Q: Was the decision to attract ultra HNI customers through a separate dedicated branch a good idea?
A: HNI customers have requirement of privacy, personalised services, and exclusive banking facilities. The following reasons highlight the need for separate dedicated branch:
It was in keeping with SBI’s motto of being the “Banker to every Indian”. An ultra HNI expects best and instant service, e.g. banking round the clock. SBI could not have provided the same services at a branch where non-HNI customers also had their accounts, as this would alienate them.
The SBI Kohinoor Banjara branch received many account opening requests within a few days of its opening. In addition, it also broke even in…show more content… SBI ensured that every HNI customer they attracted was not just someone wealthy, but also socially responsible. This was the unique feature for this branch.
Employees were selected on the basis of their location, keenness, past track records and their ability to perform. This ensured deliverable, exclusive and round the clock banking services feasible.
Training of staff in Financial Planning and Advisory services was not necessary as Customers would listen to their own advisors first and then to the new SBI managers. Yet, specialized training was provided to the Employees in Negotiation skills, Product knowledge and etiquette.
Q: Assume that SBI had a strong intention to roll out Kohinoor style branches, how should it have approached piloting the concept? What should be aim of such tests?
A: The aim of “Kohinoor” special branches is to attract Ultra High Net-worth Individuals (UHNIs) in a sustainable manner catering to their specific needs. This pilot project will enable to develop a competitive as well as profitable model for future rollout in cities where UHNI population is high.
The Framework calls for positioning the banking products and services based on the customer’s need to privacy, personalised services, exclusive banking facilities and even other features that went beyond banking. Following are the ways by which SBI could roll out Kohinoor style Branches: