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Created by : Rashmi Patil, Financial services  | 09 30 2009 11:35:24 +0000
Industry : BankingFunctional Area : Business Models(Strategy & Execution)
Activity:  1008 views;  last activity : 07 06 2010 20:18:09 +0000

It is said that Banks are now opting to sell products over phone, and the other day to one of my friend got a call from his bank and was given an attractive offer. The proposal was simple but irresistible - for a small one-time payment, the bank would not hold him liable for any purchases made on his card after it was lost or stolen.

Drawn by the low fee, he opted for the scheme. Few days later the card documents were mailed to him. That was when he realised what he had gone in for. He discovered that the protection offered was only for a year. He also found out that if the card was misused before it was reported lost, the insurance cover was less than what was promised. Luckily he had the presence of mind to cancel the policy .  But not all consumers of financial services are as alert.

The positive side of this is that it allows distribution of low-cost schemes where revenues do not justify sending an salesperson across or the mailing of brochures.

What do you think people Should banks be allowed to sell products over phone?

 
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Top Argument
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I don't agree completely with Rashmi here. I think one can turn down offers at any time, but it also deprives access to low-cost products for the customers. The best alternative is to follow some ground rules.  Firstly, there is no pressure to take an instant decision when the salesperson calls. The bottom line is that  you won’t get any other opportunity to buy this product. If the product is complex, take down the details and ask the caller to call you back after some time. If the caller is not willing to do that, don’t hesitate to forego the  opportunity.  If you do agree to buy, you will get a confirmation call from the salesman. Ask the person calling for confirmation to speak slowly. If there is a difference between what was promised to you and what is being read out to you, object it in clear words. So i think it is a preferrable mode of selling.


By Swati Raut, Product Manager, Aviva  09 30 2009 12:01:55 +0000
 
Top Argument
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I think banks should not be allowed to sell products over phone, they vaguely say about the products, complete information will not be provided, and many times customers are at the receiving end. This process is not a good idea, even if there is small or low cost schemes that is there it would be better if concerned person comes and explains everything in detail. So banks should not be allowed to sell products over the phone, and i think this is not the preferred way to sell products.


By Rashmi Patil, Financial services  09 30 2009 11:46:05 +0000
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I support selling of products over phones. Selling products over phone is same as selling products over internet. Moreover the penetration of mobile phones are faster in the rural areas compared to internet penetration. As the mobile channels are growing at rapid speeds so there is nothing wrong to use this mode of selling to reach the end customer quickly. But banks should use this channel more intuitively to understand the needs of end customer. This will make banks to sell the right products at right places.


By Phani Dasam, PMP, Senior Engineer, Anite Telecoms Ltd  | 01 24 2010 08:26:01 +0000
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I fully disagree with Rashmi and support Swati.It is not compulsion to take the product which is sold by phone.One can always call for the data/confirmation over mail or they can approach a nearby branch for confirmation. It is one way of reaching the people with different products available as a market strategy
By ATMA RAM CHAVALI, MANAGER IT, SBH  | 01 22 2010 16:31:53 +0000
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It's one of the channel to sell it's products & there is nothing wrong to use any profitable & productive medium if it help in increasing sale.


By vivek khandelwal, Branch Manager/Regional Manager, Fullerton India Credit co.  | 10 04 2009 16:36:56 +0000
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In this dynamic world no body has got time. So, phone selling definitely help banks to sell their products. To implement this Banks should start phone calls to their existing customers whose saving is idle, who income is high & call them at convenient time.


By prakashraj kumavat, MBA/PGDM student, Omegan School of Business (ICFAI Tripura)  | 10 01 2009 04:59:19 +0000
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Selling over phone does not justify the purpose, all points are never covered, moreover all these activities are out sourced the person who sells on phone is not on pay rolls of the company , in order to met target they just say certaisn points which are not correct and then sell product

Later on thsi results in litigation between customer and bank

So selling products on phone shoudl be banned as there is ample voilation of DND also


By Nikhil , Senior Manager, Insurance  | 04 26 2010 08:59:38 +0000
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OK so long as ICICI Bank doesn't do it!


By Azhar Kazmi, Professor, King Fahd University of Petroleum & Minerals  | 01 23 2010 21:25:14 +0000
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I agree with Ms. Patil. The purchaser is often oblivious to the hidden terms and hence suffers as a consequence. Sometimes these banks become extremely disturbing in their feigned 'sales pitch', which is rather disturbing than welcome. Banks should not be allowed to sell products over phone also because of the most obvious reason that there are chances of confusion and / or deception to the buyer.


By Chayanika Chakraborty, Legal Consultant/Solicitor, XYZ  | 01 23 2010 05:34:16 +0000
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I was sold the SAME insurance policy THREE times. Each time I thought it is the VERIFICATION call (as I was told during the FIRST call - which I had accepted). Months later, when I checked my Credit card statement, I found THREE IDENTICAL debit amounts, I called Customer Care - only to find that the same policy has been SOLD THRICE to me. I had not bothered to check the policy documents that I got by courier. 

Such Tele-marketing calls ONLY mislesd you by not giving you the complete details, and are an easy means to PART YOUR MONEY FROM YOU.

One should never buy ANY PRODUCT (whether tangible or Financial) over phone.


By RAJ KUMAR HANSDAH, Head/VP/GM-HR, JAL, Hindalco, SAIL  | 11 06 2009 23:05:18 +0000
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Its true that when products are sold thru phones and internet where the customer has nil or very little chance of viewing the product and getting more info ,customers should be very much alert and 90% think in a way of doubt.

There are bamks which use BPO to yarn out the policy and conditions(part) on phone so fast that 10% of what they say is not registered by the future customer.Also when asked to send the details by email they very politely say that it can be sent only on the person commiting to the proposal with a nonrefundable small initial deposit etc etc.Never will they send any documents by mail for scrutiny.

Such teleselling should be viewd with suspicion and should never be encouraged.


By Charles davison, Project Manager, Douglas OHI LLC  | 10 19 2009 04:19:52 +0000
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Selling banking producs are like selling services or selling concepts.In any selling customer need has to be put forth and creation of product awareness and features are required.

The targeted audience whi normally uses phone cannot spare the required time to understand product features and relate with his needs.

The best selling option should be one o one discussion wherein striking rate is much higher.Neverthless what can be achieved is jst marketing of product or glimpse of how the product can be percieved by the customers?

In Nutshell the it is not prefered way.


By Shailesh Vadalkar, Business Analyst, Al Rostamani Pegel LLC  | 10 11 2009 09:22:09 +0000
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I don't think selling products over the phone is a good decision. It will destroy the financial privacy of the customer. Also, he may not know each and everything on phone. The best decision can be done by practically facing the product or getting information online. In many cases, credit card statements reflects a chargeable item promised to be free, with conditions attached in fine print lost due to communication gap. These type of cases makes it a lot of uncomfortable for the customers. That is why sale should not occur in phone....


By Rajat Das, Product Manager, Aviva  | 10 03 2009 06:30:32 +0000
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As we are busy with our phone talking about our business, life and fun with our friend.We get a call for sell its not good it may be any time to you and you may get destructive from your important work. So the sell shoud be done personnel so that the sale is done at right way and in right time.


By Mohammadarif.A.Shaikh , Consultant, My Learning Centre (CALORX)  | 10 02 2009 21:15:53 +0000
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I think, banks banks should not sell the products over phone. financial products have to be sold to customers on a need basis and companies have to keep that in mind. I had purchased the same credit card theft cover from hsbc bank but i have not yet received the policy document nor any response from the bank for my complaints, there is no personal contact with the sales people. financial products have to be sold to customer on analysing his need but not for the sake of companies own profits.


By prashanth kumar kalyani, Sales/BD Manager, SBI Life Insurance co. ltd  | 10 01 2009 02:45:22 +0000
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It is not good that banks sell products over phone. Really it is a disturbance for the customers. Banks have email id for allmost all customers. So they can send emails or can also send postal mail. And also the person who on phone is telling in a hurry and not able to grasp.


By Mathew , Financial Accountant, School  | 09 30 2009 13:52:14 +0000
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i dont think swati should have started this debate. Aviva itself tries its best to sell insurance products on phone. i have received 2 calls from bajaj allianz, 1 from aviva and 4 from icici prudential insurance in the last 6 months, with representatives trying their best to sell ULIPs on phone. trying to convince a banker to buy ULIP and that markets will go up and up.

i feel no matter which part of financial services sector you are, whether its banking, MF, insurance or even those dumbass brokers, nobody should be allowed to sell something on phone.


By Venkatachalam S, Manager - Treasury Sales (Forex and Derivatives), Development Credit Bank Limited  | 09 30 2009 13:23:23 +0000
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in many cases,the phone banking personnel,promises something,say freebies,whereas in reality they may be chargeable items-eg:in case of credit cards,the statement may reflect a chargeable item,which was promised to be free,albeit with conditions attached in fine print lost due to communication gap


By VINAY BUSHAN. S, Head/VP/GM-Accounts, SUNDHARAMS PVT LTD  | 09 30 2009 12:35:15 +0000
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