Financial Services Marketing-B.V.Raghunandan

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Challenges and opportunities in marketing of financial services by Indian banks as presented by B.V.Raghunandan at Karnataka Bank Staff Training College, Mangalore

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Financial Services Marketing-B.V.Raghunandan

  1. 1. Financial Services Marketing -Concepts, Challenges & Opportunities -B.V.Raghunandan,SVS College, Bantwal Karnataka Bank Staff Training College, Mangalore . June 25, 2007
  2. 2. Compulsions <ul><li>Expectation of Corporates </li></ul><ul><li>Margin Under Strain </li></ul><ul><li>Non-Performing Assets </li></ul><ul><li>Asset-Liability Mismatch </li></ul><ul><li>Capital Inadequacy </li></ul><ul><li>Limited Investment Options </li></ul><ul><li>Regulated Interest Regime </li></ul>
  3. 3. Banks Are Standing Tall <ul><li>Network of Branches </li></ul><ul><li>Universal Access </li></ul><ul><li>Implicit Brand Equity </li></ul><ul><li>Professional Employees </li></ul><ul><li>Coverage of Both Urban and Rural Areas </li></ul><ul><li>ATM s As Channels of Delivery & Business Model </li></ul><ul><li>Reverse Merger of ICICI into ICICI Bank in 2003 </li></ul>
  4. 4. Requirement <ul><li>Employee Oriented Organisation </li></ul><ul><li>A Separate BPO Arm </li></ul><ul><li>Longer Hours of Work with Shifts </li></ul><ul><li>Appointment of Professionals </li></ul><ul><li>Subsidiaries & Strategic Business Units </li></ul><ul><li>Comprehensive Training to Employees on Financial Markets, Services and Derivatives </li></ul>
  5. 5. Requirement… Continued <ul><li>Economic Research </li></ul><ul><li>Changed Mindset for Seamless Remittance Facilities </li></ul><ul><li>A Bigger and Better Lobby for Banking Industry </li></ul><ul><li>More Freedom In Choosing Activities </li></ul>
  6. 6. Financial Services <ul><li>DP Services </li></ul><ul><li>Stock-broking </li></ul><ul><li>Banker to Public Issue </li></ul><ul><li>Merchant Banking </li></ul><ul><li>Credit Rating </li></ul><ul><li>Venture Capital Finance </li></ul><ul><li>Custodial Services </li></ul><ul><li>Insurance Services </li></ul><ul><li>Housing Finance </li></ul><ul><li>Mutual Fund </li></ul><ul><li>Lease Finance </li></ul><ul><li>HP Finance & Consumer Credit </li></ul><ul><li>Cash Management Services </li></ul><ul><li>Factoring & Forfaiting </li></ul>
  7. 7. Bank as Depository Participant <ul><li>Branch Network </li></ul><ul><li>Public’s Faith in the Banks </li></ul><ul><li>Regulators </li></ul><ul><li>Single Window for Banking , Stockholding & Obtaining Bank Finance (Easy Pledging) </li></ul><ul><li>Brand Equity of the Banks </li></ul><ul><li>Lesser Formalities for Introduction </li></ul>
  8. 8. Bank As a Stockbroker <ul><li>Professional Employees </li></ul><ul><li>Branch Computerisation & Networking </li></ul><ul><li>Single Window </li></ul><ul><li>Easy Opening of Account </li></ul><ul><li>Established Clientele </li></ul><ul><li>Corporate Clients </li></ul><ul><li>Easy Remittances </li></ul>
  9. 9. Banker to Public Issue <ul><li>Existing Service </li></ul><ul><li>Provided on the Principle of Turnover </li></ul><ul><li>Enhances Corporate Contacts </li></ul><ul><li>Puts Low Cost funds at the Disposal of the Bank </li></ul><ul><li>Attracts New Customers to the Bank </li></ul>
  10. 10. Functions of A Merchant Banker <ul><li>Issue of Securities </li></ul><ul><li>Mergers & Acquisitions </li></ul><ul><li>Financial Restructuring </li></ul><ul><li>Management of Investment Trusts </li></ul><ul><li>Portfolio Management </li></ul><ul><li>Loan Syndication </li></ul><ul><li>Corporate Advisory Services </li></ul><ul><li>Custodial & Depository Services </li></ul><ul><li>Underwriting </li></ul><ul><li>Investment Banking </li></ul>
  11. 11. Banks As Merchant Bankers <ul><li>Economic research </li></ul><ul><li>Creation of a Database of Corporates of the Globe </li></ul><ul><li>Appointment of Legal, Managerial, and Accounting Professionals </li></ul><ul><li>Continuous Working Out of Scenarios for Financial Restructuring and M & A </li></ul>
  12. 12. Banks & Secondary Markets <ul><li>Stock Broking & Commodity Broking </li></ul><ul><li>Bonds Trading </li></ul><ul><li>Stock Lending & Borrowing </li></ul><ul><li>Internet Trading </li></ul><ul><li>Issue of Credit Cards </li></ul><ul><li>Custodial Services </li></ul><ul><li>Lending on the Security of Stocks </li></ul><ul><li>Investor Grievances Cell </li></ul><ul><li>Auction Site for Unlisted Shares </li></ul>
  13. 13. Credit Rating <ul><li>Developing Internal Standards </li></ul><ul><li>Basel Norms </li></ul><ul><li>Rating the Customer </li></ul><ul><li>Providing the Services to Corporate </li></ul><ul><li>Clients </li></ul>
  14. 14. Banks & Venture Capital <ul><li>Database of Clients </li></ul><ul><li>Contacts with Various Industrial Customer </li></ul><ul><li>Professional Expertise in Fund management </li></ul><ul><li>Ability to Provide Any Financial Service </li></ul><ul><li>Contacts With Mutual Funds , Fund Houses and High Networth Individuals </li></ul>
  15. 15. Custodial Service <ul><li>Sale of Gold </li></ul><ul><li>Exchange Traded Fund </li></ul><ul><li>Mutual Funds </li></ul><ul><li>Investment Trusts </li></ul><ul><li>Corporate Clients </li></ul>
  16. 16. Bancassurance <ul><li>Only a Distribution Function </li></ul><ul><li>Premium Collection </li></ul><ul><li>Investor Counselling </li></ul><ul><li>Claim Settlement </li></ul><ul><li>Customer Relation </li></ul><ul><li>Almost Acting As a BPO Arm </li></ul><ul><li>Avoidance of Opening of Branches by </li></ul><ul><li>Insurance Companies </li></ul>
  17. 17. Finance <ul><li>Housing Finance </li></ul><ul><li>Lease Finance </li></ul><ul><li>Hire Purchase </li></ul><ul><li>Credit Card Finance </li></ul><ul><li>SME Finance </li></ul><ul><li>Micro finance </li></ul><ul><li>Vehicles Finance </li></ul><ul><li>Consumer Finance </li></ul><ul><li>Finance for Contract Farming </li></ul><ul><li>Finance for Organic Farming and Full Export Marketing Guidance </li></ul>
  18. 18. Corporate Services <ul><li>Cash Management Service </li></ul><ul><li>Factoring & Forfaiting </li></ul><ul><li>Bill Discounting </li></ul><ul><li>Short-Term Portfolio Management </li></ul><ul><li>Investment in Markets Seamlessly </li></ul><ul><li>Exim Market </li></ul>
  19. 19. ATMs-The Super Giant Banker <ul><li>All the Functions of a Bank </li></ul><ul><li>A Strategic Model </li></ul><ul><li>Universal Network Sharing </li></ul><ul><li>Payment of Utility Bill </li></ul><ul><li>Reservation of Every Kind </li></ul><ul><li>Subscription and Redemption of Mutual Fund Units </li></ul><ul><li>Subscription to Money Market Instruments ? </li></ul><ul><li>Subscription to Primary market issues ? </li></ul><ul><li>Purchase and Sale of Shares ? </li></ul>
  20. 20. Challenges <ul><li>Competition </li></ul><ul><li>Regulation by RBI & SEBI </li></ul><ul><li>Capital Adequacy </li></ul><ul><li>IT Challenges </li></ul><ul><li>Professional Training </li></ul><ul><li>Systemic Challenges </li></ul><ul><li>HR Problems </li></ul>
  21. 21. THANK YOU

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