Finance and Investment Marketing: Institutions & Assets

Unit 1: Marketing Across the Finance and Investment Industry

Nature of Most Financial Institutions

• Banks are the most common financial establishments.
• Financial institutions can expand greatly.
• Financial institutions purchased 61% of ad seconds on the top two VHF networks in Metro Manila.
• 47% of accelerated SEO revenues came from financial institutions.
• Banking and finance is a major part of the promotions and advertising industry.
• Banking and investments are tradable.

Investment

• An investment gains value or provides income in the future.

Assets

• Proof of ownership is required
• Land and houses are registered at Land Registry Office
• Vehicles registered at Land Transportation Office
• Boats and ships are registered at Maritime Industry Authority
• Banks are registered with Bangko Sentral ng Pilipinas
• Insurance registered with Insurance Commission
• Stocks registered with Philippine Stock Exchange

Financial literacy

• Financial literacy is the ability to understand and use financial skills.

Traits to be rich

• Extroverted
• Conscientious
• Emotionally stable
• Less neurotic
• Self-centered

Customer lifetime value

• Lifetime value is the net profit from a customer's business with a firm.

Financial Institutions

• Financial Institutions leverage to extend relationships and core business.

Cooperative Risk Sharing/Pooling

• Risk sharing is a guideline for financial systems.
• Systems cannot operate in isolation and are linked with risk.
• Finance should be pooled.

Gain

• Gain is an investment's or asset's accumulation of value.
• Cash outlay is needed to direct investments to see gains.

Loss

• Loss is the reduction of an asset's value.
• Losses happen alongside resources towards investments
• Time deposit accounts may lose value due to inflation

Brand Asset Evaluator

• Differentiation, relevance, esteem, and knowledge are the points for brand asset evaluators
• In that order are the brand's point of difference, appropriateness, regard for the brand, understanding of the brand
• Brand Strength is Strength / Vitality
• Brand Stature is Emotional Capital

Brand Personality

• Sincerity
• Excitement
• Competence
• Sophistication
• Ruggedness
• Competence is crucial in investment marketing, as is convenience.

Ultimate Positioning Tagline Rules for Financial Institutions

• Empathetic
• Project Consumer Confidence
• Builds Rapport

Ultimate Positioning Statement Rules for Financial Institutions

• Statements should be easy to pronounce and fit in one breath
• Statements should be symetrical, where cutting the statement in half would offer two different perspectives

Naming Guide

• Instant education should be evident in the statement
• Strong financial brand names should sugest strength, energy, reliability and familiarity

Requirements of a good brand name

• Compatibility with competitive offerings
• Compatibility with who you are
• Memorability through abbreviations or acronyms

Negotiable instrument

• Negotiable instruments transfer value from one owner to another.
• Time lapse affects the instrument's actual value.
• Time lapse relies on the date a cheque is drawn to the date it is deposited, and relies on the factors that may transpire between them.
• Time matters most for negotiable instruments.

Value

• Value can be tangible with the benefits/features/taste/components
• Value can be financial equivalent to its actual monetary cost

Acquisition/Actual/Market Value

• Owner's perception of an asset's price.

Intrinsic Value

• Intrinsic value is the actual value of an asset based on a perception of its true value and can be used in Investment Marketing
• The value may or may not align with actual and current market values

Variables

• Taxation
• Growth Rate
• Yield
• Non-Economic Factors that affect the market value

Intrinsic Value's Basic Illustration

• Cell phone P72,000 to purchase
• Cell phone is actually worth P50,000
• Katy Perry's selfie increased the value to P180,000
• Katy Perry is a variable for an asset investment

Actual/Current Value Applied on Stocks

• Stock is a ownership unit of an investment Instrument
• Stock is used in building blocks of corporate ownership, insurance, and shared for co-operatives
• First Metro Securities, COL Financial, eToro are examples

Reasons to Invest in Captains Fund

• Potential Growth
• Diversification and Stability
• Nation Building

Effects of Intrinsic Value

• Higher current value means an overvalued asset
• Lower current value means an undervalued asset
• Appreciation increases asset value, where depreciation decreases asset value.

Buyers Market

• Buyer's Market occurs when Supply is higher than demand

Sellers Market

• Sellers Market occurs when demand is higher than supply

Buyer's Market (Supply > Demand)

• Homes remain on the market longer.
• Competition is higher.
• Negotiation is possible.
• Best time to buy a house.

Seller's Market (Demand > Supply)

• Real estate inventory is low.
• Buyers are willing to spend more.
• Sellers can raise the asking price.
• Time is important.

Ponzi Scheme

• A ponzi scheme is a fraudulent scheme that uses new investors to pay returns to existing investors in a nonexistent enterprise
• Investment is successful at first, attracting more investors.
• The scheme collapses when funding runs out.

Pyramid Schemes

• Pyramid investments earn new returns when other investors are recruited or when the product offered is peddled

Universal Banks

• Universal Banks offer both Commercial and Investment Services
• Leasing companies, banks, investment houses, financing companies, credit card companies, institutions for small and medium-sized industries, investment holding in stock brokerage or securities dealership, companies engaged in foreign exchange dealership or brokerage, insurance companies and holding companies investing in allied or non-allied enterprises can be finanically allied enterprises of a universal back.

Commercial Banks

• Commercial banks accept deposits, offer checking account services, make loans, and provide basic financial products.

Thrift Banks

• Thrift banks specialize in savings accounts and home mortgages, and serve rural communities.
• Republic Act (R.A.) No. 7906

Islamic Banks

• Islamic banks follow Shariah (Islamic law).
• R.A. No. 6848 outlines the requirement for adhering to Shariah Law
• Amanah Islamic Bank is the only Islamic bank in the country.
• Cagayan de Oro, Cotabato, Davao, General Santos, Iligan, Jolo, and San Juan are branches
• Repulic Act No. 11439 ("Islamic Banking Act") was signed into law on August 22 2019, and regulates the powers of Islamic banks.
• Follows the Law for Riba or increases in rates
• Offers trust financing through Mudharaba, Participating Financing through Musharaka, and cost plus trade financing trhough Murabaha

Cooperative Banks

• Cooperative banks personal banking services, and are organized or owned by cooperatives

Rural Banks

• Rural banks offer simple banking services in rural communities and are privately owned and managed

Government owned banks

• Public banks are owned by the state, municipality, or public actors

BSP-Licensed Digital Banks

• Overseas Filipino Bank (OF Bank)
• Tonik Bank
• UNO Bank

Core Business of Banks

• Financial intermediation channels funds between parties.
• Differences in interest rates measures the gap in interest rates between two similar interest-bearing assets with Deposit Assets, Receivable Assests, and local + international investments.

Deposit Assets

• Savings account would have a maintaining balance to guarantee institutional liquidity.
• Current account is an account with an attached Negotiable Instrument
• Time deposits have penal powers of early termination, offering higher yields

Cheque Terms

• Stale of a cheque occurs after 6 months in to the date it was drawn'
• Crossed Check exists a check exclusively for deposit
• Endorsed checks transfer a check between recipiants
• Rediscounded checks are encashed before date en force with value deduction
• DAIF Drawn Against Insufficient Funds
• DACA Drawn Against Closed Account

Negotiable Insturments

• Title or evidence of debt that is freely transfererable as a substitute for money
• Pass from the transferrer to receive via delibery or endorsement

Receivables

• Retail consumer lending
• Business lending solutions

Core Marketing Thrust

• Amidst homogenous services
• Operational forces beyond institutional control
• Similar Superiority Branding
• INNOVATION

OMNICHANNEL

• Seamless interactions in the channel you are using to meet demands

Decade of Omnichannel

• Payment gateways are digital cashier who charges, verifies, collects cash, and hands over the deliverables
• Reduces fradulent services, allows multi payment operatiions, easy report generation for accounting

Payment switch

• Facilities communication between different payment service providers

Customer Lifetime Value

• Data mining can assist in determining customer lifetime value Profile, historical, situational, behavioral

HYPER PERSONALIZATION

• Targeted assistance with customization

Problem with cash

• ATM fraud
• Skimming

How banks generate revenue

• Extended relationships
• Cooperative pooling
• Cumulative pooling
• Financial intermediation
• Interest differential

Bank Interest rates

• Coveed by Bangko Sentral NG Pilipinas (RA7562 ART 2)
• Comprised of 7 memebers, appointed by the President with a 6 year term

State of finanical inclusion

• Account ownership increases, so as document requirements and access to e-money

Law Asset Comitee

• Coordinates the managing of assets and liabilities to earn adequate turns

Goverining agencies

• Bangko Sentral NG Pilipinas
• Bureau of internal reveune
• Securities and Exchange Commission

Possibile Jobs at the bank

• Business manager for managing branches. HR Change Management, engagement Program Officer, branch operations and HR are some jobs in security Banks of the Philippines

Classes of insurane

• Componsites are companies providng both life and general insurances Life companies protect beneficiaries when the insured dies
• Nonlife companies protect from propety, business or indiviudal needs
• Service insurance provides financial advice

Insurance cor marketing thrust

• Benefits help avoid potential problems, and are guarenteed

Core of insurance

Monthly surrenders are collected as a premium and are invested