Branch AS-IS Process Review

Major Process Process Pain Points Review Objective of Sign for process Process
Process analysis improvement
Improvement Selection
Criteria
Strategic Annual  Lack of data driven  Planning/budgeting  Improve  High variance  High
and Planning targets is top down with planning between plan volume and
Planning and  Reactive planning minimal accuracy and and frequency
Processes Budgeting  Minimal branch district/branch ownership performance.  Impact
level participation participation  Enhance on strategic
 Improvement seen alignment goals
but lacks predictive between goals  Declining
tools and market performance
realities for metrics
sustainable
growth
Implementa Implementi Unrealistic targets &  Sales execution  Streamline  Declining  High volume
tion of ng Sales lack of clear sales lacks data-driven sales planning mobilization and
Strategy/tac action plan tracking follow up and field & monitoring performance frequency
tics to (Sales support  Improve target  Increasing  High process
 Campaigns achievability customer variation
achieve Process)
moderately and complaints
target/plan structured but accountability
(Financial inconsistence
and Non- performance review
financial)
Resource  High target  Branch managers  Achieve  Declining  High volume
Mobilizatio Shortage of staff tied to internal work, sustainable and performance and
n  Limited customer limiting external balanced  Operational frequency
base expansion engagement deposit growth. inefficiencies  High
(over depend on  Targets often set  Rising staff customer
some customers) without marker- complaints. touch
 Profitability based evidence
pressure- declining  Pressure affects
margins and rising quality
non-performing
 loans (NPLs).
 Poor follow-up with
high value
customers.
Customer Customer  Repeated  There is well Ensure faster Process  Prone to
Acquisition Onboardin account rejections, developed policy but onboarding & inefficiency, lack of
and g and KYC incomplete data, & poor compliance at data integrity. technology gap compliance
Onboarding delayed verification. branch level  Limited data
Improve (manual), high
 Poor coordination integration
Processes compliance & rejection rate.
between branch,
district, and KYC customer
center. satisfaction.

Core Cash Over/under cash  The process is  Automate and  Inefficiency,  High
Banking Manageme holdings and delayed regularly undertaken optimize cash outdated customer
Operations nt reporting but performance is flow and monitoring touch
not as expected forecasting tools  Increasing
 There were still idle  Improve  Increased cash customer
fund in various operational idle cost churn
branches which can efficiency
support in managing
the bank liquidity,
due to this the bank
is forced to access
fund from the inter-
bank money market
Account Manual errors,  Process lacks  Improve  Redundant  High volume
Transaction incomplete automation and efficiency manual steps; and
/ documentation consistent through  rising error frequency
Operations automation 
verification rates;
and clarity in
 Structured roles.  slow
monitoring exists but transaction
forecasting tools times.
limited
Credit & Delayed approval,  Manual credit Accelerate  Process  High
Lending inconsistent analysis approval process. Inefficiencies customer
appraisal  Unclear escalation Strengthen risk-  Customer touches
automation dissatisfaction  Process
based credit
 Limited capability inefficiency
in undertaking decisions for both
workflow redesign bank and
properly customers.

Digital  Limited Enhance system  Technology  High

Financial promotion and weak reliability and gap, customer customer
Services Low usage due to customer education. customer churn, low touch
awareness gaps and  High
 adoption. Promote usage metrics
technical issues. variation,
digital inclusion. dissatisfacti
on
Digital Connectivity issues  Poor campaign  Strengthen  Low digital  High
Banking and lack of branch- alignment and branch driven activation ratio resource
level digital sales training gaps. digital  Longer consumptio
effort.  Digital channels in activation response time ns
Internation Customer confusion place but low  Maintain  Rising cost
al Banking on service process; reliability and consistency/  Limited
Services delayed FX awareness standardizatio digital
approvals.  Weak staff n integration
knowledge and  Improve speed
coordination with & awareness
IBD of
 Services available international
but under products
promoted and poor
training.
Customer Inconsistent service  Customer  Standardize  Rising  High
Service standards; delayed experience varies service customer resource
and issue resolution widely delivery and dissatisfaction consumptio
Customer  There is service improve  Increasing ns
quality variation complaint complaints  Missed
handling
 among branches resolution  Longer target
and guideline exists resolution time  High
but there is weak customer
enforcement touch

Customer  Weak relationship  Reactive issue  Implement  Technology  High
Relationshi handling, weak CRM gap, customer
management with
p escalation framework and  data touch
Manageme corporate customer
inaccessibility,  High
segmentation.
nt customers  declining resource
satisfaction consumptio
 Poor coordination
ns
scores.
between branches: 
no shared visibility
of relationship
ownership.
 Inconsistent
customer
experience- service
quality varies from
one branch to
another.
Operational Administrat Resource shortage  Over Centralized  Improve Delays,  Process
Support and ive & and delayed decision /approval operational inefficiencies, inefficiency
Administrati support procurement process delays flexibility and and employee  High
on operations/hinders resource resource
frustration.
efficiency. allocation. consumptio
n
 Manual
processes
 that could
be
automated
Training, Limited structured  Learning outcomes Strengthen Declining skill  High
Coaching & training; mismatch not tracked. competency & performance, resource
Mentoring with job needs motivation. Align training gaps, & consumptio
n
capacity building process variation.
with strategic
goals.

Escalation Delayed escalation  Escalation lacks Ensure faster Inefficiency,  Significant

of Support and unclear tracking and issue resolution. customer dependencies
& accountability feedback Strengthen complaints,  Longer
Interventio collaboration internal response
ns for across hierarchy. coordination time
Problem  Manual
gaps.
Resolution processes
that could
be
automated
Handling Long response times Improve  Delays,  Longer
Legal and coordination turnaround on inefficiency, response
gaps with Legal Unclear time
Cases and legal queries. backlog, &
Directorate. communication  Prone to
Requesting channels. Reduce regulatory
lack of
Legal compliance risks. exposure. compliance
Advice
Risk, Risk and Weak monitoring,  Limited monitoring  Strengthen  Repetitive  Prone to
Control, and Complianc incomplete reports, tools, lack of compliance audit findings, lack of
Compliance e Handling reactive response feedback loop culture. process gaps, compliance
Processes  Prevent 
 Audit engagement rising NBE alerts.
regulatory
structured but follow penalties.
up is inconsistent 
 Strengthen Inconsistent  Too much manual  Reinforce  High error  Process
ing Internal enforcement and intervention internal rates, recurring inefficiency
Control weak awareness.  Controls defined but control and findings, weak  High
awareness resource
not uniformly oversight.
culture. consumptio
applied  n
 Manual
processes
that could
be
automated
Performanc Lack of systematic  Weak performance  Improve  Declining  High
e performance measurement and fairness and performance, process
Manageme tracking; no self- follow-up. data-driven dissatisfaction, variation
nt assessment culture.  Tracking  High
appraisal. unclear linkage
mechanisms exist resource
but lack feedback Motivate staff to targets. consumptio
loop and toward results. n
transparency
Reporting Redundant reports  Manual compilation;  Simplify and  Delayed or  Manual
and and poor information lack of digital automate inconsistent processes
Communic flow. integration reporting reporting. that could
ations channels.  Repeated be
 Reduce manual manual errors automated
errors  High volume
& frequency

1. Objective of Process Improvement:

• (for the bank) improve operational efficiency, reduce manual errors, eliminate redundancy, …
• (for the customer) reduce service delivery time, ensure service delivery, increase transparency, enhance service experience, …

2. Signs that signal the need for process analysis

 Declining Performance Metrics:
 Consistently missing performance targets
 Increasing customer complaints
 Rising operational costs
 Decreasing market share
 Process Inefficiencies
 Multiple handoffs causing delays
 Redundant activities across departments
 Excessive error rates
 High process variation
 Technology Gap

 Outdated systems struggling to meet current needs

 Manual processes that could be automated

 Limited digital integration

 Poor data accessibility

 Customer Dissatisfaction

 Increasing customer churn

 Rising service complaints

 Longer response times

 Declining customer satisfaction scores

 3. Business Process Improvement Selection Criteria

Evaluate each process against the criteria listed below.

• High volume and frequency: Processes that are run often are more likely to cause significant waste or errors.

• High customer touch: Improving these processes can lead to better customer satisfaction.

• Prone to lack of compliance: Processes with a history of non-compliance are crucial to address in order to avoid issues.

• Impact on strategic goals: Choose processes that, when improved, will have the greatest alignment with corporate strategy.

• High failure rate: Processes that are frequently error-prone or require rework are good candidates.

• High resource consumption: Processes that consume excessive resources (time, money, materials) are ripe for optimization.

• Significant dependencies: Look for processes that, if improved, could positively impact other departments or systems.