Call-Us Banking Services is a direct financial services company. It originated as a regional savings and loan company that eventually expanded into direct banking operations, which offers three different types of products; Retail Banking, Loan Services, and Insurance. Retail banking involves the normal group of products offered by a bank including savings and checking accounts. The loan services area is divided up into two divisions; Retail Loans and Personal Loans. Retail loans are offered on behalf of retailers in order for customers to make large ticket item purchases on credit. The personal loans department handles inquiries where individuals have applied directly for loans. The insurance area offers both auto and home insurance products.
The main issue at CUBS is that they are attempting to lower operating costs at the direction of their CEO, Richard Dayton. Dayton has become increasingly concerned with the financial position of the company and is aiming at putting CUBS in a more stable financial position as it relates to their operating expense.
One option for CUBS is to continue running their call center operations as-is. The company’s operations department currently has five call centers. Three centers are devoted towards retail banking, one is aligned with loan services and the other is supporting the insurance division. While this operation has been and is currently successful, it does not satisfy the CEO’s main objective which is cost cutting.
Secondly, the company could merge all of its call center operations into one main unit. Basically, instead of having separate call centers that are focused on their particular markets, the operations would be combined into one larger customer service provider. This is the method that the CEO is proposing. Dayton believe that taking this on would save the company between 3-5% of the overall current costs. While this would satisfy the main objective of lowering costs, the main concern would be how this...
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