Distribution management in financial services refers to the sales of financial products across various distribution channels, such as on-roll agents, connectors, channel partners, and centrally driven digital campaigns.

Building on the previous Distribution Management Blog, this follow-up piece delves deeper into distribution management in banking. From in-person branch banking and third-party product sales to digital outreach in lending and debt collections, we explore how banks can optimize their distribution and collection channels to stay competitive in a dynamic market

Understanding Banking’s Unique Sales Challenges

The banking sector faces specific distribution hurdles. Unlike many industries, banking often operates with a decentralized branch network, leading to inconsistencies in service and sales approaches across different lines of business (LOBs).

1. Customer data frequently resides in silos across different business units (retail, commercial, wealth management, liabilities, etc.), hindering a holistic view of the customer. This fragmentation makes cross-selling and up-selling difficult, as relationship managers (RMs) lack a complete understanding of each customer’s needs and potential.

   
   

2. Effective tracking of RM performance is another challenge. Banks often struggle to gain clear visibility into RM activities, lead management, and sales outcomes. This lack of transparency and actionable analytics makes it difficult to identify best practices, coach underperforming RMs, and optimize sales strategies. 
3. On-ground sellers still spend a lot of time performing operational tasks, such as updating lead details on CRMs, keeping their managers informed about daily activities, and attending multiple strategic meetings. Instead, they could better utilize their time by focusing on what they do best—selling!

How DMS Redefines Banking Sales

1. By contextualizing customer conversationsDistribution Management Systems offers a powerful solution to these challenges by enabling seamless coordination across teams, branches and departments. By centralizing customer data, a DMS provides sellers and RMs with a 360-degree view of each customer, empowering them to offer personalized advice and tailored solutions.
   
   According to McKinsey, “Branches that focus on high-value interactions and personalized advice can achieve up to 30% higher customer satisfaction scores.”
   
   Real-time customer insights and contextual recommendations guide RMs toward the most promising sales opportunities, while multi-product selling capabilities facilitate cross-selling and up-selling across different product lines.

   

2. By tracking business as well as activity metrics to identify winning sales behaviorsA DMS captures engagement activities that direct or channel sellers perform with their leads and partners. Each lead has unique attributes, and each seller engages in a different sequence of activities. The series of actions a seller performs to engage and convert leads is known as sales behaviors. Banks must enable and incentivize sellers to adopt the right behaviors by analyzing their current actions.

   Winning sales behaviors depend on multiple parameters such as lead type, seller attributes, current goals vs. achievements, and centrally driven product prioritization. By capturing this multifaceted data, managers gain intelligent, actionable insights to coach their teams remotely through soft nudges and suggestions.

   In addition to actionable insights, a DMS provides in-depth analytics on business and sales activities, allowing managers to schedule periodic follow-ups and trigger automated activity playbooks based on KPI risk limits, lead dispositions, and other seller metrics.

   

3. By merging the lines between all digital and physical distribution channelsA robust DMS can orchestrate digital and physical outreach efforts, ensuring consistent messaging and a seamless customer experience across all touchpoints. The key is to integrate digital and physical touchpoints to create a seamless customer journey. For instance, a customer might research a product online but visit a branch for final documentation.
   
   Digital outreach—including mobile apps, chatbots, and social media—is particularly effective for engaging younger, tech-savvy customers. However, banks must ensure that their digital platforms are user-friendly and secure.

   

3. Case Study: A Bank’s Transformation with Vymo’s DMS

• Challenge: Low tracking of leads and lead workflows, insufficient follow-up on customer engagement activities, and limited visibility for supervisors into sales team activities across 11,000 sellers pan India. 
• Solution: Implemented Vymo’s SalesIQ solution to centralize customer data, automate sales workflows, and provide RMs with real-time insights and contextual recommendations for each lead’s entire lending lifecycle. 
• Results: Within a year, the financial institution saw a 40% increase in lead conversions, a 36% reduction in time to first meet leads, and a 33% reduction in time to first call leads, improving overall sales efficiency and performance. The DMS enabled the FI to deliver faster, more personalized experiences across their direct sales channel, leading to stronger customer relationships and increased revenue.

4. The Result: Higher Sales, Better Relationships

Distribution management in banking is no longer just about reaching customers; it’s about delivering the right product, through the right channel, at the right time.

• Stronger customer relationships lead to higher retention and reduced churn. 
• Higher RM productivity translates to lower operating costs and improved profitability. 
• A DMS empowers banks to identify and capitalize on new revenue opportunities through targeted marketing campaigns and personalized product offerings. 
• Ultimately, a DMS transforms sales organizations from reactive order-takers into proactive relationship builders.

As the industry continues to evolve, embracing data-driven strategies and digital tools will be key to staying ahead in the game. As McKinsey aptly puts it, “The future of banking distribution lies in the seamless integration of physical and digital channels, powered by data and analytics.” The time to act is now.