IntroductionThe concepts of Service blue printing and service chain profit can be employed in describing how organizations conduct their services. The process of refinancing in retail banking can be critically analyzed by service blue printing concept. The process of refinancing need to be conducted well or else it can result into several problems. In this paper the service blue printing concept is used to analyze the refinancing process in colonial savings bank in Queensland. Service blue printing concept together with service chain is then used to redesign the refinancing process in colonial savings bank (Frauendorf, 2006).
Analysis of current refinancing process in retail bankingIn colonial savings bank of Queensland the process of refinancing is divided into five distinct stages. The bank created departments for these stages. The distinct stages include loan application, loan closing, new account establishment and loan payment setup. The process of refinancing can be analyzed well by use of service blue print concept. Service blueprint provides a systematic method to visualize, to structure and design service transaction processes (Mahadevan, 2010). The process of refinancing therefore can be illustrated in a flow-chart mode.
Refinancing processes in colonial saving are divided by five lines, which are line of interaction, line of visibility, line of interaction, line of order penetration and line of implementation. These lines separate six different activities which are customer activities, on stage activities, back stage activities, support activities, preparation activities and facility activities. The line of interaction divides activities of the customer from the onstage activities of colonial savings bank. Customer activities include the steps, options, actions and interactions that a customer experiences when applying for a loan (Hoffman, & Bateson, 2010).
The application of loan in colonial bank by customers is considered as customer activity. The onstage activities are done by contact employee and are visible to customers. The contact employee in colonial saving bank is a loan agent. A loan agent discusses the option for refinancing with customers. He or she performs quick calculations basing on customer-reported data to find out if the customer qualifiers for loan approval. At this level the loan agent assist customers to know if they qualify for a loan and also to give them guidance on how to service their loans (Hollins & Shinkins, 2006).
According to Hollins and Shinkins (2006), the line of visibility separate activities contact employee, that is, the client interface, into onstage and backstage activities. At this level, the differentiation is based on who is undertaking the activity in question instead of variation according to value creation’s level. Backstage activities are the steps and activities that are undertaken by contact worker and occur beyond the customer’s perception. This implies that they are not visible to customers.
In colonial bank, loan processing services are not visible to customers. Therefore, activities such as credit checking, loans or mortgages verification from other financial institutions, property appraisal and employment verification are considered as backstage activities. These activities are not usually visible to customers. In case a loan processor wants more clarification concerning customer’s details, he or she cannot contact the client directly. A loan processor can go to a loan agent for advice if there are any problems being encountered. In case the items appearing on the credit report does not appear on customer’s application, or if other agencies have demanded credit reported, then the customer will be expected to respond to these discrepancies through writing.
The activities therefore that take place at this level are invisible to customers even though it concerns him or her.