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Anveshika Shrivastava
Faculty: Global Strategic Sourcing
Symbiosis Centre for Information Technology
Release 1
Copyright 2011 Anveshika Shrivastava All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior permission of the copyright owner. This case study is a work of fiction, created for
academic purposes and any resemblance to real life entities or corporations is purely coincidental.
Table of Contents
1.
2.
3.
Background ............................................................................................................................................................................. 3
1.1.
1.1.1.
1.1.2.
2.2.
2.3.
2.4.
2.5.
4.
Conclusion ............................................................................................................................................................................ 12
1. Background
Mississauga Banking Corporation (referred to as MBC, here on) was established in the year 1891 in
the city of Mississauga by a group of oil entrepreneurs.
The Bank projected itself as a customer friendly outfit but essentially a competitive bank through the most
of 19th century. It maintained a high degree of liquidity and steadily rose to be one of the major banking
organizations in Canada. Growth was exponential with rapid expansion in emerging cities.
After the war, riding on the post war expansive economic policies, MBC targeted new markets and
entered business banking services. To facilitate this expansion and to maintain their competitive position,
in 1951, MBC acquired a majority stake within a regional competitor who was prominent in Quebec,
Yukon and other North West territories. For most of the 50s, major organizational initiatives were
undertaken to standardize processes and to institutionalize a common culture. After the corporate
cultures were amalgamated, the new addition to its ranks helped MBC expand its presence to northern
provinces from its existing base in Ontario, Manitoba, Saskatchewan, Alberta and British Columbia. An
active PR campaign focused on MBC's traditional 'customer -first' theme - A bank by you, for you, a
highly popular slogan.
In 1960s, major US banking corporations started making forays into the Canadian market, this caused the
MBC to re-assess and streamline its business model. Various market forces such as the increasingly
competitive banking industry, and the need to cut operational costs, led the Bank to introduce technology
with a view to modernize business processes for most of 1960s. To capitalize on its customer friendly
image, the Bank adapted a recruitment and training policy which emphasized on customer support and
wealth management.
Due to the stress laid on improving internal processes and people centric culture, MBC was able to
sustain itself successfully in the recession years of the 80s.
With the advent internet in the 1990s, MBC became one of the first banks in the world to offer e-banking.
The existent streamlined processes jelled readily and successfully to create one of the world's first
integrated banking and broker management/enrolment applications. By the late 90s, through its e banking
solution, hosted on its portal, the bank was successfully able to double its customer base, not only in
Canada but down south in US as well, from the early 90s and positioned itself as a multi-channel eenabled global banking organization.
Through out the 2000s, the bank continued to exhibit an aggressive approach to market expansion and
initiated a spate of banking acquisitions in US, Canada and (increasingly in) Europe.
Today, MBC serves more than 6 million customers at over 1200 branches in Canada alone.
The company has been consistently ranked in Forbes Global 100 listing and is generally regarded as a
employee friendly top employers in the industry. The firm is headquartered at its Mississauga aid unit,
City Centre Drive, Mississauga, Ontario X5X 5C7, Canada.
Mississauga BAU
(BAU-0)
BAU ONT1
Wealth Management
Operations (Niagara
Falls Office)
BAU ONT2
2. P2: Joint Account Holder deregistration process: Inversely, through this process, primary
account holders initiated the process to remove joint holders from their savings account. A Joint
Account Holder deregistration request form was filled by the primary account holder for
initiating this request at the branch who forwarded it to servicing BAU. A copy of the authorization
letter was required to be attached to the paper request. The servicing BAU then sent a fax to Blue
Valley to be able to retrieve the original physical copy of the Joint Account Holder registration
request form, which was originally submitted for registration of the joint account holder. On
receipt of the form from Blue valley, the servicing BAU had to add some deletion details to the
request and fax the ITG IM Department (Mississauga BAU) who authorized mainframe deletions
through a fax. On receiving the approval, the concerned BAU carried out the de-listing of the joint
account holder in the mainframe. An acknowledgement is then faxed to the bank, with
instructions to notify the customer about the request being processed.
3. P3: Cash Pull Adjustment process: An interesting issue, faced mostly by customers from the
previously acquired banks, this involved a failed transaction at the ATM. A customer might
attempt to withdraw the cash from the machine after entering the relevant details. The machine
would dispense cash but would pull the cash back into the machine before the customer can
collect the cash. To compound the problem, even though the customer would not be able to
withdraw the money, the amount would be shown as debited to his account. Anthrop
Corporation (AC) is responsible for maintenance and ATM cash management operations. AC
While they are working to solve these issues, the customer has to approach the bank retail
branch to reverse the debit charges to their account. The customer would fill a paper form, citing
the details of the transaction and attaching the transaction slip to the request. After authentication
of the transaction details at the retail branch, the form would be sent to servicing BAU, where
after request evaluation, the BAU would access Anthrop Corporations (AC) servicing portal to
enter the request particulars to check and verify the discrepancy in debit transaction and actual
cash dispensation statuses. AC would investigate the issue and notify the servicing BAU
operator through an email- about the discrepancy, if any. After receiving the confirmation, the
BAU would undertake transaction reversal to credit the wrongly debited amount to the account.
The BAU would then notify the requesting branch about the reversal, which would then call the
customer to notify.
4. P4: ATM Card Loss / Reissue Process: In cases where the customer looses the ATM Card,
the customer would call the banks support line and after confirming personal credentials, would
intimate the loss of card to the support staff. The support staff would then block the card by
accessing the card vendor SMACARD Org (SO)s support portal and log the loss of card on SOs
back end interface which would automatically block the card. Customer would then approach
the bank with a request to reissue the card. Customer would populate a card issuance form which
would be sent to servicing BAU , who would receive the request, debit a nominal card issuance
charge to customers account and access SOs back end support portal to log the request. SO
would then render the card and mail it to the indicated mailing address. The BAU would inform
the requesting branch about the card reissue request, SOs card request tracking number and
probable day of delivery. The branch would then notify the customer.
5. P5: Notarized T56 form process Canadian Tax Agency (CTA) is the agency which governs
tax laws for the government of Canada. For the annual tax returns filing, individuals can claim
GST tax credits if they can submit a T56 form which includes a summary of transactions, across
all saving accounts as an addendum. The T56 form is downloaded by the customer from the CTA
website, populated and submitted to retail branch. The form details account information, period of
transaction to be recorded and other relevant details. The customer signs the T56 form and
submits the form to branch teller. The teller forwards the request and documents to servicing BAU
which administers T56 form charges and retrieve the transaction history from the mainframe
system and attach the history to the T56 form and forward the documents to Mississauga BAU
which is the only BAU , authorized by CTA to notarize T56 form. The notary officer at
Mississauga BAU receives the documents and performs the notarization after validation of the
documents. The notarized form is then sent to requesting branch which informs the customer.
6. P6: Home Loan Rate Adjustments Home loan customers (Wealth Management) would
approach the bank to switch their existing mortgage plan to a different mortgage plan for a
favourable home loan condition. This process involves creation of a new contract by the bank.
The teller at the bank records the request in a form and assigns a date for the customer to revisit
the bank to sign the new contract. The teller sends the form and request details to the servicing
BAU, which creates the new contract-draft and dispatches the same via physical mail to the teller.
On the appointed day, the customer would sign the new contract-draft and submits the form to
the teller. The teller would then dispatch the form and other paper documents to WMO (Niagara
Falls Office) where an assigned WM operative would evaluate the request and either decline or
approve the request. In case of request acceptance, WMO would inform the branch through a fax
which would contain the text of final-contract. Final Contract is prepared by the branch and
customer signs the draft copies, which would then be dispatched to WMO. On receipt of the
physical copies, back end rate adjustment would be performed in the back end WM mainframe
systems and a fax would be sent to requesting branch, notifying the change. Branch would then
inform the customer.
P1
P2
P3
P4
12
P5
5
P6
BAU ONT1
1852
1010
334
834
8231
4186
BAU ONT2
1960
1176
654
1037
8191
3457
BAU ONT3
2188
1497
394
946
7809
1700
BAU QUE 1
2964
1465
481
829
9670
3322
BAU QUE 2
2035
1345
607
864
10318
2413
BAU MAN 1
1537
1317
294
980
10176
4957
BAU MAN 2
2679
1131
373
993
11158
4153
BAU SAS 1
2929
1493
678
912
11353
2986
BAU SAS 2
2454
1293
680
844
8382
4718
BAU ALB 1
1754
1086
191
856
8908
2904
BAU ALB 2
1787
1421
120
891
6295
3308
BAU BCO 1
2336
1105
726
937
6084
4307
BAU BCO 2
2323
1257
608
1049
10657
1662
BAU YUK 1
1667
1280
152
1050
8907
4067
BAU NWT 1
1878
1262
722
1002
10116
3547
BAU NWT 2
2076
1288
490
1003
8687
3874
BAU NUN 1
1866
1128
707
1009
6182
2220
BAU NAL 1
1578
1120
124
902
8036
4213
BAU NOV 1
2336
1429
493
962
6068
3175
NAU NEW 1
Table 1 - Request Frequency
1895
1159
201
963
11862
2919
14
Customer Support
Staff
2000
132
132
116
150
141
154
164
163
147
126
111
124
140
80
148
139
105
128
116
152
600
Monthly Request
influx
202352
16447
16475
14534
18731
17582
19261
20487
20351
18371
15699
13822
15495
17556
17123
18527
17418
13112
15973
14463
18999
68088
3. It is just like magic! One minute, the cash was there in the ATM machine slot, the next moment, as I reached out for
the money, the money disappeared back into the machine!! I ran to the MBC bank branch, only to find out that my
weeks savings have been debited from my account! Would wonders never cease? As I tried logging the request, the
bank retailer asked for the transaction slip related to the transaction. I had to go back to the ATM to find out the
transaction slip. They say that they need the transaction slip to find out the exact transaction so that the amount can be
identified. Why cant they identify the transaction within their systems itself, if I tell them the time and amount of
transaction? I am so annoyed that I may just hex them!
-Lord Vmort, Stage magician and illusionist, Saskatchewan (May 2010)
4. While shopping at the harbour front Toronto, I discovered to my horror that my ATM card was missing! I called MBC
support staff member who immediately blocked the card. I filled out the card issuance form for getting a new card and
they have said that I would be getting a new card next week. But I am at my wits end. I am missing out on my shopping
and I do not want to carry so much cash in my purse. I wish to know who is working for my request at this very
moment.
-Becky Brownwood, Socialite, Nova Scotia (March 2010)
5. I will sue MBC! I had applied for a notarized T56 form to claim GST tax credits from CTA. It turned out that one of
their BAU had a query about an entry in T56 form and they had faxed the branch about it, but the branch lost the fax and
forgot to inform me! So my request was stuck in a limbo! Are their no SLAs? Is there no accountability? Deadline for
CTA tax return filing is tomorrow! I will file for damages against MBC!
-Veer C, Genome Designer, Mississauga, Ontario (March 2010)
6. I am advising my customers to not use KBC as a home loan provider these days. In my experience, I have rarely
seen a bank which has such a bureaucratic process for handling mortgage plan switches. Today, when most banks are
moving to higher degree of efficiency, my customers are forced to visit the bank time and again, to either sign the
contract draft or to sign the final draft. I wonder if there is a formal process for their wealth management office to
intimate the approval or declination directly to the end customer, which would avoid delays.
- Keith Pereira, Real Estate Agent, Alberta (July 2010)
10
Servicing BAU
WMO
Branches
11
4. Conclusion
MBC has understood that in order to sustain its competitive positioning, a revamp of its existing customer
support process and organizational sourcing operations was imperative. They wished to have
standardizations in terms of sourcing processes, applications, processes, reporting and administration.
The environmental lobby also stressed on the need to eliminate paper usage and adopt environmental
friendly measures to work on these requests.
To achieve this mammoth effort, MBA realizes that significant organizational resources would have to be
committed for a structured roadmap implementation.
There is a significant need to understand the gaps in the existing sourcing strategy and to institute a new
sourcing strategy, serving all levels of the sourcing pyramid, namely Strategy Formulation, Optimizing
Operations and Sustaining Operations.
While some functions would have to be retained, some may have to be sourced differently along with new
expertise and skills.
With this goal, MBC has formed the project Orion which would aim to study the existing sourcing and
business processes and recommend ways to optimize these processes. Project Orion would also involve
implementation of a scalable solution which would help MBC, wade over these pain areas and also serve
as a platform to host other service offerings in the future.
Project Orion needs consultants to develop a roadmap and to provide other advisory services. MBC
would also require to rationalize its sourcing ecology and system integrators to implement the defined
roadmap. Being a long term engagement, Orion would also require different level of support services as
well.
12