Strategic Planning for Banks - Turning Global


The pace of change in the market, bank's size, bank's complexity, increased competition and
sophisticated telecommunications are some of the key reasons why strategic planning for banks has
become essential. In today's markets achieving a sustainable competitive advantage can only
materialize through sound strategic planning. Without such strategic planning a bank will almost
certainly diminish with time.

JSCS management experts produce Strategic Plans for banks, in three
distinctive, yet integrated phases, to wit;

a. Preparation of position papers for each department of the bank
b. Production of Situation Analysis Document
c. Production of Corporate Plan Document   

The position papers cover the following areas:

  •  Socio - Political Environment

  •  Regulatory Environment

  •  Taxation

  •  Financial Services Sector/Competition

  •  Past Performance of Operations (Long Term History - Trends)

  •  Marketing Plan

  •  Corporate Banking

  •  Bad and Doubtful Section of Corporate Banking

  •  Trade Finance Operations

  •  Retail Banking

  •  Consumer Finance

  •  Bad and Doubtful Section of the Consumer Finance Section

  •  Private Banking

  •  Financial Institutions

  •  Treasury/Foreign Exchange

  •  Card Products

  •  Securities - Custody / Sub-Custody

  •  Automation and Technical Services

  •  New products

  •  Distribution Channels/Existing Network/ New        
           Branches/Closures/ATM/Internet/Private Customers' Solutions

  •  Distribution Channels - Proposed Acquisitions / Sales

  •  Distribution Channels - External Branches

  •  Financial Control

  •  Property

  •  Public Affairs

  •  Human Resources

  •  Profitability Analysis


Each Position paper normally contains a detailed analysis of the following:

  •  Market

  •  Competition

  •  Products

  •  Pricing/Profitability/Productivity

  •  Communication / Promotion

  •  Sales/Business Development

  •  Services

  •  Organisation / Systems

  •  Strategy       


The planning process consists of four phases:

  •  Research;                Collection of relative data

  •  Assessment;           Evaluation of the data collated

  •  Completion;             Ensuring that the strategies and financial are  
                                               consistent with each other

  •  Communication;     Crucial to the success of the plan

Over the years, we learned that maximising the benefits of the planning process depends on a host of
factors; commitment, ambition, flexibility, vision, follow-through, market intelligence and involvement.

To direct the bank's total resources (aim of the banking strategic plan) towards achieving a
predetermined set of imperatives over a considerable period of time, is a complex task, but a possible
one.

The placement of quality imperatives is crucial to the success of the strategic plan;
imperatives such as "Revenues should rise faster than costs" or "The cost/income ratio should not
exceed 60%" or "Net profits should rise faster than risk-weighted assets" are few examples of the way
banks' strategic imperatives should look like.



                            JSCS: Strategic Planning for Banks      
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