Consumer Banking Case Study

Beginning with a comprehensive study of the mass market in India, Fullerton India segmented the market and identified two under-served segments: the self-employed and the salaried mass market. The salaried mass market consumer segment has about 28.5 million households, of which nearly two-thirds do not have access to banking services.

Performance Measure:

Rolled-out network of 280 Parivaar branches to cater to the salaried mass market by June 2008, within 18 months of launch

Tailor-made products and processes

The salaried mass market group at Fullerton India developed products and processes catering specifically to the needs of the salaried consumer. G. Venkatraman, Head- Salaried Mass Market, Fullerton India said, "Not many were familiar with the mass market in India where no organized financial services player had ventured into. It was necessary to understand the consumer behaviour in this segment and tailor make financial products and processes to cater to them."

Rapid implementation

A pilot conducted in 11 branches in 2006 allowed Fullerton India to validate the research and further refine the business model. The salaried mass market business, called Parivaar (which in the Hindi language means 'family'), was rolled-out to 220 branches by the end of 2007 and reached its targeted network of 280 by June 2008. Besides establishing physical branch infrastructure, Fullerton India recruited and trained about 6,000 staff by June 2008, a formidable task, with the network spread across 18 states having16 official languages and diverse regional cultures. As of June 2008, Fullerton India -Parivaar averages an acquisition rate of 1000 new customers each day.