For this assignment, I have chosen OCBC bank which is based in Singapore and it is a service firm. The Oversea-Chinese Banking Corporation Limited, OCBC Bank, is a publicly listed financial services organisation with its head office in Singapore. OCBC has assets of more than 224 billion SGD. As of November 2010, the bank is the largest local bank in Singapore by market capitalisation. However, it is the smallest local bank in Singapore by global presence. Based on Bloomberg, in 2011, OCBC is the number 1 of World's 10 strongest $100 billion assets banks.
The bank's global network has grown to comprise more than 530 branches with representative offices in 15 countries including Singapore, Malaysia, Indonesia and a few small branches in China, Hong Kong, Japan, Australia, UK and USA.
OCBC Bank provides services such as consumer banking, corporate banking, investment banking, global wealth management, asset management and insurance. OCBC has an operating income of $4815 million, net income of $1962 million, total assets amounting to $224 billion and total equity of $20 billion as for Sept 2010.
OCBC is working towards environmental sustainability. They began their green movement in 2007 by adopting practices like recycling and energy-saving measures in the buildings. In Singapore, customers can choose to receive electronic versions of their statements. OCBC head offices feature energy-saving lighting and air-conditioning systems, as well as automatic sensor taps in toilets and recycling bins. In May 2011, OCBC received the building and construction authority's green mark and were given the gold award for OCBC centre and OCBC centre south. OCBC centre is the oldest historic site to receive this award. OCBC centre's adjoining building, OCBC centre east, received the same award in May 2012.
2.0 Services that OCBC Bank offers
OCBC offers services such as personal banking, corporate banking, investment banking, global wealth management, asset management and insurance. In terms of personal banking, OCBC offers services such as loans, accounts, cards, insurance and investments.
Loans
OCBC provides personal loans such as cash loan, car financing and education loans. It also provides property loans such as home loan which consists of new purchase and refinancing, renovation loan, overseas property loan and construction loan.
Accounts
For accounts, OCBC offers services such as savings and transactions, fixed deposits and children's accounts. Savings accounts are suitable for daily deposits and withdrawals and are accounts that grow the savings with significant interest rates. Fixed deposits are monthly savings account that can help individuals earn a higher rate of interest. However, they aren't allowed to withdraw the deposits until after the duration of the saving's period. The children's accounts consist of the child development account which is a savings account for newborns with dollar-for-dollar matching from the government and also the "Mighty Savers" which is a savings account with many benefits and events for children under 15 years old.
Insurance
OCBC Bank operates its insurance business under its 87%-owned subsidiary, Great Eastern Holdings. The insurance services offered by OCBC are personal and family, savings with insurance, home and mortgage, and travel and car. Personal insurance consists of life, accident and health insurance. Savings with insurance consists of child's education insurance that help individuals save and protect the funds for children's education, in the event of unforeseen circumstances. Mortgage insurance is a life insurance that pays a lump sum in an unfortunate event to pay off mortgages. Home insurance provides insurance coverage for fire, explosions, windstorms, burst water pipes, theft and injuries sustained at home. Maid insurance provides 24-hour protection for death, permanent disablement and medical treatment due to an accident. Hospital and surgical expenses will also be covered. There will be wage and government levy reimbursement for the period while the maid is hospitalised due to an accident. There is coverage for expenses incurred in the termination of a maid's service if medically unfit to continue working
Investments
OCBC offers investments such as unit trust which is a pool of money managed collectively by professional fund managers. The money will be combined with that of other investors and invested according to the unit trust's objectives such as tapping into potential overseas investments.
Corporate Banking
For corporate banking, OCBC offers services such as business accounts that are suitable for all businesses from start-ups to large firms. They offer Singapore dollar accounts , foreign currency accounts , 'time deposits' which helps to grow money securely with choices of investment period. It is a secure investment that is not subject to exchange rate fluctuations. Fourthly, there is a conveyancing account which manages clients' conveyancing monies. Lastly, there is Al-Wadi'ah Current Account which is an account that is managed in line with Islamic principles and guidance.
OCBC provides business & cash flow services that are designed to support business operations such as managing and monitoring transactions, making payments, receiving payments, business insurance and banking services for large corporates.
OCBC provides financing solutions for daily business needs, such as prompt cash loans, commercial property loan, equipment and machinery financing, business receivable financing, trade credit facility and overseas loan .OCBC provides trade services for buyer, known as import finance, sellers, also known as export finance, middleman and trade credit facility. OCBC's global presence can help expand business overseas, or an overseas company expanding into Singapore. OCBC offers related services such as making payments to other countries, receiving payments from other countries and foreign exchange.
3.0 Location of OCBC Banks in Singapore
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<Source: http://ocbc.com/personal-banking/locate-us.html?type=Sunday>
OCBC Banks are conveniently located in all parts of Singapore such as the north, south, east, west and central areas. It is especially concentrated in the Central Business District to cater to the working individuals as it will be convenient for them to access the services offered by the OCBC. It is also located near residential areas as it will also be convenient for consumers to apply for loans, insurances, and credit cards without having to travel all the way to the Central Business District. Consumers can also pay for their loans and transfer funds without spending much time on their journey. There are several factors that affect the decision of location. They are regional factors, community considerations and site-related factors.
Regional Factors
For regional factors, OCBC has to consider the location of markets and labour factors. They need a skilled labour workforce and Singapore is known to have skilled workers with many having completed their tertiary and university education. These factors may have influenced the decision of setting up OCBC branches in Singapore. The location of markets is also an important factor as the banking services are needed by many individuals especially those who are in need of money to support their finances such as car, education, mortgages, and insurances. Therefore OCBC has made itself conveniently located in the heartland of Singapore as well as in many residential areas throughout the country in order to cater to the rising financial needs of a growing economy. The climate in Singapore is generally tropical and humid all year long. The taxation for companies in Singapore is generally quite low therefore this may have also influenced the decision to operate OCBC branches here.
Community considerations
The second factor is community considerations. This refers to the size of the community, attitude of the community, availabilities of facilities, and governmental incentives. OCBC is known for being the number 1 bank in the world according to Bloomberg 2011 therefore it has a good reputation in Singapore. The size of the community is relatively small as compared to other countries. However, their spending power and income are generally higher compared to other countries such as Malaysia and Indonesia; therefore there is a high demand for banking and financial services in Singapore. Consumers would feel secure about pursuing banking services with OCBC as it is a trusted bank. OCBC has also been awarded with many prestigious awards for their service excellence therefore it has been well received in Singapore.
Site-related factors
The third factor is site related factors. This refers to land costs, suitability for type of business and proximity to airport for firms that need to be located near airports as the executives need to travel frequently. The land costs in Singapore are very expensive therefore OCBC has definitely weighed out all the factors before choosing to operate here. Due to the growing economy of Singapore and it being an affluent country, it is definitely suitable for banks to set up in Singapore as there are a lot of cash flow activities in the country.
4.0 Layout design
OCBC Bank has an office layout. It is grouped according to the workers and spaces to provide comfort, safety and movement of information. As seen in the picture below, the workers are over the counter and there is ample space provided for the customers. Therefore this is an office layout.
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Source: <http://www.plus.com.sg/financial-services/ocbc-bank>
OCBC customer service counters are widely spread and there are many counters therefore making it convenient for customers as they would not have to wait for a long time before they are served. They also have frontline staffs that assist consumers who need help.
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Source: <http://forums.sgclub.com/singapore/ocbc_atm_internet_366719.html>
OCBC provides self-help kiosks at the front of the bank so that consumers can perform several financial services on their own.
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Source: <http://www.mole.my/content/ocbc-offers-loans-buy-australian-properties>
OCBC has consultation rooms where they conduct non-obligatory financial advises and related services.
5.0 Process of creating the services
1. Steps to creating a Higher-Interest Deposit Account (Bonus+) with OCBC Bank
2. Steps in applying for remittance at OCBC Bank
6.0 Ways in which OCBC Bank manages the quality of its services
OCBC Bank has become one of only two non-US banks to win a prestigious Global Visa Service Quality Award 2009, in the Multi-National Acquirer for the Lowest Chargeback-to-Sales Ratio category. The award was in recognition of OCBC's ability to effectively educate merchants on Visa's acceptance procedures, to ensure transactions are properly processed at the point of sale. OCBC Bank has implemented processes to ensure the right merchants are acquired, and that they adhere to transaction acceptance requirements, authorisation and conditions.
Convenience
OCBC has introduced several ways to improve their service experience. For example, they introduced mobile banking by creating an application for smart phones so that users can perform banking services from the convenience of their mobile phone. Users just need to create an online account and they can carry out many banking activities such as making bill payments, transferring funds, investments and related services. They will also be updated about all the changes that have taken place in their accounts. This makes it more convenient and such services are preferred by individuals as it is easy and hassle-free for them. OCBC has also made itself more convenient by setting up branches in many areas throughout Singapore. They have branches in all regions in Singapore so as to cater to the growing financial needs of the community.
Reliability
OCBC is fully committed to integrity and fair dealing by ensuring their corporate governance practices conform to the regulatory guidelines issued by the Monetary Authority of Singapore and the Singapore Exchange Securities Trading Ltd. OCBC focus on making sure that they deliver with zero defects, on time and at all times. They provide the customers with simple, relevant and timely information to help them make informed decisions. OCBC's front-line employees receive regular training and certification to ensure that they are equipped to offer the customers quality advice about suitable products and services. Such measures will ensure that OCBC provides reliable service as they would ensure accuracy and dependability. OCBC had also won the award for being among the world's 50 safest banks by the Global Finance 2011.
Tangibles
OCBC has improved the tangibles such as their environment by continuously keeping it clean at all times and also giving themselves a new look by adding in more customer service counters and booths so as to make themselves more accessible. They also provide non-obligatory financial advises and have consultation rooms within each branch. Therefore this enhances the tangible surrounding which will help to offer a better service experience for the consumers. They have added in the self-help booths so as to make it easier for consumers to perform certain banking services which they are capable of doing on their own. This will speed up the time taken to perform a service and customers can choose between being served by the OCBC staffs or to carry out the service on their own. OCBC has carried out many ways to improve their service quality by taking measures to improve the tangible surroundings. They have made it warm and colourful based as shown in the pictures previously in the layout design section. Such a pleasant atmosphere puts the consumers at ease and thus heightening the level of service experience.
OCBC aims to help individuals and businesses across communities achieve their aspirations by providing innovative financial services that meet their needs. OCBC has values such as teamwork to actively support each other across the organisation. Secondly, they value integrity and ensure fair dealing in their business. They also believe in prudent risk taking to ensure that they do not make losses as this would affect the costumer's perception of their reliability. OCBC also ensures effectiveness by actively investing in infrastructure such as, process improvement such as the introduction of mobile banking and skills of their labour by constantly sending them for courses.
Corporate Social Responsibility
OCBC believes in corporate social responsibility and has tied up with several like-minded companies to go beyond donating for the environment but also to ensure they take the initiatives to lessen the carbon footprint that they create while going about their businesses. Such measures will be well received by consumers and they will see that OCBC is indeed responsible and caring to the environment. They will be pleased with their efforts and more likely be interested to engage in their services.
