Bank of India highlights the USP in such accounts on various social media platforms from time to time:
Bank of India offers different types of salary accounts specifically designed for the needs of various customer segments, including employees working in the public sector. The Salary Plus scheme of the bank is offered to a chunk of government segments like central government, state government and PSU employees and paramilitary forces. Girish Singh, General Manager, Resource Mobilization of the bank, lists various sub-schemes of Salary Plus Scheme: “Our Jai Jawan Salary plus scheme caters to the commissioned and non-commissioned officials in the defence forces. Similarly, we have BoI Rakshak Salary account to cater to the specific needs of police personnel.”
While the bank has an all-India presence, it has more salary accounts of employees posted in all the major cities and towns of Maharashtra, Karnataka and West Bengal.
Acquiring such accounts is a continuous process for banks. They acquire new accounts in every FY and loose some over a period of time. Girish Singh gives an update: “At present, we are having 1.35% of our customer accounts in our salary schemes. Despite the ill effects of covid pandemic, we have seen a growth of 7% in this segment on a yoy basis. We expect a minimum growth of 10% in this segment going forward.”
The bank has seen negligible closure of accounts and according to Girish Singh, these closures could be predominantly on account of superannuation of government officials. In such cases, the salary accounts are converted into SB Pensioners accounts, which are again loaded with various features.
The bank has approximately 600,000 salary accounts. Despite the pandemic, it has opened nearly 3500 salary accounts per month in the current year. There has been a rising trend in the average balance maintained in the salary accounts despite the pandemic. The average balance in the salary accounts is approximately Rs50,000 at present.
Bank of India is offering ‘group personal accidental insurance’ cover up to Rs10 million in case of air accident and up to Rs3 million in other accidental cases. Besides this, insurance cover of up to Rs3 million is available for permanent total disability and up to Rs1.5 million in case of permanent partial disability. Girish Singh says the bank reviews all its savings bank schemes at regular intervals so as to meet the changing needs of the customer and also to provide best in class products and services associated with them. Moreover, all the salary schemes come with no minimum balance requirement.
For promoting the salary schemes, both print as well as digital media are used by the bank. The bank’s marketing team also promotes salary schemes by visiting administrative offices of central and state government entities, public sector undertakings, municipal corporations, private companies and firms including MSMEs.
VISIBILITY & PUBLICITY
The bank takes up various initiatives from time to time to increase the number of salary accounts. It has a wide customer base which gives publicity of its products by way of word of mouth. To increase the visibility of these accounts, scheme-wise details are made available on the bank’s website. The publicity department publicizes various products through creatives and other publicity material in which insurance details are also illustrated.
Girish Singh says: “The USPs of the schemes are also displayed on Digital Signage System in more than 3000 branches, in all the major the cities and towns across the country to make customers aware of the benefits of salary saving schemes. Our marketing team gives higher priority for opening of such accounts. The USP in such accounts is the group personal accidental insurance cover, which is highlighted on various social media platforms from time to time.”
RETAIL LOAN OFFERINGS
The salary account holders of Bank of India are eligible for availing retail loans and also for concessions in processing charges. They can avail discount/waiver of processing charges for retail loans such as housing loan, vehicle loan, etc. “Our retail loan products are the most competitively priced especially in housing loans and vehicle loans with the rate of interest linked to repo rate. Apart from this, no prepayment charges are levied in case of pre-closure of the accounts by the account holders,” says Girish Singh.
HIGHER PRIORITY, FOCUS
The branch staff of the bank are well-equipped to handle all the priority customers, which includes salary account holders. Since these accounts are high valued accounts, Girish Singh says a higher priority and focus are given to this segment by the relationship managers and the marketing staff posted in the branches.