Delivery Models: CAIIB Retail banking (Module C),Unit 3
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CAIIB exams are conducted twice in a year. Candidates should have completed JAIIB before appearing for CAIIB Exam. Here, we will provide detailed notes of every unit of the CAIIB Exam on the latest pattern of IIBF.
So, here we are providing “Unit 3: Delivery Models” of “Module C: Marketing in Retail Banking” from “Optional Paper: Retail Banking”.
The Article is CAIIB Unit 3: Delivery Models
- The success of the Retail Banking depends on how the products and services are delivered to the customer. Delivery effectiveness in physical channels is determined more by the persons who are delivering the services.
The three important human interventions in physical channels are
- Internal Customer – Staff of the Branch
- Specialised Marketing Personnel
- Direct Selling Associates (DSAs).
Dedicated Marketing Managers
- Dedicated Marketing Managers were appointed in addition to existing internal human resources.
- These specialist Marketing Managers (MBAs in Marketing) were young and energetic and recruited from the campuses of management Schools.
- Some banks appointed them in Junior Management and some other banks in middle management.
The expectations from these officers are explained:
- Market Intelligence
- Potential Sourcing
- Product and Service Delivery Presentations to the identified customer segments
- Right selling to the targeted customer group
- Sales Conversions
- Closing the leads with sales
- Compliance of promises made and conforming to the services delivery standards
- Following up with the operations department for effective process and delivery of products sold.
Direct Selling Agents (DSAs)
- DSAs are agencies appointed by banks to source business for them on a fee basis.
- DSAs are primarily engaged in sourcing Credit Cards and Retail Loans.
- The employees of the DSAs missell credit card products and make the customers fall into a debt trap by misusing the cards.
- Same is the case with misselling of retail loans and in this space, the pricing for the loans are not explained clearly.
- Ultimately this will result in dissatisfaction for the customers and reputation risk for the bank.
Reputation Risk is always a threatening factor in the DSA model
- DSAs focus on pure selling by pushing the products than effective marketing after verifying the needs of the customers and their actual requirements.
TIE-UP with Institutions/ OEMS/DEALERS ETC….
Banks enter into tie ups with the following agencies for extending different types of loans.
- Tie up with Builders as a preferred financier for extending Home Loans to prospective buyers.
- Tie ups with auto dealers is another method adopted by banks for expanding retail credit.
- Sanctioning of Personal Loans under tie up with different institutions is another model adopted by banks to expand retail loans.
- educational loans are disbursed on a tie up basis. Banks set up special counters during the admission season in reputed educational institutions and offer education loans based on merit.
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