The Complete Technical Analysis Business Model Of ICICI Bank You Must Know!

If you are looking for a detailed explanation of the business model of ICICI Bank, you are at the right place!

ICICI Bank is a dominant private sector bank in India – It is known as the best bank for customers and employees. ICICI Bank was incorporated in June 1994, the time when it was the start of the commencement of Indian private banks in the country. 

Their vision is to be the main company of economic offerings in India and a prime worldwide bank. The Mission of ICICI is to leverage our people, technology, pace, and economic capital and to be the banker of the primary preference, for their clients through turning in high-quality, world-magnificence products, and services.

The business model of ICICI Bank will cover the Capital, Value drivers, Core Business activities, and Outcomes in addition to this the business model of ICICI Bank will also cover the business strategy of ICICI Bank.

About ICICI Bank

Industrial Credit and Investment Corporation of India (ICICI) Bank Limited comes under the Indian financial services company category. ICICI Bank has a registered office in Vadodara, Gujarat, the place where the ICICI Bank was incorporated, and its corporate office in Mumbai, Maharashtra. Its consolidated total assets were Rs. 14.76 trillion on September 30, 2020. At present, the bank has a connection of 5,288 branches and 15,158 ATMs across the country. ICICI Bank is perfectly working in 17 countries.

Top Competitors of ICICI Bank

• State Bank of India (SBI): As the largest public sector bank in India, SBI is one of the primary competitors of ICICI Bank. It boasts an extensive network of branches, making it easily accessible to customers across the country. SBI’s diverse range of products and services, coupled with its government backing, positions it as a formidable competitor in the banking industry.
• HDFC Bank: As one of India’s leading private sector banks, HDFC Bank is a strong contender that closely competes with ICICI Bank in terms of market share and customer base. Known for its customer-centric approach, HDFC Bank has gained a reputation for providing innovative and user-friendly banking solutions. Get to know more through the marketing strategy of HDFC.
• Axis Bank: A prominent private sector bank, Axis Bank, has established itself as a strong competitor to ICICI Bank. Its robust product offerings and a focus on retail banking have contributed to its growth and popularity among customers.
• Punjab National Bank (PNB): As a significant public sector bank, PNB competes with ICICI Bank across various banking segments. With a rich history, extensive experience, and good tactics in the industry, PNB remains a formidable rival in the Indian banking landscape.
• Kotak Mahindra Bank: Kotak Mahindra Bank is a rapidly growing private sector bank that poses a noteworthy challenge to ICICI Bank, particularly in urban markets. The bank’s commitment to technological innovation, strategization, and customer service has helped it gain a strong foothold in the competitive banking sector.
• Yes Bank: Yes Bank, a private sector bank, has been steadily expanding its presence and product range. Although it faced some challenges in the recent past, its growth trajectory indicates that it is determined to compete with established players like ICICI Bank in the Indian banking space.

What’s new with ICICI Bank

Following is some current news about ICICI Bank:

• “ICICI Bank’s Rs 1,000 Crore Loss Revealed in CBI Charge Sheet, Linked to Credit Facilities Extended to Videocon Group”                
• “ICICI Bank’s Humanitarian Gesture: Extends Rs 1,200 Crore Contribution to Tata Memorial Centre”
• ICICI Bank Declares Dividend of 400% per Share, Delighting Shareholders
• ICICI Bank gets RBI nod to increase share in ICICI Lombard subsidiary by up to 4%

Now that we have insights about the company let us understand the target audience of ICICI Bank.

Target Audience of ICICI Bank

Professionals and ordinary wage earners seeking quicker and more accessible banking services make up the majority of ICICI Bank’s clients. The majority of the clientele are of varied ages, hail from middle- and upper-class origins, and are employed in a range of occupations and sectors.

Check out the buyer persona of ICICI Bank given below:

Now, let us start studying the business model of ICICI Bank. We first have the product, services, and payment gateway of ICICI Bank.

Business Model of ICICI Bank

A private bank created out of the mixed venture between public and private funding, the business model of ICICI Bank is a hallmark of public good done without compromising profits. To start decoding the business model of ICICI Bank, let us start by taking a look at their product and service offerings.

1. Products of ICICI Bank:

• Saving account 
• Family wealth account
• Home loans 
• Car loans 
• Personal loans
• Foreign exchange services
• Demat account 
• Investment
• Insurance
• Wealth Management
• Rewards
• Cards

2. Services of ICICI Bank:

• Mutual fund transaction platform
• I-wealth
• Lockers
• I-mobile
• Smartvault
• E-locker
• I-track
• Video banking app

3. Payment Services of ICICI Bank:

• Money transfer –  ICICI Bank Pay, UPI, NEFT, IMPS, and ForeignTransfer 
• Utility payments
• Recharges
• Loan /card payment
• Payment services
• Tax and GST

4. Capitals

The business model of ICICI Bank is robust and encompasses various types of capital, enabling its success and growth in the financial industry. 

• Financial Capital: ICICI Bank maintains a strong balance sheet, ensuring financial stability and allowing for consistent growth. The bank’s prudent financial management and strategic investments have resulted in impressive shareholder returns, making it an attractive choice for investors.
• Human Capital: A key driver of ICICI Bank’s success is its highly skilled and dynamic workforce. The bank places great emphasis on attracting, developing, and retaining talent with diverse skill sets and valuable experiences. This ensures that the bank remains adaptable and innovative in a rapidly evolving industry.
• Intellectual Capital: ICICI Bank fosters a culture of innovation and creativity, enabling it to develop unconventional products and services that provide customers with a superior banking experience. Leveraging technology and market insights, the bank continuously refines its offerings, staying ahead of the competition.
• Manufactured Capital: The bank has invested significantly in building a vast network of ATMs and digital channels, creating seamless touchpoints for its customers. This extensive infrastructure enhances customer convenience and accessibility, strengthening ICICI Bank’s position as a customer-centric institution.
• Social and Relationship Capital: ICICI Bank is committed to empowering society through various initiatives and promoting a positive financial ecosystem. The bank’s efforts extend to both its employees and customers, ensuring a sense of responsibility and inclusivity. By fostering strong relationships with customers, the bank gains trust and loyalty, further bolstering its reputation.
• Natural Capital: Recognizing its impact on the environment, ICICI Bank implements sustainable practices in its business operations. The bank takes steps to minimize its ecological footprint and aligns its activities with environmental conservation, contributing to a greener and more sustainable future.

5. Business Activities 

Core business activities are the activities that show the performance of the bank. Here’s a look at how ICICI Bank is performing its core business activities by providing the following products and services :

• Providing savings products.
• Providing credit facilities to help consumption and better flow of economic activities.
• Enhancing business capabilities by making proper investments and strategic partnerships. 
• Facilitating payments and transactions seamlessly.
• Enabling wealth creation and wealth management.

6. Strategic Focus Areas for Business

• The bank is focusing on customer satisfaction, creating values and deeper relationships with customers.
• In the operating profit area, the risk of the bank is balanced and calibrated.
• The bank is working on the principles of ‘One Bank, One ROE’ and ‘Fair to Customer, Fair to Bank’.
• The bank is constantly investing in technologies, exploring innovative ideas, and gaining partnerships to sustain the lead.
• The bank is maintaining comfortable levels of capital at all times.

7. Growth Drivers

• A strong franchise and brand drive customers to ICICI Bank.
• Constant development in the field of products and services.
• Massive risk management system and compliance culture.
• Growing opportunities in the Indian economy.

10. Guardrails of Risk & Compliance

• Credit
• Market
• Liquidity
• Operational
• Information Technology
• Cyber
• Legal
• Reputation
• Compliance

After understanding the business model of ICICI Bank without any further ado, let’s directly dive into the business strategies of ICICI Bank.

Business Strategies of ICICI Bank

The business strategy of ICICI Bank is to grow core operating profits within the guardrails of risk and compliance. Making the right use of technologies at the right time is making the bank become the top private bank in the country.

The bank is leveraging its technological capabilities and astounding offers of financial products and services to create value for its customers. Additionally, this bank has always performed well in being customer-centric by providing the best service across the country.

Let us have a brief understanding of the key business segments of ICICI Bank.

Key Business Segments of ICICI Bank

• Retail and Rural Banking
• Rural and Inclusive Banking
• Small & Medium Enterprises and Business Banking
• Wholesale Banking
• Transaction Banking
• International Business
• Government Banking

Open to the last aspect, we have the reasons for the success of ICICI Bank.

Reasons For Success

• Customer Centricity
• Technology at the core
• Architecting for tomorrow
• Focus on Data, FinTech, APIs, and Ecosystems
• Cyber Security
• Doing business responsibility. 

Here we see that ICICI Bank has followed tremendous ways to keep itself at the top of all the private banks across the country.

Therefore with this, we come to an end of the Business Model of ICICI Bank.

Conclusion

ICICI Bank has provided astounding promising services to its customers. Being a private bank, the bank has earned tons of trust from its customers by following customer-centric principles which helped the bank to gain a huge customer base across the country.

Using technologies in the right way and at the right time and making banking facilities easy for customers by optimizing digital platforms, ICICI Bank took the lead from all the other banks in the country. 

The bank emerges with various financial and banking products and services that enable it to develop its business seamlessly. ICICI Bank facilitates banking services not only in urban areas but also diversified it to rural areas across India. ICICI Bank is holding a very powerful position in private banks across the country. The bank is also known for fulfilling all the CSRs. 

ICICI Bank is following a subtle business model of banking and marketing which helped it to become the best private bank in the country.

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