The Lion Bank is a bank based in the country of Wakanda. It has a total of 65 branches across the country and also offers online banking (access to services via computer) and telephone banking (access to customer service agents over the telephone) to its customers. Recently, The Lion Bank also began offering its customers a range of mobile banking services, which can be accessed from customers smartphones and tablet computers. Its customer-base is made up of both private individuals and business customers. The range of services it offers includes: Current accounts Savings accounts Credit cards Business and personal loans Mortgages (loans for property purchases) Extracts from The Lion Banks Balanced Scorecard (BSC) are shown as below: Performance measure 2017 2017 Actual Target Financial perspective Return on capital employed (ROCE) 11% 12% Interest income RM75M RM7M Net interest margin (margin achieved on interest income) 24% 25% Amount of new lending to Small and Medium-sized Entreprises (SMEs) RM135M RM150M Customer perspective Number of first-time homebuyers given a mortgage by The Lion Bank 86,000 80,000 Number of complaints (per 1,000 customers) 15 2 Number of talking cashpoints installed for the visually impaired 120 100 Number of wheelchair ramps installed in branches 55 50 Internal processes Number of business processes within The Lion Bank re-engineered and simplified 110 100 Number of new services made available through mobile banking 2 5 Incidences of fraud on customers accounts or credit cards (per 1,000 customers) 3 10 Total carbon dioxide emissions (tonnes) 430,000 400,000 Learning and growth Number of colleagues trained to provide advice to SMEs 1,300 1,500 Number of hours (paid for by The Lion Bank) used to support community projects 1,020,000 1,000,000 Number of trainee positions taken up by candidates from Wakandas most disadvantaged areas 1,990 2,000 Number of community organisations supported (either through funding or by volunteers from The Lion Bank) 7,250 7,000 FBA/PAS3173/FEB18 CONFIDENTIAL/4 The Lion Banks vision is to be the bank that gives back to its customers and their purpose is to help the people and businesses of Wakanda to live better lives and achieve their ambitions. In order to achieve this, the banks values are stated as below: 1. Putting customers needs first, which involves anticipating and understanding customers needs and making products and services accessible to as many customers as possible. The Lion Bank has recently invested heavily in Information Technology (IT) security to prevent fraud and also invested to make more services accessible to disabled and visually impaired customers. 2. Making business simple, which involves identifying opportunities to simplify activities and communicating clearly and openly. 3. Making a difference to the communities they serve, which involves primarily helping the disadvantaged and new homeowners but also supporting SMEs and acting fairly and responsibly at all times. Required: a. Explain why the BSC approach is more useful to measure performance for The Lion Bank than a traditional approach using solely financial performance measures. (4 marks)