International agency or correspondent banking (corbanking) is cross border bank to bank businesses that agent banks act on behalf of principals. Despite drastic changing banking environment, corbanking remains from doing business by mainly fee based, packaging reciprocal products and services, and so on. Corbanking is therefore identified as an alternative to serve clients worldwide in a strategic low cost way. Best practice to identify for entering corbanking relationships and selecting their correspondents are the themes of this paper, which are useful for financial institutions to make strategic and operational decisions for their expansion. Eighteen determinant factors to establish corbanking relationships and nineteen selection criteria of correspondents were identified through literature reviews, case studies, and exploratory surveys. Empirical surveys were conducted on 43 sample banks in Australia, which were further categorized in ten bank groups. Analytical methods included descriptive statistics and stepwise least square regression with case studies. The findings were: the most significant factor for financial institutions to enter correspondent banking systems was the bank size and a lower ranking factor was location not physically present, whereas there was different consensus for different bank groups about the selection criteria for agents overseas.
Kelly Sze Wee Koh, Leslie Soon-Lim Chan and Samuel K. M. Ho
In Singapore, service sectors are dominated by SMEs. This study set out to investigate customer satisfaction as a critical factor in SME survival and indeed in helping to maintain the overall health of the economy. In this study, data were collected from a Singaporean SME which supplies and installs glass for construction projects. Departments involved were Sales & Marketing, Administration, and Installation. A questionnaire survey was administered to every customer of the company in 2013 in order to evaluate the services provided by the three departments. Customers were categorized into five groups: main contractors, designers/sub-contractors, property managers, home owners and commercial owners. Data were analyzed in terms of thirteen customer service variables identified from the literature. Statistical methods were applied to data analysis and findings were arrived at. Findings were found to be sufficiently significant to permit the formulation of a Total Customer Service Excellence Model for SMEs in Singapore.