The paper “ Colonial Savings Bank - Service Profit Chain” is a convincing example of the business plan on finance & accounting. The idea behind services blueprinting is fairly simple: Companies put themselves in their customers' shoes to find out what's working, what's not, and what needs to be changed. But its simplicity may belie its effectiveness. In fact blueprinting may well be the best method for measuring services success, and may also hold the key to future services innovation. This paper looks at a case study of the case of the Colonial Savings Bank and redesigns the process of a loan application, approval, and refinancing.
This was one of the areas where the bank was doing well but this has since changed. The paper seeks to redesign the process so that it is more customer-friendly, effective, and protective of Bank assets. The paper first analyses the current refinancing process explaining why the bank might have originally designed it that way. It then looks at the problems that arise as a result of the current process. Finally, the paper proposes a new service blueprint. CURRENT REFINANCING PROCESS AND JUSTIFICATIONUnder the current process, there are five distinct stages involved in the loan approval process.
Firstly there is the loan application process. Here the customer completes the loan application form for the loan agent who informs him of the refinancing options. The customer also signs papers to allow a credit check then awaits approval. The second stage is that of loan processing. The loan processor requests a credit check, verification of loans or mortgages from other financial institutions, an appraisal of the property, and employment verification.
The justification of this is that the bank has to ensure that the customer who gets the loan can pay. It also helps in ensuring that the customer has not hidden some important information from the bank. At this stage, if there are any discrepancies the customer is expected to explain the same in writing. If the explanation is acceptable the letter is placed in the customer's file and sent to the loan agent for approval. The justification for the requirement that it should be in writing is that the bank needs written proof that is kept for future reference.
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