www.boc.lk BOC ON MY VISION -OUR MAIN STRENGTH- Mr. J.K. Williams B.B.A in MKT (1 st Class Honor) email@example.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)
"BoC on My Vision JK"