IMPORTANCE OF FINANCIAL PLANNING FOR SUSTAINABLE PROFITABILITY. By Kaushal Mandalia [email_address]

GLOBALIZATION AND FINANCIAL SERVICE INDUSTRY Globalization and Privatization Entry of Private Life Insurance Companies And AMCs Multiple Distribution Channels Agents Banks Brokers Attractive Revenue Model Target Driven Contest Driven Revenue Driven Unexplained Complexities, Unnecessary Arguments, Unsatisfied Customers No Referral Sale Lower Profitability

IMPLICATIONS…. Perception of Equity as Universal Investment Solution. Focus on Product – Which is not a sustainable competitive advantage. Unsatisfied Customer. Wastage of time in handling crisis / queries. Less Referral Sale High Customer Acquisition Costs Lower Long Term Profitability Lower Employee Satisfaction, Higher Attritions.

Perception of Equity as Universal Investment Solution.

Focus on Product – Which is not a sustainable competitive advantage.

Unsatisfied Customer.

Wastage of time in handling crisis / queries.

Less Referral Sale

High Customer Acquisition Costs

Lower Long Term Profitability

Lower Employee Satisfaction, Higher Attritions.

We are suffering of Two Major Illness… TARGETOMANIA A presumption that Client is a solution to meet your target or to ease out pressure from your Boss / HO. PRODUCTOMANIA A perception that Client is a Prospect for Life Insurance (ULIPS) or Mutual Fund (NFO) or PMS where revenue is higher.

TARGETOMANIA

A presumption that Client is a solution to meet your target or to ease out pressure from your Boss / HO.

PRODUCTOMANIA

A perception that Client is a Prospect for Life Insurance (ULIPS) or Mutual Fund (NFO) or PMS where revenue is higher.

We Can Change our Belief System…. CUSTOMER IS A REASON FOR OUR EXISTANCE HE IS NOT A STRANGER IN OUR PREMISES. HE IS THE MOST ADMIRABLE AND RESPECTABLE PERSON IN OUR OFFICE. HIS DESIGNATION IS FAR BEYOND THE DESIGNATION OF MANAGING DIRECTOR / CHAIRMAN OF THE COMPANY. HE CAN FIRE ANYONE IN THE ORGANIZATION BY JUST SWITCHING HIS PREFERENCE TO OTHER COMPANY. MAHATMA GANDHI

CUSTOMER IS A REASON FOR OUR EXISTANCE

HE IS NOT A STRANGER IN OUR PREMISES.

HE IS THE MOST ADMIRABLE AND RESPECTABLE PERSON IN OUR OFFICE.

HIS DESIGNATION IS FAR BEYOND THE DESIGNATION OF MANAGING DIRECTOR / CHAIRMAN OF THE COMPANY.

HE CAN FIRE ANYONE IN THE ORGANIZATION BY JUST SWITCHING HIS PREFERENCE TO OTHER COMPANY.

MAHATMA GANDHI

Paradox of Financial Planning Present Situation Required Situation.

Change in your Approach, from Product First to Strategy First can be termed as “COMPLETE FINANCIAL PLANNING”

WHAT IS FINANCIAL PLANNING A process of meeting your life goals through the proper management of your finances It’s a Six Step scientific process

A process of meeting your life goals through the proper management of your finances

It’s a Six Step scientific process

WE NEED TO CHANGE THE WAY WE LOOK AT FINANCIAL SERVICES / PRODUCTS CAR Are we buying Engine / Lubricants / Piston / Cylinder? OR We are buying Comfort, Status, A Reason to Enjoy Long trip with spouse and children, A Vehicle for Conveyance?

CAR

Are we buying Engine / Lubricants / Piston / Cylinder? OR

We are buying Comfort, Status, A Reason to Enjoy Long trip with spouse and children, A Vehicle for Conveyance?

HOME Are we buying Bricks, Stones, Mortar, Hardware? OR We are buying Mental Peace, A place where you can sleep better at NIGHT, Shelter for your safety?

HOME

Are we buying Bricks, Stones, Mortar, Hardware? OR

We are buying Mental Peace, A place where you can sleep better at NIGHT, Shelter for your safety?

APPAREL Buttons, Textures, Cloths OR Smart Looks

APPAREL

Buttons, Textures, Cloths OR

Smart Looks

CHILD PLANS (ULIP / MF) Are we buying Equity Based Returns, Premium Payment Term, Withdrawals, Surrender, OR Financial Security of Child A Complete Financial Planning for major events like Education, Marriage and Start in Life Expense

CHILD PLANS (ULIP / MF)

Are we buying Equity Based Returns, Premium Payment Term, Withdrawals, Surrender, OR

Financial Security of Child

A Complete Financial Planning for major events like Education, Marriage and Start in Life Expense

NFO Are we buying Equity Based Returns, NAV of Rs 10, No Front Loading Charges, Small Cap Fund, International Fund OR A FINANCIAL PROVISION / PLANNING FOR Retirement Financial Security of Spouse Having an International Vacation Child’s Future Needs.. etc

NFO

Are we buying Equity Based Returns, NAV of Rs 10, No Front Loading Charges, Small Cap Fund, International Fund OR

A FINANCIAL PROVISION / PLANNING FOR

Retirement

Financial Security of Spouse

Having an International Vacation

Child’s Future Needs.. etc

A BUYING DECISION IS ALWAYS EMOTIONAL

Lets Focus on Life Goal FIRST….. Child Education, Marriage and Start in Life Expense Buying a Home Having an Alternate Income Source Retirement Planning Going on Vacation Taking Care of Dependent Parents etc..

Child Education, Marriage and Start in Life Expense

Buying a Home

Having an Alternate Income Source

Retirement Planning

Going on Vacation

Taking Care of Dependent Parents etc..

Then Discuss Portfolio Parameters Risk Appetite Current Stage of Life Financial Condition Sensitivity of the GOAL. Outcome Equity – Debt Short Term – Long Term Aggressive or Defensive

Parameters

Risk Appetite

Current Stage of Life

Financial Condition

Sensitivity of the GOAL.

Outcome

Equity – Debt

Short Term – Long Term

Aggressive or Defensive

Then Discuss PRODUCTS Mutual Fund GOLD PMS Direct Equity Insurance PPF / RBI Bonds Senior Citizen Savings Scheme LIC etc….

Mutual Fund

GOLD

PMS

Direct Equity

Insurance

PPF / RBI Bonds

Senior Citizen Savings Scheme

LIC etc….

FINANCIAL PLANNING PROCESS Gathering Relevant Information Setting Life Goals Examining Current Financial Status and Setting up Budget Formulating Financial Plan Implementing Financial Plan Reviewing and Monitoring Financial Plan

Gathering Relevant Information

Setting Life Goals

Examining Current Financial Status and Setting up Budget

Formulating Financial Plan

Implementing Financial Plan

Reviewing and Monitoring Financial Plan

WHAT ABOUT PRODUCTS?? A RANGE OF PRODUCTS ARE REQUIRED LIKE.. INSURANCE MUTUAL FUNDS PMS EQUITY DEBT SOLUTIONS GOLD REAL ESTATE INTERNATIONAL EQUITY / DEBT EXPOSURE ETC…

A RANGE OF PRODUCTS ARE REQUIRED LIKE..

INSURANCE

MUTUAL FUNDS

PMS

EQUITY

DEBT SOLUTIONS

GOLD

REAL ESTATE

INTERNATIONAL EQUITY / DEBT EXPOSURE ETC…

Benefits Client will be fully aware about the solution provided. Customer Delight – No Crisis Management Reqd. Increase in Referral Sale Satisfied Employee, Lower Attrition, Better Productivity Increase in Overall Revenue and Profitability.

Client will be fully aware about the solution provided.

Customer Delight – No Crisis Management Reqd.

Increase in Referral Sale

Satisfied Employee, Lower Attrition, Better Productivity

Increase in Overall Revenue and Profitability.

A burning desire is the starting point of all accomplishment..

Thanks Kaushal Mandalia [email_address] www.linkedin.com/in/kaushalmandalia