Customer Relationship Management: A Case Study of a Physical Brick and Mortar Bank (First Atlantic Merchant Bank)

CUSTOMER RELATIONSHIP MANAGEMENT: A CASE STUDY OF a Physical Brick and Mortar bank (First Atlantic Merchant Bank)

 

This study deals with the traditional banking business or otherwise known as “brick and mortar” banks. Furthermore, in this kind of banking system, clients can deal face to face with a banker or banking employee about their multifaceted banking and financial transactions. In a brick and mortar banking system, personal interaction between the clients and the banking specialists are common requirement in order to give clients the assurance and security upon handling large amount of money or cash between them.  In this   banking system, the local teller or bank manager who knows the client may be able to provide optional services such as reversing bank fees, offering a preferred investment or mortgage rate or offering portfolio management advice among others. Additionally, physical brick and mortar banks have 24-hour banking telephone services and internet banking available for the clients.  However, setting up an automatic savings or other electronic transfers are often involved a bank teller or telephone representative intervention.  Also, paperwork for transactions, as well as the receipts and bank statements are common business practices between the bank and the clients in order to monitor the status of the accounts of the clients.

(http://www.associatedcontent.com/article/5853628/brick_and_mortar_banks_vs_internet.html)

In contrast   this traditional banking system, these days, various  online banking options have been coming out in the banking industry that provide 24/7 online banking services  without  the traditional routine  banking practices  that are done in the physical brick and mortar banking.  In the contrary, the greatest advantage of internet banking is it has very low operational costs compare to physical brick and mortar banking. In this relation, internet banking has very low overhead expenditures, for internet-banks can reduce their employment scheme. Unlike in traditional brick and mortar banking where there is a standard requirement to hire banking employees in every area to serve banking clients effectively and efficiently.  As a result, internet-only banks   have the capacity to offer higher interest rates on savings and checking accounts to the clients; as well as it has unlimited free internet and online transactions.  These privileges are obviously can not be provided by a brick and mortar bank.

(http://www.associatedcontent.com/article/5853628/brick_and_mortar_banks_vs_internet.html)

Furthermore, this research also found out that the First Atlantic Merchant Bank of Ghana is a private banking sector that was established in August 1994 under the laws of the Republic of Ghana and has been started operations as a merchant bank in November 1995. This bank was founded by the chief executive of AIL, Mr. Sabah Bedwei Majdoub  started operations soon after. More than that, it has  wide range of services that include  merchant, corporate and private banking. The bank has
brokerage and assets management subsidiaries  . Over the years, the bank has focused on the development of a niche market that provides   various valuable services to a wide range of clients in the banking industry.   The bank’s clienteles have been growing in size from various business sectors such as commerce, manufacturing, services and export.  Also, it is in good performance in managing well the medium and large business entities in the country. In the same manner, the bank has been also  engaged in brokerage operations that involve buying and selling huge blocks of share in public listed firms, as well as it is into the valuation of corporate clients, so as to sponsoring initial public offerings, handling mergers and acquisitions, and managing private  placements and capital raising for  corporate clients.  On the other side, the corporate finance of the bank deals with corporate banking and relationship banking. There are key banking specialists who are managing the portfolios of various corporations. Similarly, they also provide provisions of customized banking services like corporate finance advisory, trade finance and debt management services to diversified clients. (http://www.linkedin.com/company/first-atlantic-commerce) 

 Subsequently, it is reported that the Social Security and National Insurance Trust (SSNIT) has a plan to sell its 50 percent share in First Atlantic Merchant Bank to Kaderi Nominees Limited. This move resulted to the complaint of the International Monetary Fund of Ghana; saying that SSNIT is dominating the operations of the financial system in the First Atlantic Merchant Bank.  The Central Bank believes that SSNIT does not have a proper strategy in managing the banking institution which it holds the majority of its shares. Nevertheless, the banking sector is strongly confident that this issue will be resolved immediately; especially now that online banking has already been implemented.   The implementation and practices of an internet and mobile banking services by the said bank is a tremendous move from its traditional banking system.  Many banking analysts in Ghana stressed out that this   modification in the banking system will surely help the Ghana’s banking industry to achieve a fast commercial banking opportunities and benefits to their existing and new clients.

(http://www.citifmonline.com/index.php?id=1.287148.1.583957)

References:

http://www.associatedcontent.com/article/5853628/brick_and_mortar_banks_vs_internet.html

http://www.linkedin.com/company/first-atlantic-commerce

http://www.citifmonline.com/index.php?id=1.287148.1.583957

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