(Solution) Question 1- Why Sunmark Bank’s Performance was Lagging

Solution

Question 1- Why SB’s Performance was Lagging

In the case study, the 8% annual loss is a major evidence of the organisation SB’s performance. The lagging in performance could be an attribute of different factors including;

Financial Performance– The reduced financial performance by SB is evident from the identified increase in losses from 3% to 8% in 2019 to 2022. Also, at a higher than 37%, Non-performing assets and cost-to-income ratio equally has a significant implication on the organisation performance. All these compounded with the rise in exit of the existing clients owing to reduced net promoter score represent a major indicator of lagging performance.

Traditional systems– In the region banking industry, majority of the organisations had been relying on embrace of digitised operations with a 40% increased performance. This is the not the case in SB which had noted struggles in their online banking strategy with a partly growth of 8%. There has been limited consolidation of the banking sector services provision with all processes lacking appropriate streamlining. The performance would hence remain lagging unless the organisation invest in digital transformation, streamlined practice and seamless clients experiences for achieving expectation of tech-savvy clients.

Lacking flexibility and prompt response to financial needs– The lack of an elaborate flexibility of organisation systems and failure to promptly respond to financial needs represent a significant implication to lagging of performance…..

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