GIMPA MBA

GIMPA MBA PROGRAMME

CASE STUDIES (first First draftDraft)

TOPIC.

Enhancing Quality Customer Service: The Case of S IN THE

RURAL BANKS IN GHANA
(CASE STUDY: South Akim Rural Bank, Ghana., Koforidua.)

Tel. 020-8444422
E-mail: myiddrisu@[Link]

2011

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CHAPTER ONE: INTRODUCTION

1.1 INTRODUCTION

1.1 QUALITY OF SERVICE

While quality of service is a one of the keys to customer satisfaction, customer

satisfaction exerts a stronger influence on future purchasing decisionse intentions than
does service qualityquality of service (Vimi and Mohd, 2008).(source?).

ItIt is said that customers do not necessarily purchase the highest quality of service; they
rather ; they may also weigh in factors such as convenience, price, environment,
availability and after service treatment,factors which are important elements of customer
satisfaction, into their respective purchasing decisions (Cronin and Taylor, 1992). The
customer’s personal experience with the service provider (that is, courtesy, waiting time,
empathy, responsiveness, and so on) also impacts customer satisfaction, as indicated by
(Nowak 1997).

Service jobs began began exceeding exceeding manufacturing jobs in the Ghana about
two decades ago. Even Todaytoday, service jobs are still observed to be dominate
dominating most Ghanaian business activitymost of Ghana’s economy. Current Labor
Current labor statistics indicate that the service sector of the economy of the Ghanaian
economy accounts for more than 40 percent of Ghana Ghana’s gross domestic product
(GDP) and about 70 percent of all Ghanaian its overall jobsjobs (( Ministry of

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employment Employment and social Social welfareWelfare, 2011). Therefore, service

delivery is an important aspect of business that should never be forsaken by any
organization.

The important question is not whether service is the industry of the future, but rather: “Do
Ghanaian business people understand the principles and practices of service quality well
enough to fend off foreign competitors?”Clearly, Ghanaian business owners do not want
to find themselves in a position of playing catch up to other nations, as they did in the
1990s with African agriculture and manufacturing [Link], regardless of this,
Anecdotal anecdotal and scientific evidence both , however, suggests that Ghanaian
businessGhanaian business people owners have been fond of delivering poor quality
services to their customers. . For example, researchFor example, according to GIPC
(2009), in a research conducted by the Association of Ghana Industries, there were
through interviews conducted with more than 5,000 customers consumers about
regarding satisfaction with some some 50 companies in 5 five different industries.. The
report shows The results clearly showed a consistent quarter-by-quarter decline in
customer satisfaction,. (although Although the insurance industry saw a modest increase
in 2009, most other service categories such as restaurants, hospitals, and banking banks
have continued to showed a continuous decline (GIPC Sector Profile of Ghana’s
Financial Services Industry, 2009) ).

The Ghanaian economy has been described by most economists as emerging, with most
many of its sectors witnessing a boom in recent times. The banking sector is one such
area that has received massive influxes of foreign investment. Such investments have
created enormous competition in the country between the local and foreign banks.
According to statistics, Real real gross domestic product growth growth rose
graduallyrose swiftly from 4.5 percent in 2002 to an estimated 7.2 percent in 2008.
Moreover, Tthe service sector, in which the financial industry fall is among, contributed

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32 percent to the Real gross domestic this real growth in GDPproduct from the year 2002
to 2008 (The World Bank Agriculture and Rural development Development
discussiondiscussion, May 2010). Ironically, TheTo bank customers, the majority of the
customers in the banking industry seem to believes that its services has have not
improved over the past five years despite the recent growth in theindustry’s growth
(GIPC Sector Profile of Ghana’s Financial Services Industry, 2009). industry. In fact,
many customers believe that customer service has gotten worse..

A segment of the banking industry includes Rural rural banks which, over the years, have
succeeded in contributinged to the operations and growth of the economy through various
rolesmeans., including those of intermediary and provider of payment settlement facilities
These include: Rural 1) the facilitation ofbanks facilitate businesses through the
settlement of funds and the provision of credit to consumerscustomers;. The rural
banking system2) the ensuring of further ensures the efficient allocation of resources
through lending to businesses and individuals; .3) the traditional role of Additionally,
rural banks bringing together borrowers and lenders; and lastly,. 4) They also engaginge
in corporate social services in and around their areas of operations (The World Bank
Agriculture and Rural Development Discussion Paper 48, May 2010)...

For financial institutions, such as of which south Akim Rural Bank, is no exception, it is
imperative imperative to understand the essence of customer care and its impact on a
company’s their operations; and furthermore, to internalize that Good good customer
service is all about making customers return, . And about and each time, sending them
away happy satisfied enough to pass positive feedback about your business along to to
others about their products and services. As a result, these other people may, in turn,, try
the their products and services you offer for themselves and become repeat customers
(Andreassen and Olsen, 2008)..

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1.2 statement of the problemSTATEMENT OF THE PROBLEM

The problem the case soughtsort to investigate is thatwas the idea that , most rural banks
sees consider acceptable banking services to be simply a matter of accepting customer
deposits and making payments to customers. As a resultTo this end, most customers have
been known toknown to perceive these banks as a mere location for checking accounts;
therefore giving them no incentive to patronize additional products or services from these
institutions. . The resulting effect is that rural banks have not been motivated to meet
the expectations of modern customers by “going the extra mile” to provide excellent
quality customer services to them (Vimi and Mohd, 2008).

.
This paper workstudy will therefore examined the nature of customer care service
practices in be carried out tosoughtto determine how most rural banks in Ghana; more
specifically, how the South Akim Rural Bank in the Eastern Region hadve been handling
itstheir customer care. Furthermore, the project sought to achieve the following
objectives:.

 To determine the nature of customer service practiced at South Akim Rural

Bank;.

 To determine the understanding ofto what extent the staff of at South Akim Rural
Bank the are practicinge of quality customer service;

 To examine the challenges faced by South Akim Rural Bank in promoting high
quality customer service;.

 To recommend to the management management at South Akim Rural Bank

alternative courses of action in for achieving high quality customer service. to the
benefit of South Akim Rural Bank

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1.3 ORGANISATION OF THE STUDY

This study is divided into eight chapters:

.
 Chapter oneOne: (1) considersThis chapter includes the Introduction and the
Statement of the Problemion/Problem Statement, which together involved
provides a Clear clear description of the background to the projectstudy.

 Chapter two Two: (2) This chapter consists ofLooks at the Literature Review
and the case Case study Study methodology Methodology .

 Chapter threeThree: This chapter (3) examines considers the study

Company’s(South Akim Rural Bank’s) vision, mission, core values , and
objectives; and , Strategies it will use to fulfill its [Link] analysis.

 Chapter four Four: (4) Takes This chapter focuses on South Akim Rural Bank’s
Environmental Analysis which captures Economics, Political, Regulatory,
Industry, Market, Competitionive, Technologypossibly external analysis.

 Chapter five Five: (5) This chapter will looktakes a look at the
organization’s:Situation Analysis/ i) competitive analysis, ii) SWOT analysis /
and iii) cCritical sSuccess fFactors.

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 Chapter six Six: (6). The This chapter will consider quality of data analysis using
charts and tablesfocuses on the identification of central managerial issues.

 Chapter sevenSeven(7): This chapter will looklooks at Alternative alternative

Courses courses of Action action and also Recommendationsprovides
recommendations to the study company(South Akim Rural Bank ) and well they
on how to properly address their central managementrial issues.

 Finally, Chapter eightEight: (8) This chapter will lookfocuses on the

Implementation implementation of the Recommendations recommendations
suggested by the researcher.

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CHAPTER TWO: LITERATURE REVIEW

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LITERATURE REVIEW

2.0 INTRODUCTION

For the purposes of this case workstudy, a theoretical review will be examined. This
chapter will also cover the study’s methodology and will finally deal with the definitions
of customer care concepts.

2.1 THEORETICAL LITERATURE

Service quality, according to Bandor and Randal (2007), has had its connections with
events that are behavioral like the outcome from the month of a human being. There is a
lot of attention that has been focused oin the relationship between service quality and its
outcomes such as profitability, and retention of customers, and customer their loyalty.
Customers see service quality as an essential criterion for selecting any banking services
that in satisfyying their needs.

There are some common dimensions about of service quality, which includes,
Reliabilityreliability, Responsivenessresponsiveness, Competencecompetence,
Accessaccess, Courtesycourtesy, Communicationcommunication, Credibilitycredibility,
Securitysecurity, knowledge, empathy and Tangiblestangibles. ButHowever, in an
operational instrument known as SERVQUAL, these dimensions were reduced to fivee
dimensions that are: Reliabilityreliability, responsiveness, Assuranceassurance,
Tangiblestangibles, and Empathy empathy. SERVQUAL is a multi-item scale which is
used to evaluate customer perceptions of service quality in service and retail businesses
(Parasuraman, et al., 1988).

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SERVQUAL has been used by different research studies conducted in a various settings
like the quality of service offered by a bBanks, Hospitalshospitals, Departmental
department stores and others institutions. Though Although the scale has seen only a
limited application in a financial services context, it nonetheless remains one of the many
areas where SERVQUAL has been applied for measuring service quality (Cronin and
Taylor, 1992)..

It is said that quality service care is defined on the basis of the identification of
measurement behaviors that are important to customers. (McCleary and Weaver, 2009).
Both the service management and the marketing literatures suggest that there iis a s
strong theoretical underpinning among customer satisfaction, customer loyalty, and
Profitabilityprofitability. Moreover, iIt is evident that customer retention has a significant
impact on the overall bottom line..

2.2 SERVICE QUALITY DETERMINANTS

Goods qualityThe quality of goods is tangible and can be measured by objective

indicators like such as performance, features, and durability. Service quality, howeveron
the other hand, is intangible. Hence, the service quality literature defines service quality
in terms of subjectivity, attitude, and perception. Zeithaml (2000) explains that:: “Service
Service quality is the consumer’s judgment about an entity’s overall excellence or
superiority. It is a form of attitude, and results from a comparison of expectations to
perceptions of performance received.” Furthermore, Lewis and Booms’ (1983) definition
clearly states that: “Service is a measure of how well the service level delivered matches
customer expectations. Hence,
Ddelivering quality service means conforming to customer expectation on a consistent
basis.”

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Parasuraman, Zeithaml, and Berry (2000) provide a their own list of determinants of
service quality, which include:: access, communication, competence, courtesy,
credibility, reliability, responsiveness, security, understanding, and tangibles. The
research team conducted a series of pilot studies and found a high degree of correlation
between communication, competence, courtesy, credibility, and security. There is was
also a correlation between access and understanding. SoTherefore, they combined them
into two broad dimensions of assurance and empathy, that is,thus arriving at a total of
five consolidated dimensions (Berry, Zeithaml, and Parasuraman 2000):

•Reliability: The ability to perform the promised service dependably and accurately.
• Responsiveness: The willingness to help customers and provide prompt service.
• Assurance: The knowledge and courtesy of employees and their ability to convey trust
and confidence.
• Empathy: The caring, individualized attention provided to customers.
• Tangibles: The appearance of physical facilities, equipment, personnel, and
communication materials.

They then used these five dimensions as the basis for their 22-item service quality
measurement instrument called SERVQUAL, which was originally used for assessing
customer perceptions of service quality in service and retailing organizations
(Parasuraman, Zeithaml, and Berry 1994a).

For each item, a difference score Q (representing perceived quality along that item) was
defined as Q = P – E, where P and E are were the ratings on the corresponding
perception and expectation statements, respectively.

In 1993, it was argued that “SERVQUAL failed to achieve discriminate validity from its
component, and the no- difference score measure did not exhibit these problems
(Parasuraman, Zeithaml, and Berry 1994b). Moreover, it displayed better than

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discriminate and no logical validity properties. In summary, it was the preferred

alternative” (Brown, Churchill, and Peter 1993).

Cronin and Taylor (1992; 1994; 1994) argued that measuring service quality using a
performance-minus-expectations (SERVQUAL) basis is inappropriate and also suggested
that a performance-only (SERVPERF) measurement is a much better method.
Parasuraman, Zeithaml, and Berry (1994a), however, contended that the SERVQUAL
scale using the expectations/performance gaps method is a much richer approach to
measuring service quality and augment augmented their earlier assertion (Parasuraman,
Zeithaml, and Berry 1985; 1988; 1993) that service quality is a multidimensional rather
than a one-dimensional construct (Parasuraman, Zeithaml, and Berry 1985; 1988; 1993)..

Unfortunately, the conceptualization and measurement of service quality is not bereft of

controversy. Although the debate on service quality began in 1985 in the marketing
literature, it was given a major boost by Cronin and Taylor (1992). Subsequent work on
service quality was conducted by (Parasuraman, Zeithaml, and Berry (1993); Cronin and
Taylor ( 1994); Avkiran ( 1994); Teas ( 1994); Newman and Cowling ( 1996); Yavas and
, Shemwell ( 1997). ) Nnotwithstanding, the debate has not yet reached a point of
resolution. In its wake, however, it has raised many issues for both academics and
practitioners by providing important, but somewhat conflicting, insights into the
conceptual, methodological, analytical, and practical issues relatinged to the service
quality concept.

The five dimensions of service quality mentioned previously (tangibles, reliability,

responsiveness, assurance, and empathy) were the basis for this research. For this
research, a non- difference score measure was used for each dimension of service quality
in order to achieve discriminate validity from its component.

2.3 SERVICE QUALITY IN BANKING

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Service quality is gaining more and more importance in the banking industry in which
Sthe south Akim rural Rural bank Bank operatess and the value of improving service
quality should be determined. It has been suggested , that developing strong relationships
between customers and financial institutions serves as an incentives for customers to
remain loyal and thus provide financial institutions with a source of differential
advantage. (Berry, and& Thomson, 2000). Similarly, it had been observed that a
centrally important aspect of a commercial customer’s dealing with a bank is the quality
of the long-term relationship that develops with the bank.

Service quality has been increasingly recognized as a critical factor in the success of any
competitive business environment; , and the banking sector, in this case, is not
exceptionalan exception. Service quality has been widely used to evaluate the
performance in many service industries in general, and in the banking sector in particular.
The banks understand that customers will be loyal if they receive greater value from the
bank in question than from its competitors. Additionally, and on the other hand, banks
can earn high profits if they are able to position themselves better than their competitors
within a specific market. Therefore, banks certainly need to focus on service quality as a
core competitive strategystrategy.

. Moreover, banks all over the world seem to offer similar kinds of services, and try to
quickly match their competitors’ innovations. . It can be noted, however, that customers
can perceive differences in the quality of service. HoweverMoreover, customers evaluate
banks’ performance mainly on the basis of their personal contact and interaction with
them..

2.4 WHY SHOULD A COMPANY OR AGENCY PROVIDE GOOD CUSTOMER

SERVICE?

 It improves trust and information exchange

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. Ggood customer service generates satisfied or delighted customers. Satisfied

customers lead to increased compliance, improved information exchange,
improved relationships, increased trust, and, potentially, decreased workloads or
costs. This potentially lessens theeads cost of production in customer relationship
maintenance.
.
 It saves money and increases profitst.
In the private sector, good customer service leads to satisfied or delighted
customers, which generates customer loyalty;, which then produces increased
revenues and reduced costs.

.
 Customer retention
. Market research clearly shows that if customers enjoy and are more satisfied
with the service provider’s service, it means that they e. This means that
customers are more likely to remain with the service provider for a long time.

.
 Customer reference.
Satisfied customers are also good advertisers for service providers. Market
research indicates that customers are happy to recommend their quality service
providers to other customerstheir associates (Thompson Learning, 2002).
.

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2.5 WHAT ARE THE CONCEPTS UNDERLYING EFFECTIVE CUSTOMER

SERVICE STRATEGIES?

The current literature supports an outside-in strategy of customer service, rather than the
traditional inside-out model for providing services (Thompson, 2000). Profit and growth
are generated by customer loyalty. Loyalty is generated by customer satisfaction.
Customer satisfaction is the goal that companies should seek and focus on , because high
customer satisfaction, as a matter of course, produces customer loyalty and subsequently
profit and growth. Customer satisfaction is achieved by providing valued services and
products;, where value is the positive difference between customers’ actual experiences
and their service delivery expectations..

Productive employees also create value. Employee productivity stems from employee
loyalty and attitude;, and loyalty is a product of employee satisfaction. Satisfaction is
generated by high-quality support services (people, information, and technology) and also
by being empowered to provide value and resolve customer complaints..

This A customer service culture must be supported by leadership that emphasizes the
importance of each customer and each employee. These leaders must be creative and
energetic (not lofty or conservative), participatory and caring (not removed or elitist); in
other words, , that is, thoseone who can be coachesbe a coach, teachers, or listeners (not
just a supervisors or managersr). Such a leaders demonstrates company values (rather
than simply institutionalizing policies) and motivates by mission (rather than by fear)
(Heskett, 1997).

Some components of this model are cyclical. A 1991 study of property and casualty
insurance companies found that employees who felt that they were meeting customer
needs had twice the job satisfaction level of employees who did not believe they were
meeting customer needs. In that study, when a frontline service worker left the company,
customer satisfaction levels dropped from 75% to 55% percent (Harvard Business
Review, 1994, p 239).

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2.6 WHAT ARE THE GUIDING PRINCIPLES OF COMPANIES THAT

DELIVER EFFECTIVE CUSTOMER SERVICE?

In the customer service literature, five guiding principles are adopted by public as well as
private entities delivering excellent customer service:

1. Embracinge change and persistently strivinge to improve (being a learning

organization);.

2. Continually asking the target customers what they want and then givinge it to
them;.

3. Empowering, supporting, and rewarding frontline personnel;.

4. Harnessing the power of information;.

5. Establishing an enabling infrastructure (Thompson Learning, 2002).

2.7 HOW DOES AN ORGANIZATION DEVELOP AND IMPLEMENT AN

EFFECTIVE CUSTOMER SERVICE STRATEGY?

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1. Identifying the Target Customer.

 Begin by identifying the target customers and by considering the

point of purchase, point of service delivery or receipt, and point of
consumption as well..

 Cluster or segment target customers based on their common

behaviors;, knowing that targeting the wrong customers can have
adverse effects on the organization..

 Determine the priorities of various clusters of customers;, knowing

that the capabilities of the organization are crucial in addressing these
priorities..

 When possible, focus on customers with high current or future value.

This does not mean that other customers will not receive service, but
it may mean that they will receive a different level of service
(Thompson Learning, 2002).

2. Determine What Customers Want..

 Determine what target customers want (not just what they need right
now) . Exceeding expectations produces high satisfaction—therefore,
determine customers’ ideal desires..

 Determine how the target customers prioritize their "wants."

Generally, customers want convenience, quality products and
services, variety, low prices, and security. However, each
organization must identify what is most important to its customers..

 Weigh how important the customer-identified "wants" are to the

organization. Are the services something that the organization does, is
capable of doing, or wants to pursue.

 ?

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 Determine how well the organization can meet the customers’

"wants" in comparison with competitors. The success of other
companies at meeting and exceeding customer expectations changes a
customer’s frame of reference and also increases a the customer’s
expectations..

 Determine which "wants," if performance delivery were to be

improved, would most impact the organization’s bottom line (profit,
cost, loyalty, trust, or compliance) (Thompson Learning, 2002).

3. Establish an Organizational Culture Supportive of Customer Service.

 Utilizeing the information gathered, establish the company’s

customer-focused vision. The vision statement should be simple and
may also identify what the company does not want to be..

 Live up to what is promised by concurrently developing and applying

externally- and internally- oriented strategic service concepts that
reflect the vision. If the organization does not implement both
internally- and externally- oriented service strategies consistent with
the vision, the organization will have good intentions but poor
customer service (Thompson).

 Continually reflect on the vision and goals and the way services are
delivered to customers. Be creative about the mechanisms used to
create and deliver new services. Be willing to change existing
practices in order to integrate improvements (Thompson Learning,
2002).

4. Implement an Externally- Oriented Strategic Service Concept.

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The externally- oriented strategic service concept establishes how the

organization’s service is designed, marketed, and delivered to target
customers.

 Take into account the costs of providing services and also the ways to
minimize those costs while implementing quality control. The service
concept must be developed with the frontline worker at its center.
Determine the necessary resources necessary , to delight the customer
and deliver the promised vision..

 Use advertising/educational strategies to set appropriate customer

expectations..

 Provide a feedback loop for incorporating customer comments and

complaints into the planning processes. Complaints brought to the
organization are one of the most efficient and least expensive ways to
obtain information about customer expectations of products and
services. Complaints are a more direct means of obtaining
information than conducting research studies of customer
expectations, conducting transaction studies, or reviewing customer
expectations in parallel industries (Barlow, 1996).

Furthermore, eEnsure that the complaint resolution strategy supports the

customer-focused vision. One final element of an externally- oriented
service strategy is to regularly measure customer satisfaction or
delight in the products and services (Barlow, 1996).

5. Implement an Internally- Oriented Strategic Service Concept.

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 The internally- oriented strategic service concept establishes how the

organization’s internal processes will support the customer-focused
vision. The premise behind the internally- oriented strategic service
concept is "…capable workers who are well trained and fairly
compensated provide better service, need less supervision, and are
much more likely to stay on the job. As a result, their customers are
more likely to be more more satisfied…" (Heskettarvard Business
Review, 1994, p 72).

 Identify the characteristics and needs of the employee group(s) and

how well those needs are met. Understanding employee needs helps
an organization to develop successful processes as well as employee
retention policies. An organization cannot change without the
participation of its employees..

 Focus on recruiting employees who support the customer service

vision. Oftentimes, the right employees are those that fit into with the
corporate culture’s customer service vision;, not necessarily those
with the most experience in the industry. Additionally, develop career
paths that allow successful customer-oriented employees to remain on
the frontline..

 Focus on training and employee development throughout

employment. A study by Ryder Truck from 1988 through 1989 found
that increased training meant lower employee turnover (Heskettarvard
Business Review, 1994, p. 81).

 Empower frontline employees to do what it takes to satisfy the

customer. Management must support employee empowerment by
clearly defining the parameters of the empowerment, while remaining
flexible within the parameters. This will encourage creativity. Rules
should be simple and few—Continental Airlines actually had an
employee handbook burning party to signify the change from a

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procedural environment to one of empowered customer service

(Spector, 2001).

 In addition to skills and empowerment, equip frontline personnel with

the technology, information, and internal resources to do what it takes
to satisfy the customer . The literature is replete with examples of
how incorporating the latest information technology can improve
employee productivity..

 Ensure that divisions and individuals within the organization

communicate well. Frontline employees and other employees need
information and a support network. A customer should never have to
tell one employee what another employee already knows..

 Link all employees’ compensation to (and offer rewards for) good

customer service performance. Rewards can be money, status, praise,
acknowledgement, or perks such as trips or special events. This
policy in a profit-seeking environment leaves no doubt that customer
satisfaction is the primary goal (Wiersema, 1998).

 Finally, measure employee satisfaction regularly. Leaders in the

service industry have employed such methods as toll-free numbers,
periodic roundtable meetings, and surveys to collect employee
satisfaction information (Wiersema, 1998).

2.7 METHODOLOGY

Nature of data sources that will be used for this study.

2.7.1 SURVEY INSTRUMENT

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The original service quality questionnaire was obtained from the marketing department of
South Akim Rural Bank [Link] .It had been used several times in the past and was
redesigned by the researcher for use in this particular case study. The questionnaire was
developed in order to identify the underlying dimensions of bank service quality and
also to assess consumers’ perceptions of the importance of each of these dimensions.

The questionnaire covered the five dimensions of service quality, including the overall
service quality of the bankBank. Each question was rated using a Likert-type scale of 0
(poor) to 10 (excellent). A semi-structured questionnaire, also designed by the researcher,
and was used to solicit the views of the staff and management Management and staff of
the bank Bank with regards to their perception about the services they were rendering to
their customers. These questionnaires where undertakening through personal interviews
by the researcher to the respondents. involving the researcher and the respondents.

The interviews provided flexibility in gathering the primary information, allowed

spontaneous responses and enableding the tailoring of questions in order to suit
individual customers.

The technique helped to gain insight into the operations of the bankBank, its marketing
operations and customer service activities. Above all, this technique hass been used
effectively in both public and private sectors thus tried and tested. The interview was
effective because of cooperation and face- to- face interactions between the researcher
and the respondents. The service quality questionnaire is shown in the Appendix. I.

2.7.2 SAMPLING AND DATA COLLECTION

Four branches of the South Akim rural Rural bank Bank were selected
(koforiduaKoforidua, Nankese, Adoagyire, and Suhum). To get the cooperation of
management Management, the marketing department and the human resource department

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, they were both informed of the objectives of the research and how it would benefit them
and thethe organization.

A sample of 120 customers (30 from each branch) wasas randomly selected from four
branches, and the service quality questionnaires were administered to them. A total of 20
staff was alsowere also picked from the Head Office at Nankeserandomly.

A total of 97 questionnaires from customers are were returned (representing a rate of

80.83%). The customers hadve been informed of the purpose of the research and that
their responses would be treated with secrecy and kept completely confidential. They
hadve been also informed that no individual identifiable information would be disclosed
or published, and that all results would be presented as aggregate summary data. Data
entry hads been done for the final analysis using the charts and pictorials for easy
interpretation. Tthe responses from the branches are shown in Ttable 1

TABLE 1: .CUSTOMERS AND STAFF RESPONSE RATE OF SOUTH AKIM

RURAL BANK
.
Bank No. of contact No. of Response No. of contact No. of Response
Branch customers Responses Rate % Staff Responses Rate %
Koforidua 30 28 93 5 5 100
Nankase 30 25 83 5 5 100
Suhum 30 24 80 5 4 80
Adoagyiri 30 20 67 5 3 60

NO. OF NO. OF
BANK CONTACT NO. OF RESPONSE CONTACT NO. OF RESPONSE
BRANCH CUSTOMERS RESPONSES RATE (%) STAFF RESPONSES RATE (%)
Koforidua 30 28 93 5 5 100
Nankase 30 25 83 5 5 100
Suhum 30 24 80 5 4 80
Adoagyiri 30 20 67 5 3 60

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Data entry has been done for final analysis at the point of 80 percent completely filled
Questionnaires.
.

CHAPTER THREE: INTERNAL ANALYSIS

3.0 INTRODUCTION

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This chapter examines South Akim Rural Bank’s i) vision, ii) mission, and its iii) core
values, and its iv) /objectives. The chapter also observes the various strategies and
techniques that will be used by the bank to fulfill its purpose.

3.1 BACKGROUND INFORMATION

TION
The bank Bank started its operations in November of 1984 at its head office in Nankase
in the Eastern Region. Since then, it has strived to become the best service provider
amongst all the rural banks in the Eastern Region and in Ghana as a whole (source?South
Akim Rural Bank Corporate Plan 2008 – 2012, 2008). In fact, as at the end of 2007,
South Akim Rural Bank Limited was rated first among the rural banks in the Eastern
Region, and also among the first eleven rural and community banks in the country in
terms of deposits (Ghana News Agency, Nankese (E/R), Sept. 11, GNA).
.

After its commencement in November of 1984, the Bank extended its operations to its
district headquarters in Suhum in September, of 1987. After a long break for
consolidation, additional agencies were opened at in Koforidua, Asamankese, and
Adoagyiri in 1993, 1995 and 2006 respectively. Currently, full-scale banking services are
provided at all of these locations (South Akim Rural Bank Corporate Plan 2008 – 2012,
2008source?).

The bank provides its services to a large number of salaried workers as well as to
educational institutions, religious bodies, social organizations and district assemblies. The
bank now serves over 75,000 customers in its operational areas (South Akim Rural Bank
Corporate Plan 2008 – 2012, 2008Source?).

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3.2 VISION STATEMENT

The ultimate aim of the Bank is summarized in its Vision which guides Board Members,
Management and staff alike in their various individual and collective efforts and activities
to achieve this aspiration in the long-term.

The Vision of South Akim Rural Bank Ltd is: “To be among the leading banks in the
country.”

3.3 MISSION STATEMENT

The Mission of the bank is:

“To become the leading rural bank and market mover in the Eastern Region, as well as
to be ranked among the best five (5) rural banks in Ghana within the plan period (2008-
2011)” through:

i. The appointment of Board members with a variety of relevant rich expertise to

efficiently direct the affairs of the Bank (source?);

ii. The use of modern, state-of-the-art information technological hardware and

software for the most effective management and operations, as well as the utmost
efficiency in terms of staff numbers and costs, branch networking and operations,
and the generation of high and sustainable net income (source?);

iii. The recognition of customers as the most important concern of the Bank and
therefore the provision of the best services and customer care to their utmost
satisfaction (source?);

iv. Engaging duly qualified professional staff and sufficiently motivating them with
relatively good conditions of service, and adequate remuneration, constant

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training, and regular promotions; , as well as the provision of performance and

incentive bonuses in return for dedicated job performance (source?);

v. Cooperating with and supporting the activities of the Association of Rural Banks
in tandem with sister rural banks in the country, and also keeping with the Ghana
Government’s, Bank of Ghana’s, and ARB Apex Bank’s laid down policies,
regulations, guidelines , and statutory obligations, good corporate governance, and
behavior including the payment of corporate tax (source?);

vi. Winning the best part of the market through aggressive, innovative, and effective
multiplicity of marketing, mobilization, and management strategies (source?);

vii. The Adoption adoption of the best fund and investment management practices and
, cost, and internal control measures to maximize returns and profitsprofits and
returns (source?);

viii. Fulfilling its social obligations to the communities in its catchment area to the best
of its ability through the support for and/or the provision of social amenities and
services (source?); and

ix. Keeping shareholders satisfied through good financial and administrative

management for the realization of good profits and the payment of attractive
dividends on a continuous annual basis (South Akim Rural Bank Corporate Plan
2008 – 2012, 2008source?).

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As part of this mission, South Akim Rural Bank’s motto is: “South Akim Rural Bank –
Better Service to the Customer.” This motto is in order to ensure that the Management
and staff deliver excellent customer service to their customers. The bank Bank works
with all current and potential customers as long as it is in the best interest of the bank
Bank and it also coincides with the customer’s needs (South Akim Rural Bank Corporate
Plan 2008 – 2012, 2008source?).

3.42 CORE VALUES / OBJECTIVES

The South Akim Rural Bank operates under four main core values:

1. Efficiency through teamwork;

2. Customer satisfaction;
3. Maximization of profit and the protection of the Bank’s resources; and
4. Community development (South Akim Rural Bank Corporate Plan 2008 – 2012,
2008source?).

3.53 FACILITIES AND EXPERTISE NEEDED TO FULFILL THE BANK’S

PURPOSEOBJECTIVES OF THE ORGANIZATION

In order to realize its expectations, South Akim Rural Bank has designed a threefive-year
corporate plan which consists of. The plan focuses on human resource development—
preparing the individuals needed to deliver on the mission of the bank. In addition, other
modern strategies have also been considered certain objectives that the organization
intends to accomplish (source?South Akim , n.d., para. 6).

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3.3.1 WORKING FOR CUSTOMERS: SERVICES AND SALES CULTURE

A customer-focused sales and service culture has been

initiated by the bank

3 Providing service to customers

One of South Akim Rural Bank strives ’s core values is to achieve customer
satisfaction. It therefore will strive to provide customers with what they need rather
than merely trying to make a sale. The "mirror test" will be the golden rule for South
Akim Rural Bank’s staff. What this means is that in their interactions with customers
and other employees, the Bank’s staff will be told to ask themselves whether they can
look in the mirror and tell themselves that they have made the right decision(s)
(source?)

Customer input will beis definitely be solicited through methods suchmethods such
as customer comment cards and customer exit interviews in order for the Bank to be
able to determine exactly what customers want. Furthermore, complaints will beare
tracked and analyzed for patterns (South Akim Rural Bank Corporate Plan 2008 –
2012, 2008source?).

2. Making employees’ lives better

The South Akim Rural Bank will haveprovides competitive salaries and enhanced
working conditions compared to those set for Banksother banks who are members of
of its category by the Association of Rural Banks. At South Akim Rural Bank

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Limited, employees will also have many opportunities to advance (South Akim Rural
Bank Corporate Plan 2008 – 2012, 2008).

. In addition, they will have possess a sufficient amount of vacation/sick time off, and
managers will alsoare also be committed to mentoring and developing staff (South
Akim Rural Bank Corporate Plan 2008 – 2012, 2008source?).

South Akim Rural Bank will also focuses on hiring and maintaining customer-oriented
employees. Employees will therefore beare supported, rewarded, and granted
discretion. Employee input will also beis also solicited through focus groups,
workshops, and one-on-one visitationss from advisory boards. Advisory boards will
compose of various bank staff who will provide feedback to each division leader
(source?).South Akim, n.d., para. 11).

3. Making communities better places

South Akim Rural Bank Limited believes that the communities in which it operates
will have aare experiencing a significant amount of change as a result of the way they
it conducts its business. For example, fFarmers will beare assisted in terms of loans,
subsidies, and workshops. Community works will beare also undertaken from time to
time by the staff of the bank to show their appreciation to these communities (South
Akim Rural Bank Corporate Plan 2008 – 2012, 2008source?).

4. Resource maximization

Accurate performance measures will behave been adopted by the BankSouth Akim
Rural Bank for the purpose of measuring and tracking its overall performance.
Management has also planned forapproved: i) the payment of dividends of
approximately 25% of the Bank’s profit after tax, ii) as well as to the offering of bonus
shares where appropriate, in addition to iii) coupled with adequate transfers to capital

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reserves. This is in order to enhance shareholders’ interests while strengthening the

Bank as a whole (source?South Akim, n.d., para. 15).

3.3.2 WHAT ARE SUPERVISORS/MANAGERS/EXECUTIVES DOING?

According to South Akim Rural Bank Limited’s

Management, resistance to change and towards a
customer-focused culture should be expected. A
customer-focused culture can be developed only when it
is embraced and supported at the top. When
supervisors and managers are sold on customer focus,
their attitudes, as well as policies and procedures, will
flow down to the frontline. The bank will have a secured
top-level buy-in to enable management to strive to
operate as a team and model customer-oriented
behavior. Accountability will also be maintained from
the top-down (source?).

In order to increase supervisor morale, managers and

executives will be required to spend more time face-to-
face with supervisors and line staff in order to maintain

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open communication. Upper management will also

travel to the branches to conduct focus groups for the
purpose of building the customer culture. With open
communication and honesty, it is expected that trust
will be built (source?).

3.3.3 AT THE FRONTLINE

South Akim Rural Bank Limited will strive to eliminate

non-customer service functions from frontline
employees’ roles in order to endeavor staff to
consistently provide great customer service. Whether a
customer approaches the teller line, or approaches a
loan officer, standards of conduct and greeting will be
instituted to guide the interaction (source?)

During in-person interactions, South Akim Rural Bank

Limited’s staff will be directed to smile, stand and
greet the customer, shake hands, introduce themselves,
learn the customer’s name, initiate non-business

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conversation, give the customer their full attention, and

stand and thank the customer for his or her business
upon concluding the interaction. Furthermore, frontline
employees will be given clearly defined discretion to
satisfy customers (source?).

3.3.4 HIRING

The current staff number is expected to increase. Furthermore, the hiring of staff is
expected to change considerably in order to reflect the technological advantage of
computer systems. South Akim Rural Bank will hire based on attitude first. The reason is
because Bank officers feel that with the right attitude, a person can be trained to deliver
good banking services. The goal will therefore be to hire an individual based on his/her
service philosophy and desire to help people, rather than hiring someone who is focused
only on salary (source?).

South Akim Rural Bank Limited’s recruiting strategies may sometimes include soliciting
employees from retail services if a staff member identifies someone with a great service
attitude (source?).

3.3.5 TRAINING

It is worth stating that the challenges posed by the plan, coupled with the ever-changing
economic environment within which the corporate objectives of South Akim Rural Bank
must be realized, requires seasoned management to implement, monitor and control in
order for the goals and targets set to be achieved. It is for this reason that the Board has
introduced the position of Operations Manager to strengthen Management (source?).

Furthermore, the Board will continue to take advantage of all the training programs
funded by the Bank of Ghana, and also those run by the Association of Rural Banks as

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well as the ARB Apex Bank. The Bank will also continue to take advantage of other
courses run by the National Banking College, GIMPA, MDPI and other reputable
training institutions and consultancy firms in a bid to upgrade all of its Management and
Staff (source?).

Additionally, similar training will continue to be offered to directors for the purpose of
equipping them to guide and to monitor the operations of the Bank (source?).

3.3.6 MOTIVATING AND REWARDING EMPLOYEES

South Akim Rural Bank Limited’s employees will be motivated to understand their role
within the customer-focused culture through one-on-one coaching, accountability at all
levels, performance evaluation and performance-based rewards, and employee and team
incentive programs. Additionally, the bank will also strive to maintain high employee
morale in order to retain its employees by offering them flexible time for doctor visits,
childcare, etc. (source?).

Employees will also be made to nominate a coworker who has gone out of his or her way
to assist an internal or external customer. The nomination will be posted on a banner in
the break room. The winner or MVP of the week will receive a traveling trophy
(source?).

3.3.7 TECHNOLOGY

The current automated system at South Akim Rural

Bank Limited will be upgraded. The system will be
improved to tracks loans, collections, and to
automatically queue accounts for a loan officer’s

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attention based on a pre-established prioritization

protocol. The largest delinquency amounts are a top
priority, followed by the frequency of broken promises
of payment, bounced checks for payment, the highest
limit past due, and the number of days past due
(source?).

A system will be set up to accept notes so that the

substance of a loan officer’s conversation with the
customer can be captured for review and follow-up. The
system will enhance productivity and employee
knowledge base of contracts when interacting with
customers. Furthermore, the system will also inform all
employees of the status of each contract (source?).

3.3.8 MARKETING

The marketing department responds to (and tries to predict) market trends, focusing on
the financial needs of South Akim Rural Bank Limited. Marketing staff will gather
information through interviewing, trial and error, and customer surveys. The marketing
department will still be focused on how to better serve the community. The goal is to
maintain customers for the long haul. South Akim Rural Bank Limited will use a number
of mechanisms to share information about services with customers and prospective

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customers. Word of mouth has proved most effective. Additional media will have to be
included such as radio, television, and employees wearing South Akim Rural Bank
Limited’s apparel while in the community (source?).

3.3.9 DEFINING GOOD CUSTOMER SERVICE IN DEBT COLLECTION

The debt collection department will use a standard set

of procedures for working with debtors and delinquent
customers. The uniformity of implementation of these
procedures is seen as critical to good customer service.
By standardizing the process, South Akim Rural Bank
Limited believes that all customers will be treated
equitably. The department will be organized in such a
way that one person will handle all loans purchased in-
house. Furthermore, loans purchased from other
lending institutions will be handled by personnel with
various levels of expertise and experience, depending on
the level of complexity or level of delinquency (source?).

Within debt collection, management will utilize a

number of procedures to ensure that all customers will
receive high-quality service and that employees will be

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held accountable for their results. If there are any

problems within the debt collection department, the
Central Collections Manager will notify everyone in the
department during the staff meeting. Lastly, all
problems will be addressed through a training session
(source?).

3.4 PROJECTED OPERATIONAL OUTLOOK

South Akim Rural Bank Limited strongly believes that,

the implementation and practicing of the above policies
will significantly impact on the achievement of its
mission. The success is however also dependent on all of
its identified stakeholders. Management believe that the
benefits they have reaped so far by pursuing their vision
include customer share increase, high customer
deposits, lower labor turnover, higher profits, and
better community relationships (Nankese (E/R), Sept.
11, GNA)

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CHAPTER FOUR

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4.0 INTRODUCTION

This section of the case study focuses on the macro-environmental analysis of the
economy which has had a major impact on the operations of the banking industry. The
analysis will entail the economic, political, regulatory, industry, market, competitive, and
technological factors possibly . certain factors that could possibly affect the strategic
development of South Akim Rural Bank.

4.1 POLITICAL FACTORS

 The political stability in Ghana has allowed many banks, such as South Akim
Rural Bank, to continue operating in the country (Bank of Ghana Quarterly
Bulletin Jan-March, 2011).

 The Government of Ghana has shown a strong commitment to financial

sector development. For instance, the Cabinet approval in 2003 of the
Financial Sector Strategic Plan (FINSSP) with its aim of broadening and
deepening the financial sector (Bank of Ghana Quarterly Bulletin Jan-March,
2011).

 Improved governance in Ghana’s financial markets remains an important

focus for the continued reform agenda; particularly given the prospect of
greater international and regional competition, as well as opportunities for
Ghanaian financial market participants (GIPC Sector Profile of Ghana’s
Financial Services Industry, 2009).
 Following significant improvements in Ghana’s financial system, competition
in the industry has been on the increase (Bank of Ghana Quarterly Bulletin
Jan-March, 2011).

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4.21 ECONOMIC FACTORS

 Statistics have shown that the Ghanaian economy has seen witnessed a
tremendous increase in its GDP growth. The last quarter of 2011’s growth rate of
34% over the previous quarter rate of 30% was seen as a huge plus for the
economy (Daily Graphic, 26/9/11) (Daily Graphic, 26/9/11)..
This increase was as a result of improvement being experienced in most sectors of the
economy—including the financial sector. The discovery of oil in commercial quantities
was also a contributor to this economic growth (source?).

 The inflation rate for the month of August 2011 was 8.9% (BOG Quarterly
Bulleting). Thus, in order to fight against the slowdown of the economy, the
Government of Ghana undertook many fiscal and monetary actions. Bombarded
with these various actions which lowered interest rates, the economy responded
quickly and positively by a decrease in inflation to its current rate of…?.
Furthermore, this economic growth brought with it increasing demand for
financial products and servicesThe current inflation rate in Ghana is 8.9% (BOG
Quarterly Bulletin Jan-March, 2011).(source?).

 The Bank of Ghana’s average base rate now stands at 12.5% (2011) (BOG
Quarterly Bulletin) and Interbank market weighted average rates range between
11.6% and 12.49% (2011) (BOG Quarterly Bulletin Jan-March, 2011)..

 TMoreover, the average interest/base rates of many banks now hovers around
23% (2011) . The only sad thing is that these rates may be perceived to be high as
compared to other developed economies (BOG Quarterly Bulletin Jan-March,
2011).
(source?)
 The growth in the financial sector has led to many customers being offered bank
loans at with low interest rates. The improvement in the economy has also

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encouraged the Government of the day to subsidize most inputs for the
manufacturing industry (BOG Quarterly Bulletin Jan-March, 2011).

 Many companies are also being given tax allowances to entice them to increase
their investment and to invite others to operate in the country. For instance many
rural banks are now being given a tax allowance of 10% (GIPC SECTOR Sector
PROFILE Profile OF of GHANA’S Ghana’s FINANCIAL Financial SERVICES
Services INDUSTRYIndustry).

Road constructions have also intensified in terms of infrastructural development.

However, with this, there has been an increase in both government borrowings and
spending. This indicates that the growth in the economy most definitely comes with a
cost (source?)

 The tradeoff between inflation and unemployment is also obvious in the economy.
Empirical evidence shows that graduate unemployment has inow increased. In
fact, it was observed that it is not uncommon to notice that most graduates after
leaving school have no jobs. Regardless of this, in the overall analysis of the
economy, it can be said that the banking sector has seen a very positive impact in
its growth as a result of the overall growth in the economy (Ministry of
Employment and Social Welfare publication, 2011).source?)

4.2 POLITICAL.

The political stability in Ghana has attracted many

banks into the country. Following significant
improvements in the financial system, there is no doubt

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that competition in the industry has by all means

increased. The Government of Ghana itself has shown a
strong commitment toward financial sector
development; in particular, the Cabinet approval in
2003 of the Financial Sector Strategic Plan (FINSSP)
with its aim at broadening and deepening the financial
sector (source?).

Improved governance in the financial markets also

remains an important focus for the continued reform
agenda; particularly given the prospect of greater
international and regional competition, as well as
opportunities for Ghanaian financial market
participants. In the past, the Bank of Ghana and the
ARP Apex Bank were both set up by the Government to
serve as oversight bodies for commercial and rural
banks. However, now, more is needed (source?)

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As part of Government financial sector reforms, a

number of laws have also been enacted. These include:

a. The Banking Act, 2004: (Act 673);

b. The Payment System Act, 2003: (Act 662);

c. The Long Term Savings Act, 2004: (Act 679);

d. The Venture Capital Fund Act, 2004: (Act 680);

e. The Insolvency Act, 2006: (Act 723);

f. The Foreign Exchange Act, 2006: (Act 723) (Exchange

Control Act);

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g. The Credit Reporting Act, 2006: (Act 726);

h. The Insurance Act, 2006: (Act 724);

i. The ARB Apex Bank Regulations, 2007: (LI 1825);

j. The Central Depository System Act, 2007: (Act 733),

and

k. The Banking Amendment Act, 2007: (Act 738)

(source?).

It is important to note that the Government affects the

performance of the banking sector mostly through
legislation and policy framing; it has also done so
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through its budget. Anyway, above all, the sector enjoys

the very support of the Government in all of its
functional and developmental activities (source?).

4.3 REGULATORY4.3 REGULATORY FACTORS

 The Bank of Ghana (BOG) is the overall supervisory and regulatory authority in
all matters relating to banking and non-banking financial business in Ghana. The
regulatory and legal framework within which banks, non-bank financial
institutions as well as forex bureaus operate in Ghana is the following:

• Bank of Ghana Act, 2002: (Act 612);

• Banking Act, 2004: (Act 673);

• Financial Institutions (Non-Bank) Law 1993, PNDC Law: (328);

• Companies Code Act 179, 1963;

• Bank of Ghana Notices/Directives/Circulars/Regulations (source?).

The Bank of Ghana (BOG) is therefore charged with the responsibility of ensuring that
the financial system in the country is stable enough to ensure that it serves as a facilitator
for wealth creation, economic growth and development (source?). The functions and
responsibilities of the Central Bank as a Regulator are defined in Act 612 and Act 673 as
follows:

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• To regulate, supervise and direct the banking system and credit system for the purpose
of ensuring the smooth operation of a safe and sound banking system;

• To appoint an officer designated as the Head of the Banking Supervision Department,

who shall be appointed by the Board of Directors;

• To consider and propose reforms of the laws relating to the banking business (source?).

The ARB Apex Bank generally acts as a “mini” central bank for the rural/community
banks under the supervision of the Bank of Ghana. Being a dedicated controlling bank,
the ARB Apex Bank therefore ensures the effective supervision of rural/community
banks (source?).

The mission of the ARB Apex Bank is to provide banking as well as non-banking support
services to the rural/community banks with the aim of improving their operational
efficiency, and therefore transforming them into efficient and credible financial
institutions which can affectively address the banking needs of the communities in which
they operate (source?).

The vision of the ARB Apex Bank is to promote the accelerated development of the rural
economy by providing them with cost-effective information and communication
technology-based banking through the rural/community banks and micro finance
institutions (MFIs) by the year 2015 (source?).

As part of its mission to monitor rural/community banks in Ghana, the bank of Ghana set
up The ARB Apex Bank Ltd under the then Banking Law, 1989 (PNDCL 225) as
repealed by the Banking Act 2004, (Act 673). Furthermore, the ARB Apex Bank Ltd is
regulated by ARB Apex Bank Regulation (L.I.1825) (source?).

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ARB Apex Bank has the following functions:

a) The provision of cheque clearing services. This directly addresses the constraints in
delays in cheque clearing through the big commercial banks;
b) The handling of cash movement and fund management services. This ensures the
effective and efficient management of the cash of rural/community banks;

c) The development of new innovative banking products. This is to enable more rural
dwellers to have access to banking products purposely designed to meet their needs;

d) The provision of inspection services. The provision of both on-site and off-site
inspection services addresses the problems of inadequate bookkeeping, the non-
observance of internal control measures and the lack of regular inspection of the
rural/community banks;

e) The provision of information technology support to successfully computerize

rural/community banks operations and to ensure the efficient handling of
data/information which will result in quality customer service;

f) The sourcing of funds for on-lending to the rural/community banks;

g) The training of staff and directors of rural/community banks. This ensures that the staff
and the management of rural/community banks will possess the requisite skills to
operate professionally (source?).

 ARP Apex Bank reforms have These reforms have strengthened both the
prudential regulatory framework and the supervisory capacities of the BOG. As a
result, bBanks have been are submitting relevant financial data on a regular basis
to the supervisors, and on siteon-site inspections are also being carried out (GIPC
Sector Profile of Ghana’s Financial Services Industry).
.

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 Moreover, in the case of rural banks, the ARP Apex bank is in charge. However,
Pprudential supervision of rural banks by the ARP Apex bank may become more
demanding in the next few years if the expansion of banks continues. (GIPC
Sector Profile of Ghana’s Financial Services IndustryGIPC, SECTOR PROFILE
OF GHANA’S FINANCIAL SERVICES INDUSTRY).

 The Bank of Ghana introduced a new licensing policy which allows only well-
established foreign banks into the domestic banking system. The policy is geared
towards supporting the development of a well-capitalized and robust financial
system (GIPC Sector Profile of Ghana’s Financial Services Industry).

4.4 INDUSTRY-RELATED FACTORS ANALYSIS

 The financial services industry encompasses a broad range of organizations that

deal with the management of money. In Ghana, the financial services industry is
categorized into three main sectors:

• Banking and Finance (including Non-Bank Financial Services and Forex Bureaus);

• Insurance; and

• Financial market/capital markets (source?).

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 Following significant improvements in the financial system, there is no doubt that

the sector is now in a better shape to play the effective role of harnessing financial
resources for the sustainable economic growth of the country (GIPC Sector
Profile of Ghana’s Financial Services Industry)..

 The Bank of Ghana introduced a new licensing policy which allows only well
established foreign banks into the domestic banking system. The policy is geared
towards supporting the development of a well-capitalized and robust financial
system (source?).

In 2006, the total assets of banks in Ghana grew by 40.9% to ¢5,837.8 billion, which
represented 90.7% of the total assets of the banking and non-banking financial
institutions. The rural/community banks accounted for 5% of the above figure, whereas
non-banking financial institutions accounted for 4.8% (source?).

 The banking industry has seen a significant growth in the past decade with more
local and foreign banks taking advantage of the current stability in the economy in
order to deliver their services (GIPC Sector Profile of Ghana’s Financial Services
Industry)..

 In February of 2008, the Bank of Ghana, following a broad consultation with the
banking industry on proposals embodied in the Bank of Ghana’s Consultation
Papers on Minimum Capital Requirements, set the minimum capital requirement
for obtaining a class 1 banking license (universal banking) at GH¢60 million.
Existing banks were also required to attain a minimum capitalization of GH¢ 60
million by December 31st, 2009 (Bank of Ghana Press ReleaseANK OF GHANA
PRESS RELEASE, February 14, 2008).

 Moreover, Ghanaian-owned banks were also given a longer time period to meet
the new minimum capital requirement. According to the Bank of Ghana, the
capitalization requirement constituted part of BoG’s strategy to deepen the

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financial sector and thus support Ghana’s drive for accelerated growth to achieve
a middle-income status. The resulting effect is that banks that have not met the
requirement so far have been observed to have collapsed or been absorbed by
other banks. One example is that of Access Bank absorbing Intercontinental Bank
(source?).

 The industry has also now become technological driven as most players in the
industry cannot do away with the use of technology in their service delivery. As a
result of this, The Bank of Ghana has since introduced its framework for risk-
based supervision to be able to meet the new challenges in the banking industry
with respect to new technologies, branch expansion, product innovation, size and
speed of financial transactions; and also as a precursor to the full implementation
of the Basel II accord (source?).

 This framework involves the critical identification of risks associated with the
operations of banks as well as the assessment of the management oversight
functions of risks in order to ascertain the effectiveness of these oversight
functions in order to mitigate the impact of risks. Furthermore, in the process,
banks would be compelled to focus more on their risk management systems in
order to facilitate their improvement and therefore improve the overall risk
management functions within the institutions in the industry (source?).

4.5 TECHNOLOGICAL FACTORS

 The industry has become technologically driven as most players in the industry
cannot do away with the use of technology in their service delivery. As a result of
this, the Bank of Ghana has since introduced its framework for risk-based
supervision to be able to meet the new challenges in the banking industry with
respect to new technologies, branch expansion, product innovation, size and
speed of financial transactions; and also as a precursor to the full implementation
of the Basel II accord (GIPC Sector Profile of Ghana’s Financial Services
Industry).

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In the final analysis, it can be said that there is no doubt that the industry has contributed
significantly to the current economic growth.

4.5 MARKET

The banking sector market in Ghana consists of both

banking and non banking financial institutions. Banks
in Ghana have been categorized as either commercial,
development, merchant or rural/community banks.
Furthermore, the market has seen a significant growth
due to the influx and establishment of more banks in
the economy (source?).

Developments in the banking system as of January 2008 have shown a continuous

upsurge in asset growth resulting primarily from credit expansion. Moreover, banks’
deposits and borrowings were used to fund this growth in assets. The market has also
become more sophisticated due to recent technological advancements (source?).

These are some of the factors which have strengthened and made the banking market
more competitive. The banks, knowing that the sector is highly characterized by high
customer contacts and individually customized services (where customer satisfaction has
always been an increasing focus of research) has always been adopting new ways of
responding to the activities in the banking market. Needless to say, the banks’ responses
have been to satisfy their customers with high quality services in order to win them, and
in the process, attain more customers. Most banks have even extended their working

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hours on weekdays, and have also been working on weekends in order to satisfy their
customer’s demands (source?).

Lastly, the dimensions of quality service have been acknowledge by most of the banks,
and they are therefore investing in capacity building in order to enhance customer
delivery. It will therefore be a disaster for any bank that does not respond to the
movements in the market, since that bank may be kicked out of the market as a result
(source?).

4.6 COMPETITIVE FACTORSION

The direct competitors of South Akim Rural Bank Limited include the following banks:
Competition cannot be left out when the issues of the current banking sector are being
discussed. Simply because of competition, most of the banks in the industry have been
accepting lower margins on their products/services. Moreover, in the face of stiff
competition, banks have also been introducing new products, services and strategies in
the market to achieve customer funds. It is also because of competition that most banks
have now extended their working hours during the week and have also been providing
services on Saturdays, as previously mentioned (source?).

Competition has also forced many banks to come up with more innovative products,
services, and packages in order to win more customers. Most banks now offer
promotional packages to customers/potential customers. For instance, some banks offer
houses, cars and other valuable gifts to their customers for banking with them or to bank
with them (source?).

Competition is good when it is healthy. It can ultimately lead to improvement in products

and services; but most of the time, it comes at a high cost to the supplier. For instance,
the extent of competitive rivalry in the industry has seen most banks accepting lower
margins. Nowadays, some banks virtually offer interest-free loans to their customers.
This is not surprising since the growth in the banking industry has made it possible for
customers to switch to a different bank at virtually no cost. The “zero balance account,”
in which no initial deposit is required to open an account, is just one example (source?).

When competition is not healthy, it can lead to banks compromising their core values to
achieve profitable returns. Therefore, in order to prevent banks from adopting dubious
ways and means of overcoming other banks, the Bank of Ghana has started the
publication of bank interest rates and charges in the newspapers and also on its website.
The Bank of Ghana, in addition, has collaborated with the Ghana Association of Bankers

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with respect to the introduction of the Annual Percentage Rate (APR) system for pricing
of credit to ensure full disclosure (source?).

The industry acknowledges well deserved banks annually through the Ghana Banking
Awards. Because of this, most banks strive to be rewarded by performing well through
quality customer delivery to their current and prospective customers (source?).

 National Investment Bank (NIB)

 Ghana Commercial Bank
 Barclay’s Bank

National Investment Bank

Strengths
 NIB provides very thorough customer service training for its frontline employees.

 NIB has gained a reputation in Ghana as being more willing than most other
banks to give out customer loans (Bank of Ghana Quarterly Bulletin, Jan-March,
2011).

Weaknesses
 Currently, the bank’s online and mobile services are not up to par with the rest of
the industry.

 NIB does not have a strong presence in all Ten Administrative Regions of Ghana.

 Recently, customers have been complaining of problems with NIB’s ATM

facilities.

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 NIB has been having challenges with its staff retention rates (Bank of Ghana
Quarterly Bulletin, Jan-March, 2011).

Threats posed to South Akim Rural Bank

 NIB is more attractive than South Akim Rural Bank in the area of loans.

 NIB has the potential to outdo South Akim Rural Bank in the area of
customer service.

Ghana Commercial Bank

Strengths
 The bank has a strong presence nationwide, as opposed to only having its
branches conglomerated in major cities.

 Ghana Commercial Bank is among the top three most widely known banks in
Ghana.

 Ghana Commercial Bank possesses a very loyal customer base of individual and
corporate clientele.

 The bank offers MasterCard services, as compared to other banks who only
specialize in the Visa debit/credit card (Bank of Ghana Quarterly Bulletin, Jan-
March, 2011).

Weaknesses
 Many customers have been complaining of slow service from the bank.

 The range of services offered is not as extensive as other universal banks in its
category.

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 Recently, the bank has been experience problems with its computer system during
business hours (Bank of Ghana Quarterly Bulletin, Jan-March, 2011).

Threats posed to South Akim Rural Bank

 The fact that the bank is more available in cities nationwide might appeal more to
customers who are fond of traveling.

 Due to the bank having a much longer existence in Ghana, citizens may view the
bank to be more reliable, considering Ghana’s history of banking (especially
during the PNDC era)

Barclay’s Bank

Strengths
 Barclay’s Bank possesses a wide range of services for individual and corporate
clientele.

 The bank’s interest rate for loans is highly competitive as compared to other
universal banks.

 Barclay’s Bank has a high customer retention rate as compared to the other banks
in its category.

 Recently, the bank’s asset management services have attracted a large wave of
new customers (Bank of Ghana Quarterly Bulletin, Jan-March, 2011).

Weaknesses
 Even though customer care is one of the bank’s core values, its
customers/potential customers have been complaining about this area.

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 In the last quarter of 2011, Barclay’s Bank had been experiencing liquidity
problems.

 In the midst of competition from other banks (mostly Nigerian banks), Barclay’s
Bank lost 10% of its market share in the last quarter of 2011 (Bank of Ghana
Quarterly Bulletin, Jan-March, 2011).

Threats posed to South Akim Rural Bank

 Many citizens are more aware of Barclay’s Bank than of South Akim Rural Bank
Ltd.


 Barclay’s Bank has a better reputation nationwide than South Akim Rural Bank
(relatively speaking).

 Barclay’s Bank’s wider range of services has the potential to appeal to more
customers.
4.7 TECHNOLOGY
Technology plays a very important role in banks’ internal control mechanisms as well as
in the services offered by them. Nowadays, banks are enthusiastically adopting new
technological innovations for the purpose of devising new products and services
(source?).

The latest developments in technology that are related to computers and

telecommunications have encouraged many bankers to change their concept of branch
banking to anywhere banking. The use of the ATM machine and Internet banking have
allowed the anytime, anywhere banking system to prevail. Furthermore, automatic voice
recorders now answer simple queries, currency accounting machines make the job easier,
and self-service counters are now being encouraged (source?).

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Furthermore, credit card facilities have encouraged an era of “a cashless society.” Today,
the MasterCard and Visa card are the two most popular cards being used worldwide. The
banks have now even started issuing smartcards, or debit cards, with the MasterCard and
Visa card logos, to be used for making payments (source?).

Some of the banks have also started facilitating home banking through the use of
terminals installed at customers’ homes where they can make a balance inquiry, retrieve a
statement of accounts, give instructions for fund transfers, etc. Through ECS (electronic
clearing services), one can even receive the dividends and interest directly to their
account, thereby avoiding the delay or the chance of losing the post (source)?

Today, banks are even using SMS (short messaging services) and the Internet as major
tools for promotions as well as for providing greater utility to their customers. SMS
functions through simple text messages sent from your mobile phone. The messages are
then recognized by the bank to provide you with the requested information (source?).

All of these technological changes have forced the banks to adopt a customer-based
approach instead of product-based approach. Technological41advancements have also
changed the face of the traditional banking system. Technology advancements now offer
24 hours a day, seven days a week banking, giving a faster and more secured service.
Needless to say, no bank in Ghana can survive now without the use of technology
(source?).

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CHAPTER FIVE

5.0 INTRODUCTION

This chapter captures the situational analysis of South Akim Rural Bank. The chapter
also looks at the external and internal evaluation of thelooks at South Akim Rural Bank’s
i) competitive analysis, ii) bank using the SWOT analysis, technique, and then d will
finally considers iii) the critical factors that are relevant to the survival of the Bank in the
Ghanaian banking industry.

5.1 SITUATIONAL AND COMPETITIVE ANALYSISCOMPETITIVE

ANALYSIS

The South Akim Rural Bank operates in a predominantly rural setting. Even though
Nankese, the Head Office, is now classified as suburban, four (4) of its main agencies
located at Suhum, Koforidua, Asamankese and Adoagyiri are urban in nature. The Bank
has no competitors at Nankese, orand Osenase. In Suhum, Koforidua, Asamankese and
Adoagyiri, however, the Bank has many competitors including Ghana Commercial Bank,
SG-SSB Bank, Merchant Bank, HFC Bank, Agricultural Development Bank, National
Investment Bank, Barclays Bank, and six (6) other rural banks, as well as non-formal
financial operators like such as susu collectors, private money lenders and credit unions.
Public institutions that offer credit to their staff also pose some sort of competition..

Despite this competition, South Akim Rural Bank has made and expects to continue to
make remarkable in-roads into the banking scene in the catchment area. At Adoagyiri, the
Bank faces competition from Ghana Commercial Bank Limited, Akuapem Rural Bank
and Citizens Rural Bank; all at neighbouringneighboring [Link].

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It is the objective of the Bank to ensure that deposits occur regularlydeposits are
sustained, even during the cocoa off-season when our numerous cocoa farmers have
virtually no income. Total deposits amounted to Five GH¢11,665,896.00 in the year
2010; with the following breakdown (South Akim Rural Bank Annual Report,
2010).Million Four Hundred and Twenty-Five Thousand Seven Hundred and Thirty-Nine
Ghana Cedis (GH¢5,425,739.00) by 31st December, 2007 mobilized from 35886
customers with the following breakdown:

-
Type of Account Deposit Mobilized Percentage of Total Deposit
GH¢ (%)

Savings 3,537,771 65.2

Current 1,116,160 20.6
Fixed Deposit 407,210 7.5
Susu Deposit 359,050 6.7
5,425,739 100.0

In terms of agencies the breakdown is as follows:-

Agency Deposit Mobilized Percentage to Total Deposit

GH¢ (%)

Koforidua 1,887,800.77 35
Suhum 1,427,128.76 26

Asamankese 1,358,647.98 25
Nankese 489,675.72 9
Adoagyiri 262,485.64 5
5,425,738.87 100

54.1.1 REASONS WHY CUSTOMERS SHOW INTEREST IN THE BANK

.

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The following information is based upon interviews with South Akim Rural Bank’s
customers:

The first is the effective personal attention paid to customers due toas a result of the good
Bankerbanker-Customer customer relationship between the Bank’s staff and customers.
Secondly, decisions are made quicker at in the Bank South Akim Rural Bank, unlike in at
the other major banks.

The Bank’s policiesy on loans and overdrafts to salaried workers has attracted a lot of
salary earners to the Bank as well. Loans to salaried workers are handled expeditiously,
while overdrafts bear far lower interest rates than what is charged by local money
lenders.

The Bank’s Micro-Finance Scheme, as well as including the Susu Savings and Loans
Scheme, are benefiting a lot of persons customers and are also becoming even more
popular and attractive. The Susu Scheme, started in March of , 2004, had a total deposit
of GH¢359,050.00 and mobilized GH¢998,110.00 from 4,161 customers as at the end of
December, 2010 07(South Akim Rural Bank Annual Report, 2010)..

It is true that the Bank has made a headway in spite of the its competition;, but still, the
Bank has a lot more education to undertakeknowledge to grasp in order to expand the
percentage of the population exposed to its banking services in its bid to sustain the
progress being made. T

The following represent the Bank’s current products:

-
i. Savings, Current, and Time Deposit Accounts;

ii. Bank of Ghana Treasury Bills and Government Stocks and Bonds;

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iii. ARB Apex Bank Placements (ACOD and REPO);

iv. Christmas and Payroll Savings;

v. Small to Medium Scale Agricultural and Commercial Loans and Overdrafts;

vi. Salary and Staff Loans;

vii. Micro-Finance Savings and Loan Schemes, including:

-
 → Susu;
 → Social Investment Fund (SIF);
 → Adwumapa Dwetiri;

viii. Foreign and Domestic Money Transfer; and lastly,

ix. The Bank intends to establish a well- grounded door-to-door (customer-specific)

collection of deposits in order to survive the competition in the urban areas (South
Akim Rurral Bank Annual Report, 2010)..

5.12 SWOT ANALYSIS

Assessment of the success of the bank’s Bank’s services delivery can be based on the
Strengths – Weaknesses – Opportunities – Threats (SWOT) analysis Analysis below:

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5.2.1 MARKETING OF THE BANK’S SERVICESINTERNAL

ENVIRONMENTAL ANALYSIS(STREANTH & WEAKNESS)

5.1.1 Marketing of the Bank’s Services

Strengths STRENGTHS

i. The i. Eestablishment of a Marketing Department to take care of the

marketing needs of the Bank has enhanced the Bank’s market share;
.
ii. Catering for small and medium scale and rural enterprises and salary earners
who lack access to institutional credit.
High awareness for customer-care.
ii. Dedicated and hardworking staff;
.
iii. Banking service brought to the doorstep of rural customers;
.
Enhancement of Corporate performance due to the completion of the Bank’s
Corporate Office.
iv. The establishment of an internal audit unit which has improved the Internal
internal Control control System system of the Bank;

v. .
vi. The effective use of the mass media; especially,, local F.M. radio stations at
Koforidua, which haves enhanced the image of the Bank in the catchment area;

vii. The .
viii. Oopening of an additional agency at Adoagyiri and mobilization centre at
Osenase to reach many more customers;

ix. The .

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x. Aavailability of operational vehicles to enhance mobility and customer

outreach; and

xi. Partial computerization of the Bank (including the fully computerized

Koforidua Branch) has enhanced the image and operational performance
(South Akim Rural Bank Corporate Plan 2008 – 2010, 2008).

.
WEAKNESSESxi. Partial computerization of the Bank (including the fully
computerized Koforidua Branch) has enhanced the image and operational performance.
Weaknesses
i.

i. The current partial computerization , however, holds back the Bank’s

operational performance. .

ii. The Bank, however, plans to implement a comprehensive computerization

programme for the head office and all agencies during the plan period.

ii. The average size of our the Bank’s loans is smaller than loans granted by the
its Bank’s major (orthodox) competitors. Thus, the Bank cannot attract big
businesses;

iii. .
The use of the manual system in the Bank’s operations results in delays in
applying interest due to customers on saving deposits and COT (cost of
transfer) calculations (South Akim Rural Bank Corporate Plan 2008 – 2010,
2008)..

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5.12.2 Charges and ServicesCHARGES AND SERVICES

StrengthsSTRENGTHS

i. i. The Bank charges lower ledger fees (COT) as compared to

other Banks;.

ii. The Bank pays interest on deposits for all accounts with a minimum balance
of GH¢20.00, but other competitors have upper ceilings for interest
payments (South Akim Rural Bank Corporate Plan 2008 – 2010, 2008). .

WeaknessWEAKNESSES

i. The Bank’s commitment fee of 3% to 5% as compared to 1-3% charged by

theirour competitors tends to repel and discourage customers (South Akim

Rural Bank Corporate Plan 2008 – 2010, 2008)..

5.12.3 DEPOSIT MOBILIZATION AND INVESTMENTS

StrengthsSTRENGTHS

i. i. The Bank is able to maintain primary and secondary reserves

above the requirements set by banking regulations;.

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ii.
iii. ii. The ability of the Bank to maintain an adequate deposit base
ensures that there are short-term investments from which the bank Bank
earns income to meet interest charges and improve its profitability;

iv. .
v. The handling of salaries for public sector officers and others ensures that
small balances are left on such accounts;, which taken together provides a
sizeable margin for the Bank;

vi. The Bank earns additional income through the investment of short-term
idle funds at the ARB Apex Bank;

vii. The effective use of media adverts, information van announcements and
raffles have enhanced the deposit mobilization ability of the Bank;

viii. Low account opening cash amounts of GH¢5.00 for individuals, business
names, and micro-finance groups, as well as GH¢20.00 for limited liability
companies both attract a lot of customers (South Akim Rural Bank
Corporate Plan 2008 – 2010, 2008).

.
The Bank earns additional income through investment of short-term idle funds at the
ARB Apex Bank.
The effective use of media adverts, information van announcements and raffles have
enhanced the deposit mobilization ability of the Bank.
Low account opening cash amounts of GH¢5.00 for individuals, business names and
micro-finance groups and GH¢20.00 for limited liability companies attract a lot of
customers.
The new Western Union Money Transfer programme will enhance deposit mobilizaton

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WeaknesseWEAKNESSESs

i. i. The Bank will have to re-activate its door-to-door mobilization

process in order to rope in the big commercial stores in the urban centres
as a supplement to the current mass media adverts used to maximize
deposit mobilization;

ii. .
iii. The fact of rural poverty may be blamed for the virtual wholesale
withdrawal of cocoa proceeds by farmers and of salaries by government
workers;.

iv.
v. The re-introduction of cash payment by buying companies in the
purchases of cocoa has greatly affected deposit mobilization and loan
recovery from the cocoa sector as against the Akuafo Cheque System,
which used to enhance mobilization and loan recovery;

vi. .
vii. The location of the Bank outside the main center of financial/money
market activities does not allow the Bank to take advantage of, for
instance, overnight cash placements (South Akim Rural Bank Corporate
Plan 2008 – 2010, 2008)..

5.12.4 CREDIT MANAGEMENT

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StrengthsSTRENGTHS

i. The Credit Department has been established with a Credit Manager and
full compliment of cCredit Officers officers to manage credit delivery
effectively within the Bank;

.
ii. TAdditionally, the recently established independent Micro Finance
Department headed by a full Manager charged to take care of all micro
finance activities (including micro credit) of the Bank, is effectively
complimenting the efforts of the Credit Department;

.
iii. The Bank has a decentralized structure for the disbursement of credit as
follows:

  Bank of Ghana’s ratification for loans of quantum

GH¢2,000.00 and above;.

 Board – approveds loans above GH¢5,000.00, once every month, for

Bank of Ghana’s ratification;.

 The Technical Committee – approveds loans bigger than GH

¢1,999.00, but not bigger than GH¢5,000, for Bank of Ghana’s
ratification once every month (i.e. before Board meetings every
month).

  The Chief Manager and Operations Manager – approved loans of

GH¢1,500.00, but not bigger than GH¢1,999.00, on a daily basis;
.
  The Credit Manager and Micro-Finance Manager – approved loans
of quantum up to GH¢1,000.00 daily;

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.
 Agency Heads – aapproved loans of quantum up to GH¢700.00
daily;.

 Additionally, the Chief Manager approves microfinance group loans

up to GH¢5,000.00;

 Loan approval and disbursements, thus, occur virtually on a daily

basis. The loan quantum approvable is revised from time to time;
.
iv. The Full full computerization of the Koforidua branch has facilitated loan
administration;, and this is expected to be so with all other branches once
they are fully computerized;
.
v. There is an effective structure for loan monitoring and recovery
championed by the Credit Manager and Micro Finance Manager aas well
asnd their Credit credit Officersofficers;
.
vi. The Bank regularly trains its credit staff to ensure efficient performance;

vii. Credit staff are motivated financially for enhanced performance (South
Akim Rural Bank Corporate Plan 2008 – 2010, 2008).

.
Credit Staff are motivated financially for enhanced performance.

WeaknessesWEAKNESSES

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i. i. The structure of the Bank, and most rural banks for that matter, is
such that they cannot grant large credits to big customers;

ii. The low capital base of the Bank limits the maximum amount to be
granted to an individual customer with or without security;

iii. The large number of borrowers makes monitoring and recovery exercises
rather difficult to administer;

iv. The lack of sufficient legally acceptable collateral security makes the
granting of large loans difficult;

v. The general attitude of rural folks towards credit from the Bank makes
their response to credit recovery passive, therefore resulting in large credit
overdues;

vi. The sprawling nature of the Bank’s catchment communities makes loan
monitoring and recovery difficult;

vii. The large number of microfinance groups does not make loan
administration easier (South Akim Rural Bank Corporate Plan 2008 –
2010, 2008).

The low capital base of the Bank limits the maximum amount
to be granted to an individual customer with or without
security.
The large number of borrowers make monitoring and recovery
exercise rather difficult to administer.

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The lack of sufficient legally acceptable collateral security

makes the granting of large loans difficult.
The general attitude of rural folks towards credit from the
Bank makes their response to credit recovery passive resulting
in large credit overdues.
The sprawling nature of the Bank’s catchment communities
makes loan monitoring and recovery difficult.
The large number of microfinance groups does not make loan
administration easier.

5.12.5 HUMAN RESOURCE STRATEGIES

A. a. StaffSTAFF

StrengthsSTRENGTHS

i. The Board endeavoursendeavors to engage qualified, competent and

efficient staff through public/open advertisement and selection interviews;
.
ii. The Board provides in-service and out-service training for staff to upgrade
their competence and levels of appreciation;
.
iii. Staff are motivated and relatively adequately remunerated;
.
iv. Junior staff are unionisedunionized and freely allowed to organize their
members;
.
v. Through A a friendly working environment, good physical structures and
good personal relations among Directors, Management and Staff enhance
the Bank’s operations;

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.
vi. A system of prompt staff annual assessment, annual incremental awards
and promotions, not excluding corrective/remedial actions against staff
and directors alike, serves as a motivation for positive attitude towards
work;
.
vii. Total computerization when achieved will reduce the large staff strength
and expenses run by the Bank currently (South Akim Rural Bank
Corporate Plan 2008 – 2010, 2008)..

WeaknessesWEAKNESSES

i. i. The large workload situation is a constraint in the face of non-

computerization;.

ii. High staff turnover due to departure for higher education and greener
pastures serves as a threat;
draws the Bank back.
iii. The generally low image of rural banks in Ghana makes recruitment of
highly qualified and competent staff difficult in the national labourlabor
market;

.
iv. Most new staff are generally inexperienced in banking, accounting and
finance, and need retraining and orientation (South Akim Rural Bank
Corporate Plan 2008 – 2010, 2008)..

B. MANAGEMENT

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STRENGTHS

i. The Bank has a competent staff to manage the Bank.

ii. The management Management is motivated through relatively adequate

and good conditions of service, and as well as the chance to further
develop their expertise and professional standing;.

iii. The management Management Tteam is headed by a Chief Manager who

co-ordinates the activities of the team Team and supervises the general
staff. He is aided by an Operations Manager who ensures that all branch
and department operations are synchronized and streamlined.
Management includes all branch managers and heads of departments..

iv. Fraud and malfeasance in the Bank has been minimal. They are brought
under effective control when detected..

v. The establishment of additional department’s like the Micro Finance

Department has enhanced the management Management ofin the Bank

(South Akim Rural Bank Corporate Plan 2008 – 2010, 2008).

WeaknessesWEAKNESSES

i. The skills and team-spirit of the staff and management need to be

improved upon in order to impact on their ability to deliver effective
services;
.

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ii. Management’s tendency not to adhere to internal control measures and

communication procedures of the Bank leads to hindered performance;
.
iii. The lLack of the ability to regularly initiate new products and improve
customer service plans draws back progress in the Bank;
.
iv. Lack of computerized management information systems is a limitation on
the Bank’s operational activities (South Akim Rural Bank Corporate Plan
2008 – 2010, 2008)..

C.
BOARD OF DIRECTORS
oard
StrengthsSTRENGTHS

i. The Board is made up of a diverse team of skillful and knowledgeable

persons with experience, commitment and the ability to provide strategic
direction for the Bank’s managementManagement;
.
ii. The Board, the membership of which is elected under a quota system, is a
fair representation of the catchment area covering the Head Office and all
agencies of the Bank;.

iii. The Board Members members are available and prepared to attend
meetings and work for the Bank’s growth;.

iv. Each Board Member member is assigned a specific responsibility to

ensure that everybody makes some contribution to the Bank’s operations;.

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v. The Board has a good working relationship with the staff and management
Management, as well as with customers;
.
vi. The Board has written policy documents to guide the Bank’s operations;

[Link] female has been co-opted onto the Board to ensure gender balance

(South Akim Rural Bank Corporate Plan 2008 – 2010, 2008)..

WeaknessWEAKNESSES

i. Not havingLack of a person with Information Communication Technology

(ICT) knowledge on the Board is a limitation (South Akim Rural Bank
Corporate Plan 2008 – 2010, 2008)..

5.12.6 COMPUTERIZATION

StrengthsSTRENGTHS

i. i. Easy availability of accurate reports from the

BankAccurate reports are easily available from the Bank;
.
ii. The ii. Eenhancement of the Bank’s corporate image for being
technologically up- to- date;
.
iii. The iii. Iincrease in revenue generation through prompt and accurate loan
and commission deductions;
.

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iv. The iv. Rreduced turn around time for all transactions;
.
v. The v. Rreduction in paper work;
.
vi. vi. No overtime activities, hence, reduced staff costs;
.
vii. vii. Quick access to customer statements;
.
viii. viii. Automatic ledger balancing, interest/COT calculation and
posting;
.
ix. ix. Loan deduction is perfect with no deferment (South Akim
Rural Bank Corporate Plan 2008 – 2010, 2008)..

WeaknessWEAKNESSES

i. High initial costs of installation of computers, generators, LAN and

ii. WAN;
.
iii. Training is costly and expensive during transition and
iv. Implementationimplementation;
.
v. iii. Problems inherent in the software in use, which
pose challenges;
.
iv. Technical support for the computerization is a challenge since the
availability of I.C.T personnel is both scarce and expensive (South Akim
Rural Bank Corporate Plan 2008 – 2010, 2008)..

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5.3 B. EXTERNAL ENVIRONMENTAL ANALYSIS

OpportunitiesOPPORTUNITIES

i. The Bank’s compliance with the legal and other regulations, such as the
Banking Act, 2004 (Act 673) of the Bank of Ghana and the ARB Apex
Bank, has enhanced its public image and performance, and can do so in the
future.

ii. In order to achieve economic growth, South Akim Rural Bank has
expanded its r e s e a r c h & development department. Because the focus
of this department is to introduce and innovate new products & services, it
has the potential of drawing new customers and retaining already existing
ones.

iii. One of the Bank’s recent strategies is to offer a full portfolio of services,
thereby providing a wide range of cross-selling opportunities.

iv. The Bank can increase its advertisements of new products, services, and
vacancies in order to effectively increase its customers as well as its
competent employees.

v. The Bank’s initiative of conducting effective communication with

customers can lead the organization toward success.

vi. The availability of local F.M. radio stations will enable the Bank to reach
out to a large number of customers (South Akim Rural Bank Corporate
Plan 2008 – 2010, 2008).

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i. i. Corporate tax of 8% for rural banks compared to the major banks

gives the Bank the opportunity to retain a sizeable portion of its profits for
reinvestment.
The limit of credit that requires Bank of Ghana’s ratification which currently stands at
GH¢2,000.00 is scheduled to be removed altogether soon to enhance credit delivery.
The mandatory Bank of Ghana Secondary Reserve Ratio which has
been reduced to 20% helps to protect customer deposits and
generate income to the banks, and at the same time allows the
Bank to hold an appreciable amount of cash for credit
administration.
Relative political stability at the national and local levels has accounted to
a large extent for the Bank’s stable existence.
ii. The government supports the continuous operation of rural banks.
iii. Exemption of rural banks from the national reconstruction levy as
compared to major banks allows the Bank to retain profits for its
operations.
iv. The relatively favourable ecological environment for farming which
gives income to the majority of the population boosts up the Bank’s
operations.
v. The existence of good road network and communication linkage of
telephone enhances the Bank’s operations.
vi. The availability of local F.M. radio stations enable the Bank to reach
out to a large number of customers.
vii. The Bank’s compliance with the legal and other regulations such as
the Banking Act, 2004 (Act 673) of Bank of Ghana and ARB Apex
Bank has enhanced the image and performance of the Bank.

Threats THREATS

i. Money lenders, credit unions and susu collectors in the catchment area all
compete with the Bank.

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.
ii The closure of some distressed rural banks (e.g. Abuakwa, South
Akwapim) and negative publicity affects the image of the BankBank’s
image.
.
iii. The timber timber rationalization law has negatively affected the incomes
of key customers in the sawmill industry.
.
iv The generallyGenerally low income of farmers and low agricultural
output from subsistence farming militates against deposit mobilization.
.
v. The absence of total computerization, as compared to the major
competitors, is a constraint.
.
vi. The cost of applying modern technology has inhibited the Bank from
adopting such technology..

5.4 6.1 CRITICAL SUCCESS FACTORS

Research has indicated that service quality has been increasingly recognized as a critical
factor in the success of any business (Parasuraman et al., 1988); and the banking sector,
in this case, is not exceptionalno exception. In fact, The the success of most profitable
organizations banks ishas been as as a result of quality customer service.

. In Ghana, and the world at large, Service service quality has been widely used to
evaluate the performance of banking services. The success and survival of any institution
in the banking industry, and for that matter, community rural banks, highly depends upon
the identification and performance in some factors areas that are used to assess quality
service in the industry. Hence, the performance in these factors areas is critical to the
success in the banking industry (Brady and Cronin, 2001)..

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these These particular areas, or success factors, can be termed the dimensions used in
measuring or assessing quality customers service delivery in the banking industry. With
that said, South Akim Rural Bank limited Limited and other banks may be out of
business if they perform poorly in these dimensions of quality service.

For every banking industry which includes Ghana, Parasuraman et al. (1985) identified
11 dimensions of service quality; namely,: 1) reliability, 2) responsiveness,
3) competence, 4) access, 5) courtesy, 6) communication, 7) credibility, 8) security,
9) competence, 10) understanding the customer, and 11) tangibles.

Berry et al. (1985) and Zeithaml and Bitner (1996), on the other hand, also indicated
that service quality consists of five dimensions: 1) tangibles (appearance of physical
facilities, equipment, personnel, and written materials), 2) reliability (ability to perform
the promised service dependably and accurately), 3) responsiveness (willingness to help
customers and provide prompt service), 4) assurance (knowledge and courtesy of
employees and their ability to inspire trust and confidence), and 5) empathy (caring and
individual attention the firm provides its customers). However, they concluded that
Reliability reliability is considered to be the essential core of service quality.

Stafford (1996), however, focused on customer services inon seven dimensions, such as
1) bank atmosphere, 2) relationships, 3) rates and charges, 4) available and convenient
service, 5) ATM, 6) reliability/honesty of the bank personnel, and 7) facilities of bank
counters (tellers).

Another good effective study has beenwas done conducted by Johnston (1995) in which
he provides provided 18 service dimensions and their definitions. These service
dimension were::

1) access, 2) aesthetics, 3) attentiveness, 4) availability, 5) care, 6) cleanliness/tidiness,

7) comfort, 8) commitment, 9) communication, 10) competence, 11) courtesy,

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12) flexibility, 13) friendliness, 14) functionality, 15) integrity, 16) reliability,
17) responsiveness, and 18) security.

Upon considering the above studies, we have constructed four dimensionsfive

dimensions of service quality have been constructed: 1) Reliability, 2) Responsiveness, 3)
(Tangiblesreliability, 4)
competenceAssurance, and 5 ) Empathy. tangibles, and empathy),
which These all cover the 18 parameters/scale (Table I).

The degree of perception of customers on the parameters is quantified by using a four-

point Likert scale.

TABLE I:

Service Quality Dimensions ParamatersScale/ParametersScale

Reliability

1. Customer support
2. Good manners
and hospitality
3. Resolving
customer grievances
4. Imposing of
service charge
5. Return of
customers’ deposit

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Competence Responsiveness

6. Promptness and accuracy in transactions

7. Safety of
customers’ investmentAvailability of bank personnel
8. Keep
confidentiality of accounts and
transactionsUnderstanding the needs of customers
9. Various kinds of
service offered
Compliance with regulatory requirements
10. Reputation of the
bankHandling of customer complaints and inquiries

Tangibles

11. Infrastructure facilities such as parking, ATM, etc.

12. Banking network
13. Modern
equipment and de´cor
14. Internet banking

Assurance
15. Courtesy of employees
16. Ability to portray trust and confidence
17. Showing gratitude to customers
18. Making the customer paramount

Empathy

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195. Easy to operate account

2016. Convenient
business hours

2117. Different
income-earning options
2218. Providing
prompt information to customers

The banks understand that customers will be loyal if they receive greater value from the
bank than from its ccompetitors (Dawes and Swailes, 1999). Oand on the other hand,
banks can earn high profitsbecome very profitable if they are able to position themselves
better than their competitors within a specific market (Davies et al., 1995); in fact, tthis is
no exception in Ghana. Therefore, banks need only to focus on service quality as a core
competitive strategy.

Moreover, banks all over the world offer similar kinds of services, and at each
opportunity, try to quickly match their competitors’ innovations. It can be noted that,
despite this, customers can perceive differences in the quality of service offered by each
bank. Moreover, customers evaluate banks’ performances mainly on the basis of their
personal contacts and interactions (South Aki Rural Bank Corporate Plan, 2008 – 2010)..

In summary, It it is can be said indeed true that a high quality of service leads to customer
satisfaction, and loyalty, the and greater willingness to suggest and or recommend to
someone else, reduction in customer complaints, and improved customer retention rates,
es to a great and the greater willingness to suggest and/or recommend the firm to
someone else.

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CHAPTER SIX: CENTRAL MANAGERIAL ISSUES

6.1 INTRODUCTION
This chapter focuses on the identification of the central managerial issues of the sStudy
and it also seeks to analyze the responses that were received from the customers of the
sSouth akim Akim rural Rural bank Bank from through the questionnaires issued and
follow up interviews conducted.

It also discusses the major findings that emerge from the study. the finding dwell on the
premise of the previous chapters. The findings are presented in tables and charts.
Most of the respondents were also individuals of respectable customer status, meaning
that they didn’t have any outstanding delinquent issues with the Bank.. A total of 120
(one hundred and twentyand twenty) 120 questionnaires were issued to 120 to (one
hundred and twenty) customers: 30 (divisible by thirty) questionaresquestionnaires each
to customers at each of the four branches; namely, at koforiduaKoforidua, suhumSuhum,
Nankase and Adoagyiri. Of the 120 questionnaires distributed, 97 (ninety-seven) were
fully completed and returned; with the rate being approximately 80.83%.

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Twenty separate (For management and staff20) open-ended ,(twenty )semi-

questionnaires was were administered to the Management and staff at themtheir head
branch at Nankase. Fortunately for the researcher, all were fully completed and returned.

Fortunately for the researcher ninety seven of the overall one hundred and twenty
questionnaires were fully completed and returned. With the rate being over 80%.
6.2 MANAGEMENT VIEW ON CUSTOMER SERVICE.
‘’Customer service is given prominence in at South Akim rural Rural bank’’ Bank,’’ says
a the Koforidua branch’s Branch mangerManager. ‘’Mmanagement believes that
customerthat customer service ensures satisfaction and profitability forprofitability for an
every organization. Therefore, as a result, we offer training to staff; provideing the
necessary logisticsnecessary logistics to enhance quality customer service; giveen
customers thecustomers the opportunity to complain; createing an enabling environment
to deliver good customer service; and ensureing that all customers’ needs are met. All of
these, are what goes into customer service at South Akim rural Rural bank’’ Bank.’’
declared by the Koforidua branch manager.

On the issue of how the bank measures the effectiveness of customer service,
management Management answered answered that reliabilitythe , number of complaints
among others aremade by customers is basically the most prominent factor that is used to
ensure measure the level of quality service given to customers on a quarterly basis. They
also mentioned agree that , customer complaints are collated through suggestion boxes
and the verbal comments they sometime make to Managements.

Management, however, admitteds that, quality customer service does in fact comes with a
cost; namely, .’’ The the cost involved in training personneltraining personnel and
creating an enabling environment to deliver customer caree is a cost. Also Furthermore,
Management also explained how the unawareness lack of awareness to many customers
concerning of some of their products services orand services products to most customers
is has also proven also to be a big challenge to for them.’ Therefore, as a result of this,
they have put mechanisms in place to address this and other challenges.

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In fact, one important mechanism that they cited was: consistently creating the awareness
of customers about their unknown products and services through the airwaves, especially
in the local dialect—Twi.

Management eventually acknowledged that the success of South Akim Rural Bank will
be, to a large extent, dependent on how well they are able to relate with their customers in
diverse ways.

declared by a manger. Management say that, they have therefore put mechanisms in place
to address some of these challenges. They include:’’ consistently creating the awareness
of customers about their unkwon services and products through the airwaves, especially
in local language’’. Management eventually, acknowledged that the success of the South
Akim rural bank depends on how well they relate with their customers in all diverse
ways.
6.2 STAFF / EMPLOYEES VIEWS ON CUSTOMER SERVICE.

The opinion of staff on about their knowledge on of quality customer service and its
contribution to the Bbank achieving its objectives seemed moderate as they had little to
talk say about it. The mMajority of the staff expressed their dissatisfaction of with
working with the South Akim rural the bank Bank due to inconsistentthe and lack of
adequate logistics to facilitate effective service delivery. The Staff staff also expressed
their viewsthat they had been expecting a lot more from management Management over
the years on concerning capacity building in other order for them to be able to perform
much bettercompete in the competitive banking environment than they are doing now.

With regards to the challenges in delivering customer service, staff had this to say;this is
what the staff had to say:

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Pproblems like such as long queues, system time outs, insufficient pay-in and
withdrawal booklets, system failures and inadequate money counting money machines
are some of the problems that hinders effective customer service delivery.

When Management were asked as to what mechanisms they have had put in place as for
staff to salvage these problems,. tThey responded that:,

Tthey had to follow the bank Bank’s policies and procedures in resolving sucresolving
such h challenges; moreover, and since it was has been out of their control, they could
do littlethere is very little they can do about it.

They However, they did mention that Mhowever said that, management are has been
made aware of these problems during interactions with them staff, ands they also did
suggest to Mmanagement that they shouldo acquire efficient servers for their systems,
thereby upgrading the current system to avoid excessive time outs of the systems.

They also suggested that, more money counting machines and as well as televisions
should be provided in order to improve the speed in counting moneyat which money has
been counted, and to also reduces customers stress while they are being served during
long queues.

6.4 CUSTOMER VIEWS ON SERVICE DELIVERY AT SOUTH AKIM RURAL

BANK

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’ complaint within our scope are solved by us and those beyond us are referred to the
appropriate persons for solution. We also handle complaints with due care and diligence
in order not to increase customer frustration’’.

6.4 CUSTOMERS VIEW ONSERVCE DELIVERY AT SOUTH AKIM RURAL

BANK.
The tables below elaborate ons the rate of responses from customers of at South Akim
rural Rural bankBank. T. As this is based on the selected dimensions of quality included
and categorized in the questionnaire.

RELIABILITY:

TABLE 1
SCALE INTERPRETATION NO. OF PERCENTAGE
RESSSPONSCES (%)
O0-3 POOR 26 27
4-5 AVERAGE 43 44
6-7 GOOD 25 26
8-10 EXCELLENT 3 3

FIG. 1I (RELIABILITY)

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From the tTable 1, the respondents stated that the South Akim Rural bank Bank is
somewhat unreliable. Many of the respondents stated that a reason for this is because of
the nature of long queues they have always been experiencingalways experienced in at
the bank. They, however, also stated that the bank was in fact reliable in their
transactions.

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The total populationpercentage of the population that rated the reliability of the South
Akim Rural bank Bank to beas been poorpoor ie was 27%; the percentage who rated it as
being average was . An average of 44%; 26% rated it as being good; while 3% rated the
bank’s reliability as being excellent.

In summary, was rated for the bank reliability .a total of 2630% rated the Bank’s
reliability as positive, while 70% were dissatisfied with the Bank’s reliability.
Furthermore, reliability has been shown to be one of the critical factors which determines
a customer’s choice of a service provider. It would therefore be frustrating if a customer
could not access a service at a time when he/she desired to.

The effect of unreliability would by all means be a disappointment; and this would
ultimately chase customers away.

good whiles 3% rated reliability as excellent. On overall, 30% rated reliability as positive
while 70 % are dissatisfied with the bank reliability . reliability is one of the critical
factors that determines the customer’s choice of a service provider. It would be
frustrating if a customer cannot access a service at a time the customer desires. The effect
of unreliability is disappointment and this will chase customers away.

RESPONSIVENESS:

TABLE 2

SCALE INTERPRETATION NO. OF PERCENTAGE

RESSPONCSES (%)
0O-3 POOR 35 36
4-5 AVERAGE 40 41
6-7 GOOD 16 17
8-10 EXCELLENT 6 6

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FIG. 2 II(RESPONSIVENESS)

Customers’ responses from the componentwith regard to of the responsiveness of the

South Akim Rural Bank to their needs: .

64% agreed More than 70% disagreed about 30% agreed that the bank Bank was
responsive to their needs, whereas, 36% disagreed. With regard to the . Customers
expressed their likelihood of withdrawing that they would cancel all of their business
transactions from with the bankBank,. only But few of the customers remained positive
that the bank was responsive to their needs and that therethey were never going to
withdraw cancel their transactions from with the South Akim Rural Bank. Table 2 and
figure Figure II 2 elaborate ons this analysis.

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TANGIBLES:

TABLE 3.

SCALE INTERPRETATION NO. OF RESSPONSCES PERCENTAGE (%)

0O-3 POOR 69 71
4-5 AVERAGE 6 6
6-7 GOOD 13 13
8-10 EXCELLENT 9 10

FIG. 3III (TANGIBLES)

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This dimension considers the infrastructure and physical environment of the bankBank.
From Tthe table 3, the 71% poor rating is attributed to the South Akim Rural Bank not
having Automated Teller Machines (ATM).

On the other hand, Generally, majority of the customers of 293% of the customers rated
the infrastructure of the bank Bank as being quite okacceptable in their opinion. for their
expectation. These Customers customers were satisfied with this dimensionthe Bank
despite the absence of the ATM machiness’. s. they They also understood that the
majority of rural banks do not have ATM’s and that it was normal for their bank to also
lack this at facility. The customers, overall, were unhappy with the physical environment
of the South Akim Rural Bank with regard to the cleanliness of its compound as well as
its decor.

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ASSUaRANCE:
.
TABLE VI4

SCALE INTERPRETATION NO. OF PERCENTAGE

RESSPONSCES (%)
0O-3 POOR 12 12
4-5 AVERAGE 21 22
6-7 GOOD 43 44
8-10 EXCELLENT 21 22

FIG. 4 VI(ASSUaRANCE)

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The knowledge and courtesy of employees and their ability to convey trust and
confidence to customers was highly rated on aggregate of 66%agreed upon by 88% of the
customers. by the customers as better. Most of these customers commented that, among

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other nice gestures, the bank Bank’s staff were fond of normally thanking them for
banking with them.

But On the other hand, a small 12% 36% of the customers held the viewremained that the
South Akim Rrural Bbank’s staffs weare not courteous and or polite at all. South Akim
Rural bank must not be complacent with this rating. The bank should improve on the
dimension of assurance to the entire customers. This is shown in table four and fig. VI

EMPATHY:

TABLE 5
V
SCALE INTERPRETATION NO. OF PERCENTAGE
RESSPONSCES (%)
0O-3 POOR 36 37
4-5 AVERAGE 39 40
6-7 GOOD 16 17
8-10 EXCELLENT 6 6

FIG. 5 V(EMPATHY)

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Table V 5 shows that, the caring, individualized attention provided to customer

atcustomers at the South Akim Rural Bank is was poorly rated by 37% of the customers;.
44% rated it on as average; while 17% rated it as good; and 6% rated the bank empathy
as good andit as excellent respectively.

An aggregateOn aggregate 8163% of the customers weare not satisfied with way the
attention is being given to them by the Bank, while 37% were not. This is satisfactory,
and therefore, the Bank should continue with this strength and possibly improve on it as
much as possible by “going the extra mile” to impress its customers. This is a significant
number and the bank needs to take it on seriously because this may lead to loss of their
customers. The customers believe that, the bank is not doing much enough in going extra
mile to solve their challenges. They claim that ,the attention sometimes given to them is
very bad. However, about 19% had a different view as they believe that, they were
comfortable with the attention given to them by the bank.

As a matter of fact, cEventually, customers also expressed their opinions about what the
Bbank should do toneeds to do specifically in order to improve their services. The most
common responses The obvious ones were:

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1) ; South Akim Rural Bank should improve on the wait timeprovide services more
speedily; 2) they should know how to communicate more gently with their customers;
and lastly, 3) they should improve upon having adequate personnel at all times to service
their customers.

, they should be innovative ,they should know how to communicate well with their
customers and above all the bank should have adequate personnel to serve customers
6.5 MANAGERIAL ISSUES
The key managerial issues identified after the both internal and external analyses as well
as the interviews with managers were conducted were the following:

 South Akim Rural Bank Limited must strive to eliminate non-customer service
functions from frontline employees roles in order to endeavor staff to consistently
provide great customer service. Whether a customer approaches the teller line, or
approaches a loan officer, standards of conduct and greeting must be instituted to
guide the interaction.

 The hiring of staff must increase in order to reflect the technological advantage of
computer systems. In doing so, South Akim Rural Bank must hire based on
attitude first.

 The challenges posed by their corporate plan, coupled with the ever-changing
economic environment within which the corporate objectives of South Akim
Rural Bank must be realized, requires seasoned management to implement,
monitor and control in order for the goals and targets set to be achieved.

 The Bank’s employees must be motivated in order to understand their role within
the customer-focused culture; preferably through one-on-one coaching,

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accountability at all levels, performance evaluation and performance-based

rewards.

 The debt collection department must use a standard set of procedures for working
with debtors and delinquent customers. The uniformity of implementation of
these procedures is seen as critical to good customer service.

CHAPTER SEVEN:

7.0 CONCLUSIONS AND RECCOMMENDATIONS

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7.0 INTRODUCTION
This chapter focuses on the conclusions and recommendations. The conclusions will
summarize the findings of the study, and the recommendation will look articulate at the
plan of action that is suggested by the researcher.

7.1 REVIEW
The Management of South Akim Rural Bank acknowledged that, customer services is
given prominenprominent attentionce in at South Akim rural bank the Bank, and that it is
also handled by all respective employees in the bankof its employees. Staff are being
trained, customer service delivery is measured on a quarterly period basebasis, and on
some of the dimensions of quality service , measures are put in place to solve customer
problems. Management also acknowledged the fact that, the success of the bank Bank
mostly depends upon quality customer service implementations.

On As for the opinion of the staff, they expressed their dissatisfaction on the poor way in
whichly way operational problems in the bank are handledare handled at the Bank. The
Staff staff are not also happy foralso complains about the lack of requisite logistics at the
bankBank. They, however, strive to solve customer these problems within their capacity
and sometimes refer challenges that are out of their control to managementManagement.
Staff also affirmed that the success of the bank Bank depends mostly on quality customer
service.

The study also revealed that, a high large number of customers are were dissatisfied
satisfied with the Bbank’s customer service delivery in most of the dimensions of service
qualityquality service selected for the questionnaires. In this caseMoreover, the highest
customers’ perceptions and satisfaction satisfaction are was observed to be in the
demonstrated in the tangibles’Assurance’ area, referring to the courtesy of employees and
their ability to convey trust and confidence to customers. On the other hand, the lowest

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satisfaction was in the ‘Tangibles’ area, which considered the infrastructure and physical
environment of the Bank.
In order of the area with the most satisfaction to the area with the least satisfaction, the
dimensions of quality service can be ranked accordingly:

1) Assurance; 2) Reliability; 3) Responsiveness; 4) Empathy; 5) Tangibles

Furthermore, such as infrastructure facilities of the bank despite the absence of ATMs,
followed by the assurance, like staff thanking them for their business. On the other
hand, the lowest Perceptions and satisfaction are in the responsiveness, empathy area
such as quick service when there is a queue, and followed by reliability, such as
customers’ guidance. Tthe results and verbal comments from the respondents indicated
that reliability and responsiveness are were the two most critical dimensions of service
quality which are were directly related to overall service quality.
More so, responsiveness and reliability have been shown to be important factors in
quality service, supporting a previous work by Berry, Zeithaml, and Parasuraman (1985)
and Avkiran (1994).

Furthermore, due toBecause of the wide variation of responses, the South Akim Rural
bank Bank needs to consider the weak areas in order to meet customer expectations.

The study also revealed that, customers have the opportunity to lodge complaints,
however, but customers are quick to add that, they are dissatisfied about with the way
their complaints are being being handled. Finally, the study study disclosed revealed that
South Akim rural Rural bank Bank does not have a well- defined customer service unit.

7.21 CONCLUSIONS
The future organizational market leaders are the organizations whose strategies are based
on delivering superior qualitycustomer service to customers. The dDelivering of
outstanding customer service will, by all means, l form a critical part of future business

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strategies. It is also important to mention that it is most likely that and as such the
challenges in service delivery is are never going to end.

a A loyal customer is, and has always been, a precious commodity. no longer canGone
are the days when customers customers could be regarded as an endless stream of
convenient cashh machine that who patronize a service offered tooffered to them without
complaining about poor services rendered, failed promises, and/or arrogant service
attendantattitudes displayed by staff.

It needs to beshould further be emphasized that, customers buy value and not just
services or products, and therefore, as all operations should gear concern enhancing
operational excellence, customer intimacy and service leadership.

Again, complaints needs to be handled very effectively. In fact, This this is a significant
factor part of in customer service. Customers who have major problems and do not
complain have a purchase intention of only 9%. Therefore about 91% will be lost as a
result of one issues or another.

Conclusively, the The key customer service point for every organization especially the
South Akim Rural Bank is to bear in mind in its operation. Henceforth the need for
enhancing customer service initiatives in South Akim rural Rural bank Bank is
paramount and should be focus on both internal and external customers to ensure long-
term investments for future growth and profitability.

7.2 3 RECOMMENDATIONS
Excellent customer service can enable the South Akim Rural Bank to differentiate itself
from its competitors, increase the reputation of the bankBank, increase the bank Bank’s

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profitability, and high increase customer retention, among other benefits. With that being
said, rReliability is an obvious important place to start.

Customers want to know that their resources are safe and within trustworthy
[Link]. A way to ensure this peace of mind would be for the Mmanagement of
the South Akim Rural bank Bank to taketo take steps to take steps to ensure that the staff
are well- trained, so that each bank associate is able to offer complete and comprehensive
information to customers at all times.

Consistent policies combined with a knowledgeable staff will can foster a high degree of
institutional cohesion and reliability, and should also be the attitude that the management
Management and staff of the South Akim rural Rural banks Bank should adopt.

Responsiveness, again when associated with a well-trained staff and timely answers to
service-related questions of thefrom bank customers, would make significant inroads into
causing various banking institutions, including the South Akim rural Rural bank Bank,
to be regarded as responsiveresponsible. Furthermore, the Staff should be encouraged to
present relevant options to banking customers in a manner that does not resemble
salesmanship so much as a desire to serve.

Intangibles pleases customers just as much as tangibles do in the banking industry. In

fact, . customers customers tend to visit the a branch of a bank over and over again,
Usually especially if the location islocation is close to their home or their workplace. It is
natural that customers become comfortable and habituated to the branch of a banks, for
the same reason they develop familiarity with a neighborhood supermarket or
convenience store. It would therefore make s sense that the South Akim Rural bank Bank
employees would should be encouraged to learn to recognize these regular customers,
learn their names, and begin to identify their basic service requirements.

Learning to understand customers needs will allow bank associates to offer enhanced
services, perhaps lowering customers’ banking costs and increasing their investment

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potential. This could also open up the possibility of increased profits for banks, for when
perceived as more service and customer oriented, they will, in effect, become a useful
and pleasant way to “shop.” In essence, this article argues for continued decentralization
of banking services of the South Akim Rural Bank, which would allow convenient access
and yet the old-fashioned service of a smaller community. For instance the bank could
recruit susu collectors to reach out to the simple traders in the market. Keeping these
smaller branch locations presentable and up-to-date technologically are important factors.
The idea of increasing multiple maintenance expenses, in terms of staffing, technology,
and the cosmetic upkeep of many branches, must be regarded as a cost of doing business.
If the staff Inside the bank is pleasant and well-informed, in an aesthetically pleasing
environment, then customer satisfaction will be high.
With regard to long waiting queues, Ques is inevitable at the South Akim Rural Bank ,
however it is always could better to minimise the stress. the bank can reduce the waiting
time by having more tellers available to serve during peak periods. Comfortable seats can
also be provided in the Bbank for customers to seat whiles waiting to be served.
Alternatively In addition, the bank Bank can provide television setss in the banking hall
for customers tocustomers to view while waitingwhile waiting to be served. More so,
the process involved in serving customers could be made less cumbersome during the
peak periods. They could also arrange customers cues on the services they require. For
example cash deposit cue, cash withdrawal cues etc.

To reduce uncertainty and doubt among customers while being served, explanations or
information should be offered. Above all, agents should be made to move around to
control the cues whiles customers are being served. Complaints are essential source of
input to help an organization boost its customer satisfaction. The bank Bank can also
innovate find other ways of collating customer complaints such as through the use oflike
toll-free numbersphone lines, comment cards, and customer service desks. Complaints
must also be dealt with once they arise and should not be accumulated on a quarterly
basis.

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Management could also improve on the current and introduce innovative technological
services to entice customer service delivery. Mobile banking, online banking , ATM’s
and its their related cards like such as credit/debit cards visa card, credit cards could be
introduced to the customers of the bankBank. Educating their staff and customers on
these services will also motivate the use of them, it especially the ATM machiness.
IT professionals could be employed to handle and maintain these technological gadgets to
make it reliable and to avoid system failures. The five-dimensional structure could
possibly serve as a meaningful framework for tracking a firm’s service quality
performance over time and comparing it against the performance of competitors. The
wording of some individual items may need to be customized to each service setting.
Items on some dimensions should be expanded if that is necessary for reliability.
Thus, the banking industries must continuously measure and improve these dimensions in
order to gain customers’ loyalty.

7.43 . LIMITATION OF THE RESEARCH AND FUTURE RESEARCH:

Three limitations have been identified in this study.

 First, the limited number of the bankSouth Akim Rural Bank branches (only four
bank branches) covered under the study.

 Second, the sample size and the number of actual respondents wereare limited.

 ,Finally more so, financial difficulties in movement to and from the bank Bank
branches located in different towns. and finally, a more robust analysis is needed
to reach a strong conclusion.

In order to greatly contribute to the existing body of knowledge about customer

satisfaction within the South Akim Rural Bank in the Easternthe Eastern Region, it is

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highly recommended that similar future research could should be conducted by taking in
all the branches of the bank Bank into consideration.

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CHAPTER EIGHT

8.0 IMPLEMENTATION OF THE RECOMMENATIONS.

This chapter considers the implementation of the recommendations made. The
implementation will involve reviewing the resource requirements and availability, both in
terms of monetary and as well as non- monetary, at the South Akim Rural Bank.
Monitoring and evaluation will also be considered. After all, an audit and review should
be undertaken to determine the benefits ofbenefits of monetary, as well as of non-
monetary, resource requirements against costs incurred.

According to Gartner Group, “Organizations must begin to evaluate customer service as

a competitive weapon and make appropriate investments in infrastructure, cultures,
people and processes." This, the South Akim Rural Bank must adopt in order to deliver
quality customer service in the current highly competitive banking market. It is worth
noting that, pProviding high-quality customer service in the banking sector requires much
more than just technical skills and competency.

The Staff staff of the Bbank must have excellent listening and communication skills
(especially in the local language), telephone skills, writing skills, the right attitude, and
must also be able to solve and prevent problems relating to quality customer service.
Being able to handle difficult customers and minimize stress during the workday also
increases the level of quality customer service.

Out of the hard and soft skills required, the "soft" skills (such as the ones mentioned
above) are often more important in ensuring a high level of customer satisfaction than an
employee's technical knowledge.

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8.1 HOW CAN THE SOUTH AKIM RURAL BANK IMPLEMENT AN

EFFECTIVE QUALITY CUSTOMER SERVICE?.

8.1.1 LINKING SATISFACTION TO TRAINING

In order to improve customer satisfaction within the South Akim Rural Bank, a customer
service strategy should must be adopted by the Mmanagement of the South Akim
Rurathel Bank in order to solicit feedback from customers. Before doing so, the
necessary questions to one must ask will should be: ;

 Does customerDo customers enjoy their support services?

 What do theydo customers think about the level of service?

 What do theydo customers say when they complain about the service?

The answers to the aboveose questions as well as thend data from the problem
management unit of the bank should then be used to develop a training program to
improve the skill levellevels of the staff; especially those who serve their customers.
Combining the customer service strategy with a solid employee hiring process that
recruits new employees with the necessary skills and attitude will, will result in an
increase in customer satisfaction.

It is important to understand the link between customer satisfaction and the skills and
attitude of the staff who serves these customers. This is illustrated in the following ways
or stages.

Step 1: Develop a Customer Service Strategy

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The South Akim Rural Bank should implement winningimplement a winning customer
service strategy which should involveinvolves winning prospective customers, and
providing quality service, and resolving customer complaints. In the banking industry,
much effort has been placed on quality customer service and customer satisfaction
measurement. This includes developing processes to measure satisfaction, implement
changes to increase customer satisfaction and communicating the
enhancements/improvement to the customers..

A critical element that is missing is an emphasis on customer complaints.. A customer

support unit shouldunit should also therefore be established by the bank Bank to develop
processes for the management of complaints with thewith the support unit
responsibilitiesunit responsibilities clearly outlined for them. . The winning customer
service strategy of the bank Bank should include six steps:

 SOLICIT – Solicit customer complaints and feedback. Their complaints will be

from what their expectations not being met. Determine what customers want (not
just what they need right now) by asking them in person or as part of a suggestion
box surveys..

 RESOLVE – The staff should try as much as possible to Resolve resolve

customer complaints upon first contact. This will create a positive impact on the
customer’s mind. This willFurthermore, it will lead to customer retention, loyalty
and customers recommendations references. Customer confidence will also be
increased..

 TRACK – Track, trend and proactively eliminate customer complaints using the
problem management system currently at the bankBank. Being proactive ion
solving customer complaints reduces costs in terms of damages..

 SURVEY – The Management of the bank Bank should also engage a personnel
to Survey survey customers on a regular basis. All staff and management

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Management should ensure that the complaint resolution strategy supports the
customer-focused vision. RMost research has shown thatshows, if customers
believe their complaints are welcomed and responded to, they will mostre likely
returnepurchase..

 TRAIN – the South Akim Rural Bank must train staff, based upon complaints,
survey results, and performance metrics, to increase the quality of customer
service and to also improve complaint resolution..

 MARKET – The bank Bank should then, mMarket the winning customer service
strategy to help employees and customers to establish expectations..

Why should the South Akim Rural Bank Focus on Complaints?

According to the 1996 report,, : Best Practices in Resolving Customer Complaints in
Ghana, published by the National Performance Revieww, there are five reasons why
successful companies succeed at resolving customer complaints and thus increasinge
customer satisfaction and loyalty. A best practice environment must:

 Make it easy for customers to complain, and then customers will make it easy for
you to improvee;.

 Respond to complaints quickly and courteously with common sense, and you
willthus, improve customer loyalty;.

 Resolve complaints on the first contact and save money by eliminating

unnecessary additional contacts that escalate costs and build customer
confidence;.

Technology is critical in complaint handling systems.

 Recruit and hire the best for customer service jobs.

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Furthermore, iIt is important for the South Akim Rural Bank to know that customer
satisfaction is more than just solving a customer's technology problems or fulfilling a
request made as quickly as possible. It is also about how a companyyou handles "poor"
service.

In fact, one cannot You can't expect every call to be handled perfectly every time. Some
customers may get mad and therefore get vocal. This often may lead tohas the potential
of resulting in the bad reputation of the a companbanky if the situation if they are is not
handled well . Therefore, So even wheneven when a company provides “bad” service,
they should you provide "bad" service, develop a clear strategy for how to make it right -
quickly and prevent similar problems from happening in the future.

Step 2: Hire Only the Best

Quality service comes from quality employees. SThe south Akim Rural Bank must
develop a solid and a new hiringe process that recruits only those employees who have
the necessary attitude and skills to produce high quality service. The new hiringe process
of the bank Bank may utilize these four steps:

 RECRUIT – Mmanagement must Recruit recruit for according to technical

resolution,, listening and Communication communication (especially in the local
language) skills,, as well as telephone, writing and customer service skills. who
will always be prepared to listen to the bank customers
.
 HIRE – They should hHire only those employees who possess a complete skill
set and the right attitude, . fFocusing on recruiting employees who support the
customer service vision. The costs of employing people who do not support the
customer service vision should also be takening into consideration..

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 TRAIN – the The bank Bank must train staff regularly in order to invest in their
success. They should also take measures to, increase employee retention and
increase customer satisfaction as well..

 PROMOTE – the The bank Bank should pPromote and retain only those
employees who make the grade in the Bbank ank support unit..

Step 3: Invest in Staff

In addition to the training that the staff at the Bbank hasis currently undertaken,
Mmanagement of the bank to investmust invest more in them in order to increase the
delivery of quality customer service. In both the customer service strategy and the new
hiringe process, there is an emphasis on training. A robust training program should
always be established/provided to staff (especially the frontline staff) to address all the
critical skills that are necessary to providein providing the best service to the customer..

In the same report by the National Performance Review, they state that ,"Best-in-
BBusiness leaders consider training an investment, not an expense. They use complaint
trends/data to identify training needs."

Organizations that spend a sizeable portion of their budgets on training can see a direct
link between training and increases in customer satisfaction and loyalty.. The South Akim
Rural Bank should therefore have a budget for this function in order to build the capacity
of its staff in order to improve on customer satisfaction and customer loyalty.

According to the American Productivity & Quality Center in

their report entitled Best Practices in New Customer Service:,

"The foundation of any successful customer service organization is the empowered

customer service agent. Management, in the best-practice organizations, recognizes that
external customer

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satisfaction requires granting power to those internal company representatives who

serve as the critical link between the company and the customer."

Finally,Another important function is to measure employee satisfaction regularly. As a

matter of fact, pPlayers in the banking industry have employed such methods as toll-free
numbers, periodic roundtable meetings, and surveys in order to collect employee
satisfaction information.

Ststep 4:. Service Consulting Practice

Service Practice consultants can assist in supporting The South Akim Rural Bank in
creating a winning customer service strategy with the Customer Communication Plan,
Customer Satisfaction Plan, Customer Marketing Plan and Customer Service Training..

 Communication Plan – This deliverable will help to establish communication

standards in all written and verbal communications as well as in defining the
process on how staff can communicate effectively with the customer..

 Customer Satisfaction Plan – This deliverable will develop a customer

satisfaction measurement process, assists with tool selection, and provides sample
surveys..

 Marketing Plan – This deliverable is to helpwill help the South Akim Rural
Bank to with informing customers of the Bbank’s services, and will also helphelp
change the any negative perceptions aboutof the bank Bank’s services, and will
also establish customer expectations..

 Customer Service Training – This class is designed to train the Bank’sbank

staff on how to improve customer communication skills, develop effective
listening skills and develop strategies for dealing with difficult customers (both in
formal and informal languages). Cconsulting practice can help the Bbank’s staff

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to achieve higher levels of customer satisfaction and, at the same time, help to
increase employee retention..

8.2 IMPLEMENT AN EXTERNALLY- ORIENTED STRATEGIC SERVICE

CONCEPT.
The externally- oriented strategic service concept establishes will establish how the the
South Akim Rural BankBank’s services are designed, and delivered to target customers.
The Management of the bank Bank must take into account the costs of providing services
and the ways to minimize those costs while implementing quality control. Management
should also dDetermine the necessary financial, human, and technological resources
necessary, as well as how the bank Bank’s structure and flow charts can enable the
frontline workers to delight the customers more..

The uUse of advertisingof advertising/educational strategies to set appropriate customer

expectations could also be encouraged by management Managementof the bank. One
final element of an externally- oriented service strategy is to regularly measure customer
satisfaction or delight in the products and services that the bank Bank offer to
themoffers..

8.3 TANGIBLES
Customers of the bank Bank were quite unhappy with the infrastructure of the bankBank.
The mMajority of them emphasizedes that , they weare displeased with the appeal of the
bank settings or as well as the environment. The major facility that is they cited as
conspicuously missing is was the ATM machine.

The Automated automated Teller teller Machine machine, which is now part of every
bank service nowadays, must be provided by the management Management of the
bankBank. It is very important for the bank Bank to take into consideration account the

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costs involved in implementing the ATM, however, the ultimate consideration should be
givening to the satisfaction of their customers.

Additionally, iInstallation will not be enough without education. Robust education must
be given to customers on the use of the machines in order to increase the utilization of the
machines, which will obviously lead to efficient and effective customer service. The
installation of the ATM has the tendency of reducing the que burdingqueue burden
always experienced in most of the bank branches..

Furthermore, tThe installation could be initiated by selecting some bank branches

considered to be busy. This can also help the bank Bank utilized its financial resources
more efficiently. In addition, the number of furniture in the bank branchess could be
increased to reduce the stresssed alwayss experienced by the customers when they arere
ins queue. Above all, television sets could also be made available in the banking hall.
Customers on wait towaiting to be served can whileipe away the time and anxiety by
watching the television sets. The television sets should however be monitored to ensure
that they do not, it does not disrupt banking services.

8.4 RESOURCE AVAILABILITY

It is obvious that for any action of implementation, the resources acquisition and
utilization will be very important. In the case of The South Akim Rural Bank, the
requisite resources will be human, financial, as well as and any other relevant available
resourcerequired resources.

The human resource is the valuable and will continue to be valuable for any
implementation of any plan to be successful. The cooperation is needed from all levels of
Mmanagement;, that from operational, middle and the top management respectively.

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Everyone in the bank Bank needs to be involved if quality customer service is to be

achieved; that is fFrom the security officers to the managing Managing directorDirector..

The Staff staff of the bank Bank must always be reminded that, the ultimate
establishment of the bank Bank is to satisfy customers in order to earn returns. They
should also be made aware that, it takes the right attitude and discipline for quality
customer service to be delivered.

Furthermore, The most important of all is change. tThe human resource must change and
must always be willing to adopt the right attitude to of serving customers. Attitudinal
change can make a significant impact on the bank Bank’s aim to be one of the best rural
banks in the country in the next five years. . Hence forth, much training and capacity
building to the human resource should be increased significantly; likewise, the budget for
training.

8.5 ANTICIPATED BENEFIT OF IMPLEMENTING THE

RECOMMNEDATIONS.

The result of the implementation will leads to the provision of quality customer service. It
therefore knowing that Being made aware of this, the South Akim Rural Bank will create
a distinctive position for itself in relation to other rural banks within the Eastern corridor
of Ghana. The Cost cost of marketing and operations of the bank Bank are likely to
reduce as a result of the improvement in operations and reduction of the time spent in
attending to customers’ challenges.

Market research clearly shows that customers enjoy and are satisfied with any service
provider who meetwho meets and exceeds their expectations in terms of quality service..
The customers of the South Akim Rural Bank are more likely to remain with the bank

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Bank with the implementations and subsequent provisions of quality servicee to them.
The costs involved in maintaining and winning new customers will therefore be
minimized.

Satisfied customers will also be good adverts for the South Akim Rural Bank. Market
research also indicates that , customers are happy to recommend the service of their
provider to other customers when the services are good. Customers are five times more
likely to switch organizations because of perceived service problems than for price
concerns of the service. Product quality is important for recruiting customers, but
service quality is the key to retaining customers..

It is worth noting noting by the South Akim Rural Bank that pProviding good customer
service also means that customers will have fewer complaints. Dealing with complaints
can be very costly . so again , byTherefore, by providing good customer service, the
South Akim Rural Bank can reduce the cost of resolving customer [Link].

Finally, South Akim Rural Bank, which operates in the circle of rural banks, must come
to the reality that, the quality customer service concept has evolved in such a way that
nowadays it must be viewed as a strategy to maintain a long-term relationship with the
customers . A good customer relationship is the key to business success..

Relationship building and management, or what has been labelledlabeled as relationship

marketing, is a leading approach to marketing . The use of customer relationship
management (CRM) systems is becoming increasingly important to improve customer
life time value . Understanding the needs of customers and offering value-added services
are recognized as factors that determine the success or failure of companies (i.e. - the
South Akim Rural Bank) (Kumar, 2008).

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APPENDIX

QUESTIONNAIRES:

GIMPA BUSINEEESS SCHOOL(MBA)

TOPIC: ENHANCING CUSTOMER SERVIICE IN THE BANKS (A CASE

STUDY OF

THE SOUTH AKIM RURAL BANK)

CUSTOMER questionnaireQUESTIONNAIRE

Please show the extent to which you think your bank offers the following
services.

On a scale of 10 to 10, please circle the appropriate rating

CONFIDENTIALITY: ALL RESPONSES WILL BE TREATED WITH THE UOTMOST

CONFIDENTIALITY

1 POOR AVERAGE GOOD EXCELLENT DIMENSIONS

1 Serving you quickly and 1 2 3 4 5 6 7 8 9 10 RELIABILITY

efficiently
2 Handling your 1 2 3 4 5 6 7 8 9 1O
transaction accurately
3 Being dependable 1 2 3 4 5 6 7 8 9 10

4 Providing clear 1 2 3 4 5 6 7 8 9 10
explanations of services
5 Solving 1 2 3 4 5 6 7 8 9 10 RESPONSIVENESS
problems/troubleshooting

6 Understanding your 1 2 3 4 5 6 7 8 9 10

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banking needs
7 Thanking you for your 1 2 3 4 5 6 7 8 9 10
business

8 Feeling secure doing 1 2 3 4 5 6 7 8 9 10 ASSUARANCE

business here

9 Making it easy to do 1 2 3 4 5 6 7 8 9 10
business here
10 Greeting & 1 2 3 4 5 6 7 8 9 10
acknowledging you
promptly

11 Addressing you by name 1 2 3 4 5 6 7 8 9 10 EMPATHY

12 Providing friendly and 1 2 3 4 5 6 7 8 9 10

caring service
13 The location of our bank 1 2 3 4 5 6 7 8 9 10
to you is
14 Having up-to-date 1 2 3 4 5 6 7 8 9 10 TANGIBLES
equipment

15 Accessibility to ATM 1 2 3 4 5 6 7 8 9 10

16 Overall service quality 1 2 3 4 5 6 7 8 9 10

18 1 2 3 4 5 6 7 8 9 10

THANK YOU VERY MUCH FOR PARTICIPATING IN THE SURVEY..

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GIMPA BUSINEEESS SCHOOL (MBA)

TOPIC: ENHANCING CUSTOMER SERVIICE IN THE BANKS (A CASE

STUDY OF

THE SOUTH AKIM RURAL BANK)

CONFIDENTIALITY: ALL RESPONSES WILL BE TREATED WITH THE UOTMOST

CONFIDENTIALITY

(In-Ddepth Interview ) MANAGEMENT QUESTIONNAIRE.

1. What is your position in the South Akim Rural Bank?

2. Is customer service given priority in the bank?

3. What goes into customer service atin the bank?

4. How often do you offer training to your employees on customer service?

5. How often do you track the effectiveness of customer service delivered in at

the bank?

6. How responsive are you to customer complaints?

7. How are the bank services made known to customers?

8. How loyal areis customers to your bank?

9. Where is the first point of call for potential customers?

10. What is your view on customer service?

11. What are the challenges faced by the bank in delivering customer service?

12. What mechanisms are have been put in place to solve these challenges?

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[Link] strategies are have been put in place byas management to enhance
customer service?

14. Where do you position your customers in scale of preference?

15. Do you agree that the success of South Akim Rural Bank depends on the
customers?

NOTE: please provide your responses in the foolscap sheet provided.

Thank you for participating in the [Link].

NOTE: Please provide your responses in the foolscap sheet provided.

GIMPA BUSINEEESS SCHOOL(MBA)

TOPIC: ENHANCING CUSTOMER SERVIICE IN THE BANKS (A CASE

STUDY OF

THE SOUTH AKIM RURAL BANK)

CONFIDENTIALITY: ALL RESPONSEALL RESPONSES WILL BE TREATED WITH

THE UOTMOST CONFIDENTIALITY

(In-Ddepth Interview ) EMPLOYEES QUESTIONARE

1. [Link] is your position and role atin the South Akim Rural Bank?
2. 2. Hhow do you understand customer service atin the Bbank?
3. [Link] exciting do you find yourself working with the Bbank?
4.
5. [Link] do you rate the relationship between the staff and the customers of
the bank?
6.

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7. 5. Hhow often does management provide training for the staff?

8.
9. 6. Aare requisite logistics made available to enhance customer service
delivery?
10.
[Link] challenges do you encounter in delivering customers in the Bbank?
12.
13.8. Wwhat mechanisms, as a staff, have you put in place to solve these
challenges?
14.
[Link] do you respond to customer complaints?
16.
[Link] observations do you notice when customers are treated well by
the bankBank?
18.
[Link] a staff, what do you think you can do to improve upon customer
service delivery?
20.
21.13. Aas a staff, what do you think management can do to improve upon
customer service delivery?
22.
23.14. Ddo you agree that the success of South Akim Rural Bank depends upon
the customer rs service delivery?

Thank You.

NOTE: please provide your responses in the foolscap sheet provided.

Thank you for participating in the survey.

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agenda for research. The Journal of Business & Industrial Marketing, 13(4), p.
309.

 Taylor, S.A. and Baker, T.L. (1994). An assessment of the relationship between
service quality and customer satisfaction in the formation of consumers' purchase
intentions, Journal of Retailing, 70(2), pp. 163-178.

 Teas, K. R. (1994). Expectations as a comparison standard in measuring service

quality: An assessment of a reassessment. Journal of Marketing, No. 58, pp. 132-
139.

22. University of Michigan Business School. American Customer Satisfaction

Index.. .
 Vimi, J. and Mohd, K.K. (2008). Determinants of performance in retail banking:
Perspectives of customer satisfaction and relationship marketing. Singapore
Management Review.

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OTHER SOURCESOther Sources:

21. Harvard Business Review, 2009, p 239).
22. June 2011 publication, Ministry of employment and social welfare) (STATISTICAL
SERVICE).
[Link] WORLD BANK AGRICULTURE AND RURAL DEVELOPMENT
DISCUSSION PAPER 48, MAY 2010 P 3
24. GHANA NEWS AGENCY, Nankese (E/R), Sept. 11, GNA
25. Daily Graphic 26/9/11).
26. BANK OF GHANA Quarterly Bulletin jan-march, 2011)
27. GIPC SECTOR PROFILE OF GHANA’SFINANCIAL SERVICES INDUSTRY

[Link] OF GHANA PRESS RELEASE February 14, 2008

 29. 1996 Rreport,: Best pPractices in Resolving Customer Complaints in Ghana
published by the National Performance Review

 Agricultural innovation systems. The World Bank Agriculture and Rural

Development Discussion Paper 48, May 2010, p. 3.

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30. [Link]

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Service.

31. 31. [Link]

32. 32. [Link]

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33. [Link]

TERMINOLOGIES:

.
1. 24X7 banking – 24 hours a day, 7 days a week banking.
2. SMS and Internet
3. SEC – Security Exchange Commission.
4. MasterCard and Visa card-Debit withdrawal card used in ATMs
5. ATM-Automated Teller MachineARB Apex Bank Ltd – An oversight body for
rural and community banks in Ghana.
6. ATM – Automated Teller Machine.
4. BOG – Bank of Ghana.
5. BOG Quarterly Bulleting – Quarterly report of bank of Ghana on economic
activities.
6.
7. NBFIs -non-bank financial institutions.
8. BOG-Bank of Ghana.
9. ARB Apex Bank Ltd –Oversight Body for rural and community banks.
10.(FINSSP –) Financial Sector Strategic Plan.
[Link] and Visa card – Debit withdrawal cards used in ATMs.
[Link] – Non-banking financial institutions.
[Link] – Securities & Exchange Commission.

BOG Quarterly Bulleting- Quarterly report of bank of Ghana on Economic activities.

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