- JOSEPH COLLEGE OF COMMERCE (Autonomous)
END SEMESTER EXAMINATION – APRIL 2014
BBM – IV Semester
BANKING AND INSURANCE
Duration : 3 hrs Max. Marks: 100
Section – A
- Answer ALL the Each carries 2 marks. (10×2=20)
- What is a Scheduled bank?
- Explain any four monetary tools of RBI.
- What do you mean by holder in due course?
- What is Re-insurance?
- Elucidate on any two risk handling techniques.
- Differentiate between an underwriter and an actuary.
- Name any four areas where actuaries work.
- What is the eligibility to register as an agent?
- Explain any two forms of general relationship shared between a banker and customer.
- What do you mean by management of deposits?
Section – B
- II) Answer any FOUR Each carries 5 marks. (4×5=20)
- Explain the types of banks based on organization structure.
- What are the factors to be considered while advancing a loan?
- Bring out the special relationship between the banker and the customer.
- Differentiate between Reinsurance and Double insurance.
- Write a short note on RMIS.
- Analyse the rights and duties of an insurance agent.
Section – C
III) Answer any THREE questions. Each carries 15 marks. (3×15=45)
- What are the different types of risks and what are the steps taken to control risk?
- Throw light upon the principles of Insurance.
- Ganesh sells a truck to Chandru.
In lieu of this Chandru draws a cheque for Rs10,00,000 and gives it to Ganesh. Ganesh loses the Cheque.A day after the loss of the cheque, the money had left Chandru’s account.
What should Chandru do in future in order to protect his cheques? What are the different kinds of instructions a drawer can give the banker on the face of a cheque?
- “ Reserve Bank of India is the apex bank of the country.” Elucidate on the functions of RBI.
- Explain the different types of Insurance.
Section – D
- IV) Compulsory question – Case study. (1×15=15)
22.
The environment within which financial institutions operate has changed
in recent years. It is now one of:
◗ increased competition,
◗growing product commoditisation, and
◗ diminishing margins.
Banking customers have also changed in recent years. Customers are more knowledgeable, sophisticated, and assertive. They demand higher levels of customer service, are less loyal, and more inclined to switch to a competitor. Modern customers require flexibility in hours of operation, greater convenience, customisation, transparency, accessibility, and control.Competition to attract new customers is fierce. With so many different financial institutions to choose from, consumers can now demand better quality services and more customised products from their banks. Within AIB, this has led to a shift in business focus from transactional to relationship marketing. At AIB the customer is at the centre of all business activities and the bank has organised to position staff to meet the needs of customers in a highly customised and responsive manner.
AIB Group is Ireland’s leading banking and financial services organisation. It employs approximately 25,000 people worldwide in more than 800offices. AIB has approximately 1.5m active customers.AIB has access to information about its customers’ financial history andtheir dealings with the bank, as well as demographic information. Thisinformation is updated regularly. Analysing this data can help the bankidentify the customers’ present and future financial needs. This deeperunderstanding of customers helps the bank provide solutions to meet
individual customer needs. A successful CRM ( Customer relationship management) system involves all people,processes, and information technology associated with marketing, sales,and customer service.
AIB’S CRM STRATEGY:
AIB recognises that customers are the lifeblood of thebusiness and that the way to protect and grow itscustomer base – and ultimately its profitability – is to build
strong customer relationships through delivery of superiorquality service and to meet customer needs better than thecompetition.The CRM approach adopted by AIB focuses on maximizing value for the customer and the bank.
Research has shown that the key drivers ofcustomer loyalty are positive staff attitude; honesty, integrity, and reliability;proactive advice and delivery of promise; consistent delivery of superior qualityservice; simplicity and ease of doing business; good after-sales service; and a fair and efficient complaints resolution policy.AIB has approximately 1500 Relationship Managers, eachdesignated as the prime contact for an assigned group ofcustomers. Relationship managers proactively contact customers and offer customised products and services in a timely manner. Understanding thecustomers growing needs for choice, convenience, and an anytime/anywhere banking service, AIBprovides access for customers to products andservices through a number of other deliverychannels such as the 24-hour call centre, internet, and ATM network. The relationship managers, branch service staff, and call-centre staff have participated in CRM training andhave developed their relationship and service skills, toenhance their customer interactions, employees have more time to serve customers and fulfil orders,have higher satisfaction ratings.
CONCLUSION
By developing and utilising an effective CRM system, AIB has positioneditself as a leading provider of superior quality financial products andservices. AIB observed the changing financial services industry and itscustomers and adapted accordingly. It has been successful because AIB wasflexible enough to change its overall business strategy. Staying abreast ofcurrent industry and market trends while focusing on your most valuableasset, your customers, is proving a smart way to stay ahead in business.
Questions:
- Write a short note on the relationship between banker and customer.
- Do you think CRM enhances the relationship shared between the banker and customer? How?
- What are the benefits of CRM for the customers, employees of AIB and for the company as a whole?