Marketing Financial Products

Fee-based services can be broadly classified into corporate and retail fee-based services. Organizations avail of such services for meeting both their short-term and long-term financial requirements. The common fee-based services offered to corporate clients are: cash management services, letter of credit, bank guarantees, bill discounting, factoring/ forfaiting, forex services, merchant banking, registrar services, underwriting services, custodial services, lease and hire purchase, and credit rating. Retail fee-based services are availed of at large by the retail customers for payments, money transfers, personal wealth management, online trading, etc. While pricing of corporate fee-based services are relationship oriented and relatively flexible, retail fee-based services have standardized pricing. Though fee-based services are not promoted using the traditional promotion mix in a major way, their distribution is similar to that of banking products. For corporate fee-based services, marketers use branches extensively, whereas their retail counterparts use advanced technology channels such as the Internet. For wealth management services in the retail segment, relationship-based personal selling is combined with the technology-oriented channels of distribution.