As Federal Bank continues its collaboration with ace Indian shuttler, H.S. Prannoy, as the sportsperson’s exclusive banking partner, MVS Murthy, Chief Marketing Officer, Federal Bank provides insights into this partnership, the bank’s long-term vision, and more.
Q] What was the idea behind this collaboration with HS Prannoy? How do you plan to leverage the association in the long run?
Through this collaboration, we aim to spotlight the engine's internal workings, drawing parallels between the journey to becoming a champion athlete, and the status of the most admired bank and brand. Our communication strategy focuses on conveying these messages to customers, shareholders, and investors. This central message aims to connect with a younger audience inspired by Prannoy’s achievements while resonating with parents about the dedication required for budding athletes. Prannoy’s unique qualities enhance our brand image, forming a strategy that showcases the behind-the-scenes journey of a champion, aligning with our brand’s values.
Q] Do you have any campaigns in the pipeline with Prannoy?
Our campaigns strategically position the product on the periphery, embedding the brand essence in the narrative. For example, ‘Rishta Aap Se Hai, Sirf App Se Nahi’ delves into our service approach. Similarly, ‘End Dependence,’ an Independence Day short film, portrays a senior citizen paying for a DTH connection, reflecting our non-traditional transactions. Incorporating Prannoy into our campaigns follows a similar approach—strategically showcasing him celebrating or highlighting the brand and from a personal and functional standpoint, imposing him on a product without a compelling story risks campaign failure. We aim to create narratives with a human touch, organically introducing Prannoy. Unlike a straightforward approach, we infuse the human element, letting him share stories instead of merely being tied to a product. In summary, Prannoy will indeed play a role but expect innovation, focusing on storytelling and the human connection.
Q] According to the Deloitte Digital Banking Maturity survey, Indian banks outperform their global peers in digital maturity score compared to the global average. They also have the opportunity and potential to rise further and become ‘Digital Champions’ the report stated. What is your take on this and how is Federal Bank using Digital in its operations as well as consumer engagement?
Our unique approach, as highlighted in the report and observed in other countries, is that our citizens actively embrace and drive technological advancements. Unlike many nations where technology is discovered and then scaled up, our people lead the way. This dynamic aligns with our belief that understanding a culture indicates the source of change. As a nation, we are fortunate to have ambitious citizens propelling companies like ours to incorporate cutting-edge technology. The exceptional population density provides a phenomenal opportunity for technology to scale up, necessitating a focus on delivering an excellent customer experience. Specifically, Federal Bank stands as a leading player in the technology space, actively collaborating with various tech partners to contribute to the fintech ecosystem. Our strategy, ‘human at the core and digital to the fore,’ emphasizes the importance of personal interactions alongside technological advancements. The brand message, ‘Rishta aap se hai, Sirf App se Nahi,’ underscores our commitment to valuing face-to-face interactions, despite our strong focus on technology. In service-oriented businesses, technology enhances efficiency, but the core remains the human connection.
Q] As we discuss the digital landscape, how are you addressing the challenge of making your interface user-friendly, especially for older individuals and those who may not be tech-savvy?
The initial digital learning phase has occurred with consumers actively engaging on digital platforms. Hence, extensive training is unnecessary, even for our technologically savvy senior citizens, many of whom offer valuable insights. Seniors in their 60s have witnessed technology’s growth since the 1960s. Unlike two decades ago, when many seniors had limited exposure to technology, today’s seniors aged 60 and above, comfortably use smartphones. Smartphones are not only for banking but also for staying informed and watching videos, showcasing digital maturity. Consequently, there’s less stress associated with technology use among seniors who naturally navigate Digital platforms. Seniors’ adaptability to technology is noteworthy, posing a challenge for tech providers to meet their expectations.
Q] How much business do you generate through online channels, specifically your app? How does the synergy between digital and physical banking contribute to your overall strategy for success?
From a ratio perspective, a significant portion of our business comes from online account openings, proving beneficial in multiple ways. A successful business today doesn’t necessarily require the largest physical infrastructure; a robust digital platform for customer onboarding is key. We’ve seen consistent month-on-month and quarter-on-quarter growth in our digital business. Our physical business is also thriving and we’re expanding the number of branches to accommodate this growth. Our partnership with FinTech companies is crucial for reaching audiences we might have missed otherwise. Their efficiencies allow us to extend our presence beyond traditional locations. Our brand caters to a spectrum of customers, from those opening accounts for children to senior citizens. The synergy between digital and physical banking is evident; we emphasize service delivery for physical branches and top-notch customer experiences in the digital realm. This strategy positions us for success across both dimensions.
Q] How was the year 2023 for Federal Bank? What kind of growth have you seen in the last year?
As the seventh-ranked bank, we aim to break into the top five and become one of the most admired banks. In 2023, our bank gained considerable visibility without excessive advertising spending. We take pride in our smart efforts, exemplified by the campaign ‘Rishta Aap se Hai, Sirf App se Nahi.’ This journey is exciting and promising, with plans for increased visibility in the upcoming year. The marketing team is in a favourable position, receiving support from all levels of the organization. With confidence, I predict that we will emerge as the most exciting brand in the calendar year 2024.
