Retail and Branch Banking

Division
Retail Business Development Department

Workshop on New Branch Operating

Model

July, 2023
 CBE’s Aspiration

CBE’s To Become a world class commercial

Vision bank financially driving Ethiopia’s future.

“We are committed to realizing

CBE’s stakeholder’s value through
Mission enhanced financial
intermediation globally,
deploying highly motivated and
11/11/2024 skilled employees.”
 CBE’s Aspiration
Parameters for world-class bank
Overall size including metrics such as assets, loan book,
operating income
Level of including metrics such as share of active customers on
digitalization app/mobile money, share of transactions outside the
branch, level of manual processes within the bank
Operational including metrics such as return on equity and cost-
efficiency to-income ratio
Risk efficiency including metrics such as NPL ratio and provision
coverage
Organization including metrics such as retention, promotion, and
health employee engagement
Brand including metrics such as customer satisfaction
positioning and (CSAT) and financial inclusion
impact
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 CBE’s Aspiration
CBE’s values

Service
Innovative excellence
Integrity Teamwork
organization

Respect for Corporate

Professionalism Empowerment
diversity citizenship

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Strategic Pillars for CBE’s Transformation
To become a world-class commercial
Vision bank financially driving Ethiopia’s future
Total Asset ETB Total Total Deposit Cost-to-income NPL <4% CSAT >75%
2.0Tn Lending ETB 1.9Tn ratio <45%
1.2Tn
A. Secure and B. Customer C. Digital leader D. Cost efficient
Risk centric Bank scaling mobile
money and digital
bank
Conscious with Streamline, digitize and
innovation
​Expand mobile money
Strategic Bank differentiated footprint by centralize/automate
Deliver
Pillar & Redesign E2E CVP growing share in digital branch and back-office
differentiated payments functions (e.g.
credit value
Imperati CVPs and superior (e.g., P2G and G2P procurement)
chain
ves (underwriting,
customer payments) and scaling
experience agent and merchant
monitoring and networks Drive branch
collections) Enhance sales
transformation by
Improve risk force effectiveness
optimizing branch
management to drive cross-sell Drive digital innovation
through well footprint, simplifying
and customer and expand digital
defined risk the branch operating
coverage channel functionality
taxonomy and risk model and migrating
appetite, and transactions to self-
updated risk
service channels
management
policies

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 Cont’d
Strategic Enablers & Imperatives
E. Modern and streamlined IT F. Collaborative customer-centered organization supported
architecture and technology by rigorous talent management and effective corporate
governance
​ Strengthen cyber-security ​ Update organization structure to
and IT architecture driven by
ensure customer-centricity (i.e.,
data, modern technology
structure by customer segments) and
(e.g., cyber security systems,
establish clear talent management
decoupled, layered API-based
culture (i.e., performance
architecture) and Advanced
management, recruiting, coaching
Analytics to deliver priority
and feedback) based on
use cases (e.g. cross-up sell,
accountability and collaboration
credit risk, pre-approved
lending)  Strengthen governance
 Build a digital delivery mechanisms by clarifying
operating model by setting decision-making, BOD and EMC
up a digital factory and performance tracking, and
incorporating agile to improved cadence (i.e., reduced
11/11/2024 digitize customer journeys interactions with focus on
decision making)
 Customer Interfacing Division
CBE
Bank Customer Interfacing Unit Channel Customer

Wholesale
Banking

Retail Banking **CRM

***Branch
*Digital Customers
Channel
CBE Noor

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 Branch-District Interaction

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 Key functional units at Branch

Operatio
Relationship Service Sales IFB
n

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The New Branch
Operating Model

Inclusive service

Dedicated team

Branch
Banking
Integrated service
Governing
Principles
Delineation of
Roles

Efficiency of
operation

Compliance to
Risk Consciousness
Processes
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Authorities & Responsibilities: Branch Manager

 Regular branch management duties

 Set targets for Retail, Wholesale and IFB

 Strategize, plan and lead the sales team, RM

 Feedback loop and monitor performance

 Adhere to service standards

 Establish segmented view of customers

 Sign loan contract of staff and customers

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 Authorities & Responsibilities: Managers at Branch

Control

• Transaction checking
• Filing transaction source documents
• Taking custody of transaction source
documents and account mandate file

Business Operation IFB

• End-to-end management
• Manage service, sales &
digital team
of cash operation
• Do environment scanning • Manage ATMs
• Lead the sales activities at • Handle ATM cash
in-branch and out-of- reconciliation • Is responsible for
branch
• Serve customer requests: • Handle cash collection & both operation and
account opening, cheque payment transactions business activities
issuance, confirmation • Approve teller cash and under IFB
letter, etc.
• Manage balance sheet
fund transfer transactions
and P&L • Manage cash operation
• Manage customer profiling staff
• Supervise Meeter-Greeter • Take custody of cheques,
11/11/2024 CPO
Authorities & Responsibilities: Teams under Business Manager

Service Sales

• Account opening
• Grassroot marketing
• Cheque issuance
• Customer meetings, calls and
• Lobby area management
visits
• Customer service
• Agents and merchants
• In-branch sales
support, troubleshoot
• Digital banking on-boarding
• Maintain, update customer
• Transaction migration to
profiles
digital
• Manage balance sheet and
• Manage suspense accounts
P&L accounts
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Authorities & Responsibilities: Relationship Managers

Wholesale
Retail IFB

a. Lead generation and management (capturing leads);

b. Correspondence or contact management (email, phone, address, social
media, etc.);
c. Customer need assessment, sales and other analysis reporting;
d. Account planning to bring sales force effectiveness;
e. Marketing management – calls, visits, meetings, etc.
f. Sales pipeline management – LC opening, arranging for loan contract,
disbursement, etc.
g. Customer profiling and portfolio management;
h. Proposing sales forecast to the customers;
i. Assist customers in using products and services; and
j. Selling of products and services to customers.
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 Meeter-Greeter

• Meet, greet, manage customers flow and answer their inquiries

professionally or direct to the concerned staff or proper channel;
• Assists customers properly while using self-service and digital
channels (ATM, POS machine, mobile banking, CBE Birr);
• Troubleshoot customers’ digital banking service challenges;
• Promote digital products to enhance usage of the bank’s
alternative channels;
• Provide basic information on all bank products and services to
customers;
• Manage the branch lobby area effectively and keep it tidy;
• Act as a focal point for customer’s queries and liaise with branch
services; and
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 Interaction between CST and Branch

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RETAIL BANKING BUSINESS MODEL: Value proposition
Digital heavy distribution, RM
Price, Products, Customer-centric placement
Distribution, Segmented view of Seamless experiences across all
Service, customers channels
Acquisition, Diversified product Creating product and service
Brand offerings identity
Risk based pricing

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 BUSINESS MODEL

SHARIA’H
COMPIANCE
VALUE
PROPOSITION
SALES FORCE
EFFECTIVENESS

PRODUCT COVERAGE
DIVERSIFICATION MODEL

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11/11/2024
 BOM visit Findings
 In- Consistency to assign the required HR.
 Low level of awareness
 In-Consistent Daily Huddle Conduction
 Lack of Discipline to BOM
 What is the main task of RMs, Meeter Greeter…?
 In-Consistent performance follow up & monitoring.
 Coaching & feedback session
 Weekly performance review

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 Why to stick with the BOM?

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 What is expected from Regions, Districts and
Branches?
 Understand the model
 Own and create ownership
 Continuous follow up and monitoring
 Provide continuous feedback
 Do to create Model Branch

11/11/2024
Thank You!!!