Sales is an important component in the BFSI sector. With financial institutions playing a critical role in the country’s economy as well as the global financial ecosystem, the role of sales is indispensable. Sales enable the success and growth of the BFSI. As the BFSI is a sector that offers multiple range of banking services, financial and insurance services and products, sales take a vital position in the smooth and uninterrupted functioning of this sector.
In this blog let us explore the various roles of sales in the Banking, Financial Services and Insurance sector and learn how different types of sales occur in this sector.
Understanding Sales in the BFSI Sector
Sales in normal business terms would mean the transaction between two or more parties involving the exchange of tangible goods, services, products, etc. Sales however in the BFSI sector diverse away from this traditional practice and approach of pursuing and persuading customers into buying their products and services. In the financial market, a sale would mean an agreement between the seller ( Banks) and buyer (customers), by establishing strict norms and agreement.
In the Financial industries, sales demand building trust and confidence between the seller and the buyer, including rendering support and help in financial matters and the seller committed to solving the buyer’s problems. Thus sales professionals in the BFSI sector are required to have in-depth knowledge of the financial products they are selling such as loans, investments and credit cards. They must be technically equipped to give appropriate financial advice to customers about their financial matters and equally be persuasive to source more customers to their banks.
Who are the Sellers in the Banking Financial Services and Insurance sector?
In the BFSI sector, professionals who carry out the selling of products and services go by diverse names like Bank Sales Officers, Credit Officers, Loan Officers, Insurance brokers, etc.
In banks, sales are carried out by the Sales Officer. Their primary roles include:
- Acquiring customers for CASA ( Current Account and Savings account) from their designated market
- Selling and cross-selling financial products of the bank and third-party to the acquired customers
- Maintaining good relationships with the customers, both new and existing
- Resolving problems and queries for the customers
- Ensuring compliance and meeting of all banking norms and regulations during customer acquisition and servicing.
Loan officers are again important players in selling products and services of banks credit unions, mortgage companies or financial institutions to customers. Their basic responsibilities include:
- Offering in-depth technical information to customers seeking loans about the application process and all the necessary information required in taking a loan
- Gathering necessary documents from the loan applicants and speeding up application approval as well as increasing the probability of loan approval.
- Evaluating the applicant’s financial situation by taking into account several parameters and determining the applicant’s creditworthiness.
- Offering suitable and appropriate loan programs to customers according to their financial strength.
- Assist loan customers in tracking their loan activities, deadlines etc. and ensuring successful closing of the loans.
The insurance industry is another pillar of the BFSI sector. Within the Insurance sector, insurance brokers or agents play a crucial role as the sellers of insurance packages to individual customers and companies. The major duties of an Insurance broker are:
- Advising clients and persuading them about insurance packages and their suitability for the insurance packages based on their age, income, etc.
- Understanding what the client wants and requires
- Carrying out administrative tasks
- Carrying out thorough research about insurers and their insurance packages
- Assisting clients in making insurance claims
- Identifying potential opportunities and prospects of additional policies to the existing packages and giving informed advice
- Know about the current insurance standards
- Offering expert advice to clients
- Working with other professionals on behalf of their clients
Thus performing sales in BFSI requires not just selling talents, but one must be technically and practically equipped with domain expertise and interpersonal skills.
Different Types of Sales in the BFSI Industry
Retail Banking Sales: In this type of sales, banks provide financial services and focus their services on individual customers rather than on businesses. Retail banking allows the management of money, having access to loans and credits, and performing transactional activities like deposits and withdrawals. The services and products that banks sell to customers include; savings accounts and Current Accounts, debit or credit cards, loans/credits, etc. Individuals adept at CASA skills may consider becoming a Bank sales officer.
Corporate Banking Sales: This sales refers to sales that are rendered by banks to business customers and corporate companies. It primarily involves the activities of commercial banks offering loans to businesses for hiring people and growing their business.
Insurance Sales: Insurance sales primarily involves Insurance brokers or Agents selling insurance packages to customers. They sell multiple insurance products and services and also cater to customer’s queries and problems. Insurance products are varied like Health Insurance, Life Insurance, automobile insurance, Homeowner insurance etc. There are again variants of insurance within this type. Insurance brokers advise customers on the best packages and help them claim their insurance.
Apart from the above types of sales, there are several other sales in the BFSI industry, like:
- Investment Banking Sales
- Wealth management sales
- Cross-selling and Up-selling
- Digital Banking Sales
Sales in the BFSI sector play a vital role. This buying and selling is not limited to the transactional activity alone, but sellers engage in enhancing the relationship of the customers with the banks and financial institutes. Sales are thus very important for the BFSI sector. We may list out a few factors that validate why sales are crucial for the BFSI sector:
- Sales help in driving revenue growth
- Sales aids in meeting financial targets
- Sales significantly enhance customer relationships
- Sales help in educating customers and improving the financial literacy of the general population
- Sales open up career opportunities for the likes of bank Sales officers, Loan officers, Credit officers, Insurance brokers, etc.
- Sales give valuable insights to banks about developing new and competitive products to sustain and thrive in the competitive market.
- Sales help in building a brand name
Sales are thus a crucial part of the BFSI sector. We have thoroughly covered how sales are conducted in the BFSI industry and the various types that exist within the industry.
