Customer And Supplier Requirements - Banking
Customer And Supplier Requirements - Banking
Customer and Supplier Requirements of First National Bank of Arizona
As stated in the Results Training and Development web site, “Survival in today’s business world depends on a solid customer base and front-line employees who know how to exceed customers’ expectations”. To achieve successful customer service, the business must have the involvement, support, and commitment of the entire organization. First National Bank of Arizona’s mission statement relates to the preceding sentence. It reads, “To empower our employees to do an outstanding job for our clients, our community and our shareholders by consistently providing innovative, secure and quality financial services and solutions” (First National Bank of Arizona, n.d., para. 1). Each department within the bank has their own system in dealing with internal as well as external customers; for example, the retail branches are more sales-focused where the operations department is data-focused, however, both of these departments are required to work in synergy to create positive experiences for the customers. This paper will focus on how internal and external customer and supplier requirements are met within a specific area of First National Bank of Arizona: the Commercial Lending department.
The Commercial Lending department consists of three teams that include a Loan Specialist, a Financial Analyst, an Underwriter, two Loan Officers and one Team Leader. The Loan Specialist handles the administrative work. The Financial Analyst and the Underwriter position is similar in the degree that they both analyze business and personal financial statements, tax returns, owners and management, market conditions and industry conditions for a business to determine if the possible customer is credit worthy. The reason for the separate titles is because the Underwriter usually has many more years of experience in analyzing credit than a Financial Analyst does. The Loan Officer is the business builder of the team. It is this person’s responsibility to generate new business and maintain customer relationships once they are obtained. All of the mentioned designations report to the Team Leader whose primary duties are to bring in referrals, to sustain the relationship with existing customers, and to keep the entire team running smoothly. In order to preserve jobs, the entire team has to depend on both internal and external customers of the Commercial Lending department.
According to the book Operations Management: Strategy and Analysis, the notion of internal customers applies to all parts of a business and enhances cross-functional coordination between separate departments. This statement is true when applied to the Commercial Lending department of First National Bank of Arizona. Many of the employees who work in the Commercial Lending area do not have experience in other areas of the bank. As a result, the lending teams need to rely on the knowledge and expertise of other departments to build extensive relationships with new borrowers. These departments include: Merchant Services, where business customers can set up credit card accounts; Retail Banking, where individual and business customers can open demand, savings, money market and investment accounts; Treasury Management, where individual and business customers can set up lock boxes, off-site deposit, or internet banking; and Mortgage, where individuals can apply for a mortgage or a home equity loan or line of credit. These departments are who the lending area must respect and treat as their customer, otherwise the borrower may take their business elsewhere.
Suppliers are the most significant component to the Commercial Lending department as they are the people who produce potential borrowers for the teams. The Loan Officers and Team Leaders do have a responsibility to cold-call businesses; however, referrals through suppliers are the most beneficial and efficient route to procreate bankable customers. Suppliers consist of multiple categories of people including, but not limited to: existing borrowers and customers who are loyal and happy with the bank, an outside network of business professionals (Certified Public Accountants, Lawyers, Brokers, Contractors, and other lenders from various financial institutions), the Chief Executive Officer of First National Bank of Arizona, and internal departments of the bank (Small Business Lending, Merchant Services, Retail Banking, Corporate Marketing). Although the Lending Department depends and works with internal customers and suppliers on a daily basis, they also need external customers to function efficiently.
“External customers who are happy with the service they are receiving will recommend the organization to others. They are also likely to have a certain degree of loyalty and satisfaction with the company, which would deter them from going to a competitor” (Weston, 2003, para. 2). The Lending Department of First National Bank of Arizona lives and abides by similar guidelines when dealing with any outside contacts. External customers are numerous and can range from a multitude of diverse levels. The initial level of what is considered an external customer is the bank’s individual and business deposit account holders. Other integral external customers are individual and business deposit account holders of other bank’s and existing/potential borrower’s employees, wives, husbands and children. The Lending Department also has contact with appraisers, the Risk Management Association, the American Bankers Association, couriers, police officers and detectives, security companies, credit reporting companies, law firms, the Small Business Administration, other financial institutions, and many others. While the Commercial Lending department has a systematic method of the continuous recruitment of customers, management is constantly evaluating new concepts to benefit the bank and it’s customers.
To continuously exceed internal and external customer’s expectations of the Commercial Lending area, employees and management should identify certain requirements. All employees, management included, should be able to “recognize their customers – both internal and external” and “identify what the internal and external customer expectations” are (Results Training and Development Systems, 1998, para. 2). Management needs to create an environment where service levels can excel and to understand that “the more educated employees become, the more apt they are to suggest improvements….recognizing that employees’ enthusiasm and motivation are the key to a company’s ongoing success” (Bidart, 1999, para. 2).
The internal and external customer and supplier requirements for the Commercial Lending department of First National Bank of Arizona consist of a multitude of different entities. All of the mentioned customers and suppliers are detrimental to the success of the bank. However, employees and management must still recognize the importance of what the customer’s expectations are in order for the bank to make the most of their money and to remain prosperous.
Results Training and Development Systems. 1998. Retrieved May 7, 2003, from http://www.resultstraining.com/service.htm.
First National Bank of Arizona. (n.d.). Retrieved May 7, 2003, from http://www.fnbaonline.com/about.asp.
Weston, Tom. (Jan. 2003). Cutting Costs Through Better Customer Service. Retrieved May 7, 2003, from University of Phoenix online library: http://www.proquest.umi.com/
Bidart, Martin. (Aug. 1999). Teamwork Fosters Individual Input to Improve Manufacturing. Machine Design. Retrieved May 7, 2003, from http://www.findarticles.com/
University of Phoenix. (Ed.). (2002). Krajewski, Lee J., Ritzman, Larry P. Operations Mangement: Strategy and Analysis. [University of Phoenix Custom Edition e- text]. Boston, MA: Pearson Customer Publishing. Retrieved May 3, 2003, from the University of Phoenix Web Site: https://mycampus.phoenix.edu/secure/resource/resource.asp