PART-I

1.0 Introduction

1.1 Origin of the Report

This project is a requirement of BBA Program and includes

experiences during preparing this project. This report is about the
Credit Card Services of Standard Chartered Bank in Bangladesh.
Here the project contains different system, program, process, features
and benefits of Credit Card.

Standard Chartered Bank is a multinational bank and started its

business in Bangladesh in 1948 with a branch in Chittagong. Today it
has 18 branches and 25 ATMs in different important places of this
country. Standard Chartered Bank is the pioneer issuer of Credit Card
in Bangladesh and it is also pioneer acquirer of Credit Card in
Bangladesh. It acquires credit card since 1988 and started issuing
credit cards from the year 1997. Today it has in total approximately
100,000 credit cards in the market with approximately 4000
merchants.

1.2 Objectives
The main objectives of this project to study the customer services
provided by the Credit Card Services of Standard Chartered Bank in
this country. Along with this the objectives of this study were as
follows;

i) To study the product - Credit Card

ii) To study about the Credit Card customer service
iii) To reveal the limitations of the current Credit Card
iv) To suggest possible ways to overcome the limitations.

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1.3 Methodology
This is a vivid project with independent and dependant observation
narrated all through the project. To write this project, information
were collected from both the primary and secondary sources.

Primary Sources
Few employee of Standard Chartered Bank who work in Credit Card
Division, helped to get information about Standard Chartered Credit
Card Service.

Secondary Sources
Data was also collected from various manuals.

1.4 Scope
A 24 hour customer service in the banking sector is very new in
Bangladesh. As for Standard Chartered Credit Card, it has complete
many years of its official launch. As credit card business is very
susceptible to fraudulent activities critical information as well as
financial information is very restrictive. Other than that information
all other information was available.

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1.5 Limitations
 Lack of comprehension of the respondents was the major
problem that created many confusions regarding verification of
conceptual question.
 Limitation of time was one of the most important factors that
shortened the present study. Due to time limitation many aspect
could not by discussed in the present study.
 Confidentiality of data was another important barrier that was
confronted during the conduct of this study. Every organization
has their own secrecy that is not revealed to others. While
collecting data on Standard Chartered Bank, personnel did not
disclose enough information for the sake of confidentiality of the
organization.
 Rush hours and business was another reason that acts as an
obstacle while gathering data.
 The finding of the survey is based on employee’s response in
different Standard Chartered branches located in Dhaka City
only. The results may not reflect the same for other branches of
Standard Chartered outside Dhaka.

1.6 Report Preview

The report contains five parts. Part one is the Introduction part, which
includes objective of the project, scope, limitations, and methodology.
Part two the Organizational part gives the idea about Standard
Chartered Bank’s historical background, banking services specially
the credit card services of SCB. Third part introduces the Standard
Chartered Bank Credit Card services and discusses that how the
Credit Card works, how SCB customers are getting advantage out of
it. Forth part will highlight on Credit Card in Bangladesh perspective.

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Which card is popular in Bangladesh, its interest rate and the social
impact of Credit Card. Fifth part is conclusion and recommendation.

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 PART-II

Page 6 of 41
 2.0 STANDARD CHARTERED BANK

Standard Chartered Bank (SCB) is an international bank, which

primarily focuses its activities in Asia, Africa, and Middle East. This
bank plays an invigorating role in linking the world’s developed
economies with emerging markets and provides personal banking,
corporate baking, institutional banking consumer finance and
custodial services. The act of the bank is to provide the most efficient,
consistent and timely services and to be the bank of choice in its
principal territories.
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
been built over 150 years.
The group operates through more than 600 offices in over 48
countries and has over 25,000 people managing assets of over 47
billion pounds. In asset size the group was ranked 94 th in the world in
1997. The group has its long past history showing its huge growth
worldwide.

2.1 Standard Chartered in Bangladesh

The Chartered Bank opened its operation in Chittagong in 1947 that
was, at that time the eastern region of the newly created Pakistan.
The branch opened mainly to facilitate the post war re-establishment
and expansion in South East Asia. The bank opened its first branch in
Dhaka in 1966 and shifted it’s headquarter from Chittagong to Dhaka
after the birth of the Republic of Bangladesh in 1971 the bank
increasingly invested in people, technology and premises as its
business grew in relation to the country’s thriving economy. Extensive

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knowledge of the market and essential expertise in wide financial
services underline SCB’s strength to build business opportunities and
institutional clients at home and abroad. Continuous upgrading of
technology and control system has enabled the bank to offer new
services, which include unique ATM and Phone Banking on a 24-hour
basis.

PART-III

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 3.0 Credit Card

3.1 What is a Credit Card ?

A plastic card issued by a bank, like Standard Chartered Bank or by
other financial institutions. It is also known as plastic money. The
credit cards are personalized to the user bear the user name,
photograph and signature and are magnetized with unique card
number.

Credit card allows cardholder mainly to buy goods and services for
the retailers or shops take cash advances from ATMs or branches pay
their utility bills.

On purchasing goods and services for the selected shops, called

merchants, retailers are paid directly by the bank, less a service
charge.

Card holder receives monthly statements from the credit card unit of
the bank, which may be paid in full within a certain number of days
with no interest charged. Card holders may make a specified

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minimum payment (typically 5% of the outstanding) and pay interest
on the outstanding balances.
Credit Card allows customers to enjoy revolving credit as repaid
amounts can be redrawn up to the allocated limit of the credit card.
In modern time in most of the countries Credit Cards are viewed as a
prime payment instrument, a safer substitute for cash.

3.2 Historical Background

In today's economy, the payment system has come a long way since
the days of barter. The concept of cards or plastic money was first
introduced by Western Union in the United States in 1914. The system
was very well appreciated by everyone and began to spread out in
other contexts also. In 1924, General Petroleum Corporation of
California introduced their own fuel card to be used at their oil
stations all over the country. This gave their customers the privilege of
buying gas from all the general petroleum outlets with this card
instead of using cash money.
The popularity of card encouraged the banks to introduce this product
to their customers. Bank credit card was first introduced in the USA
in 1952 by the Franklin National Bank. But the rising curve of the
credit card popularity started in the later half of the 60's. 1950's
witnessed introduction of travel & entertainment cards such as Diners
club, American Express and Carte Blanche. The incident that
triggered the constitution of the Diners' Club is quite fascinating. The
founder of 'Diner Club' Robert Mcnmara once experienced
entertaining guests at a New York restaurant. This incident gave birth
to the idea of charge cards.
Barclays Bank of the UK introduced Barclaycard in 1966. This was
followed by Access Credit Card launched jointly by Lloyds Bank,
Midland Bank, National Westminster, Williams & Glyn's and the royal
bank of Scotland.

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Travel and entertainment cards are used as a method of payment only
and not considered as credit cards. In 1958, American Express
introduced their corporate cards which has today become the most
widely used charge card in the world. Consequently in 1966 Master
charge & Bank Amricard (which later came to be known as
MasterCard) and in 1977 VISA were born. Both MasterCard
international and VISA international are scheme operators who
operate all around the world through a wide range of established
banks like Citibank, Hong Kong Shanghai Bank and ANZ Grindlays
Bank, Standard Chartered Bank etc.

3.3 Types of Card

The basic underlying hypothesis of plastic cards is that a cardholder
can use that card as a medium of payment at different points of sales
(POS) in the place of cash currency, in a standard situation, every
transaction through cards involves three parties. They are
(1) Cardholder
(2) The card issuing bank
(3) The merchant.
Here the card issuing bank acts as an intermediary between the card
holder and the merchant.
There are several cards being used around the world. The main
Categories have been discussed in the proceeding section:

3.3.1 Credit card

Credit card as a substitute for cash or cheque and services is
becoming increasingly popular with public since its introduction in the
market. Global acceptability is the sign for the success of credit card.
It provides two aspects of banking function together: the transmission
of payment and granting of credit. The system is mutually attractive

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to parties involved in credit card operation-card holder, merchant and
bank.
A credit card has a limit on the amount the cardholder can spend on
it; but at the same time it has the advantage of revolving credit. By
definition, “A Credit Card is a card which allows the cardholder to pay
for goods and services or draw cash, up to a predetermined card
spending limit and enables him to pay off the outstanding balance
over from one statement to another. This charge covers the banks
expenses of carrying unclear debit balances in the cardholders
account”.

3.3.2 Visa and MasterCard Credit cards

Visa and MasterCard are two scheme operators who operate all over
the world through established banks like HSBC, Standard Chartered
Bank, Citibank etc. A world wide known brand like VISA or Master
Card is a very good example of strategic branding of services. Use of a
single brand all over the world helps the users or cardholders by
allowing them to derive maximum utility from their cards.
As a scheme operator VISA/ MasterCard works as a linkage between the
card issuing bank and the card servicing bank here the card servicing bank
is a member of the scheme operator's curtail and it provides different
establishments in its locality.

3.3.3 Charge cards

Charge card is a card which allows the card holder to purchase goods
or services in a style similar to credit cards but without the provision
of deferred payments. The outstanding balance owing at the end of
each billing cycle must be cleared in full by payment within due date
which is usually is days from statement date. Charge cards do not
have spending or credit limits but the issuer normally establishes a

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spending pattern based on the cardholders usage volumes and
investigations abnormally excessive of large transactions. Examples of
charge cards include American Express, Diners club & JCB cards.

3.3.4 Debit Card

A debit card is issued by a bank to its account holders against a
minimum level of deposit in their account. Then after regular intervals
(usually 30 days) the transaction amount is debited from the
customers account along with the service charge.

3.4 The Credit Card Transaction Process:

When a transaction through credit card is initiated, it involves four parties
and they are:
Credit card holder
 Card issuer Bank
 Acquirer Bank
 Merchant

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 Figure 1: Transaction Process of Credit Card

The merchant is a business establishment which has the facilities to

accept credit card as a form of payment for goods and services. To
have this facility the merchant needs to formalize an agreement with
a bank which is called the acquirer bank. For scheme operators like
VISA or MasterCard, who operate world wide through a number of
member banks the acquirer bank and the card issuer bank are usually
two different ones.
A credit card transaction is accepted by a participating merchant on
the basis of either receiving a voice or electronic authorization or if
the transaction is under a certain value (floor limit). The acquirer

Scheme Settles with Acquirer

ACQUIRER BANK Authorize Authorize

ISSUER BANK
SCHEME
INTERCHANGE

Acquirer
transmits Issuer receives
Settlement claim Settlement claim

Merchant presents
vouchers Credit
Cardholder
pays issuing
Bank

Issuer
Acquirer credits Merchant Provides
Account Statement

Merchant Supplies Goods

MERCHANT CREDIT CARD

HOLDER

Cardholder uses
card

bank gives this authorization after checking with VISA/ Master card

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international or the card issuer bank to fund out in his account or not.
This authorization also protects the merchant from accepting lost or
stolen card being presented by any person other than the cardholders.
In technically advanced countries, this authorization is done
electronically with the help of electronic devices.

After this transaction between the cardholder and the merchant has
taken place, the merchant obtains compensation from the acquirer
bank amount less a certain service charge and claims compensation
from the card issuer bank through the scheme operator.
The issuing of a credit card involves the creation of a credit
relationship between the issuer and the cardholder. The issuer will
perform a series of investigations to establish the reliability of the
customer before providing a credit limit and a card. The cardholder
will receive a statement of
transactions from the issuer on a regular basis, which may include
cash advances, sales and
interest charges and request a minimum payment of the balance
outstanding.
A similar process is followed when an acquirer bank selects an
establishment for becoming a merchant. The establishments past
business records, financial performance, and bank’s recommendation
along, with many more details are scrutinized before choosing it as a
merchant and providing it with the necessary logistic and backup
support to accept cards.

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#3.5 key benefits of Standard Chartered Credit cards:

Wide Acceptance
Standard Chartered Bank issues both VISA and MasterCard Credit
Cards, the two widely accepted cards. So, the customers can buy
anything from clothes to meals in exclusive restaurants to airline
tickets to hospital bills. Any outlet that accepts Visa or MasterCard
will entertain our cardholders.

They have (SCB) at present, agreements with 3500 merchants all over
Bangladesh. But their cards are accepted in almost 4500 outlets. The
number is growing everyday.

Substitute of Cash

it is the primary benefit of credit card. Through cards one can buy
almost any thing on credit within the credit-limit. Therefore people
can go for their desired products and service and not bother whether
they are carrying enough cash with them or have enough cash in their
bank account. It enhances the purchasing power of the customer and
gives them opportunity to shop any time as they like.

Safety
Customers do not need to carry cash to purchase goods and services.
Through credit card customer can settle his/her dues to obtain credit in
shops, hotels, restaurants, petrol stations, etc.

Supplementary Card
Standard Chartered credit card holder can enjoy the convenience of
supplementary card for cardholders spouse, children over 18 years of
age or any family members or friends. Cardholder can set the
spending limit of cardholder choice, which will be the maximum

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amount that the supplementary cardholder can spend in one billing
cycle. A supplementary cardholder can enjoy all the benefits that only
cardholder can.
Emergency Need
In cases of emergency, cardholders can get instant cash advances up
50% of card limit from any of their 23 ATMs 24 hours in a day. Since
non-account holder also can be a credit card holder, so non-account
holder also can use their ATM through credit card.
Convenience
Cardholders can pay their utility bills through the Auto Bills Pay
Scheme. Customers no longer have to stand in long queues of the
bank pay utility bills.

Insurance Coverage
Cardholders enjoy free any accidental death insurance coverage.
Moreover under the Safety Net insurance scheme, in case of death or
total permanent disability, the bank waives the total outstanding on
the card.

Installment Loan facility

Customers can convert specific purchases into installment loans
through the InstaBuy scheme. Cardholders can buy merchandise and
pay them at a lower interest rate than most unsecured loans in the
market. Moreover in certain special campaign, customers are offered
ZERO interest rates loan facility for certain products.

Gifts and Rewards

Cards have an ongoing rewards campaign where customers get
different gifts based on the Treasure Points that they get on their
purchases of different goods. Besides that Cards always have some
sort of campaign or other going on.

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 Discounts
Standard Chartered Credit Card has made arrangements with many
shops, restaurants, gas station in Dhaka, Chittagong, Khulna, Sylhet,
etc., to offer host of exclusive discounts on credit card purchases.

3.6 SCB Credit Cards-ELIGIBILITY and

DOCUMENTATION:

3.6.1Target Market
Salaried
Self-employed
SCB RFCD & ERQ A/C holders (Int’l Card)

3.6.2 Age
Primary 21-60
Supplementary 18-60

3.6.3Minimum Income
Card Type Amount
Master/Visa card (Local) BDT 10,000
Gold Master Card (Local) BDT 55,000
Visa Gold / Silver (Int’l) N/A (secured)

Table # 1

3.6.4 Multiple Cards

Card Type Amount
Primary One each type
Supplementary Max 4 / Primary Card

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 Table # 2

3.6.5Credit Limit
Card Type Amount
Master / Visa Card BDT 10,000 ~ BDT 90,000
(Local)
Gold Master Card (Local) BDT 100,000 ~ BDT 400,000
Platinum Master Card BDT 400,000~ 800,000
(Local)
Visa Silver US$ 500 ~ US$ 4,500
Visa Gold US$ 5,000 ~ US$ 20,000

Table # 3

3.6.6 Debt Burden Ratio

50%

3.6.7 Secured Card (Local / Int’l)

LTV 90%

3.6.8 Business Existence (for self-employed only)

1 Year – Local

3.6.9 Minimum Repayment (15 days after the

statement date)
Local – Higher of 5% / BDT 500
International – Higher of 5% / US$ 10.

3.7 General differences between gold & silver card,

Local and International cards

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3.7.1 Gold card and Silver cards
Gold Cards are for people with a higher level of income and with affluent lifestyles. Some of the attribute
differences of the gold and silver cards are,
Criteria Gold Silver Card
Card
Minimum monthly BDT 55,000 BDT 10,000
income
Minimum Credit Limit BDT 100,000 BDT 10,000
Maximum Credit Limit BDT 500,000 BDT 90,000
Annual Fees (Primary BDT 3500 BDT 1750
Card)
Annual Fees BDT 1,000 BDT 500
(Supplementary
Card)
Card Replacement Fee, BDT 1, 500/Card + VAT BDT 800/Card + VAT
PIN
Replacement Fee, Over-
limit
Charge & Late Payment
Fee
(Per cycle)

Table # 4

Fees and charges are subject to frequent changes to adjust with

market condition and business priorities.

3.7.2 Local and International cards

Some of the attributable differences of the Local and International cards are,

International Cards Local Cards

Use Can be used outside To be used only in
Bangladesh for Purchases Bangladesh for
other currencies. Purchases only in

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 BDT
Security Issued against the Issued fully
deposits of an Account unsecured
or an Export Retention
Quota Account.
Charges are all in USD. Charges are in BDT
Charge
Currency
Usage If used locally then
customers are affected by
the currency conversion
rate. As cards bills are
settled against foreign
currency Accounts.
Operator VISA only VISA and MasterCard
both

Table # 5

3.8 Different types of Standard Chartered Credit Cards;

3.8.1 Local Card

MasterCard Gold
MasterCard Silver
Visa Silver

3.8.2 International Card

Visa Silver
Visa Gold
3.8.3 Cards also can be used in Bangladesh
MasterCard Silver

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 Master Card Gold
Master Card Platinum
Visa Silver

3.8.4 Cricket Card: There is no difference in Visa Silver and

MasterCard Silver from Standard Chartered point of view. Only is that
some retailers accept Visa while some accept MasterCard depending
on the acquiring membership respective retail shops holds. The
merchants of Standard Chartered accept both VISA and MasterCard.
The Standard Chartered Cricket Card is the latest edition to the
Standard Chartered family of Cards. This is an exciting value-packed
offer that has the whole town buzzing. For every Taka spend by the
cardholders SCB will donate a portion of that amount to the cricket
development fund. Whenever Bangladesh wins a Test or an ODI, SCB
will double the reward points on the purchases made by the Cricket
Cardholders in the next 15 days of the victory. Cricket cardholders
will get discounts at different sports stores. The first few successful
applicants will be given a special Cricket benefits. The above-
mentioned benefits are the special benefits that are exclusive to the
Cricket Card. Beside that, Cricket Card holders will get all the usual
benefits of a credit card including rewards program, Safety Net,
InstaBuy, Auto bills Pay etc.

3.9 How do the Auto Bills pay System work?

Auto Bills pay is a simple method of paying utility bills. Cardholders
who enroll into the scheme don’t have to stand in line at different
banks or other collection offices. Currently there are 9 service
provides under the scheme.

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3.9.1 Features and Advantage: There are some features
and advantages of Auto billspay.The are:

Hassle free transaction

Convenient
Easy tracking
Simple and easy to apply.

3.9.2 Participating Merchants:

Mobile Phone Grameen Phone, Aktel,

Citycell, Blink
ISP Accesstel, Agni, BOL
Cable TV: Prisms Digital
Utility Company Desa, Desco

Table # 6
SCB cardholders, who are also customers of these utility companies,
can issue a standing order, through which their bills will be
automatically paid, in full, at the respective billing date. The payment
of the bill is subject to the available credit in the credit limit of the
cardholder.
If there is insufficient credit to meet the bill amount, the billing
company informs the cardholder that his Auto Bills pay has been
declined and he needs to pay in the bill through other channels.It is
possible for a cardholder to pay the bills of more than 1 utility or 2 or
more bills of the same utility can be paid through the same card.
Meaning 1 person can pay his and other’s bills as well.

3.93 Important Points:

Subscription
Documentation

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 Activation
Disputes

3.10 Card cheque

SCB first introduces cheque against credit cards. A cardholder can
issue a cheque for the total limit of the card if the amount is available.
The cheque is account payee. The card holder is charged only 1% of
the amount and can enjoy a max. Of 45 days and min.15 days interest
free period (I the previous month is totally paid).

3.10.1 Features and Advantage;

Wider Acceptance
Flexible Transaction
More Convenience
Safe and Secure
Additional Card Cheque for Supplementary Card holder
Reward
3.10.2 Fees and Charges;
1. card Cheque Book Fees;
BDT 100 for 5 Leaves Cheque Book
BDT 150 for 10 Leaves Cheque Book
2. Card Cheque Prossing Fees;
1`.00% of the Card Cheque transaction amount.

3.10.3 Important Points;

Usage Area
Usage Limit
Subscription
Time Line to get the Cheque Book
Lost Cheque / Cheque Book
Reward Point

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 3.11 E-STATEMENT

3.11.1 What is E-STATEMENT?

The subscriber of e- statement will be able to receive their monthly
statements through e-mail. This is an alternative of printed statement.
Through e-statement, Credit Card statement can be received
anywhere in the world. This program has been launched from 1 st June,
2003.
3.11.2 Features and Advantage:

Fast, easy and hassle free.

No charge.
Multiple emailing facilities.
Increases security and confidentiality.
Hassle free enrollment.

3.11.3 E-Statement Subscription Procedure:

The customer will fill out the application form and it will be
collected by the sales executives.
The sales executives will submit the form to the Portfolio officer.
The application form will be processed by the operations
department.

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 Once e-statement is activated, the customer will immediately
receive a WELCOME Message (email) confirming the receipt of
the completed e-statement application form.
The monthly Credit Card e-statement will be in PDF format,
which can be viewed by Acrobat Reader.
If customer does not have Acrobat Reader, it can be downloaded
from www.Adobe.com for free.

3.12 How come Instabuy is such a big hit?

InstaBuy is the new scheme of Standard Chartered Credit Cards.

This is an
installment plan where SCB Credit Card Holders can transfer their
purchases to the
installment loan account and repay in Equal Monthly installment
(EMI).

3.12.1 Features and Benefits:

Ability to make high volume purchase.
No further credit approval or documents require.
No opening fee.
Convenience to payback in 6,12,18,24 or 36 months on
Installments.
Rewards points earned on all Instabuy.
Enjoy 0% interest rate for purchase from particular merchants.

3.12.2 Important Points:

Valid only in Local cards.

Can transfer more than one transaction to Instabuy plan.
Transaction amount has to be more than BDT 500.

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3.12.3 Repayment factor:

Months Payment Factor Monthly Installment

6 1.0848 BDT 1,446
12 1.1695 BDT 780
18 1.2543 BDT 557
24 1.3390 BDT 446
30 1.4238 BDT 380
36 1.5085 BDT 335

Table # 7

3.13 What is Safety Net ?

It is an insurance Coverage safeguarding Standard Chartered Taka
Cardholders against life’ uncertainties. In case of Death or any
Permanent Total Disability, card outstanding will be waived by the
bank. This program has been launched from 1st June,2003.

3.13.1 Features and Advantage:

Financial security in times of need
In case of total permanent disability or death, the total outstanding on
the credit card will be waived, without causing any inconvenience of
loved ones.
Very nominal monthly charge
Only 0.35% of the last credit card statement balance. For instance,TK.
1000 outstanding will have a charge of only TK. 3.5.It will be charged
to the account on the 1st day of each month.
Free coverage for transactions on supplementary card
Since all supplementary card transactions are charged to the primary
card holder’s account, Safety net also covers supplementary card
holder transaction.

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 Free two months trial period
First two months, Safety Net can be enjoyed absolutely free of charge.
Statement will show “Safety Net Insurance charge”.
During trial period, there will be another reserve transaction.
Automatic and hassle free enrollment
No forms have to be filled.
If no call received within the first two months, card holders will
continue to benefit from Safety Net.
If protection is not preferred, card holders will call them and request
for de-enrollment.

3.13.2 Important Points

Free trial period
For existing clients: next 2 months.
For new card holders: 2 months after his/her card issued.
Insurance Claim
After the incident card holder can call them or write to them, and
necessary papers will be sent to the card holders for claming the
benefits.
Restrictions
As with any other insurance policy, restrictions and disclaimers will apply.
Suggest reading of terms and conditions.
Insurance Company
To be disclosed only if customer requests. American Life Insurance
Company (Alico Bangladesh), a company of repute has been operation
since 1952.

3.13.3 Safety Net Claim Procedure:

Cardholder’s family will contact Customer Service-CSAs will
inform the family o send an application claming Safety net
Insurance and also inform the family that death certificate and
other documents will be required for processing the claim. The
bank will contact them later regarding the documents required.

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 Customer Service will send intimation email to ALICO informing of
a new claim.
ALICO Service will send letter to Standard Chartered Bank asking
for the required document.
Standard Chartered Bank will send letter to cardholder’s family
asking for the documents required by ALICO.
After receipts of the documents from cardholders family,CS will
send the documents to ALICO.
If claim is found valid by ALICO,they will send a cheque to
Standard Chartered Bank.
Standard Chartered Bank will settle the outstanding on the card
and will send a letter to cardholder’s family informing the
settlement.

3.14 SMS BANKING

3.14.1 What is SMS BANKING?

SMS banking is the simplest way of finding out Account’s daily/month-
end balance or Credit Card’s daily outstanding balance and available
limit, statement balance, minimum due amount and payment due
date.
3.14.2 Features and Advantages;
Grameen Phone service:
The SMS banking is available only on Grameen phone through
SMS.
Push! Service:
Through Push service, the information regarding the Credit Card
statement and Account’s month-end balance will be available to the
customer periodically free of charge.

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 PULL! Service:
Through pull service, the customer will be able to access Credit
Card/Account’s previous day’s outstanding by typing a pre-defined
Keyword (CARD for Credit Card and ACC for Account’s.) with a 4 digit
PIN as a message in the mobile phone and then send the message to
2727.
Simple and Convenient:

With SMS banking, customer does not have to wait for the statements
to arrive through mail or call up at Cards Call Centers. SMS banking
will provide 24- hour access to the key financial information of Credit
Card/Account.

3.14.3 SMS Banking Subscription Procedure:

To sing up for SMS banking, the customer needs to fill-out SMS
banking form.
The customer will fill out the application form by providing a 4
digit Pin.
The sales executives will collect and submit the form to the
Portfolio Officer.
The application form will be processed by the operations
departments.
SCB will require 7 working days to activate the service.

3.14.4 Important Points of SMS Banking:

In case of Bank Account, SCB will accept application forms

signed by the authorized signatories of the account only. In case
of Credit Cards will accept application forms signed by the
PRIMARY cardholder only.

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 The accountholder/Cardholder is solely responsible to ensure
the possession of the Mobil phone/Connection assigned to SMS
banking service to maintain the confidentiality of his/her
financial information.

SMS banking Service shall remain effective until otherwise

advised in writing by the Accountholder/Cardholder, which
should reach the Bank at least one week the next statement is
due.

Page 31 of 41
 3.15 What is the Reward Program? And how

does it work

The Rewards Program of the Credit at SCB is a scheme to make the

credit card experience more exciting for the cardholders.
In this program, Cardholders accumulate Treasure Points for the
Purchase on their credit cards. For every TK. 50 of purchase
Cardholders will accumulate 1 Treasure Point. Through the treasure
points, cardholders will be entitled to exclusive gifts or vouchers from
selected merchant establishments across the country.
The Treasure Points necessary for a specific gift is given in the
booklet that each customer receives along with his credit card.
Existing customers were mailed the booklet at the start of the
campaign. The booklets are also available, in limited numbers, at the
Branches.
The customers have no fear of any portion loss here. In other words, if
someone purchases TK. 530 at month’s end, he gets 10 points for the
TK. 500 and the TK. 30 is held and will be added to next month’s

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point’s accumulation. So, customers get points for every Taka that
they purchase on their SCB Credit Card.
Each month’s statement includes the points accumulated by the
customer till date. So customers can track their point’s accumulation.
Customers can redeem their Treasury Points for prizes, by either
filling in a rewards cheque or by calling in at a given number. Within a
week the Reward release Voucher will be sent to the customers.

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 PART IV

4.1 Popular Cards in BANGLADESH:

SCB has various types of Local as well as International Credit Cards.

Among the Credit Cards, Master Card is more popular now a day,
because of the merchant (GP, AKTEL, CITYCELL, BL, etc) out let.
Previously visa Card was popular. But now Master card Gold, Master
Card Silver, Master card Platinum are more popular in Bangladesh.

4.2 Interest rate in Bangladesh:

The interest rate charge for Credit Card is 2.5% monthly and .083%
daily.

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4.3 Customer demand for Credit Card in Bangladesh:

Credit Card has a tremendous demand in Bangladesh; especially SCB

Credit Card. SCB has 100,000 customers of Primary Card and
150,000 customers for Supplementary card. Every day they are
increasing their customer in a numerous way. 300 to 400 customers
they are retaining everyday.

4.4 Social Impact of Credit Card:

Our country has become more developed than before. New

technologies are using in many sector. Earning profit is not only
concern of the business; they also think about the customer
satisfaction. Like other sector private banks are also concern of
customer satisfaction. So, for the sake of the customer private banks
introduced Credit Card in Bangladesh.

Maximum private banks use on-line banking system. Credit Card is

one of part of On-line system. There is also another type of card,
which is ATM card. Both the card got the same popularity in
Bangladesh. By the Credit Card the card holder can purchase
anything form there where the Credit Card is allowed. Credit Card
holder also can draw cash but only from the Credit Card booth. There
is limit specification that, up to that amount, the card holder can
purchase.
Credit Card is nothing but taking short term loan from banks. The
card holder does not need to go to banks to take the loan.
Now a day, the Credit Card is so popular in Bangladesh, that
maximum account holders are using it. Customer like to use it
because, it reduces the risk of carrying cash all the time. Credit Card

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system is changing the view of banking system. People of Bangladesh
are now looking for easier and faster banking system for money
transaction and for taking loans. Safety is another reason of carrying
Credit Card instead of carrying cash. The concept of Credit Card
changed the thinking pattern of the people.

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 PART V

5.1 Conclusion:

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 SCB bank is still regarded as a reliable bank and the growing
number of its customers indicates its acceptance among clients. It
is very common statistical saying that it is 5 times costly to get a
new customer than retaining the customer. It is also noted that
getting a credit card and closing it is expensive. In both cases a
number of time consuming steps have to be taken from the bank
and the customer. Since SCB has been able to increase the number
of card holders, it now should take care on the matter of providing
quality of service.
The various systems of a Credit Card for customer service are a
positive move towards greater quality service. But the bank needs
to overcome the lack of internal co-ordination between the
departments. To keep up the service quality, the service providers
need regular motivations. The customers should also be
enlightened regarding the services of Credit Card and more
advertisement is a must to boost the Banks reputation.
It is very true that the most of the customers do not hesitate to
expression SCB as a better than other bank. But it should be
considered that the customers have very few choices of banks with
which they can actually compare the online service of SCB. The
nationalized banks of Bangladesh already have earned a bad
reputation in serving customers. Again among the foreign private
banks like HSBC, AMEX is the banks that have widened operation
like SCB. Other private banks have limited operation in limited
locations. The local banks have recently focused their attention to
customer service, satisfaction and also Credit Card Service.
Moreover there are a good number of private banks that are
coming into the competition soon. Therefore it is better for SCB not

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 to let the situation be worst and should emphasize on serving
customers effectively and efficiently to ensure better service.

6.1 Recommendation:

The customer should be encouraged by offering new

benefits to retain the Credit Card holders.
Providing an authorization for a card is to sanction an
unsecured loan. There are fraud issues related to it.
Sometimes the agent has to take approval from the
merchant division to provide authorization. Since
authorizations are a vital service provide, t he merchant
division should be more accessible in terms of issuing
Credit Cards.
The customer needs to be encouraged to use the SCB
Credit Card. Special campaigns could be launched for the
purpose. SCB should also be motivated to encourage for
more customers. The Credit Card needs more advertising
and campaigns to encourage customers.

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 7.0 BIBLIOGRAPHY

www.standardchartered.com
www.google.com
Financial Report 03,04,05 of SCB
Md. Imran Ali
Product Service Officer,
Customer Service Assurance Dept.
Hadi Mension Branch, SCB.

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