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RATIONALE
One of the critical needs of less-developed countries like the Philippines is capital formation.
At the forefront of capital formation is the financial services industry. The South-East Asian economic
depression in the 1990’s has forced different financial service organizations to converge in order to
achieve economies of scale. The same financial organization is now able to market and distribute
various financial products other than its core product/s.
Information Technology has made this possible. Banks offer credit cards, insurance and mutual
funds. Insurance companies sell pre-need, besides non-life and life insurance. Pre-need offers
insurance riders with pension, education and/or memorial plans. Because of the convergence of
financial services, financial institutions have become more alike in their product offering and, thus,
have greater need to differentiate their services from one another.
As a student enrolled under the Marketing Financial Services program, you will have an overview of
the full spectrum of the financial services industry. Various financial products currently available
locally and internationally, will be discussed. Determining the logic behind each financial product and
how you could best market the particular financial service organization, will be the main topics of this
program.
We will cover the entire product spectrum of financial services, their business logic, and how
they converge and compete with one another. We will discuss two product categories:
A. Core Product — e.g. Banks’ savings/current accounts; Pre-Need’s pension,
education, life plans
B. Concentric Products — all other value-added services as unique selling
points (USP’s), e.g.: Banks’ brokerage, mutual funds, insurance over-the-
counter; Pre-Need’s insurance riders, loans
Sessions: 1-9
1.1 Regulatory Environment and Evolution of the Financial Services Industry (FSI)
1Objective: To appreciate the issues and environmental forces that shape the
financial services marketplace.
Sessions: 10-12
Sessions: 13-14
Cases: (Session 13) DLJdirect: Putting Our Reputation Online (HBS 9-800-164)
(Session 14) Charles Schwab: Financial Advisors Service (HBS 9-691-072)
Sessions: 15-16
Objective: To identify the critical factors in product development and product launching.
Cases: (Session 15) State Street Bank &Trust Co.: New Product Dev’t (HBS 9-696-087)
(Session 16) Eaton Vance and Prime Rate Reserves (HBS 9-290-020)
Substitute
Cases: State Street Boston Corporation: Leading with IT (HBS 9-195-135)
Apex Insurance Corporation (AIC): Flood Insurance Program (HBS 9-692-024)
Sessions: 17-18
Objective: To recognize the crucial components in the delivery of financial services, i.e.,
channels used, the cost of delivery, and role of information technology.
Substitute
Cases: State Street Boston Corporation: Leading with IT – (A) (HBS 9-195-135)
ETrade Securities, Inc. (M-286)
Intuit: QuickBooks Upgrade (Darden UVA-M-0496)
Cofidis (HBS 9-501-055)
WingspanBank.com (HBS 9-600-035)
Faculty Profile
Sato Ridad is President of Professional Financial Plans (Professional), the 1st Pension
Plan Company in the country and one of the Top 10 Pre-Need Plan Companies. He sits
on the Board of the Philippine Federation of Pre-Need Plan Companies, Inc. and is a
member of the Financial Executives Institute of the Philippines (FINEX).
Shortly before being appointed President of Professional, he was SVP for the Business
Development Group of LBC Corporation, a partner of Professional. He developed
financial products specially designed to address the needs of LBC’s vast Overseas
Filipino Workers client base. Revolutionizing the freight-forwarding business, he
successfully led the design and implementation of training and converting LBC’s
traditional cargo handlers into sellers of financial products, over-the-counter at various
LBC air posts nationwide.
For two years, Sato was sent abroad to study the various markets of Hong Kong,
Brunei, Malaysia, Singapore, Spain, Italy, and the U.S. Within such period, he
developed a financial product, the Professional Guaranteed Pension Fund, which was
successfully launched in Hong Kong, Europe and the U.S. With his developmental work
for LBC, he brought home with him a deep appreciation and knowledge of, and a wide
range of perspectives on global markets and economies.
Prior to his stint with LBC, he worked as SVP of Net Curricula, Inc., a company which
integrated information technology into mainstream education. They provided internet
services, systems integration, applications software, and training for faculty. He was in
charge of Corporate Planning and Marketing.