Criteria for the Country Awards

Core Belief:
“We believe that a well run retail bank is one that demonstrates a long term, sustainable, profitable franchise with the customer as its core proposition.”
The scorecard for our Retail Banking awards programme is predicated by the belief statement above.

The Excellence Scorecard is used to evaluate banks on both a country and a regional basis for the Excellence in Retail Financial Services Programme. It is the backbone of the evaluation process and was developed with an eye on one of the key objectives of the programme, which is to create an instrument that is accepted by the player in the retail financial services industry as a viable, objective and representative measure of a bank's performance across multiple areas.

Keeping that in mind, we have made our decision-making process as transparent as possible to help banks understand where they stand as a sustainable retail franchise. Through the scorecard, banks also have the opportunity to re-examine their own products and processes.

Beyond providing us with an opportunity to evaluate and compare banks in the Asia Pacific, Central Asia and the Gulf Region using a standard measure, the scorecard serves as a source of benchmarking and carrying out detailed gap analysis of banks. It is thus a useful tool for banks to evaluate how well they are performing, in term of each of their attributes relative to their peers.

Balanced Annual Scorecard for the Country Awards Assessment

Dimension Weight Indicator (all figures pertain to retail banking)
Value of Franchise:
The brand value that this bank enjoys in its market place.
10% - Market share in core retail deposits
- Growth in core retail deposits
- Growth number of in retail banking customers
- Number of respondents in BankQuality.com who would recommend the bank to their friends
Financial Performance:
We believe that banks should not just have good customer service but be financially strong.
10% - Growth in total revenues
- Growth in operating profit
- Total assets
- Return on assets
Sustainability:
We give weightage to a banks’ stability in its own market place by understanding how much of its business is core and recurrent.
15% - Net interest margin
- Portion of income which is recurring
- Fee income
- Cost to income ratio
Strategy:
A bank that doesn't have a strategy cannot possibly be expected to compete effectively in its market place. We look for the ability of banks’ own management to describe its strategy to us.
3% - Depth of reporting in the Annual Report
- Clearly conceptualised strategy
- Quality of the submissions made to our questions
Sales Capability:
A bank's sales capability is based on not just service quality but also on the way in which its staff are incentivised remunerated to look after you, the customer.
15% - Sustainability of sales staff incentive schemes
- Market share in mortgages
- Market share in credit card turnover - Number of genuinely new products introduced in the year under review
- BankQuality.com feedback on customer facing staff
- BankQuality.com feedback on sales staff satisfaction at branch
- BankQuality.com feedback on sales staff satisfaction at call center.
Risk Management:
A safe bank is a good bank. We look at the banks’ balance sheet to understand how strictly it manages its loans to customers.
15% - 30,60,90 days delinquencies
- Non performing loans ratio
- Size of recovery teams as a ratio of the total retail loan book
- Performance ratios of debt recovery staff
Process, Technology and Efficiency:
The way in which your bank is able to serve you efficiently is based on its backend technology as well as its business process. We also take into account how you as a customer feel about its service.
10% - Time to market for a genuinely new product
- What the bank has in its core banking and customer information systems
- Turn-around time for mortgage and credit card approvals
- Customer satisfaction on efficiency of branch level service
- Customer satisfaction on efficiency of call center service
- Customer satisfaction on efficiency of ATM service
Penetration and Availability of Distribution Channels:
A good bank is one that is accessible to costumers 24 x7 hours in a day and with the level of convenience and ease of use that costumers have come to expect from any service provider.
10% - Proportion of self-service transactions as a % of total transactions
- First contact resolution as a % of total transactions at the call centre
- Proportion of active bill payment users in internet banking
- Proportion of active mobile banking users
- Number of branches as a % of total branches of all banks in the country
- Number of ATMs as a % of total ATMs in the country
- Revenue generated through internet banking
- BankQuality.com customer feedback on branch experience
- BankQuality.com customer feedback on call center experience
- BankQuality.com customer feedback on internet/mobile channel experience
Staff Skills:
We believe that a well-run retail bank should be a combination of highly competent leaders as well as young, more costumer centric staff.
5% - Proportion of senior executives with more than 10 years of service in the bank/industry should be healthy but not overwhelming
- Attrition rates (sales staff)
- Attrition rates (non-sales staff)
- BankQuality.com feedback on exceptional staff (employee) experience
Ethical Banking:
We encourage banks to publish their commitment to costumers and stick by them.
2% - Published ethical services guidelines/ code of   conduct
- Depth of social corporate responsibility
Overall Customer Feedback:
We look at the over rating achieved by this banks in BankQuality.com
5% - Average rating of this bank in BankQuality.com (over customer assessment to be introduced in 2014)

The Excellence awards programme is only a small part of the big picture. It is from these processes that we develop our strategic review of the products and services. If you would like to find out more about our gap analysis, please feel free to contact us.

The focus of the programme is to recognise the banks that have been simplifying their processes and launching innovative products. These initiatives are ones that work and have an impact on the bottom line of banks as well as the industry. To maintain our focus on overall operational excellence and to determain the best retail bank in the Asia Pacific, the Central Asia and the Gulf Region, we do not include the Value of Franchise score in the regional scorecard. This is because the contributing factors to consumer perception are unique to each country and cannot be compared across the region. Players can achieve a maximum score of 48 points in the country ranking and the regional ranking.

The scorecard consists of ten dimensions with 37 indicators. Only in some areas does size matter. We are cognisant that smaller banks may be handicapped in some areas, so only 5% of all indicators favour larger banks. Most of our indicators are standardised figures, and we allow a fairly equal playing field between large and small banks. The ten dimensions are:

- Perception of the bank among peers and in the marketplace
- Outstanding annual performance of the retail banking unit
- Sustainability over a long period of time and across economic cycles
- Transparency and accountability of the business model
- Clear ethical guidelines stating how business is dome with the customer
- Clear sales and execution skills at the product level
- Rigorous risk management capabilities
- Superior business and operational processes and technology
- Strong penetration and efficiency of distribution channels
- Focus on developing human recources both qualitatively and quantitatively

As we continue to develop and refine our scorecard, we hope to present to the retail financial services industry a better and more accurate instrument that they can use to gauge their performance over a certain time period against that of their peers and competitors across national and regional markets. Ultimately, the Excellence programme is intended not only as an awards programme, but also as a reflective opportunity. In that sense, the programme - and the scorecard - have been developed to enable participating retail financial services institutions to grow, evolve and expand.

Related Event:

            16th November 2016 | Dubai, UAE
 
Important Links:
Retail Banking Working Group
Bank Technology Monitor
The Transaction Banking Working Group
   


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