What are the benefits of using a CSP in a bank? Reasons explained well

CSP or customer service point is a subsidiary mini account provider with limited transfer availability with various offers you can have behalf of bank. CSP is a type of consultancy which provides bank an efficiency factor by clearing out small issues and services.

What is a CSP? Why is it so profitable?

In order to clear the queue in bank so the employees can work on critical issues from customers regarding Loan disbursement, discrepancy. And then when a total list of small works like withdraw, passbook update is coming from CSP they can work on this also.

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Factors where banks get stuck and the resolution

• For doing KYC the bank needs to let the customer understand how it is done then customer will carry the documentation another day if the documents have issues again it needs to be revised.

• So, it takes time for employees to manage the documentation part and those customers having large issues waiting in queue can get irate. To reduce this stress CSP is a great option to give a third party the load of work and for every single work a certain rate has to be paid.

• Sometimes the bank has very less resources as the printer, laptop or the finger print scanner where the third party with agreement can come up with their equipment and bank don’t need to spend on that so the work load gets increased.

• As the bank limit is greater than that of the CSP limit tracking can be easier also while checking the back ground verification of the lender person which reduces the fraudulent risk.

The CSP lender itself can share the ideas and also the methods of verification documentation from customers so the business of the bank is also getting channelized and network is also increasing day by day.

• Customers also becomes flexible with the timings of the lender as the banking time and the CSP lender store time is different and id there is any issue from the lender they will solve it bank doesn’t needs to take care of it.

So, there are various factors bank keeps in mind before inversing in a CSP as the criminal records needs to be clear, person needs to at least have a higher secondary certificate, have not to have any loan defaulter previously.

Who can get eligible to this?

While a CSP is being created it is calculated that minimum of three to four employees are taken care of from a single source. For a bank employee the salary is double of the commission of a single CSP. So, if you think of three employees gets six times more paid and the efficiency is less while with minimum of twenty-five thousand rupees starting bank can have greater efficiency.

How does a CSP work for a mini bank?

Customer Service Points (CSP) function as a mini-bank by processing limited transactions and sourcing business. It makes it possible for customers to withdraw and deposit funds. Bank Mitra or CSP works as a representative or agent of the Bank and get a fixed salary irrespective of the bank/branch.

Individuals can use the kiosk to access banking services such as cheque transfers, transactions, balance inquiries, cash deposits or remittances, and so on. They can do all of this without having to visit a bank. CSP is an abbreviation for “Customer Service Point,” which is also known as a Bank Mitra. Important note: As bank invest in CSP or provides the facility it needs to be taken care that it is authorized from the bank manager itself not any agent where it can be fraudulent. Also, bank holds a security deposit from CSP with a contract of several years where bank also gets interest from CSP holders.

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