The Ops Shop

One of the most critical functions in a bank, yet much neglected, is the back office function. The Ops role begins once a prospect has decided to set up his account with the bank and applies for the same. And the customer experience, whether pleasant or otherwise, is really dependent on the Ops shop. The following broadly covers the different activities and services done in an Ops shop:

a. Processing the application
b. Setting up the account
c. Recording the customer details
d. Communication to / with the customer
e. Delivering account related documents etc. (sometimes called the "Welcome Pack")
f. Timely and accurate recording of transactions
g. Accurate computation of interest, charges etc.
h. Processing customer transactions / requests
i. Reconciling customer and other accounts
j. Providing information, statements, certificates
k. Managing complaints (if any)
l. Safe storage & handling of documents
m. Processing account closure (natural or otherwise)
n. Return of documents

Some of the support functions / systems critical for a good Ops shop are:

1. A comprehensive and robust system connected across all branches
2. Multiple channels for capturing customer requirements (eg. Internet, call center, branches, snail mail etc.)
3. A strong service provider for printing & courier with tracking
4. A high quality data capture / verification shop
5. A good storage service provider
6. A good customer management software integrated across channels

The different areas of focus in any good ops shop are - Quality, Speed, Service, Risk management and Cost Management. More about these in part 2 of this blog.

Besides sincere, dedicated, well-trained staff, a good ops shop also needs periodic reviews and enforcement of a strong discipline across the bank. It will be a disaster if the Ops shop is treated as a factory which has to process anything that this thrown their way without complying with the process or order that has been preset.

Quite often it is observed, especially amongst newly set up banks, that in the quest for speed, the Ops shop is poorly organised / supported. It is felt that once customers are acquired, it will be easy to manage them. Some banks make a mistake of loading the ops function with sales goals. It is only a question of time for customers to be disillusioned by the marketing gimmicks if they are not backed by a strong dedicated and focused Ops shop. It may be a good idea to spend more time in creating a strong platform before launching any business. Alternately, a pilot run when the robustness of ops is tested will be a good option.

It goes without saying that a well run Ops shop can do great wonders for a bank in terms of ensuring customer loyalty, references etc. It can also enable a bank to withstand competition on the pricing front as customers will prefer a reliable bank who charges slightly more rather than go only for lower pricing. It can attract faster acquisition and better profitability on the long run.

A well run Ops shop can give a bank a strategic advantage over competition.

I would love to hear your views on this blog. Please feel free to leave a comment on the blog or send me a mail at vish.sesh@gmail.com and I will quickly respond.