| Criteria for the Country Awards
The Excellence Scorecard is used to evaluate banks on both a country and a regional basis for the Excellence in Retail Financial Services Programme. It is the backbone of the evaluation process and was developed with an eye on one of the key objectives of the programme, which is to create an instrument that is accepted by the player in the retail financial services industry as a viable, objective and representative measure of a bank's performance across multiple areas.
Keeping that in mind, we have made our decision-making process as transparent as possible to help banks understand where they stand as a sustainable retail franchise. Through the scorecard, banks also have the opportunity to re-examine their own products and processes.
Beyond providing us with an opportunity to evaluate and compare banks in the Asia Pacific, Central Asia and the Gulf Region using a standard measure, the scorecard serves as a source of benchmarking and carrying out detailed gap analysis of banks. It is thus a useful tool for banks to evaluate how well they are performing, in term of each of their attributes relative to their peers.
Balanced Annual Scorecard for the Country Awards Assessment
| Dimension |
Weight |
Indicator (all figures pertain to retail banking) |
| Value of Franchise |
7% |
- Market share in core retail deposits
- Average core retail deposits by number of branches
- Retail banking customers |
| Annual Financial Performance |
20% |
- Operating profit (before tax)
- Operating Income
- ROA |
| Sustainability |
12% |
- Net interest margin
- Recurrent income
- Fee income
- Cost to income ratio
- Cost of retail deposits |
| Sales Capabilities |
10% |
- Cross sell ratio
- Market share in retail assets
- Market share in mortgages
- Market share in credit cards (card spend, revolving)
- Genuinely new products introduced
- Branch income/number of branches
- Sales growth in internet banking |
| Transparency in Strategy |
3% |
- Clearly conceptualised strategy
- Submission made
- Depth and transparency in reporting
- Scope of media article quoting senior executives |
| Risk Management |
20% |
- Delinquencies 30+
- Gross write off
- Recovery
- Enterprise wide risk management structure |
| Process, Technology and Efficiency |
10% |
- Core banking platform
- Validation for processes or business lines
- Time to market for a genuinely new product
- Customer turnaround time for a credit card product
- Account opening process
- Predictive dialler capabilities in credit collection |
| Penetration and Efficiency of Distribution Channels |
10% |
- Proportion of self-service transactions
- Customers per branch
- First contact resolution at the call centre
- Proportion of active bill payment users in internet banking
- Proportion of active mobile banking users
- Customers per ATM |
| People Skills |
5% |
- Proportion of senior executives with more than 10 years of service
- Attrition rates (sales)
- Attrition rates (non-sales) |
| Ethical Banking |
3% |
- Published ethical service document
- Depth of social corporate responsibility |
The Excellence awards programme is only a small part of the big picture. It is from these processes that we develop our strategic review of the products and services. If you would like to find out more about our gap analysis, please feel free to contact us.
The focus of the programme is to recognise the banks that have been simplifying their processes and launching innovative products. These initiatives are ones that work and have an impact on the bottom line of banks as well as the industry. To maintain our focus on overall operational excellence and to determain the best retail bank in the Asia Pacific, the Central Asia and the Gulf Region, we do not include the Value of Franchise score in the regional scorecard. This is because the contributing factors to consumer perception are unique to each country and cannot be compared across the region. Players can achieve a maximum score of 47 points in the country ranking and the regional ranking.
The scorecard consists of ten dimensions with 38 indicators. Only in some areas does size matter. We are cognisant that smaller banks may be handicapped in some areas, so only 5% of all indicators favour larger banks. Most of our indicators are standardised figures, and we allow a fairly equal playing field between large and small banks. The ten dimensions are:
| - |
Perception of the bank among peers and in the marketplace |
| - |
Outstanding annual performance of the retail banking unit |
| - |
Sustainability over a long period of time and across economic cycles |
| - |
Transparency and accountability of the business model |
| - |
Clear ethical guidelines stating how business is dome with the customer |
| - |
Clear sales and execution skills at the product level |
| - |
Rigorous risk management capabilities |
| - |
Superior business and operational processes and technology |
| - |
Strong penetration and efficiency of distribution channels |
| - |
Focus on developing human recources both qualitatively and quantitatively |
As we continue to develop and refine our scorecard, we hope to present to the retail financial services industry a better and more accurate instrument that they can use to gauge their performance over a certain time period against that of their peers and competitors across national and regional markets. Ultimately, the Excellence programme is intended not only as an awards programme, but also as a reflective opportunity. In that sense, the programme - and the scorecard - have been developed to enable participating retail financial services institutions to grow, evolve and expand. |
