In this article, we will discuss “Relationship managers” . I got an interesting comment about “Relationship Managers” on my facebook wall from Prasad when we were discussing recent HDFC Life offering on 100% Free Financial Planning through snapdeal. Here is Prasad’s sharing on his relationship manager and what happened with him.
I am totally disappointed with HDFC Bank , every time my RM calls, he wants me to sell an insurance plan. If i tell him that I have other commitments at this point of time, he tells me he can get me a credit card if I dont have one and use it to buy the insurance plan.. It can’t go down more !! had so much respect to this bank.. But the concept of RMs is the most misleading thing !!!
Focus on this comment and re-focus on one sentence – “he tells me he can get me a credit card if I dont have one and use it to buy the insurance plan” . What does it say? What comes to your mind when you read this? It shows that there is an extreme focus on performance, there is extreme pressure on meeting targets on relationship managers. Their jobs are at stake at times and there is a do or die situation.
What are Relationship Managers ?
Relationship Managers are generally assigned to a customer who have more money and resources than others, who has more longer-term relationship with Banks, you are told that you will be taken special care by this relationship manager, at times you can directly talk to him for any issues. All the people having more than a certain net-worth or salary are assigned, relationship managers.
You are told that he is supposed to help you out whenever you want and he will be available to you all the time when you need him. However relationship managers are generally MBA Marketing guys, who are hired to take the sales to go up, they are responsible to bring business by hook or by crook. The worst part of relationship managers is that their attrition rate is so high, that by the time you figure out that you 90% is-bought and were 10% missold a financial product, the relationship manager is not working in the same company anymore, he has moved to another job now.
I read this funny incident on Hemant’s article comment section where Shinoj is sharing something about customer care people lie
Recently got a call from kotak mahindra bank regarding some bullshit insurance policy. Usually whenever marketing calls comes to my mobile, I use to say “sorry, Not interested”. But this time I decided to elaborate why I am not interested by telling a lie. All I told was “Actually I was interested in this product and had fixed appointment with your relationship manager on last friday. But he dint came. So not interested.” The marketing guy replied that he will check back. After two or three minutes i got a call from them again. “Sir we are extremely sorry. We called that relationship manager. He was not able to come to you because he met with an accident that day. shall he come today?”
What does a relationship manager know about you?
A relationship manager knows how much money do you have in your bank account, he knows for how long it is lying there. He knows the recent credit and recent debit from your bank account. He can figure out that one of your FD maturity and is now “available” for the massacre. He can then call you or meet you and show you an amazing product, if you want to invest and “if you have any money” . Obviously he knows you are sitting on a 10 lac cash right now. He is innocent, he is just telling you about something FYI, after all, that’s his job!
Remember, If a relationship manager recommends you some product and if you manage to make good returns or it turns out to be a good thing for you, it’s mostly accidental! So now, if you are an HNI or if you are going to get a relationship manager from your bank, broker or whatever it is, just make sure you know that its most probably going to add to your headache. He will keep on pushing you, convince you about opportunities and prove to you how your money is getting wasted sitting at your bank account. I remember a comment made by Subra on one of his articles on relationship managers and doctors.
“Doctors over-diagnose and Relationship Managers over-analyze your portfolio. Doctors recommend treatment and drugs, RMs recommend ULIP.”
Relationship Manager interview
I can only imagine the interviews which banks or companies take for hiring relationship managers.
Question : Tell me something about why you will be a good relationship manager at our bank ? And What qualities in you makes you a great candidate ?
Candidate 1 : I have completed this amazing course on portfolio construction which is internationally accepted. I always think from the viewpoint of the client and what will make his life more easy and great . His interest should come before mine and bank and I say this because I think from long term point of view.
Candidate 2 : I am a behavioural finance expert and with use of words I can create situations of guilt , excitement and trust . I can make sure that the clients common sense and logical reasoning will just go for a toss and I also know how to do this all without appearing too pushy and deceptive . I have completed PHD in powerpoint and excel and can use those tools at 3:00 am in the morning too to impress a client.
You know who gets hired !
Why did you hire me ? – Asked Candidate 2
“So that we can learn somethings from you , anyways they never tought us anything useful in our MBA” – Says Interviewers
“And Why did you reject me ” – Asked Candidate 1
‘Because you took the title we were offering you very seriously” – Said interviewers
Any comments or experiences?
Do you think this topic of “relationship managers” deserves a Satyamev jayate episode ! . I can see some crying face’s already here, not on the show. Did this article help you understand exactly what relationship manager do?