The Personal Network: A New Trust Model and

Business Model for Personal Finance

Chennai City
Chennai has a diversified
economic base anchored by the
automobile, software services ,
hardware manufacturing,
petrochemicals and plastics. The
Chennai Port and Ennore Port
contribute greatly to its
importance. The city has a fully
computerised stock exchange
called the Madras Stock
Metropolitan city 426.7 km2
Metro 1,189 km2
Elevation 6 m (20 ft)
Population (2011) 6,221,782
Business Feasibility
Chennai is estimated to grow to a $100-billion
economy, 2.5 times its present size, by the year 2025.
Chennai was recently rated as having the highest
quality of life among Indian cities ahead of the other
three metros and Bangalore, based on the "Location
Ranking Survey" conducted by ECA International. It is
now ranked at 26th position in Asia in terms of
livability.
Employment Statistics
Business Opportunity
Huge Business opportunity of capturing the existing
Small time Free lancers diverting their existing
relationship with other channel partners. Though we
dont have the study , mapping of this business, it is
believed that there could be 100 plus such free lancers
and another as many working parallel with a job on
hand but passing on the files with others to make extra
money. The rough guestimates are anywhere upwards
of 30 crores plus predominantly all Banks put together
.
2nd Job is More Important

Most of the people looking for various opportunities
for extra income , Thanks for current social
networking trends in opportunities. People heavy on
networking and connections

The Trust Matters !
Framework
Process
This additional volumes will bring in a bottom lines which
could be very substantial , may be vey less in the beginning,
but if we understand this vertical and treat this well by
minimising the gaps, it could be a surprise jackpot
No tele calling, data base problems as mentioned above
No wastage on the productivity, gestation, training as the
current practise for our employees
Payment is only based on the productivity
Cross selling, new business opp as our penetration,
distribution is larger
We can seriously show case the same for other locations
once we have do this as a case study

The scene
Currently these producers are paid any where 1-1.25 %
and these files wither directly given to DSA or another
Team Leader types who collects and takes another .25
to .50 % . Over all the payout is anywhere 1.75 % to 2 %
,. Some channel partners pay on slab system also .
Starpowerz will appoint SPOC in every Cluster
Objective
Objective : we can look at 5 % of this business that is
150 lacs
Logic : Already existing business model . no new
invention .

Rationale These Producers do not have loyalty, no
engagement with any other DSAs or Channel
Partners. Its also believed the payments are not made
in time

The Players
Perfect and Fin-wiz, Andromeda , TSM are the major
players who between them do a business of rough
estimated 25 crores. But this figure is all Banks put
together. KBS who was earlier doing a 5 crore business
went out of business due to some bad files . The major
Banks who get this business are HDFC and Axis. As for
citi Bank , all their Channel Partners InMac,
Andromeda, TSM are involved in this. It could be
around 150 to 200 lacs monthly business
Plus points

Citi Bank is still most preferred as their TAT is the best
in the market .
Citi Bank does not open for new Channel Partners
These business is a reactive but not been pro-activated
Our current business model is purely on tele calling
model involving high risk of DND penalty and high
cost of tele calling and Infra cost beside the data base .
This alternative channel gives us huge cost benefit and
complimentary business

Negative points

Files could be a sticky : Our team will be involved in
the process
Due Diligence needed, Citi Banks compliancy control
: Solution , these producers can be converted
Citi Bank knowing ? : Citi Bank will not approve this
on the face of it but converting them as our FOS and
creating codes on their names by making them as our
employees will make things easier. Perhaps couple of
months under observation, understanding will help
us to do this

Game Plan
Make this as pro-active
Identify and bring in thru network of , Vathi to bring
in five such producers . Vaithi will be the interface for us .
As he is a Partner to us there is less likely chances of losing
this model later. The focus will be only of disciplined ,
been there in this business for longAlso let them know
starpowerz National presence and back ground give them a
feeling that they are with a Corporate than a DSA
Make the payments assurance and pay them on 1
st
of
every month
Treat them well effectively by customised , need
based Rewards and recognition engaging them , pay an
additional pay out with a budget of 1.5 % to 1.75 %

Game Plan Con..
As there is no investments up front excepting paying
them couple of weeks before our receipts from citi
Bank.
Have a monthly meeting with high tea or dinner
Give them a good feeling and nice experience so that
all these treatments will make them to feel
comfortable so that they stay with us.
Create a incentives for reference in bringing another
producer by giving them a nice gift worth 5 k , perhaps

Target
In 90 days time we should have 10 such producers
A minimum of 70 lacs only for Citi Bank ,by the first
week of July. Any additional business that comes for
other Banks will be merrier as there is a constraint in
HDFC Payouts as we are yet to reach the higher slabs .
This additional business also means reaching the
highest slabs in HDFC too
Revisit again and do an exhaustive analysis to
understand and rework the same to have a new
business plan for the future business.