GOOD BANKING PRACTICES OF THE CBAO

The Homework of the Option group: Banking and Insurance MBA1

Introduction

The bank CBAO (banking company of West Africa) was born from the merger between the
Compagnie Bancaire de l 'Afrique Occidentale and Attijari bank Senegal. Created a century and
a half ago, in 1853, the Compagnie Bancaire de Afrique Occidentale (CBAO), called at that
time Banque du Sénégal, is the oldest bank in West Africa. Banking practice, it is one of the
best banks in West Africa. By promoting transparency and the daily renewal of a climate of
trust between the bank and its customers, it can be more efficient on the market.

The CBAO performs several banking operations with its customers, scrupulously respecting the
good banking practices published by the Central Bank (BCEAO) which regulates this sector. By
putting in place a number of legislative provisions as well as by guidelines and regulations
issued by the supervisory authorities.

Aminata being a cashier at the CBAO provided us with the necessary information in relation to
the good banking practices that the bank performs daily with its customers; which allowed us
to make a comparison with the Dutch bank. And, we added some operations which were
indifferent.

A. Banking operations

The CBAO carries out almost the same banking operations as the Dutch bank.

The CBAO to carry out its banking operations, it recruits highly qualified personnel in the
various fields of banking; which allows it to attract more customers and ensure a climate of
trust. It places particular emphasis on safeguarding the position of its depositors. In the event
of a dispute between the bank and its customers, it finds suitable solutions to resolve the
problem.Despite this good CBAO practice, it does not provide continuous training for its
executives and the incentive bonuses are not satisfactory, which seriously affects the
profitability and reliability of its services.

We propose to the CBAO, to ensure the continuous training of its executives because the bank
is a sector which evolves very quickly and the continuity of the training of its personnel allows
to have a more dynamic and production team.

B. Customer relations

The CBAO applies and respects the same client services as this Dutch bank. The CBAO's
account manager is responsible for developing a client portfolio (artisans, traders, liberal
professions, individuals, etc.) and monitoring the accounts of its clients. Role is not only to
advise but also to build Customer loyalty. The bank will not refuse a Customer Relationship
on discriminatory grounds. The bank will inform its client of the alternative services adapted
to the client's needs And the client will be free to select the desired services from the service
of the portfolio bank.The CBAO also makes online services available to its customers, which
will make it easier for them to have the status of their accounts and the various transactions
carried out at all times.

C. Customer due diligence

The CBAO applies the same system to know its customers and the source of their funds. Like
every bank has a legal obligation to know its customers. The bank obtains the necessary
information on the operations, the Financial situation and the use of the banking services of a
customer, and in addition on the structure of company and the owners of customers of
company. To collect information from its customers, the CBAO submits the following
documents to its customers:

• Bank Identity Statement (RIB): allows you to find out the full details of your bank
account. When you communicate it to a customer or a supplier, the latter can make transfers
to your account. However, it will not be able to make a debit from your account.

• The specimen signature: is a Reference signature to which must correspond that which
appears on a document, for example a check. This document makes it possible to authenticate
the orders given by the customer through these various operations.

• Account opening: the client must provide documents such as, passport or identity card,
water bill, certificate of residence and identity photos

• Proxy: this is a document which authorizes its customers to give orders to a third party
to carry out transactions on their behalf.

D. Bank secrecy

At the level of the CBAO, all personnel are required to keep professional secrecy.
Professional secrecy is the prohibition imposed on those who are subject to it to disclose the
information in which they have been the custodian. But professional secrecy can not be set
up against the authorities of the central bank and the court of justice. No information
concerning a client may be disclosed to third parties except with the client's authorization or
at the request of persons authorized by law to obtain this information.

E. Basic banking services

The CBAO offers the same services as the Dutch bank; it makes several basic services
available to its customers because with out its services there will be no talk of the existence
of a bank. Basic banking services are the minimum services that any bank account must at
least offer. In general, only accounts opened through the legal or account process, or the
offer to fragile customers, include only these services. She has the full right to refuse to
offres her service to any client whom she finds inappropriate.

Some services that the bank can offer to its customers:

•Account opening
•Savings account

• Bank transfer

• Bank direct debit

F. MARKETING AND SERVICE CONTRACTS

The CBAO does not apply the same system of marketing services to its customers. As soon as
a new product exists, the bank informs its customers through billboards that give a true
picture of the bank or through the media (radios, televisions) to meet the needs of
customers. The bank can set up sales agents who will convey information in a clear, precise
and limpid manner by going door to door to explain the characteristics of the product to
customers.

G. The payment service

The Dutch bank performs the same payment service as the CBAO, by setting up the secure payment
services associated with the PIN code. In the event of an error found in the various transactions,
the bank can cancel the transaction and make the correct entry.

The different means of payment that the CBAO makes available to these customers are:

• Depositing or withdrawing cash on a payment account,

. Transfers and direct debits,

. Card payments,

. Money transfer services,

. Mobile payments,

. Payments by check or commercial paper.

H. Loan services

It is the same loan granting strategy as the Dutch bank but at the level of the CBAO, it puts a
particular emphasis on the agents in need of financing who come to it to request the loan
then before the bank grants credit to the customer it first ensures the solvency of the
customer, that is to say the ability to repay the credit at maturity. The bank will take care of
the loan relationship with responsibility and with respect from the Financial security of the
consumer client.

The CBAO also puts the various products to its customers which are:

- School loan

- TABASKI loan

- Overdrafts
- Cash facility loans

The bank makes all of its ranges available to the client.

I. Savings and investment services

The CBAO works in the same way on the stock market and in a savings account as the Dutch
bank. It clearly explains to the client the expenses, the conditions of investment; long or short
term and the risks to the client before investing in the market.The bank will provide the client
with information on the choice of savings and Investment forms, their terms and conditions,
as well as returns, risks and expenses Investment. The bank provides investment services in
an honest, equal, Professionally and in the best interest of the client.

Before offering investment advice or asset management services, the ban In order to
recommend to a client suitable financial instruments and services, ask Sufficient information on
the client's financial situation, his investment experience, Investment knowledge and
objectives.The bank must provide the customer with timely and Adequate information to
support their decision. This includes, for example, information about

The investment service provider, the content of the investment service, the costs of the service
And the essential cost and risk base of the service.The bank performs the missions of the
client and manages all the assets entrusted to it by the client with due diligence in accordance
with the respective agreement between the bank and the client.

J. The use of a power of attorney

This practice of the Dutch bank is totally different from that of the BCAO

The power of attorney at CBAO is a document which puts one or more people called agents in
touch with one another, this power of attorney allows the account holder to give orders to
their bank or the third person to make the movement in their account in their name. And,
under no circumstances can the bank (CBAO) refuse to honor the proxy of its client.

K. Customer Feedback

It is the same system as the CBAO bank which responds instantly to the concerns of its
customers and also responds to complaints from its customers within a reasonable time. It is
thanks to its customers that the bank operates so it must ensure the speed of service request
by the customer to finally install a climate of trust and this will strengthen customer loyalty
because the Senegalese market is saturated with banking institutions.

The bank has a website that allows them to interact with customers.

In conclusion

The good practices of a bank allow to establish a climate of trust and guarantee the loyalty of
its customers, the Dutch bank being an example by place but it omits several banking
operations which we judge as being good banking practices including the bank CBAO take in
consideration .What makes it one of the best banks in West Africa .

The members of the BANKING AND INSURANCE group

MBA1

1-Alsény kallo
2-kassi affala

3-Aminata sow

4-Ibrahima Ngom

5-Vanessa Douampo

6-Dana Aboubacar Magassouba (Ingénierie financière)