B-PRO 2.

0
Wipro’s exclusive business innovation challenge

Team Trekkers- IIM Lucknow

Kedarnath Bisi Udayjeet Sinha

Surbhi Parmar
Surbhi Parmar

B-PRO 2.0
 Consumer Research User Personas and Pain Points

UPI Frequency
XYZ National Bank, Delhi
Bank Visits
22% 17% Once a month 3-4 times a day
21% 100k+ retail customers, 150+ corporate customers Consumer
Goals: To become the market leader by attracting deposits & Research &
Primary Research

Once a year 22% 57% Once a week developing them in order to achieve the best financial return for Pain Points
61% shareholders and depositors
3-4 times a year Once a day Target
Pain points: Unable to retain customers due to higher TAT for loans
Market &
and higher interest rates when compares to competitors. User
Primary research benefits
Bank App Usage

1% 3-4 times a week engagement for the bank application is very low due to UI issues in
12% Don't have an app conducted via google comparison to UPI applications for transactions
32% forms (90 Launch &
Multiple times a day
24%
Once a month respondents). Few Comm.
Once a week insights displayed. For Primary Research Rajesh, Age: 29, Teller, PQR Bank Kolkata Strategy
12%
8% Once a year more info click on Goals: To grow up the ladder in his bank and become a branch
11% Once in a day excel icon manager by providing excellent customer service and assistance Product &
Pain points: Finds difficulty in counting cash using the machines Services
installed in the bank which sometimes even lead to customer
Even after PMJDY, 56% Indian population does NOT have active Bank
bank accounts due to the following: frustration. Feels awkward for asking for identification every Market
Accounts time from the customer and in some cases finds it difficult to Share
Secondary Research

Physical access: (only 6.2 commercial bank branches/1L) Banks explain the cash-policy to its customers especially senior citizens Analysis
find it hard to maintain branches with low amount and volume
of transactions. Strategic
Roadmap &
High Maintenance Charges: In a low-income country like India, Priyanka, Age: 38, Teacher & mother of 2 kids, Customer of
Fin Projections
high costs like Cash Handling (Rs. 50-150/txn.), IMPS charges EFG Bank, Indore
(Rs. 1-25), Card Replacement charges (Rs. 50-500) etc. & other 88% 44% Goals: To become financially independent before 45 and start a Socio
hidden charges can push customers away kindergarten school on her own Economic
Pain points: Isn’t tech savvy and hence finds it difficult to use Impact
Low Financial Literacy: Average financial literacy score are the application of her bank. Is not happy with her bank’s IVRS
11.9/21 (data submitted by FinMin to RS), thus most don’t system which makes her confused with the number of options
understand best use
and is not able to get assistance for which she made the call in
90% Indian population (also MSMEs) don’t have access to Active Bank the first place

B-PRO 2.0 financial credit Accounts

 Alpha should target B2B segment (Major banks , FinTech & Insurance firms) for more growth & profit
Rationale Value
~97000 Banks + Insurance firms
(Including rural cooperatives) Total No of Major Banks (Public + Private+ Foreign+ 136
Regional Cooperative) + Insurance + Fintech Consumer
Target( 70% business contribution) 65 Research &
Target Pain Points
Banks & Total Volume of transactions from 65 banks 30598.26 Mn
Firms 65 Target
Total value of transactions through digital payments 1014332319 Mn Market &
benefits
Total No of Major Banks (Public + Private+
Foreign+ Regional Cooperative) + Insurance + Alpha can provide essential benefits to banks Launch &
Fintech Comm.
Strategy
Lower operating Enable
costs
Kano Model for Banks B
microtargeting Product &
Identified Need Gap analysis for target market

A Services
Easy Compliance Digital Model
& KYC N allows scale
K Market
S Share
Access to data for Quicker product
Analysis
underwriting dev & integration
Strategic
Roadmap &
Fin Projections
C
Digital Model Socio
High Savings Rate U
Accessibility Economic
S
T Impact
Real time
Transparency O
availability
M
E
Servicing the R Low account

B-PRO 2.0 unaddressed S maintain. charge

 Marketin
Target Market Positionin Launch Product Post
Research g Channels g Launch Launch
Retention
Audience
Campaign
-Understand -Pen a positioning -Draft a Press -Work on SEO -Conduct the -Check for customer -Offer additional
-65 firms
consumer behaviour, statement Release strategy product launch on acquisition metrics features to banks
including banks,
pain points the channels (No. of banks based on customer
insurance &
-Compare & -Social Media -Use of influencers identified onboarded MoM) reviews
fintech firms
Launch Strategy

-Contribution of -Conduct a contrast features Marketing channels to target banking -Conduct RCA for
competitive analysis -Involve the CXO Consumer
70% with total & pricing with like LinkedIn, Twitter, clients -Check for customer features not
for pricing, quality suite Research &
transactional competitors FB and Instagram engagement metrics performing as
and features expected
Pain Points
value of Rs. -Focus on (No. of transactions
-Qualitative & -Blogs like PR relationship building -Track and monitor via bank’s -Offer discounts
1014 Trillion Target
-Need Gap Analysis quantitative Newswire, by attending for any crisis that app/month) and promotional
needs to be Market &
testing Consultancy.in banking events offers to the clients
managed benefits
Awareness
Week 1-2 Week 2-10 Week 10-12
Consideration Week 12-14 Week 14-16
Desire Week 16-17 Action
Post Week 16 Advocacy
Post Week 16 Launch &
Comm.
Communication
Objectives
Strategy

Product &
Communication Strategy

External Internal Services

Market
Sales/ Lead Customer Product Internal Share
Marketing Recruitment
Generation Service Development Collaboration Analysis
Strategic Aim App Usage Increase Prospects Reduce credits Competitor Intelligence Improve Communication Attract Talent Strategic
Roadmap &
Tactical Action YouTube Programmatic WhatsApp/Chatbots Instagram Salesforce chatter LinkedIn/Xing
Fin Projections
Outputs # Views/Comments #WhitePaper loads % Escalations Share of Voice/Feature # of posts by department Applicants/Role Socio
Economic
Outcomes App Downloads Increase in leads Reduced Credits Actionable Insights Collaboration Greater Hiring Choice Impact
Key Performance X# downloads per X# contact details per Reduce Credits by X% # of Actionable Insights per # of posts by department Average # of applicants
Indicators month month by 2022 quarter per month per role

B-PRO 2.0
 Alpha’s offered Products and Services
Service/Product Added Services/Products
Category
Differentiating using Technology
Must have 1. Cloud Transformation Consumer
2. Mortgage and Lending solutions using blockchain Client Oriented Process Oriented Research &
3. Modern cardless payment solutions and payment system transformation Pain Points
4. Digitization of consumer/corporate journey
Smart Target
5. Credit Analytics and RegTech risk & compliance RegTech Market &
6. Open Banking API for dashboards Contracts benefits
More the Better 1. Mobile Biometric and chatbots
2. Replacing Bank Branches with BaaS AI based IoT & GPS Launch &
3. Leveraging RPA and AI to automate processes chatbot Comm.
4. IOT and GPS enabled cash containers Cash Strategy
5. Leveraging Platforms & Monetizing Data helpline Containers
6. AI-based decision support system Product &
Delighters 1. Smart Contracts using blockchain Services
2. Use of AR/VR for transactions
3. Neo Banking Differentiating & lock in for the company
Market
4. Use of Metaverse
Share
Analysis
Hybrid Growth Strategy – In-house solutions and partnerships with fintech start-ups
GROWTH STRATEGY

Strategic
Collaboration combines Alpha’s technical expertise with Fintech Roadmap &
Collaborate & partnering with emerging
fintech startups that have already established companies’ composable banking capabilities and other analytics Fin Projections
their footprint in banking solutions solutions, allowing banks to leverage this opportunity to deliver Extend clients' ability to leverage
largescale transformations across the front and back end banking capabilities to increase Socio
efficiency, create outstanding customer Economic
Build strong
Build internal
strong banking
internal capabilities
banking capabilities experiences, and grow their business
Enable ready-to-use capabilities throughout the value chain to Impact
through
through investments in cutting-edge products
investments in cutting-edge products assist banks in complying with regulations more quickly and
andand
by utilising crowdsourcing
by utilising crowdsourcingplatforms
platforms generate new revenue streams

B-PRO 2.0
 Alpha can serve Business customers (B2B)
• Profitability of both the markets have been evaluated via two approaches:
o In Quantitative approach, TAM, revenue and profits have been estimated using
certain assumptions.
o In Qualitative approach, Porter’s 5 Forces framework has been used to
compare the profitability of both thesegments

Market size for digital banking sector from retail & commercial banks Consumer
Assumptions/Sources Research &
rbi.org.in ( Annual Report on No of transaction bank Pain Points
Total Volume of transaction 43711800000 wise )
Included all foreign banks ,Potential Private & Public Target
banks (https://www.ibef.org/industry/banking- Market &
Total Number of banks 65 india) benefits
% Volume of transaction from 65
banks 70% Launch &
Total volume of transaction from 65 Total Volume =Total Volume of transaction * % Comm.
banks 30598260000 Volume of transaction from 65 banks Strategy
Since 4 out of 5 forces are in the direction favorable to the
rbi.org.in ( Annual Report on No of transaction bank
Avg Value per transaction(in rupees) ~33150 wise )
industry, hence the industry is attractive Product &
Total Value of transaction through 1014332319000 rbi.org.in ( Annual Report on No of transaction bank Services
digital payments 000 wise ) Quantitative Approach- Till 2026 total serviceable address market
Margin of Alpha 0.03% Assumed 0.03% margin on every transaction is 549.06 bn Market
Qualitative Approach- Porters Five forces – 4/5 are favorable Share
Total expected revenue from retail &
commercial banks (Total Addressable Total revenue =Total Value of transaction * % On competitive map we are placing Alpha in High Vision & Analysis
Market) 3042 Bn margin Capability with initial medium market impact
Strategic
2022 2023 2024 2025 2026 Sources/Assumptions Roadmap &
Fin Projections
Total expected revenue from potential retail & Expected revenue from potential Retail and commercial banks * Growth
Socio
commercial banks (Total Addressable Market) 3042 3437.46 3884.33 4389.29 4959.9 Rate(Assumed: Earnings Growth Rate * Population Growth Rate)
Economic
Market Share 5% 6.10% 7.44% 9.07% 11.07% Assumed growth = 22% (CAGR) Impact
Total Revenue from Retail and Commercial Banks ($
Bn) 152.1 209.685 288.994 398.109 549.06

B-PRO 2.0 Quantitive Approach- Till 2026 total serviceable address market is 549.06 bn
 Developing Phase Growth Phase Maturity Phase
2022 2023 2026

Strategic Roadmap
2024 2025 2027
In-house Capability Focus on client acquisition Focus on client satisfaction
Development growth and client retention
Consumer
Partnership with Fin-techs for Marketing and Business Quality assurance and metrics Research &
banking solutions Development tracking Pain Points
Target
Choosing betn brick & Training required to shift Social Media Integration
Cyber Security Issues Banks operating in silos Market &
mortar, digital or both from legacy systems & Compliance
Barriers &

benefits
Solution

Organize workshops to SEO strategy for banks Central dashboards like supply
Cyber Security solution for LMS solutions to upskill Launch &
educate employees on use banks with regular security employees on ML/AI, with campaign chain control towers for cross
of automation & prevent management dashboard & department collaboration and Comm.
patch upgrade & BCP analytics and cloud
resistance sentiment analytics insights Strategy
computing

2022 2023 2024 2025 2026

Product &
Yearly profit chart for next 5 years Services
Total expected revenue from potential retail & commercial
3042 3437.46 3884.33 4389.29 4959.9
banks (Total Addressable Market)
Market
Financial Projections

Market Penetration 5% 6.10% 7.44% 9.07% 11.07%

Share
Total Revenue from Retail and Commercial Banks 152.1 209.685 288.994 398.109 549.06
Analysis
Total Cost Calculation
Human Resource Expense (₹ Bn) 17.3 15.57 14.013 12.6117 11.35053
Strategic
Roadmap &
IT Infrastructure Expense (₹ Bn) 55.50
Fin Projections
Office Overheads (₹ Bn) 7.605 10.4843 14.4497 19.90545 27.453
Cloud Capabilities cost (₹ Bn) 0.877
Socio
Economic
Marketing & Business dev. Expense (₹ Bn) 30.42 41.937 57.7988 79.6218 109.812
Impact
Total cost (₹ Bn) 111.702 67.9913 86.2615 112.13895 148.61553
Total Profits (₹ Bn) 40.398 141.694 202.7325 285.97005 400.44447 ROI of five years 203%
B-PRO 2.0
 Alpha Towards Sustainability Alpha would create social & economic impact for India by Digital
Transformation of its clients to better serve different segments
Increase cloud adoption for our banking clients from 13% to MSMEs Retail Users
21.9% (Growth of 11% annually) by the end of the next five years Consumer
Better product offerings & Increased reach (<10% Indians Research &
inventory have access to formal credit) Pain Points
Providing solutions to our banking clients which estimate their
customers carbon footprint by analysing their transaction data Target
Provide capital for technology Help Indians fill taxes, EPFO and Market &
upgrades MCA benefits
Cardless payment solutions using cybersecurity
Launch &
Empowering India’s 20% women Provide financial literacy Comm.
run SMEs services to Indians Strategy

Finally contributing to macro- Finally contributing to macro- Product &

Reduction of carbon emission by 88 % (Use 77% fewer economic impact economic impact Services
servers, 84% less power and tap into a 28% cleaner mix of
solar and wind power in the Cloud versus their own data Market
Share
centres)
Analysis
Provide personal finance management advices
incorporating sustainability to reduce their emissions People with Financially Strategic
MSMEs SMEs causing Generated Taxes filled
Reduce emission of avg. 150 CO2Eq carbon footprint per credit would literate Roadmap &
contributing 110 Mn+ data for would help
buy products customers Fin Projections
bank card to National workers’ targeted to increase
contributing make great
GDP welfare policies returns Socio
to GDP investments
Conclusion

Economic
Hence Alpha’s products would thrust trust building on both bank and its customer’s side. It would leverage India’s smartphone and internet penetration to reach Impact
more number of MSMEs and retail customers than its brick-and-mortar counterpart and would help create a positive social and economic impact for India

B-PRO 2.0
 Appendix

B-PRO 2.0
 Appendix 1 - Challenges and Rationale

Challenges Rationale
Choosing between brick and mortal, -Resistance from employees or support staff whose job would be replaced by automation
digital or both -Resistance from customers who want face-to-face interactions for loan applications/mortgages

Cybersecurity Issues -With increasing digitalization and cloud adoption, potential attack surface increases exponentially

Training to shift from legacy systems -Upfront investment required to train employees and support staff who are still using legacy systems

Social Media Integration -Customers using social media platforms to communicate with the bank would require additional investment to
make sure compliance and grievance redressal
-Securing Social media channels would also be a part of the digital transformation strategy which is a huge challenge
in itself

Banks operating in silos -Most banks operate in silos with little or no coordination within departments
-Resistance from departments to create a centralized database/architecture on cloud could be a
challenge

B-PRO 2.0
 Appendix 2: Industry & Geography analysis
Factor Weight China Middle East & North India Europe
North America
Africa(MENA)

Service
Market Size 9% 8 7 9 8 5
Avg Price Level 7% 5 5 9 3 6
Access to distribution 2% 4 4 5 4 9
Cultural Proximity 3% 3 3 6 3 9
Service Assessment 21% 1.24 1.15 1.72 1.1 1.32
Growth
GDP Growth Rate 4% 8 5 6 7 4
Population Growth Rate 11% 7 6 4 9 3
Market Growth Rate 15% 8 9 4 7 4
Growth Assessment 30% 2.29 2.21 1.28 2.32 1.09
Margin
Access & cost of resource 10% 8 8 3 8 4
Cost of technology 7% 8 7 6 7 6
Legal Regulation/bureaucracy 3% 7 2 5 5 7
Margin Assessment 20% 1.57 1.35 0.87 1.44 1.03
Risk
Foreign Exchange Risk 5% 3 3 7 3 9
Political Risk 3% 2 4 6 4 9
Competitive Risk 3% 3 8 3 8 3
Risk Assessment 11% 0.3 0.51 0.62 0.51 0.81
Sustainability
Environmental Sustainability 11% 3 3 5 3 7
Social Sustainability 7% 3 4 6 3 6
Sustainability Assessment 18% 0.54 0.61 0.97 0.54 1.19
Global Assessment 100% 5.94 5.83 5.46 5.91 5.44

B-PRO 2.0
 Appendix 3-Employee Cost Calculation
Objective – To find total Employee cost per year
No. of Entry level Mid Level Senior Level Total cost Sources/Assumption
Employees
Development Team 3000 ₹450 mn ₹700 mn ₹1000 mn ₹2150 mn https://www.ambitionbox.com/profile/softwar
(1500*0.3) (1000*0.7) (500*2) e-engineer-salary
Testing Team 1000 ₹350 mn ₹300 mn ₹650 mn https://www.ambitionbox.com/profile/test-
(700*0.5) (300*1) engineer-salary
Project Management Team 1000 ₹700 mn ₹700 mn https://www.ambitionbox.com/profile/project-
(1000*0.7) manager-salary
Product Management Team 1000 ₹1000 mn ₹1000 mn https://www.ambitionbox.com/profile/product-
(1000*1) manager-salary
Integration consulting team 1000 ₹1060 mn ₹1060 mn https://www.ambitionbox.com/profile/integrati
(1000*1.06) on-consultant-salary

Data Science & BI Team 2000 ₹300 mn ₹350 mn ₹1000 mn ₹1650 mn https://www.ambitionbox.com/profile/data-
(1000*0.3) (500*0.7) (500*2) scientist-salary
Business Dev. Team 2500 ₹300 mn ₹700 mn ₹1000 mn ₹2000 mn https://www.ambitionbox.com/profile/business
(1000*0.3) (1000*0.7) (500*2) -development-manager-salary
R&D Team 1000 ₹700 mn ₹700 mn https://www.ambitionbox.com/profile/r-and-d-
(1000*0.7) engineer-salary
Finance & Acc. Team 500 ₹350 mn ₹350 mn https://www.ambitionbox.com/profile/chartere
(500*0.7) d-accountant-salary
Legal Team 500 ₹425 mn ₹425 mn https://www.ambitionbox.com/profile/legal-
(500*0.85) counsel-salary
HR Team 700 ₹350 mn ₹300 mn ₹650 mn https://www.ambitionbox.com/profile/hr-
(500*0.7) (200*1.5) manager-salary
Senior Leadership 1000 ₹6000 mn https://www.ambitionbox.com/profile/director-
salary
Total Cost ₹17.3 Bn

B-PRO 2.0
Appendix 4- Infrastructure cost over 5 years
Category Cost Sources/Assumption
Hardware ₹154,565,335.59 Calculation source: https://azure.microsoft.com/en-
Software ₹70,497,297.98 us/pricing/tco/calculator/
Database ₹55,213,147,745.40
Data Centre ₹53,246,011.10
Networking ₹63,273,469.58
Storage ₹68,181.60
Total cost ₹55.5 Bn

Appendix 5- Cloud capabilities cost over 5 years (Azure)

Category Cost Sources/Assumption
Total Azure virtual machines cost ₹403357439 Calculation source: https://azure.microsoft.com/en-
Total SQL database cost ₹451800694 us/pricing/tco/calculator/
Networking cost ₹14382450
Storage cost ₹8106444
Total cost ₹0.877 Bn
Appendix 6- Total investment needed from Alpha’s Board
Objective – To find total investment needed from Alpha’s Board based on the cost occurred
2022 2023 2024 2025 2026 Sources/Assumptions
Human Resource Expense (₹ mn) 17.3 18.68 20.17 21.79 23.53 Average growth 8%
IT Infrastructure Expense ₹55.5 Bn
Power ₹0.0315 Bn Calculation source: https://azure.microsoft.com/en-us/pricing/tco/calculator/

Price of electricity per KWH = 6.15

Cloud Capabilities cost ₹0.877 Bn
Marketing & Business dev. Expense 3.042 Bn 4.19 5.77 7.96 10.98 2% of total revenue
Total Investment needed for 5 years ₹189.82 Bn

B-PRO 2.0
 Appendix 7 – Competitor Analysis

B-PRO 2.0