INTRODUCTION
Standard Chartered Bank is the leading multinational bank in this country. To maintain its leading position in the Bangladesh, Standard Chartered Bank is always keen to develop long-term beneficial relationship with trustworthy clients. To achieve this end, they have always upgraded their approaches to achieve profitability. The Standard Chartered Bank is an international banking and financial services group that is incorporated in the U.K. with its headquarters in London. It has a unique international network. It now spans in the developed and emerging economies of the world, after been built over 150 years.
Standard Chartered Bank’s operation is segmented under six regions: Europe, Middle East, South Asia, South East Asia, Australia and the USA. Globally, the SCB group owns a network of 600 offices in more than 50 countries with staff of about 28000 people. Globally, SCB specializes in personal, corporate, institutional and personal finance and custodial services. The bank excels in providing the most efficient, consistent and timely services and is the multinational bank in the Middle East, South Asia and North African regions.
Objective of the Study
A. Broad Objective:
The main objective of the report is to determine the competitive standing of Standard Chartered Bank in the banking sector in terms of its products and services, identify the major strengths of the banks customer service division, provide with probable solutions for the improvement of the customer service quality.
B .Specific Objective:
Here the broad objectives divided into specific objectives, which will help me to do the report efficiently and effectively.
Briefly observe the banking environment of Bangladesh and look at Standard Chartered Bank as an organization at some length.
To know about the overall banking activity.
Identify the major strengths of the SCB’s customer service division.
Identify the features of SCB’s services and discuss about product design and its target group.
Briefly discuss the frees and fees of its products and services.
Customer satisfaction with the service provided by consumer banking division.
Provide with probable solutions for the improvement of the customer service quality.
To identify the problem and weakness of the banking system of Standard Chartered Bank.
To suggest necessary measures for the development of the bank.
Scope of the Report
The scope of this report is limited to the overall descriptions of the bank, its services, its position in the industry, and its competitive advantage. The scope is also defined by the organizational set-up, functions, and performances. The beneficiaries of the report include the employees, the management, and customers of Standard Chartered Bank (SCB).
This study will help the employers to gain more knowledge about the satisfaction level of the customers and will help them to redefine their strategies to satisfy the customers. It will also help them to analyze more about their product.
Customers will also be benefited as sequence of new approaches taken by the employees to meet the requirements of the customers in product and service design.
This report will not only help the management of SCB, but also the stakeholders on a whole. Different financial institutions can be motivated to take an essence of this report in order to improve their different features of their products and ways of improving their customer services.
Methodology
The report will be based on both primary and secondary research. The secondary research provided the main input for the report. This provided a theoretical basis of the report. For the organization part information has been collected through different published articles, journal, and brochures. Formal questionnaire for data collection will be use. At the same time information is collected through informal discussions with Relationship managers & respective Branch Manager as well PFC’s.
Source of Data Collection
The core information and data source is expected to be primary, because it will
involve interviewing officials of the Bank, observation and interview with customer. Secondary data related to the bank will be collected from different brochures of the bank, annual reports of the bank and from their websites.
A. Primary Source of Information:
Observation from the total internship period.
Operational process.
Discussion with officials of Standard Chartered Bank
Interviewing at the time of serving them in the branch banking
B. Secondary Sources of Data:
Relevant Standard Chartered Bank paper and published documents
Bank’s other published information.
Balance Sheets and Profit and Loss Accounts of Standard Chartered Bank.
Some textbooks.
Internet
Limitations of the Study:
Few limitations may appear in the report writing as every organization has some confidential data and research only based on Dhanmondi-2 Branch, which may not reflect the overall scenario.
Result that will appear after conducting this study may not reflect the same situation for all the other branches of SCB as this study is only based on the opinions of respondents of the SCB Dhanmondi-2 Branch.
Every organization has their own secrecy that in not revealed to others. This might be another problem for which the result can be manipulated.
BANKING SECTOR IN BANGLADESH
Overview of Banking
Whoever, being an individual firm, company or corporation generally deals in the business of money and credit is called bank. In our country, any institution, which accepts, for the purpose of lending or investment deposits of money from public, repayable on demand or otherwise, and with transferable by checks draft order and otherwise can be termed as a bank.
The purpose of banking is to ensure transfer of money from surplus unit to deficit units. Bank in all countries work as the as the repository of money. The owners look for safety and amount of interest for their deposits with Banks. Entrepreneurs try to obtain money from the banks as working capital and for long-term investment. These entrepreneurs welcome effective and forward-looking advice for investment. Banking sector thus owe a great to the deposit holders on the hand and the entrepreneurs on the other. They are expected to play the role of friend, philosopher, and guide for the deposit holders and the entrepreneurs.
Since liberation, Bangladesh passed through fragile phases of development in the banking sector. The nationalization of banks in the post liberation period was intended to safe the institutions and the interest of the depositors. Those handling the banking sector have borne the burden of putting banks on reliable footings. Despite all that was done, some elements of irregularities appeared. With the assertion of the role of the Central bank, The Bangladesh bank started adopting measures for putting banking institutions on right track. Yet the performance of public sector management of banks left some negative effects in the money market in particular and the economy in general. The agility among the borrowers manipulates the banking sector as a whole. In effect, a default culture appeared on the scene.
The opening of private and foreign participants to the banking sector was intended to obtain desirable results from banking. The authorization of private banks was designed to create competition among the banks and competition in the form of efficiency with and the productivity in enterprises funded by banks. Unfortunately, for the people, at large banking sector is yet to obtain the credit for efficiency, credibility, and growth.
The clever, among the user of banking services, have influenced the management of banks, for obtaining short-term and long-term loans. They sometimes showed inflated to get money for investment in business and industry. Few diverted their loan money to purposes different from the loan proposals, and invested in non-profitable units have failed to repay their loans to the banks. For this reason new entrepreneurs are not getting capital while defaulting entrepreneurs have started obtaining either relief in the form of rescheduling of the repayment program or additional inevitable money for diversified units.
CONSUMER PRODUCTS OF SCB
In the consumer market, SCB is well reputed for introducing innovative and lucrative offers and products to its customers. SCB’s products have always been a master blaster in the banking market.
4.1 Personal & Joint Account
For opening a personal or a joint account one needs to submit a valid passport or any identification attached with photo, one passport size photograph and needs to be introduced by any account holder of SCB whose account is minimum six months old. To open the account the person needs to fill up a form mentioning his name, address, telephone number, date of birth, occupation etc. as well as mode of operation and specimen signature. Account holder must appoint a nominee with photograph and signature who also must attest nominee’s signature and photo.
4.2 Current Account
To open a Current Account one has to deposit a minimum of Taka.50, 000. And account holder of those account need to have average balance of Taka 50000 at all time, otherwise a charge of Taka 500 will be debited. And the closing charge for those accounts is Taka 250, and if it is closed before six months, the charge will be Taka 500.
Table 3: Interest rate of Current Accounts (Local & Foreign Currency)
Minimum balance required Interest Rate
BDT 50,000 or equivalent No interest is paid
4.3 Savings Account
To open a Savings Account one has to deposit a minimum of Taka. 100,000 and Taka 300,000 for extra value savings account (EVSA). And account holder of those account need to have average balance of Taka 100,000 at all times, otherwise a charge of Taka 500 will be debited. And the closing charge for those accounts is Taka 200, and Taka 300 for EVSA accounts. If the A/C is closed before six months, the charge will be Taka 500 and Taka 1000 for EVSA.
Table 4: Interest rate of Savings Accounts (Local & Foreign Currency)
Average Balance Interest Rate
Average balance below BDT 100,000 00.00%
Average balance BDT 100,000 to 500,000 04.50%
Average balance BDT 500,000 to 1,000,000 05.00%
Average balance BDT 1,000,000 05.50%`
4.4 Short Term Deposit (STD) Accounts:
Minimum balance for maintaining a STD (Short Term Deposit) or Call Deposit Account is required BDT 250,000. Interest Rate on this type of account is 4.00% to 6.00% (Rate varies on amount). The main reason for big clients to maintain this type of account is just to earn interest on big amount on a daily basis.
4.5 Access Account
Access account is quite new feature of SCB that allows customers to have an account with SCB without any charges that are present in other types of accounts. Access account differs from its other account services in the way that it requires no minimum deposit size and hence it doesn’t provide any interest. The advantage is that students / people of medium income level trying to avoid high bank charges can use this account to meet emergency cash requirements. The account holders do not get any facility of cheque book and cannot withdraw more that Taka. 20, 000 in a day and also cannot overdraw their account. The charges include Taka. 150 per year and Taka. 250 for government excise duty. And the closing charge for those accounts is Taka 200.
4.6 Resident Foreign Currency Deposit (RFCD)
Specially designed foreign currency account for resident Bangladeshis. Offers wonderful opportunity to build a deposit base in foreign currency. Helps make for overseas commitments and dues like credit card bills, traveling expense, recreation tours, etc. This service is offered in currencies like USD, GBP and Yen. The interest that SCB offers is very competitive, but the deposit can only be made in foreign currency. The withdrawals can only be made in local currency. It offers fund Remittance in LCY and FCY to any place in and out of the country.
4.7 Foreign currency current account
Applicable to Bangladeshis working abroad, it can be opened in USD, GBP and Yen without restriction on transaction frequency. Can be operated through nominees, in absence of the account holder. Fund remains in foreign currency and is freely remittable. The deposit can be made in foreign currency only (Cash, TC or Drafts or transfer from other FCY account). But cash withdrawals can only be made in local currency only. Fund can be used to make investment in Wage Earners’ Development Bond
4.8 Non – Resident Foreign Currency Deposit (NFCD)
A short-term foreign currency deposit account suitable for Bangladeshis living abroad, offering most competitive interest rates available in both local and international markets. The interest paid in this account is in foreign currency, it can be opened for a term of 1 months, 3months, 6 months and 12 months. The interest rates are tiered (based on amount and term), but payable on maturity, but automatically renewable. It can be used as security against personal/commercial loan
4.9 Account Statement Charges
The charge for holding statements is BDT 1000 per annum per account and for Additional/ Duplicate statement (Per cycle) is BDT 200 per statement. Photocopy of statements is Taka 1000.
4.10 ATM Card Charges
The annual fees for ATM card are Taka 150 per card, and the charge in case of damaged or lost card is Taka 300 per card. And phone banking is absolutely free.
4.11 Charges for Cash and Travelers Cheque Foreign Currency
For issuance of FCY cash, customers need to pay 1% of the transaction plus Taka 200/= per passport. And for issuance of Travelers cheque 1% of the transaction plus Taka 200/=. The charge for encashment is absolutely free in case of travelers cheque issued by SCB and encashment for other bank’s issued T.C is 0.25% of the transaction value or minimum BDT 500. SCB also provides encashment facility for non-customers, is 0.25% of the transaction value or Taka 1,000.
4.12 Charges for maintaining Student file
For customers, opening student file for SAARC countries, they charge BDT 3500 per student, per annum plus Taka 500 per remittance. This is a centralized system. No matter where the customers conduct his/her banking, for opening and maintaining student file, he/she is bound to come to SCB Kakrail Branch, which is at 109, Kakrail. That branch exclusively deals with Student File. And, the charge for other countries is Taka 5000 per student file plus Taka 500 per remittance. This opening of student file is not available for non-customers.
4.13 Fixed Deposit Account
For a fixed deposit account a person needs to deposit a minimum of BDT 100,000. After the maturity of the fixed deposit the depositor will get the principal along with the interest. The interest rate for this fixed deposit varies with the amount and period. The rate increases as the amount and time period increases.
Table 5: Interest rate of Fixed Deposit (Local & Foreign Currency)
Tenor Minimum amount required BDT 10M & Below BDT Over 10M
3 Months BDT 100,000 7.00% 7.75%
6 Months BDT 100,000 7.50% 8.25%
12 Months BDT 100,000 7.75% 8.50%
2 Years BDT 100,000 8.25% 8.75%
3 Years and above BDT 100,000 8.50% 9.00%
But the above deposit rates may be increased by 1.00% for priority/Wholesale clients at the discretion of the Management. In that case, the branch sales and services manger needs to obtain approval from HOC&I and HOCB for C&I and CB deposit respectively with regard to above discretionary interest rates.
4.14 Lending Rates for Consumer Banking:
Table 6: Lending Rates for Consumer Banking (Local & Foreign Currency)
Money Builder 12.00% to 14.00%
Cash Line (Loan) 11.00% to 13.00%
Cash Line (Overdraft) 12.00% to 14.00%
Instalment Loans:
i. Type A (100% Covered) 13.00% to 15.00%
ii. Type B (50% to 99% Covered) 15.00% to 17.00%
iii. Type C (30% to 49%) 17.00% to 19.00%
4.15 Company Account
4.15.1 Sole Proprietorship Account
Just like the personal and joint account, an account opening form and one passport size photograph is required. The customer also needs to submit a copy of his trade license, Sole proprietor Declaration From and signature. The account holder must attested nominee’s signature photo.
4.15.2 Partnership account
Just like the sole proprietorship account, an account opening from and one passport size photograph is needed. Account holder must appoint a Nominee’s signature and photo. Moreover the customer is required to provide the following documents:
Required certified copy of the Partnership Deed of the firm.
Certificate of Registration of the firm.
List of partners with their address.
Latest copy of Balance Sheet.
Extract of resolution of the partners of the firm for opening the account and authorization for its operation duly certified by the firm’s Managing Partner.
List of names with appointments and specimen of the persons who are authorized to operate the account duly certified by the Managing Partner of the firm.
4.15.3 Limited Company Account
To open a limited liability company account the customer is required to submit the following documents:
Certified copy of the memorandum and articles of association of the company.
Certificate of incorporation of the company.
Certificate from the Joint Stock Registrar that the company is entitled to commence business.
Latest copy of Balance Sheet.
Extract of Resolution of the Board / General Meeting of the company for opening the account and authorization for its operation duly certified by the Chairman or Managing Director of the company.
List of names with appointments and Specimen signatures of the persons authorized to operate the account and request the bank to open a letter of Credit / Guarantee duly certified by the Chairperson or Managing Director of the company.
Table 7: Interest Rates for Corporate Investment Deposits
Tenor BDT 10M & Above
1 Months 7.00%
Table 8: Fixed Deposit Local currency For Corporate Customer
Tenor Minimum amount required BDT10M & Below BDT Over 10M
3 Months BDT 100,000 7.25% 7.50%
6 Months BDT 100,000 7.50% 8.00%
12 Months BDT 100,000 7.75% 8.25%
2 Years BDT 100,000 8.00% 8.50%
3 Years and above BDT 100,000 8.50% 8.75%
The rates are based on the international market rates, which are available at the bank regularly.
4.15.4 Lending Rates for Corporate Banking:
1) Agriculture:
a. Overdraft 09.50% to 11.50%
b. Short Term Loan 09.00% to 11.00%
2) Large & Medium Scale Industry (Term Loans):
One to Three Years:
a. Multinational Corporate Clients 10.00% to 12.00%
b. Large Local Corporate Customers 11.00% to 13.00%
c. Local Corporate Customers 12.00% to 14.00%
d. Small Corporate Customers 13.00% to 15.00%
Four to Five Years
a. Multinational Corporate Clients 11.00% to 13.00%
b. Large Local Corporate Customers 11.50% to 13.50%
c. Local Corporate Customers 12.50% to 14.50%
d. Small Corporate Customers 13.50% to 15.50%
3) Working Capital:
a. Multinational Corporate Clients:
Overdraft 09.75% to 11.75%
Short Term Loan 09.00% to 11.00%
Revolving Promissory Note 08.00% to 10.00%
b. Large Local Corporate Customers:
Overdraft 11.00% to 13.00%
Short Term Loan 12.00% to 14.00%
Revolving Promissory Note 08.00% to 10.00%
c. Local Corporate Customers:
Overdraft 12.00% to 14.00%
Short Term Loan 12.00% to 14.00%
Revolving Promissory Note 10.00% to 12.00%
d. Small Corporate Customers:
Overdraft 11.50% to 13.50%
Short Term Loan 13.00% to 15.00%
Revolving Promissory Note 11.00% to 13.00%
4) Export (Packing Credit), 07.00% to 09.00%
5) Other Commercial Lending:
a. Multinational Corporate Client 11.00% to 13.00%
b. Large Local Corporate Customers 12.00% to 14.00%
c. Local Corporate Customers 14.00% to 16.00%
d. Small Corporate Customers 15.50% to 17.50%
e. Fully Secured Customers: 10.00% to 12.00%
6) Small and Cottage Industry (Term Loans):
a. Local Corporate Customers 09.00% to 11.00%
b. Marginal Credits 12.00% to 14.00%
7) House Building/Real Estate: 13.00% to 15.00%
4.16 Tele Banking Services
Tele banking service allows the account holders to make inquiries and service requests over the telephone. To get this Service all a customer needs to do is to fill up a Tele-Banking form mentioning his name, account number, contact address, and telephone number. After the application TIN (Telephone Identification Number) is given to that customer. TIN is a personal security password, which a customer can change at any tine. A person who requests service through Tele Banking is required to take delivery of the service by nominated branches within two days of requests. If a customer fails to receive this service within two days the request will be cancelled and Taka. 200 will be charged from his personal account
Table 9: Services Provided by Tele Banking Facility
Inquiries Relating to Requests for Advice of
Account Balance Balance Certificates Stop payment
Exchange Rates Account Statements Change of address
Interest Rates Access Card Activation Lost Cheque Books
Issue of Cheque Books
Fund Transfer
Pay Order
4.17 Speed Cheque Deposit
The Speed Cheque Deposit system saves a customer’s precious time by allowing him to drop the Cheque in the Speed Cheque Deposit Box. All a customer needs to do is to complete the Cheque deposit slip and keep the counterfoil. To complete the Cheque deposit slip a person has to mention the account number of the Cheque, the name of the bank with branch, cheque number and amount. After finishing writing the cheque deposit slip the customer needs to staple the cheque with the slip and drop it inside the box.
4.18 Money Link (ATM) Card
SCB Launched Automated Teller Machine (ATM) in Bangladesh in the year of 1998. A person can access his personal, current and savings account 24 hours a day by using a Money Link Card or ATM card in this machine. This card can be used for cash withdrawal, cash / cheque deposit, fund transfer between accounts, balance inquires, statement requests etc. Apart from SCB Money Link cards (ATM) it also accepts both local and International Master Card and VISA Credit Cards. Taka 150 is charged per ATM card for a period of 1 year. For security reason a person cannot access his account without his PIN (Personal Identification Number).
4.19 Credit Card
Types of credit cards
1. Gold Master Card
2. Silver Master Card
3. VISA Silver Card
Requirements
1. Completed credit card application form.
2. One copy of passport size photograph.
3. Minimum monthly income of Tk. 10,000 for Master and VISA
Card Silver.
4. Minimum monthly income of Tk. 55,000 for Master Card Gold.
5. Documents (e.g. Salary Certificates, Income Tax Certificates, 6 months bank statement, Photocopy of passport or other
Documents).
6. For foreigners, work permit from the ministry is required.
4.19.1 Features of Credit Card
Wide Acceptance: SCB Credit Card is accepted at more than 3,000 outlets around the country. One can use his/her card for everyday purchases as well as for high value purchases. Its wide range of merchants include hotels, restaurants, airlines & travel agents, departmental stores, hospital and diagnostic centers, jewelry shops, electronic and computer shops, leather goods, mobiles and ISP’s and many more. This number is increasing everyday to cater to customers growing needs.
Easy Credit: With SCB Credit Card customers have the convenience to pay as little as 5% of their outstanding on the card account every month, thus having the power and flexibility to plan their payments. Minimum monthly payment is 5% of the cardholders closing balance or Tk. 500 whichever is higher. If the closing balance is more than Tk. 500 it must be paid in full.
Instant Cash Advance: SCB Credit Card gives its customers to access to cash up to 50% of the credit limit. Customer can withdraw cash advance from all SCB and SCG ATM around the country, thus having access to cash 24 hours a day. Besides, cash advance can also be taken from any of its branches across the country.
Safe and Secure: Customer does not need to carry cash anymore if he/she is carrying SCB Credit Card. If someone last his/her card can be protected from the financial charges from the moment he/she reports to the bank.
Air Accident Insurance: SCB Credit Card gives the customer free air accident insurance coverage up to Tk.100,000 (Silver Card) and Tk.500,000 (Gold Card). This coverage is also applicable for supplementary cardholders.
Supplementary Card: Customers can apply for supplementary card(s) for their spouse, parents, sisters, brothers, friends of children over 18 years of age. All charges on the supplementary card are reported on the monthly statement. Besides, for customer’s peace of mind one can assign monthly spending limit on each Supplementary Card. From March 2002 first supplementary card is free for lifetime.
Table 10: SCB Credit Card Features
Details
Gold Master Card Silver VISA/Master Card
Annual Fee for Primary Card Tk. 3,000 Tk. 5,000
Joining Fee Nil Nil
1st Supplementary Card Fee Free Free
Additional Supplementary Card Fee Tk. 2,000 Tk. 1,000
Over Limit Fee Tk. 500 Tk. 200
Replacement Fee Tk. 500 Tk. 200
Interest Rate on Outstanding 2.5% Per Month 2.5% Per Month
Returned Cheque Fee Tk. 500 Tk. 500
Duplicate Statement Fee Tk. 50 Tk. 50
Certificate Charge Tk. 100 Tk. 100
Outstanding Cheque Processing Fee Tk. 100 Tk. 100
Sales Slip Retrieval Fee Tk. 100 Tk. 100
4.20 Banking Facilities for the Convenience of Customers
4.20.1 Evening Banking
Standard Chartered Bank has introduced Evening Banking Facilities recently. This is particularly for that group of customers who remain busy throughout the day and do not have the time to visit the bank. They can avail the banking service from 6pm to 8pm in the Gulshan Branch.
4.20.2 24 hour ATM services
SCB Launched Automated Teller Machine (ATM) in Bangladesh in the year of 1998. A person can access his personal, current and savings account 24 hours a day by using a Money Link Card or ATM card in this machine. This card can be used for cash withdrawal, cash / cheque deposit, fund transfer between accounts, balance inquires, statement requests etc. Apart from SCB Money Link cards (ATM) it also accepts both local and International Master Card and VISA Credit Cards. Taka 150 is charged per ATM card for a period of 1 year. For security reason a person cannot access his account without his PIN (Personal Identification Number).
4.20.3 24-hour Call centre
Tele banking service allows the account holders to make inquiries and service requests over the telephone. To get this Service all a customer needs to do is to fill up a Tele-Banking form mentioning his name, account number, contact address, and telephone number. After the application TIN (Telephone Identification Number) is given to that customer. TIN is a personal security password, which a customer can change at any tine. A person who requests service through Tele Banking is required to take delivery of the service by nominated branches within two days of requests. If a customer fails to receive this service within two days the request will be cancelled and Tk. 200 will be charged from his personal account
Table 11: Services Provided by Tele Banking Facility
Inquiries Relating to Requests for Advice of
Account Balance Balance Certificates Stop payment
Exchange Rates Account Statements Change of address
Interest Rates Access Card Activation Lost Cheque Books
Issue of Cheque Books
Fund Transfer
Pay Order
4.20.4 Speed Cheque Deposit
The Speed Cheque Deposit system saves a customer’s precious time by allowing him to drop the Cheque in the Speed Cheque Deposit Box. All a customer needs to do is to complete the Cheque deposit slip and keep the counterfoil. To complete the Cheque deposit slip a person has to mention the account number of the Cheque, the name of the bank with branch, cheque number and amount. After finishing writing the cheque deposit slip the customer needs to staple the cheque with the slip and drop it inside the box.
4.20.5 Internet Banking
Standard Chartered Bank’s Internet Banking Service is a fast and easy answer to all the customers financial management needs, allowing you to bank from wherever they desire, in total security and confidentiality. No more standing in queues and it is absolutely free. i-Banking is a convenient, user- friendly way of staying informed and in control of the customers finances from anywhere in the world.
Account Services- View your entire relationship with the bank at a glance, check customers’ account balance view and download statements.
Fund transfers- transfer funds between customers’ own SCB accounts.
Bill Payments- Pay selected utility bills online.
Standing Orders- Enjoy the convenience of requesting the set-up of standing orders from wherever the customers are.
Credit Card- View the customers’ card statement, pay their dues, check their card balance and also apply for a credit limit increase.
Cheque Status- Check the status of cheques issued from customers’ accounts.
Personal Information- Change customers’ password as and when necessary.
How to apply
There are two simple ways to apply for Standard Chartered iBanking convenience:
Step 1: To complete and sign the iBanking Application Form.
Step 2: To drop it off at any of the SCB’s Branches along with a copy of customers’ valid Passport.
Step 3: To receive the customers’ iBanking user ID by e-mail and collect the password from their specified branch. Simply log on to www.standardchartered.com/bd and start enjoying SCB’s iBanking Services.
OR online…
Step 1: To visit www.standardchartered.com/bd . To complete the electronic iBanking Application Form online, create customers’ own iBanking ID and click submit.
Step 2: To print the form, sign it and drop it off at any of the SCB’s Branches along with a copy of customers’ valid Passport.
Step 3: Customers’ iBanking user ID will be sent to customers through e-mail. To collect their password from their specified branch. Now a customer can simply log on and start enjoying SCB’s iBanking services.
4.20.6 E- Statements
Customers with an e-mail address can enjoy the privilege of receiving e-Statements from Standard Chartered Bank. It is a fast, reliable and efficient service of Standard Chartered Bank to minimize customers’ paperwork and maximize their convenience.
All customers have to do to avail this service is to complete an e-Statements Application Form.
4.20.7 SMS Banking
SMS banking is the simplest way of finding out a customers’ Account’s daily/ month end balance or their Credit Card’s daily outstanding Balance and available limit; statement balance, minimum amount due and payment due date. With SMS banking all the information will be available on a customers’ cell phone of any company through SMS
4.20.8 Auto Bills Pay
It is the simplest and most convenient way to pay Monthly bills of mobile phone, electricity, internet, cable TV, etc. With a Standard Chartered Credit Card or Account, the hassle and frustration of paying bills the traditional way can come to an end. Auto Bills Pay offers a one-stop bill payment solution in a friendly and relaxed environment. Once a customer becomes a member of Auto Bills pay, payment of bills are made every month by debiting the customers’ Standard Chartered Credit Card or Account.
4.21 SWOT Analysis
The acronym SWOT stands for:
The SWOT analysis comprises of the organization’s internal strength and weaknesses and external opportunities and threats. SWOT analysis gives an organization an insight of what they can do in future and how they can compete with their existing competitors. This tool is very important to identify the current position of the organization relative to others, who are playing in the same field and also used in the strategic analysis of the organization.
i) Strengths
Leader in foreign Banking sector: SCB’s Banking Experience for 150 years provides SCB the strength of being the market leader in the foreign banking sector. This strength of SCB is totally unmatched by any other multinational bank in Bangladesh, as the long term success of a bank heavily depends on its reputation while dealing with financial resources.
First Bank to introduce Money link services: SCB is the first bank in Bangladesh to issue Money link (ATM) card. As the market leader, they showed the most substantial corporate strength among the foreign banks by grabbing the opportunity that exists in the market.
Very wide range of customer categories: In Bangladesh SCB has a wide range of customer base and is operating efficiently in this country.
Healthy state of human resources: SCB has a whole lot of qualified, experienced and dedicated human resources.
Provider of good quality services: SCB has the reputation of being the provider of good quality services to its potential customers.
Provides a very wide range of services: SCB is renowned for the extremely wide range of services they provide to their customers.
ii) Weaknesses
Few branches: SCB has fewer branches than their competitors. SCB have only 18 branches whereas one of their competitors Uttara Bank Limited has 198 branches and 12 regional offices.
Higher charges: SCB charges higher fees compared to its rivals. Such as minimum balance fee, ledger fee etc. as a result SCB sometimes ends up loosing their customers.
ATM machines often out of order: SCB often has problem with its ATM machines. Customers often complain that the ATMs are out of order.
Low market share: SCB hasn’t that much good market share as other multinational bank. It’s as because SCB’s marketing strategy is not aggressive they always follow defensive/ conservative strategy. This may be considered as a weakness. Composition of market share in the banking industry is given in the table on the next page:
iii) Opportunities
Whole lot of potential customers: The population of Bangladesh is continuously increasing at a rate of 7.3% per annum. The country’s growing population is gradually and increasingly leaning to adaptation of consumer finance. As the bulk of our urban population is middle class, different types of products have very large and easily pregnable market.
Huge consumer base: Bangladesh has a huge consumer base for maintaining several accounts. So SCB has the opportunity to keep these customers by reducing its current fees and charges.
iv) Threats
Low investment: In today’s economy, substantial amount is remaining idle and currently the investment in the secondary market by foreign is relatively low. Tough competition: Increased competition by other foreign banks is also another threat to SCB. At present HSBC and CITI N/A are posing significant threats to SCB regarding retail and business banking respectively. Furthermore, the new comers in private sector Bank’s are also coming up with very competitive force.
Customers may switch to other banks in the search of lower charges: As Standard Chartered Bank charges its customers much higher than those of competitors; they stand the risk of losing their customers to other banks who charge comparatively lower fees.
5. DATA ANALYSIS
As the internship program involves constantly interacting with customers, issuing their bank certificates and statements, attending customers who have requests for customized bank documents etc., customers were requested to fill the questionnaire to find out their satisfaction level in terms of products and services provided by SCB. I did my survey among 40 respondents and did data analysis accordingly. This analysis should be taken under consideration to increase the customer satisfaction, which ultimately helps SCB to be profitable.
5.1 Gender distribution
This is to identify the percentage of male and female are SCB’s customer.
Analysis: Here from the survey I found that among 40 respondents 32.5% are women and 67.5% are men. So I can come to the conclusion that most the SCB’s customers are male. And many cases I found that private service holders wife maintain their account that’s why the percentage move to 32.5% otherwise it can be less than 20%. Most of these cases we found those males are opening a joint account so that there wife can maintain their accounts.
5.2 Age distribution
In my survey questionnaire I asked to mention the current age and divide the frequencies 7 age segment.
Analysis: From the mentioned age I calculate the average age which is around 34 years. For analysis purpose I divide the distributions into 7 age segment and found 25% customer among the 40 fall in between 31-35 years then 22.5% fall in 41-45 age years old and 20% fall in between 36-40 years age. So we can say that most of the SCB’s customer’s age range falls between 31-45 years range. But yet there are many customer whose age range fall above the average because they maintaining the account for a long period of time. At the same time we found some new customers who are student after SCB start the graduate account. So we can say that all aged customer hold account in SCB Bangladesh.
5.3 Professional classification
In my survey questionnaire I asked to mention the current profession. For analysis purpose I divide mentioned professions into 4 basic professions.
Analysis: Here we can see that highest percentage is on private service holder which is 37.5% because they are operating there salary account with SCB for better service and for definite benefit. Next is professional under this category are businessman. Next most responded category includes engineer, doctor, lawyer, consultant which contains 22.5% shown as others. Last we found the lowest percentage on student which is 7.5%.
5.4 Most avail services
In this part I asked the respondent to mention their most avail services from Gulshan branch and interpret the data accordingly.
Analysis: During my internship in Gulshan branch and from the survey I found most of the customers come to branch to avail the statement and certificate for different embassy. And numbers of people come to know there balance although they can get it through ATM booth and call center but still they wants to rely on branch which is 22.5%. Lastly many people as well come have other services like Sanchayapatra coupon encashment and purchase and to open different savings product.
5.5 Customer satisfaction in terms of statement charge
In this part I tried to find out the satisfaction level in terms charges applied for statement.
Analysis: Here from the survey I found that 62.5% are not satisfied from the charges incurred for statement and certificate. Only 37.5% people are satisfied for the fees charged for statement.
5.6 Expected statement charge
Analysis: Standard Chartered Bank charge 575 BDT including VAT for statement. From the survey I found that maximum people expect much lower charge for statement. The average expected charge found from survey analysis is 187.50 BDT for per statement. This is because of other competitors of the SCB are charging lower than SCB. Most of the private banks in Bangladesh have no charges on customer’s statement takings. As a result customers have an attitude to pay as much low as they can pay.
5.7 Customer satisfaction in terms of replacement of ATM card
Standard Chartered Bank’s replacement charge for ATM card is BDT 345. I tried to find out the satisfaction level in terms charges applied replacement of ATM card.
Analysis: Standard Chartered start distributed its debit card as they want to replace ATM card with debit card. But problem is charge is more or less double at the same time SCB start charge customers before they start use the debit card and SCB send the debit card by post without taking permission from customer for the first time. Here 57.5% said they are not happy to take Debit card by paying more and 42.5% said they are happy.
5.8 Expected yearly debit card charge
Analysis: Standard Chartered Bank charge 690 BDT yearly including VAT for debit card. From the survey I found that maximum people expect much lower charge for statement. The average expected charge found from survey analysis is 337.25 BDT for debit card yearly.
5.9 Customer satisfaction in terms of required documents for different services
Standard Chartered Bank asked to submit different documents as a prerequisite for opening of different products. But these docs increase dissatisfaction level among customer.
Analysis: Now if any customer wants to take any kind of services they need to present with different papers like passport for photo identification or authorization application with attested photo. But these docs increase dissatisfaction level among valued customer. That’s why 47.5% said they agree that it increase the dissatisfaction level and 17.5% said strongly agree with this statement.
5.10 Customer satisfaction in terms of different Charge
Standard Chartered in 2007 adopt different service charge like loan processing charge 2% of the loan amount which is very high in percentage, account closing charge is 575 and they as well increase the account opening amount for both savings(1 lac to 2 lac) and current account to 50,000. In this segment I will find out the satisfaction level in terms these different charges.
Analysis: Different service charges introduced by Standard Chartered Bank in 2007 increase the level of dissatisfaction. Maximum customer think that the charges more than average of banking industry. So the decision of increasing service charges and increasing opening amount are very poor and it will ultimately increase the customer dissatisfaction level at the end.
CONCLUSION
In respect of the marvelous growth of consumer banking revenue over the last 20 years and considering the intensity of competition yet to come, it is crucial for SCB to rethink its strategies and marketing plan to sustain the growth consumer banking revenue. One of the ways to achieve that objective is to maximize consumer banking revenue generated from local clients and introduces more local products. At the same time Standard chartered bank must have to consider the consumer mind setup. As a multinational bank customer want more benefit from them then other 3rd generation bank. So instead of making profit only they should care about the customer as well. They can start many new savings product like millionaire scheme. But they should introduce something for the middle class, but still SCB continuously working with upper class and upper middle class. The only reason is the account opening amount which is quite large for middle class. Like the graduate account SCB can come up with some product like this and reduce the charges of current product and services.
Standard Chartered Bank can turned over a new leaf of general people through the invention of new products which are easily introduced and accepted by the general people on account of its reliability and flexibility. Overall of my investigation I can say that customer service quality in Standard Chartered Bank is satisfactory and continuously meets the challenges of developing new products and services to match the specific requirements of customers and reduce the charges in its products and services will boost its customer base in terms of asset and liability. However, a bit more effort on the problem areas through the recommended actions would boost their reputation, profits, market share as well as customer satisfaction with a high rate.
