Advertising Principal of Standard Chartered Bank Limited
In this modern world, banks are playing a key role for the development of an economy. In Bangladesh it is not different in this case. Standard Chartered bank operating their business with the banking activities like consumer banking, wholesale banking, personal banking, global custodial service, international trade management, Global Institutional Banking, global electronic banking with us from 1948. Business opportunities day by day rising, new products andservices come in every month. Need for data and information about different topics and issue is very essential for building and operating a business. Information plays a major role in all sector of a society, whether in social sector or business sector. For this reason SCB Bangladesh always try to think in a different way, which facilitates their existing customers to get their account related information and other products like loan in an easy way.
Standard Chartered Bank opened their operation in Chittagong in 1947 which, at that time was 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. SCB acquired ANZ Grindlays Bank for 1.34 billion dollars in the year 2000. The new venture that is the merger was named as Standard Chartered Grindlays Bank. Now after the takeover it is known as Standard Chartered Bank. Recently it also has acquired AMEX bank and has grown even more in strength and size as well as customer base.
Extensive knowledge of the market and essential expertise in wide financial services underline Standard Chartered Bank’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 33 ATM booths, Phone Banking services through call center, SMS banking and Internet banking on a 24 hour basis through its 24 branches. Standard Chartered Banks services in Bangladesh, ranges from Personal & Corporate Banking to Institutional Banking, Treasury and Custodial services which has resulted in the expansion of the bank since its inception.
Historical Background of SCB
Standard Chartered Bank has a history of more than 150 years. The name of the bank came from the two original banks the Standard Bank of British South Africa and the ―Chartered Bank of India, Australia and China. Of the two banks, the Chartered Bank was established in 1853 by a Royal Charter granted by Queen Victoria of England. The key person behind the Chartered Bank was a Scot, James Wilson who has started The Economist, which is still one of the world’s pre-eminent publications. He visualized the advantages of financing the growing trade links with the areas in the East, where none of the other financial institutions were present at that time and therefore the Chartered Bank opened two branches in 1858 in Chennai and Mumbai.
On the other hand, the Standard Bank was founded by another Scot, John Paterson in 1862. He immigrated to the Cape Province in South Africa and became a successful merchant there. Coming from the similar background, he also visualized the great opportunities through linking between Europe and South Africa.
The Chartered Bank started its operation in Chittagong in 1948, soon after the creation of Pakistan. The branch was opened mainly to facilitate the post war re-establishment and expansion in this part of South Asia. . After the merger of Chartered bank with Standard bank in 1969, the bank increasingly invested in people, technology and premises as its business grew in relation to the country‘s thriving economy.
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 in1972. Today the bank has 25 branches. Among them 16 in Dhaka, 5 in Chittagong, 1 in Narayanganj, Sylhet, Khulna and Bogra respectively. The Head Office is in 67 Gulshan Avenue, Gulshan, Dhaka- 1212. Bangladesh’s operation is under the Middle East and South Asia region, with the controlling office in Dubai. Its correspondent relationship exists with Sonali Bank, which give its access to the countrywide. In 1993, there was an organizational restructuring, which led to the substantial expansion of the bank‘s business. And after that the amount of deposit and loan has increased by more than 5 times within five years and as a whole it shows an overall increasing trend of Standard Chartered Bank‘s market share in terms of deposit and advances.
Expansion of SCB
Acquisition has long been popular vehicle for expanding the scope of the organization into new business areas. Companies typically acquire a company when they lack important competencies (resource or capabilities) and very often they end up purchasing an incumbent company that has those competencies and they do so at a reasonable price.
The acquisition of Grindlays Bank from the ANZ Banking Group by the Standard Chartered Group on 1st October 2000 was opportunity driven. It has given Standard Chartered an opportunity to expand into new areas where it was not operating at all. Moreover, buying Grindlays from ANZ now propels it from number five to number one among international banks in India, with some extra footholds in the Middle East. In addition to that, at 1.3 bn U.S dollars, it is hard to complain that Standard Chartered has overpaid. The financial ease is less compelling for ANZ shareholders, as there are advantages to getting out of a strategically peripheral business.
This acquisition of Grindlays Bank has added 6000 employees and 4 countries to Standard Chartered’s existing network of 27,000 employees and 570 offices in 50 countries. The end result is that Standard Chartered, which went into the 1997 Asian Crisis with strong business in Hong Kong, Singapore and Malaysia, emerges with additional core markets in India and Thailand. Moreover, the deal has made Standard Chartered the largest foreign bank by assets in India, Pakistan and Bangladesh and the second largest in Sri Lanka and the United Arab Emirates. The bank had been seeking to expand in the region since the end of the Asian economic crisis, and has finally become successful in its expansion.
Business Activities of Global SCB
Standard Chartered Bank operates in every Asia Pacific market with the exception of North Korea and some 60 percent of the Group’s profits come from the Asia Pacific region. Hong Kong continues to be major importance to the group and contributes 30 percent of the total profit with around 80 branches in Hong Kong and strong representation in China, Standard Chartered- a note issuing bank in Hong Kong – is well placed to continue playing an important part in Greater China’s development. A resident Group Executive Director manages the Group’s business there.
Consumer banking, Corporate and Institutional Banking are managed out of Singapore each by a Group Executive Director resident in the island state. Other East Asian countries of note for the Group Malaysia, Taiwan and Thailand where, in 1999, the acquired 75 percent interest and management control in Nakornthon.
Standard Chartered is the leading international bank in Sub-Saharan Africa, operating several countries, the most prominent being Kenya, Zambia, Zimbabwe and Ghana. The Group’s operations in the Gulf and south Asia are managed from Dubai. Standard Chartered Bank provides a full range of products and services to its customers all around the world.
To create exceptional value for our clients, investors and staff; through market leadership in providing innovative compliant products and solutions, and by adopting and living our core values.
Vision for Future:
“We have a key role to play in stimulating economic and social development through the services we provide and by being a force for good. The success of our business depends on this.” Peter Sands, Group Chief Executive
At Standard Chartered, they are determined to lead by example within the markets in which they operate. As well as contributing to economic growth through their core business activities, they want to help protect the environment and to have a broader positive impact on the societies in which we live and work. And as they engage as a partner with governments and communities in addressing these wider challenges, they are learning more about how the issues interact with each other and their core business objectives.
By being a high-performing bank, helping people and companies borrow, save and make transactions, they naturally play a role in creating wealth and stimulating growth. From the perspective of shareholder value creation, the more successful a country becomes, the more successful they can be. But long-term growth depends on how well they all manage risk, including the social and environmental issues that can impede or undermine sustainable growth.
I am working under Mortgage Credit Control Unit (MCCU) in Standard Chartered Bank at head office. Before going to my activities I am going to describe briefly about the departmental work. As the name says everything, I am dealing with mortgage related activities. Standard Chartered Bank brings to customers a wonderful world of home financing facilities. To be mention, Standard Chartered Bank does not give any loan on land mortgage. Standard Chartered Bank delighted to offer customers three types of facilities to cater customers housing needs. Mortgage department basically is working with these three types of loan.
- Home Loan: to fulfill customer’s dream of having a new apartment / house.
- Home Credit Loan: to make structural improvements like painting, waterproofing, plumbing, electrical works and much more without worrying for necessary funds. Home credit also facilitates the extension of customer’s home or even purchasing a new property by mortgaging the first property.
- Loan Take Over: facility to let you transfer customer exiting housing/ house renovation loans from any schedule bank/ financial institution to Standard Chartered Bank.
Standard Chartered Bank mortgage facilities:
- Transparent variable interest rate of 14% without any hidden charges.
- Maximum loan amount up to 1 core.
- Loan repayment in up to 300 installments
- Early settlement and partial pre-payment options.
- 0% processing fee on loan take-over and up to BDT 50,000 discount for mortgage facilities.
Who are eligible to take these loans?
- Salaried professionals and doctors with at least 3 years of experience
- Applicant/ applicants must be minimum aggregate monthly income of BDT25,000.
- Salaried professionals must be minimum of 25 years of age and doctors must be minimum of 32 years of age
- Loan approval will depend on applicant’s clean bureau report (CIB).
- Mortgage loan can be finance for both Freehold and Leasehold lands. For Freehold lands, updated city jorip mutation and ground rent receipt are prerequisites.
- Debt-burden ratio is the ratio which calculates the amount of loan that a person can be given by bank depending on his income level. The purpose of this ratio is to identify a person’s ability to pay off loan. In this way the loan does not become burden to the client. Debt-Burden ratio= Total recurring debt/ Gross income
- LTV (Loan to Value): is a process of identifying the amount of mortgage loan. When mortgage loan is given, the amount of loan is calculated on the value of the property. 70% of the property value can be provided as loan. Loan to Value= Mortgage amount/ Appraised amount of property
- Additional Loan Taking a new loan in parallel with an existing loan, with the same interest rate and EMI is called additional loan.
- Loan Top-Up is a process of taking a new loan with a new interest rate and EMI while cancelling the existing one totally. In additional loan Client does not need to do the mortgage again as because he has already did it before while taking the existing loan. But in case of Loan top up client need to do the mortgage again as he has cancelled the existing loan. Comparatively, Loan top up has more benefits than additional loan when the interest rate goes down. This is because loan top up gives the choice between interest rates, but additional loan does not give this opportunity.
- TIN (Taxpayers Identification Number) is a number provide by NBR (National Board of Revenue) to a person who applied for. First three for taxpayers’ location, middle three for taxpayers’ status and end four for taxpayer unique number.TIN Certificate is also important for Loan sanction from bank.
Objective of the project:
- The main objective of this report is to show how Standard Chartered Bank Bangladesh advertises its products, maintaining its brand and communication to its customer.
- Getting familiar with the environment of a multinational financial institution of Bangladesh that is Standard Chartered Bank
- Identify advertising principal of standard chartered bank products.
- Standard Chartered Bank’s logo color symbol.
- To know about the management style and organizational structure of Standard Chartered Bank.
- To suggest necessary measures for the development of Standard Chartered Bank Bangladesh.
In the organization part, most of the information has been collected from different published articles, journals, brochures, web sites and personnel of Standard Chartered Bank. All the information incorporated in this report has been collected both from the primary sources and as well as from the secondary sources.
Primary Source of Information
- Observation during the total internship period.
- Involvement with the operational process.
- Discussion with officials of Standard Chartered Bank
Secondary Source of Information
- Yearly magazine of Standard Chartered Bank Bangladesh
- Standard Chartered Bank facebook fan page.
- Standard Chartered Bank official website: www.sc.com
Advertising is a paid form of no personal communication about an organization, product, service idea or cause by any identified sponsor.Saadiq Platinum Credit Card of Standard Chartered Bank is one of the most important product of SCB. There are many Muslim countries in the world where a lot of people in this religion try to follow the rules conducted by Islam and for those people Standard Chartered Bank came up with a whole new concept of Saadiq where people will be able to do their banking which is related to their Sharia. Depending on the Islamic concept Standard Chartered bank came up with a new credit card which they named Saadiq platinum Credit Card and this card will help the Muslims to conduct their transaction which is completely legal in their religion. This card owns a lot of benefits and to show these benefits to the customers SCB needs a very good advertising of its product. The Saadiq Credit Card is one of the most premium products of Standard Chartered Bank. So they have decided to make its advertising more selective and premium. So this Card have following advertising tools
- Direct Marketing.
- Interactive / internet Marketing
- Personal Selling
- Promotion and media
Direct Marketing is a form of advertising in which physical marketing materials are provided to consumers in order to communicate information about a product or service. Direct marketing does not involve advertisements placed on the internet, on television or over the radio. Types of direct marketing materials include catalogs, mailers and fliers.
For information on evaluating internet sources, look at:
For this International Credit Card Standard Chartered Bank do some direct marketing. Those are listed below;
- Direct Mail: Marketing division of SCB has a huge customer data collection. Customers who strictly follow the rules conducted by Islam, the sales division collected these customers information from various sources. After that SCB analyze those customers and send direct mail to those customers about the Saadiq Platinum Credit Card facilities and benefits and also convey some certain offer based on the time frame.
- Telemarketing: This is one of the regular direct marketing tools. As I have early mentioned about selective data base of the customer group. The call center department of SCB does this telemarketing.
Interactive / Internet Marketing:
In the century of twenty first internet marketing is doing so good. Now a days Internet as an advertising medium to inform, educate and persuade customer. With the help of internet marketing we are able to ensure a lot of benefits, such as
- Company can reach a mass customer area.
- It can also be used as a direct sell tools.
- To communicate and interact with buyers.
- Collect customer database.
- Most inexpensive way to promote and advertise product and service.
- We can also provide customer service and support in the fastest way.
“A Type of promotion that relies on public relations effect of a news story carried usually free by mass media. The main objective of publicity is not sales promotion, but creation of an image through editorial or ‘independent source’ commentary. While the publicist can control the content of the story, he or she may not have any control over its placement or interpretation by the media.”
Standard chartered bank uses many ways for publicity of Saadiq Platinum Credit Card. They releases news through media and also newspapers, organizes meeting, presentation to invited reporters and editors. They also sponsors for different events, teams, or programs to gain public value.
“It is basically delivery of a specially designed message to a prospect by a seller, usually in the form of face-to-face communication, personal correspondence, or a personal telephone conversation. Unlike advertising, a personal sales message can be more specifically targeted to individual prospects and easily altered if the desired behavior does not occur.”
Standard Chartered bank uses personal selling policy in terms of selling Saadiq Platinum Card as well. It is one of the most common policies that Standard Chartered bank follows in terms of promoting their card which is based on the Islamic banking. This face to face communication plays a vital role in promoting the card where the seller can easily describe about the way customers can be benefited. Since Bangladesh is an Islamic country and to promote this card and its benefits to the people Standard Chartered had been following this personal selling policy as a vital tool for their promotion and for the advertisement of the product.
Promotion and Media:
Mass media plays a vital role in promoting any type of product to the customers. It is probably the easiest way to reach the customers through advertisement. Like all organizations Standard chartered also use mass media as the biggest source of advertisement. Through the usage of such media Standard Chartered has flourished their business and opportunities to a great extent. These media has created greater opportunities which standard chartered utilized as their best possible ways. After launching the Islamic banking policy which is named as Saadiq standard chartered made the proper use of mass media to launch different product of such banking and so as they did for Saadiq Platinum Credit Card. The mass media that standard chartered rely on for their promotion are mentioned below-
- Bill boards
- Newspapers/ Magazines
Bill board can be determined as one of the key tool for promoting a brand and its products. Standard Chartered bank makes the most use of this media tool to promote their products. In Bangladesh they do all sorts of bill board advertisement in different places throughout the country and to promote Saadiq platinum credit card they follow thw same policy as well. They have their saadiq platinum card bill-board advertisement in different states of the country.
Poster can also be determined as one of the most effective tool of advertising which Standard Chartered bank follows. They do such poster advertisement in different Standard chartered branches or in front of their ATM booth. And like other advertisement they also advertise their Saadiq Platinum Cards and the benefits that this card holds.
Standard chartered also do promotional activities of their products and services through newspaper and magazines as well. They promote their products and the benefits that the product holds through such media. Most importantly for the products like Saadiq Platinum Card Standard chartered considers newspapers or magazines as the key tool. These Medias play a vital role in promoting such products and offerings.
Discounts and Offerings:
To promote their Saadiq Platinum Card Standard Chartered bank offers discounts in different occasions and their offerings are mentioned below-
- A Shariah Compliant Card Based on “Ujrah Concept” (fixed fee based concept)
- An exotic trip to ‘Seychelles Islands’ and pay 12 months without any finance charge
- Up to 10% off for over 100 destinations on Qatar Airways
- Exclusive 30% off and 12-months 0% Insta Buys offers for Star Cruise packages from Singapore and Malaysia
- Exclusive Buy 1 Get 1 FREE dinner offer at Khazana, Uttara
- Amazing Good Life deals & discounts for Dining, Travel, Shopping, Health, Electronics and many others
- Personalize Platinum Privileges for Hotel, Beauty Care and Healthcare both at home and abroad
- Free Balaka Business Lounge access & Passenger handling service with up to 1 immediate family member at Dhaka International Airport
- Special privileges and up to 50% Discount for staying at selected hotels both home and abroad
- Discounts up to 20% at restaurants around the country
- Exclusive Travel Desk
- Free Supplementary Card
- Card Cheque Facility
- Global Usage Privilege
- Exclusive Shopping & Travel Discounts within VISA global offering
Present banking business is very competitive. In the competitive market to provide service a bank always have to find some new business strategy to provide services. In the light of my study I am providing some recommendation.
- Standard Chartered Bank should develop their product line & quality to ensure better service.
- Train the employees to work more efficiently and confidently to provide fast & quality service to the client.
- The bank should appoint a number of efficient workers in every department.
- The bank should increase the number of branches; on this regard they also take the initiative.
- Standard Chartered Bank has to give emphasis on digital and TV advertisement.
- SCB should visit different universities and should advertise their also.
- The advertising layouts of billboards have to more attractive.
- International TVC can be shown in our country.
- SCB should advertise more their services and products.
Thus by adding these advertising tools Standard Chartered Bank can play a vital role in the banking system as well as the economy of Bangladesh.
During the internship program at SCB, almost the desks have been observed more or less. This internship program, in first, has been arranged for gaining knowledge of practical banking and to compare this practical knowledge with theoretical knowledge. Comparing practical knowledge with theoretical involves identification of weakness in the branch activities and making recommendations for solving the weakness identified. Though I have completed my internship in the Service Delivery of HR, it is not possible to go to the depth of each activities of bank because of time limitation. However, highest effort has been given to achieve the objectives of the internship program. Standard Chartered Bank’s distinctive culture and values act as our moral compass and are the reason why clients and customers choose to bank with us, and our employees want to join and stay with us. SCB’s five core values are about openness, collaboration and putting the needs of the customer first. At all times, we aspire to be courageous, responsive, international, creative and trustworthy.
“Here for good captures the essence of who we are. It’s about sticking by our clients and customers and always trying to do the right thing” Long-term profit can’t be seen in isolation. SCB believes that their sustained success is dependent on healthy economies, where societies flourish.
Of all a bank is an intermediary institution, which deposited customer’s money and again invests it to another customer to reach the goal as well as specific objective. A bank can’t be able to reach the goal until it makes the customer satisfied by providing services as much as the customer needs.
After preparing this report it’s become easy to say that there should be a goal to make the customer always happy and satisfied with the service, only then a bank can run its business safe and soundly in this competitive era.