CONSUMER BEHAVIOUR

PROJECT REPORT
UBL

GROUP MEMBERS:
HASSAN ALI ANSARI-58184
WANIYA RAJPUT-59977
UMAIR AHMED-47117
TASEEN SHAFQUAT-59781

COURSE INSTRUCTOR:
SIR MUHAMMAD HARIS HAYAT

IQRA UNIVERISTY, MAIN CAMPUS, KARACHI.

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ACKNOWLEDGEMENT
First of all, we would like to thank Allah the almighty who have made us capable and blessed us with the
understanding required to complete this project.
A special appreciation to our course teacher Mr. Muhammad Haris Hayat who provided suggestion and
encouragement to us.
Furthermore, we would like to thank and acknowledge the staff of United bank limited (UBL) with much
gratitude for giving us the information required to complete this project. Lastly, we would like to thank Jawad
Rafi , the branch manager who supported us and guided us throughout the project by taking out time for us,
sharing his experience, and answering our questions which helped us a lot in the project.

EXECUTIVE SUMMARY
United Bank Limited is the second biggest confidential business bank in Pakistan with more than 1000 branches
and has a global presence in 10 nations. It is a rapidly expanding bank with numerous employment
opportunities available. It is on the way rerouted for accomplishing greatness; to boost their internal and
external equity and achieve their objectives of greater prosperity.
It tries to find the right resources and believe in setting the right goals for the right jobs. One of the economy's
fundamental requirements is banking operations and services. Accepting deposits and making higher-rate
advances to individuals and others are examples of these. The fundamental functions that banks carry out either
directly or indirectly contribute to the economic and social development of nations. One of Pakistan's largest
banks, UBL offers electronic banking (E-Banking), internet banking (I-Banking), chip credit cards, and ATM
cards among other products and services. It encompasses individuals from all walks of life. They gave the office
as indicated by their client's cravings, which makes the clients faithful with the bank. A brief description of the
bank, its history, its product offerings, and the main areas in which UBL is currently operating serve as the basis
for this report.
Perceiving the requirements of Islamic banking UBL additionally gave number of Islamic financial
administrations like Islamic store plot and Islamic asset based offices.
Table of Contents pg no.
1. Introduction 5
2. Company Background 6
3. Industry Background 7
4. Mission Statement 7
5. Vision statement 7
6. SWOT Analysis 7
 Strength 8
 Weaknesses 8
 Opportunities 8
 Threats 8
7. Porters Five force analysis 9
 Definition 9
 Threats of new entrants 9
 Threats of substitute 9
 Bargaining power of buyers 9
 Bargaining power of suppliers 9-10
 Competitive Rivalry competition (level of competition) 10
8. PESTEL(External Factors) 10-11
9. STP 11
10. Budgeting and scheduling 11
11. Conclusion 12
12. Recommendation 12
13. References 13
14. Appendix 14
INTRODUCTION
In today's dynamic and competitive business landscape, understanding consumer behavior is crucial for
organizations seeking to create successful marketing strategies and gain a competitive edge over others. With
consumers becoming more discerning, demanding, and value-conscious, it has become imperative for
businesses to delve deeper into the consumer decision-making processes. This report aims to provide a
comprehensive analysis of consumer behavior within United Bank Limited (UBL), a prominent financial
institution, shedding light on the factors that influence consumer choices and preferences.
As we have researched about the company on basis of its multi-national values and integrity. UBL is the most
successful and with branches all over Pakistan and other parts of the world. Its employees are among 13,233 and
a diversified client base covering a broad spectrum of segments and industries across the globe. It operates in
the banking sector. It was founded in the Karachi, Pakistan one of the largest banks in the Pakistani private
sector, with over 1,400 branches across Pakistan, 19 branches overseas, and a customer base exceeding 4
million.
The bank has an asset base of more than $15 billion. UBL provides services in wholesale and retail banking
through its network of branches and presence across 12 countries in four continents including UAE, Pakistan,
Qatar, Yemen, China, Oman, US, Iran.
For the year 2020, UBL was designated domestic systemically important bank (D-SIB) by the State Bank of
Pakistan. It is listed on the Pakistan Stock Exchange. Its largest shareholder is the British investment company
Best way Group who own 61.48% of the business.
COMPANY BACKGROUND
It begun with a vision, a vision of unparalleled progress and unmatched excellence true to the spirit of the era!
November 7th 1959, Pakistan witnessed an event that would change the way we banked forever. It was not just
the inauguration of UBL’s first branch at I.I Chandigarh; it was also the birth of the culture of service, a culture
of innovation and a culture of financial excellence. By June 1960, shortly after six months of opening its doors
to the public, UBL had branches in:
• Karachi
• Dacca
• Lahore
• Lyallpur
• Chittagong and Narayanganj
In 1963, UBL became the first bank in Pakistan to have a branch overseas- on William Street in London, United
Kingdom. True to our promise of providing service and care beyond the ordinary to our customers, UBL and
You have had a history. The first saving scheme for school going children was launched as early as 1960 or the
formation of Pakistan’s first Staff College of employees in 1964, UBL, through the motivation of its staff and
the trust of its customers, continued to grow at a spectacular pace. In 1967, UBL had hit the dawn on
information in terms of technology, by introducing computer banking to Pakistan and in 1971, UBL once again
paved the way by launching 3 online branches in Karachi. The newly formed state of Pakistan was witnessing
the boom of industries and commerce – cannoned by a bank that believed in the potential growth of Pakistan.
Small wonder then, by 1978, UBL had a pledged economic department, had acquired two international banks.
UBL also launched supervised credit and small loan schemes for small to medium sized firms as well as
agriculture and had made for itself, a strong international presence for we had branches in 4 continents.
Throughout its history, UBL has kept pace with- and often exceeded the changing needs of changing times.
Keeping the tradition of innovation alive, UBL introduced Pakistan’s first credit card, the UNICARD in 70’s
and left its mark by launching the Pak Rupees traveler checks in 1971. Staying true to its roots, UBL was also
the first bank to have an Islamic banking division and the first to introduce e-banking facilities at Hajj.
In the 1990’s the government of Pakistan decided to change the face of banking by creating a blueprint to
privatize UBL. At this point, financial experts were called on board to set the bank back on course, and with
implementation of relevant changes, the government privatized the bank in the year 2002 – Best way and Al
Ayaan collaborated, forming the cornerstone for the UBL of tomorrow.
Today, UBL opens its eyes to a new vision every day, a vision of resurgent excellence and renewed
commitment to our customers. 52 years into our glorious history – UBL is now part of one of the world’s
largest financial services groups.
INDUSTRY BACKGROUND
Commercial banks play a vital role in the financial sector of Pakistan. They contribute significantly to the
economy. The Commercial banking industry in Pakistan has evolved over the years, adapting to changing
market conditions, and facilitating economic growth and providing financial services to a diverse range of
customers. The State Bank of Pakistan is the central bank responsible for regulating and supervising the
banking industry in Pakistan. It sets policies and guidelines to ensure stability in the banking industry. Pakistan
has various types of commercial banks including nationalized banks, private banks, and foreign banks.
Nationalized banks were initially owned by the government but have gradually been privatized. The
Commercial banking sector in Pakistan is highly competitive serval local and foreign banks operate in the
country. Providing a wide range of financial services to individuals, businesses, and governments entities.
Commercial banks in Pakistan offer a comprehensive range of banking services including deposit accounts,
loans, trade, Finance, remittances, treasury operations, investment banking and electronic banking services.
Efforts are made to increase banking activity in underserved areas and to offer financial products to low-income
individuals and small business. Commercial banks in Pakistan have been embracing technology to enhance
operational efficiency and customer experience. They have initiated digital banking systems to provide
convenient and secure banking services
Pakistan is also a significant player in the Islamic banking industry. Islamic banks operate along conventional
banks offering shariah compliant financial products and services. SBP closely monitors the financial stability of
commercial banks in Pakistan. The regulatory framework requires banks to maintain adequate capital, manage
risks effectively and comply with anti-money laundering (AML) and counter terrorism financing (CTF)
regulations. Commercial banks with international financial institutions such as international finance corporation
(IFC) and Asian Development Finance (ADF).

MISSION STATEMENT
Our customers and our people are at the heart of everything we do; our focus is to deliver operational excellence
and the highest level of regulatory compliance to make a positive contribution to the communities we serve.

VISSION STATEMENT
To be the premier choice for both corporate and consumer sectors by delivering exceptional customer service,
innovative solutions and building long-lasting trust and partnership.

SWOT ANALYSIS
SWOT is useful tool for providing a framework for analysis of an organization. SWOT stands for Strengths,
Weaknesses, Opportunities and Threats. It is a common approach to make assessments in terms of internal and
external environment of the organization, and to formulate strategies analyzing its internal strengths and
weaknesses, external opportunities and threats, coming up is the SWOT analysis for the UBL.
Strengths:
 It is one of the largest private banks with a deposit base of RS. 94883/- millions showing constant
growth over the period from 1999 till the day.
 It has a well-knitted and adequately equipped branch networking system that efficiently covers both the
domestic and international markets.
 It is involved in both corporate and retail banking.
 The bank is actively emerging and is engaged in international trade and foreign exchange.
 It is the 3rd Largest Bank of Pakistan in term of deposits.
 It is the 2nd Largest Privatized Bank of Pakistan

Weaknesses:
 Due to risks such as political, economic and legal etc the bank has suffered losses the main reason was
that of piling up of large amount of unrecoverable loans and debts which have adversely affected the
image of the UBL.
 Accumulated losses pushed the bank to cut down its promotional activities in order to reduce expenses
for last few years.
 During the nationalization life span of the bank political lords used influence in bank business and
selection of employee at each level and thus adversely affected the bank's efficiency and effectiveness.
 Administrative expenses are 51% of the markup revenue.
 Promotions are carried out on annual basis ignoring the importance of capabilities and performance
outputs.
 The bank has large number of employees who are simple graduates with no banking knowledge.

Opportunities:
 Bank can extend its network in other cities of Pakistan like other 4 remote cities, it would increase their
sales.
 Proper orientation of employees in all branches can help them to cope up with foreign banks.
 By bringing new technology and modern business processes will bring the change and increase their
profitability.
 Call center services should be improved to enhance their network.
 The efficiency of stock market and sound exchange reserve level is providing a good opportunity for
effective investment decisions

Threats:
 Increase in competition due to increasing number of foreign and domestic private banks offering highly
specialized and attractive services.
 Growing global technological advancements and adaptation of modern style of management in banking
sectors.
 Extensive promotion campaigns run by competitors.
 Unemployment.
 Lower level of income and prices like problems in the motherland coupled with low rate of
industrialization.
 Geo political adverse conditions.
  Religious factor.
 Lack of consistency in policies due to political instability.

PORTER’S FIVE FORCES ANALYSIS

In 1980 M.E. Porter presented the five forces model that refers to a framework that examines the level of
competition within an industry by analyzing five key forces: the threat of new entrants, the bargaining power of
suppliers, and the bargaining power of buyers, the threat of substitute products or services, and the intensity of
competition.

Threats of New Entrants:

The UBL is providing value added services to its customers. On the other hand market is getting more saturated
and other organizations are getting involved in the bank operations. For example, Telenor is offering Easy
Paisa, etc. At the beginning all the functions like money exchange, currency converter, FOREX, money
transfer, etc. were relates to bank but now a day other organizations are becoming more specialized in these and
hence resulted in declining of profit.

Bargaining Power of Supplier:

Because of concentrated competition and new entrance of foreign banks in the industry the investors are
becoming more conscious in providing the funds for deposits. The funds are dispersed among the banks because
every bank in the industry wants to capture these funds (from potential investors) hence to increase its market
share and to generate more and more profit. It is the fact that supplier’s funds are more critical to market
success. Due to which the bargaining power of supplier has been increased. Financial statements of UBL reveal
that deposits with the bank are decreased from 83% to 79% during the last seven years.

Bargaining Power of Customers:

Customers can be powerful when the switching cost is very low and in the banking sector the customer’s needs
includes favorable profit on investment and getting banking services with low cost. All the banks in Pakistan are
competing for healthy market share so they are trying to provide the better services from other banks by giving
more incentives on their services as a result of which the bargaining power of customers has been increased.
Hence the UBL is facing great difficulty in sustaining his competitive position in the market and this is done by
providing more are more value added services to its customers.

Threats of Substitutes:
Substitute products are also available in the market like Mobi cash services by Mobilink GSM, Easy Paisa by
Telenor Pakistan both are used for transfer of money between two customers. There is also an example of
PayPal, Alert Pay, etc. are best alternatives for the transferring of money all across the globe with minimum
charges or service fee. All these substitute products are creating a big hurdle in earning commission and
generating revenue for the UBL bank.

Rivalry Among The Competitors:

Taking only one factor in due consideration “the degree of product differentiation” it can be seen that all the
banks are providing same kind of services but with different names. It means that the degree of differentiation
for the products is near to zero and it is fact that when the degree of product differentiation is less the
competition is high because customer’s switching cost eliminates. For example, NBP, UBL, Summit Bank,
BOK etc. are offering the services for transfer of money with the help of Xpress Money. And some other banks
like Bank Al-Habib, MCB, and Bank Alflah etc. are using Money Gram for the same activity.

PESTEL ANALYSIS
PEST Analysis is a measurement tool which is used to assess markets for a particular product or a business at a
given time frame. PEST stands for Political, Economic, Social, and Technological factors. Once these factors
are analyzed organizations can take better business decisions.

Political:
Pakistan despite all international and public perceptions, today is a functioning democracy and gradually there
is a change in complexion and composition of legislatures with more educated people and women (27% of
National Assembly and 17% of Senate entering into politics Similarly it helps in designing best strategies to
implement that could support the revival of bank industry. Like in the era of nationalization banks had to suffer
as other industries that's why that impact is still found in the performance of this industry.

Economical:
Although banking sector development is important at the early stage of economic growth, general liberalization
presuming a homogeneous bank role may not necessarily promote growth. The estimated cost structure
indicates that state-owned commercial banks are large enough, while development financial institutions and
private banks can expect to obtain cost-saving advantages by expanding their operations. Since scope
economies are significant, portfolio diversification generally increases bank profits. In addition, privatized
banks are the most efficient, followed by foreign and private banks. Public banks are the least efficient.

Social:
Banks always helped people in improvement of living condition of poor people in various forms like giving
loans to poor for starting business or directly providing them the instruments that could enhance their living
conditions. Similarly UBL always tried to provide the needy people loans on soft terms and helped also to
decrease unemployment by providing job opportunities.

Technological:
Technology changes so rapidly that financial institution has to invest a lot in buying the new technology and
training their employees to use them. UBL purchase new System for interpretation of quantitative and
qualitative data to make financial decision. UBL is also upgrading its existing in-house developed branch
banking software with Core Banking System (CBS), a product of SunGard. Being a centralized and customer
based system, it will provide 360 view of customers and integrated retail and corporate banking modules, thus
ensuring better control for the bank and refined services for customers. UBL introduce Viz card which is mainly
a Debit Card and work like Credit Card.

Environmental:
UBL has collaborated with the Citizen Foundation and the Noorani Foundation to build a better future for the
children. UBL emphasizes CSR (corporate social responsibility) towards the environment by keeping it paper
free and don’t waste any paper. As it is a bank it ensures that all employees receive equal recognition. It doesn’t
offend any culture or race as its customers base it among the diverse in Pakistan.
Legal:
As UBL is a government institute so it collaborates with SBP and government initiatives including Mera
Pakistan Mera Ghar, Prime Minsister Kamyab Jawan, Roshan Digital Account, Saaf Asan Finance providing
state of art financial solutions including to both individuals and businesses across Pakistan

STP
Segmentation, targeting, and positioning (STP) is a marketing model that redefines whom you market your
products to, and how. It makes your marketing communications more focused, relevant, and personalized for
your customers. STP of UBL bank refers to how the bank segments its customers, targets them with its products
and services, and positions itself in the market. UBL bank has the following STP.

Segmentation:
UBL bank segments its customers based on their income level, occupation, lifestyle, and banking needs. It
offers different products and services for different segments, such as consumer banking, commercial banking,
Islamic banking, priority banking, corporate banking, private banking and asset management.

Targeting:
UBL bank targets customers who are looking for convenience, security, innovation and value-added services. It
also targets customers who are loyal, profitable and have a high potential for growth. It uses various channels
and platforms to reach out to its target customers, such as branches, ATMs, online banking, mobile banking and
social media.

Positioning:
Positioning: UBL bank positions itself as a leading and progressive bank that provides a wide range of financial
solutions to its customers. It also positions itself as a customer-centric bank that focuses on customer
satisfaction and loyalty. It uses slogans such as “Where you come first” and “The new face of banking” to
communicate its positioning.

BUDGETING AND SCHEDULING

Budget monitoring of UBL bank in 2023 is a hypothetical scenario that would involve tracking and evaluating
the financial performance and operations of United Bank Limited (UBL), in the year 2023. Based on the latest
available financial statements, UBL recorded a profit before tax of PKR. 34.2 billion for the half year ended
June 30, 2022, a growth of 32% year on year. Its net markup income was PKR. 45.1 billion for the same period,
a growth of 29% over the same period of last year. The bank’s operating expenses stood at PKR. 24.1 billion for
the half year ended June 30, 2022, a growth of 19% over the same period of last year. The bank also recorded a
net provisioning expense of PKR. 0.8 Billion for the half year ended June 30, 2022, mainly to build coverage
against foreign bonds.
As for its scheduling, UBL offers various products and services to its customers through its network of over
1,400 branches across Pakistan and 19 branches overseas. Some of its products include UBL Basic Banking
Account, UBL Asaan Account, UBL First Minor Savings Account, UBL Good Citizen Account, Women’s
Financial Services (Urooj Account), and UBL Paypak Debit Card. The bank also provides a schedule of charges
for its different services on its website.
However, there is no information available on how UBL bank would perform in 2023, as it would depend on
various factors such as the economic conditions, interest rates, customer demand, competition, regulatory
changes, etc.

CONCLUSION
The UBL is well managed with organized structure and having efficient employees. On account of its growth in online
branch system it has bright time ahead in Financial Organizations and contributing towards the development of the country
both economically and socially.
We observed many things at the UBL such as its working procedures, policies, and many other aspects of practical nature
of a big organization like United Bank. On the basis of all these observations, we have come to the conclusion that the
banking field is more competitive and dynamic now a day. There are a lot of financial institutions working side by side. In
this competitive environment the bank must have to use more innovative and creative ideas so that to attract customer.
Taking care of these things the UBL have started Uni-remote computerized system through which one can send money
from one place to another in no time. This is a good step towards its improvement
UBL is the reshaping bank and investing in state of the art technology to give innovative products and services. UBL is now
working as a private bank. Its equity position is very strong and it can compete its competitor in every aspect of banking.
United Bank is one of the oldest and more settled bank of Pakistan in fact it remained in business of financial services for
many years. During its course of history United Bank contributed a lot in the development and fostering the growth of
economy in the country.
Despite all these facts there are some areas, which needs to be improved, like it should focus on its organization structure,
Equal distribution of work should be done and bring professional people to all of its branches in order to meet the
requirements of a new era and to fulfill the needs of 21stcentury

RECOMMENDATION
UBL is doing great and is one of the well-known company, but still the recommendation for their more growth
and diversity is to increase their services and work on different domains too such as providing loans with
minimum interest rates as compared to other banks. Furthermore, they can also provide their services on off
days (holidays) too.
REFRENCES
All of the references and sources from where the data gathered for this report are mentioned herewith for your
kind concern.
https://ubldigital.com/Portals/0/pdf/UBL-Annual-Financial-Statements-2022-Standalone.pdf
https://en.wikipedia.org/wiki/United_Bank_Limited
https://www.ubluk.com/media/1330/ubl-uk-annual-report-2022.pdf
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