Mission of the bank: definition, features of formation and goals

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

Most modern banks have their own specific missions. Thanks to the mission, the bank conveys to its clients its main goal of being on the economic market. And the more interesting, relevant and original the mission will sound, the more loyal will be the attitude of clients towards the credit institution, the more loyal the client is, the more likely it is that he will purchase a banking service. For one bank, the mission sounds short and bold, for another - voluminous and consistent, but all of them are designed to convey to us some thought that will respond somewhere deep inside and evoke positive emotions.

Goal Goals

So what is the main purpose of the bank?

The mission of the bank is the highest, most important and main goal of the bank, the goal of goals, capable of expressing in a few words the strategy and the meaning of the very existence of a credit institution as such.

The Bank is a credit institution whose raison d'etre is to make a profit, all its economic processes are focused on this, but the mission is some more philosophical understanding of the meaning of its existence by this organization, the very essence of being. The mission is an intangible asset that should contribute toincrease the competitiveness of the bank and lead to the main result - an increase in profits.

Features of mission creation

Each organization, especially a credit institution, should have its own development strategy, which should be carefully planned. The mission is the starting point of this strategy.

Bank answers questions:

• What are we?
• What are we in the market for?
• What do we want to give our customers?
• Which direction is our development going?
• What kind of organization do we want to eventually become?

Goals of the bank's mission - to answer these questions concisely but meaningfully. Then, on the basis of the mission, theses are developed, and then - the main development strategy of the bank.

Let's consider what aspects should be covered in the bank's mission:

1. The main direction of development and activity of the bank.
2. A characteristic difference from other banks, a spectacular feature that distinguishes a particular bank from competitors.
3. Category of customers to be emphasized, their needs.
4. The bank's contribution to the public good.

Mission of the Central Bank

As you know, Russia has a two-tier banking system, consisting of the Central Bank of Russia and commercial banks (and other credit institutions). The Central Bank of Russia, the "bank of banks", acts as the main financial regulator of the country's economy, in addition to issuing the money supply, it controls the activities of all creditorganizations, issues/revokes licenses to commercial banks, provides them with loans and performs a number of other important functions.

Ensuring financial and price stability, promoting the development of a competitive financial market.

This is the mission of the Bank of Russia.

Global and large-scale work of the country's main bank in the economic market reflects its very concise mission. Indeed, the role of the Central Bank in our country is not to make a profit, it sets itself the most important task - the development of the Russian economy as a whole.

Goal of commercial bank goals

The most important difference for commercial credit organizations is the desire to stand out from the competition. If the country's main economic regulator is out of competition, the situation is different with commercial banks. They provide clients with approximately the same range of services, so strategic development managers have to work hard to ensure that a particular bank can stand out in the economic market thanks to an interesting mission.

The mission of a commercial bank is the highest, most important and main goal of an organization in the economic market, the goal of goals, capable of expressing in a few words the strategy and meaning of the very existence of a credit organization as such, effectively distinguishing this institution from competitors. A variety of credit institutions implies a variety of missions. Let's pay attention to the missions of some banks.

Mission of "Alfa-Bank"

"Alfa-Bank" - the largest Russian bank, founded in 1990 and operating to this day, it provides all basic services.

Mission of Alfa-Bank:

We believe that freedom is the key value of modern man. By uniting caring people, their experience and energy, we help you to be freer in your actions and dreams.

This bank focuses on the highest value - freedom. It's captivating. In fact, a person always strives for freedom, in the material world or the spiritual, he longs for independence. And here a commercial bank - an organization whose whole meaning of existence is to obtain maximum profit, sets for itself a super-task, a mission - to help its clients be freer. Yes, the approach is more philosophical than economic, but certainly a win-win option. It is also important that the credit organization affects the future of the client, gives everything you need now and then, "in deeds and dreams".

For reference: the mission of this bank can be viewed on the official website of the organization. On the main page of the site, you need to go down and click on the inscription "About the bank".

Mission of VTB Bank

Bank "VTB" is part of the largest holding called the "VTB Group". This includes; Bank "VTB", "VTB Insurance", "VTB Capital", "NPF VTB Pension Fund", "VTB Leasing" and so on. The bank is the second largest in Russia, rapidly developing andin step with the times.

The mission of VTB Bank, or rather, the group of companies, sounds like this:

We provide international financial services to help secure the future of our clients, shareholders and society as a whole.

The organization focuses on the quality of services provided, because "international level" means a high quality service. Also, the credit institution makes it clear that shareholders are important to it as well as ordinary customers, and the bank aims to improve the life of society as a whole. The mission sounds "loud", but not unreasonably, because just like that the company would not be the second largest and most popular in the country. A client, choosing VTB for himself, chooses an excellent service.

To read the mission and values of VTB Bank, you need to go to the official website of the organization, go to the tab "About the group", select the line "Mission and values" under "VTB Group".

A little about values

Since the mission of the bank is better perceived by customers in a short form, credit organizations, in order to set out the most important task in full, in full, also indicate values. Values differ from the mission in a large amount of information, they cover all the most important aspects of the activity, without missing anything necessary. In other words, if it is desirable to "cut" the mission to the required format, that is, to remove some important information about the credit institution, this should not be done in the values.

Credit valuesorganizations can be:

• strive to improve their activities, offer customers quality service;
• constant development, the desire to keep up with the times;
• the desire for social approval along with the pursuit of maximum profit;
• environmental activity of the bank;
• compliance with simple ethical standards;
• honest business, based on the legislation of the Russian Federation;
• careful attitude not only to existing and potential customers, but also to their employees, compliance with the Labor Code of the Russian Federation;
• the desire to make an imperfect world a little better, etc.

Thanks to the values set out to clients, the bank receives additional loy alty, the more values are affected, the closer the institution will become to its client, that is, it will receive more profit.

Conclusion

Summing up, I would like to note that the bank's mission should be very well thought out, and much attention should be paid to this. If the mission is very narrow, the bank runs the risk of missing a certain part of the market, which will affect the amount of profit. If the mission is very vague, some banality will appear, which will also not attract much attention, will be weak among the more interesting super-tasks of competing banks. In everything, balance is important. Conciseness and originality will do their job - the client will be interested, pay closer attention to the bank and, possibly, come for some service. And it is important: despite the great ambitions and desire"conquer the world", the mission of the bank must be feasible.