HYD bank is amongst the leading commercial banks in the country and has always played a pioneering role in introducing innovative technology-based banking services. The role played by its human resources is highly valued, both in terms of their skills dedication in implementing unique banking service. The convenience and instant accessibility of online mortgage banking has made it extremely appealing to customers of all over the country. With just click of button customers can get their mortgage decisions. Understanding that not all customers are the same, the first step to enhance better customer service, age differences and attitude towards the online mortgages are critical aspects that need to be focused on in order to keep customers coming back. The steps a bank can take in accommodating everyone's needs while simultaneously retaining and various customers categories. However, there are many ways that bank make the online mortgage product experience more appealing to its varying customer base.
House prices fell by 1.5% in February, the first decline since June 2009 following seven consecutive monthly increases. The fall of average housing price is 8.0% above the trough reached in April 2009. There has been a drop in the underlying rate of house price inflation measuring a comparison of the latest three months with the previous quarter overall the last few months there been an increase in the number of homes available for sale has helped to decline slightly the imbalances between supply and demand At the same time, the bad weather also helped to decline in the first two months of 2010, after lowering the return of the lowest stamp duty threshold to £125,000, are likely to have had an adverse impact on real estate market demand. The combination of all these factors appears to have helped to curb the raise pressure on house prices, to make some strategic judgments about a mortgage market and its competitors, is to determine the attractiveness of a market to current and potential participants.
We remain in a period of uncertainty for the housing market and economy at large. The market certainly improved over the second half of last year and started 2010 in better shape than most would have predicted twelve months ago. More recent developments have been influenced by the end of the stamp duty holiday, and are likely to foreshadow a larger than usual seasonal drop off in activity in the early part of this year.
Product and Technology analysis:
Our HYD online mortgage product that will save your money and time, due to its enhance accessibility and improve customer satisfaction, get your decision in a minutes over the phone or online, our friendly and dedicated team provide valuable services to our customers. The Technology we are using are very user friendly technology with more secured and fraud preventing software services to our customers, a mortgage application just take 20 minutes to process and our customers can know their decisions.
The online service will have two key features. All dealings with both sellers and buyers will be take place online or via the phone, with the overall business being kept separate from the luxuries outlets in the High Streets.
Opportunity and Current Scenario:
We are a trusted and good reputation bank in providing good customer service by our expertise and professional team. We have the advantage of good reputation in UK market and having enough Capital to launch this product, as we all ready having our online banking facility to our customers.
Ing Direct online mortgage product and the virgin one account product are the main competitors to our product.
Ing Direct they launch their product since 2003. they are charging the interest rate of 3.19 for 2 years fixed term and for 5 year they are charging upto 4.66 for loan to value of 60% and upto 75% loan to value they are charging an interest rate of 4.76 (fixed rate), Ing direct got more than 1 million customers in the UK.
Virgin money has been taking steps to become a fully licensed bank. Virgin moneys one account is our next competitor, they are recently in the market they are providing the facilities to manage one account for all the saving account, mortgage account, current account and credit cards . They are charging the interest rate of 3.75% variable.
How to Exploit opportunities:
- The UK mortgage market has shrunk following the liquid crisis the lack of fund in the UK money markets has led to drastic changes in the mortgage market, a large number of mortgage deals have disappeared off the market.
- There are only handful of lender that offers a green mortgage product. Out of total of 120 active lenders, only five offers a true green mortgage, a staggeringly small 4 percent of the market.
- With fewer products available on the market and customers demand remaining strong, the dynamic are charging. Lenders are currently charging higher prices without this affecting demand they are charging excessive interest rates compare to our rates.
- Due to continuous lack of liquidity, lenders continue to rationalise lending, focusing on good quality business with lesser risk lending, lenders have significantly raised the level of deposit required from mortgage customers. We are not raising our deposit levels.
How to handle Weakness:
- More and more banks are launching there operations in UK which is increasing competition for our product.
- Unsurprisingly most customers would use face-to-face when arranging a mortgage. We need to handle by providing user friendly service.
- Impact of the credit crunch on UK mortgage product structures, assessing the risk of high LTV mortgages in the UK market.
Marketing Mix: is the most famous term in marketing plan and also known as 4 P`s, the marketing mix elements are:
Products: 1) Short-term Residential Mortgage 2) Long-term Residential Mortgage our products are more secured and few clicks away from our customers.
Short-term mortgages are for 6 months to a year.
Long-term Mortgage are more than year to 30-35 years.
Price: HYD Online mortgage rates are reasonable compare to market. All our mortgage loans feature daily interest. This means you're paying interest only on the outstanding amount of your loan after allowing for any funds credited to your account that day. If your repay the loan before the fixed rate period has ended. You will be charged an early repayment fee. We will advise you of the maximum amount before you take out the loan.
Place: is also known as a channel or distribution of services are moved from service provider to the customers, we will locate our call centres and head office with in UK to provide them efficient service.
Promotion: Adverts on telly, adverts on kiss 100 radio, Getting our website to Top search engines.
We are constantly doing research to know the latest trends in customer demand, customer satisfaction, market condition and any happenings that might influence our brand. It was through research we have identified the growth-oriented sectors that have been mentioned in section.
To gather information we use both primary and secondary research. We mainly use primary research to understand the customer satisfaction level of our service ;, to find out ways of improving our service. For primary research we depend heavily upon questionnaires and we will get all the data from (Data Monitor) agencies, as they are less time consuming. However the validity of gathered data remains a question.
Secondary research is mainly done to know current market situation and future forecasts. For the secondary research we rely on magazines and newspapers like "The Financial Times" and "The Wall Street Journal".
Target market: The target audience for online mortgage are 20 - 60 years age group. This is because this is the age people will have started to work and may have just want to bought their own home, and the 60 years because five years prior to retirement. Decent homes are difficult to purchase in today's ever changing world of real estate prices. Safe and comfortable shelter is the prime necessity for each individual. So let HYD Online mortgage with its home finance solution provide you with the means of buying, constructing your ideal home.
Our Online residential mortgage would be launched by the end of Oct 2010. After all the legal formalities will be completed in April, and getting approval from FSA and then within six months we will launch the product.
Approximate human resource
- Marketing Department
- Sales Department
- Finance Department
- Operational Department
- IT Department
- Debt collection Department
- Law Department
The average price in London is around £350,500 on average. The 1st year we introduce a capital of 1000 millions pound and paid LIBOR rate of 0.64% ,in first year we will have a 2853 customers. We are charging a fixed mortgage rate of 4.% . The second year we are adding 1000 millions more for the 2nd year we will have a 5706 customers and the 3rd year we will put a 3000 millions, we will have a 8559 customers.
Control and Measurement
Control is very much important because it is the final link in the management functions. It is the only way mangers know whether organizational goals are being met and, it not, the reasons why. The value of control function lies in its relation to planning, empowering employees, and protecting work place.
In HYD Bank the importance of control can not be neglected because it's a service base organization and deals with finance. Every employee in this organization has direct of indirect interaction with financial activities and finance play the key role in the progress of the bank. That's why there is significance importance of a good control over all the activities in the bank for progressing on the right path.
Process of control:
A three-step process including measuring actual performance, comparing actual performance against a standard and taking managerial action to correct deviation or inadequate standards.
Measuring actual performance:
To determine what actual performance is managers must acquire the information about the actual performance of the workers who are working in the organization and overall performance of the organization.
In HYD Bank managers get prepared statistical and financial reports about the employees and progress of the bank to see that where organization is going. In statistical reports there is all mentioned about the progress of employees that which employee have achieve how much targets at the end of the month which were given by there section managers
Comparing actual performance with standards:
The comparing performance determines the degree of variation between actual performance and the standard performance.
In HYD Online mortgage product sets the following standards are set to compare actual performance!
- Compliance with law
- Reasonable assurance and safeguards
- Integrity, competence, and positive attitude
Taking correct actions:
Corrective action in the organization corrects problem at once to get performance back on track.
Management of HYD Online mortgage product revise the results from the comparison of the actual performance with the standards and then takes the corrective actions to solve that particular problem to ensure the achievement of targets in the organizations
- http://www.ingdirect.co.uk/home/about/default.asp (accessed on 20/03/2010)
- http://uk.virginmoney.com/virgin/mortgage/index.jsp (accessed on 16/03/2010)
- https://service.oneaccount.com/DAPP/rates.do (accessed on 16/03/2010)
- http://www.housepricecrash.co.uk/ (accessed on 19/03/2010)