Marketing of Financial Services-B.V.Raaghunandan

998 views

Published on

Financial services provided by Indian banks with a critical view as presented by B..Raghunandan in a guest lecture at Karnataka Bank Staff Training College, Mangalore on August 10, 2009

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Marketing of Financial Services-B.V.Raaghunandan

  1. 1. Karnataka Bank Staff Training College, Mangalore . August 10, 2009 MARKETING OF FINANCIAL SERVICES - B.V.RAGHUNANDAN, SVS COLLEGE, BANTWAL
  2. 2. Nationalisation and its Impact on Banks <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>
  3. 3. Problems Created <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><ul><li>Too Much Of Regulation </li></ul><ul><li>Impact of Political Compulsions </li></ul>
  4. 4. Events That Changed the World of Indian Banking <ul><li>Financial Sector Reforms </li></ul><ul><li>Opening Up of Insurance Sector </li></ul><ul><li>IT Absorption by Indian Banks </li></ul><ul><li>Money Market Reforms </li></ul><ul><li>Reverse Merger of ICICI into ICICI Bank </li></ul><ul><li>Establishment of Clearing Corporation of India </li></ul><ul><li>ATMs Emerging as a Business Model </li></ul>
  5. 5. Requirement <ul><li>Employee Oriented Organisation </li></ul><ul><li>A Separate BPO Arm </li></ul><ul><li>Longer Business Hours 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>
  6. 6. 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><ul><li>Long Term Profitability vis-a –vis Short-Term Profits </li></ul>
  7. 7. Emerging Opportunities Areas <ul><li>Housing Finance </li></ul><ul><li>Sale Of Insurance Products </li></ul><ul><li>Sale of Mutual Fund Units & Exchange Traded Funds </li></ul><ul><li>Depository Participation </li></ul><ul><li>Merchant Banking </li></ul><ul><li>Venture Capital Financing </li></ul><ul><li>Sale of Pure Gold Coins & Custodianship of Gold ETF </li></ul><ul><li>Factoring Services </li></ul><ul><li>Leasing Finance </li></ul><ul><li>ATM Enabled Business </li></ul>
  8. 8. Corporate Clients’ Needs <ul><li>Accessing Markets through Merchant Banker, Underwriter, Brokers, Banker To The Issue </li></ul><ul><li>Registrar & Transfer Agents </li></ul><ul><li>Custodial Services </li></ul><ul><li>Stock Broking </li></ul><ul><li>Depository Participation </li></ul><ul><li>Venture Capital </li></ul><ul><li>Factoring Services </li></ul><ul><li>Cash Management Services </li></ul><ul><li>Mergers & Acquisitions </li></ul>
  9. 9. Corporate Clients’ Needs…continued <ul><li>Sale & Lease Back </li></ul><ul><li>Foreign Exchange Needs </li></ul><ul><li>Loan Syndication </li></ul><ul><li>Leveraged Take-Overs & Buy-Outs </li></ul><ul><li>Wholesale Banking </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>Depository Participation </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. 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>
  14. 14. Banks & SMEs <ul><li>Depository for SME </li></ul><ul><li>Debenture Trustee </li></ul><ul><li>Custodial Services </li></ul><ul><li>Credit Rating Services </li></ul><ul><li>Advisory Services </li></ul><ul><li>Portfolio Management </li></ul><ul><li>Market making </li></ul><ul><li>Advisory Services on Derivatives </li></ul>
  15. 15. Banks & Mutual Funds and ETFs <ul><li>Fastest Growing Market </li></ul><ul><li>Risk- Shy Investors </li></ul><ul><li>Tie-Up for Sale and Redemption </li></ul><ul><li>Asset Management Services </li></ul><ul><li>Network of Branches and ATMs </li></ul><ul><li>Custodians of Gold ETF </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 Insurance Companies </li></ul>
  17. 17. 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>
  18. 18. Retail Banking <ul><li>Consumer Finance </li></ul><ul><li>Issue of Credit Cards </li></ul><ul><li>Sale of Mutual Fund Units </li></ul><ul><li>Sale Of Insurance Products & Settlement of Claims </li></ul><ul><li>Payment of Every Kind </li></ul><ul><li>Reservations of Every Kind </li></ul><ul><li>Buying & Sale of Foreign Exchange </li></ul><ul><li>Applying to Primary Issues </li></ul><ul><li>Stock Broking </li></ul>
  19. 19. Retail Banking….continued <ul><li>Tax Planning & Tax Payment </li></ul><ul><li>Investment Counselling </li></ul><ul><li>Purchase & Sale of Government Bonds </li></ul><ul><li>Purchase & Sale of Money Market Instruments </li></ul><ul><li>Accreditation, if CIBIL takes it up </li></ul>
  20. 20. Agriculture & Rural Finance <ul><li>Self Help Groups </li></ul><ul><li>Micro Credit </li></ul><ul><li>Commercial Agriculture </li></ul><ul><li>Organised Retail </li></ul><ul><li>Distribution of Insurance Products </li></ul><ul><li>Social Banking </li></ul>
  21. 21. Challenges <ul><li>HR Problems </li></ul><ul><li>Alliance with Insurance Companies: Nature of Alliance </li></ul><ul><li>Capital Adequacy </li></ul><ul><li>Change Management </li></ul><ul><li>Technology Absorption </li></ul><ul><li>Contradictions of RBI & Ministry of Finance </li></ul>
  22. 22. Trends <ul><li>Commoditisation of Services </li></ul><ul><li>Mergers & Acquisitions for Scale of Operation </li></ul><ul><li>Tie-Ups: For ATMs, OIC, Bank of India & Union Bank of India, Karnataka Banks’ Alliance </li></ul><ul><li>Banks Emerging as a Giant Financial Machine for the Entire Country </li></ul><ul><li>Impersonal Banking through Internet & ATMs </li></ul>
  23. 23. Thank You

×