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SUCCESS STORY: BRANCH OPERATIONS
CLIENT:
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Large Middle Eastern Bank |
DIVISION:
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Retail Banking and Treasury Operations |
CONTACT:
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Deputy General Manager |
MAJOR FUNCTIONS:
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Branch Operations: customer service,
facilities planning, operations, trade services;
Treasury Operations; Accounting |
SITUATION
One of the larger banks in the Middle East was faced with the
problems of increasing competitive pressure, changing regulatory
bars to competition, deteriorating market share, inefficient
processes and inappropriate systems. LoBue Associates was asked
to assess productivity and service issues across the retail,
treasury operations and accounting areas of the organization and
to recommend programs to resolve these issues.
LOBUE RECOMMENDATIONS
The following LoBue recommendations were implemented in this
multi-phased project:
- Designed a customer service oriented Model Branch
transforming the branch network from an inward, production
function focus to a customer and service oriented organization.
The customer service environment was reorganized around the
customers' needs and preferences, to facilitate one-stop shopping
for all routine banking services and transactions while reducing
customer wait times, establishing timeliness standards, reducing
error rates and establishing quality standards.
- Established regional processing centers in each region,
relocating processing functions from branch customer contact
staff to the RPC's.
- Redesigned bank-wide accounting and countrywide treasury
operations.
- Designed and implemented an MIS work measurement program
throughout all retail and operations areas, capturing volumes for
more than 60 types of transactions and/or activities measuring
individual, branch and regional performance.
- Control and support activities were surveyed and analyzed
throughout all branches. Model branch recommendations were
detailed and adapted to each branch to identify activities for
transfer, modification or elimination.
- Rationalized Business Banking including all marketing,
customer service and processing functions for Corporate, Middle
Market, Small Business and Islamic credit products.
REAL RESULTS
- The client bank realized direct savings of US $2 million per
annum, inclusive of the costs of establishing and staffing 3 new
regional processing centers. Identified additional savings
exceeding US $3 million per year upon full implementation.
- Achieved more timely management reporting, greater integrity
of financial MIS and a sustainable 42% gain in the productivity
of the accounting staff, while identifying additional bank-wide
savings opportunities related to accounting and reporting
functions of approximately US $4 million.
- Reduced processing backlogs and improved treasury product
customer session times throughout the branch system.
- Re-deployed and coordinated inter-group marketing against
target customer segments and service staff against customer
demand.
The bank reduced backlogs, improved customer service throughout
the branch system and increased market capitalization by US $900
million.
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