NAME:

REG NO: HDB212-C005-0444/2015

UNIT NAME:

UNIT CODE:

ASSIGNMENT
Business process re-engineering is being used by the banking sector with a
great degree of success. Discuss how commercial banks in Kenya have used
re-engineering as a technique to improve service delivery.
INTRODUCTION
Business process re-engineering involves rethinking all aspects of a business
process including its purpose, tasks, structure, technology and outputs, then
redesigning them from scratch to deliver value added process outputs more
efficiently and effectively. Competition in banking has never been fiercer. There
are more than 40 banks in Kenya today. Due to high competition most banks have
been forced to adopt some measures in order to remain relevant in the market or
even become market leader and maintain that position. This has brought about
challenges and has forced to adopt strategies like business process re-engineering
which are more radical in order to adopt to the ever changing environments.

HOW BANKS HAVE USED RE-ENGINEERING

Commercial banks used various steps to improve the quality of services they
deliver to their customers. The following are among the ways commercial banks in
Kenya have used re-engineering as a technique to improve service delivery.

AGENT BANKING PLATFORM

Agent banking platforms are designed to get banking services to the unbanked and
closer to the customer. All this is tailored at meeting and exceeding the customer’s
needs hence improving service delivery. Example of agent banking platform is
KCB mtaani.

ATM
ATM outlets are considered to be auto branches. ATM outlets are able to do a
number of transactions such as depositing cash, withdrawals, mini statement
requests, cheque deposits as well as the transfer of funds. These services are
available twenty four hours a day. This is what the bank hopes to cash on since
automation is the cheapest way to provide such services. ATM saves time in
driving down to the branch and you do not have to waste time waiting in the queue
to perform your transactions.

MOBILE BANKING
Bank has had to adopt various technologies such as mobile banking to compete
directly with the mobile money service providers. This ensures that banking
facilities and services can be provided to the different clients in a convenient
manner using their mobile handsets. This is the same way that funds are transferred
in mobile money transfer services. Only difference is that the funds are transferred
from one’s bank account to another account altogether.

INTERNET BANKING
Internet banking uses internet to transact on one’s account. This mode of
transacting is more convenient and easily available to the users compared to the
traditional way of transacting in the bank which required that the individual has to
go to the bank physically to do any form of transaction during normal working
hours.
Changing the way customer’s access finances and issue requests and other banking
needs. This service provides account holders with the flexibility and capability to
fit their everyday banking needs into their lifestyles. They no longer have to visit
the bank to transact. This is an example of the application of business process re-
engineering, where the process of issuance of instructions has been automated and
the signature and proof of identity has been replaced with passwords and user
identities/ usernames.
 REFERRENCE
McAdam, R., & Donaghy, J., (1999). Business Process Re-engineering in the
public
sector.Journal of Business Process Management, 5(1), 33-49.

Michael Hammer, (1990, July-August). Re-engineering Work: Don’t Automate,

Obliterate. Harvard Business Review, 104.

Murray, M.A., & Lynn, M.P., (1997). Business Process

Re-engineering/information
system development to improve customer service quality. Business Process
Management, 3(1), 9-16.

Pearce, J.A., & Robinson, R.B. (1997). Strategic Planning Forecasting Tools and
Techniques, 6th ed. Chicago: Irwin.

Peppard, J., & Fitzgerald, D., (1997). The transfer of culturally-grounded

management
techniques: The case of business process re-engineering in Germany.European
Management Journal, 15(4), 446-60.