The study aims at understanding the Organization Structure and its alignment to the key business goals of Fidelity bank, Nigeria. The service provider has emerged out to be as the fastest growing banker in the region. Their key business motive is to provide unified banking solutions to their esteemed customers in a seamless manner.
In order to better align the business motives with the organization structure, key structural changes have been suggested as an outcome of the study. In order to arrive at these crucial changes the research has been done by closely analyzing the business parameters such as organization goals, customer needs, current organisation hierarchy and other parameters such as socio-cultural parameters.
After implementing the organization and customer centric changes, Fidelity Bank, Nigeria can better align itself to its corporate vision. This will lead to seamless and unparallel communication amongst the internal and external stakeholders in a far better way. The bottom line of the organization too would increase incrementally during the span of time. The apt organisation structure changes would help the banker in emerging out to be as the key player in the financial services arena.
- About Fidelity Bank, Nigeria
Fidelity Bank is amongst the top 10 banks in Nigeria. It started its operations in 1988 as a merchant bank and transformed into a commercial bank in 1999. In 2001 it became the universal bank. The banker has 168 branches across all states and regions in Nigeria. Apart from seamless helpdesk support they also provide real time online support to their customers on the go. It is one of the prime bankers in Nigeria and has off shore collaboration with bankers in New Zealand, UK, USA, South Arica and Middle East. It is a listed company in Nigeria and is a blue chip stock in the banking index of the country. The shareholding of the bank is substantial amongst corporate investors and venture capitalists too.
- Mission Statement
To make financial services easy and accessible. (Fidelity Annual Report)
To be No. 1 in every market we serve and every branded product we offer. (Fidelity Annual Report)
- Financial Products
The best in class financial products are offered by the bank to its esteemed customers ranging from savings accounts, current accounts and debt loans etc. The top products which are offered by the banker include:
- Fidelity e-Pay
- Current Accounts
- Savings Account
- Youth Banking
- Consumer Loan
- MBA (Multiple Benefits Account)
- Quick Pay
Apart from the supreme financial products some of the very best in class services such as top-notch Internet Banking, Mobile Banking, ATM’s and other priority banking services to corporate customers. The cutting edge financial products and services have made the banker one of the most respected in its industry segment. Its focus on introducing the best in breed products have insured that they are able to register positive numbers even during the toughest of financial times on the go without any constraints whatsoever. It has a substantial base of corporate, retail and specialized consumers who have been associated with the bank since early days.
- Talent Pool
Fidelity Bank, Nigeria hires its staff members from the very best of b-schools and graduate colleges. The employee base of the banker is 4,065. A varied mix of organisation culture exists in the bank as it also hires its staff from overseas locations. The new joiners should qualify the ethos the TAC ethos, Talent for possessing the right positive attitude, Ambition of succeeding all odds and a redefining Character to sustain integrity at all times. The employees and members are cultured in a manner so as to keep the customers interest high, keeping in mind the corporate norms and principles of the banker.
- Industry Dynamics
The financial services industry segment in which Fidelity bank operates is hyper competitive. The cut throat competition amongst the competitors on base interest rates and cheaper servicing cost can erode the bottom line of the banking service providers. The industry is driven with volume base as the margins are getting lowered by the day. The bankers can gain more by introducing newer products and services such as Dematerialized share trading, Commodities trading, Custom Insurance etc apart from the conventional banking and account keeping services. The success of products and services largely depends if the organisation hierarchy is aligned as per the pulse of the market.
Organization Hierarchy Brief Analyzing Current Organization Structure
ED – Executive Director
IT – Information Technology
BPA – Business Process Automation
CEO – Chief Executive Officer
HR – Human Resource
GM – General Manager
The financial service industry is dynamic in nature as the corporate compliance changes, frequent legal and political changes too have to be incorporated into the banking systems on the go. Therefore, even the minor change can leave a serious impact on the bottom line of the bank. Fidelity bank, Nigeria wishes to occupy No. 1 spot in the products and market they serve. Therefore, new product introductions are a must in order to spearhead in the industry segment on the go. Apart from concentrating of new business, rigorous training is also essential to bring internal stakeholders (employees) and external stakeholders (customers) up to speed. In order to achieve the set out vision objectives the board members should think out of the box and align their current set up as per the need of the hour. The bank should leverage more from the robust IT set ups and digital convergence too. Keeping pace with simplistic IT & systems can support the current bottom line however, in order to services customers in an innovative manner such as TV banking, the IT’s power should be leveraged more. Therefore, in order to align the organization structure in a better manner with the organisation goals following are the key recommendations:
Evolve IT systems and spin off a separate division for managing the IT governance. The risk factors can be automated and cycle time can be reduced in a seamless manner. As per Capgemini’s report on World Retail Banking Report – the growing banks biggest challenge remains on how to introduce innovative products leveraging from IT’s power
. Some of the innovative initiatives such as TV banking systems and iPhone or iPad centric banking applications can create interest amongst consumers on the go. These smarter initiatives can help in boosting sales numbers and ensure the top position for the banker too in a seamless manner.It is imperative that the employees of Fidelity Bank, Nigeria understand the pulse of their customers in order to serve them in a better manner. At the same time they should be well versed with the recent financial regulation change and the socio-cultural implications. Therefore, a dedicated training department should work closely with the HR team. They should keep in mind the changes and research their products and services. The ready to utilize training material should be published to internal stakeholders and distributed amongst the customers too.The leaders in financial arena are not only innovative but are also leveraging from modern communication streams to educate their consumers. The strategy division should work closely with Board of Directors. There should be monthly reviews with BOD in order to share their thoughts and inputs on the key strategic initiatives that can be planned to up the ante for the banker in the market.The marketing division should also be created as separate dedicated department with specialized executive director. The vision of the organisation is to become a No.1 service provider in the products they offer to their consumer base. In order to accomplish this, rigorous marketing campaigns to cross sell similar products to the customers should be high on agenda. In fact IT and marketing or sales departments can work closely and launch sales campaigns. They can measure the hit ratio of their initiatives vis-à-vis provisioning of services from the customers. At present there seems to be silos as marketing is communicating with the shared services. In an ideal situation marketing should take proactive measures to ensure that they are able to react as per the business needs of product needs. For instance, considering that there is a high potential in the Insurance stream, the insurance related campaigns should be launched more than other services.Fidelity Bank, Nigeria has been providing cutting edge integrated banking solutions to one and all. They operate in a volume driven industry where new products should be launched quiet often so that the top line and bottom line grow at a steady pace if not exponentially. Therefore, incorporating a Market Research division under CEO’s close observation can help them in gaining from the market driven possibilities and newer product or services launch in an effective manner. In order to adhere to the compliance the Audits and financial compliance division can be outsourced to third party financial auditors such as Deloitte, KPMG or Ernst &Young etc. Bank can concentrate on their core services and innovation while the seamless auditing or financial compliance can well be managed by third party financial advisors. This will help the organisation in right sizing itself by eliminating the division from internal hierarchy on the go. The leaders in banking and financial industry space have already gained endlessly from the professional and timely services.4.Key Benefits of realignment
The organization restructuring would provide tangible benefits to the stakeholders in an appropriate way. Their structure would be streamlined to meet the corporate business mission and vision on the go. Some of the key benefits that the organisation would realize are as follows:
< >The organization will be able to deliver high quality of products and services to their customers. The overall cost of running the business would come down too. This would be achieved by outsourcing the compliance division to third party auditors. Also, IT led automation will ensure that the information ‘acts as one’. The resources too would be rightly sourced by the HR department as all the functional departments such as Marketing, Finance, Credit Risk., Corporate banking and Public Sector Banking etc would be closely sharing their staff requirement information from time and again depending upon their expansion strategies.The organization would become a highly respected service provider with the launch of finest facilities such as TV banking which would allow the customers in trading on their bank account with the simple remote control based commands on the go. These would eventually grow the customer base for the banker. These would ensure that the banker captures the Number 1 spot on the go.The incorporation of training division will empower the internal stakeholders in understanding their own services and product changes in depth. They would be able to get things First Time right (FTR) while interacting with the customers. This would enhance the customer satisfaction levels on the go without any constraints whatsoever. They can better understand their needs and propose products or services based on the socio-cultural factors too. The entire organisation culture would light up with positivity all around. It is imperative that the financial services providers become process oriented in order to streamline their business operations at all times without any constraints whatsoever. The smarter organisation structure changes will help the banker in aligning with their CREST values (Customer First, Respect, Excellence, Shared Ambition and Tenacity). Armed with successful business processes and proper business orientation, Fidelity Bank, Nigeria can expect better sales numbers quarter over quarter in a streamline way. All stakeholders can work cordially in trying to achieve the corporate mission and vision goals in just about no time at all. However, in order to realize such gains, the stakeholders need to be patient and ensure that they act as per the need of the hour by introducing top notch products, ahead of their competition at all times.
The contingent and dynamic environment rules the financial arena. Fidelity Bank, Nigeria is primarily governed by external and internal factors which affect their line of business services and product launches. The business leaders should adhere to these norms and factors while trying to gain more pie in the competitive market space.
Internal FactorsCEO -
The guidance and the strategy of implementing newer services or products should follow from the CEO. He or she should ensure that reviews with GM and heads are conducted timely. The clear retrospective and key deliverables should be defined by the CEO in order to audit those internally
– In order to ascertain that Fidelity Bank is able to penetrate newer markets, introduce cutting edge financial products and gain more market share the marketing team should act proactively. They should be involved with all other core functions of the organisation such as Risk Management, Corporate Banking and Public Sector Banking etc. Also in order to showcase the image of the banker as the best in class employer of its own kind, the HR related campaigns too should be launched from time and again.
Core Functions –
Risk Management, Treasury, Corporate Banking and Public Sector Banking etc. are the core functions for Fidelity Bank, Nigeria. The division should ensure to comply with the political, social and cultural requirements while trying to implement the products or services in the market. They should ensure that the back ground checks are conducted in entirety and also the documentation pertaining to the identification of the customers and their address proof etc. are in order. It is imperative that the core committee and members stay interested in the trainings and newer strategies at all times. This can provide an all new way for the organisation to align itself with the business goals at all times in a seamless manner on the go
.External FactorsThe external factors are even more challenging for Fidelity Bank. They have to channelize their efforts in an effective manner when compared to their competitors. In order to better understand the external factors in detail, following points are worth noting:
·Socio-Cultural Impact – The banker operates in Nigeria which is a developing nation and is marked with unique cultural traits. The focus of a retail buyer is more towards trustworthiness and a joint family oriented culture exists amongst the nationals. The awareness campaigns and ads should keep the aspect in mind while trying to pitch for newer products or services in the market. The more closer the bank gets to the heart share and mind share of their customers through socio-cultural ties the better would be their chances of making an impact in the market.
·Economic Policies – Financial sector is pretty vulnerable to the changing economic policies. The repo rate, CRR (Cash reserve ratio) and other financial imperatives keep changing from time and again. Fidelity Bank, Nigeria should not rely too much on their existing policies and should be willing to adapt faster as the environment all around changes on the go.
·Political Environment – The emergence of a new power in the Political arena can be seen in a positive or negative way by the people and other external factors such as international agencies. Some of the investors might withdraw their investments from the bank in case an ill policy maker comes into power. The bank should introduce newer services and products in order to deal with all such uncertainties. The organisation should be become mature and ensure that their line of business stays intact even when there are structural changes taking place in the political scenario of the country.
·Market Risk – As per AllAfrica.com’s report the per capita income of Nigeria is $2,748. There lies immense potential for the Bank to introduce newer services such as Mutual Funds, Insurance Products and other Micro financing projects to boost their sales numbers in the competitive market space. The margins in the industry are going down therefore; the bank will have to play on the higher number of volumes. Best in class services can ensure that the customers stay interested in the product lines and services at all times. Financial markets grow at steady pace when the money supply in the market is maintained at all times. Apt credit and debt ratio should be sustained by the banker while trying to provide the very best of services to their customers at all times.
The best in class measures will ensure that the overall competitiveness of the organisation stays in order even during the toughest of financial or economic times. The delighted employees and external stakeholders can work closely with each other on the go. The organizational structure changes should ideally be implemented in one big bang approach in order to avoid the ripple effect on the go.
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Available: http://www.capgemini.com/insights-and-resources/by-publication/world-retail-banking-report-special-edition-2010/. Last accessed 26th September 2010.
Akinboade, L. (2010). Nigeria: Country's Per Capita Income Drops, Now U.S.$2,748.
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