IARB prospectus 2014

PROSPECTUS2014Retail Banking: The New Way

International Academyof Retail Banking

www.iarb.org

Michael Lafferty and Prof Rahman present Philip King, head of retail banking at Abu Dhabi Islamic Bank, with his CIRB certificate.

Promoting retail banking excellence

“This course has by far exceeded my expectations and equipped me with all I need to be instrumental in building a lasting bank brand equity. A holistic view of the entire retail operation is key for any passionate retail banker and that is exactly what this course offers”

Nedbank executive, South Africa

The International Academy of Retail Banking produces certified, professional retail bankers who will be an asset to their bank and the industry worldwide.

A Certified International Retail Banker will be able to:

• understand customer psychology and build enduring and profitable relationships with customers;

• motivate and engage staff – which is critical to exceeding customer expectations;

• deliver excellent service that will delight the customer;

• analyse product profitability in order to focus on optimal value creation;

• assess and manage the bank’s risks;

• have an understanding of key value drivers, KPIs and financial reports.

Michael Lafferty and Prof Rahman present Philip King, head of retail banking at Abu Dhabi Islamic Bank, with his CIRB certificate.

IARB Prospectus / 3

Retail bankers are trusted professionals, like accountants and lawyersThey are professionally educated, have passed challenging examinations and keep up to date through continuing professional education programmes

Retail bankers are dedicated to doing what is best for clientsWhere bank staff are well-educated and rewarded for the quality of service they provide over time

Where retail bankers abide by a strict code of ethicsThey do not ‘push’ products and are not rewarded monthly for achieving sales targets

Imagine a world where...This customer-oriented professional approach to retail banking is what the International Academy of Retail Banking believes in.

It is not a distant dream for a sector that has yet to develop - retail banking is already the main source of bank profits in most countries, as The Economist explained in its May 2012 ‘Retail Renaissance’ survey.

In a nutshell, retail banking is the future – and the Academy is dedicated to making it an admired and respected profession of international repute.

© The Economist Newspaper Limited, London (May 2012)


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The International Academy of Retail Banking was founded in London in 2011 to educate retail bankers around the world to a high professional standard. It is the only educational and professional academy exclusively dedicated to retail banking anywhere in the world. Banking has been through a tumultuous time over the past decade as a result of sharp practices and shady dealings. The IARB will develop bankers who can rebuild trust and form profitable, long-term relationships with their customers. It will teach retail bankers not just the skills, but the values behind ethical and profitable banking.

We expect our members to subscribe to the following core values, which are also our teaching values:

• We treat customers and colleagues with respect, fairness and transparency

• We are innovative, creative and always open minded

• We provide high quality customer care and excellent execution of our programmes

• We are driven and have passion for our mission to professionalise retail banking

In the 1980s, Lafferty Group had the pleasure of working with the late Dr Stefan W. Kaminsky, the founder of KKB Bank in Düsseldorf – the world’s first for-profit consumer-only bank. Together, they published the management report Beyond Retail Banking, possibly the most important treatise on retail banking ever to be written.

This report – now updated under the title Real Banks for Real People - A Roadmap to Managing a Retail-Only Bank – is an important source for the basic concepts taught by the IARB.

Consumer banking considers the customer relationship as its only real asset. All other traditional assets or balance sheet items are nothing but manifestations of this relationship

“Dr Stefan Kaminsky

WHAT IS THE IARB? The International Academy of Retail Banking (IARB) has been founded with the objective of playing a leading role in the development and professionalisation of

consumer-oriented retail banking across the world.



101 Ethics Trust is a basic tenet of the relationship between the banker and the customer. We will discuss how this can be reaffirmed by examining various theories of business ethics.

102 Retail Banking Overview The basics of retail banking and how it differs from other types of banking; fundamental retail-banking strategies.

103 Products An introduction to retail banking products and a discussion of their respective customer attributes and sources of bank risk.

104 Channels The different channels that are used in retail banking. Branches, remote banking, online banking, etc.

105 Marketing An introduction to bank marketing; the 4P model; approaches to segmentation.

106 Effective Sales ManagementIndividual sales techniques; self-management (processes and strategies).

107 Customer Service QualityThe fundamentals of customer service quality in terms of professionalism and ethics.

108 Operations ISet-ups, processes, quality and cost control, IT platform basics. Methods to reduce cycle time.

109 Credit Loss ManagementThe main approaches to manage credit risk, distinguishing between the three main sources of risk in retail banks and understanding the issues involved in accounting for credit loss.

110 Relationship ManagementThe theory of relational exchange as the basis for relationship management in retail banking and the role between commitment and trust that is driven by customer intimacy.

Retail Banking I modules

Retail Banking I

Retail Banking I is designed to introduce the theoretical and practical core competencies that are required for success in a retail banking organisation. After completing Retail Banking I, you can then move on to Retail Banking II.



Retail Banking II

Retail Banking II focuses on the issues that are encountered when leading people and departments. Following the completion of this module, you can move on to Retail Banking III.

201 Brand Management Brand value marketing.

202 Direct Marketing Attracting new customers or creating a direct customer-bank communication to promote an offer or obtain customer information and to strengthen the long-term relationship with that customer.

203 Product Portfolio Management Analysis of the processes involved in product development and strategic streamlining of product portfolio.

204 People Management Human capital management; models of motivation; employee engagement.

205 Customer Care Delivering on a customer-centric view.

206 Performance Management Integration, layering and alignment issues in people and team performance (eg, branch performance).

207 Operations II Managing bank processes to deliver lean and consistent outcomes.

208 Balance Sheet ManagementExploring the strategy of the retail bank as a standalone strategic business.

209 Risk Management Advanced credit risk; other types of risk (liquidity, reputational, operational, market). Forecasting models of customer default.

210 Financial ManagementFinancial analysis around key banking metrics.


Retail Banking II modules


Retail Banking III

Retail Banking III focuses on the issues that are encountered when you are leading people and departments. The aim is to develop and enhance the capabilities required to run retail banking strategic business units (SBU) for best results.

301 Leadership in Retail BankingRequired retail banking leadership skills in a constrained landscape.

302 Business Strategies for Retail BankingDeveloping and executing retail banking strategies.

303 Achieving Profitable GrowthExploring strategies for opening new markets, both domestically and internationally.

304 Governance and EthicsComplex governance structure of retail banks; silo structure and ethics.

305 Operational Leadership in Retail BankingManaging banking operations for customer service quality.

306 Risk and Capital ManagementAdvanced management bank risks for optimal profitability. Balance sheet management in a regulatory framework.


Retail Banking III modules


The International Academy of Retail Banking is committed to making the Certified International Retail Banker (CIRB) qualification the recognised standard for professional retail bankers worldwide.

Academy certification will send a powerful message to your customers, colleagues and the regulators that you are committed to maintaining the highest standards of professionalism in your work. It will also provide you with an unmatched international network of fellow professionals and an unparalleled research resource that you can access at

any time. Academy certification – and the right to describe yourself as a Certified International Retail Banker and use the CIRB designation – is achieved on successful completion of three separate programmes, each one culminating in an exam:

Retail Banking IRetail Banking IIRetail Banking III

We recommend at least 18 months’ experience in retail banking (or equivalent) before starting the programme.

Upon successful registration to the programme, professional retail bankers are bound by the Academy’s ethical code. This is not just a course, it is a career-long commitment to recognising the importance of retail banking and developing the skills necessary to have a fruitful career in the industry.

This registration is not a mere trinket or certificate to put on a dusty mantelpiece; it is an entirely new way of doing business. Banking is changing rapidly, with new innovations coming along every day. This is the best way of ensuring you and your staff are leading the way.

BECOMING A CERTIFIED INTERNATIONAL RETAIL BANKER?

Retail Banking III

Retail Banking II

Retail Banking I Exam

Exam

Exam

C . I. R . B

CERTIF

IED

INTE

RNATIONAL RETAIL BAN

KER



You can now register to study the IARB modules via e-learning at www.iarb.org.

Online study resources include:

• All coursework materials• Video lectures and podcasts• Interactive presentations• Scorable self-assessment of module

content• Live, synchronous exam preparation

sessions• Sample exam papers

E-learning ensures that you can build your

study timetable around your existing work and allows you to progress at your own pace. We have designed the entire process with retail bankers in mind so you can fit e-learning in around your busy schedule.

To participate in the Academy via e-learning, you will be required to study the content in your coursework manual while listening to and interacting with the presentations and activities for each of the tasks as outlined.

There will be an online forum for discussing some of the topics covered in the modules,

and you will have access via email to IARB staff.

Our e-learning is not just learning by video, it is a fully interactive educational system. We are here to assist you at all times. After completing all of the tasks, you can check your understanding of the content by completing the ‘knowledge check’. Once you feel ready, you can then register for the exam. It is the perfect way to add to your knowledge in your own time, at your own pace, with the added comfort of knowing that we are here to guide you every step of the way.

E-LEARNING



The International Academy of Retail Banking incorporates classroom learning with pre- and post-course study. Before starting a programme, students will be expected to have studied the assigned pre-course material.

Between the end of the classroom sessions and the administration of each level’s examination, students will be expected to study the course material as well as complete sample examination papers before sitting their examination, which will examine all areas of the coursework and syllabus.

International Academy of Retail Banking courses are delivered in both national-focused and international open programmes as well as within individual banks. The core content is the same regardless of whether courses are delivered in different languages or different countries. Having said this, IARB programmes are always adapted and customised to local markets.

In-house programmes

In-house training and exams are available and courses can be taught in the local

language or a translator will be available. Courses will be taught in English wherever possible. In these situations, formal demonstration of English proficiency is not a requirement of the IARB. This means that students have the responsibility to determine if their language skills are at a level that would allow them to fully benefit from the Academy.

In-house programmes can be tailored to your unique requirements, depending on the size of your organisation and the number of students you wish to put through the Academy.

IN-HOUSE AND CLASSROOM LEARNING



Academy Partners Awards BodyInternational Academyof Retail Banking


Michael Lafferty founded Lafferty Group in 1981 when he left the Financial Times, where he had been responsible for coverage of the banking industry. A chartered accountant and fellow of the Institute of Chartered Accountants in England and Wales, he had previously worked on the paper’s LEX team, the City Desk and been accountancy correspondent. Lafferty Group has come to occupy a preeminent position in the international financial services industry, providing the industry with education, research and intelligence, and councils. Michael is co-chairman of the International Academy of Retail Banking.

Dick Harryvan is a former member of the executive board of Amsterdam-based ING Group. Dick started his career as a management trainee at Nationale-Nederlanden in 1979. From 1980-1989, he held various management positions in ING’s US and Canadian insurance businesses. In 1989, Dick moved back to the Netherlands and was appointed a manager of the International Division of Nationale-Nederlanden. In 1993, he was appointed general manager of Bancassurance at the International Division of Amsterdam based ING Bank. From 1995-2006, Dick served as general manager of ING Direct where he was chief financial officer/chief risk officer of ING Direct globally. Dick was then appointed to the ING Group executive board and became CEO of ING Direct. He maintains two board positions at ING Direct in Canada and Germany. Dick holds a degree in business economics from Erasmus University Rotterdam, majoring in finance.

Dr. Abdul H. Rahman is a professor of economics and finance and Telfer teaching Fellow at the Telfer School of Management, University of Ottawa. He was previously associate dean at the John Molson School of Business, Concordia University in Montreal. He has been published in several academic journals including the Journal of Banking and Finance, Journal of Asset Management, Journal of International Financial Markets, Institutions and Money, Journal of Financial and Quantitative Analysis. He has consulted for global financial institutions in retail banking, commercial banking, asset management, private banking and life insurance. Abdul is the academic director of the International Academy of Retail Banking.

Evelyn Hunter-Jordan is a key member of the management team at Lafferty Group. A former ballet entrepreneur and classical ballet dancer, she joined Lafferty Group in 2007. From an initial role as assistant to the chairman, she became Lafferty Group general manager in 2008 and has played a major role in the development of the International Academy of Retail Banking. Evelyn holds a Diploma in Ballet from the University of Cape Town, South Africa, and is a registered teacher of the Royal Academy of Dance. Evelyn is the executive director of the International Academy of Retail Banking.

Norman Gealy chairman of the IARB Awards Body. Norman has specialised in educational measurement since graduating in Experimental Psychology from Oxford University in 1975. He worked for The Psychological Corporation in the US and for City & Guilds in the UK before helping to set up an independent consultancy in London in 1986. His main fields of work have been vocational and professional qualifications, and his clients have included all of the professional accountancy bodies in the UK as well as numerous other bodies providing professional qualifications related to finance. He has worked directly for the UK government, both as an agent, in the provision of consultancy overseas, and as an adviser, having helped to develop the framework by which all English qualifications (school and vocational) were regulated from 2004. Recently he has helped to develop new professional qualifications in facilities and in project management, as well as continuing to contribute to national qualification policies.

Ian Lindsey is an experienced, professionally qualified bank director with direct experience of lending, risk management, compliance and corporate governance. Since 2002 he has been the senior independent non-executive director of Vanquis Bank Limited where he chairs the audit, risk, remuneration and compliance committees of the board.He is a career banker having progressed from branch banking to become managing director of personal banking at City of London investment bank Robert Fleming & Co Limited . He was also a director of the Fleming funds management subsidiary Save & Prosper Group for over a decade. Since retirement he has held several non-executive directorships within the financial and telecoms sectors.He has always undertaken charitable activities evidenced by serving on the councils of the Chartered Institute of Bankers and the University of Nottingham, the board of the armed forces trading company NAAFI and is currently a trustee of the Royal British Legion where he chairs its finance and property committee.

Godfrey Banks has a unique blend of retail banking experience and hands-on involvement with awarding organisations and the regulator of qualifications in England (Ofqual). After graduating with an honours degree in modern languages from London University, Godfrey joined Midland Bank (which became part of HSBC). As part of the bank’s planning division he rolled out the first branch credit-scoring system. Godfrey left to work for the London Chamber of Commerce where he took charge of the operational side of their awarding organisation. After two successful years he joined the British government’s Qualifications and Curriculum Authority (QCA), the forerunner of Ofqual. There he worked on all aspects of quality audit together with the awarding organisations that deliver qualifications in the UK and overseas. This ranged from special investigations and methods of assessment to the creation of new audit systems and procedures for recognition as an awarding organisation.


TESTIMONIALS

“I am really enthusiastic about this new initiative regarding retail banking certification”Training Manager, Banca Comercială, Romania

“This launch is long overdue and I am so happy to be part of this”Proposition Manager, Youth & Mass Market Proposition, Diamond Bank, Nigeria

“Very excited to hear about the academies”Vice President, Global Decision Management, Citibank, India

“A great initiative! It is essential to have a professional certificate in retail banking”Head of Competitive Intelligence, Itaú Unibanco, Brazil

What people are saying about the International Academy of Retail Banking

The programme was life-changing for meHead of Priority Banking Business, Skye Bank, Nigeria

“Overall the Academy beats other similar programmes by a long way and I am sure more of my colleagues will be attending this programme in the near future. My feedback is overwhelmingly positive and I think a couple of things stood out for me: The international exposure and that the focus on [the] client is an absolute must. I want to extend my gratitude for a fantastic programme”Head of Product and Support, First National Bank, South Africa

“ “The Academy programme provided me with access to the latest financial services best practices, with an emphasis on retail banking leadership. All the Retail Banking III modules were highly relevant to me in my current position as the consumer banking head in the bank”Head of Retail Banking, Maybank, Kuala Lumpur

“Clearly this was more than just an academic or ordinary training programme, but rather more practical and focused on the issues we face as a retail bank”Executive Manager - Consumer Banking, Gulf Bank, Kuwait

Congratulations on this initiative. It is badly needed in our industryExecutive Director of Acquiring and Strategic Initiatives, Russian Standard Bank, Russia

“




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MEMBERSHIP

Becoming a MemberMembership of the IARB/IRB will send a powerful message to your customers, colleagues and the regulators that you are committed to maintaining the highest standards of professionalism in your work. It will also provide you with an unmatched international network of fellow professionals and an unparalleled research resource that you can access at any time.

Associate MemberAnyone studying for an IARB professional qualification at Retail Banking I, Retail Banking II or Retail Banking III levels is

classed as an Associate Member of the Academy.

Associates who have passed the Retail Banking I examination are awarded the status of Associate International Retail Banker and are entitled to use the letters AIRB I. Associates who have passed the Retail Banking II examination may use the letters AIRB II.

MemberThose who have passed examinations at all three levels: Retail Banking I, Retail Banking II and Retail Banking III. Members

are entitled to use the designation Certified International Retail Banker and the letters CIRB.

FellowFellowships may be granted to Certified Members of good standing who have participated in and annually completed the Continuing Professional Development Programme of the Academy/Institute and for a minimum of five years. This grade of membership carries the designation of FIRB.

Professional statusIf you are a Member (AIRB I/AIRB II), Certified Member (CIRB) or Fellow (FIRB), you can use the relevant letters after your name.

Academy bulletinOur monthly newsletter featuring commentary, articles and country reports that analyse and interpret trends in retail banking worldwide – as well as Academy news and developments.

Members’ areaYou can access the password-protected Members’ Area on this website to access your online learning materials, enrol for examinations and participate in members’ forums.

Online libraryAccess to our digital library of current and archived research articles and reports. You will also have access to a library of webinars where retail banking experts present and discuss key issues facing the industry.

Continuing Professional DevelopmentYou can take part in our CPD scheme to demonstrate that you are keeping your qualification up to date and demonstrating your continued commitment to maintaining the highest standards of professionalism in your work.

Visit www.iarb.org to download a membership form or email [email protected]

BENEFITS OF MEMBERSHIP

www.iarb.org

mailto:[email protected]

IARB Prospectus / 26

The International Academy of Retail Banking believes that retail banking should be a recognised profession like accountancy and law.

We are committed to:

• Making the Certified International Retail Banker qualification (CIRB) the recognised standard for professional retail bankers worldwide

• Thought leadership and research• Having a global reach and the infrastructure to support it• Being the voice of the profession• Working in alliance with the retail banking industry• Working closely with our members and students through alumni

networks and an annual conference

Retail bankers enrolled in the programme come from banks that include:


www.iarb.org

IARB prospectus 2014

Business

Transcript of IARB prospectus 2014