This document discusses ING Direct Canada, a bank that launched in 1997 as part of the ING Group. It offered savings accounts with high interest rates and low fees. While successful in attracting customers, ING Direct faced challenges from increasing mail volumes and variability in processing. Alternatives like outsourcing or increasing staff were evaluated but found lacking. The document recommends automating the scanning and encoding of cheques using optical character recognition software to improve efficiency long-term without increasing costs. It estimates the software would pay for itself within 5 years compared to continuing manual processing.

1. ING DIRECT CANADA
Group 2 Abirami(29001)
Bharathi Swetha (29010)
Harini(29015)
Jyotsna(29018)
Rachel Priyanka(29038)

2. First Bank – 1817
By 1999
− Domestic Schedule I Bank – 8 Banks
− Domestic Schedule II Bank – 3 Banks
− Domestic Schedule III Bank – 42 Bank
By 1980 : Foreign Banks’ penetration
History of Canadian Banking
Industry

3. Belonged to the ING Group & launched in 1997
Services :
 Savings A/C using low cost platform
 High Interest Rates
 Low Rate on Loans
 Easy enrollment
 No service fee
Restrictions : Budget & Infrastructure costs
ING DIRECT CANADA

4.  Organizational Structure :
− VP
− 41 OA
− Call Centre Employees – Direct Associate
− Mail Room Employees
 Opening an A/C involved the following 4
methods :
 24 hour call centre support
 Online Application support
 ING Cafes
 By email
Current Operational Style

5. Challenges :
No forecasting/ benchmarking measurements
Space constraint
Solutions :
Agissar R/V5
NCR 7731
Staffing Challenges &
Solutions

6. Mail Room Operations

7. 
Dealing the increase in number of accounts
1999 – 110K to 220K
2000 – 220K to 320K

Variability in processing volume

Mail Volume Receipts
500-1500 75-525

Usage of overtime
Current Problems

8. Potential Alternatives
Alternative Drawbacks
Outsourcing • Ongoing Service fee.
• Loss of control
• Restriction by the Office of Superintendent of
Financial Institutions
Increase Staff levels • Not likely to improve efficiency
• Defies the purpose of the review
Relaxing same day
processing requirement
• Integral part of ING Direct’s Customer service cannot
be compromised
• Not a permanent solution

9. Objective of the Analysis
• Avoid staff level increases and also meet the
operating demands of a rapidly growing client
base.
• To arrive at a long term solution.

10. Suggestions
• Automation of Scanning and Encoding step
using intelligent character recognition.
• Cost of Software: $100000
• Outsourcing to countries with cheaper labor

11. Cost Analysis
• Avg time to process one batch of cheques by OA -7.5mins/50
cheques.
• Expected cheques per day-2000.
• Time taken to process manually- 5 hours
• Cost/emp/week = ($15.60*25)
= $390
Cost per year= 20280$
Break Even is 5 years

12. Cost Analysis
• Avg time to process one batch of cheques by OA -7.5mins/50
cheques.
• Expected cheques per day-2000.
• Time taken to process manually- 250 hours
• No. of employees reqd=250/50= 5
• Cost/emp/week = ($15.60*44)+($23.4*6)
= $826.8.
• Cost for 5 emp/week= $4134

13. THANK YOU !!!
19/07/12