Max Menezes – ICICI

Franchise Interview,Franchise India,ICICI Securities was established in 1995 as a wholly-owned subsidiary of ICICI Bank. It was set up as a integrated securities firm to provide wide range of services including investment banking, institutional broking, retail broking, private wealth management, and financial product distribution. Our diversified set of client include corporate, financial institutions, high net-worth individuals and retail investors.

Among all the services that ICICI Securities offers, one of its important services is online broking that is offered to over 3.1 mn customers through its pioneering website For the past decade, this website, which is India’s No.1 e-brokerage website has been empowering retail investors as well offering convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual Funds but also other services like distribution of Fixed Deposits, Loans, Tax Services, New Pension Systems and Insurance are available.

When did you start franchising? How has the experience been so far?

Amid the success of the online trading platform, ICICI Securities launched its franchise business in the year 2003. The demand for trading and investment was growing in the smaller cities, but there were very limited place where a retail consumer would get his entire investment requirement met at one place. The lower penetration of internet and the limited financial knowledge in these markets propelled us to start the franchise model in these places.

Do you see the financial services sector expanding via franchising in the future? Why/why not will franchising work?

Financial Service sector is going to see huge growth and expansion in the coming years. The impetus on developing 100 smart cities by the government in their policy gives indication of the amount of consumption that is likely to grow in the next few years. The focus on financial inclusion by various financial institutions will see the unprecedented growth in household income – savings and investment from Tier II, III cities and beyond. The incremental income generated from these locations will need to be mobilized, hence more and more institutions will head towards the smaller cities. The franchise model will work wonders in this scenario. The franchise outlets in such locations will give the accessibility of the various financial products to the investors. The investors in turn will get educated on the various instruments from the franchise. Financial Services unlike any other franchise option, gives a regular connect and long term relationship with its clients. Its also not a single time purchase product, which starts with pre-sales and ends with Post Sales. This is in-fact a recurring product which is dependent on the goal of the client, more like a Doctor – Patient relationship. Franchising in financial product will grow in manifold in the next few years.

Since this field involves good technical knowledge, what are the pre-requisites of being a franchisee with your brand?

ICICI Securities sub brokers are normally self employed individuals and limited companies who have exposure and a passion to serve the customer. Contrary to popular belief that only individuals having technical knowledge, do well in this field, we have seen that anyone with a passion for capital markets, customer service orientation and integrity do extremely well in the long run. We welcome franchisors from non-finance sector as well.

Talk us through the support and training that you will provide your franchisees.

We have well defined training schedule which includes both the induction and refresher training for the Franchise.

Induction Training : We give complete product and risk management knowledge and the session is made interactive by doing role plays and having Q&As session for Franchises.

Refresher Training : We have dedicated in-house Training team which conducts hand holding and regular training of existing franchise staff and customers to enhance the product knowledge further and resolving queries. Fundamental and technical training is also a part of this session.

Promotional Support: Extensive promotional material for customer acquisition are given to the franchise. The Sales Manger plans periodic promotional activities with his sub brokers.

Research Support: We have a strong in-house research desk which helps the franchise in proper dissemination of information and advice to their customers with the help of company specific reports , daily calls , quarterly result reports , MF comparison reports etc.

Franchise Staff Training: We have also initiated franchise dealer’s training on product, interpersonal skills etc.

According to you, how is the financial services sector performing at present? What can be done to improve the performance?

NA

How do you view the financial services sector five years down the line?

Financial Services sector will undergo changes as the income, profile and the consumption pattern is fast changing of the investors. The Conventional bias towards the traditional investment options is disappearing in the minds of investors. The financial services will now be considered as a specialized area which will see reputed and customer friendly organizations offering complete investment solutions to individuals and firms.

The overall penetration of financial products is low as compared to the developed countries, eg. Demat accounts are not event 4% of the total population, only 50 Lacs customers invest in Mutual Funds. This presents a great opportunity to increase the distribution of financial products in this country.

Also with the limited time that individuals have thesedays, and the amount of investment options available in the financial space, the demand for Financial Advisory is going to increase in the coming years. Single financial product offering distributors will need to change into multiproduct outlet along the lines of “financial Mall” to be able to flourish in the changing financial landscape. This will need a cost effective model for reaching out to the vast expanse of this country.

Please fill in the following franchise facts:

Investment: 1- 2 Lacs

Area: 200+ Sq Ft

RoI (in %): 30% Approx

Break-even (in months and years): 18 Months approx

Expansion plan (2014-15): Tier III & IV cities

Current number of franchisees: 893 Franchise Outlets and 3700 Investment Associates

About Franchise Mart India Pvt Ltd If you want to Say?

As per my experience with Franchise mart its a great industry in india or in a world , we are getting many relevant franchisee’s by franchise mart,well its a great source to bring franchisor & investors.we want to go ahead with FM.
Thanks.



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