Direct Sales Management Strategy in Retail Banking Industry
Direct Sales provides an effective, suitable and flexible channel to deliver the product (increase sales volumes) and service to prospective customer throughout the country. While recognizing the associated operational risks, with strict controls and appropriate corporate governance, Direct Sales Channel is the best solution to expand SCB presence and increase customer base beyond the reach of traditional branch network.nnThe purpose of this paper is to study and provide recommendation to using Directly Monitored DSA to complement the Indirectly Monitored DSA that SCB is currently using. The primary data for this study were collected through in depth interviews with National sales Head, Head of Sales Governance, SCB Senior Manager Human Resource, and one of the owner of DSA IM.The secondary information was obtained from number of sources, such as SCB policy and textbooks related with the subject were reviewed to give insight and direction in developing the project.nnBased on the research findings and the analytical reviews of the interviews and Literatures, several conclusions were drawn and recommendations made in this present study.nnAs mention earlier, currently, SCB is using Indirectly Monitored DSA. In this model, the partner company has the full responsibility and freedom to manage their resources at their own cost. They are also responsible to recruit, select and arrange partnership agreement with the individual DSR. The Bank has no responsibility for any aspect of the business performance of the agency or its employees/agents other than to make payment based on terms agreed in the contract. In terms of risk, this model is also a higher model because of the limited ability of SCB to monitor total compliance of DSR activities with policies and standards.nnIn DSA DM, the agency company serves SCB as the facilitator and the manpower provider in doing direct selling activities. In this model SCB has access to directly monitor and drive the activities on day to day basis. The primary advantage of this model is the ability it affords the SCB to up or down scale the size of the team and to conduct an effective control over efficiency, productivity, risk management and even service delivery.nnTo improve the existing condition, the writer recommends using Directly Monitored DSA with a proportion of 80 % and still using Indirectly Monitored DSA with a proportion of 20 %. The reason is to balance the cost (the fact that cost occurred in using DSA IM less than DSA DM) and the risk by concentrating the Direct Sales activities only in a few big agencies.
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