Waseela Insight 5th Edition
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This article discusses strategy and alignment. It defines strategy as either doing what competitors are doing but more efficiently, or doing something unique that others cannot replicate. The third option is expanding the market by targeting new customers. As an example, it discusses the untapped potential for branchless and mobile banking in Pakistan given only 12% have access to formal financial services while tele-density is 77%. To realize this potential requires a strategic plan aligned around financial inclusion through mobile platforms.
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Waseela Insight 5th Edition
- 1. WaseelaJuly, 2015 Volume 3 Issue 1 S t r a t e g y 1 0 1 : Its all about Alignment F i n d o u t w h a t m a k e s a g o o d s t r a t e g y . P a g e , 1 1 Legal & Compliance: Intellectual Property Rights Page, 17 Risk Management: A Day in the Life of a Verification Officer Page, 14 Branchless Banking: Corporate Solutions Page, 15 and more . . .
- 2. Features Details Product Name Waseela Microenterprise Loan Loan for micro entrepreneurs (Individual) Product Description Is offered to individual who have ownership of a running business for at least two years in the following economic sectors like trade, production, manufacturing, services, agriculture and livestock. Loan Eligibility Criteria Household annual income less than Rs. 500,000/- Age between 25-58 years (1st loan cycle) 25-60 years (2nd and 3rd loan cycle). Business experience of minimum of 2 Years. Holding valid CNIC. Not defaulter of any financial institutions & Public Utilities. Household annual income (net of business expenses) is less than Rs. 500,000/- or limit as revised from time to time under regulations. Having the same business location for 1 year and residing in the launching city for 1-2 years. *Loan Ticket PKR- 100,000/- to 500,000/- Lead Time Same Day *Loan Insurance Free Loan Insurance in Case of Death / Permanent Disability *Early settlement Allowed NEW Products Waseela Microenterprise Loan * Terms and conditions apply.
- 3. Contents Editor: Samiha Ali Zahid Features & Design Editor: Adnan Reshi For feedback and suggestions: info@waseelabank.com Together We Grow, pg, 3 A mid year statistical review of WMBL. Building Teams, pg, 6 Find out how to make winning teams. Exclusive Interview, pg, 5 with Ghazanfar Siddique Chief Technology Officer. Business Banking Updates, pg, 8 Learn about our clients and our relationship officers. Cover Story, pg, 11 Find out more about Waseela strategy and business plans. Corporate Solutions, pg, 15 Latest developments on Branchless Banking. A Day in the Life of a VO, pg, 14 Find out the crucial role a verification officer plays in WMBL. Picture Gallery pg, 18 All the latest highlights of the year. Intellectual Property, pg, 17 The types of intellectual properties and the differences between them.
- 4. Pg. 3Waseela Insight Description Dec-14 Jun-15 Net Increase / Decrease Percentage Change Deposits Rs. 874.125 (M) Rs. 1080.744 (M) Rs. 206.619 (M) 23.60% No. of depositors 21,069 30,970 9,901 46.99% Receivables Rs. 500.574 (M) Rs. 710.291 (M) Rs. 209.717 (M) 41.90% Avg. loan size Rs. 43,856 Rs. 46,800 Rs. 2,944 6.71% Active clients 11,414 15,406 3,992 35% NPL Nil Nil Nil Nil Write off Nil Nil Nil Nil PAR Nil Nil Nil Nil Branch Banking Highlights 874.125 1080.744 0 200 400 600 800 1000 1200 InMillions Deposits Dec 2014 Jun 2015 500.574 710.291 0 100 200 300 400 500 600 700 800 InMillions Receivables Dec 2014 Jun 2015 21,069 30,970 0 5000 10000 15000 20000 25000 30000 35000 No. of Depositors Dec 2014 Jun 2015 11,414 15,406 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 Active Borrowers Dec 2014 Jun 2015
- 5. Pg. 4Waseela Insight Branchless Banking Highlights Transaction Type No. of Transactions Volume (Millions) Account-to-Account Fund transfers 243,368 378.77 Person-to-Person Fund Transfers (Sent) 6,634,002 30,711.97 Person-to-Person Fund Transfers (Received) 6,680,649 30,864.21 Person-to-Account Fund Transfers 2,363 12.20 Account-to-Person Fund Transfers 60,671 196.77 Cash-in (Deposit) 1,008,171 3,759.45 Cash-out (Withdrawal) 392,242 2,773.36 Utility Bills Payments 5,994,288 9,952.79 Mobile Top-ups 1,879,073 199.50 IBFT Outgoing 63,233 733.87 IBFT Incoming 610 4.18 Total Corporate Disbursements 41,298 340.72 Total Corporate Collections 211,987 352.21 50,075 55,256 47000 48000 49000 50000 51000 52000 53000 54000 55000 56000 Agents Dec 2014 Jun 2015 196,325 1,154,013 0 200000 400000 600000 800000 1000000 1200000 1400000 Level 0 Customers Dec 2014 Jun 2015 5,088 40,784 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 Level 1 Customers Dec 2014 Jun 2015 16 45 0 5 10 15 20 25 30 35 40 45 50 Corporate Clients Dec 2014 Jun 2015 * * *Jan June, 2015
- 6. Q. What is the biggest technological challenge you face as CTO of Waseela? As a Waseela Bank CTO I am dealing with many challenges as the organizations needs increase, one particular technological challenge raises to the top: Dealing with the complexity of data. The massive explosion in data is creating unprecedented manageability issues for banks around the world that can be linked to the following factors; rapid growth of mobile users, customer engagement platforms, real-time data processing & rising data security concerns. Pg. 5Waseela Insight Q. How do you propose over coming this challenge? Implementing effective data access and management standards coupled with a nimble infrastructure architected around new delivery models such as cloud computing and using emerging technologies like Hadoop to leverage the power of unstructured data will be critical components in the arsenal of bank CTOs. With such imperatives in place, banks will be able to shift their focus from dealing with the complexity of data analysis, governance and distribution, to actually harnessing the data and using it to their advantage. Q. How do you balance short term commercial with long term strategic development of the company. Well projection from our business sides is required to offer any technology enabled services, knowing that we will have a hundred transactions today and thousands tomorrow is key in our strategic IT development. I like to use something called agile working. We break up projects into smaller bits instead of procuring whole solutions. This gives us room to adapt to our changing needs. I also use some thing called the 10% rule; leaving a buffer in my projections to address urgent and unforeseen needs so when the time comes I have no problem adapting. Q. What 2-3 key attributes do you feel some one aspiring to a career in IT should have? Technology has a one to one relation with the employees, for this it is important to brand your self as a technologist, be the go-to guy for any IT related solution. Learn to say yes, never say you cant come up with a solution, think out side the box to get things done. Understand that you need to have a strong line relation, build trust with your colleagues by saying yes, even when you want to say no. Finally understand and speak in business terms, dont be all techie with your audience, give them the answers they want to hear, this solution will make their life easier. Interview: Ghazanfar Siddique Chief Technology Officer Waseela Bank
- 7. Pg. 6Waseela Insight Building Teams By Zahir Ahmed Mobin Team building is a significant tool that enables an organizations management and its team members to break the barriers, build trust amongst themselves, help improve working capacity and facilitates better communication. Here are a few practical tips to help build great teams: Emphasize practical support. Effective team building increases the trust factor among employees and increases self esteem among its team members. We demonstrated this in our own department, Central Finance and Accounts, when an associate single handedly managed to take care of the payables section (involving verification of documents, payments and issuing of cheques) for two months while the position of his direct supervisor remained vacant. Create open communication channels. A good team synergy helps build a positive working environment that encourages candidness and is open to feedback. This gives the employees motivation which results in boosting team morale, improves confidence, increases reliability on team, thus creating a harmonious atmosphere. Excursion trips help break the monotony and strengthen team bonds. Establish values not rules. Emphasizing on rules can create reluctance in team members. In a dynamic corporate environment this can break teams. It is important to provide your team with principles and values to rely on, which are flexible but maintain the essence of your vision. Dos Have a goal Team oriented activities Reflect and discuss Donts Force participation Focus on individuals Only fun *Ben Dattner, Harvard Business Review * BBQ @ Harnoi Daytrip @ Galiat
- 8. Features Details Product Name Waseela Karobar Loan Loan for Individuals Product Description Waseela Karobar Loan is an Individual Loan with acceptable personal guarantee. The loan may be utilized to expand micro- enterprises / small businesses (to meet working capital requirements or purchase of assets). Loan Eligibility Criteria Household annual income less than Rs. 500,000/- Age between 25-58 years (1st loan cycle) 25-60 years (2nd and 3rd loan cycle). Business experience of minimum of 2 Years. Holding valid CNIC. Not defaulter of any financial institutions & Public Utilities. Household annual income (net of business expenses) is less than Rs. 500,000/- or limit as revised from time to time under regulations. Residing or working in launching cities for at least 2 years. *Loan Ticket PKR- 20,000/- to 60,000/- Lead Time 3-5 Days *Loan Insurance Free Loan Insurance in Case of Death / Permanent Disability *Early settlement Allowed NEW Products Waseela Karobar Loan * Terms and conditions apply.
- 9. Pg. 8Waseela Insight By Usman & Nasir Business Banking Updates Asset Sales Incentive Relationship officers are the bread and butter of our organization. They are at the front line bringing in revenue for Waseela and play an important role in developing relations with our clients. With our recently launched incentive scheme, all ROs with a portfolio of Rs. 8 Million and above are eligible for up to 1% of loan amount. Our top performing ROs of the year are: Imran Ali Mardan Shoaib Ahmed Jhang Tahir Raza Khan Bhakkar Rs. 59,512 Rs. 30,615 Rs. 19,809 Incentive Amount Poverty alleviation is a very important part of Waseelas vision. We dont just provide our clients with loans, we aspire them to achieve their dreams. One such client; Muzamil Khan from Mohra Noor, in the suburbs of Islamabad made around Rs. 23,000/- a month by providing dairy products to the nearby locals with just one cattle. Over the course of two years and several Khushhal Kisan Loan (unsecured) cycles, he is now making Rs. 40,000/- a month with more than 3 cattle. With this ease provided to him by Waseela and with the exceptional service of our RO, Muzamil now encourages others from his village to approach Waseela. Client Story
- 10. Pg. 9Waseela Insight By Usman & Nasir Business Banking Updates Deposit mobilization is an integral part of any bank. Waseela offers lucrative incentive to all employees who bring in deposits as per the following: Liability Sales Incentive Waseela Bachat A/C: 0.3% of average monthly balance. Waseela Sahulat Current A/C: 3% of average monthly balance. Waseela Mahana Munafa Term Deposit: Up to 0.2% of average monthly balance. Waseela Mustakbil Munafa Term Deposit: Up to 0.2% of average monthly balance. All employees have the opportunity to augment their income by mobilizing deposits and thus earn handsome incentive in return. Following are the top contributors for liability sales incentives since January 2015: Kamran Adeel, CFO & Company Secretary Rs. 66,631/- Moshin Raza, Branch Manager, Jhang Rs. 124,506/- Lutuf ullah Siyal, Teller, Dherki Rs. 111,702/- Muahmmad Ali, Operations Manager, Faislabad Rs. 94,722/- Ghulam Nazik Relationship Officer, Lodhran Rs. 53,702/- Shahzad Hussain, Relationship Manager, Khanpur Rs. 21,370/- Shahzad Iftikhar, Verification Officer, Liaqatpur Rs. 24,317/-
- 11. BancaTakaful Promo Win Prizes Through Takaful Sale! 26-May, 2015 till 26-July, 2015 1st 3rd2nd Minimum Sales Prizes Slots PKR 350,000 Samsung LED TV, 24 1 PKR 250,000 Samsung Galaxy Star 1 PKR 105,000 Samsung Galaxy Star 2 1 Terms & Conditions 1. Promo duration: 26th May till 26th July, 2015. 2. Only BankaTakaful (Pak Qatar) contribution will be considered in this promo. 3. Referees will qualify from sales generated by a single branch. 4. Cancelled and surrendered cases will not be included in the promo targets. 5. Prizes will be distributed in Aug/Sep 2015 after incorporating 14 days free look period. 6. Staff who are contributed will be provided an appreciation certificate. For additional details regarding our new Banca Takaful products please visit our website: www.waseelabank.com
- 12. Pg. 11Waseela Insight S t r a t e g y 1 0 1 : Its all about Alignment by Adnan Reshi Defining Strategy. Since the pivotal work of Michael Porter, we are quite close to defining what strategy means for organizations. The two broad views, Resource Based and Position Based are predominant in literature and practicality. It all boils down to Do what everyone else is doing (but spend less money doing it), or do something no one else can do. Both these options have the potential to be equally successful, but you can also take a third route by trying to expand the pie through targeting a completely different type of customer. 77% 12% Tele-density 2014 Formal Financial Services Take the example of Branchless Banking in Pakistan. According to the Access to Finance Study (A2FS) only 12% of the population has access to formal financial services. Whereas of the remaining 88%, only 32% are informally served and 56% are completely excluded. On the other hand, according to the report by Pakistan Telecommunication Authority, the country's tele-density touched as high as 80% with mobile penetration sitting at 76.6% with 139.9 million subscribers (as of June 2014). Now it might not take much to figure out the huge potential of financial inclusion by providing financial services through mobile banking, it takes a genius to come up with a strong strategic position to ensure capturing as much of this infant market as possible. The existing branch network of the banking system is insufficient to serve the millions of unbanked masses *PTA Annual Report 2014 **Governor of State Bank of Pakistan, 2014 * **
- 13. Pg. 12Waseela Insight Business Plan vs. Strategy A strategic plan is the end game, its where you want to be when the dust settles. A business plan on the other hand is a static snap shot of the future, providing tactical material on how to move forward. Its like a game of chess, the potential moves the pieces can make are your tactics, where as the checkmate position is your strategy. Brief Overview What is Strategy? Business Plan vs. Strategy Our Strategy Our Business Plan Be more cost effective then your competition or do something no one else is doing. Strategy is where you want to be, a business plan is how to get there. Our business targets are just small steps in achieving our long term goals & vision for the company There are so many aspects to strategy that go unnoticed because we might confuse it with our business plan. Beyond the business level there is a parent company which has to align the strategy across several individual business units. This is called corporate strategy and involves answering one key question: What business should we be in? Telecommunications, banking, construction, manufacturing or all of the above. VimpelCom has ventured into financial services in Pakistan and taken on new exposure. Financial services will play a pivotal role in VimpelComs corporate strategy Our Business Plan There are several types of business plans, you might have predominantly heard about a couple of them; the start-up, growth, feasibility & operational business plan. A start-up plan details the basic steps for setting up a business. Growth plans cover in- depth, milestones and targets. They also highlight expansion requirements such as human resource, capital and infrastructure. An operational plan focus on the day to day operations and how to increase efficiency. According to Leeds School of Business, a feasibility plan on the other hand addresses the target market of the product and services. It focuses on realigning resources to ensure a healthy bottom line by achieving operational self sufficiency. Growth Plan: Expansion & Investment Feasibility Plan: Realignment & Efficiency Financial Inclusion Poverty alleviation Innovative ADCs
- 14. Pg. 13Waseela Insight So what have been the various business plans we have been following at Waseela? You might have been working towards your individual, team or departmental goals but they were all designed to fit in a bigger well thought out yearly plan. What is important is understanding that business plans are short term. They change from year to year but overall the direction remains in achieving our strategic objectives. But the question arises what are our strategic objectives? What are we trying to achieve in the long term? Our Strategy Who better to explain what Waseelas strategy entails then Ghazanfar Azzam, President & CEO, WMBL. Lets hear what he has to say regarding our strategy: At Waseela our long term strategy is designed to play a leading role in promoting and achieving financial inclusion in Pakistan by bringing in millions of unbanked people into the formal financial services system. Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat. Our mobile or branchless banking channel is already serving around 15 million customers every month and making their lives easier in making small money transfers and conveniently paying their utility bills. Going forward our ambition is to bring all of these and more customers in the mobile wallet net and thereby increase number of savers in the country manifold. Another area where our long term strategies are focused are playing a more active and leading role in Government to Person (G2P) & Business to Person (B2P) services. Payments of wages, pensions and transfers to poor people through Benazir Income Support (BISP) and other similar programs promote poverty alleviation and improve access to finance. We are also making an important contribution in small enterprise financing and rural agricultural finance. In a nutshell, Waseela is following a well- designed multi-pronged strategy to promote financial inclusion, alleviate poverty and help in job creation through innovative and technology enabled products and services to our target markets. Waseela Business Plans 2013 2014 2015 2012 Start-up Plan Growth Plan Operational Plan Feasibility Plan
- 15. Pg. 14Waseela Insight A Day in the life of a Verification Officer By Amna Rubab Loan File Review To check the correctness and compliance of data provided in Loan Application Form. Field Visits Cross verifies the loan applicants provided information independently, through interview of applicant and other sources to check the credit worthiness of the applicant. Processing The VO initially approves the files and sends it to Head Office for further processing. He then corresponds with the Risk Management Department till the approvals are received. Did you know? Over 10-15% of loans per month are turned down by VOs to ensure our portfolio quality. Verification Officers (VO) play a crucial role in Waseela. All loans brought in by our Relationship Officers are carefully reviewed and approved by the VO before any sort of disbursement can take place. He is the custodian of our loan portfolio quality and the reason why we are able to maintain 0% Portfolio at risk to date. Lets see what his day to day job entails. Daily Travelling A VO travels approx. 70-100 km daily for verification purpose to check the correctness and compliance of data provided in the Loan Application Form. Daily Verification A VO does 4-6 verifications per day, which includes physical verification of borrower, guarantor, residential and market areas even in the harshness of the beating sun, rough winters and tough rains. He performs his duty efficiently without considering physical challenges as a hurdle.
- 16. Pg. 15Waseela Insight SolutionsBy Branchless Banking Corporate In this era of mobilization and revolution generally in every field and particularly in the financial sector MobiCash presents solutions for public and private sector organizations to meet their financial requirement. Here are some of the services provided by MobiCash: Loan Repayments MobiCash with its largest agent network brings yet another unique solution where customers of various microfinance banks and institutions can now pay their monthly loan installments easily through 54,000+ MobiCash outlets, bank branches and Mobilink business centers even through their mobile accounts. Currently we are serving Khushhali Bank Ltd. and DAMEN Support Program while many other companies are in the pipe line. Khushhali Bank LTD. DAMEN Support Program Village Development Organization Village Welfare Society Orangi Charitable Trust Al Mehran Rural Development Collections Collections has played a significant role in the progression of our revenue and a huge number of transactions have been witnessed since 2014. Keeping in view the actual demands and business advancement, MobiCash has introduced internet bill payments, donations collections, fee collection, ticketing and online payments. This allows customers to make their payments with convenience and ease through mobile accounts or via MobiCash agent network.
- 17. Pg. 16Waseela Insight SolutionsBy Branchless Banking Corporate Disbursements In order to meet various financial requirements of our clients we are offering disbursement solutions on CNICs, Mobile Accounts, MobiCash ATM Card and Biometric Verification System. Customized monetary solutions are provided to Corporate Clients to efficiently manage secure social disbursements processes. Some of our clients are: Efficient, convenient and advanced processes of salary disbursements fulfilling the needs of our growing customer base through Mobile Accounts or Cards. Some of our clients include: Our recent projects and their disbursements are: FDMA: PKR 1.4 Billion to 52,000 people (on-going project) PBM: PKR 500+ Million to 70,000 people via Biometric Verification System (on-going project) PDMA: PKR 550 Million to 21,000 families MobiCash has introduced various government payment mechanisms and have replaced old methods of by-post delivery or desk payments at government banks. Funds are being disbursed on CNICs and MobiCash ATM Cards, which can be withdrawn from any ATM, POS Devices, MobiCash franchise and from any Waseela bank branch without the hassle of waiting in lines. Chip Training & Consulting Firdous Fazal Welfare Society Idara e Talim o Aaghai ZIMS Security Muree Brewery Model Securities Bahum Associates Pri & Co Saya Weaving Community World Service Asia Habib Qatar International Exchange Pakistan Acted
- 18. Intellectual Property Rights By Aslam Minhas Intellectual property refers to creations of the mind: inventions; literary and artistic works; and symbols, names and images used in commerce. Intellectual property is divided into two categories: First is Industrial Property which includes patents for inventions, trademarks, industrial designs and geographical indications Second category is Copyright which covers literary works (such as novels, poems and plays) films, music, artistic works (e.g. drawings, paintings, photographs and sculptures) and architectural design. Intellectual property rights are like any other property right. They allow creators, or owners, of patents, trademarks or copyrighted works to benefit from their own work. These rights are outlined in Article 27 of the Universal Declaration of Human rights. World Intellectual Property Organization (WIPO) is the international body which administers various treaties on the protection of intellectual property. Why to promote and protect intellectual property? It encourages us to create and invent new works in the areas of technology and culture. The legal protection of new creations encourages the commitment of additional resources for further innovation. The promotion and protection of intellectual property spurs economic growth, creates new jobs and industries, and enhances the quality and enjoyment of life. Some examples; the multibillion dollar film, recording, publishing and software industries which bring pleasure to millions of people worldwide would not exist without copyright protection. Patent A patent is an exclusive right granted for an invention, product or process that provides a new way of doing something, or that offers a new technical solution to a problem. Trademark A trademark is a distinctive sign that identifies certain goods or services produced or provided by an individual or a company and their specific characteristics and quality Industrial Design Industrial design refers to the ornamental or aesthetic aspects of an article. A design may consist of three-dimensional features, such as the shape or surface of an article, or two dimensional features, such as patterns, lines or color. Industrial designs are applied to wide variety of industrial products like watches, jewelry and other luxury items Pg. 17Waseela Insight One of Swatchs many patents 2013 Swatch Logo 2014 *"SWATCH" and other trademarks, logos, characters and other marks are subject to the trademark and other rights of Swatch.
- 19. Picture Gallery Team Fighters Win Waseela Cricket Tournament during Passion month Waseela Quiz Competition Passionate Scholars Bank Ops team win Waseela Futsal Mania Counter Strike Gaming Competition during Innovation month Drive for Passion Waseela Employees Visit Customers during Integrity month (Peshawar) Purple Day at Waseela Head Office
- 20. Picture Gallery Scavenger Hunt on Trail 5 Movie Night Fast & Furious 7 Management Team at Business Banking Conference 2015 Waseela Idol Singing Competition Waseela Gos Green Plantation Drive Business Banking Conference 2015 at PC Muzaffarabad