Maritime Bank ‘s Priority Banking Strategy from 2012-2014 CONTENTS Maritime Bank ‘s Priority Banking Strategy from 2012-2014 ACKNOWLEDGEMENTS This dissertation is the outcome of my study at the French – Vietnamese Center for Management Training Many people have been of great help in completing this dissertation I would like to thank all of them, both in person and in these acknowledgements Unfortunately, it is not possible to mention all on this page I wish to express my sincere thanks and special gratitude to Dr …, my adviser in studying theory, who kindly supervised and gave me encouragements at all stages of my research My special thanks are devoted to my colleagues at Maritime Bank who have been so helpful And I would like to say thank so much to Retail Bank’s CEO- Mr … - who helped me in work and this thesis as well I am indebted to my family for encouraging me to pursue my education as far as possible This entire book is dedicated to them I also owe my gratitude to all my friends for love and support I could not have finished this dissertation without all supports Maritime Bank ‘s Priority Banking Strategy from 2012-2014 Maritime Bank ‘s Priority Banking Strategy from 2012-2014 INTRODUCTION Retail Banking is the kind of profitable and stable business in the world Retail banking aims to be the one-stop shop for as many financial services as possible on behalf of retail clients Traditional business in a typical retail bank are Deposit, Lending, Card, Payment,…and The bank makes much profit on services and lending But when the economy is changing and developing day by day, customers care more on how they will be treated in bank Nowadays, customer comes to bank not for begging a service or money but to experience the best service which bank could provide them Among many types of customer, High net worth (HNW) or affluent segment (AF) is one of the sexiest segments, ill-defined and also difficult to manage And, increasingly, AF itself becomes an important contributor to profit of retail banking But how to develop the right service model to HNWs segment or how to develop priority banking is a challenge to any retail bank and a big question with many different answers Problem statement Vietnam’s banking market has been developing quickly in recent years with many new banks join the market including joint stock banks, foreign banks so the competition between them is getting hotter and hotter All banks have to focus not only in product development to meet customer demand, price competition, selling performance but also improve service quality to gain big market share ‘Priority Banking’ is not a new concept in banking activities but still new in Vietnam With the first launching of this service in HSBC from 2010, there looks like a shot to big space without reaction This is because Vietnamese has still not been familiar with that kind of services and all banks not know why they have to build up “another banking service” to their current customer, and why they have to invest more on those which may increase their cost Therefore Priority Banking didn’t have much market to grow more But from the year of 2011, with the development of economy and banking services, foreign bank starts bringing new model from priority to wealth management to Vietnam which makes local bank realize the segment that they should focus on Defining the HNWs is itself challenge for any local bank Almost definition is based on the asset customer holding which includes deposit and investment, borrowing only The general assumption is that Mass affluent is people who care more deposit and lending traditionally rather than financial management or investment consulting service Then HNWs or AF is the mid-station segment from traditional banking and investment banking Maritime Bank ‘s Priority Banking Strategy from 2012-2014 Maritime bank (MSB) is young man in the retail banking segment It has just developed retail for years even it is 20 years old bank As emerging in the market, MSB’s BOM, BOD has thought about creating the unique or differences of product and service to compete with some big giants in the market Author joined MSB as Product Head and Project Manager of Priority banking project Before joining MSB, I worked in Maritime Bank on Priority Banking Proposition and Strategy Manager From my working experience and deep attention on Affluent segment, it is the right time for the all big local banks to prepare for priority banking service, and MSB is not out of these if MSB wants to develop retail banking in higher level MSB’s Priority Banking is going to implementation phase and the first effect could mention here is deposit growth and customer satisfaction improvement Objectives of the study With this research, I would like to understand deeply the HNWs and priority banking model which will include following aims: - To analyze how bank can manage or mis-manage HNWs segment in order to maximize the contribution from them - To identify the necessary strategy to develop Priority Banking in MSB - To provide recommendations and solutions for MSB to set up Priority Banking Service Methodology of the study Data sources: Secondary data and primary data will be used together to study the research topic Data collection method: - For secondary data: gathering information from published sources such as various sources like newspapers, websites, journals, reports, researched books…; banking industry data published by information from Maritime bank’s annual reports; reports from monthly Retail Banking Division - For primary data: The main tools for the collection of data included mystery shopping, interview directly VIP customer and review from expats + Interview Relationship Manager from local banks and foreign banks to understand which services or products those banks are offering to VIP customers From that, we Maritime Bank ‘s Priority Banking Strategy from 2012-2014 will have the actual view from market and give best suggestion to BOM to build up the strategy + Interview VIP customer to understand deeply customer demand and from that can build the best product & service packages + Interview expats to get recommendation from the best practice in the other market outside Vietnam Mystery shopping Survey Author and team did a survey of relationship manager in 10 banks (6 local commercial banks and foreign banks) in Jan 2012 in both Hanoi and Ho Chi Minh The survey was done by playing VIP customer role to talk with sales in other banks following the prime set up cases Interview Information Author did a survey loan customer satisfaction with current retail products and how they expect from Priority banking The survey is with 93 existing customers in April 2012 with several questions in both multiple choices and giving feedback type (Annex 01) The survey took no more than 15 minutes for each customer and was supported by Customer Association in Maritime Bank’s branches Limitation of the study In this research, because of the fact that it is just finished the setting phase and in early stage of implementation, author only focused on analyzing how to develop Priority Banking model, not the practice after building up In the chapter 2, the study takes the reader the overview of priority segment and how it is developed in Vietnam We also point out why this business is important to retail banking And How/What MSB should focus on when they decide to start with this business is mentioned in the chapter Scope of research This is the research for Maritime Bank to grow priority banking service from 2012 -2014 Research Structure The outline of the research is in short as follows: Table of Contents Maritime Bank ‘s Priority Banking Strategy from 2012-2014 - Chapter 1: Literature review - Chapter 2: Overview of Maritime Bank and Priority Banking service in Vietnam - Chapter 3: Strategic Diagnosis of Priority banking services at MSB - Chapter 4: Strategic Planning - Recommendation & Conclusion - Annex 1: Customer survey Annex 2: Mystery Shopping Case set up Maritime Bank ‘s Priority Banking Strategy from 2012-2014 CHAPTER 1: LITERATURE REVIEW 1.1 A definition of strategy The word strategy is derived from the Greek word stratỗgos; stratus (meaning army) and “ago” (meaning leading/moving) There are many definitions of strategy and all have their own reasonable meaning The most popular definition which is considered precisely is as follows: “strategy is a direction and scope of an organization over the long term which achieve advantage in the changing environment through it configuration of resource and competence with the aim of fulfilling stakeholder’s expectations” (Source: Exploring Corporate Strategy – Eighth edition) From above definition , some key elements could be understood as follows: - The scope of an organization’s activities is to answer the question about should the organization concentrate on one area of activity, or should it have many activities - Advantage for the organization over competition in the market and could be achieved in different ways and may also mean different things - Strategic fit with the business environment Organizations need to point out their positioning in their environment, in terms of the extent to which products or services meet clearly specific market needs This maybe like trying to find a particular niche in a market, or finding to buy up businesses that have already found successful market positions - The organization’s resources and competences: Following “the resource-based view” of strategy, it is to exploit the strategic capability of an organization, in terms of its resources and competences, to provide competitive advantages and new business opportunities - The values and expectations of powerful stake holders inside or outside the organization These stakeholders – individuals, groups or even other organizations – can effect to some decisions as whether an organization is expansionist or more concerned with consolidation, or where the boundaries are drawn for the organization’s activities 1.2 Level of strategy There are some levels of strategies an organization and each levels has different scopes an business directions: - Corporate level of strategy: Is the top level, concerning with the overall scope of a corporate and how value will be added to the different parts (business units) of that company This could include issues of geographical coverage, diversity of Maritime Bank ‘s Priority Banking Strategy from 2012-2014 products/services or business units, and how resources are to be allocated between the different parts of the company In another form of this is about ‘mission’ that reflects such expectations from the Top management for growth of company Being clear about corporate-level strategy is important: determining the range of business to include is the basis of other strategic decisions 1.3 - Business level of strategy: is a competitive strategy and it is all about how the different businesses included in the corporate strategy should compete in their specific segments It maybe concern issues such as pricing strategy, innovation or differentiation, for instance by better quality or a distinctive distribution channel Therefore, even though corporate-level strategy involves decisions about the organization as a whole or not, strategic decisions relate to particular strategic business units (SBUs) within the overall organization In small and simple organizations with only one business, the corporate strategy and the businesslevel strategy are almost same Otherwise it is useful to differentiate the corporate-level strategy with business level strategy, because the corporate strategy will provide the framework for whether and under what conditions other business opportunities might be added or rejected - Operational strategy: is the important part of an organization to see how the other departments inside an organization to deliver effectively the corporate strategy and business-level depend to a large decisions that are taken, or activities that happen, at the operational level Strategic management Strategic management is including the strategic position of an organization, making strategic choices for the future and managing strategy in action Strategic Positioning Understanding the strategic position is identifying the impact on strategy of the external environment, an organization’s strategic capability (resources and competences) and the expectations and influence of stake- holders When developing strategies, analysis of the organization’s environment as it is at the moment and how it could develop in the future, is important Once a company has identified its target, it starts with your current situation to make a strategic plan to achieve those goals Changes in the external environment often present new opportunities and new ways to achieve goals An environmental scan action is done to determine the opportunities available The company also must know the capabilities and limitations of it to choose the opportunities that it can pursue with a higher probability of success Therefore, analysis of the situation related to the analysis of the environment inside and outside This analysis must be done at a local level as well as outside to identify all opportunities and threats of the external environment as well as the strengths and weaknesses of the organization A situation analysis can produce a large amount of information, much of which is not specifically related to strategy formulation To make the information more manageable, sometimes it is useful to classify the Maritime Bank ‘s Priority Banking Strategy from 2012-2014 factors as the company's internal strengths and weaknesses, and external environmental factors such as opportunities and threats threatened Such analysis is often referred to as SWOT analysis There are a number of questions which will be raised to define future strategies of organization related to: - The macro and micro environment: the way for an organization to exist and compete in the context of a complex world political, economic, social, technological, environmental and legal Environmental changes are more complex for some organizations than others How this affects the organization may include an understanding of the historical and environmental impact, as well as expected or potential changes in the environment variable Many of the changes will increase the opportunities and others will not pose threats to the organization - or both External environment has two aspects: the macro environment affect all companies and micro environment affect businesses in a particular industry Analysis of macroeconomic environment including political, economic, social, technological and other factors and is sometimes referred to as a PEST analysis An important aspect of the analysis of the micro environment is the industry in which the company operates or is considering operating Michael Porter has devised a five forces framework that is useful for industrial analysis Porter's five forces are including barriers to entry, customers, suppliers, substitutes, and rivalry among competing firms There are a number of factors to assess the external situation analysis:  The market (customers)  Competition  Technology  Economy  Legal Environment Analysis of the competitive environment is also performed, many times based on the framework suggested by Michael Porter For specific market planning, researchers have proposed a series of action steps or guidelines prescribed by the market makers Analysis of the external environment tends to focus on the customers Management must have open visionary in building customer strategy, and should so by thinking about the changing market environment, how can impact the customer, for whether customers are setting the company wants to serve 10 Maritime Bank‘s Priority Banking Strategy from 2012-2014 CHAPTER 4: STRATEGIC PLANNING After analyzing the customer demand and market research, it is important for Maritime Bank to set up priority banking service more effective and consistently Maritime Bank’s Priority Banking Strategy in the next years was set up with the timelines as following: 4.1 Define unique proposition Many banks in Vietnam focus on protecting/growing client’s wealth and family Some banks focus on customer’s experience on products & services From research, Maritime Bank see what customer wants is thoughtful & good quality services And the proposition will be focused also on experience but in different approach – airlines approach When travelling, there are grades of customer: Economy, Business and First Class Maritime choose to provide a service same as First Class in airlines to customer And the proposition is all about experience the high quality service in First Class Banking The Value proposition is proving the best need based service to customer with exclusive benefits and VIP access 4.2 Target customer Customer who has average balance of deposit or asset in last 12 months in Maritime Bank from USD 50,000 or VND1bio will be considered as First Class Banking customer In months, if customer continuously let the balance going under USD50,000, they will be degrade to normal customer and won’t be able to get the benefits from First Class Banking (FCB) anymore What customer will get when they are FCB’s member: - 49 Better pricing Maritime Bank‘s Priority Banking Strategy from 2012-2014 Be served at VIP lounge or at place customer’s request - Be prioritized on counter transaction - Special products & services which normal customer cannot approach 4.3 - Create business model After reviewing all the other banks are doing priority banking service and the business model they work in, the advantages and disadvantages for each model was defined With current business model in Maritime Bank, model is the best solution to prevent chaos in business units’ daily operation and strategy When Priority Banking is under TSOs, it will support business unit to develop better current affluent customers in branch This Model also save cost for Bank when using the same management structure rather than creating a new org-chart and more management team Develop a dedicated branding for affluent, working more on “packaging” the offer as “affluent-specific” than on developing a completely separate one (to minimize the costs) 4.4 ▪ Priority Banking as new Retail service line within TSOs channel ▪ It will have independent balance and P&L targets and responsibility ▪ Shared infrastructure and regional organization within TSOs network ▪ Minimal Retail internal disruption ▪ Easier customer transfers/upgrades from normal customer to priority customer ▪ Cost saving Build up the distribution channel Lounge for priority customer 50 Maritime Bank‘s Priority Banking Strategy from 2012-2014 Normally, priority clients want to be treated as truly VIP like they want to be served at home or office However, it is also important to have a place in branch to transaction and for branding Building up a lounge in branch costs a lot of money for bank From the research of the other banks above, we don’t see they build up too many VIP lounges For example, HSBC only has lounge in Ha Noi and Ho Chi Minh; Sacombank has lounges in nationwide, etc And besides that, from our customer survey, clients like door to door service more than VIP lounge That means VIP prefer to stay at home or office and have bank serve them rather than they have to come to branch to sit in beautiful room Therefore, Maritime Bank doesn’t build VIP lounge in every business unit but select some key branches with big number of customer and have right position where is convenient for clients parking car and easy to be recognize Not as the other local banks started priority banking services but don’t make it operate consistently by the time like: not same investment, different design, different quality of service, …The most important thing is that Maritime Bank will keep the same service, same lounge design, and same quality of relationship manager in the whole country Relationship manager RM is the soul of priority banking service Even Bank has many products or services or beautiful lounges, it is nothing if RM is not good RM is the person who contact directly, manage customer profile and also consult them to invest Customer in anytime will contact with RM to raise their demand, asking for information or even complain Therefore, it is crucial to have a well-trained RM who followed closely for a long time customer who has highly specialized knowledge, broad experience, the special advice of experts will set out appropriate solutions for their respective individual customers, such as the establishment of a financial management plan: cost analysis and revenue needs through regular expenses, or to discuss investment plans and consider acceptable level of risk of the customer For example, if customers want high profit potential and risk preservation of principal, they can participate in the Dual Currency Investment products; customers who want to preserve principal while looking for potential profitability higher than normal interest rates on deposits, investment products with potential interest rate structure up to 25% and 100% capital protection is the appropriate solution Also people, to the desired time secure financial solutions for them and their family, they will use insurance products RM is a person who can understand which is significant during the current unstable economy and bring customers advanced financial and investment solutions to choose from With the current market, to find a qualified RM is not easy due to the lack of experience trainer and because Priority Banking is new in Vietnam RM in foreign banks gets better training from abroad and in house courses Therefore, Maritime Bank will is bringing good benefits and get RM from the other banks, from real estate/securities companies for reasons: - 51 They have their own experiences and training more is not critical part Maritime Bank‘s Priority Banking Strategy from 2012-2014 - They have database customer of themselves After they join, bank will train them with focus on new products/ services and advisory/sales roll-plays and let them take part in written Priority Banking RM certification test All RM will be managed by both branch manager and head of priority banking and have their own KPIs on sale, caring customer and compliance They will have the KPI of TOI (total operating income) brought to bank every month from all products they sell To encourage them serving customer better day by day, caring KPIs is given to see if clients satisfied with their consulting or not 4.5 Design a package of product & service Attractive part of priority banking service is products & services Even bank has beautiful lounge but if client won’t be treated well or they won’t get what they want from bank for financial purpose, it is firmly customer gone In Vietnam market, it is still simple market for complicated investment or structure product because: - Clients have experience on investment are less and their ability to take high risk for new investment is not much - System in Vietnam and legal corridor are not available to support - Bank, itself doesn’t have well-trained staffs to consult customer With the development trend of financial market, and banking service for VIP, it is necessary for bank to design more sophisticated products and services Product Base on the above research, we found that customer’s demand is different due to type of customer, age, gender While mass affluent customer more focus on lending, normal deposit product, Affluent clients start looking for more benefits and complicated products like: structure deposit, investment product, insurance, to help them grow their wealth and also take care of their family Getting the overview of all Vietnamese banks, there are many products offering to VIP customers but it is not what customer need VIP clients could be SME’s CEO, investor, or just a wife of government officer or kids from rich family, etc Not all customers has the same demand With the strategy of bringing to customer the unique experience like in first class airlines, Maritime Bank intends to make a difference on the way to provide products to VIP clients by creating tailored tool to support sale man to design the products which suite with their own client’s demand That is what we call financial planning tool It allows to get information and to change to sale opportunities for RM consulting customer That will create the most unique 52 Maritime Bank‘s Priority Banking Strategy from 2012-2014 proposition for Maritime Bank while other banks are offering similar core products to customer And any new product can be imitated after sometimes, so this tool will bring Priority Banking service in Maritime bank to another level of high-end service and prevent those issues Product package will include traditional products, investment products, health care products and retirement planning Product development will be based on a modern technology platform when the trend of automatic banking, internet banking is everywhere Investment products in Vietnam are still simple due to the mature of financial market and legal corridor It is not easy to set up mutual funds and get customer investment in last years Since beginning of 2012, when State Bank has regulation for mutual fund operation and management, foreign banks and Techcombank start build product It requires very good technology system and connect with many types of investment Funds over the world or in Vietnam Therefore, Maritime Bank starts investing in a lot of new systems which allow to check online Option pricing and to prepare for mutual fund in the next year Services Service is the core of Priority Banking Products can be imitated as soon as it was born, but the service is very hard to the same It can be seen from the rivals’ survey that Vietnamese banks could not offer full service and same quality to customers These services are provided to wealthy clients are now able to mention here is that the new financial advisory services but at a primitive level, home banking services and customer care services in particular, Safety box Foreign banks focus more on investment advisory services, and networking In the current competitive conditions, to get the client was very hard and how to keep customers many times more difficult Maritime Bank knows those obstacles and want to make a difference by dividing financial and non-financial services with two ways of implementing which could meet all types of priority banking customers, including: - Financial service: Financial consulting service, Door Step service – those will need the skill of consulting from RM They have to build trust in clients and it is the most important thing to keep TOIs increased - Non-Financial service: Safety box, financial news, Networking providing, business Club – those services will be provided centralize from Head Office and implement to region, RM won’t need to directly but only communicate to clients - Caring programs: Privilege discount merchant network, Gift & Flower on special days – Special offers are taken care by partnership team and will be improved from ground to better quality of partners and gifts Pricing 53 Maritime Bank‘s Priority Banking Strategy from 2012-2014 Flexible price policy is able to meet the diverse needs of customers, but also need to be sufficient to ensure a profit on every customer For Affluent customers, waving fee is not the making decision effected point but just a favor willing to have It will make sense if we wave or deduce some fees from costly service for them but still charges for the less expensive service to compensate Maritime Bank used to wave fee for customer base on individual relationship between branch manager and them which is not professional and unfair for all clients In the planning of developing the strategy for Priority segment, Maritime Bank decide to build up the financial tool and training RM to use that tool to decide who they can wave fee and how much they can wave for This is the first time in market, there is a bank using tool to manage each customer P&L Maritime Bank’s RM now will have a tool to support them to manage P&L of each customer From loyalty software bank is building, the policy on preferred pricing will be easy to be implemented 4.6 Business number planning Year 2012 2013 2014 BALLANCE CASA FD LOAN # Customer of FCB 54 2,000 4,000 6,000 20,000 30,000 50,000 500 1600 5300 7,000 12,000 17,000 Maritime Bank‘s Priority Banking Strategy from 2012-2014 RECOMMENDATION AND CONCLUSION Recommendation For Maritime bank, creating a unique proposition and deliver it to market is very important while many rivals already implemented priority banking The advantages that as the following bank, they can better with rivals’ experiences Besides that they have serious approaching preparation with research and project to build up the strategy With personal experience, Author would like to have some specific recommendation for Maritime Bank when they implement the Priority Banking service as follow: - The agreement from all the members of Top management is necessary to implement a strategic planning Maritime Bank need to be careful on this because customer doesn’t know what happen inside the bank but if policy change due to non-agreed people start interfere, they think Bank doesn’t have a good direction and consistently operation - Strictly follow the timeline: when bank set the strategy plan, it should not be changed frequently because the best results will come under what was planned Add in or push the original plan to another direction end up to another result which is not expected - The Strategy is not just the plan on paper but must be communicated to all relevant functional areas such as:  Marketing  Research and development  Procurement management  Asset management  Human resources  Information systems Each department need to issue the policy to implement consistently avoiding bad quality of service to customer In addition to developing functional process, the implementation phase involves identifying the required resources and putting into place the necessary organizational changes That above recommendation is what Maritime Bank need to review when they implement the strategy in 2013 55 Maritime Bank‘s Priority Banking Strategy from 2012-2014 Conclusion With the limited of knowledge, author knows that the research to define Priority Banking strategy from 2012 to 2014 is not completely perfect There many things change during implementation And from time to time, we will need to review the project result and solve problem But the most important thing when we decide a business strategy is defining Vision, Mission, Objectives and analyzing the company’s status vs the market and then come up with the strategy This research will be stop in the way that all information was mentioned in general and no too much details was put here But Author request to keep this document not be public in CFVG 56 Maritime Bank‘s Priority Banking Strategy from 2012-2014 REFERENCES Books  Strategic Planning Gerald J Edgley Association Management March, 1990  Exploring Corporate Strategy Gerry Johnson.Kevn Scholes.Richard Whittington Eighth Edition.2008  Best practice in Banking the Affluent Steven I Davis – 2007 edition  Creating a Private Banking supper brand Samathan Downes & Emma Rees – 2008 edition Websites  http://www.msb.com.vn  http://www.phapluat24h.com  http://www.vnba.org.vn  http://www.scribd.com/   http://www.tinmoi.vn/kinh-te-viet-nam-bat-dau-giai-doan-phuc-hoi-moi-10976654.html http://vietnamnet.vn/vn/kinh-te/vef/78497/hon-26-000-dn-giai-the pha-san-ngunghoat-dong.html Company’s Documents 57  Financial Statements and Annual Reports of Maritime Bank 2011  Project team Report  Research of Cimigo in Quarter I – 2010 Maritime Bank‘s Priority Banking Strategy from 2012-2014 58 Maritime Bank‘s Priority Banking Strategy from 2012-2014 ANNEX 1: SURVEY FROM VIP CUSTOMERs ABOUT HOW CURRENT SERVICES & WHAT CUSTOMER EXPECT FROM PRIORITY SERVICE 59 Maritime Bank‘s Priority Banking Strategy from 2012-2014 60 Maritime Bank‘s Priority Banking Strategy from 2012-2014 ANNEX MYSTERY SHOPPING CASE SET UP Approach: Referral - Get referred by a friend of VIP Relationship Management - Make sure that the “referrer” also asks for commission/referral fees to make the case legitimate - Any paperwork required? – Fake business cards, fake cellphone number Walk-ins: - Call up for VIP banking appointment and let RM follows up - Visit major branch or branch based in headquarter Deliverables for Mystery Shopping: Service offering Product offering Pricing of product (is interest rate negotiable?) and service (exclusive but cost fees?) Offshore offering – which country and partnership with which bank? Eligibility – which criteria to segment customers? Structure of sales and advisory process: How to they find out my needs? How and whether they product push or client needs orientation? Do they home banking? 61 Maritime Bank‘s Priority Banking Strategy from 2012-2014 Where does RM conduct business (at branch or customer home)? Can cash be delivered to my home? Branch location/Set-up: Where is the branch located? How many? How is set-up? Overall impression: corporate/exclusive/professional/sumptuous ? Channel to approach customer: referral by RMs, referral from Retail or Corporate Bank, referral from 3rd parties ? what else? What kind of credit card can you give me? What’s the credit limit that I can get for your bank? Fee waiver? Access to 24/7 customer service? 10 What is your value proposition? Why would I put money on your bank? Lead conversation: Phase 1: Open the conversation - Preferably let the RM open the conversation and take lead on how the conversation can start - Shopper:  Introduce about his/her background (educated, wealthy with idle money, looking for alternative/more sophisticated ways to manage money, plan for future)  Let RM take lead in acquiring for customer information  Note: Able to gauge indirectly for #5 Phase 2: Present customer needs –OPTIONAL (if RM is not leading to this step, no need to push) – aim to observe standardized process - RM should be asking deep-dive questions on customer needs (i.e need-based approach) - Shopper lets RM guide through in-depth interviews to gauge customer needs  Short-term liquidity needs – some allocation in FDs and les sophisticated loan products  Medium to long-term needs – some allocation in more profitable and more sophisticated investments  Risk protection against downsides in business/investment/medical expense/accidence expense  Financial planning for myself/my family/my parents/my education/my professional development - Note: Take mental notes on the process Phase 3: Product push and fee gauging - If RM is not introducing product offering, Shopper needs to ask directly - Shopper:  What products can you offer me with PB service?  What kind of credit card can you give me? With what credit limit that I can get for your bank? Fee waiver? Access to 24/7 customer service? o Card company/Type of card (Platinum/Infinity/etc.)/Maximal limit  How would you charge fees on these products?  Price on products – interest rate negotiation or fee waiving 62 Maritime Bank‘s Priority Banking Strategy from 2012-2014  Offshore service: I’m currently doing some minor business abroad and plan to expand in foreign countries o Does your service cover abroad? Which country? o If not, will you develop some kind of partnership with international banks? Phase 4: Service push and fee gauging – MUST PUSH, most value-adding - If RM is not introducing service offering, Shopper needs to ask directly - Shopper:  Besides products, what other services can you give me?  If service offering seems to be accessible to all customers, ask them “how is this VIP or private banking service?”  Cash Delivery: “Do you home banking? Can cash be delivered to my home if I don’t have time to go to the branch”  Exclusive event offerings o Fee charged for these events? o Who are the people attending these events? Note: gauge into their customer profiles  Branch location and set-up: How can I get access to VIPB service? Where are these branches located? Is the location convenient for me? Is there a hotline that I can call?  Note: stress on exclusivity of the service Phase 5: Close the deal - How does RM close the deal? Ask for another appointment date, ask for business card - How does shopper get out of the deal?  Express willingness, but still have to shop around at other bank  Drop name: still currently bank with Wells Fargo or Lloyds and will have to check with comparable foreign banks like HSBC - Shopper closes the conversation on:  What is your value proposition? Why would I put money on your bank?  Ask for brochures and take-home materials to read through Mystery shopper – Result Requirements  Cover all key points – as identified in red  Fill out Mystery Shopper template  Get business card of RM  Take brochures and any promotional materials 63 ... habit 35 Maritime Bank? ??s Priority Banking Strategy from 2012-2014 CHAPTER 3: STRATEGIC DIAGNOSIS OF PRIORITY BANKING SERVICE IN MARITIME BANK Priority Banking is another tier of banking services... Maritime Bank ‘s Priority Banking Strategy from 2012-2014 Maritime Bank ‘s Priority Banking Strategy from 2012-2014 INTRODUCTION Retail Banking is the kind of profitable and stable business in. .. 3.1 Mission of priority banking Maritime Bank is new not only in the priority banking service segment but a retail market To define a right mission of priority banking for Maritime Bank, necessary