Improving Turnaround Time of Doha Bank's SME Lending Model 2018

This project focuses on improving the turnaround time of Doha Bank's SME lending model. It begins with an introduction highlighting the importance of SMEs and Doha Bank's role in supporting them. The project identifies the problem of delayed turnaround times, leading to customer dissatisfaction and financial losses. A SWOT analysis is conducted, and the theoretical framework explores policy and procedures, employee productivity, and time management. The project's objectives include analyzing the current situation, revising policies, improving employee productivity, and optimizing time management. The study uses techniques like cause-and-effect analysis and time-motion studies to identify inefficiencies. The project proposes a new program lending model, revisions to policies and procedures, employee training, and the implementation of turnaround time targets. The discussion highlights the components of the project, recommendations, and the potential for increased efficiency and customer satisfaction. The project aims to provide effective strategies to reduce turnaround time, increase productivity, and enhance the bank's SME lending performance.

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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Acknowledgements
I extend my sincere gratitude to all who have contributed in numerous ways and supported
me in my Management Field Project to make it a reality. My Project Supervisor Dr. A.K.L
Jayawadana for his valuable guidance and support extended throughout this project. I would
also like to extend a sincere and heartfelt gracefulness to the Director PIM Professor Ajantha
Dharmasiri for endless support. My heartiest gratitude is also extended to all PIM lectures for
the advice and guidance given for successful completion of this management field project.
All faculty guides of PIM who have added invaluable knowledge and extended continuous
encouragement and guidance throughout the MBA programme. All management and
administration staff at Postgraduate Institute of Management for providing me the
opportunity to pursue this course of study.
My friends, colleagues from various banks who responded to my queries and assisted me to
complete this project successfully. Last but not least my sincere gratitude goes out to my
family for being my greatest inspiration and strength in my accomplishments and
encouraging me to pursue this MBA programme. The MBA gives me a great sense of
satisfaction and accomplishment of a lifelong ambition.
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EXECUTIVE SUMMARY
In the current era, Small and Medium Enterprises attract Banks all over the world, to a
greater extent. It is with an aim to increase the market share and revenue. Nevertheless, Doha
bank SME unit reflects a lower performance. The aim of this management field study project
is to reduce/minimise the turnaround time of Doha bank’s small and medium lending process
model. Doha bank is one of the largest private banks in the State of Qatar and has expanded
all across the Gulf and Asian region. Small and Medium unit of Doha bank deals with all
SME loan requests through a centralized operational system that covers a worldwide
network. This project has intended to conduct a deep analysis of Doha bank’s existing SME
lending model and re-introduce the Program lending model for better enhancement.
Primary study is focused on Doha bank’s SME unit perception and approach in handling
SME lending. This has revealed several numbers of inefficiencies, unit’s internal structural
weaknesses as some key concerns that has led to a depriving growth of SME’s. The SME
operational lending model fails to satisfy the standard turnaround time. As a result, bank
encounters numerous issues of customer delay, complaints, loss of potential clients who
prefers opting the services of competitors and inter related income/revenue losses.
The findings of this management Field Project study has exposed the small and medium
operational lending system of Doha bank which is to be re designed for overcoming the
identified problems, supported by effective solution. The project recommendations are
mainly with reference to introduce a Program Lending Model to Doha bank’s SME lending.
The budget or cost related issues can be overcome with the use of internal resources for
creating a new software, adding into the main system of bank. Recommendations have
evolved the need of revising the existing policy and procedures to improve employee
productivity via effective sessions of training & development. It has also depicted some vital
considerations related to the implementation of turnaround time in all related activities of
SME lending procedures to overcome the issues of time management.
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CHAPTER 1
INTRODUCTION
1.1 Background
SMEs play a critical role in innovation, advancement and sustainable development, at a
worldwide level. In today’s increasingly globalized world, the SMEs that are operating all
around the world are unprecedentedly required to compete, globally. Doha Bank was the first
bank in Qatar to understand and appreciate the importance of a critical role played by SMEs
in the development of Qatari economy. In view of this, Doha Bank became the first bank to
launch ‘Tatweer’, a dedicated SME unit in 2008.The infrastructure development taking place
in Qatar in the form of ports, roads, airports, rail, telecom, other utilities and construction
activity are in requirement of support from SME businesses. Doha Bank thus aims to make
an active participation in Qatar’s diversification story by encouraging the SME sector. In
today’s highly competitive environment, speed of delivery and excellent customer service
plays a pivotal role in the success of any Bank. Our main problem starts from such aforesaid
point itself, Doha Banks are not providing the required speed of delivery in terms of
enhancing the level of satisfaction in users. It is facing delay in the Turnaround Time of SME
Lending processing model. Such delays have resulted in losing both new and existing
customers, who are highly potential with an increasing complaint. This has in turn led to
create a negative impact on Bank’s image with loss of interest/commission income and
reduction of lending portfolio. Lastly, it has also resulted in the down fall of bank’s
profitability while lending the SME’s.
The overall project has studied and realised Bank’s financial issues and market challenges
faced by the entities working in small to medium sector. This project has aimed to provide a
new program lending model for small and medium enterprises. It has intended to identify a
new program lending model that will provide solutions to overcome the current delays in
turnaround time. Recommendations will be given to improve the turnaround time and
improvise the small and medium scale market for operating with effective work strategies
and succeed in the market.
1.2 Project
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The management field project undertakes providing recommendation to reduce or minimize
the delays in turnaround time of small and medium lending process, operated by Doha bank.
This project mainly focusses on to the reasons behind delays in Turnaround Time of SME
Lending processes. It has also studied the issues existing in other wards using bank’s SME
lending operational model. The prime objective is to establish suitable SME lending
operational model which will meet the current market requirement of speedy delivery. In
addition to this, project will also concentrate on the identification of constrains in Bank’s
policy & procedures. Necessary recommendation will be made to amend the bank policy &
procedures for meeting the current market requirements, complying with bank’s compliance
framework. Further in order to address customer’s complaint issues against SME lending
process, employee’s productivity is also needed to be reassessed. A set benchmark on the
expected standard of productivity will be created and evaluated with assistance of continuous
monitoring. Time Management or Analyzing the time GAP in SME lending process is also
one of key aspect of this project. This will help in identifying the exact steps in the formation
of a clear map to ascertain time delays in SME lending process. Such information is vital to
create a suitable SME lending operational model.
1.3 Significance of the study
The significance of this study is in terms of finding out certain effective strategies that are
required to reduce the turnaround time of lending process as a way of increasing productivity
without negatively impacting the procedural steps. Implementing new process and
technological practices are thereby expected to increase both productivity and capacity. Due
to delays in Turnaround Time of SME Lending processes, the bank has suffered huge direct
and indirect losses in terms of reputation, customer complaints, loose of potential customers,
dealt with a negative lending growth and low % of profits in SME lending. All these issues
are expected to be addressed positively, through this project. Business challenges such as
reduced turnaround time, improved productivity in terms of lending loans per person/per day,
enact changes with no negative impact on accuracy will be resolved and can be treated as an
advantage of this study. Revision of bank’s policy & procedures to match the current market
trend will resolve the issues that are being faced by the SME’s while lending funds and
remove the barriers to positively impact on SME Lending portfolio. This is expected to lead
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