Key Performance Indicators
Key Performance Indicators (KPIs)
Financial KPIs
To support the Group's strategy and ensure that the Bank's performance can be monitored, management utilises a number of financial KPIs. The table overleaf presents these KPIs for the period up until December 2009. At a business level, the KPIs are complemented by a range of benchmarks that are relevant to the planning process and to reviewing business performance. FirstBank has a number of key targets against which future performance can be measured.
Non-Financial KPIs
FirstBank has chosen three non-financial KPIs, which are important to the future success of the Group in delivering its strategic objectives. These non-financial KPIs are currently reported internally within the Bank, and not on a Group basis.
- Financial KPIs
- Non-financial KPIs
FirstBank has chosen three non-financial KPIs, which are important to the future success of the Group in delivering its strategic objectives. These non-financial KPIs are currently reported internally within the Bank, and not on a Group basis.
Description
In order to manage the FirstBank brand most effectively, the Group tracks brand health among personal financial services and commercial banking customers in each of the Bank’s major markets. The survey is conducted on a consistent basis by accredited, independent, third-party organisations. A weighted scorecard of brand measures produces an overall score for each market on a 100-point scale, which is then benchmarked against that of main competitors. The scores from each market are then weighted according to the risk-adjusted revenues in that market to obtain the overall Group score.
Performance
Group brand health survey score
2009:
94%
4.44% improvement
2008: 90%
Source: Research International: Bank Total Awareness
| Market share | 7 |
|---|---|
| Awareness | 94 |
Source: Market survey by Connect Marketing, December 2009.
Source: FINABUS Report, June 2009.
The above survey focus on the age group 11–35 years.
Strategy
The brand strategy for 2010 and beyond is to leverage the tangible strengths of the Bank to grow market share by connecting with the youth market in a way that positively changes their perception of FirstBank from old, arcane, slow and not in tune with the contemporary young and upwardly mobile consumer segments. To this end, many initiatives have been developed and are ongoing, involving actual reengineering of the Bank's retail/channel strategy as well as perception management through direct engagement and communications.
Description
FirstBank tracks two key measures as indicators of IT performance. They are the number of customer transactions processed and the reliability and resilience of systems measured in terms of service availability targets.
The number of customer transactions processed reflects the dependency on IT in the delivery channels that customers use to interact with the Bank. Monitoring the volumes by channel enables the Group to allocate resources appropriately. To improve efficiency, the Bank aims to manage the rate of increase in IT transaction processing costs to below the volume increase.
FirstBank's IT function establishes with its end-users service levels for systems performance, such as systems running 99.9% of the time or card authorisations within two seconds. It also monitors the achievement of each of these commitments.
Performance
Number of customer transactions processed
2009:
142,706,722
22.23% change
2008: 116,752,899
Source: The 2008 transactions cover the financial year. The 2009 transactions cover the calendar year.
| ATM network uptime** | 98.7 |
|---|---|
| ATM approval success** | 90.1 |
| WAN services uptime* | 98.5 |
| Data Centre services* | 97.9 |
| Internet banking* | 98.3 |
| Messaging* | 97.5 |
Source: *FBN Infrastructure Management System;
** Interswitch.
Strategy
FirstBank will continue to lead in the use of technology to drive service excellence and product innovation. Focusing on using technology as an enabler of business growth, we have improved the reliability of our service platforms to improve customer experience across branch and electronic channels. We are currently deploying new business services that facilitate transaction simplification, low-cost operations and convenience through these channels for customer retention and acquisition. In addition, we are empowering employees with new tools to facilitate work in and out of office for more agile response to customer requests, and empowering all tiers of management with qualitative, timely information for decision-making and strong risk management. IT performance and system reliability are integral to realising our growth ambitions.
Description
Customer recommendation is an important driver of business growth for the Bank, which in turn uses a consistent measure of customer recommendation around the world to improve on the services being provided by the Group. This measurement is carried out by accredited, independent, third-party organisations and the resulting recommendation scores are benchmarked against competitors.
In the 2008 KPMG survey, the Bank was ranked 16 out of 23 banks. While some level of improvement has been achieved from the previous survey, service excellence and improving customer experience remain key to sustaining leadership within the industry. The Bank aims to be in the top quartile of this index in the next few years.
To meet this objective, the Bank created the Corporate Transformation Office, charged with, among other things, improving customers' experience at the branch level by creating a world-class environment backed by excellent service. This office has since put a lot of measures in place that will ensure improved customers services which will positively impact on the Bank's customer satisfaction rating by the time the results of the year's survey are released. Some of these measures include service delivery channels (FirstContact, FirstServe and Touchpoint Re-Engineering), and operational excellence (Fleet Management, Manning Optimisation and Quick-wins). Details of these initiatives are provided in other part of this report.
Performance
By implementing a comprehensive service delivery program to address these three key driving factors, and the associated root causes within our operations, FirstBank aims to achieve a top three customersatisfaction ranking by 2011.
| 2008 | 2009 | |
|---|---|---|
| KPMG survey ranking | 16 | 12 |
Strategy
Bank
FirstBank will increasingly strive to improve overall service delivery quality through a number of initiatives currently underway. We will lead our transformation programme with the Service Delivery 'lens' to ensure ll initiatives drive impact at the front line. Furthermore, the Bank will institute incentives to aggressively move routine transactions to alternate channels and simultaneously ensure that premium customers (e.g., corporates, high net-worth customers) receive first-class service.