Cases

Benchmarking Distribution Models for a Large Multinational Bank in India

Challenge

The client was a large multinational bank in India and was looking to expand its branch network. However, prior to establishing additional branches, top management at the bank was interested in benchmarking distribution models of three leading banks in the country. The parameters required for benchmarking and comparison included understanding:

  • Corporate organization structure
  • Retail product distribution set up
  • Branch dynamics

    1) Organisation structure, functions/ responsibilities, control mechanisms and performance indicators, target setting mechanism and cost structure

Our Approach 

To benchmark distribution models in the banking sector, UC adopted the following approach:

  • A pilot study was conducted initially, selecting one bank (of the three required to be benchmarked with) to build a benchmarking template
  • In co-ordination with key client personnel, a primary research exercise was conducted for the selected bank. This included:

    1) Segment selection – based on the client’s objectives, corporate personnel and branches at locations of strategic importance across India were selected for the study

    2) Preparation of discussion guides – detailed discussion guides for each interview were prepared

    3)Interviewing and documentation – takeaways from each meeting were documented and discussed with key client personnel periodically

  • A secondary research and financial analysis exercise was carried out in parallel to identify areas that required greater emphasis during the primary research interviews and also to validate inputs received from the research respondents
  • Based on the findings from the research exercise, a template was created, which contained the following sections:

    1) Corporate organisation structure

    2) Retail product distribution set up

    3) Branch organisation structure

    4) Branch functions and responsibilities

    5) Target setting and reporting mechanism

    6) BControl mechanisms and performance indicators

    7) Branch cost structure

Impact

The project provided the client with a gap assessment based on the benchmarking exercise that formed the basis of a capability building agenda.