Gaurav goel

BUYERS BEWARE

 

Have you come across some high flyer bankers selling complicated products with an eye catching presentation? Have you come across pesky insurance agents/bankers selling ‘amazing’ insurance products without divulging all associated costs? Have you come across real estate agents/unknown tele-callers promising astronomical returns on projects/derivative products they are offering?

Have you also NOT come across these people when something goes wrong?

There is a high probability that your answer is YES. Truth is that we all get attracted to glamour while ignoring the basic fact checks.

Having spent two decades in the industry, I have realized that many systems are plagued with greed and not so honest intentions. Frauds, miss-selling, misrepresentation are extremely common in our industry.

I was once told that if you can’t explain basic product characteristics in plain simple language to your customer, then it means you have not understood it yourself. I can’t emphasize the importance of this enough. Don’t get fooled by language expertise, style quotient, organizational reputation and quality of paper in the marketing presentation.

Some of the products are sold to customers that have absolutely no requirement in their portfolio. Higher the commission involved, greater is the incentive to miss-sell. More complicated the product; more is the chance of cheating and fooling customers.

What differentiates a good experience from bad for a customer is the process involved. A well-articulated process driven system with skilled manpower and honest intention is definitely a more gratifying experience. Unfortunately there is no yardstick to evaluate honest intentions!!

While the regulator tries to plug the gaps, it’s not always adequate. Do not hesitate to ask basic questions like maximum downside, factors that can cause downside, commission being paid to the seller, meaning of all jargons in your mother tongue. Exercise your due diligence. That’s your right. You should become alert, revisit all finer details and seek a possible second opinion whenever you hear unrealistic promises on returns and service.

Service industry is characterized by inconsistency in experience. Barber in the salon can’t give you the exact haircut each time. Food platter won’t taste the same next time you buy it from the same restaurant. However you may still visit your favorite salon and restaurant if you are reasonably satisfied with your past experiences.

Financial industry and advisers are no different. Experience will help you differentiate between the good and the bad. Till then do TRUST but don’t close your eyes. BUYERS BEWARE!!

 

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