ASSIGNMENT COVER PAGESURNAME: GOPAL INITIALS: AD GSTUDENT NUMBER: 22789243 CONTACT NUMBER: 57818087 PROGRAMME NAME: MCB MDP 2018 MODULE: FINANCIAL MANAGEMENT FACILITATOR: SULET VAN NIEKERK DUE DATE: 11.05.2018 NUMBER OF PAGES: CERTIFICATIONI certify the content of the assignment to be my own and original work and that all sources have been accurately reported and acknowledged, and that this document has not previously been submitted in its entirety or in part at any educational establishment.I hereby also confirm that I have read and understand the contents of the USB-ED policy on Academic Integrity: The Prevention and Handling of Plagiarism (as per Annexure C).Didier GOPAL G3011703825968_________________________ ________________________________________SIGNATURE OF PARTICIPANT ID number for assignments submitted via e-mail_________________________SIGNATURE OF LINE MANAGER(If required according to the program rules) FOR OFFICE USEDATE RECEIVED:Executive SummaryEstablished in 1838, MCB Ltd is the longest-standing and leading banking institution in Mauritius, displaying an increasingly prominent foothold in the region and constant presence on international scene. From a single bank, MCB Group has grown with a total asset worth of MUR 369.
5 billion (USD 11 billion). Now with 37 branches nationwide, MCB seeks to consolidate our position in the region and beyond.MCB Group is the holding company of several subsidiaries and associates that operate under three business clusters: Banking, Non-Banking Financial and Other Investments.
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Banking activities are present in Madagascar, Mozambique, Reunion Island, Mayotte, Paris, Seychelles and Maldives, with a network of over 1400 correspondent banks across the world.The Non-Banking Financial sector is involved in Factoring and Leasing while the MCB Capital Markets Ltd offers services such as Corporate Finance Advisory, Asset Management, Stockbroking, Private Equity and Registry. The Group also assists Micro and Small Entrepreneurs. VISION STATEMENT MISSION STATEMENTEvery day we will make We will keep finding ways to meet the needs of our customerssomething happen We will listen to them and help them achieve their goals We will help people with ideas to be entrepreneurs. We will be worthy of our shareholders’ confidence We will do what we can to make the world a better, greener place.
And we will never go away. • PHILOSOPHY Strategic PrioritiesBased on robust and sustainable growth targets and a continuous leveraging of intra-Group synergies, our strategy is embedded on a thorough understanding of the needs of our clients with a view to providing them with convenient, tailored and digitalized solutions for achieving their goals. This enables us to strengthen and optimize our balance sheet, whilst delivering strong, consistent, high-quality financial results. Reflective of our disciplined strategy execution, we aim to grow our business and expand our frontiers in a prudent and gradual way, with the Bank mainly venturing in areas where it has harnessed strategic competencies.
PORT LOUS MAIN BRANCH (PLMB)I’m presently the Main Branch Manager of PLMB. Located in the City Centre, it consists of 70 employees offering variety of services starting from Cash transactions, Bank products and services to credit facilities. It also acts as a supporting unit for other SBUs of the bank and lies within two floors in the MCB Centre namely the ground floor and first floor with a workforce of seventy three employees With its high concentricity of transaction based on high foot fall visiting the branch on a daily basis and it is even considered as a region compared to other regions SBU such as Grand Bay and Flacq.MBM: Main Branch ManagerOSC: Operation and Service CoordinatorOPS: Operation SupervisorCSR: Customer Service RepresentativePLMB is a challenging opportunity to address Key performance indicators (KPI) as listed belowBalance Score Card Financial(F)/Non-Financial(NF) Weightage *Financial F 30%Customer Service NF 30%Internal process NF 20%Learning and Growth NF 20%* Depending upon segment within the bank.Rating applicable is 1(Poor), 2 (Unsatisfactory), 3(Satisfactory), 4(Good), 5(Excellent) Based on Financial statement as at March 18, we noticed a significant decrease in Operating expenses by 12% compared to previous financial year mainly driven by a reduction of headcount by 7 units within the Business Unit together with a sustainable control of BU expenses.
Main component of operating expenses concern Staff expenses. Financial year 18 was driven with a reduction of headcount at PLMB by seven employees. Such reduction has a direct positive impact on payroll and overtime with a cumulative reduction of nearly 9%.
However we noticed an increase in training being explained by arrival of new staff and promotion for others which requires more training.Direct expenses such as Stationery costs has been properly controlled with a decrease of 11% mainly explained with vision of the bank towards digitalization process. Sustained initiatives taken by the bank to reduce utilization of paper since several years have encouraged customers to move towards remote channels such as ATM, BNA ATM, Kiosk utilization,Implementing electronic signature of bank documents Sustainable development has always been a hot topic for banks and large corporate organizations. MCB already embarked in an ambitious journey towards its philosophy of sustainable development and core business strategy. With bank’s KPI centered towards customer centricity, MCB needs to deepen it’s initiatives to a paperless environment. MCB Group reflex ion towards corporate sustainability requires more innovative measures to change its internal process thus impacting the behavior of our customers. Being the leading group in the banking environment, the Bank should be able to align its profit model together with ability to help the country towards protection of environment.
Being a privileged partner in the societal and environment problem of the country, MCB should take the leadership role in bringing new ideas and initiatives to have a major positive impact on country socio-environment situation.Sustainable development with automation of bank’s process, MCB has already started a number of initiatives to support its vision namely:• Initiative 175Initiative 175 was launched by the bank in March 2009 with mission to fight towards waste of energy and pollution. Several initiatives were implemented such as a) Green loanb) On-line Statement of accountc) Reduction of ATM receiptWhile continuing bank’s vision towards green environment, implementation of electronic signature for bank applications can constitute another sustainable development of bank’s impact on socio-environment. Customers know and see precisely what document they sign because the whole action happens on one panel. Sophistically evaluated biometric signature provides a detailed and accurate identification of a person. Full digitalization of the business cases and processes leads to large savings in operating costs from paper to cartridges for printers.region COS Amount Frequency P Louis Region COS Amount Curepipe region 506030.74 535 Bell Village 403201.
79Flacq Region 426931.62 246 Edith Cavell 69537.03Grand Bay region -79454.03 249 SSR 77297P Louis region 745847.44 645 PLMB 545210.62Cash Management 215791 148 Plaine Verte -354533Rodrigues Main Branch 43439.9 53 Caudan 5134Rose Hill Region 832683.
11 541 Bagatelle e-retail 2691269.78 2417 Total 745847.44As per table above, cash over and short (COS) for Port Louis region amount to 27% for retail sector with an amount of Mur 545,210 only for PLMB. Obviously, implementation of electronic signature will have a significant impact on bank loss. TARGETED SECTORI. Teller sector II. Customer Service Representative sectorIII. Loan sectorTeller SectorFor any teller’s transaction, comprising cash deposit, cash withdrawal and cheque deposit no vouchers will be required.
While processing transaction at teller’s counter, customers will be required to affix their signature or thumbprint on I-pads to validate their transactions.Customer Service Representative (CSR) Section At CSR level, initiatives which could be implemented concern on-line signature for account opening process, application for local and foreign cheque, bank account transfers and card application and delivery process.Loan sectorFor any application for unsecured credit facilities, Bank will encourage on-line application through either Internet Banking or Kiosk services.
Being easy and rapidly assessed, application shall be immediately considered for a rapid disbursement if ever approved.While moving steadily towards digitalization of bank’s products and services, the main benefits behind such new practices will be elimination of vouchers, mitigating risk of error with accurate authentication and verification, reduction of risk for payment to third party thus impacting financial loss and reputation, electronic archiving of voucher which will ease retrieval of information in case of dispute between customers and the bank.Benefits • Direct Financial benefits concern reduction in stationery expenses, storage fees, transport costs for transfer of vouchers/bank documents to Archives section & overtime paid to staff.• Other non-financial benefits will lead to a better automation of bank’s process, easy access to information, rapid retrieval of document in case of dispute, better bank security and confidentiality.For example, actually our Archiving Business Unit situated at Pailles, located outside Port Louis, deals with archiving process for all MCB branches and other SBUs. With increasing number of items kept at Pailles, request for retrieval of document tends to be long and difficult. An alternative solution to physical storage of bank documents will definitely add value to retrieval of information at bank level as any record being wrongly registered in our books can lead document irretrievable with an ultimate impact on bank’s reputation.In order to achieve effective and efficient result in new process, contribution of strategic SBUs will be requested such as:• IT Sector• Legal Sector • Compliance Sector• Audit Sector EXAMPLE: Road map for a bank application process with and without electronic signature.
CONTROL AND RESTRAINTSTo ensure reliability of electronic signature system, bank needs to ensure sustainable back up to act as alternative solution in situation of system failure or IT crash. Storage of bank data should be considered through outsourcing to IT company as a backup option. Furthermore, IT sector should also work on a data protection environment to prevent data corruption, data theft and unauthorized editing. Legal aspects should be also reviewed to ensure proper framework be provided to protect the bank and customers towards existing laws prevailing in the country.
Adequate procedures to be designed by the bank to address new process flow with consideration of risk associated.However, even if implementation of electronic signature will definitely benefit all stakeholders, change behavior is hard to be accepted. Adequate communication and education need to be prioritized to ensure its success.In event that no proper control done by the bank to ensure efficient and effectiveness ofNew process, this may lead to:I. Legal issues II.
Data Protection riskIII. Additional cost for IT maintenance and storageIV. Reputational risk V. Financial lossCONTIGENCY PLANWith high level of application received by post or deposited at bank level by third party, utilization of application forms can be maintained for a defined period of time with a higher fees amount just to discourage such practice. QRRRREEEEWQQQQIINWWWSummaryBanks and financial services providers are digitizing their business processes to provide a better customer experience and at the same time, improve compliance.
An electronic signature solution that is built on digital signature technology provides a secure and compliant means to automate transactions that require the customer’s signature.The ambitious journey of MCB Group to shift from a traditional banking activities towards delivery channels and helping Mauritians moving from a cash society to a financial literacy society. Implementation of electronic signature will change behavior of customers towards paperless applications and add value to quality services provided by the bank.Main benefits can be summarized with:• Speed pace of business• Document accuracy• Save time and money• Enhance Customer service and experience• Avoid financial lossSome disadvantages can be resumed as:• Limited storage options• Limited security options• Additional cost through backup solutionsCommunication and education will be the key words for such sustainable development with a direct impact on Operating expenses of the bank. • INTRODUCTIO• • • •