Revolution in banking behavior has a positive effect on customers
BANKING

When Algeria had a command economy, based on socialist principles, the people in power looked on private enterprise with a jaundiced eye and the banks were essentially an extension of government.
Even so, long before Algeria opted for the free market, with a zeal that has won plaudits from the IMF, reform was already rumbling on in the banking sector.
That process has accelerated since President Bouteflika came to power in 1999, and the major banks have re-invented themselves, or at least re-assessed their function and the sort of services they provide to customers. Among the big players, for example, the Banque Nationale d’Algerie (BNA) – not to be confused with the Central Bank, the Banque d’Algerie – carried out a thorough review of its practices. That led to a development and modernization plan for 2001-2005.

For BNA and its competitors, one of the biggest shifts has been in coming to terms with having private sector companies as clients. In fact, several big banks saw which way the wind was blowing, and helped some of these companies develop.
The experience of the Agricultural and Rural Development Bank (BADR) is particularly interesting. It is one of Algeria’s youngest big banks, set up just 20 years ago, as an off-shoot of the BNA. As its name suggests, BADR’s original mandate was to provide credit to rural areas, and to help in strengthening agricultural development. That is largely why it has ended up with the most extensive network of branches in the country – nearly 300, employing 7,000 staff.

FAROUK BOUYACOUB CEO of BADR

The man at BADR’s helm, CEO Farouk Bouyacoub, believes his bank can play a leading role in modernizing Algeria’s banking sector. He aims to bring standards up to international norms, first equalling those of neighbors like Morocco and Tunisia, but aspiring later to reach European levels.
This requires both a revolution in banking practices and a change of mentality among the bank’s customers, he says. “We have had to adapt our vision, our method of working, and our organization to fit in with the principles of the market economy.
“One of the first things we had to overcome was a negative attitude towards customers. We behaved rather like government officials. We had forgotten that we exist for the client and thanks to the client, and that, consequently, the client should be the center of our attention.”

In BADR’s case, this has meant making a clear separation between back-office staff and customer-facing employees, with the latter receiving intensive training in customer relations. Instead of having to go from one counter to the next, trying to find someone who could answer a query about a particular service, customers can now deal with individuals who are well-briefed on all the bank’s operations.

BADR has adopted new working methods to raise standards and improve customer relations

A collar and tie have become standard dress code for front-office male employees and the physical environment has been smartened up. Mr. Bouyacoub says this has had a noticeable effect on the way clients behave as well.
“There used to be people who would shout, and who didn’t think twice about throwing their cigarette butts on the floor,” he says. “Whereas now, even in the rural areas, you can see men in traditional burnous (a hooded cloak) who are conscious of their surroundings and who speak in a respectful voice.”

As part of the general banking reforms, BADR – along with other banks – was encouraged to diversify its operations from its earlier specializations, offering a wider range of services to a broader spectrum of clients. Mr. Bouyacoub welcomed that development, as it spread the bank’s risk, though the bank recognizes that it is often best at delivering the sort of services it is familiar with.
“Another advantage is that we are completely computerized,” says Mr. Bouyacoub. “We started installing our information systems in 1994, well ahead of the others. These days, we have our own computerized system, which does not depend on any other system or any other company, which is not the case with the other banks.