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Relationship Between The Clients Knowledge and The Actual Products & Services Provided By SCB

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1.0 INTRODUCTION
Internship is a partial requirement of graduation. It offers a great opportunity for any student to get some tremendous and brilliant ideas about the practical field. It is also a challenging experience to prepare Internship Report which increases intellectual abilities as an efficient graduate. As Banking sector have emerged as the most important player of our economy and they also offer a passionate environment for career development so it was my premier objective since the very beginning of BBA program to accomplish internship in this type of financial institution. A develop banking sector plays a vital role for financial stability of a country. Standard Chartered Bank (SCB) is a multinational bank and financial services group that is incorporated in the U.K. with a unique international network. It now spans in the developed and emerging economies of the world, after having been in existence for 150 years now. I am very glad for getting the opportunity to accomplish my practical training in the Standard Chartered Bank at 67,G u l s h a n A v e n u e ; w h i c h i s t h e H e a d O f fi c e o f S t a n d a r d C h a r t e r e d B a n k i n B a n gl a d e s h . The internship program was carried on the Corporate Affairs department. The internship report has been based on the Customers perception about different product and services provided by Standard Chartered Bank. During the three month long internship period spanning form February12 to April12 in Standard Chartered Bank the writer of this report gained practical knowledge about the evaluation process of Customer Satisfaction a consumer product of SCB and worked on a project titled Relationship between clients knowledge on the services provided

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by Standard Chartered Bank and the actual services that are available by the bank for the customers. Here the analysis has been made on the service of SCB,
different product like Account; loan of SCB as a whole as well as a performance evaluation of SCB has been made to identify the relationship of the profitability of the bank and the contribution of the customer satisfaction.

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1.1 ORIGIN OF THE REPORT

This report has been assigned to me during my internship period at SCB by my organizational supervisor of SCB Mr. .., as a core requirement for the completion of my BBA program from North South University. My faculty advisor . has also given me approval to do this particular report on the topic of Relationship between clients knowledge on the services provided by Standard Chartered

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Bank and the actual services that are available by the bank for the customers.

1.2 OBJECTIVES

The goal is to identify the main reasons of client dissatisfaction and find its relationship with a clients level of knowledge about the banks services. In order to accomplish my goal I have identified one important observation and that is the relationship between clients knowledge on the services provided by the bank and the actual services that are available by the bank for them. Disparity in such cases often result in the most common forms of client dissatisfaction Satisfaction of these services depends on many variables but most importantly on two factors: 1. The level of service provided to clients as promised by the bank. 2. And the level of services expected by the clients. I have also tried to find out the following aspects: Finding out about the clients Clients level of involvement with the bank How updated clients are with banks services
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1.3 SIGNIFICANCE OF THE STUDY


As an institution, bank has been contributing towards the development of any economy for a long time and at the moment it is treated as an important service industry in modern world. Nowadays, the function of a bank is not limited within the same geographical limit of any country. Due to globalization and free market economy, this industry is facing severe competition. Most of the banks fail due to lack of proper strategic planning and goals. One of the major reasons of their poor performance is adaptation of traditional banking system. They are very much slow in adopting new product line, less concerned about attracting and satisfying customers and being reluctant to implement information technology. Thats why it is very necessary for each and every bank to evaluate its performance over the periods.

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Basically, this study is conducted to expose the way to find out the customers satisfaction level and know how to provide them better service. Different evaluating procedures and techniques have been followed to measure the customers Satisfaction. This study will establish that there is a basis why expectations and goals need to be aligned and why the misalignment causes unsatisfactory results. The goal of SCB is to satisfy its clients; therefore the bank needs to communicate to its clients about the services available to them by SCB.

On the other hand the clients need to be aware of what the bank is communicating to them. If the clients choose to remain uninvolved with their bank then their level of expectation will be very difficult to match as there would be no basis on those expectations. Client dissatisfaction arises based on their expectations supported by their lack of staying updated with information as provided by the bank. Hence the study is important as it will prove that when it comes to client satisfaction the clients are also as responsible in staying aware and updated on the banking services as well as the bank is responsible to deliver services as promised.
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1.4 HYPOTHESIS
With reference to all the above, therefore the hypotheses of this report are

Hypothesis 1:
H0: The level of customers satisfaction about the services provided by SCB is not positively related to the level of customers exposure about the banks service packages. H1: The level of customers satisfaction about the services provided by SCB is positively related to the level of customers exposure about the banks service packages.

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Hypothesis 2:
H0: Customers expectations of service dont matches banks service promise. H1: Customers expectation of service matches banks service promise.

Hypothesis 3:
H0: SCBs Customers are not updated of the banks services. H1: Customers SCBs Customers are updated of the banks services.

Hypothesis 4
H0: SCBs Customer involvement with the bank is not high. H1: SCBs Customer involvement with the bank is high.

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1.5 METHODOLOGY
In order to attain the objectives, collection of primary data was necessary apart from secondary data. The primary data is used to run tests and as such. Therefore the methodology included: Conducting a survey among 54 clients of the bank with more or less equal distribution between male and female. (appendix) Checking the data for noise Running tests based on the data generated. Give meaning to the results manifested by the test runs. Conclude on the hypothesis test.

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1.6 LIMITATIONS OF THE STUDY


The collection of data for this report has been difficult because It is hard to ensure the authenticity of the data. Even though the bank has provided numbers for the report, I have been informed that the data was distorted to a reasonable degree, due to security and confidentiality concerns of the bank which it deemed as inappropriate to disclose outside the bank. Hence, the validity of the information gathered is somewhat questionable. Finding suitable sample which will represent all customers of SCB. The sample of customers used to make judgment about the population may be biased. Satisfaction is a subjective issue and varies among individuals. Moreover, time for finishing this report has been another factor. Due to late working hours of the bank, most part of the report had to be completed after the intern period in the bank was concluded.
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2.0 SCB GROUP


Standard chartered is the worlds leading emerging bank, head quartered in London. Its business however has always been overwhelmingly international. The bank is currently operating in Africa, Asia pacific, America, Middle East, South Asia, and Europe.

Standard chartered expanded its network, and has an office in every country in the Asia pacific region. Standard chartered is now focused on providing cross border services to its Latin

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American core customer base, composed of multinational corporations, international financial institutions and large local corporations. In 1999, standard chartered acquired the global trade finance business of union bank of Switzerland. This acquisition makes standard chartered one of the leading clearers of dollar payments in the USA. Standard Chartered serves both consumer and wholesale banking customers, is well established in growth markets and aims to be The Right Partner for its customers. The Bank is trusted across its network for its Standards of governance and its commitment to making a difference in the communities in which it operates. With 150 years in the emerging markets the group has unmatched knowledge, understanding of its customers in its markets. Standard Chartered recognizes its responsibilities to its staff and to the communities in which it operates. Their 150 years of history gives them a deep better understanding of their markets, their customers, and the local communities in which they operate. It is a strong platform for future growth. Standard Chartered is holding leading positions in dynamic markets. They are in some of the worlds fastest growing markets including the United Arab Emirates, India, China, and the markets of South Asia. They are present in many of their markets for several generations and have became a trusted partner to businesses and individuals. In other words, they are trusted and well respected provider of financial products and services. They have built up an enviable knowledge of local markets in Asia, Africa, the Americans and the Middle East.

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2.1 HISTORY OF STANDARD CHARTERED BANK


The Standard Chartered Group was formed in 1969 through a merger of two banks:

andar fo nde an The Standard Bank of British South Africa founded in 1863, and Charte ustr tralia fo The Chartered Bank of India, Australia and China, founded in 1853.
Both companies were keen to capitalize on the huge expansion of trade and to earn the handsome profits to be made from financing the movement of goods from Europe to the East and to Africa.

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Chartered bank was established in 1853 by a Royal Charter granted by Queen Victoria of England. The main person behind the Chartered Bank was a Scot, James Wilson who had also started The Economist still one of the most eminent publications today. He foresaw the advantages of financing the growing trade links with the areas in the East, where no other financial institution was present that time widely. Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. Traditional business was in cotton from Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from Sumatra, hemp in Manila and silk from Yokohama Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869, and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf The Standard Bank founded in the Cape Province of South Africa in 1862 by John Paterson. It commenced business in Port Elizabeth, South Africa, in January 1863 was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there. In 1885 expanded in Southern, Central and Eastern Africa by 1953 had 600 offices. In 1965, it
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merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone. In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period of change. Provisions had to be made against third world debt exposure and loans to corporations and entrepreneurs who could not meet their commitments. Standard Chartered began a series of divestments notably in the United States and South Africa, and also entered into a number of asset sales. In the new millennium Standard Chartered Bank acquired Grindlays Bank from the ANZ Group and the Chase Consumer Banking operations in Hong Kong in 2000. In 2006, the bank made a number of acquisitions and strategic alliances that extended its customer and geographic reach.

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2.2 GLOBAL PRESENCE OF S.C. B.


Standard Chartered Bank has its presence in total of 50 countries. The global map of Standard Chartered is given below:

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2.3 KEY RESOURCES OF STANDARD BANK


Globally, the SCB group owns an array of key resources that include: A network of over 600 offices in 50 countries.

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A stuff of about 33000 people managing assets of around 47.65 billion pounds. Standard Chartered Bank's international business in personal Banking, Corporate

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Banking and Standard Chartered Markets are its special strength. Standard Chartered Bank also maintains correspondents relationship with over 600 banks in 157 countries around the world.

2.4 GLOBAL STRATEGY

At the global level, SCB operates with some key strategies that are quite unique to other banks such as: To build and grow strong businesses in Middle East, South Asia and Far East Asia.

Capitalize on the good track record created by its more than 150 years of operations in these regions by building unique position and image among the target customer segment and being responsive the needs and serve the needs better than the competitors. To concentrate operations in those activities that support Standard Chartered Bank's remarkable franchise in newly industrialized and emerging markets.

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2.5 OPERATION OF STANDARD CHARTERED BANK


Standard Chartered Bank has a strong presence in Asia, the sub-continent, the Middle East, Africa and in Latin America. They are a disciplined commercial bank focused on their core businesses of consumer Banking, Corporate and Institutional Banking and Treasury. Standard Chartered Bank is regulated by the Bank of England and is a clearing bank in the United Kingdom. The head office of the group is located at Standard Chartered PLC,1, Aldermanbury Square ,London , UK. The group operates through more than 600 offices in over 56 countries and has over 33000 people managing assets of over 47 billion pounds. In 1997, the Bank were ranked 94th in the world in asset size. Among them it has 239 offices in Asia, 33 offices in South &North America, 95 offices in Africa and one office in Australia. The global network of the bank is shown in the following diagram:

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Figure: Global Network of SCB(Source: SCB official document)

The bank aims to be the leading international bank in principal markets. It mostly concentrates on markets and businesses that they understand best. They provide high quality products supported by proven delivery systems and excellent customer service. SCB trains and develop people and exercise community responsibility. In this way, they will grow and add shareholder value.
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2.6 BUSINESS ACTIVITIES OF S.C.B.


The bank provides various products and services all around the world, some of which are mentioned here:

Global Consumer Finance


There are seventy-six branches and finance centers under this division in about the

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countries

with

workforce

of

1616

employees. Some of the services provided by this divisions are unsecured personal loans, credit cards and retail store cards, vehicle related leases, etc.

Personal Banking

There are about 410 branches with a workforce of 12000 employees working under this division in 28 countries. Some of the services provided by this division are various kinds of insurance and loans, account maintenance, travelers cheques and money exchange etc.

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Global Corporate Banking

There are 350 branches under this division. This division provides services in 4 2 countries. The services provided by this division are international Trade Management Institutional banking,

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Treasury, Custody and Cash Management.

Global Custodian Services


There are 17 offices under this division and about 900 staff members, operating in 14 countries and

headquarters in Singapore. Standard Chartered fulfills Standard Chartered Banks strategic commitment to

provide custody and clearing services in the greater Asia. Standard

Chartered Bank has one of Asias leading custodians over 40 years.

International Trade Management


Principal services of this division are to the people are import Letter of Credits (L/C), import bills for collection, Bank to Bank Letter of credit, Direct Export Bills for collection, Bulk Letter of credit Collection, Bonds and Guarantees.

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Global Cash Management


The division is operational in all countries where the group has Corporate &

institutional Banking division. Standard Chartered Bank recognizes the importance of cash Management to corporate and institutional customers range of and offers a and

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comprehensive

services

liquidity management.

Global Institutional Banking:


Through Standard Chartered Banks network of more than 600 offices in over in over 40 countries, it is very well positioned to provide a wide range of services to institutional clients: commercial, merchant & central banks; brokers and dealers; insurance companies; fund managers and others. Offices of emerging markets of Asia, Sub-Saharan, the Middle East and Latin America are complemented by the branches in the developed countries such as USA, UK and Japan and banks membership of the clearing systems in those countries. The Institutional banking group has a network of offices in 25 countries throughout Asia, North America, Europe, Africa and The Middle East.

Global Electronic Banking


Electronic Banking provides various types of support through a wide range of operating systems, sweeping transaction accessories with the provision of reporting features.

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3. STANDARD CHARTERED BANK IN BANGLADESH


3.0 HISTORIES ANDBACKGROUND The Chartered Bank started

operating in Bangladesh in 1948, opening a branch in Chittagong. The branch was opened mainly to facilitate the post-war

reestablishment and expansion of South

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and Southeast Asia. The Chartered Bank opened another branch in Dhaka in 1966, where it is still headquartered. After the merger of the Chartered Bank with the Standard Bank in 1969, the Standard Chartered Bank took up a program of expansion. In the year 1999 Standard Chartered has acquired the operation of Grindlays Bank in the Middle East and South East Asian countries. Former Grindlays Bank started its journey in Bangladesh in 1905 under the name of Grindlays Bank (when it forbears the National Bank of India opened in Chittagong). Standard Chartered Bank took-over the operation of ANZ Grindlays Bank in Bangladesh as a part of acquisition of South East Asian and Middle East operation of the Australia and New Zealand Banking Group. Standard Chartered Bank (SCB) become the highest bidder quoting about AU$ 2.5 bn (US$1.5 bn) after ANZ Banking group decided to sell its subsidiary. On June 2005, Standard Chartered formally announced that it has signed an agreement to acquire the commercial banking business of American Express Bank Limited in over a threemonth transition period ending 31 October 2005, all the assets and liabilities of American Express including customer deposits and loans, will be transferred to Standard Chartered. It is planned that American Express will cease to operate as a commercial bank in Bangladesh with effect from 1st November 2005 and all its branches and cash booths will be converted to the Standard Chartered brand and operating platforms on such date.

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3.1 PROFILE OF STANDARD CHARTERED BANK


Name of the Organization: Standard Chartered Bank Registered Address: 1 Aldermanbury Square London EC2V, 7SB. England. Bangladesh Registered Address: SCB House, 67 Gulshan Avenue, Gulshan Dhaka-1212.

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3.2 ORGANIZATIONS PHILOSOPHY


Philosophy at SCB is to lead the way in everything they do, ranging from our commitment to their people, customers and the community to working in harmony with investors and regulators.

3.3 VISION
Leading the way by providing best customer services. Brand promises baying the right partner.

3.4 MISSION
Become the worlds best international bank

3.5 BRAND PROMISE: BRAND

Here For Good


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3.6 VALUES VALU


Responsive: Standard
Chartered is good on their word. They are

accessible whenever and wherever the customers need them. Not only do they strive to deliver solutions, they also aim to exceed customers expectations.

Trustworthy: They respect the customers, and the life customers live. By
understanding customers needs and tailoring the right financial solutions for customers, they earn Standard Charterers trust.

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Creative: Creative thinkers are not limited by convention. They allow their minds
to soar beyond predictable solutions. That's how Standard Chartered approaches each challenge posed to the bank, which is why they base their products and services ideas that are innovative, perceptive and instinctive. on

International: They (SCBs) understand the balance between global and local.
Customers trust them to be established and internationally-networked, while at the same time sensitive to the customer individual needs. Their strong network across cultures helps customers build stronger relationships based on ideas, not formulae.

Courageous: A commitment to being there for customers, in good times and bad.
They help customers achieve their aspirations by guiding them towards the right choice, not just the easy one.

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3.7 OBJECTIVES
Based on their mission and vision, Standard Chartered has come up with few objectives, which they believe will help them reach their desired destination. They are:

Gaining a larger market share: Standard Chartered Bank currently has a quite
low market share of less than 6%. They want to increase their market share in the coming years.

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Provide technologically advanced services: SCB want to provide


technologically advanced services for the convenience of their customers. They were the first bank in the country to introduce Money link ATM cards. Now they have introduced Phone-banking, Internet banking and SMS banking.

Making banking comfortable and convenient for customers: SCB wants


to retain their customers by making customers feel comfortable while they are at the banking premises. For this reason they have arranged for adequate seating facilities.

Ensuring customer satisfaction: Standard Chartered Bank has made use of


different means of getting feedback from customers so as to understand their level of satisfaction, based on which they can take the necessary actions to ensure customer satisfaction.

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3.8 STRATEGIES:
Standard Chartered Bank has formulated some strategies to achieve their desired objectives. These strategies include

Promotional activities: Standard Chartered Bank is trying to achieve their objective of increasing their market share by engaging in promotional activities.

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Offering a very wide range of innovative products: Standard Chartered Bank wants to establish themselves as a strong brand name in the minds of customers. Innovative products such as evening banking, 24 hours ATM banking, 24 hours Phone banking, Internet banking, SMS banking, platinum credit cards, gift cards positive steps in this regard.

Introducing more convenient and comfortable means of banking:

The

innovative products offered by SCB have already made banking more convenient for customers. They have introduced token systems for customers who want to engage in cash and cheque transactions or want to make remittances.

Providing free gifts to customer who make more use of SCBs products and services: The Bank has made use of promotional strategies such as providing customers with free gifts like perfumes, shopping vouchers based on their use of credit card usage.

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3.9 PRESENT CONDITION OF S.C.B. in BANGLADESH


The SCB with its 26 Branches & booth and 93 ATM Center and 17 Financial Kiosks across Bangladesh has employed 1633 people. The acquisition of Grindlays Bank has enabled Standard Chartered Bank (SCB) to across 500,000 new customer and 40 branches in India, and this made them one of the biggest bank in this region. In Bangladesh now SCB is serving more than 3 lack customers.

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The Branches of SCB are in: DHAKA CHITTAGONG KHULNA SYLHET NARAYANGANG BOGURA

The network of SCB engages itself for providing best quality banking service in retail, commercial and corporate banking segments. The countries top Enterprises; Multinational, Local Corporation and Financial institutions are served by SCB. With total asset based of BDT 17.5 billion and annual turnover of BDT 1.78 billion, SCB in Bangladesh is among the top performing multinational bank.

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3.10 THE ORGANIZATION STRUCTURE ORGANIZATION


The Standard Chartered Bank in Bangladesh has its headquarters and twenty six branches across the country. While the full range of services is available at the headquarters, other branches offer specific services appropriate for the location. At the headquarters, the bank mainly consists of two divisions: BUSINESS & SUPPORT The Business Division has the following departments:

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Corporate Banking Group (CBG)


Global Markets (GM) Institutional Banking Group (IBG) Consumer Banking (CB) Custodial Services (CUS)

The

Support division provides assistance to the above business activities and consists
Operations Finance, Administration and Risk Management Information Technology Center Human Resource Department Legal and Compliance Corporate Affairs Credit

following departments:

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All the staff members of Standard Chartered Bank belong to an internal trade union known as "Standard Chartered Bank Employees Union" the clauses of which are reviewed and agreed upon every two years.

Chain of Command: Chartered Bank in Bangladesh follows a hierarchical pattern of command. The Bank in Bangladesh is headed by the Chief Executive Officer, who reports to the office of the Regional General Manager, Middle East and South Asia (MESA). All the department heads at the headquarters report to the CEO. The Organogram of the Standard chartered bank is given below:

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3.11 ACHIEVEMENTS OF STANDARD CHARTERED BANK


Since its inception, Standard Chartered Bank created a well-earned reputation among the banking sector by providing excellent services to its customers as. As a result within these fifty years it becomes the leader of foreign banking institution across the country. The reason behind its success and popularity is the innovative techniques and the excellent work force. SCB is always front-runner adopting in any latest technology in the world. Because it believes that innovative technology is a key asset for the future of banking. Our strategy is to invest in those systems that will enable them to upgrade and enhance financial services. Initiatives include the spreading of high quality transaction processing across the Group; the use of workflow technologies such as electronic imaging; the introduction of state-of-art Cash Management and trade products; and fully automated branch services. They are also harnessing technology to improve our risk management system and the internal process for sharing information, thus solving business problem and meeting customer needs in the first moving markets. While Standard Chartered Bank in Bangladesh is yet to be at forefront of many of these developments they are already recognized as the technological leader in the banking sector of Bangladesh for their following achievements: Standard Chartered Bank is the only bank with 24 hours automated Phone-Banking service. State-of-art ATM network running on unique platform. Usage of optical storage for retrieval of records on customers request. On-line real-time connection among all branches. Full-fledged back-up data center support. Only bank in the country to use inter-city VSAT link. Only Bank using automated jailing system. SWIFT communication for payment transfer. E-mail service network amongst all the branches.

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3.12 CUSTOMER LOYALTY


Achieving Customer loyalty is the prime goal of Standard Chartered Bank. Standard Chartereds aspiration to be The Right Partner falls in to this framework as well. Service providers are continuously striving to provide the best that they can possibly give to their customers so as to differentiate from competitors. SCBs customer loyalty attainment program involves the following intertwined and interdependent strategy:

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Intelligent Queue Management Quick Queue System SCB has developed a software solution system that will aid in trafficking people at the branches. The Quick Queue system of SCB helps to upgrade customer experience in the following ways: The system generates a token for teller service based on type of service (cash withdrawal or deposit, cheque deposit, credit card payments etc.) & the volume of service (below 50K. 50-100K, over 100K etc) The system automatically calculates the workload of available teller/CSO and the token is issued where the customer will experience the lowest possible queue. CSO/ Teller can view the number of people awaiting his service. BSSM can also view the current status and get a total picture of the floor thus being able to track individual as well as overall performance. Customers on receiving the token can go about their business without having to stand in queues. They can go for walk, look through brochures etc. The software system is connected to the central database through a network. It stores all the event information such as, total waiting time, total service time, arrival date and time, service category, teller id etc. these stored data are analyzed by an intelligent system and later used to make the prediction about the waiting time for future customers. These data are also used to evaluate the performance of the bank teller.
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Complaint Management Complaint Management is a key component in Voice of Customer design. Standard Chartered solves complaint by utilizing C-manager a robust program to monitor, resolve and track customer complaints/voice. Complaint management is also a key component of Relationship Management System.

RELATIONSHIP MANAGEMENT SYSTEM

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Complaint Management

E-Forms

S
Call Office Administrator

Figure: Relationship Management System (Source: News letter of SCB)

Benefits of Complaint Management: Seek complaint and customer feedback actively. Drive rapid service recovery. Minimize future complaints by eliminating root causes. Design a roadmap for reaching the group standards. Ensure action oriented reporting

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P R E P A R E D B Y Customer Improvement:

Standard Chartered always focuses on how to make transactions more satisfying, relationships more reliable, and partnerships increasingly powerful.

Explore

Agree

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S
Assure Deliver

Figure 3.4: The four stages of improvement (Source: Newsletter of SCB)

Explore: The domain of exploration, discovery and open-minded speculation. Both parties must engage with a commitment to mutual disclosure and the invention of new possibilities. Agree: Robust exploration leads to new opportunities for creating a future together. Initial requests, proposals and offers are often the first step towards mutually satisfactory agreements. Deliver: Take necessary action to fulfill promises and thoroughly execute agreements. Serve, develop, customize, manufacture, test, install, train, modify and provide promised training and support. Assure: Check to see if promises have been fulfilled, confirm that the customers needs have been actions have taken and finally find ways to work even more effectively together.

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VOC (Voice of Customer):


One of the major work streams of Customer Loyalty is VOC. VOC research is continuous effort, which helps in learning what customers have to say. After gather VOC, SCB trying to incorporate the customer response into viable products/services. For e.g. over the phone banking was a prime expectation of customers of SCB that fulfilled by Call Centre. Thus VOC helps in designing new products / services and ensures customer requirements. Ultimately this is what SCB require for staying in business profitably. At present full VOC initiative entails the following:

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VOC through customer complaint / feedback


VOC through customer suggestions VOC via sales and service personnel while they interact with customers VOC from third party such as, card merchant points, vendors etc. VOC from annual research by third party research firm.

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3.13 Service Excellence: From Customer Satisfaction To Customer Delight


Standard Chartered Bank maintains following mechanism in customer service excellence: Making customer feel important. Working fast & efficiently. Service with smile. Having adequate product knowledge. Handling objections efficiently and courteously. To conduct customer surveys to gather Voice of the customer and enable to gauge the current level of satisfaction with service. To assess present process capability and to measure key processes end to-end from a customer viewpoint. To set up Quality Council in each country where service and quality initiatives will be discussed and key measures monitored. Establishing service quality training.

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End Result: CREATING LOYAL CUSTOMERS.

Service excellence

SALES

RETENTION

Figure: Service Excellence(Source: Newsletter of SCB)

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3.14 COMMUNITY INVESTMENT OF S.C.B. BANGLADESH


Standard Chartered B a n k a l w a y s wants to have a broader positive impact on the communities in markets; the bank is committed globally to uphold high standards of Corporate Social Responsibility. There are many ways to be a force for good; globally as well as in Bangladesh.

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Under the Project Seeing is believing, Standard Chartered helps restore eyesight of the underprivileged. The fourth phase of seeing believes A New Vision aims to raise USD 20 million to develop comprehensive, sustainable eye care for 20 million people in less advantaged areas of 20 cities across the world, including Dhaka. In Dhaka, they have committed USD 1 million to Dhaka Urban Comprehensive Eye Care project that will serve over 270,000 visually impaired people. Standard Chartered Bangladesh has built an Operation Theatre and childrens Ward at Islamia Eye Hospital and provides for its maintenance since 2003.

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Through the programme Living with HIV SCB helps educate not only their staff but the youth in the communities about HIV and its prevention. They have organized eighteen seminars titled Confronting AIDS Challenge in the 21st Century in different universities and cities to spread awareness about HIV /AIDS amongst the younger generation in Bangladesh.

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They have also focused their efforts in the areas of history, culture and art, seeking to make a difference and surface little known events and artwork. Recent works have included publications of books such as Dhaka alias Jahangirnagar: 400 years; Street Traders of Bangladesh; Ekush; and Rare Photographs of East Bengal 1880-1940.

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Standard Chartered - The Daily Star Celebrating Life Contest is a platform for new talents across the country to pursue their artistic and career goals in Film, Photography and Lyrics.

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SCB also encourage development of youth through education scholarships and sports sponsorships including Governor Scholarship in partnership with Dhaka University

Economics Department Alumni Association (DUEDAA), Standard Chartered Young Tigers U -16 National Cricket Tournament, Standard Chartered School

Chess Tournament and Standard Chartered National School Kabaddi Tournament.

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They also encourage all corporate bodies in Bangladesh to uphold high standards of Social Responsibility. They recognize exemplary work in the field of CSR through Standard

Chartered - Financial Express Corporate Social Responsibility Award.

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With a presence in Bangladesh that spans over 100 years they believe Standard Chartered is very much a part of the heritage that make a partner in progress for the nation and its people. Standard Chartered committed to be here for people, here for progress, and here for the long run - Here for good.

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4.1 AN OVERVIEW OF BANGLADESH'S BANKING

ENVIRONMENT
The banking industry in Bangladesh is more than 600 years old. In 1970's Banking sector in Bangladesh entered into new era when the entire commercial banks and financial institutions were nationalized after the emergence of Bangladesh as an independent nation in1970's (except foreign banks) with fixed lending and deposit rates. In 1980's Two NCB s were allowed under private ownership. During this period government intervention and poor management resulted in large debt. Default, under capitalization and decline profit.

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S 4.2 ROLE
Bangladesh as a member of third world countries with a disappointed literacy rate of 24%, vast poverty range and peoples unconscious attitude toward savings and investment Bangladeshi banking sector has great role to economic enhancement.

4.3 TOTAL BANKS AND THEIR BRANCHES


The countrys central bank is Bangladesh Bank, which is a name of regulatory bank, controls and monitors the banking industry. There are 4 Nationalized Commercial Banks with 3616 branches, 28 privatized banks with 1214 branches, 13 foreign banks with 32 branches and 4development financial institution with 1177 branches, 4 specialized banks in Bangladesh.

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Currently the major financial institutions under the banking system include: o Bangladesh Bank o Commercial Bank o Islamic Banks (for interest free Islamic banking in adherence to the shariah, o Leasing Companies o Finance Companies o Merchant Banks Generally, the commercial banks and finance companies provide a myriad of banking products/facilities and services to cater to the needs of their customers. These include 24 hour banking, home banking (Tele banking via use of modems and phones) and general banking and service products. For customers convenience, such products are available throughout the bank branches in Bangladesh. However, the Bangladesh banking industry is characterized by the tight banking rules and regulations set by Bangladesh Bank. All banks and financial Institutions (Fis) are highly governed and controlled under the Banking Companies Act 1993, which lays out many restrictions, besides other guidelines. Among the many regulations imposed, Bangladesh Bank does not allow any FI to into bankruptcy or insolvency.

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4.4 REGULATORY ENVIRONMENT


Ministry of finance & Bangladesh Bank regulates the sector through monitory and fiscal policies.

MINISTRY OF FINANCE
Approves budget of NCBs---Provide operational policy guidelines for NCBs---Appoints the MDs and GMs of NCBs

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BANGLADESH BANKS
Set guidelines for banks---Has the authority to issue licenses for new banks---BRPD regulates deposits, advances, capital & reserves---DBOD looks after bank licensing & expansion. The range of banking products and financial services is also limited in scope. Besides all local banks are imposed with 5 percent Cash Reserve Requirement (CRR), which is non interest bearing and 15 percent Statutory Liquidity Requirement (SLR). This has given rise to higher cost of funds. With the liberalization of markets, competitive on banking products and financial

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services seem to be more intense and competitive. In addition as banking products that can be offered in Bangladesh are fairly homogeneous in nature due to the tight regulations imposed by Bangladesh Bank. Competing through differentiating the range of products offered is often difficult and not effective. Moreover, any innovative banking service launched is quickly duplicated by other banks such as ATMs, telebanking, online (real time) computerization bank branches etc. Hence, the key to establish a competitive edge in banking industry of Bangladesh is to provide better customer service quality.

4.5 PROBLEMS PROBLEMS


Debt default--Intervention in credit allocation--Low profitability--Inadequate legal framework-Distortion of interest rate structure--Low savings & investment REFORM PROJECT During 1991-1995 financial reform project was undertaken with the objective to: Assist government in monitoring policy reform Improve bank supervision & regulation Improve quality & level of training Computerization of Bangladesh Bank & NCBs Introduce modern banking techniques to NCBs

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4.6 ANALYSIS OF BANKING INDUSTRY


Banking industry in Bangladesh is characterized as a highly competitive and regulated sector. Market is reaching near saturation, with adequate banks already in operation, and upcoming few more. Hence, the market competiveness is increasing by day. The competition is even more fueled by deregulation of certain policies by the central bank, which allowed financial institutions to pursue more aggressive market penetrating financial packages. The products offered by financial institutions, now are more suitable for sophisticated and modern needs of consumers and businesses.

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FACTS
The number of branches of all the scheduled banks is 6,717. SCB: 3,383 branches DFI: 1,359 branches PCB: 1,922 branches FCB: 53 branches Pubali Bank is the leading private commercial bank Standard Chartered Bank is the largest foreign commercial bank. FCBs account for less than 10% of total industry asset, compared to PCBs having 51%.

Bangladesh Bank Annual report depicts four categories of scheduled banks currently operating in the financial sector: State-owned Commercial Banks (SCBs), Development Finance Institutions (DFIs), Private Commercial Banks (PCBs) Foreign Commercial Banks (FCBs)

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PORTERS 5 FORCES

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4.7 PORTERS 5 FORCES ANALYSIS:


Micheal E. Porters well-known framework, known as the five forces model focuses forces that shape competition within an industry. The stronger the five forces, the more limited is the ability of established companies to raise market share and earn greater profits. The influence of the five forces in the banking industry has been discussed below: Porters 5 Forces in Banking Industry of Bangladesh:

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FORCE 1: Threat of New Entrants Entrants


During the last 5 years, Bangladeshi Banking industry has undergone several changes in terms of its competitiveness. Several new PCB has commenced their business along with Foreign Banks, being attracted to the large and lucrative emerging economy of Bangladesh. Due to high rising income and more inclination towards consumption based spending, several banks have tried to capitalize over such consumer and business attitude. Private local banks such as Prime Bank, Eastern Bank, DBBL and Dhaka Bank, have outperformed many of the state-owned banks and are in par with the Foreign Banks. Among the foreign banks, Standard chartered, Bank-Alfalah, Citi NA and Commercial Bank of Cylon is thriving the market since their commencement. However, strong and long presence of SCB in Bangladesh has allowed to the bank to create a dynamic customer preference and brand loyalty, which has prevented much of the market share being siphoned by the PCBs. Nevertheless, in order for SCB to sustain its competitive advantage as First-Mover and high brand awareness, it needs to develop more innovative and aggressive financial products that could keep competition further off-site. Moreover, SCB has tremendous local knowledge and old partners in business and its network (both in Bangladesh and especially in the global market) is excessively large for other banks to compare. Thus, it will be exceptionally difficult for any new competitor to pose any serious threat to SCB Bangladesh.

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of FORCE 2: Threats of Substitutes


Upcoming competition is being severely intensified as both domestic and foreign banks are coming up with innovative product solutions to beat SCB at its own game. BRAC bank is already considered a huge competitor of SCB as they growing at a phenomenal rate. Other banks like EBL, DBBL are also offering competitive products. These banks are taking away some market share from SCB. As the number of competition is growing the threat of substitutes is also increasing. Moreover, in an era defined by blurring differences between banking and non-banking financial institutions, SCB will always need to be on the look-out for rivals emerging from a different horizon that might seem distant at the beginning. Microfinance institution is one example of a type of non-banking financial institution that has started eating up conventional banks share of credit in the overall industry. Although SCB Bangladesh has not been affected by this as the bank focuses on larger corporate clients (and has less services outside the capital city), other non-banking institutions might come up posing serious threat to the bank.

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of FORCE 3: Bargaining Power of Clients


The extent of bargaining power is different for the individual customers of personal banking and corporate customers. Since, deposits made by individual consumer clients are insignificant, compared to the amount of single deposit made by a corporation, consumers tend to have lowzero bargaining power in terms of return negotiation. However, owing to the large balance of corporate deposits, Corpoartions tend to enjoy more privilege form the banks. They are more entitled to banks special rate while depositing and borrowing transaction takes place between the organizations. Besides, wide variety of services and products which are offered by SCB is not likely to be offered by domestic banks and thus customers get little choice when it comes to special transaction on international par. Hence SCB continues to enjoy superior bargaining power over its customers.

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Force 4: Bargaining Power of Depositors


Cliental and corporate depositors are considered to be the biggest supplier for a banking institution. Their provided deposits are the source of fund that the bank reinvest in different assets in form of Loans and Advances, Securities and Repos to earn profit and sustain the business. The customers coming to SCB are able to afford the high charge rates applicable to them compared to the nationalized banks. So the bargaining powers of depositors are extremely high upon accumulation. Unless the bank can understand their needs, and offer them proper value-added services for which the customers are paying fees, the depositing customers can leave the bank, putting the bank in a financial insolvency.

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Force 5: Rivalry among Existing Banks


For the last 5 years, intensive competition is prevailing among the banks to increase their market share and drive out competition. Standard Chartered Bank became the giant with around 70% market share of the total foreign banks after successful acquisition of Grindlays and AMEX Bank. Moreover, other foreign banks such as Citibank N.A. and Commercial Bank of Ceylon are rapidly expanding their credit portfolio and thus can be serious competition for SCB. Existing local banks are also aggressively marketing their products and offering attractive lending and deposit rates, while at the same time opening up several valu-added services such as SMS, Internet and Phone-banking which can grab customers. Until recently The City Bank of Bangladesh has started offering American Express cards and products for exclusive customers. Such assertive activity can harm SCBs position (especially since SCB Bangladesh does not yet have its own credit card) in the future unless the bank reacts proactively to these competitors. To sum-up the industry condition, financial sector is active more than ever and the competition is being strengthened every year. It will be wise for SCB to start reacting and take action against its market position, if it intends to keep its title as one of the market leaders in the Financial Sector.

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SWOT Analysis
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Corporate Identity. Distinct Schedule. Efficient Performance. Empowered Work Force. Equalization. Management by Objective (MBO). Modern Equipment and Technology.

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Narrow Operating Span. Lack of Marketing activities. Conservative Product Offering. Lack of client confidence. Lack of Manpower.

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Large and growing market. Experienced Managerial Know-How. Strategic Acquisitions. Rise of e-banking. Increasing number of third party Outsource.

Strengthening Competition Policy reforms Changing preference of clients Default Culture

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Strengths:
A. Strong Corporate Identity: SCB is the leading provider of financial services worldwide and it is one of the top ten multinationals currently operating in the world. With its strong corporate image and identity, it can make better position in the mind of customers. This image has helped SCB to grab the personal banking sector of Bangladesh very rapidly.

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B. Distinct Schedule: Everyone in SCB from the appraiser to the top management has to work for the same schedule from a different aspect of the same goal, interfacing simultaneously at all level. This allowed efficient transfer of knowledge among the employees from top management.

C. Efficient Performance: SCB provides hassle free customer service to its client base comparing to the other financial institutions of Bangladesh. Personalizes approach to the needs of customers is its motto.

D. Empowered Work Force: The human resource of SCB is extremely well thought and perfectly managed. The top management believed in empowerment, which makes SCB a better place for the employees. The employees are not overpowered by authority, rather are able to grow as the organization matures.

E. Equalization: At SCB, workshops are conducted periodically. On the workshops, all people participate as equals, with new members free to openly challenge top managers. This allows for stronger idea generation and employee empowerment.

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F. Management by Objective (MBO): SCB also has Management by Objectives (MBO) everywhere. Each person has multiple objectives. All the employees must have to get the approval of their bosses on what they are going to do. Later they review as to how well they have performed their job with their management as well as in the peer group.

G. Modern Equipment and Technology: SCB owns the best banking and information
B Y

technology equipments in Bangladesh. Its ultra modern systems starting from terminal PCs to HUBs are based on the international SCB group standards and are the latest. The

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Hexagon product is one of the best examples in this context. Subordinate Strengths 1. Strong Employee Boding and Belongingness: SCB employees are one of the major assets of the company. The employees of SCB have a strong sense of commitment towards organization and also feel proud and a sense of belonging towards SCB. The strong culture of SCB is the main reason behind this strength. 2.Young Enthusiastic Workforce: The selection and recruitment of SCB emphasizes on having the skilled graduates and postgraduates who have little or no work experience. This type young and fresh workforce simulates the whole working environment of SCB, who can be trained and mould to support SCB strategy with their best performance i.e. SCB believes in Right Person at the Right Place. 3.No Communication Barriers: Human Resource Division has tried hard to avoid communication barriers and structural bureaucracies. He little existence of authoritative barriers among the different level of management stimulates a feeling of importance as their work get priority over the position. 4.Spread out risks: SCBs strong global presence helps it to spread risk and offers significant economies of scale. So since the bank is not dependant on its operations on any on economy, it means that if the need and situation arises, SCB Bangladesh can take funds from other more profitable operational areas of SCB to expand rapidly and market its products more aggressively to increase its hold in Bangladesh.

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Weakness
1. Narrow Operating Span: SCB has a very narrow operation span in Bangladesh. It has only few branches in Bangladesh. Various geographic segments are currently not availing the services of SCB due to inconvenient branch location or absence of neighborhood branches. The bank does not plan on expanding in upcoming months. 2. Absence of Strong Marketing Activities: SCB currently do not have any strong marketing activities through mass media e.g. Television, radio or internet. The only medium of transmission is through daily newspapers and bill boards. SCB currently does not have any plans to expand their marketing activities except some consumer campaign they hold. In a vast competitive market where every competitor is aiming to expand, SCB lack of marketing interest might prove losing costly market share 3. Conservative Product Offering: Another major weakness of SCB Bangladesh is the small range of products that are offered by the bank. Even today, the bank does not have products such as debit card and international credit card. In todays market, this can prove costly to the bank as competition is becoming intense and other banks are aggressively introducing new products to capture a larger chunk of the market. 4. Lack of Client Confidence: It is a widespread belief among Bangladeshi local consumers that if they deposit their savings or lend from a foreign bank such as SCB, there will be more hidden charges imposed by the bank relative to a local bank, and thus the customer will end up losing money. As long as this wrong belief persists, it will act as a hindrance to the prospects of SCB Bangladesh. 5. Lack of human resource: One of the main weaknesses of SCB Bangladesh is its lack of number of employees, particularly in the branches. In terms of the number of customers served per customer service manager, the situation is much worse for a foreign bank such as SCB Bangladesh rather than a local bank. The reason as to why this problem persists is not

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the banks inability to hire more employees, but in reality it is the fact that SCB does not have too many branches/offices and thus not much space to accommodate the required number of employees.

Opportunity:
1. Growing customer-base: Bangladesh has a very rapidly increasing upper-middle class and upper-class section of the community. SCB can take advantage of the increasing consumer-spending in Bangladesh, thereby earning more profits in the countrys operations. Besides growing consumer-spending, Bangladesh also maintains a very good investment climate which is resulting in new businesses setting up and expansion of existing businesses. SCB Bangladesh also can target these organizations to grow their client-base.

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2. More experienced and managerial know-how: The top management team of SCB is expert in banking activities. The operating policies established by them are unique and unified. All the members of the team carry out their management roles exhaustively. They equally contributed to SCBs superior leadership, by carrying out their unique roles. They worked well together, respecting each others abilities and arguing openly and without any rancor when they disagree.

3. Acquisitions: SCB is one of the experts in acquiring various firms and organizations. In Bangladesh it can also diversify quickly by acquiring various local banks and increase its total operation in Bangladesh rapidly.

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4. Prospects of e-banking: With Bangladesh Bank recently relaxing regulations on online banking transactions and allowing banks to provide enhanced e-banking services; this is a big opportunity for banks all over the country to rapidly capture a good chunk of this market. Perhaps with its strong internet backbone, SCB is in a better position than most rivals to avail this opportunity.

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5. More scope of outsourcing functions: Nowadays, several firms are opening up in Bangladesh and banks can outsource some of their tasks to these firms. For example, banks can now outsource tasks of their marketing functions to other firms that provide part-time contractual employees for the banks, thereby contributing to lowered operational costs of the banks. Call centre of banks is another common activity of banks which are now outsourced in Bangladesh.

Threats:
1. Strengthening competition: The upcoming private local and multinational bank poses a serious threat to the existing banking networks of SCB. It is expected that in the next few years more commercial banks will emerge. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against and win the battle of banks.

2. Pricing and charges: Although it is a policy of SCB Bangladesh to impose higher charges and pricing in order to maintain an image of prestige and brand, this policy might have to halted here as Bangladesh Bank tries to promote lower costs for the banking

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customers. Moreover, in an environment of intense competition, other multinational banks such as Standard Chartered Bank might also lower their charges and then SCB will be in deeper pressure to start charging less to their customers.

3. Changing preference of individuals: Due to Bangladesh Bank regulations capping the interest rate on bank loans, banks such as SCB have also reduced the interest they pay on different types of deposits in order to maintain a profitable spread. This has, in turn, induced many individuals to invest their savings elsewhere rather than keep it in banks, which might enable them to earn higher returns. The stock exchange is one very good example where people nowadays prefer to invest their savings instead of depositing in banks.

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4. Default Culture: This is a major problem for SCB that it is very new organization in Bangladesh, the problem of non-performing loans or default loans is very minimum or insignificant. However, as the bank becomes older this problem will arise enormously and the bank may find itself in a more threatening environment. Thus SCB has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem. Although the percentage came down to 13.23% in 2007 from over 41% in 1999, still it is much higher than the internationally accepted tolerable range and, thus, is a threat to our banking sector.

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CHAPTER 5 PRODUCTS AND SERVICES OF SCB


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5.0 PRODUCT & SERVICES OF S.C.B.


The products of Standard Chartered Bank can be classified under three headings:

Liability Products Assets Products Credit Card


Many other services and alternate channels also offered by SCB.

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5.1 LIABILITY PRODUCTS OF STANDARD CHARTERED BANK


All kinds of accounts are called liability product. Those are mentioned below:

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5.1.1 Savings Accounts:
The Savings Accounts are usually opened and operated by individuals to meet their future contingencies and also to enjoy the convenience of easy accessibility of money kept in savings account. Savings accounts are designed for the investment of the personal savings. Anyone looking for an opportunity to build a sound saving base can avail Standard Charterers Savings account, which includes the following benefits:

Free cheque-book, ATM card and phone-banking service Account access from all their branches in Bangladesh Opportunity to apply for- safe deposit locker facility, utility payment service through ATM and any of their personal finance products. A Savings Account can be opened by individuals, associations, trusts, clubs, charities, societies and other non-trading associations.

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Table 5.1: Product features of Saving Account Opening Amount Minimum Balance Requirement Tax Balance below BDT 200,000 Balance BDT 200,000-1,000,000 Balance Above BDT 1,000,000 BDT 200,000 BDT 200,000 10% of Interest earned Interest Rate 0.00% Interest Rate 2.75% half yearly Interest Rate 3.00% half yearly

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5.1.2 Extra Value Savings Account (EVSA)


Extra Value Savings Account (EVSA) is a high powered savings account targeted to people with a higher disposable income. It has all the features and benefits of the savings account and a few extra benefits available for EVSA.The special benefits in EVSA are:

Maximum ATM withdrawal Limit BDT 40,000 in a single day Personal Injury Insurance Coverage for 1 year up to BDT 1,000,000 Discount on locker charge Discounted rate for issuing Pay Orders, Demand Drafts, Travellers Cheques & Foreign Currency

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Table 5.2: Product features of Extra Value Saving Account Opening Amount Minimum Balance Requirement Maximum Insurance Coverage Tax Balance BDT 200,000-1,000,000 Balance Above BDT 1,000,000 BDT 300,000 Above BDT 200,000 BDT 1,000,000 10% of Interest earned Interest Rate 2.75% half yearly Interest Rate 3.00% half yearly

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5.1.3 VIP Savings Account (VIPSA)


This account is introduced recently in SCB. This account targets people with a high income. Its interest rate is also high. Interest is given on month end balance. Table 5.3: Product Features of VIP Saving Account Opening Amount Minimum Balance Requirement Interest Rate ATM Withdrawal BDT 500,000 BDT 500,000 Max 5% monthly BDT 60,000 per day

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5.1.4 Access Account


Access Account is a variant of the Savings Account. Standard Chartered Bank in its continuous effort to bring more convenience to its customers started this account targeting salaried employees, students and housewives. Like savings account it has the following attributes: Access is an account that gives interest on the deposit kept in it This account is for individuals only One can put his money in this account and earn interest on the idle funds and also

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use the funds when he needs it. Access is different from Savings in the following aspects There is no cheque book in this account. All the transaction done through ATM/Debit Card. No minimum balance fee and other minimum balance related charges. Annual ATM fee of only 150+VAT Opening balance is BDT 20,000 This account is ideally suited for salaried executives, housewives and students. People who may not be able to make time in their busy daily schedule to come to the bank during transaction hours are prime targets for this account. Organizations cannot open this account. Table 5.4: Product features of Access Account Opening Amount Minimum Balance Required to earn interest Tax Interest Rate Chque Book Facility 10% of Interest earned 2.75%-3.00% half yearly No BDT 20,000 BDT 100,000

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5.1.5 Freedom Account:


It is a type of saving account. Bangladeshi individuals with age limit between 18-40 years old can open this account. Table 5.5: Product features of the Freedom Account Opening Amount Minimum Balance Required to earn interest Tax Interest Rate 10% of Interest earned 5% BDT 25,000 BDT 25,000

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5.1.6 Graduate Account:


Graduate Account is an interest bearing Savings Account for ongoing graduate and postgraduate university / college students, who are at least 18 years old. The account will have Debit Card but no chequebook facility. SCB Graduate account holders enjoy automatic insurance coverage of BDT 1.0 lac (automatic built in feature) from the day of opening account with us, which is paid by the Bank as a special product benefit. Table 5.6: Product Features of Graduate Account Opening Amount Minimum Balance Requirement Interest Rate BDT 10,000 BDT 10,000 2% calculated daily but credited half yearly ATM Withdrawal BDT 5,000 per day

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5.1.7 Current Account:


Current account is an account on which cheques are drawn and to which credits are paid. It is a non-interest bearing a/c, it is also called checking account. Current Accounts suit the requirement of Businessmen, Joint stock companies, Institutions, Public Authorities etc. As they require numerous transactions on every working day, the banks do not pay interest on current deposit. Usually the loans and advances are disbursed through current accounts. Current account is suitable for: Individuals: Resident Bangladeshis, Non-resident Bangladeshis, Foreign Nationals residing in Bangladesh. Organizations: Sole Proprietorships, Registered Partnerships, Unregistered Partnerships, Public Limited Companies, Private Limited Companies, Clubs, Associations, Societies, Charities, Nationalized Organizations, Autonomous Bodies, NGOs.

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Table 5.7: Product features of Current Account Opening Amount Minimum Balance Requirement Tax Interest rate Cheque Book BDT 50,000 BDT 50,000 No tax is applicable No interest is paid Yes

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5.1.8 Islamic Current Account:


Current account is an account on which cheques are drawn and to which credits are paid. It is a non interest bearing a/c, it is also called checking account. The Islamic Current Account has the following features: Compliance with Shariah: The Standard Chartered Group has an International team of professionals with Islamic financial expertise dedicated to developing Shariah-approved financial solutions. The process of product development and Shariah review ensures that its Shariah Complaint Products are with in the guidelines for finance that are prescribed by the Islamic Law. There are no interest related charges on Islamic Account. The product features of the Islamic Current Account are: Table 5.8: Product features of Islamic Current Account Opening Amount Minimum Balance Requirement Tax Interest rate Cheque Book The facilities of the account are: 24- hours ATM services across the country. By subscribing SMS banking, account holder can also set account information through SMS. Phone Banking at Standard Chartered Banks 24-hour call center. Customer can pay bills from their Islamic Current Account without actually coming to the branches. Bills will be automatically paid by filling up an instruction form. The Standard Chartered Banks Islamic Current Account is all about flexibility and convenience. Customer can make withdrawals & deposits without any restrictions. BDT 50,000 BDT 50,000 No tax is applicable No interest is paid Yes

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5.1.9 VIP Current Account (VIPCA):


This product is recently introduced in the SCB. It is an interest bearing account. Interest is paid on monthly end balance. Table 5.9: Product features of VIP Current Account Opening Amount Minimum Balance Requirement Interest rate ATM withdrawal BDT 250,000 BDT 250,000 2-3% Monthly BDT 60,000 per day

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Foreign Currency (FCY)Current Account:


A Foreign Currency Current Account is a non-interest bearing account where the fund is not the local currency but a currency of another country (US Dollar, GB Pound). This type of account can be opened by the followings: Bangladesh nationals residing abroad. Foreign nationals residing in Bangladesh. Foreign firms registered abroad and operating in Bangladesh. Foreign missions, Expatriate employees of foreign missions or companies. Features of the account: These accounts can be opened with Zero balance, since, most of these account will receive inward remittance from abroad. Chequebook is issued in this account. It is the only FCY account where chequebook is issued. Customer cannot get interest in these accounts. Banks can pay interest only the deposits of FCY that is in the form of term deposits and must be for at least 30 days. No, there are no taxes on current account as long as the customer gets no interest. If customer gets interest, then he/she will have to pay 10% tax on the earned interest.
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5.1. 10 Resident Foreign Currency Deposit (RFCD) Account:


RFCD is an interest bearing foreign currency account. The funds in this account is kept as time deposit. These accounts can be opened by residents of Bangladesh with Foreign Currency brought in by the account holder from travel abroad. Customer Eligibility: People who are residents of Bangladesh can open this account upon their

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return from abroad. Since it is an interest bearing account, then non-Bangladeshis cannot open this account. Restrictions for operating a RFCD account Funds brought in from travel abroad can only be credited to these accounts. Export proceeds and funds from business deals generating from within Bangladesh cannot be put into these accounts. Deposits over USD 5000 or equivalent Foreign Currency have to have Form FMJ when crediting to the account. When Foreign exchanges are credited into these accounts, the depositor must submit a declaration saying when he returned from abroad and that the fund was not a result of any business deal generated in Bangladesh or from export proceeds.

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Table 5.10: Features of the RFCD Account Opening Amount USD 1000 or GBP 500 equivalent currency Minimum Balance Requirement USD 1000 or GBP 500 equivalent currency Interest rate Between 1.04 -1.71%

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5.1.11 Non-Resident Foreign Currency Deposit (NFCD) Account:


NFCD is an interest bearing foreign currency account. This account can be opened only by non-resident Bangladeshis (NRB). The special attributes of NFCD account: It is an interest bearing foreign currency account. Interest is paid in foreign currency. Interest in these account are Tax-free. Interest is payable at maturity.

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Customer can keep the fund in this account for more than 1 month; like 3, 6 & 12 months periods. People with dual nationality can also open this account. Foreign nationals, companies, firms, banks, financial institutions and EPZ units can open NFCD accounts. Minimum Opening Balance is USD 1000 or GBP 500 or equivalent currency for individuals. Funds, with interest, in these accounts can be freely repatriated abroad. There are no fees and charges in NFCD account.

Short Term Deposit (STD) Accounts or Call Deposit:


Short-Term Deposit (STD) is a deposit vehicle, which is: Fixed Interest bearing account The deposit is repayable at a fixed date or at demand

It is a non-transactional account. This account is suitable for those individuals and organizations that have a substantial amount of idle funds but those funds can be called into use at any time.

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Table 5.11: Product features of STD Account Opening Amount Minimum Balance Requirement Interest rate Chequebook/Debit Card Tax BDT 250,000 BDT 250,000 Between 2% and 3.75% No 10% on the interest

5.1.12 Fixed Deposit (FD) Account:


Fixed Deposit Account is the savings vehicle where customers keep their money: A fixed amount For a Fixed of Period For a fixed rate of interest. This rate of interest is usually higher than the rate offered in Savings Accounts. The features of the fixed deposit account are as follows: The minimum amount required to open an FD is BDT 100,000 FD can be kept for 1 month, 3 months, 6 months, 12 months/1year, 2 years & above. Interest rate on the FD is dependent on the time and the amount of the FD. Customers will not get any chequebook or any ATM card for FD. Automatically renewable. Interest is payable at maturity.

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5.1.13 Monthly Savings Scheme (MSS)


There are currently 3 monthly savings schemes. They are: Marriage savings scheme Education savings scheme Rainy day savings scheme Customers will buy units of these schemes. First they will make an initial deposit after that they will deposit a fixed sum every month based on the units they buy. Interest on all deposits will be calculated daily and will be added to the deposit at the end of the month. The scheme is for a fixed period. At the end of the period customers will get a fixed amount back. The facility is available in any of the above-mentioned three schemes for 3-year, 5-year or 10-year term only. To buy one unit of education, marriage & rainy day scheme customer need to deposit Tk. 10,000 at the beginning and a monthly deposit of Tk. 1000 till the maturity of the scheme. Benefits: SECURED: Monthly Savings Scheme offers customers an alternative to eliminate the uncertainties from their beloved children's life in case of their untimely death. If customers feel worried about their education related expenses, marriage or other contingency needs in their absence, SCBs Monthly Savings Schemes offer such customer perfect solution. SURE RETURN: Insurance Facility of Savings Scheme offers sure return to customers children or anyone selected by him as the nominee in case of unfortunate death before the maturity of the scheme. Customers nominee will receive the total amount (equal to the proposed Maturity Value for any particular scheme) no matter how much customer has paid.

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5.1.14 Personal Banking Plan (Excel Banking)


Excel Banking is an exclusive service of Wealth Management, designed to meet our customers evolving banking needs. Personal attention, preferential pricing and fast track services are just a few of the distinctive features that ensure our customers get the best out of their time and money.

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Objective Ensure retention, deepening and upgrading of the existing middle market customer

base, as well as new acquisitions. Act as a service differentiator within the core segment of customers across all products Liabilities, Cards, PL, Auto and BFS. Membership Membership to Excel Banking is complementary and offered to Standard Chartered customers who maintain a relationship value between BDT 1.5 million and BDT 2.5 million across various Wealth Management products.

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The facilities of Excel Banking are: Free personalized Excel chequebook Free Cashiers Orders up to BDT 50,000 Higher ATM/Debit Card withdrawal limit of up to BDT 40,000 per day Commission-free Foreign Currency Endorsement and issuance of Travelers Cheques 50% waiver on Debit Card Annual Fee for the first time 100% waiver on online (intercity) transactions 50% waiver on Processing Fee for OD limit 33% waiver on Locker Service Charge Invitation to the selected SCB sponsored events. Modern-banking services like Evening Banking Services, 24 hour call center, Internet Banking, SMS Banking, Auto Bills Pay facilities, 24 hour Bills pay Centres, etc. without paying any additional charges.

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5.1.15 Priority Banking


Customers having semi-annually BDT 3.5 million average balances in their deposit account will be eligible for Priority Banking Customers. Standard Chartered offers such customer special privileges like: Locker facilities at branches of Standard Chartered with preferential rates. Specially designed Priority Card that lets priority customer withdraw up to BDT 50k from any of Standard Chartered 25 ATMs located in 5 many cities. The following charge free banking convenience:

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Student files TCs/Foreign exchange issue Solvency/ Balance confirmation certificate P.O.s & D.D.s (on SCB location) upto Tk Instant fund transfer between cities and much more location. Customer can also take advantage of: A host of exclusive privileges and discounts offered at various retail outlets on food & beverages, apparels, fitness & other lifestyle products are available to priority customer just by showing Priority Banking Card. Complementary access to the Balaka Lounge at Zia International Airport and much more places.

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Priority banking is especially designed for people who appreciate the finer things in life. Priority customers will be able to satisfy all banking needs in an ambience of absolute comfort, privacy & luxury.

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5.2 ASSET PRODUCTS OF STANDARD CHARTERED BANK


All types of loans and advances are assets products.

5.2.1 Conventional Loan: 5.2.1.1 Personal Loan


It is a loan offered to individuals for some given purposes and is to be repaid by Equal Monthly Installments (EMI). Salaried employees of MNCs, Large Local Corporate bodies, NGO's, International aid agencies, UN bodies, Airlines are eligible for this type of loan. Government employees, businessmen and self-employed professionals can also get this loan. Since no security is taken, the income of the applicant is given prime consideration.

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The purposes for which Personal Loan can be availed are very particular. They are: House renovation Marriages in the family Advance rental payments Hospitalization or other emergency medical needs Trips abroad Higher professional or tertiary education/ professional training. Purchase of Miscellaneous household appliances.
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Table 5.12: Features of Personal Loan Loan Installment Minimum Loan Amount Maximum Loan Amount Interest Rate Processing Fee 12, 24, 36, 48, 60 BDT 60,000 1,000,000 13%-19% BDT 1000+15% VAT for loans equals to or above BDT 100,000/= 2% of the loan approval amount + 15% VAT for loans above BDT 100,000/=

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5.2.1.2 Auto Loan:


Auto Loan is a fixed loan facility given for the purpose of purchasing an automobile. The loan is secured by the automobile/vehicle. The Auto Loan is targeted for both Salaried Executives Businessman/Self-Employed Professionals

Eligibility Criteria for Salaried Executive: Minimum Age 23 yrs. Maximum Age 65 yrs but the duration of the loan must be end before his retirement age Minimum Total monthly income should be BDT 25,000. Nationality Must be Bangladeshi. Work experience Minimum 12 months continuous employment.
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Eligibility criteria for Self-employed Professionals and Businessperson: Minimum Age 25 yrs Maximum Age 65 yrs Minimum Total monthly income should be BDT 25,000 Nationality must be Bangladeshi Work experience 3-year of business age.

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Table 5.13: Loan Features of Auto Loan Loan Installment Minimum Loan Amount Maximum Loan Amount Interest Rate Processing Fee 12, 24, 36, 48, 60 BDT 200,000 BDT 2,000,000 15%-17%, 13% if 100% secured For loan 200,000- 400,000, BDT 5,000 For loan 400,000- 1,000,000 BDT 7,500 1,000,000 and above 1% of the loan amount .

Customers can get Auto Loan to buy reconditioned cars. The age of the car must not be more than 10 years at the end of the loan period. When customer taking the loan for reconditioned cars, it is important to be sure about of the brand and the manufacturing year of the car.

5.2.1.3 Flexi Loan:


Flexi Loan is a partially secured loan facility given for any legitimate purpose. The loan can be either partially secured or fully secured. The security for the loan should be in a readily encashable form.Flexi Loan is targeted for employees of reputed Local Corporates, Multinationals, NGOs, private universities, International Aid Agencies, UN bodies and Airlines, Government Employees, Self-employed Professionals (Doctors, Engineers, Chartered Accountants and Architects) and Businessman.

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Table 5.14: Features of Flexi Loan Loan Installment BDT 100,000- BDT 500,000 36 Installments BDT 500,000- BDT 1,000,000 60 Installments Minimum Loan Amount Maximum Loan Amount Interest Rate Processing Fee BDT 100,000 BDT 1,000,000 13%-18% based on readily encashable security For loan upto BDT 100,000/=, BDT 1000/= For loan above BDT 100,000/=, 2% of the approved amount

The purposes for which Flexi Loan can be availed are very particular. They are: House renovation Marriages in the family Advance rental payments Hospitalization or other emergency medical needs
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Trips abroad Higher professional or tertiary education/ professional training Purchase of Miscellaneous household appliances.

Flexi Loan cannot be used for business purposes like working capital and buying industrial machinery. But doctors, architects, CAs, engineers who have private practices can use this loan to buy their office machines, office equipments /accessories or office renovation.

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Eligibility Criteria: Minimum Age: 23 yrs. Maximum Age: 60 years Minimum Total Monthly Income: 12,000 Taka. Location: Must live in a city where SCB has a branch. Telephone: Must have either a personal mobile phone or a phone in residence. Nationality: Bangladeshi. For salaried person income is assessed through salary certificate and bank statement. SCB A/C holders have to provide latest 6 month's statement. Other Bank A/C holders have to provide latest 12 month's statement. For businessperson income is assessed through tax returns and bank statement. SCB A/C holders have to provide latest 12 months statement. Other Bank A/C holders have to provide latest 12 months statement.

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5.2.1.4 Business Installment Loan:


BIL is a partially secured loan facility given to any business concern for any legitimate purpose. The security for the loan must be in a readily encashable form. The loan amount is minimum BDT 12 lakh and maximum BDT 50 lakh. It is one of the oldest forms of banking products, where the bank lends the customer a principal fund and the customer pays off the loan (Principal + Interest) periodically (i.e. monthly). The target markets for this loan are: Small and Medium Enterprises in any sector other than the restrictions and exclusions

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outlined in the Product Development Document, and qualified by customer selection criteria. Professionals, for example, doctors, lawyers, teachers, etc.

Customer Eligibility: Age of business has to be 3 years or more. Business must have own / rented operating premises for alt least 2 years. Annual sales turnover has to be between BDT 60 lakh and BDT 60 crore. Consequently, annual pre-tax income has to be FBT 6 lakh. BIL can be offered to the customers for the following purposes: Long term working capital finance Asset finance (plant & machinery) Business Expansion Office premises renovation

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5.2.1.5 Cash Line:


Cash Line is a fully cash secured lending facility. It is intended to meet the emergency cash needs of the customer without unlocking his long-term investments. Fully cash secured means that customers can get this facility by pledging / liening a security that is either cash or can be very easily converted to cash. The securities that SCB considers can be easily encashed are ICB units, Wage Earners Development Bond (WEDB) and Fixed Deposit Account of SCB. To this end, there are 2 basic types of Cash Line a) Overdraft, b) Fixed Loan. Cash line Overdraft: It is a secured overdraft facility. The limit of the facility is 80% to 90% of the security value pledged to SCB. Cash Line Fixed Loan: It is an installment loan payable in monthly installment. Customer get cash line for any of the following purposes: House renovation Purchase of Personal Computer Marriage in the family Purchase of refrigerator Advance rental payment Purchase of furniture Trips abroad Office renovations Hospitalization or other emergency medical needs

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Higher professional or tertiary education/professional training Purchase of office equipment and accessories Purchase of miscellaneous household appliance. Table 5.15: Loan Features of Cash Line Minimum 12 months & Maximum 60 months BDT 80,000 BDT 5,000,000 Overdraft 7.75%-12% Installment Loan 9%-13% Processing Fee 1% of approved loan amount or BDT 2000, whichever is higher.

Loan Installment Minimum Loan Amount Maximum Loan Amount Interest Rate

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5.2.1.6 Mortgage Loan

Everyone has dreams of a sweet home. SCB helps make his dream come true by introducing Mortgage the best home loan. There are four types of Mortgage loan customer considering their profession and source of income. Those are: Salaries person, Self-employed professional, Businessmen and Landlord. SCB offers the following products:

Home Loan: Purchase dwelling for residence purpose. Home Credit: Purchase Subsequent properties for investment. Life Style Loan (LSL): Meet some urgent daily life expense. Take Over (TO): Transfer loan from current institution to SCB.

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Table 5.16: Loan Features Minimum Tenure Maximum Tenure HL HC LSL Minimum Loan Amount 36 Months Salaried 180M 120M 120M Business Self-emp 144M 120M 120M 180M 120M 120M Landlord 180M 120M 120M

BDT 500,000/= BDT 6,000,000/= HL 13.50%, LSL 14.50% BDT 25,000 & BDT 35,000 for salaried & businessman respectively and BDT 35,000 for self-employed person.

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Maximum Loan Amount Interest Rate Minimum Income

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5.2.1.7 Islamic Loan

Standard Chartered is introducing Islamic Personal Finance in Bangladesh for purchase of consumers durables with the convenience and flexibility to suit their needs. Islamic Personal Finance is a Shariah Compliant financing opportunity. It enables customers to finance durables and services in a Shariah Compliant manner.

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Features:
Complaint with Shariah: Islamic Personal Finance has been developed in consultation with & approved by the SCB Islamic Shariah Supervisory Committee which ensures that SCBs Shariah compliant Products are free of interest & with the guidelines for commerce, finance & investment that are prescribed by the Shariah (Islamic Law). Islamic Personal Finance under Murabaha mode: Islamic Personal Finance is designed according to the rules of Murabaha financing, an Islamic financial tool, which allows party A to purchase assets/goods from party B, pay for the goods in deferred payments. The condition is

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that party A should own the goods at the time of sale. The price of the assets/goods should be fixed at the time of sale & should not change subsequently. Customers can purchase durables & services from SCB at a fixed price. The customer can pay for the price of the durables & services in equal monthly installments. SCB will first purchase & services itself & then sell it to customers at a price, which includes a profit. No cash security required: There is no cash collateral requirement to obtain this finance. It means there is no requirement for submitting fixed deposit to Bank as security. Few documents from employer or guarantee from a reputed person (as defined by the bank) would suffice. There are types of loan under Islamic Finance: 1) Islamic Personal Finance 2) Islamic Auto Finance

Islamic Personal Finance


It is a finance offered to individuals for some given purposes and is to be repaid by Equal Monthly Installment (EMI). Salaried employees of MNCs, Large Local Corporate bodies, NGO's, International aid agencies, UN bodies, Airlines. Government employees, businessman

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and self-employed professionals can get this loan. Since no security is taken, the income of the applicant is given prime consideration. The purposes for which IPF can be availed are very particular. They are: House Renovation Purchase of Personal Computer, refrigerator, audio-video equipment or furniture Marriage in the family Advance rental payments Hospitalization or others emergency medical needs. Trips abroad Higher professional or tertiary education/ or professional training Purchase of miscellaneous household appliances Table 5.17: Loan Features of the IPF Minimum 12 months & Maximum 60 months BDT 60,000/= BDT 1,200,000/= 17.00% 1% of finance Approved Amount or BDT 1,000, whichever is higher. Income BDT 8500-BDT 12000

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Loan Installment Minimum Loan Amount Maximum Loan Amount Interest Rate Processing Fee

Islamic Auto Finance:


Auto finance is a fixed loan facility given for the purpose of purchasing an automobile. The loan is secured by the automobile/vehicle. The auto loan targeted is for both: Salaried Executives Businessman or self-employed professional

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The product has been structured in the following manner:The bank will enter in to a joint participation arrangement to invest in the vehicle on the basis of Diminishing Musharaka. The bank will provide the larger share of the purchase price of the vehicle. The bank will rent out / allow usage of its share of the vehicle to the customer. The customer will agree to make monthly payments for the use of the vehicle. The customers will also make regular scheduled payments in the participation to increase their equity in the vehicle. Thus with each payment the ownership of the customers in the partnership grows increasing their share of the vehicle. Once the customer has paid in full, the customer will have free and clear title to the vehicle. Table 5.18: Loan Features of the Auto Loan Minimum 12 months & Maximum 60 months BDT 200,000/= BDT 4,000,000/= 13.00% For loan BDT 200,000-400,000 is BDT 5000 For loan BDT 400,000-1,000,000 is BDT 7,500 For loan above BDT 1,000,000 is BDT 10,000 Income BDT 25,000 for both salaried person &

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Loan Installment Minimum Loan Amount Maximum Loan Amount Interest Rate Processing Fee

businessman/self-employed person

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5.3 CREDIT CARD


A Credit Card is a piece of plastic used for purchasing goods & services and for obtaining cash disbursements on credit terms. It is unsecured credit i.e. credit without collateral or securities. Each cardholder is assigned a revolving credit limit by the issuing financial institution. Cardholders can purchase goods/services upto the credit limit and can re-use the credit facility upon repayment. Credit Card allows partial payments for purchases, but charges interest on the amount owed. Interest rates are traditionally higher than those charged on consumer loans.

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5.3.1 History of Credit Card


The use of Plastic Money originated in the United States during the 1920s, when individual companies, such as hotel chains and oil companies, began issuing them to customers for purchases made at those businesses. This use increased significantly after World War II. In 1951, Diners Club issued the first Charge Card to 200 customers who could use it at 27 restaurants in New York. With this system, the Credit Card company charged cardholders an annual fee and billed them on a monthly or yearly basis. Later in the late 50s, the Credit Card concept emerged where the bank credits the account of the merchant as sales slips are received and assembles charges to be billed to the cardholder at the end of the billing period. The cardholder, in turn, pays the bank either the entire balance or in monthly installments with interest. The first Credit Card BankAmericard was issued by Bank of America in late 1958 in California, USA. This system was licensed in other states starting in 1966, and was renamed as VISA in 1976. At the same time, three different groups of banks that were not franchisees of Bank of America began activities that would later merge to become todays Master Card International. In 1978 the MasterCard International and VISA International organizations agreed to a concept of duality, in other words, banks could honor and issue both Credit Cards.

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5.3.2 Key Benefits of Standard Chartered Credit Card

Wide Acceptance: Standard Chartered Bank (SCB) issues both VISA and MasterCard
Credit Cards, the two renowned Credit Card brands. Standard Chartered Taka Credit cards are accepted at more than 4500 outlets across Bangladesh. SCB International Visa Credit Card is a globally accepted Credit Card welcomed at all locations displaying the Visa logo. The card can be used at over 18 million establishments in more than 150 countries around the world and at over 3,000 merchant outlets in Bangladesh.

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Easy Repayment Facility: Standard Chartered Credit Cardholders have the flexibility to
make payment of as little as 5% of the outstanding balance per month and carry forward the rest of the balance.

Supplementary Card: Standard chartered Credit Cardholder can enjoy the convenience of
having supplementary cards for cardholders spouse, children over 18 years of age or any

family members or friends. The primary cardholder can set a spending limit for the supplementary card which limits the maximum amount that the supplementary cardholder can spend in one billing cycle.

Cash Advance Facility: SCB Credit Cardholders can get instant cash advance up to 50% of
card limit from any of the SCB ATMs, thus having access to cash 24 hours a day. Besides, cash can also be obtained from branches during transaction hours.

All Accident Insurance coverage: SCB Taka (both primary & supplementary) Credit
Cardholders are automatically enrolled into All Accident Insurance Coverage. Silver cardholder are insured for BDT 100,000, Gold Cardholders are Covered for BDT 500,000 and Platinum Cardholders are covered for BDT 1,000,000.

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InstaBuys: This exclusive feature allows SCB Taka Credit Cardholders to enjoy installment
loan facility on their Credit Card at an interest rate of as low as 16.95%. Under this plan, Cardholders can transfer any purchase greater than BDT 5000/- into installment loan and repay in Equal Monthly Instalments (EMI).

Rewards Program: Under this plan, SCB Taka cardholders are rewarded for using their
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cards at merchant outlets. For every 50 Taka spent, cardholders earn 1 treasure point, which keeps accumulating as long as the card relationship is continued. Against this treasure point

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SCB offer a wide variety o gift to the cardholder.

Auto Bills pay: This exclusive feature allows SCB Credit Cardholders to pay their monthly
utility bills through Credit Card through a standing instruction. Cardholders can avail this facility to pay their monthly Mobile Phone bills, cable TV bills, and electricity bills.

Free Access at Balaka Business Class Lounge: SCB Gold Credit Cardholders and
their immediate family members have complimentary access to the Balaka Business Class Lounge at Zia International Airport.

5.3.3 Standard Chartered International VISA Credit Card


The International VISA Credit Card from Standard Chartered comes with a winning combination of value-packed features and benefits. It simplifies customer travel and eliminates the need to carry cash. Whether traveling on business or taking a holiday, customers just relax and let Standard Chartered VISA Credit Card take care of everything.

5.3.4 Platinum Card


Standard Chartered Platinum Master Card offers the privilege of having a line of credit that reflects customers achievement and spending power. With this card, he enjoys a very high credit line starting from Tk. 4,00,000 to

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meet all his spending requirements anytime, anywhere around Bangladesh. Customers can withdraw cash upto 50% of his credit limit from any of Standard Chartered branches during transaction hours. Besides, customer can also withdraw cash upto Tk.50, 000 per day from any of the Standard Chartered Bank ATMs using platinum Master Card.

5.3.5 Standard Chartered Gift Card


Standard Chartered believes that customers are unique in style and taste. SCB also know how important it is to get it absolutely right when it comes to buying gifts for someone special. Now with Standard Chartered Gift Card, customers quest for the perfect gift is over. Convenient: Customer can choose a Standard Chartered Gift Card as gift; which he/she can load-up with the amount of choice. As this is a Visa Card, the recipient has the option of using this Card to buy his/her product of choice from outlets across the country that accepts Visa Cards electronically. The recipient can also withdraw Cash from the ATMs any time of the day. Flexible: Based on requirement, customer can load-up Gift Card for any amount ranging from Tk.1, 000 to Tk.100, 000; while paying only a nominal issuing fee. Moreover, customer can pay for the Gift Card through Cash or his/ her Standard Chartered Credit Card / Account. Safe: Even if Gift Card is lost or stolen, customer can easily get a replacement card by contacting Standard Chartereds 24-hour Call Centre.

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5.4 SERVICES AND ALTERNATE CHANNEL OFFERED BY S.C.B.

5.4.1 STATE OF THE ART 24 HOUR CALL CENTRE


A call centre is a central place where customer/non-customer calls are handled by an organization, usually with some amount of computer automation. Typically, a call centre has the ability to handle a considerable volume of calls at the same time, to screen calls and forward them to someone qualified to handle them. Objective: To provide cost effective alternate delivery channels to customers in order to attain service excellence in terms of: 24 / 7 One window service Convenience & Easy accessibility Quality Responsiveness Technology based solution Free of charge Customer can contact with Standard Chartereds 24-hour call centre for account services related requests & get 50% off on processing fee. Customers can now obtain the following special account services at half the price by simply calling 24-hour Call Centre: Lost ATM Card Replacement Duplicate Statements Pay Order/ Demand Draft (BDT only) Various Certificates

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Both financial and non-financial services can be get through call center.

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FINANCIAL TRANSACTION: Fund transfer within same master & local currency Credit Card Bill payment Utility Bill Payment (GrameenPhone, Aktel, Citycell, Sheba & Prisma Digital) Transfer from Credit Card to Bank Account/cash advance NON-FINANCIAL TRANSACTION Balance inquiry Transaction Details Duplicate Statement request Chequebook request Online TIN generation Currency deposit rates(USD, GBP, Euro, Yen, AUD & CAD)

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5.4.2 I-BANKING
iBanking is a simple, hassle-free and secure internet banking service available to all Standard Chartered Bank customers in Bangladesh . Standard Chartered Banks Internet Banking service is the fast and easy answer to the financial management needs of its customers, allowing them to bank from wherever they are, whenever they desire, in total security and confidentiality. Services offered by I-Banking Account Service: View relationship with the Bank at a glance, check account balance, view and download statements, order statements & chequebooks. Fund Transfer: Transfer funds between own Standard Chartered Bank accounts.

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Standing Orders: Request the set up standing orders. Cheque Status: Check the status of cheques issued from accounts. Utility Bill Payments: Pay utility bills online. Credit Card Payments: Pay from the account to card, both of which should be linked with i Banking. Credit Card Services: View card statement, check the card balance, and apply of a credit limit increase. Loan Services: View loan type and amount, outstanding balance & overdue amount. Personal Information: Change existing password. Market Watch: Get updated on foreign exchange rates.

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5.4.3 SMS BANKING


SCB is the first and only Bank to offer SMS banking services to its customers.

PUSH Service: Cardholders can receive a ministatement reflecting Minimum Amount Due, Total Outstanding Balance and the payment due date. This is sent to the cardholders on their billing date.

PULL Service: Cardholders can inquire about their Credit Card balance through PULL service. To avail PULL service, cardholders will have to write <CARD + PIN> as a message and send it to 2727. The outstanding balance of the card account as of previous working day will be instantly sent to the cardholder through SMS.

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5.4.4 AUTO BILLS PAY


Auto Bills pay is a simple and convenient way of paying utility bills through Credit Card. Monthly utility bill is directly debited to the Credit Card account and payment is made to the billing company by Cards Services on behalf of the cardholder. Customer can also pay their utility bills from their account by debiting their account. They can track their bills very easily since the statement will provide them detailed of bills. It is absolutely free of charge. The following monthly bills can be paid through auto bills pay: Mobile Phone Electricity Internet Cable TV

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5.4.5 E-STATEMENT
It is a fast, reliable and efficient service to minimize paperwork and maximize convenience. EStatements are absolutely free of charge & all one needs is an e-mail address. Multiple Mailing: e-Statements can be delivered to more than one e-mail address (upto a maximum of 3). So wherever the cardholder is, 24-hour access to his financial information is only a click away. Safe & Secured: As an alternative to printed statements, e-Statements eliminate the chance of having unattended documents read by others. Thats why once subscribed to e-Statements, the cardholders will not receive printed statements anymore (unless there is a mail failure).

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5.4.6 DEBIT CARD


A Debit Card is a piece of plastic used for purchasing goods & services and for obtaining cash disbursements on actual terms. It is an advanced replacement of traditional ATM cards which can be used both in ATMs and POS machines at merchant outlets. Cardholders can purchase goods/services up to the amount of money they have in their bank account.

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Key benefits of Standard Chartered Debit Card: Standard Chartered Debit Card Provides customers easy access to their money from all 35 SCB ATMs along with VISA Member banks ATMs as well as VISA enabled POS machines at merchant outlets in Bangladesh. Debit Card is a convenient way of Paying Now from customers personal account with no interest charge. Every purchase and ATM withdrawal will be reflected on the account statement of the customer which is an easy way to track spending. Customers dont need cash for shopping anymore if they have Debit Card. It is surely the safest & easiest mode of transacting. Around 1000 merchant establishments and 35 ATMs of its own surely the largest network in the country.

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5.4.7 ATM (AUTOMATED TELLER MACHINE)


ATM stands for Automated Teller Machine. This machine is capable of dispensing cash, taking deposits and providing other services to customers. The ATM is a fast, easy and convenient way for customers to withdraw or deposit cash and also avail other services offered by the ATM, without having to step into a branch. Standard Chartered Bank has 35 ATMs in Bangladesh. 22 are located within branch premises and 13 are situated in offsite locations. Facilities available through ATM: Cash withdrawal Cash deposit Cheque deposit Mixed deposit Instruction deposit Balance enquiry Fund transfer Instant mini-statement printout Chequebook request Statement request SCB Credit Card bill payment Utility bill payment (Aktel, Citycell, GrameenPhone & BTTB) Credit card holders can avail the facility of cash advance & utility bill payment through the ATMs.

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5.4.8 SAFE DEPOSIT LOCKER SERVICE

Standard Chartered offers customers a modern locker system for safekeeping of their valuable articles and confidential documents. Standard chartered ensures utmost confidentiality & personalized service for customers locker operations. The Safety Features: 24-hour close circuit TV surveillance and Security guards. Dual control by client and the locker custodian. Strong heat-resistant steel lockers lodged in re-inforced concrete & cement, steel vaults for maximum-security protection.

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5.4.9 GOVERNMENT BONDS


Like all other banks, SCB provides its customers with bond services. Various types of government bonds (like BSP, 3MSP) are available with the bank. These bonds can be kept as security when the customer takes loan from the bank.

5.4.10 SPEED CHEQUE DEPOSIT


The Speed Cheque Deposit system saves a customers precious time by allowing him to drop the Cheque in the Speed Cheque Deposit Box. All a customer needs to do is to complete the Cheque deposit slip and keep the counterfoil of the slip and drop the cheque with the slip inside the box.

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5.4.11 INTERNATIONAL NETWORK SERVICE


SCB has an easy access to international network through its banking correspondence. The bank offers different facilities like trade finance facilities including advising, confirming exports L/Cs and issue of import L/Cs banked by international sales and service center of the bank and correspondent bank network, bonds and guarantees. It also offers its foreign correspondent customers with current account services where Taka settlement is necessary, the ability to issue bonds and guarantees in support of their customers business, advising of LC and negotiation documents, market intelligence and status report.

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5.4.12 WELCOME PACK


The welcome pack is by far the fastest and easiest way of opening accounts in the country, which is first introduced by SCB in October 2001 (so it is called the 21st century account by SCB). It offers a set of absolutely unrivalled benefit. With a Welcome Pack, account is opened the minute the customer produce the necessary documents. Welcome pack contains the followings: Account Number A 25-leaf Cheque book Money link, ATM card and Personal Identification Number (PIN) Telephone Identification Number (TIN)

5.4.13 EVENING BANKING


Evening banking services is first ever in Bangladesh launched by SCB for its valued customers. In this special service the customers can do their banking from 6.00 p.m. to 8.00 p.m.

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CHAPTER 6

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LITERATURE REVIEW
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6. LITERATURE REVIEW:
Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals.( Farris et al, 2010 )

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Customer Satisfaction is a pillar to the success of a business. This is easily forgotten in times that place acquiring new customers into the center of business and marketing strategies. A high customer satisfaction will bring loyal customers and therefore a huge potential: they buy more often, with a higher order value, and they are likely to bring new customers.

The key factors influencing customers selection of a bank include the range of services, rates, fees and prices charged (Abratt and Russell, 1999). It is apparent that superior service, alone, is not sufficient to satisfy customers. Prices are essential, but not more important than service and relationship quality. Furthermore, service excellence, meeting client needs, and providing innovative products are key to success in the banking industry. Most private banks claim that creating and maintaining customer relationships are important to them and they are aware of the positive values that relationships provide. (Colgate et al., 1996).

Indeed, customer satisfaction has for many years been the key in determining why customers leave or stay with an organization. Organizations need to know how to keep their customers, even if they are satisfied. Reichheld (1996) suggests that satisfied customers may look for other banks because they believe they might receive better service elsewhere. Fornell (1992) showed that although customer satisfaction and quality appear to be important for all firms, satisfaction is more important for loyalty in industries such as banks, insurance, mail order, and automobiles.

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Ioanna (2002) further proposed that product differentiation is impossible in a competitive environment like the banking industry. Banks everywhere are delivering the same products. For example, there is usually only minimal variation in interest rates charged or the range of products and services available to customers. Bank prices are fixed and driven by the marketplace. Thus, bank management tends to differentiate their organization from competitors through service quality. Service quality is an influential element that impacts customers satisfaction level in the banking industry. In banking, quality includes differing types of convenience, reliability, services portfolio, and more importantly, the staff delivering the service.

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Banks must be able to provide up-close personal service for customers who come with high expectations. For customers who value convenience most, banks must offer the latest product such as electronic banking, touch-tone phone account access and internet banking. Clearly, customer value can be a strong driver of customer retention (Slater, 1997; Woodruff, 1997).

Todays consumers have more choices for their financial needs than ever before. Technology, globalization, increased competition and increased consumer mobility have dramatically changed the way people bank (Harwood, 2002). Many financial institutions are looking at branding techniques to differentiate themselves. Harwood (2002) argued that branding is critical in the banking industry where all firms offer about the same kinds of products. Accordingly, bankers must be able to build and manage their banks image in order to clearly define the differences between their bank and its competitors.

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Switching barriers have been used as marketing strategies to make it costly for customers to switch to another organization. Such barriers include search costs, transaction costs, learning costs, loyal customer discounts and emotional costs (Fornell, 1992). These barriers provide disincentives for the customer to leave the current organization. Curasi and Kennedy (2002) have shown that customer satisfaction does not predict the continuation of the relationship.

High switching costs are an important factor binding the customer to the service organization. Even with relatively low levels of satisfaction, the customer continues to patronize the service provider because repurchasing is easier and more cost effective than searching for a new provider (Curasi and Kennedy, 2002).

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To compete successfully in todays competitive marketplace, banks must focus on understanding the needs, attitudes, satisfactions and behavioral patterns of the market (Kaynak and Kucukemiroglu, 1992). Consumers evaluate a number of criteria when choosing a bank. However, the prioritization and use of these criteria differs across countries, and thus cannot be generalized. For example, in a study of Canadian customers in Montreal, Laroche and Taylor (1988) found that convenience is the principal reason for bank selection, followed by parental influence with respect to the status of the bank. In contrast, Kaynak and Kucukemiroglu's (1992) study of the Hong Kong banking market discovered that customers choose their banks because of convenience, long association, recommendations of friends and relatives, and accessibility to credit.

Social and technological change has had a dramatic impact on banking. These developments, such as internationalization and unification of money markets and the application of new technologies in information and communications systems to banking, have forced banks to adopt strategic marketing practices. These have included offering extended services, diversification of products, entry into new markets, and emphasizing electronic banking (Mylonakis et al., 1998). This greater range of services and products, along with improvements in communications efficiency, could have a significant impact on customer satisfaction and consequent behavioral intentions. As changes in the broad financial fields emerge and business
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activities converge (i.e., the offering of insurance, financial planning, and share brokerage by a bank), it is imperative to differentiate banking products from other similar or complementary ones that are offered by bank affiliates or non-banks (Mylonakis et al., 1998).
The Bank Benchmarking study offers an insight into the performances of retail banks operating in the

UAE with regards to response time and service quality that UAE retail banks deliver through all channels, Ethos Consultancy, the region's leaders in customer service excellence, conducted

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1,500 visits to the 29 banks covered and data collected measured 80 different criteria which mean 40,000 responses were analyzed. The result shows the following key drivers in customer satisfaction of banks.

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CHAPTER 7 Analysis Findings & Recommendation


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7.1 RESEARCH METHODOLOGY:


SURVEY DESIGN
The Survey was systematically designed to capture a representative view of Employee Engagement Index. Standard questionnaire response approach was used to evaluate the overall approach of the officials. The questions were distributed across a wide variety of items.

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INSTRUMENT DEVELOPMENT (QUESTIONNAIRE):


Questionnaires are the most frequently used data collection method in educational and evaluation research. Questionnaires help gather information on knowledge, attitudes, opinions, behaviors, facts, and other information. Development of a valid and reliable questionnaire involves several steps taking considerable time. (Malhotra, 2009) The following explanation describes the sequential steps involved in the development and testing of questionnaires used for data collection.

STEP 1- BACKGROUND:
In this initial step, the purpose, objective, research questions, and hypothesis of the proposed research are examined. Determining who the audience, their background, especially their educational/readability levels, access, and the process used to select the respondents (sample vs. population) are also part of this step. (Malhotra, 2009).The purpose of my questionnaire was basically to find out the opinions of SCB employees about the relationship between employee engagement and organizational success.

STEP 2- QUESTIONNAIRE CONCEPTUALIZATION


After developing a thorough understanding of the research, the next step was to generate statements for the questionnaire. In this step, content (from literature/theoretical framework) were transformed into statements/questions. In addition, a link among the objectives of the study and their translation into content is established. (Malhotra, 2009) Major variables (independent and dependant) are identified and defined in this step.

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STEP 3- FORMAT AND DATA ANALYSIS


In Step 3, the focus was on writing statements, selection of appropriate scales of measurement, questionnaire layout, format, question ordering, and proposed data analysis. Scales are devices used to quantify a subject's response on a particular variable. Understanding the relationship between the level of measurement and the appropriateness of data analysis is important. For example, if regression or correlation is one mode of data analysis, the dependent variable must be measured on an interval/ratio scale (strongly disagree to strongly agree). (Lind, Marchal & Wathen, 2008)

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STEP 4- ESTABLISHING VALIDITY


As a result of Steps 1-3, a draft questionnaire is ready for establishing validity. Validity is the amount of systematic or built-in error in measurement. Validity is established using a panel of experts (in this case, my faculty member).Which type of validity (content, construct, criterion, and face) to use depends on the objectives of the study. (Malhotra, 2009)

The following questions were addressed in Step 4:


Is the questionnaire valid? In other words, is the questionnaire measuring what it intended to measure (relationship between employee engagement and organizational success) Does it represent the content? Is it appropriate for the sample/population? Does the instrument look like a questionnaire? Is the questionnaire comprehensive enough to collect all the information needed to address the purpose and goals of the study? Addressing these questions coupled with carrying out a readability test enhanced my questionnaire validity. Approval & feedback from my honorable faculty was also obtained. Now the questionnaire was ready for the survey.

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STEP 5- ESTABLISHING RELIABILITY


In this final step, reliability of the questionnaire was carried out. Reliability refers to random error in measurement. Reliability indicates the accuracy or precision of the measuring instrument. (Lind, Marchal & Wathen, 2008). After the survey was over, I wanted to see whether it offered a consistent reply from the respondents. The survey seek to answer the question, does the questionnaire consistently measure whatever it measures? Data collected from the survey was analyzed using SPSS (Statistical Package for Social Sciences) software. The reliability coefficient (alpha) can range from 0 to 1, with 0 representing an instrument with full of error and 1 representing total absence of error. A reliability coefficient (alpha) of .40 or higher is considered acceptable reliability. (Lind, Marchal & Wathen, 2008) The process is illustrated below:
Conduct Survey Run Reliability Test
STEP - 5

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Observe Result

Target Audience, Population

Revision Readability Test

Field Test
STEP - 4

Panel of Experts Approval

Purpose & Goals, Objectives.

Generate Statements

Knowledge Attitudes Opinions Behaviors

Questionnaire Format

Variables: Dependant & Independent


STEP - 1 STEP - 2

Appropriate Scale of Measurement


STEP - 3

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FACTOR ANALYSIS:
Factor analysis is a method of data reduction. It does this by seeking underlying unobservable (latent) variables that are reflected in the observed variables (manifest variables). There are many different methods that can be used to conduct a factor analysis (such as principal axis factor, maximum likelihood, generalized least squares, unweighted least squares), There are also many different types of rotations that can be done after the initial extraction of factors, including orthogonal rotations, such as varimax and equimax, which impose the restriction that the factors cannot be correlated, and oblique rotations, such as promax, which allow the factors to be correlated with one another. Given the number of factor analytic techniques and options, it is not surprising that different analysts could reach very different results analyzing the same data set. However, all analysts are looking for simple structure. Simple structure is pattern of results such that each variable loads highly onto one and only one factor.

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We do factor analysis when is less than 0.4, because then it is too insignificant. Factor analysis attempts to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables. Factor analysis is often used in data reduction to identify a small number of factors that explain most of the variance observed in a much larger number of manifest variables. Factor analysis can also be used to generate hypotheses regarding causal mechanisms or to screen variables for subsequent analysis (for example, to identify co linearity prior to performing a linear regression analysis).

PRIMARY DATA:
As mentioned earlier, a survey was conducted with a structured questionnaire. The research was based on the relationship between some independent variables and some dependent variables. The independent variables are:

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Punctuality Sincerity Right solution Well information providing Prompt services Willingness to help Fair Fees structure Banking Environment

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Individual attention Products and services offered Availability of ATM Booth Feeling safe in transactions

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The dependent variable is: Customer Satisfaction

The questionnaire was divided into two (2) sections. First section was used for respondents different Q & A part and the second section was used for the independent variables. In each section, there were 4-5 relevant statements. In second section the participants had to tick in the boxes provided beside each question according to the extent of their agreement (scale provided at the beginning of the questionnaire).

Scale rating provided was: 1 =Strongly Agree 2 = Agree 3 = Neutral 4 = Disagree 5 = Strongly Disagree
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SECONDARY DATA:
While doing this research I took help of some secondary data. Most of the information was obtained through internet browsing. I also went through couple of books on customer satisfaction. SCBs brochures, booklets and intranet were also of great help.

SAMPLE SIZE:
B Y

The sample size for this research was 54.

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TYPE OF RESPONDENTS:
All the respondents were randomly selected for the survey and were both male and female. The participants of the conducted survey were selected from the different level of customers of the SCB. Most of the people participated in the survey were between 25 to 30 years of age. There were employees from different organizations. Most of their educational background ranged from undergraduate to post graduate.

Hypothesis Building: Hypothesis:


Any undecided explanation can be referred to as a hypothesis which we use in many managerial decisions. For example: qualified employees generate more revenue. This statement is still faltered because there is no proof of its validity. This is why we conduct hypothesis testing which shows the validity of the explanation. (Malhotra, 2009)

A hypothesis should have testability so that it can proceed to the stage of hypothesis testing. Hypotheses must also be able to explain the phenomena under any set of conditions; if a hypothesis can only explain a phenomenon in one set of conditions, it is generally considered unacceptable. (Malhotra, 2009)

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Hypothesis Testing:
This test tries to prove the validity of the given hypothesis. The test involves a series of experiments in many different conditions. If the hypothesis does not stand up to the tests in all conditions then a new one is formed and submitted to the same hypothesis testing. If the new hypothesis passes in all conditions then it can be considered as a reliable and valid theory. I have used statistical hypothesis testing for which I have collected large quantities of data through questionnaires and interview. Then I have conducted tests (mean, correlation, reliability, regression).

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In a hypothesis test there are two hypotheses: null hypothesis and alternative hypothesis. Null hypothesis is the accepted decision and alternative hypothesis is the decision that one tries to prove.

Importance Of Hypothesis Testing:


It enables managers to better understand quality data. Data collection is the foundation for employee evaluation but without correct data processing, it is difficult to make an objective conclusion. (Malhotra, 2009)

For instance, the success rate of different groups is 15% and 10%, respectively. In this case it would be an incomplete judgment saying that one group is better than the other because other variables like working conditions, job satisfaction are relevant to job performance. On this occasion, hypothesis testing is instrumental in explanation of this dilemma.

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Test Statistic:
It is the random variable X whose value is tested to arrive at a decision. The Central Limit Theorem states that for large sample sizes (n > 30) drawn randomly from a population, the distribution of the means of those samples will approximate normality, even when the data in the parent population are not distributed normally. A z statistic is usually used for large sample sizes (n > 30), but often large samples are not easy to obtain, in which case the t-distribution can be used. The population standard deviation s is estimated by the sample standard deviation, s. The t curves are bell shaped and distributed around t=0. The exact shape on a given t-curve depends on the degrees of freedom. In case of performing multiple comparisons by one way ANOVA, the F-statistic is normally used. It is defined as the ratio of the mean square due to the variability between groups to the mean square due to the variability within groups. The critical value of F is read off from tables on the F-distribution knowing the Type-I error and the degrees of freedom between & within the groups.

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Rejection Region :
It is the part of the sample space (critical region) where the null hypothesis H0 is rejected. The size of this region is determined by the probability (a) of the sample point falling in the critical region when H0 is true. a is also known as the level of significance, the probability of the value of the random variable falling in the critical region. Also it should be noted that the term "Statistical significance" refers only to the rejection of a null hypothesis at some level a. It implies only that the observed difference between the sample statistic and the mean of the sampling distribution did not occur by chance alone.

Decision: If the test statistic falls in the rejection/critical region, H0 is rejected, else H0 is
accepted.

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Figure: Steps in hypothesis testing

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MY HYPOTHESIS:
In my project I have shown the relationship between different factors and customer satisfaction. To prove my point, I have taken twelve independent variables. Then I have shown the effect that these variables have relation with the factors of customer satisfaction. So my hypothesis in this project is as follows:

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HYPOTHESIS 1: The level of customers satisfaction about the services provided by

SCB is positively related to the level of customers exposure about the banks service packages.

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HYPOTHESIS 2: SCBs Customers expectation of service matches banks service

promise.

HYPOTHESIS 3: SCBs Customers are updated of the banks services.

HYPOTHESIS 4: SCBs Customer involvement with the bank is high.

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7.2 ANALYSIS & FINDINGS


Demographic Analysis:
As mentioned earlier, total number of respondents was 54. They can be classified in the following types:

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Services Provided by SCB Matches your expectation

How Do You Find the Overall Services of SCB?


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Reliability Test:
The following questions are interrelated to each other. So any discrepancy in the reliability may end up with inaccurate results. So reliability test is necessary here 1. How do you find the overall service of SCB? a. Very Satisfied b. Satisfied c. Neutral d. Dissatisfied e. Very Dissatisfied Customer Satisfaction in different dimensions (factors): What is your perception about SCBs service in the following areas (1 being strongly agree, and 5 being strongly disagree).
Customer Satisfaction Factors Punctuality Sincerity Right Solution Well information providing Prompt services Willingness to help Fair Fees structure Banking Environment Individual attention Products and services offered Availability of ATM booth Feeling safe in transactions Do the services provided by SCB matches your expectation 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 Ranks 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5

S H A M

2.

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The Alpha and Standardized Item Alpha were obtained as follows:

Reliability Statistics Cronbach's Cronbach's Alpha Alpha Based on Standardized Items .688 .905

N of Items 14

S H A M

Alpha Value = 0.688 As the Alpha Value is greater than 0.4, therefore we can say that the data is reliable and there is no need for Factor Analysis that would have required Data Reduction and further analysis. This shows that all the questions in that section were objective, accurate and positive. COMMENT: Systematic development of the questionnaire for data collection is important to reduce measurement errors. Well-crafted conceptualization of the content and transformation of the content into questions is inessential to minimize measurement error. Careful attention to detail and understanding of the process involved in developing a questionnaire are of immense value. Not following appropriate and systematic procedures in questionnaire development, testing, and evaluation may undermine the quality and utilization of data. (Malhotra, 2009). Since I tried to follow all the logical steps in making the questionnaire, it helped me to come out with responses which are truly representative.

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Descriptive Statistics:
The table below shows the mean value and standard variations of all the variables used

Descriptive Statistics N Minimum Maximum Punctuality Sincerity Right solution Well information providing Prompt services Willingness to help Fees structure Banking Environment Individual attention Products and services offered Availability of ATM Booth Make you feel safe in your transactions Services provided by SCB matches your expectation Valid N (list wise) 54 54 54 54 54 54 54 54 54 54 54 54 54 54 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 5.00 4.00 4.00 4.00 5.00 5.00 5.00 4.00 4.00 5.00 5.00 4.00 5.00

Mean 2.2593 2.1852 2.2407 2.3704 2.6852 2.2222 2.6852 2.0556 2.4630 2.2407 3.0926 2.0185 2.2407

S H A M

Std. Deviation .93537 .84840 .79941 .91726 1.02468 .94503 1.09586 .94003 .88409 .88882 .97649 .83532 1.09777

From the above statistics we can see that most of the customers are satisfied having positive answers in each of the questions. However, in case of availability of ATM booths, average answer is neutral. So, we will do further research to prove our hypothesis.

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CORRELATION
In Pearson correlation, we will find the correlation direction and magnitude among the relationship between independent variables Punctuality, Sincerity, Right solution, Well information providing, Prompt services, Willingness to help, Fair Fees structure, Banking Environment, Individual attention, Products and services offered, Availability of ATM Booth and Make you feel safe in your transactions with dependent variable How do you find the

S H A M

overall service of SCB ?

How do you find the overall service of SCB? Punctuality

Sincerity

Right solution

Well information providing

Prompt services

Willingness to help

Fees structure

Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N

How do you find the overall service of SCB? 1 54 .763** .000 54 .571** .000 54 .301* .027 54 .575** .000 54 .576** .000 54 .559** .000 54 .571** .000 54 Page 112

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S H A M

Pearson Correlation Sig. (2-tailed) N Individual attention Pearson Correlation Sig. (2-tailed) N Products and services Pearson Correlation offered Sig. (2-tailed) N Availability of ATM Booth Pearson Correlation Sig. (2-tailed) N Make you feel safe in your Pearson Correlation transactions Sig. (2-tailed) N Services provided by SCB Pearson Correlation matches your expectation Sig. (2-tailed) N **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

Banking Environment

.399** .003 54 .570** .000 54 .390** .004 54 .538** .000 54 .397** .003 54 .848** .000 54

From the above table it is seen that all the factors have positive correlation with the customers perspective of overall service. Punctuality and the service provided by SCB have strong correlation with the dependant variable. However all other factors have moderate correlation with the customers perspective of overall services. Correlations How long have you been banking with SCB 1

How do you find the overall service of SCB ?

Pearson -.044 Correlation Sig. (2-tailed) .753 N 54 54 How do you find the Pearson -.044 1 overall service of SCB? Correlation Sig. (2-tailed) .753 N 54 54 A negative correlation can be found between the banking years with SCB and satisfaction. It means that customers tend to be dissatisfied as the banking relation period increases.
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Regression
In the regression analysis, the quantitative effect and the relative weight of the variables Punctuality, Sincerity, Right solution, Well information providing, Prompt services, Willingness to help, Fair Fees structure, Banking Environment, Individual attention, Products and services offered, Availability of ATM Booth and Make you feel safe in your transactions with dependent variable How do you find the overall service of SCB?

S H A M

Model 1

R .860a

Model Summary R Adjusted R Square Square .739 .662

Std. Error of the Estimate .62021

a. Predictors: (Constant), Make you feel safe in your transactions, Fees structure, Right solution, Products and services offered, Well information providing, Prompt services, Sincerity, Availability of ATM Booth, Individual attention, Punctuality, Willingness to help, Banking Environment

Model 1 Regressio n Residual Total

Sum of Squares 44.599 15.771 60.370

ANOVAb Df 12 41 53

Mean Square 3.717 .385

F 9.662

Sig. .000a

a. Predictors: (Constant), Make you feel safe in your transactions, Fees structure, Right solution, Products and services offered, Well information providing, Prompt services, Sincerity, Availability of ATM Booth, Individual attention, Punctuality, Willingness to help, Banking Environment b. Dependent Variable: How do you find the overall service of SCB?

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Model

Coefficientsa Un standardized Coefficients

S H A M

-2.231 (Constant) Punctuality 3.735 Sincerity .087 Right solution -.901 Well information 1.700 providing Prompt services .172 .110 .165 1.558 Willingness to help .087 .139 .077 .625 Fees structure .084 .108 .087 .783 Banking -.097 .144 -.086 -.679 Environment Individual attention .075 .141 .062 .530 Products and .104 .117 .086 .886 services offered Availability of ATM .181 .116 .165 1.555 Booth Make you feel safe .013 .146 .010 .091 in your transactions a. Dependent Variable: How do you find the overall service of SCB? 1

B -.843 .504 .013 -.115 .215

Standardiz ed Coefficient s Std. Error Beta .378 .135 .442 .146 .010 .128 -.086 .127 .185

Sig.

.031 .001 .931 .373 .097 .127 .535 .438 .501 .599 .381 .128 .928

All the above mentioned variables are responsible for the variation of the dependant variable SCB customers perspective of overall services. Around sixty percent of the variation of customers perspective of overall services can arise due to the above twelve factors.

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HYPOTHESIS TESTING
HYPOTHESIS 1:

H0: The level of customers satisfaction about the services provided by SCB is not positively related to the level of customers exposure about the banks service packages. H1: The level of customers satisfaction about the services provided by SCB is positively related to the level of customers exposure about the banks service packages.

S H A M

Std. Error of the Estimate a 1 .330 .109 .091 1.01730 a. Predictors: (Constant), Do you read the instructions well? b. Dependent Variable: How do you find the overall service of SCB? ANOVAb Df

Model

Model Summaryb Adjusted R R Square Square

Model 1

Regressio 1 6.335 n Residual 53.815 52 1.035 Total 60.370 53 a. Predictors: (Constant), Do you read the instructions well? b. Dependent Variable: How do you find the overall service of SCB?

Sum of Squares 6.556

Mean Square 6.556

Sig. .015a

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Model

(Constant) Do you read the instructions well? a. Dependent Variable: How do you find the overall service of SCB?

Coefficientsa Un standardized Coefficients B Std. Error 1.547 .315 .301 .119

Standardized Coefficients Beta .330

Sig.

4.910 2.517

.000 .015

S H A M

P value for coefficient of A is 0.015. For any value of , if P-Value < , we can reject the null hypothesis. So in this case we can reject the null hypotheses. The level of customers satisfaction about the services provided by SCB is positively related to the level of customers exposure about the banks service packages. HYPOTHESIS 2:

H0: Customers expectation of service doesnt matches banks service promise. H1: Customers expectation of service matches banks service promise.

Mod el

Std. Error of the Estimate 1 .848a .718 .713 .57183 a. Predictors: (Constant), Services provided by SCB matches your expectation b. Dependent Variable: How do you find the overall service of SCB?

Model Summaryb R Adjusted R Square Square

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Model 1

Regressio 1 n Residual 17.003 52 .327 Total 60.370 53 a. Predictors: (Constant), Services provided by SCB matches your expectation b. Dependent Variable: How do you find the overall service of SCB?

Sum of Squares 43.367

ANOVAb Df

Mean F Square 43.367 132.628

Sig. .000a

S H A M

Model

S
1

Coefficientsa Un standardized Coefficients B Std. Error .178 .072

Standardize d Coefficients Beta

Sig.

(Constant) .413 Services provided by .824 .848 SCB matches your expectation a. Dependent Variable: How do you find the overall service of SCB?

2.317 11.516

.024 .000

P value for coefficient of A is 0.000. For any value of , if P-Value < , we can reject the null hypothesis. So in this case we can reject the null hypotheses. SCB Customers expectation of service matches banks service promise.

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HYPOTHESIS 3:

H0: SCBs Customers are not updated of the banks services. H1: Customers SCBs Customers are updated of the banks services.
Model Summaryb Mod R R Square Adjusted R Std. Error of el Square the Estimate a 1 .081 .006 -.013 1.07398 a. Predictors: (Constant), What do you think about reading the reading the instructions provided by the bank ? b. Dependent Variable: How do you find the overall service of SCB? ANOVAb Df

S H A M

Model

Sum of Mean F Squares Square 1 Regression .392 1 .392 .340 Residual 59.978 52 1.153 Total 60.370 53 a. Predictors: (Constant), What do you think about reading the reading the instructions provided by the bank? b. Dependent Variable: How do you find the overall service of SCB? Coefficientsa Model Un standardized Standardized Coefficients Coefficients B Std. Error Beta 1 (Constant) 2.077 .345 What do you think about reading .084 .144 .081 the reading the instructions provided by the bank? a. Dependent Variable: How do you find the overall service of SCB?

Sig. .562a

Sig.

6.023 .583

.000 .562

P value for coefficient of A is 0.562. For any value of , if P-Value < , we can reject the null hypothesis. So in this case we cannot reject the null hypotheses. SCBs Customers are not updated of the banks services.

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HYPOTHESIS 4
H0: SCBs Customer involvement with the bank is not high. H1: SCBs Customer involvement with the bank is high.
Model Summaryb Mod R R Square Adjusted R Std. Error of el Square the Estimate a 1 .131 .017 -.002 1.06814 a. Predictors: (Constant), Are you interested in finding out new products offerings of SCB? b. Dependent Variable: How do you find the overall service of SCB? ANOVAb Df

S H A M

Model

Sum of Mean F Sig. Squares Square 1 Regression 1.042 1 1.042 .913 .344a Residual 59.328 52 1.141 Total 60.370 53 a. Predictors: (Constant), Are you interested in finding out new products offerings of SCB? b. Dependent Variable: How do you find the overall service of SCB? Coefficientsa Un standardized Coefficients B Std. Error 1.953 .352 .137 .143

Model

Standardized Coefficients Beta .131

Sig.

(Constant) Are you interested in finding out new products offerings of SCB? a. Dependent Variable: How do you find the overall service of SCB?

5.555 .956

.000 .344

P value for coefficient of A is 0.562. For any value of , if P-Value < , we can reject the null hypothesis. So in this case we cannot reject the null hypotheses. SCBs Customer involvement with the bank is not high.

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Other Analysis:
Reason for maintaining A/C with other banks:

S H A M

Valid

Do you have accounts with any other bank? Frequenc Percent Valid Cumulative y Percent Percent .00 2 3.7 3.7 3.7 Yes 35 64.8 64.8 68.5 No 17 31.5 31.5 100.0 Total 54 100.0 100.0

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What is the main reason for maintaining account with different bank(s)? Cumulative Frequenc Percent Valid y Percent Percent Valid Better availability of 10 18.5 18.9 18.9 branches and ATMs Better Service 5 9.3 9.4 28.3 Better value 9 16.7 17.0 45.3 Better other facilities 12 22.2 22.6 67.9 Not Applicable 17 31.5 32.1 100.0 Total 53 98.1 100.0 Missing 9.00 1 1.9 Total 54 100.0

Almost 65 percent of the respondents have accounts in other banks and the main reasons behind this are availability of branches and ATMs, better value and, better other facilities.

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Internet Banking:

S H A M

73 percent of the respondent finds the internet banking very useful. Interpersonal Communication:

The Interpersonal communication between the banks representatives and customer is very limited, which is clearly noticeable in the accompanying chart.
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Crosstab Analysis:

Gender * How do you find the overall service of SCB? Cross tabulation Count How do you find the overall service of SCB? Very Satisfied Neutral Dissatisfied Very satisfied dissatisfied 9 17 4 4 1 4 7 5 2 1 13 24 9 6 2 Total

S H A M

Gender Male Female Total

35 19 54

From the sample it is seen that more percentage of male customers are satisfied with SCB than that of female customers.

What type of account do you maintain with SCB? * How do you find the overall service of SCB? Crosstabulation Count How do you find the overall service of SCB? Total Very Satisfied Neutral Dissatisfied Very satisfied dissatisfied What type of Current 3 6 1 3 0 13 account do you Account maintain with Savings 8 12 4 1 1 26 SCB? Account Term 0 2 2 1 0 5 Salary 2 2 1 1 1 7 Others 0 2 1 0 0 3 Total 13 24 9 6 2 54 The current and savings account holder are the major respondent in the survey and among them very small portion are dissatisfied with SCBs service.

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7. 3 RECOMMENDATION:
It will be nave of me to give suggestions to a multinational corporation like SCB which is already the top financial institution of the world. But based on the survey result and my 3 months experience, I feel SCB would even perform better if it does the following:

S H A M

Use Key Performance Index (KPI) or in short how many customers are served effectively in a stipulated time. Monitor employee activity regularly and take special care during rush hour. Motivate employees to serve customers at a time effective way. Though it might resemble that SCB is providing right solution in most cases, it is also a warning that the percentage of right solution is not up to the fullest. SCB can take service evaluation to check whether their service were unto satisfactory level or not. Though employees are presumed to have willingness to help all the time, the response graph says that there is a possibility that employees are not profession at their services all the time. So their line manager should sit and talk with them about this issue. Fair fees structure is a major issue of customer satisfaction. Fees structures are thereby updated considering market trends and other financial and economic factors. Customers are happy when they get fair fees structures. To them, the word fair

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includes local and global reputation of the bank, brand image, value chain etc. So these things should be considered while rescheduling the fees. Banking environment has been found good for SCB, as expressed in the graph. Still there are some percentages of customers who dont like the environment. So SCB should sit with their customers to solve the related banking environment problems.

S H A M

Banking has become so user friendly that customer usually like to use ATM cards to withdraw cash than standing into the queue in the bank. From the customer responses it is visible that customers are not at all happy with the current number of ATM booths available for use. As it is an important factor of satisfaction, SCB should look into it. From the graph it is visible that the customers opinion regarding safety in transaction is quite satisfactory. Still there are some percentages of customers who have negative comments regarding safety. So SCB should look into it as safety has become a bigger issue nowadays. If any safety loopholes are found, SCB should take proper action so no mishap can happen.

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CHAPTER 8

CONCLUSION
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8. CONCLUSION
Now a day business does not mean just selling and purchasing the products or services. This is very important to conduct the business in an organized and effective manner. Now questions arise that how we can make this business process effective. Advertising can be a bigger

B Y

solution in this sector. More than that maintaining a satisfactory level of customer satisfaction might make the whole selling process a lot more progressive. As we all know in the business world things move on the will of Impression. Standard Chartered is the worlds one of the best leading Banks. And it the duty of this Bangladesh corporate office to hold that same image and continue with the Business.

S H A M

The positive linkage that has been found between independent and dependent variables has proved that there are some specific factors that makes customer satisfied or dissatisfied. As customers are driving force of the banking industry, banks do a lot of marketing regarding the products and services they offer. And also they cater their customers with regularly updated offerings. SCB is doing business for more than 150 years, having a banking structure based on the localized culture, tradition by blending its brand value and norms. The survey I have done shows that customers are satisfied in most cases. However, in some cases they are dissatisfied. Though the report intends and to find the factors of customer satisfaction which it already did, further recommendations have been given so that the customer satisfaction increases rather than decreasing day by day.

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CHAPTER 9 BIBLIOGRAPHY

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9. BIBLIOGRAPHY:

CB inside- Standard Chartered Bank internal Web site http://www.standardchartered.com/ http://www.tdan.com/i018ht01.htm http://eps.syr.edu/toolkit/analyzing.aspx http://pigseye.kennesaw.edu/~dbraun/csis4650/A&D/UML_tutorial/activity.htm http://www.agilemodeling.com/artifacts/useCaseDiagram.htm http://www.technologystudent.com/designpro/richpic1.htm http://www.naa.gov.au/recordkeeping/dirks/dirksman/dirks_A12_feasibility.html http://members.aol.com/AllenWeb/planning.htm http://www.umsl.edu/~sauter/analysis/dfd/dfd.htm http://www.umsl.edu/~sauter/analysis/er/er_intro.html Interview of: Saqib Sarkar; Assistant manager: Corporate Affair, SCB Interview of Sajib Nurul Kabir; Senior Manager: Corporate Affairs, SCB Interview of Tanvir hossain; Card Dpt: SCB

S H A M

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CHAPTER 10

APPENDIX
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APPENDIX

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APPENDIX

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APPENDIX

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