CASE STUDY 1

MEASURING CUSTOMER SATISFACTION IN THE BANKING INDUSTRY

Read the following case and answer the questions based on it.
Banking operations are becoming increasingly customer oriented. The demand for 'banking
supermalls' offering one-stop integrated financial services is well on the rise. The ability of
banks to offer clients access to several markets for different classes of financial instruments
has become a valuable competitive edge. Convergence in the industry to cater to the changing
demographic expectations is now more than evident. Bank assurance and other forms of cross
selling and strategic alliances will soon alter the business dynamics of banks and fuel the
process of consolidation for increased scope of business and revenue. The thrust on farm
sector, health sector and services offers several investment linkages. In short, the domestic
economy is an increasing pie which offers extensive economies of scale that only large banks
will be in a position to tap. Customer Satisfaction in Commercial Banks with the phenomenal
increase in the country's population and the increased demand for banking services; speed,
service quality and customer satisfaction are going to be key differentiators for each bank's
future success. Thus, it is imperative for banks to get useful feedback on their actual response
time and customer service quality aspects of retail banking, which in turn will help them take
positive steps to maintain a competitive edge.
Questions:1. Discuss the importance of Customer engagement in Banking Industry
2. What do you understand by Banking Supermall. Please Elaborate.
3. Please prove your suggestion for improvement of customer satisfaction in Banking
Industry.

CASE STUDY 2
HDFC BANK (INDIA)

Since its incorporation in 1994, HDFC Bank has grown to become one of the Big Four banks
in India. Its three main lines of business are wholesale banking, retail banking and treasury.
This Mumbai-based company operates more than 2,500 branches across India and caters to a
customer base of 26 million.
HDFC BANKTREASURY The treasury arm of HDFC Bank manages both in-house and
corporate client accounts. Internally, the team manages net interest earnings from the banks
investment portfolio, money market borrowing and lending, and gains or losses on
investment operations, including those from trading foreign exchange and derivative
contracts. Treasury advisory services for corporate clients involve hedging currency risks and
raising loans in foreign currencies. Accordingly, improved trade volumes and better trading
execution are key to the success of the group.
CUSTOMER CHALLENGE HDFC Bank Treasury group was using a desktop solution for
FX derivative trading. The system could not keep up with the increasing volume of trades or
easily generate reports. Data is essential, but the desktop solution had limited views and
analytic capabilities. Many processes were manual and required time-consuming data entry.
A tight budget made the idea of an enterprise-wide solution unthinkable.
THE BLOOMBERG SOLUTION The Bloomberg team provided a free consultation to
HDFC Bank to understand the customers needs and challenges. Several pieces of
functionality already included in the Bloomberg Professional service were highlighted to
meet the teams needs. These included a robust solution that helped them monitor real-time
environments with relation to Access to data and analytics to analyze market performance
and quantify risk in real-time
THE RESULT The Bloomberg team immediately set to work to implement the new system.
Bloomberg was our partner every step of the wayfrom our early discussions with sales to
implementation and training. We received customer service support till we had comfortably

transitioned into using the new functionalities. Akshat Lakhera Head of Interest Rates
and Options .
The amount of time spent on laborious tasks was greatly reduced, which freed the team to
focus on their core job. Report generation is now fast and seamless, with detailed analyses
across multiple parameters/variables. Traders are able to price option structures in a matter of
seconds on a real-time basis.
ABOUT BLOOMBERG DERIVATIVES Bloomberg offers a superior portfolio of highquality data and dealer-quality models for analyzing and pricing the full range of derivatives
and structured notes across foreign exchange, interest rate, inflation, credit, equity and
commodity markets. This solution is fully integrated with the robust communication and
additional analytical tools of the Bloomberg Professional service so you can accurately
quantify your market exposures, manage your workflow and communicate with your
colleagues and customers, all from one supremely capable desktop.
Questions:1. What were the challenges faced by HDFC bank in its initial years?
2. What solutions did Bloomberg advised?
3. What was the outcome of Bloomberg advice for HDFC?