Through the identification of problem areas within the current process flowchart (Figure 2) the authors have been able to develop recommended changes which will need to be made to the operations as illustrated in the revised flowchart (see Figure 3). These changes will need to be made so that the service experience is as effective as possible for the customer, and as easy to provide as possible for the bank’s front- and back-line staff.

The major change that the authors have made to the process is to remove the paper-based application form. This is one of the main problem areas from both the customers’ and the bank’s point of view. The customers’ perception of the quality of the service is formed at the service counter. If the paper form is removed from the process, this will enable the process of opening an account to be quicker, as the clerk will enter the details directly into the bank’s database while the customer responds to each question. This will also allow for greater interaction between the bank and customer, and the customer will feel that the service is customised.

The increased interaction between the customer and the bank’s employees results in the need for employees to be empowered and competent in their delivery. This is because the employees are drivers of service quality dimensions. The critical qualities that influence the service experience are as follows:

—     Reliability of the service. Can the customer rely on the front- and back- line staff to carry out the necessary work?

—     Responsiveness of the staff. Do the front­line staff undertake their duties quickly and efficiently?

—     Assurance from the staff. Do they give credibility to the service and can the customers trust them?

—     Empathy from the staff. Are the staff able to customise and personalise the service to suit the customers requirements?

—     Tangibles. These are things such as the physical surrounding environment, the atmosphere in the bank and the equipment provided

—     Ability to recover from errors. If things do go wrong, can the staff recover in order to keep the customer satisfied?

Unhappy or unmotivated staff will have a detrimental impact on the service quality. The bank has to ensure that staff are empowered to act in response to unexpected requests from customers. In addition, staff must feel valued by the organisation so that they are motivated to create the correct impression. Feedback from the staff giving their opinions, and training sessions will help to ensure that the service experience is of a consistently high standard.

The whole process will be dependent on the capacity of the service, which includes the number of counters and service personnel available. This will have to be carefully scheduled to meet peak demand so that the service experience for the customer is as smooth and satisfactory as possible.

From the bank’s point of view, the revised process will be simpler and will stop staff having to check the accuracy of the application form once the customer has completed it. The customer details can be entered directly into the bank’s database, which will speed up the processing of the account and remove the need for a lot of paper-based information which has to be mailed to other departments and stored for record purposes.

The resource requirements needed for customer satisfaction from the new service experience include:

—     a sign at the old location of the application forms informing customers of the new process

—     availability of trained staff with which to meet peak demand

—     availability of service counters to meet peak demand.

The changes that have been recommended will result in increased efficiency in the delivery of the service to the customer. As a result, this will be more efficient for the customer, avoiding the lengthy process of completing the application form. An acknowledgement of the customer’s acceptance will be sent on the same day, together with the Welcome Pack.

The new revised process depicted in Figure 3 could overcome the identified problems in Figure 2. However, customers’ requirements are always evolving, demanding changes to the way the process operates. There will be constant demand to reduce cost and cycle time, and there will be new technology capabilities emerging, all of which will drive the need continuously to improve the process.

One can see the recommended changes that have been implemented in an effort to improve the service quality in Figure 3. The main problem area found was the requirement for the customer to complete a paper-based application form which took excessive time for both the customer and for the bank staff to screen. Recommendations have focused on the removal of this paper-based form and the implementation of a computer-based solution. This is where the creative redesign work is beneficial. As part of the redesign process a thorough examination is performed of new capabilities provided by emerging new technologies. Re- engineering considers both the objectives of the process and novel ways of achieving those objectives based on new technology capability and robust, simplified process designs. This paper, therefore, suggests a re-engineered process of OSA.


Representative APR 391%

Let's say you want to borrow $100 for two week. Lender can charge you $15 for borrowing $100 for two weeks. You will need to return $115 to the lender at the end of 2 weeks. The cost of the $100 loan is a $15 finance charge and an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.

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