CUSTOMER ENGAGEMENT | EDUCATION                       Promising                        a secure             Tomorrow      ...
Religare: A process presentation was also designed to train the in-house financial advisors at Religare Finmart         on...
Invest in Tools that Educate                                                                                  If there is ...
Sell the Concept along with the Product     Traditionally, different financial products have been     sold by different pe...
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Financial Planning Tools


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Case study of how innovative information tools can help in standardizing and scaling up financial service practice. This was featured in "Information Matters" a journal published by Synapse Information Services, where I worked for over 8 years and led the team that worked on this project. To know more about Synapse, visit:

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Financial Planning Tools

  1. 1. CUSTOMER ENGAGEMENT | EDUCATION Promising a secure Tomorrow Most people agree that financial planning is important, but few manage to move beyond mere thought to something actionable. How can financial services companies spur them into action? POOR level of Financial Literacy in India is a well-known problem. People put in a lot of effort in earning money but very few manage money well enough to create long-term wealth. Investment decisions are taken in an ad-hoc manner in the absence of a proper financial plan (or a process of meeting your life’s goals through proper management of your finances). At a conceptual level people agree that financial planning is important. But when it comes to implemtation very few manage to go from thought to action. how can we make it happen? Indians and Financial Planning 55 87% 73% 93% 82% 91%people do not plan do not have adequate have never invested do not understand what believe that the govt.for their retirement Insurance in equities exactly a Mutual Fund is guarantees the return of money invested in Bank FDs (Source: India Investment Survey 2007-08 conducted by IIMS and CNBC TV-18) INFORMATION MATTERS | ISSUE 3
  2. 2. Religare: A process presentation was also designed to train the in-house financial advisors at Religare Finmart on how, when and where to use the Finanacial Planning tools great product I have, why don’t you buy it…” to “Let me While one-to-one human interaction is indispensable understand what do you need and then I will suggest a in the delivery of financial planning, one of the ways in product that is right for you”. which companies can reduce this dependence is by using 2. Lack of industry standards and absence of well- innovative tools. established systems and processes including comprehensive software for financial planning is a big These tools can be a combination of communication tools challenge in delivering the promise. that educate and inform as well as technology tools that 3. The business income generated from client needs to simplify and automate the sales process. justify the number of hours an advisor spends on working for a client. This may also require a client to pay fees for A change in approach from ‘Product Sales’ to ‘Financial these services and the culture of paying for advice is new Planning’ makes sense for consumers as well as financial58 amongst Indian clients. services providers. how long it takes for the benefits to reach a wide MoneyMentor ( creates white- section of individuals will depend on how much and label information and software tools for financial how fast the financial intermediaries invest in human service companies, which help them in acquiring, resources and such innovative tools that deliver the educating and building relationships with their promise of financial planning. customers. We partner with financial companies and - Deven Shah, Raghu Fasalkar, institutions to guide investors and financial advisors. Umesh Chavan INFORMATION MATTERS | ISSUE 3
  3. 3. Invest in Tools that Educate If there is a big market of consumers requiring financial planning services, why haven’t the financial intermediaries successfully implemented this in practice? One of the key challenges lies in the fact that the process of understanding, educating and advising investors has a high dependence on human resources. This creates multiple challenges in execution: 1. Knowledgeable and well-trained financial planners are in short supply. Most companies have an army of salesmen that will now have to be trained for changing the approach from saying “here is a Investor Education Booklet prototype33 Financial Calculators Easy to use calculators that advisors use to find out the correct investment amount for retirement, insurance, asset allocation and other financial goals like buying a house, children’s education etc 4 Presentation to train Financial Advisors A comprehensive presentation to train the advisors in delivering financial planning services using the tools provided 5 Dream Map (Client Profiler + Financial Plan) A tool that helps clients list down their financial goals 57 in a simple manner and allows the advisor to suggest a plan to achieve their dreams INFORMATION MATTERS | ISSUE 3
  4. 4. Sell the Concept along with the Product Traditionally, different financial products have been sold by different people. In the last 5-7 years, most financial intermediaries (from corporate distributors and brokers to independent financial advisors) have started offering a wide range of financial products under one roof. hence it makes immense business sense for financial intermediaries to offer financial planning as a ‘service’—a service where a financial advisor takes time and understands the personal profile of a client, identifies his needs, commitments and aspirations and then creates a financial plan which includes advice on investments, insurance, tax, retirement etc. This approach will not only help financial companies in earning higher revenue per client but will also build relationships, which can result in long-term revenue. One example of the Retirement Planner software made by MoneyMentor CASE STUDY : Religare Enterprises Limited We worked with Religare enterprises Limited (ReL) one of the leading integrated financial services groups in India, to create a set of financial planning tools for their chain of branded stores called ‘Religare Finmart’. With it’s positioning of ‘Powering your Dreams’, Religare Finmart offers financial planning solutions and products that satisfy all the insurance, investment and loan requirements of an individual. here are examples of some Financial Planning Tools designed for Religare:56 1 Lead Generation: Financial Planning Seminar presentation 2 A booklet on Financial Planning for prospects and clients customised for different age-groups A 16-page guide that helps people and professionals understand how financial planning can improve their lives in a very real sense INFORMATION MATTERS | ISSUE 3