The most important advantage that the bank has is that it delivers its services where private banks don’t. We are talking about poor and extremely poor communities, which may not even know what a money transfer or a savings account mean. Private banks don’t think that segment is profitable, but Banco de la Nación sees a great potential, and doesn’t just worry about making money, but it genuinely worries about people and the conditions they are currently living in, and one of their objectives is to improve their quality of life by introducing them to the benefits of bancarization. This way, they can get loans too, among other things, in order for them to start a formal business.
In a bank, the suppliers are the ones who provide the money. The most important supplier is the Central Reserve Bank of Peru. As we all know, among other things, it creates money. Every bank has an account in BCRP, whenever they need money, they can take money from the account. We can also say that other banks are suppliers too. For example, if one bank needs money in Cuzco, another bank can lend him the money and the bank will transfer it back in Lima. This is called compensation.
Trust Funds. Arrangements that allow to create sustained benefits for someone else or for an entity. The objective is to have financial security. Trust funds can include a wide variety of assets like money, properties, stocks, bonds, etc. and it has some limitations to make sure that those assets are going to be used to the established purpose. The assets form an autonomous patrimony independent of the other client assets. For example, parents sometimes create a trust fund for their children to pay for their college tuition and secure their education. Trust Commissions. Essentially, trust funds and commissions have the same objective, but the difference between them is that the assets which the client wants to form the trust commission with, doesn’t form an autonomous patrimony, so the administration is on behalf of the client. Factoring. Is a form of financiation to obtain working capital. Through this, companies can turn their receivable accounts into cash whether those receivables are goods or services
Prosegur is not only a transportation company; it offers a lot of services. The ones that are relevant for this assignment are: Cash Management Treasure ManagementValue ProcessingCollection Centers ManagementCollector BoxPayment of WagesBanking Center The company offers an integral collecting management service, including the scheduled collection of the cash, directly or through cash transfers and daily supply. ATM ManagementCash PlanningCash ReplenishmentCounting and Cash ProcessingAdministration of cards that are heldTechnical assistance and maintenance Prosegur assumes whole responsibility of the logistic chain for this channel.It operates under maximum security checks. It has digital recording systems that cover the entire process of opening, counting and detection of anomalies. Hermes also carries the money from one point to another.
The system of operations on Internet of the Bank gives the opportunity to make consults and transactions online.This service gives the possibility to make consults using your mobile phone. People can only have access to this with Movistar or Claro with WAP access (Mobile internet)A POS terminal manages the selling process by a salesperson accessible interfaceMobile Multired are basically mobile agencies which can get to remote places. ATM’s (Automated teller machine), also known as cashpoints is a computerized telecommunications device that provides clients with access to financial transactions in public spaces without the need of a cashier or other intermediaries. We can consider this as a disintermediation.
Banks doesn’t just concentrate on the consumers they already have. They usually try to capture or conquer new segments. For example, Banco de la Nación tries to help poor population including them in the financial system.
FacilitiesHas approximately 516 facilities along the national territory. One of the main objectives of the bank is financial inclusion of poor rural population, so in order to accomplish this, they must be effective and not efficient. They are effective because they try to locate an agency, ATM`s or other systems every place they can, and not locate them in strategic places, so everyone can have access. It is very hard to go from one town to another especially because of the lack of money and an inadequate infrastructure. We can also say the bank is efficient, because besides the social roll that it has, it does studies to make sure that the facilities are going to be profitable too. InventoryThe inventory is composedof money which is stored on vaults. Each facility has its own little vault that allows them to cover the customer’s daily demand, so we can say that the inventory is effective rather than efficient. We can also say it’s efficient because the transporting companies have 2 vaults in their facilities, one of the BCRP for the Bank and other operational vault. The transportation companies that are Prosegur and Hermes deliver the money to the agencies and other bank facilities daily. This is to reduce the risks of having the vault in the agencies. Other reason why we say the inventory is efficient is because the vaults in every agency keep the right amount of money to cover their needs, this means that the big vaults that are located inside the transportation companies, which earn a fee (BCRP vault) are producing more money, so if the vaults in the agencies would have more money, the bank would be losing those earnings. TransportationTransportation is efficient. They outsource this service like we said before, Prosegur and Hermes take care of this. They try to save money as much as possible optimizing the routes and gasoline. InformationInformation is effective. Customers are not going to put their money in an institution if they don’t have enough information and especially if they don’t trust the bank. So it has to make sure that everyone knows what it offers and how. They must get the information to the customers, entities, etc.
The image above shows the basic process of how the bank works in order to create more value, penetrate new segments and keep being well positioned in the market segments BN is already in.The way a bank can add value to its chain is by an excellent service and more competitive interest rates, etc.One of the ways of adding value to the chain is through the service, so this brings us to human resources. The bank has more than 3600 employees in the country, who work very hard so the clients can have access to financial interconnection. The cultural diversity of the bank´s employees is compatible with the idiosyncrasies of its customers. In line with their objectives, 87% of the network of agencies is located in provinces. That is more than 50% of the entire financial sector.
The Value ChainThe image above shows the basic process of how the bank works in order to create more value, penetrate new segments and keep being well positioned in the market segments BN is already in.The way a bank can add value to its chain is by an excellent service and more competitive interest rates, etc.One of the ways of adding value to the chain is through the service, so this brings us to human resources. The bank has more than 3600 employees in the country, who work very hard so the clients can have access to financial interconnection. The cultural diversity of the bank´s employees is compatible with the idiosyncrasies of its customers. In line with their objectives, 87% of the network of agencies is located in provinces. That is more than 50% of the entire financial sector.The workers must act with neutrality, transparency, discretion and responsibility. The bank is committed to make sure that its employees share the following organizational competencies:Spirit of service, Commitment, Honesty, Creativity, Efficiency, Communication. In the process of becoming a service bank, the bank wants to establish itself as a socially responsible institution. Within the Strategic Plan 2009-2011, one of the general objectives is to "create value for the state and society" and under this premise the BN is working on the application of principles of Corporate Social Responsibility - CSR.One of their social programs are: “Todoshacemoscaminoparaunavidasana”, “Taxi Cívico”, enabling retirees to make their collections and retirements, etc . The bank also has its own foundation called “Fundación Cultural del Banco de la Nación”.BN, pursuant to the General Comptroller's Resolution No. 458-2008-CG, agrees to implement the Internal Control System of the State institutions.BN, for the third time, won the 2010 Corporate Governance event. In this fourth version of the contest, the state bank achieved the medals in the categories:Best Risk Management and For the third year Best Corporate Governance of State-owned enterprises.The costumers need confidence in the institution. Risk rating companies: Equilibrium and Apoyo & Asociados give BN the classification of A and A- that consolidate it as a secure financial entity.
Inventory ManagementAs we know the inventory of BN consists of coins and banknotes. In consequence it is a finished products inventory that is made under specific orders.Types: Safety Stock: we say BN has a safety stock inventory because the bank needs to be protected against uncertainties in demand. It is consider prudent to maintain a reasonable inventory level to be able to meet unexpected demand in the event of a run on cash, precipitate by a natural disaster or loss of confidence. So the safety inventory allows BN to be prepared to cover the demand in these cases.There is also, by law, a compulsory reserve rate for each financial institution. In Peru, this rate is between 9 or 10%.Cycle: the inventory is also a cycle inventory because in the year there are two periods when demand for cash increases. These periods are July and December due to Holidays and Christmas bonuses.Costs:The principal costs BN have are of three types:Holding costs: These are the costs for storage and handling money and also the insurance costs that are vitality important to avoid losses. Ordering costs: These are high costs for ordering one of the suppliers to bring money.Shortage costs: Cancel an order is also expensive.Systems:Fixed –time period model: monthly, BN aks for money.Fixed-order period model: when money is required.
Basic information<br />Values<br />Commitment<br />Innovation<br />Social sensitivity<br />Confidence<br />Integritywithefficiency<br />Long Term Objectives<br />Financialinclusion<br />Create value for the nation and society<br />Provide satisfaction to the client<br />Develop a new organizational culture<br />Be known as an honest and transparent bank<br />Competitive Advantage<br />
Process management<br />Customer involvement: social inclusion<br />Process alternatives:<br />Association with other companies<br />Management work standards:<br />Workers motivation<br />Timely performance appraisals<br />Internal Control Committee<br />Process Control: supply base<br />Organization divided in process: faster attention<br />