Sales compensation in retail and corporate banking
At hkp/// group, we understand the business and sales concepts used by financial institutions. As a result, we are able to develop models for sales functions that provide incentives, while ensuring compliance with regulations.
The business models of banks and other financial institutions are based on the provision of services to specific customer groups. Traditionally most institutions have focused on private and business customers. Competitive intensity in these customer segments is therefore traditionally very high. This makes the quality and motivation of customer and product managers in the sales process all the more important.
To ensure that the sales organization is oriented toward the goals of the institution and to boost staff motivation, companies develop special incentive systems that they can use as a steering tool. The design of these systems reflects both the specific sales approach (markets, customers, products, channels) and the economic value of the sales activity to which the incentive is attached. Most incentive systems make use of quantitative performance indicators. However, institutions must now review these systems in light of the new regulatory requirements regarding compensation systems, which stipulate that they must also take into account qualitative performance indicators such as customer satisfaction. Institutions must also make changes with regard to the correlation between performance and compensation levels, which in the past was often formulaic.
At hkp/// group, we understand the business and sales concepts used by financial institutions. As a result, we are able to develop models for sales functions that provide the desired incentives, while ensuring compliance with all relevant regulations.