Marketing Financial Products
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Chapter 11 : Fee-Based Services
Importance of Fee-based Services
Corporate Fee-based Services
Cash Management Services
Letter of Credit and Bank Guarantee
Bill Discounting, Factoring, and Forfaiting
Foreign Exchange Services
Merchant Banking
Registrar, Underwriting, and Custodial Services
Leasing
Credit Rating
Retail Fee-based Services
Money Transfer and Payment Services
Wealth Management and Online Trading
Other Value Added Services
Pricing
Factors Influencing Pricing
Pricing of Different Fee-based Services
Distribution and Promotion
Distribution of Fee-based Services
Promotion of Fee-based Services
People
Process
Chapter Summary
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Fee-based services can be broadly classified into corporate
and retail fee-based services. Organizations avail of such services for meeting
both their short-term and long-term financial requirements. The common fee-based
services offered to corporate clients are: cash management services, letter of
credit, bank guarantees, bill discounting, factoring/ forfaiting, forex
services, merchant banking, registrar services, underwriting services, custodial
services, lease and hire purchase, and credit rating. Retail fee-based services
are availed of at large by the retail customers for payments, money transfers,
personal wealth management, online trading, etc.
While pricing of corporate fee-based services are relationship oriented and
relatively flexible, retail fee-based services have standardized pricing. Though
fee-based services are not promoted using the traditional promotion mix in a
major way, their distribution is similar to that of banking products. For
corporate fee-based services, marketers use branches extensively, whereas their
retail counterparts use advanced technology channels such as the Internet. |
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For wealth management services in the retail segment, relationship-based
personal selling is combined with the technology-oriented channels of
distribution.
The active involvement of people is necessary for rendering fee-based
services as the people factor decides the quality of service delivery. Many
of the service providers recruit candidates from reputed colleges and
institutions, and train them to handle the customer requirements.
The process factor in service delivery can be analyzed in terms of the flow
of activities, the number of steps involved in each activity, and customer
involvement. Providers of fee-based services take all these factors into
account for achieving high levels of service quality.
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Short Case Studies / Caselets