Bank employment is getting disrupted by technology. As transactions get primarily enabled on cards and mobile (at least in cities) you find that that bank employees have a different mandate: To sell different things that can justify the employee’s salary. First among this is insurance. Insurance has fat fees, which is made by the bank and thus meets the “fee target” that each employee is given. With banks only performing an agency role (instead of as a broker) there is no rule that they need to sell proper products. So they attempt to sell insurance to widows (see my post on HDFC Crest , a terrible insurance plan they tried to sell to my 60+ year old mother) force people who want to get a locker to buy a policy first Make an insurance policy a prerequisite to get a loan Ask customers who come to the branch when their car insurance is lapsing, or if they would like to buy health insurance, or such I’ve been hit first hand, and after a screaming match with a poor bloke on the other end of a phone because the guy was giving me totally wrong information, I was told he is the branch manager.… (Read On…)
[via Capital Mind]
Follow us @investmentheat – lists / @sectorheat