State Bank of India (SBI) plans to convert all the agents of its various subsidiaries as composite agents under which they will be able to sell various financial products.
Currently, these agents distribute only their respective companies on an exclusive basis.
Under the plan, the SBI Group would now provide them with business leads on requests from their clients for availing themselves of the product offerings from associate companies in mutual funds, life insurance, credit cards, general insurance, and home and auto loans, according to SBI sources.
The initiative has just been piloted by SBI Caps Securities (SSL), and arm of the bank’s merchant banking subsidiary SBI Caps, which has created a common distribution network called the Universal Distribution Network (UDN).
“The soft launch of the initiative, which works on lead management system, has already been done and we are planning to go for its formal launch by April. Moreover, we have got all the regulatory approvals in place,” SBI Caps Securities’ senior vice-president Arunangshu Paul told PTI here.
The SBI Group has currently 1 lakh agents on its fold. However, it is targeting only 20,000 active agents for the initiative.
“We are targeting only 20,000 agents to begin with, who will be imparted training by us to sell group various products through referral business and we are targeting to collect Rs. 80 crore through this initiative in very first year,” he added.
SSL is, at present, distributing 11 financial products as part of its bouquet, which include mutual funds, demat accounts, equity trading, life insurance and general insurance, secondary debt, e-insurance accounts, primary debt offerings, corporate bonds, IPOs and corporate fixed deposits.
It has plans to distribute more group products in the near future which include home and auto loans, and SBI Cap trustee wills.
All these products are distributed through their online, branch and partner channels through a referral structure, where the deals are closed by SBI Caps Securities based on the reference made by the partners.
“The move will provide a very good earning opportunity to our all 37,000-strong distributors,” SBI Mutual Fund chief marketing officer DP Singh said.