Business Reenginnering

 Business Process Re-engineering: Where we Can and How. Case Study for Banking

Ø  👉Customer

Ø  👉Technology

Ø  👉Human Capital

Ø  👉Organizational Structure

 

1.       Customer Segmentation

·        On the basis of geography (provincial concept). Provincial offices are responsible to re-segment the market on the basis of their individual district/zonal/branches benefits. i.e. on central level market can be defined as 7 regional level with respective regions particular benefits like tea in Koshi Region, paddy/wheat on Madhesh, Ginger and Orange/tourism in Gandaki and Bagmati region,  corporate and industrial hub for Lumbini, herbal centric business, SMEs/MSMEs specially herbal medicine/untapped tourism may be in Karnali and Far western regions. While, Branch/zone or district level segmentation will be done as per respective levels benefits i.e. Morang will be categorized as per corporate and industrial hub; Jhapa and Ilam can be segregated with tea business hub. Banks strategies to create lead , nurture, profiling, rate and return trade-offs and service delivery etc. will be as per above segmentation, requirement of the borrower/clients and central level strategic decisions to be done according to the same.  

    Niche Market strategies (focusing on special propose vehicles, high value customers, government entities, regulated financing areas etc): Like Round tabular are marketed as one of the prestigious groups for offering credit card at present. NMC Doctors can be another one. Similarly,  business penetration via tea development board to cater Tea Harvesting business (regulated business), Feed industries etc. with specific focus of their USB and banks priority. These strategies can be implemented immediately and rates, commissions and banks return will be prioritized based on banks internal credit and business rating and shall be same across the country on the basis of assigned rating.

·         Based on institution (Corporate, Retail, Governments etc.)

·      Segmentation based on Regulatory priorities/governments priority: Like Agriculture, Hydro-power, Deprived sector financing, or opening all Nepalese Bank accounts that are being prioritized by Nepal Government. That will give bank not only business prospect however mileage to integrate Nepal Government mission towards poverty alleviation, socialization, economic prosperity and equality. Product designing, bundling, marketing, offering, pricing etc will be done on central level.

·         On the basis of demographics, ethnicity , culture  etc.

·         On the basis of value of client, High Net-worth, influential peoples etc. 

2.       Identification and nurturing

1.       Conducting market research to identify business opportunities, profiling them with the help of primary and secondary data collected through different Omni channels, publications, statistics , competitor analysis etc .

2.       Evaluate the prospect, find out feasibility and profitability, business potential identification

3.     Identify their need, their requirement, and trade off our product and service according to their interest and requirement.

4.   Offering value added services, establishing networking, and building relationship with key decision makers of the prospect and being engaged with them for establishing mutually beneficial business.

This can be done on central level or regional and branch level as well and as per identified requirement of the customers strategies to nurture and offering can be done as per their interest and requirement. Like if customer is corporate level high value one, banks offering can be on central or provincial level or if their requirements can be fulfilled by branch level, we can offer general product like pre-approved pre-defined service, service can be offered accordingly.

 

3.       Making efficient of existing process by using digital tool and pre-defined processes

·         Pre-approved services for consumption related loan/services

·         Digital application and response (LC/Guarantee/Mob banking/internet banking password change, credit card and debit card pin change) Chequebook request etc.

·         Cash deposit machine, Clearing Cheque deposit Machine, Intra-bank cash and cheque deposit mechanism

·         LMS/CRM, loan approval systems, product and service vertical mechanism for approval and decision-making. Flat decision-making system. Underwriting Vs Relationship Management.

·         Loan application, approval, disbursement, documentation, and monitoring etc on digital model by using different omni channels, digital platforms, like CRM/LMS/Document Management Systems and other to be developed modules.

 

4.       Product bundling, Cross-selling, Mass Marketing, up Selling, forward and backward integration.

 5.      Risk Based Pricing, efficient pricing and Risk return tradeoff.

·         Pricing to be done on the basis of rating of the customer

·         Pricing; market segmentation and niche marketing

 

6.       Assets Quality and management

·         On-boarding of the client (during the surplus and the deficit), banks approach, Branch’s /divisions to be instructed accordingly) and use of MIS

·         Policies and guideline based decision making and lending authority (for control as well as prompt service and effective implementation)

·         Monitoring units, like CCAC/Risk/Underwriter vs Relationship Management/managers

·         Third party agreement specially small ticket size business (Hire-purchase, home loan, Education loan), Nepal Army/Police and government institutions for saving/salary accounts/fixed deposit etc.

·         Early warning signal management

 

7.       Human Resources

 ·         Right man at right place

·         Training and development, Knowledge and Experience makes huge impact on efficiency and effectively and customer satisfaction

·         On-boarding of the staff to placement as per his/her area of interest, capacities, his willingness to work and placement, delegation of authority etc.

·         Transfer, job enrichment, placement, promotion and other monitory benefits

·         Performance recording system, KRA and KPI, Performance review etc

·         Incentive, perks and appreciations

 

8.       Organizational Structure, authority and delegation

·         Lending & approving authority, decision making and distribution of authority

·         Verticals and reporting lines

·         TAT

·         Authority distribution (Provincial offices, Branches and divisions)