Financial Services Marketing-Concepts, Challenges & Opportunities

-B.V.Raghunandan,SVS College, Bantwal

Karnataka Bank Staff Training College, Mangalore.

June 25, 2007

Compulsions

Expectation of CorporatesMargin Under StrainNon-Performing AssetsAsset-Liability MismatchCapital InadequacyLimited Investment OptionsRegulated Interest Regime

Banks Are Standing Tall Network of Branches Universal Access Implicit Brand Equity Professional Employees Coverage of Both Urban and Rural Areas ATM s As Channels of Delivery & Business Model Reverse Merger of ICICI into ICICI Bank in 2003

Requirement

Employee Oriented OrganisationA Separate BPO ArmLonger Hours of Work with ShiftsAppointment of ProfessionalsSubsidiaries & Strategic Business UnitsComprehensive Training to Employees on

Financial Markets, Services and Derivatives

Requirement… Continued

Economic ResearchChanged Mindset for Seamless Remittance

FacilitiesA Bigger and Better Lobby for Banking

IndustryMore Freedom In Choosing Activities

Financial Services

DP Services Stock-broking Banker to Public Issue Merchant Banking Credit Rating Venture Capital

Finance Custodial Services

Insurance Services Housing Finance Mutual Fund Lease Finance HP Finance &

Consumer Credit Cash Management

Services Factoring & Forfaiting

Bank as Depository Participant

Branch NetworkPublic’s Faith in the BanksRegulatorsSingle Window for Banking , Stockholding &

Obtaining Bank Finance (Easy Pledging) Brand Equity of the BanksLesser Formalities for Introduction

Bank As a Stockbroker

Professional EmployeesBranch Computerisation & NetworkingSingle WindowEasy Opening of AccountEstablished ClienteleCorporate ClientsEasy Remittances

Banker to Public Issue

Existing ServiceProvided on the Principle of TurnoverEnhances Corporate ContactsPuts Low Cost funds at the Disposal of the

BankAttracts New Customers to the Bank

Functions of A Merchant Banker

Issue of Securities Mergers &

Acquisitions Financial

Restructuring Management of

Investment Trusts Portfolio Management

Loan Syndication Corporate Advisory

Services Custodial &

Depository Services Underwriting Investment Banking

Banks As Merchant Bankers

Economic researchCreation of a Database of Corporates of the

GlobeAppointment of Legal, Managerial, and

Accounting ProfessionalsContinuous Working Out of Scenarios for

Financial Restructuring and M & A

Banks & Secondary Markets

Stock Broking & Commodity Broking

Bonds Trading Stock Lending &

Borrowing Internet Trading Issue of Credit Cards

Custodial Services Lending on the

Security of Stocks Investor Grievances

Cell Auction Site for

Unlisted Shares

Credit Rating

Developing Internal StandardsBasel NormsRating the CustomerProviding the Services to Corporate

Clients

Banks & Venture Capital

Database of Clients Contacts with Various

Industrial Customer Professional Expertise

in Fund management Ability to Provide Any

Financial Service

Contacts With Mutual Funds , Fund Houses and High Networth Individuals

Custodial Service

Sale of GoldExchange Traded FundMutual Funds Investment TrustsCorporate Clients

Bancassurance

Only a Distribution Function Premium Collection Investor Counselling Claim Settlement Customer Relation Almost Acting As a BPO Arm Avoidance of Opening of Branches by

Insurance Companies

Finance

Housing Finance Lease Finance Hire Purchase Credit Card Finance SME Finance Micro finance

Vehicles Finance Consumer Finance Finance for Contract

Farming Finance for Organic

Farming and Full Export Marketing Guidance

Corporate Services

Cash Management ServiceFactoring & ForfaitingBill DiscountingShort-Term Portfolio Management Investment in Markets SeamlesslyExim Market

ATMs-The Super Giant Banker

All the Functions of a Bank A Strategic Model Universal Network Sharing Payment of Utility Bill Reservation of Every Kind Subscription and Redemption of Mutual Fund Units Subscription to Money Market Instruments ? Subscription to Primary market issues ? Purchase and Sale of Shares ?

Challenges

CompetitionRegulation by RBI & SEBICapital Adequacy IT ChallengesProfessional TrainingSystemic ChallengesHR Problems

THANK YOU