RMBI 4110: Financial Service Operations Management
Fall 2011
Instructor: NG Shu Ming, email address: imsmng@ust.hk , Extension: 7725
TA: Ho Edmond, email address: imhcf@ust.hk ,
HTU
HTU
UTH
UTH
Venue: Room 4503
Time: 13:30 – 14:50 PM; Tue, Thur
Course Description:
Financial activities are the most important economic activity in any modern economy.
This course introduces the products and processes in the financial industries (banking,
insurance, brokerage, mutual fund management, operational risks). It analyzes the design
and the operations of the different distribution channels (branch, ATM, call center, internet,
etc) as well as their productivity and performance measurements, and the issues of quality
control and operational risk. It concludes with the discussion on the automation of
financial services and operations, the design and implementation of decision support
systems, and the trends of financial services and operations. (mobile banking,
globalization, etc)
Learning Objectives:
After completion of the course, students will be able to:
1. Explain the business processes and product delivery channels of financial
institutions (FI).
2. Explain and identify the appropriate performance measurements for the business
processes of FIs.
3. Compare and evaluate the performances of the business processes for continuous
improvement of the FIs
4. Compare and evaluate the performances of the business processes with respect to
some of the benchmarking regulations (like Basel II).
5. Design and critique business processes for improving the productivity and service
quality of the FIs.
6. Integrate and evaluate the different business processes in the organization to
create competitive advantages for the FIs.
Teaching and learning process
The main teaching and learning processes are lectures, case presentations and discussions
during class meeting time.
Term Projects: Students will also need to finish a project for the course in the area of
wealth management in the greater China region; or in the area of mobile banking.
The grading policy
In-class participation, including case presentation and discussion: 20%; Homework: 10%;
Project (team) report: 20%; Final Examination: 50%
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Reference Books: There is no existing textbook for this course. We will use cases and
articles for this course
1. (MNPS) Creating Value in Financial Services: Strategies, Operations and
Technologies, edited by Edward L. Melnick, Praveen R. Nayyar, Michael L.
Pinedo and Sridhar Seshadri, Kluwer Academic Publishers, 2000. ISBN 0-79238572-1
2. (Pinedo) Operational Control in Asset Management: Processes and Costs, edited
by Michael L. Pinedo, 2010. Publisher: SimCorp StrategyLab. ISBN 978-87993151-1-6
Course schedule
Financial process and product delivery, channels and techonology
Week 1: Introduction of the course, arrangement, Project proposal preparation (team
project) and Introduction to Banking process, performance and productivity
Week 2: Introduction to Banking process, performance and productivity.
Week 3: Introduction to banking process, products and performance
Project stage I - proposal presentation Identify the area of research/Study – Each team
prepares 4 minutes of presentation, and another 4 minutes of Q&A. (2 – 4, PowerPoint
slides)
Week 4: Banking
Case presentation and discussion:
1. Pilgrim Bank (A): Customer Profitability, Harvard Business School Publishing,
Case No. 9-602-104
2. Pilgrim Bank (B): Customer Retention, Harvard Business School Publishing,
Case No. 9-602-095; and
3. Pilgrim Bank (C): Electronic Billpay, Harvard Business School Publishing, Case
No. 9-602-103
(Case preparation hint: Do not use more than 12 slides in your PPT file. Spend more
time in discussion within your team on the case)
Week 5: Banking
Case presentation and discussion: Commerce Bank, Harvard Business School Publishing,
Case No. 9-603-080, Rev Oct. 3, 2006
Week 6: Banking and risk management
1. Innovation at Progressive (A): Pay-As-You-Go Insurance, Harvard Business
School Publishing, Case No. 9-602-175, Rev. Apr. 29,2004
2. Innovation at Progressive (B): HomeOwners Insurance, Harvard Business School
Publishing, Case No. 9-602-138, Rev. Apr. 29,2004
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Week 7: Banking operations improvement
Case presentation and discussion: Case: Amagansett Fund, A, B, C, D Harvard Business
School Publishing, Case No. 9-606-005, 9-606-006, 9-606-007, 9-606-008
Project stage II: Turn in a draft of 2 – 3 pages by each team. (See project schedules)
Improving financial process efficiency and performance measures:
Week 8: Improving service processes and measurements
Case presentation and discussion: Manzana Insurance: Fruitvale Branch (Abridged),
Harvard Business School Publishing, Case No. 9-692-015
Week 9: Improving service processes and measurements
Case discussion: Lean Service Machines, Harvard Business Review, October 2003;
Reprint No. R0310J
Week 10: Improving service processes and measurements
Case discussion: TD Canada Trust (A): The Green and the Red, Harvard Business School,
Case No. 9-108-005, Oct. 31, 2008
Project Stage III: Turn in a draft of 5 – 6 pages (1.5 spacing).
Week 11: Improving service process and measurements
Case discussion:
TD Canada Trust (B): Linking the Service Model to the P&L; Harvard Business School,
Case No. 9-108-043, Oct. 31, 2008
TD Canada Trust (C): Translating the Service Model to Service Operations; Harvard
Business School, Case No. 9-108-055, Oct. 31, 2008
Week 12: Outsourcing financial service processes
Case Discussion: Gammon Skanska: A Corporate Purchasing Solution that speeds
purchasing, increases efficiency and controls expenses: MasterCard and Bank of China
(HK)
Week 13: Outsourcing financial service processes
Project Stage IV: Presentation and Final Reports
Week 14: Project Presentation
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