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 offered and 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 services and policies that enable employees to deliver results to customers.
4.0 Dimensions of Service Quality:

Reliability The ability to perform the promised services accurately and dependably. 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 and communication materials. Empathy The caring, individualized attention provided to the customer.

5.0 Quality Management Model of a Bank Branch:

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 to operations and also for the business growth at branch level. He should present himself 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 Model Features: The Officer In-charge of Account Opening Department is responsible of opening new 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.

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 and also for budgetary aspects. He should be able to: base his work on facts which means having more realistic approach towards 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 processing customers 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 and payments. 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 and encashment 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. He should 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

update the departmental processes and record keeping according to latest international industrial practices.

15.0 Security Arrangements: Security aspects play a pivotal role in internal control system in banks. It's preventive measure to keep the system going on smoothly much more in the desired 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 to be maintained. - install switches at convenient locations (at cabins of Manager, Cashier, Banking areas). - have a battery-run alarm system as a standby in the event of power failure. (b) Entry of public in work areas (c) Provision of trained armed guards - cash counters to be located as far away as possible from the main entrace.

- ensure rotation of their duties, placement of plain clothes security personnel at strategic points. - ensure that security guards are not entrusted with a routine non-security items of work

(d) Automatic lock and door closure in Cashier's cabin. (e) Collapsible doors / shutters at the main entrance and grill gates to strong rooms. Layout of new branch premises in consultation with Police Department.

(f)

(g)

Training of staff members on security measures.

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

15.0 Special things to be considered: i. ii. iii. iv. Green Banking; Welfare of the community; Environment friendly activities; Corporate Social Responsibilities etc.

16.0 Basic Indicators for Operational and Business Performance Evaluation: 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 Investment 14. 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

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

Manpower planning Placement Inter personal relation

Premises Work Environment Safety & Security

Branch Manager

Internal Control, Supervision and Regulatory Compliance

OBJECTIVE

Business Budgeting Casting of profit

Gain Banks strength Business Network Social Network Access & drawing support of intellectuals & elites

Customers satisfaction & pleasure

Business achievement & profitability

Protect asset quality and ensure liquidity

Employees job satisfaction and loyalty/dedicat ion

Professional Development of Employees & Growing leadership and team spirit

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