Study On The Bank Of East Asia Back-office Operation Centralization Mode

The separation of front office and back office, and the Centralized standard operating of back office in commercial bank is a new trend for developing bank's operating model. This model refers to the commercial bank centralized process the non- real-time trading business, supporting business, and accounting businesses by taking customer as the center, create a vertical business line management system through business process reengineering. The separation of front office and back office aims to simplify the operating steps and process of front office of bank, promote its transformation of network functions and to focus on product marketing and customer service, increase customer satisfaction with the overall banking services, as well as improve customers' experience. While, the back office exerts its intensification advantage, transfer the non- real-time business and non-trading business, etc. which originally belongs to the network functions of front office into the back office for standardized and specialized treatment, in order to achieve synchronous improvement in bank's operations management level, risk control,and operational efficiency. Foreign banks have proposed relative concepts and implemented at the beginning of the nineties of the last century, and now it has maturely developed. The commercial bank has been always learning from, exploring and gradually extending foreign experience in the industry since the late nineties of the last century to the present century.General commercial banks have long implemented the traditional decentralized operation model. In recent years, several commercial banks based on the operation principle of “Customer- Experience”, learn the advanced approach from foreign banks, combine with their own situation, and take process reengineering of bank business as a starting point, actively conduct reform and attempt to separate the front office from back office & centralized back office. Relying on information technology and imaging technology, and according to the principles of flattening, centralization, professionalization and separating the front office and back office, banks gradually establish a back office operation mode in line with the management of modern banks and achieved obvious result. However, from the specific implementation effect of separating the front office from back office & centralized back office in commercial banks, objectively speaking, although the bank operational efficiency is relatively improved, there are still some problems and shortcomings, as well as great limitations.Taking Bank of East Asia Limited for instance, this thesis firstly introduced the concepts and theoretical basis of the operation model of separating the front office from back office & centralizing back office of commercial banks, and set forth the necessity for commercial banks to further deepen counter business. Secondly, this thesis analyzed the status and shortcomings of this operation model and pointed out the major problems of this operation model. Thirdly, this thesis introduced the experience of foreign commercial banks in centralized back office operation model and the according enlightenment for commercial banks. At last, this thesis analyzed the key concerns for Bank of East Asia Limited in further deepen counter business of separating the front office from back office & centralizing back office,as well as put forward relevant suggestions.