Customer Satisfaction on the Perspective of NCC Bank Limited

Main purpose of this report is to analysis Customer Satisfaction on the Perspective of National Credit and Commerce Bank Limited (NCCBL) and services that bank offers. Other objectives are to determine the customer’s expectation on banking service. Report also find out what are the key facilities that influence the satisfaction level of customers? Finally suggest ways of improving the service standard that accommodates a rapidly growing customer volume.

OBJECTIVE OF THE REPORT

Broad Objective: The overall aim of the study is to assess the satisfaction of NCCBL’s banking services in among the users.

Specific Objective: The specific objectives of the study are:

• The satisfaction level of customers
• Determine the customer’s expectation on banking service
• What are the key facilities that influence the satisfaction level of customers?
• The deficiency of current service.
• To suggest ways of improving the service standard that accommodates a rapidly growing customer volume.

METHODOLOGY

Questionnaire

As part of the investigation of customer’s satisfaction about the banking service of NCCBL the interview respondents were given a multiple choice questionnaire to explore their understanding related to this banking service. An exploratory research was done to establish multiple choice questionnaires so that it will reveal the ideas of customer. The questionnaire consists of 18 questions with multiple choices and liker scale. Respondents were engaged at a variety of ideas with face-to-face interviews or to persuade them to self complete and return the questionnaires.

Sampling

The population designed for this study limited to Dhanmondi branch. Non probability sampling procedures were used for selecting the samples. It was selected through convenience and judgement. Clients of NCCBL are mainly the targeted population like businesspersons, corporate clients, small and medium sized enterprises, employees, professionals, students.

Sample size

The sample size for the survey was 51 altogether. Among these 21 respondents from saving account holder, 9 from current account holder, 8 from loan customer and the rest 13 from others like money gram customers, special saving scheme customer. Before starting my survey my sample was 75. But because of time limitation it decreased by 51.

Consumers Occupation

Methods of sample selection

In order to cover a wide range of respondents and to achieve the research objectives, the attempt was made to select the sample from the existing account holder from all the departments of the Dhanmondi Branch.

 Data Analysis Method

Data Analysis was done mostly with the help of SPSS through table and statistical data comparison tools like Average, Standard Deviation, Mean, cross tabulation, descriptive analysis and frequency analysis.

ORGANIZATION

Historical Background

National credit and commerce bank Ltd. (NCCBL) bears a unique history of its own. The organization started its journey in the financial sector of the country as an investment company back in 1985. The aim of the company was to mobilize resources from within and invest them in such way so as to develop country’s Industrial and Trade Sector and playing a catalyst role in the formation of capital market as well. Its membership with the bourse helped the company to a great extent in this regard. The company operated up to 1992 with 16 branches and thereafter with the permission of the Central Bank converted in to a full fledged private commercial Bank in 1993 with paid up capital of Tk. 39.00 crore to serve the nation from a broader platform.

During last 12 years of its operation NCC Bank Ltd. Has acquired commendable reputation by providing sincere personalized service to its customers in a technology based environment.

The bank has set up a new standard in financing in the Industrial, Trade and Foreign Exchange business. Its various deposit and credit products have also attracted the clients – both corporate and individual who feel comfort in doing business with the Bank.

ORGANIZATIONAL CULTURE

NCCBL Mission

To mobilize resources from within to contribute to development and growth of the country and also to play a catalyst role in the formation of capital market.

NCCBL Vision

To become the best Bank of the land in respect of service, profitability and strength.

Other information of the Bank

Authorized Capital                          Tk. 250.00 crore

Paid up Capital                                Tk. 60.78 crore

Proposed Bonus Share-2004        Tk. 18.24 crore

Reserve Fund & Other Reserve    Tk. 57.83 crore

Total Assets                          Tk. 2146.90 crore

Equity Fund                         Tk. 136.85 crore

Number of Branches                       36

Number of Employees                    925

Capital Adequacy Ratio                  9.05

PRODUCTS & SERVICES

Credit Products

The Bank has a wide range of Product line to suit the need of the people of all strata. In addition to conventional Banking-Products both Asset and liability sides the bank offers special credit products for its customers, these are:

• Consumer Financing
• Lease Financing
• Small Business Loan
• Festival Loan
• Housing Loan
• Long-term & Short-term Financing
• Syndication
• Real-estate and Civil Construction
• SME and Agro-based

Consumer Financing

NCCBL, keeping in mind the economic development and helping the fixed income group in fulfilling their demand to upgrade the standard of living will continue as before consumer finance scheme for:

• Household appliances
• Furniture & Fixture
• Air Conditioner
• Fax Machine & Cellular Phone
• Motor Cycle/Car
• Other Equipments

Lease Financing

NCCBL to keep its contribution to the growth of national GDP, acceleration the total economic development by infusing the fund in productive sector in more efficient and effective way; diversify its portfolio and satisfy the customers’ need would go for Lease Finance for:

• Setting up of Small and Cottage Industries/Projects.
• BMRE of existing projects.
• Transports (both Road & Marine)
• Medical Equipment/surgical/clinical/Lab equipment/X-Ray machine etc
• Construction Equipment
• Other fixed assets of other Productive and service oriented ventures.

Current and Saving Account

A commercial bank is a lender of borrowed money. It borrows from those who have surplus fund, and lend to those who are in need of temporary accommodation.

To open an account (saving or current) in NCCBL a person need following items for identification;

• Introduction from a person whose identity has been duly verified
• Copy of Passport
• Driving license
• TIN registration certificate
• Voter ID card
• Passport size photograph of the account holder along with Transaction Profile.
• Known Your Customer Form (KYC)

ANALYSIS OF RESPONSES

After getting all the data from the clients I have analyzed through the SPSS software using different statistical tools to find out the satisfaction level of the customers. Mainly I have used the popular tools for measuring satisfaction of the customer is standard deviation, frequency analysis, cross tabulation.

DESCRIPTIVE ANALYSIS

The transformation of raw data into a form that will make them easy to understand and interpret; rearranging, ordering, and manipulating data to generate descriptive information. Here I picked “Likert Scales” question for descriptive analysis.

Descriptive Statistics

Though there are five options for this question respondents were selected three answers. Those are highly satisfied, satisfied and moderate. Mean 2.20 indicates that more than half number of respondents (31) select satisfied answer. They neither highly satisfied nor moderate satisfied regarding NCCBLs’ service of giving statement. Standard deviation is .601 which means the distance of the respondent answer is not that much far from one respondent to another respondent.

Descriptive Statistics

Here respondents were also selected three options among five. Mean 2.04 indicates that most of the respondent (33) goes for satisfied option. There percentage is 64.7.

Descriptive Statistics

All the respondents’ have selected 3 to number 5 option means average, good and excellent option. More than half number of respondents (28) gave their opinion good regarding current service level of NCCBL. Mean 3.98 almost 4 indicates the answer is neither average nor excellent and standard deviation .678 means respondents answer was not far distance from each other.

Descriptive Statistics

Mean 1.84 is around 2. It means maximum number of respondents (cash – 23, General banking – 18) answered first two options. Their total number is 41 out of 51. Standard deviation .987 proves it perfectly. It indicates the answer from respondents were so close with each other.

FREQUENCY ANALYSIS

The arrangement of statistical data in a row-and-column format that exhibits the count of responses or observations for each category assigned to a variable called frequency table. Besides the frequency table we can also see the results by pie chart

1. What is your main occupation?

What is your main occupation?

Among 51 respondents in NCCBL 14 respondents selected their occupation business. Three groups (student, self employed and house hold activities) each number contain 10 respondents. From my survey I saw very few government service holders maintain their bank account with NCCBL. Their number is only 3 among 51 respondents.

2. How you are related with NCCBL?

How you are related with NCCBL?

Most of the respondents (41.2%) have selected their relation with NCCBL by saving account. Second largest (23.5%) relation between NCCBL and respondents came from money gram. 17.6% respondents were from current account and 15.7% were from loan customers. In the pie chart we can see green color from saving account and pink color from money gram.

3. From where did you get information of NCCBL?

From where did you get information of NCCBL?

62.7% respondents selected their option regarding NCCBL information they got from family or friends. It indicates that most of the NCCBL clients come by listening to others. For any organization it is very important factor. Because of NCCBLs’ better service they got these 62.7% extra clients without any communication activities.

4. Why did you choose this particular branch?

Why did you choose this particular branch?

Almost half percent (49%) respondents have preferred reason to choose this particular branch is “nearest to home”. But I can’t ignore the option “management is friendly” because 19.6% respondents have selected this one. During my survey most of the respondent told me NCCBLs’ management is very friendly. But as their first choice reason was nearest to home.

5. How long you are involved with NCCBL?

How long you are involved with NCCBL?

Most of my respondents (31 persons) selected their involvement was not too many year with NCCBL. Only 1 – 2 year they involved with NCCBL. If we consider pie chart it will be dearer. 15 respondents (29.4%) pick their involvement 2-3 years with NCCBL. But one thing I want to say that though they are not too much time involved with NCCBL but maximum of them give their opinion towards the NCCBL regarding better service.

6. What improvements would you like to see?

What improvements would you like to see?

18 respondents (35.3%) wanted “quick work” as an improvement in NCCBL. 12 respondents wanted more interest rate than current rate. Their judgment was in NCCBL everything is fine but they give lower rate than others. So it should be rise. The same thing happened for loan customers. 6 (11.8%) respondents from loan want to see lower interest rate against their loan as an improvement in NCCBL.

ANALYSIS OF SELECTED CROSS TABULATION

Cross tabulation is a technique for organizing data by groups, categories, or classes, thus facilitating comparisons; a joint frequency distribution of observations on two or more sets of variables. My selected cross tabulations are in the following. I also included vertical and horizontal bar chart with every cross tabulation.

1. GENDER * according to your account category, do you think interest rate is ok? Cross tabulation

My first cross tabulation is between gender and satisfied regarding interest rate. Among the 33 male respondents 16 didn’t want to comment and 10 respondents said they are not satisfied with current interest rate. So we can easily understand maximum numbers of male clients are not satisfied with interest rate. The same case for female clients also.

2. GENDER * what is your opinion scale regarding current service level of NCCBL? Cross tabulation

Compare with male, more female respondents picked up excellent answer. Only 6 male respondents out of 33 choose excellent answer whereas 5 female out of 18 have selected excellent answer. If we compare female with male then female percentage is higher. Both 6 male and female respondents have selected average answer. Male respondents are liked to answer “good”.

3. AGE * According to your account category, do you think interest rate is ok? Cross tabulation

Though most of the respondents are satisfied with other issue regarding NCCBL but they have problem with interest rate. If we consider bar diagram we will see that none of the age group said “yes” answer more than “no” or “no comment”. 20 – 30 age group people are more dissatisfied with interest rate. Out of 12 only 2 respondents answered yes. 30 – 40 age group respondents answered no comment option more. In the diagram their line (blue color) is longer than other groups. 40 – 50 age group respondents answered more yes among all other age group.

4. AGE * What improvements would you like to see? Cross tabulation

Among the 51 respondents 18 respondents in different age groups wanted to see quick work and 12 respondents wanted to see more interest rate as an improvement of NCCBL. 50 – 60 age groups are more interested regarding quick work. 3 respondents out of 4 in these age groups have selected quick work as an improvement of NCCBL. If we look in the bar diagram we will see three age groups (30 – 40, 40 – 50, 50 – 60) want quick work (blue color).

5. AGE * Which facility of NCCBLs’ satisfies you most? Cross tabulation

There were four options for satisfied question. But none of the respondent out of 51 has selected interest rate as an answer. My previous cross tabulation also proved that clients of NCCBL are not satisfied with their interest rate. 20 – 30 age group respondents have selected less time as a facility that NCCBL offer for them, But none of the respondent from 50 – 60 age groups picked up less time as a satisfying facility from NCCBL. “Employees are cooperative” have been selected by 40 – 50 age group respondents. 30 – 40 age group respondents picked up better service as facitity in NCCBL.

6. AGE * What is your opinion scale regarding current service level of NCCBL? Cross tabulation

If we consider all 51 respondents then we will see more than fifty percent (28) respondents select neither average nor excellent answer. No one has selected “poor” answer. More or less all the age group has given same type of answer in this cross tabulation.

7. What is your main occupation? * Which facility of NCCBLs’ satisfies you most? Cross tabulation

By occupationally respondents were not interested to answer interest rate as a NCCBLs’ facility. Government service holder answered “better service” as a facility in NCCBL. Student or apprentice picked up less time whereas business people choose “employees are cooperative” as NCCBLs’ facility.

8. How long you are involved with NCCBL? * How much do you satisfied with NCCBLs’ service of giving statement? Cross tabulation

I got one person in my survey who involved with NCCBL more than 4 years. That person is highly satisfied with NCCBLs’ service of giving statement (red color in bar diagram). 2 persons whom are involved less than 1 year with NCCBL neither highly satisfied nor moderate satisfied with NCCBLs’ service of giving statement (green color in the bar diagram). Important outcome is more than fifty percent (31) respondent satisfied with this service.

How long you are involved with NCCBL?

9. How you are related with NCCBL? * Which section do you like most? Cross tabulation

Cash is more acceptable than other section of NCCBL. 23 respondents out of 51 have selected this division. One interesting thing t identified here, that is though 12 respondents related with NCCBL by money gram buy they liked cash division.

If we look in the bar diagram it will more clear to us. Current account and saving account holder (green line in the diagram) like general banking section more.

How you are related with NCCBL?

10. How you are related with NCCBL? * On average, how many times you visit in NCCBL (in a month)? Cross tabulation

Not a single current account holder visit NCCBL less then 2 times in a month. It means they have more connection with the bank then others. Money gram respondents come to bank only 1 to 2 times in a month. Out of 21 respondents saving account holder only 1 person visit more than 4 times in the NCCBL in a month.

How you are related with NCCBL?

11. How you are related with NCCBL? * What improvements would you like to see? Cross tabulation

“Quick work” is selected by 18 respondents out of 51 as an improvement in NCCBL. Among them (18), most of the respondents (10) from money gram (blue color in the diagram). Saving account holder wanted to see more interest rate (green color in the diagram) whereas loan customers wanted to see less interest rate against their loan.

FINDINGS FROM SURVEY

The finding is based on 51 samples.

• Clients of NCCBL are not dissatisfied and highly dissatisfied in any service of NCCBL;
• Most of the clients in NCCBL are satisfied with NCCBLs’ service of giving statement. They neither highly satisfied nor moderate with current service of giving statement. It’s a good sign for NCCBL;
• Cash is most favorite section in NCCBL;
• Business persons (27.5%) are more related with NCCBL then other five occupational groups. Students, household activities and self employed are in equal (19.6%) position whereas government service holder (5.9%) and private service holder (7.8%) are less relation with NCCBL;
• Among the 51 respondents in different account most of the clients are from saving account (41.2%). ;
• The majority numbers of clients (62.7%) get information about NCCBL from family or friends. Rests of all (37.2%) get information from advertisement, job/ Colleagues and others.
• Nearest to home is the first choice of the clients (49%) to select this Dhanmondi branch of NCCBL.
• Most of the clients (60.8%) based on my survey are involved with NCCBL from 1 to 2 years. It indicates with in two years many people open account in NCCBL;
• For traders who using mobile for long time they are insensitive about monthly spending of mobile. Most of them said they 100-200 times use mobile in each month for both incoming and outgoing calls and pay for 100-150 minutes;
• Quick work clients (35.3%) want to see as an improvement in NCCBL;
• Interest rate is an important factor for banks. Clients from saving and current account holder (23.5%) want to see interest rate higher;
• Maximum number of male (21) clients opinion regarding current service level is “good” whereas only 7 female clients support this;
• Only 13 in different account holder support current interest rate;
• 20-30 age group clients want more interest rate;
• No one from 50 – 60 age group mentioned excellent answer regarding current service level of NCCBL;
• Out of 12 respondents from money gram only 3 like money gram section though they have more relation with money gram.

RECOMMENDATIONS

Some recommendations are proposed below which may help NCCBL to eliminate gaps between the expected level of service and actual level of service.

• Set charges consistent with competitors’ charges pattern: Some of the local banks such as Brac Bank, Dhaka Bank, are planning to launch similar products like Personal Loan for Consumers with a lower rate and charge. SCB should take precautionary measures to keep their products viable to customers both new and old.
• Reduce charges: NCCBL should lower their charges immediately so as to prevent the loss of customers.
• On-the-job training: NCCBL senior officials should be more cooperative to their subordinates and arrange for workshops/ training programs to keep them motivated in their work.
• Recruitment of more skilled workforce: NCCBL should recruit more qualified, more skilled and smarter salespeople, who will be able to persuade eligible customers to have a banking relationship with NCCBL.
• Easier procedures for opening accounts: The bank should do away with the procedure of asking the same information from the customers more than once in connection with opening a bank account. They should eliminate the current procedure which involves so much of paperwork as this often irritates customers.
• Training and organizational learning: The branch officials should go through training and other motivational programs more often that would liven up their spirit of work to a great extent.

CONCLUSION

All the clients of my survey have relationship with NCCBL. They are the customers of bank service. These customers include public limited companies, private limited companies, small and medium sized enterprises, professionals government bodies, employees of different organizations, and even students and housewives. Today bank is a very important role player in the economy of the country as well as in the world. These customers are transacting through the banks several times every month and each transaction involves them some monetary cost and time cost.

From my survey that I got simply want to say that customers of NCCBL are satisfied with the current banking services. They have one objection regarding interest rate except that everything is ok.

I want to give a good news before ending my conclusion that NCCBL just inaugurated credit card of Visa brand with access both in International and local market. It’s an interest free credit card.