Sunday, 24 November 2019

BC / BF - 3 , Banking Fundamentals to Know for Students.


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Functions / Activities of Business Facilitators 
(i) Identification of borrowers and fitment of activities
(ii) Collection and preliminary processing of loan applications including verification of primary information/data
(iii) Creating awareness about savings and other products and education and advice on managing money and debt counseling
(iv) Processing and submission of applications to banks
(v) Promotion and nurturing Self Help Groups/Joint Liability, Groups
(vi) Post-sanction monitoring
(vii) Monitoring and handholding of Self Help Groups/Joint Liability Groups/Credit Groups/others
(viii) Follow-up for recovery.

The products that can be canvassed by the BC acting also as a Business facilitator are: 
a. Loans against Valuable securities/own deposits
b. Gold Loans
c. General-purpose Credit card (GCC)
d. Kisan Credit Card (KCC)
e. Loans to SHGs/JLGs
f. Current Account
g. Savings Bank account (other than No Frills Account)
h. Term Deposits
I. Recurring Deposits
j. Mutual funds on a referral basis
k. Insurance (Life and Non-Life), Pension and any other third party financial product.

Skillsets Required to become Business Correspondent 
Financial inclusion is not merely opening of no-frills accounts. It also encompasses giving access to financial products like savings products, loan products, remittance facilities, micro insurance, micro pension, financial planning, and education. Further, the ultimate goal is to make available these services across service providers on a nationwide basis. Taking the above as the basic deliverables expected of a BC, the team spent time in the field observing various BCs and BFs go about their daily routine. Discussions with the BC/BFs also threw a lot of insights. Based on the insights so gained the skills required by BC/BFs are given below:

Functional Skills 
i) Knowledge of the basic principles and practices of banking
ii) Knowledge of the relevant products of the bank in the areas of deposits, advances, insurance, mutual fund products, etc.
iii) Knowledge of the documents required for these products
iv) Knowledge of KYC norms, the different kinds of documents that will be acceptable depending on what it is possible for the customer to produce
v) Ability to use the Point of Sale/biometric device given by the bank and do minor troubleshooting
v) Ability to provide financial counseling to the villagers he is serving
vi) Ability to do a preliminary appraisal of credit proposal to the extent of informing the branch of creditworthiness and bonafide of a potential borrower.

Behavioral Skills 
i) Communication 
a) Verbal Knowledge of the local language, public speaking, etc.
b) Written- to the extent of helping customers in completing the required forms/documentation
ii) Marketing Skills 
a) Building Trust - Since the potential customer does not have a banking relationship with the banks and may not be in a position to read and understand the product/process himself, the BC should inspire trust.
b) Persuasion skills - Banking per se is latent demand and the BC should be able to help the financially illiterate customer to realize the existence of the need and appreciate the need to shift from informal to formal sources of finance.
iii) Customer Service 
a) Empathy - understanding the needs and insecurities of the customer who is often dealing with a bank for the first time
b) Service orientation - the customer of a BC often needs more hand-holding then the average bank customer


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