Digital world and Banks/ Meezan Bank

Introduction:

 

The objective of writing this paper is to present a comprehensive, authentic strategy for Meezan Bank's digital transformation. This study will evaluate the organization's current situation and recommend changes that are necessary to keep the organization competitive in a market where technology has a large influence everywhere. According to the bank's official website, Meezan Bank is the largest and first Islamic bank in Pakistan with a paid up capital of 17.89 billion. Its extensive network spans 159 cities in Pakistan and has more than 890 branches in different places. Furthermore, it has a 35% market share hold in the country's Islamic banking industry. (Meezan Bank 2023)

Task 1: Change Analysis and Opportunities in Meezan Bank:

 

a)      The Fast Growth in BankiThe fast growth of technology has resulted in substantial changes in the banking sector. As a CIO of Meezan Bank in my opinion bank needs to embrace digital transformation if it wants to stay competitive. The following primary areas of concentration are suggested by this report. Meezan Bank must undergo a digital transformation if it wants to compete in today's tech driven industry. Meezan Bank can effectively traverse the difficulties and exploit the possibilities brought on by digital disruption by adopting digital infrastructure, improving customer experience, utilizing data analytics and AI, and developing an innovation culture. ( The Impact of Technological Advancement on the Banking Sector)

 

Account Plans

Account Plans	Benefits	Year of starting
Meezan Current Account	Convenient and secure transactions	2002
Meezan Savings Account	Competitive profit rates	2002
Meezan Islamic Credit Card	Shariah-compliant financing	2003
Meezan Car Ijarah	Affordable car financing	2004
Meezan Personal Financing	Flexible repayment options	2005
Meezan Home Financing	Shariah-compliant home financing	2006
Meezan Saadiq Account	Exclusive banking privileges	2007
Meezan Tijarah Card	Convenient shopping and payments	2008
Meezan Easy Sahulat	Convenient bill payment and top-up services		2009
Meezan Roshan Digital Account Meezan Roshan Resident Account Meezan PaySa Meezan Smart Branchless Banking Meezan Digital Platforms	Accessible banking for overseas Pakistanis A special account for resident Pakistanis with declared assets abroad, as per latest tax returns A digital payment solution suite of products that aim to bank the unbanked segments of the society, such as Smart Wallet A set of platforms that provide customers with online access to various banking products and services		2020 2021 2022 2022   2022

 

To meet its customers' financial needs, Meezan Bank provides a variety of Shariah-compliant products and services, including personal banking, business banking, agricultural finance, asset management, Islamic consulting services, and home remittance. Bank accounts, term deposits, consumer loans, debit cards, online banking, and mobile banking are a few of its main offerings. The bank furthermore provides corporate band services. Such project financing, cash flow management, syndicated financing, and trade finance. Meezan Bank engages in Islamic banking, which is prohibited by interest based transactions and is based on Islamic Shariah principles. (Overview of Products and Services Offered by Meezan Bank)

b) Improving Customer Experience in Meezan Bank : 

  

 

Meezan Bank is well aware of the growing significance of using technology to provide answers for both customers' problems and the bank's internal operations. Meezan Bank will be able to ingest and analyses data in real time from a variety of sources, including social media and mobile, as a result of the implementation of this data analytics project. This will allow Meezan Bank to learn more about its customers' purchasing patterns in the past and make better data-driven decisions.

 

c) Competitor Analysis in Meezan Bank: 

 

The rising importance of employing technology to address both client issues and internal bank operations is something that Meezan Bank is well aware of. As a consequence of the deployment of this data analytics project, Meezan Bank will be able to ingest and analyses data in real time from a range of sources, including social media and mobile. Meezan Bank will be able to get more insight into the historical buying habits of its clients and make better data-driven decisions as a result.

 

 Task 2 : Digital Business Agility Meezan Bank

Meezan Bank invests in technology and innovation in an effort to attain digital business agility.  (Meezan Bank, 2021) To develop data-driven client experiences and discover consumer behavioral insights, the bank has teamed with IBM Analytics. The bank has also introduced the Meezan Roshan Digital Business Account, which enables non-resident legal organisations to digitally register a bank account in Pakistan and make cross-border payments without requiring prior authorization. Additionally, the bank has worked on three significant digital initiatives this year that are related to data analytics, middleware and switching infrastructure, and digital platforms.

·        For Financial Stability and Economic Growth of Meezan Bank:

 

Meezan Bank maintained its top spot in the Islamic banking sector and had outstanding profits for the year 2021, which helped the company achieve financial stability and economic progress. After taxes, the bank recorded a profit of Rs. 28.4 billion, a 28% rise from the previous year. Meezan Bank increased its network to 902 branches throughout 290 locations. The bank also maintains a substantial network of 964 ATMs around the nation, and both the Apple Store and the Google Play Store frequently rate its mobile banking app as Pakistan's top mobile banking app.

 

Digital Business Agility:

 

It is defined by the Global Centre for Digital Business Transformation (DBT Centre), a joint initiative of IMD and Cisco, is the ability to sense and respond to digital threats and opportunities by rapidly innovating products, services, and processes using digital technologies and business models. The DBT Centre has created a model that highlights three DBA capabilities: hyperawareness, educated decision making, and quick execution. Each competency is backed up by two digital accelerators that help organizations improve their agility.

The Bank is now focusing on the following strategies:

 

 

Hyperawareness:

 

This capability involves continuously monitoring the external and internal environment for signals of change, such as customer preferences, competitor moves, market trends, and technological innovations. To achieve this, bank Meezan can use digital accelerators such as big data analytics and social listening. For example, bank Meezan can collect and analyses of data from various sources, such as transactions, customer feedback, social media, web analytics, etc., to gain insights into customer behavior, needs, and satisfaction. Bank Meezan can also use social listening tools to track online conversations about its brand, products, services, competitors, and industry, and identify emerging opportunities and threats.  (Alan Brener · 2020 )

 

Informed decision making:

 

This capability involves making data-driven decisions that balance speed and quality, and align with the strategic goals of the organization. To achieve this, bank meezan can use digital accelerators such as artificial intelligence (AI) and collaboration platforms. For example, bank meezan can use AI to automate routine tasks, optimize processes, personalize offerings, and enhance customer service. Bank meezan can also use collaboration platforms to facilitate communication, coordination, and knowledge sharing among employees, teams, partners, and customers across different locations and devices. (Retail Banker International 2020)

 

Fast execution:

 

This capability involves rapidly implementing decisions and delivering value to customers through agile and flexible processes. To achieve this, bank meezan can use digital accelerators such as cloud computing and DevOps. For example, bank Meezan can use cloud computing to access scalable and secure IT resources on demand, reduce costs and risks, and increase efficiency and innovation. Bank Meezan can also use DevOps to integrate development and operations teams, automate testing and deployment, and accelerate the delivery of high-quality software products and services. By leveraging these digital technologies and business models, bank Meezan can enhance its DBA and gain a competitive edge in the digital age.

Implementing artificial intelligence

Machine learning technologies to improve efficiency and decision making .Investing in cloud computing to improve scalability, availability and reduce costs. (Business-of-data.2022) continuously monitoring and assessing emerging technologies to identify new opportunities for innovation and growth . Implementing an enterprise-wide digital transformation initiative to improve customer experience and drive business growth.

 

 

 

 

Task 3: Creating a Digital Ready Culture in Banking

 

Adopting the common values and behaviors that characterize how work is done in the digital era is necessary for developing a digitally ready culture in banking. It entails enabling staff members and company executives to innovate and question the status quo while also coordinating them with the organization's customer-centric vision and strategy.

 

Implementation Plan in Meezan Bank:

 

1. Prioritize Changes:

 

 Identify high-impact initiatives and prioritize their implementation based on feasibility, cost benefit analysis, and alignment with the bank's strategic objectives.

2. Phased Implementation:

 Develop a phased implementation plan to ensure smooth integration and minimize disruptions to on-going operations. Assign responsibilities, allocate resources, and set realistic timelines for each phase.

3. Change Management:

 Create a change management framework to communicate the digital transformation vision, engage employees, and address concerns. Provide training and support to employers during the transition.

4. Monitoring and Evaluation:

 

Establish key performance indicators (KPIs) to measure the success of digital transformation initiatives. Regularly monitor progress, gather feedback, and make necessary adjustments to ensure the effectiveness of implemented changes. (DBT Center) 

5. Putting customers first: 

 

 

This entails knowing your consumers' wants, preferences, and expectations and providing products, services, and experiences that meet or exceed them. It also entails seeking client input, assessing customer happiness and loyalty, and utilising data and analytics to optimise customer journeys and results.

6. Instilling a culture of innovation:

This entails rewarding staff members for their initiative and creativity as well as encouraging them to experiment with new concepts, tools, and methods. It also requires creating a learning environment where employees may access the materials, equipment, and instruction they need to improve their knowledge and abilities.

7. Becoming a digital-champion: 

 

A digital-champion culture inspires confidence, commitment and enthusiasm among your employees, customers and stakeholders.

Beyond communicating broadly about digital-ready values, leaders must make sure that employees truly internalize the values, and make them part of everyday practice.

Ø Task 4: Developing Digital Leadership in Meezan Bank.

 

Leadership styles that have been suggested by Daniel Goleman can help leaders promote Meezan Bank's digital transformation. Goleman uses authoritarian, democratic, affiliated, coaching, coercive, and pacesetting leadership philosophies. Every style has benefits of its own and may be used in various contexts. The following leadership philosophies are especially pertinent for digital transformation purposes. (D. Goleman, "Leadership that gets results," 2000)

 

Authoritative Leadership Style:

To inspire and encourage colleagues, an authoritative leader must provide a clear vision and offer direction. Setting a compelling vision allows leaders to direct employees' efforts towards a shared objective, igniting engagement and excitement. According to research by Goleman (2000), this leadership style has a favourable impact on both Meezan Bank performance and creativity.

 

Democratic Leadership Style:

The democratic leadership style entails including staff in decision-making processes, appreciating their ideas, and promoting their participation. Employee participation in decision-making during the digital transformation process may assist foster creative thinking, raise employee engagement, and broaden support for digital projects. (Goleman  2000).

 

MEEZAN BANK GOALS ARE: (Annual report 2022)

 

 

CREATIVE ACTIONS

 

CLEAN WATER

 

SANITATION GENDER EQUALITY

 

QUALITY OF EDUCATION

 

TO TAKE RESPONSIBLY

 

ASID PRODU TION

 

CLIMATE ACTION

 

SUSTAINABLE DEVELOPMENT GOALS

 

PEACE, JUSTICE AND STRONG INSTITUTIONS

 

Reality:

 

Evaluate each leader's capacity for leadership and the current state of the world. Self-evaluations, 360-degree feedback surveys, and performance reviews are conducted as part of this.

 

Options:

 

In order to solve issues and develop their digital leadership skills, leaders should look at a variety of solutions and strategies. This can entail providing cross-functional cooperation opportunities, mentoring initiatives, or access to digital resources.

 

Will:

 

 People should be inspired to act and develop their digital leadership talents. This entails providing ongoing feedback, praising successes, and fostering a friendly atmosphere that promotes exploration and learning.

 

 

 

A growing model

 

A Growing Model is a technique to increase revenue and profit while retaining current consumers and gaining new ones. By enhancing their visionary and coaching leadership stances via the use of the GROW model, leaders can help their teams effectively traverse the process of digital transformation and create organizational success in this digital age. (Nathan Furr 2022)

 

Conclusion:

 

Our corporate culture is our greatest asset, and our commitment to our Core Values Shariah compliance, Integrity and Service Excellence has helped us work as a focused team towards. The bank has to reevaluate several of its internal policies regarding society, cultures, ethics, and corporate governance after examining corporate governance concerns in MBL. Mission should be a premier Islamic bank, offering a one-stop shop for innovative value-added products and services to customer within the bounds of Shariah. The concerns in-depth covered in this report can be resolved by implementing the above mentioned recommendations.