CAIIB RB Unit 12 - Delivery Models

CAIIB RB Unit 12 - Delivery Models (Year: 2019)

The success of the Retail Banking depends on how the products and services are delivered to the customer. Delivery effectiveness in physical channels is determined more by the persons who are delivering the services.

The three important human interventions in physical channels are

(i)    Internal Customer - Staff of the Branch
(ii)   Specialised Marketing Personnel
(iii)  Direct Selling Associates (DSAs).

In many of the public sector banks, retail banking is carried on only as a separate departmental activity and not as a Strategic Business Unit (SBU).


  1. Dedicated Marketing Managers were appointed in addition to existing internal human resources.
  2. These specialist Marketing Managers (MBAs in Marketing) were young and energetic and recruited from the campuses of management Schools.
  3. Some banks appointed them in Junior Management and some other banks in middle management.



  1. DSAs are agencies appointed by banks to source business for them on a fee basis.
  2. DSAs are primarily engaged in sourcing Credit Cards and Retail Loans.
  3. The employees of the DSAs missell credit card products and make the customers fall into a debt trap by misusing the cards.
  4. Same is the case with misselling of retail loans and in this space, the pricing for the loans are not explained clearly.
  5. Ultimately this will result in dissatisfaction for the customers and reputation risk for the bank.


Reputation Risk is always a threatening factor in the DSA model

DSAs focus on pure selling by pushing the products than effective marketing after verifying the needs of the customers and their actual requirements.


Banks enter into tie ups with the following agencies for extending different types of loans.

  1. Tie up with Builders as a preferred financier for extending Home Loans to prospective buyers.
  2. Tie ups with auto dealers is another method adopted by banks for expanding retail credit.
  3. Sanctioning of Personal Loans under tie up with different institutions is another model adopted by banks to expand retail loans.

Even educational loans are disbursed on a tie up basis. Banks set up special counters during the admission season in reputed educational institutions and offer education loans based on merit.