The Man Who Redefined the Way of Indian Shopping

Within a span of few years Flipkart has become a frequent destination of shopping for millions of Indians. The man behind this giant Indian shopping portal is Sachin Bansal who is an internet entrepreneur. He is the cofounder and CEO of the Flipkart which is redefining the ways of Indian shopping in an innovative and remarkable manner. Sachin had started this online shopping portal along with his business partner Binny Bansal and today they are leading a business which happens to have gross revenue of US$1 Billion.

The Beginning

Sachin had worked with Techspan, an IT firm in Bangalore after the completion of his degree from IIT Delhi in 2005. Later on he moved to Amazon where he met Binny Bansal and at that point of time Amazon was building Amazon Web Services with the aim of powering the start-ups in the United States Of America. He along with his friend took the grave decision of leaving the job and concentrating on building an online venture of their own.

After performing an intense research in the field of shopping habits of Indians and the e-commerce, they undertook the giant step starting Flipkart from scratch with just lakh of initial investment. They took a seemingly greater risk wherein they were about to bring the first online shopping experience for the Indian customers whose shopping behaviour were completely from that of western counterparts. They created custom solution by integrating dynamic strategies to make Flipkart successful in India. Cash on Delivery as a made of payment is an innovation of Flipkart which was soon followed by other online shopping portals.

Flipkart Is A Distinct Entity In Its Own

Sachin had stated that Flipkart shouldn’t be compared with major players like Amazon as both of them work in different spheres as well as the customer behaviour is also distinct. Sachin believes that Indian e-commerce scenario is in learning and adapting phase and probably it is at the similar stage what Chinese ecommerce was nearly eight years ago. Flipkart had started with selling books later forayed in different categories and urgently it is valued at astonishingly 10,000 crore.

One Of A Kind Shopping Experience

Flipkart had earlier given a unique shopping experience to the Indian customers with its ‘Big Billion Day’ sale in October. This day was characterised with whooping discount across the various range of products sold on this shopping portal. Flipkart happened to achieve a jaw-dropping $100 millions in sale within ten hours on this day. Though this event was also marred with server related issues due to large amount of web traffic as well as wrong product listing but Scahin Bansal saw it as an experiment which went successfully at the end of the day.

Currently India’s e-commerce sphere is still growing and interestingly just 10% percent of the population is engaged in online shopping. But with passionate guidance and leadership of the Sachin Bansal is sure to open up some new avenues for the online shopping in coming years. Scahin is all set to take his company to new heights and he is adamant from selling of its company ever.

Issues in Online distribution channel for home loans Part.III

A benchmark conducted by a team with 40 European banks shows a great diversity of practices in terms of distribution of mortgage lending by the web channel. Found mostly sites of contact and very few institutions offering the user advanced tools for construction financing plan with pre-approval online. France and US stands out however as the countries with an average of more advanced practices, with two banks offering their customers or prospective users the opportunity to mount their application for funding from home, but with photocopies of supporting documents, so submission e mandatory. So even if the actors historically oriented web services offer the most successful online, no one can apply for funding complete 100% electronically. The flexibility to expand its online offering is important and is still a good differentiators.


Developments in the web channel for home loans suggests, we ultimately opportunities for reconfiguration of the industry and a place for new players. Why not imagine a model of market-place, full service construction financing plan and dematerialization, allowing the user to file a single folder (90% of the data and documents necessary for the formation of a funding application is identical from one institution to another)? This market-place could be facilitated by an intermediary, broker or bank. For a subscription system, banks are accessing the virtual platform and choose the files according to their risk profile to ultimately send their best offer on the reverse auction model. Thinking with enough foresight will offer interesting prospects for banks, especially on aspects of pooling resources or site management for third parties.

Clearly, the outsourcing of customer relationship for housing loans, for what it has advantages for the bank and its customer focus the attention of sales management in the periods ahead, encouraged by the advent of canals Low cost. With this major issue related and related to the sale of real estate loans: Do not lose the client relationship, the product of conquest remains a unique tool for banking services in the retail catalog.

Issues in Online distribution channel for home loans Part.II

Its conquest remains a challenge because it disrupts people's attitudes. The relative complexity of mortgage lending has ruled for a time of digital distribution. Banks still mostly stick to a limited use of the web channel as a simple contact tool prospect, with some simulation tools and online advice. Involved, many documents to provide, the importance of the intermediation of an adviser, the number of players entering the game (underwriters, notaries, ...), the risks of fraud, loss of opportunity for contact client and therefore cross-selling.

The lifting of legal constraints: a condition indispensable not for customer relationship management 100% remote

The law on the protection of the borrower and governing the loan offer and the terms for conclusion of the contract, still imposes a relationship postcard (postmarked authentic) between the client and the bank to the steps of sending the offer to the customer and acceptance by the latter. But it lacks little for a relationship 100% distance and electronic submission is possible until the funding request by the client.

Indeed, while the tools necessary to assemble the financing plan online (sophisticated simulators, engine stand for regulated loans, scoring tools for pre-agreement ...) are now available online, building a complete application for funding still faces barriers to taking legal recognition of electronic documents, and simply the fact that they are still uncommon. But dematerialization at source is a proof of evolution programmed, evidenced by the development of bills or bank statements electronic or upcoming launch of the NIEC (National Identity Card Electronics). Devices associated with electronic safes, these documents dematerialized at the source will forward copies of the disappearance, the latter often requiring agency passages, many manipulations and visual controls, with a controlled level of risk months.
Finally, we can assume that the law limiting Scrivener to date the complete dematerialization chain soften granting the benefit of such electronic signature, recognized for over ten years as having the same value as a handwritten signature.

Issues in Online distribution channel for home loans Part.I

How to make a prospect or client to be autonomous in the construction of its real estate financing plan? Or even how the economy of many supporting documents? These are a few issues of the dematerialization of the customer relationship applied to the distribution of credits by the web channel habitats.

The challenge worth noting, as the benefits are numerous web channel, for both the bank and the customer:

    * Reduce distribution costs by shifting by the user part of the inquiry process 
    * Limiting the use of physical network infrastructure
    * Provide faster response times, major differentiating the market

The benefits are plentiful, and are now well identified.

What are the issues and therefore the remaining barriers to be overcome to capture the opportunity that is developing the web channel for the distribution of housing finance products?

Online brokerage, through everyday banking and savings, operating the web channel for the distribution of financial products has greatly expanded. After the democratization of the device for consumer loans, it is logical to think that home loans will naturally follow the trend.

And since 42% of bank customers will use banking services online by 2013.  Further stress that in 2009, 17.9% of those who are under 30 years had a housing loan, cons about 9% in 1999. Familiar and major users of new Internet solutions, the 18-30 age segments are mature, ready for distribution of product through the web.
Banks must be careful and think about the development of this channel for the distribution of mortgages, especially since it is a technological showcase for a ticket and a relatively modest technology is now well controlled in nationalized banks. 

Cont.