2. Third party product refer to those products that are sold by a
bank for some other institutions.
The third party product distribution involves selling products
that are not created from the bank.
It is not come under the balance sheet of bank.
These are not deposits or loans.
The bank does not have to provide capital to earn income from
selling these products.
The third party products is fee based income for the bank.
3. Insurance products
Gold coins
Mobile recharge
Mutual funds
Government bonds
Demat account
Collection of taxes & utility bills
Advisory services
4. the bank receives revenue on the sale of different kind of
product in the form of commission, professional fees etc.
Third party distribution of financial products is turning into
big business opportunity for banks.
Insurance industry sources, around 15 - 20 % of fresh life
insurance business ( in terms of premium income) is getting
generated through banking channels.
5. low cost and no capital requirement make it viable for banks
to consider third party product even if the fee is low.
Bank gets fat commission by leveraging existing customer
base by cross selling multiple products to same customer.
Third party product can build new sales orientation in the
banks.
6. Bank by aggressive marketing of sale of gold coins are
actually are converting the savings of the economy into dead
investments. Thus it is against the national income interest.
No body realizes that how much energy is wasted at branch
level to meet even the smallest targets for these products.
7. Bank staff who does not understand the risk associated with
these products are asked to market these products.
Front line staff at banks may be more interest in pushing
insurance and Para banking products instead of promoting
core banking products.
8. FACILITIES SBI ICICI CITI BANK DHANLAXMI
BANK
Gold coin Gold coin rates in
public sector bank
are low as compare
to private sector &
cooperative banks
There is gold coin
rates are high
there is no gold
coin facilities
There is gold coin
rates are generally
high as compare to
public sector
Demat a/c Opening fee with
850
For non Indian
1000
No opening fee No opening fee Opening fee with
285
For non Indian
1140
9. FACILITIES SBI ICICI CITI BANK DHANLAXMI
BANK
Mutual fund SBI offers its own
mutual funds like
SBI mutual fund
ICICI is also offers
only its own mutual
fund like ICICI
Prudential fund
Citi bank also offers
mutual fund but its
do not have its own
mutual fund, it sells
the mutual fund of
other banks &
companies like
HDFC, axis
They also offer
mutual funds of
other banks &
company, they
don’t have there
own mutual funds
Advisory services There is availability
of advisory services
like suggestion for
better investment
etc., they charge fee
for the same
There is also
availability of
advisory services
for which they
charge fee
There is also
availability of
advisory services
for which they
charge fee
There is no advisory
services
10. FACILITIES SBI ICICI CITI BANK DHANLAXMI
BANK
insurance SBI focus more on
its own insurance
policies as compare
to third party
insurance policies
like SBI life
insurance, general
insurance etc.
ICICI also provides
its own insurance
policy like ICICI
Prudential
Life Insurance
Company Limited,
ICICI Lombard
Citi bank don’t
have there own
insurance policy
but they provide
insurance policy of
third party
companies. Like
health insurance,
medical insurance,
life insurance
Dhanlakshmi bank
don’t have there
own insurance
policy but they
provide insurance
policy of third party
companies. Like
health insurance,
medical insurance,
life insurance
11. FACILITIES SBI ICICI CITI BANK DHANLAXMI
BANK
Insurance SBI focus more on
its own insurance
policies as compare
to third party
insurance policies
like SBI life
insurance, general
insurance etc.
ICICI also provides
its own insurance
policy like ICICI
Prudential
Life Insurance
Company Limited,
ICICI Lombard
Citi bank don’t
have there own
insurance policy
but they provide
insurance policy of
third party
companies. Like
health insurance,
medical insurance,
life insurance
Dhanlakshmi bank
don’t have there
own insurance
policy but they
provide insurance
policy of third party
companies. Like
health insurance,
medical insurance,
life insurance
