Customer Based Business Model Essay

Almost all banks have a wide variety of products to offer to the customers. There are regular transaction between the customer and the bank and therefore many notifications and records, that are required by both the bank and the customer for their satisfaction there are many requests that a customer makes that the bank has to oblige and thus keep records of the same in order to refer to them when ever required.

It therefore goes with out saying that the banking sector any where in the world has the highest frequency of paper work that needs to be stored for future references, no doubt that the technology has improved and that various requests can be sent across through e-mails, however banks require physical possession of the same and thus it is convenient for the customers but very much the same as far the bank is concerned.

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ICICI Bank has always been looking to make banking comfortable and convenient as far as possible for its customers, and to manage the tedious paper work it uses the 5 ‘S ’ philosophy to help its staff retrieve and manage papers in the most efficient and the smartest way. ICICI Bank was quick to understand that to be a leader it has to satisfy its customer needs, be it product or service. Simple aspects like a, well organized and systematic work place increases efficiency and brings about customer satisfaction.

The 5 ‘S’ philosophy helps the staff to understand the importance of being organized at the work place. 5 ‘S’ Philosophy originates from Japan and came into deionization after the World War 2. It is one of the most powerful tool under the Kaizen umbrella. Kaizen theories originate from Japan and the word Kiazen basically means ‘change for good’, the word Kia means little, ongoing, good and the word Zen means ‘for the better’. The main aim of the 5 ‘S’ Philosophy is to eliminate waste, reduce processing time, and add responsibility to operational staff.

The Philosophy believes that small changes results in large improvements without large investments. The philosophy helps in organizing a work place in such a manner that efficiency of people & processes is enhanced. The philosophy identifies the 5 pillars of a managed work place •Sorting •Systematic Arrangement •Spic ‘n’ Span •Standardization •Self Discipline SORTING: The very first step is to identify where the philosophy is to be deployed it could be as small as a work station or as big as the whole office. A well organized work place motivates people, both employees as well as others.

The philosophy aims to improve safety, work efficiency, productivity and establish sense of ownership. Sorting basically means to divide the all the objects at the area where the philosophy is to be deployed into 5 broad categories 1. Needed regularly (BUCKET 1) 2. Needed but not regularly (BUCKET 2) 3. Needed regularly but not in excess quantity (BUCKET 3) 4. Wanted but not needed (BUCKET 4) 5.

Scrap (BUCKET 5) Items Needed regularly at the bank are account opening forms , pay-in-challans, DD challans, Rubber stamps, Stationery items, etc Items Needed but not regularly are Account opening forms of existing customers, Room freshener, Letter head, etc Need regularly but nothing excess quantity are loose cheque book leaves, floppies, printer paper, etc Wanted but not needed are items like cash reports, loan files, locker notice, files of audit reports etc

Scrap items are old brochures, old challans, old files, news papers, disposable items. etc SYSTEMATIC ARRANGEMENT: Systematic Arrangement basically aims at arranging and identifying things in a work area. Once sorting has been done at a work place and all different items are categorized the next step is to identify the right place where the needed and wanted items are to be placed. The 2nd pillar of the philosophy is also called as ‘PEEP’ which basically means Place for Everything and Everything in Place.

Every item after the sorting stage must have a place from where it can be located easily and quickly. Systematic Arrangement thus ensures that things are easily reachable. BUCKET 1 – Items Needed regularly- must be kept nearby so that they are easy to retrieve. BUCKET 2 – Items Needed but not regularly- a place that is further from the work station. BUCKET 3 – Items Needed regularly but not in excess quantity- 5 ‘S’ common area BUCKET 4- Items Wanted but not needed- located at a place from where it can be dispersed BUCKET 5- Scrap- Disposed of immediately

Work station is the smallest unit of a work place or an office. To organize the overall work space, every work station therefore must be systematically organized. This stage includes proper placement of items in a clearly identified easy to understand and systematic manner. Before putting things in the right place it is important that a lay out is made, a layout is a detailed drawing of a space that indicates the relative positioning of the elements in that space, the layout of a work place ensures that the exact location of the items are known not only to the owner but also to the visitors.

Work station layout must be displayed at every individual work station, while a department or floor layout must be displayed at a common place on the floor, the layout of the common storage area is to be displayed at the entrance of the same. Layouts must be made of both the front view as well as the top view The top view allows people to know who is sitting where and also where all the materials are located it is basically a bird eyes view it gives a clear idea of the exact location The front view indicates the storage area in a work place In a work station the most important is to keep the drawer in order.

Drawer Drawer A – can used to keep stationeries it is important to ensure that no excess or unwanted stationery items are in this drawer Drawer B – Is used to store files and documents which are used as daily referrals Drawer C – Can be used to store files and documents that are used once a month All storage areas, cabinets, shelves, drawers etc must be labeled and indexed properly. Alphabetical indexation must be prepared. Index must be labeled for frequently used manuals, brochures, books etc it helps to retrieve the items quickly and easily.

A master index must be prepared for the workplace, which contains the address of each item in the workplace. A soft copy of the same must also be kept. Thus systematic arrangement is not only putting everything in the proper place and setting up a system so that it is easy to place each item in its proper place but also good labeling practices so that files and documents are easily identified and proper storage locations are clearly known. The stage also analyses as to why getting things out and putting them away takes so long. Study of issue such as who are the people who use the items frequently and occasionally is also done.

Store –room require extra care if they are not arranged properly retrieving things would become highly impossible and a pain taking process. The very first step in order to arrange the store room systematically is to make a lay out of it, both again of the front view and the top view that would help to understand the area available where all items that have been sorted out will be placed except for scrap which will be disposed immediately. It would be important to designate the right areas for the right things and avoid rework. Files must be stored in terms of usage or in sequence of routine priority every day.

Files, Documents, Folders required often (BUCKET 1) must be kept at place closest and easily retrievable and must be nearest to the entrance of the store-room. BUCKET 2 items are farther than the regular needed items. Items in BUCKET 3 that is Needed regularly but not in excess quantity will be divided into 2, firstly items of optimum quantity should be placed at the work place and the second would be excess inventory that will be placed in the 5 ‘S’ common area. Bucket 4 items wanted but not needed will also be kept in the 5 ‘S’ common area.

Again high emphasis needs to be given on labeling the files and items before they are moved into the store-room. The labels should be in standard formats and should include Names of files, Start date and end date of files, Retention time, Owner of the file, Department to which it belongs, File number. Files of different departments should be stored in the store room and must have different color binding. There needs to be a segmented index for the store room that would help to indicate what items are stored where and in which shelf of the rack in the store room.

The index needs to be in alphabetically ordered. The index will be pasted inside the store room at the workplace. It must be clearly visible in the store room. All items in the store room are a part of the Master Index, a copy of the master index must be placed in the store room. The layout of the store room and the Index will allow easy access and easy retrieval of files and documents without having to search for them as layout and the index pin point exactly what is lying where.

For documents that need to have regular inventory levels a KANBAN card is used that allows the staff members to know exactly how much of inventory level is required and after what level there need to be an order and of how much and also the contact details of the person responsible for providing the same. The KANBAN card is placed over the documents so that it is visible to everyone who is using them the card also states the owner who is responsible to manage the inventory level. SPIC ‘N’ SPAN

Once all the items have been identified and systematically arranged, the emphasis is turned on being clean and keeping the files and the documents and all items in top condition. SPIC ‘N’ SPAN is basically cleaning with meaning. Each person is responsible to inspect and look out for damages, defects; potential problems identify them and fix them. They should also keep a check whether the work area is sorted and systematically arranged or not. Staff should look out for reasons and think out ways to overcome the problems.

SPIC ‘N ‘SPAN needs to be done on a regular basis and is an ongoing process. Places should be thoroughly cleaned. STANDARDISATION The good practices developed in sorting, systematic arrangement, and spic ‘n’ span must be standardized and made easy to accomplish. This step of the philosophy sees to it that the first three pillars i. e. sorting, systematic arrangement and spic ‘n’ span are standing strong. The main focus is on developing a work structure that supports new practices and make the habit for the staff. One of the most difficult and the hardest task is avoiding old habits.

It is easy to slip back into what one has been doing for years, because every one is familiar with it and feels comfortable. This step also looks into setting up rules, polices for handling items, files, documents at a work place. SELF DISCIPLINE Self discipline basically is for every individual to understand and see to it that he/she is following all the rules and the polices of all the 5 pillars. This step makes sure that employees check themselves whether or not they are following all the 5 steps or not. WEALTH MANAGEMENT Wealth management BATMAN does not need life insurance.

He certainly needs a wealth manager though. Bruce Wayne (Batman during the day) has no family dependants and therefore does not require life insurance. However, he has an industrial empire generating a large amount of wealth which needs to be preserved, grown and managed efficiently. Homer Simpson, on the other hand, absolutely needs life insurance. He is a family man with dependants and therefore needs to protect his family from any unforeseen events. We are all unique—just like everybody else! Who we are and what our life situation is or what we expect it to be has a large bearing on how we manage our money.

It is therefore very important that we have the right approach to managing our wealth and choosing the right wealth manager in advising us on an appropriate portfolio because there is after all a world of difference between Batman and Homer Simpson. An investor has to understand a few aspects that are common to everybody no matter how different one is. Following are some of the basics that you should dwell upon: Saving v/s investment: Saving and investment are often used interchangeably. However, your savings are not necessarily your investments. Funds set aside for future use can be termed as savings.

Therefore, cash set aside or left lying in a savings account giving a nominal return is savings. Investments, on the other hand, refer to funds that are put to use with a purpose of earning a return on them and are often made with a specific purpose. Risk v/s return: The most common characteristics that a novice investor wants in an investment product is that it should have no risk and very high return. Seasoned investors, however, are aware that returns on an investment product is commensurate with the risk taken by the investor. Higher the risk taken, higher is the probability of return.

Know thyself: It is very important to know yourself before venturing out to invest. Assessing your risk appetite, time horizon and return expectation is very important before you start investing. A risk profiler is a document available with most wealth managers and answering the questions contained therein will help you identify the kind of investor you are and consequently the amount of risk you can take. Start early:The power of compounding is stupendous. Time is of the highest essence in investing and the earlier you start the more you earn on an investment.

It is a good idea to start investing early in life for goals that seem distant. A good example is retirement planning. For instance, an amount of 10 lakh invested at the age of 40 in a product giving a 10% return per annum would grow to just above Rs 57 lakh at the age of 60. However, the same amount invested at the age of 28 would grow to more than Rs 2 crore by the age of 60. Your portfolio: Once you have identified your goals, it is important to have an investment portfolio that corresponds to your risk appetite, return expectation and time horizon.

Asset allocation is a key aspect of diversification which ensures that you get the best optimized return for the amount of risk taken. This is possible by combining asset classes in such a way that the combined portfolio carries a reduced amount of risk while enhancing returns. The market: Financial markets differ in nature, depending upon the asset classes and geographies involved. The Indian equity market, for instance, is not without its share of volatility and uncertainty. Though equities as an asset class has given higher return over the long term, investments in equities are subject to large gyrations n the short term. It is wise therefore to expose yourself to equity only with a resolute understanding of this short term volatility and with a faith in the ability of this asset class to deliver superior returns over a long period of time. Mutual funds: They are investment pools managed by professionals based on pre-determined objectives. They are excellent vehicles for investment and accord many benefits to the investor. The benefits include professional management, diversification, convenience and tax savings. There are many types of mutual funds spread among the various asset classes varying in risk and return.

An investor is best advised to be informed and educated about Mfs or better still, seek professional help while investing in MFs. Investors also have to understand that point-to-point returns should not be the basis of selecting a fund. There has to be a qualitative aspect to selection to augment quantitative methods to give the investor a holistic picture. Save tax: An effective way of saving tax is by investing in securities that are eligible for a tax deduction U/S 80C of the I-T Act 1961. Equity Linked Savings Schemes (ELSS) are among the many options available for saving tax.

ELSS schemes have a lock-in that is generally for three years and are quite effective in generating returns as the lock-in period ensures a long-term investment period. Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services. High net worth individuals, small business owners and families who desire the assistance of a credentialed financial advisory specialist call upon wealth managers to coordinate retail banking in ICICI Bank. t.

Wealth managers can be independent certified financial planners, MBAs, CFA Charterholders or any credentialed professional money manager who works to enhance the income, growth and tax favored treatment of long-term investors. One must already have accumulated a significant amount of wealth for wealth management strategies to be effective and is also one of the key areas that are growing at a tremendous rate. Wealth management can be provided by large corporate entities, independent financial advisers or multi-licensed portfolio managers whose services are designed to focus on high-net worth customers.

Large banks and large brokerage houses create segmentation marketing-strategies to sell both proprietary and non-proprietary products and services to investors designated as potential high net-worth customers. Independent wealth managers use their experience in estate planning, risk management,and their affiliations with tax and legal specialists, to manage the diverse holdings of high net worth clients. Banks and brokerage firms use advisory talent pools to aggregate these same services. For individual investors, risk tolerances have been tested, investment assumptions have been overturned, and fundamental truisms have been questioned. [1] For this reason wealth managers must be prepared to respond to a greater need by clients to understand, access, and communicate with advisers regarding their current relationship as well as the products and services that may satisfy future needs. Moreover, advisors must have sufficient information, from objective sources, regarding all products and services owned by their clients to answer inquiries regarding performance and degree of risk-at the client, portfolio and individual security levels. This state of affairs poses a dilemma for wealth managers, who, for a generation, have adhered to the core principles of asset allocation and earned their keep by preaching the mantras of ‘buy and hold’, ‘invest for the long term’, and when things get tough, ‘stay the course’. ” [2] Today wealth management advisors must have access to an objective content repository. This repository must contain a current and readily available profile of the clients holdings. Wealth is the result of a recognized opportunity. In ICICI Bank, “we understand this and we work with you to plan and manage your financial opportunities prudently.

Not just that, we also extend a host of services so you can remain focused on immediate objectives while we take care of all your wealth management requirements. ” The key feature is the wealth management group TEAM •A perfect partnership is about similar perspectives Goals, challenges, milestones. What drives our customers, drives us too. That’ s why the Bank has put together a team of determined and seasoned professionals who not just assist customers in their requirements, but also partner closely in their growth to bring their dreams to fruition. Dedicated Wealth Manager A dedicated Wealth Manager is central to an ICICI Bank Wealth Management relationship and is the face of the Bank. In fact he/she will be your personal guide to the possibilities of Wealth Management, and will work closely with you in achieving your financial goals. Clients will also have access to a Customer Service Manager/Officer, who will complement his Wealth Manager. •Expert minds to give you expert solutions Wealth Manager is only a part of the larger team which ensures that customer’s money works harder.

Working silently behind the scenes is a team of product experts. These handpicked experts have a wealth of financial experience under their belt and will assist them in their decision-making process. PORTFOLIO BUILDING Our investment process starts with understanding customers – their background, investment objectives, risk tolerance and existing investment pattern. A comprehensive risk-profiling exercise helps us in evaluating your risk appetite and understanding their investment objectives, which are kept in mind while building their portfolio.

STEPS Investment Planning Based on customers investment goal, wealth requirements, investment horizon and risk profile, we construct a suitable asset allocation plan for them. During this exercise, we also evaluate and realign their existing investments as per the suggested asset allocation, in case required by them. Portfolio Construction From our wide range of investment avenues, we construct appropriate solutions to implement their investment plan and evolve a tailor-made portfolio for their specific requirements.

This would involve execution of investments in debt, equity, structured products or alternative asset classes as per the suggested asset allocation. Portfolio Maintenance We monitor customer’s investments and periodically suggest rebalancing in the portfolio for maintaining the asset allocation or aligning their portfolio to changes in macro-economic factors that might affect their investments. Portfolio Review As their investment preferences or financial goals change over a period of time, we review their portfolio periodically with them to discuss and implement any changes in asset allocation or portfolio strategy.

All with a view to keeping their portfolio healthy at all times PRODUCTS OFFERED BY THE BANK TO THE WEALTH CUSTOMERS There various investment product s offered by the bank to the wealth group customers so as to satisfy the needs and demands of the customers. The products are recommended as per the risk appetite of the customer. The various products are: •Fixed Deposits •Online Trading and Mutual Funds •Physical Gold in the form of gold coins, bars etc •Life insurance of ICICI Prudential •General Insurance of ICICI Lombard •Retirement policies •ULIPs •Structured Products Private equity •PMS – Portfolio Management Services. The different instruments offered are not restricted to ICICI’s own ICICI Prudential’s products but the products of other institutions are also offered depending upon the performance of the product. PRIVILEGES As an exclusive client of ICICI Bank Wealth Management, customers enjoy their banking experience even more and feel every bit privileged. We take that extra step to make them feel special. Be it Preferred Rates on loans or deposits; Privileged Features on their account or Priority Processing on any product/service they seek.

Banking Products and Services Customers are entitled to unlimited access to the ATMs of any bank. They can withdraw cash or do a balance inquiry at any of the ATMs… absolutely free! Money Multiplier With their Wealth Management account, we give customer the opportunity to earn interest rates of Fixed Deposits. This ensures that they enjoy the returns of fixed deposits and liquidity of savings account. This facility is available only on request. Other privileges •Waiver of charges for non-maintenance of Average Quarterly Balance •Discount/waiver on safety locker charges Anywhere banking – Complete waiver of charges •Demand draft/Pay order – complete waiver of charges •Free Multi-city Cheque Book – Makes outstation financial transactions just a signature away. Investment & Services ICICI Bank Pure Gold Customers can purchase ICICI Bank Pure Gold coins/bars at preferential rates. Our 24 Carat Gold is imported from Switzerland and carries a 99. 99% Assay Certification, signifying highest level of purity, as per international standards. Credit Assistance Bank offers customers a wide array of Home Loans, Personal Loans and Auto loans.

They can also enjoy preferential interest rates, discounted processing fees, enhanced loan limits and priority processing of loans. In UP region, currently only Home Loans and Commercial vehicles Loan service was available. Foreign Exchange Services •American Express Travelers cheques and ICICI Bank Travel Card •No load/reload charges on travel card •No commission charges on Travelers Cheque either •Benefit from preferential rate on sale and encashment of foreign currency. Internet Banking – Customers can Log on to www. icicibank. com and they can bank at “their convenience” at anytime and from anywhere Mobile Banking

With Mobile Banking from ICICI Bank, customers can conduct several banking transactions. It’s quick, convenient and absolutely safe. Debit Card Customers also have their very own Personalized Wealth Management Platinum Debit Card. This card brings together a host of benefits and offers that are valid both nationally and internationally. Exclusive Phone Banking Customers are need to register their mobile number with us and every call they make to our customer care centre will be directly connected to the Wealth Management Phone Banking Officer.

Exclusive Wealth Management Zones Exclusive wealth zones are located in various cities for the ease of customers. Dedicated Service Helpline Customers can email their request to: [email protected] com or call our Toll Free no. at 1800-22-8181 and connect with a Wealth Management Phone Banking Officer Seminars and Special Events We also help customers stay tuned to the latest trends in financial markets. We also go beyond taking care of their financial needs, and encompass their cultural interests as well. Research Review

Our Monthly newsletter – Investment Review, provides a deep insight into the world of equities,bonds,alternate asset classes alongwith macro-economic views on the global markets. Finacle wealth management solution is a modular, fully scalable, integrated core banking and investment management system designed for the specific needs of retail and private banks. It offers a unique combination of an extensive portfolio of functions with impressive flexibility that enables end-to-end processing of investment products from diverse asset classes including structured deposits, structured notes, equities, mutual funds and insurance.

Financial institutions can leverage the solution’s rule-based definitions to launch new products – such as dual currency deposits, principal protected deposits, and range accrual deposits – with a distinct time-to-market advantage. Integrated with Finacle core banking and CRM solutions, the wealth management solution ensures unique customer definition, a single, unified view of the customer’s portfolio across asset classes and seamless flow of transactions. This helps banks capitalize on their customer base to create additional revenue streams, by offering HNWI and the mass affluent extended products and services.

Key Modules •Structured Products •Mutual Funds •Equities •Insurance Business Benefits Leverage the HNWI Opportunity Finacle wealth management solution enables financial institutions to derive rich integrated insights about the HNWI client’s investment portfolio. Sophisticated analytics, relevant financial planning and asset allocation tools can be deployed, to leverage the opportunities presented by hot listed clients to explore prospects for cross-selling and fee-based personalized advice.

Ease of Enhancing Product Portfolio The user-friendly solution provides never-before flexibility to tailor solutions and create new product flavors for emerging customer segments. It enables business users at the bank to add innovative functionalities and features to their offerings, without changing the source code of the application. The solution also interfaces seamlessly with satellite and specialized systems, easily supporting faster roll out of new products at the bank. Higher Operational Efficiency

Finacle wealth management solution provides complete Straight Through Processing (STP) and is fortified with a powerful integration framework to interface with the bank’s core banking solution and external data sources. This plays a crucial role in minimizing operational delays and ensuring seamless transaction flows at the bank. Every financial operation is processed identically. Execution either ensures a successful update of all related data or a complete rollback in case of a technical problem. Consistency and reliability are guaranteed.

Fully integrated and component – based, the solution also ensures consistency of data. Access rights are rigorously managed, every transaction request is checked and systematic records are maintained as audit trails, ensuring robust security. The solution allows users belonging to different legal entities to work on a single system and database. This directly results in significantly lower implementation costs and ease of centralized reporting for the bank. Lower TCO The solution allows users, belonging to different legal entities, to work on a single system and database.

This directly results in significantly lower implementation costs and ease of centralized reporting for the bank. Retail Business Development ICICI has been quick to understand that the current scenario of banking in India is changing, it is not the same anymore , the public has various options to choose from with not much differences in the saving rates and other rates too, they needs to come up something that people are attracted to it , it should be something that differentiates itself from other banks. ICICI soon realized that they have to be customer oriented and have to understand the current status of lifestyle of the people.

They were quick to understand that with the hectic work schedule of people, banks have to change, their style, their working hours etc. ICICI is the first and the only branch so far in India that have working hours from 8 am to 8 pm. With the new banks entering into the market and margins filling up the competition has got tougher, but ICICI has been quick to understand the needs of its customer and has molded itself and in fact made itself flexible. ICICI also understands that customer demands value for their money the service quality standards at ICICI bank allow them to deliver better products faster.

It is a fact that banks have been under immense pressure due to new entrants. The competition has been on a high. It is very clear customers would be willing to shift their money to new banks where they find a better rate of interest, however the rate difference between banks as very marginal and therefore the situation has not come into action and thus what is left is which banks can actually provide customers with meaningful and unique services. ICICI definitely stands out for the various services it offers to its customers also it has been able build a very strong trust with its customers which actually is the key to success.

ICICI bank has therefore been looking to innovate services that actually help their customers. They have been finding out ways for their customers that allow them to feel comfortable and hence building their trust with them. A bank never sleeps, it does not have a maximum limit, in order to grow in the present scenario banks have to make sure that they attract new clients not only by providing them new service but also by making them aware and wining their trust. ICICI has been encouraging their staff to net in customers and serve them with the best possible way.

ICICI has been training their staff for the same with special programs that have been recognized throughout the world. Earlier the bank use to follow the Enhancing Relationship Value (ERV) model but seeing the present scenario of banking the bank has changed its model to Retail Business Development (RBD) Retail Business Development (RBD) looks at selling banking products not only to existing customers but also to new customers by proactively making them aware of the products offered by the bank.

Retail Business Development (RBD) as the name suggest is the task of cross selling and up selling vested on the shoulders of the retail branches itself rather than the call centers calling up customers. The model gives emphasis that the retail branches of ICICI are the customer interface, when a customer walks in the branch with the mood to resolve his banking issues that is actually the time when probably will be willing to listen to what the executives have to say, all other sales channels may approach a customer at a time when he is not in a mood to listen and buy a bank product.

The model also goes with the old saying that “no sales without good service” the retail branches provide the customers with the services, a customer whose service issues are solved at the branch is more susceptible to purchase a product, thus there is a need for good and quality service to be rendered at the retail branch. Customers anyways connect better with an employee calling from the branch rather than a sales executive who he has never known, the model therefore also gives importance to building a good rapport with the customers on a an individual basis.

To conclude the new model Retail Business Development (RBD) has put across a very important and a major responsibility on retail branches to act as lead generators whose main aim is to increase retention of existing customers and at the same time try to net in new customers CONTENTS OF RBD Although it would be difficulty to clearly define the boundaries of RBD as to what all should be considered under the RBD model the following are some of the contents of RBD that are crystal defined. All Fixed Deposits more than 6months •Activation of Auto invest Quantum Optima 70% of the customers do not have Quantum Optima. •Cheque pick-ups for amount to be deposited in Auto Invest Quantum Optima enabled accounts •Leads across -Retail Liability Group -Small Enterprise Group -NRI •All accounts in new customer id, all accounts in same customer ids and recurring deposits opened. •Insurance Products -Mutual Funds -Insurances -Gold Coins •RBI bonds with non ICICI bank cheques.

Accountability: All employees of the retail banking are converted into lead generators, it is on their shoulders now to make sure that cross selling and up selling of products takes place they have to make a rapport with the clients and take them into confidence for buying newer and better products that come up, the employees have thus make sure that the customers are ell aware as to what new is coming up or what are the usp of the various products of the bank. The job of profiling the customer and understanding his need is now vested on the retail staff. The retail staff is expected to To make at least 250 calls per month that is recorded in the software •Convert at least 25 leads per month, which practically means 1 lead conversion per day. SCOPE OF RBD IN INDIA: RBD has had success in many parts of t he globe the model initially originated in Australia. With the increasing GDP in India and people having more disposable income in their hands the RBD modes definitely has a bright future ahead. The world has no doubt seen India as one of the biggest player of out sourcing, this is very evident with the number of call centers that have come up in the country.

India has a large pool of highly educated professionals who speak English, India has the second-largest English-speaking population in the world. Also english is the principal language for business transactions in India supported with world class facilities and infrastructure, increasingly good telecom connectivity, and the capability to handle a range of services, High availability of educated, computer literate and English speaking customer care professionals The work force is highly reliable and can deliver world-class quality and ensure rapid delivery of service.

Indian companies are also increasingly adapting to international quality and security standards, are just some of the reasons why outsourcing customer support to India is so popular. The Indian government has given a special thrust to the industry by reducing the prices of high-speed international private leased circuits. The recent IT boom has prompted the Government of India to announce exemptions from income tax and customs for the exports of IT enabled services. The central and state governments have put emphasis to set up state-of-the art infrastructure for the projected boom for IT enabled services.

Indian companies can provide inbound customer support services at competitive costs compared to the same services in other countries Taking into consideration the scenario of increase in call centers in India and the reasons behind it, it goes without saying that the sector will only be expanding new jobs and roles to the youth. Manpower required at the call centers allow under graduates to work and start earning at an early age According to the IMF India’s economic growth will increase by almost eight folds in the next 40 years.

The future of India does seem very bright, The reason why GDP growth has remained strong since 1991-92 is that the contribution of non-agricultural sectors has considerably increased. This has enabled the economy to withstand sharp declines in the agricultural sector and yet register good overall growth. The declining role of the agricultural sector in the Indian economy is the most noteworthy development. With the increasing contribution of the non-agricultural sectors, the Indian economy is arguably undergoing a structural shift towards the fundamentals of a developed economy.

Thus with the growing economy and the ever growing job opportunities the income level of the country would definitely climb up, leaving more people with more in hand. The RBD model would therefore have a bright chance for the bank to try and sell new or other products to its customers and also find new customers to take up various products the bank offers. ADVANTAGES OF RBD: •It acts as a value addition driver within the employees, they feel highly motivated as their roles expand and responsibility is vested on their shoulders. Also the RBD model allows the employees to be aware of all the products, its features and the procedures. Since the model emphasizes on cross selling and up selling employees need to be upto date with the latest products and their features and act as lead generators for other products as well. •The RBD model adds a sales aspect to the profiles of the employees, they actually get to learn the practical aspect of sales as to what all difficulties are generally faced and also learn the power of convincing people. •Least to say the RBD model plays a very big role in the contribution of the branch and the organization.

THE RBD PROCESS: 1st step- Using database from the ERVCMS software, Relis a software that has details of the account opening forms, Lead management system where pending actions are stored, foot fall at the branch or various other channels of RBD employees generate leads. 2nd step- Employees need to understand as what the customers require and then plan out a cross selling strategy as to what a customer may want, the main idea is that the employee handling a customer must try and profile his customers according to his age, by analyzing his income, his needs, etc.

Once a customer shows interest in a product the details and names are entered into the Lead management system this allows accountability as the software requires the employee code before any lead is entered in it and thereby earning the credit for the same. 3rd step- Leads that have been entered into the Lead management system are given to the respected sales team. 4th step- The Lead management systems has full details whether the lead has been converted or not and infact can give details as to how far the employees have reached with the customer. th step- Branch and employees are evaluated on the numbers of leads converted CHANNELS OF RBD- •Tele-selling- Tele selling is basically when the employees profile the customers over the phone and then try to cross sell or up sell their products according to the needs of the customer. Tele selling is of two types 1. Inbound calling 2. Outbound Calling Outbound calling is basically proactive as the bank takes the initiative and call up customers on their own whereas outbound is when customers call up on their own, customers maybe existing customers, referrals, or new customers.

The employees act as a relationship manager for the customers and this is the quickest and the most convenient way to establish contact with customers, immediate response of the customer is taken and is also considered the most efficient way of offering products and services to customers one by one. however many times in practical life people do not show immediate trust with the person over the phone. Walk-ins and Foot-falls- This is a very traditional way of selling services and products as the bank has to wait for customers to take the initiative rather than reaching out to them on their own. Many customers walk in with a query and are therefore not interested in listening to various new products that they could be offered however many times walk-ins and footfalls are a good source as customers may come to the branch with a mood to buy a product or service an during this he/she will be in a mood to talk about his/her other needs and listen to what the bank has to offer them. Campaigns-Campaigns are one of the best way of attracting the target customers, although campaigns mainly aim at increasing the awareness level of customers regarding the products, services offered and their features they act as major lead generators because people interested in the products/ services are the ones who are generally attracted to such campaigns people at the campaigns can take down contact details of interested customers and the leads can be passed on to the branch. Direct Mailers: Direct mailers can be sent out to almost all customers with the features of the product / service that the bank wants to offer them, however the response is not immediate. The model identifies that the customers needs are of two types- 1. Material: The material needs include required quality, required quantity, reasonable price, quick decision, safety, and performance as per claim. 2. Emotional: The emotional needs require attention, respect, politeness, importance, following up, fairness It is important for employees to understand these needs of customers

THE CUSTOMERS BUYING PROCESS The customers buying process goes through many stages it is not that one fine day he gets up fells he should buy a product and has it the next moment. The employees need to understand this process in order to interact better with the customer. The customer buying process is called as the “REED” model The process is divided into 4 main stages as follows 1. Reorganization: A customer buying a product or a service is actually a result of realization that he/she has a need for the same this realization may be due to various factors general or personal.

This is the stage where the customer is ready to listen and search for options. The stage is thus called the Reorganization of need. 2. Evaluation: Once the customer has realized that he wants to buy a product or a service he starts to look at the choices and the options available to him that fit his budget, needs etc. He then evaluates them on the basis of his preferences. This stage is thus called the evaluation stage where the customers evaluates the product or service that suits him. 3.

Elimination: The customer in this stage wants to eliminate all his doubt regarding the product or the service he is look at as a considerable option, he would want to clarify doubts regarding quality, performance, credibility, and safety. This stage is called the elimination of doubts stage. 4. Decision: In this stage the sales representative needs to convince the customer no customer wants to like the decision pending too long and therefore after a successful decision the customer buys the product or service. Selling depends upon the ability to identify the buyers needs.

If the need of the buyer and the motivation to buy the product is known by the sales representative selling will be effective. THE SELLING PROCESS: The sales process to is divided into many stages, an effective sales representative knows how to explain his/ her product to the customer. The stages are as follows 1. Opening: In case the sales representative is visiting the client for the first time or the client is not an existing customer the representative needs to greet the client, introduce him/her self and the Bank, and then only introduce the product and strike a conversation 2.

Developing A Sale: The sales person needs to extract as much specific details relating to client’s needs, problems, budget and buying criteria this would help the representative to decide which product he may offer to the client 3. Proposing A Solution: Once the sales representative has full knowledge regarding client’s needs, problems, budget and buying criteria he can go a ahead and propose various solutions to the client that meet his needs, products and services generally are not tailor made and therefore may not have the exact fitting as required therefore the products and services best suited to the client should d be proposed. . Eliminating Doubts: Since products and services do not fit exactly according to needs of customer, the client would have a few doubts and queries that he would want to clarify before he takes a decision. The sales representative should be in a position to answer all such queries. It is important the sales representative has the BPC knowledge*. 5. Closing: The sales should only be considered complete when the client has said yes and gives order and the money. The sales representative must try and cross sell other products or services only when the initial deal is complete.

There are 2 selling styles: 1. Push Style: In the push style the seller tries to sell what he fells the customer should buy, this is used when the client does not have much knowledge about the product or service he wants to possess. 2. Pull Style: In the pull style the sales representative identifies the customers needs, budget, etc and then sells a suitable product that matches the customers requirements. This style is used generally when the client has full knowledge of the features of the products he desires and is focused on some critical aspects of the product or service . *BPC KNOWLEDGE

BPC knowledge is basically the knowledge regarding •BANK: Turnover, Profit, Establishment date, Branches and ATm network, Services, Tie-ups, Market share, New items, Policies etc •PRODUCT: Features, Benefits, Price, SWOT analysis of the product, Schemes •COMPETITORS: Line of business, Product range, SWOT analysis of the competitor, Prices, Schemes, Network, Market share. The BPC knowledge helps the sales representatives to be confident and creates a good impression on the minds of the client, also it allows to answer the clients queries on the spot that helps to build trust in the product and the bank.

ADVANTAGES OF KNOWING THE SELLING AND THE BUYING PROCESS The sales representative starts to build a relationship with the client when he visits the client for the first time, now at that point of time the client maybe in any of the buying stage. If the sales person is able to identify the stage customer I sin the buying process it would be easy for the sales representative to match it with his efforts, his job becomes clear too and he would then take up an appropriate action in the selling process.

Example say customer is in the process of eliminating doubts then the sales representative would focus on eliminating doubts and queries rather than introducing the bank or closing the deal. BUSINESS MODEL For framing out an appropriate business model, I conducted a survey, for which I prepared a questionnaire. That Questionnaire was filled by the customers who use the banking facility on a regular basis or who has their savings/current A/c with us, apart from them being a trainee of wealth management team I got this questionnaire filled by wealth and HNI customers as well.

So over all the result of this questionnaire includes all customers dealing with the bank. The main purpose of this questionnaire was to analyse the needs and requirements of the customers, secondary objective was suggesting investment option for that I‘ve done risk – profiling of the customers. Let us take a glance at the questionnaire first Q1. We will be pleased to know your good name Q2. We will be glad to know your business Q3. May I ask your average annual income? a)5,00,000 – 10,00,000 b)10,00,000 – 15,00,000 c)15,00,000 – 20,00,000 d)20,00,000 & above Q4. Please specify your age

Your retirement age . Q5. We want to know your marital status? a)Single b)Married c) Widow/er Q6. Do you have children? If yes then please specify there number Q7. Have I planned for major expenses, both foreseen and unforeseen {such as Child Higher Education/Marriage, Purchase of House, Hospitalisation, retirement etc a) Have no separate provisions for these expenses b) Have made some provision for these expenses c) Yes, I have separate provision for these expenses d) I do not expect to have such expenses

Q8. Your current holdings with ICICI bank are in the form of Q9. May I know the value of your holdings in ICICI Bank Q10. Your current investments in other banks are in the form of: a)Savings account f) Equity b)Fixed deposits g) Government Bonds c)Mutual Funds h) ULIPs d)Gold i) Insurance please specify…………. )Nil j) If any other, then please specify………… Q11. Do you need regular income from your investments? If YES, then please specify the average amount? Q12. Are you an accumulator or a retiree? Keeping this and your primary goals in mind, how long is it before you expect to need access to the majority of money invested? a)1-3 years b)3-7 years c)7-10 years d) More than 10 years Q13. My investment policy can be best described as: )I feel most comfortable with stable investments that involve lower risk and generate lower but consistent return year to year b)I am willing to withstand minor fluctuation in the value of my portfolio but prefer to be invested in less risky investments c)I want moderate capital growth over long term period but averse to taking high risk but I am prepared to short term fluctuations in returns. d)I seek substantial investment returns and m willing to accept occasional short term decline associated with this strategy. e)I seek potentially high investment returns and m willing to accept the higher risk of potential strategy.

Q14. If my investment in particular stock falls by 25% and there’s no change in the fundamentals of the company (assuming that my circumstances and my conviction remains the same) I will: a)I do not trade in stocks. b) Sell all of my holding in that stock. c) Sell part of my holdings in that stock. d) Hold in-order to get better return. e) Buy more of the stock. Q15. Several portfolio performance projects are listed below. Assuming that inflation averages 6%, check the portfolio that most nearly reflects your goal for your portfolio. Portfolio Overall Expected Risk

Compounded Expected Annual Level Return Best Returns Worst case A 2. 5% 6% 12% 2% B 5% 9% 18% 1% C 10% 15% 30% -10% D 12% 20% 45% -20% E 20% 30% 50% – 30% Q16. To meet foreseen and unforeseen circumstances I need to keep of my investment in liquid instruments e. g.

Saving Bank a/c, Fixed Deposits etc a)More than 50% c) 10% – 25% b)25%-50% d) Below 10% f)None of my investment Q17. Do you make investments to take the benefit of tax saving only? a)Yes b)No, Not only for tax saving. I invest to have a secure future. Q18. How do you react when you receive any call from ICICI Bank? a)Normal reaction: listens to the relevant schemes with patience and always gives a thought to it b)Try to ignore the call as I m having a very busy schedule. c)I don’t like to take such calls Q19.

Rank the services of ICICI Bank: a) Excellent c) Satisfactory b) Good d) Poor Q20. Some changes or some needs of yours which the bank should take into consideration: Your contact Number: . This questionnaire has three main parts •Personal details of the customer •Risk profiling of the customer •Services of the bank and requirements of the customer. Let us look at the result first

Q. May I ask your average annual income? Maximum number of people belonged to income category of 5,00,000-10,00,000. Q. Please specify your age Maximum people were under the age group of 30-40 years Q. Marital status Maximum percentage of people was married. Q. Have I planned for major expenses, both foreseen and unforeseen {such as Child Higher Education/Marriage, Purchase of House, Hospitalisation, retirement etc a) Have no separate provisions for these expenses b) Have made some provision for these expenses c) Yes, I have separate provision for these expenses d) I do not expect to have such expenses

Most of the people surveyed have done planning to meet out their future liabilities Q. May I know the value of your holdings in ICICI Bank Q. Do you need regular income from your investments? If YES, then please specify the average amount? Q. Are you an accumulator or a retiree? Keeping this and your primary goals in mind, how long is it before you expect to need access to the majority of money invested? d)1-3 years e)3-7 years f)7-10 years d) More than 10 years Q. My investment policy can be best described as: )I feel most comfortable with stable investments that involve lower risk and generate lower but consistent return year to year b)I am willing to withstand minor fluctuation in the value of my portfolio but prefer to be invested in less risky investments c)I want moderate capital growth over long term period but averse to taking high risk but I am prepared to short term fluctuations in returns. d)I seek substantial investment returns and m willing to accept occasional short term decline associated with this strategy. e)I seek potentially high investment returns and m willing to accept the higher risk of potential strategy.

Q. If my investment in particular stock falls by 25% and there’s no change in the fundamentals of the company (assuming that my circumstances and my conviction remains the same) I will: a) I do not trade in stocks. b) Sell all of my holding in that stock. c) Sell part of my holdings in that stock. d) Hold in-order to get better return. e) Buy more of the stock. Q. Several portfolio performance projects are listed below. Assuming that inflation averages 6%, check the portfolio that most nearly reflects your goal for your portfolio. Portfolio Overall Expected Risk

Compounded Expected Annual Level Return Best Returns Worst case A 2. 5% 6% 12% 2% B 5% 9% 18% 1% C 10% 15% 30% -10% D 12% 20% 45% -20% E 20% 30% 50% – 30% This was a major tool for Risk Profiling and the result is majority of the customers belong to moderate category.

Q. To meet foreseen and unforeseen circumstances I need to keep of my investment in liquid instruments e. g. Saving Bank a/c, Fixed Deposits etc a)More than 50% b) 10% – 25% c)25%-50% d) Below 10% e) None of my investment Q. Do you make investments to take the benefit of tax saving only? a)Yes b)No, Not only for tax saving. I invest to have a secure future. Maximum people do there investment for enjoying the benefit of tax deduction from their investments.

Apart from it many customers invest for booking good returns only. Q. How do you react when you receive any call from ICICI Bank? a)Normal reaction: listens to the relevant schemes with patience and always gives a thought to it b)Try to ignore the call as I m having a very busy schedule. c)I don’t like to take such calls Out of 100 maximum customers doen’t receive any calls from the bank. This is a area were the bank has to work out Q. Rank the services of ICICI Bank: a) Excellent b) Satisfactory c) Good d) Poor

My aim while framing out this model was to reduce the percentage of customers belonging to category d) i. e who ranked the services of the bank POOR and to increase the percentage of customers in category a) i. e who ranked the services EXCELLENT. RISK BEARING CAPACITY OF BANK’S CUSTOMERS Some suggestions from the customers THROUGH MAIL: •I think the banks should use more IT for providing transparency in the system. More SMS alerts and etc can b used for the same. •Door to door cheque collection. •Round the clock money transfer. (RTGS). Without charging extra money •Minimum account balance which is very high

SUGGESTION THROUGH QUESTIONNAIRE NAMEHOLDINGSSUGGESTIONSRisk score RAJIV VERMA10,000Charges of interbank should be reduced, OD limit should be introduced, documentation system should be made a little bit flexible so that it may not trouble the customers, Car loans system should be introduced. 38 A. P. Singh2. 5 lacNormal services are good but can be made improved to reach the excellent level. 32 Khurram Bakhtawar50,000-60,000Telephonic Customer care service is not upto the mark. Balanced unknown43 bank accountsHe closed all bank accounts due the over charging of interest rates by the bank.

His complain was about the high floating rate charged by the bank, it was higher than the market rate. Avneesh15,000 Network problem. Often employees cannot access internet and hence the regular banking activities hampers. So the customers face problems. Ram Niwas Goyal20,000-25,000Inter- branch transaction are inconvinientRisk averser Manish sharma4 lacNew investment products should be introduced. The staff must be updated about the new changes. The staff must be knowledgeable. Net- banking should be made more convenient. Baldev Singh2-5 lacAssistance should be given to senior citizens coming to bank.

Campaigning for new investment options should be done aggressively. Prateek Malhotra25,000a/c Neeraj jain15,000More organization is needed. Employees are less sophisticated than we found in metro – cities. Akash Gupta1 LACCharges, transaction tax, problems not resolved,Conservative Puneet Sharma50,000beveragesBalanced Ashish gupta25000ATM card is issued in place of debit card when debit card was misplaced. the application for the issuance of debit card was already made inspite of that problem occurredConservative Satya prakash15000Number of cash deposit counters should be increased.

Conservative Pooran singh yadav15000+Number of cash counters should be increasedBalanced Vikas jain1. 5 lakhsAuto loans,regular alerts for the schemesconservative Rahul Chaturvedi5 lacRegular statements should be issuedRisk averser PORTFOLIO DESIGNING After the Risk profiling the next step is to design a suitable portfolio for the customer depending upon the following factors: a)Investment amount b)Investment tenure c) Current investments d) Future liabilities There’s no hard-fast rule to design a portfolio. But under the guidance of my mentor I learned this art.

Following are the tools which I used to design the portfolio of the customers of ICICI bank: •Retirement Calculator •Life Insurance Premium Calculator •Inflation Calculator •Compounding Calculator All these tools are available on the website of iciciprudential. Some portfolios which I designed: Customer Name – Mr. Kamal Deep Singh Present Age-36 Retirement age-60 Annual income-Rs. 7,00,000 Current holdings-Rs. 1000000 Life cover Required-Rs 1,40,00000 Investments should be 1. Elite pure protect insurance policy of Rs. 5000000 Required annual premium17,0335000000 2. Rs 5000 p. in HDFC top 200,then returns will be 8363436 3. Retirement policy = 14000018463142 4. Go Bond @ 8% Amount to be investedRs. 100000292000 Total cover32118578 monthly savings should =18,086 CASES Monthly income =58333. 33333 liabilities household expenses=10000 child education=5000 other liability5000 CASE I when loan liabili ty is there EMI25,000 his savings would be10,000 1. Elite pure protect insurance policy of Rs. 5000000 Required annual premium16,0415000000 3. Retirement policy = 102804 p. a13604420 4. Go Bond @ 8% Amount to be investedRs. 100000292000 Total cover18896420 MONTHLY SAVINGS9903. 5 CASE II IN CASE HE SAVES MORE 1. Elite pure protect insurance policy of Rs. 5000000 Required annual premium17,0335000000 2. Rs 5000 p. m in HDFC top 200,then returns will be 8363436 3. Retirement policy = 14000018463142 4. Go Bond @ 8% Amount to be investedRs. 100000292000 5. Magnum fund balanced Rs. 2000 [email protected] 35463952 Total cover65927904 monthly savings should =20000 CASE III In case he doesn’t want to invest in MF 1. Elite pure protect insurance policy of Rs. 5000000 Required annual premium17,0335000000 2. Fixed Deposits634118 3. Retirement policy = 14000018463142 4. Go Bond @ 8%

Amount to be investedRs. 100000292000 Total cover24389260 Customer Name – Mr Satyendra Present Age-29 Retirement age-60 Annual income-500,000 Current holdings-1,300,000 Life cover Required-9500000 Investments should be As he already have a insurance,so better not to give any Insurance Plan Required annual premiumMagnum fund Rs [email protected] Retirement policy=Rs. 9136727761739 Total cover37737750 monthly savings should =10114 Monthly Income41666. 66667 liabilities household expenses=10000 child education=nil other liability20000 saving11666. 66667 Rahul Chaturvedi Current Income: 5 lakhs No liabilities as such

Calcuated additional life cover is Rs 9900000. For insuring Rs 9900000 by the age of sixty the person can go for the following: 1. He can take life insurance policy of worth Rs 25 lakhs since he doesn’t have such insurance neither from ICICI nor from any other institution. For this policy he has to pay an annual premium of Rs.. 11165 (inclusive of taxes) 2. To go for SIP of templeton all debt mutual fund which has reported an annual return of about 7. 83% For this he’ll have to pay Rs 5000 monthly, so that by the age of 60 his investment will give the return =5572868 3.

Amount Rs 5800 can be invested in bonds at the rate of 8% for 27 years = Rs. 1900000 Total return after 27 years will be =Rs 9974868 Per month savings should be= Rs. 5931 apart from Rs. 5800 bond investment. Problems faced by the customers •Signature problem by senior citizens •Identification problem : Customers having long-term relationship do face problem when they are asked for their ID proof •Issuance of bank’s statements – Bank’s sta

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