ideal features of a branch

7/31/2019 Ideal Features of a Branch

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Ideal Feature of a Branch: Attaining Process-A.K.M. Abdul Malek Chowdhury, DMD, RMW

1.0 Why Bank Branch? :

- To reach maximum customers;

- To expand network;- To ensure maximum financial inclusion;- To channelize the unutilized fund in the economic activity in formal way;- To maximize revenue earning and to protect the stakeholders interest; - Branches are the outlet to provide customer services;- Branches are the points where a Bank offers its products; and so on.

Point to be noted:

Banking products are almost the same in a country but what matters is the

way of acquiring the confidence of the customers and the product is offeredand the quality aspects associated with those products.

2.0 Branch Banking Departments:

- Account Opening;- Fund Transfer;- Cash;- Lockers;- Foreign Trade;- Investment (Credit);- Accounts and Admin- Customer Service and so on.

3.0 Inter-linkage between Quality & Profitability:

1. Profit and growth are stimulated primarily by customer loyalty;2. Loyalty is a direct result of customer satisfaction;3. Satisfaction is largely influenced by the value of services provided to

customers;4. Value is created by satisfied, loyal and productive employees;

5. Employee satisfaction results primarily from high-quality support servicesand policies that enable employees to deliver results to customers.

4.0 Dimensions of Service Quality:

Reliability The ability to perform the promised services accurately anddependably.Responsiveness The willingness to help customers and provide prompt service.Assurance The knowledge and courtesy of employees and their ability to convey trust and confidence.Tangibles The appearance of physical facilities, equipment, personnel andcommunication materials.Empathy The caring, individualized attention provided to the customer.


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5.0 Quality Management Model of a Bank Branch:


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6.0 Implication of Implementation of a good Model:

- Maximum Customer satisfaction- Lesser or no audit objections- Satisfaction of internal customers/job satisfaction- Higher productivity levels- Completion of formalities- Efficient record keeping- Prompt services- Compliance to central banks guidelines - Biggest market share- Branchs Business development - Officers Professional Development and so on.

7.0 Role of Branch Manager for Implementing the Model Features:

Branch Manager is the leader, responsible for the smooth running of day tooperations and also for the business growth at branch level. He should presenthimself as a dedicated and committed role model to be followed by other staff members. He should be able to

Devising effective business strategy; motivate staff for quality services;

encourage innovation; promote group decision making; Upgrade professional knowledge & dedication to the Bank; and

supervise the satisfaction level of both internal and external customers.

8.0 Common Role of Various Departments of a Branch:

Efficient record keeping; Error free processing; Serving customers with smiling face; Prompt service;

9.0 Role of Account Opening Department for Implementing the ModelFeatures:

The Officer In-charge of Account Opening Department is responsible of openingnew accounts and activating the dormant ones. He should be able to:

serve the customers promptly; make the account opening process the pleasant experience; exercise relationship marketing; leave no stone unturned to satisfy customers; efficient record keeping; Regulatory compliance; and

error free processing.


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10.0 Role of Accounts Department for Implementing the Model Features:

The Officer In-charge of Accounts Department is responsible for book keeping(profit/loss accounts, accruals, depreciations etc.) of the branch transactions andalso for budgetary aspects. He should be able to:

-

base his work on facts which means having more realistic approachtowards branch activity and business growth ;- develop procedures resulting full monitoring and control over branch

activity ; and- manage records efficiently.

11.0 Role of Remittance Department:

The Officer In-charge of Remittances Department is responsible for processingcustomers requests for funds transfer. He should be able to:

maintain efficient documentation; speedy and error free processing ; serve customers with smile; reply promptly to corresponding branches and Head Office; and adhere to laid down procedures of Central Bank.

12.0 Role of Cash Department

The Officer In-charge of Cash Department is responsible for cash receipts andpayments. He should be able to:

- serve customers with smiling face and due courtesy ;- process cash receipts and withdrawals accurately and efficiently ;- make additional arrangements on cash tills in case of long queue ; and- dispose off excess cash on hand as per the laid down policy of the bank

converting the non performing asset into a profit generating one.

13.0 Term Deposits Issuance and Encashment

The Officer In-charge of Term Deposits is responsible for the issuance andencashment of Term Deposits. He should be able to:

- process the applications timely ;

- exercise due vigilance while disbursing profit on deposits ;- work on the processes and procedures to lessen the time required for

the issuance and encashment of term certificates ; and- zero defect production.

14.0 International Trade and Credit Operations

The Officer In-charge is responsible for Import, Export and Credit Operations. Heshould be able to:

- follow the relevant industrial bench marking ;- work with required professional autonomy and spontaneity ;- improve continuously procedures for quicker and accurate processing of

transactions ;- timely deliver debit credit advice to customers ; and


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- update the departmental processes and record keeping according to latestinternational industrial practices.

15.0 Security Arrangements:

Security aspects play a pivotal role in internal control system in banks. It'spreventive measure to keep the system going on smoothly much more in thedesired way of the executors. Several factors contribute to make the security arrangements more effective, viz.

(a) Alarm System - To be tested frequently and record thereof tobe maintained.- install switches at convenient locations (atcabins of Manager, Cashier, Banking areas).

- have a battery-run alarm system as a stand-

by in the event of power failure.

(b) Entry of public in

work areas

- cash counters to be located as far away aspossible from the main entrace.

(c) Provision of trained

armed guards

- ensure rotation of their duties, placement oplain clothes security personnel at strategicpoints.- ensure that security guards are notentrusted with a routine non-security items owork

(d) Automatic lock and door closure in Cashier's cabin.

(e) Collapsible doors / shutters at the main entrance and grill gates to strongrooms.

(f) Layout of new branch premises in consultation with Police Department.

(g) Training of staff members on security measures.

(h) Hot line connection for Currency Chest Branches with the nearest PoliceStation.

15.0 Special things to be considered:

i. Green Banking;ii. Welfare of the community;iii. Environment friendly activities;iv. Corporate Social Responsibilities etc.


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16.0 Basic Indicators for Operational and Business PerformanceEvaluation:

1. Deposit

2. Investment

3. Foreign Exchange Business

4. Investment-Deposit Ratio

5. Overdue Investment

6. Recovery Rate

7. Assets

8. Human Resources

9. Business Volume

10. Cost/Expenses

11. Income/Profitability

12. Margin/Spread

13. Diversification of Investment14. Employment Generation through Economic activities

15. Security & Hygiene

16. Facilities (water, electricity, phone & other communication)

18. Commercial activity

19. Welfare oriented activities

20. Employee efficiency rates

21. Non Interest Income

22. Net Profit Margin

23. Return on Assets

24. Cost Ratio

25. Return on Assets

26. Customer Service


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Ideal Feature of a Branch (Exclusively designed by Sir):

Bank To

Build Confidence, develop product, ensure quality and grow efficiency.

Manpower planning Placement

Inter personal

Branch Manager

Premises Work Environment

Safety & Security

Internal Control,Supervision andRegulatoryCom liance

Business Budgeting Casting of profit O

B J E C T I V E

Gain BanksstrengthBusinessNetworkSocial NetworkAccess &drawing

support of intellectuals &elites

Customerssatisfaction &pleasure

Businessachievement &profitability

Protect assetquality andensureliquidity

Employees jobsatisfactionandloyalty/dedication

ProfessionalDevelopmentof Employees& Growingleadership andteam spirit

ideal features of a branch

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