The recession especially in the field of banking is today’s debate for whether a ‘Change’ is required to repair our past mistakes. The reference is known, but the acceptance is the debate. What went wrong….. is to be heard from the bottom level.
Before starting to debate on the inefficiency of people handling collections (recovery), it’s better to start from the sales point of view. A front end sales person is induced to create hot prospectus in the name of his ‘career’ and obliviously we harden and educate him to introduce new methodologies which can always be proved as an issue against ‘Compliance’. The word ‘Target’ in estimating one’s performance has pushed the banking segment to such an irrecoverable Loss.
The world is filled with huge population who can be converted as customers and the customers insisting for a loan facility is not even 10 % of the total world population. Money is accumulated in the hands of the people where it’s already available. The debate that the rest 90% of the world population has no eligibility as per credit norms in availing a loan does not literally mean that they are incapable in repaying their debts. If still disagreed, the efficiency of repaying capacity of the existing 10% of the world population who are customers to a bank appraised by credit norms is to be rated atleast 90%..!
The bankers and the competition in accumulating the number of customers is to be promoted as acquiring fresh customers and not to be a conversion from one bank to the other.
A customer of one bank is the customer of the other bank proves the statement that the existing 10% of the world population are predicted to be the only available potential customers and are obviously customers in almost all banks. The misunderstanding that a customer who has an excellent existing repayment track record can be a good pay master is the cause of these mischief. Burdening the same customer will only reflect his inefficiency in repaying and finding new opportunities in covering the rest uncovered population can only be the solution.
The lack in concentrating the rest 90% of the world’s uncovered population strength can only be the cure and shall remain an answer for the question of ‘Recession’. Loans based on past track records is to be repealed to throw lights in running a successful business
The business today has become a begging process by sending money literally again and again to the door steps of an existing customer has proved the right sense of the words “ The Value of the Money is felt only when it is hard earned”.
- By Sabarish Jayaraman
