Kotak Mahindra Bank Improves Customized Financial Planning and Wealth Management Processes for 70% of Surveyed Relationship Managers
 
 

Kotak Mahindra Bank Improves Customized Financial Planning and Wealth Management Processes for 70% of Surveyed Relationship Managers

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Kotak Mahindra Bank is part of the Kotak Mahindra Group—one of India’s leading banking and financial services organizations. The bank provides business banking, investment banking, asset management, and personal financial services. It has more than 360 branches and approximately 800 ATMs across India. In 2011, Kotak Mahindra Bank was voted Best Private Banking Services Overall in India by Euromoney magazine.

Kotak Mahindra Bank’s priority banking division offers a financial planning and investment service called Privy League. Privy League caters to the needs of wealth management customers, providing a consolidated view of their banking and investment profiles; customized financial goals, plans, and advice; a full spectrum of banking services; and a variety of investment and insurance products, including term deposits, mutual funds, and life insurance.

The priority banking division implemented Oracle FLEXCUBE Private Banking to support financial planning and to provide a consolidated repository of information about its customers’ investment and financial portfolios. The online platform has enabled around 86% of surveyed relationship mangers to provide investment and insurance products and services that are tailored to their customers’ needs, based on consolidated customer details and classifications, such as financial objectives and age. It has also enhanced the overall quality of customer services provided by 60% of surveyed relationship managers.

 
 

 
 

Challenges

A word from Kotak Mahindra Bank

  • “Oracle FLEXCUBE Private Banking provided a consolidated platform for customers’ investment and financial data. Around 86% of surveyed relationship managers feel they can provide financial products and services tailored to their customers’ needs, and we can better mitigate our financial risks by conducting risk profiling for customers” – Kamlesh Rao, Executive Vice President and Head, Priority Banking, Kotak Mahindra Bank

  • Replace disparate, in-house–developed systems and spreadsheets with a consolidated platform to store information about customers’ investment and financial portfolios
  • Enhance investment and financial portfolio management services to ensure the bank provides its customers with the right products, based on their needs
  • Improve customer-risk profiling to help manage the bank’s financial risks
  • Monitor sales of investment and insurance products and services over different time periods

Solutions

Oracle Product and Services

  • Enabled around 86% of surveyed relationship mangers to provide investment and insurance products and services more tailored to their customers’ needs (all metrics are based on responses given by 70% of the relationship managers surveyed)
  • Improved customized, financial planning and wealth management processes, such as developing investment goals, based on a customer’s financial health and risk profiles, for about 70% of surveyed relationship managers
  • Enhanced the overall quality of customer services provided by 60% of surveyed relationship managers
  • Helped mitigate the bank’s financial risks by conducting risk profiling for customers and planning to regularly monitor and rebalance any deviation from recommended levels of asset allocation
  • Improved relationship managers’ accountability by monitoring their performance in relation to financial planning services provided to wealth management customers

Why Oracle

Kotak Mahindra Bank’s priority banking division chose Oracle FLEXCUBE Private Banking as the platform that best met the division’s needs and would help it grow and develop its Privy League (priority banking) services.

“When we first started looking for a consolidated private banking platform, there weren’t many suitable products on the market,” said Kamlesh Rao, executive vice president and head, priority banking, Kotak Mahindra Bank. “We could see that Oracle FLEXCUBE would provide a great platform for the private banking system we required, and we worked with Oracle to develop it to match our needs.”

Implementation Process

It took nine months to fully implement the Oracle FLEXCUBE Private Banking system. The implementation was completed in two phases: phase one rolled out the relationship manager functions, while the second phase covered data aggregation and the customer-related features.

“Our team worked with Oracle Consulting on the design, testing, and implementation of the wealth management system to support the financial planning, account aggregation, and performance calculation functions,” said Rao.

The team integrated Oracle FLEXCUBE Private Banking with the core banking platform, market data feed, depository, insurance, and mutual funds product systems.

The division went live with Oracle FLEXCUBE Private Banking in June 2009.