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Bo A - assignment
Strategic management (6112)
Addis Ababa University
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Background
The Bank of Abyssinia (BoA) was open for business in 1996 with enthused initiation and determination.
The name Abyssinia resembles bravery and character which is the core attributes of BoA. Motto of the bank is‘’ The Choice for All”.
Vision :- To become the leading commercial bank in East Africa by the year 2030
Mission :- Provide excellent financial services through competent, motivated employees and digital technology in order to maximize value to all stakeholders.
Values:-
Customer Satisfaction Team work and Collaboration Integrity Caring for our community
Strategic plan of the bank
The bank has three strategic plan which was set for 5 years 2020-2025 which has three main objectives
1. Growth 2. Operational Excellence 3. Digitalization
These three strategies are designed to obtain three results
1. Sustainable profit 2. Customer satisfaction to the fullest 3. Convenience banking service
To successfully implement these projects, the bank has instituted project Management Office (PMO). This PMO is responsible for the centralized and coordinated management of the IT Projects. PM Offices pass through a number of maturity stages before attaining excellence. PMO represents the extent to which it is capable of generating value for its customers and for the bank as a whole. To this end, the road to PMO begins with establishing the capability to create value for clients and for the whole bank; this is followed by implementing and enforcing those practices across all branches of the bank
Corporate Social Responsibility
As one of our core values, the Bank of Abyssinia promotes corporate social responsibility. It believes the well-being and improved living conditions of our community will benefit us all. As such, BoA participates in various national projects and other social and economic initiatives. These include the construction of the Ethiopian Grand Renaissance Dam, the establishment of the Ethiopian Cardiac Center, Ethiopia Rotary Club, and the establishment of Ethiopian Women Traders’ Associations.
Current status of the bank
Through its over 600 branches in the country, BoA serves over 3 million customers with 6, employees. BoA’s well-structured financial service system is connected through the T-24 core banking system. This coupled with the 633 ATM machines placed in different locations to afford customers to access their account from anywhere at any time. This also allowed BoA to increase its capital hundred- fold from ETB50 million to ETB 5 billion.
Currently, employing the state-of-art banking technology, the Bank provides excellence domestic, international and special banking services to its esteemed and valuable customers. It also strives to serve all economic and services sectors via its ever increasing branch networks throughout the country
Uniqueness
Bank of Abyssinia provides a specialized Interest-Free Banking service with a brand name of “Ameen” with unique product features and benefits. The product and services provided by BoA fulfill the need of our esteemed customers and fully in compliance with the Shari'a principles
Strength/Advantage over other Banks
Starting of T-24 technology, started POS and Mobile banking
Challenges
In order to survive in the market and to take a competitive advantage over other competitive banks implementing technological oriented products and services is inevitable and being late adopter of electronic payment projects made the bank to learn from the existed experience of banks who adopted these products earlier. Yet, being late adopter made the bank to lose the potential market available at the first phase of entry
Opportunities
The first bank currently serving with Virtual banking system in Ethiopia
Plenty of available potential unbanked customers which made a reasonable
opportunity for implementing electronic payment technologies.
Since its establishment, guided with clear vision, mission and values, BOA has made great progresses in business growth and development. Consequently upon this, as of June 30, 2018 the following have been registered.
Asset Authorized and paid up capital of BoA as at 30 June 2018 is Birr 4 billion and Birr 2 billion, respectively, a total deposit balance of Birr 25 Billion and a total loans and advances of Birr 17. 99 billion, which in effect enhance the risk absorbing and the lending capacity of the Bank.
Customers BOA has more than 5,825 staffs and 1,012,177 account holders and works with known money transfer agents such as Western Union, Express Money, Ria International, Trans fast , Dahabshiil, MoneyGram,kaah and Ezremit.
ICT Following a strong demand for better service and products from all directions on the one hand, and a ground-breaking development in ICT, on the other, BOA has replaced its in –house IT system with the state-of- the art technology called T24 and started ATM and POS services with Habesha card and mobile banking services. BoA also provides Internet banking services while Agent banking service will be readily available within the near future. Shareholders BOA has 2,176 shareholders who are successful businessmen, intellectuals, celebrities, etc.
Branch Networks Bank of Abyssina, which started banking services with only one branch in 1996, has 331 domestic branch networks, of which 152 branches are in Addis Ababa and the remaining 179 are established in bankable towns all over the country. Most branches work 10 hours a day 6 days a week (starting from 08:00 up to 06:00 PM), while some other work up to 07:00 PM in the evening. All City and Outlying branches are interconnected with state-of-the art ICT. All branches offer both domestic and international banking services.
Bank of Abyssinia still strives to identify bankable area every year and serve valuable customers by expanding its branch networks throughout the country.
In this respect there are more branches on the pipe line to be opened in Addis Ababa and in the regional states this fiscal year.
The major common domestic and international banking products and services that are provided to a wide range of customers of the Bank (private, public, cooperative, International Organizations, UN Agencies and NGOs, etc) include the following;
Domestic Banking Services
Accepting all type of deposit with attractive interest rate. Providing term loans overdraft service and advance facilities to all sector of the economy. Issuing domestic letter of guarantees, bonds and etc. Rendering Local money transfer services(Telegraphic/Mail transfer Blocking, and Normal/Special clearance) Issuing payment instrument (cash payment order, demand draft, certified cheques, etc) International Banking Services
Import letter of credit Export letter of credit Cash Against Documents (CAD) or IBC Issuing and Accepting foreign letter of guarantees and bonds Foreign Money transfer service: from BOA via foreign draft to foreign banks and from foreign banks to BOA via swift Foreign exchange services: buying and selling foreign currency notes, foreign cheques and traveler cheques. Renders Remittance service of Western Union, Express Money, Ria International,Trans Fast and Dahabshil. Bank of Abyssinia has also first developed and provides the following peculiar services to its esteemed customers.
Special Savings Account – it is an interest earning saving accounts operated by check.
Bo A - assignment
Course: Strategic management (6112)
University: Addis Ababa University
