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Client Acquisition

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No. 1 – Introducing Products In Retail Banking

Typical Retail Wealth Management Products:

  1. Insurance-Linked Products
  2. Unit Trusts
  3. Structured Products

Customer: I don’t like Insurance and I don’t like Unit Trust

Banker: We understand you don’t like Insurance and Unit Trust. A lot of customers like you say that. We hear your feedback.  That is why our bank created structured products for you.


 

No. 2 – Timing the Market

Banker: Today is a great time to buy.

Customer 1: No, I’ll wait for the price to drop.

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Banker: Today is a great time to buy.

Customer 2: No, I’ll wait for the price to drop.

[Calling 10th Customer]

Banker: Today is a great time to buy.

Customer 10: Great. Let’s get a $1 Million.

The price went up 3%.


 

No. 3 – Weird Investment Decisions

Customer: I don’t really think the investment is good. But I will just try $10,000.

Banker: As long as you are comfortable. I will monitor for you.

Provides the promotion list to client:

Investment Amount Sales Charge Promotion
Below $10,000 3% $50 Shopping Vouchers
Below $50,000 2.75% Samsung Galaxy III
$50,000 & Above 2.50% iPhone 6

 

Customer: Oh.  There is promotion.  I will place $50,000.

Banker: No. Why would you do that?

Customer: My boy wants the iPhone 6.

Banker: $50,000 and if it goes up by 10%, you can buy 5 iphone 6.

Customer: I trust you.

Banker: There is nothing I can do. Let’s pray. I will monitor for you


 

No. 4 – Forecasting Stock Price

Customer: What do you think the price for Apple will be in 12 months?

Banker: Now the price is $120. My bank calls for $153 in 12 months.

Customer: What do you think?

Banker: [Checks Bloomberg] 27 Analysts have a buy rating. 10 Analysts have a sell rating. The price range is from $88 to $203.

Customer: How? What do you think? Should I buy?

Banker: Barring any unforseeable circumstances, the price should be above $120. We call for $153. The upper price limit is $203. It could be somewhere between $153 to $203.


 

No. 5 – Finally it happens.  So what’s next?

United States Federal Reserve finally hike rates

Federal Reserve System
Federal Reserve System

Customer 1: Now that US Fed has increase the interest rates, what do you think? Will it impact my portfolio?  What should I do?

Banker: We had long been expecting this rate hike. The market had already price in the rate hike. We should not see any knee-jerk reaction in the market. Our forecasts for this year and next year remain the same. The Fed is increasing the interest rate because the economy is stable and is growing. This is good news for businesses and investments. Global economic indicators support this positive trend.

In terms of your portfolio, we see no need for any major changes. We are well positioned in various asset classes and sectors. If you have more funding, this is a great time to increase allocation into the portfolio.

Next Customer dials in.

Customer 2: Now that US Fed has increase the interest rates, what do you think? Will it impact my portfolio?

Banker: [Same response]

 

10th Customer dials in.

Customer 10: Now that US Fed has increase the interest rates, what do you think? Will it impact my portfolio?

Banker: This is no good. I think the market will drop about 10% in the next few weeks.

Customer 10: Sounds bad. Should we sell?

Banker: No. We may be wrong if it goes up.

Customer 10: What should we do?

Banker: Buy more when it comes down

Customer 10: Ok, notify me.

 

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