THIRD PARTY PRODUCTS

the products which are not created by the bank are called third-party products these are neither deposits nor loans and therefore these products do not come under the balance sheet of the bank these are the product that are created by other companies but is only distributed or sold by the bank distributes these products without participating in risk as it does not invest or allocates any capital in these products 

bank earns fees based income by selling or distributing these products 

Genesis of TPP

the third party products sold by banks are financial in nature before banks startd distributing these product they were sold by the companies directely to the public through differnt means like direct sales agent network 

people who bought these products where also customer of banks and used to make the payments for buying them through their respective banks these companies realize that banks can also be a distribution point for their products as they already have a hung capitive 

Wealth Management Services

wealth management is a high level professional service that combines financial and investment advice accourting and tax services retirement planning and legal or estate planning for one set fee banks use WMS to market and distrbute third party products 

WMS involves referral service investment Advisory Service and portfolio management services 

referral service   

bank allow insurance comanies to sell their products in the premiss of selected Branches to the bank customer with adequate disclosure and transparency and earn referral fees on the basis of premium collected 

investment  Advisory  SErvice

here bank performs the role of advisor to its customer and not as marketing agent or Distributor of the MF or insurance company bank does not play any role in purchase or sale of the investement product but merely advice the customer and earns a set fee for the same