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BoC on My Vision JK

VIEWS: 27 PAGES: 16

BoC on My Vision JK

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									                                     www.boc.lk




BOC ON MY VISION
    -OUR MAIN STRENGTH-




    Mr. J.K. Williams B.B.A in MKT (1   st   Class Honor)

                                williams_jk@ymail.com
                                         Contents of the BoC on My Vision




“Our main strength” .................................................................................................................. 03




Recognition of “BoC on My Vision” Report by Top Management – BoC .......................... 12




Current Implication on BoC...................................................................................................... 13




What’s Next ................................................................................................................................ 16




BoC on My Vision                                                  2                  J.K.Williams B.B.A in MKT(1st Class Honor)
                               “Our main strength”
The prime aims of the report are to highlight current strength and weakness of present capabilities
of bank and to forecast novel strategies to convert those weaknesses into our strength.


                                                                                  The Strength
I perceived that following are the reasons that seemed as our main strength for our success rather
than other state and private commercial banks, those are…


1. We are the only bank that has huge inter-banking network facility between all branches with
   real time process.
       Although, People’s Bank has more branches across the nation rather than us, they do not
       have inter-network system among all branches; likewise, Commercial bank, Seylan or HNB
       do not have number of branches across the nation, therefore I perceived that, we can create
       monopolistic situation in the banking sector in near future.
2. Other most contributable factor for current strength is, our Net work system provider i.e. IBM.
       Because, IBM has superior previous experience not only within Sri Lanka also across the
       world in software solution, and international banking experience as long time. At the same
       time, it provides largest and most up-to-date software system; therefore I especially proud
       about top management for selection IBM as a system provider; I can definitely say that, we
       are earning more profit via this network.


                                                                                The Weakness


People also wish to maintain relationship with the BOC, but I could perceive there are two main
reasons that demote their relationship with BOC.
All the people do not know or realize BOC’s positive and strength factor than your competitors yet.
Even though if you have more and excellent service and provision of services than your
competitors, the general public did not reorganize or realize it yet. As this reason the investment
you spend on this service provision in the form of money, time and HR efforts are being seemed as
wasteful one.


BoC on My Vision                             3            J.K.Williams B.B.A in MKT(1st Class Honor)
Say for instance, recently BOC placed an advertisement in the Television for BOC’s savings

   BOC has online facilities to deposit any amount of money by any one at any branches of
   the BOC across the nation, and the Account holder can withdraw any amount of money
   from their saving account, at any branches of BOC by using their BOC Pass Book. It
   means you are providing much convenience to Account holder.

   In addition, BOC provides Debit card facility along with ATM card to the account holder
   just for hundred (100/=) rupees; by using this card customers can buy anything form
   VISA approved purchasing centers.

   However, these things did not mention in your Advertisement, I can sure that, the money
   that you spent for this ad is pointless one.

   Please realize that, if we add these things into our advertisement, definitely we can raise our
   savings balance (in this section I mentioned 10 Success (by Bold Letters) and just realize
   that how many successes you mention in the advertisement?)

   Nevertheless, Commercial Bank, obtain these same facility with high cost. They are
   charging 275/= for Debit Card and they advertise for that card and their banking facility, but
   they do not have huge amount of branches compare with us.



account by showing savings passbook, at the time I realize you were mainly targeting on increase
your saving, other than that it dose not mention about your facilities or strength factor to the people.




In this situation, we need to think about our current position for increasing our profitability and
persistence; therefore, I wish to submit you my Managerial Techniques for your success in future,
and I recommend those Managerial Techniques to use them into BOC.




BoC on My Vision                              4             J.K.Williams B.B.A in MKT(1st Class Honor)
                           Problem and Managerial Techniques

                                      1. Loan Department:


Loan department playing a significant role in the banking survival, and banks liquidity position and
profit depends on this loan. However, there is a problem arises as some percentage of scheme loans
were turning to the lost, and some of normal loans also become to loss condition, in this time we
can able to use following Managerial Techniques to encourage loan and repayment of such loan:

CAN PROVIDE LIFE I NSURANCE’ LOANS FOR P EOPLE.

Can make a strategic Partnership with any popular and leading Insurance company, and we can
facilitate their customer to pay their installment due via our bank. At the time, we can arrange a
loan facility who took life insurance policy in the certain Insurance Company as paid amount is
more than certain amount (100,000/- or 200,000/- ), and we can offer certain percentage of loan on
their paid amount (70% or 80%).
       If the borrower fail to re-pay our loan installments, we can definitely recover from that
certain insurance company, because while we draw the loan schemes, there are two main things
should be noted, first is borrowers’ Re - Payme nt capacity and second is our Recovering
Capacity or Security, in this loan,


                      There is 100% of security; therefore no doubt about loss.
                      We can advertise via selected insurance company, where our advertisement
                       cost will definitely minimize.
                      We will be having proper maintenance of Profit and liquidity.

WE CAN HIRE THE SCHOOL LEVERS AS LOAN MOBILIZER, further we can provide them salary based on
their recovering amount not as fixed amount like insurance agents, or otherwise we can offer and
recover loan through our insurance company agreement by using their insurance agent.


In the present situation, you can MOTIVATE LOAN OFFICER to provide and recover the loan. It
may be the form of financial (Loan Bonus, Petrol Claim or other financial instruments) or non-
financial( if the loan officer pass the promotion examination, we can hold the promotion and
instruct him to recover the due amount, if he done, we obtain the promotions )




BoC on My Vision                             5            J.K.Williams B.B.A in MKT(1st Class Honor)
                                   2. Pawning Department:

Pawning is 100% secure loan in the banking system; therefore it should be motivated. I could
perceive the following weakness in the Pawning Department while I worked in BOC.


M AIN PROB LEM:

Although we have the agreement with IBM, we do not have prope r computer system and facility
in the Pawning Department i.e. there are no system preparing the pawning tickets during
           1) Redemption
           2) Part Payment
           3) Renewal
           4) Preparing the Letters for past due customers
In this situation, customers are motivated to go for other banks, such as People’s Bank, or HNB
which is near and offer good services to them. Therefore we need to develop proper computer
system and this will lead to produce the success in present and future banking experience by
increasing the interest earns capacity.
Because, customers have to face Delay, and inconvenience in the pawning services currently as we
depends of manual system so far, therefore we have to develop proper Pawning System, for that
purpose we can use IBM for solve this problem.


                   3. Telecommunication, Network, and System:

I could understand while I worked in the BOC, there is possibility to reduce the Telephone bills if
we use the following techniques.

There are three main reasons that contribute for increasing the Telephone Bills.


                           1. Out Side Communication (Communicate with Customers)
                           2. Internal Banking Telephone Conversation (Between BOC Branches)
                           3. Faxes between Branches.
The most telephone conversation done between branches, where expenses on telephone will be
increasing. In this situation, we can use inter-banking telecommunication system, i.e. the Top
management can make agreement with Sri Lanka Telecom to provide inter-banking telephone
system (like intercom facility within entire branch network), where monthly payment will be
definitely minimized than compare with current system.


BoC on My Vision                             6            J.K.Williams B.B.A in MKT(1st Class Honor)
PROCESS :
Once the system implemented, can allocated branch code for inter-banking telecommunication
purpose. thereafter, if one branch manager wishes to speak with other branch, then who has to dial
that certain code and can speak with No cost, just head office should have to pay monthly rent for
whole branches. (I.e. code denoted as line 1, in page no: 04)


S YSTEM:


I realized that, the main reason for faxing between branches is confirmination of Current Accounts
Holders’ Signature; currently the Signature card scanning process are undertaken by the IT
department of Head Office, therefore there are many burdens has to face by the Head office to scan
whole branches’ signature card, therefore the following problem will be raised.


      Unnecessary time will be consumed to release the money to the Customer.
      Each cheque should fax to the mother branch and re- fax must be take place by mother
       branch.
      Therefore, telephone bill definitely increases.
      In the busy situation, there will be conflict in the branches by customers.



           MANAGERIAL TECHNIQUES:



In this situation, top management can obtain a Scanner to each Area offices, and Area offices
should collect the Signature cards each day from their depended branch with their daily mail,
finally one staff in the Area office can Scan the card and add to the System.


WHAT IS NEED?
In this process, we just need a scanner for each Area Office and a staff for scanning the card, the
scanning knowledge can be feed to the current staff by just one day training. Therefore this can be
seemed as cost minimizing techniques (Time Cost, Faxing Cost, Employees and Customer
Dissatisfaction).




BoC on My Vision                             7             J.K.Williams B.B.A in MKT(1st Class Honor)
R ES ULTS
If we use these both techniques i.e. Inter Banking Telephone System and Signature Cards scanning
in Area office process, the Telephone will particularly be used for the Outside communication
rather than internal communication(among the branches), in this situation the Extra cost will
completely be reduced after implement this techniques.

The sample Diagram of Inter-banking and Outside Telephone system


               Out Site T.P System



                                                                   Inter-banking T.P System


(SLT Provide                           Branch code
Normal                                     648
Outside T.P                                                     Branch Code
   &                                                                534
Fax)                Branch code
                        002




                      Branch Code                                         Branch Code
                          725                                                 234
                                                 Head Office
                                                   Code -
                                                    999




               Line 1 – for Inter-banking Telecommunication
               Line 2 – For Out site communication and Fax Machine, in this Purpose, fax machine can
               use.




BoC on My Vision                            8             J.K.Williams B.B.A in MKT(1st Class Honor)
      4. Savings Department, Advertisements, and Customer

                                           Relations:


The support of Top management is playing the key role in the branch success, and to increase the
savings deposit balance; in the situation the management can take and implement the following
decision.


   1. While preparing the ADVERTISEMENTS by the Top Management, it should be shown our
       key success factors, unless our needs. As I mention in page No: 01, if we included the 10
       key success factors in the Advertisement, definitely the customer relationship with the bank
       will increases, and can provide quick services to the customers. Further, we can earn more
       profit by selling our By-Product, and can motivate to take the loan, by using their Savings
       Account Balance.


   2. While I work in the PBO at the Kattankudy Branch, I try to convert a Muslim father to open
       a RKG for his Daughter. He refuse and said me that, their religion limited him to maintain
       the account in the banking system, at the time he said that, if bank is enter into Islamic
       Banking System, definitely who will open an account.


Therefore, I please to recommend that, immediately introduce Islamic Banking System to cover
Muslims in Sri Lanka. Therefore, you can introduce Islamic banking system by,


Now BOC has several account types in the Account Opening menu in the System, in addition to
that, we can just add a link for Islamic Accounts, and if we enter into that, there should be different
types of accounts in the Islamic Name, and finally we can create an account for Muslim Customers.



                   Savings Account                                    Islamic Menu
                   Current Account
                   RKG                                       Savings A/C in their name
                   KRG
                   ….                                        Current A/C in their name
                   ….
                                                             RKG and so on….
                   Ect.

                   Islamic Accounts
BoC on My Vision                              9            J.K.Williams B.B.A in MKT(1st Class Honor)
For this purpose, we need to make an arrangement with IBM for adding the menu into the system,
likewise, in ABT too. While dealing with the transaction, it should print in the Islamic ter ms on the
passbook or printing document. Therefore, we need just three things…


   1. Immediate arrangement with Software Providers (IBM).
   2. Proper Advertisement for Islamic banking, for that purpose can hire Cricket Player or
       Indian Actors (Because other religious people also acknowledge those people), further do
       not use the Political Leaders.
   3. Right time introduction. In this purpose, we can introduce and comments Islamic banking
       system from their religious day. Until that day we have to induce those targeted mislims by
       using proper advertisements placing in TV radio and other stimuli in roads and banks, and
       can provide any free gift or lottery (Car or House) or other motivation factors to open those
       accounts by the Muslims.


3. in addition to the introduction of Islamic banking system that discussed above can create new
account type with name of “INVESTMENT ACCOUNT”, because Islam does not prevent the
term of Investment. Therefore, following two techniques can adopt by Top Management


            Just change the account name for Savings Account, and interest can be added to those
               accounts with the name of Profit Share.


            Can draw and introduce a new account type, with fixed amount of monthly
               investment. This means that, customer has to deposit a small fixed amount monthly,
               and can return a huge amount after the maturity period.


   E.g. if a certain customer invest 1,000/- of money monthly, bank should return 15,000/- after
   one year, because it is going to produce more profit to the bank. From below table, actually
   bank has to pay, if interest rate is 20%, 18, 066.67 (Rs. 12,000.00+ Rs. 6,066.67 ) rupees, where
   bank can only pay Rs. 15,000/- after 13 months.




BoC on My Vision                            10             J.K.Williams B.B.A in MKT(1st Class Honor)
                                                sum               of   Interest to   be
                    Month     Initial Deposit
                                                investment             paid
                    1st       Rs. 1,000.00      Rs. 1,000.00           Rs. 200.00
                    2nd       Rs. 1,000.00      Rs. 2,000.00           Rs. 366.67
                    3rd       Rs. 1,000.00      Rs. 3,000.00           Rs. 500.00
                    4th       Rs. 1,000.00      Rs. 4,000.00           Rs. 600.00
                    5th       Rs. 1,000.00      Rs. 5,000.00           Rs. 666.67
                    6th       Rs. 1,000.00      Rs. 6,000.00           Rs. 700.00
                    7th       Rs. 1,000.00      Rs. 7,000.00           Rs. 700.00
                    8th       Rs. 1,000.00      Rs. 8,000.00           Rs. 666.67
                    9th       Rs. 1,000.00      Rs. 9,000.00           Rs. 600.00
                    10th      Rs. 1,000.00      Rs. 10,000.00          Rs. 500.00
                    11th      Rs. 1,000.00      Rs. 11,000.00          Rs. 366.67
                    12th      Rs. 1,000.00      Rs. 12,000.00          Rs. 200.00

                                                Total                  Rs. 6,066.67




                             5. Employees Satisfactions:
While I worked in Kattankudy Branch, I could realize that, there no proper staff room or canteen,
likewise, there are no drinking wate r facility, and lack of Te rminal, therefore, employee
dissatisfaction will increases.


For that purpose, I recommend a managerial technique that, please make an arrangement to offer all
of things I mention above. Not only Kattankudy Branch, Most of the Branches also facing this
problem.




BoC on My Vision                                11              J.K.Williams B.B.A in MKT(1st Class Honor)
                   Recognition




BoC on My Vision     12    J.K.Williams B.B.A in MKT(1st Class Honor)
                   Present Implication on BoC

    The BoC introduced a new accounts for Muslims (New Target Market)




BoC on My Vision                      13          J.K.Williams B.B.A in MKT(1st Class Honor)
    New Account was introduced, that is new to Sri Lankan Banking Sector(Smart Investors
       Account)




(Broachers Are Only Available In Sinhala)

BoC to create 150,000 investors through the Smart Investor
Account
By Gayani Perera
The Bank of Ceylon (BoC), the number one bank in the country in
keeping true to its innovative spirit in introducing value added
products and services to its customers is planning to unveil a new
product for the year 2009 under the name BoC Smart Investor
Account. The Sunday Times spoke to Mr. C. Samarasinghe, DGM -
Product and Development Banking of BoC in order to find out mor e
about this innovative product.
                                                (http://sundaytimes.lk/090201/Fh/fh703.html)



BoC on My Vision                            14       J.K.Williams B.B.A in MKT(1st Class Honor)
    Some Branch’s facilities had been upgraded ( Terminal Facilities and other customer
       oriented facilities)
    The way in which the ads had been modified (now showing their strength in ads)
    The BoC mostly hiring or replacing School Leavers to reduce the operation cost rather
     than hiring permanent employees.




BoC on My Vision                        15          J.K.Williams B.B.A in MKT(1st Class Honor)
                                What’s Next ???

Once I completed a three months undergraduate based management training at the BoC –
Kattankudy branch, I prepared and send this report to senior management of BoC to introduce new
products and modify their Pricing, Promotional strate gies, and placing issues. accruing to this
report, there were several incredible implementation had been made with on BoC’s practices.


However, the Upcoming Strategies are….




      Upcoming Strategies…

            Pawing System will be enhanced a nd new system will be adopted
            There will be intercom facilities among the entire branch to reduce the
             cost
            Area-office based signature scanning system will be adopted for
             reducing the burden of current account holders




BoC on My Vision                           16           J.K.Williams B.B.A in MKT(1st Class Honor)

								
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