Dear Readers, I am sure the title of today’s article has stirred some emotion in you. Yes, it is about the all too familiar jargon which sends some chills into most bankers, at every department.
Yes, anything that makes you feel so, implies risk. Most young professionals enter the banking space with a perception that banking is a glamourous profession.
Within a month, they realize that not all that glitters is gold. The relatively better working conditions go with great expectations and responsibility.
“Bank staff headache” refers to the stress and headaches experienced by individuals working in the banking sector, often stemming from demanding jobs, long hours, and high-pressure environments.
What are targets?
In banking, “targets” refer to the goals and objectives that banks set for themselves and their employees, typically related to financial performance, customer acquisition, and operational efficiency.
These targets are crucial for strategic planning, performance evaluation, and decision-making.
Before then, let us look at the business of banking itself
The drastic changes in the functions of banks
The functions of banks have changed drastically over the years. The Ghana Banking Act 2014, (Act 673) and now consolidated into The Banks and Specialized Deposit-Taking Institutions Act 2016, (Act 930) outlined numerous permissible activities of banks: “A bank shall not carry on any business other than any of the following:
- acceptance of deposits and other repayable funds from the public;
- lending;
- financial leasing;
- investment in financial securities;
- money transmission services;
- issuing and administering means of payment including credit cards, travellers cheques and bankers’ drafts;
- guarantees and commitments;
- trading for own account or for account of customers in,
money market instruments, foreign exchange, transferable securities; - participation in securities issues and provision of services related to those issues;
- advice to undertakings on capital structure, acquisition and merger of undertaking.
- portfolio management and advice;
- the keeping and administration of securities;
- credit reference services;
- safe custody of valuables;
- electronic banking; and
- any other services as the Bank of Ghana may determine.”
Let us examine some common targets in financial institutions. All targets start from the board to management, who also breaks it down to the departnenrs and units. I will start with the outlets, mainly the retail, corporate and investment sections who deal directly with customers. The branch manager first comes to mind:
Here are some extracts from my book, “The Modern branch Manager’s Companion”:
“The Typical Job Description of the Modern Branch Manager
The branch manager, assisted by the operations manager bears full responsibility for his/her branch. As the team leader of branch management and a member of the bank’s management team he or she ensures that institutional business strategies, business model, and core values are implemented in his/her branch. Specific broad responsibilities include:
- Ensuring the corporate goals are always embedded within the branch’s developmental plans.
- Managing and developing staff.
- Ensuring excellent customer care and relationship management
- Ensuring a healthy loan portfolio for the branch.
- Submission of reports and returns to the appropriate departments in Head Office.
Let us examine how this job description can be executed:
Staff Management and Development:
- Ensure that recruited/confirmed branch staff have the right attitude, skills and knowledge to perform their duties.
- Ensure (through communication and good example) that staff live the Bank’s corporate values always.
- Hold regular meetings with staff to update them on institutional development.
- Give regular and timely feedback to staff on attitude, skills and knowledge in relation to their work.
- Set and maintain high performance standards in accordance with institutional standards.
- Sustain staff motivation.
- Take timely and appropriate disciplinary measures in accordance with the HR policies.
- Carry out regular staff evaluation according to HR policy.
- Coach and develop staff capacity to perform their roles effectively and efficiently.
- Communicate regularly and promptly on staff development to Head Office Management, Human Capital and other related departments)
Executing Corporate and Branch goals:
To ensure that the branch meets its corporate and branch goals, managers must:
- Ensure that the branch business plan is achieved (every month).
- Ensure that the branch serves as a service point for delivering financial services to customers.
- Conduct regular research into products and services required by the customers in the local community, examine the competitive products and services, and when relevant, prepare recommendations to the Head of business in head office.
- Regular follow-ups with relationship managers to mobilize funds and to expand catchment zones to acquire new businesses.
- Critically assess and identify opportunities and threats in the locality, and take proactive steps to leverage opportunities and minimize threats.
- Ensure that branch capacity (ability and numbers) is commensurate with demand and market potential.
Customer Care and Relationship Management
This is the differentiating factor which managers must never underrate. The following expectations are key:
- Ensure that staff understand and maintain high standards of professionalism and customer care.
- Take proactive steps to ensure that customer needs are met in your branch.
- Collaborate with relevant branches and departments to meet customer requirements when necessary.
- Maintain good professional relations with all customers.
Ensuring a Healthy Loan Portfolio for the branch
Since most Bank’s earnings are from interest received and repayment of loans, the following functions are critical to the success of the branch and bank as a whole:
- Ensure that loans approved and disbursed within the branch meet required procedural and risk mitigation standards.
- Implement good portfolio management measures at all times.
- Ensure that all loans are monitored effectively by client relationship officers and branch management.
- Implement measures and structures to follow up on arrears to maintain good portfolio quality of each relationship officer.
- Liaise with relevant head office departments to keep all risky and potential defaulters in check and well structured, and to recommend the appropriate impairment measures or loan structuring.
Submission of Timely Reports/Returns
- Ensure timely and quality reporting by your branch to the relevant offices/departments at all times.
- Perform any other duty as required by supervisor, zonal managers and Head Office.
Bank branches are graded by the bank management according to the size of their assets, number of customers, size of deposits, liabilities, geographical location and so on.
A new branch with less than hundred accounts but located in a prime area, is usually graded A, despite the low number of customers.
It is usually expected that even with the few high net-worth customers, businesses would be sizeable in future. This is where the technical skills, people skills and conceptual skills are expected to be utilized.
As I indicated, a good combination of these three skills can make a branch manager move mountains especially in these times of paradigm shift in banking.”
We now have insights into the functions of the bank branch and the roles that branch managers play. If you are a branch manager in a small branch in the remotest part of the country, just manage it well, because eagle eyes are watching.
Think global while acting locally, and you will soon find yourself managing the flagship branch of your bank, managing global clients and customers.
Setting targets for the bank branches and distribution of annual targets to the branches and portfolio managers, quarterly, is a crucial process for decision making and strategic planning in the banking industry.
Performance of the bank branches and portfolio managers are also evaluated by the quarterly divided targets to the branches and portfolio managers.
The Customer Acquisition Targets: These aim to increase the number of new customers, market share, and customer retention rates.
Every bank depends on customers to thrive. Without customers, there is no bank. Previously, targets were mostly for sales personnel, but now every staff in the branch, led by the branch head or manager has a personal target to meet.
The Stress of Targets
Dear Manager, as a sales leader, the weight of your responsibilities can be overwhelming, often leaving you restless and consumed with worry. The pressure to drive revenue, manage a high-performing team, and navigate an unpredictable market can feel insurmountable.
These challenges are not just professional hurdles but personal burdens that affect your well-being and peace of mind. Addressing these effectively is crucial for your team’s success and your own sanity.
Let me pause here. Next week, we shall examine the Targets for Relationship Officers and Managers. Their targets are mostly related to customer acquisition, relationship management, customer satisfaction, customer retention and finally profitabilty.
We will look at the stress they go through during performance appraisals, fear of being placed under PIP (performance improvement plans) and the danger signals of losing your job.
Meanwhile my book is available for sale. Call 0244333051 for your copy.
TO BE CONTINUED…
ABOUT THE AUTHOR
Alberta Quarcoopome is a Fellow of the Institute of Bankers, and CEO of ALKAN Business Consult Ltd. She is the Author of Three books: “The 21st Century Bank Teller: A Strategic Partner” and “My Front Desk Experience: A Young Banker’s Story” and “The Modern Branch Manager’s Companion”. She uses her experience and practical case studies, training young bankers in operational risk management, sales, customer service, banking operations and fraud.
CONTACT
Website www.alkanbiz.com
Email:alberta@alkanbiz.com or [email protected]
Tel: +233-0244333051/+233-0244611343
