“Your friendly neighborhood bank”

1. “Your friendly neighborhood bank” Kar – Him Chow Janssen Choy Andrew Fung (Stella) Jing Gao

2. Agenda • Market Analysis • External Quality Management • Internal Quality Management • Conclusion • Questions

3. Deposits Totaling less than 400 Million Less than 5 branches Market Share less than 1% Small Bank Criteria

4. Small Bank Analysis • Similar throughout market • Different competitive strategy • Community oriented strategy • Trust • Communication • Belonging • Importance of word of mouth • Carries negative perceptions

6. Recommendation Direct Method Direct Marketing Bank Target Customer Response Indirect Method Word of Mouth Quality Improvement Existing Customer Target Customer Bank Response

7. 2 Pronged Approach Internal Quality Management External Quality Management Quality Management

8. Quality: Current • Service Expectation Forms • “Reference Customers” • Main Idea: Expectation Reflects Satisfaction! • Benefits: 1. Evaluation of Reputation 2. Identify Problematic Areas

9. External Quality Control • Measure of Quality: Customer Satisfaction • Programs For Evaluating Quality: - On-Site Surveys - Mail-in Surveys - Customer Services and New Accounts for Handling Complaints

10. On-Site Surveys • Schedule: - Periodic Review - Random Time Sampling Review • Benchmarking - Data Compiled into a Central Report - Compared against: - Other Branches - “Standard Figure”

11. Customer Complaints • Average Monthly Customer Complaints (per year basis): • Standard Figure: <10

12. Customer Complaints: Reasons

13. Reasons of Dissatisfaction • Current Customers • Language: (Mis)Perception of “Distantness” • Insufficient Number of Tellers Available (?) • The Importance of Creating a “Bond” - Prospective Customers: - “What’s BNB about?” - Unclear of Availability of Services - Unsure of Reliability/Credibility of small banks

14. Recommendations • Employee More Bilingual Staff • Create Awareness - “The Bank is NOT only a Bank” - “Belongingness”: The Bank Next-Door

15. Internal Quality Management • Measuring quality • Throughput time • Teller over/short amount • Waiting line

16. Throughput Time • On-peak and standard throughput time • Teller’s processing time on average ≈ 5 minutes/customer

17. Teller Over/Short Amount • Accuracy of cash transaction by the tellers • Reputation damage • Monetary expense • Errors cannot be eliminated, but can be minimized

18. Teller Over/Short Amount • Has improved significantly from 2000 to 2003 • Below the bank’s benchmark of $739.85 for Year 2003

19. Waiting Line • On-peak and off-peak waiting time • Over 5 minutes on average to wait for services from teller • Availability of a greeter • The waiting line is “hidden” • Refreshments provided for waiting customers

20. Internal Quality Management • Recommendations • Benchmarking • Education and training • Employee empowerment

21. Benchmarking • Identify a standard for employees to achieve • Actions to meet or surpass the benchmark • Ex: Benchmark for teller over/short amount • 2003 benchmark: $739.85 • Should reset the benchmark annually • Ensure continuous improvement

22. Education & Training • Has nearly doubled since 1998 • Errors can be reduced: teller over/short amount • Online courses • Skill training

23. Employee Empowerment • Customers’ expectation and feedback • More responsibilities to the jobs • More involved in the decision making process

24. Conclusion

25. Questions?

26. David Vs. Goliath • JP Morgan Chase • Large global bank • Branches around the world • Wide range of services offered Broadway National Bank Small community bank 3 branches Limited services offered Clearly NOT a competitor!

27. David Vs. David • Gotham Bank of New York • Small community bank • 1 Branch • Limited services offered Broadway National Bank Small community bank 3 branches Limited services offered Market: Small community banks

28. Broadway National Bank Target Market