Balanced scorecard performance. The People's Bank is a bank based in the country of Nawkrei. It has a total of 65 branches across the country and also offers online banking (access to services via computer) and telephone banking (access to customer service agents ower the telephone) to its customers. Recently, The People's Bank also began offering its customers a range of mobile banking services, which can be accessed from customers' smartphones and tablet computers. Its customer base is made up of both private individuals and business customers. The range of services it offers includes:
- current accounts;
- savings accounts;
- credit cards;
- business and personal loans;
- mortgages (loans for property purchases).
The People's Bank's vision is to be 'the bank that gives back to its customers' and their purpose is 'too help the people and businesses of Nawkrei to live better lives and achieve their ambitions'. In order to achieve this, the bank's values are stated as:
1 Putting customer's need first, which irvolves anticipating and understanding customers' needs and making products and services accessible to as many customers as possible. The People's Bank has recently invested heavily in IT security to prevent fraud and also invested to make more services accessible to disabled and visually impaired customers.
2 Making business simple, which involves identifying opportunities to simplify activities and communicating clearly and openly.
3 Making a difference to the communities they serve, which involves primarily helping the disadvantaged and new homeowners but also supporting small and medium-sized businesses (SMEs) and acting fairly and responsibly at all times
Extracts from The People's Bank's balanced scorecard are shown below:
TABLE CAN'T COPY.
Required:
(a) Explain why the balanced scorecard approach to performance measurement is more useful to measure performance for The People's Bank than a traditional approach using solely financial performance measures.
(4 marks)
(b) Using all the information provided, including The People's Bank's vision and values, discuss the performance of The People's Bank in 20X6.
Note: use each of the four headings of the balanced scorecard to structure your discussion