MERCHANT BANK GHANA
Organisation Back ground
Merchant Bank was incorporated in August 1971 and commenced business in March 1972 as the first Merchant bank in Ghana. It’s corporate head quarters is located at No 44 Kwame Nkrumah Avenue in Accra. Merchant Bank provides a comprehensive range of banking services to its customers and clients using its worldwide network of corresponding banks. * Services provided by Merchant bank includes
* Corporate and institutional banking
* Business banking for Small and Medium Enterprises (SME’s) * Personal Banking- for individuals and high net worth clients. * Investment banking
* Trade finance
* Foreign remittance
* The Bank has two wholly owned specialized subsidiaries namely: * Merban Investment holdings Limited- dealing in funds/portfolio management, money market operations, investment advisory services among others. * Merban Stock Brokers Limited (MSL) - dealing in brokerage services, underwriting of new issues and joint venture arrangement.
1. The principal resources and capabilities needed to compete effectively in the banking industry include the following:
* Financial resources needed include liquidity (cash) which is a critical resource in the financial services industry. Another tangible resource is infrastructure which includes buildings, Information Technology which now serves as a very important competitive tool, Securities which include investment instruments.
* Intangible resources owned by the bank that enables it to compete effectively include strong brand, large customer base, and good customer relationship management strategy. Good organizational culture that have been maintained over the years. Human Resource
* Human resources owned by the bank include high caliber of workers. * Well trained and motivated staff.
2. The banking industry in Ghana for the past five years has become very competitive as a result of the entry the Nigerian banks into the industry. For indigenous banks like Merchant Bank to compete effectively, the bank needs to evaluate its resources and capabilities in terms of its strength and weaknesses. Strengths
Strong brand: Since 1972 the brand name “Merchant Bank” has thrived in the Ghanaian banking industry as a major brand that has instilled confidence in our clients. This has enabled the company to attract business with new clients with less effort as the brand name is well known. Information Technology: Merchant bank uses “cutting edge” safe and secure technology to deploy our services to our clients. This technology which is one of its kind in the industry serve as comparative advantage to the company. Human resource: The bank has a motivated well trained staff knowledgeable in the products and services of the bank. This enables the bank to provide services that meets the demand of its clients. The bank has developed programs to ensure technical competence of sales staff and marketing orientations of services personnel. The strong coordination among functions in research and development, product development and marketing enables the bank to come out with desired products for its clients. Physical Properties: The deployment of banking services requires the presence of physical properties such as banking halls and equipments to ensure smooth operation. The Bank boost of moderately widely state of the art branch network. General Administration: The bank has developed a comprehensive personalised database which enables it to gain firsthand knowledge of its customers which is used in “customizing” how products are sold. Finance: Strong financial backing from its investors with large operating capital as compared to other players in the industry. This enables the bank to conduct its operations with little reliance on external sources of funding. Weaknesses