Bank business plan: opening and development plan with calculations

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The financial sector is different from other areas of activity, and in order to succeed there, you need to have a certain amount of knowledge. But even this will not be enough to create a business plan for the bank and its successful implementation. To start your own lending institution, you will need sufficient funds to invest. However, nothing is impossible, and if you set a goal, it can be achieved. A commercial bank is an ongoing project, but it should be handled by people with experience in this area. The financial direction is considered one of the most promising and profitable. It should be noted that currently there are a huge number of budgetary institutions, so the competition in this segment is quite tough.

First preparations

According to statistics, financing a business project of a commercial bank is considered one of the most profitable. It is necessary to find a suitable room, draw up the correct structure, calculate all expenses in advance. In other words, draw up a competent business plan for opening a bank.

Before practicingproject, you need to analyze the state of the market in your area. Marketing research is an integral part of any business. Perhaps there are many credit institutions in the required territory, then your business may turn out to be unprofitable. In this case, you should come up with a specialization that would distinguish your bank from the rest. Of course, it will be quite difficult to do this, but if it works out, the result will not be long in coming. Recently, banking has only been developing, and the state has been providing quite significant support to this business.

Choosing direction

The business plan of a commercial bank should be based on your activities. Existing practice shows that large credit institutions are engaged in several areas at once, and they are excellent at it. Here we are talking about business giants: Sberbank, VTB 24, etc. A new credit institution should be different from the rest, specializing in one thing.

Thus, small and medium-sized banks choose a direction, for example, issuing low-interest loans, and promote this offer on the market. You can focus on serving corporate clients, legal entities, small businesses, etc. The main thing is the quality of work, because the client chooses between a huge number of different organizations, and in order for him to be served by you, you need to work at the highest level.

The bank's business plan should be carefully thought out and contain development directions in the order they arepriority. This will greatly facilitate further activities.

Prospect analysis

The previous question indicated the need to select a priority area of work. In order not to make a mistake at this stage, you need to carefully analyze the marketing environment, make a forecast for the next five years and set strategic goals. As an example of a business plan for a bank, the directions for prospective analysis can be given:

• Research on the legal framework and macroeconomics;
• studying the work of competitors and their interaction with the external environment;
• marketing developments;
• sales forecasts;
• building a customer base.

You need to understand what the population is most interested in at a particular moment: deposits, loans, the need to open branches, the ability to perform any operations through a mobile application and a computer. And starting from a demanded position, look for potential customers, contact them, offer their services, guarantee privileges.

The importance of strategic planning

Without marketing research, it is not worth trying to conquer this area. Remember: all further decisions are based on the results of the analysis! After you decide on a priority direction, you need to draw up a business plan for the development of the bank for the next 3-5 years. It should also contain strategic goals.

This part of the work should not be underestimated, only after a while every entrepreneur will understandwhat incredible significance this step has. The following goals are usually distinguished:

• win customer trust, top notch service;
• gradual expansion of its activities, improvement of existing products;
• attracting new investments;
• reducing risk situations;
• creating a career ladder for employees, increasing motivation in order to find qualified personnel.

View of the structure of a credit institution

The financial sector involves several types of structures, the choice of which depends on the direction of your activity. This needs to be decided before opening the organization. There are five different types in total:

• central, which is a state bank;
• commercial, the main purpose of which is to make a profit;
• universal, able to provide a large number of different services;
• investment, carrying out its activities when working with attachments;
• savings, which deals with deposits and saving money.

Bank specialization is also selected separately. Currently, there are mainly market-type credit institutions. Their peculiarity lies in the fact that assets contain securities, and liabilities contain own funds.

Services provided by the bank

The range of products and services that a credit institution provides to customers depends entirely on the chosen specialization. The business plan of a bank branch should have a clearly definedinstructions for the services provided. It is worth highlighting the most popular and priority types of financial assistance:

• brokerage transactions in the currency and stock markets;
• work with deposits, deposits;
• issuance and maintenance of plastic cards (in addition to favorable conditions, you should think about creating an interesting design);
• loans and credits;
• opening and maintaining bank accounts;
• execution of cash services.

Despite the fact that now everyone is switching to online service, there are many people who prefer to resolve all issues with their own eyes, in the department. Therefore, this fact should also be taken into account when creating a bank business plan.

Obtaining a license

To open your own credit institution, you must obtain the appropriate permission and issue a license. But first it is worth registering a CJSC (closed joint stock company) and registering with the tax service. There you can get the identification number of the organization. The bank's business plan with calculations should also include this expense item, since you will have to pay several state duties, as well as make a number of other payments.

Among the basic permissions you need to get are:

• license of the Central Bank of the Russian Federation;
• document confirming registration with RGPP (Russian State Assay Chamber);
• permission from the customs committee.

Management and staff of the credit institution

Worth itnote that a bank as a credit institution can only function as a joint-stock company. Accordingly, the management of the organization is carried out by the Meeting of Shareholders. It usually takes place no more than 1-2 times a year, and during the meeting all topical issues are discussed. For example, a strategy for the development of a credit institution for the next 12 months is being developed, and the necessary management decisions are being made.

The current activities of the bank are controlled by the Board of Directors, the executive power belongs to the Board of the bank. It is to the last body that all other structural divisions are directly subordinate. The staff is formed on the basis of standard requirements for a bank employee.

What are structural units?

In most cases, we are talking about branches of a credit institution, where customers can use all the services of the bank. We need to open at least one office first so people know where to go if they have any questions.

Let's imagine an example business plan for a bank branch. Usually it contains the following departments: cash, currency and deposit transactions, economic and accounting, securities, lending, etc.

In addition to the main ones, you can organize additional ones that will provide support, for example, the security service, the legal department, etc. Before hiring a new employee, a security check is mandatory to identify any violations. If a person passes it, has the necessary knowledge and qualifications, then he becomes part of the bank system.

In addition, each credit institution has an Internal Control Service that reports to the Board of Directors. Her duties include:

• Checking the work of employees for compliance with all necessary norms and standards;
• requiring documents;
• hiring employees from other departments.

Sample Bank Business Plan

Every year, marketing specialists research all kinds of business areas, evaluate profits, expenses, etc. So, to open a small credit institution, investments of at least 100 million rubles will be required.

It is quite difficult to provide a sample business plan for a bank in an article, since it is a package of several documents. But it is quite possible to describe the main costs. Most of the investment will definitely go to renting an office, repairing, recruiting staff, processing the necessary documents and obtaining all licenses and permits. If you want to open a large bank that can provide a wide range of services, then much more investment will be required.

As far as the payback of the project is concerned, here it doesn't happen again and again. Of course, this moment should be reflected in the bank's business plan, but it is not an easy task to predict it accurately. On average, the payback period ranges from 5 to 10 years.

Risks

When developing a business plan for a bank, it is necessary to take into account allmoments and nuances. It is recommended to foresee the most unfavorable situation in advance, and describe in detail the algorithm for getting out of it. Risk is an integral part of any project. It is impossible to predict everything, so you need to be prepared for an unpleasant development of events.

Often, entrepreneurs do not even consider certain factors as risks, which is one of the worst mistakes. After all, hindsight leads to additional costs, increases the payback period, etc. The sales market for products and services is the first thing a novice businessman should think about. After all, the organization must have target customers who are likely to use the services of a credit institution.

Summarizing all of the above, it can be noted that the implementation of the project to open a credit institution is a very painstaking and difficult task, but it can be done. If you take a responsible attitude to the preparation of the bank's business plan, calculate as many risks as possible, attract the necessary amount of funds, then you can significantly succeed in your endeavor. In terms of profitability, there is no doubt that opening a bank is one of the most cost-effective investments.