Book 2 in the Keys to Sales Success series – the compete guidance package for sales professionals

By Sandy Vaci


Recommended by industry leaders from MasterCard Worldwide, Citigroup, UniCredit, RBS India, AIG/AIU, The Conference Board of Canada, EFMA and the Lafferty Group – a new book that represents the best investment in your sales performance you can make


Published: 10 December 2010

ISBN 978-1-907720-11-6

154 pages, paperback

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PDF: UK £39.95 + VAT/EU €45.60 + VAT/RoW US64.00

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Download the Introduction  here


How do I set up a sales agent network? How will I control it? How much time will it take to build? How should I layer functionalities across different electronic channels? How to design the best contract for brokers and alliance partners? Are there any templates I can trust to evaluate potential branch locations? What to ask for in terms of customer relationship management (CRM) to best integrate my sales channels? How should my service quality benchmarks change across channels? What works, and what does not, in ‘social media’ channels? What could be the next big thing in internet banking? What is ‘community banking’ and how can I use it to build my network? If you ever asked yourself questions like these, this book is for you. Channel Innovation in Financial Services: A Practitioner’s Guide to Development and Integration gives you a practical guide through the many different channel possibilities that exist today in financial services, with examples, implementation templates, case studies, ‘to dos’ and ‘watch out fors’.



Chapter 1    Branches – the basics
Location selection
Macro criteria
Micro criteria
Macro scorecard
Micro scorecard
Results to be expected

Chapter 2    Branch agents – ‘near sourcing’ to local entrepreneurs
Different concepts
Key benefits to banks
Benefits to agents
Consumer benefits
Start-up support
New versus existing locations
Interest-free loan
Promotional budget
Rental subsidy
Financial implications
IT support
Staging the introduction
Organisational level of agents
Integration and reporting
Support functions
Risk management
Control and audit
Legal / regulatory
Duties and authorised activities
Scope of contract
General commission design
Commission structure
Key questions
Knock-out criteria
Sample commission structure
Case study 1: Volksbank's Romanian branch agent (branch franchise) set-up  
Case study 2: Branch franchising and kiosk combination by ING
Case study 3: Community banking, using the agent banking model in Australia

Chapter 3    Sales agents – single-minded focus on acquisition efficiencies
Different concepts
Case study 4: Limited promotional sales agent test
Case study 5: Ongoing national sales agent test
Number of products
Types of products
Additional products
Product sales process
IT support
Other support
Control, risk management, audit
Roles and responsibilities
Career progression
Start-up training
Ongoing training
Recruiting and dismissals
Recruiting process
Success factors
Starting up the commission system
Commission structures
Sales agent commissions
Team leader / senior leader commissions
Appendix A – Sample prospect contact rules for sales agents
Appendix B – Sample sales agent contract
Attachment No.1
Attachment No.2
Attachment No.3
Attachment No.4
Attachment No.5
Appendix C – Sample list of content for sales agents' handbook

Chapter 4    Intermediary channels: maximising third-party relationships
Basic principles
Case study 6: Example 1 – North America
Case study 7: Example 2 – Europe
Contracts – overview
Third-party types
Financial intermediaries
Retailers – point-of-sale (POS) sales finance
Benefits to partners
Case study 8: Operational cost problems
Joint ventures
Revenue / cost / profit share
Straight commission system
New sales versus portfolio
Commission plus incentives
Floor price approach
Other support
USPs for end-customers
USPs for intermediaries
Additional USP for both
Physical and process designs
Physical set-ups and integration
Retail POS finance
Process design
Sales generation
Direct sourcing
Broker sourcing
Retailer sourcing
Funds disbursement options
Loan repayment options
Customer ownership
Communicating through intermediaries
Partner selection
IT requirements

Chapter 5    Remote electronic channels: the limits of cost efficiency
Traditional electronic channels
Main types, roles and evolution
Telephone banking
Internet banking
Addressing the challenges
New types of electronic channels
Mobile banking
New internet developments
Virtual money
Virtual banking
Peer-to-peer banking
Social media-based channels

Chapter 6    Buying, managing and controlling your channels
Mergers and acquisitions – buying your channels
Due diligence checklist
Overall business strategy fit
Marketing and sales review
Customer base
Prospect base
Intermediary contacts
Brand strength
Marketing infrastructure
Distribution and service channels
Credit risk management / lending products portfolio
Savings and deposits products portfolio
Information technology, other
Customer relationship management – managing your channels
Key issues
Alignments needed
Case study 9: How things can go wrong with CRM implementation
Service quality – controlling your channels
Appendix A – M&A evaluation guidelines summary – a sales / marketing perspective
Components to review
Values to be assigned
Appendix B – CRM architecture – summary of basic business requirements
Marketing data mart
Contact management / sales force automation
Marketing planning
Appendix C – Service standards definition and measurement – sample outline for branches
Basic deliverables
SQ dimensions
Methods of measurement
Service standards (benchmarks, expectations)
Appendix D – Service standards definition and measurement – sample outline for call centres
Basic deliverables
SQ dimensions
Methods of measurement
Service standards (benchmarks, expectations)


Table 1.1:    Branch break-even and payback benchmarks
Table 2.1:    Indicative cost models
Table 3.1:    Portfolio growth
Table 3.2:    Portfolio growth without sales agents
Table 3.3:    Bank sales network dynamics
Table 3.4:    Sales schedule for new sales agents
Table 4.1:    POS sales finance partner selection and approach checklist
Table 4.2:    Additional POS sales finance partner selection checklist
Table 4.3:    Sales expectations
Figure 3.1:    Organisational structure – integrating sales agents and their managers
Figure 3.2:    Sales agent recruitment process
Figure 4.1:    Personal loan sales and operations process design – retail store and direct sourced
Figure 5.1:    People completely or somewhat trusting forms of advertising (%)


Click here for full contents in PDF format: A_Practitioners_Guide_to_Channel_Innovation_Contents.pdf



"If you want a true 'hands-on guide' to best practices in today's global retail banking, this book is for you.  Sandy Vaci never disappoints. His new book is full of practical advice – the kind banking professional everywhere can use to turbo-charge their sales activities. Highly recommended!"
Patrick Desmarès, Secretary General, EFMA (European Financial Management & Marketing Association)

"Channel development and integration are some of the toughest issues retail bankers face in all markets. Make your life easier. Buy this book and read it – for the best guidance you will ever get!"
Michael Lafferty, Chairman, Lafferty Group

"Clear, concise and focused on the challenging  role of building a retail presence under different models. I'm sure I would  have benefited had I had access to Sandy Vaci's insights when I was building networks earlier in my career."
Michael D. Weitzman - Group Executive, MasterCard Worlwide (Customer Delivery - US Markets)


"This book is an insider's guide to execution. The best practices, latest benchmarks and implementation templates are business secrets which your competitors would not want you to know."
David Lim, Vice President, AIG / AIU (China, Hong Kong, Taiwan) (2006-2009)

“Practical, comprehensive, insightful. Will definitely form part of my office library.”
Puneet Bahl, Head of Retail Banking, The Royal Bank of Scotland Group, India

"These books do what their titles promise. They deliver an easy-to-use, hands-on overview of best practices. The reader will find tips for selling and sales management, with concrete examples from the financial services industry. "
Noel Cramer, Citigroup Product Head - Divestitures, EMEA Region


"A remarkable reading and effective practical guide. It presents alternative channels – sales agents, intermediaries, electronic channels – as an integral part of a financial institution's sales process, discussed through practical examples and case studies."
Zoltan Major, Executive Vice President, UniCredit, Central Eastern Europe

"An exceptional, comprehensive and practical review of the pitfalls and opportunities inherent in building a channel strategy for your financial services organisation.  And who better to provide this than a man with decades of real-world experience including stints with several top-tier global banks?"
Perry Eisenschmid, Vice President, The Conference Board of Canada



thumb_Author_picSandy Vaci is an international bank executive with 30 years’ experience across four continents, in close to 50 countries. He has held executive positions at companies such as Citibank’s Global Consumer Bank, Procter & Gamble, the Royal Bank of Scotland Group, Raiffeisen International and the Canadian Imperial Bank of Commerce.

He is currently Senior Lecturer in Marketing and Sales at the Maastricht School of Management and the Business School of Central European University. He is also Chairman of the Supervisory Board of the Credit Bank of Moscow and advises a wide range of companies on global best practices. His client list includes Barclays Bank, UniCredit Group, Eureko Insurance, Unilever, and the National Commercial Bank of Jamaica.

As a true ‘global citizen’, Sandy has three home bases (Toronto, Vienna, Budapest) which he shares with his wife of 25 years, Judit.


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