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Marketing of Financial

Services (WM)

By
Padmini Sundaram

Discussion Flow
1. Competing in the 21st Century
2. Impact of globalization
3. Marketing Challenges in Financial
Services
4. Discussion on a Financial Market
5. Strategies to overcome these challenges
6. Customer Relationship Management
Banking in the 21st Century

Competing in the 21st Century in


The Indian Banking Space
The Environment
The Role Change of the Regulator
Demography of the Indian Consumer
The Great Indian Middle Class Resurgence
The Impact of Technology
The Software High

Banking in the 21st Century

Impact of Globalization
Customer is King
No of new entrants

Technology
Product Suite
Global expertise

Banking in the 21st Century

Services Marketing Mix (7Ps)


Price
People
Customer Service/Staffing

Place
Product
Inc Differentiation

Promotion
Inc Branding

Physical Evidence
Process
CRM
Technology
Banking in the 21st Century

Challenges in Marketing of
Financial Services
Key differentiators for survival
Product Pushing Vs Consultive Selling
Building Trust
Entry barrier

Power of Branding & Segmentation


Mass Market/PV/Premier & Private Client

Challenge of Human Resources


Banking in the 21st Century

The Financial Services Space


Discussion on the Punes Financial Services (Advisory) Market
Market size
How this business works
Process in Indian / Foreign Banks

Main Players (Indian/Foreign Banks/IFA)


Evolving Models
Price Related

Expansion of Product Suite


HSBC Direct

New Entrants
Barclays/IIFCL/Religare/ICICI Securities/Ask

Recent changes (Place)


Local IFA acquisition by National Player/RBS Van Gogh Asset sale

Challenges
Client Acquisition/Retention strategies in view of the changing
environment.
Banking in the 21st Century

Strategy Discussion
Expanding the Total Market
Getting The New User

DSA/Appointment of Dealers
Feet On Street
Outdoor Promotion/TV/Newspaper Ads
Database/Events
Telecalling
Case Study 1 - The Home Loan Market
Case Study 2 - The PL/Credit Card War

Banking in the 21st Century

Strategy Discussion -contd


More Usage
Case 1 : Credit Card Point Systems
Case 2 : Home Loan Top Up.

Financial Boutique Concept


One Stop Shop Liability & Assets
Wealth Management
Banking in the 21st Century

Strategy Discussion -contd


Taking the war to the enemy camp
(Frontal Attack)
Recruitment of top execs of competition

Case Study 3: The Yes Bank case.

Going for entirely new markets (Flank


Attack)
Case Study 4: ICICI Bank The Rural India
Foray.
Banking in the 21st Century

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Strategy

Promotion
Client: Mid-Sized Financial Firm
Challenge:Increasing the firms visibility and reinforcing its credibility.
External Agency Work:Worked with this selected partner to package
their expertise and position them as resource to the media for background or
expert commentary, story ideas, and by-lined articles. Obtained speaking
opportunities at financial service firms that served as referral sources.
Client Benefit:
Enhanced visibility A steady stream of articles, interviews, and profiles,
increased the firms visibility and reinforced its key-player status in
financial services.
Reinforced credibility Third-party validation resulting from speaking, and
media attention emphasized their credibility and top-market positioning in
financial services.
Leveraging Rankings on lists increases a firms visibility and contributes
to top-of-mind awareness.
Opportunity for leverage Using marketing material as communication
vehicles, e.g., distributing reprints/eprints, posting on website, etc., extended
visibility as well as the shelf life of the marketing investment.
Banking in the 21st Century

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Strategy

Promotion
Client: Large -Sized International
Financial Firm
Challenge:Late Entrant into the Market
Strategy adopted :Tied up with a Leading
Angel Investor who has invested in
businesses in the country on a referral fee
basis for getting entry into new client
relationships.
Banking in the 21st Century

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Relationship Management
in
Financial Services

Relationship Management
Why do we need it
How do Banks imbibe it
Segregation of Accounts
Mapping of Accounts

Relationship Manager (RM)


Traits
Skill sets (Education/Certifications/Upgrade)
Role of an RM.
Banking in the 21st Century

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Customer Relationship Management

(CRM)
Why CRM is the need of the hour
Using the backend knowledge to improve
the human interface efficiency.

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CRM contd
Discussion on CRM tools used
Detailed Profiling of customer at Entry inc

KYC
Call Reports and Portfolio Reports
Call back / Recorded Line
Inter Departmental/Geography Referral
incentive scheme
Banking in the 21st Century

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Thank You