The Role of the Responder: ING Direct Canada
Case Report
ING DIRECT CANADA
Role of the Responder: Basil Bell, Vice-President Operations, ING Direct Canada
Executive Summary
ING Direct Canada is facing back office capacity problems in handling new and existing accounts because of a successful direct mail campaign by the marketing department. Providing same day processing of new and existing accounts has become challenging for the operations department. This is resulting in cost overruns with increased overtime hours and errors for the employees. The main issues affecting the company are mailing room capacity shortages, variability in daily mail volume and budget, space and headcount constraints. The division with its current available options can improve the existing mailing room operations process by using its human resources wisely in the short term and plan for capacity expansion in the long term, understand the reasons behind mail variability and renegotiating with corporate to gain more resources for the operations division. Based on detailed analysis and findings, it is recommended that the division implement a careful and planned short term and long term strategy to enhance and expand mailing room processes.
INTRODUCTION
ING Direct Canada operates in Canada as a Schedule II bank and launched its operations in Canada on April 22, 1997. Its strategy is to differentiate itself from the domestic banking powerhouses by expanding its retail banking operations in Canada using a low cost strategy. It achieves low cost in its operations by offering a limited line of standard products and services with easy enrolment processes without any service charges or fees. The company has only one location with no branch networks, which makes it easy to offer very competitive rates on savings deposits. As of March 2000, ING Direct Canada has a staff of 242 people, with 94 being full time call center employees known as Direct Associates. The bank is facing significant capacity issues for its back office
ING DIRECT CANADA
Role of the Responder: Basil Bell, Vice-President Operations, ING Direct Canada
Executive Summary
ING Direct Canada is facing back office capacity problems in handling new and existing accounts because of a successful direct mail campaign by the marketing department. Providing same day processing of new and existing accounts has become challenging for the operations department. This is resulting in cost overruns with increased overtime hours and errors for the employees. The main issues affecting the company are mailing room capacity shortages, variability in daily mail volume and budget, space and headcount constraints. The division with its current available options can improve the existing mailing room operations process by using its human resources wisely in the short term and plan for capacity expansion in the long term, understand the reasons behind mail variability and renegotiating with corporate to gain more resources for the operations division. Based on detailed analysis and findings, it is recommended that the division implement a careful and planned short term and long term strategy to enhance and expand mailing room processes.
INTRODUCTION
ING Direct Canada operates in Canada as a Schedule II bank and launched its operations in Canada on April 22, 1997. Its strategy is to differentiate itself from the domestic banking powerhouses by expanding its retail banking operations in Canada using a low cost strategy. It achieves low cost in its operations by offering a limited line of standard products and services with easy enrolment processes without any service charges or fees. The company has only one location with no branch networks, which makes it easy to offer very competitive rates on savings deposits. As of March 2000, ING Direct Canada has a staff of 242 people, with 94 being full time call center employees known as Direct Associates. The bank is facing significant capacity issues for its back office