Case: Banca San Giovanni . Plagirism is Prohibited and Please give answer of the
ID: 389605 • Letter: C
Question
Case: Banca San Giovanni
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Plagirism is Prohibited and Please give answer of the below question in the case study
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Paola Lustrato, IBM Financial Services Sector Specialist and Dr Rhian Silvestro, Warwick Business School One key role of banks is to collect money from one party or person and pay (transfer) it to another. These trans- fers, called payment services, for both individual (retail) and corporate customers, involve transfers using, for example, cheques, credit transfers, banker's orders, and credit/debit cards. As such these payment services are a fundamental part of almost all transactions related to any product in a bank's retail and corporate activities. Carina Capaldi, the Chief Operating Officer of Banca San Giovanni in Italy, explained the growing impor tance of these services: The financial services crisis of the late 2000s has changed the way payment services are perceived by customers. Retail clients are now demanding more transparent, flexible and customised payment services. They also want the funds transferred faster between the parties. Corporate clients also want effective transfer processes but tailored to their needs with easy tracking of movements, and ensuring effective use of their working capital. In essence customers generally are becoming more demanding, requiring in creased customisation and higher service levels at lower cost. This gives us an opportunity for developing a competitive advantage. While cost control is obviously important to us, if we can deliver better payment services it will add value to our products and help grow our revenue streams. To make matters more difficult, these payment services are also facing growing competitive threats from new entrants, such as telecommunication and utility companies, which are offering payment services through their powerful distribution networks. New payment technologies also provide alternatives for consumers; for example 'Obopay', the first mobile payment service allowing consumers and businesses to pay and transfer money through any mobile phoneExplanation / Answer
Compare and contrast existing and new payment structure
Units handled -Retail and corporate sector’
Existing structure
The previous objective was to reduce the time per transaction and Streamline processes.
Centralised territorial bank offices were created to handle high volume payment processing back-office ops
Local branches- >main branch- >CTBO (RM + specialists)
New structure
Previously there were CTBOs. The local banks have payment processing operations in their back office. These payment operations were consolidated into CTBO. Each operated like a separate bank with relationship managers, Trade specialists, cash management specialists, factoring specialists. If a client wants to interact the relationship manager handles the client first. The client also can have direct access to specialists
Now, the number of CTBOs will be reduced to 6. CTBOs will have only relationship managers and new payment specialists.
Local branches (RM) ->main branch (Payment specialist)- >CTBO with a units-Middle office client facing (product specialists)
Previously the specialists were directly available through the bank branch. Now the client will first face the relationship manager in the local branch for queries and then the payment specialist in the main branch. The product specialist from different
Does the new structure support payment operations objectives
New objective
The number of CTBOS will be reduced to 6. This reduces operating accost and increased efficiency.
Experts are available in a single house. They are exposed to different issues form different clients in different regions. Their expertise and experience level gets higher. Their competencies improve. So the speed and responsiveness for the experts are significantly higher.
Hence, we find that the objectives will be satisfied
Benefits and challenges’ posed by the new structure
Benefits
Challenges