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Introducing  the    

Interna/onal  Academy  of  Retail  Banking  

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The   Academy   has   been   founded   with   the  o b j e c / v e   o f   c o n t r i b u / n g   t o   t h e  professionalisa/on   and   development     of  consumer-­‐oriented  retail  banking.      IARB   is   the   only   educa/onal   and   professional  body   in   the   world   dedicated   exclusively   to  offering  post-­‐graduate  professional  educa/on  in  the  retail  banking  field.  

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IARB  Mission  and  Philosophy  

Purpose:  to  improve  peoples’  lives  by  making          retail  banking  more  professional  and        customer  oriented  

 Objec/ve:    to  play  a  leading  role  in  the  development  of    

   retail  banking  as  a  profession    Philosophy:      not  only  professional  knowledge  and  skills  but  

   also  principles  and  values  behind  ethical  retail      banking  

   -­‐  Code  of  Ethics  and  Professional  Conduct    -­‐  theory  and  very  prac=cal  applica=on  in  the        ins=tu=on  

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Michael

Lafferty

Founder and Co-chairman

Dr Abdul Rahman

Academic

Director

Evelyn Hunter-Jordan

Executive Director

Dick  Harryvan    

Former  CEO  ING  Direct  

&  Co-­‐chairman  

Our  Leaders  

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Imagine  a  world  where…    § Retail  bankers  are  trusted  professionals,  like  accountants  and  lawyers  

§ Retail  bankers  are  dedicated  to  doing  what  is  best  for  the  client  

§ Where  retail  bankers  abide  by  a  strict  code  of  ethics  and  professional  conduct  

Retail  banking  is  already  the  main  source  of  bank  profits  in  most  countries.  Now  is  the  =me  to  professionalise  and  gain  customer  trust.  

Retail  Banking  Should  be  a  Profession  

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At  least  a  bachelor’s  degree  or  equivalent    professional  work  experience  is  required  for  entry  onto  the  programme  

IARB  Educa/on  Path  

Chartered Banker Institute accreditation expected in October 2013

Certified International Retail Banker (CIRB)

IARB  Curriculum  

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Level Fundamental Objective Retail Banking I Focuses on the theoretical

and practical core competencies that are required for success in a retail banking organisation

Retail Banking II Focuses on the issues that are encountered when leading people and departments

Retail Banking III Focuses on developing and enhancing the capabilities required to run retail strategic business units for best results

Examina/on  Structure  

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Examination for… Part A of Exam (Two-hour duration)

Part B of Exam (Two-hour duration)

Retail Banking I 80 MCQs Six (6) scenarios/mini-cases each having eight (8) MCQs

Retail Banking II 80 MCQs Six (6) scenarios/mini-cases each having eight (8) MCQs

Retail Banking III 60 MCQs Four (4) essay questions based on cases and scenarios in retail banking

The final grade is calculated based on an equal weighting of the scores obtained in each part of the examination

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Unique  Benefits  of  the  IARB  Programme  

Develop  retail  banking  professionals  with  the  skills  to:  

§ Understand  customer  psychology  and  build  enduring  and  profitable  rela=onships  with  customers  

§ Mo=vate  and  engage  staff  –  which  is  cri=cal  to  exceeding  customer  expecta=ons  

§ Deliver  excellent  service  that  will  delight  the  customer  

§ Analyse  product  profitability  in  order  to  focus  on  op=mal  value  crea=on  

§ Understand  and  manage  the  bank’s  risks  

§ Gain  an  understanding  of  key  value  drivers,  KPIs  and  financial  reports  

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Improve  performance  significantly  through:   §  More  consistently  achieving  customer-­‐oriented  service  

excellence  

§  Understanding  what  makes  a  difference  and  what  is  profitable  for  the  bank  

§  Common  knowledge  base  leading  to  improved  communica=on  and  faster  learning  

§  Ability  to  make  results  visible  and  comparable  across  the  bank.    

Unique  Benefits  of  the  IARB  Programme  

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Unique  Benefits  of  the  IARB  Programme  

Provides  the  tools  to  improve  employee  engagement:    § Employee  engagement  is  highly  correlated  with  the  bank’s  profit  growth   § Engaged  employees  are  more  customer-­‐focused  and  a  customer  focus  is  essen=al  for  the  crea=on  of  valuable  customer  rela=onships  and  profit  for  the  bank  

§ High  employee  engagement  fosters  a  winning  performance  culture  with  objec=ve  and  fair  evalua=ons  of  staff  performance  and  credible  evalua=on  of  candidates  for  promo=on.    

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Measure  your  Return  on  Investment    

The  IARB  provides  a  sound  knowledge  base  and  tools  to  improve    results  significantly  

In  our  experience:  §  An  op=mised  and  focused  product  porPolio  can  improve  boQom  line  results  

by  15-­‐30  percent    §  Branch  management  tools  provided  can  increase  retail  banking  profitability  

by  10-­‐20  percent  

§  Companies  with  highly  engaged  employees  achieve  approximately  14  percent  higher  growth  in  net  profit  compared  with  companies  with  low  employee  engagement  scores  

§  Improving  staff  engagement  will  greatly  benefit  the  customer  experience,  lower  aQri=on  by  up  to  four  percent  per  year  and  benefit  brand  percep=on    

 

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Our  Approach    

The  Academy  works  with  a  client  bank  to:    § Align  the  programme  to  the  bank’s  objec=ves    

§ Iden=fy  the  most  appropriate  level  of  the  curriculum  for  the  target  group  

§ Coordinate  with  and  complement  exis=ng  training  ini=a=ves  to  avoid  duplica=on    

§ Establish  the  best  blend  of  classroom  learning  and/or  e-­‐learning  

§ Strive  for  execu=on  efficiency  within  chosen  blend  of  learning  

§ Provide  feedback  mechanism  on  results        

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APPENDIX  

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§  Designed  by  industry  prac==oners  to  develop  a  holis=c  understanding  of  how  a  retail  bank  func=ons  within  a  strategic  framework  

§  Func=onal  and  line  management  –  such  as  branch  managers,  finance,  HR  and  IT  managers  –  will  gain  an  excellent  understanding  of  how  the  bank  as  a  whole  operates  and  can  be  op=mised  

§  Senior  execu=ves  will  grasp  strategic  industry  principles  and  interna=onal  best  prac=ces    

§  The  prac=cal  approach  provides  tools  that  allow  for  real  improvement  at  an  opera=onal  level  and  achievement  of  profitable  growth  

IARB  Curriculum  

Retail  Banking  I  

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Module 101 Ethics

Module 102 Retail Banking

Overview

Module 103 Products

Module 104 Channels

Module 105 Marketing

Module 106 Effective Sales

Management

Module 107 Customer

Service Quality

Module 108 Operations I

Module 109 Credit Loss Management

Module 110 Relationship Management

Retail  Banking  II  

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Module 201 Brand

Management

Module 202 Direct Marketing

Module 203 Product Portfolio

Management

Module 204 People

Management

Module 205 Customer Care

Module 206 Performance Management

Module 207 Operations II

Module 208 Balance Sheet Management

Module 209 Risk

Management

Module 210 Financial

Management

Retail  Banking  III  

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Module 301 Leadership in Retail

Banking

Module 302 Business Strategies

for Retail Banking

Module 303 Achieving Profitable

Growth

Module 304 Governance and

Ethics

Module 305 Operational

Leadership in Retail Banking

Module 306 Risk and Capital

Management

Find  the  right  level  of  the  curriculum  

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We  recommend  the  following  minimum  levels  of  competency  that  should  be  achieved  in  accordance  with  an  employee’s  role  and  responsibility  in  the  bank:    Retail  Banking  I:  Ø   Graduates  entering  the  bank  Ø   First  line  Managers    Retail  Banking  II:  Ø   Middle  Management,  Line  Managers  Ø   Branch  Managers  Ø   Managers  of  Func/ons  –  Opera/ons,  Sales,  Products,  Risk,  Finance,  HR,  

 IT    Retail  Banking  III  Ø   Senior  Managers  –  SVPs  and  VPs  Ø   Heads  of  Business  

Assessment  Criteria  Based  on    Learning  Outcomes  

Bloom’s  taxonomy  of    Knowledge,  Comprehension  and  Applica/on  (Cri/cal  Thinking)

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Examination for… Knowledge & Comprehension

Application (Critical Thinking)

Retail Banking I 75% 25%

Retail Banking II 50% 50%

Retail Banking III 25% 75%