Objectives of Financial Institutions
Financial institutions, such as banks, credit unions, stockbrokers, finance and insurance companies, often have a business plan with a set list of goals and objectives. These objectives are a set of standards or goals that the institution as a whole and each employee will work toward on a daily basis. Objectives can be external and benefit the customers and clients, but also can have external benefits and create a brand for the financial institution.
Financial institutions may have customers coming in to get services or use self-service options to speed up the service process. Since customers and clients are an important asset for financial institutions, an objective is to provide the best customer service to keep clients satisfied and happy. Banking institutions, for instance, may want to improve the customer service procedures within the bank when people come in to pay bills or withdraw money. Credit unions could have the same objective, as members are given reasonable credit rates and the unions need the members to stay active and afloat.
Some financial institutions, such as banks and stockbrokers, offer people help in investing to increase income and worth. If the client has little to no experience in financial investments, the stockbroker or banking manager should provide the knowledge and expertise to help the client invest wisely. An objective can include teaching and helping clients understand the world of investing and teach them tools to keep track of their own investments.
Many financial institutions manage people’s personal money. Since fees, investments, insurance and other services may cost the customer money, a financial institution may have an objective to provide services and savings plans that will save the customer money. This can include combining banking and insurance services for one financial institution rather than having several service providers. It also can mean changing insurance plans, for instance.
Insurance companies and larger banking branches may offer clients insurance plans and premiums to protect clients. This can include credit card insurance, loan limit insurance, car insurance, travel and home insurance, and insurance against burglary and home invasion. Since the needs of each client differ, the financial institution may have an objective to provide insurance plans that are tailored for each client. This is not only to keep current clients satisfied but also in hopes of attracting new customers.