Abstract

Several parties contribute directly to product and customer acquisition for Financial Institutions. These parties are typically compensated, based on their relative contributions to business revenues, in the form of commissions or fees. Commission plans reflect the Institution's relative value for each new customer or product acquired, ensuring that Sales Agents motivations are consistent with Institutional objectives and profitability.

Drivers

Many Banks struggle with their current commissioning solutions, having separate systems and plans for products across business silos. This creates undue complexity and inefficiencies, especially for front line Sales and Operations staff. Many processes require manual data entry giving rise to errors, overpayment's, disputes and mistrust. Changes to compensation plans can be expensive and time consuming, often resulting in plans that are out of sync with products, and not commensurate with Institutional profitability.

Solution

Zafin Lab's miSalesAgent provides an enterprise solution for compensation management at Financial Institutions, with a centralized system for all products, sponsors and sales agents . miSalesAgent provides a fully automated, dynamic, rules based, system for calculating commissions and fees based on product sales, usage and retention. Little or no manual intervention is required for data entry, adjustments or corrections and powerful yet simple graphical tools allows commission plans to be managed and evolved with relative ease. Commissioning and compensation rules are tied to product pricing, allowing commissions to stay in sync with product evolution. Furthermore, dynamic KPI's (Key Performance Indicators) provide graphical indicators/dashboards for all parties and sponsors, supporting up to date visual feedback at a glance.

In addition miSalesAgent provides unique functionality and flexibility. Like dynamic pricing, dynamic commissioning rules can be based on any number of factors and attributes such as:

• Adjustments for overall customer relationship and profitability with the Institution
• Adjustments for individualized waivers, discounts and rate concessions
• Adjustments for sales performance vs. target with thresholds and accelerators
• Variations for region, branch, market segment, customer profile
• Variations for temporary or period based promotions
• Variations for Agents roles with cross selling incentives and commission splits
• Any other static or dynamic attributes available

Benefits

With Dynamic Commissioning, Financial Institutions enjoy a myriad of benefits to:

• Save time by reducing/eliminating unnecessary complexity and manual processes
• Reduce stress and increase trust for sales agents and operational staff
• Reduce costs by eliminating disproportionate compensation and simplifying commission management
• Increase revenues through cross selling and by ensuring that all products have sufficient/appropriate compensation
• Increase profits by enhancing overall customer relationship and profitability

Conclusion

miSalesAgent enables financial institutions to roll out a dynamic and differentiated commission calculation framework for third parties and agents, ensuring that the right incentives are passed on to the right parties on a real time basis. Management and operational overhead is reduced through consolidation and automation, and compensation plans can reflect the blended interests of product sponsors, branches/regional entities, sales agents, partners, customers, and the Institution as a whole.

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