United Bank Limited (UBL)

Sales Force Functions Of

United Bank Limited (UBL)

Sales Force Functions ofUnited Bank Limited (UBL)Submitted To:Mr. Khurram NasirSubmitted By:Ali Asghar (SP13-EX-0041)Dr. Neelem Asif (SP13-EX-0045)Usama Bin Adnan (FA13-EX-0079)Urfiya Jameel (SM13-EX-0064)Tauqeer Masood (FA12-MB-0017)Mohammad Ali Jinnah University - Karachi

Executive Summary

The purpose of this report was to examine Sales Force Functions of United Bank Limited (UBL) and how these are implemented.

Following are the elements on which this report is based:

Strategic Sales Planning

Sales Forecast

Account Relationship Management

Territory Design and Management

Recruitment and Selection

Sales Training

Compensating and Motivating

Research for this report is based on personal observations and interviews with Lower and Middle Management of United Bank Limited.

Data was gathered from March 25th to March 27th, 2015. So this report accurately reflects the current situations of United Bank Limited.

Acknowledgment

We have taken efforts in this report. However, it would not have been possible without the kind support and help of many individuals. We would like to extend my sincere thanks to all of them.

We are highly indebted to Mr. Khurram Nasir for providing us with the opportunity of working in a competitive environment and for their guidance and constant supervision as well as for mentoring us throughout the semester.

Our thanks and appreciations also goes to our colleagues in defining the ways to how to complete the report and people who have willingly helped us out with their abilities.

Table of ContentsIntroduction to Organization: United Bank Limited6History6Overview7Main Services8Consumer Banking8Priority Banking8Commercial Banking9Wholesale / Corporate Banking9Islamic Banking9Core Values9Strategic Sales Planning10Vision and Mission10Vision10Mission10Environmental Constraints10Pressure Groups/Government10Economic Conditions10Political/Legal Conditions10Socio-cultural Conditions10Technological Conditions11Go-To-Market Strategy11Segmenting the Market11Go-To-Market Participants11Advertising and Promotion11Telemarketing11Internet11Sales Forecast12Estimating Potentials12Qualitative Sales Forecasting12Jury of Executive Opinion12Quantitative Sales Forecasting12Trend Projections12Account Relationship Management13Transactional Relationship13Consultative Relationship13Enterprise Relationship13Territory Design and Management14Generalist Structure (Geographical)14Product Specialization14Customer Specialization15Recruitment and Selection16Recruitment16Referrals/Networking16School and Colleges16Selection16Semi-structured Interviews16Assessments16Offer & Acceptance16Sales Training17Compensating and Motivating18Compensation18Salary plus Commission18Salary plus Bonus18Motivation18Conventions18Certificate of Achievement18Promotions18

Introduction to Organization: United Bank Limited

History

It begun with a vision, a vision of unparallel progress and unmatched excellence true to the spirit of the era! November 7th 1959, Pakistan witnessed an event that would change the way we banked forever. It was not just the inauguration of UBLs first branch at I.I. Chundrigar; it was also the birth of the culture of service, a culture of innovation and a culture of financial excellence!

By June 1960, shortly after six months of opening its doors to the public, UBL had branches in:

Karachi

Dacca

Lahore

Lyallpur

Chittagong

Narayanganj

In 1963, UBL became the first bank in Pakistan to have a branch overseas- on William Street in London, United Kingdom. True to our promise of providing service and care beyond the ordinary to our customers, UBL and You have had a history. The first saving scheme for school going children was launched as early as 1960 or the formation of Pakistans first Staff College of employees in 1964, UBL, through the motivation of its staff and the trust of its customers, continued to grow at a spectacular pace. In 1967, UBL had hit the dawn on information in terms of technology, by introducing computer banking to Pakistan and in 1971, UBL once again paved the way by launching 3 online branches in Karachi. The newly formed state of Pakistan was witnessing the boom of industries and commerce cannoned by a bank that believed in the potential growth of Pakistan. Small wonder then, by 1978, UBL had a pledged economic department, had acquired two international banks. UBL also launched supervised credit and small loan schemes for small to medium sized firms as well as agriculture and had made for itself, a strong international presence for we had branches in 4 continents.

Throughout its history, UBL has kept pace with- and often exceeded the changing needs of changing times. Keeping the tradition of innovation alive, UBL introduced Pakistans first credit card, the UNICARD in 70s and left its mark by launching the Pak Rupees traveler cheques in 1971. Staying true to its roots, UBL was also the first bank to have an Islamic banking division and the first to introduce e-banking facilities at Hajj.

In the 1990s the government of Pakistan decided to change the face of banking by creating a blueprint to privatize UBL. At this point, financial experts were called on board to set the bank back on course, and with implementation of relevant changes, the government privatized the bank in the year 2002 Best way and Al Ayaan collaborated, forming the cornerstone for the UBL of tomorrow.

Today, UBL opens its eyes to a new vision every day, a vision of resurgent excellence and renewed commitment to our customers. 52 years into our glorious history UBL is now part of one of the worlds largest financial services groups.

Overview

United Bank Limited is the second largest private commercial bank in Pakistan with over 1000 branches nationwide and a customer base of more than 3.5 million. Results published for the first full years since privatization show record growth in business volumes, and superior profitability, in comparison to peer group. It posted a massive profit of Rs. 4.5 billion and declared a cash dividend of Rs.2.25 per share after a decade in 2003. After that, it has successfully launched a series of products in the year 2004 such as UBL Wallet -the ATM/Debit card, UBL Drive -car financing, UBL Address -home financing, You First Net Banking - online banking service, UBL Cash line - personal financing and UBL Business line - business financing . It has also to its credit the first complete drive-through branch in Pakistan.

In February 2005, UBL launched its credit card, which is the first EMV chip enabled credit card in South Asia. In June 2005, UBL completed its full suite of consumer products by launching UBL Money, the personal installment loan. UBL Commercial Banking has combated shrinking spreads and stiffer competition, delivering an increase in total deposits and doubling the commercial lending portfolio.

The Corporate bank group continues to be a key business area for the franchise, providing multi-pronged services to both Corporate and Financial Institution customers. Corporate Banking in pursuit of its house bank strategy has been relatively successful in building up well-entrenched relationships and a strong market presence during 2004. This strategy continues with an enhanced vigor as new Corporate Finance, Cash Management and Treasury & Capital Markets products are rolled out providing CBG the product depth; it needs to grow further. The Investment Banking Group is involved in several high profile and profitable transactions, including Pakistans first listed and rated Asset Backed Securitization TFC.

Treasury & Capital Markets Group, a Primary Dealer in Government securities, has a strong focus on professionalism, innovativeness, execution capabilities and above all a strong client focus. UBL is able to compete effectively with local and international banks, in areas as diverse as fixed income sales and trading, derivatives and structured products, FX sales and trading. It also pioneered the first Rupee based derivative transaction in Pakistan and established a dedicated Equities Trading Desk.

The United Asset Management Company (United AMC) is a wholly owned subsidiary of the United Bank. The company was established in April 2001, under the Companies Ordinance 1984. The company was completely separated from its parent company UBL in June 2004 and allowed to operate under a separate management. United AMC has recently been re-launched with a new image, a new logo and a new corporate identity.

United AMC has been licensed to undertake Asset Management and Investment Advisory Services under NBFC (Establishment and Rules) 2003. The company currently offers the United Money Market Fund (UMF). The company was separated under the directives of the Securities and Exchange Commission of Pakistan, which states that all Asset Management Companies need to be separate from their parent companies. Hence, the company has been removed from the protective wing of UBL, and has been allowed to test the waters of independence.

Another fund soon to be launched by our Asset Management Company includes the Regular Income Fund. This fund will be open for public subscription tentatively in September 2005. This is also a Money Market Fund and will invest primarily in longer tenor PIBs.

Post privatization, UBL has emerged to be one of Pakistan's most dynamic and aggressive financial institutions with its customer-centric philosophy of becoming a world class bank where the customer comes first, based on which all its products and services are designed.

Main ServicesConsumer Banking

Consumer Banking provides.

Deposit Accounts

Loans

Car Financing

Mortgages

Credit Cards

Insurance

Investments

Priority Banking

Priority banking is a new way of banking that understands what is significant to you through perfective tenseservices unequalled benefitsand solution.

Priority Banking Services

Priority Benefits

Priority Solutions

Priority Services

Commercial Banking

Commercial Banking provides services for Small to Medium sized companies to expand their enterprise.

Working Capital

Business Protection

Business Expansion

Yield Enhancement

Wholesale / Corporate Banking

Finance/Credit Extension

Corporate Finance

Trade

Investment/Cash Management

Islamic Banking

UBL Ameen Islamic Banking dedicated team offers comprehensive banking and a wide range of financial products compliant with Shariah law based on Islamic values.

Core Values

Honesty and Integrity.

Commitment and Dedication.

Fairness and Meritocracy.

Teamwork and Collaborative Spirit.

Humility and Mutual Respect.

Caring and Socially Responsible.

Strategic Sales Planning

Vision and MissionVision

To be a world class bank dedicated to excellence and to surpass the highest expectations of our customers and all other stakeholders.

Mission

Set the highest industry standard for quality, across all areas of our operation, on a sustained basis.

Optimize people, processes and technology to deliver the best possible financial solutions to our customers.

Become the most sought after investment.

Be recognized as the employer of choice.

Environmental ConstraintsPressure Groups/Government

In the banking industry the major pressure group is SBP where it can change the monetary policies causing a huge impact on the banks business.

Economic Conditions

Economic conditions are mostly impacted if; new sanctions are imposed on the country which again affect the interest rates of the country causing a major shift in the consumers saving/spending mechanism.

Political/Legal Conditions

Pakistan being a very instable country in terms of politics and legalities can be very uncertain and can cause huge losses to the banking industry and therefore many banks such as HSBC, Barclays or Citibank has decided to exit or cut their operations in the country.

Socio-cultural Conditions

In the country Islamic Banking is gaining a lot of popularity thus, SBP has made a compulsory notice for all banks to start off their Islamic Banking.

Technological Conditions

UBL is a lot more advanced than other local banks, For instance, they have a product which allows the customer to print their own pay-orders and cheques by giving online approvals. Another example would be of the 8 minutes pledge of opening a priority account. Thus, the technological factors give the bank an edge in the market and make it the USP.

Go-To-Market StrategySegmenting the Market

UBLs target market segmentation varies from product to product but if we talk about only Consumer Sales Products its target market is divided into two groups:

1. Salaried Persons

2. Businessmen.

For Salaried persons it is necessary to have a salary of PKR 25,000 p.m. to avail the products and for businessmen it is necessary to have income of PKR 50,000 p.m. to avail the products.

Go-To-Market ParticipantsAdvertising and Promotion

UBL has been investing in TVC, Billboards and Newspaper in Above the Line (ATL) communications.

Telemarketing

It also has its telemarketing department which is for customer service, prospecting and lead generation and cross selling products.

Internet

After Google has discovered Zero Moment of Truth (ZMOT), it is necessary for every organization to have its presence and visibility over the internet with loads of information which customer is looking for. Similarly, UBL has been using this channel for promotions over the internet and social media.

Sales ForecastEstimating Potentials

Firstly, UBL estimates potential on the basis of the number of maximum potential customers and maximum expected purchase rate in whole Pakistan by doing a research for a particular product. Then it identifies number of customers in %ages city-wise.

Once it has been done UBL then checks for the number of branches available in each of the aforementioned identified cities. Then according to rating of the branches, representatives are hired and placed in those branches. The criteria for branch rating are deposit size of the branch, inflow of customers, number of transactions etc. For instance, if a branch has an A rating which is the highest, two to three sales representatives will be placed in that branch, similarly for a branch with a B rating would get one sales representative and for a branch which has a C rating there will be one sales representative who will be working for three C rated branches.

Qualitative Sales ForecastingJury of Executive Opinion

In initial year of product launch Jury of Executive Opinion sales forecasting technique is used to forecast sales on quarterly basis in which senior experienced management mutually decides the amount of sales which needs to be achieved for the year. Since no previous data is available.

Quantitative Sales ForecastingTrend Projections

After a year has been passed, UBL uses trend projections sales forecasting technique to forecast sales on quarterly basis in which previous trends are studied and new forecasts are based on the findings of that study. Currently in most of the products this type of forecasting is being used.

Account Relationship Management

UBL has Relationship Banking as its strategy in which customer needs are focused unlike traditional selling model. UBL customers are divided into three major categories.

A. Personal/Priority Customers

B. Small and Medium Enterprises

C. Corporate Clients

These categorizations are made on the sales revenue size. Thus, all of the three relationship strategies are implemented in UBL.

Transactional Relationship

This type of relationship mostly prevails in Branch Banking network where there are walk-in customers (personal/priority) or direct mail customers. and most of the times they know their requirements whether they want to open a current account or saving account, whether they want a credit card etc. It also exists when a sales representative is called for a meeting once an appointment has been made and the customer knows why he has called the sales representative.

Consultative Relationship

This type of relationship is the core type of UBL since they are specialized for this. They are many scenarios from which you can identify this relationship. For instance, in branch banking network when a SME walk-in client approaches sales representative he barely knows what sort of product he wants, all he knows is that there is a requirement of working capital for his business. Rest, a sales representative would make him realize that UBL Cash Line would be perfect match as per his requirements.

Enterprise Relationship

Normally this type of relationship exists in Corporate Banking where we have separate team specialized for corporate clients but there are some cases in which sales representative (liabilities) from consumer banking managed to close a corporate account with the help of his managers and their bosses.

Territory Design and ManagementGeneralist Structure (Geographical)

UBL has divided its regions as follows.

Product Specialization

UBL has specialized people for every product category.

Customer Specialization

UBL has segmented its customer in three major categories.

Recruitment and Selection

Recruitment

In UBL direct sales force is on third-party contract (People, HRSG, Fulcrum etc)

Referrals/Networking

Referrals and Networking is the most adopted and effective type of recruitment in the banking sector whether we talk about initial/entry level job or senior level job. UBL mostly uses referrals for recruiting sales representatives (third-party contract) in which the concerned departments line manager or head asks people for referrals.

School and Colleges

There was an instance when UBL needed a sales manager (permanent slot) and they placed their AD on Universities notice boards. On that particular instance UBL preferred graduates from Iqra, Bahria and PAF-KIET rather than IBA and CBM because they believe that for a sales job it is better to hire a street smart person.

Selection

The selection process varies from situation to situation.

Semi-structured Interviews

Since UBL mostly hires experienced sales representatives, semi-structured interviews are the best for this type of scenarios in which the concerned departments head or line manager conducts interview. And evaluate the candidate based on that interview.

Assessments

The next step after conducting interview is that the interviewer has to fill an assessment form along with salary recommendation of the candidate interviewed and submit it to third-party contract companies.

Offer & Acceptance

As soon as the third-party contract company receives that assessment form, they make an offer letter for the candidate and post it back to the concerned department. Then the candidate is called again to receive and give acceptance of the offer made to him.

Sales Training

In UBL, mostly experienced sales representatives are hired through referrals so there is no formal training.

After the induction of the sales representative he is given policies, procedures, brochures and other documents to read and asked if he has any questions regarding those documents.

Then there are weekly meetings on every Saturday in which regional sales head also actively participates and discuss issues and problems faced by sales representatives and provide solutions and techniques to tackle those issues.

Moreover, there are case studies which are given to sales representatives and through which they learn how to tackle critical problems.

In some cases where a fresh candidate is hired on the basis of his presentation and pleasant personality, he gets hooked up with a senior sales representative and is sent with him on sales call so that he could learn from observing his senior.

Compensating and Motivating

CompensationSalary plus Commission

In UBL, sales representative are on third-party contract. Therefore, they receive basic salary and fuel allowance as gross salary. Furthermore, they get a medical insurance of approx. 100-150K from Jubilee Life Insurance (JLI). Moreover they get commissions on sales of products and on the basis of their performance as well i.e. achieving sales quotas.

Salary plus Bonus

And for the first-line managers (sales manager) or middle managers (regional sales head), they get salary, annual bonuses, incentives and other financing facilities at very low percentages.

MotivationConventions

In UBL, there are sales conventions twice a year in which they set a target for a certain quarter (normally much higher than the budgeted number) and whosoever achieve or over achieve that number, he/she is taken on a trip to whatever country/countries are mentioned in that convention.

Certificate of Achievement

Then there is a Certificate of Achievement or Certificate of Appreciation which is given to the Star Performer of the month/quarter.

Promotions

Then there are other promotions in which TV, Microwave, Kitchenware, Smart phones etc. are given to people on achieving certain targets.

National Sales Manager

Cluster Manager

(South-I)

Cluster Manager (Central)

Cluster Manager (North)

Cluster Manager (South-II)

Cluster Manager

Regional Sales Head (Liabilities)

Regional Sales Head (Assets)

Regional Sales Head (Wealth)

CEO

Head of Consumer Banking

Head of Commercial Banking

Head of Corporate Banking

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