The Strategic Role of Operations Management in Financial Institutions
Operations management in banking strategy plays an increasingly pivotal role in setting the stage for companies to perform wide-ranging operations functionalities such as asset management and service delivery to customers. In particular, operations management denotes the process underlying the planning, control, and supervision of the production and manufacturing activities (Hitt et al., 2016). Therefore, an operations manager ensures the effective delivery of services and supervision of people and commodities (Hitt et al., 2016). From the previously mentioned analogy, the role of operations management is indispensable in any organization that seeks to accomplish successful feats and stay ahead of the competition in the business arena.
Improving Customer Service Strategy Through Effective Operations Management
The operations management team in Banks may enable their firms to achieve its operations management in banking strategy and customer service goals in several different ways. From the present scenario, it is clear that the operations management team at the bank can help overcome the dilemma at hand by creating extra time to serve more clients through telephone customer care. The customer service strategy increasingly focuses on improving the customer experience and service delivery to the customers at the bank. In seeking to accomplish this strategy, the OM team should procure extra computer and telephone equipment and telephone lines to aid the bank in serving more customers during their operational hours. Nonetheless, serving more customers at the bank would also require the bank to hire more customer care representatives to improve customer service delivery at the bank.
Digital Transformation in Banking: Enhancing Online Presence
The operations management team at the present bank should also oversee the advancement of the bank’s online presence by making necessary improvements on the bank’s website. The fast-paced economy in the digital era has led to increased competition between businesses operating in different industries. To date, e-commerce has increasingly become the norm for the sale of commodities and services. Customers nowadays prefer to transact online at the comfort of their homes. Making necessary advancement techniques to the bank’s online functionality would create a sound platform to provide services and support to its vast clientele. Advancing the bank’s online functionality by developing the bank’s app on each of the leading mobile platforms would create more room for customers to get instant access to the bank’s financial services. This will also reduce service delivery delays stemming from long queues at the bank during operational hours.
Maximizing Value with Service Bundles in Banking Strategy
What Are Service Bundles in Banking?
The provision of service bundles has become the new technique used by companies and banking institutions worldwide to enhance their relationship with clients. Bundled services refer to a wide array of services issued to customers as bonuses by banks to attract more customers and create a stronger and lasting bond with clients.
How Banks Can Use Service Bundles to Achieve Customer Service Goals
The operations management team should oversee the provision of strategic bundled services to their customers to achieve their customer service strategy over time.
Examples of Strategic Banking Bundles
Some of the services that a Bank should offer its customers include:
- Minimal fees on the platinum level
- A predefined set of accounts
- Rewards for opening multiple accounts
- Rewards for increasing savings
- Cashbacks for honoring financial obligations in time
Using Operations Management to Deliver Value Through Bundles
Effective use of resources is the best mechanism for the operations management team to accomplish corporate goals (Hitt et al., 2016). The provision of bundled services by any Bank harbors the potential to strengthen its operations management in banking strategy by improving relationships with customers.
Reducing Customer Friction Through Personalized Financial Services
Additionally, providing such services also helps relieve built-up tension between the firm and its customers. The bank’s OM team should also provide consultations to clients at face value. This is because customers prefer to gain access to financial advice at face value instead of speaking to an online customer care agent.
Creating In-Person Value: Face-to-Face Customer Care Options
One of the most effective ways the present bank could achieve customer service is by creating cafes and outdoor customer care services at face value that provide a comfortable environment to advise customers about their finances.
💡 Understanding Financial Options:
Curious about how banking institutions balance risk and returns for customers? Explore the key differences between insurance and investment fund types. This comparison helps clarify how financial products support long-term strategy.
Key Operations Management Decisions for Enhancing Banking Efficiency
Operations management team oversees the planning, control, and supervision of service delivery, employee, and production of commodities in a bid to meet the goals and expectations of the firm and clients, respectively. With that said, the ability of major Banks to achieve its customer service strategy will increasingly depend on the decisions made by its OM team. One of the most important decisions that banks should make is coming up with new techniques for delivering its services to clients (“10 Critical Decisions of Operations Management”, 2016). In particular, the bank should decidedly opt to provide quality services to its customers over the long term. Clients are critical to the bank’s survival and success throughout its operations. As such, it would be imperative for the bank to provide quality services that create satisfied customers.
The bank’s OM team should also decide on the strategy and layout design of the bank to meet its goals and improve service delivery to its vast clientele. Redesigning the layout of an organization is one of the ways to improve the provision of services (“10 Critical Decisions of Operations Management”, 2016). Nonetheless, the bank’s should also come up with sound decisions on how to provide streamlined services, create a return clientele, and provide cost-effective services to the clients.
Recommended Changes to the Bank’s Operations Management Strategy
Extending Banking Hours and Optimizing Staffing Levels
The operations management team in the Bank experiences the challenge of conforming to the bank’s new customer service strategy to improve its service delivery. In the face of ever-increasing competition for clients in the banking industry, it behooves the bank to adopt new operations management changes in a bid to stay ahead of the competition. Some of the changes I would recommend include redesigning the layout design of the banking premises to improve customer contact and increase the speed of service delivery during operational hours. From the scenario, it is also clear that customers request the bank to stay in operation for more hours. At this request, the bank will have to hire more customer representatives to increase customer contact.
Investing in Technology and Digital Banking Infrastructure
The banks would also have to purchase more computer and telephone equipment to enhance communication with customers and improve service delivery. It may also be imperative for the bank to increase its online functionality to reduce congestion in the banking premises, as part of its broader operations management in banking strategy aimed at improving service delivery.
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