Aberash werke Alemu Acadamic attachment report at Bank of Abyssinia.pptx

it is a brief presentation of academic attachment at Bank of Abyssinia, include detail operation about the bank and lessons drawn from the attachment.

1. Internship Report Prepared by: Aberash Werke DR/MGT/62/15 At Bank of Abyssinia /Debresina Branch/ STBC SATA Technology & Business College Department of management

2. Background of the Organization Chapter 1

3. bank of Abyssinia is one of the private bank in our country was established on February 15, 1996 . the bank started it’s operation with an authorized and paid up capital of birr 50 million and Birr 17.8 million respectively. With only Started with 131 shareholders and 32 staff. BOA is the leading commercial bank in Ethiopia with 884 branches, 10.2 million active customers . BOA has contributed to Ethiopia’s economic and social growth by donating to various local projects like the construction of the Ethiopian Grand Renaissance Dam, the establishment of the Ethiopian cardiac center, the Ethiopian Rotary club , and the establishment of Ethiopian Women Traders Associations.

4. The bank also offer digital banking transfer from one BOA customer to other type of bank using mobile or internet banking. A customer can transfer up to 500,000 ETB through internet banking per day. BOA is the first bank to introduce this system to Ethiopia which makes it the leading bank of Ethiopia.

5. Provide full-fledged domestic and international banking services. Utilize qualified, motivated employees and modern technology. Practice socially and ecologically responsible banking. Ensure profitability and growth. Maximize value to all stakeholders through competent and digital services Mission To live up to the "Abyssinia " legacy ( ዝና / ስም )through continuous innovation . To become a leading ( ግንባር ቀደም ) commercial bank in East Africa by 2030 . Vision Mission, Vision, and Goals Goals Manage institutional transformation and risks effectively . Maintain price and exchange rate stability. Maintain adequate international reserves. Improve the soundness of the financial system. ü Create efficient payment system. Improve the currency management of the bank

6. 1.2 Organizational Structure & Governance Fig.1 organizational structure of the bank Branch Manager Manager Branch business Manager Branch operation Banking operation officer Junior officer Bank Trainee Cash Office Attendant Banking business officer Junior officer Bank Trainee

7. 1.3 Product and services of BOA 1 2 3 Deposit-Related Products & Services Digital & Specialized Services Adey (Women’s) Account: Discounts, free debit card. Afla (Youth) Account: Higher interest, loan benefits, retail discounts. Education Saving Account: For teens; higher interest, scholarship opportunities. Accounts for Minors: Managed by parents/guardians. Ordinary & Special Saving Accounts: Interest-bearing, accessible via multiple channels. Current Account: For daily transactions, operated via cheque and digital platforms. Customer Segments and users Agent Banking, Mobile & Internet Banking Card Banking, E-commerce, Gize Pay, Mamas Pay, SWIFT and MTO Services Enable 24/7 banking from anywhere.* Loan & Foreign Currency Services Corporate & Commercial Credit: For business expansion. Consumer & Mortgage Loans: For residents, NGOs, and the diaspora. Export & Import Financing: Supporting international trade. Retail Customers: Individuals for everyday banking. Corporate Clients: Businesses for loans, trade finance, and cash management. Government & NGOs: For budget management and project funds. Diaspora & International Clients: For remittances/ የመላኪያ አገልግሎቶች / & foreign currency accounts. Digital Users: Tech-savvy customers using apps and online platforms.

8. 1.4 Laws and leadership principles bank of Abyssinia /BOA/ The Bank of Abyssinia (BOA) operates under a clear set of laws and leadership principles that guide its governance, strategic direction, and organizational culture Legal identity and ownership structure Governance framework, including board responsibilities and shareholder rights Compliance obligations with the National Bank of Ethiopia (NBE) Risk management, internal audit, and financial reporting standards

9. 1.5 Key Branch Roles & Responsibilities Branch Manager: Overall branch performance, loans, marketing, community relations. Operations Manager: Staff training, customer relationships, operational reports. Chief Cashier (Teller): Face-to-face services, deposits, withdrawals, account management. Business Manager: Manages business bankers, coaches team, resolves disputes. Customer Service Officer: Handles inquiries, resolves complaints, processes transactions.

10. Chapter 2 Human resource management activities of BOA

11. Policy dev.t & Compliance Adherence to labour laws and ethical standards Training & Development Continuous skill development, digital literacy & banking tech. training Recruitment & Selection Identifying needs, attracting, screening fair hiring qualified candidates. Performance Management Appraisal systems linked to rewards and growth. Compensation & Benefits Managing payroll & salary structure ,Competitive pay, health insurance, retirement plans . 2.1 The Major Functions of HRM Employee Relations Maintain Positive work environment, conflict resolution. Succession Planning Identifying and preparing future leaders

12. 2.2 Employee Rights & Duties Employee Rights Fair compensation and safe working conditions. Freedom from discrimination and harassment. Entitlement to leave (annual, sick, maternity/paternity). Freedom of association and protection from unfair dismissal. Access to training and development . Employee Duties Uphold integrity, confidentiality, and ethical behaviour. Meet performance expectations and comply with policies. Promote teamwork and collaboration. Protect company assets and resources.

13. 2.3 staff recruitment, employment laws and regulations , and recruitment system Recruitment and selection process   Job vacancies are advertised internally Applications are screened and candidates are shortlisted. Interviews , assessments, and background checks are conducted The most suitable candidates are selected based on qualifications , skills and alignment with the bank culture. Job offers are extended and necessary documents is completed.

14. Transfer & Promotion 2.4. Employee Transfer , Promotion and demotion procedures Bank-Initiated: For career development, filling vacancies, or workload needs. Employee-Initiated: Applying for internal vacancies after one year in current role. Clear guidelines for approval based on job grade. Demotion Procedure Initiated for sustained unsatisfactory performance or disciplinary action. Process includes coaching and training before demotion. Decision authority varies by job grade (Director, CEO, etc.). 2.5 Contract-Based Recruitment Used for specific, time-bound needs. Requires approval from Chief HR Officer. Contracts specify duties, duration, and are legally reviewed.

15. Leave Policy Overview Annual Leave: 18 days + 1 day per additional year of service. Sick Leave: due to illness Up to 180 days per year with graded salary payment. Maternity Leave: due to birth 120 days (30 prenatal + 90 postnatal) + ETB 1,000 grant. Paternity Leave: 3 working days. Other Leaves: Mourning, Wedding, Special /court/, and Leave Without Pay Leave Scheduling & Management Scheduling : Planned annually via Oracle Self-Service; harmonized by supervisors to avoid workflow disruption. Approval: All leaves must be requested and approved through Oracle system before they begin. Accumulation: Leave can be postponed / ማራዘም / for 1-2 years for work-related reasons only. Compensation: Unused leave is paid out upon termination. 2.6. Leave and Leave Scheduling

16. Medical Benefits: Local: Full coverage at designated facilities. Foreign: Up to USD 10,000 + airfare for approved treatments. Spouse / አጋር /: 90% outpatient coverage. Insurance: Group Personal Accident insurance cover. Allowances: Housing, transportation, hardship, acting, and severance pay/ የስንብት ክፍያ / provident fund: የሙከራ ጊዜ scheme receive a 12% contribution from the Bank and contribute 6% of their gross salary. pension scheme: receive an 11% contribution from the Bank, while contributing 7% themselves . 2.7 Employee Compensation & Benefits

17. 2.8 Employee Compensation & Benefits Grievance Handling & Discipline Grievance Handling: Two dedicated committees: for Non-Managerial and Managerial staff. Process initiated through Oracle Self-Service. Decisions are communicated within 10 working days. Disciplinary Measures: Clear procedures for addressing performance and conduct issues. Focus on coaching and improvement before demotion or other actions.

18. Technology-Driven HR Platform : Powered by a modern, secure system (e.g., Oracle). Key Features Employee and Manager Self-Service (Leave, Grievances). Centralized database for records and documents. Automated workflows and approvals. Integrated reporting and analytics (e.g., Power BI). Benefits: Ensures scalability, security, and compliance with banking standards. 2.9 Human Resource Information System (HRIS ) of the Bank

19. CHAPTER 3 Quality Assurance & Control Practice at BOA

20. 1 2 3 4 Customer Satisfaction Measurement Corporate Governance Risk Management & Internal Audit Fraud Mitigation Performance Appraisal 3.1 Major Internal Quality Assurance Practices 5 Using SERVQUAL surveys (Tangibility, Reliability, Responsiveness, Assurance, Empathy) for digital and branch services. Assessing expected /unexpected losses; auditing procedure adequacy and compliance. " Temenos FiCrime " platform for real-time detection of digital banking fraud. Bi-annual (June & Dec) formal evaluations using structured instruments. Board Audit Committee oversees internal controls; Branch Operations Managers enforce standards.

21. The bank has a sufficient manpower to handle all tasks on the branch that is necessary for the effectiveness and profitability and it also has enough budget allocated for training, development and to ensure effective documentations of the branch. This practice mainly monitored by higher officials (district directors, chef directors and branch managers). 3.2 man power and budget 3.3 Performance monitoring frameworks of BOA Process Supervisors assign and verify business targets. Continuous two-way feedback is encouraged. System notifications ensure accountability .

22. Fair and clear assignment of responsibilities. Transparent compensation structure (salary, allowances, cash indemnity ). Oracle Web Clock: Mandatory sign-in/sign-out (morning, lunch, end-of-day). Leave & Time Cards: All leave and overtime requests submitted and approved via Oracle Self-Service. Oversight: Operation Managers verify all inputs. 3.4 Payment & Workload Assignment 3.5 Staff Time Management

23. 3.6 Feedback and Grievance Handling Customer Feedback Toll-free Contact Center ( 8397 ) Email: [email protected] Complaint books at branches. Employee Grievance Two Committees: For Non-Managerial and Managerial staff. Process: Initiated via Oracle; managed by dedicated secretaries. Reporting: Quarterly reports on all grievance activities.

24. Temenos Infinity: Digital banking platform for retail & SME services. Oracle Banking Platform: Core banking operations and process innovation. NewgenONE : End-to-end automation for retail and SME loan origination. NetGuardians : AI-powered, real-time fraud detection and prevention. Path Solutions iMAL : Powers Sharia-compliant "Ameen" banking. Digital Kiosks: ITMs and virtual machines for cashless, paperless services. 3.7 Core Software Technologies Oracle Banking Platform

25. 3.8 Meetings and Seminars in BOA • Supervisors and employees discuss performance plans before each appraisal cycle. • Sectors and Departments communicate strategic goals to Supervisors who cascade them to teams. • Supervisors must hold planning discussions within five working days after targets are set. • Discussions include leadership expectations, business goals, employee feedback, and readiness issues. • HR Business Partners ensure completion within ten working days. • Goals and performance contracts are agreed and reviewed via the Oracle system. • Contracts include employee data, performance expectations, and appraisal frequency.

26. • Supervisors regularly review progress toward goals and values; formal reviews are quarterly. • Reviews are based on direct observation and recorded data. • Notifications for quarterly reviews sent ten days before each cycle ends. • Managers use Oracle to schedule and document meetings and ratings. • Reviews cover quarterly ratings, behavioural targets, and development plans. • Employee feedback and supervisor approval complete the appraisal in Oracle. • Reports are prepared daily, weekly, monthly, quarterly, and annually. 3.9 Performance Review Appraisal techniques 3.10 Work Plan Reports Sample deposit amount report Sample percentage share deposit

27. 3.11 Competency / ብቃት / & Talent Development Foundation : Competency-based HR system (Knowledge, Skills, Behavior ). Key Processes Competency Gap Assessment: Conducted every 2.5 years to identify training needs. Training Calendar & Curriculum: Developed based on gaps and approved by management. Annual Training Plan: All employees expected to attend at least one training per year .

28. C HAPTER 4 Accounting Records Management at BOA

29. 4.1 Major structures and functions of finance office of BOA finance office structure of BOA Chief finance offices Treasury/ ግምጃ ቤት Dep. Financial Accounting Dep. Strategy & Research Dep. Marketing Dep. Share & investment Division Chief Finance Officer: Provides overall financial leadership and strategy. Treasury Department: Manages liquidity, cash flow, and funding. Financial Accounting Department: Handles bookkeeping, reporting, and audits. Strategy & Research Department: Develops strategic plans and conducts market analysis. Marketing Department: Promotes products and manages brand positioning. Share & Investment Division: Manages investment portfolio and shareholder relations.

30. 4.2 Sources of income and expenses of BOA Sources of Income (Revenue Streams ) Interest Income from Loans: The largest source, from customer loans and advances. Service Fees & Commissions: From transfers, ATM use, account maintenance, and trade finance. Foreign Exchange Gains: From currency exchange and international trade services. Investment Returns: From government securities and other financial instruments. Other Operating Income: Digital banking charges, penalty fees, etc. Expenses Breakdown Interest on Deposits (35.6%): The cost of funds for lending. Salaries & Benefits (33.7%): Investment in our human capital. General & Admin Costs (21.5%): Rent, IT, utilities, and operational upkeep. Reserve Deductions (9.1%): Provisions for loan losses and regulatory compliance.

31. 4.3 Modern Payroll & Allowance Systems Digital Payroll System Powered by Temenos Infinity . Enables bulk salary payments and multi-tier approvals for corporate clients. Key Employee Allowances: Cash Indemnity: For staff handling cash. Transportation/Fuel: Based on position. Housing & Hardship: For permanent staff and those in outlying branches. Acting Allowance: For temporary assignments to higher roles. Overtime Payment: For eligible non-managerial staff.

32. 4.4 Withholding Tax & Pension Contributions Provident Fund Scheme Bank Contribution: 12% of gross salary. Employee Contribution: 6% (deducted from salary). Pension Fund Scheme Bank Contribution: 11% of gross salary. Employee Contribution: 7% (paid to government). The Financial Accounting Department manages all payments based on HR instructions. Balance Sheet: Snapshot of financial position (Assets, Liabilities, Equity). Example: Total Assets of Birr 222.30 billion (June 2024). Income Statement: Shows profitability over a period. Example: Gross profit before tax of Birr 5.28 billion (2024). Cash Flow Statement: Tracks cash movements (Operating, Investing, Financing). Loan & Deposit Reports: Details core banking activities. Example: Total Loans of Birr 167.74bn; Deposits of Birr 192.51bn (2024). Annual Financial Report: Comprehensive summary for stakeholders. 4.6 Key Financial Records & Documents

33. Main Allowances Cash Indemnity: Up to ETB 900/month for cash handlers (half paid, half saved). Transport/Fuel: Based on position; may include car; adjusted monthly by fuel price. Representation: For managers; paid monthly, including during leave. Housing: For permanent staff; continues during sick leave; aligned with acting position. Hardship: For remote postings; rate by distance & conditions; full pay unless on unpaid leave or suspension. Other Payments & Conditions Disturbance: ETB 2,000 + travel for bank-initiated transfers (none for self-initiated). Acting Allowance: Temporary assignment pay — managers get salary gap; others 25–75% of gap (max 9 months). Overtime: ≥15 min extra; on basic pay only; excludes managers and those on per diem/shifting. Travel & Per Diem: Travel costs covered (class by position). Per diem for assignments > 25 km; approval and documentation required. Over 30 days needs special approval. 4.5. Allowance and par-time payment

34. 4.7. Income & Expenditure Control Process Structured Process: All revenues and expenses recorded systematically in the AIS. Internal Controls: Monitor fund flow, prevent errors/fraud, ensure proper authorization. Ongoing Reviews: Regular reconciliations, audits, and management reviews. Key Outcomes: Financial accuracy , transparency, and support for effective decision-making.

35. C HAPTER 5 Property management practice at BOA

36. Asset Registration & Documentation: Maintaining a comprehensive asset register for accountability and compliance. Asset Utilization & Allocation: Efficiently allocating resources to departments based on operational needs. Maintenance & Upkeep: Regular servicing to prolong asset life and prevent disruptions. Asset Valuation & Depreciation Tracking: Providing accurate financial data for reporting and decision-making. Property Security & Insurance: Safeguarding assets against risks to ensure business continuity. Asset Disposal & Replacement: Managing the end-of-life process for obsolete assets. Audit & Compliance Monitoring: Verifying asset existence and ensuring policy adherence. 5.1 Core Functions of the Property Department

37. 5.2 The Property Procurement/ ግዥ / Process Needs Identification & Approval: Departments identify and get approval for asset requirements. Supplier Selection: Selection via quotations or competitive bidding for best value. Purchase Order/Contract: Issuing a formal order to the selected supplier. Delivery & Verification: The Property Unit inspects goods to ensure they meet standards. Payment Processing: The Finance Department processes payment upon verification. Asset Registration: The new asset is recorded in the management system for tracking.

38. The Bank of Abyssinia leverages stock market mechanisms and financial technologies as sophisticated tools for property management Using Real Estate Investment Trusts (REITs) to transform property into liquid assets. Securitizing mortgages into tradeable bonds to raise capital. Data-Driven Decision Making: Using market data from listed real estate companies for informed valuations and lending . Advanced Tech Integration: Blockchain for enhanced transparency and title management. AI (Artificial Intelligence) for automating valuations and collateral management. 5.3 Property Management Technologies

39. C HAPTER 6 The overall benefits gained from internship

40. 6.1 Why I Selected Bank of Abyssinia Proximity & Cost-Effectiveness: Selected the nearest bank to minimize transportation costs, as the college did not provide a budget. Safety & Stability: Chose a nearby location to mitigate risks and family concerns due to the prevalence of war in other areas. Digital Leadership: Attracted by BOA's reputation as a leading bank in deploying contemporary digital banking practices and technologies.

41. Core Banking Operations Customer Account Opening procedures (ID verification, data entry, system registration). Administrative Efficiency printing and scanning, Cash deposit and withdrawal processing . Lessons Gained: Practical Skills Lessons Gained: Theoretical knowledge Practical understanding of debit/credit in banking. Application of authorization processes and company rules. Improved self-confidence, speaking, and listening. & Learned to share ideas and respect co-workers. Understood the importance of punctuality, discipline, reliability, and integrity. Experienced both personal and professional ethical codes in action. Lessons Gained: Interpersonal Communication Skills Work Ethics

42. THANK YOU Reporter: XXX 20XX/XX/XX