Kotak’s Rohit Bhasin on how FMCG-isation of banking is democratising BFSI sector

In conversation with Adgully, Rohit Bhasin, President - Retail Liabilities Product and Chief Marketing Officer, Kotak Mahindra Bank, delves into how product creation has been approached by banks from a supply-side perspective, putting a focus on features that they can offer and then identifying the customers who can purchase them. He also points out that earlier physical bank branches were the main source of deriving solutions and awareness, but with a digital-first approach, awareness is generated digitally, along with fulfilment. The digital-first approach stands for the future of banking, making the whole process more enjoyable and seamless for the consumers.

At Kotak Mahindra Bank, which at present stands as a digital-first, customer-centric bank, and is supported by the three pillars of Technology, Talent, and Consumer, Rohit Bhasin oversees the creation of product strategies backed by customer-centricity and steering a purpose driven brand strategy, augmenting the identity of the bank via modern and digital storytelling methods.

Bhasin is a marketing veteran with more than two decades of experience in building iconic consumer brands in India and Asia. He has spent over two decades of his career at Unilever, assuming numerous leadership roles in marketing, digital transformation, and product management. He has successfully spearheaded many brands which include Dove, Fair & Lovely, and Vaseline. Previously he has served in Ponds, Singapore as the Global Brand Vice-President. He has led the digital transformation journey at Kotak Mahindra Bank via data-driven influencer marketing, resonating with the brand’s younger consumers. He has been bestowed with several marketing awards throughout his career which include those from the London International Awards, Cannes, Spikes Asia, Asia Ciclope Festival, and Effies.

He shared, “The noteworthy transition that has occurred throughout the years is the FMCG-isation of banking, wherein banking products can now be bought from the bank, just as one purchases FMCG products online. The huge shift in user behaviour in terms of payments moving from cash to cashless has brought ease of life.”

How do you view the role of customer-centricity within the banking sector? How does Kotak Mahindra Bank emphasise this principle?

At Kotak Mahindra Bank, many initiatives, including our product propositions, stem from this mindset of understanding and addressing consumer needs. The key point here lies in understanding the shift from supply-side to demand-side thinking. Traditionally, banks have approached product creation from a supply-side perspective, focusing on features they can provide and then finding consumers to buy them. However, a consumer-centric approach begins with identifying the needs of the target audience and then designing products to meet those needs. It's about starting with the consumer at the heart of product creation.

What are your observations on the shift in banking towards a digital-first approach?

Digital serves two main roles: a channel for product consumption as well as for product awareness. Previously, physical branches were the primary source of both awareness and fulfillment. Now, with the digital-first approach, awareness is created digitally, and so is fulfillment. Consumers not only apply for products but also complete transactions online, without the need to visit a physical branch. Our mobile banking app plays a crucial role in this, offering a range of services from balance checks to money transfers to insurance purchases. Therefore, the digital-first approach represents the future of banking, making the entire process more seamless and enjoyable for customers.

How do you view the evolution in banking industry through the years?

The biggest change that has taken place over the years is the FMCG-isation of banking, wherein banking products can now be purchased from the bank, just as one purchases FMCG products online. Banking has now been truly democratized. From having to visit a branch in person for every single banking transaction, to accessing it all in a matter of a few clicks is no less than a transformation. A bank account can be opened at any time within a couple of minutes. Loans, Mutual Funds, Stocks, and more, are now available at your fingertips offering great convenience and saving time.The massive shift in user behavior in terms of payments moving from cash to cashless has brought ease of life.

Another aspect that has witnessed a remarkable change is the credit underwriting process, including assessing creditworthiness and analyzing risk. This used to be a manual process involving laborious documentation and it consumed significant time. Therefore, it took days or even weeks to get a loan disbursed. Now, the credit underwriting process is digital with algorithms, credit bureau scores, and credit history helping banks make quick decisions. Over the years, the focus is now on making it easier than ever to purchase a banking product with simple ‘journeys’. As banks, we need to continue doing this even more. Buying a financial product needs to be as simple as buying a soap online.

What have been the key lessons from your long journey in marketing?

Throughout my career, I have championed demand-side thinking. It focuses on understanding customers’ stated as well as unstated, latent needs and then building products accordingly. It is the job of a marketer to understand customer needs and build a product to meet those needs, better than the competition does. This is not about offering a laundry list of features or more features than the competition, but how can the product fulfill the customer’s need better than anyone else does? You should not start with the product features and then go on finding customers. Since joining the bank, I have noticed that the industry largely operates from a supply-side perspective. I believe the challenge is to shift towards demand-side thinking and prioritizing consumer-centric strategies.

When you have a differentiated product, you can spend on marketing to create awareness for the product so that customers can ask the RM, walk into branch, or use a DIY journey to get the product. This is the most important practice BFSI can learn from FMCG because BFSI does not spend enough on marketing to create awareness and communicate the distinct proposition of its products.

Could you tell us about Kotak Mahindra Bank’s marketing strategy and the way it encompasses the marketing mix?

By identifying key segments and understanding their needs, we tailor differentiated products. Marketing campaigns across TV, digital, and outdoor channels ensure our messages reach the right audience. Leveraging both physical and digital channels, we aim to effectively fulfill customer needs. Our goal is to elevate Kotak Mahindra Bank’s brand perception and position ourselves as a premier customer-centric institution. This philosophy extends across all product offerings at Kotak Mahindra Bank, aiming to create tailored solutions for each segment.

Could you take us through some of the recent campaigns of Kotak Mahindra Bank, such as ActivMoney, Kotak811, and the ‘Smart Choice’ gold loan campaigns?

For ActivMoney, Kotak Mahindra Bank has identified a proposition gap in the market. We observed that despite of offering competitive interest rates, a significant portion of funds remained idle in savings accounts rather than being invested to earn higher interest. Upon delving deeper, we discovered a deep-seated psychological inclination towards liquidity, especially in a country where people prioritize having spare cash for emergencies. We recognized the need to offer a solution that combines the comfort of liquidity with the assurance of higher interest rates. Thus, the "ActivMoney" proposition was born, offering the convenience of liquidity alongside the high-interest rates of a fixed deposit within the same account.

For the Smart Choice Gold Loan Product, Kotak Mahindra Bank identified a common perception that gold is a valuable asset to be held onto rather than utilized for financial needs. Despite Indians’ high ownership of gold, they rarely leverage it for loans due to cultural and psychological reasons. Our campaign aimed to change this mindset by highlighting the benefits of gold loans, emphasizing that it is a secure asset that can be utilized for low-interest loans, contrary to the common belief that it reflects financial desperation.

Additionally, we tapped into the insight that individuals often overlook their assets, such as gold, when in need of funds, and opt for higher-interest options instead. Through this campaign, Kotak Mahindra Bank aimed to educate consumers about the practicality and affordability of utilizing their gold assets for loans, thus bridging the gap between perception and reality.