WEGAGEN BANK SC

Resource
Mobilization
Guideline

[Type the document subtitle]

Branch Operations Directorate

June, 2018
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 Table of Content

1. Introduction ……………………………………………………………......................2

2. Objective.. ……………………………………………………………………………….3

3. Methodology … ………………………………………………………………………..3

4. Scope...…………………………………………………………………………………...3

5. Resource Mobilization approaches by branches .. ….………………………….4

5.1. Persistently Promote Service Excellence..……………………………………..4

5.1.1. Changing Customer Behavior………………………………………………….....4

5.1.2. Basic factors that make customers feel good on the service.... ………..5

5.1.3. Inputs for Prompt Customer service……………………………….…………..5

5.1.4. Required traits and Competencies.. …………………………………………….7

5.1.5. Consequences of dwelling on routine Life. ………………………………….7

5.1.6. Benefits of Effective Customer Service ……………………………………….7

5.2. Best practices for Resource Mobilization …….……………………………..8

5.2.1. Deposit Mobilization ……………………………………………………………….8

5.2.2. Foreign Currency Mobilization………………………………………………….12

5.2.3. Cross Selling of Alternative Channels….……………………………………..14

5.3. Additional Considerations………………………………………………………….14

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1. Introduction
The traditional role of financial sector as intermediary between savers and
borrowers is now becoming complex in line with the growing customer
demand and emphasis on shareholder value creation that require customer
centric banking services supported by digital technologies and highly
motivated employees with goal achieving strategic direction. In this regard, the
bank has put in place five year strategic plan that incorporates resource
mobilization and Service quality as the key strategic objectives to realize its
vision of becoming one of the most ten reputable and competent banks in east
Africa by the year 2025 G.C. Performance targets in resource mobilization for
the first five-year strategic plan are set as depicted hereunder in a table.

‘
000,000
Description Fiscal Year
2015/16 2016/17 2017/18 2018/19 2019/20
Deposit Amount 12,954.00 16,840.0 22,229.00 29,342.00 38,732.00
target (Birr) 0
Foreign currency 365.00 475.00 627.00 827.00 1,092.00
amount Target
(Dollar)

However, the current pace of the bank to mobilize resources would not be
sufficient, given strategic goal of the bank in deposit growth and foreign
currency generation. This document is therefore, prepared to help and scale up
the current resource mobilization efforts of branches by focusing on best

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practices of resource mobilization and the need to persistently promote
service excellence.

2. Objectives
Major objectives of this resource mobilization guideline are;

 Create common understanding on resource mobilization approaches for

all stakeholders of the bank.
 Provide best practices and techniques to enhance deposit and foreign
currency mobilization efforts for branches and districts.
 Highlight entrusted duties and responsibilities for concerned working
units to enhance resource mobilization.

3. Scope of the guideline

It is well understood that deposit mobilization activities demand the

participation and coordination of concerned relevant working units of the Bank
so as to meet deposit targets as stated in the strategic goal of the bank. Thus,
operational scope of this guideline covers all stakeholders of the bank for
successful achievement of corporate objectives in deposit mobilization.

4. Methodology

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Building on the strategic plan being developed for the bank and assessing
other banks best practices, this document aims at establishing workable
resource mobilization guideline for branches as well as other concerned units.
This document partly involves documentation of practices employed so far in
the bank’s resource mobilization effort. The methodology employed in
preparing this document involves:

 Reviewing internal policy and procedure, strategic document, deposit

mobilization mechanisms put in place, regulatory organs directives, and
review of other banks best practices.
 Discussion sessions undertaken and feedbacks obtained from branches
and districts were also used as primary source.

5. Resource Mobilization Approaches

5.1. Persistently Promote Service Excellence

Customer service is emerging as a critical differentiator for businesses. It is

suggested that the ability to have more effective customer interactions is hard
to replicate and can produce lasting competitive advantage. There is also
strong correlation between customer service and loyalty. It costs you five times
as much to win a new customer than to keep a current one. But, customers are
not loyal by nature and research shows that emotion influences purchase
decision six times more than rationale. Connecting to your customers on an
emotional level is the key to establishing a lasting relationship. You must go
beyond simply delivering your product, and develop strong bonds with your

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customers. It is essential that you provide a unique customer experience by
proactively anticipating your customers’ needs and expectations and
exceeding them, every time.

5.1.1. Changing customers’ behavior:

 Better informed
 More Demanding
 Less loyal
 Wants to be in charge

5.1.2. Basic Factors that make customers feel good in the service

Some of most important factors that make a customer feel special regarding
service delivery include:

 Speed and time – delivery time in most cases is one of the important
ways that can create competitive advantage. Some customers are even
prepared to pay a premium price if quality products are delivered at
exceptionally quick time;
 Personal interaction with a customer – the minor things regarding a
customer such as likes and dislikes, hobbies and interests does make a
difference since this adds new dimensions and richness to the customer-
branch/bank relationships;

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  Attitude and customer liaison – this is something related with that
customer service personnel are helpful, enthusiastic and positive in
meeting customer’s requests;
 Courtesy and competence – these two factors go hand in hand as
customers might be more inclined to be served by an enthusiastic
amateur than an indifferent expert;
 Expectations – customer expectations can differ from customer to
customer. Therefore, it is important to discover what the customer’s
expectations really are. A truly exceptional company is expected to
mould customers’ expectations. Based on the company’s ability to meet
customers’ expectations, there will be three different categories of
customers - delighted customers, satisfied customers, and dissatisfied
customers;
 Information and keeping the customer informed – One of the most
important ways of making a customer feel special is to keep them
informed of all changes taking place. Keeping customer informed of the
delivery of a product and the status of a product is often said to be
important. If customers are awaiting some information or change,
always keep them up-to-date on the status of their request.

5.1.3. Inputs for Prompt Customer service

 Understand good service starts at the gate entrance and orderliness of

the branch resources including parking places.

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 Ensure presence of branch staffs during service hour and create the
feeling on customer mind that they are available to serve the customer
without time and place limitation.
 Develop eagerness to serve customers promptly at any circumstances
utilizing not only the branch but also the bank’s personnel and
infrastructure as a whole.
 Ensure high level of knowledge on products and services of the bank
among branch staffs.
 Coaching and mentoring for branch staffs should be regular duty of
branch managers and her/his subordinates including rotation in different
operational areas.
 Develop the mentality that banking services and products are there to be
sold for customers not only who comes at the branch but also by going
at places where they are (i.e. Door step Service)
 Branches should always question branch processes and office
arrangements before they become sources of frustration for customers
and for timely service improvement.
 Since first impression matters, due attention should be given for first
time customer enquiries and account opening. Be easy and friendly to
communicate with.
 Ensure high quality customer service;
 Setting minimum service delivery time for major activities; and
 Ensuring consistency in the types of services and the way services are
delivered

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  Request the required documents at a time for account opening and
other services and be polite and helpful in advising customers to fulfill
the requirements
 Advisory services as a differentiator; informing available products and
services and bringing creative solutions and ideas.
 Give prime attention for customer complaints and feedbacks and try to
address the issues through LEARN (L-listen, E-empathize, A-apologize, R-
respond, and N-notify)
 Improve queue management and provide good reception particularly for
corporate and influential customers.

5.1.4. Required Traits, behaviors, and competences for sales champions

 Friendly and service oriented: positive attitude

 Customer oriented: Focus on customers instead of being task oriented
 Showing empathy: understanding needs, feelings and beliefs of
customer
 Pro-active: action oriented by anticipating expectations of customers
 Strong Communication skills & high level of negotiation skills
 Very good in persuading and influencing people
 Like challenges and highly motivated to exceed expectations

5.1.5. Consequences of dwelling on Routine office works

 Causes us to see the world in one eye (Single and narrow minded)

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  We never progress (grow)
 We become ignorant to the normal human development (There are
stages of change that we naturally go through)
 It is boring.
 We tend not to be creative.
 We resist new ideas and challenges.
 Potential of people is wasted.

5.1.6. Benefits of Effective Customer service

 Less Stress: It is true that stress can take place as we deal with unhappy
customers. If we are well trained with a system for effective customer
service, we will be able to reduce the level of stress in our lives.
 Higher efficiency: when your efforts are directly related to customer
satisfaction, you can lower destruction noises and use your resources
more efficiently.
 Greater Satisfaction: When you make efforts that further the vision and
purpose of your organization and customer satisfaction, there is a higher
good and satisfaction you come to experience.
 Survival: In this time of great competition and globalization, good
customer service is the way to survive.
 Increased Profit (Income): As customers are happier and satisfied, they
will continue to take advantage of the opportunity to work with the
bank.

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5.2. Best practices in Resource Mobilization
As exactly pointed out in the bank’s strategy, deposit growth and foreign
currency collection are set as key success factor to meet financial goal of the
bank. This can happen only when every member of the bank has full
understanding on resource mobilization and takes it as core function of the
bank. In this regard, the following best practices are listed for easy reference
by branch members:

5.2.1. Deposit Mobilization

I. Establish Sense of Urgency towards deposit mobilization
 Make employees well informed on deposit collection as core duties of
branch members and establish teams/task forces that is appropriate for
the task and based on available personnel. The point here is that not to
establish task forces as a formality but to execute assigned deposit
targets for the branch/team/at individual level.
 Cascade monthly and annual deposit performance targets of the branch
into week/s with proper action plan or initiatives.
 Make branch staffs well informed on deposit targets of the branch and
cascaded team/individual targets.
 Team/Individual level targets should be detailed enough by deposit
amount, number of customer accounts, number of card issuance,
number of agents and merchant recruitments on monthly basis.
 Emphasize achieving individual and branch targets are the minimum as
per the bank’s IPMS guideline.

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  Undertake regular weekly meetings to evaluate achievement of set
targets both at branch and individual level
 Provide guidance and support on observed performance gaps
 Identify major hindrances and seek solutions from districts as well as
concerned head office units.

II. Undertake Environmental Scanning

 Focus on potential economic sectors at national level and economic
activities identified at the specific environment in which the branch
locates. However, think the world as your market segment.
 Establish supportive partners with government and non-governmental
institutions, Universities, Trade unions, Cooperatives, Religious
Institutions, various associations, Equbs and their members, and
influential persons.
 Pay a visit to identified partners to conduct discussions and convince
them to work with the bank by availing tailored banking services.
 Communicate branch operations directorate to negotiate with potential
depositors if the deal cannot be accomplished at branch and district level

III. How and for whom to Sell the bank’s services and Products
 Think of your families, relatives, friends, classmates, and anyone you may
know to convince them to work with the bank for their respective
banking need.
 Start with existing customers for cross selling and make sure that they
are using at least more than one services of the bank since it will

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 strengthen the relationship. For instance, customers with company
account to use other accounts for payroll, provident fund, internet, and
hello cash accounts and Goh accounts for children of their employees.
 Use existing customers to get information on other potential customers
and use them as a reference to convince others.
 Review dormant and closed accounts periodically and try to approach
the customers to reinvigorate the banking service.
 Integrate deposit accounts with credit facilities, Letter of credit margin
facilities, and guarantee facilities, and other banking services and
products.
 List out potential customers and schedule a visit to their premise so as to
establish possible banking relationship.
 Undertake account opening campaign periodically not only for business
owners but also their employees, daily workers, street fast food and tea
& coffee vendors at their own place.
 Use front office officers to cross sell the bank’s products and services for
customers that appear at the counter.
 Target not only Equb deposit but also Equb member’s deposit
 Establish contacts by attending conferences and through employees
from International institutions, embassies, foreign investors, and Non-
governmental organizations, consulting and law offices for direct
investment, Airline Ticket offices, and auditing & financial advisory firms
to persuade these institutions work with the bank and avail tailored
services supported by e-banking solutions.

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 Establish contacts from Investment commission offices, Trade and
industry bureaus, and acts & documentation offices.
 Look at potential companies that are under formation and are selling
equity shares to the public so as to channel the share sales through the
bank and ultimately retain the company’s account.
 Create linkages with micro finance institutions, taxi and Bajaj drivers
associations, Idir, and other informal groups.
 Enhance money tracking:
 Identify project implementing agencies and the possible contractors
as well as sub-contractors along with associated compensation
payments
 Track financial activities of sectors with high contribution to GDP that
includes construction, manufacturing, textile, hotel and tourism, etc;
 Track private projects’ cash flow;
 Track large payments made through the bank including through ABB
(any branch services) by creating synergy and easing communication
with paying branches;
 Money tracking through POS, Internet banking, and Mobile banking
 Track loan disbursements and collect disbursed loan as per the
schedule.
 Deposit balances of account holders above a certain amount (the
threshold set by the branch in line with its deposit base) should be
monitored on daily basis for timely intervention to retain the
withdrawal/customer.

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  Provide Door to Door Banking Services for corporate customers in a
consistent manner. Consider availability of business potential for such
services in:
 International institutions, NGOs, embassies, and Airline ticket offices
including Ethiopian.
 Huge projects and flower production areas;
 Fuel and benzene distribution centers;
 Supermarkets, wholesale distributers,and Hotels;
 Acts and documentation offices
 Equip operators;
 At exhibition centers and conference places

5.2.2. Foreign Currency Mobilization

I. Remittance Users & Exporters
 Make sure that the lists of international money transfer agents working
with the bank are known by all branch members.
 Ensure that the required access rights and passwords for the respective
international money transfer agents are availed to adequate branch
staffs for the service (i.e. Access right request after the customer arrived
at the branch should not be tolerated).
 Since service matters most for remittance users, ensure provision of the
service with speed and communicating with other branches and
concerned units in case of power off or system connectivity problem (i.e.
Customers should not be returned due to our problems/limitations).

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 List out previous remittance users and communicate them to use the
bank again by working on their grievances, if any.
 Create register book for remittance users and call them ahead of
holidays for the service or persuade them to channel their remittance
through the bank.
 Update remittance service users on requirements of the bank for the
service
 Pay regular visit to international money transfer agents to discuss issues
on service provision of the bank and enhance foreign currency
generation from these agents.
 Identify employment agencies that work with sending of workers in the
Middle East and establish lasting relationship so as to channel the foreign
currency earnings of the agencies as well as remittances of the workers
from abroad.
 Prioritize any services and requests from Exporters and remittance users
 Review export proceeds of exporters against provided credit facilities
and arrange regular schedule to discuss if there is observed performance
gap along with concerned head office units for improved performance
and support.
 Identify list of previous exporters of the bank and approach them to
reset the button and convince them to work with the bank again.
 Use chamber of commerce, Ministry of trade and industry, Exporters
associations, and other government organs as well as business
directories to get information on list of exporters with their address so as
to approach them to work with the bank.

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  Target service exporters that includes Hotels, Travel agents, Cross
boarder investment Consulting firms and dealers, Transit and logistics
companies, and Airlines.
 Use contacts from Investment offices, Ministry of Mining and
Agriculture, and read newsletters and magazines to get information on
foreign investors and other potential sources of foreign currency.
 Initiate opening of forex bureaus on potential areas and follow its
performance
 Attract Diasporas to work with the bank by approaching their
associations and using existing real estate developers as well as existing
customers of the bank.

II. International Institutions and NGOs

 Attract international institutions and non-governmental organizations to
work with the bank through tailored services for the organizations as
well as their employees that includes:
 Priority banking service to the entity supported by alternative e-
banking channels like internet, mobile, and card banking.
 Cash collection / payment services.
 Availing foreign currency for its employees travel abroad and
international payments of the organizations.
 Handle Payroll accounts free of charge.
 Provide saving plus 1% interest rate per annum for employees’
provident fund account, if any

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  Provide soft credit facilities for purchase of residential houses,
automobile, and personal loans at discounted interest rate
 Undertake scheduled visit to discuss issues on the bank’s service
provision and further strengthen the relationship.
 Undertake close follow up to ensure expected foreign currency
generation as well as other benefits are obtained by the bank.
 Forward any hindrances faced that are beyond the branch capacity to
the concerned units for immediate solutions.

5.2.3. Cross Selling of alternative Channels

 Familiarize yourself on e-banking and hello cash services to cross sell the
services
 Associate account opening with e-banking as well as hello cash services
with demonstrative briefing on how to use the alternative channels.
 Enhance cross-selling activities at the counters of branches
 Initiate salary payments through ATM cards.
 Target International Institutions and NGOs working with refugees and
communities to channel fund transfer and payments though the bank
using e-banking and hello cash services.
 Fully utilize co-branded payment solutions made with Shoa shopping
center including their customers in the supply chain.
 Asses and initiate deployment of POS and ATM machines on potential
areas
 Oversee proper functioning of POS and ATMs along with the concerned
units

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5.3. Additional Considerations

 Based on the underlying circumstances in which the branch is located

and types of customers in the area, branches my incorporate other
means and techniques on top of the aforementioned best practices.
 Gather information on other bank’s resource mobilization activities and
provide feedbacks to districts and branch operations directorate for
possible endorsement in the future.
 Suggest new products and services that are demanded by customers to
districts and concerned head office units for further study.
 Provide feedbacks to branch operations directorate for further
improvement on service excellence.
 Initiate higher level management visit by establishing contacts to
negotiate with potential depositors, exporters, foreign curremcy
remitter, if the deal could not be completed with district managers.
 Initiate a visit by the concerned head office units to discuss in-
active/declining performance of exporters, NGOs, international money
transfer agents, and remittance users.
 Foreign currency generation and deposit targets that are expected to be
mobilized from corporate customers of the bank should be assigned for
CRMs and it should be evaluated against availed credit facilities on
monthly basis (Customer relationship management for high value
customers).

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 Certain percentage of the foreign currency generated from each districts
should be allocated for themselves at least on quarterly basis by linking
the allocation with certain amount of deposit to be made by customers
up front.

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