banks | Strategy

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