Lean Management Solve Bank Dhofar Proplems Information Technology Essay

Number of Bank’s and financial institution in the word and spicily in Oman implement such management standard of lean to achieve best business process; going through transition need more of bank’s secured. That strength comes from, speed of operation activities, reduce the cost, good product and increase customer knowledge. A leading bank in Oman called Bank Dhofar involve in many IT activities and steps to improve customer satisfaction. Report will go through the finding and gives recommendations.

Key words:

ATM – Automatic Teller Machine

SDM – Smart Deposit Machine

HSP – High Payment Systems

WISAL- One of Call Center service- customer inquires

ISO – International Organization for Standardization

IT – Information Technology

EMV – Europay / MasterCard/ Visa

1.0 Introduction

Bank Dhofar is moving forward to offer many services effectively. Excellent service may not achieve or reach unless bank successfully implements such activities to provide the quality in best way of Bank service offered. To satisfying Bank customer through providing high service it will improved the out come in productivity side and will increase

Operation value. It is hard to achieve this delivery of services because it request basic background in the organization. On the same hand Bank Dhofar need to offer fast, best

and high quality services more to their customers. It needs to be reliable when such services lunch because it needs to succeed the organization.

ISO 9001 has defined the service as leaning activities (Noor Aida Idris. 2008). Bank Dhofar is offering many kind of service to his customer and prefers the IT channel. TI services are high technology of Bank process, tool and information offered by Bank to their staff as well as customers.

Focusing on profitability is the main objective for any commercial organization such as Bank dhofer to achieve maximum profits and improve shareholder return. Globule banks specially the large of them believes that if e-banking delivery channel such as ATMs, SMS banking, internet, deposit machines (CDM) and call center if deployed in good manner will deliver to reduce the cost of operation activates which tend to enhance the bank profitability. According to Nsouli & Schaechter (2002) in 1996 a survey published by Booz-Allen & Hamiltoan addressed e-banking come out with the estimated cost of daily transitions in united state of full branch service is 1.07 US dollar per transaction, while telephone banking cost 54 cent, ATM 27 cent and internet banking 1.5 cent. Forester (2003) has come out with research cover most largest bank in Europe state that the cost of any simple transaction that branch teller made is more costly by 14 times if we comber it with online transaction cost. This research found that if customer made transaction in bank branch will cost them about 1 dollar cumbering with 60 cent if he made it through telephone call, while using the same transaction online will reduce it to 0.02 cent. Moreover improving e-channel will develop customer relationship by providing 24/7 online excess of banking services on time and whenever he need. E-banking has direct benefit and indirect. Direct benefit through reducing operation cost, overhead cost, faster transactions, less work loading, reduce customer waiting queues and allow staff more free time which may used for marketing purpose.

Here are some good examples of Bank Dhofar e-banking channels

2.0 ATM

Bank Dhofar is increasing dependent on use of information technology (IT) in carrying out business operations. The management of IT function has become very critical (Okunoye et al, 2007) due to implementation of IT based banking and ATM system as rapid use of advanced communication net work for connecting multiple location across the country. The latest of last century was the age of processing engineering (D.Dilijonas & D. Zavrid, 2008). The growing dependence on technology for managing business also exposes the organization to substantial IT security risks.

2.1 Before ATM

ATM is net work Technology offer high speed (T.Pham, 1998). Before ATM invented all commercial Banks and spicily Bank Dhofar were facing allot of difficulty those problems brought a headache to all Bank staff spicily cashier when salaries has been credited in customers accounts a long queue of customer stretching in front of cashier window waiting for their salaries and they feel uncomfortable with Bank services. Also cahier in trouble he/ she should work faster than he could which made him makes mistakes, this mistakes either shortages or access, it need a lot of time to discover it and some time cashier pay that deference. Some time customer need to know their account balance, have statement or small inquire about their account situation they should reach the Bank or any branches. In the same time if customer needs an urgent liquidity when Bank close, there is no way to have it and this problem become bigger if the next day is holyday, which may make a big loss to that customer.

But after ATM is coming up every thing has change to good a lot of problems disappear and customer served will, cost reduced, quality of service improved and money reachable for 24 hours / 7 days a week only it need to insert your ATM cards.

2.2 Objectives

The ATMs and SDMs play an important role in the Bank’s retail and corporate banking strategy by:

Providing a 24 – hours / 365 days a year (S.Yoshizawa & J.Makiwo, 2001) automate service comprising cash deposits & withdrawal, cheque deposits, utility bill payment, credit card payment, transfer of funds, mini statement, cheque request, etc.

Reliving pressure at the cash counters and ensuring that all transitions are processed online, real – time so no further back – end processing is required.

Reducing the risk of forged currency notes being deposited, since SDMs are programmed to detect counterfeit notes.

Enabling the Bank to protect both its retail and corporate customer base.

Offering customer the convenience of choice of locations from which they can carry out their basic banking activities.

Displaying to the public a progressive image of the Bank.

Although set up primarily to provide a vital customer service, cost effectiveness of ATMs and SDMs improves progressively in proportion to their utilization.

The aim must therefore be:

To make every personal accountholder a debit cardholder and,

To direct all corporate customer to the CDMs for their cash / cheque deposit.

2.3 Challenges

One of the most challenges that effect ATMs as will as CDMs is security. The global problem of ATMs / CDMs fraud is constantly evolving word wide, while the industry is trying to battle in all fronts. Fraudsters have been innovative and evolve new techniques starting from a simple “card trapping”, “cash swap” to sophisticated techniques like “skimming”, “card trapping”, cash tapping” etc. and brute force attacks. Fraudsters have been moving to markets which are considered “less non-EMV or non-CHIP markets. The card associations, ATM Vendors, financial institution all have been working together to combat this fraud.

By taking a few measures Bank Dhofar could do a bit in combating this menace and improve customer confidence in the popular ATMs / CDMs channel.

3.0 HPS Power Card

3.1 Introduction

One of the main things that Bank Dhofar is trying to achieve is improving the existing product and this we can find it clear when Bank Dhofar introduce the Power Card. Power Card is an ATM Switch and Debit Management System supplied by High Tech Payment Systems (HPS), Morocco. It will replace the existing legacy system call Sparrow from CR2. Power CARD can be accessed using Internet Explorer. It will be initially accessible Card Center, Operation Department, Call Centre, Retail Banking, IT and branches.

3.2 What are the primary objectives of this project and implementation?

Improving customer service at Card / Call Center, improved operations and MIS such as SMS alerts for ATM customers, new services like EMV acquiring, EMV issuing, Balance Enquiry on international ATMs outside GCC, enabling of debit cards on Internet, security and compliance with International Payment Network mandates.

The new system is already certified for EMV (Europay / MasterCard/Visa) which would enable Bank Dhofar to issue CHIP based debit card and also accept CHIP based international VISA Card on our ATMs.

A Debit / Credit Cared is a bank card used to make electronic withdrawal of cash through Automated Teller Machines (ATM) or pay for goods and services at point-of – sales terminal or on the world- Wide web (internet) or obtain cash advances from ATM, up to- agreed credit limits.

4.0 New Call Center Service – “WISAL”

The field of relation design has increased its concentrate to know how systems of technology-based products are implemented (Forlizzi, J. 2007). Life become fast and Bank Dhofar focus on that by offer new service that helps his customers to reach the Bank and finish his need on faster way, so they introduce new service all Wisal. “Wisal” is a toll free service offered by Bank Dhofar Call Center it allows the customer to contact Call Center using special identification number to request some services…

It is a latest offering comes in line with the bank’s strategy to move closer to its clients and provide convenient, fast and customer friendly services.

“WISAL” is backed by state of the technology to enable it to become an efficient and effective touch point and deliver channel. The staffs of “WISAL” are highly trained to deliver the kind of quality services that hopefully will help bank to gain more customers and retain existing ones.

“WISAL” Services will include:

General Inquiries

Loan Inquiries

Chaque Book Request

Product & Service Information

Credit Card Balance & Other Related Inquiries

Complaint Handling & Resolution

Money Transfer

ATM Transaction Inquires

And more…..

5.0 Internet Banking

Bank Dhofar is one of a leading banks in Oman that introduce Internet banking to reduce the transaction cost and improve customers satisfaction, where there is combined relationship between customer and internet banking affecting the bank achievement. Bank Dhofar and other banks in Oman introduce internet banking to fulfill customers different requests specially when technology allow that aiming to enhance customer satisfaction, attracting those new customers and bring back existing ones. Majority of world banks and local especially in Oman like bank Dhofar are provide their customers by variety internet free service in order to promote the customer to transfer to electronic method rather than using the traditional one.

In 2002 a research on Internet bankers shone that 37% of online banking services directive to 18 % of European peoples. Research also expected the number will reach the double bringing new generation of self services while such research was absent in my country.

Bank Dhofar online services have design to satisfy customers by offering Varity of services like:-

Paying utility bills

Order cheque book

Have account statement

Check the balance account

Check payment and receiving

See the bank product

Recently, bank dhofar tend to educate his customers by deploying his staff across Oman to satisfy them and meet bank expectation.

6.0 Self Service Module of Helps Desk

The bank has installed IT Help Desk Software in the IT division (ITD) to track and control the software, ATM, Network and hardware related support request received by IT Department from branches and head office departments. This will further improve the quality of service from ITD to IT users in the bank.

The IT Help Desk system is an internal software application used to track all support calls / request received by ITD in a centralized, searchable database for easy reference by IT staff, enabling quick resolution to issues and simplifying the tracking of issues.

The staff branches and head office will be able to input their support call / requests using Web based system. As the request is input by the user staff, the system generate a work order history for future reference.

7.0 Finding

Many financial institution may facing some technical problems in designing new systems or product that enhance operation activities but Bank Dhofar has achieve good performance in introducing new IT technology to serve his customer very will, offer new and chosen product and concentrate on IT Technology aiming to provide better service, reduce the cost, improve productivities and satisfied the customers.

As a branch manager with 14 years in banking sector I observed that e-channel especially like ATM has played most important role to improved customer satisfaction, display e-banking knowledge and develop customer attitude from banking services. Recently customer has improved his knowledge about bank product and services through understanding the important of e-channel and how it make easy of banking transaction to save customer time meanwhile, bank dhofar has deployed ATM and other e-channel in Oman to satisfied itself through reducing bank expenses on transaction and satisfied his customer by reduce waiting time in branches.

8.0 Conclusion

Report has focused on Bank Dhofar experience in implementing the successful of one operation management aspect “Lean Management” and how it solve many operational problem which lead to enhance the Bank productivity and achieve customer satisfactions.

9.0 Recommendation

One of good thing that Bank Dhofar planned to achieve is introduce new IT technology to maximize the benefits and meet new business challenges, this true but during this investigation I find that Bank Dhofar still need to focus on the technology of this century Like using internet banking to provide faster communication that enhances Bank success. Because it’s the latest technology that occupied the country last deceit and number of using internet is expanded daily.