Bank assets including labor represent the inputs and liabilities represent the

Bank assets including labor represent the inputs and

This preview shows page 29 - 32 out of 62 pages.

bank's assets, liabilities. Bank assets including labor represent the inputs, and liabilities represent the outputs. Production approach: which considers the bank as normal company or producer, and hence the inputs are the physical elements such as labor and capital and all other assets and liabilities are outputs, this approach argued that all deposits should be treated as output since they are produced by capital and labor. In the research, the first approach will be adopted (intermediate approach) because from the research point of view, it is more representative of research objectives and it measures the efficiency of operation rather than capital investment efficiency. Research variables (5 variables) Inputs: 1. Labor represented by the number of employees (LAB) 2. Fixed Assets (FA) 3. Total Deposits (TA) …. Including demand, saving and time deposits Outputs: 1. Direct Credit Facilitation (DCF) ….including loans 2. Other Earning Assets (OEA) ……. mainly investments in stocks 29
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Chapter 4 Further Development Bank customers have more choices in how, when and where they can to do their banking today. Changing bank is easy and the engagement with one specific bank is not life-long anymore. Simply put, customers are prepared to walk away from their bank if their expectations are not met. A Cap Gemini* study on global retail banking indicates that only 50% customers will remain with their primary bank the next six months. Further, only 15% have trust and confidence in the banking industry. After all, why should I settle for mediocre service? I have more options today than ever before. Let’s take a closer look at the challenges facing retail banks: 1. Improving the customer experience 2. Increasing sales 3. Reducing costs/improving efficiency 4. Increasing staff satisfaction 30
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5. Driving business improvements through data and analytics 1. IMPROVING THE CUSTOMER EXPERIENCE Customers select a bank or leave their current one because of the service quality at engagement points. Simply put, the customer experience and service delivery are more important than ever. At the heart of the customer experience is the quality of service provided. Sometime I feel that banks seem to forget that they actually still have customers visiting their branch. Figure: A seamless customer journey that integrates the virtual and physical world. Why not welcome customers with a meet and greet solution ? Such a solution will increase service quality by better matching customers and staff, based on the customer’s need and staff competence. Such a solution will increase service quality by better matching customers and staff, based on the customer’s need and staff competence. In addition, advisors are in a stronger position to meet the need since they have access to the customer’s service history and can prepare accordingly.
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