Financial Institutions

Financial Institutions . . .

The work our management consultants do with our clients in process reengineering or refining/streamlining work processes has far reaching benefits that can be measured in improved service and productivity levels.

Our work in developing and implementing Management Control Systems improves our clients management processes and provides a tremendous dollar impact on the bottom line. Consider the following example:

A financial institution with $1 billion in assets implements the Management Control System which generates a return on investment of $1.5 million annualized. (This would be a typical return for a financial institution of this size.) This savings number goes directly to the bottom line.

In order to put the above in perspective consider the following:

Assume a 1% rate of net income as a percent of assets. For this financial institution to add $1.5 million to the bottom-line by the traditional method of income generation, (i.e. borrow / lend), the bank would have to increase its assets by $150 million (1% of $150 million = $1.5 million). This increase represents 15% growth in the banks assets ($150 million = 15% of $1 billion). This means that the financial institution can, through better control of non-interest expenses, have the same bottom line impact as a 15% growth in asset size.

The benefits of our management consulting services for financial institutions are far-reaching and go beyond the above example. They include:

Assisting commercial banks an savings banks with the consolidation and functional integration of departments, functions, products and services of acquired banks into their operations.
Lower unit costs, (reduction in the cost to process a loan or transaction).
Productivity improvement.
Improved earnings.
Improved service levels and quality levels.
Quicker processing times including loan processing (i.e. reduce the time from receipt of a loan app to funding) and item processing.
Development of customer traffic patterns (branch traffic and telephone banking departments).
Branch staffing models custom developed for your institution that provides better coverage in the branches at lower costs (both branch teller staffing models and branch platform staffing models).
Development and / or refinement of teller floater pools.
A methodology for establishing staffing levels that relate to forecasted volumes of work, including determining the right mix of part time and full time employees.
A method of measuring performance from branch to branch and department to department.
Establishing productivity measures and work standards for fair and equitable employee workloads.
Improved budgeting process and basis for cost benefit analysis, (improved decision-making processes and information).
Improved supervisory effectiveness.
Improved manpower utilization and equipment utilization.
Better tools for long and short range planning and overall growth projection.
Reduction in errors and rework.
A system for administering responsibilities and accountabilities at all levels.
Better basis for accurate price & cost structure of products & services.
Better budgetary input for financial control.
Float reduction and improved cash management.
Process mapping - documentation of work flows and paper flows providing the basis of process improvement.
Reduction of non-interest expenses.

Back

To learn more about Integrated Management Services E-mail us at:

Info@IMmanagementconsulting.com

or write to us at: Integrated Management Services Inc. P.O. Box 92 Hershey, PA. 17033-0092