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Business
BSP to allow banks to cross-sell more products

The Bangko Sentral ng Pilipinas (BSP) is studying seVERAL PROVISIONS OF ITS POLICY on the cross-selling by banks, with the intent of expanding the list of cross-sold products that banks can market and promote.

BSP Deputy Gov. Nestor Espenilla Jr. said that, “we’re ready to expose the cross-selling in the extreme comment, now we’re processing the new proposed guidelines.”

Espenilla said that, “the cross-selling guidelines today are more restricted, thrift banks are not allowed, and the range of products [are limited].”

Complex products such as trust and investment products—which are mutual funds and unit investment trusts—are non-banking products sold through the private banking framework and are not included as part of BSP’s cross-selling policy.

Current variable unit-linked products are still allowed, however, with Espenilla adding that “what is not allowed is the new generation of credit products.”

Proposals submitted to the Monetary Board (MB) include the expansion of products that banks can cross-sell beyond bancassurance and credit cards.

Bancassurance give banks more business and expand the network for the insurance sector, but banks have to request the central bank’s approval to cross-sell within their head office and branch network insurance products of their insurance subsidiary or affiliate.

Banks are allowed to sell insurance products at their branches under bancassurance, but there are products—some falling under private banking categories—that are being reviewed for possible inclusion as cross-sold products.

Earlier, the central bank met with various banking organizations, namely the Bankers Association of the Philippines, the Chamber of Thrift Banks and the Rural Bankers Association of the Philippines, to discuss revisions to its cross-selling policy.

The BSP requires all banks and their subsidiaries and affiliates to submit for approval the sale or offer of insurance plans and other products to the MB.

BSP Circular 357 provides the guidelines governing the use of the head office and/or any or all branches of universal banks and commercial banks as outlets for the presentation and sale of financial products of their allied undertakings.

Under the law, banks are allowed to sell insurance products at their branches but only if they have acquired an insurance company.

Refer http://www.manilatimes.net/index.php/business/top-business-news/36052-bsp-to-allow-banks-to-cross-sell-more-products

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  • Published on 27 October 2012 [...]

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  • By Matikas SantosINQUIRER.net

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BSP to allow banks to cross-sell more products


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