Determinación de las cuotas que resultan deducibles dentro del sector diferenciado

The changed equation between banking and insurance businesses under the current circumstances does not indicate any paradigm shift in Bancassurance. Banks across the globe still continue to own insurance subsidiaries and get involved in risk taking business. Banks who want to play it safe, just distribute products for a fee. Banks still need fee income from the cross sale of insurance products and probably the need for such fee income is more acute now than ever.

Product Integration

The success of Bancassurance lies in understanding the life cycle of Bancassurance and integrating the product and distribution mix according to the stages of the life cycle. Most Bancassurance partnerships go through three stages: early stage, youth stage and mature stage.

Early stage is basically the passive mode of Bancassurance. This stage involves predominantly product bundling and there is hardly any sales pitch. Simple insurance products like term life, car insurance, home insurance and travel insurance are bundled with core banking products like credit cards or savings account and offered as a packaged product to the bank‟s customers. Customers generally don‟t have a choice as the cost of insurance is not shown separately but factored in the product being sold by the bank. Bancassurance moves into the youth stage as the banks‟ hunger for fee income grows. Insurance products are sold on a standalone basis rather being bundled. The emphasis is on higher commission (fee income) and therefore sales efforts and processes are beefed up. Typically, whole life, universal life and unit linked investment products are sold at this stage.

The mature stage comes after the bank has gained enough experience and confidence in selling insurance products. There is a desire to do something different at this stage. Risk taking options are considered.

Product and Distribution Mix

Product roll-out and distribution strategy closely follows the partner selection process. Products have to be in line with the customer profile of the bank and distribution channel must be in sync with the product being offered. Customer base needs to be segmented in a scientific way and could be based on income, age, occupation, sex, etc. and products should be developed with the specific customer segment in mind.

Product differentiation is another key factor contributing to the success of Bancassurance. Standard and off-the-shelf insurance products have no place in Bancassurance. Exclusive and customer-centric products with add-ons like premium payment in instalment or free additional coverage may work wonders. Similarly, a product may need to be sold through multiple channels, e.g. direct mailer, call centre and through branch network. It is important to remember that all products can‟t be sold through all channels.

Distribution Channels in Bancassurance

One of the most significant changes in the financial services sector over the past few years has been the growth and development of bancassurance. Banking institutions and insurance companies have found bancassurance to be an attractive and profitable complement to their existing activities.

Distribution is the key issue in bancassurance and is closely linked to the regulatory climate of the country. Over the years, regulatory barriers between banking and insurance have diminished and have created a climate increasingly friendly to bancassurance. Bancassurers make use of various distribution channels: Career Agents, Special Advisers, Salaried Agents, Bank Employees / Platform Banking, Corporate Agencies and Brokerage Firms, Direct Response, Internet, e-Brokerage, Outside Lead Generating Techniques.

Specific suggestions

Making Bancassurance work is more an art than a science. It requires human skills and intuitive approach rather than structured processes alone. Banks around the world have taken to various models of Bancassurance. Some of them have succeeded while many stumbled. A successful Bancassurance at one place may not make a mark at other places for reasons related to cultural, social, legal, demographic and economic environment. Best practices therefore is to craft a model which leads to goal congruence for bank, customers and insurance company and that alone can lead to a successful Bancassurance. Corporate Bancassurance

Bancassurance provides more ways to earn fee income for the bank. As discussed earlier that every relationship provides an opportunity to cross sell Bancassurance products whether it is retail or corporate. Corporate relationships provide an opportunity for corporate Bancassurance which is taking shape slowly but steadily. All commercial enterprises need insurance for their buildings, factory or warehouses and banks can capitalize on this existing need for insurance cover. There is more fee income in distributing commercial property or liability insurance to corporate house as volume and turnover are high. It is easy to cross-sell commercial insurance at the time of term lending or providing Letter of Credit since it will be value addition from the customers‟ point of view. Further, lending is an asset creation process for the bank and it makes sense even from the credit risk management perspective to have an insurance security of your choice.

Fire insurance, workers compensation insurance, group medical insurance and contractors‟ insurance are just some of the commercial property and liability insurance which can be sold to the corporate customers of the banks thereby generating additional source of fee income. Similarly, Trade finance or operations division within the bank provide opportunity to cross-sell marine insurance. The importance of corporate Bancassurance lies in further cross-selling opportunity to the individuals within those companies.

Overall Recommendation to Nabil Bank:

 Introducing innovative products and services

Banking industry is one of the highly competitive industries. New banks are coming up in the market in increasing number. And all banks are providing almost similar products and services. To address to this crucial problem, Nabil should opt for introducing new range of products and services, new policies that is different from what market is offering.

Nabil is the most preferred bank when it comes to taking consumer loans. So, there is a greater scope for business expansion in consumer lending. Also, the bank may introduce some novel deposit schemes that will delight customers.  Enhancing new investments

Our country is going through serious political and economic downturns since past many years. Investments in industries and new businesses have dropped significantly. But we still have a 'hope', as the saying goes- 'where there's life, there's hope'.

There are investment opportunities in hydropower, real estate, industries, businesses and other sectors which will hopefully improve.

 Focusing on Marketing mix

Being an established and one of the top-rated banks of the nation, Nabil is more easy-going on its marketing functions. However, it should not overlook that even the best product needs marketing. There are many people who are unaware of numerous facilities provided by Nabil.

 Product- Focus on creating innovative products and schemes that will appeal to a wider mass of audience.

 Price- Deposit interest rates provided by Nabil is the least. It should increase deposit rates a little higher. And the loan interest rates must be lowered; it should be brought closer to competitors'. As such, Nabil can serve a larger clientele base.

 Place- Plan on expanding the branch network and the facilities. There are many untouched markets which can be served profitably. That includes rural areas as well; they call for serious development efforts.

 Promotion- Integrated marketing communications (IMC) would assist Nabil to send a consistent message throughout various media sources. Nabil has not yet developed any TV commercials yet. TVCs can address to larger audiences that will have a greater impact on customers' minds. Promotion of services can further attract a pool of deposits and loan assets that will be of much value to Nabil.

 Focusing on customers of every income level

The bank targets high income group customers when it comes to giving business and consumer loans. The bank has strict documentation procedures which restrict granting loans to deserving clients who have enough potential to play on their strengths and payback the loan amount.

Only large-scale banks like Nabil are in position to take risks in investments and contribute to developing of Nepalese economy.

 Maintaining long term partnerships and focusing on quality

Communication strategies play a substantial role to develop long term relationships and profiting from them. Nabil should therefore focus on developing and maintaining partnerships with current and prospective customers, employees, suppliers on international level.

Nabil provides quality services and it should continue doing so. One should never compromise on quality so as to outperform competitors.

 Expansion of locker facilities

This particular branch also provides locker facilities to its customers, known as "Vault". Customer demand for lockers is very high at the branch. In response to high demand, they should plan to expand the facility as soon as possible.