Know-How Exchange : Strategy

OK. I give up. What does NRI stand for? Isn't it a radio station or network in India?

Dear singh.saurabhkumar,

Which touch point do you use? Greed.

India's economic growth is a magnet at the moment for major investors. And those investors want a significant return on their investment.

What bank would NOT want to take advantage of this?

Gary Bloomer
Wilmington, DE, USA

The following article, although written about China and MNC banks, applies as well to India: https://ipezone.blogspot.com/2009/05/shanghaied-mnc-banks-in-china-again.ht...

The question isn't particularly clear and I can see some of my colleagues here struggling with it.

The overarching problem is that a MNC bank will struggle to attract/acquire/retain NRI accounts because the Non-Resident Indian may not trust the bank as much as they may trust an Indian bank that they're grown up with.

Subsiidary problem areas include:

Distribution - does the MNC have branches where the NRI or Indian diaspora is resident and working?

Services offered - for example, many NR wish to remit funds home to support their families - are the fees involved prohibitive? What about exchange rates used - does the bank take a cut on two counts, fee plus exchange rate margin?

Trust - is the MNC trusted by the NRI and by their families back home in India?

Touch points include: Accessing the NRI through travel organisations, Indian Embassies and consulates, Indian clubs and meeting points, even Indian restaurants in non-Indian countries where the NRI is working.

One "killer" differentiator might be to develop a special NRI account starter package that includes free checking, fee-free Visa/MC, dual domestic (i.e. where the NRI is resident) and Rupee currency accounts, fixed-cost transfers to a Rupee account, ATM access in the country of residence and in India, free/low-cost travel insurance.

The key thing is to net the critical mass going. NRIs in a foreign land will congregate and socialise together and when they do so, they will also refer one another to goods and services they think are a better deal. So once you get started, the flow by word of mouth will follow.

Hope that helps.

ChrisB