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FREE online courses on ECOMMERCE FUNDAMENTALS - E commerce Initiatives in
India - Retail banking |
In the retail-banking arena, both
ICICI and the HDFC are trying to become one-stop financial super-marts. In a bid to move all low value transactions
to the Net, ICICI is planning to set up Net kiosks. It is even encouraging
parents to open accounts for their children through the Net.
Both banks are planning to use the Net for utility bill
payments. At the end of each billing cycle, the electricity or the telephone
company will send the bill to bank where it will be composed electronically and
sent to the customer's account. When the customer logs into his account, he will
be presented with the bill and can order payment for it.
The ultimate aim of both, HDFC and ICICI is to make the
customer buy financial products like personal loans, car loans, housing loans
and even mutual funds on the Net. HDFC is contemplating tying up with e-traders
so that a customer is able to buy or sell shares online and make and receive
payments through the Net. ICICI is planning to get into the trade business
through a company called ICICI Webtrade.
The strategy is to lure the online shopper with payment
gateways. Once the buyer hits the pay button at a B2C portal, his credit card
details will get encrypted and travel to the Visa or MasterCard approval system
through the bank's payment gateway. HDFC has already
announced one payment gateway Netlive, with Porteco, an Indian company.
HDFC has a stake in a portal called easy2buy.com where the bank's customers can buy
using their account numbers. ICICI is planning to set up 20 city-specific
portals, the first of which is Cafemumbai.com.
On the B2B front, HDFC is offering
a Net banking service called Enet where it allows electronic fund transfers
(EFT) between a company, its vendors and dealers. The system will also offer
remote services in trade, cash management and forex transactions.
HDFC has got into a 60:40 joint venture with SESAMi.net, a
company in which Singapore Telecom has a stake, to set up an electronic
marketplace in India. ICICI is also working with Satyam Infoway's
Seekandsource.com to achieve the same end.
