Business Analysis : BCA
The Company's business and history
BCA is one of top 5 bank's in Indonesia with total asset approx. 150 trillion, the business are to provide financial services to its customer include funding, lending activities and also transaction feature which customer needs.
The Vision of the bank is to be main people choices bank, to achieve that goals BCA had three strategy :
To build leading institution in transaction, and financial solution either to business customer and individual customer.
Understanding customer needs and gave them the right financial services for optimal customer satisfaction.
Added value to BCA stakeholder.
The history it self began at 1955 when BCA establish with the name N.V. Perseroan Dagang, in 1988 BCA start to wider its network by developing branch nation wide. In 1990 BCA start to enhance its services with Automatic Teller Machine or known as ATM but in 1998 as the failure of Indonesian Banking System causes by economic crisis, BCA join in the group of the recapitalization and restructured by Badan Penyehatan Perbankan Nasional or known as BPPN with the ownership of 92,8% shares by Indonesian Government. In the year 2000 2001 BPPN divest it shares through public offering causes decreasing of shares to 60,3% and in the 2002 the change of ownership after Farindo Investment own majority shares with 51%.
The Competition
In term of Environment
With more than 130 bank's operating in Indonesia gave the banking industry tight competition environment.
To growth in Indonesia Banking environment its not easy due with so many competitor and the reality that almost 80% of money is base on Jabotabek also with more educated customer from time to time which demand more complex financial services provided by bank to meet their needs. So the bank have to had a competitive advantage in order to differentiate them with others.
In term of Branding
To be the bank in the "Top of Mind" of people think is a difficult task, aggressive promotion, educating the customer and future customer about service and feature that the bank provided, accessibility, etc. requires strong commitment and clear business segmentation.
In term of IT & Infrastructures
The complexity financial behavior of the customer from time to time required bank's to enrich the product line and services with IT reliability as key success factor. In today environment every process in the bank is using IT in order maximize profit and reduce cost, or in the other word reach optimal efficiency.
The banking industry is under pressure in today’s business climate. Banks have been through big changes. There is opportunity, but there is also increasing competition. To be the preferred bank means changing “good enough” into a unique value proposition. And that means changing the way people have always done things, change on this level requires cutting edge technology. Change cannot be achieved with a simple directive or surface adjustment especially within the banking industry. It requires an innovative rethink of the entire system, in a strong partnership between bank leaders and their change agents. New systems and policies must support the strategy to be successful. The real test of a good strategy implementation plan is whether the people understand the strategy, are motivated and enabled to implement it, and actually start achieving its goals.
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In Corporate and Institutional Banking (CIB) we will either upgrade or exit clients where returns are poor; favour network businesses such as Transaction Banking and Financial Markets; and build a leading position in banking selected buyers and their suppliers
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5. Participation in partnership business is the fundamental function of the Islamic banks. So we have to understand our customer's business very well.
Firstly, CIBC FirstCaribbean International Bank’s goal is to become the number one bank within the Caribbean. Even though the organization offers the lowest interest rates within the banking industry and provides excellent customer service they have not achieved being the leading bank. In addition, the company operates on a centralized organizational structure whereby the loan decisions are made only through Barbados. This process lengthens the turnaround time for an approval as compared to their competitors which results in customer dis-satisfaction and allows customers to switch to its rival. Staff complains about the work load as a result of the redundancy and not being compensated fairly. Furthermore, the organization is not risk averse as compared to their competitors which contributes to the decline in sales and
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As we know the financial service are of two types 1. The depository institutions 2. Non-depositary intuitions. In this let us consider depository intuitions and let discuss on it. The major example of financial depository institutions is banks. As banks accepts deposits from its customers. Banks play very virtual role in developed economy, like Oman. In this assignment let us take National bank of Oman as an example. National bank of Oman is very famous and busy bank in Oman majority of citizens of Oman bank with it.
Bank selection criteria mean the reasons on which basis customers will chose to do their banking transaction with any particular bank. The objective is to determine and establish the bank selection criteria of Islamic banking customers and conventional banking customers and a number of factors is include to determine this selection such as: Convenience, Lower risk of services fees and charges ,Recommendation from others, Quality and new products & services, Bank reputation & image, Diversification of risks, Religion belief or motives, Responsive attitudes of banking staffs, Interior comfort of bank, Good prospect of the banking system in the future, Better return and Welfare of the society are used to investigate customer’s criteria in the selection of Islamic banking. Bank selection criteria can vary in different countries this can be because of their country’s banking regulation or the importance of factors suggested above. Example for bank selection criteria are study carried by Anderson et al. (1976) found out that a convenient location is identified to be the most important factor in influencing the choice of customers in south western city in the US. But study carried out by Tan and Chua (1986) customers in Singapore did not select convenient location as their main selection criteria but they have rather selected factor such as recommendation from friends and family has more influenced customers in their decision in selecting a banking institution. Another study by Erol et al., (1989 and 1990) in bank selection criteria on both conventional and Islamic banks in Jordan, which they found that the three most important in the selection criteria were bank reputation & image, confidentiality of the bank a...
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
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