Small and Medium Enterprise Section at Doha Bank

IMPROVING TURNAROUND TIME OF DOHA
BANK’S SME LENDING MODEL
2018

IMPROVING TURNAROUND TIME OF DOHA BANK’S SME
LENDING MODEL
IMPROVING TURNAROUND TIME OF DOHA BANK’S SME
LENDING MODEL

TABLE OF CONTENTS
List of Tables.............................................................................................................................7
List of Figures ...........................................................................................................................7
List of Abbreviations.................................................................................................................8
Chapter 1..................................................................................................................................11
INTRODUCTION...................................................................................................................11
1.1Background ....................................................................................................................11
1.2Project..............................................................................................................................11
1.3Significance of the study.................................................................................................12
1.4Methodology ..................................................................................................................12
1.5Limitation........................................................................................................................13
1.6Chapter Framework.........................................................................................................13
Chapter 2..................................................................................................................................14
PROBLEM IDENTIFICATION..............................................................................................14
2.1 Introduction....................................................................................................................14
2.2 Organization Profile.......................................................................................................14
2.2.1 Small and Medium Enterprise (SME) Section at Doha Bank.....................................16
2.3 Organizational Analysis: SME Section at Doha Bank...................................................16
2.3.1 SWOT Analysis: SME Lending at Doha Bank.......................................................16
2.4 Problem Identification....................................................................................................19
2.5 Problem Description.......................................................................................................20
2.6 Summary .......................................................................................................................24
Chapter 3..................................................................................................................................25
THEORETICAL FRAMEWORK FOR DIAGNOSIS............................................................25
3.1 Introduction....................................................................................................................25
3.2 Theoretical background to the problem.........................................................................25
3.2.1 Policy and Procedures ............................................................................................28
3.2.2 Employee Productivity ...........................................................................................29
3.2.3 Time Management ..................................................................................................30
3.3 Framework of the study..................................................................................................31
3.4 Description of the Techniques........................................................................................31
3.4.1. Cause and Effect analysis.......................................................................................31
3.4.2. Time and motion study ..........................................................................................32
3.5 Summary........................................................................................................................32
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Chapter 4..................................................................................................................................33
THE PROJECT........................................................................................................................33
4.1 Introduction....................................................................................................................33
4.2 Project Objectives..........................................................................................................33
4.2.1 The Prime Objective................................................................................................33
4.3 The Project; Project Components...................................................................................34
Source: Author .................................................................................................................34
4.3.1 Component 1: Current situation analysis ..............................................................34
4.3.1.1 Cause and effects analysis....................................................................................36
4.3.1.2 Kipling’s Method..................................................................................................36
4.3.2 Project component 2: Policy and Procedures.........................................................37
4.3.3 Project component 3: Employee productivity ........................................................42
4.3.4 Project component 4 : Time Management...............................................................43
4.4 Resource Allocation.......................................................................................................44
4.5 Cost Estimates and Cost Benefits ..................................................................................46
4.6 Project output and outcomes..........................................................................................47
4.7 Project plan.....................................................................................................................48
4.8 Summary........................................................................................................................49
Chapter 5..................................................................................................................................50
DISCUSSION OF IDENTIFIED COMPONENTS................................................................50
5.1 Introduction....................................................................................................................50
5.2 Discussion .....................................................................................................................50
5.2.1 Current Situation Analysis.......................................................................................51
5.2.2 Policy & Procedures................................................................................................52
5.2.3 Employee Productivity............................................................................................52
5.2.4 Time Management...................................................................................................53
5.3 Recommendations..........................................................................................................53
5.3.1 Introduction of new Program Lending - Automated Lending processes ................53
5.3.2 Periodical update of policy and procedures.............................................................53
5.3.3 Training and Development of SME employees......................................................54
5.3.4 Turnaround Time implementation for processes ....................................................54
References ...............................................................................................................................55
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List of Tables
Table 2.1: Doha Bank’s Financial Highlights.................................... 6
Table 2.2: Doha Bank’s Ratio Highlights.......................................... 6
Table 2.3: SWOT Analysis: SME Lending at Doha Bank...................... 8
Table 2.4: Problem Identification Diagram....................................... 11
Table 2.5: Average Turnaround Time Delays.................................... 12
Table 2.6: Existing Loans and Customers........................................ 13
Table 2.7: New Projects and Customers........................................... 13
Table 2.8: Income Statements....................................................... 13
Table 2.9: Application Processing................................................. 14
Table 2.10: Numbers of Complaints................................................. 14
Table 2.11: SME Complaints Details................................................ 15
Table 2.12: SME complaints and Impacts............................................ 15
Table 4.1: Project Components and Techniques.................................. 15
Table 4.2: Current situation analysis tools........................................ 26
Table 4.3: Kipling’s Method......................................................... 26
Table 4.4: 5 Why...................................................................... 30
Table 4.5: Loan process - workflow Chart........................................ 31
Table 4.6: Policy and Procedure Amendments.................................. 32
Table 4.7: SME program lending model........................................... 34
Table 4.8: Turnaround Time vs Loan Process stages........................... 36
Table 4.9: Time and motion study Loan process workflow..................... 36
Table 4.10: Resource allocation of project.......................................... 38
Table 4.11: Cost Estimates............................................................ 39
Table 4.12: Cost Benefits............................................................. 40
Table 4.13: Project output /outcomes................................................ 40
Table 4.14: Project Time Planners................................................... 42
Table 5.1: The 5W +1H............................................................ 48
Figure 3.1 Study Framework......................................................... 23
Figure 4.1 Ishikawa diagram.............................................................. 28
Figure 4.2 Project Team Structure................................................. 38
List of Figures
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List of Abbreviations
SME Small and Medium Enterprise
GCC Gulf Cooperation Council
ATM Automated Teller Machine
UAE United Arab Emirates
CSR Corporate Social Responsibility
DB Doha Bank
IT Information Technology
RM Relationship Manager
HR Human Resources
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