The case of Lloyds TSB Bank: SERVICE QUALITY PROCESS MAP

Opening a student account: Current process

In order to grasp an understanding of the process of opening a student account, it was necessary to develop a detailed flowchart representing the process steps from the consumer’s and the provider’s viewpoints. Through interviews and participation observation the authors were able to develop at ‘first hand’, an understanding of the service process as it proceeds in its natural environment in ‘real time’. However, documentation of the process in the form of a flowchart diagram facilitated analysis and problem identification. Documenting the process aided the authors’ knowledge and understanding of how the service is delivered to the customer. The view of the current process of opening a student account is shown in Figure 1.

Figure 1 Opening a student account

The process of OSA is split into two sub-processes by a line of visibility. From the original flowchart one determined the potential problem areas. There are some problematical areas which show that the OSA process is currently weak in design. However, without discovering these potential problems there cannot be effective management and improvement. Figure 2, therefore, illustrates the problem areas to be tackled.

Figure 2 Process for opening a student account: Analysis of potential problem areas

Some of the problems are ‘soft problems’ that cannot be displayed on the flowchart, but they are discussed in the following section.

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.

Implications of Non-payment: Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. Non-payment of a payday loan might negatively effect your credit history.

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