TITLE NEW BANK/MARKET ORGANIZATIONAL MODEL FIELD OF APPLICATION The utility model proposed here is defined as a highly efficient interface for making bank/market relationships simpler, more dynamic and much more spread. It involves the use of"Smart Cards", credit cards and"Mobile Counters"as its industrial media.

CONTEXT. The model is placed in an organizational context involving banking services, the costs of which refer to the cost of performing banking transactions.

Currently such costs create a negative economic impact, due to the high costs of the structures, human resources and materials involved. In the proposed model, on the other hand, the costs of the structures and resources used are drastically decreased, reducing also the costs of banking relationships with the public in general, that is, with customers who perform transactions involving modest sums.

OBJECTIVE. Specifically aimed at weaker economies, the model is above all based on the introduction, within the organizational structure of the bank, of what we will call the"Mobile Counter". This offers several advantages, due to the effectiveness of the model, to the simplicity of the model for the bank's customers, and to the important savings it ensures for all the factors involved. Furthermore, owing to its high level of flexibility, even smaller or local structures can benefit from a series of opportunities, including: 1. a rapid increase in the bank's coverage within the territory; 2. low cost of the distribution structure; 3. better use of the productive factors involved; 4. a stimulus for local economies; 5. a powerful means for spreading essential banking knowledge.

The model derives from the observation that a Credit Institute can classify the

products it provides to the market into the following main groups, according to what flows such products involve. The products may thus generate: 1. cash flows that are channelled into the bank or from the bank to the market; 2. information flows from the bank to the market and vice versa; 3. mixed forms, in which there are products that include both the exchange of cash and the flow of information.

Moreover, further distinctions can be made by differentiating the products proposed to the market, in terms of: 1. The ease/complexity of the product to be negotiated in relation to the concept of ease or complexity of products in general, considering the level of banking knowledge of the subjects involved in the negotiation of the product; furthermore, the level of ease or sophistication that the product implies must also be considered.

2. The professional level of the person responsible for sales. This subject is a negotiator, commonly called the teller, being the person who, at the bank's counter, operates on behalf of the bank itself. The sum negotiated is the sum involved in the transaction. It is clear that small sums negotiated do not affect the balance of the bank's financial management, nor involve changes in the relationships between the customer and the bank, but rather are transactions that, without entailing significant economic profits or loss of control for the bank, represent the majority of the actual services that the bank offers the medium- small customers, the largest overall group in percentage terms.

It is also worth making a distinction in terms of the potential use of banking services by the customers: 1. Large customers: these move or are able to move large quantities of product; these are the customers who are most courted by the competition; often they are

the customers who are more attentive to market conditions, new products and concepts, and who require highly professional service.

2. Medium customers: generally consisting of customers who have frequent dealings with the bank; their banking knowledge varies; they belong to all social categories, yet above all involve tradespeople, small retailers, professionals and company managers. They normally perform simple transactions for modest sums, yet they often also require complex transactions involving larger sums (loans, shares, discounting of notes, and so on).

3. Small customers: these represent the broad customer base, especially for local banks. They generally move small sums through simple transactions. This category in the main includes small operators and employees.

4. Potential customers: this category of customers is the one that has little or no banking knowledge. They rarely access banking services and, although they need the bank, they prefer to use alternative channels. They often miss the opportunity to make a profit and do not implement economic initiatives due to a lack of knowledge of the bank and the products offered.

Following this series of observations, it was realised that, if the bank needs to relate to the market in order to best serve it, the bank should also attempt to: 1. optimise the use of its productive factors, that is, of all the factors that the bank uses in the development and sale of its products/services to its reference market; 2. provide the most effective response to the market where there is the need for a product/service ; 3. always maintain full control over its market, delegating to other subjects only when such can improve its services, and without exposing itself to attacks by the competition, whatever this may be.

Based on these guidelines, it was then observed that, as far as the use and

exchange of cash are concerned, other economic operators also use this type of tool.

In fact, all socio-economic situations, at all levels, feature the presence of essential services. Shops selling food and basic needs, small retailers, tradespeople, and so on, due to the nature of their business, offer products in exchange for cash. In turn, having money available, after purchasing their raw materials, such subjects then need to deposit the excess cash in banking structures, in order to avoid the risk of robbery or so on. In summary, it can be stated that the market is made up of a high percentage of subjects who hold cash, as well as subjects who require cash. When looking at the typical bank customer, we can also say that when the customer requires money, he or she normally goes to the bank, which, after having checked his/her account balance, records the withdrawal from the customer's account (flow of information) and provides the cash by withdrawing the sum from the balance.

In the same way, when a customer makes a cash deposit, the bank, after having accepted the cash, records the deposit in the customer's account (flow of information). We can therefore see that these two typical banking operations involve not only the exchange of cash between the bank and the customer, but also a number of information flows, which see changes in the situation of the customer's account. The bank's information system is thus improved so as to maintain the complete history of events taking place between the bank and the customer.

From this, it is clear that if the bank could exploit a distribution network within its territory consisting of"MOBILE COUNTERS", that is, bank counters with appropriately trained operators, which handle the exchange of money and are connected to the bank in order to update its information system, the bank could then delegate to such operators a large number of minor transactions, without having to manage a large network of permanent counters and/or oblige its customers to travel to its own trading structures.

The bank could easily serve the needs of its customers where such needs are present, by bringing the economic subjects together and respecting their needs, limits, roles and potential.

This organizational model would free up resources and consequently allow greater attention to be paid to those groups of customers or transactions that require special attention and care, given their sensitivity, complexity or the sums involved in the operations of greater strategic importance.

Obviously, the introduction into the market of this type of counter would have a series of consequences both within and outside of the bank. The Bank/Market relationship would need to be revised in terms of implementation marketing, which, as far as the bank is concerned, would involve in-depth assessment and development in the following functional areas: 1. Commercial 2. Organizational 3. Information systems 4. Human resources 5. Distribution The thorough revision of the above-mentioned functional areas could lead to the involvement and co-operation of entities that are external to the bank, in order to better respond to the need to offer efficient and effective services, and thus create economies of scale.

The introduction by the bank of this new organizational model, which includes the use of the"Mobile Counter"not simply as one of the new ideas that are proposed every so often to a market that is always alert to new incentives, but rather as a coordinated and congruous response to the genuine objectives of efficiency and effectiveness, should lead to the thorough revision, from a marketing-oriented

perspective, of each of the five factors that interact in the Bank/Market relationship.

They are, in summary: 1. Product: segmenting, reclassifying and re-proposing suitable products in terms of complexity and economic importance through preferential distribution channels.

2. Place : implies the review of the permanent counter, highlighting the attitudes and high-profile specialisation of such and introducing a high level of flexibility through the"mobile counter". This will respond, without considerable structural costs, to the bank's needs at the first level, where such needs are present.

3. Promotion: the salesperson-teller takes on a decisive role as promoter, in addition to his or her institutional role.

4. Price: greater margins are created between the product's costs and revenues, due to the significant lowering of structural costs and the extreme simplicity involved in the sale of the proposed products.

5. Personnel: allows better use of this factor, distinguishing between and making preferential use of highly-specialised resources (within the bank) for all those operations channelled through the permanent structure, and less bank-dependent resources (outside of the bank) for those transactions which, due to their simplicity, standardisation and modest sums involved, could easily be performed using"mobile counters".

This model, in fact, introduces widespread flexibility, as it includes a number of differentiation factors relating to the five Ps mentioned above: 1. It aims to provide a simple, easy and efficient response to the primary financial needs of the following economic subjects: banks, operators and final customers, creating clear synergies between these.

2. It proposes easy, practical and standardised products, that are immediate to understand and simple to use.

3. It only involves transactions of modest sums, delegating to the contact with the personnel of the bank within the permanent structures all operations that, due to the sums involved, need to be treated with great care and in the way that is most appropriate for the situation.

Clearly, the subjects that are most directly involved in the introduction of this organizational model by one or more banks operating in the territory, are the bank itself, the intermediate operators that enter into the bank's production/distribution process, due to their role as financial brokers within the territory and holders of cash, and lastly the final customers. However, it is also worth mentioning that there are important returns for at least two other entities in the market: the country's Economic System and the Banking System.

In particular, the intensity of the returns provided will depend on the stage of evolution of the economy in which the bank operates. A modest yet growing economy may receive more benefits from the above-mentioned organizational model. Some of the many positive factors that justify the introduction of this new model for the subjects involved are briefly illustrated here below.

COUNTRY'S ECONOMIC SYSTEM. The introduction and the promotion of the model would lead to: 1. Strong growth in the opportunities to use the banking system, with rather limited costs and in extremely short times, reducing logistic difficulties and structural barriers.

2. The activation of an engine for the economy that would give specific impulse to all those economic activities in the lower levels of society, where such activities are stimulated to develop by the use, thanks to the simplicity of access, vicinity and limited costs, of banking services that would encourage the channelling of savings that are present in the market and not available due to the difficulty in accessing

the normal banking channels. There would be growth in disposable income and increased presence of resources, which could be used to create new businesses or provide stimulus to activities that are stagnant due to lack of financial means.

3. An increase in banking knowledge in the market, with consequent stimulus for the entire economy.

4. Growth in national wealth, with consequent increases in tax revenues and a multitude of connected macro-economic factors.

5. A reduction in crime, such as: usury, theft, robbery, etc.

6. An incentive for the growth of the cultural level of the population, with consequent exploitation of the best local potential.

7. An increase in available resources, with consequent development of the factors connected with the quality of life : wealth, education, security, public order etc.

COUNTRY'S BANKING SYSTEM. The introduction of this model, in particular in countries and/or territories with weak economies, would lead to: 1. The retrieval of lost resources, making these available to the entire system.

2. The possibility to access banking services even in those geographical and social areas that are more difficult to reach due to lack of road connections, or in small urban settlements, small towns, rural areas, micro-economic situations, etc.

3. Growth in the socio-economic role of the banking system, both at a local and national level.

4. Growth in the international visibility of the country's banking system, and improved simplicity in accessing the opportunities offered at an international level, for the individual banks in the system, and the national and foreign customers the bank deals with.

INDIVIDUAL BANK. The promotion of the"mobile counter"or POS, as proposed,

would lead to: 1. A reduction in structural costs for the same transactions performed. See general structure of the model's locations.

2. Better use of personnel for transactions with greater economic profit.

3. An improvement in customer relations. The bank reaches the customer by simplifying the use of its products.

4. An increase in the number of transactions performed and consequently an increase in profits.

5. Possibility to expand into new markets and new products.

6. An improvement in market position and customer loyalty.

7. An increase in the banking knowledge in the market, with a consequent increase in opportunities.

8. Smaller outflows of cash (daily accounting).

For the broker, that is, the operator of the"Mobile Counter" (B1).

Some reasons that may induce an operator to use the product offered as a broker, in addition to all the reasons shared with the typical bank customer, are: 1. Better liquidity management, obtaining cash from deposit transactions made by the customers, or reducing available liquidity following withdrawals by ordinary customers.

2. Attainment of profits by introducing into the business a new package of products/services that would increase the range of products offered.

3. Becoming a preferential customer for the bank, joining a reference panel for all the bank's innovative activities, and receiving timely updates on the new opportunities available on the market.

4. Opportunity to perform preferential banking operations using the available technology.

5. Improvement of image on the market, being a broker for a bank (prestigious economic subject).

For the bank's customer, holder of the smart card or credit card (B2).

Some reasons that may induce a customer to use the product offered: 1. Having a bank nearby, where it is needed and without wasting time or incurring travel expenses.

2. Access to the cash deposited for the cost of a bank withdrawal.

3. Deposit of money when available for the cost of a bank deposit.

4. No need to resort to expensive and risky operators.

5. Assisted and simple use of sophisticated, high-tech instruments.

6. No need to keep sums of cash, with the risk of theft.

7. Receipt of interest paid on savings.

8. Establishment of a business relationship with a banking operator.

9. Growth of banking knowledge and consequent increase in opportunities to use banking services.

10. Access to higher-profile products/services when required.

11. Avoidance of the risks involved in the use of automatic teller machines (ambushes with the aim of fraud).

SYMBOLIC ALGORITHM OF THE MODEL 5) Card inserted: initialisation phase (calls Phase counter).

10) Read card and go to Unit (Ila).

20) Enter Unit (Ila) and analyse card.

30) Card valid ? If yes, go to 40, if not, go to 130.

40) Enter Unit (Ilb). Identify user.

50) User information valid ? If yes, exit Unit (Ic), if not, go to 230.

60) Enter Unit (Ic). Perform input operation defined by New Bank/Market Organizational Model.

70) Transfer operation to Bank's"server".

80) Process input response from"server". Conclude operation.

90) Day end? If yes, go to 290, if not, go to 100.

100) Enter in standby loop until impulse input and continue.

110) Is the impulse a card inserted ? If yes, go to 5, if not, go to 120.

120) Process input function and go to 90.

130) Send cause to Bank's"server".

140) Analyse response from Bank's"server".

150) Fraudulent card? If yes, go to 160, if not, exit Unit (lb).

160) Invalidate card and create non-use code. Card to be returned to head office.

170) Warn that the"card is being returned to the head office"on the display and go to 90.

180) Go to Unit (lb) and test POS.

190) Is the POS defective? If yes, go to 200, if not, go to 220.

200) Record the failure.

210) Warn that the"POS is being returned to the head office"on the display and go to 90.

220) Warn that the"card is being returned to the head office"on the display and go to 90.

230) Data entry error? If yes, go to Unit (la), if not, go to Unit (lb).

240) Enter Unit (la). Increase the cpt E counter by 1 (number of erroneous attempts by the user).

250) Cpt E = 3? If yes, go to 260, if not, go to 280.

260) Invalidate card and create non-use code. Card to be returned to head office.

270) Warn that the"card is being returned to the head office"on the display and go to 90.

280) Perform new analysis, go to Unit (alb).

290) Balance the operations performed throughout the day with the Bank's"server".

300) Upload lost cards, daily summary.

310) End N. B. Cash transaction between bank customer and"Mobile Counter"operator. Followed by the bank balance operation.

Linear transaction entails the type B"customer requiring the bank to perform transactions that involve no cash exchanges but only information flows.

UNIT la/b, c = Priority processing of the POS system.

UNIT lla/b = Priority processing of the card system.