毕博上海银行咨询Final Deliverables RMmanual

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1、Hanvit BankRelationship Management_HANVIT BANKRELATIONSHIPMANAGEMENT(Draft For Discussion Purposes)10/20/99Prepared by KPMG, LLPThis Document is Proprietary and Confidential to Hanvit Bank and KPMG, LLP. Unauthorized duplication is prohibited.TABLE OF CONTENTSOVERVIEW OF HANVIT BANK RELATIONSHIP MAN

2、AGEMENT FUNCTION4Preamble4Overview5Goals6Strategy7Organization Structure7Additional RM Related Issues10Role of RMs and existing Branches10Assignment of Product Specialists11Assignment of Administrative Support Personnel11Product Mix for Initial Marketing11Proposed Branch Structure12Implementation Pl

3、an:12Account & Personnel Assignments12Account Review & Planning Sessions13DETAILED DISCUSSION OF RM FUNCTION17Objectives of the Relationship Manager Function17Position Descriptions, Functions, Duties, Responsibilities19Relationship Manager Assignments20Chaebol & Large Group Accounts20Large Corporate

4、 Accounts20SME Accounts21Small Commercial Borrowers21Branch Office Organization of RMs21Marketing and Sales Activities22Corporate Banking & Service Sales Activities22Marketing Department and Marketing Data Support23Loan Monitoring Responsibilities of RMs24Differentiation of Job Functions across Job

5、Positions24Lending Authority of Relationship Managers24Interaction of RM with Loan Committees25Interaction of RM with Credit Review Officers (CROs)26Comparison of Job Functions27Examples of RM / CRO / Committee Interaction28RM Performance Measurement29RM Compensation29Team” Plan30Large Corporate Acc

6、ount Plan30SME Account Plan30Distressed Account Plan31Mixed Account Plan31New Business Territory Plan31RM Training Requirements32Commercial Credit Analysis Training for RMs32Using CRMS Modules in Relationship Management34RM Relationship to Regional Loan Centers and Hub & Spoke System35Relationship M

7、anager Assistance For Non-Commercial Branch Offices35IMPLEMENTATION OF RM FUNCTION37Account Assignments Priority37Assignment Activities37Initial RM Activities At Hanvit Bank38Task List for first weeks of RM Implementation38Account Review & Planning Session38Identification of Candidates for RM Assign

8、ments39Long Term Assignment of RMs40Assignment of Product Specialists and Other Client Personnel40Account & Territory Penetration41RELATIONSHIP MANAGER POSITION - POLICIES & PROCEDURES43Position Description43Qualifications of Relationship Manager Personnel43Account Management43APPENDICES45APPENDIX 1

9、 - RELATIONSHIP MANAGER COMMERCIAL LOAN WORKFLOWS45Overlimit Loans46Underlimit Loans46APPENDIX 2 - ADDITIONAL CONSIDERATIONS FOR RM AT HANVIT BANK48APPENDIX 3 - SPECIAL CONSIDERATIONS RELATING TO COMPENSATION SYSTEMS49APPENDIX 4 - COMMERCIAL LOAN MARKETING52APPENDIX 5 - COMMERCIAL LOAN POLICY54APPEN

10、DIX 6 - COMMERCIAL LOAN CREDIT ORGANIZATION56Unification of Business Analyst & Credit Review Officer Functions56APPENDIX 7 - SUMMARY OF SELECTED STAFF POSITIONS61Business Analysts61Credit Review Officers61Branch Loan Officers61Relationship Managers62APPENDIX 8 - COMMERCIAL LOAN APPROVAL LIMITS63APPE

11、NDIX 9 - TOTAL EXPOSURE MANAGEMENT SYSTEM64APPENDIX 10 - GAINING ACCEPTANCE OF RM FUNCTION AT HANVIT BANK65Executive Sponsorship Role65Develop Portrait of Desired Behaviors66Human Resources Issues68Adopt Shared Values and Guiding Principles to Support Change69APPENDIX 11 - COMMUNICATIONS RELATED TO

12、IMPLEMENTATION OF RM FUNCTION71Communication with Branch Managers72Communication to the Customers72APPENDIX 12 - RM MIGRATION PLAN73APPENDIX 13 - RECOGNITION FOR ASSISTANCE IN IMPLEMENTING RM FUNCTION77APPENDIX 14 - DISCUSSION OF RM COMPENSATION ALTERNATIVES79APPENDIX 15 - COMPARISON OF RELATIONSHIP

13、 SELLING AND TRADITIONAL SELLING82APPENDIX 16 - SAMPLE POSITION DESCRIPTION FOR RM83APPENDIX 17 - TRAINING & DEVELOPMENT86APPENDIX 18 - DEFINITION OF AGGREGATE LIMITS88APPENDIX 19 - ANSWERS TO SPECIFIC QUESTIONS89PMM Team Questions89Answers to Additional Questions94OVERVIEW OF HANVIT BANK RELATIONSH

14、IP MANAGEMENT FUNCTIONPreambleRelationship Management is a type of selling in which the sale stems, as much from client interactions built on trust, as it does from the benefits of the product or service. The ability to work with the client and to be able to present the banks products and services r

15、esults from the genuine belief by the client, that the relationship with the bank and its representatives is built on a bond of honesty and integrity. This bond is usually established long before the sales presentations begin.As its name implies, relationship management requires expertly applying ma

16、ny of the same skills in a business relationship that are applied in personal relationships. These skills include: building rapport with others, discovering areas of need where the bank representatives can be of help, listening attentively and extensively before offering solutions, honestly answerin

17、g questions and concerns, and gaining commitment from the client to continue and grow the relationship.Customer Relationship Management Objectives should include the long term care of customer relationships by assuring customer satisfaction, monitoring loans for compliance with terms & conditions &

18、identifying new requirements for products and services to better serve Hanvit Bank customers. Specifically RMs should: Provide exceptional and continuous customer service, Monitor customer performance on loan payments, terms & conditions, Communicate with loan administration & work closely with Cred

19、it Review Officers, Identify & follow up on opportunities for new or repeat business, Translate customer comments, concerns, & problems into requirements for new or revised products & services, Generate leads for sale of additional bank products and communicate these in a timely fashion to appropria

20、te product specialists, Identify & establish relationships with key executives for possible private banking opportunities.This document addresses various aspects of the Relationship Manager function as it can be implemented at Hanvit Bank.OverviewThe Relationship Manager (RM) Formerly the Branch Off

21、ice Manager (BOM) would handle commercial loan requests. position is being implemented to combine “sales and marketing” activities with ongoing commercial lending activities as a total product and service offering for corporate accounts. Unlike current sales personnel, the RM person will be rewarded

22、 for credit quality and the success of the total account relationship, as well as product sales. This will include the volume and quality of commercial loans, the volume of net revenue from sales of other bank products and services, and overall customer satisfaction.A recent survey of Hanvit Bank cu

23、stomers determined that the single biggest complaint was the time it takes to get approval on a commercial loan. Accordingly, in conjunction with the introduction of the RM function, the commercial loan approval process is being re-designed so it can be completed in as few steps as possible. This sh

24、ould avoid delays resulting from document movement and re-evaluation of work done by other personnel.A key factor in accomplishing this re-design is to streamline the current practice of credit analysis and review. This can be accomplished by having one person, the Credit Review Officer (CRO), compl

25、ete all financial analysis and credit review tasks currently done by a combination of the Business Analyst (BA) and the Credit Review Officer. This re-organization is aimed at eliminating delays in credit evaluation and is not intended to displace any staff. Further, it is anticipated that the total

26、 volume of work will likely remain the same. Only the mix of the work will change as the Business Analysts will refocus on company and industry analysis primarily for the benefit of the investment and trust departments. Credit Review Officers will become the source of commercial loan credit analysis

27、 and will form a close working relationship with the RMs whose accounts they review.The current structure of loan committees (Junior Credit Officers, Senior Credit Officers and Loan Committee) should be continued for the present time. In future these committees should be reorganized for efficiency a

28、nd objectivity. In future, a two committee structure should be evaluated to further simplify commercial loan decision approval. This may be done in conjunction with increases to RM lending authority when (as anticipated) overall bank loan quality improves and RMs become more adept at accurate loan r

29、equest evaluation. Increases to RM loan authority and the possibility of adopting a “two-plus” signature system, should be reviewed at a later date when credit quality improvements may permit the relaxation of current stringent credit controls. Likewise the organization of approval committees in the

30、 regions should be reviewed with the aim of speeding up the loan approval process while maintaining credit quality. It is also recommended for the purpose of checks and balances, that the credit officers who prepare a credit write-up for committee review should not be permitted to vote on the decisi

31、on related to that credit. Expected benefits of the RM program include primarily increased revenue and improved loan quality. This will be accomplished through: More complete product placement within an account, Higher revenue per account from cross selling related products, Faster, more accurate kn

32、owledge of situations which could result in credit loss to the bank, Higher cooperation from the client in times of trouble, A strong working relationship with the corporate account.Obstacles to be anticipated include inability to find, train and deploy sufficient numbers of qualified RMs in the nea

33、r term. Position requirements and training programs are described later in this document. Additionally, new business RM positions could easily be filled by top sales personnel with the understanding that no individual lending authority will be given until training and performance evaluation determin

34、es that such authority is appropriate.Additionally, some objections may be raised by personnel who feel that their positions are being undermined. To avoid the latter, a solid executive sponsorship communication should be made to all employees and supported with appropriate customer communications.

35、Further, qualified personnel should be given the opportunity to assume or train for new positions. Those that remain in current positions in which present lending authority may be reduced should be rewarded in some manner for showing visible support for the overall RM function implementation.GoalsTh

36、e primary goals of the RM function are to help Hanvit Bank improve revenue, profits and loan quality in order to build a strong bank for the future. Thus the Relationship Manager will become the key interface between the bank and its corporate clients. Using relationship management, the Bank can cou

37、nteract recent trend affecting the commercial banking industry including: declining profitability, lack of revenue growth, increased competition, and the need to maximize investment in commercial banking services.Key to the success of the RMs will be their ability to build solid business relationshi

38、ps with their clients. This relationship must be based on trust and a firm belief by the client in the honesty and integrity of the RM and other bank personnel. In a recent survey, KPMG identified three elements that together form the core of relationship management: Customer segmentation. Leading f

39、irms have a deep understanding of customer needs. These firms understand their strengths and seek to match those with their most potentially profitable customers. These customers command the lions share of the firms marketing efforts and resources. Organizational structure. Leading firms organize th

40、eir resources to deliver the right solution to the right customer at the right time. Market leaders successfully overcome turf issues and facilitate continual communication among product specialists and relationship manager to better serve the customer. Information structure and IT systems. In this

41、global economy, where one corporation can be buying dozens of discrete services from an institution, no single relationship manager can stay on top of monitoring and executing against all customer needs. In the middle market, relationship managers face the challenge of managing an increasing number

42、of customers. Institutions must rely on comprehensive and integrated information systems to provide a more holistic view of customers as well as linking that knowledge to the relationship manager.Winning RM organizations maximize capabilities in each of the three core elements identified above to al

43、low wholesale banks to successfully target and serve their best customers.While this document focuses on the RM position, it is essential that support staff including loan administration, credit review officers and product specialists perform their jobs and interact with the RMs in a concerted effor

44、t to provide the highest possible customer service to Hanvit Bank clients.StrategyThe RM will be the primary bank-to-client focal point for commercial lending and corporate banking relationships. Specifically the RM will: Build a strong business/personal relationship with the clients in the RMs assi

45、gned territory, Maximize product placements in all the RMs accounts, Maximum revenue to the bank, Maximize loan quality, Minimize loan and credit losses. KPMG staffing, implementation and support operations recommendations for the RM function implementation contemplated by Hanvit Bank are addressed

46、in this paper. Specifically these include Deployment of the Relationship Manager (RM) position, and Combination of all commercial credit review functions under the Credit Review Officer Implementation of appropriate lending authorities, and Support of the RM with Product Specialists.Additionally, so

47、me discussion of compensation systems is also presented.Organization StructureThe decision on how to fully deploy relationship managers and the disposition of current Branch Office Managers should be made in relation to the staffing reorganization. KPMGs recommendation is that the Branch Office Mana

48、gers of Commercial Branches should be re-designated to indicate their commercial account focus. The exact title should tie in with the Relationship Manager organization and reflect the total corporate account focus of the RM program.Caution should be taken in naming and developing the new organizati

49、on. It should not be just a renaming of position titles with business as usual. If Branch Managers and their sales people are renamed but no significant change in work focus and tasks is accomplished, the RM project could fail to meet expectations. To this end, it may be necessary to move some branc

50、h managers to new branches or duties.In future, consideration should be given to eliminating or restricting the practice of moving RM Executive Managers (managers of large commercial offices) from branch to branch every two years. Regulatory requirements permitting. For the RM process to succeed, st

51、rong “relationships” must be built which may take considerable time to mature. The full payback of a solid RM relationship with the account may only be experienced after months or in difficult cases, years.RMs can, from time to time, be rotated through other bank departments Rotations should be for

52、very limited periods of not longer than 1-2 weeks based on territory requirements. Rotation could allow “soon-to-be” RMs to experience territory coverage while temporarily covering an account territory for the assigned RM who may be on a two week rotation in Loan Review or other department. to refre

53、sh needed skills for commercial loan origination, approval or monitoring. The RM should not, however, be rotated with the Credit Review Officer or other personnel on a permanent basis. It cannot be under emphasized that the focus of the RM function is to develop business relationships which will wit

54、hstand the test of difficult times for the client (or the bank).The Relationship Manager should replace the present Branch Manager as the primary commercial lender and commercial account representative. Relationship managers will report to Commercial Branch Managers (e.g., Executive RMs) aligned wit

55、h the LC or SME business unit.Current Branch Managers (commercial or retail), sales persons or other officers, who have solid commercial lending experience should be offered positions as RMs. Retail Branch Managers who move to commercial positions can be replaced with qualified staff.NOTE: This move

56、ment should be widely communicated as a benefit of the introduction of the RM function. Career enhancement should be communicated a significant benefit to Hanvit Bank employees. This movement of people to new positions, (e.g., movement to Retail Branch Managers position, assumption of major commerci

57、al account responsibilities, etc.), should be highlighted to show that implementation of the RM function is a benefit to employees careers, rather than a detriment.“COORDINATOR”PPPPRMCustomerIt is recommended that the initial model for Hanvit Bank RM deployment should be the “Coordinator” model. Thi

58、s will allow the RM to concentrate on commercial lending functions while Product Specialists (“P”) augment the RMs efforts with their own product marketing efforts. These products would include all products which corporations and top executives would require for their business or private banking nee

59、ds.The “Coordinator” model has the following Benefits and Considerations: Benefits- RM coordinates total marketing effort among RM and product specialists- Product experts deal direct with clients to market services as efficiently and responsively as possible- Client has direct access to product exp

60、erts, facilitating sales of sophisticated transactions- Multiple contact points creates additional opportunities for sales Considerations- This model requires coordination of RM & Product Specialists to properly execute relationship strategy- This coordination requires high degree of internal commun

61、ications between the RM and Product Specialists. To the extent that e-mail is available it should be deployed to all personnel and possibly for client contact. Where appropriate, e-mail to and from the client is suggested as a way of facilitating client communication.- Caution must be taken to avoid

62、 diluted relationship responsibility.KPMG believes that top management should take steps to assure the breakdown of product or former bank structure silos. The goal is to foster a culture of teamwork in respect of client relationships. To this end the bank should: Establish incentives and performanc

63、e goals, in which the activities of the RM, Product Specialists, CROs and loan administration staff are aligned with a focus on client relationship management. Assure cost effective technology support Significant caution is recommended in developing and deploying technology support. Current bank systems which have proved to be inadequate should not be patched up with the hope of creating a better information system. Such processes usually result in poorly designed systems, difficult and costly to maintain, and generally not as beneficial as expected. The functions provided by the