Banks safeguard money and supply loans, recognition and payment services such as look intoing histories, debit cards, and teller ‘s cheques. Banks may offer besides investing and insurance merchandises. Because of the important growing in that sector, the traditional differentiation between investing, companies, securities house and Bankss has decreased a batch. The banking industry is divided into two chief parts, the cardinal bank and the depositary recognition information, or what we know as commercial Bankss,
There are three chief bank industries, commercial Bankss, nest eggs and loan associations, and recognition brotherhoods. Although differences in the types of Bankss have decreased a batch, there are still some major differentiations. Commercial Bankss for case are the most celebrated Bankss. Commercial Bankss offer a broad scope of services like the possibility of opening a checking history, a nest eggs history and money market history, and of class, loans. Another type of Bankss, the nest eggs Bankss or what we besides know as loan associations which are specialized to give loans to purchase houses, they are normally long term loans. Recognition brotherhoods are associations of people who might hold the same occupation, or work in the same topographic point. Merely people with the common bond have the right to fall in the association and net income from the loan installations. The last type of bank is the cardinal bank which is responsible to modulate and form the banking industry. The cardinal bank is in charge to follow particular pecuniary policies during crises to advance economic growing and is responsible for all the fiscal policies of the authorities.
Harmonizing to the one-year reappraisal of in-between eastern banking in 2006, by Moin Siddiqi and Neil Ford, the top 10 in-between eastern Bankss where in the gulf. The top bank of the Middle East was “ National Commercial Bank ” from Saudi Arabia with a capital transcending 5777 million dollars. The 2nd bank in the Middle East is “ Arab bank plc ” from Jordan, with a capital transcending 3749 million dollars. The 3rd, 4th and 5th Bankss are “ Al Rajhi Bank ” , “ Samba Financial group ” , and “ Riyad Bank ” which are all from Saudi Arabia with capitals between 3597 million dollars and 2908 million dollars. The 6th and 7th Bankss are “ Abu Dhabi Commercial Bank ” and “ Emirates Bank International ” which are both from the United Arab Emirates with capitals of 2344 and 2110 million dollars. The 8s bank in the Middle East harmonizing to the one-year reappraisal of 2006 is “ National bank of Kuwait ” from Kuwait with a capital of 2109 million dollars. The 9th bank is “ First Gulf Bank ” from the United Arab Emirates with a capital over 2085 million dollars. And eventually the 10th bank of the in-between E is “ Saudi British Bank ” from the KSA with a capital over 2000 million dollars.
Lebanon ‘s economic system for case is broad and unfastened, and traditionally to a great extent oriented toward services. The cardinal bank which was established in 1963 has a batch of authorization over Bankss and fiscal establishments in Lebanon. An of import event we should advert is that due to the civil war in Lebanon between 1975 and 1990, the Lebanese lb lost around 85 per centum of its value. Some of the chief duties of the cardinal bank are to command the Lebanese currency, continue the pecuniary stableness, and maintain the solidness of the bank sector. The cardinal bank of Lebanon has the right to utilize all steps needed to guarantee the stableness of the exchange rate, nevertheless it is best controlled by purchasing and selling foreign currencies.
The cardinal bank, or BDL ( Banque du Liban ) controls bank liquidness by seting price reduction rates and by giving installations to Bankss. The cardinal bank is responsible for enforcing recognition bounds, and for allowing licences for the constitution of Bankss, fiscal establishments, securities firm houses, money traders and foreign Bankss.
Harmonizing to the sector study of “ Global investing house ” sing the banking sector in Lebanon, there are 50 five fiscal establishment and twelve specialised Bankss. In Lebanon there are seventy four commercial Bankss, together runing 872 subdivisions. In its 2009 study of the top 100 Bankss in the Middle East, “ The Banker magazine ” integrated 11 Lebanese Bankss on the list, where none of those Bankss was ranked in the top 20 Bankss. The top Bankss in Lebanon were bank Audi, followed by Blom Bank, Banque de la Mediterranee, Byblos Bank, Fransabank, and Banque Libano-Francaise.
As we all know, the state of affairs in the Middle East in general, and Lebanon specially is non stable at all. The whole part suffers from deficiency of security due to the struggle with Israel. In Lebanon peculiarly, this job has more consequences and amendss so other Middle Eastern states since Lebanon is at the northern boundary line of Israel. The presence of the “ to a great extent armed ” Hezbollah in the South of Lebanon, near the Israeli boundary lines is considered a really serious menace to the Israeli national security which leaves the whole country in a changeless province of conflict and struggle. Shakeouts like the July war on 2006 can go on really rapidly, where a war can take topographic point anytime and really all of a sudden!
In add-on, the political instability in Lebanon and the clangs that might really rapidly and without a logical or rational ground take topographic point in no clip. For illustration in May 2008, the capital Beirut and several other Lebanese parts were invaded by force by the Hezbollah activists in less than a twenty-four hours! The Lebanese ground forces which is responsible of the security of its citizens had to stand aside because of their incapableness of confronting the state of affairs and Hezbollah! That shows us and proves us that serious jobs can go on in Lebanon, and besides in the capital in no clip, without holding the right security forces or the proper equipments to enforce security!
Besides, another job faced in Lebanon is the deficiency of engineering which is a serious challenge confronting Lebanon, and exactly the banking sector where new methods to heighten the Bankss public presentation and to assist make new offers for a better client service are non applied at all. Even though the banking sector in Lebanon has improved a batch in the past 10 old ages and is good known in the Middle East, basic and simple equipments are used due to the deficiency of resources to acquire new engineering.
Furthermore, the deficiency of earnestness in work, the obvious corruptness in general in Lebanon and the absence of right preparation plans for employees putting to deaths any motive the employees have.
All those issues stated earlier lead to a job in the banking sector which every bit good leads to more serious jobs in client keeping where clients tend to alter Bankss when they donaa‚¬a„?t see and feel the proper communicating that should go on between any good bank and its clients. Banks are neglecting in turning clients to loyal clients due to a bad client relationship direction and really low investing to better that! From the challenges of client keeping is to cognize what clients to retain and how to retain them.
The article “ Development of a Framework for Customer Relationship Management ( CRM ) in the Banking Industry ” by Hab-Yuh LIU which I ‘m traveling to establish my proposal and thesis on argues that CRM is the most of import country of concern for companies based on electronic commercialism like Bankss. LIU argues in his article that CRM if applied right will take to developing functional action programs. The article reflects the important advancement and shows how did the Chinese Bankss evolved in the old ages 2003 and 2004 by bettering their front office and back office mechanization which are straight related to CRM.
To turn out his point, LIU in his article uses a four-strategic model of contact channel direction, enterprise broad direction, client informations direction, and information engineering.
I am traveling to concentrate at the beginning on the contact channel direction scheme where this is the first measure in a successful CRM scheme where the first contact between the bank and the client is recorded. Every contact between the bank the client is a opportunity for the bank to garner more information about the clients wants and outlooks. The 2nd measure is the Enterprise broad direction where harmonizing to LIU the Bankss should incorporate their front office and back office systems from the client ‘s point of position. Then, there is the client informations engineering where the bank should be smart plenty to cognize how to make full the spreads in the client cognition and to derive new penetration into their clients through several analysis methods. At last, but non least, there is the IT direction where a successful CRM requires a serious investings in that sector, plus redesigning a good IT direction can supply a client value-focused information system. LIU argues that if the scheme is used in Taiwan, Bankss will be able to efficaciously react to the assorted internal and external troubles showed in the article. LIU states every bit good that CRM nowadays is going a cardinal driver in a batch of concern ‘s and companies. Harmonizing to the article of LIU, the chief point in making, bettering, and keeping CRM is by turning the focal point of the company from a merchandise oriented direction to a client oriented company. Banks may get down bettering their CRM measure by measure by concentrating on a section possibly, or by developing their endeavor broad solution. LIU tries to implement his scheme on Chinese Bankss. Since most of the Bankss in Taiwan are close to Lebanese Bankss, where they are all little houses and can non even be compared to large international bank, I am traveling to use LIU ‘s CRM scheme on Lebanese Bankss.
I am traveling to be gaining from a 6 months internship at the cardinal bank of Lebanon to garner most of the information refering the banking sector in Lebanon. Furthermore, I am traveling to acquire quantitative informations by garnering bank scheme paperss through contacts I know in the top Bankss of Lebanon, one-year studies of the top Lebanese Bankss where they are published on the cyberspace, and internal paperss from the cardinal bank sing the banking sector in general in Lebanon. As for qualitative informations, I will be questioning bank executives from different Bankss in Lebanon, clients from top Bankss and mean Bankss to compare and analyse the consequences. I will be questioning every bit good a really of import director in the cardinal bank later on.
By following the CRM scheme suggested by LIU in his article, I expect to happen where Bankss are making good, and where they are traveling incorrect. Different consequences sing the four stairss of LIU will be found for each of the Bankss I am traveling to work on. I am traveling to get down with entering how the Bankss are moving in every measure merely like LIU did in his article for Chinese Bankss since both Lebanese and Chinese Bankss are sort of similar. Those findings will give us a really clear position about the CRM schemes in Lebanese Bankss. At the terminal of the thesis, I will be giving suggestions and recommendations for Bankss on how to retain their client, get downing from where each bank is traveling incorrect. Besides I will include in my survey suggestions from the clients point of position sing client keeping and how they would wish to be treated by their Bankss.