Advantage and Potential Risk of Online Banking: Study on Dhaka bank

Advantage and Potential Risk of Online Banking

A Study on: Dhaka bank Limited

Online Banking is playing a significant role in banking sector. Now-a-days online banking is a common feature of any bank. Technological development brought many innovations in different service sector. Online banking is one of them where people can do their business operation through internet and data network. Online banking facility offers many advantages, that are why banking institution and their clients are using it every day. But the system also bears some disadvantages and risk. Since the system is based on networking and internet, computer hackers always tried to penetrate the security system of online banking. According to my topic, I will discuss the advantage and potential risk of online banking in general.

The whole works to complete my study have been segregated into 5 chapters. In chapter 1 I gave introduction of the study. Chapter 2 covers the background of the report. Chapter 3 covers research methodology, chapter 4 covers findings and analysis and chapter 5 includes recommendation and conclusion of the study. All this chapters explain my working in Dhaka Bank Limited, which indicates my effective learning through the internship program.

Introduction

Banking system occupies an important place in a nation’s economy because of its intermediary role; it ensured allocation and keeps up the momentum of economic activities. A banking institution is indispensable in a modern sociality vide its various socio-economical perspectives. It plays a crucial role in the economic development of country and forms the care at the money market in any costly. Bangladesh economy has been experiencing a rapid growth since the 90’s.

Urbanization and lifestyle changes concurrent with the economic development created demand for banking products and services. In a developing country like Bangladesh the banking system as a whole has a vital role to playing the progress of economic development and growth. The overall purpose of banking is not only the collect money from surplus unit and transfers it to the deficit unit, but also grip the foreign exchange business with utmost emphasis to the earning of foreign exchange by the means of export and wages earners remittance to well contribute in favor of economic growth and development of the emergent nations like Bangladesh.

Bangladesh pursues a liberal market economy. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector, which is responsible for promoting healthy growth and development of the banking system. Banks and insurance companies, both in the private and public sectors, are operating freely and contributing to the economy. The commercial banking system dominates Bangladesh’s financial sector.

Dhaka Bank Limited (DBL) is a private-owned commercial bank in Bangladesh established by a group of highly acclaimed group of businessmen. The Bank was incorporated as a public limited company under the Companies Act. 1994.

Rationale for Choosing this Topic:

Excellence in Banking with highly motivated personnel is the mission of Dhaka Bank Limited where it is to be achieved by highly qualifies team of management professionals. Competent employees do not remain competent forever. Skills deteriorate and can become obsolete.

Today’s working climate demands a great deal of commitment and effort from employees, who in turn naturally expect a great deal more from their employers. As a result of fact of change, to consider employee satisfaction, to keep them update with the dynamic business environment and to maintain quality of workforce DBL put a determination on training of employees. Such training is not only the enhancement of company profile but also the development of the incumbents.

As I am major in Human Resources Management, The impact of Training on Career progression of bankers is very important topic for me to study. Through this report I have been able find out the effectiveness, need and importance level of training among the employees in the bank. Through this study my purpose is to find the impact of training towards the employees, weather this training is helping them in workplace or not, because a proper training can improve the quality and knowledge of employee which definitely help the bank to improve in the banking market. During my internship period I have closely worked with performance management unit, specifically directly with the career development unit, which inclined me to work on the impact of Training on Career progression of bankers in the bank. So, considering the significance of the topic and its profound impact over the organization as well as employees, I decided to work on to get the real picture of impact of Training on Career progression of bankers in Dhaka Bank Ltd.

Objective of the Report:

General Objective:

The general objective of the report is the impact of Training on Career progression of bankers at Dhaka Bank Ltd

Specific Objectives:

The specific objectives of this report are as follows:

To find out whether the training is relevant to job of the employee properly.
To find out whether the current training process is equivalent to need of employee in work.
To find out whether the provides guideline in the training is for organizational as well as individual improvement.
To find out whether the training helping employee to increase the ability to manage the client
To Find out whether the training helping employee to accept supervision and constructive criticism power.
To find out whether the training help employee to increase the ability to manage the client.
To find out whether the training is helping you to plan and balance your workload.
To find out whether the Training program help employees set and achieve meaningful goals
To find out whether the performance improves after process the training program.
To find out whether the Training improves motivation power among employee.
To find out whether the purpose of training is fulfilled completely in the work place.
To find out whether the training creates an effective relationship in employees and managers through foundation training.
To find out whether the employees are satisfied with the existing training program that they are providing to them.

Training Principles of Dhaka Bank Limited:

Dhaka Bank is fully committed to ensuring that all members or staffs have the relevant knowledge, skills & expertise to perform their work to consistently high standards and to achieve their full potential compatible with BDL’s Policy and priorities. It is also recognized that the training and development of staff members is fundamental to ensure the effective provision and quality of its work within the communities where they work. The principles underlying this policy are-

Individuals will be provided with appropriate training & development for the needs and requirements of their current role and any incremental changes that may occur.
Training & development activities must support the achievement of the bank’s strategic objectives.
Training & development is an integral part of the management process and as such is a primary responsibility of management at all levels.
All employees will be treated equally in relation to the provision of training & development opportunities and will be provided with equal access to training & development opportunities relevant to their job requirement.

Methods of Training in DBL:

With the training objectives defined and learning principles in mind, Dhaka Bank Limited focus to choose appropriate training methods. Dhaka Bank Limited is prone to use a combination of training methods to ensure that employees understand how to perform smoothly in market and how to recognize their own role in making the process efficient & effective.

The training method of Dhaka Bank is usually centered on the common two types-

1. On-the-Job Training:

On the job training is conducted at the bank and in the context of the actual job. Here the training setting is also the performance setting and the transfer of the job is maximized. For the employees who are new in any department, DBL tries to provide on the job training to get the work system properly.

2. Off-the-Job Training:

DBL amid this training conduct in a location specifically designated for training. It may be near the workplace or away from work ate special training center or training institute or other training methods not directly attached with work.

DBL with a systematic procedure or techniques use the above mentioned methods to provide training in different ways. Some methods are hereby-

3. Coaching or Understudy Method: This is the most familiar type of on-the-job training. An experienced person or the trainee’s supervisors of DBL trains the employee. It involve simply acquiring skills by observing the supervisor or having the supervisor or job expert show the new employee the ropes, step by step.

4. Job Rotation: In job rotation an employee usually MTO or TO moves from job to job at planned intervals. It is another On-the-job technique. MTO/TO who have been posted in the head office, must be placed in nearer Branches for two (2) days in week during the training period to furnish their practical knowledge as per job rotation plan.

During the job rotation they will be given-

6 days training on introducing DBL completely,
55 days training on general banking,
15 days training on general banking operation is Flexcube Retail (FCR) module,
70 days training on credit operations,
10 days training on credit operations Flexcube Retail (FCR) module.

5. Presentation Methods: Presentation methods are methods in which trainees are passive recipients of information. This information may include facts, processes and problem solving methods. DBL amid this method provide training by-

Lecture- It involves trainer communicating through spoken words what they want the trainees to learn. It may be a “Standard Lecture”, “Team Teaching”, “Guest Speakers” or “Panels”.

Audiovisual Technique- It includes overheads, slides and video. It has been used by DBL for improving communications skill, interviewing skill and customer service skills.

6. Hands-On Methods: Hands methods are training methods that require the trainee to be actively involved in learning. The training process with this method are-

Self-Directed Learning- The learning process is controlled by the trainee. The trainer works only as facilitator. That is trainers are available to evaluate learning or answer questions for the trainee.

Case Studies- A case study is a description about how employees or an organization deal with a difficult situation. Trainees are required to analyze and critique the actions taken, indicating the appropriate actions and suggesting what might have done differently.

7. Group Building Methods: Group building methods are training methods designed to improve team or group effectiveness. DBL directs the training at improving the trainees’ skill as well as team effectiveness. The method provides the following types of training-

Team Training- Team training coordinates the performance of individuals who work together to achieve a common goal. Employees obviously need technical skill that can help to accomplish its risk. But team members also needs skills in communication, adaptability, conflict resolution and other team work issues. Team training focus on these matters to develop the said.

Action Learning- Action learning gives team or work groups an actual problem. Team or work group has them to solve and commit an action plan and then holds them accountable for carrying out the plan.

Training Delivery Program in Dhaka Bank:

Training needs of employee are identified on a regular basis. Accordingly they are nominated for trainings. The training are delivered by the following programs-

In-House Training (DBTI):

In- House training of Dhaka Bank is provided at DBTI or Dhaka Bank training Institute.DBL believes that human recourse development is the most important part in any organization for sustainability, growth, development and expansion.

The need for professional excellence was duly recognized by its Broad of Directors and Management, and it has been evident since December 1999 by the decision to create Bank training institute that came onto reality in 2000. The DBTI is committed to Develop the skill, knowledge and motivation among the employee through different training programs.

Some activities of DBTI for developing professional excellence are hereby-

DBTI conducts various courses, workshops, executive development programs mainly for Officers and Executives of the bank.
Orientation training is conducted for the new employees to give the overall view of the bank and introduce them with the organizational culture. Usually MTO, TO and TCO get this orientation training.
Besides conventional banking related trainings the DBTI also arrange, facilitate and conduct various Executive Development Programs, workshops, discussion meetings and exchange views for the improvements in banking challenges in 21st century.

The above mentioned activities of DBTI comes into act by the support of the followings-

Academics & Logistics- Besides the Principal of DBTI and internal resource person, DBTI invited experienced and knowledgeable external resource persons including MDs, DMDs, Professors, Principals, Secretaries, Directors, business experts and international resource persons. They lead the class sessions with their versatile knowledge & experience and develop participants with holistic approaches and broader perception of training.
DBTI Library- For its participants, DBTI has a library with books on banking, economics, accounting, statistics, marking, business administration, English Language, law, information technology, etc. and different local and international journals and periodicals.
Training Consultancy/Tic-up/Partnership- As a complete Training Institute DBTI train not only employees of DBL, other fellows of the banking fraternity are also trained Social Islami Bank Ltd, Bank Asia Ltd, Premier Bank Ltd, EXIM Bank Ltd, Jamuna Bank Ltd, Bangladesh Development Bank Ltd.( BDBL) etc.

Local/ Regional Training:

Local/ Regional trainings are the training programs inside the country conducted by different renowned and premier institute of the state. For the development of career through training and to build excellent professionalism DBL nominate its employees for the said institutes. Also these institutes offer different training courses, workshops, seminars, conference and send invitation of participation to the ‘ Career Development Unit’ under “Human Resource Division” of DBL. These training institutes are-

BIBM: Bangladesh Institute of Bank Management
BBTA- Bangladesh Bank Training Academy
DSE- Dhaka Stock Exchange
BPATC- Bangladesh Public Administration Training Center
DCCI Business Institute
BIM- Bangladesh Institute of Management
BSHRM- Bangladesh Society of Human Resource Management
BIDS- Bangladesh Institute of Development Studies

Nominated employees are sent to the training under the full cost of bank. On return from training they are required to submit a report on training. Also the results of training are sent to the “Career Development Unit” by the training institute.

Overseas Training:

Dhaka Bank Limited does not confine their training scope within the state. They move on beyond borders for the development of employees adjusting with the international arena.

Whenever an opportunity comes up, an employee comes up, an employee may be sent abroad for training and development so that they gain knowledge and experience and perform better at work place. Different abroad Training Institutes send invitation to participate in various training programs where nominated employees of DBL are sent.

Research Design

Research design is a plan or structure for research that includes procedures for selection of participants, control of variables, implementation of treatment, observation of dependent variables (data collection) and ethical implementation. It constitutes the blue-print for collection, measurement and analysis of data. A research design is the specification of methods and procedures for acquiring the information needed. It is the over-all operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedures (Green, E., Tull, Donald, ., & Geruld, 1970). It details the procedures necessary for obtaining the information needed to structure or solve research problems. Research designs can be broadly classified as exploratory or conclusive (Malhotra & Dash, 2010).

Exploratory Research is the research design, which has its primary objective the provision of insights into comprehension of the problem situation confronting the researcher. Exploratory research process is flexible and unstructured. Moreover, the sample is small and no representative and primary data analysis is qualitative (Malhotra & Dash, 2010). In contrast, Conclusive research is designed to assist the decision maker in determining, evaluating and selecting the best course of action to take in a given situation. It test hypothesis and examine relationships. Moreover, the research process is formal and structured. Sample is large and representative and the data analysis is quantitative. Findings used in conclusive research design used as input into decision making. Generally, conclusive research design is descriptive or casual in nature (Malhotra & Dash, 2010).

The research design of this report is formal and structured. It is based on representative samples and data obtained are subjected to quantitative analysis. Moreover, the findings from this research are going to be conclusive in nature as the input might be taken into consideration by Dhaka Bank for decision making. Hence, the research design of this report is conclusive research design.

Sources of Data Collection:

Data collection is any process of preparing and collecting data, as part of a process improvement or similar project. The purpose of data collection is to obtain information to keep on record, to make decisions about important issues, or to pass information on to others. Data are primarily collected to provide information regarding a specific topic (Australian Bureau of Statistics).The primary data is originated by a researcher for the specific purpose of addressing the problem at hand. On the other hand, Secondary data are data that have already been collected for purpose other than the problem at hand. (Malhotra & Dash, 2010).

This report is mainly based on the primary data. The required data has been collected from the employees of Dhaka Bank.

The sources of data collection for this research are given below:

Primary data sources:

Observation and personal interview with the employees of Dhaka Bank
Questionnaire used for officials.
Secondary Data Sources:
Employee Database.
Journals, books, Annual reports of Dhaka Bank.
Official websites of Dhaka Bank.

Data Collection Technique:

The personal interviews with structured questionnaire were the primary data collection instrument.

The questionnaire was designed in open-ended question; every individual personnel take part in interview.

Data Collection Time:

For this research the data were collected between the months of June 15 to August 7.

Population:

Population is the aggregate of all the elements, sharing some common set of characteristics that comprises the universe for the purpose of the research problem. The population parameters are numbers and information about population parameters can be obtained by samples. (Malhotra & Dash, 2010). Since there are 1645 employees in Dhaka bank (Up to January 2013), the total population size is 1645.

Sample:

Sample is a complete enumeration of the elements of a population or study objects (Malhotra & Dash, 2010).

In order to be able to generalize the analysis and findings of this report, the sample has to represent the whole study population. The sample was therefore drawn from different levels of employees in different divisions and branches. Therefore, the sample was selected from different levels in different divisions and branch of Dhaka Bank: Corporate Banking Division, Credit Risk Management Division, Finance and Accounts Division, Legal and Recovery Unit, Syndication and Structured Finance unit, SME unit, Human Resources Division and Foreign Exchange Branch. Total 15 samples are taken to conduct the research on the impact of training of Dhaka Bank covering 7 Divisions and 1 Branch.

Elements – male or female respondent (Excluding Management Trainee officer, Trainee Officer and supporting stuff)
Sampling units- Employee

Project Part

Training helps employee to get knowledge and idea about upcoming banking system to the employee. From entry level to upper level, all employee need training to get idea about different changes and to improve them. As my project is to find out “The impact of Training on Career progression in banks” so I take talk with fifteen employees who have take part in different training program to know how this training is helping them in present and in future time. After talking with them I find out some positive and negative key point about their experience in training program-

Positive impact of Employee:

Entry Level:

Basic Knowledge about bank: DBL provides “Foundation Training” for entry level employee in DBTI. This training is mandatory for all employee who join as MTO, TO or TCO. As the employee are joining new in organization so this training gives a brief idea about Dhaka Bank Limited and the culture and environment of this organization before they started real work. This is the most important training for the entry level employee.

Give knowledge about current work and banking system: “Foundation Training” training is relevant to employee in their job and this training meets employees’ expectation from training. Foundation Training organized for the fresh employee to gets idea about the overall banking system and current working policy. At the same time this training objective was clearly defined to their participants as because they get the full idea of banking policy and process after doing this training .Without this training it will be very tough for employee to work as a new comer in the bank and balance and arrange the work properly.

Motivate to work in different division: Training motivated employee to work in different division as “Foundation Training” training give knowledge in every sector of bank like general banking, human resource division, foreign trade and accounts division. After placing employee in different position and division this training procedure take place so as this training discus about the entire sector along with his/her division and engage them in different case study and presentation so they get idea and knowledge in most of the work system of bank sector in every division

Build the confident: Training increases the confident level to work in any sector of bank as they become knowledgeable about all type of work in bank. In training they present about different topic about banking and study about the topic. The trainer give some guideline for working system, at the same time the discussion of trainer about their question reduce the confusion and made them more confident.

Appreciation and prizes influence to work more effectively: DBL give Appreciation latter to the participants who score 1st to 3^rd, this appreciation motivate employee and influence to work more effectively. For this reward employee give concentration which reduce the gap of knowledge and make them rich in facts.

Mid Level:

Plan and balance workload: For mid level employee DBL provides different type of training program. This training help employee to plan and balance the workload, specially the employee who work in Information and technology division, risk management division and in foreign exchange division. They have lot of work and they need to plan the work and do the work according to that plan. Not only this division employees, training helps all division employees to plan and balance as in training they get knowledge and have a brief discussion about planning in work place. “Trade finance and foreign trade training” helps the employee of foreign exchange branch, on that training they get the idea and knowledge to plan in work of foreign trade.

Ability to manage the client: Training helps the employee to manage the clients who specially deal with the client directly. After doing training now employee are able to manage the client perfectly and can give guide the client about their requirement. Training help employee to solve the confusion and problem of client. This makes a good the relationship with client and bank.

To work under the pressure in any situation: In Most of the training the trainer constantly share their idea and thought with the trainee and trainer try to engage the trainee more in training by asking continues question. Many employee said that this type of training helping them to work under pressure. As in training they create a pressure able atmosphere and they have to deal with this situation. So this practice helps them in their real work place.

More confident in own work: The main motive of any training is to give knowledge, make employee motivated, to make them work more effectively and confident. As training increases the power of knowledge and reduces the confusion about their current work so training makes them more confident in own work. Many employees said that just participate in any training help them to gain idea and help them to get critical knowledge which was unknown to them and it increase their confident level.

Get idea about technique and knowledge: Training help to get all the technique and knowledge about different situation, topic, difficulty that an employee expects from the training. Experienced trainer share and discus about different difficult situation and topic and that get the idea about technique how to improve in work place.

Work in organized way: Most of the trainers are well organized and knowledgeable about the topic content that help all the participants to work in organized way. Employee said that the trainer have a good quality to engage in the training and give a idea about how to work so it help employee to work in organized way.

Top Level:

Constructive criticism power: For the upper level employee constructive criticism power is very important. For them it’s more like discussion season then training. From the discussion they short out constructive stuff like how to increase the progress of bank, have to give more employee benefit so that they can reduce the turnover rate in the Dhaka Bank.

Increase the managing power of employee: Most of the upper level employees are head of any division, manager, in charge or second person in any division. They need to have the quality to manage the employee as many employee work under them. By rotation these upper class employee getting continuous Training and training helping them to manage the employee, at the same time they get the idea about how to engage employee in work place.

Get knowledge to achieve the organizational goal: It’s a one of the important role of very employee to get the knowledge to achieve the organizational goal. Many foraging training are organizing by DBL to make the head employee knowledgeable about this. And many training helping them to achieve the organizational goal with their vision ‘Excellence in Banking”.

Some aspects that did not meet of employees’ expectation from training:

Time Duration: Most of the employees are concern about time duration. The time duration of the “foundation Training” should increased from fifteen days to 1 month, most of the employee are saying that as they all take part in it. Because as the time period is restricted so the trainer covered the topic so fast and sometime they could not understand the topic and could not ask question frequently as the timing is short.

Some employee also said that there are many training which organized for long period but it do not need that much time like “ Disciplinary Action” training take place for 7 days but the participants think that 3 days are quite good to train the employee.

Create Confusion: Some time short time in the training period create problem for employee. Because as the time period is limited so the trainer covered the topic so fast and sometime they face difficult to understand the theme. As the training time is short they could not ask the question and confusion remain in their mind.

At the same time long time training create confusion as they covered any topic rather than the main theme as the trainer need to spend time, so the trainee get scattered information and that training help less in their work place.

Nominating Employee for Training: In some training entry level or mid level employee participants in the training program along with high designation people. So sometime entry and mid level employee face some difficulty to ask question while one higher level participant is talking and could not clear the confusion. So he thinks that the training should be divided in two phases, one for junior level employee and another for higher level employee

Suggestions of employee about training Program:

Employee thinks that the training should be divided in two phases, one for junior level employee and another for higher level employee so that they feel free to ask any question and clear the confusion.
Employee also suggested that the time period need to fix along with the requirement.
At the same time they think that rotation is important while nominating the employee for the training. Sometime they face a problem that one employee is going for training more than other employee.

Recommendation:

Dhaka Bank Limited to keep its competitive nature in pace and to run with its motto of “Excellence in Banking” must put some attention on its training issues. Such issues are not only necessary for the organizations’ growth but also important for employees’ career development. This is required to retain and maintain the most efficient and effective stuffs who are received with the dynamic world.

Some recommendations to have more good training program-

Need to update and maintain training program database continually on basis of performance appraisal feedback.
HRD should prepare the annual training calendar based on the training need assessment. A needs assessment is a systematic process for determining and addressing needs, or “gaps” between current conditions and desired conditions or “wants”. Training need assessment will help to identify training needs among employee and it is important for DBL, So that equally all desired employee can sort out easily and could drive them in the right training program to get the knowledge properly.
Provide variety of example while teaching concepts or skills in the training program. Supervisor need to maintain a list of topic that they are going to cover and give that to employee. A key purpose of the training is to identify gaps in an employee’s skills or competencies as well as opportunities for improvement and development though training and development programs
HRD can make a short review book specially for “Foundation Training Program” as employee could not get all the idea and knowledge about the banking system in short time so if they provide a book with the text it may help them after the training program in the work place and it will also help them to get rid of the confusion about any topic.
The Training Evaluation form is necessary for improvement in any training. So HRD need to update with the evaluation form and need to be fill up by every employee after every training season to know their feedback, weather the training have reached their expectation and to know their satisfaction and dissatisfaction. At the same time this training evaluation form gives a brief idea about the sector in which the trainee wants to see the improvement in the training program.
Contract with some renowned training institutes, Local and overseas, to provide training in “InHouse DBTI” along with the institute that are helping Dhaka Bank in training program. At the same time DBTI can maintain a good relation with the sponsors so that they can support DBL more by offering different training program and help to reach their goal.

All these above mentioned recommendation can make the training more acceptable to the trainees and also can have impact on their career. A career oriented employee is always a good choice for any company, so DBL must keep focus on how to bring new dimensions on training and retain its career oriented incumbents by providing appropriate training facilities.

Conclusion:

Human Resource Management always acts to bring out potentials, to develop quality and to also meet all the demand of the work force. In doing this training one of the pillars of HRM, performs both of the company and for the employee.

Training helps to enrich the quality of employees to batter performance. Thus performance affects the activities of the organization to stand out competitive in the ever changing market. As a result of need the training is repeated from the organizational part to have well developed career employee base to remain in the rapid growth.

Again employees feel the necessity of training to emulate in the corporate world flooded with career oriented members. A well trained employee is always confident and satisfied in the motion to have a developing career earned amidst of various training. The need of training in career development also reverberates from employees’ part.

So, a proper training in an appropriate method to the right person can differentiate the organization by having flourished career employee which will work as strength of any organization. By such training employees career get enhanced that effects the overall organization and employee as well. So Training has some impact on Career progression in Banks.