Partner Management Software for Financial Institutions: Selection Criteria

Introduction to Partner Management

Partner management is a strategic approach that financial institutions use to cultivate and maintain relationships with various types of partners. These partners can include Direct Selling Agents (DSAs), brokers, affiliates, and other intermediaries who help expand the institution's business reach and customer base. For this blog, we shall focus on managing relationships with Channel Partner DSAs.

Use Case: Partner Management for Channel Partner DSAs

Banks and Non-Banking Financial Companies (NBFCs) collaborate with channel partners such as Direct Selling Agents (DSA) to enhance their business reach and customer base. DSAs act as intermediaries and earn commissions on loans or insurance products they sell on behalf of these financial institutions. This commission-based structure motivates DSAs to perform and aligns their interests with those of the banks and NBFCs, creating a mutually beneficial and long-term relationship.

One of the challenges that financial institutions face in this collaborative model is retention. This is because DSAs have the flexibility to choose which loan or insurance products across different financial institutions to sell to customers based on the commission structures offered to them.

Software Selection Criteria for Partner Management

Financial institutions would need to adopt a phase-wise approach to partner management. This helps in maintaining a competitive edge and building long-term relationships. Using partner management software that efficiently manages these phases is particularly important when working with numerous channel partners and calculating commissions.

3 Phases of partner management for channel partners: 1) Partner Onboarding

2) Partner Payout 3) Partner Servicing

Phase 1: Partner Onboarding- Smooth and Hassle-free user journey

1. Onboarding Workflow: Develop a detailed workflow that guides partners through each step of the onboarding process.

2. Data Capture: Enable partners to log in input data to stay updated with the latest progress

3. Documents Upload and Automated Checking: Enable partners to upload essential documents, which are automatically reviewed and approved by different stakeholders in line with the bank's or NBFC's approval procedures. This process may involve verifying credit ratings if required.

4. Sign/E-Sign Agreements: Facilitate signing/e-signing of agreements and archive all partner documents in one centralized location.

5. Empanel Agency Staff: Include the capability to onboard agency staff and store their documents safely.

   
   

Phase 2: Partner Pay-Out Calculations: Processing Timely Payments

1. Configurable Templates and Schemes: Develop payout structures that can be easily configured to ensure accurate commission calculations. This allows for quick adjustments and scalability as business needs evolve.

2. Automated Calculations and Uploads: Create and manage multiple payout templates, handle complex structures, and streamline data upload. This reduces manual errors and saves time, ensuring partners receive timely payments.

3. Cancellations and Adjustments: Manage loan cancellations, recover payouts, handle arrears, and perform retrospective commission recalculations. This ensures that all financial adjustments are accurately reflected in partner payouts.

4. Comprehensive Reporting and Dashboards: Provide partners with detailed reports and a dashboard to track payout processes, view business details, and manage queries. This enhances transparency and helps partners make informed decisions.

5. Compliance and Audit Trails: Ensure all payout processes comply with regulatory requirements and maintain a clear audit trail. This builds trust and credibility with partners, demonstrating a commitment to fair and transparent practices.

   
   

Phase 3: Partner Servicing: Ongoing Support and Engagement

1. Business Overview: Provide partners with a front-end menu to view critical business details and updates in real time, ensuring they have the latest information at their fingertips.

2. Payout Tracking: Enable partners to easily track and update their payout details, enhancing transparency and trust.

3. Invoicing & Dashboards: Facilitate invoicing needs by allowing partners to view, input, download, upload, and digitally sign documents through a user-friendly dashboard.

4. Reporting: Deliver detailed and transparent reports to partners, helping them make informed decisions and improve service quality.

Closing Thoughts:

Financial institutions such as Banks and NBFCs can factor the three phases of partner management discussed in the blog as a selection criteria checklist to choose the ideal software for their business. Adopting these phases creates a collaborative atmosphere, supporting long-term success for the institution and its partners.