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INTRODUCTION TO ORGANIZATION STUDY

Introduction
This is an overall study of the organization of American Express Bank Ltd. where it’s
working environment and various policies and practice are studied.

Objectives:
The study has undertaken to get an exposure of actual working environment in an
organization. The main objective of the study is to familiarize with the frame work
and method of organization working.
 To know how AMEX works and method adopted.
 To know the employee and employer relationship and co-ordination.
 To show up the different product range of AMEX.
 To know the overall development of AMEX.

Methodology:
Conducting personal interview with all the functional manager departmental head and
sales executives. Collect the various data required to the study. Manuals and reports
of the company constituted the source of secondary data.

Limitation:
The following limitation of this internship report:
 The study is limited to the study of whole organization and not on specific
department.
 This study is only subject to an organization and not consist the whole market.
 The study is time bound and would be applicable to current scenario
 It is assumed that the information provided by the company is corrected and
reference is drawn accordingly.

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INDUSTRY PROFILE
HISTORY OF BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and
internal factors.

For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the main
reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends
with the nationalisation of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting
a draft or for withdrawing his own money. Today, he has a choice. Gone are days
when the most efficient bank transferred money from one branch to other in two days.
Now it is simple as instant messaging or dial a pizza. Money have become the order
of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
 Early phase from 1786 to 1969 of Indian Banks
 Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
 New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and
Phase III.

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Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank
of India was established which started as private shareholders banks, mostly
Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906
and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian
Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small.
To streamline the functioning and activities of commercial banks, the Government of
India came up with The Banking Companies Act, 1949 which was later changed to
Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of
banking in India as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

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Phase II

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. It formed State
Bank of India to act as the principal agent of RBI and to handle banking transactions
of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on
19th July, 1969, major process of nationalisation was carried out. It was the effort of
the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in
the country were nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried out in
1980 with seven more banks. This step brought 80% of the banking segment in India
under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
 1949 : Enactment of Banking Regulation Act.
 1955 : Nationalisation of State Bank of India.
 1959 : Nationalisation of SBI subsidiaries.
 1961 : Insurance cover extended to deposits.
 1969 : Nationalisation of 14 major banks.
 1971 : Creation of credit guarantee corporation.
 1975 : Creation of regional rural banks.
 1980 : Nationalisation of seven banks with deposits over 200 crore.
After the nationalisation of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and
immense confidence about the sustainability of these institutions.

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Phase III

This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. Time is given more
importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.4

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AMERICAN EXPRESS BANK Ltd.

INTRODUCTION
American Express Bank has presence in over 150 countries. It is a diversified travel
and financial services company. Established in 1850 in New York, American Express
Company was among the first and most successful express delivery businesses to
arise during the rapid westward expansion of the United States.

American Express India was established in 1921 providing high quality travel and
financial services. American Express in India is the largest company to have wide
network of travel locations in the country. American Express Travels has entered into
a Memorandum of Understanding (MoU) with Department of Post to enable the
designated Speed Post offices in distributing and encashing American Express
Travelers Cheques.

American Express Travelers Cheques are available in the following currencies:


 Australian Dollar
 Canadian Dollar
 Euro
 Japanese Yen
 Saudi Riyal
 South African Rand
 Swiss Franc
 Pound Sterling
 US Dollar

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HISTORY
Since its founding in 1850, American Express has conducted business according to
several guiding principles that over the years have become inextricably linked with
the company’s brand, products, services and perhaps most notably its people.
Generations before the phrase “company values” entered the corporate lexicon;
American Express employees across the organization were demonstrating the same
core principles upheld by the company today.

American Express operates in over130 countries around the globe. Established in


1850 in New York City, American Express Company was among the first and most
successful express delivery businesses to arise during the rapid westward expansion
of the United States.

The history of American Express is a fascinating one, filled with interested and
sometimes quirky characters that through a combination of brains, perseverance and
luck shaped the company’s development during the past century and a half.

The express company that forwarded freight and valuables evolved into a company
that created and sold financial products like money orders and travelers cheques.
Following an era of international expansion, the company became an entity perhaps
best known for its charge card. Today, American Express is a global payments
company.

The attributes that today are the hallmarks of the American Express brand trust,
integrity, and security, quality, and customer service -- all have their roots in this
compelling story. In this history, as well, are the genesis and development of the
company's aspiration to become the world's most respected service brand.

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AMERICAN EXPRESS BANK IN INDIA

American Express Bank is a diversified travel and financial services company. It was
founded in the year 1850. American Express Travelers cell is the world leader.
American Express India was established in 1921 providing high quality travel and
financial services. American Express in India is the largest company to have wide
network of travel locations in the country.

American Express Card division also tops upon other credit card issuer. American
Express Credit Cards in India is of basic two varieties, namely International Gold
Amx Card and International Green Amx Card.

American Express Credit Cards

Criteria for availing American Express Gold and Green Cards are as follows:
Public Ltd - Self Employed - Salaried -
Card Type
Income(Rs) Income(Rs) Income(Rs)

International Gold Amex


150000 150000 150000
Card

International Green Amex


72000 72000 72000
Card

American Express in India has also launched Tata Finance American Express Credit
Card with Tata Finance Limited which is globally accepted on the American Express
global merchant network. This card is both issued and serviced by Tata Finance
Limited and carries an American Express Blue Box logo at the bottom.

The American Express India Card Members enjoy discounts of 3% to 7% on airline


tickets, convenience of booking tickets over the phone and 40% discounts on overseas
hotels rates.

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American Express Travelers

Being the best in the world, and American Express India having the largest network
of travel locations in the country, American Express Travels has also entered into a
Memorandum of Understanding (MoU) with Department of Post. This arrangement
enables the designated Speed Post offices in distributing and encashing American
Express Travelers’ Cheques.

American Express Online

American Express is online in the maximum countries out of over 130 countries it has
services. The URL of American Express India is as under:
www.americanexpress.com/india

Some of the following services can obtained online


 View your Amex Card account statement online
 Register to manage your Amex Card account online
 View your American Express Rewards™ Points
 Reset your Amx Card account password
 Update your Personal Amex Card information
 Order your promotional material
 Apply to accept the Amx Card

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AREA OF BUSINESS

SMALL BUSINESS
 Apply for Cards & Financing

CORPORATIONS
 Apply for a Corporate Card
 Corporate Card
 Business Travel

MERCHANTS
 Accept the card
 Manage your Merchant Account

PERSONAL

PERSONAL CARDS
 Apply for a Card
 Membership Rewards
 Benefits
 Shopping
 Gift Cards

TRAVEL
 Flights
 Hotels
 Cars
 Cruises
 Vacations
 Last Minute Deals
 Traveler’s Cheque Cards

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PRODUCTS & SERVICES

INVESTMENT PRODUCTS
We offer a full range of investment products and the highest standard in investment
management. The Private Bank has the flexibility to choose world-class sub-advisors
and investment managers from the world's leading asset management and specialty
fund managers.

FOREIGN EXCHANGE & TREASURY


Around-the-clock trading of an extensive range of foreign exchange products,
including spot trading, options, derivatives and forward contracts, with particular
expertise in non-G7 currencies. American Express Bank has trading centers in Hong
Kong, Singapore, London and New York.

CREDIT AVAILABILITY
Secured loans to provide short-term liquidity without disrupting your long-term
investment positions, or to increase your exposures for yield enhancement. You can
leverage your assets in one jurisdiction for use in another, or your personal assets for
your business. Pre-approved loan margins are in place for a wide range of assets.
People can call for the specific loan-to-value percentage for each product.

FIDUCIARY SERVICES
Legal structures to protect your assets ensure your wishes are carried out and secure
the future for you and your family. Fiduciary specialists are available in Europe, Asia
and the Americas to advise you on the structures that will provide protection and
accomplish your objectives.

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INSURANCE
Insurance can provide liquidity at a critical moment, continuity in your business
should you become disabled, and the maximum number of choices for your heirs.
Policies are issued by established external insurance carriers selected on a region-by-
region basis.

CHOICE OF JURIDICTION
The Private Bank has offices in all of the major offshore private banking locations.
American Express Private Bank offers access to a wide range of investment products
and services that can help you protect and build your wealth, regardless of your
financial objectives.

SIGNATURE PORTFOLIOS
For individual and institutional investors with $1 million or more, Signature Portfolios
offer professional management and a choice of fixed income, equity or balanced
orientation.
 US Conservative Fixed Income
 US Moderate Fixed Income
 Euro Fixed Income
 Global Fixed Income
 Global Equities
 US Equities
 US Mid Cap Equities
 US Large Cap Equities
 Japanese Equities
 European Equities

DISCRETIONARY PORTFOLIOS
These investments are designed for clients who want globally diversified portfolios
with professional management of asset allocation and underlying products.

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CASH PLUS
 Cash Plus Conservative
 Cash Plus Moderate
 Cash Plus Moderate Euro
 Cash Plus Growth

BALANCED ENHANCED
 Enhanced Global Conservative
 Enhanced Global Moderate
 Enhanced European Moderate
 Enhanced Global Aggressive

TRADITIONAL
 Traditional Global Conservative
 Traditional Global Moderate
 Traditional European Moderate
 Traditional Asian Moderate

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FOCUSED EQUITIES
 Focused Global Equities
 Focused Asia Ex-Japan Equities
 Focused US Equities
 Focused Emerging Markets Equities

MUTUAL FUNDS
American Express Funds—World folio, American Express—Institutional and World
Express Funds offer a broad range of mutual funds designed to meet individual risk
tolerance and time horizon preferences.

PRIVATE BANKER
Your Private Banker can marshal resources on your behalf and craft solutions to your
individual requirements. Wherever the need may arise, you can have access to the
worldwide capabilities and services of the American Express Company, a global
leader in financial services, travel, and credit and charge cards.

The original card that set the standard for prestige and exclusivity, the Platinum Card
is offered to private banking clients at no annual fee with qualifying balances.
Automatic credit card bill payments can also be arranged through your Private
Banker.

The original card that set the standard for prestige and exclusivity, the Platinum Card
is offered to private banking clients at no annual fee with qualifying balances.
Automatic credit card bill payments can also be arranged through your Private
Banker.

Travelers Cheques are available in most currencies, including the Euro, and can be
purchased through your Private Banker.

The Private Bank has an extensive global network that has grown and developed
throughout the years to meet the needs of our clients. American Express Bank
currently has 75 offices in 38 countries around the world.

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WEALTH MANAGEMENT
American Express Private Bank offers a range of wealth management services
designed to meet your unique needs.
 Protecting Your Wealth
 Building Your Wealth
 Providing for Future Generations

DEPOSITS
Traditional and innovative deposit and deposit-alternative products can help you meet
your needs for liquidity and capital. American Express Premium Deposits, available
in most locations in U.S. dollars and Euro, offer an alternative to bank deposits and
are particularly suited to investors who want both security and a competitive rate.
These non-bank deposits are available in terms of 1, 2, 3, 6 or 12 months with
competitive rates relative to the London Interbank Rate, fixed for the term of the
deposit.
 Our investment management solutions are designed to grow your assets while
you achieve your unique financial objectives.
 Maximum flexibility and access to nearly all the major worldwide asset
classes characterize the Private Bank's family of mutual funds.
 Portfolio management by investment professionals who are among the best in
their industry.
 Discretionary portfolios for investors who want globally diversified portfolios
and prefer professional management of their asset allocation and fund
selection.
 Alternative investment solutions for sophisticated investors.
 Ideas and information that synthesize research from within and outside of
American Express to assist you in making your investment choices.

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OTHER SERVICES

Your substantial assets require complex estate planning to ensure that your wealth is
protected and managed for your benefit and for the benefit of future generations.
A variety of structures to choose from, including trusts and private investment
companies, depending on your individual circumstances.
Expert advice to meet your needs for estate planning, tax minimization,
confidentiality, and management continuity and centralization.

A choice of jurisdictions for the most convenient and advantageous location.

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ACTIVITIES

 The American Express Bank India offers cards to meet every requirement
of their clients. The American Express Card division stands at the top of all other
credit card issuer. American Express Credit Cards in India is of two varieties-
1. International Gold Amex Card
2. International Green Amex Card

The American Express India Card members enjoy discounts of 3% to 7% on airline


tickets, convenience of booking tickets over the phone and 40% discounts on overseas
hotel rates. The American Express Bank India provides a wide range of cards like the
American Express E-Credit Card, American Express Credit Card, American Express
Gold Credit Card, American Express Card, American Express Gold Card, American
Express Platinum Card, MTNL American Express Credit Card, India Today Group
American Express Credit Card, Indian Airlines American Express Green Card, Indian
Airlines American Express Gold Card, Indian Medical Association (IMA) American
Express Credit Card for medical professionals and The Institute of Cost and Works
Accountants of India (ICWAI) American Express Credit Card for Cost and Work
accountants.
 The other noteworthy services offered by the American Express Bank India
are the issue of the American Express Travelers Cheques which is recognized
globally and are safer to handle than cash. American Express Travelers
Cheques are replaced worldwide within 24 hours in case of lost or theft. They
are available in a variety of currencies like the Australian Dollar, Canadian
Dollar, Euro, Japanese Yen, Saudi Riyal, South African Rand, Swiss Franc,
Pound Sterling and US Dollar.
 The American Express Bank India also provides personal banking services
like Savings, Current and Term Deposit Accounts, Personal Loans and
Investment Services.
 The American Express Bank India with Tata Finance Limited has launched
Tata Finance American Express Credit Card.

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VISION, MISSION & OBJECTIVES

VISION
To become the world's most respected service brand.

.
MISSION
 A logical extension of the Vision Statement is the Mission of the Bank, which
is to gain market recognition in the chosen areas.
 To build sizeable markets share in each of the chosen areas of business
through effective strategies in terms of pricing, product packaging and
promoting the product in the market.
 To promote confidence and commitment among the staff members, to address
the expectations of the customers efficiently and handle technology banking
with ease

OBJECTIVES
 Customer privacy
 Customer confidentiality
 Security of customer data
 Customer satisfaction
 Providing high quality services & products

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PEOPLE BEHIND AMEX

American Express was founded in 1850 by Henry Wells, William Fargo, and John
Butterfield as an express business. In 1882, American Express launched its money
order business to compete with the US Post Office's money orders. This product
quickly spread to Europe where no such financial product existed. Sometime between
1888 and 1890, J. C. Fargo took a trip to Europe and returned frustrated and
infuriated. American Express India was established in 1921 providing high quality
travel and financial services. American Express in India is the largest company to
have wide network of travel locations in the country. American Express Travels has
entered into a Memorandum of Understanding (MoU) with Department of Post to
enable the designated Speed Post offices in distributing and encashing American
Express Travelers Cheques.

W. Richard Holmes has been elected chairman of American Express Bank, Ltd.,
(AEB) American Express Company's international banking subsidiary, based in New
York. He adds this title to his current one of chief executive officer of AEB, a role he
assumed in June, 2000. As chairman, he succeeds James Cracchiolo, who has stepped
down as chairman of AEB to work full-time with the Company to complete the spin-
off of American Express Financial Advisors (AEFA).

William J. Blomquist, currently managing director and head of AEB's Financial


Institutions Group, and Sergio J. Masvidal, currently managing director and head of
AEB's Private Bank, were elected Vice Chairmen.

Holmes, 52, became president and chief executive officer of AEB in 2000. He joined
American Express in 1996 as managing Director and head of Worldwide Private
Banking, leading that unit through a period of significant expansion.

Holmes has more than 20 years experience in international banking, having served in
various positions at Wells Fargo Bank and at Bank of America. From 1993 to 1996 he
was an executive vice president and head of Bank of America's Private Bank. He

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began his professional career with the accounting firm of Peat, Marwick & Mitchell in
1974.

He holds a bachelor's degree in Economics from St. Johns College, Cambridge


University in England in 1974 and a master's degree in economics, also from St.
Johns. He is also a Fellow of the Institute of Chartered Accountants in England and
Wales and co-chairman of the International Private Banking Council.

William J. Blomquist, a 35-year veteran of American Express Bank, was appointed


managing director and head of the Financial Institutions Group in 1995. He had been
managing director and regional executive in charge of Europe, Middle East, and
Africa, from 1990-1995. Prior to that, he held wide-ranging senior management roles
in Switzerland, Asia, and the Middle East.

Sergio Masvidal was appointed managing director and Head of the Global Private
Bank, based in Miami, Florida, in 2000. He joined AEB in 1987 as general manager
of American Express Bank International, the private banking arm of AEB. In 1992, he
became president of AEBI and in 1996 he became Latin American region head for the
Private Bank. He has more than 30 years of experience in the banking industry.

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BOARD OF DIRECTORS

Daniel F. Akerson
Managing Director, The Carlyle Group

Charlene Barshefsky
Senior International Partner, Wilmer Cutler Pickering Hale and Dorr LLP

Ursula M. Burns
Senior Corporate Vice President and President of Business Group Operations, Xerox
Corporation

Kenneth I. Chenault
Chairman and Chief Executive Officer, American Express Company

Peter Chernin
President and COO, News Corporation

Vernon E. Jordan Jr.


Senior Managing Director, Lazard Freres & Co. LLC

Jan Leschly
Chairman and Chief Executive Officer, Care Capital LLC

Richard C. Levin
President, Yale University

Richard A. McGinn
Partner, RRE Ventures

Edward D. Miller
Former President and Chief Executive Officer, AXA Financial, Inc.

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Frank P. Popoff
Chairman, Chemical Financial Corporation

Steven S Reinemund
Former Chairman and Chief Executive Officer, PepsiCo, Inc.

Robert D. Walter
Chairman and Chief Executive Officer, Cardinal Health, Inc.

Ronald A. Williams
Chairman, Chief Executive Officer and President, Aetna, Inc

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POLICIES

Some of the policies of AMEX are as following:

FAIR PRACTICES CODE FOR CREDIT CARD OPERATIONS

American Express Bank Ltd. (hereinafter referred to ‘the Bank’) has a reputation for
customer service and sound compliance.

The Bank has various policies and procedures that govern its business activities and
operations. Further, the Bank has compliance and other internal programs designed to
ensure compliance with laws and regulations of countries where it does business.

This Fair Practice Code (hereinafter referred to as ‘the Code’) for credit card
operations is designed to guide and demonstrate the Bank’s commitment to fair and
ethical management of its business activities operations related to issuance of cards,
customer service and other related activities.

COMPLIANCE WITH THE CODE

This is a non-statutory code and the Bank shall take efforts to adhere to it during
normal operating environment. The Bank shall not be held responsible for non-
compliance due to force majored conditions and other reasons for which the Bank
enjoys privilege and right over the code.

This code does not in anyway prevent the Bank from exercising its rights and
discharging its duties and obligations under law, regulations, agreement, terms and
conditions, etc. in force and varied from time to time.

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OPERATING PRINCIPLES
 We must provide a superior value proposition to our Customers
 We must achieve Best-in-Class Economics
 Everything we do should support the American Express Brand.

BUSINESS ETHICS

The Bank and its employees shall ensure that ethical conduct shall permeate all our
business dealings and relationships.

In a rapidly evolving credit card business, the Bank and its employees shall ensure
ethical conduct in offering products and services, business activities, operations and
customer services. The Bank shall conduct its business in accordance with applicable
laws and regulations.

The Bank has competent individuals managing regulatory affairs and advising
business leaders about compliance requirements.

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FUNCTIONAL AREAS

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ORGANISATION CHART

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AMERICAN EXPRESS INTERACTIVE

American Express Interactive (AXPi) drives online business strategies across the
entire enterprise. This means being cohesively integrated into every business unit,
merging service and marketing with leading-edge interactive technologies. Working
with AXPi provides a broad view of our entire organization, as well as the
competitive landscape. It keeps a sharp eye on external indicators and builds strong
internal relationships that allow identifying and responding to all emerging
opportunities. AXPi clearly impacts the bottom line of our global company, with
accountability for developing new ideas and delivering on real results.

MARKETING

American Express is a premiere marketing company, known for sharp, savvy


strategies. Here, it develops and champion a well-established brand built upon
excellent product and service attributes. It manages product lifecycles from beginning
to end, synthesizing information into actionable plans. It also develops an
understanding of new product development, customer acquisition and loyalty, and
partnership opportunities.

MARKETING BUSINESS UNITS

American Express Interactive (AXPi)


Consumer Card Services Group (CCSG)
Establishment Services (ES)
Global Commercial Card (GCC)
OPEN from American Express (OPEN)
Global Network Services (GNS)
International Consumer & Small Business Services (ICSS)
Global Business Travel (GBT)

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CARDS – SALES AND MARKETING


The Bank shall provide full and complete disclosure of products and services, their
features and costs to enable a prospective customer to make an informed decision /
choice The Bank shall provide information on:
 Key features of our products and services
 Applicable fees and other charges
 Documents required with regard to identity, contact, particulars, employment,
financial standing, etc.

How a customer’s personal information shall be used


 Details of Bank contact for seeking additional information
 Terms and conditions related to fees and interest charges, billing and payment,
renewal, termination procedures and other aspects related to maintenance and
management of card accounts.

The Bank’s advertising and marketing campaigns shall use truthful and whole
statements about Bank’s products and services

The Bank shall ensure that the whole of an advertisement is truthful, shall inform
customers of costs and obligations as well as benefits and features. The
advertisements may not mislead by using tricky or clever wording.

The Bank shall have a Code of Conduct for its agents and others, who sell, distribute
or otherwise market Bank’s card products.

The Bank shall ensure that all agents who sell, distribute or otherwise market Bank’s
ard products have a Code of Conduct for their dealings with prospective customers
and Card members. The Bank shall have monitoring process in place to review the
agent’s compliance to this code, at regular intervals.

City College 28 Dept. of Management Studies


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COMPETITORS OF AMERICAN EXPRESS BANK

Top Performing Public Sector Banks


1 Andhra Bank
2 State Bank of Mysore
3 Allahabad Bank
4 Vijaya Bank
5 Punjab National Bank

Top Performing Private Sector Banks


1 HDFC Bank
2 UTI Bank
3 ICICI Bank
4 Kotak Mahindra Bank
5 Centurion Bank of Punjab

Top Performing Foreign Banks


1 Citibank
2 Standard Chartered PLC
3 HSBC Bank
4 ABN AMRO Bank

City College 29 Dept. of Management Studies


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CUSTOMER CARE

Customer Care, which is called Service Delivery Network (SDN), you will become
familiar with our diverse customer base, their needs and expectations, and the
industry-best products and services we provide. The work is about reengineering and
optimizing processes for improved satisfaction and cost containment, as well as
developing operational and network strategies for maximum efficiency. It's also about
selling ideas, creating better solutions and responding to trends. Customer Care is
opportunity to make decisions that impact millions of people around the world, take
ownership for own success, and win for the customer at every occasion.

CARD OPERATIONS AND CUSTOMER SERVICE

The Bank shall have effective processes and systems to ensure quality in operations
and customer service.
The Bank shall maintain effective processes and systems to maintain quality in
following card operations activities:
 Timely processing for applications and communication of decision to
customers
 Dispatch of credit card in a secured mode and follow-up communication to
inform about issuance of card
 Availability of contact centers such as telephone service centers for customers
to contact for information or queries on products, services and related subjects
 Timely dispatch of credit card statements
 Timely processing of payments received from credit card customers
 Receipt and satisfactory disposition of customer correspondences and
complaints

City College 30 Dept. of Management Studies


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The Bank may have processes to honor customers’ choices and preferences during the
period of customer relationship The Bank may have processes to honor customers’
choices with regard to the following, subject to certain terms and conditions:
 Change of payment modes within types offered by the Bank
 Opting out from receipt of Bank’s marketing and promotional materials
 Voluntary termination of credit card facility

The Bank shall treat customers with respect and dignity during collection efforts.

The Bank has policies and employee training programs to guide employees to exhibit
courteous and fair behavior during collection efforts. The Bank shall ensure that all
collection and recovery agents have a Fair Practice Code for their dealings with the
customers.

The Bank shall have monitoring process in place to review the agent’s compliance to
this code, at regular intervals.

City College 31 Dept. of Management Studies


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CUSTOMER PRIVACY

The Bank shall safeguard the privacy, confidentiality and security of customer data
entrusted with it:

The Bank has privacy principles to ensure that the customer information collected is
relevant, accurate and confidential. The Bank has adequate standards to protect
customer accounts and information. These standards allow customers to remove their
names from lists used for mail, telephone and online marketing. All employees shall
be trained in customer privacy principles as appropriate to their work.

RISK & INFORMATION MANAGEMENT

In the financial services arena, the Risk, Information and Banking function is the
backbone of our operations. The work is truly global and transcends all aspects of
American Express, including consumer cards, small business services, corporate
services, and our merchant partners. Here, it set the industry standard for managing
risk associated with fraudulent activity, while also providing a strategic perspective,
overseeing the customer information cycle, and leveraging technology in support of
all business units. Because of this scope, Risk, Information and Banking is an ideal
place to get an "end-to-end" understanding of the Company's core businesses and
position yourself for future growth across various departments and geographies.

City College 32 Dept. of Management Studies


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FINANCE

Finance at American Express plays an integral role in everything from new product
development to corporate planning and reengineering. It is owner, guardian and
analyst of information, making strategic, financial and operational decisions that
impact customers, merchants and shareholders. Work may be focused on a specific
business unit or corporate-wide initiatives, giving exposure to a variety of financial
projects. Either way, work in Finance will make a lasting impact on global customer
base, as it excel on a collaborative, cross-functional team with a mission to be the
world's most respected service brand.

STRATEGIC PLANNING GROUP

What kind of company should American Express be in five years? That's the kind of
far-reaching question we answer as a member of Strategic Planning Group (SPG). It
serve as an internal consultant and incubator of innovative ideas, spearheading large-
scale strategy projects centered on growth opportunities, investment prospects,
acquisition targets and other high-level initiatives. SPG provides an alternative to
traditional consulting work, offering comparable challenges with a world-class
company without the rigors of constant travel.

HUMAN RESOURCE MANAGEMENT

The Human Resources team at American Express works in true partnership with our
business clients. It provides service and support throughout the full spectrum of the
employee experience, from selection, hiring and orientation, to leadership
development and talent management. It has the responsibility and opportunity to
communicate messages about the company's global strategy, ensuring that our
professionals are placed in roles and environments where they - and our business units
- will thrive. In short, work will be all about the extraordinary people who make
American Express one of the world's most recognized and respected brands.

City College 33 Dept. of Management Studies


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TECHNOLOGIES

The goal of our Technologies organization is to extend a competitive advantage with


capabilities that support increased customer spending, company revenue and net
income. Work in this area; focus on developing strategies and solutions for delivering
an enhanced customer experience to all American Express card members. It analyze
business systems, investigate emerging technologies, and make effective
recommendations that will help bring new products to the market faster, exceed
business partner expectations, validate investment decisions, and sustain a flexible
global organization.

City College 34 Dept. of Management Studies


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SWOT ANALYSIS

STRENGTHS
 Liberal economic system.
 Sound bank managements.
 Improved risk management.
 Diversity in bank funding activities.
 High systemic liquidity.
 Safety of depositors’ funds comes in priority.
 Wide spread developed banking culture.
 A healthy banking system.
 Banking secrecy laws.

WEAKNESS
 Government financing by banks out of acceptable standards.
 Very weak corporate governance.
 Limited branches.

OPPORTUNITIES
 Privatization creates ample opportunities for economic growth.
 Banking Over Borders – extension to regional countries.
.

THREATS
 Presence of nationalized banks.
 Presence of foreign banks.

City College 35 Dept. of Management Studies


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A STUDY ON THE CUSTOMER SATISFACTION LEVEL

OBJECTIVE OF STUDY
Customer satisfaction level from present Amex Services and to know other services
customers expecting from Amex Bank.

RESEARCH METHODOLOGY
MARKETING RESEARCH AND ITS METHODOLOGY:

A. Though Interacting with the Clients of Amex Bank

B. Qualitative Research

D. Questionnaires

E. Analysis and statistics


 Statistics
 Analysing Data
 Surveys with Confidence

SCOPE OF REPORT

The scope of this report is limited up to services provided by Amex Bank not by other
banks. These reports just show the level of customer satisfaction from Amex Services
and at the same time new product which customer is expecting from Amex

City College 36 Dept. of Management Studies


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DATA COLLECTION
 Through Clients of Amex
 Internet
 Magazines

LIMITATIONS

Each and every project report or research carried out has some limitations, be it times
constraints or any other such issues that invariably, plagues the result. It is always
important to indicate the limitations of the project carried out so the evaluator is in the
position to evaluate out the project.

Further it also helps the end users of the report to interpret the results in more valid
and realistic manner. It has an advantage from the researchers stand point of giving
ample confidence in the research conducted and the research presented.

The project submitted would definitely suffer from some limitations were:
 Time constraints
 Key personnel
 To reach every client

It is important to mention that it was difficult to catch hold of key personnel. Often
the top rank officials did not have sufficient time to provide information they always
seemed to have to attend some meetings or conferences.

SOME OTHER LIMITATIONS:


At the time of survey, I did not found fair response from various clients, because they
cannot answer some of the question asked. So many times I got different response for
same bank from different clients.

City College 37 Dept. of Management Studies


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DATA ANALYSIS

Table 1: Services availing from AMEX Bank

Attributes No. of respondents Total Percentage

Saving/Current A/C 40 50 80%

Remittances 5 50 10%
Draft facilities 18 50 36%
Foreign exchange 28 50 56%
services
Investment products 23 50 46%

Other services 16 50 32%

City College 38 Dept. of Management Studies


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45

40

35

30

25

20 40

15 28
23
10 18 16
5
5
0
Saving/Current Remittances Draft facilities Foreign Investment Other services
A/C exchange products
services

Series1

Services availing from AMEX Bank

ANALYSIS

Maximum customers use saving/current A/C, Foreign exchange & Investment


services.

Some customers use Draft & other services like financing. Few customers use
remittance services. Draft & financing services has higher charges and moreover
AMEX has limited branches.

City College 39 Dept. of Management Studies


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Table 2: Basis on which customers choose their bank

Attributes No. of respondents Percentage


Quality of services 26 52%
Customer interaction 14 28%
Interest rate & services 2 4%
Convenience 5 10%
Others 3 6%
Total 50 100%

City College 40 Dept. of Management Studies


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Basis on which customers choose their bank

Convenience
10% Others
6%
Interes t rate &
services
4%

Quality of services
52%
Customer
interaction
28%

Quality of services Customer interaction Interest rate & services Convenience Others

ANALYSIS

More than 50% customers choose their bank on the basis of quality of services.
Customer interaction is also a strong base for choosing the bank for their services.
AMEX Bank provides quality services to their customers.

City College 41 Dept. of Management Studies


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Table 3: Customers satisfied with the services of AMEX Bank

Attributes No. of respondents Percentage


Satisfied 41 82%
Not satisfied 9 18%
Total 50 100%

Customers satisfied with the services of AMEX Bank

Not satisfied
18%

Satisfied
82%

Satisfied Not satisfied

City College 42 Dept. of Management Studies


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ANALYSIS

This research was made on customer satisfaction of American Express bank. The
Amex is one of those banks who serve its customers in the best way and also give due
consideration to its customer service. Maximum clients who have their Corporate
Accounts or individual Account with Amex are satisfied with its services. Amex
provides all the modern services to its customer.

But there are also few customers who are not satisfied or expect more services from
the bank.

City College 43 Dept. of Management Studies


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FINDINGS

 Demand draft facility which is a basic customer satisfying service is not


available in many cities.

 Some customers feel that customer satisfying services should be improved


however such group of customers was very small.

 Few customers have confusion on charges that are charged on their accounts.

 Maximum customers feel that the service & products provided by bank are
very good & they are satisfied with it.

 AMEX Bank provides quality services to their customers & customers choose
bank on the basis of quality of services and customer interaction.

City College 44 Dept. of Management Studies


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RECOMMENDATIONS

 Need to improve on customer satisfying services, like; Demand Draft facility


should be available in all cities.

 Need to improve on satisfying customer and handling their queries in a sound


manner.

 Need to clarify customer for the charges that are being charged on their
account without clarification.

 Need to have a stabilized banking staff to co-ordinate with customer from time
to time.

City College 45 Dept. of Management Studies


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COCLUSION

American Express Bank provides different types of products & services to customers.
The main objective of Bank is customer satisfaction, privacy & confidentiality. It
provides quality services to their customers. Customer interaction is also good in
providing services. Maximum customers are satisfied with the services provided by
the Bank. The Amex is one of those banks who serve its customers in the best way
and also give due consideration to its customer service. Maximum clients who have
their Corporate Accounts or individual Account with Amex are satisfied with its
services. Amex provides all the modern services to its customer.

City College 46 Dept. of Management Studies


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BIBLIOGRAPHY

Philip Kotler 7th edition

Company Annual Report

Employee database

WEB SITES
www.americanexpres.com
www.google.com

City College 47 Dept. of Management Studies


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ANNEXURES

MARKET RESEARCH FORM

1. Name of Company:

 Address (H.O)-
 Phone No-
 Fax-
 Website-

2. Contact Person

 Name
 Designation-
 Mobile-
 E-mail-

3. Business Details:

 Description
 Brand Name (if any)

4. Business Turnover (Yearly)

Rs….

City College 48 Dept. of Management Studies


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5. Do you have any Group A/Cs?

 Yes
 No

If yes, please specify name


.................................................................................................

6. Services availing from AMEX as of now?

 Saving /Current A/C


 Remittances
 Draft Facilities
 Foreign Exchange Services
 Investment Products
 Any Other Services

7 On what basis do you choose your bank? .


 Quality of service
 Customer Interaction
 Interest rate & Charges
 Convenience
 Others (………………………………………………..)

City College 49 Dept. of Management Studies


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8. Is anything lacking in services? If yes please specify:

……………………………………………………………………………
……………………………………………………………………………
9. Are you satisfied with the services of Bank?

 YES
 NO

10. Would you like to give any Suggestion to Bank? If yes please
specify:

 Yes
(……………………………………………………………………………
…………………………………………………)
 No

City College 50 Dept. of Management Studies