OPERATIONS AND SUPPLY CHAIN ISSUES
OPERATIONS AND SUPPLY CHAIN ISSUES WITH LOAN PROCESSING IN A RETAIL BANK (BANK OF AFRICA GHANA)
Overview of Operations & Organizational Strategy of Bank of Africa Ghana
There has been an evolvement of the financial sector in Ghana. Banks are the major financial intermediaries in the country, and as such they endeavor to mobilize their customer’s savings to allocate various productive activities to benefit all their stakeholders, the investors and the nation’s economy as a whole. The banking system through the Bank of Ghana has enabled saving capabilities through low costs of transactions, which has helped streamline the industry. The bank has brought together borrowers and suppliers who transact their businesses at pocket-friendly costs, and this has been a major organizational strategy to increase their presence and competitive advantage over their main rivals. Indeed, the system has been efficiently channeling different financial resources and capabilities to various resources and has become an important tool that is used for growth and development.
The bank has also managed to bring about various reforms, and this strategy has helped them to ensure continuous improvements, higher productivity, and efficiency in their operations. The new reforms have also helped them to regulate the banking system in Ghana because of their diverse patronage to their various resources. Over the past decade, the bank was able to come up with different new policies which were seen as closing the gap between their customers, suppliers and investors. Notable among the new policies that were implemented in the bank includes the new idea of liberalization and other reforms which were spearheaded by the World Bank and the International Monetary Fund. The new strategies brought about the idea of implementing the Economic Recovery Programme in the year 1993, with the main objective of liberalizing the economy from divergent controls to ensure an increase in their productivity.
The bank also introduced the Financial Sector Adjustment Programme, which actively addressed various weaknesses that existed in their systems, and this enabled a full restructuring of their operations to maintain high standards while providing different services to their esteemed customers. Further, the bank has maintained that their customers are their biggest assets and has always ensured that they receive better services through their well-trained staff. The commercial bank also opened up their operations for other foreign banks for purposes of investing and increasing their operations in other regions apart from Ghana.
The new policies were able to increase their revenue collection with skyrocketing profits in their first year of operation leading to better dividends to their shareholders. In addition, the bank ensured an increase in their paid-up capital, a move that was seen as targeting more clients in a region where the banking sector was getting more trust to operate on other nonfinancial activities to their clients. All the new policies which were part of their strategies allowed for competition and improved service delivery to all their clients in the long run.
The current deregulated market in Ghana has made the banking sector to have increased competitions which are important for their survival and branding. The increased nature of competition in the industry has led to high-quality products, efficient services and a high degree of innovations thorough the use of technology. The commercial bank has become well known for their services which allow individuals to make transactions from other places through innovations. This saves customers time and money which could be used to travel to their branches hence reducing their costs. As a strategy, the bank has also ensured that the members in the community benefit from their operations though corporate social responsibility, which is aimed at helping solve different problems that affect the majority. Funding has also been done to various projects which are now an important facet to most residents, and this has made them increase their brand recognition and profits.
In this regard, the Bank of Ghana has become a household item in the region and has cut most of their costs to make sure that even those from the villages benefit from their various offering including loans. Their strategies have helped them to incur various costs, but also, competitively compete in an industry that is dynamic with increased risks. It is against the background of competitive advantage that the bank has been able to survive various economic shocks and competition from other financial institutions which offer similar services.
The Bank of Africa Ghana has various operations that have allowed them to maintain their competition for longer periods. The bank’s retail banking system is one that is familiar with all their clients, which helps their clients to deposit, withdraw and save money at their disposal. The banks also provide loan facilities that allow for business expansion and other developments that have been started by their customers. The bank also offers mortgage services where individuals purchase and own their own houses while paying their banks in installments over a period.
Their retail banking system operates on the main strategy of convenience which helps their customers to have access to the various branches and ATMs to ensure efficiency and reliability. Their account service fees and interest rates have been cut and allowed to match with the needs of different clients. This is an important strategy in their retail banking sector as it has allowed members to increase their saving capabilities leading to greater investment prospects for the bank.
The bank has also marketed their multiples services to customers and has informed their members to open more accounts to ensure increased service delivery and also benefit from the various incentives given to them through the different services that are diverse in nature. Recently, bank customers were informed to open savings accounts even if they already had checking accounts with the bank and vice versa, borrow money through their mortgage provisions, make transfers to their retirement accounts and many other provisions.
The other important operation in the Bank of Ghana is the business banking sector which is almost similar to the retail banking. The business banking section also allows loan borrowing capabilities, make deposits and also use other banking services without problems. The main difference with business baking in the Bank of Ghana is that most customers who operate business accounts often have more demands which are sophisticated in nature. Most of the customers desire the banks to assist them in paying out their payables, take over their treasury functions and also act on their receivables when they are due. Business banking in the bank of Ghana is never demanding in their infrastructure and branch networks when compared to other banking opportunities but is often competitive in their fees and rates.
Private banking is also affected in the Bank of Ghana, where wealthy members from the region are served in accordance to their set laws and regulations. Private banking allows members to dictate various terms which are often paid for by the customers in question. Most of those who are served under the private banking segment are those with more than $1 million at their disposal.
Other important services that are provided by the bank include estate planning, tax and trust operations which are normally secretive in nature. Investment banking is fully operational in the Bank of Ghana, and this was recently launched to cater for corporate clients who often desire different services like trading and securities marketing. This is done albeit on a lower scale.
Operations Competency & Competitive Advantage of the Bank
The rapid pace of innovation around the globe has made the bank to demand a high infusion of skills that are sharpening to say the least. The Bank of Ghana has endeavored to employ different skills that are technologically savvy and able to transform their aims into results. They have new blood of innovators who possess the whole knowledge that pertain to operations and technology, and these have become an important facet to their development and have also helped the bank to seize all the opportunities that come their way.
The bank has been able to ensure compliance and follows all business requirements that pertain to the banking industry. They also have managed to maintain audit of their books of accounts and reflect the same to their stakeholders for reviews. Further, the new policies that were introduced to the bank have been communicated effectively, and this has made them emerge tops in their service offering and operational efficacy.
In accordance to the statutes that define the various responsibilities of the banking sector, the bank has been able to conduct their operations risk, internal control and has fought hard to prevent various instances of fraud and misrepresentations in accordance to the laid down rules and regulations of the banking sector. The bank has also avoided issues of money laundering in their operations through the setting up of different operating and implementation procedures that are paramount to their operations and success. The operations competency has also enabled them to examine all their systems, operating procedures, and policies regarding compliance requirements.
All the employees in the bank have intellectual capabilities that allow them to run all the programs and operations in the bank to ensure their success, and be able to meet their goals in the long run. The new members have also been tested and found to be innovative, a facet that is important to create new opportunities that will see the banks succeed in their service offering. Also, the resilience nature of the workers in the bank has enabled them to work under tight schedules since the industry often consists and environment that is hard to adapt.
The bank has gained competitive advantage over its rivals by ensuring that they have more customers through rewards and incentives. The bank has also made provision for many services and quality products that are secure and timely to their members, for example, loans have been offered to their long standing members at a lower rate with minimal requirements, and these are those who have standing inflows of cash in their various accounts. This has made most people from the region to desire their services hence increasing their clientele base in the long run.
The bank has also ensured strategic planning capabilities and increased research into their competitor offerings and other members from the industry internationally. This has made them increase their brand image leading to increased profits and leverage. Cooperate governance and transparency are clearly affected in the bank, and their impact has been seen through various awards which have been provided for their long-standing and transparent nature compared to their rivals and competitors.
Loan Process Analysis of Bank of Africa Ghana
The bank allows individuals, businesses, and the government to get loan for financing various activates that are of interest to them. The loan processing capability is often easy and set aside for that client who is credit worthy. The clients need to build their credit over time, and this will help them get enough financing or loans due to the relationship they have created with the bank. Borrowers are also expected to collect and deliver various documents that are necessary to get the loan facilities they require. In accordance to the regulations at the bank, all the people who need loans have to have their bank statements which are recent or income capabilities since there are those members who are not employed but belong to the business oriented class. The bank can also ask for various tax returns for a certain period, and this only applies to businesses which are set to provide different services to the people.
After applying for the loan, through the use of the bank’s form loan, they are required to print out all their information and attach their national identity cards for proof. The bank then takes their time to verify the documents and also prequalify the members on how much they can afford to ensure easy repayments for the loans offered.
A credit officer in the bank is often mandated to go through the provided information and check on the collateral given or the income level of the borrower in question. This officer then determines whether the person is valid for a loan and the information is passed to the highest organ in the bank, which form part of the decision-making platform to pass the loan request to the borrower, attaching them with different regulations as to how much will be paid in every installment.
Managing data of outflows and inflows in the bank has been possible through their capacity management capability. The bank has employed relevant employees who have skills that pertain to information technology to ensure that all data of utilization is kept safe and used when need by the decision makers. The idea of utilization has helped the bank to make use of different ICT capabilities to connect their transactions remotely, and these enable clients to make transactions even when they are not near the branches. The information and processes are always real time, and this has made them increase their efficiency and competitive advantage.
Issues associated with Capacity Management
Information technology is actively managed in the bank, and this is done by relevant members who have the skills that are required. The employees follow after different regulations from the industry and the top management to know which areas of information technology should be emphasized for purposes of competitive advantage. All the information that is stored in the bank’s database is accurately stored and managed to provide succinct information to the decision makers when there is a need.
The bank also works towards maintaining their liquidity levels to meet their collateral and cash needs without having to make losses while in operation. Through their capacity management, the Bank has endeavored to have enough liquidity to meet all their unexpected and expected needs without affecting their operations. The information that pertains to liquidity and other important operations in the bank are well maintained under the capacity management tool of operation.
Loan Process Performance Analysis
The processing of loans at the bank has been effective, and deserving members have received their requested amounts deposited in their accounts or given out through another medium in accordance to their requirements. The loan processes have had hitches in the past where members were found to provide false or stale information that could not locate their current operations significantly. The various levels of processing the loans often work towards mitigating various risks which might make them lose on large sums of money and other instances of fraud.
Process variability with loan requests and how the bank manages these variabilities
There are always various instabilities with loans that are often random in the bank. The management has always endeavored to reduce the variabilities through the use of different officers who are given the mandate of counterchecking the information provided by the borrowers, and also making a follow-up on their past ratings with regard to payments and default. When loans are requested in the bank, the credit officer makes sure that issues that pertain to default are inherent and unlikely to happen while counter checking other risks that might occur on the way.
The bank has policies and regulations, which they usually use as a benchmarking tool to give out loans to their borrowers. Members must have certain amounts of money in their accounts or have different collaterals that can fully act as security for their loans. There are however many other exceptions to such rules, and this only applies after critical considerations are made on the borrowers.
The bullwhip effect in the bank has been limited to avoid various inefficiencies that often occur through the supply chain management system. The bank often ensures a constant flow of inventory in accordance to past data and demand and putting into consideration the overall situation at the market. The bank has fully come to terms with the idea that their customer provision is mostly consistent at their retail level, and this has made them make various alignments and policies that are meant to safeguard those that are in this bracket.
The levels of inventory management in the bank concerns different provisions like asset management, valuation of their inventory, physical inventory, replenishing of lead time, inventory forecasting, the carrying costs of the inventory and quality management. The bank balances their requirements leads to levels that are optimal to ensure efficiency. This is often a process that is ongoing because the bank often needs to react to their immediate environment and shift to other operations due to the diversified nature of the industry. The bank often ensures an assortment of inventory that is proper while handling, ordering and shipping other forms of inventory for their use.
The Bank of Ghana needs to serve their customers diligently and often provide incentives that allow for new members for purposes of competitive advantage. The processes of getting loans and other facilities from the bank should be made simple and easy for members so that they can make use of them without having to struggle. The bank has been successful in their retail banking operations because of their investment capabilities that have been done in all their branches and other points of contacts like tellers and ATMs. The processes should, however, be quick and operational at times to be able to provide clients with the services that are required.