Barclays Bank: History, Business Operations, Strategic Developments, And Key Performance Indicators

Brief history of the Bank

Discuss about the Barclays bank and his features.

-A breif history of the bank

-an anaylsis of its business operations

-strategic developments

–key performance indicators

-predictions for the future

Barclays bank is a multinational banking and financial entity based in London. The bank was established in 1690, and its founders include Thomas Gould and John Freameand its current CEO is Jes Staley (Home.barclays 2016).

Initially, Barclays was introduced as a goldsmith banking business in London.  In the year 1981, it became the first ever-international bank to form a partnership with the Securities and Exchange Commission in Washington (Morris 2012). In the year 1869, many prominent banks in London which includes Backhouse’s Bank and Gurbney’s Bank came together to form Barclays and Co.  The financial entity is listed in the London Stock Exchange. Mutua (2012) mentioned thati In the year 1995, Barclays acquired Wells Fargo Nikko Investment Advsiors, to add to the existing BZW investment management to form Barclays Global investors. This was an essential move in the context of existing financial industry in the UK , as it encouraged wealthy clients to make substantial investments (Evatt et al. 2015.). According to Adjei and Amofa (2014), to make further expansion globally, the bank  made a strategic  partnership with Intelnet Global  Services  to make investment in the thriving  business process outsourcing sector( BPO) .  To increase its revenue in the UK the bank purchased a website, which relates to offering loan quotes for prospective looking to invest in the real estate. Currently the bank is one of the premium financial brands operating globally.

Barclays Bank provides services in retail, investment banking, mortgage lending, wealth management and credit card to consumers globally (Gehrig 2015). The banks business is classified into four categories, which are- Personal, Corporate Investments Barclaycard, and Investment banking.  Barclays serves  30 million customers across 50 countries by offering superior  financial services related to lending, investment and protection of  monetary resources across 50 different countries. 

Its primary goals remain to maximize shareholders wealth. However Evatt et al. (2015) stated that , Barclays remain committed to undertake social responsibility initiatives in the financial domain. On the behalf of its valued clients, Barclay provide financial services related to payment and transferring funds , securing deposits, maturity transformation and lending, and services related to consultation and delivery in trading  and underwriting. In the financial services sector its major competitors include Deutsche Bank, HSBC holdings plc.

Analysis of its business operations

Wafula (2014) mentioned that the brand has seen a steady rise in profits in the last  three year by  10% annually. This profit include gains from acquisition of Lehman brothers and other major  financial institutions . However, the global financial crisis curbed the firms expected growth Iin the recent years.

Joint ventures and acquisitions remain the major strategic policies of Barclays to build a business sustainable model in the United Kingdom. According to Yu et al (2015), in the current financial year, Barclays made recruitment plans to increase its workforce by 10% to provide improved financial services to clients.  In addition, the brand seeks to double its existing current assets in the Asia Pacific. It is expected that these measures would increase its net growth by 5- 6 in the nest year.  Barclay’s wealth would consider enhancing its assets globally from $10 to $20   by 2017 (Radda et al. 2015). It is expected that his would assist the firm to capture larger market  share and attract prospective investor in UK , and developing  economies in Asia. Adjei and Amofa (2014) mentioned that the strategic policies adapted by the brand   in the Asia pacific region would assist investors in getting reliable financial services of a well-known brand in the context of the global financial crisis.  Besides, this would complement the global ambitions of the brand, in the face of intense competition from the Citi, Bank of America/Merrill Lynch and RBS.  

Strategic developments at Barclays aim to implement vital changes to the business models of Barclays. Mutuaa (2012) mentioned that this includes reduction in eth investment banking operations, as it shifts from being a trading –concern to an origination- concerned. According to Gehrig (2015), this alteration in business policies was made, as the brand has been struggling to match its revenue with other prominent financial entities in the market.  

In Barclays the risk function plays an important role pertaining to measuring and overcoming such attributes in the business. As such, provisions are made to deal with such risks of these factors fall into set standards of financial volatility in the organization.

Key performance indicators

The key performance indicators (KPI) reflects key indicator used in  the year 2015 , to measure organization growth  and market performance  as mentioned in eth balance score card (Leekha et al. 2014). The balanced score card develops eight different and  specific commitment of Barclalys PLC across 5 varied segments which are- Consumers, Client, employee behavior and company in the coming 5 years

Strategic developments

Table 1: Key performance indicators

 According to Gehrig (2015), the strategic review is a long –term programme implemented in Barclay in the year 2014 to facilitate the long-term goals and objectives of Barclays Bank PLC. The following expectations can be made from Barclays Bank Plc over the next five years

Table 2: Predictions

In addition, the brand formed a new executive team, which deals with only service delivery to customers (Wafula 2014). Thus, Barclays service financial services offered to employees globally would improve in terms of authenticity and period of time (Caselli et al .2014). In the last year, the management implemented required measures for changing the business fortunes of Barclays in the coming decade. For this, business consolidation measures like de-risking and de-leveraging the business in the UK market (Mutua 2012). The brand aims to consolidate its primary business lines, to achieve 1.7 bn of cost savings by the year 2017, to reduce existing RWAs, liquidity and funding and establish Core tier 1 capital ratio of 10. 5 %.  Barclay realizes that the core component of the brand needs to remain intact. As such, the core components of Barclays are Culture, Rewards, Control and cost are consistently monitored, to deliver improved business performance to consumers globally.

Reference

Adjei, H. and Amofa, A.K., 2014. Assessing strategies for managing work related stress at Barclays Bank Limited, Takoradi. European Journal Business and Innovation Research, 2(2), pp.51-69

Caselli, S., Gatti, S. and Querci, F., 2014. Deleveraging and Derisking Strategies of European Banks: Business as Usual? (Vol. 1, p. 2014). Carefin Working Papers.

Evatt, G.W., Johnson, P.V., Glover, K.J. and Cheng, M., 2015. Capital Ideas: Optimal Capital Reserve Strategies for a Bank and Its Regulator.

Gehrig, T.P., 2015. Changing Business Models in Banking and Systemic Risk. In Management of Permanent Change (pp. 145-160). Springer Fachmedien Wiesbaden.

Home.barclays. (2016). Barclays | 325 years of banking expertise. [online] Available at: https://www.home.barclays/ [Accessed 12 Apr. 2016].

Leekha Chhabra, N. and Sharma, S., 2014. Employer branding: strategy for improving employer attractiveness. International Journal of Organizational Analysis, 22(1), pp.48-60.

Morris, T., 2012. Innovations in banking: business strategies and employee relations (Vol. 22). Routledge.

Mutua, A.M., 2012. Strategy and structure alignment at barclays bank of Kenya (Doctoral dissertation).

Radda, A.A., Uzodinma, I., Akanno, S.N., Isa, M.S., Abdulkadir, A.A., Abba, S.A. and Abdulmajid, A., 2015. Customer Relationship Management and Organizational Performance–The Case of Barclays Bank Plc. Studies, 4(4)

Wafula, E.W., 2014. Influence of corporate social responsibility on performance of financial institutions in Kenya: A case of Barclays Bank in Nairobi county (Doctoral dissertation).

Yu, X., Mitra, G., Arbex-Valle, C. and Sayer, T., 2015. An Impact Measure for News: Its Use in Daily Trading Strategies. Available at SSRN 2702032

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