What is the Do’s and Don’ts When You Sell Your Financial Services?


From my personal experience, I’m writing this article about what should be done and not done while selling a financial service.

So, a financial institution should be done rightly. I have been working with banks and credit unions for the last 60 years. One thing I have learned that compensating for sales productivity will not compromise the orientation of service of a financial institute. It’s just everything need to be done properly.

So, what does to do it right or proper means? It is far more than putting a sales plan and a schedule for payout. In most sales programs, particularly in the larger banks, unfortunately, this is the problem.

When new initiates are made, a pay retail staff should be created for meeting successfully with the sales targets around that initiative. And then the banners are unfurled, and the race is on. This is the culture nowadays, but it is criminally incomplete and ignores sales/service culture.

How does service/sales culture look like?

In a healthy culture, there must be a blend of two approaches on the same result, a loyal, engaged and satisfied customer. The broadening of the customer’s choices should be balanced with proper service implantation, and those choices should be supported.

How to achieve the right balance?

  • Effective operational support systems including administrative systems offered with comprehensive services.
  • Caring about the customer who loves the financial institution based on the achievement and reputation of it.
  • Management of infrastructure effectively such that it walks the walk and talks the talk.
  • There should be a value system that will place doing everything right for everyone at from the top of the pyramid.

The foundation of the pyramid are the people who:

  • Knows to listen actively
  • Enjoy helping others
  • As a team love to work
  • For their own behavior accept their accountability
  • Can articulate as well as communicate

Everyone Can’t Fit This Description, and only they know and understand the value system of the company, and they reflect it. They are proud what their group achieved even more than what they have achieved for themselves. These people make and get things done. And they are one who cares about the customers most and their institution in their mind.

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Let us take the example of a “Bank” that dismissed one hundred of its employees. It is not that none of the one hundred staff had those skills and attributes needed for them to run it, or they hadn’t developed to give customers of the bank better service. It’s the management of the HR department that couldn’t select proper people who can do their job properly or train people so that they could become great in their jobs. The goal might have been to recruit commission-oriented, aggressive staff that are the antithesis of the culture of the sales and service.

The Bosses Can find the Right Candidates

Identifying the right person and supporting the management that will train is a vital step. But what we see is that banks reward the technical proficiency too often by placing only an individual of this skill in the management role. Managing others requires a different set of attributes and skills. Not every practitioner in the senior posts is good at managing it. And the culture breaks down through counterproductive behavior if wrong skilled persons are selected.

The need of an organization is to formalize practices that reinforce the same value up and down to the management chain. CEO needs to ensure that that the branch, regional, and executive management are taking their responsibilities the same way as he or she is in the sales and service culture.

Meeting between the Bank and its Client?

The blended culture should be created by a branch.

  • Sales specialists are responsible for determining the need of the customers and will arrange the windows to the individual service team. The service team will be responsible for the activation and maintenance of those services seamlessly and solve the problems that may arise.
  • Checking in with the customer to make sure that new needs are addressed. The quality and performance should also be maintained by the service team.

Both the functions need that the customer is satisfied and they are loyal. Both should feel the sense of ownership through the process.

This is how a perfect bank should behave. Then it will be very easy to deal with the banking system, and whenever you want, you can sell the bank or if you want you can buy a competitor bank.

How Do You Purchase a Licensed Bank for Expanding Your Banking Service?

As I mentioned before, I’m writing this article from my personal experience. When I was thinking of purchasing a licensed bank, I was recommended to Financial Licensing Advisors by a very dear friend of mine. He told me that I would get the best support from FLA and will work with me as a team and facilitate the process of buying a bank and make it super fast. Well, I thought why not give it a try and so I went to consult with them. I can proudly say that with the help of FLA, I have purchased a licensed bank smoothly without any problem or glitch.

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Here are the things that will tell you descriptively how Financial Licensing Advisors will help you to purchase a banking institution of your preference:

  • Before engaging with the customer, a retainer fee for research will be charged for searching available financial institutes worldwide as per customer’s preferences and requirements.
  • FLA will conduct the research for available banks for an average of one month. Weekly updates will be sent to the clients. The update will detail all the information on the banks currently available for sale, which will be gathered by the network of FLA affiliated offices and banks they work with. The following information will be detailed to the clients on the updates:
  • location
  • type of license
  • regular
  • requirements of regulatory requirements
  • tax rates
  • the value to book and total assets/deposits under management
  • profile and the total number of clients
  • prudential regulations
  • FLA will provide the clients with a comparable table at the end of the first month. The client will review and decide if the proposed options contain the banks that meet their requirements. FLA will prepare a tailored engagement strategy document for the bank chosen by the customer.
  • A second retainer fee will be charged to the client before FLA prepare engagement strategy document in detail.
  • After the retainer fee is processed, FLA will start preparing the engagement strategy document detailing about:
    • the procedure of purchasing the bank that will also include licensing of the bank as well as SWIFT registration
    • implications of tax
    • compliance and regulations, including shareholders, directors, and banking
    • a complete plan of the project even outlining expected timeframes
    • breaking down the total set up fees of the bank including FLA, government, lawyers, etc.
    • staff recruitment
    • leasing a physical office

The compliance and regulatory requirements will vary as it depends on the jurisdiction of the bank’s regulatory board and government of the country where the bank is situated. This step will take at an average of one month, but it sometimes takes up to two months if the jurisdiction is a complex one.

  • The engagement strategy document will be signed off by the client and pays the remaining fees of the FLA for the services that are to be provided from FLA’s side and complete the purchase of the bank.
  • The next month, FLA will
  • re-negotiate the price of the bank with the vendor
  • engage lawyers, auditors, and accountants to complete all the due diligence and valuation of the of the bank
  • After Central Bank approves, the directors and shareholders will be changed as per the preference of the client.
  • The client will pay the Central Bank’s capitalization requirements.
  • Also, FLA can include the SWIFT membership application, secure correspondent accounts by negotiating with the international bank, issue VISA/MASTER cards applications and implementation of internet banking.

So, working with FLA will be fun. No trouble will be left for you deal with, everything is handled smoothly by Financial Licensing Advisors.