Banking on senior citizens: Relationship management

Summary: [You might view the earlier post "Banking on senior citizens: The institutionalized process" before this.] Relationships matter, especially in Asia. Many of the high value account holders in India are senior citizens, missing the close interactions of family. They fulfil the social need becoming the new investors.


The undeniable fact is that in Asia in general and India in particular, “relationships” are a social strength.

Building relationships

This cultural trait has come handy for investment banking following global trends that focus on Asia’s new economic frontiers.

Banks have latched on to creating designated roles specifically for customer support. Relationship Managers, for example, adopt a very personalized approach with the high-value account holders.

The task of building rapport seems simple, but needs strong people skills, if it’s to be effective.

The lonesome elderly

In the new global reality in India, many of these account holders are the elderly.

They have not been overly active users, but are there in name as custodians of the family coffers while children and grandchildren are a part of the migrating knowledge-based workforce.

The economy is booming, but with the ‘empty nest’, their loneliness is acute, difficult to cope with.

Filling the social need

Perhaps inadvertently, Relationship Management has filled this new-age social need. It has helped to precipitate the change that transforms these ‘non-customer’ account holders into active investors. Senior citizens, many of who are not quite the outgoing types, are now regular visitors to their Bank’s local branches.

Not because they are constantly strapped for cash, but for the joy of a few moments of animated conversation. They begin to look upon their contact persons not merely as Bank representatives, but as members of their own circle, worthy of trust.

Mediate communication

Investment advice could very naturally follow. Investment advisors are a floating team of financial experts moving around the Bank’s various city branches, carrying various fund portfolios.

The Relationship Managers mediate in communications, facilitating interactions between these technocrats and the customers, who might otherwise have little indeed to say to one another.

Secure future

Banks’ elderly customers in India are becoming comfortable with market risks! They now have something worthwhile to do to secure the economic future for children and grandchildren.

In the process they are useful again… Would this work in a more individualistic society? We shouldn’t put our money on it, because social relationships tend to differ with culture!

Perhaps then, strategy in a global company needs to be thought out as a loosely linked collection of moves. Depending on culture and context, they may be differentially activated in any particular direction.

This would keep the system from becoming hidebound only to cut costs, and ‘institutionalize’ for each region, the process with the most effective fit.

Comments/opinions, anyone??