Banking Management System
Bnking Industry is not making money and in recent times a number of International Banks have been coming down. Other banks are being taken over, yet all banks have a duty to be profitable to their stakeholders. So does one do? There are 5 new ways that have been discovered.
Only a bank consultant with experience can determine the ways to improve service and reduce operating expenses. Though many ways are possible and certainly are beyond 5 in number, it is important to look at the most important ones.
Five Important Aspects
The first aspect of Banking Management System is of Functional Design. Some banks still operate in the traditional or Frederick Taylor style which separate people in different groups according to their functions. This creates a front and back office and the separation stops people shifting from one function to another. This leads to wasteful and highly expensive use of manpower. It also stops flow of technology from one part of the bank to another.
Another important part of Banking Management System is to seperate actual working persons from the decisions that are taken in their department.Most bankers start off at a low job in their career, but in those jobs they meet people and talk to them. This gives them a chance to understand reactions of people to change. The changes in attitude may be different from place to place and the future leader may get only the feelings of a city or town. Now when banks are spreading all over the country, this impression may also lead them to decisions that are not valid all over. Yet they take their own decision and are not guided by history or suppliers.
This experience also leads to another important part of a Banking Management System, that is to understand demands or expectations of clients. When you start designing changes at a bank, the first step should be to consult the persons coming into daily touch with customers. These come at different levels - tellers, loan officers, dealers of bad loans, etc. They know what is important to customers and what will make them happy.
Yet their is another important decision that mangers now have to take and that concerns the total Banking Management System. This involves changes compelled due to changes in technology. Many persons now operate their accounts only through Internet and this was not learnt by the old-timers. They also do not know much about computers. Yet they have to be the leaders in innovation and for that purpose, they must learn about changes. For this purpose, they may have to attend classes outside the bank. This is the requirement for innovation.
The fifth and final point that managers of Banking Management Systems should know is that they cannot become leaders by copying the practices of organizations ahead of them. A great example of this is present in every individual industry. In simple layman’s terms these come from copying and following standards of leaders. No organization can directly try imitate leaders through this process. Leaders also have a great reputation and many customers come to them as they want more security. This can only change through a long period of effort.
Tips and comments
The most important function of any Banking Management is system is to to make the bank more profitable. This requires better service at a lower cost. In some cases, there have even been more profits through better management, but those efforts do not include any of the five discussed.