| 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 |
8% |
- Market share in core retail deposits
- Growth in core retail deposits
- Growth number of in retail banking customers |
| Financial Performance |
20% |
- Growth in total revenues
- Growth in operating profit
- Total assets
- Return on assets |
| Sustainability |
13% |
- Net interest margin
- Portion of income which is recurring
- Fee income
- Cost to income ratio |
| Strategy |
3% |
- Depth of reporting in the Annual Report
- Clearly conceptualised strategy
- Excellence submissions made |
| Sales Capability |
10% |
- Cross sell ratio
- Market share in mortgages
- Market share in credit card spend
- Number of genuinely new products introduced
- Revenue generated through internet banking |
| Risk |
20% |
- 30+ days Delinquencies
- Non performing loans ratio
- Gross write-off
- Recovery rate |
| Process, Technology and Efficiency |
8% |
- Time to market for a genuinely new product
- Core banking system and customer information systems
- Turn-around time for mortgage approval and credit card |
| Penetration and Efficiency of Distribution Channels |
10% |
- Proportion of self-service transactions
- First contact resolution at the call centre
- Proportion of active bill payment users in internet banking
- Proportion of active mobile banking users
- Number of branches
- Number of ATMs |
| People Skills |
5% |
- Proportion of senior executives with more than 10 years of service
- Attrition rates (sales staff)
- Attrition rates (non-sales staff) |
| Ethical Banking |
3% |
- Published ethical services guidelines/ code of conduct
- Depth of social corporate responsibility |
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. |
