Axis Bank: Banking on trust
Axis Bank’s unique distribution model enabled it to overcome a rebranding exercise with aplomb
It began life as UTI bank and used the once trusted, but then devalued, brand for 13 years and built up a brand equity independent of its parent. The country’s third-largest private sector bank then changed its name to Axis Bank and got itself a new brand identity a little over a year ago.
That was the biggest marketing challenge as trust is the critical component of any brand, especially in the financial services business. How did it overcome this challenge, and that too, in such a short span of time?
Its campaign “Twins both equal” worked wonders for it. Twins were shown to convey that UTI and Axis are one and the same thing. “We, as a bank, rank high on brand recall,” says Hemant Kaul, President & Head of Retail Banking at Axis Bank. That is also reflected in its financial performance; its net profits jumped 77 per cent to Rs 403 crore in the second quarter of 2008-09, at a time when many of its peers are struggling under the grip of slowdown. Clearly, the credit for this goes to its marketing team.
“We carry out a bi-annual survey to check the health of our brand. The last survey was carried out in April 2008, and showed an 81 per cent brand awareness, which is significant given that Axis Bank is a new brand,” says Kaul.
How did Axis Bank penetrate its customers’ minds in a crowded space with more than 80 banks? “Cutting-edge technology and our unique distribution model did the trick,” he explains, adding that financial products have become a commodity in today’s market. In order to avoid this “commodity trap”, the bank developed strong alternative channels, set up a differentiated sales model and created specific products for different customer segments.
The bank’s biggest marketing vehicle is its ATM network of over 3,100 machines. The country’s second-largest bank, ICICI Bank, has 3,950 and HDFC Bank has 2,850 ATMs. The bank’s ATM strategy worked as it set up machines in key locations like railway platforms in Mumbai. It has also been using its Internet banking model for greater penetration. “We have a large suite of features and functionalities on our Internet portal,” says Kaul. Over the last 12 months, Axis Bank has added new functionalities on its Internet platform—like NEFT (National Electronic Funds Transfer), which allows customers to transfer funds to other bank accounts; and also On-line Fixed Deposit Request.
Axis Bank’s physical marketing strategy is also very different from those followed by most other banks. It invested in building its own force of marketing agents and consciously opted not to hire DSAs as many other banks did to originate business fast. “This not only helped improve productivity, but also brought in good quality customers,” says Kaul.
So, what’s in store for future? New generation mobile banking will clearly be on centrestage to reach every nook and corner of the country. Then, on the anvil is the aggressive cross-selling of banking products to its 10 million customers. “That’s a big opportunity for us,” says Kaul, whose bank is adding 300,000 new customers every month. Axis Bank is clearly on the fast lane and the explosive growth in business is all the more creditable given the mood of pessimism all around. “I’m not an economist, but we haven’t seen any slowdown yet,” Kaul signs off.
—Anand Adhikari
Axis Banks Kaul
Its campaign “Twins both equal” worked wonders for it. Twins were shown to convey that UTI and Axis are one and the same thing. “We, as a bank, rank high on brand recall,” says Hemant Kaul, President & Head of Retail Banking at Axis Bank. That is also reflected in its financial performance; its net profits jumped 77 per cent to Rs 403 crore in the second quarter of 2008-09, at a time when many of its peers are struggling under the grip of slowdown. Clearly, the credit for this goes to its marketing team.
“We carry out a bi-annual survey to check the health of our brand. The last survey was carried out in April 2008, and showed an 81 per cent brand awareness, which is significant given that Axis Bank is a new brand,” says Kaul.
How did Axis Bank penetrate its customers’ minds in a crowded space with more than 80 banks? “Cutting-edge technology and our unique distribution model did the trick,” he explains, adding that financial products have become a commodity in today’s market. In order to avoid this “commodity trap”, the bank developed strong alternative channels, set up a differentiated sales model and created specific products for different customer segments.
The bank’s biggest marketing vehicle is its ATM network of over 3,100 machines. The country’s second-largest bank, ICICI Bank, has 3,950 and HDFC Bank has 2,850 ATMs. The bank’s ATM strategy worked as it set up machines in key locations like railway platforms in Mumbai. It has also been using its Internet banking model for greater penetration. “We have a large suite of features and functionalities on our Internet portal,” says Kaul. Over the last 12 months, Axis Bank has added new functionalities on its Internet platform—like NEFT (National Electronic Funds Transfer), which allows customers to transfer funds to other bank accounts; and also On-line Fixed Deposit Request.
Challenge: Re-branding UTI Bank as Axis Bank |
So, what’s in store for future? New generation mobile banking will clearly be on centrestage to reach every nook and corner of the country. Then, on the anvil is the aggressive cross-selling of banking products to its 10 million customers. “That’s a big opportunity for us,” says Kaul, whose bank is adding 300,000 new customers every month. Axis Bank is clearly on the fast lane and the explosive growth in business is all the more creditable given the mood of pessimism all around. “I’m not an economist, but we haven’t seen any slowdown yet,” Kaul signs off.
—Anand Adhikari
