BANKING AND FINANCE CERTIFICATE

BF 140 – MARKETING OF FINANCIAL SERVICES

AND CUSTOMER SERVICE.

8th APRIL, 2015 14:00HRS - 17:00HRS

------------------------------------------------------------------------------------------------------------
TIME ALLOWED 3HOURS

INSTRUCTIONS TO CANDIDATES

Answer Six (6) questions in all. Both questions in section A and Four (4) questions
in section B.

1. The number in brackets after each question or part of a question shows the marks
allotted.

You are reminded that orderly presentation and clear handwriting are essential in
your answers.

2. No books, papers, calculators or any other aids may be used in this examination

The total number of questions in this paper is SEVEN (7)

Turnover

1
SECTION A

Question 1
What does it take for a financial institution to develop a market targeting strategy that
would focus on size and growth in the financial sector in Zambia? (20 Marks)

Question 2:

FNB has introduced a student account which serves mainly the population aged
between 18 and 30 years, using the methods in selection of a market segments analyse
the main consideration in evaluating and selecting such a market segment. (20 Marks)

SECTION B

Question 3:
Delivery and development of financial services with regards to credit to customers are a
challenge to a banking sector that has traditionally depended on treasury bills for the
creation of a large portion of its assets. The rise in the government securities provides
competing challenges for delivery of credit.

Required:
Discuss the elements that can be considered to shift a banks focus from looking at
treasury bills to provision of credit as a financial services product. (20 Marks)

Question 4

Money transfer companies are providing competition to the traditional bank services
and as such financial institutions require the development of marketing concepts that
address the management functions and retain the market share.

Required:
Explain how the role of marketing compliments the marketing concepts towards
maintaining the market share with regards to money transfer services in Zambia.
(20 Marks)
Question 5

Outline the process involved in the development of market research for a financial
institution given the growing number of financial services providers. (20 Marks)

Question 6:
Financial Services in Zambia are always seen as being provided by Banks, when in fact
they include insurance and securities businesses. A number of products on the market
have provided competition for the traditional savings account which have included
annuities and other investment products.

Required:
Develop an analysis on the product and service differentiation with regards to
traditional bank savings products in comparison with other products in the insurance
and securities business. (20Marks)

Question 7:

a). What is service marketing for the financial services sector? (10 Marks)

b) How would services marketing strategies can be attained from the marketing mix
elements? (10 Marks)

END OF EXAMINATION