Marketing of Financial Services-B.V.Raaghunandan

Karnataka Bank Staff Training College,

Mangalore.August 10, 2009

MARKETING OF FINANCIAL SERVICES-B.V.RAGHUNANDAN, SVS COLLEGE, BANTWAL

Nationalisation and its Impact on Banks

Network of BranchesUniversal AccessImplicit Brand EquityProfessional EmployeesCoverage of Both Urban and Rural Areas

Problems Created

Non-Performing AssetsAsset-Liability MismatchCapital InadequacyLimited Investment OptionsRegulated Interest RegimeToo Much Of Regulation Impact of Political Compulsions

Events That Changed the World of Indian Banking

Financial Sector ReformsOpening Up of Insurance SectorIT Absorption by Indian BanksMoney Market ReformsReverse Merger of ICICI into ICICI BankEstablishment of Clearing Corporation of

IndiaATMs Emerging as a Business Model

Requirement

Employee Oriented OrganisationA Separate BPO ArmLonger Business Hours 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 ActivitiesLong Term Profitability vis-a –vis

Short-Term Profits

Emerging Opportunities Areas

Housing FinanceSale Of Insurance ProductsSale of Mutual Fund Units & Exchange

Traded FundsDepository ParticipationMerchant Banking Venture Capital FinancingSale of Pure Gold Coins & Custodianship

of Gold ETF Factoring ServicesLeasing FinanceATM Enabled Business

Corporate Clients’ Needs

Accessing Markets through Merchant Banker, Underwriter, Brokers, Banker To The Issue

Registrar & Transfer AgentsCustodial ServicesStock BrokingDepository ParticipationVenture CapitalFactoring ServicesCash Management ServicesMergers & Acquisitions

Corporate Clients’ Needs…continued

Sale & Lease BackForeign Exchange NeedsLoan SyndicationLeveraged Take-Overs & Buy-Outs

Wholesale Banking

Functions of A Merchant Banker

Issue of SecuritiesMergers &

AcquisitionsFinancial

RestructuringManagement of

Investment TrustsPortfolio

Management

Loan SyndicationCorporate Advisory

ServicesCustodial &

Depository ServicesUnderwritingInvestment Banking

Banks As Merchant Bankers

Economic researchCreation of a Database of Corporates of the Globe

Appointment of Legal, Managerial, and Accounting Professionals

Continuous Working Out of Scenarios for Financial Restructuring and M & A

Banks & Secondary Markets

Stock Broking & Commodity Broking

Depository Participation

Stock Lending & Borrowing

Internet TradingIssue of Credit

Cards

Custodial ServicesLending on the

Security of StocksInvestor

Grievances CellAuction Site for

Unlisted Shares

Banks & Venture Capital

Database of ClientsContacts with Various

Industrial CustomerProfessional

Expertise in Fund management

Ability to Provide Any Financial Service

Contacts With Mutual Funds & Fund Houses and High Networth Individuals

Banks & SMEs

Depository for SMEDebenture TrusteeCustodial ServicesCredit Rating

ServicesAdvisory Services

Portfolio Management

Market makingAdvisory

Services on Derivatives

Banks & Mutual Funds and ETFs

Fastest Growing MarketRisk- Shy InvestorsTie-Up for Sale and RedemptionAsset Management ServicesNetwork of Branches and ATMsCustodians of Gold ETF

Bancassurance

Only a Distribution FunctionPremium Collection Investor CounsellingClaim SettlementCustomer RelationAlmost Acting As a BPO ArmAvoidance of Opening of Branches by

Insurance Companies

ATMs-The Super Giant BankerAll the Functions of a BankA Strategic ModelUniversal Network SharingPayment of Utility BillReservation of Every Kind Subscription and Redemption of Mutual

Fund UnitsSubscription to Money Market

Instruments ?Subscription to Primary market issues ?Purchase and Sale of Shares ?

Retail Banking

Consumer FinanceIssue of Credit CardsSale of Mutual Fund UnitsSale Of Insurance Products & Settlement

of ClaimsPayment of Every KindReservations of Every KindBuying & Sale of Foreign ExchangeApplying to Primary IssuesStock Broking

Retail Banking….continued

Tax Planning & Tax Payment Investment CounsellingPurchase & Sale of Government Bonds

Purchase & Sale of Money Market Instruments

Accreditation, if CIBIL takes it up

Agriculture & Rural Finance

Self Help Groups Micro CreditCommercial AgricultureOrganised RetailDistribution of Insurance ProductsSocial Banking

ChallengesHR ProblemsAlliance with Insurance Companies:

Nature of AllianceCapital AdequacyChange Management Technology AbsorptionContradictions of RBI & Ministry of

Finance

TrendsCommoditisation of ServicesMergers & Acquisitions for Scale of

OperationTie-Ups: For ATMs, OIC, Bank of India &

Union Bank of India, Karnataka Banks’ Alliance

Banks Emerging as a Giant Financial Machine for the Entire Country

Impersonal Banking through Internet & ATMs

Thank You