I did my summer internship in a leading MNC Bank, New Delhi Branch, under Private Banking Division; here it is how it all went for me
My Journey began on the first of April 2011, I had a meeting scheduled with my mentor at 10 am at the Connaught place office.. As soon as I reached the office I was told to wait and after a few minutes my mentor came out to meet me, Conversation began with a brief informal introduction, he told me about his background that he completed his MBA from a US university and joined this bank around 7-8years ago. He talked about how started as a cashier, or a teller, then even had to dispense cash into ATM. He said that he was taught everything about how a bank operates , he told me to break all myths of thinking that once you pass out as an MBA , you will get plush office and secretary , it’s tough ride ahead , and If I seriously want to work for a bank then , I need to buckle up for it .
After 8 years of experience, he now is working as an Associate Director for Private Banking Division (Sales and Relationship Management Division). He told me growth opportunities were huge, given that one is willing to work hard. I was given a research project, to study the market dynamics of private wealth management business in India, try study understand their major competitors, their future plans, and make strategic recommendations for them to implement in a short time and long time scale.
The research started out with understanding worldwide macro-economic changes in the private banking sector post recession. The study also included understanding changes in the business models around the world, understanding growth in Asian markets, changes in consumer behavior in while managing their assets or investment strategies, in terms of risk /return implications.
Subsequently focus shifted from global to understanding Indian market dynamics, understanding key competitors in this segment, understanding their competencies, future plans. The next phase was to understand the potential competitors and their future plans. And the last phase of the research included exploring the obstacles for the growth of private banking in the Asian or specifically the Indian market and making strategic recommendations.
Some findings of the Research….
The Study indicated that post recession Clients have begun looking for alternatives to their low-performing investments and are increasingly willing to participate in the upside potential of riskier products to make up for the losses they incurred during the crisis. High-net-worth clients expect much more clarity and transparency with respect to risk/reward ratios and the true performance of their portfolio after all fees are taken into account.
The private banking business models have taken new shapes, “The One Bank Approach” adopted by various banks is a perfect example of such a adaptive business model that extracts synergies between different banking domains i.e consumer banking, wholesale banking, providing them cross domain capabilities and better services to the end consumer. Private Banks have committed to emerging markets, where having an inimitable value proposition will be critical to success. Private Banks will also need new client service models to restore client trust while ensuring compliance to regulations and cost-efficient servicing. The pressure on margins due to unrelenting competitive environment will make further cost reduction measures unavoidable.
At the End of the day ….
My experience was smooth, I didn’t have to go to office daily , may be 2-3 times a week at max, as the project was more on secondary data research and analysis, but I was in constant contact with my mentor throughout the project. It worked well for both of us, as I was given constant guidance even though my mentor was travelling across the country to manage clients. The project went well for me helped me understand this domain to the depth, understanding how Asian, more so India is becoming a huge market for these MNC banks, to expand business in India
One of the interesting things he told me that in banks, typical profiles for MBA students are restricted to sales or operations. Under Sales the growth opportunities are huge, but stress is huge as well, also suggested me to go back to IT, as it’s much better than many domains in the management world, growth opportunities are also great. But if I wanted to join a bank, I need to start from the lowest level of the value chain, to understand how banking domain works, else I will be an incompetent manager with partial base of knowledge, one more thing he told me that no matter how much you earn, you won’t have the time to look at your account, as most of the time will be spent convincing clients to trust you with their money and handling their account …
A good learning experience for me to work in a domain different from IT , helped me understand corporate world from a different point of view all together , a good value add for me in terms of knowledge and learning
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