in addition to the website. They are interested in a particular product, then that information is given by us.
Lavale: For investments, we have opened many representative offices in the Gulf countries and other countries also. We are deputing their representatives and giving 24x7 services with respect to opening accounts, funds transfers, remittances, etc. Their account will be opened in India, whatever is the nearest branch of the residence of that NRI here. We have also started advisory services in collaboration with some FIs. So we train our people because customers tend to believe their bankers more rather than other private Fls. Based on their current annual income, the amount they need to invest at the end of the year, counting their expenses we advice them. People have started believing in public sector banks. Customers now prefer safe investments instead of looking for higher rate of interest.
Asha: In my own bank, we have a forex division that brings out a newsletter where there is a country outlook, monetary outlook and forecast for various currencies and currency rate movements and changes in FDI norms. Everything that is required for an NRI to make a decision. Apart from that we have an NRI cell that sends out a banking update, an email newsletter, where we do not address these purely monetary things. We tell them about things like reduction of stamp duty which happened yesterday from 7.YJ.6 to 6.5%. That catches their fancy. Then what is the real estate market looking like in the future? What is the investment that is recommended in the current scenario? These are the sort of questions that NRls usually ask us. The newsletter is immensely popular among them.
PK Nair: The point here is that in your bank the NRI division is a cell. Suppose the NRI wants to buy a mutual fund, then since your bank is divided into sections, you have to move that information to someone else and then that person will start the interaction. This can be distracting.
Hegde: In Indian Bank we have introduced wealth management on a pilot basis. So we have tied up with some leading financial companies. Hopefully, we expect to introduce it in other parts of the country also depending on the success rate.
Rajesh: In Axis Bank we have this service. We have a relationship manager who will be a single point for any service. The RM will hold only 4-5 customers.
Taneja: Wealth management is something that lends itself nicely to a relationship concept. There is one individual at your branch who manages your entire relationship. An ING wealth manager is responsible for the casa accounts, investments, insurance, etc. Typically there are about 200 customers mapped to a relationship manager. We found that
technology has a huge role to play in this. What we did was implement an online wealth management system (WMS) integrated with the banking portal. For some banks wealth management is about managing the entire wealth through the lifecycle of that individual. This involves education, retirement, inheritance planning, tax implications, if you have a large family distributing your wealth in a particular manner - all advice comes from the bank.
Srinivas: In our bank, in addition to wealth management, we also offer finance health checkups. We already have a collaboration with some players in insurance. For example, we have tied up with LIC, New India Assurance and mutual funds. The representative of all these companies, including our bank, has been brought under a single umbrella and customers can contact them.
PK Nair: Take the simple case of a mutual fund. The registrar actually sends the statement. That's a different entity altogether. He will have the actual record of your transaction. About 20 statements will come to me and I have to keep a track of it. Here technology can help you talk to your partners.
Taneja: Actually, that is what we have done. A wealth client at ING receives only an annual statement because that's mandatory from the registrar of the AMCA taking mutual funds as an example. Otherwise he receives a quarterly statement from ING explaining the portfolio. Because sometimes entry or exit loads are changing, etc. He gets these updates online as well as through the statement. Here technology has to talk to them. It's the system that has talk to them so that the customer's life is convenient.
Kannan: We checked out some solutions on the wealth management system also. It came to light that it is not the question of only technology availability. What is needed is skillsets and knowledge of the people in the organization about portfolios, equities, etc. What is most needed is the maturity of the bank to offer these kind of wealth management services. If you are not careful, then wealth management could become wealth mis-management.
Asha: In wealth management, we tend to focus on urban elite. But if you have seen the pattern of wealth distribution, it is slowly moving to tier 2 cities. Even consumer goods are doing better business in tier 2 cities. So there's a semi-urban / rural customer who is having wealth to be managed where we need to play.
Manoj: What about Axis and ING?
Rajesh: We have started in tier 2, but it is mapped to the urban centres.
Taneja: I would agree with that. I think most banks in India, even those doing well, is a metro or urban centric model right now. The individual in the semi-urban or rural area who has wealth to be managed has different views, has different needs and different expectations. They have different timelines. They may not need the returns in two years.
Manoj: Any other suggestions on using the Web or using any technology? Asha: I think more than the banks using the web, customers have begun using it. Many of the students who approach us for a loan say that their seniors put it on Facebook, or blog and got to know about the brand
Lavale: For investments, we have opened many representative offices in the Gulf countries and other countries also. We are deputing their representatives and giving 24x7 services with respect to opening accounts, funds transfers, remittances, etc. Their account will be opened in India, whatever is the nearest branch of the residence of that NRI here. We have also started advisory services in collaboration with some FIs. So we train our people because customers tend to believe their bankers more rather than other private Fls. Based on their current annual income, the amount they need to invest at the end of the year, counting their expenses we advice them. People have started believing in public sector banks. Customers now prefer safe investments instead of looking for higher rate of interest.
Asha: In my own bank, we have a forex division that brings out a newsletter where there is a country outlook, monetary outlook and forecast for various currencies and currency rate movements and changes in FDI norms. Everything that is required for an NRI to make a decision. Apart from that we have an NRI cell that sends out a banking update, an email newsletter, where we do not address these purely monetary things. We tell them about things like reduction of stamp duty which happened yesterday from 7.YJ.6 to 6.5%. That catches their fancy. Then what is the real estate market looking like in the future? What is the investment that is recommended in the current scenario? These are the sort of questions that NRls usually ask us. The newsletter is immensely popular among them.
PK Nair: The point here is that in your bank the NRI division is a cell. Suppose the NRI wants to buy a mutual fund, then since your bank is divided into sections, you have to move that information to someone else and then that person will start the interaction. This can be distracting.
Hegde: In Indian Bank we have introduced wealth management on a pilot basis. So we have tied up with some leading financial companies. Hopefully, we expect to introduce it in other parts of the country also depending on the success rate.
Rajesh: In Axis Bank we have this service. We have a relationship manager who will be a single point for any service. The RM will hold only 4-5 customers.
Taneja: Wealth management is something that lends itself nicely to a relationship concept. There is one individual at your branch who manages your entire relationship. An ING wealth manager is responsible for the casa accounts, investments, insurance, etc. Typically there are about 200 customers mapped to a relationship manager. We found that
technology has a huge role to play in this. What we did was implement an online wealth management system (WMS) integrated with the banking portal. For some banks wealth management is about managing the entire wealth through the lifecycle of that individual. This involves education, retirement, inheritance planning, tax implications, if you have a large family distributing your wealth in a particular manner - all advice comes from the bank.
Srinivas: In our bank, in addition to wealth management, we also offer finance health checkups. We already have a collaboration with some players in insurance. For example, we have tied up with LIC, New India Assurance and mutual funds. The representative of all these companies, including our bank, has been brought under a single umbrella and customers can contact them.
PK Nair: Take the simple case of a mutual fund. The registrar actually sends the statement. That's a different entity altogether. He will have the actual record of your transaction. About 20 statements will come to me and I have to keep a track of it. Here technology can help you talk to your partners.
Taneja: Actually, that is what we have done. A wealth client at ING receives only an annual statement because that's mandatory from the registrar of the AMCA taking mutual funds as an example. Otherwise he receives a quarterly statement from ING explaining the portfolio. Because sometimes entry or exit loads are changing, etc. He gets these updates online as well as through the statement. Here technology has to talk to them. It's the system that has talk to them so that the customer's life is convenient.
Kannan: We checked out some solutions on the wealth management system also. It came to light that it is not the question of only technology availability. What is needed is skillsets and knowledge of the people in the organization about portfolios, equities, etc. What is most needed is the maturity of the bank to offer these kind of wealth management services. If you are not careful, then wealth management could become wealth mis-management.
Asha: In wealth management, we tend to focus on urban elite. But if you have seen the pattern of wealth distribution, it is slowly moving to tier 2 cities. Even consumer goods are doing better business in tier 2 cities. So there's a semi-urban / rural customer who is having wealth to be managed where we need to play.
Manoj: What about Axis and ING?
Rajesh: We have started in tier 2, but it is mapped to the urban centres.
Taneja: I would agree with that. I think most banks in India, even those doing well, is a metro or urban centric model right now. The individual in the semi-urban or rural area who has wealth to be managed has different views, has different needs and different expectations. They have different timelines. They may not need the returns in two years.
Manoj: Any other suggestions on using the Web or using any technology? Asha: I think more than the banks using the web, customers have begun using it. Many of the students who approach us for a loan say that their seniors put it on Facebook, or blog and got to know about the brand
Posts
No comments:
Post a Comment