EVALUATION OF ALTERNATIVES
IT Upgrade and Transformation
Upgrade of the Bank‟s software, Flexcube,‟ from version 6.2 to version 12.0, which will be completed in Q2 2014
Oracle FLEXCUBE is a business application software line used for financial services such as retail, consumer, corporate, investment and asset management, and investor servicing.
Strengths:
FLEXCUBE enables banks to standardize, transform and optimize their business processes. Banks can use FLEXCUBE to simplify and streamline processes, track and administer complex multi-step transactions, efficiently distribute workload and improve customer service by using predefined custom processes for different segments of customers.
Banks can achieve competitive differentiation by developing innovative business offerings and to fine tune their processes based on insight and measurement. The release of FLEXCUBE enables banks to and accomplish this holistically.
FLEXCUBE provides users with dashboards to measure process performance and identify bottlenecks for process improvement. The product serves Governance and Risk & Compliance frameworks allowing institutions to be compliant with changing regulations, monitor fraud and manage their risks .
Anywhere Anytime Anyhow banking” – service across all branches and delivery channels
Weaknesses:
longer time for bank personnel to get accustomed to the new processes and applications
The implementation and upgrades of flexcube can also be costly since the bank will be obliged to hire professionals from Oracle.
Automation of operational processes to support Information and Communication Technology (ICT) Transformation Project
Strengths
By the automation of operational processes, the operating costs of the bank would be minimized as fewer people would be employed.
Quality Service would be provided to customers at a cheaper price
The Operational process of the bank would be faster and more accurate
There would be a correlation between the day to day operating activities of the bank and the information and communication technology system set up by the bank.
Weaknesses:
The initial cost of Automating the operational process of the bank might be exorbitant
It would promote laziness among existing bank workers as their jobs would be taken up by the automation process.
Lack of motivation may exist among workers, because they cannot be recognized and rewarded for their excellent service.
Cost Management
Ensure that the maturities of the assets on which interest is earned and the maturities of the liabilities on which interest is paid are matched.
Strengths
interest rate risk is minimized
Weaknesses
Depositors may opt to withdraw part or all of their money during this period
Opt for Long term rates on both interest income and interest expenses, as long-term rates tend to be higher than those predicted by expected future short-term rates. This phenomenon is referred to as liquidity preference theory
Strengths
Depositors are fairly compensated
It encourages better saving habits by depositors
Weaknesses
The burden of the interest to be paid back maybe too much for the borrowers
Avoid Arbitrary Cuts
Strengths
Would motivate staff to perform exceptionally well with the knowledge that their job is secure
Situations as such promote value for money spending
Continued value-driven moves justified by their impact on shareholder return
Weaknesses
Management might be deceived to thinking that unnecessary costs add value to the organization
Costs to be incurred or ceased would be at the sole discretion of the management
Industrialize Operations
Strengths
lower-cost of operations
off-shore locations.
Weaknesses
Environmental uncertainty
Cultural and language barriers between the companies
Actively seeking and granting of loans to perceived performing loan borrowers
Strengths
Increased revenue on interest income
Diversified portfolio of investments
Weaknesses
Non payment of interest and principal as at when due
Loans could become non performing and then lost.
Negotiate the C.O.T (Cost of Transfer) with high net worth businesses that perform multiple transactions so that they do not move their monies to other banks.
Strengths
Promotes positive customer relationship
Attracts potential customers to bank with them
Net fees and commissions would increase with an increase in transactions
Weaknesses
It might flop in the volume of overall transactions and then the bank looses much money by being generous
Customers would be encouraged to patronize the bank more in the opening / establishment of letters of credit and Forex if the service time is reduced and remittances are done more accurately and reliably.
Strength
Improves existing customer relationship
Leads to customer satisfaction
Net fees and commissions would increase with an increase in transactions
Weaknesses
It might flop in the volume of overall transactions and then the bank looses much money by being generous
NB: This was my group project in my Business policy & Strategic Management course. Shout out to the awesome group 1 members who made it a possibility.
Hi, why stop at Skye bank? Check out Mcdonalds case study analysis here: Mcdonalds case study analysis or Pepsi co’s market penetration strategy
Recommended Readings
Recommended Readings
Marc Cosentino., Case In Point: Complete Case Interview Preparation, 8th Edition
Micheal Shearn., The Investment Checklist: The Art of In-Depth Research
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