Page 9 of 61PrefaceBanks are financial institutions that perform a very important function in the economy. In the words of R.R. Paul, a bank is an institution which deals with money and credit. Banks can be classified into many types on the basis of their functions, ownership etc. The central bank of a country is the most authoritative bank of all banks. This bank observes and controls the monetary and credit system of the country. Commercial banks are those banks that perform all kinds of banking business. Examples may be, BRAC Bank Ltd., South East Bank Ltd, One bank etc. Industrial Banks are also termed as Investment banks. They meet the financial needs of the industries, generally medium term and long term. Examples of such kinds of banks may be BSRS - Bangladesh Shilpo Rin Sangstha. Agricultural Banks meet the financial needs in the agriculture sector of a country. Examples of this kind can be: Grameen Bank, Bangladesh Krishi Bank. For economic development of any country standard maintenance of banking industry is important. Financial condition is strongly depends on Banks. BRAC Bank is a scheduled commercial bank established under the Bank Companies Act 1991 and incorporated as a public company limited by shares on 20 May 1999 under the Companies Act 1994 in Bangladesh. The primary objective of the bank is to carry on all kinds of banking businesses. The Bank could not start its operations till 3 June, 2001 since the activity of the Bank was suspended by the High Court of Bangladesh. Subsequently, the Bank has started operations from 4 July, 2001. At present the Bank has 27 Branches, 65 zonal offices and 313 unit offices of SME (Small & Medium Enterprise).While performing internship it was seen that the present system is time consuming both for the bankers as well as the clients. Even though these customers arent a/c holders of the bank, the goodwill and negative word of mouth of the bank and its overall image of quality service are hampered. Integrating IT with the present work process yields an easier work process and ensures better quality of service.Smooth service provision means goodwill and an image of the employees serving and the overall bank is created. Hence it will increase the number of deposit accounts. Also, a high level of attention towards customer service can be given. Time consumption of the workflow is reduced and hence an effective service can be provided to clients and customers.In respect to the services marketing triangle, the Company, the employees and the customers could work together in achieving the goals of bank.One is the Company producing the goods and services, performs external marketing and internal marketing with the customers and employees respectively. While the others, are the employees and customers, conducting interactive marketing respectively.Providing technical training to the employees time to time and appreciating the work performed and motivating towards better service is recommended for internal marketing.Involve customers in attaining a service so that swift service can be ensured. Creating a loyalty program for client, so that, customer can becomes client. Informing the clients about the new services that are launched and having cordial behavior towards the customers are recommended for External and internal marketing respectively. Aim of the reportI am a student of BBA (Marketing) conducting internship at BRAC Bank Ltd. Zindabazar Branch. I was placed to gain a real life work experience for a period of three months to find out the way it operates. The aim of this report is to provide the reader of what flaws I have found (in context of Marketing) at the appointed branch. Some recommendations on how these flaws can be rectified are also provided. Objective of the reportThe objectives of my report are as follows:1.To become acquainted with the services provided by the BRAC Bank, East Zindabazar Branch.2.To know about their marketing strategies based on seven important elements of marketing mix, which is control by the BRAC Bank.3.To know about the problem and barriers they are facing in providing services. 4.To measure customer satisfaction according to the services of Bank. 5.To know about the problem and barriers that customer are facing after having the services and at the time of receiving the services. 6.To know what are the benefits and services that the customers are expecting from the Bank. MethodologyA wide range of literature will reviewed to gather necessary information about the subject matters of this study. These literatures include the texts, profile, annual reports, documentation; different Manuals etc. The data collected for this study was the mean s of a survey. The survey will be done on the customers and staff of the Bank by personal observation and interview and some data will be collected from the journal and website of BRAC Bank. A thorough and insightful observation will be conducted on the various Administrative, Interventional and Marketing philosophies, approaches and practices to collect necessary information. Discussion with the staffs and other related persons to generated standard information for the study is also a comprising tool and also important instructions from the project supervisor.Collection of primary data: I have collected many of the data and information from my practical experience and queries from the officers while doing my internship at BRAC Bank Limited. Information and data regarding products & services, banking operations, organization structure, management personnel and policies were collected from this source.Collection of secondary data: Data regarding the operations of BRAC Bank Limited and analysis of financial statement were collected from secondary sources like annual report, bank profile brochures, manuals and publications of BRAC Bank Ltd.LimitationsOne of the main limitations in conducting this research was time constraints. Extensive research was not possible due to time constraints as well as restriction posed by the organization. As it is internship, real life work is to be done and hence there was an intention of doing a survey for collecting primary data. The primary data could not be collected from other sources than observation. The questionnaire illustrates an individuals perception hence will vary from person to person. Sometimes customer may not be interested to fill up the survey forms.Part A: Review on Banking and BanksIntroductionIn the year 1972, the government of Bangladesh restructured the total banking system of the country and passed the Bank Nationalization Order-72. Accordingly, all the commercial banks of Bangladesh were nationalized and put under the control of Bangladesh Bank (central bank of the country)). At that time there were 6 nationalized commercial banks. They were, Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, Pubali Bank Ltd. and Uttara Bank Ltd. Subsequently Nationalization Order was cancelled and Pubali Bank Ltd and Uttara Bank Ltd were allowed to function as private commercial banks, keeping the other 4 banks as Nationalized Commercial Banks (NCB). In the time of, the Government (Ershad reign) 7 new private banks got license for commercial operation. These were called the first generation banks. In 1990 BNP Government issued licenses to 7 more banks; which were called the second-generation banks. In 1996, Awami League Government allowed 12 more banks. These were called the third generation banks. Nine foreign commercial banks, 4 nationalized commercial banks and 5 development-financing institutions are working in the country. At present 30 private commercial banks are operating with an annual gross profit of Tk.1350.00 crore. The annual average profit portfolio of existing private banks is Tk.45.00 crore. The total number of banks in the country is 49 now.Meaning of a BankBanks are financial institutions that perform a very important function in the economy. We have across various kinds of banking functions in our every day life. Examples of these could be cash from your bank account either by a cheque or an ATM, depositing money, paying bills and many more.According to Crowther, a bank collects money from those who have it to spare or who are saving it out of their incomes, and it lends this money to those who require it.According to Kinley, a bank is an establishment which makes to individuals such advances of money as may be required and safely made, and to which individuals entrust money when not required by them for use.In the words of R.R. Paul, a bank is an institution which deals with money and credit. It accepts deposits from the public, makes the funds available to those who need them, and helps in the remittance of money from one place to another.According to John Paget, no body can be a banker who does not (1) take deposit accounts, (2) take current accounts, (3) issue and pay cheques, (4) collects cheques-crossed and uncrossed for its customers. In short, from the above, the term Bank in the modern times refers to an institution having the following features:a)It deals with money. It accepts deposits and advances loans.b)It also deals with credit; it has the ability to create credit. i.e., the ability to expand its liabilities as a multiple of its reserves.c)It is commercial institution; it aims at earning profit.d)It is a unique financial institution that creates demand deposits which serve as a medium of exchange and, as a result, the banks manage the payment system of the country.Types of banksBanks can be classified into many types on the basis of their functions, ownership etc. They are:Central BanksThe central bank of a country is the most authoritative bank of all banks. This bank observes and controls the monetary and credit system of the country. It has the monopoly to issue a countrys currency. But in this context, the Government of Bangladesh issues and supplies Tk.1 and Tk. 2 notes and coins only. While, the central bank of our Bangladesh i.e., Bangladesh Bank issues currency notes from Tk. 5 onwards, and coins of Tk. 5 only. Bangladesh Bank acts as an agent, a custodian and a banker to the Government of Bangladesh and other commercial banks. It performs the function of leader of last resort to the government as well as the commercial banks. Commercial BanksCommercial banks are those banks that perform all kinds of banking business. They also act as financer of trade and commerce to the general public. Examples may be, BRAC Bank Ltd., South East Bank Ltd, One bank etc...ex-2Industrial BanksThese banks are also termed as Investment banks. They meet the financial needs of the industries, generally medium term and long term. They play a significant role in the development of industries in the country. Examples of such kinds of banks may be BSRS - Bangladesh Shilpo Rin Sangstha.Agricultural BanksThese banks are those, which meet the financial needs in the agriculture sector of a country. Examples of this kind can be: Grameen Bank, Bangladesh Krishi Bank. There are many more types of banks but in general it can be easier to understand if you look at the figure.Commercial Banking Structure at PresentBangladesh Bank, the central bank of the country, is the guardian of banking institution of Bangladesh. Bangladesh Bank (BB) head office is located at Motijheel, Dhaka. There are two branches in Dhaka and there is one branch in each division. The structure of banking system is presented in the following table. There are four NCBs operating with 886 average branches per bank, 13 FCBs operating with 2 average branches and 13 PCBs operating with 45 average branches.In Bangladesh around 75% people live in rural areas. Urban-rural ratio for NCBs is 0.5 (Calculated from Quarterly Scheduled Bank Statistics), which is in line with the necessity of rural branches in our country. There are no FCBs in rural area and PCBs has very few branches in rural areas. FCBs are guided by the policy of their parent company but private banks should open their branches in rural areas.Table 1: Commercial Banking Structure at PresentTypeNumberBranchesEmployeeAverage Branches per BankNationalized Commercial Banks4354562091886Foreign Commercial Banks133113452Private Commercial Banks2912942572745Source: Economic Trends and Annual Reports of Bangladesh Bank, June 2006.Part - B: BRAC Bank Profile IntroductionBRAC Bank Limited, one of the latest generation of commercial banks which started its journey on the 4th July 2001 with a vision to be the absolute market leader through providing the entire range of banking services suitable to the needs of modern and dynamic banking business as well as to promote broad based participation in the Bangladesh economy through the provision of high quality banking services. The unique strength of BRAC Bank lies in the fact that BRAC one of the worlds largest private development organization is its key shareholder and the banks vision are thus aligned with those of BRAC NGO. BRAC Bank is gradually growing up to establish itself in the Banking arena of Bangladesh to be the market leader in terms of service quality and a trusted partner in the development of Bangladesh. For economic development of any country standard maintenance of banking industry is important. Financial condition is strongly depends on Banks. BRAC Bank is a scheduled commercial bank established under the Bank Companies Act 1991 and incorporated as a public company limited by shares on 20 May 1999 under the Companies Act 1994 in Bangladesh. The primary objective of the bank is to carry on all kinds of banking businesses. The Bank could not start its operations till 3 June, 2001 since the activity of the Bank was suspended by the High Court of Bangladesh. Subsequently, the Bank has started operations from 4 July, 2001. At present the Bank has 69 Branches, 59 SME Service Center, 177 ATM Booths and 429 unit offices of SME (Small & Medium Enterprise).BackgroundBRAC Bank is a scheduled commercial bank established under the Banking Companies Act, 1991 and incorporated as a public company limited by shares on 20 May, 1999 under the Companies Act, 1994 in Bangladesh. The primary objective of the Bank was suspended by the High Court of Bangladesh. Subsequently, the judgment of the High Court was set aside and dismissed by the Appellate Division of Supreme Court on 04 June, 2001 and accordingly, the Bank has started operations from 04 July, 2001.BRAC Bank has a unique institutional shareholding between BRAC, the largest DFO in the world, the International Finance Corporation (IFC), the commercial arm of the World Bank Group, and Shore Cap International, a concern of Shore Bank Corporation, Americas first and leading community development and environmental banking corporation.A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. Almost 40% of BRAC Banks clients had no prior experience with formal banking. The Bank has 313 regional marketing unit offices offering services in the heart of rural and urban communities and employs about 1200 business loan officers- around 70% of total staff.Since inception in August 2007, the Banks footprint has grown to 27 branches, 313 SME unit offices and 24 ATM sites across the country, and the customer base has expanded to 1, 90, 000 deposit and 50, 000 borrowers through 2005. In the last four and half years of operation, the bank has disburses over BDT 1, 800 crore in loans to nearly 45, 000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh.The bank operates under a double bottom line agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh. Company ProfileBRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shorecap International, has been the fastest growing Bank in 2004 and 2005. The Bank operates under a "double bottom line" agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh.A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last five years of operation, the Bank has disbursed over BDT 1500 crore in loans to nearly 50,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in August 2007, the Bank's footprint has grown to 27 branches, 350 SME unit offices and 24 ATM sites across the country, and the customer base has expanded to more than 300,000 deposit and 60,000 advance accounts through 2007. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs across the country.brac Banks Vision, Mission and Goal BRAC Bank promotes broad-based participation in the Bangladesh economy through the provision of high quality banking services. BRAC Bank will do this by increasing access to economic opportunities for all individuals and business in Bangladesh with a special focus on currently under-served enterprises and households across the rural urban spectrum. BRAC Bank intends to set standards as the Market leader in Bangladesh. It will demonstrate that a locally owned institution can provide efficient, friendly and Modern full- service banking on a profitable basis. BRAC Bank goal is to provide mass financing to enable mass production and mass consumption, and thereby contribute to the development of Bangladesh. The Banks goals are thus aligned with those of BRAC. Vision of the bank: BRAC Bank vision is to build a profitable and socially responsible financial institution focused on Markets and Businesses with growth potential, thereby assisting its stakeholders build a just, enlightened, healthy, democratic and poverty free Bangladesh. Mission of the bank: Corporate mission of BRAC bank are as follows: Sustained growth in 'small & Medium Enterprise' sector.Continuous low cost deposit growth with controlled growth in Retained Assets.Corporate Assets to be funded through self-liability mobilization. Growth in Assets through Syndications and Investment in faster growing sectors.Continuous endeavor to increase fee based income.Keep our Debt Charges at 2% to maintain a steady profitable growth. Achieve efficient synergies between the bank's Branches, SME Unit Offices and BRAC field offices for delivery of Remittance and Bank's other products and services. Manage various lines of business in a fully controlled environment with no compromise on service quality.Keep a diverse, far flung team fully motivated and driven towards materializing the bank's vision into reality.Goal of the bank: BRAC Bank will be the absolute market leader in small and medium enterprise business through out Bangladesh. It will be a world class organization in terms of service quality and establishing relationships that help its customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank across the globe.brac Banks Long Term Strategy Summed up in a single sentence, banks long-term strategy is to go where the market is. As a result of the achievement of the micro-credit providers, Bangladesh now has an hour glass shaped banking market in which credit and other limited financial services are valuable to both very large and very small businesses and very wealthy and very poor individuals. While there is well-known informal system that provides credit to businesses, virtually nothing is available from either banks or micro finance provider to the million the middle businesses and individual- who are severely constrained in their ability to produce and save for lack of access to financial resources and services. Until modern, competitive financial services are readily available including credit in amounts, terms and conditions that small can access, Bangladesh will not be able to create the large middle class that is a prerequisite to social stability.brac Banks ValuesOur Strength emanates from our owner - BRAC. This means, we will hold the following values and will be guided by them as we do our jobs. BRAC Bank holds the following values: Value the fact that we are a member of the BRAC familyCreating an honest, open and enabling environment.Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit. Strive for profit & sound growth. Work as a team to serve the best interest of our owners.Relentless in pursuit of business innovation and improvement. Value and respect people and make decisions based on merit. Base recognition and reward on performance. Responsible, trustworthy and law-abiding in all that we do.Shareholders BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2004 and 2005. Table 2: Shareholding StructureShareholdersPercentBRAC31.74%IFC9.50%Shore Cap International8.76%General Public through IPO40%Non-Residents Bangladeshis5%Mutual funds through IPO5%Total100% Graph 1: Shareholding StructureBRACBRAC, a national, private organization, started as an almost entirely donor funded, small-scale relief and rehabilitation project initiated by Fazle Hasan Abed to help the country overcome the devastation and trauma of the Liberation War and focused on resettling refugees returning from India. Today, BRAC has emerged as an independent, virtually self-financed paradigm in sustainable human development. It is one of the largest Southern development organizations employing 97,192 people, with 61% women, and working with the twin objectives of poverty alleviation and empowerment of the poor.IFCInternational Finance Corporation (IFC) is the commercial wing of World Bank. Using certain channels and overseas representatives, IFC it helps local financial institutions find profitable ways to target small and medium sized companies. Funding comes from the Asian Development Bank, Canada, the European Commission, the Netherlands, Norway, the United Kingdom and IFC itself. IFC is a 19% shareholder in BRAC Bank. A new assistance program signed in August 2005 aims to double the banks number of small and medium enterprise clients in 18 months through campaigns to target women entrepreneurs and rural clients, introduce new products and train branch managers.Shore Cap internationalShoreCap International Ltd. is an international private non-profit, equity company seeking to invest in small business banks and regulated micro finance institutions in countries with developing and transitional economies. Founded in mid 2003, ShoreCap has a current base of $28.3 million in capital commitments and seeks to support the growth of development finance institutions in Africa, Asia and Eastern Europe. The institution has made investments totaling $7 million in Bangladesh, India, Cambodia, Armenia, Mongolia and Kenya. ShoreBank is a 9% investor of ShoreCap and runs the management company, which oversees investmentbactivities.ShoreCap typically invests between $500,000 and $2 million for an ownership position of 10-25% of a company. As a minority shareholder, ShoreCap seeks financial institutions with a strong, experienced management team and a committed set of local development-minded investors. ShoreCap currently owns 18% of BRAC Bank Limited.Capital structureTable 3: Capital StructureShareholderPercentageBRAC63%IFC19%Shore cap international18%Total100%Management Team Table 4: The Management Team of BRAC Bank1. Imran RahmanCEO & Managing Director8. Faruk AhammadHead of Financial Administration2. Kaiser Tamiz AminChief Operations Officer9. Farzana ChowdhuryHead of Small & Medium Enterprise (SME)3. Rais Uddin AhmadCompany Secretary&Head of Risk Management10. Md. Rahmat PashaHead of Treasury4. Saifuddin M. NaserHead of Retail Banking11. Khwaja ShahriarHead of Corporate Banking5. Md. Rafat Ullah KhanHead of Credit12. Shah Alam BhuiyanHead of Asset Operations6. Naushad HussainHead of Secured Remittance Service13. Mizanur Rahman ChowdhuryHead of Information Technology (IT)7. Tahniyat Ahmed KarimHead of Human ResourcesBoard of Directors Table 5: Board of Director of BRAC Bank1. Fazle Hasan AbedChairman5. Quazi M. Shariful Ala Director2. Faruque A. Choudhury Director6. Paul D. Christensen Director3. Syed Humayun KabirDirector7. Imran RahmanManaging Director4. Md. Aminul AlamDirectorProducts and Services offered by the BRAC BankProducts and Services offered by BRAC bank are as follows:1SME (Small & Medium Enterprise) Banking:1.Anonno Rin2.Apurbo Rin3.Pathshala Rin4.Aroggo Rin5.Digoon Rin6.Supplier Finance7.Prothoma Rin8.BIZNESS Account2Retail Products: A. Loan Products:1.Salary Loan2.NOW Loan3.Car Loan4.Teachers Loan5.Study Loan6.Travel Loan7.Credit Card Loan8.Top Up Loan9.High-Flyer Loan10.Secured Loan/ OD11.Unsecured Personal Loan12.Doctor's Loan B. Deposit Products:1.Fixed Deposit2.Interest First Fixed Deposit3.Abiram Account4.EZee Account5.DPS (Deposit Premium Scheme)6.Savings Account7.Short Term Deposit Account8.Current Account9.Salary Account10.General Fixed Deposit11.Step Up Fixed Deposit12.Femina Account (NEW, launched in March, 2007)Cards:1.ATM/Debit Card: ATM Debit Card features ATM Locations POS Outlet Lost Card/Card Replacement Helpline2.BRAC Bank Credit Card3.Co-Branded Card: Aarong ALICO DIA GoldStudent Corner:4.Student File5.Campus Account6.Student LoanSMS BankingNON-Stop BankingFX-ServiceMedical FileBRAC Bank Direct: Internet BankingOnline BankingVisa Fee Collection:Australian Visa Application & Fees CollectionUnited Kingdom Visa Application & Fees CollectionThailand Visa Application & Fees CollectionCanadian Visa Application & Fees CollectionC. Non-Funded Business:1Hello England/Australia/Thailand: Fastest Transfer of Money Foreign Currency & Travelers Cheque Student FileDPS AccountSavings Account2Phone Banking3Corporate Loan Products:OverdraftTerm LoanLease FinanceLoan Against Trust Receipt (LATR)Work Order FinanceMedium Enterprise4Trade Finance: Letter of Credit (LC)/Letter of Guarantee (LG)5Corporate Cash Management:NCSPTSAdvantages to EmployersAdvantages to EmployeesCash Management ServicesD. Secure Remittance Service (SRS):6Remittance Payment7Probashi Products:Probashi Current AccountProbashi Savings AccountProbashi DPSProbashi Fixed DepositProbashi BiniyogProbashi AbiramPart C: BRAC Bank Ltd: Zindabazar BranchBackgroundThe Sylhet Zindabazar Branch was started from 27th December 2004. It is the second branch in Sylhet. The first branch of Sylhet is Sylhet Branch, located at Subidbazar, Sylhet. Zindabazar Branch is the cluster Branch of Brac Bank Sylhet Zone. The Manager of this branch is designated as the Assistant Vice President; he is also the Cluster Manager of Sylhet Zone. Beside this In Zindabazar Branch there is one BSSM (Branch Sales and Service Manager) and two CSM (Customer Service Manager) for day and evening business. Except them there are four BSSO (Branch Sales & Service Officer), One Head Teller (HT) for cash counter, Five CCSO (Cash & Client Service Officer) for day time banking and two CCSO for evening banking and one officer for Western Union money transfer, There is also one clearing officer for clearing activities. They all are internal branch members. Except them there are also some members who work for the branch but they are not directly members of the branch they are, an executive for foreign transactions, One Customer Service Advisor (CSA) under card division and a complete team of sales including some business executives. There also another executive and officer who works for the branch in VFS and IOM in Sylhet. This branch also has some peons and cleaners. The environment of this branch is quite friendly. All the staffs are very helpful to each other. Organizational Structure of BRAC Bank Ltd. of East Zindabazar Branch, Sylhet: Figure 2: Organizational Structure of BRAC Bank Ltd. of East Zindabazar Branch, SylhetBSSM(Branch Sales and Service Manager)CSM (Customer Service Manager)CSO(Customer service Officer)Clearing OfficerCash CounterCSO-2CSO-4Head TellerDayEveningTeller-1Teller-2Teller-3CSS (Customer Service Supervisor)Teller-1Teller-3CSO-1Page 9 of 61Products and Services offered by the BRAC Bank, Zindabazar BranchProducts and Services offered by BRAC bank, Zindabazar Branch is as follows:1Retail Products: A. Loan Products:1.Salary Loan2.NOW Loan3.Car Loan4.Teachers Loan5.Study Loan6.Travel Loan7.Credit Card Loan8.Top Up Loan9.High-Flyer Loan10.Secured Loan/ OD11.Unsecured Personal Loan12.Doctor's LoanB. Deposit Products:1.Fixed Deposit2.Interest First Fixed Deposit3.Abiram Account4.EZee Account5.DPS (Deposit Premium Scheme)6.Savings Account7.Short Term Deposit Account8.Current Account9.Salary Account10.General Fixed Deposit11.Step Up Fixed Deposit12.Femina Account (NEW, launched in March, 2007)13.BIZNESS Account1Cards:1.ATM/Debit Card:ATM Debit Card featuresATM LocationsPOS OutletLost Card/Card ReplacementHelpline2.BRAC Bank Credit Card3.Co-Branded Card:AarongALICODIA GoldD. Student Corner:1.Student File2.Campus Account3.Student LoanE. Others:1SMS Banking2NON-Stop Banking3FX-Service4Medical File5BRAC Bank Direct: Internet Banking6Online Banking7Visa Fee Collection: United Kingdom Visa Fees Collection F. Non-Funded Business:8Hello England/Australia/Thailand: Foreign Currency & Travelers Cheque Student File DPS Account Savings Account9Phone BankingServices Delivered by the BRAC Bank, Zindabazar Branch (New Customer)For receiving services customer need to come to the bank. At first they meet with the guard and receive a warm welcome from them. Then guard asked the customer what they want and send to the right place. For receiving customer services they have to take token from the box and walk off for the exact customer service counter. Some customers come to meet with Branch Sales and Services Manager or to meet with Customer Service Manager. Also some come to withdraw money from other persons account with A/C holders cheque or to deposit money to others account. Some come to know about credit card. Also some customer of western union money transfer comes to receive money. Each customer received proper treatment and warm welcome from each staff. EntranceFigure 3: Customer Service Structure for New CustomerGuardCSO-4TokenCredit CardBranch Sales and Services ManagerWestern UnionCustomer Service ManagerCash CounterCSO-3CSO-1CSO-2Services Delivered by the BRAC Bank, Zindabazar Branch (Existing Customer)Existing customer of BRAC Bank knows what they want and what they have to do for getting appropriate services. Most of the customers come for withdrawing money from ATM Booth and cash counter for depositing as well as withdrawing big amount of money. They can also use the POS machine for withdrawing money. If they want to take the services from CSO (Customer Service Officer) desks then they have to take token from the token box. Sometimes some of the customers come to meet with Branch manager or to meet with CSM (Customer Service Manager). If the customer want to know his/her A/C balance or any information regarding his/her account then he/she take help from the phone banking desk. If they want to receive money from western union money transfer then they need to go to the western union desk. Also there is one desk for credit card customer. EntranceFigure 4: Customer Service Structure for Existing CustomerATM BoothPhone BankingGuardCSO-4TokenCredit CardWestern UnionBranch Sales and Services ManagerCustomer Service ManagerCash CounterCSO-3CSO-1CSO-2Part D: Marketing Activities of BRAC Bank Ltd., Zindabazar BranchServices Marketing Triangle (SMT) ConceptThe concept of Services Marketing Triangle is that, three key players interlinked together to develop, promote and deliver services. (Bitner & Zeithaml, 2nd Edition International, SERVICES MARKETING)According to the definition three key players are: 1.The Company: An organization that produces and sells services simultaneously.2.The Customers: Entities purchasing and consuming services simultaneously.3.The Employee: People who are employed by the company to sell and deliver the service simultaneously.While, discussing the interlinking, they are performed by marketing at three levels. 1.The Company performs external marketing and internal marketing with the customers and employees respectively.2.The employees approach the customers through interactive marketing for selling and delivering the service.3.Customers become dissatisfied if promises are broken by the firms employees, subcontractors or agents and they eventually leave. Customers become satisfied if promises are kept. Figure 5: Services Marketing triangle The Company Internal Marketing External Marketing Employee Customer Interactive MarketingThe following section discusses how the marketing are performed among the threekey players:Performing Marketing EXTERNAL MARKETING: In discussing how the external marketing is performed by the company in promoting a service towards customers is a broader concept stating what and how it is selling its services. As the company produces services which are intangible, perishable etc in features; thus covering all aspects of the services marketing mix, which are the 7 Ps. They are as follows:1.Product: BRAC Bank is selling banking services. Examples can be General Banking, Foreign Remittances, Loans etc. Let the main focus be on the customer services of BRAC Bank, Zindabazar branch.2.Price: The bank is not charging customers daily any price for delivering the services; they just take the yearly service charge at a minimum rate.3.Place: Customer services are delivered through the branches of BRAC Bank, wherever it is existent, and help customers resolving their problem as much as possible. 4.Promotion: To promote a service different kinds of promotional tolls are used. Tools like advertising, sales promotion, brand merchandising etc. This is done infrequently by the bank and the decisions are mostly made centrally. 5.People: The bank employees who are delivering this service and the clients who take the services.6.Physical Evidence: This involves the environment that is present in the BRAC Bank, Zindabazar branch. It is rich in the case of Zindabazar branch.7.Process: The process of customer service is the means of delivering. Customer come to the branch and talk with the customer service officer and customer service officer solve their problems. In order to observe the success of external marketing, the 7 Ps discussed have to be balanced in order to ensure smooth service. The more quickly the service, the more happy the customers and the more happy the customers, the more profit the bank can earn. INTERNAL MARKETING: Internal marketing is performed between the company and the employees. In a services organization, the people and the process play a very important role in delivering the service to its customers. Both these tools have to be equally balanced by utilizing resources like technology and manpower available within the environment. There are times evident that if a process is inefficient and people are less well trained; it is hard to create a positive image about the company delivering the particular service.INTERACTIVE MARKETING: It is performed by the employees towards the customers in selling and delivering the service. Employees are the important factor in selling and delivering particular services to particular customers. This is because they are in interaction with the consumers in delivering a service. Gaps Found in the SMTIn respect to different marketing activities, there were quite a few gaps found. They are discussed as follows:EXTERNAL MARKETING: 1.Promotional activities are not done efficiently, in order to promote the services of BRAC Bank, Zindabazar branch.2.Lack in using the proper media for promotional activities. 3.The 7 Ps of services marketing mix are not in balance with each other to ensure quality service. The gap is existent among the people and the process of delivering the service.INTERNAL MARKETING: 1.The people are not acquainted with the usage of modern technology.2.As this report focuses on the customer service, it was frequently observed that in the busy day there were long wait of customers to get the services but there are no enough places for customers to sit, which hampers the smooth operation of the service delivery. INTERACTIVE MARKETING:1.Due to long standing wait customers shows temper sometimes and its create negative impact on other customers and as well as on employees mind. 2.Due to the earlier gap, a miscommunication leads to negative perception of the overall BRAC Bank, Zindabazar branch and services it is offering.3.BRAC Bank, Zindabazar branch is a busy branch but the size of the branch is not adequate to serve its customer. Recommendations in removal of existing gapsThe recommendations to fill the gaps by the key players are as follows:The Company:The Company is the Head of BRAC Bank. In the case of internal marketing, the Company could do as follows:1.Using up to date technologies so that the employees can be motivated to work in a modern environment.2.Providing technical training to the employees time to time.3.Providing training to employees regarding attitude and behavior towards customers so that they can easily handle any bad situation.4.The HR should recruit the best person fro the bank based on their merit.4.Appreciating the work performed and should motivate the employees.5.Job satisfaction and proper incentives should provide.6.Need to improve the Branchs internal environment. It should be more friendly and convenient for both; employees & customers. 7.Need to improve the organizations internal culture.In case of external marketing, the Head of BRAC Bank could:1.Involve customers in attaining a service so that swift service can be ensured.3.Create a loyalty program for clients, so that customers can become clients.4.e-marketing should introduce properly in regards to external marketing.5.Regular monitoring and feedback is necessary6.New products and services should introduce to serve the different market segments. 7.Proper and updated media should use for promotional activities.8.Co-operation between departments should strengthen and the departments should be informed. The EmployeeIn interactive marketing by the employees, they could perform the following:1.Informing the clients about the new services that are launched.2.Having cordial behavior towards the customers.3.Helping them at all possible ways in terms of banking services. 4.The employees should be well informed about the banks products and services. 5.Always should try to provide the best effort.Gap Model Analysis Figure 6: Customer Gap The Customer GapExpected ServiceCustomer GapPerceived ServiceThe central focus of the gap model is the customer gap, the difference between customer expectations and perceptions. Expectations are the reference points customers have coming in to a service experience; perceptions reflect the service as actually received. The idea is that organizations will want to close this gap between what is expected and what is received to satisfy their customers and build long term relationships with them. During my internship I asked 30 customers of BRAC Bank, Zindabazar branch about their services and surprisingly most of them are satisfied with the services, in fact some of them are delighted with the present service. The key findings of my small survey are as follows:1.Customer Satisfaction: About 63% customers (among 30 total 19 customers said they are satisfied) are satisfied with the present services provided by CSOs.2.Slow Service: About 25% customers complain that the services are slow. Specially 5 customers mentioned about the service of cash counter that they have to wait for long time to withdraw or deposit the money. One customer told that he is not getting 3 Months statement regularly, it delay sometimes but though he mentioned that it is the problem of this branch but actually the statement comes from head office which he may not know. Another customer told that he needs to wait for 3days to get a cheque book which should not be done because it creates problem for him. Another customer said that he was not clear about the services counter, i.e., specially he was confused about the counters.3.ATM Service: 20% customers complain about the ATM services which remain out of use most of the time. While another customer also told that though its disturbing but its ok because its a machine and technical problem may arise this is a part of machine. Customers also told they want more ATMs locations. 4.High Service Charge: About 30% customers object about the service charges which is high for the middle class people.5.Others: One customer told that he is not satisfied with the SMS service and phone banking service also perturb for him because its a lengthy process and one have to wait 2/3 minutes to get the operator.6.Service Timing: About 33% customers mentioned that they get the services within 6-10 minutes. Near about 27% customers told that they get the services within 3-5 minutes. 20% customers told that they get the services instantly and 20% customers it take more than 10 minutes top get a service from this branch.For overcoming these gaps and problems facing in delivering services my recommendations are as follows:The primary cause for not meeting customers expectations is that the firm lacks accurate understanding of exactly what those expectations are. The provider gaps are the underlying causes behind the customer gap:Figure 7: Gaps ModelGaps ModelGap 2CustomerPerceived ServiceCompany perceptions of consumer expectationsCustomer-driven service designs and standardsExternal communications to customersService DeliveryExpected ServiceCustomer GapGap 1CompanyGap 4Gap 3Page 9 of 61Gap 1- Not knowing what customers expect: This gap exists between bank perceptions of customers expectations and what customers actually expect. This branch should more focus on what customer expect from them. They want fastest service, trouble-free ATM service, minimum standard service charge, etc.Gap 2- Not selecting the right service designs and standards: This gap exists when organization does clearly understand its customers expectations, but the understanding is not properly translated into customer-driven service designs and standards. Some of the customers are not clear about the services counters, the design of the counters and desks makes confused to them. Also phone banking services is trouble-some.Gap 3- Not delivering to service standards: This gap arises when systems, processes and people in place failed to ensure that service delivery actually matches the designs and standards in place. To remove this gap the bank should focus on on-time delivery and try to avoid creating long cue.Gap 4- Not matching performance to promises: This gap occur when the promises to customers not matches with what is delivered. They should try to deliver 3 months statement, cheque books, cash payment, etc. as quickly as possible.Part E: Concentration of the InternshipCustomer Services provided by BRAC Bank, Zindabazar branchProblems Found in the Existing SystemThe problems existing in this are many and explained as follows:1.The present system is time consuming both for the bankers as well as the clients. For instance; in terms of bankers, the officers have to go through a lot of files in searching the details of a particular transaction, if it is backdated. In terms of clients, they have to wait in a long queue in order to let the officer find out the correct file.2.In some cases not paying attention towards customers during a busy hour.3.Customers do not receive appropriate attention. Even though these customers arent a/c holders of the bank, the goodwill and negative word of mouth of the bank and its overall image of quality service are hampered.4.In this branch most of the customers does not know about the token system and they come to the desk and then know that they have to take token and receive the service serially.5.Customers get impatient of waiting for a long time like 1/2 hour or even more for receiving during peak times.6.In case of foreign remittance there are times when the clients do not know which branch are they to receive their money from and thus going to branch to branch. For a service business that is in operation for long term, these effects will negatively affects the goodwill in the long run, which seems to be hazardous. New Process Design & Opportunity DevelopmentIntegration of IT with Present WorkflowIn order to remove the problems mentioned in the previous chapter, a new system should be designed. This system will consist of a database containing the details of services to be made and how the problem can resolve through computerized way without filling a form.The new process is designed in a way, so as to utilize the resources available within the working environment. Resources like- technology, manpower etc.Thus, integrating IT with the present work process integrates an easier work process and ensures better quality of service.Rationale for the Proposed New ProcessThe possible strengths of BRAC Bank, if system is modified are:1.As all the services are integrated with IT, a smooth and quick service can be given to clients and customers.2.An effective Customer Relationship Management (CRM) can be maintained, which is truly important for a service organization.3.Smooth service provision means goodwill and an image of the employee serving and the overall bank is created. Hence it will increase the number of deposit accounts.4.A high level of attention towards customer service can be given.5.Time consumption of the workflow is reduced and hence an effective service can be provided to clients and customers.6.Creation of a quick service enhances the brand image and helps in the course of an effective brand building.SWOT AnalysisStrengths:1.Professional management team.2.Multi product financial institution.3.Strong distribution channel.4.Satisfactory IT soft and hard infrastructure.5.Satisfactory performance.6.Adequate capital base7.Market leader in retail banking among local banks.8.Multi national & institutional ownership. 9.The top management of the bank, the key strength for the BRAC Bank has contributed heavily towards the growth and development of the bank.10.Strong network through out the country and provide quality of service to every level of customer.11.Evening banking of this branch is very helpful towards business professionals.12.Locations of Branches.13. Relationship with existing clients is personal base and very strong. They have developed professional relationship with their clients, which also includes emotional tough. 14.Installation and use of highly sophisticated, automated system that enables the bank to have on time communication with all branches reduces excessive paperwork and vanes time for valued customer transaction.15.From the very beginning BRAC Bank tries to furnish their work surroundings with modern equipment and facilities. Online Banking is one of the main attractions, which gave this bank a better position among private Banks.16.The corporate culture of BRAC Bank is very much interactive compare to our other local organizations. Management and owners (directors) share a very good relationship. 17.The employees share a good understanding with each other and it gave them reason to work efficiently and become more dedicated to work. 18.BRAC Bank has been founded by a group of prominent entrepreneurs of the country, who has developed good relationship with many large industrialists and influential people who are also large customers of the Bank.19.Correlation with foreign banks is very effective. They have relationship with more than 200 foreign banks. The foreign Banks also give preference to this Bank, which helps to give smooth services to the exporter and importer through this bank. Weaknesses:1.Insignificant market share.2.Dependence on high cost bearing fixed deposits.3.Limited disclosure.4.Concentrated ownership.5.Low non-funded business.6.Advertising and promotion is one of the weak points of this branch. There is no marketing department and does not have any effective plan for aggressive marketing activities.7.Higher service charge in some areas of banking operation than that of nationalized banks discourages customers from opening or maintaining accounts with this bank.Opportunities:1.Huge untapped sub-urban and rural market SME.2.Government of Bangladesh has rendered its full support to the banking sector for a sound financial status of the country, as it is becoming one of the vital sources of employment in the country now. Such government concern will facilitate and support the long-term vision for BRAC Bank. 3.The online Banking and SWIFT facility will open more scope for BRAC Bank to reach the clients not only in Bangladesh but also in the global arena. It will also facilitate wide area network in between the buyer and the production unit of BRAC Bank to smooth operation to meet the desired need with least deviation.4.The Bank can recruit experienced, efficient and knowledgeable workforce as it offers attractive compensation package and good working environment.5.The credit facility offered by BRAC Bank has attracted security and status conscious businessmen and as well as service holders with higher income group.Threats:1.Increased competition in the market for quality assets.2.Supply gap of foreign currency.3.Default culture is very much familiar in our country. For a bank, it is very harmful. As BRAC Bank is quite new; it has not faced it seriously yet. However as the bank grows older it might become a big problem.4.The Central Bank exercises strict control over all banking activities in local banks like BRAC Bank. Some times the restriction impose barrier in the normal operations and policies of the bank.5.Rival bank can easily copy the product offering of BRAC Bank. There fore the bank is in continuous of product innovation to gain temporary advantage over its competitors.6.The worldwide trend of mergers and acquisition in financial institutions is causing concentration the industry and competitors are increasing in power in their respective areas.7. Due to existence of demand in financial sector, it is expected that more financial institutions will be introduced in the industry very shortly. And we have already seen such cases in our country that lots of new banks are coming in the scenario with new services. BRAC Bank should always be prepared for the competition in the coming years.Problems found in BRAC Bank Limited, Zindabazar BranchAdvertising and promotion:Lack of advertising and promotion is one of the weak points of BRAC Bank, Zindabazar branch. BRAC Bank Limited does not have any effective promotional activities through advertisement, but other banks have better promotional strategy in Sylhet.Centralization:The Bank is too much centralized. For each and every move, branch office has to go for permission from the Head Office. The Head Office tightly controls each and every branch office. This sort of dependency on Head Office slows down the activities of branch office.Inefficient waiting place:In compare to customers the place for waiting/ sitting areas are not sufficient, as a result, customers have to wait by standing.Lack of Rural Banking:Though there are huge opportunities of Rural Banking in potential rural areas of Sylhet Division, the bank is opening only urban branches in Sylhet Division.Few Merchant Locations:There is a very few merchant location of ATM card. Findings1.The service of Brac Bank Ltd. is competitive and efficient comparing to the others; but there is significant scope of improvement. 2.The bank needs to make significant effort to improve the employee relationship with clients.3.The environment inside the bank needs to be improved significantly for efficient and pleasant banking activities for the customers. 4.Steps should take to improve employee job satisfaction.5.More customized products and service should introduce.6.Sales team often provides inadequate or incorrect information to the customers.7.To increase customer satisfaction the bank needs to improve their service quality by providing more importance on customers preference. 8.Service charge is relatively high than others.9.Internet link problem hurdles the service delivery process.10.Branch needs more personnel to ensure smooth service. In terms of the customers, environment of the bank is quite ok but the services of cash needs to more fast also more attention need to be given to the customers when they come for foreign remittance. Its better if different place/desk is maintained for foreign remittance. Recommendations A bank is an institution that is to remain active for a long term. In this mean time, if the good will of the bank is affected due to negative word of mouth and poor services; ultimately a major section of the customers will switch the banks because of competitors finding the gap and filling it. It is recommended that:1.Steps are taken to implement the new process in order to ensure a smooth service as promised to customers.2.A new local brand ambassador should be used to promote BRAC Bank as a brand.3.Employees needed to given adequate training to work and handle clients under pressure. In this case both the branch authorities and higher authorities can persuade each other to train the employees.4.BRAC Bank Limited should increase more Consumer Banking activity. Their Consumer banking activity is quite satisfactory but it will be better if they can put attention on individual customer.5.BRAC Bank Limited should pursue advertisement campaign in order to build a strong image among the local Sylheti people. They should carry out aggressive marketing campaign to attract clients. They can give advertisements in local newspaper and magazine, television and neon signs.6.They should invent other type of deposit to attract more customers which is different from other banks.7.BRAC Bank Limited should maintain more cash and deposit balances with other banks. Because it is desirable that banks keep their cash and balance with other bank to such extent so that it can minimize the chance of liquidity crunch.8.BRAC Bank Limited should develop more strategic planning as to compete with its rival banks.9.BRAC Bank may introduce one stop service for its client. 10.Recruit more efficient employees.11.Increase the merchant locations of ATM cards.12.As most of the customers of the bank are aged between 21 to 30, the bank should consider the products and services with fewer service charges that are suitable for that age group. The products should also be developed mostly for customers with income more than 30,000 and particularly jobholders. 13.The bank needs to slightly modify their savings scheme to attain superior customer satisfaction. In this case, they should consider maximizing customer profitability alongside the banks. 14.As there is significant scope of improvement for employee knowledge of products, the company could device training session every few months. This would also allow them to improve the employee to client relationship, in which they seem to be vulnerable at the present state. 15.BRAC Bank has significant problem regarding the environment of the bank. In this case, they need to identify exactly which portion of the environment is bothering them the most and then resolve the problems in the best possible manner. 16.Problems regarding IT and internet link should take seriously. 17.Should increase the number of ATMs and ensure their smooth operations.18.Internet based customer service may introduce so that customer can receive their service sitting at home. It will provide Brac Bank the first mover advantage.ConclusionSince the banking service especially the private Banks are doing an outstanding business, so it is clear that the modern people are more concerned about securing their valuable assets and get high-quality and timely services. For this reason lot of new commercial bank has been established in last few years and these banks have made this banking sector very competitive. So, now banks have to organize their operation and do their operations according to the need of the market. Banking sectors no more depends on a traditional method of banking. In this competitive world this sector has trenched its wings wide enough to cover any kind of financial services anywhere in this world. The major task for banks, to survive in this competitive environment is by managing its assets and liabilities in an efficient way. BRAC Bank is the most promising private commercial bank in Bangladesh. Every day BRAC Bank endeavor to increase their product and services although they provide a wide range of product of services to their customers. BRAC Bank is helping the economy of Bangladesh by remitting of funds both local and foreign. For helping the people the bank provides bridge financing loan, working capital loan to its corporate clients. As modern function BRAC Banks provides credit card facility, ATM card facility and any branch banking facility to its customers. The BRAC Banks philosophy - "Trust Unshakeable" has been precisely an essence of the legend of success in the Asian countries. The bank has proved to be successful by offering quality and timely services to its customers. The employees of BRAC Bank are very efficient; everyone knows their work very well and can perform efficiently to produce the best output. The bank has plans to open more branches to expand their network. This project concentrated mostly on the customer services of the Zindabazar branch and identified some valuable information that could make the services more attractive and also enhance the banks reputation among the customers. With the current performance of the Bank and with little improvement here and there will certainly make BRAC Bank one of the best Private Bank in Bangladesh in the near future.