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System
Author
Sohailuddin ALAVI
Contents
1. Executive Summary ................................................................................................. 1
Section Two: Role of your branch in the overall management of the Bank value .......... 2
Section Three: Corporate Directions and the Branch mission statement ....................... 3
Section 4: Branch SWOT and Competition Analysis ...................................................... 4
Section 5: Branch Performance Goals, Objectives and Indicators.................................. 6
N.B. Refer to appendix for reviewing assumptions and detailed workingSection Six:
Action Plan.................................................................................................................. 8
Section Six: Action Plan ............................................................................................... 9
Building Customer Focus .................................................................................................... 9
Corporate Customers ............................................................................................................... 9
Retail Customers .................................................................................................................... 10
Walk-in Customers ................................................................................................................. 10
Corporate Customers ............................................................................................................. 11
Retail Customers .................................................................................................................... 11
Walk-in Customers ................................................................................................................. 11
Competitive Analysis .............................................................................................................. 12
Marketing Strategy (Mix) ....................................................................................................... 13
Enabling Objectives ................................................................................................................ 13
Organization and Human Resources Development .............................................................14
Organization Structure ........................................................................................................... 14
Position wise Performance Management Plan ...................................................................... 15
Employee Rotation, Training, and Development Plan ........................................................... 16
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Section Two: Role of your branch in the overall management of the Bank value
As Strategic Business Link between the bank and its constituents define your branchs
role in the overall management of Banks Value:
To describe the role of your branch in the overall value management of the bank. Begin
by answering the following question:
What is the role of your branch in the overall profit function of the bank? For instance a
typical branch ideally operates as a strategic link for:
- Quality customer prospecting and retention
- Mobilizing quality deposits
- Selling quality credits
- Selling other financial services
- Building and sustaining bank image
It is not necessary that your branch can perform all activities in a profitable manner.
Therefore you should only focus on what your branch can do in a profitable manner.
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
The focus of SWOT analysis is on unraveling the opportunities and challenges (threats)
in the permeable external environment; and, strengths and opportunities in of the
organization. The analysis is essentially made with reference to the Mission Statement.
Meaning, external factors are neither opportunities nor threats unless these are analyzed
in the context of accomplishing the mission statement and so are internal characteristics
of the organization.
Strength refers to an internal characteristic that enables the organization to realize its
goals in an effective and efficient manner, while weakness is the characteristic that is
likely to hinder effective and efficient accomplishment of goals. For instance, high
deposit base could be strength for the branch (bank) if there is sufficient demand for
loans from good borrowers. However, it can turn into weakness if the weighted average
cost of the deposits is higher than what the branch could earn on loans.
External factors, which are likely to increase business potentials for the branch, are
termed as opportunities. For instance; credit culture, saving habits, etc. However;
existence of too many branches in a close proximity, bank avert attitudes, etc. are likely
to posse significant challenges (threat) for the branch in realizing its goals.
Please identify Strengths; Weaknesses; Opportunities; and, Threats faced by your
branch
Strengths
Weaknesses
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Opportunities
Challenges (Threats)
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
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Business Objectives:
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To increase deposits by
To increase loans by
To increase other business by
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Qualitative Objectives:
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(Check [X] the appropriate objective(s). Use extra spaces to include more objectives)
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Type of Deposit
Savings Account
Short Term Deposits
Long Term Deposits
Current Deposits
Total
Percentage Share
30%
20%
20%
30%
100%
Cost
5%
8%
10%
Nil
WAC
1.5%
1.6%
2.0%
Nil
5.1%*
* The WAC will change if the % share of each category of deposit is altered.
%+
Cost
basis points
WAC
Type of Loan
Working Capital Running Finance
Working Capital Term Finance
Project Loans
Consumer Finance
Total
Percentage Share
30%
30%%
20%
20%
100%
Rate
20%
15%
16%
Nil
WAC
6.0%
4.5%
1.2%
Nil
11.7%*
* The WAC will change if the % share of each category of deposit is altered.
%+
Rate
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
basis
WAC
Documentary Credits
Guarantees
Inland Remittances
Exchange Business
Safe Deposit Lockers
Miscellaneous Services, such as Utility
Bills
Total
60,000.00
30,000.00
10,000.00
10,000.00
5000.00
5000.00
120,000.00
Type of Service
50%
25%
8.33%
8.33%
4.16%
4.16%
Project Revenue
Percentag
e
Documentary Credits
Guarantees
Inland Remittances
Exchange Business
Safe Deposit Lockers
Miscellaneous Services, such as Utility
Bills
Total
Others:
Key Areas
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Expected impact/outcome
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Each customer (or group of customers) has unique needs and expectations. A branch is
faced with the challenge of satisfying different customer groups, simultaneously. In
order to do this, it is undoubtedly essential for the branch to better understand their
varying needs and expectation and to deal with them accordingly.
This entails a systematic planning process. It consists of building customer focus;
assessing branchs competitive position and determining appropriate marketing mix.
Building Customer Focus
Example
Customer
Segment(s)
Entrepreneur
Financial Status /
Preferences
Affluent;
Comfortable Life,
Convenience,
Respect.
Financial Needs
Expectations
Business Loans
Intl Credit Card
Funds Management
Priority Banking
Pre-approved Status
Relationship
transactions with your branch on rather continued basis. These may be your existing
customers; potential customers; and, past customers.
Customer
Financial Status /
Segment(s)
Preferences
Corporate Customers
Big Entrepreneurs
Financial Needs
SMEs
Micro Entrepreneurs
Govt./Public Offices
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Expectations
Retail Customers Customers who bank with your branch for their personal financial
requirements. They maintain deposit accounts, borrow for their personal requirements,
or avail of other financial services again in their personal context.
Customer
Segment(s)
Retail Customers
Professionals / Sr.
Executives
Financial Status /
Preferences
Financial Needs
Expectations
Employed
Individuals
House Wives
Students
Retired / Senior
Citizens
Walk-in Customers Customers who happen to visit your branch once in a blue moon
Financial Status /
Preferences
Financial Needs
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Expectations
Price Sensitivity
% Total
Revenue
SMEs
Micro Entrepreneurs
Govt./Public Offices
Retail Customers
Professionals / Sr.
Executives
Employed
Individuals
House Wives
Students
Retired / Senior
Citizens
Walk-in Customers
Core Services
Non Core Services
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Competitive Analysis
Here the Branchs competitive power is measured verses other bank branches operating
in the permeable vicinity. This analysis together with customers profile helps to identify
ideal branch positioning; the areas requiring attention; and, also in formulating the
enabling objectives.
Branch
Ranking
(a)
Average Competitor
Ranking
(b)
Relative
Position
(a b)
Corporate Customers
Brand Image
Financial Products & Services
Service Quality
Customer Loyalty
Retail Customers
Brand Image
Financial Products & Services
Service Quality
Customer Loyalty
Walk-in Customers
Brand Image
Financial Products & Services
Service Quality
Customer Loyalty
Relative Ranking Scale: 01 Inferior 05 Average 10 Superior.
Conclusion:
Relative Advantages
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Relative Disadvantages
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Overall Branch Positioning
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Living the branchs business plan can never become possible without the development of
organization and human resources in harmony with the mission statement. Organization
development refers to defining (or redefining) the organizational structure, processes,
and interdependencies within the branch. Human resources development is twin
concept. It essentially entails empowerment setting shared direction, building
commitment, up-scaling competencies and defining roles and responsibilities in harmony
with the mission statement.
Organization Development Plan
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
15
Performance
Indicators
Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Goals / Targets
Training
Recommended
Competence = Morale and Motivation; Work skills and knowledge; Attitude; Moral and Emotional
Development; and, Soft skills.
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
External Contingencies
Internal Contingencies
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Appendix I
Use this page to list your assumptions underlying the business projections
Assumptions:
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012
Appendix II
Projections Worksheet
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Afghanistan Institute of Banking and Finance (Author Sohailuddin ALAVI) March 2012