Middlemen In The Spotlight
The Vanishing Middle
It's innovate or perish for the old financial services middlemen
Service: Banks
- Middleman: Direct Sales Agents (DSAs)
- No. of people: 35,000
- Prognosis: The better ones will get absorbed within the banking system, some will carve out niches with specialised skill sets
Service:
- Middleman: Third party administrators (TPAs)
- No. of people: 5,000
- Prognosis: Consolidation among the 23-odd TPAs today; will need to invest in infrastructure and skills.
Service:
- Middleman: Travel Agent
- No. of people: 150,000
- Prognosis: Could face the heat if airlines reduce commissions, will need to offer value-added services
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Pralay Mondal, HDFC Bank
"Companies will look at servicing claims in-house once the volumes are built."
Vishakha Mulye, ICICI Lombard
"DSAs have to improve their skill sets. It depends on what each one does to adapt."
Ashvin Parekh, Ernst & Young
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