Banks should stop aggressive cross selling of mutual funds and insurance: AIBOC

Banks should do what they are supposed to do - banking. They should not become insurance agencies or mutual funds distributors. It is not their core competency.

Banks should do what they are supposed to do - banking. They should not become insurance agencies or mutual funds distributors. It is not their core competency.

RBI can impose restriction on selling third party products. What about data integrity issue. Bank employees having nexus with certain IFAs and selling either data or directly sourcing business and selling to them for handsome consideration.

Traditionally Banks were set up to help entrepreneurs to grow their business by way of loans and help in the trade , commerce and economy of the country. With the onset of Pvt Sector banks , the greed set in within few years of their establishment to make more money by cross selling 3 rd party products.
So much was the greed appetite that , Middle and Senior Mgmt people 's performance was judged on how much income was earned by selling these products.
This led to rampage in the markets and retail and HNI customers were pushed inside to fulfill their targets. With every passing year, the greed only increased putting lot of pressure on the bank employees. by Employees who could not manage to sell as per the targets set by the mgmt. were declared non performers and that affected their overall performance adversely.

Enough damage has been done by both, Pvt and Public sector banks on Pan INdia basis.
Its time, they reduced the greed factor and concentrate on core banking.

Haha....they realise it now? It is too late for this realisation and also they are saying that banks should not be aggressively cross sell but they should cross sell less aggressively. This doesn't solve anything. They should not be allowed to sell third party products at all. Banks are looting us by charging any amount for any and all the services they provide which should not be charged at all. Banks are the reason for which our wealth has been passed onto the mallya's and Jindal's of this country. Basically they are looting us in one way or another. We need to protest against this at all levels.

ARE THEY SELLING...
THEY ARE SHORT OF BLACKMAILING,

THEY CLUB THIRD PARTY PRODUCTS WITH ANY SERVICE THEY PROVIDE.
LIKE ASKING FOR LOAN, OVERDRAFT, SAFE DEPOSIT LOCKERS...

I agree Banks should be stopped by selling Insurance & Mutual fund products. They should do what they are meant for.

I observe that the operational functionaries have no knowledge of Mutual Funds or insurance policies they are cross-selling. They are just selling. But when they have to invest, they call me for expert advice. This speaks a lot.

I also agree because so many agents who are struggling and not getting businesses for cross selling of MF and Insurance by bankers. It should be stop

Private banks are high churners under the guise of wealth management and Public Sector banks peddle closed ended hybrid funds in the name of Cross Selling Campaigns!!!.
Ultimately it is revenue pressure and game of personal incentives.
All that the Regulator does is to issue " Circulars" from time to time. We can only speculate if banks treat the Circulars seriously.
Its a shame for these Banks that the AIBOC had to take up with RBI in the interest of their customers.

I also agree because so many agents who are struggling and not getting businesses for cross selling of MF by SBI Bank and Private bankers. It should be stop

Role of banking is to evaluate gains in investments at the past value and suggest Investors truthful requirement. Profit driven principle often takes disadvantage to Investors. This has to be avoided. Investors should record their complaint with banks.

I agree Banks should be stopped by selling Insurance & Mutual fund products. They should do their banking job

Hi all, Cross selling has become the single largest subject for the agenda during the Board Meetings of Directors of banks. The reason is simple. There is no revenue generation in the banking industry for obvious reasons. Too much of interference by the Government. Too many politicians meddling with the Lending Policy of the Banks. ( Vijay Mallya affair). Last but not least, the aggressive stance adopted by the Private Banks to loot the country for pecuniary gains. The only option left is to Cross Sell all unwanted products which are of interest to the Banks, Insurance Companies and the Mutual Funds, which are again promoted by the banks themselves, through the back door. It is just like the father who is a branch manager, sanctioning a loan to his son. The banks have been for long selling various Loan Products like a combo offer. You either take a insurance policy if you want a loan or just get lost. Win win situation for the Banks and the Insurance Company. Dont ask what happens to the borrower. Instead of shouting , screaming and escalating the issue to the Regulator being the RBI - will someone like the Bank Unions file a writ petition with the High Courts requesting them to interfere and see that Banks do their own jobs properly instead of being a JACK OF ALL & MASTER OF NONE - which they are truly are? That is the only way out. Meanwhile, we have to EXPOSE all those banks who CROSS SELL by ARM TWISTING the borrower under the garb of CROSS SELLING. Lets wage a war on the Social Media. After all, Consumer is King. Lets prove that.

Banks are blackmailing the customers & pushing products which are more profitable for them instead in the interest of clients.

Yes it's true that there is lot of focus on sales of insurance products in banks as they give high income, however tracking or monitoring of mis selling is very difficult. Most of the times products are not advised based on investor requirements. As a remedy after investor buys an insurance product from bank, a call should go from a call centre ( regulator) to explain to the investor about the product ( positive and negative points) and check if investor understands it so that he can decide if he actually wants to invest or reject the investment. Currently there is no strong monitoring mechanism which will catch hold of them. Ethical rules are only on paper. Also lack of investor awareness about financial products is the main cause why investors get duped .

It's indeed an extra burden for the Bank Staff for this added responsibility.. Ultimately benefit goes to Bank not on individual efforts and the greatest drawback is post sales service which an account holder has to face quite often.. There are lot of independent financial advisors to whom such practice affects.. There is absolutely no need for the banking sector to depend on these side business of selling insurance and mutual fund products.. Hence it will be wise step if RBI instruct bankers not to sell these products further and by doing this RBI helps rest of the financial advisors to gain more business