CATHOLIC UNIVERSITY OF MOZAMBIQUE

Faculty of Economy and Management

SERVICE STRATEGY

Of:
DAVID FRANCO
ISAC CHAILE
JNIOR MARIMBIQUE

Research Project

BEIRA
AUGUST, 2014

Contents
1. MARKET STUDY......................................................................................................................4
1.1 Banking Analysis....................................................................................................................4
1.2 Analysing the E-banking services offered..............................................................................4
1.3 Customer Analysis..................................................................................................................4
2.0 SERVICES OFFERED IN NEW BANK...................................................................................6
2.1 INTERNET BANKING.........................................................................................................6
2.1.1 Opportunity, Threat, Fight and Weakness analysis..........................................................6
2.1.2 Customers Advantages and Disadvantages.....................................................................7
2.1.3 Services available............................................................................................................7
2.1.4 Rationale..........................................................................................................................8
2.2 TELEPHONE BANKING.....................................................................................................8
2.2.1 Opportunity, Threat, Fight and Weakness analysis..........................................................8
2.2.2 Customers Advantages and Disadvantages.....................................................................9
2.2.2 Services available............................................................................................................9
2.2.3 Rationale........................................................................................................................10
2.3 AUTOMATED TELLER MACHINE - ATM......................................................................10
2.3.1 Opportunity, Threat, Fight and Weakness analysis........................................................10
2.3.2 Customers Advantages and Disadvantages...................................................................11
2.3.3 Services available..........................................................................................................11
2.3.4 Rationale........................................................................................................................11
3.0 SERVICES DEVELOPMENT................................................................................................12
3.1 Our Values............................................................................................................................12
3.1.1 People as a competitive advantage................................................................................12
3.1.2 Ethics.............................................................................................................................13
3.1.3 Whats right for customers?...........................................................................................13
3.1.4 Diversity and inclusion..................................................................................................13
3.1.5 Leadership.....................................................................................................................14
3.2 Service Sourcing Decisions..................................................................................................14
3.3 Financial Management.........................................................................................................14

Introduction
In this work we present the services to be implemented in the new bank, he primarily describes
the electronic banking services in order to create a competitive environment with other banks
already established. Studies and analysis refers to the city of Beira market. Further down the
work depicts the keys to good management and delivery of services to be implemented by the
bank.

1. MARKET STUDY
1.1 Banking Analysis
Nowadays in Beira is working more than 10 commercial banks, and the mostly services that has
being mostly offered are ATM with VISA, Deposit and Public Service for general information.
Every fortnight of every months some banks have verified congestion in ATM' s, Many
customers have gone to the bank to make cash deposits that create some congestion in some
agencies that are not structured to support many customer at same time. Also we can see the
placeholder for customer information even if is not full, it takes a long time to attend client per
client because each customer have own situation or problem, which makes the customer take
more than one hour just to see if the check book already been available.
1.2 Analysing the E-banking services offered
Nowadays All banking processes are digitized, that makes easy and secure the daily operations.
However, these services arent answer the customer wishes and requirements, that want have
more services at home or office. So the Bank's challenge now is to bring customer services this at
home or office using the existing communication platforms, in special the internet.
The e-services are growing year per year, but the customer are still not use these services,
because customers not feel safe to operate transactions by internet. Or telephone for example.
In ATM besides the congestion sometimes there are also situations of swallowed cards, poor
system connection, lack of paper; but the customer have used this service to all banks as a means
of raising money.
The POS are also used very much these days that we see on supermarkets, shops, pharmacies and
grocery stores on the town.
1.3 Customer Analysis
In Beira the banking users has grown, result of economic development and the improvement of
the business environment. Nowadays many companies use banking services to pay workers
wages, national and international commercial exchanges, taxes payment and other. This makes
more and more people look for banking services. The customer number increasing and the needs

quality of services offered, which may be motivation for make changes for better services.
Most customers are young these days from the economic underclass-media, although the upper
class also increased with the arrival of large international companies interested in natural
resources. Most clients have the basic and middle education level, with a little bit control in the
use of information technologies.

2.0 SERVICES OFFERED IN NEW BANK

After analysing the market we identify some e-baking services that will be implemented:
Electronic banking (e-banking) generally refers to the provision of banking products and services
through electronic channels such as the personal computer, through landline and mobile phone
connections, or through automated teller machines (ATMs). These electronic banking products
include the electronic money products that are aimed at facilitating retail payments. So, the Bank
will have the following e-banking products and services:
1. Internet Banking
2. Phone Banking
3. ATM
2.1 INTERNET BANKING
Internet Banking is a service used to characterize transactions, payments and other financial
transactions and data, through the bank's secure web page over the internet. This is very useful,
especially to use the bank services past of office hours or anywhere with Internet access. Mostly,
Internet Explorer or Mozilla Firefox web browser are used and any Internet connection available
is sufficient.
2.1.1 Opportunity, Threat, Fight and Weakness analysis
External Factors

Opportunity
increase number of internet users

Threat
Concurrency

literacy increasingly comprehensive

Lack of financial literacy of many

Falling of prices of internet

Central Bank supports the use of

Political instability

electronic banking

Cybercrimes

Increased number of people who need

Lack of law that punishes cybercrimes

Mozambicans

electronic banking

Falling

prices

of

in Mozambique
computers

and

Phishing

Smartphones

Government massifies the use of

information technologies

Internal Factors
Fight
Weakness
Existence of human capital to develop
The service is not known
and manage the system

Existence

of

system

against

The bank is not known

The Hardware must be imported

cybercrimes

Existence of consultants able to provide

support in purchase the necessary
hardware

Existence of staff to support and

instruct the clients

2.1.2 Customers Advantages and Disadvantages

Advantages:

24 hours bank services support every day

Faster (dont to go to the bank)

Cheap operations cost

Online service

Disadvantages:

Unsafely

Decrease the physical relation between the client and bank

2.1.3 Services available

Check request

VISA card request

VISA card cancel

Check cancel for misplacement (New service)

Services payment

Asking to card/check arrived (New service)

Support via Chat (New service)

ATMS and Agencies location via Google maps (New service)

2.1.4 Rationale
The information technology growth is connecting more people to the internet network. So to give
more value to this development the Bank will offer Internet Banking service for its customer.
Aware of the disadvantages of this system, especially those related to security, it is a challenge to
all combat internet crime, the system will be equipped with Ant-Phishing devices.
This service will provide online support for the customer and reducing the congestion on the
bank. Also look that the Internet Banking from Digital Bank has new and unique services in the
market which will give more value to the Bank. According to the analysis of the customers made
in the previous chapter shows that young people are the dominant force in the use of banking
services, which coincides with the trend of use of information technologies that shows that
young people are the main users of these technologies, so this service sure it will meet the youth
class.
2.2 TELEPHONE BANKING
Provision of certain banking services (such as account balance inquiry, funds transfer, and
payment of bills) through telephone. Allows you to access your account information and perform
routine transactions from a touch-tone telephone.
2.2.1 Opportunity, Threat, Fight and Weakness analysis
External Factors

Opportunity
Telephone users increasing

Competition

Threat

Cheap Cell phones

Financial education lack

Central bank support the use of e- Mobile phone theft

Political instability
baking

Internal Factors

Fight
Weakness
Existence of human capital to develop The service is unknown
The bank is unknown in the town

and manage the system

Existence

of

system

against The hardware must be imported

cybercrimes

Existence of consultants able to provide

support in purchase the necessary
hardware

2.2.2 Customers Advantages and Disadvantages

Advantages:

24 hours bank services support every day

Faster (dont to go to the bank)

Cheap operations cost

Easy to operate

Disadvantages:

Telephone and ID theft

Decrease the physical relation between the client and bank

2.2.2 Services available

Check request

VISA card request

VISA card cancel

Check cancel for misplacement (New service)

Services payment

Asking to card/check arrived (New service)

Support via Chat (New service)

Support via Telephone

2.2.3 Rationale
Mozambican population more than 30% of them uses cell phone in their daily communications,
this number is growing up in urban centres, with registration of more 60% of people using the
telephone to communicate. Another factor is the simplicity and ease to use, compared to
computer or smartphone for example.
Telephone banking just a simple customer instruction to understand the functions, making this
the most simple and affordable means to carry out banking operations. Telephone banking is not
being used in Beira, however there are some countries in Africa which half of the population use
phone banking.
Security problems are relatively low compared to the internet banking once the system had used
the SIM and the phone number as documents certifying the risks happen when you register
stolen phone or SIM card.
2.3 AUTOMATED TELLER MACHINE - ATM
An electronic banking outlet, which allows customers to complete basic transactions without the
aid of a branch representative or teller.
There are two primary types of automated teller machines, or ATMs. The basic units allow the
customer to only withdraw cash and receive a report of the account's balance. The more complex
machines will accept deposits, facilitate credit card payments and report account information.
2.3.1 Opportunity, Threat, Fight and Weakness analysis
External Factors
Opportunity
Central bank support the use of e-baking
The

low

price

of

theses

machine

Threat
Competition
in

Financial education lack

international market

political instability

The service most assembled in Mozambique

Card conation

E-banking users increasing

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Internal Factors

Fight
Weakness
Existence of human capital to develop The service is unknown
The bank is unknown in the town

and manage the system

Existence

of

system

against The hardware must be imported

cybercrimes

Incapacity to realize complex transactions

Existence of consultants able to provide

support in purchase the necessary
hardware

2.3.2 Customers Advantages and Disadvantages

Advantages:
24 hours bank services support every day
Cheap operations cost
Easy to operate
Disadvantages:
Swallowed cards
People congestion
Unsafely
Error in system connection
2.3.3 Services available
Check request
Deposits (New service)
Check cancel for misplacement (New service)
Payment service
2.3.4 Rationale
In Mozambique more than 90% banking transactions are carried out by ATM, and this this space
to gain more customers, until companies already adhere to these machines for the current
account. The Digital ATM Bank brings an innovation in the market that is deposit values and
count money. Also can cancel checks issued that have been lost or for security reasons

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3.0 SERVICES DEVELOPMENT

The Banks Board of Directors and the Senior Management Committee shall be responsible for
developing the Bank's e-banking business strategy and establishing an effective management
oversight over e-banking services. This shall include the review and approval of the key aspects
of the Bank's security control program and process, such as the development and maintenance of
security control policies and infrastructure that properly safeguard e-banking systems and data
from both internal and external threats. This will also include a comprehensive process for
managing risks associated with increased complexity of and increasing reliance on outsourcing
relationships and third-party dependencies to perform critical e-banking functions.
3.1 Our Values
Our values should guide every conversation we have, every decision we make, and every
interaction we have among our team members and with our customers. Our values should anchor
every product and service we provide and every channel we operate. If we cant link what we do
to one of our values, we should ask ourselves why were doing it. Its that simple.
We have five primary values that are based on our vision and provide the foundation for
everything we do:

People as a competitive advantage

Ethics
Whats right for customers
Diversity and inclusion
Leadership

3.1.1 People as a competitive advantage

We value and support our people as a competitive advantage. We strive to attract, develop, retain
and motivate the most talented people we can find, people who care and who work together as
partners across business units and functions. We provide them the tools and training they need to
succeed in their work, and we want them to be responsible and accountable for their businesses
and functions. We expect their best and thank them for their outstanding performance.
We say team members not employees because our people are a treasured resource to be
invested in, not expenses to be managed and because team work is essential to our success in

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helping customers.
3.1.2 Ethics
We strive for the highest ethical standards with team members, customers, our communities and
shareholders.
Honesty, trust and integrity are essential for meeting the highest standards of corporate
governance. Theyre not just the responsibility of our senior leaders and our board of directors.
Were all responsible.
Our ethics are the sum of all the decisions each of us makes every day. If you want to find out
how strong a companys ethics are, dont listen to what its people say. Watch what they do. This
is even more important in our industry because everything we do is built on trust. It doesnt
happen with one transaction, in one day on the job or in one quarter. Its earned relationship by
relationship.
3.1.3 Whats right for customers?
We value whats right for our customers in everything we do.
Were proud to compete in an industry thats central to the growth of our local, national and
global economies an industry in which doing whats right for our customers and communities
enables us to make a fair profit at the same time. Our customers external and internal are our
friends. We advocate for their best interests. We want them to feel as if theyre part of The Bank
that were their company. We want to be approachable and caring, exceed their expectations, and
invest in long-term relationships that last a lifetime.
3.1.4 Diversity and inclusion
We want to build and sustain a diverse and inclusive culture for all Bank team member, one
where they feel valued and respected for who they are as well as for the skills and experiences
they bring to our company. We want team members to feel comfortable and enjoy being part of
our community, knowing they can build a career here and help the Bank succeed.
Our commitment to diversity and inclusion is key to being one of the worlds great Bank. Its a
business imperative that lets us take advantage of the creativity and innovation that come from
multiple perspectives and allows us to respond quickly and effectively to customer needs here at

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home and all across the globe. It also helps us understand our customers more fully, see business
opportunities in new ways and succeed in serving the needs of our expanding customer
segments.
3.1.5 Leadership
Were all called to be leaders.
We believe everyone can be a leader that leadership is not the exclusive domain of senior
managers. Were all called to be leaders to be the link between the vision of the Bank and our
customers. We define leadership as the act of establishing, sharing, and communicating our
vision and the art of motivating others to understand and embrace our vision. Leaders are
accountable. They share the credit and shoulder the blame. They give others the responsibility
and opportunity for success. Good leaders inspire teams to have confidence in their leadership;
great leaders inspire team members to have confidence in themselves.
When a customer is waiting for an answer, we have to be able to respond fast, on the spot. Thats
a competitive advantage
3.2 Service Sourcing Decisions
Whether you build, buy or outsource, the key is optimizing the return and making sure the
quality doesn't get compromised by utilizing an external party to do the work. The sourcing
strategies are options to pursue on the way to optimizing ROI and performance, and on the way
to developing your best cost-benefit approach.
The bank will tend to think of their primary supplier as their core banking vendor. The services
the supplier provides can be as comprehensive as the bank wants. The other sourcing option
tends to be thought of as in-house. Banks tend to stay with one or the other and will switch only
when there's been a management change or if the organization grows significantly. On the other
hand, the bank might decide to hire a specialist to come in on a temporary basis for a specific
project after doing an analysis of their strategic capabilities in IT.
3.3 Financial Management
The Bank is a safe and sound company in which our customers and shareholders can place their
trust. We must maintain and measure our conservative financial position by asset quality, capital

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levels, lack of complexity, diversity of revenue sources and sound accounting policies. We
disperse risk by Authentication, risk management into every aspect of our Banking.
We measure our financial success by the financial success of our customers. To be financially
successful, we want all our customers and team members to be financially educated and well
prepared to make wise financial choices. Financial education is the gateway to economic selfsufficiency. We offer several tools and programs to make this happen, and many team members
volunteer in classrooms and other forums across communities.

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