Financial Services Organization Research Articles

Technology Strategy-Innovating for Growth of Citibank

IntroductionANZ is an international banking and financial services organization based in Melbourne, Australia. It builds itself through rapid market expansion and acquisitions over the years to become one of the AsiaPacific Region's largest financial institutions. ANZ takes pride in being -a different addressing more active roles in the community and the environment it serves. To date, ANZ Group has operations in 32 countries and serves more than eight million customers worldwide, with principal markets in Australia and New Zealand and the growing markets of the Asia Pacific Region, Middle East, Europe and the US(Marketline, 2013).Its unique portfolio of specialized businesses offers a full range of financial products and services, including mortgages, credit cards, corporate lending, asset finance, and more sophisticated investment banking products. ANZ has positioned itself as one of the leaders in technological advancements and innovations in the banking industry. Its technology vision is -Automated, seamless, straight -through processing, E-banking with a human face. ANZ technology infrastructure enables complex integration like CRM system to operate effectively.ANZ's CRM SystemANZ's CRM system integrates various business units, processes, and managerial skills. Its CRM system is one tool to maintain a competitive position in the market especially in Internet Banking services. CRM system enables ANZ's Internet Banking to become one of core strengths and expand its market share since it started operating in 2010.CRM system connects ANZ's business partners. The connectivity enables a systematic operation between the front office workers and support office workers. Sharing of information and knowledge between all business units facilitates department to department communication and e-customer service. On e-customer service, a phone-based help desk is open 24/7. ANZ keeps a large database of its customers and uses this database to develop marketing opportunities.CRM Works in a Loan ApplicationAt ANZ, the integration of front office and back office functions enables quick turnaround time for customers. On-line processing of loans is one of the ways that ANZ sustains its competitive position. Personal loan applications are completed on-line. A loan application made at any front office is processed at the back office subsidiary. Background checks on customers via the internet are completed with the Credit Bureau to avoid delays with loans processing(ANZ Bank, 2013).CRM is also related to knowledge management which enables effective problems solving and decision making. It allows loan officers to identify potential defaulting and high risk customers and do customer profiling which in turn increases staff productivity. Employees are able to close more deals with increased customer satisfaction, loyalty and retention.An effective collaboration and management of people, processes, culture, and working environment is essential to implementing a successful CRM system. The home loan case study demonstrates how the integrated CRM system works in ANZ. Effectiveness of the process reflects participatory interactions among business units in ANZ in carrying out a single task (Deogratias, 2012).CRM and Knowledge Based ManagementEnterprise Knowledge Portals (EKP) are the doorways into many knowledge management systems. ANZ etransformation vision directs the bank in a very important route using its technology capabilities to offer employees and other users' better chance to create and share information. This can be done through its intranet server where employees exchange and share information. In Australia and New Zealand, ANZ has recently launched new products like Money Manager, a money managing program that uses social networking sites such facebook, as a means whereby clients can share information with the bank or others.Digital ANZ BankANZ has introduced a major investment program. …

Conduct risk: towards a model for assessment and remediation

Widespread misconduct in Financial Services organisations prior to and since 2008 has put organisational culture centre stage in the minds of regulators. There is no one definition of Conduct Risk across the regulatory requirements for Financial Services organisations. This paper presents a research in progress development that provides the various groups and stakeholders in an organisation with a shared conceptualisation of what conduct culture is, along with a common language to communicate canonical accepted behaviours. The paper also describes an evaluation and diagnostic tool for organisations which has two primary components (1) a Conduct Risk Model (CRM) and (2) the Conduct Risk Diagnostic System (CRDS). The CRM is designed to comprehensively capture each of the primary domains of conduct risk in a detailed taxonomy and ontology. The CRDS diagnostics are designed to assess, measure and supervise the conduct risk areas and domains and to provide decisional guidance.

Linking Innovation Measurement to an Implementation Framework: A Case Study of a Financial Services Organization at the Front End of Innovation

Many organizations find themselves at the "front end of innovation", that is, they know they need to do something, but they are not quite sure what to do. Through our research, we have learned much more about the practice and implementation of innovation. For example, we have discovered that innovation is most successful if there is leadership support for a culture of innovation combined with systematic approaches to embed and reinforce innovative behaviours. This article outlines a case study of an organization in the financial services industry who began their innovation journey a number of years ago, and reports on the progress of a sustained and deliberate approach. This research highlights the relationship between an innovation cultural assessment model and its utilization as a framework to manage the implementation of activities to support the development of an innovation approach in a context specific scenario. A case study methodology was adopted that utilized an innovation culture model as a measurement tool. By actively observing the organization, including two cultural assessments over a 4-year period, the findings indicate that an innovation assessment model is useful as an approach to advance the innovation agenda in the organization. In this sense, the research findings are of interest to academics looking to conceptualize a broader implementation framework that is closely associated to the innovation measure associated with the organization. As well, practitioners looking to advance their innovation platforms will find the framework useful as they plan initiatives aimed at advancing their innovation agendas.

Recruitment and Selection Devices in Financial Services Companies: Exploring the case of Chilean Banking

The article deals with the problem of the role of ‘social’ devices at the time of producing and reproducing organizational behavior, taking the case of recruitment and selection processes in financial services organizations in Chile and the UK. Based on 42 in-depth interviews in Santiago, London and Edinburgh, and building on science and technology studies and the concept of device the article aims to understand how recruitment and election mechanisms are adopted and legitimated in organizations. Analysis suggests that recruitment and selection mechanisms connect technical and moral elements, allowing managers to deal with uncertainty and carry out organizational reproduction. However, devices in Chile and the UK differ in the modes that connect technical and moral elements.

Anomaly Detection in Complex Real World Application Systems

The ability to understand application performance and pro-actively manage system state is becoming increasingly important as infrastructure services move toward commodisation models such as cloud computing. The complexity of systems being monitored in large corporations means that detailed component-by-component analysis and/or simulation of behaviour can be impractical. The key problem is to find practical systems management approaches that enable behavioural profiling and detection of anomalous events in complex real world systems. This paper details a system performance measurement method that enables slowdown event detection and characterisation of application behaviour. These measurement techniques can underpin IT service management frameworks such as the IT Infrastructure Library. This enables business to manage the stability and performance of the end-user experience in order to support productivity and effectiveness of business processes. This paper examines anomaly detection efficiency in two case studies using six detection models in a large Australian financial services organisation. The whole of service anomaly detection methodology proposed in this paper was found to be more efficient than alternative individual transaction and whole of service models.

Emotional Intelligence and Leadership in a South African Financial Services Institution

The purpose of this study was to determine whether there is a relationship between emotional intelligence and leadership effectiveness among senior leaders in a South African financial services organisation. The sample consisted of 973 participants. A convenience sample was used because the leaders were part of a strategic organisational initiative that included the completion of the measurement instruments used for the current study. The participants completed the Bar-On EQ-i, a measure of emotional intelligence, and the leadership effectiveness data were obtained from an organisation specific Multi-rater that accessed self-ratings, peer and subordinate ratings, as well as manager ratings in terms of leadership behaviours linked to organisational worldviews of leadership effectiveness. Partially due to the large sample size, the results showed that there were statistically significant correlations between emotional intelligence and the leadership variables as measured for the leaders, but the prediction value between these variables was not practically significant.

Emotional Intelligence and Leadership in a South African Financial Services Institution

The purpose of this study was to determine whether there is a relationship between emotional intelligence and leadership effectiveness among senior leaders in a South African financial services organisation. The sample consisted of 973 participants. A convenience sample was used because the leaders were part of a strategic organisational initiative that included the completion of the measurement instruments used for the current study. The participants completed the Bar-On EQ-i, a measure of emotional intelligence, and the leadership effectiveness data were obtained from an organisation specific Multi-rater that accessed self-ratings, peer and subordinate ratings, as well as manager ratings in terms of leadership behaviours linked to organisational worldviews of leadership effectiveness. Partially due to the large sample size, the results showed that there were statistically significant correlations between emotional intelligence and the leadership variables as measured for the leaders, but the prediction value between these variables was not practically significant.

Consolidated Audit Trail: Strategic planning and best practices

The US equities and options regulators have long sought a ‘one stop’ research solution to analyse and investigate events in the market or perform general reviews. The Securities and Exchange Commission’s Consolidated Audit Trail (CAT) is the industry’s solution and it is designed to capture trades from the initial order through to final client delivery. The ongoing challenge for financial services firms is that there are many types of business, technical infrastructure and booking models within the equities and options world that make it difficult to create a specification to capture diverse information appropriately. Firms must understand exactly how their businesses align with CAT requirements and conform accordingly. As financial services organisations prepare to invest in the people, processes and technology necessary to comply with CAT requirements, key focus areas will be data and control infrastructure. Whether your technical solution involves the creation of a repository for data centralisation or managing delivery from multiple silos, its success relies upon a mature and resilient control framework executed to a consistent standard throughout. A strong control framework gives a firm the ability to empower their compliance functions, business lines and IT groups to react to developments in the regulatory landscape and implement change effectively. Clear and consistent control is also crucial for senior leadership to prioritise product development alongside these mandated needs. To implement the required changes, a detailed project plan, dependency analysis and committed milestones should be defined to align the multiple stakeholders across a financial services organisation and provide a path to success. A fully compliant CAT solution will depend on aligning systems, cleansing customer data, normalising order and settlement information. It will also require matching the CAT report against the actual orders as well as executions and allocations within authoritative data sources, along with any other regulatory reports derived from these systems. As a final note, while CAT compliance is a required effort, it is also a great opportunity for firms to approach the change strategically. The people, process and technology transformation required for CAT will allow organisations to invest in remediating or enhancing data infrastructure and to evaluate legal entity utilisation and trade booking models. It will also enable firms to review and improve their operating models and procedural documentation, as well as integrate regulatory reporting with other in-house reports and workflows.

National corporate governance codes and IT governance transparency

The main purpose of this paper is to explore the influence of national corporate governance codes on IT governance transparency and was carried out by comparing the IT governance disclosure requirements across two jurisdictions Belgium and South Africa using the study by Huygh et al. (2017). The latter focused on these two countries since the South African corporate governance code King III (2009) contains detailed IT governance disclosures, while the Belgian corporate governance code Lippens (2009) does not. Huygh et al. (2017) found that listed South African financial services organizations were more concerned with disclosing their IT governance practices than their listed Belgian counterparts and that this observation held across the board for all four disclosure categories within the IT governance transparency framework. Further analysis at an individual item-level also found that many of the items for which the South African respondents reported frequently could be directly traced to the IT governance principles and recommended practices contained in the King III (2009) corporate governance code. Huygh et al. (2017) attributed the higher IT governance transparency of the South African respondents to the specific reporting requirements of their national corporate governance code King III (2009). Hence the recommendation that IT governance disclosures be proactively encouraged via national corporate governance codes to further enhance transparency.

Managing employee well-being: A qualitative study exploring job and personal resources of at-risk employees

Orientation: Job and personal resources influence the well-being of employees. Currently, limited information exists in literature surrounding the experience of these resources in employees identified as at-risk of burnout.Research purpose: To investigate the experience of job and personal resources from the perspectives of employees identified as at-risk of burnout.Motivation for the study: Empirical evidence on the integrative role and influence of job and personal resources on the well-being of employees in the South African context is currently limited. Attaining a better understanding of the manner in which at-risk employees experience resources can empower organisations to actively work towards creating an environment that allows for optimal employee well-being.Research design, approach and method: A phenomenological approach was taken to conduct the study in a South African-based financial services organisation. A combination of purposive and convenience sampling was used, and 26 employees agreed to participate. Semi-structured interviews were used to collect data, and data analysis was performed through the use of thematic analysis.Main findings: Employees identified as at-risk of burnout acknowledged both job and personal resources as factors influencing their well-being. Participants in this study elaborated on received job resources as well as lacking job resources. Information was also shared by participants on personal resources through describing used personal resources as well as lacking personal resources.Practical/managerial implications: Knowledge gained from the study will contribute to empower organisations to better understand the impact of resources on the well-being of employees, and allow organisations to adapt workplace resources to ensure adequate and appropriate resources to facilitate optimal employee well-being.Contribution: This study contributes to the limited research available in the South African context regarding the experience of job and personal resources from the perspective of at-risk employees. The study may also enable organisations to create a workplace that is more supportive and empowering with appropriate resources to deliver on expected demands.

Operations sustainability maturity model: preliminary findings of financial services in developing and developed countries

PurposeThis paper aims to develop and apply a measurement instrument to identify a comparative metric that identifies operational sustainability maturity across sectors and countries.Design/methodology/approachUsing structured interviews to complete the operations sustainability maturity model (OSMM) in financial services organisations, data were compared to show differences for developed and developing countries.FindingsThe preliminary findings indicate that there is no significant difference in the sustainability maturity index between countries. However, size and profitability are strong indicators of sustainability maturity.Research limitations/implicationsThese findings represent preliminary findings drawn from the financial services sector in a limited number of countries. Expansion of the data set will give greater confidence of results.Practical implicationsThe OSMM is an empirical tool used to collect data that allows statistical evaluation of sustainable strategies used by firms in various sectors and in different countries.Social implicationsSustainability is of critical importance in the economic development of all countries. The OSMM embraces fiscal, operational and environmental considerations. The research gives new insights to alternative strategic imperatives.Originality/valueWith increased awareness of organisational sustainability, academics have developed a number of tools, approaches and strategies to ensure commercial viability. However, few corporations have successfully institutionalised ongoing sustainability. OSMM is unique. Its wider application to embrace additional industry sectors and countries will bring new insight to strategic intent.

Performance of Foreign Exchange Operation of Private Commercial Banks: A Case on Southeast Bank Limited

The banking sector is participating in many events on a daily basis. Conversely, the process of banking is become faster, simpler, and more universal all at the same time. They're constantly coming up with various ideas and products to meet customer demand. Banks and other financial services organizations all search for service improvement opportunities in order to gain a competitive advantage in the financial sector. As a result, every person has a banking procedure they should know about. In accordance with their goal, Southeast Bank Limited believes in building together towards tomorrow. To accomplish the goal of getting more customers, the bank demonstrates excellence in all stages while also fostering continual development. With this fast changing competitive climate, banks' strategic plans and networking will help them keep pace with the competition. The overall objective of this research had represented the foreign exchange performance of import, export and foreign remittance of Southeast Bank Limited. This paper examined about import, export and remittance performances have been analyzed and find out some problems relating to foreign exchange activities. Finally this research finished with some possible recommendation and concluding remark of the study.

KRISIS KEUANGAN EUROZONE: Studi Ekonomi dan Perbankan Islam

Crisis arising from the lack of liquidity with asset bubbles, causing the government borrow loans to develop the concept of welfare state that once popularized in the eurozone. As a result, the loan continues to increase without any real investment coupled macroeconomics. In Islamic financial institutions, transparency and accountability of financial institutions strengthen the international financial system, because the assets contributed to the country’s financial stability. Banking institutions continue to be supervised and even cooperate with initiatives to strengthen stability by building cooperation supervision such as: the Accounting and Auditing Organization for Islamic Financial Institute, the Islamic Financial Services Organization, the International Islamic Financial Market and Islamic Rating Agency. These institutions will strengthen the international Islamic financial architecture and promote the stability of the larger Islamic finance.

ITMA - IT Integration in Mergers and Acquisitions

This study aims to identify key information technology (IT) integration issues experienced during mergers and acquisitions (M&A) in the financial services sector. The study proposes an approach to increase the efficiency of such transactions. A comprehensive literature review and case study of a leading financial services organisation is undertaken, comprising of interviews with high ranking IT and business leaders. This research identifies the blueprint for a best practice framework, which Chief Information Officers (CIOs) and IT practitioners can employ to guide execution of their own M&A integration programme.

How internal marketing drive customer satisfaction in matured and maturing European markets?

This study examines the indirect effect of internal marketing, via cross-functional goal compatibility, on customer satisfaction at differing levels of salesperson cross-functional connectivity, across matured and maturing market contexts. Using data from salespeople in a large financial services organization operating in matured Central European and maturing South and Eastern European markets, the study finds that the effect of internal marketing on customer satisfaction is mediated by cross-functional goal compatibility in both markets. In addition, the results show that at high levels of cross-functional connectivity, the effect of goal compatibility on customer satisfaction is strengthened in maturing markets. The theoretical and practical implications of these findings are discussed.

The Potential of Labour−Management Partnership: A Longitudinal Case Analysis

AbstractIssues of labour−management cooperation have long attracted the attention of management researchers, practitioners and policymakers. In Britain, the most recent wave of interest has been under the rubric of labour−management partnership, normally concerning the development of cooperative relations between unions and employers. A recurring theme is that cooperative relations can be difficult to develop and sustain, especially in liberal market economies. This paper advances the debate by examining the dynamics of labour−management partnership within the context of a British financial services organization over a 25‐year period. Drawing upon empirical case study data collected between 1990 and 2014, we assess the dynamics of the relationship between a building society and the recognized staff union. We confirm the possibility of sustaining collaborative relationships associated with a mutual gains agenda within a liberal market economy as well as the fragility of such arrangements. While we acknowledge that sustaining cooperative regimes can be difficult, we also caution against the tendency towards institutional determinism and underplaying of agency in many of the partnership critiques. Given the lack of a credible alternative, we conclude that labour−management partnership remains an important public policy goal and should not be dismissed as a chimera.

Toward a Business Process Owner Competency Framework

Process owners are vital to the establishment and functioning of process oriented organizations. However, there is a paucity of understanding regarding the tasks process owners should undertake and what competencies they require. In this study, sets of process owner competencies and process owner tasks emerged from interviews with executives from three financial services organizations in South Africa. The findings were compared to the BPTrends report “State of the Business Process Management Market 2016”. Common themes were identified and validated against recent literature. Based on the validated themes a business process owner competency framework was developed and discussed. The framework shows that business process owners require competencies in core business process management, strategic alignment, determining organizational goals, governance, documentation, training, and systemic thinking. The competencies and tasks identified provide a practical contribution to practitioners and recruiters in the field, while the framework adds a theoretical contribution to the field of business process management.

The Impact of the Great Recession on Financial Services Advertising: An Exploratory Study

ABSTRACTWe explore how advertising managers of financial services organizations have responded to the repercussions of the Great Recession in their advertising strategies. To this end, we compare print ads for financial services that appeared in six magazines at two periods in time: 2005, prior to the Great Recession and 2010, after the end of the Great Recession. We content analyzed 755 prints ads and found major differences in the advertising strategies from prerecession to postrecession, particularly in the type of appeals. We further examined these strategic shifts by audience focus (business-to-business and business-to-consumer) and gender focus (male, female, or both).

Positive approaches to enhance customer-focused knowledge sharing culture in a financial services organisation

This case study demonstrates the use of appreciative sharing of knowledge (ASK) approach for creating and sustaining a customer-focused organisation development culture in one of the largest financial services company in Finland. The positive approach to creating a knowledge sharing culture effectively addressed the resistance to change process inherent in any organisational change intervention. The study extracted the core values and knowledge enablers that were the foundation for the growth of the organisation. Using individual and group interviews the authors collected and analysed data for generating actionable recommendations at the individual, group, and organisational level. At the individual level, the capacity to reframe to see the positive, a component of Appreciative Intelligence®, was important. The case study is also a good example of using appreciative inquiry as a knowledge management tool.

Positive approaches to enhance customer-focused knowledge sharing culture in a financial services organisation

This case study demonstrates the use of appreciative sharing of knowledge (ASK) approach for creating and sustaining a customer-focused organisation development culture in one of the largest financial services company in Finland. The positive approach to creating a knowledge sharing culture effectively addressed the resistance to change process inherent in any organisational change intervention. The study extracted the core values and knowledge enablers that were the foundation for the growth of the organisation. Using individual and group interviews the authors collected and analysed data for generating actionable recommendations at the individual, group, and organisational level. At the individual level, the capacity to reframe to see the positive, a component of Appreciative Intelligence®, was important. The case study is also a good example of using appreciative inquiry as a knowledge management tool.