Banking and Finance P & N Bank

Question: Discuss about the Banking and Finance P N Bank. Answer: Introduction The given assignment discusses about a bank, which has launched two products naming business account. Hence to promote its product, the bank has thought to issue prospectus which is described in the assignment. After this, there has been a training session conducted between the employees to train them to solve the grievances of bank clients (Ernst young, 2010). The prospectus Profile of the bank The product the bank is offering is an account opening for small business clients. It is for everyday and easy to use. There are no monthly fees. This means if the account is maintained for a minimum balance of $1,000 and the monthly fees would be waived. The bank allows free fee transactions. This facility is allowed for motivating individuals to keep more money in their account. Besides this the individuals having their account in this bank, can access their account wherever VISA is accepted. While the individuals can also access their account through internet via Netlink online banking, MiLink mobile banking, Phonelink telephone banking, Txtlink SMS banking, PN banking app and many more. The bank provide facility of providing funds via ATMs via rediATM, NAB, and BOQ ATM. BOQ ATM is one of the largest network of ATM in Australia. To provide security to account holders, Visa debit card of card holders are protected by Visa zero liability. This security is also provided when Visa pay wave is used or pressing credit is used in store. Hence it can be said the bank provides a security layer in doing online transactions. For any query, the phone number of bank is 132577 (InfoChoice.com.au). The bank is offering two kinds of product those are: Product name Tier Rate (Variable) Interest calculated Interest Credited Business account $0-$99,999 0.01% p.a. Minimum monthly balance Last day of every month Business account $100,000 0.05% p.a. Minimum monthly balance Last day of every month Identifying potential client Potential client are those which lead the company in earning major profits. This might happen in a corporation that the user fits in the strategies of the product. But the user do not becomes the client of the corporation. To identify the potential client a corporation needs to adopt following strategies such as: for every customer the company wants to target, the company need to make strategy that acts as a match between the actual and potential needs of the customer and the strength or core competency of the bank. In relation to bank, the potential new clients can be identified as: it has to be identified by the bank managers, that which customer group would be mostly likely to buy the bank products and services. Besides this, the bank should focus on building relationships with its clients to make them loyal for the bank. The bank can also make some favorable changes on its websites for ease of use by customers (Finder.com.au, 2017). Usage pattern The usage pattern of bank accounts can be computed as ease of transactions in these products as compare to its usual saving and deposit accounts. As in these saving and deposit accounts there are very few transactions. The bank is providing new interest amounts or surplus amount in their accounts. As the bank is providing free fee transactions in its products, security level in its products (The university of Sheffield, 2017). Comparison of product with banks of Australia and some recommendations Here the comparison has been done in case of product of small business banking with three known banks of Australia. The prospectus has considered Bank of Melbourne, Arab bank Australia, and Citi bank. In case of Citi bank to earn interest, a deposit of minimum of $10,000 to be done with the bank. In case of Bank of Melbourne, the interest can be earned at a deposit of minimum $1 (Finder.com.au, 2017). Besides this, the banks also allows to investor to keep a minimum balance of $1. The PN bank account is advantageous in terms of offering of interest rate. The interests are calculated at monthly basis and credit in every month. The bank is planning for making more convenient services for consumers, and to make them loyal towards bank. The bank has a comparative advantage of providing securities to its clients (Athar Shah, 2015). PN Small Business account Product name Tier Rate (Variable) Interest calculated Interest Credited Business account $0-$99,999 0.01% p.a. Minimum monthly balance Last day of every month Business account $100,000 0.05% p.a. Minimum monthly balance Last day of every month Bank of Melbourne business cheque account-plus $0-$99,999 0.01% p.a. calculated on daily basis deposited in a month business cheque account-plus $100,000 0.05%p.a. calculated on daily basis deposited in a month Arab Bank of Australia online savings account $0-$99,999 2.30% p.a. calculated on daily basis deposited once in a month online savings account $100,000 2.50% p.a. calculated on daily basis deposited once in a month Citi Bank ultimate business server $0-$99,999 1.65% p.a. calculated daily last day of month ultimate business server $100,000 1.65% p.a. calculated daily last day of month Marketing campaign The bank can promote its product by use of social media, providing excellent customer services, strategic partnerships and by providing customization service. In respect of given bank, the product can be promoted by advertising in newspapers and on social networking sites. Besides this the bank can promote its products and services by providing customization services (Dindar, 2015). Reward Recognition strategy The bank can indulge into reward and recognition for staff by providing them strong identity, and decentralized in decision making. In case of clients of bank, they can be rewarded with the additional interest amount or providing some discounts (Inkumsah, 2013). Roles of stakeholders The key stakeholders of the bank are as: board of directors, executive/senior leadership team, business unit manager/ branch manager, customer help centre, operational legal group, company secretary and other related staff. The roles of key stakeholders are to ensure that the product matches with the customer expectations, organizing training and development programs for them, set benchmarks, and evaluating the results with expected performances (Gorajek Turner, 2010). Performance measure methods The performance of banks stakeholders can be measured by balance scorecard, fulfillment of the bank mission and objective, number of deposits accounts made, feedback of clients, growth in bank revenue and profits. Besides this, the financial statements play key measure to measure performances of a product or many products and services of the bank (Anand, 2015). Customer complaints policy and procedure The bank has policy of acknowledging all the complaints and providing grievances. All the complaints would be answered in a transparent and objective manner. The bank has provided a complaint link on its website. This made easy for the consumers who access their account online. The bank is following the rules and regulations formed by reserve bank of Australia (Ferreira, 2013). Customer strategies The employees are trained to keep their clients happy and satisfied by the bank. This is because; unsatisfied needs and demands of the client can make him wish to change his bank account. This would result into reduction of deposits with the bank. Hence the bank has made effective customer strategies such as: complying with the small things the customer has preferred like hours during which call can be made by the bank. These are those preferences which made the services customized by the bank. Besides this security in the accounts of the consumer plays a key role. Apart from this, the bank required to be technologically updated; this is so to conduct transaction on timely (PWC, 2017). Product review strategy The product of the bank such as: business account is recently launched by the bank. Hence the bank would review the product on monthly basis. The bank has made team for evaluation of making a match between the standards set by the managers and the actual results of the product. The process of review would take 1 day as on the end of the month. During this the transactions of banking would be postponed to next day, so to review the product performances effectively. There are two methods by which product can be reviewed by customers such as primary and secondary. In primary form, the customer or client complaints directly to bank, while in secondary form, the product can be reviewed as change in its value in market or customer mind, or the reductions in account with the bank (Gan, Cohen, Clemes Chong, 2006). Key features of legislation and regulation The bank has launched its new product as business account. For this, the permission has been taken by the bank from company act, central bank of Australia or reserve bank of Australia, Basel norms. The rules and regulations made by the government authorities are in the form of requirement of capital with the bank, the performances measures, and the procedures to be followed by the banking. The bank would also be required to comply with the requirement of debt and equity mix. This is done to safeguard the interest of the customers of bank at large (FOS, 2017). Training session A training session has been conducted by the bank of 4 team members. In this session, each team member has demonstrated the role played small business client. The team leader of the session is responsible for describing the requirement of role, organization policy, and procedures to support performances. In this play, the client is very disinterested and wishes to lodge a complaint regarding the bank. The main objective of the training session is to provide the suggestions to team members to arrive at the grievances (Australian government). The customer has complaints from bank as: the complaints are not acknowledged very late. The number provided by the bank is not reachable or if reached, the employees do not answer properly. Besides this the client has encountered a problem in security and privacy. The customer is highly dissatisfied from bank because the ATMs of bank are not operating. The ATMs of the bank are mostly out of order and out of cash. Apart from this, the bank does not credit the amount of interest in its clients account, which highly affects the bank performances in market. Hence the customer has filed a complaint regarding the bank, which he is highly dissatisfied from the performances of the bank, and if his issues are not resolved, then he will bound to switch his account to another bank (Kelly services, 2017). The employees of the session have learnt to be patient while acknowledging the problem of client. According to them, the client was very aggressive; hence he was not ready to accept any answer from the bank employee team. However it has been encountered that in the month of January 2017, the interest amount has not been credit in the client account. This was due to political issues and formation of new rules and regulations by Basel III and IV norms in finance market. It was also found out, that the ATMs have not been working properly. Hence the bank has considered the issue and would be repaired soon (Legal service commission). Conclusion By analyzing over the training session conducted by the bank, it can be concluded that there was partly mistake of the bank and partly due to slow rulings of banking regulations. The bank has considered its mistake and satisfied the customer by providing him sympathy. Hence by this the bank employees were able to change the perception of client to shift his account to another bank. References Anand, N,. (2015) Business standard, HDFC bank rolls out its largest brand campaign. Retrieved on 17th February, 2017 from https://www.business-standard.com/article/finance/hdfc-bank-rolls-out-its-largest-brand-campaign-115100700986_1.html Athar, R Shah, F, M,. (2015) Impact of training on employee performance (Banking sector Karachi), IOSR Journal of business and management (IOSR-JBM) 17(11) pp.58-67 Australian government,. Consumer complaints and queries. Retrieved on 17th February, 2017 from https://www.australia.gov.au/help-and-contact/faqs/consumer-complaints-and-queries Dindar, S,. (2015) Quicktapsurvey, Top 5 customer service marketing campaigns of 2015. Retrieved on 17th February, 2017 from https://www.quicktapsurvey.com/blog/2015/12/10/top-5-customer-service-marketing-campaigns-of-2015/ Ernst young,. (2010) Understanding customer behavior in retail banking: The impact of the credit cisis across Europe. Retrieved on 17th February, 2017, from https://www.ey.com/Publication/vwLUAssets/Understanding_customer_behavior_in_retail_banking_-_February_2010/$FILE/EY_Understanding_customer_behavior_in_retail_banking_-_February_2010.pdf Ferreira, B, J,. (2013) Global regulatory change and the Australian response, Ensuring Australia becomes the Asian pacific paragon. Retrieved on 17th February, 2017 from https://www.fsc.org.au/downloads/file/aboutus/FSCFutureLeadersAward2013-Q2-BrendonFerreira-Final.pdf Finder.com.au,. (2017) Product details. Retrieved on 17th February, 2017 from https://www.finder.com.au/arab-bank-online-savings-account FOS,.(2017) Financial ombudsman service Australia, Our dispute resolution process. Retrieved on 17th February, 2017 from https://fos.org.au/resolving-disputes/our-dispute-resolution-process/ Gan, C,. Cohen, D,. Clemes, M Chong, E,. (2006) A survey of customer retention in the new Zealand banking industry, Banks and bank systems 4(1) Gorajek, A Turner, G,. (2010) Reserve bank of Australia, Australian bank capital and the regulatory framework. Retrieved on 17th February, 2017 from https://www.rba.gov.au/publications/bulletin/2010/sep/6.html InfoChoice.com.au,. (n.d.) Business bank account comparison. Retrieved on 17th February, 2017 from https://www.infochoice.com.au/small-business/business-account/ Inkumsah, W, A,. (2013) Factors that impacted customer retention of banks. A study of recently acquired banks in the UPSA area of Madian, Accra (Specifically Access bank). Journal of Marketing and consumer research Vol 1 Kelly services,. (2017) Indentifying staff training needs. Retrieved on 17th February, 2017 from https://www.kellyservices.com.au/AU/Business-Services/Management-Skills/Identifying-staff-training-needs/ Legal service commission,. (n.d.) Complaints against banking and financial services. Retrieved on 17th February, 2017 from https://www.lawhandbook.sa.gov.au/ch09s04.php PWC,. (2017) Basel III: an Australian perspective on a global challenge, the challenge of Basel III for Australian banks. Retrieved on 17th February, 2017 from https://www.pwc.com.au/financial-services/basel.html The university of Sheffield,. (2017) Human resources, Reward strategy. Retrieved on 17th February, 2017 from https://www.sheffield.ac.uk/hr/thedeal/strategy