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In this article, we will discuss “Relationship managers”. I got an interesting comment about “Relationship Managers” on my Facebook wall from Prasad when we were discussing about recent HDFC Life offering on 100% Free Financial Planning through snapdeal. Here is Prasad’s sharing on his relationship manager and what happened with him.

I am totally disappointed with HDFC Bank, every time my RM calls, he wants me to sell an insurance plan. If i tell him that I have other commitments at this point of time, he tells me he can get me a credit card if I don’t have one and use it to buy the insurance plan… It can’t go down more ! Had so much respect to this bank. But the concept of RMs is the most misleading thing !

Focus on this comment and re-focus on one sentence – “he tells me he can get me a credit card if I don’t have one and use it to buy the insurance plan”. What does it say ? What comes to your mind when you read this ? It shows that there is extreme focus on performance, there is extreme pressure on meeting targets on relationship managers. Their jobs are at stake at times and there is a do or die situation.

Relationship Managers are generally assigned to a customer who have more money and resources than others, who has more longer term relationship with Banks, you are told that you will be taken special care by this relationship manager, at times you can directly talk to him for any issues. All the people having more than a certain net-worth or salary are assigned relationship managers.

You are told that he is suppose to help you out whenever you want and he will be available to you all the times when you need him. However, relationship managers are generally MBA Marketing guys , who are hired to take the sales go up, they are responsible to bring business by hook or by crook. The worst part of relationship managers is that their attiration rate is so high, that by the time you figure out that you 90% mis-bought and were 10% miss old a financial product, the relationship manager is not working in the same company anymore, he has moved to another job now.

I read this funny incident on Mayur’s article comment section where Sahid is sharing something about customer care people lie

Recently got a call from Kotak Mahindra bank regarding some bullshit insurance policy. Usually whenever marketing calls comes to my mobile, I used to say “sorry, Not interested”. But this time I decided to elaborate why I am not interested by telling a lie. All I told was “Actually I was interested in this product and had fixed appointment with your relationship manager on last Friday. But he didn’t come. So not interested.” The marketing guy replied that he will check back. After two or three minutes I got a call from them again. “Sir we are extremely sorry. We called that relationship manager. He was not able to come to you because he met with an accident that day. Shall he come today?”

What a relationship manager knows about you ?

A relationship manager knows how much money do you have in your bank account, he knows for how long it is lying there. He knows the recent credit and recent debit from your bank account. He can figure out that one of your FD maturity and is now “available” for massacre. He can then call you or meet you and show you an amazing product , if you want to invest and “if you have any money” . Obviously he knows you are sitting on a 10 lac cash right now. He is innocent, he is just telling you about something FYI, after all thats his job!

Remember, If a relationship manager recommends you some product and if you manage to make good returns or it turns out to be a good thing for you, it’s mostly accidental! So now, if you are an HNI or if you are going to get a relationship manager from your bank , broker or whatever it is, just make sure you know that it’s most probably going to add to your headache. He will keep on pushing you, convince you about opportunities and prove to you how your money is getting wasted sitting at your bank account. I remember a comment made by Subra on one of his article  on relationship managers and doctors.