Analysis of congested clients' flows in banking systems: A case study of Standard Bank Namibia

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Date
2016
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Publisher
University of Namibia
Abstract
As competition amongst banks increases customer service becomes the only unique factor to consider staying relevant and forging ahead in business. The most frequent complaint of customers at Standard Bank Namibia is the waiting lines. The queuing model used in the analysis was M/M/s which involved a single line with multiple servers in the system.Customer arrivals were described by a poison distribution and service times by exponential distribution. Descriptive analysis was used to describe the parameters of the queuing system, a radar chart to display the aggregate results and the one way analysis of variance (ANOVA) to establish whether there were significant differences in mean volumes of customers at various banking time periods. The research observed a high turnout of customers at service consultants with the lowest at withdrawals/deposits. This suggests that the waiting line design of the Withdrawals/Deposits is inefficient and the researcher recommends that their servers be deployed to other queues. Another finding is the gap in service delivery because the perceptions of the delivered service were not as per the expectations of the customers. Consequently, the bank needs to defend and grow their position by offering the best client experience or expectation at the lowest possible cost. In addition, the ease with which clients can switch to a different bank and the impact of "word of mouth" should be realized by the bank. Increasing the number of servers, managing the arrival rate, and optimizing the service rate will reduce the time of customer queuing and consequently improve the customer satisfaction rate amongst the banks clients. As competition amongst banks increases customer service becomes the only unique factor to consider staying relevant and forging ahead in business. The most frequent complaint of customers at Standard Bank Namibia is the waiting lines. The queuing model used in the analysis was M/M/s which involved a single line with multiple servers in the system.Customer arrivals were described by a poison distribution and service times by exponential distribution. Descriptive analysis was used to describe the parameters of the queuing system, a radar chart to display the aggregate results and the one way analysis of variance (ANOV A) to establish whether there were significant differences in mean volumes of customers at various banking time periods. The research observed a high turnout of customers at service consultants with the lowest at withdrawals/deposits. This suggests that the waiting line design of the Withdrawals/Deposits is inefficient and the researcher recommends that their servers be deployed to other queues. Another finding is the gap in service delivery because the perceptions of the delivered service were not as per the expectations of the customers. Consequently, the bank needs to defend and grow their position by offering the best client experience or expectation at the lowest possible cost. In addition, the ease with which clients can switch to a different bank and the impact of "word of mouth" should be realized by the bank. Increasing the number of servers, managing the arrival rate, and optimizing the service rate will reduce the time of customer queuing and consequently improve the customer satisfaction rate amongst the banks clients.
Description
A research thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration
Keywords
Customer service, Standard Bank Namibia, Banking systems, Clients flows, University of Namibia, Namibia
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