Continuing to think on what I wrote yesterday, I realized that what the Banking/Financial Services industry is doing is essentially increasing its Points of Presence (POP) in the market. Such products have a high advice component and having a large number of POP is a wise decision. The industry is just shaping up like the FMCG industry.
Another interesting point I have noticed in the past few days. When BFSI companies recruit from Indian management schools for their sales force, they usually pay in the range of Rs.15000-30000 per month (take home). And most of these recruits are freshers having no prior work experience.
However, if you apply to these companies for a job from outside a management school, you realize that they demand an experience of 1-3 years for the same salary. Hmmm…..Interesting!
Essentially its a trade-off if you look at it. A trade-off between low recruitment costs associated with B-school placements and experience & most importantly CONTACTS that a person brings to the table in mature recruitments. Its pretty simple- why should ABC bank recruit you if you do not have contacts in the marketplace and you bring with you heavy costs associated with payments to recruitment/placement agencies.