Standard Chartered Bank SHAMS NSU Internship Report

I N T E R N S H I P R E P O R T O N S T A N D A R D C H A R T E R E D B A N K

Relationship Between The Clients’ Knowledge and The Actual Products & Services Provided By SCB

PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

1.0 INTRODUCTIONINTRODUCTIONINTRODUCTIONINTRODUCTION

Internship is a partial requirement of graduation. It offers a great opportunity for any student

to get some tremendous and brilliant ideas about the practical field. It is also a challenging

experience to prepare Internship Report which increases intellectual abilities as an efficient

graduate. As Banking sector have emerged as the most important player of our economy

and they also offer a passionate environment for career development so it was my premier

objective since the very beginning of BBA program to accomplish internship in this type of

financial institution.

A develop banking sector plays a vital role for financial stability of a country.

Standard Chartered Bank (SCB) is a multinational bank and financial services group that is

incorporated in the U.K. with a unique international network. It now spans in the developed

and emerging economies of the world, after having been in existence for 150 years

now. I am very glad for getting the opportunity to accomplish my practical training in

the Standard Chartered Bank at 67,Gulshan Avenue; wh ich is the Head Of f ice o f

Standard Char tered Bank in Bangladesh. The internship program was carried on the

Corporate Affairs department. The internship report has been based on the Customer’s

perception about different product and services provided by Standard Chartered Bank. During

the three month long internship period spanning form February’12 to April’12 in

Standard Chartered Bank the writer of this report gained practical knowledge about the

evaluation process of Customer Satisfaction a consumer product of SCB and worked on a

project titled “ Relationship between clients’ knowledge on the services provided

by Standard Chartered Bank and the actual services that are available by the

bank for the customers”. Here the analysis has been made on the service of SCB,

different product like Account; loan of SCB as a whole as well as a performance evaluation

of SCB has been made to identify the relationship of the profitability of the bank and the

contribution of the customer satisfaction.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

1.1 ORIGIN OF THE REPORTORIGIN OF THE REPORTORIGIN OF THE REPORTORIGIN OF THE REPORT

This report has been assigned to me during my internship period at SCB by my organizational

supervisor of SCB Mr. ………….., as a core requirement for the completion of my BBA program

from North South University. My faculty advisor ………………………. has also given me approval

to do this particular report on the topic of

“Relationship between clients’ knowledge on the services provided by Standard Chartered

Bank and the actual services that are available by the bank for the customers”.

1.2 OBJECTIVESOBJECTIVESOBJECTIVESOBJECTIVES

The goal is to identify the main reasons of client dissatisfaction and find its relationship with a

client’s level of knowledge about the bank’s services. In order to accomplish my goal I have

identified one important observation and that is the relationship between clients’ knowledge

on the services provided by the bank and the actual services that are available by the bank

for them. Disparity in such cases often result in the most common forms of client

dissatisfaction

Satisfaction of these services depends on many variables but most importantly on two factors:

1. The level of service provided to clients as promised by the bank.

2. And the level of services expected by the clients.

I have also tried to find out the following aspects:

Finding out about the clients

Clients level of involvement with the bank

How updated clients are with bank’s services



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

1.3 SIGNIFICANCE OF THE STUDYSIGNIFICANCE OF THE STUDYSIGNIFICANCE OF THE STUDYSIGNIFICANCE OF THE STUDY

As an institution, bank has been contributing towards the development of any economy

for a long time and at the moment it is treated as an important service industry in modern

world. Nowadays, the function of a bank is not limited within the same geographical limit of

any country. Due to globalization and free market economy, this industry is facing severe

competition. Most of the banks fail due to lack of proper strategic planning and goals. One

of the major reasons of their poor performance is adaptation of traditional banking system.

They are very much slow in adopting new product line, less concerned about attracting

and satisfying customers and being reluctant to implement information technology. That’s

why it is very necessary for each and every bank to evaluate its performance over the

periods.

Basically, this study is conducted to expose the way to find out the customer’s

satisfaction level and know how to provide them better service. Different evaluating

procedures and techniques have been followed to measure the customer’s Satisfaction. This

study will establish that there is a basis why expectations and goals need to be aligned and why

the misalignment causes unsatisfactory results. The goal of SCB is to satisfy its clients;

therefore the bank needs to communicate to its clients about the services available to them by

SCB.

On the other hand the clients need to be aware of what the bank is communicating to them. If

the clients choose to remain uninvolved with their bank then their level of expectation will be

very difficult to match as there would be no basis on those expectations.

Client dissatisfaction arises based on their expectations supported by their lack of staying

updated with information as provided by the bank. Hence the study is important as it will

prove that when it comes to client satisfaction the clients are also as responsible in staying

aware and updated on the banking services as well as the bank is responsible to deliver services

as promised.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

1.4 HYPOTHESISHYPOTHESISHYPOTHESISHYPOTHESIS

With reference to all the above, therefore the hypotheses of this report are

Hypothesis 1:

H0: “The level of customers’ satisfaction about the services provided by SCB is not positively

related to the level of customers’ exposure about the bank’s service packages.”

H1: “The level of customers’ satisfaction about the services provided by SCB is positively

related to the level of customers’ exposure about the bank’s service packages.”

Hypothesis 2:

H0: “Customers’ expectations of service don’t matches bank’s service promise.”

H1: “Customers’ expectation of service matches bank’s service promise.”

Hypothesis 3:

H0: “SCB’s Customers are not updated of the bank’s services.”

H1: “Customers’ SCB’s Customers are updated of the bank’s services.”

Hypothesis 4

H0: “SCB’s Customer involvement with the bank is not high.”

H1: “SCB’s Customer involvement with the bank is high.”



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

1.5 METHODOLOGYMETHODOLOGYMETHODOLOGYMETHODOLOGY

In order to attain the objectives, collection of primary data was necessary apart from secondary

data. The primary data is used to run tests and as such. Therefore the methodology included:

• Conducting a survey among 54 clients of the bank with more or less equal distribution

between male and female. (appendix)

• Checking the data for ‘noise’

• Running tests based on the data generated.

• Give meaning to the results manifested by the test runs.

• Conclude on the hypothesis test.

1.6 LIMITATIONS OF THE STUDYLIMITATIONS OF THE STUDYLIMITATIONS OF THE STUDYLIMITATIONS OF THE STUDY

The collection of data for this report has been difficult because

It is hard to ensure the authenticity of the data. Even though the bank has provided

numbers for the report, I have been informed that the data was distorted ‘to a reasonable

degree’, due to security and confidentiality concerns of the bank which it deemed as

inappropriate to disclose outside the bank. Hence, the validity of the information

gathered is somewhat questionable.

Finding suitable sample which will represent all customers of SCB.

The sample of customers used to make judgment about the population may be biased.

Satisfaction is a subjective issue and varies among individuals.

Moreover, time for finishing this report has been another factor. Due to late working

hours of the bank, most part of the report had to be completed after the intern period in

the bank was concluded.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

2.0 SCB SCB SCB SCB GROUPGROUPGROUPGROUP

Standard chartered is the world’s leading emerging bank, head quartered in London. Its

business however has always been overwhelmingly international. The bank is currently

operating in Africa, Asia pacific, America, Middle East, South Asia, and Europe.

Standard chartered expanded its network, and has an office in every country in the Asia pacific

region. Standard chartered is now focused on providing cross border services to its Latin

American core customer base, composed of multinational corporations, international financial

institutions and large local corporations. In 1999, standard chartered acquired the global trade

finance business of union bank of Switzerland. This acquisition makes standard chartered one

of the leading clearers of dollar payments in the USA. Standard Chartered serves both

consumer and wholesale banking customers, is well established in growth markets and aims to

be The Right Partner for its customers. The Bank is trusted across its network for its Standards

of governance and its commitment to making a difference in the communities in which it

operates.

With 150 years in the emerging markets the group has unmatched knowledge, understanding of

its customers in its markets. Standard Chartered recognizes its responsibilities to its staff and to

the communities in which it operates. Their 150 years of history gives them a deep better

understanding of their markets, their customers, and the local communities in which they

operate. It is a strong platform for future growth. Standard Chartered is holding leading

positions in dynamic markets. They are in some of the world’s fastest growing markets

including the United Arab Emirates, India, China, and the markets of South Asia. They are

present in many of their markets for several generations and have became a trusted partner to

businesses and individuals. In other words, they are trusted and well respected provider of

financial products and services. They have built up an enviable knowledge of local markets in

Asia, Africa, the Americans and the Middle East.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

2.1 HISTORY HISTORY HISTORY HISTORY OF OF OF OF STANDARD STANDARD STANDARD STANDARD CHARTERED CHARTERED CHARTERED CHARTERED BANKBANKBANKBANK

The Standard Chartered Group was formed in 1969 through a merger of two banks:

TTTThe he he he SSSSttttandaandaandaandarrrrd Bankd Bankd Bankd Bank ooooffff BBBBrrrriiiittttiiiissssh h h h SSSSoooouuuutttth h h h AAAAffffrrrriiiicccca fa fa fa foooouuuundndndndeeeed in 1863, ad in 1863, ad in 1863, ad in 1863, annnndddd

TTTThe Chhe Chhe Chhe Chaaaartrtrtrteeeerrrredededed BBBBaaaannnnkkkk ofofofof IIIIndia, ndia, ndia, ndia, AAAAusususustrtrtrtralia and China, falia and China, falia and China, falia and China, foooouuuunded in 1853.nded in 1853.nded in 1853.nded in 1853.

Both companies were keen to capitalize on the huge expansion of trade and to earn the

handsome profits to be made from financing the movement of goods from Europe to the East

and to Africa.

Chartered bank was established in 1853 by a Royal Charter granted by Queen Victoria of

England. The main person behind the Chartered Bank was a Scot, James Wilson who had also

started “The Economist” still one of the most eminent publications today. He foresaw the

advantages of financing the growing trade links with the areas in the East, where no other

financial institution was present that time widely.

Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858,

followed by Hong Kong and Singapore in 1859. Traditional business was in cotton from

Mumbai (Bombay), indigo and tea from Calcutta, rice in Burma, sugar from Java, tobacco from

Sumatra, hemp in Manila and silk from Yokohama Played a major role in the development of

trade with the East which followed the opening of the Suez Canal in 1869, and the extension of

the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with

the Ionian Bank's Cyprus Branches. This established a presence in the Gulf

The Standard Bank founded in the Cape Province of South Africa in 1862 by John Paterson. It

commenced business in Port Elizabeth, South Africa, in January 1863 was prominent in

financing the development of the diamond fields of Kimberley from 1867 and later extended its

network further north to the new town of Johannesburg when gold was discovered there. In

1885 expanded in Southern, Central and Eastern Africa by 1953 had 600 offices. In 1965, it



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

merged with the Bank of West Africa expanding its operations into Cameroon, Gambia, Ghana,

Nigeria and Sierra Leone.

In 1969, the decision was made by Chartered and by Standard to undergo a friendly merger. All

was going well until 1986, when a hostile takeover bid was made for the Group by Lloyds

Bank of the United Kingdom. When the bid was defeated, Standard Chartered entered a period

of change. Provisions had to be made against third world debt exposure and loans to

corporations and entrepreneurs who could not meet their commitments. Standard Chartered

began a series of divestments notably in the United States and South Africa, and also entered

into a number of asset sales.

In the new millennium Standard Chartered Bank acquired Grindlays Bank from the ANZ

Group and the Chase Consumer Banking operations in Hong Kong in 2000. In 2006, the bank

made a number of acquisitions and strategic alliances that extended its customer and

geographic reach.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

2.2 GLOBAL GLOBAL GLOBAL GLOBAL PRESENCE PRESENCE PRESENCE PRESENCE OF OF OF OF SSSS....CCCC.... BBBB....

Standard Chartered Bank has its presence in total of 50 countries.

The global map of Standard Chartered is given below:



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

2.3 KEY RESOURCES OF STANDARD BANKKEY RESOURCES OF STANDARD BANKKEY RESOURCES OF STANDARD BANKKEY RESOURCES OF STANDARD BANK

Globally, the SCB group owns an array of key resources that include:

A network of over 600 offices in 50 countries.

A stuff of about 33000 people managing assets of around 47.65 billion pounds.

Standard Chartered Bank's international business in personal Banking, Corporate

Banking and Standard Chartered Markets are its special strength.

Standard Chartered Bank also maintains correspondents’ relationship with over 600

banks in 157 countries around the world.

2.4 GLOBALGLOBALGLOBALGLOBAL STRATEGYSTRATEGYSTRATEGYSTRATEGY

At the global level, SCB operates with some key strategies that are quite unique to other banks

such as:

To build and grow strong businesses in Middle East, South Asia and Far East Asia.

Capitalize on the good track record created by its more than 150 years of operations in

these regions by building unique position and image among the target customer segment

and being responsive the needs and serve the needs better than the competitors.

To concentrate operations in those activities that support Standard Chartered Bank's

remarkable franchise in newly industrialized and emerging markets.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

2.5 OPERATION OPERATION OPERATION OPERATION OF OF OF OF STANDARD STANDARD STANDARD STANDARD CHARTERED CHARTERED CHARTERED CHARTERED BANKBANKBANKBANK

Standard Chartered Bank has a strong presence in Asia, the sub-continent, the Middle East,

Africa and in Latin America. They are a disciplined commercial bank focused on their core

businesses of consumer Banking, Corporate and Institutional Banking and Treasury. Standard

Chartered Bank is regulated by the Bank of England and is a clearing bank in the United

Kingdom. The head office of the group is located at Standard Chartered PLC,1, Aldermanbury

Square ,London , UK. The group operates through more than 600 offices in over 56 countries

and has over 33000 people managing assets of over 47 billion pounds. In 1997, the Bank were

ranked 94th in the world in asset size. Among them it has 239 offices in Asia, 33 offices in

South &North America, 95 offices in Africa and one office in Australia.

The global network of the bank is shown in the following diagram:

Figure: Global Network of SCB(Source: SCB official document)

The bank aims to be the leading international bank in principal markets. It mostly concentrates

on markets and businesses that they understand best. They provide high quality products

supported by proven delivery systems and excellent customer service. SCB trains and develop

people and exercise community responsibility. In this way, they will grow and add shareholder

value.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

2.6 BUSINESS ACTIVITIES OF S.C.B.BUSINESS ACTIVITIES OF S.C.B.BUSINESS ACTIVITIES OF S.C.B.BUSINESS ACTIVITIES OF S.C.B.

The bank provides various products and services all around the world, some of which are

mentioned here:

Global Consumer Finance

There are seventy-six branches and finance

centers under this division in about the

countries with a workforce of 1616

employees. Some of the services provided by

this divisions are unsecured personal loans,

credit cards and retail store cards, vehicle

related leases, etc.

Personal Banking

There are about 410 branches with a

workforce of 12000 employees working

under this division in 28 countries. Some of

the services provided by this division are

various kinds of insurance and loans, account

maintenance, travelers cheques and money

exchange etc.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Global Corporate Banking

There are 350 branches under this

division. This division provides services

in 4 2 countries. The services provided by

this division are international Trade

Management Institutional banking,

Treasury, Custody and Cash Management.

Global Custodian Services

There are 17 offices under this

division and about 900 staff members,

operating in 14 countries and

headquarters in Singapore. Standard

Chartered fulfills Standard Chartered

Bank’s strategic commitment to

provide custody and clearing services

in the greater Asia. Standard

Chartered Bank has one of Asia’s

leading custodians over 40 years.

International Trade Management

Principal services of this division are to the people are import Letter of Credits (L/C), import

bills for collection, Bank to Bank Letter of credit, Direct Export Bills for collection, Bulk Letter

of credit Collection, Bonds and Guarantees.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Global Cash Management

The division is operational in all countries

where the group has Corporate &

institutional Banking division. Standard

Chartered Bank recognizes the importance

of cash Management to corporate and

institutional customers and offers a

comprehensive range of services and

liquidity management.

Global Institutional Banking:

Through Standard Chartered Bank’s network of more than 600 offices in over in over 40

countries, it is very well positioned to provide a wide range of services to institutional clients:

commercial, merchant & central banks; brokers and dealers; insurance companies; fund

managers and others. Offices of emerging markets of Asia, Sub-Saharan, the Middle East and

Latin America are complemented by the branches in the developed countries such as USA, UK

and Japan and bank’s membership of the clearing systems in those countries. The Institutional

banking group has a network of offices in 25 countries throughout Asia, North America,

Europe, Africa and The Middle East.

Global Electronic Banking

Electronic Banking provides various types of support through a wide range of operating

systems, sweeping transaction accessories with the provision of reporting features.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3. STANDARD CHARTERED BANK IN BANGLADESHSTANDARD CHARTERED BANK IN BANGLADESHSTANDARD CHARTERED BANK IN BANGLADESHSTANDARD CHARTERED BANK IN BANGLADESH

3.0 HISTORIES ANDBACKGROUND

The Chartered Bank started

operating in Bangladesh in 1948,

opening a branch in Chittagong.

The branch was opened mainly to

facilitate the post-war

reestablishment and expansion of South

and Southeast Asia. The Chartered Bank opened

another branch in Dhaka in 1966, where it is still headquartered.

After the merger of the Chartered Bank with the Standard Bank in 1969, the

Standard Chartered Bank took up a program of expansion.

In the year 1999 Standard Chartered has acquired the operation of Grindlays Bank in the

Middle East and South East Asian countries. Former Grindlays Bank started its journey in

Bangladesh in 1905 under the name of Grindlays Bank (when it forbears the National Bank of

India opened in Chittagong). Standard Chartered Bank took-over the operation of ANZ

Grindlays Bank in Bangladesh as a part of acquisition of South East Asian and Middle East

operation of the Australia and New Zealand Banking Group. Standard Chartered Bank (SCB)

become the highest bidder quoting about AU$ 2.5 bn (US$1.5 bn) after ANZ Banking group

decided to sell its subsidiary.

On June 2005, Standard Chartered formally announced that it has signed an agreement to

acquire the commercial banking business of American Express Bank Limited in over a three-

month transition period ending 31 October 2005, all the assets and liabilities of American

Express including customer deposits and loans, will be transferred to Standard Chartered. It is

planned that American Express will cease to operate as a commercial bank in Bangladesh with

effect from 1st November 2005 and all its branches and cash booths will be converted to the

Standard Chartered brand and operating platforms on such date.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.1 PROFILEPROFILEPROFILEPROFILE OFOFOFOF STANDARDSTANDARDSTANDARDSTANDARD CHARTEREDCHARTEREDCHARTEREDCHARTERED BANKBANKBANKBANK

Name of the Organization:

Standard Chartered Bank

Registered Address:

1 Aldermanbury Square London EC2V, 7SB. England.

Bangladesh Registered Address:

SCB House, 67 Gulshan Avenue, Gulshan Dhaka-1212.

3.2 ORGANIZATION’SORGANIZATION’SORGANIZATION’SORGANIZATION’S PHILOSOPHYPHILOSOPHYPHILOSOPHYPHILOSOPHY

Philosophy at SCB is to lead the way in everything they do, ranging from our

commitment to their people, customers and the community to working in harmony with

investors and regulators.

3.3 VISIONVISIONVISIONVISION

Leading the way by providing best customer services. Brand promises baying the right

partner.

3.4 MISSIONMISSIONMISSIONMISSION

“Become the world’s best international bank”

3.5 BRBRBRBRAND PROMISE:AND PROMISE:AND PROMISE:AND PROMISE:

“Here For Good”“Here For Good”“Here For Good”“Here For Good”



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.6 VALVALVALVALUUUUESESESES

Responsive: Standard Chartered is good on their word. They are

accessible whenever and wherever the customers need them. Not only do they strive

to deliver solutions, they also aim to exceed customers’ expectations.

Trustworthy: They respect the customers, and the life customers live. By

understanding customers’ needs and tailoring the right financial solutions for

customers, they earn Standard Charterer’s trust.

Creative: Creative thinkers are not limited by convention. They allow their minds

to soar beyond predictable solutions. That's how Standard Chartered approaches each

challenge posed to the bank, which is why they base their products and services on

ideas that are innovative, perceptive and instinctive.

International: They (SCBs) understand the balance between global and local.

Customers trust them to be established and internationally-networked, while at the

same time sensitive to the customer individual needs. Their strong network across

cultures helps customers build stronger relationships based on ideas, not formulae.

Courageous: A commitment to being there for customers, in good times and bad.

They help customers achieve their aspirations by guiding them towards the right

choice, not just the easy one.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.7 OBJECTIVESOBJECTIVESOBJECTIVESOBJECTIVES

Based on their mission and vision, Standard Chartered has come up with few

objectives, which they believe will help them reach their desired destination. They are:

Gaining a larger market share: Standard Chartered Bank currently has a quite

low market share of less than 6%. They want to increase their market share in the coming

years.

Provide technologically advanced services: SCB want to provide

technologically advanced services for the convenience of their customers. They were the

first bank in the country to introduce Money link ATM cards. Now they have introduced

Phone-banking, Internet banking and SMS banking.

Making banking comfortable and convenient for customers: SCB wants

to retain their customers by making customers feel comfortable while they are at the

banking premises. For this reason they have arranged for adequate seating facilities.

Ensuring customer satisfaction: Standard Chartered Bank has made use of

different means of getting feedback from customers so as to understand their level of

satisfaction, based on which they can take the necessary actions to ensure customer

satisfaction.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.8 STRATEGIES:STRATEGIES:STRATEGIES:STRATEGIES:

Standard Chartered Bank has formulated some strategies to achieve their desired

objectives. These strategies include

Promotional activities: Standard Chartered Bank is trying to achieve their

objective of increasing their market share by engaging in promotional activities.

Offering a very wide range of innovative products: Standard Chartered Bank

wants to establish themselves as a strong brand name in the minds of customers.

Innovative products such as evening banking, 24 hours ATM banking, 24 hours

Phone banking, Internet banking, SMS banking, platinum credit cards, gift cards

positive steps in this regard.

Introducing more convenient and comfortable means of banking: The

innovative products offered by SCB have already made banking more convenient for

customers. They have introduced token systems for customers who want to engage

in cash and cheque transactions or want to make remittances.

Providing free gifts to customer who make more use of SCB’s products

and services: The Bank has made use of promotional strategies such as providing

customers with free gifts like perfumes, shopping vouchers based on their use of

credit card usage.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.9 PRESENT PRESENT PRESENT PRESENT CONDITION CONDITION CONDITION CONDITION OF OF OF OF SSSS.C.B. .C.B. .C.B. .C.B. in in in in

BANGLADESHBANGLADESHBANGLADESHBANGLADESH

The SCB with its 26 Branches & booth and 93 ATM Center and 17 Financial Kiosks across

Bangladesh has employed 1633 people. The acquisition of Grindlays Bank has enabled

Standard Chartered Bank (SCB) to across 500,000 new customer and 40 branches in India, and

this made them one of the biggest bank in this region. In Bangladesh now SCB is serving more

than 3 lack customers.

The Branches of SCB are in:

DHAKA

CHITTAGONG

KHULNA

SYLHET

NARAYANGANG

BOGURA

The network of SCB engages itself for providing best quality banking service in retail,

commercial and corporate banking segments. The countries top Enterprises; Multinational,

Local Corporation and Financial institutions are served by SCB. With total asset based of BDT

17.5 billion and annual turnover of BDT 1.78 billion, SCB in Bangladesh is among the top

performing multinational bank.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.10 THE THE THE THE ORGAORGAORGAORGANIZATION NIZATION NIZATION NIZATION STRUCTURESTRUCTURESTRUCTURESTRUCTURE

The Standard Chartered Bank in Bangladesh has its headquarters and twenty six branches

across the country. While the full range of services is available at the headquarters, other

branches offer specific services appropriate for the location. At the headquarters, the bank

mainly consists of two divisions:

BUSINESS &

SUPPORT

The Business Division has the following departments:

▪ Corporate Banking Group (CBG)

▪ Global Markets (GM)

▪ Institutional Banking Group (IBG)

▪ Consumer Banking (CB)

▪ Custodial Services (CUS)

The Support division provides assistance to the above business activities and consists

following departments:

▪ Operations

▪ Finance, Administration and Risk Management

▪ Information Technology Center

▪ Human Resource Department

▪ Legal and Compliance

▪ Corporate Affairs

▪ Credit



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

All the staff members of Standard Chartered Bank belong to an internal trade union known as

"Standard Chartered Bank Employees Union" the clauses of which are reviewed and agreed

upon every two years.

Chain of Command: Chartered Bank in Bangladesh follows a hierarchical pattern of

command. The Bank in Bangladesh is headed by the Chief Executive Officer, who reports to

the office of the Regional General Manager, Middle East and South Asia (MESA). All the

department heads at the headquarters report to the CEO. The Organogram of the Standard

chartered bank is given below:



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.11 ACHIEVEMENTS OF STANDARD CHARTERED ACHIEVEMENTS OF STANDARD CHARTERED ACHIEVEMENTS OF STANDARD CHARTERED ACHIEVEMENTS OF STANDARD CHARTERED

BANKBANKBANKBANK

Since its inception, Standard Chartered Bank created a well-earned reputation among the

banking sector by providing excellent services to its customers as. As a result within these fifty

years it becomes the leader of foreign banking institution across the country. The reason behind

its success and popularity is the innovative techniques and the excellent work force. SCB is

always front-runner adopting in any latest technology in the world. Because it believes that

innovative technology is a key asset for the future of banking. Our strategy is to invest in those

systems that will enable them to upgrade and enhance financial services. Initiatives include the

spreading of high quality transaction processing across the Group; the use of workflow

technologies such as electronic imaging; the introduction of state-of-art Cash Management and

trade products; and fully automated branch services. They are also harnessing technology to

improve our risk management system and the internal process for sharing information, thus

solving business problem and meeting customer needs in the first moving markets.

While Standard Chartered Bank in Bangladesh is yet to be at forefront of many of these

developments they are already recognized as the technological leader in the banking sector of

Bangladesh for their following achievements:

Standard Chartered Bank is the only bank with 24 hours automated Phone-Banking service.

State-of-art ATM network running on unique platform.

Usage of optical storage for retrieval of records on customers request.

On-line real-time connection among all branches.

Full-fledged back-up data center support.

Only bank in the country to use inter-city VSAT link.

Only Bank using automated jailing system.

SWIFT communication for payment transfer.

E-mail service network amongst all the branches.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.12 CUSTOMER LOYALTYCUSTOMER LOYALTYCUSTOMER LOYALTYCUSTOMER LOYALTY

Achieving Customer loyalty is the prime goal of Standard Chartered Bank. Standard

Chartered’s aspiration to be “The Right Partner” falls in to this framework as well. Service

providers are continuously striving to provide the best that they can possibly give to their

customers so as to differentiate from competitors.

SCB’s customer loyalty attainment program involves the following intertwined and

interdependent strategy:

Intelligent Queue Management – Quick Queue System

SCB has developed a software solution system that will aid in trafficking people at the

branches. The Quick Queue system of SCB helps to upgrade customer experience in the

following ways:

The system generates a token for teller service based on type of service (cash withdrawal or

deposit, cheque deposit, credit card payments etc.) & the volume of service (below 50K.

50-100K, over 100K etc)

The system automatically calculates the workload of available teller/CSO and the token is

issued where the customer will experience the lowest possible queue.

CSO/ Teller can view the number of people awaiting his service. BSSM can also view the

current status and get a total picture of the “floor” thus being able to track individual as well

as overall performance.

Customers on receiving the token can go about their business without having to stand in

queues. They can go for walk, look through brochures etc.

The software system is connected to the central database through a network. It stores all the

event information such as, total waiting time, total service time, arrival date and time, service

category, teller id etc. these stored data are analyzed by an intelligent system and later used to

make the prediction about the waiting time for future customers. These data are also used to

evaluate the performance of the bank teller.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Complaint Management

Complaint Management is a key component in Voice of Customer design. Standard Chartered

solves complaint by utilizing C-manager a robust program to monitor, resolve and track

customer complaints/voice. Complaint management is also a key component of Relationship

Management System.

Figure: Relationship Management System (Source: News letter of SCB)

Benefits of Complaint Management:

Seek complaint and customer feedback actively.

Drive rapid service recovery.

Minimize future complaints by eliminating root causes.

Design a roadmap for reaching the group standards.

Ensure action oriented reporting

RELATIONSHIP MANAGEMENT SYSTEM

Complaint

Management

E-Forms

Call Office

Administrator



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Customer Improvement:

Standard Chartered always focuses on how to make transactions more satisfying, relationships

more reliable, and partnerships increasingly powerful.

Figure 3.4: The four stages of improvement (Source: Newsletter of SCB)

Explore: The domain of exploration, discovery and open-minded speculation. Both parties

must engage with a commitment to mutual disclosure and the invention of new possibilities.

Agree: Robust exploration leads to new opportunities for creating a future together. Initial

requests, proposals and offers are often the first step towards mutually satisfactory agreements.

Deliver: Take necessary action to fulfill promises and thoroughly execute agreements. Serve,

develop, customize, manufacture, test, install, train, modify and provide promised training and

support.

Assure: Check to see if promises have been fulfilled, confirm that the customers’ needs have

been actions have taken and finally find ways to work even more effectively together.

Agree

Deliver

Explore

Assure



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

VOC (Voice of Customer):VOC (Voice of Customer):VOC (Voice of Customer):VOC (Voice of Customer):

One of the major work streams of Customer Loyalty is VOC. VOC research is continuous

effort, which helps in learning what customers have to say. After gather VOC, SCB trying to

incorporate the customer response into viable products/services. For e.g. over the phone

banking was a prime expectation of customers of SCB that fulfilled by Call Centre. Thus VOC

helps in designing new products / services and ensures customer requirements. Ultimately this

is what SCB require for staying in business profitably. At present full VOC initiative entails the

following:

▪ VOC through customer complaint / feedback

▪ VOC through customer suggestions

▪ VOC via sales and service personnel while they interact with customers

▪ VOC from third party such as, card merchant points, vendors etc.

▪ VOC from annual research by third party research firm.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.13 Service Excellence: Service Excellence: Service Excellence: Service Excellence:

From Customer Satisfaction ToFrom Customer Satisfaction ToFrom Customer Satisfaction ToFrom Customer Satisfaction To Customer DelightCustomer DelightCustomer DelightCustomer Delight

Standard Chartered Bank maintains following mechanism in customer service excellence:

Making customer feel important.

Working fast & efficiently.

Service with smile.

Having adequate product knowledge.

Handling objections efficiently and courteously.

To conduct customer surveys to gather “Voice of the customer” and enable to gauge the

current level of satisfaction with service.

To assess present process capability and to measure key processes end –to-end from a

customer viewpoint.

To set up Quality Council in each country where service and quality initiatives will be

discussed and key measures monitored.

Establishing service quality training.

End Result: CREATING LOYAL CUSTOMERS.

Figure: Service Excellence(Source: Newsletter of SCB)

Service excellence

SALES

RETENTION



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

3.14 CCCCOMMUNITY INVESTMENT OF S.C.B.OMMUNITY INVESTMENT OF S.C.B.OMMUNITY INVESTMENT OF S.C.B.OMMUNITY INVESTMENT OF S.C.B. ----

BANGLADESHBANGLADESHBANGLADESHBANGLADESH

Standard Chartered B a n k a l w a ys wants to have a broader positive impact on the

communities in markets; the bank is committed globally to uphold high standards of

Corporate Social Responsibility. There are many ways to be a force for good; globally

as well as in Bangladesh.

Under the Project ‘Seeing is believing’, Standard Chartered

helps restore eyesight of the underprivileged. The fourth phase

of seeing believes – A New Vision aims to raise USD

20 million to develop comprehensive, sustainable eye care for 20 million people in less

advantaged areas of 20 cities across the world, including Dhaka. In Dhaka, they have

committed USD 1 million to Dhaka Urban Comprehensive Eye Care project that will serve

over 270,000 visually impaired people. Standard Chartered Bangladesh has built an

Operation Theatre and children’s Ward at Islamia Eye Hospital and provides for its

maintenance since 2003.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Through the programme ‘Living with HIV’ SCB

helps educate not only their staff but the youth in the

communities about HIV and its prevention. They

have organized eighteen seminars titled “Confronting AIDS Challenge in the 21st Century”

in different universities and cities to spread awareness about HIV /AIDS amongst the

younger generation in Bangladesh.

They have also focused their efforts in the areas of history, culture and art, seeking to make

a difference and surface little known events and artwork. Recent works have included

publications of books such as ‘Dhaka alias Jahangirnagar: 400 years’; ‘Street Traders

of Bangladesh’; ‘Ekush’; and “Rare Photographs of East Bengal 1880-1940.”



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Standard Chartered - The Daily Star “Celebrating Life” Contest is a platform for new

talents across the country to pursue their artistic and career goals in Film, Photography and

Lyrics.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

SCB also encourage development of youth through education scholarships and sports

sponsorships including ‘Governor Scholarship’ in partnership with Dhaka University

Economics Department Alumni Association (DUEDAA), Standard Chartered Young

Tigers U -16 National Cricket Tournament, Standard Chartered School

Chess Tournament and Standard Chartered National School Kabaddi Tournament.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

They also encourage all corporate bodies in Bangladesh to uphold high standards of Social

Responsibility. They recognize exemplary work in the field of CSR through Standard

Chartered - Financial Express Corporate Social Responsibility Award.

With a presence in Bangladesh that spans over 100 years they believe Standard

Chartered is very much a part of the heritage that make a partner in progress for the nation

and its people. Standard Chartered committed to be here for people, here for progress, and

here for the long run - Here for good.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

4.1 AN OVERVIEW OF BANGLADESH'S BANKING AN OVERVIEW OF BANGLADESH'S BANKING AN OVERVIEW OF BANGLADESH'S BANKING AN OVERVIEW OF BANGLADESH'S BANKING

ENVIRONMENTENVIRONMENTENVIRONMENTENVIRONMENT

The banking industry in Bangladesh is more than 600 years old. In 1970's Banking sector in

Bangladesh entered into new era when the entire commercial banks and financial institutions

were nationalized after the emergence of Bangladesh as an independent nation in1970's (except

foreign banks) with fixed lending and deposit rates. In 1980's Two NCB s were allowed under

private ownership. During this period government intervention and poor management resulted

in large debt. Default, under capitalization and decline profit.

4.2 ROLEROLEROLEROLE

Bangladesh as a member of third world countries with a disappointed literacy rate of 24%, vast

poverty range and peoples unconscious attitude toward savings and investment Bangladeshi

banking sector has great role to economic enhancement.

4.3 TOTAL BANKS TOTAL BANKS TOTAL BANKS TOTAL BANKS AND THEIR BRANCHESAND THEIR BRANCHESAND THEIR BRANCHESAND THEIR BRANCHES

The country’s central bank is Bangladesh Bank, which is a name of regulatory bank, controls

and monitors the banking industry. There are 4 Nationalized Commercial Banks with 3616

branches, 28 privatized banks with 1214 branches, 13 foreign banks with 32 branches and 4-

development financial institution with 1177 branches, 4 specialized banks in Bangladesh.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Currently the major financial institutions under the banking system include:

o Bangladesh Bank

o Commercial Bank

o Islamic Banks (for interest free Islamic banking in adherence to the shariah,

o Leasing Companies

o Finance Companies

o Merchant Banks

Generally, the commercial banks and finance companies provide a myriad of banking

products/facilities and services to cater to the needs of their customers. These include 24 hour

banking, home banking (Tele banking via use of modems and phones) and general banking and

service products. For customers’ convenience, such products are available throughout the bank

branches in Bangladesh.

However, the Bangladesh banking industry is characterized by the tight banking rules and

regulations set by Bangladesh Bank. All banks and financial Institutions (Fis) are highly

governed and controlled under the Banking Companies Act 1993, which lays out many

restrictions, besides other guidelines. Among the many regulations imposed, Bangladesh Bank

does not allow any FI to into bankruptcy or insolvency.

4.4 REGULATORY ENVIRONMENTREGULATORY ENVIRONMENTREGULATORY ENVIRONMENTREGULATORY ENVIRONMENT

Ministry of finance & Bangladesh Bank regulates the sector through monitory and fiscal

policies.

MINISTRY OF FINANCE

Approves budget of NCBs---Provide operational policy guidelines for NCBs---Appoints the

MDs and GMs of NCBs



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

BANGLADESH BANKS

Set guidelines for banks---Has the authority to issue licenses for new banks---BRPD regulates

deposits, advances, capital & reserves---DBOD looks after bank licensing & expansion. The

range of banking products and financial services is also limited in scope. Besides all local

banks are imposed with 5 percent Cash Reserve Requirement (CRR), which is non interest

bearing and 15 percent Statutory Liquidity Requirement (SLR). This has given rise to higher

cost of funds. With the liberalization of markets, competitive on banking products and financial

services seem to be more intense and competitive. In addition as banking products that can be

offered in Bangladesh are fairly homogeneous in nature due to the tight regulations imposed by

Bangladesh Bank. Competing through differentiating the range of products offered is often

difficult and not effective. Moreover, any innovative banking service launched is quickly

duplicated by other banks such as ATMs, telebanking, online (real time) computerization bank

branches etc. Hence, the key to establish a competitive edge in banking industry of Bangladesh

is to provide better customer service quality.

4.5 PROBLEMPROBLEMPROBLEMPROBLEMSSSS

Debt default--Intervention in credit allocation--Low profitability--Inadequate legal framework--

Distortion of interest rate structure--Low savings & investment

REFORM PROJECT

During 1991-1995 financial reform project was undertaken with the objective to:

♦ Assist government in monitoring policy reform

♦ Improve bank supervision & regulation

♦ Improve quality & level of training

♦ Computerization of Bangladesh Bank & NCBs

♦ Introduce modern banking techniques to NCBs



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

FACTS

The number of branches of all the

scheduled banks is 6,717.

SCB: 3,383 branches

DFI: 1,359 branches

PCB: 1,922 branches

FCB: 53 branches

Pubali Bank is the leading

private commercial bank

Standard Chartered Bank is the

largest foreign commercial bank.

FCB’s account for less than 10%

of total industry asset, compared

to PCB’s having 51%.

4.6 ANALYSIS ANALYSIS ANALYSIS ANALYSIS OF OF OF OF BANKING BANKING BANKING BANKING INDUSTRYINDUSTRYINDUSTRYINDUSTRY

Banking industry in Bangladesh is characterized as a highly competitive and regulated sector.

Market is reaching near saturation, with adequate banks already in operation, and upcoming

few more. Hence, the market competiveness is increasing by day. The competition is even

more fueled by deregulation of certain policies by the central bank, which allowed financial

institutions to pursue more aggressive market penetrating financial packages. The products

offered by financial institutions, now are more suitable for sophisticated and modern needs of

consumers and businesses.

Bangladesh Bank Annual report depicts four categories

of scheduled banks currently operating in the financial

sector:

�� State-owned Commercial Banks (SCBs),

�� Development Finance Institutions (DFIs),

�� Private Commercial Banks (PCBs)

�� Foreign Commercial Banks (FCBs)



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

PORTERS 5PORTERS 5PORTERS 5PORTERS 5

FORCESFORCESFORCESFORCES



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

4.7 PORTERS 5 FORCES ANALYSIS:PORTERS 5 FORCES ANALYSIS:PORTERS 5 FORCES ANALYSIS:PORTERS 5 FORCES ANALYSIS:

Micheal E. Porter’s well-known framework, known as the five forces model focuses forces that

shape competition within an industry. The stronger the five forces, the more limited is the

ability of established companies to raise market share and earn greater profits. The influence of

the five forces in the banking industry has been discussed below:

Porter’s 5 Forces in Banking Industry of Bangladesh:



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

FORCE 1:FORCE 1:FORCE 1:FORCE 1: Threat Threat Threat Threat oooof New Entf New Entf New Entf New Entrants rants rants rants

During the last 5 years, Bangladeshi Banking industry has undergone several changes in terms

of its competitiveness. Several new PCB has commenced their business along with Foreign

Banks, being attracted to the large and lucrative emerging economy of Bangladesh. Due to high

rising income and more inclination towards consumption based spending, several banks have

tried to capitalize over such consumer and business attitude. Private local banks such as Prime

Bank, Eastern Bank, DBBL and Dhaka Bank, have outperformed many of the state-owned

banks and are in par with the Foreign Banks. Among the foreign banks, Standard chartered,

Bank-Alfalah, Citi NA and Commercial Bank of Cylon is thriving the market since their

commencement.

However, strong and long presence of SCB in Bangladesh has allowed to the bank to create a

dynamic customer preference and brand loyalty, which has prevented much of the market share

being siphoned by the PCBs. Nevertheless, in order for SCB to sustain its competitive

advantage as First-Mover and high brand awareness, it needs to develop more innovative and

aggressive financial products that could keep competition further off-site.

Moreover, SCB has tremendous local knowledge and old partners in business and its network

(both in Bangladesh and especially in the global market) is excessively large for other banks to

compare. Thus, it will be exceptionally difficult for any new competitor to pose any serious

threat to SCB Bangladesh.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

FORCE 2:FORCE 2:FORCE 2:FORCE 2: Threats oThreats oThreats oThreats of Substitutesf Substitutesf Substitutesf Substitutes

Upcoming competition is being severely intensified as both domestic and foreign banks are

coming up with innovative product solutions to beat SCB at its own game. BRAC bank is

already considered a huge competitor of SCB as they growing at a phenomenal rate. Other

banks like EBL, DBBL are also offering competitive products. These banks are taking away

some market share from SCB. As the number of competition is growing the threat of substitutes

is also increasing.

Moreover, in an era defined by blurring differences between banking and non-banking financial

institutions, SCB will always need to be on the look-out for rivals emerging from a different

horizon that might seem distant at the beginning. Microfinance institution is one example of a

type of non-banking financial institution that has started eating up conventional banks’ share of

credit in the overall industry. Although SCB Bangladesh has not been affected by this as the

bank focuses on larger corporate clients (and has less services outside the capital city), other

non-banking institutions might come up posing serious threat to the bank.

FORCE 3:FORCE 3:FORCE 3:FORCE 3: Bargaining Power oBargaining Power oBargaining Power oBargaining Power of Clientsf Clientsf Clientsf Clients

The extent of bargaining power is different for the individual customers of personal banking

and corporate customers. Since, deposits made by individual consumer clients are insignificant,

compared to the amount of single deposit made by a corporation, consumers tend to have low-

zero bargaining power in terms of return negotiation. However, owing to the large balance of

corporate deposits, Corpoartions tend to enjoy more privilege form the banks. They are more

entitled to banks special rate while depositing and borrowing transaction takes place between

the organizations. Besides, wide variety of services and products which are offered by SCB is

not likely to be offered by domestic banks and thus customers get little choice when it comes to

special transaction on international par. Hence SCB continues to enjoy superior bargaining

power over its customers.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Force 4:Force 4:Force 4:Force 4: Bargaining Power of DepositorsBargaining Power of DepositorsBargaining Power of DepositorsBargaining Power of Depositors

Cliental and corporate depositors are considered to be the biggest supplier for a banking

institution. Their provided deposits are the source of fund that the bank reinvest in different

assets in form of Loans and Advances, Securities and Repos to earn profit and sustain the

business. The customers coming to SCB are able to afford the high charge rates applicable to

them compared to the nationalized banks. So the bargaining powers of depositors are extremely

high upon accumulation. Unless the bank can understand their needs, and offer them proper

value-added services for which the customers are paying fees, the depositing customers can

leave the bank, putting the bank in a financial insolvency.

Force 5:Force 5:Force 5:Force 5: Rivalry among Existing BanksRivalry among Existing BanksRivalry among Existing BanksRivalry among Existing Banks

For the last 5 years, intensive competition is prevailing among the banks to increase their

market share and drive out competition. Standard Chartered Bank became the giant with around

70% market share of the total foreign banks after successful acquisition of Grindlays and

AMEX Bank. Moreover, other foreign banks such as Citibank N.A. and Commercial Bank of

Ceylon are rapidly expanding their credit portfolio and thus can be serious competition for

SCB. Existing local banks are also aggressively marketing their products and offering attractive

lending and deposit rates, while at the same time opening up several valu-added services such

as SMS, Internet and Phone-banking which can grab customers. Until recently The City Bank

of Bangladesh has started offering American Express cards and products for exclusive

customers. Such assertive activity can harm SCB’s position (especially since SCB Bangladesh

does not yet have its own credit card) in the future unless the bank reacts proactively to these

competitors.

To sum-up the industry condition, financial sector is active more than ever and the competition

is being strengthened every year. It will be wise for SCB to start reacting and take action

against its market position, if it intends to keep its title as one of the market leaders in the

Financial Sector.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

SWOT

Analysis



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Corporate Identity.

Distinct Schedule.

Efficient Performance.

Empowered Work Force.

Equalization.

Management by Objective (MBO).

Modern Equipment and Technology.

Narrow Operating Span.

Lack of Marketing activities.

Conservative Product Offering.

Lack of client confidence.

Lack of Manpower.

Large and growing market.

Experienced Managerial Know-How.

Strategic Acquisitions.

Rise of e-banking.

Increasing number of third party

Outsource.

Strengthening Competition

Policy reforms

Changing preference of clients

Default Culture



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Strengths:Strengths:Strengths:Strengths:

A. Strong Corporate Identity: SCB is the leading provider of financial services

worldwide and it is one of the top ten multinationals currently operating in the world. With

its strong corporate image and identity, it can make better position in the mind of

customers. This image has helped SCB to grab the personal banking sector of Bangladesh

very rapidly.

B. Distinct Schedule: Everyone in SCB from the appraiser to the top management has to

work for the same schedule from a different aspect of the same goal, interfacing

simultaneously at all level. This allowed efficient transfer of knowledge among the

employees from top management.

C. Efficient Performance: SCB provides hassle free customer service to its client base

comparing to the other financial institutions of Bangladesh. Personalizes approach to the

needs of customers is its motto.

D. Empowered Work Force: The human resource of SCB is extremely well thought and

perfectly managed. The top management believed in empowerment, which makes SCB a

better place for the employees. The employees are not overpowered by authority, rather are

able to grow as the organization matures.

E. Equalization: At SCB, workshops are conducted periodically. On the workshops, all

people participate as equals, with new members free to openly challenge top managers.

This allows for stronger idea generation and employee empowerment.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

F. Management by Objective (MBO): SCB also has Management by Objectives (MBO)

everywhere. Each person has multiple objectives. All the employees must have to get the

approval of their bosses on what they are going to do. Later they review as to how well they

have performed their job with their management as well as in the peer group.

G. Modern Equipment and Technology: SCB owns the best banking and information

technology equipments in Bangladesh. Its ultra modern systems starting from terminal PCs

to HUBs are based on the international SCB group standards and are the latest. The

Hexagon product is one of the best examples in this context.

Subordinate Strengths

1. Strong Employee Boding and Belongingness: SCB employees are one of the major

assets of the company. The employees of SCB have a strong sense of commitment towards

organization and also feel proud and a sense of belonging towards SCB. The strong culture

of SCB is the main reason behind this strength.

2.Young Enthusiastic Workforce: The selection and recruitment of SCB emphasizes on

having the skilled graduates and postgraduates who have little or no work experience. This

type young and fresh workforce simulates the whole working environment of SCB, who

can be trained and mould to support SCB strategy with their best performance i.e. SCB

believes in Right Person at the Right Place.

3.No Communication Barriers: Human Resource Division has tried hard to avoid

communication barriers and structural bureaucracies. He little existence of authoritative

barriers among the different level of management stimulates a feeling of importance as their

work get priority over the position.

4.Spread out risks: SCB’s strong global presence helps it to spread risk and offers

significant economies of scale. So since the bank is not dependant on its operations on any

on economy, it means that if the need and situation arises, SCB Bangladesh can take funds

from other more profitable operational areas of SCB to expand rapidly and market its

products more aggressively to increase its hold in Bangladesh.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

WeaknessWeaknessWeaknessWeakness

1. Narrow Operating Span: SCB has a very narrow operation span in Bangladesh. It has

only few branches in Bangladesh. Various geographic segments are currently not availing

the services of SCB due to inconvenient branch location or absence of neighborhood

branches. The bank does not plan on expanding in upcoming months.

2. Absence of Strong Marketing Activities: SCB currently do not have any strong

marketing activities through mass media e.g. Television, radio or internet. The only

medium of transmission is through daily newspapers and bill boards. SCB currently does

not have any plans to expand their marketing activities except some consumer campaign

they hold. In a vast competitive market where every competitor is aiming to expand, SCB

lack of marketing interest might prove losing costly market share

3. Conservative Product Offering: Another major weakness of SCB Bangladesh is the

small range of products that are offered by the bank. Even today, the bank does not have

products such as debit card and international credit card. In today’s market, this can prove

costly to the bank as competition is becoming intense and other banks are aggressively

introducing new products to capture a larger chunk of the market.

4. Lack of Client Confidence: It is a widespread belief among Bangladeshi local consumers

that if they deposit their savings or lend from a foreign bank such as SCB, there will be

more ‘hidden charges’ imposed by the bank relative to a local bank, and thus the customer

will end up losing money. As long as this wrong belief persists, it will act as a hindrance to

the prospects of SCB Bangladesh.

5. Lack of human resource: One of the main weaknesses of SCB Bangladesh is its lack of

number of employees, particularly in the branches. In terms of the number of customers

served per customer service manager, the situation is much worse for a foreign bank such as

SCB Bangladesh rather than a local bank. The reason as to why this problem persists is not



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

the bank’s inability to hire more employees, but in reality it is the fact that SCB does not have

too many branches/offices and thus not much space to accommodate the required number of

employees.

Opportunity:Opportunity:Opportunity:Opportunity:

1. Growing customer-base: Bangladesh has a very rapidly increasing upper-middle class

and upper-class section of the community. SCB can take advantage of the increasing

consumer-spending in Bangladesh, thereby earning more profits in the country’s operations.

Besides growing consumer-spending, Bangladesh also maintains a very good investment

climate which is resulting in new businesses setting up and expansion of existing

businesses. SCB Bangladesh also can target these organizations to grow their client-base.

2. More experienced and managerial know-how: The top management team of SCB is

expert in banking activities. The operating policies established by them are unique and

unified. All the members of the team carry out their management roles exhaustively. They

equally contributed to SCB’s superior leadership, by carrying out their unique roles. They

worked well together, respecting each other’s abilities and arguing openly and without any

rancor when they disagree.

3. Acquisitions: SCB is one of the experts in acquiring various firms and organizations. In

Bangladesh it can also diversify quickly by acquiring various local banks and increase its

total operation in Bangladesh rapidly.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

4. Prospects of e-banking: With Bangladesh Bank recently relaxing regulations on online

banking transactions and allowing banks to provide enhanced e-banking services; this is a

big opportunity for banks all over the country to rapidly capture a good chunk of this

market. Perhaps with its strong internet backbone, SCB is in a better position than most

rivals to avail this opportunity.

5. More scope of outsourcing functions: Nowadays, several firms are opening up in

Bangladesh and banks can outsource some of their tasks to these firms. For example, banks

can now outsource tasks of their marketing functions to other firms that provide part-time

contractual employees for the banks, thereby contributing to lowered operational costs of

the banks. Call centre of banks is another common activity of banks which are now

outsourced in Bangladesh.

Threats:Threats:Threats:Threats:

1. Strengthening competition: The upcoming private local and multinational bank poses a

serious threat to the existing banking networks of SCB. It is expected that in the next few

years more commercial banks will emerge. If that happens the intensity of competition will

rise further and banks will have to develop strategies to compete against and win the battle

of banks.

2. Pricing and charges: Although it is a policy of SCB Bangladesh to impose higher

charges and pricing in order to maintain an image of prestige and brand, this policy might

have to halted here as Bangladesh Bank tries to promote lower costs for the banking



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

customers. Moreover, in an environment of intense competition, other multinational banks

such as Standard Chartered Bank might also lower their charges and then SCB will be in

deeper pressure to start charging less to their customers.

3. Changing preference of individuals: Due to Bangladesh Bank regulations capping the

interest rate on bank loans, banks such as SCB have also reduced the interest they pay on

different types of deposits in order to maintain a profitable spread. This has, in turn,

induced many individuals to invest their savings elsewhere rather than keep it in banks,

which might enable them to earn higher returns. The stock exchange is one very good

example where people nowadays prefer to invest their savings instead of depositing in

banks.

4. Default Culture: This is a major problem for SCB that it is very new organization in

Bangladesh, the problem of non-performing loans or default loans is very minimum or

insignificant. However, as the bank becomes older this problem will arise enormously and

the bank may find itself in a more threatening environment. Thus SCB has to remain

vigilant about this problem so that proactive strategies are taken to minimize this problem.

Although the percentage came down to 13.23% in 2007 from over 41% in 1999, still it is

much higher than the internationally accepted tolerable range and, thus, is a threat to our

banking sector.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

CHAPTER 5

PRODUCTS AND

SERVICES OF

SCB



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.0 PRODUCT & SERVICES OF S.C.B.PRODUCT & SERVICES OF S.C.B.PRODUCT & SERVICES OF S.C.B.PRODUCT & SERVICES OF S.C.B.

The products of Standard Chartered Bank can be classified under three headings:

Liability Products

Assets Products

Credit Card

Many other services and alternate channels also offered by SCB.

5.1 LIABILITY PRODUCTS OF STANDARD CHARTERED BANK

All kinds of accounts are called liability product. Those are mentioned below:

5.1.1 Savings Accounts:

The Savings Accounts are usually opened and operated by individuals to meet their future

contingencies and also to enjoy the convenience of easy accessibility of money kept in savings

account. Savings accounts are designed for the investment of the personal savings. Anyone

looking for an opportunity to build a sound saving base can avail Standard Charterer’s Savings

account, which includes the following benefits:

Free cheque-book, ATM card and phone-banking service

Account access from all their branches in Bangladesh

Opportunity to apply for- safe deposit locker facility, utility payment service

through ATM and any of their personal finance products.

A Savings Account can be opened by individuals, associations, trusts, clubs, charities, societies

and other non-trading associations.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Table 5.1: Product features of Saving Account

Opening Amount BDT 200,000

Minimum Balance Requirement BDT 200,000

Tax 10% of Interest earned

Balance below BDT 200,000 Interest Rate 0.00%

Balance BDT 200,000-1,000,000 Interest Rate 2.75% half yearly

Balance Above BDT 1,000,000 Interest Rate 3.00% half yearly

5.1.2 Extra Value Savings Account (EVSA)

Extra Value Savings Account (EVSA) is a high powered savings account targeted to people

with a higher disposable income. It has all the features and benefits of the savings account and

a few extra benefits available for EVSA.The special benefits in EVSA are:

Maximum ATM withdrawal Limit BDT 40,000 in a single day

Personal Injury Insurance Coverage for 1 year up to BDT 1,000,000

Discount on locker charge

Discounted rate for issuing Pay Orders, Demand Drafts, Traveller’s Cheques &

Foreign Currency



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Table 5.2: Product features of Extra Value Saving Account


Minimum Balance Requirement Above BDT 200,000

Maximum Insurance Coverage BDT 1,000,000


Balance BDT 200,000-1,000,000 Interest Rate 2.75% half yearly

Balance Above BDT 1,000,000 Interest Rate 3.00% half yearly

5.1.3 VIP Savings Account (VIPSA)

This account is introduced recently in SCB. This account targets people with a high income. Its

interest rate is also high. Interest is given on month end balance.

Table 5.3: Product Features of VIP Saving Account



Interest Rate Max 5% monthly

ATM Withdrawal BDT 60,000 per day



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.4 Access Account

Access Account is a variant of the Savings Account. Standard Chartered Bank in its continuous

effort to bring more convenience to its customers started this account targeting salaried

employees, students and housewives. Like savings account it has the following attributes:

Access is an account that gives interest on the deposit kept in it

This account is for individuals only

One can put his money in this account and earn interest on the idle funds and also

use the funds when he needs it.

Access is different from Savings in the following aspects

There is no cheque book in this account.

All the transaction done through ATM/Debit Card.

No minimum balance fee and other minimum balance related charges.

Annual ATM fee of only 150+VAT

Opening balance is BDT 20,000

This account is ideally suited for salaried executives, housewives and students. People who

may not be able to make time in their busy daily schedule to come to the bank during

transaction hours are prime targets for this account. Organizations cannot open this account.

Table 5.4: Product features of Access Account


Minimum Balance Required to

earn interest

BDT 100,000


Interest Rate 2.75%-3.00% half yearly

Chque Book Facility No



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.5 Freedom Account:

It is a type of saving account. Bangladeshi individuals with age limit between 18-40 years old

can open this account.

Table 5.5: Product features of the Freedom Account


Minimum Balance Required to

earn interest

BDT 25,000


Interest Rate 5%

5.1.6 Graduate Account:

Graduate Account is an interest bearing Savings Account for ongoing graduate and post-

graduate university / college students, who are at least 18 years old. The account will have

Debit Card but no chequebook facility. SCB Graduate account holders enjoy automatic

insurance coverage of BDT 1.0 lac (automatic built in feature) from the day of opening account

with us, which is paid by the Bank as a special product benefit.

Table 5.6: Product Features of Graduate Account



Interest Rate 2% calculated daily but

credited half yearly

ATM Withdrawal BDT 5,000 per day



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.7 Current Account:

Current account is an account on which cheques are drawn and to which credits are paid. It is a

non-interest bearing a/c, it is also called checking account. Current Accounts suit the

requirement of Businessmen, Joint stock companies, Institutions, Public Authorities etc. As

they require numerous transactions on every working day, the banks do not pay interest on

current deposit. Usually the loans and advances are disbursed through current accounts.

Current account is suitable for:

Individuals: Resident Bangladeshis, Non-resident Bangladeshis, Foreign Nationals residing

in Bangladesh.

Organizations: Sole Proprietorships, Registered Partnerships, Unregistered Partnerships,

Public Limited Companies, Private Limited Companies, Clubs, Associations, Societies,

Charities, Nationalized Organizations, Autonomous Bodies, NGOs.

Table 5.7: Product features of Current Account



Tax No tax is applicable

Interest rate No interest is paid

Cheque Book Yes



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.8 Islamic Current Account:

Current account is an account on which cheques are drawn and to which credits are paid. It is a

non interest bearing a/c, it is also called checking account. The Islamic Current Account has the

following features:

Compliance with Shariah:

The Standard Chartered Group has an International team of professionals with Islamic financial

expertise dedicated to developing Shariah-approved financial solutions. The process of product

development and Shariah review ensures that its Shariah Complaint Products are with in the

guidelines for finance that are prescribed by the Islamic Law. There are no interest related

charges on Islamic Account. The product features of the Islamic Current Account are:

Table 5.8: Product features of Islamic Current Account



Tax No tax is applicable

Interest rate No interest is paid

Cheque Book Yes

The facilities of the account are:

24- hours ATM services across the country.

By subscribing SMS banking, account holder can also set account information through

SMS.

Phone Banking at Standard Chartered Bank’s 24-hour call center.

Customer can pay bills from their Islamic Current Account without actually coming to

the branches. Bills will be automatically paid by filling up an instruction form.

The Standard Chartered Bank’s Islamic Current Account is all about flexibility and

convenience. Customer can make withdrawals & deposits without any restrictions.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.9 VIP Current Account (VIPCA):

This product is recently introduced in the SCB. It is an interest bearing account. Interest is paid

on monthly end balance.

Table 5.9: Product features of VIP Current Account



Interest rate 2-3% Monthly

ATM withdrawal BDT 60,000 per day

Foreign Currency (FCY)Current Account:

A Foreign Currency Current Account is a non-interest bearing account where the fund is not

the local currency but a currency of another country (US Dollar, GB Pound).

This type of account can be opened by the followings:

Bangladesh nationals residing abroad.

Foreign nationals residing in Bangladesh.

Foreign firms registered abroad and operating in Bangladesh.

Foreign missions, Expatriate employees of foreign missions or companies.

Features of the account:

These accounts can be opened with “Zero balance”, since, most of these account

will receive inward remittance from abroad.

Chequebook is issued in this account. It is the only FCY account where chequebook

is issued.

Customer cannot get interest in these accounts. Banks can pay interest only the

deposits of FCY that is in the form of term deposits and must be for at least 30 days.

No, there are no taxes on current account as long as the customer gets no interest. If

customer gets interest, then he/she will have to pay 10% tax on the earned interest.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1. 10 Resident Foreign Currency Deposit (RFCD) Account:

RFCD is an interest bearing foreign currency account. The funds in this account is kept as time

deposit. These accounts can be opened by residents of Bangladesh with Foreign Currency

brought in by the account holder from travel abroad.

Customer Eligibility: People who are residents of Bangladesh can open this account upon their

return from abroad. Since it is an interest bearing account, then non-Bangladeshis cannot open

this account.

Restrictions for operating a RFCD account

▪ Funds brought in from travel abroad can only be credited to these accounts.

▪ Export proceeds and funds from business deals generating from within Bangladesh

cannot be put into these accounts.

▪ Deposits over USD 5000 or equivalent Foreign Currency have to have Form FMJ when

crediting to the account.

▪ When Foreign exchanges are credited into these accounts, the depositor must submit a

declaration saying when he returned from abroad and that the fund was not a result of

any business deal generated in Bangladesh or from export proceeds.

Table 5.10: Features of the RFCD Account

Opening Amount USD 1000 or GBP 500 equivalent

currency

Minimum Balance Requirement USD 1000 or GBP 500 equivalent

currency

Interest rate Between 1.04 -1.71%



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.11 Non-Resident Foreign Currency Deposit (NFCD) Account:

NFCD is an interest bearing foreign currency account. This account can be opened only by

non-resident Bangladeshis (NRB). The special attributes of NFCD account:

It is an interest bearing foreign currency account.

Interest is paid in foreign currency.

Interest in these account are Tax-free.

Interest is payable at maturity.

Customer can keep the fund in this account for more than 1 month; like 3, 6 & 12

months periods.

People with dual nationality can also open this account.

Foreign nationals, companies, firms, banks, financial institutions and EPZ units can

open NFCD accounts.

Minimum Opening Balance is USD 1000 or GBP 500 or equivalent currency for

individuals.

Funds, with interest, in these accounts can be freely repatriated abroad.

There are no fees and charges in NFCD account.

Short Term Deposit (STD) Accounts or Call Deposit:

Short-Term Deposit (STD) is a deposit vehicle, which is:

Fixed Interest bearing account

The deposit is repayable at a fixed date or at demand

It is a non-transactional account. This account is suitable for those individuals and

organizations that have a substantial amount of idle funds but those funds can be called into use

at any time.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Table 5.11: Product features of STD Account



Interest rate Between 2% and 3.75%

Chequebook/Debit Card No

Tax 10% on the interest

5.1.12 Fixed Deposit (FD) Account:

Fixed Deposit Account is the savings vehicle where customers keep their money:

A fixed amount

For a Fixed of Period

For a fixed rate of interest.

This rate of interest is usually higher than the rate offered in Savings Accounts. The features of

the fixed deposit account are as follows:

The minimum amount required to open an FD is BDT 100,000

FD can be kept for 1 month, 3 months, 6 months, 12 months/1year, 2 years &

above.

Interest rate on the FD is dependent on the time and the amount of the FD.

Customers will not get any chequebook or any ATM card for FD.

Automatically renewable.

Interest is payable at maturity.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.13 Monthly Savings Scheme (MSS)

There are currently 3 monthly savings schemes. They are:

Marriage savings scheme

Education savings scheme

Rainy day savings scheme

Customers will buy units of these schemes. First they will make an initial deposit after that they

will deposit a fixed sum every month based on the units they buy. Interest on all deposits will

be calculated daily and will be added to the deposit at the end of the month. The scheme is for a

fixed period. At the end of the period customers will get a fixed amount back. The facility is

available in any of the above-mentioned three schemes for 3-year, 5-year or 10-year term only.

To buy one unit of education, marriage & rainy day scheme customer need to deposit Tk.

10,000 at the beginning and a monthly deposit of Tk. 1000 till the maturity of the scheme.

Benefits:

SECURED: Monthly Savings Scheme offers customers an alternative to eliminate the

uncertainties from their beloved children's life in case of their untimely death. If customers

feel worried about their education related expenses, marriage or other contingency needs in

their absence, SCB’s Monthly Savings Schemes offer such customer perfect solution.

SURE RETURN: Insurance Facility of Savings Scheme offers sure return to customer’s

children or anyone selected by him as the nominee in case of unfortunate death before the

maturity of the scheme. Customer’s nominee will receive the total amount (equal to the

proposed Maturity Value for any particular scheme) no matter how much customer has

paid.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.1.14 Personal Banking Plan (Excel Banking)

Excel Banking is an exclusive service of Wealth Management, designed to meet our customers

evolving banking needs. Personal attention, preferential pricing and fast track services are just a

few of the distinctive features that ensure our customers get the best out of their time and

money.

Objective

▪ Ensure retention, deepening and upgrading of the existing middle market customer

base, as well as new acquisitions.

▪ Act as a service differentiator within the core segment of customers across all products -

Liabilities, Cards, PL, Auto and BFS.

Membership

Membership to Excel Banking is complementary and offered to Standard Chartered customers

who maintain a relationship value between BDT 1.5 million and BDT 2.5 million across

various Wealth Management products.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

The facilities of Excel Banking are:

▪ Free personalized Excel chequebook

▪ Free Cashier’s Orders up to BDT 50,000

▪ Higher ATM/Debit Card withdrawal limit of up to BDT 40,000 per day

▪ Commission-free Foreign Currency Endorsement and issuance of Travelers Cheques

▪ 50% waiver on Debit Card Annual Fee for the first time

▪ 100% waiver on online (intercity) transactions

▪ 50% waiver on Processing Fee for OD limit

▪ 33% waiver on Locker Service Charge

▪ Invitation to the selected SCB sponsored events.

▪ Modern-banking services like Evening Banking Services, 24 hour call center, Internet

Banking, SMS Banking, Auto Bills Pay facilities, 24 hour Bills pay Centres, etc.

without paying any additional charges.

5.1.15 Priority Banking

Customers having semi-annually BDT 3.5 million average balances in their deposit account

will be eligible for Priority Banking Customers. Standard Chartered offers such customer

special privileges like:

Locker facilities at branches of Standard Chartered with preferential rates.

Specially designed Priority Card that lets priority customer withdraw up to BDT 50k

from any of Standard Chartered 25 ATMs located in 5 many cities.

The following charge free banking convenience:



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Student files

TCs/Foreign exchange issue

Solvency/ Balance confirmation certificate

P.O.s & D.D.s (on SCB location) upto Tk

Instant fund transfer between cities and much more location.

Customer can also take advantage of:

A host of exclusive privileges and discounts offered at various retail outlets on food

& beverages, apparels, fitness & other lifestyle products are available to priority

customer just by showing Priority Banking Card.

Complementary access to the Balaka Lounge at Zia International Airport and much

more places.

Priority banking is especially designed for people who appreciate the finer things in life.

Priority customers will be able to satisfy all banking needs in an ambience of absolute comfort,

privacy & luxury.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.2 ASSET PRODUCTS OF STANDARD CHARTERED BANK

All types of loans and advances are assets products.

5.2.1 Conventional Loan:

5.2.1.1 Personal Loan

It is a loan offered to individuals for some given purposes and is to be repaid by Equal Monthly

Installments (EMI). Salaried employees of MNCs, Large Local Corporate bodies, NGO's,

International aid agencies, UN bodies, Airlines are eligible for this type of loan. Government

employees, businessmen and self-employed professionals can also get this loan. Since no

security is taken, the income of the applicant is given prime consideration.

The purposes for which Personal Loan can be availed are very particular. They are:

▪ House renovation

▪ Marriages in the family·

▪ Advance rental payments·

▪ Hospitalization or other emergency medical needs·

▪ Trips abroad·

▪ Higher professional or tertiary education/ professional training.

▪ Purchase of Miscellaneous household appliances.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Table 5.12: Features of Personal Loan

Loan Installment 12, 24, 36, 48, 60 Minimum Loan Amount BDT 60,000 Maximum Loan Amount 1,000,000 Interest Rate 13%-19% Processing Fee BDT 1000+15% VAT for loans equals to or

above BDT 100,000/= 2% of the loan approval amount + 15% VAT for loans above BDT 100,000/=

5.2.1.2 Auto Loan:

Auto Loan is a fixed loan facility given for the purpose of purchasing an automobile. The loan

is secured by the automobile/vehicle. The Auto Loan is targeted for both

Salaried Executives

Businessman/Self-Employed Professionals

Eligibility Criteria for Salaried Executive:

▪ Minimum Age 23 yrs.

▪ Maximum Age 65 yrs but the duration of the loan must be end before his retirement age

▪ Minimum Total monthly income should be BDT 25,000.

▪ Nationality Must be Bangladeshi.

▪ Work experience Minimum 12 month’s continuous employment.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Eligibility criteria for Self-employed Professionals and Businessperson:

▪ Minimum Age 25 yrs

▪ Maximum Age 65 yrs

▪ Minimum Total monthly income should be BDT 25,000

▪ Nationality must be Bangladeshi

▪ Work experience 3-year of business age.

Table 5.13: Loan Features of Auto Loan

Loan Installment 12, 24, 36, 48, 60 Minimum Loan Amount BDT 200,000 Maximum Loan Amount BDT 2,000,000 Interest Rate 15%-17%, 13% if 100% secured Processing Fee For loan 200,000- 400,000, BDT 5,000

For loan 400,000- 1,000,000 BDT 7,500 1,000,000 and above 1% of the loan amount .

Customers can get Auto Loan to buy reconditioned cars. The age of the car must not be more

than 10 years at the end of the loan period. When customer taking the loan for “reconditioned”

cars, it is important to be sure about of the brand and the manufacturing year of the car.

5.2.1.3 Flexi Loan:

Flexi Loan is a partially secured loan facility given for any legitimate purpose. The loan can be

either partially secured or fully secured. The security for the loan should be in a readily

encashable form.Flexi Loan is targeted for employees of reputed Local Corporates,

Multinationals, NGOs, private universities, International Aid Agencies, UN bodies and

Airlines, Government Employees, Self-employed Professionals (Doctors, Engineers, Chartered

Accountants and Architects) and Businessman.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Table 5.14: Features of Flexi Loan

Loan Installment BDT 100,000- BDT 500,000 36 Installments

BDT 500,000- BDT 1,000,000 60 Installments

Minimum Loan Amount BDT 100,000

Maximum Loan Amount BDT 1,000,000

Interest Rate 13%-18% based on readily encashable security

Processing Fee For loan upto BDT 100,000/=, BDT 1000/=

For loan above BDT 100,000/=, 2% of the approved

amount

The purposes for which Flexi Loan can be availed are very particular. They are:

House renovation

Marriages in the family

Advance rental payments

Hospitalization or other emergency medical needs



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Trips abroad

Higher professional or tertiary education/ professional training

Purchase of Miscellaneous household appliances.

Flexi Loan cannot be used for business purposes like working capital and buying industrial

machinery. But doctors, architects, CAs, engineers who have private practices can use this loan

to buy their office machines, office equipments /accessories or office renovation.

Eligibility Criteria:

▪ Minimum Age: 23 yrs.

▪ Maximum Age: 60 years

▪ Minimum Total Monthly Income: 12,000 Taka.

▪ Location: Must live in a city where SCB has a branch.

▪ Telephone: Must have either a personal mobile phone or a phone in residence.

▪ Nationality: Bangladeshi.

▪ For salaried person income is assessed through salary certificate and bank statement.

� SCB A/C holders have to provide latest 6 month's statement.

� Other Bank A/C holders have to provide latest 12 month's statement.

▪ For businessperson income is assessed through tax returns and bank statement.

� SCB A/C holders have to provide latest 12 months’ statement.

� Other Bank A/C holders have to provide latest 12 months’ statement.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.2.1.4 Business Installment Loan:

BIL is a partially secured loan facility given to any business concern for any legitimate

purpose. The security for the loan must be in a readily encashable form. The loan amount is

minimum BDT 12 lakh and maximum BDT 50 lakh. It is one of the oldest forms of banking

products, where the bank lends the customer a principal fund and the customer pays off the

loan (Principal + Interest) periodically (i.e. monthly). The target markets for this loan are:

Small and Medium Enterprises in any sector other than the restrictions and exclusions

outlined in the Product Development Document, and qualified by customer selection

criteria.

Professionals, for example, doctors, lawyers, teachers, etc.

Customer Eligibility:

� Age of business has to be 3 years or more.

� Business must have own / rented operating premises for alt least 2 years.

� Annual sales turnover has to be between BDT 60 lakh and BDT 60 crore.

Consequently, annual pre-tax income has to be FBT 6 lakh.

BIL can be offered to the customers for the following purposes:

▪ Long term working capital finance

▪ Asset finance (plant & machinery)

▪ Business Expansion

▪ Office premises renovation



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.2.1.5 Cash Line:

Cash Line is a fully cash secured lending facility. It is intended to meet the emergency cash

needs of the customer without unlocking his long-term investments. Fully cash secured means

that customers can get this facility by pledging / liening a security that is either cash or can be

very easily converted to cash. The securities that SCB considers can be easily encashed are ICB

units, Wage Earners Development Bond (WEDB) and Fixed Deposit Account of SCB.

To this end, there are 2 basic types of Cash Line

a) Overdraft,

b) Fixed Loan.

Cash line Overdraft:

It is a secured overdraft facility. The limit of the facility is 80% to 90% of the security value

pledged to SCB.

Cash Line Fixed Loan:

It is an installment loan payable in monthly installment.

Customer get cash line for any of the following purposes:

House renovation

Purchase of Personal Computer

Marriage in the family

Purchase of refrigerator

Advance rental payment

Purchase of furniture

Trips abroad

Office renovations

Hospitalization or other emergency medical needs



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Higher professional or tertiary education/professional training

Purchase of office equipment and accessories

Purchase of miscellaneous household appliance.

Table 5.15: Loan Features of Cash Line

Loan Installment Minimum 12 months & Maximum 60 months

Minimum Loan Amount BDT 80,000

Maximum Loan Amount BDT 5,000,000

Interest Rate Overdraft – 7.75%-12%

Installment Loan – 9%-13%

Processing Fee 1% of approved loan amount or BDT 2000,

whichever is higher.

5.2.1.6 Mortgage Loan

Everyone has dreams of a sweet home. SCB helps make his dream come true by introducing

Mortgage the best home loan. There are four types of Mortgage loan customer considering their

profession and source of income. Those are: Salaries person, Self-employed professional,

Businessmen and Landlord. SCB offers the following products:

Home Loan: Purchase dwelling for residence purpose.

Home Credit: Purchase Subsequent properties for investment.

Life Style Loan (LSL): Meet some urgent daily life expense.

Take Over (TO): Transfer loan from current institution to SCB.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Table 5.16: Loan Features

Minimum Tenure 36 Months

Maximum Tenure Salaried Business Self-emp Landlord

HL 180M 144M 180M 180M

HC 120M 120M 120M 120M

LSL 120M 120M 120M 120M

Minimum Loan Amount BDT 500,000/=

Maximum Loan Amount BDT 6,000,000/=

Interest Rate HL 13.50%, LSL 14.50%

Minimum Income BDT 25,000 & BDT 35,000 for salaried &

businessman respectively and BDT 35,000 for

self-employed person.

5.2.1.7 Islamic Loan

Standard Chartered is introducing Islamic Personal Finance in Bangladesh for purchase of

consumers’ durables with the convenience and flexibility to suit their needs. Islamic Personal

Finance is a Shariah Compliant financing opportunity. It enables customers to finance durables

and services in a Shariah Compliant manner.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Features:

Complaint with Shariah: Islamic Personal Finance has been developed in consultation with &

approved by the SCB Islamic Shariah Supervisory Committee which ensures that SCB’s

Shariah compliant Products are free of interest & with the guidelines for commerce, finance &

investment that are prescribed by the Shariah (Islamic Law).

Islamic Personal Finance under Murabaha mode: Islamic Personal Finance is designed

according to the rules of Murabaha financing, an Islamic financial tool, which allows party A to

purchase assets/goods from party B, pay for the goods in deferred payments. The condition is

that party A should own the goods at the time of sale. The price of the assets/goods should be

fixed at the time of sale & should not change subsequently.

Customers can purchase durables & services from SCB at a fixed price. The customer can pay

for the price of the durables & services in equal monthly installments. SCB will first purchase

& services itself & then sell it to customers at a price, which includes a profit.

No cash security required: There is no cash collateral requirement to obtain this finance. It

means there is no requirement for submitting fixed deposit to Bank as security. Few documents

from employer or guarantee from a reputed person (as defined by the bank) would suffice.

There are types of loan under Islamic Finance:

1) Islamic Personal Finance

2) Islamic Auto Finance

Islamic Personal Finance

It is a finance offered to individuals for some given purposes and is to be repaid by Equal

Monthly Installment (EMI). Salaried employees of MNCs, Large Local Corporate bodies,

NGO's, International aid agencies, UN bodies, Airlines. Government employees, businessman



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

and self-employed professionals can get this loan. Since no security is taken, the income of the

applicant is given prime consideration.

The purposes for which IPF can be availed are very particular. They are:

House Renovation

Purchase of Personal Computer, refrigerator, audio-video equipment or furniture

Marriage in the family

Advance rental payments

Hospitalization or others emergency medical needs.

Trips abroad

Higher professional or tertiary education/ or professional training

Purchase of miscellaneous household appliances

Table 5.17: Loan Features of the IPF




Interest Rate 17.00%

Processing Fee 1% of finance Approved Amount or BDT 1,000,

whichever is higher.

Income BDT 8500-BDT 12000

Islamic Auto Finance:

Auto finance is a fixed loan facility given for the purpose of purchasing an automobile. The

loan is secured by the automobile/vehicle. The auto loan targeted is for both:

Salaried Executives

Businessman or self-employed professional



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

The product has been structured in the following manner:-

� The bank will enter in to a joint participation arrangement to invest in the vehicle on the

basis of Diminishing Musharaka.

� The bank will provide the larger share of the purchase price of the vehicle.

� The bank will rent out / allow usage of its share of the vehicle to the customer. The

customer will agree to make monthly payments for the use of the vehicle.

� The customers will also make regular scheduled payments in the participation to increase

their equity in the vehicle. Thus with each payment the ownership of the customers in the

partnership grows increasing their share of the vehicle.

� Once the customer has paid in full, the customer will have free and clear title to the

vehicle.

Table 5.18: Loan Features of the Auto Loan




Interest Rate 13.00%

Processing Fee For loan BDT 200,000-400,000 is BDT 5000

For loan BDT 400,000-1,000,000 is BDT 7,500

For loan above BDT 1,000,000 is BDT 10,000

Income BDT 25,000 for both salaried person &

businessman/self-employed person



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.3 CREDIT CARD

A Credit Card is a piece of plastic used for purchasing goods & services and for obtaining cash

disbursements on credit terms. It is unsecured credit i.e. credit without collateral or securities.

Each cardholder is assigned a revolving credit limit by the issuing financial institution.

Cardholders can purchase goods/services upto the credit limit and can re-use the credit facility

upon repayment. Credit Card allows partial payments for purchases, but charges interest on the

amount owed. Interest rates are traditionally higher than those charged on consumer loans.

5.3.1 History of Credit Card

The use of Plastic Money originated in the United States during the 1920s, when individual

companies, such as hotel chains and oil companies, began issuing them to customers for

purchases made at those businesses. This use increased significantly after World War II. In

1951, Diners Club issued the first Charge Card to 200 customers who could use it at 27

restaurants in New York. With this system, the Credit Card company charged cardholders an

annual fee and billed them on a monthly or yearly basis.

Later in the late ‘50s, the Credit Card concept emerged where the bank credits the account of

the merchant as sales slips are received and assembles charges to be billed to the cardholder at

the end of the billing period. The cardholder, in turn, pays the bank either the entire balance or

in monthly installments with interest. The first Credit Card ‘BankAmericard’ was issued by

Bank of America in late 1958 in California, USA. This system was licensed in other states

starting in 1966, and was renamed as VISA in 1976. At the same time, three different groups of

banks that were not franchisees of Bank of America began activities that would later merge to

become today’s Master Card International.

In 1978 the MasterCard International and VISA International organizations agreed to a concept

of duality, in other words, banks could honor and issue both Credit Cards.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.3.2 Key Benefits of Standard Chartered Credit Card

Wide Acceptance: Standard Chartered Bank (SCB) issues both VISA and MasterCard

Credit Cards, the two renowned Credit Card brands. Standard Chartered Taka Credit cards are

accepted at more than 4500 outlets across Bangladesh. SCB International Visa Credit Card is a

globally accepted Credit Card welcomed at all locations displaying the Visa logo. The card can

be used at over 18 million establishments in more than 150 countries around the world and at

over 3,000 merchant outlets in Bangladesh.

Easy Repayment Facility: Standard Chartered Credit Cardholders have the flexibility to

make payment of as little as 5% of the outstanding balance per month and carry forward the

rest of the balance.

Supplementary Card: Standard chartered Credit Cardholder can enjoy the convenience of

having supplementary cards for cardholders’ spouse, children over 18 years of age or any

family members or friends. The primary cardholder can set a spending limit for the

supplementary card which limits the maximum amount that the supplementary cardholder can

spend in one billing cycle.

Cash Advance Facility: SCB Credit Cardholders can get instant cash advance up to 50% of

card limit from any of the SCB ATMs, thus having access to cash 24 hours a day. Besides, cash

can also be obtained from branches during transaction hours.

All Accident Insurance coverage: SCB Taka (both primary & supplementary) Credit

Cardholders are automatically enrolled into All Accident Insurance Coverage. Silver

cardholder are insured for BDT 100,000, Gold Cardholders are Covered for BDT 500,000 and

Platinum Cardholders are covered for BDT 1,000,000.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

InstaBuys: This exclusive feature allows SCB Taka Credit Cardholders to enjoy installment

loan facility on their Credit Card at an interest rate of as low as 16.95%. Under this plan,

Cardholders can transfer any purchase greater than BDT 5000/- into installment loan and repay

in Equal Monthly Instalments (EMI).

Rewards Program: Under this plan, SCB Taka cardholders are rewarded for using their

cards at merchant outlets. For every 50 Taka spent, cardholders earn 1 treasure point, which

keeps accumulating as long as the card relationship is continued. Against this treasure point

SCB offer a wide variety o gift to the cardholder.

Auto Bills pay: This exclusive feature allows SCB Credit Cardholders to pay their monthly

utility bills through Credit Card through a standing instruction. Cardholders can avail this

facility to pay their monthly Mobile Phone bills, cable TV bills, and electricity bills.

Free Access at Balaka Business Class Lounge: SCB Gold Credit Cardholders and

their immediate family members have complimentary access to the Balaka Business Class

Lounge at Zia International Airport.

5.3.3 Standard Chartered International VISA Credit Card

The International VISA Credit Card from Standard Chartered comes with a winning

combination of value-packed features and benefits. It simplifies customer travel and eliminates

the need to carry cash. Whether traveling on business or taking a holiday, customers just relax

and let Standard Chartered VISA Credit Card take care of everything.

5.3.4 Platinum Card

Standard Chartered Platinum Master Card offers the

privilege of having a line of credit that reflects customer’s

achievement and spending power. With this card, he

enjoys a very high credit line starting from Tk. 4,00,000 to



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

meet all his spending requirements anytime, anywhere around Bangladesh. Customers can

withdraw cash upto 50% of his credit limit from any of Standard Chartered branches during

transaction hours. Besides, customer can also withdraw cash upto Tk.50, 000 per day from any

of the Standard Chartered Bank ATMs using platinum Master Card.

5.3.5 Standard Chartered Gift Card

Standard Chartered believes that customers are unique in style and taste. SCB also know how

important it is to get it absolutely right when it comes to buying gifts for someone special. Now

with Standard Chartered Gift Card, customers quest for the perfect gift is over.

Convenient: Customer can choose a Standard Chartered Gift Card as gift; which he/she can

load-up with the amount of choice. As this is a Visa Card, the recipient has the option of using

this Card to buy his/her product of choice from outlets across the country that accepts Visa

Cards electronically. The recipient can also withdraw Cash from the ATMs any time of the day.

Flexible: Based on requirement, customer can load-up Gift Card for any amount ranging from

Tk.1, 000 to Tk.100, 000; while paying only a nominal issuing fee. Moreover, customer can

pay for the Gift Card through Cash or his/ her Standard Chartered Credit Card / Account.

Safe: Even if Gift Card is lost or stolen, customer can easily get a replacement card by

contacting Standard Chartered’s 24-hour Call Centre.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.4 SERVICES AND ALTERNATE CHANNEL OFFERED BY S.C.B.

5.4.1 STATE –OF THE ART 24 –HOUR CALL CENTRE

A call centre is a central place where customer/non-customer calls are handled by an

organization, usually with some amount of computer automation. Typically, a call centre has

the ability to handle a considerable volume of calls at the same time, to screen calls and

forward them to someone qualified to handle them.

Objective: To provide cost effective alternate delivery channels to customers in order to attain

service excellence in terms of:

24 / 7 One window service

Convenience & Easy accessibility

Quality Responsiveness

Technology based solution

Free of charge

Customer can contact with Standard Chartered’s 24-hour call centre for account services

related requests & get 50% off on processing fee. Customers can now obtain the following

special account services at half the price by simply calling 24-hour Call Centre:

Lost ATM Card Replacement

Duplicate Statements

Pay Order/ Demand Draft (BDT only)

Various Certificates

Both financial and non-financial services can be get through call center.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

FINANCIAL TRANSACTION:

Fund transfer within same master & local currency

Credit Card Bill payment

Utility Bill Payment (GrameenPhone, Aktel, Citycell, Sheba & Prisma Digital)

Transfer from Credit Card to Bank Account/cash advance

NON-FINANCIAL TRANSACTION

Balance inquiry

Transaction Details

Duplicate Statement request

Chequebook request

Online TIN generation

Currency deposit rates(USD, GBP, Euro, Yen, AUD & CAD)

5.4.2 I-BANKING

iBanking is a simple, hassle-free and secure internet banking service available to all Standard

Chartered Bank customers in Bangladesh . Standard Chartered Bank’s Internet Banking service

is the fast and easy answer to the financial management needs of it’s customers, allowing them

to bank from wherever they are, whenever they desire, in total security and confidentiality.

Services offered by I-Banking

Account Service: View relationship with the Bank at a glance, check account balance,

view and download statements, order statements & chequebooks.

Fund Transfer: Transfer funds between own Standard Chartered Bank accounts.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Standing Orders: Request the set –up standing orders.

Cheque Status: Check the status of cheques issued from accounts.

Utility Bill Payments: Pay utility bills online.

Credit Card Payments: Pay from the account to card, both of which should be linked

with i Banking.

Credit Card Services: View card statement, check the card balance, and apply of a credit

limit increase.

Loan Services: View loan type and amount, outstanding balance & overdue amount.

Personal Information: Change existing password.

Market Watch: Get updated on foreign exchange rates.

5.4.3 SMS BANKING

SCB is the first and only Bank to offer SMS banking services to its customers.

PUSH Service: Cardholders can receive a mini-

statement reflecting Minimum Amount Due,

Total Outstanding Balance and the payment due

date. This is sent to the cardholders on their

billing date.

PULL Service: Cardholders can inquire about their Credit Card balance through PULL service.

To avail PULL service, cardholders will have to write <CARD + PIN> as a message and send

it to 2727. The outstanding balance of the card account as of previous working day will be

instantly sent to the cardholder through SMS.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.4.4 AUTO BILLS PAY

Auto Bills pay is a simple and convenient way of paying utility bills through Credit Card.

Monthly utility bill is directly debited to the Credit Card account and payment is made to the

billing company by Cards Services on behalf of the cardholder. Customer can also pay their

utility bills from their account by debiting their account. They can track their bills very easily

since the statement will provide them detailed of bills. It is absolutely free of charge.

The following monthly bills can be paid through auto bills pay:

Mobile Phone

Electricity

Internet

Cable TV

5.4.5 E-STATEMENT

It is a fast, reliable and efficient service to minimize paperwork and maximize convenience. E-

Statements are absolutely free of charge & all one needs is an e-mail address.

Multiple Mailing: e-Statements can be delivered to more than one e-mail address (upto a

maximum of 3). So wherever the cardholder is, 24-hour access to his financial information is

only a click away.

Safe & Secured: As an alternative to printed statements, e-Statements eliminate the chance of

having unattended documents read by others. That’s why once subscribed to e-Statements, the

cardholders will not receive printed statements anymore (unless there is a mail failure).



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.4.6 DEBIT CARD

A Debit Card is a piece of plastic used for purchasing goods & services and for obtaining cash

disbursements on actual terms. It is an advanced replacement of traditional ATM cards which

can be used both in ATMs and POS machines at merchant outlets. Cardholders can purchase

goods/services up to the amount of money they have in their bank account.

Key benefits of Standard Chartered Debit Card:

Standard Chartered Debit Card Provides customer’s easy access to their money

from all 35 SCB ATMs along with VISA Member banks ATMs as well as VISA

enabled POS machines at merchant outlets in Bangladesh.

Debit Card is a convenient way of Paying Now from customer’s personal account

with no interest charge.

Every purchase and ATM withdrawal will be reflected on the account statement of

the customer which is an easy way to track spending.

Customers don’t need cash for shopping anymore if they have Debit Card. It is

surely the safest & easiest mode of transacting.

Around 1000 merchant establishments and 35 ATMs of its own surely the largest

network in the country.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.4.7 ATM (AUTOMATED TELLER MACHINE)

ATM stands for Automated Teller Machine. This machine is capable of dispensing cash, taking

deposits and providing other services to customers. The ATM is a fast, easy and convenient

way for customers to withdraw or deposit cash and also avail other services offered by the

ATM, without having to step into a branch. Standard Chartered Bank has 35 ATMs in

Bangladesh. 22 are located within branch premises and 13 are situated in offsite locations.

Facilities available through ATM:

Cash withdrawal

Cash deposit

Cheque deposit

Mixed deposit

Instruction deposit

Balance enquiry

Fund transfer

Instant mini-statement printout

Chequebook request

Statement request

SCB Credit Card bill payment

Utility bill payment (Aktel, Citycell, GrameenPhone & BTTB)

Credit card holders can avail the facility of cash advance & utility bill payment

through the ATMs.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.4.8 SAFE DEPOSIT LOCKER SERVICE

Standard Chartered offers customers a modern locker system for safekeeping of their valuable

articles and confidential documents. Standard chartered ensures utmost confidentiality &

personalized service for customers locker operations.

The Safety Features:

24-hour close circuit TV surveillance and Security guards.

Dual control by client and the locker custodian.

Strong heat-resistant steel lockers lodged in re-inforced concrete & cement, steel

vaults for maximum-security protection.

5.4.9 GOVERNMENT BONDS

Like all other banks, SCB provides its customers with bond services. Various types of

government bonds (like BSP, 3MSP) are available with the bank. These bonds can be kept as

security when the customer takes loan from the bank.

5.4.10 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 of the slip and drop the cheque with the slip inside

the box.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

5.4.11 INTERNATIONAL NETWORK SERVICE

SCB has an easy access to international network through its banking correspondence. The bank

offers different facilities like trade finance facilities including advising, confirming exports

L/Cs and issue of import L/Cs banked by international sales and service center of the bank and

correspondent bank network, bonds and guarantees. It also offers its foreign correspondent

customers with current account services where Taka settlement is necessary, the ability to issue

bonds and guarantees in support of their customer’s business, advising of LC and negotiation

documents, market intelligence and status report.

5.4.12 WELCOME PACK

The welcome pack is by far the fastest and easiest way of opening accounts in the country,

which is first introduced by SCB in October 2001 (so it is called the 21st century account by

SCB). It offers a set of absolutely unrivalled benefit. With a Welcome Pack, account is opened

the minute the customer produce the necessary documents. Welcome pack contains the

followings:

Account Number

A 25-leaf Cheque book

Money link, ATM card and Personal Identification Number (PIN)

Telephone Identification Number (TIN)

5.4.13 EVENING BANKING

Evening banking services is first ever in Bangladesh launched by SCB for its valued customers.

In this special service the customers can do their banking from 6.00 p.m. to 8.00 p.m.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

CHAPTER 6

LITERATURE

REVIEW



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

6. LITERATURE REVIEW:LITERATURE REVIEW:LITERATURE REVIEW:LITERATURE REVIEW:

Customer satisfaction is a measure of how products and services supplied by a company meet

or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total customers,

whose reported experience with a firm, its products, or its services (ratings) exceeds specified

satisfaction goals.( Farris et al, 2010 )

Customer Satisfaction is a pillar to the success of a business. This is easily forgotten in times

that place acquiring new customers into the center of business and marketing strategies. A high

customer satisfaction will bring loyal customers and therefore a huge potential: they buy more

often, with a higher order value, and they are likely to bring new customers.

The key factors influencing customers’ selection of a bank include the range of services, rates,

fees and prices charged (Abratt and Russell, 1999). It is apparent that superior service, alone, is

not sufficient to satisfy customers. Prices are essential, but not more important than service and

relationship quality. Furthermore, service excellence, meeting client needs, and providing

innovative products are key to success in the banking industry. Most private banks claim that

creating and maintaining customer relationships are important to them and they are aware of

the positive values that relationships provide. (Colgate et al., 1996).

Indeed, customer satisfaction has for many years been the key in determining why customers

leave or stay with an organization. Organizations need to know how to keep their customers,

even if they are satisfied. Reichheld (1996) suggests that satisfied customers may look for other

banks because they believe they might receive better service elsewhere. Fornell (1992) showed

that although customer satisfaction and quality appear to be important for all firms, satisfaction

is more important for loyalty in industries such as banks, insurance, mail order, and

automobiles.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Ioanna (2002) further proposed that product differentiation is impossible in a competitive

environment like the banking industry. Banks everywhere are delivering the same products. For

example, there is usually only minimal variation in interest rates charged or the range of

products and services available to customers. Bank prices are fixed and driven by the

marketplace. Thus, bank management tends to differentiate their organization from competitors

through service quality. Service quality is an influential element that impacts customers’

satisfaction level in the banking industry. In banking, quality includes differing types of

convenience, reliability, services portfolio, and more importantly, the staff delivering the

service.

Banks must be able to provide “up-close” personal service for customers who come with high

expectations. For customers who value convenience most, banks must offer the latest product

such as electronic banking, touch-tone phone account access and internet banking. Clearly,

customer value can be a strong driver of customer retention (Slater, 1997; Woodruff, 1997).

Today’s consumers have more choices for their financial needs than ever before. Technology,

globalization, increased competition and increased consumer mobility have dramatically

changed the way people bank (Harwood, 2002). Many financial institutions are looking at

branding techniques to differentiate themselves. Harwood (2002) argued that branding is

critical in the banking industry where all firms offer about the same kinds of products.

Accordingly, bankers must be able to build and manage their bank’s image in order to clearly

define the differences between their bank and its competitors.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Switching barriers have been used as marketing strategies to make it costly for customers to

switch to another organization. Such barriers include search costs, transaction costs, learning

costs, loyal customer discounts and emotional costs (Fornell, 1992). These barriers provide

disincentives for the customer to leave the current organization. Curasi and Kennedy (2002)

have shown that customer satisfaction does not predict the continuation of the relationship.

High switching costs are an important factor binding the customer to the service organization.

Even with relatively low levels of satisfaction, the customer continues to patronize the service

provider because repurchasing is easier and more cost effective than searching for a new

provider (Curasi and Kennedy, 2002).

To compete successfully in today’s competitive marketplace, banks must focus on

understanding the needs, attitudes, satisfactions and behavioral patterns of the market (Kaynak

and Kucukemiroglu, 1992). Consumers evaluate a number of criteria when choosing a bank.

However, the prioritization and use of these criteria differs across countries, and thus cannot be

generalized. For example, in a study of Canadian customers in Montreal, Laroche and Taylor

(1988) found that convenience is the principal reason for bank selection, followed by parental

influence with respect to the status of the bank. In contrast, Kaynak and Kucukemiroglu's

(1992) study of the Hong Kong banking market discovered that customers choose their banks

because of convenience, long association, recommendations of friends and relatives, and

accessibility to credit.

Social and technological change has had a dramatic impact on banking. These developments,

such as internationalization and unification of money markets and the application of new

technologies in information and communications systems to banking, have forced banks to

adopt strategic marketing practices. These have included offering extended services,

diversification of products, entry into new markets, and emphasizing electronic banking

(Mylonakis et al., 1998). This greater range of services and products, along with improvements

in communications efficiency, could have a significant impact on customer satisfaction and

consequent behavioral intentions. As changes in the broad financial fields emerge and business



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

activities converge (i.e., the offering of insurance, financial planning, and share brokerage by a

bank), it is imperative to differentiate banking products from other similar or complementary

ones that are offered by bank affiliates or non-banks (Mylonakis et al., 1998).

The Bank Benchmarking study offers an insight into the performances of retail banks operating in the

UAE with regards to response time and service quality that UAE retail banks deliver through all

channels, Ethos Consultancy, the region's leaders in customer service excellence, conducted

1,500 visits to the 29 banks covered and data collected measured 80 different criteria which

mean 40,000 responses were analyzed. The result shows the following key drivers in customer

satisfaction of banks.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

CHAPTER CHAPTER CHAPTER CHAPTER

7777

Analysis Findings & Recommendation



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

7.1 RESEARCHRESEARCHRESEARCHRESEARCH METHODOLOGY:METHODOLOGY:METHODOLOGY:METHODOLOGY:

SURVEY DESIGN

The Survey was systematically designed to capture a representative view of Employee

Engagement Index. Standard questionnaire response approach was used to evaluate the overall

approach of the officials. The questions were distributed across a wide variety of items.

INSTRUMENT DEVELOPMENT (QUESTIONNAIRE):

Questionnaires are the most frequently used data collection method in educational and

evaluation research. Questionnaires help gather information on knowledge, attitudes, opinions,

behaviors, facts, and other information. Development of a valid and reliable questionnaire

involves several steps taking considerable time. (Malhotra, 2009) The following explanation

describes the sequential steps involved in the development and testing of questionnaires used

for data collection.

STEP 1- BACKGROUND:

In this initial step, the purpose, objective, research questions, and hypothesis of the proposed

research are examined. Determining who the audience, their background, especially their

educational/readability levels, access, and the process used to select the respondents (sample

vs. population) are also part of this step. (Malhotra, 2009).The purpose of my questionnaire was

basically to find out the opinions of SCB employees about the relationship between employee

engagement and organizational success.

STEP 2- QUESTIONNAIRE CONCEPTUALIZATION

After developing a thorough understanding of the research, the next step was to generate

statements for the questionnaire. In this step, content (from literature/theoretical framework)

were transformed into statements/questions. In addition, a link among the objectives of the

study and their translation into content is established. (Malhotra, 2009) Major variables

(independent and dependant) are identified and defined in this step.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

STEP 3- FORMAT AND DATA ANALYSIS

In Step 3, the focus was on writing statements, selection of appropriate scales of measurement,

questionnaire layout, format, question ordering, and proposed data analysis. Scales are devices

used to quantify a subject's response on a particular variable. Understanding the relationship

between the level of measurement and the appropriateness of data analysis is important. For

example, if regression or correlation is one mode of data analysis, the dependent variable must

be measured on an interval/ratio scale (strongly disagree to strongly agree). (Lind, Marchal &

Wathen, 2008)

STEP 4- ESTABLISHING VALIDITY

As a result of Steps 1-3, a draft questionnaire is ready for establishing validity. Validity is the

amount of systematic or built-in error in measurement. Validity is established using a panel of

experts (in this case, my faculty member).Which type of validity (content, construct, criterion,

and face) to use depends on the objectives of the study. (Malhotra, 2009)

The following questions were addressed in Step 4:

Is the questionnaire valid? In other words, is the questionnaire measuring what it

intended to measure (relationship between employee engagement and organizational

success)

Does it represent the content?

Is it appropriate for the sample/population?

Does the instrument look like a questionnaire?

Is the questionnaire comprehensive enough to collect all the information needed to

address the purpose and goals of the study?

Addressing these questions coupled with carrying out a readability test enhanced my

questionnaire validity. Approval & feedback from my honorable faculty was also obtained.

Now the questionnaire was ready for the survey.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

STEP 5- ESTABLISHING RELIABILITY

In this final step, reliability of the questionnaire was carried out. Reliability refers to random

error in measurement. Reliability indicates the accuracy or precision of the measuring

instrument. (Lind, Marchal & Wathen, 2008). After the survey was over, I wanted to see

whether it offered a consistent reply from the respondents. The survey seek to answer the

question, does the questionnaire consistently measure whatever it measures?

Data collected from the survey was analyzed using SPSS (Statistical Package for Social

Sciences) software. The reliability coefficient (alpha) can range from 0 to 1, with 0 representing

an instrument with full of error and 1 representing total absence of error. A reliability

coefficient (alpha) of .40 or higher is considered acceptable reliability. (Lind, Marchal &

Wathen, 2008) The process is illustrated below:

Conduct

Survey

Run

Reliability

Test

Observe

Result

Target

Audience,

Population

Purpose &

Goals,

Objectives.

Revision

Readability

Test

Field Test Panel of

Experts

Approval

Generate

Statements

Variables:

Dependant &

Independent

Knowledge

Attitudes

Opinions

Behaviors Appropriate

Scale of

Measurement

Questionnaire

Format

STEP - 1 STEP - 2 STEP - 3

STEP - 4

STEP - 5



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

FACTOR ANALYSIS:

Factor analysis is a method of data reduction. It does this by seeking underlying unobservable

(latent) variables that are reflected in the observed variables (manifest variables). There are

many different methods that can be used to conduct a factor analysis (such as principal axis

factor, maximum likelihood, generalized least squares, unweighted least squares), There are

also many different types of rotations that can be done after the initial extraction of factors,

including orthogonal rotations, such as varimax and equimax, which impose the restriction that

the factors cannot be correlated, and oblique rotations, such as promax, which allow the factors

to be correlated with one another. Given the number of factor analytic techniques and options,

it is not surprising that different analysts could reach very different results analyzing the same

data set. However, all analysts are looking for simple structure. Simple structure is pattern of

results such that each variable loads highly onto one and only one factor.

We do factor analysis when α is less than 0.4, because then it is too insignificant. Factor

analysis attempts to identify underlying variables, or factors, that explain the pattern of

correlations within a set of observed variables. Factor analysis is often used in data reduction to

identify a small number of factors that explain most of the variance observed in a much larger

number of manifest variables. Factor analysis can also be used to generate hypotheses

regarding causal mechanisms or to screen variables for subsequent analysis (for example, to

identify co linearity prior to performing a linear regression analysis).

PRIMARY DATA:

As mentioned earlier, a survey was conducted with a structured questionnaire. The research

was based on the relationship between some independent variables and some dependent

variables. The independent variables are:



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Punctuality

Sincerity

Right solution

Well information providing

Prompt services

Willingness to help

Fair Fees structure

Banking Environment

Individual attention

Products and services offered

Availability of ATM Booth

Feeling safe in transactions

The dependent variable is:

Customer Satisfaction

The questionnaire was divided into two (2) sections. First section was used for respondents’

different Q & A part and the second section was used for the independent variables. In each

section, there were 4-5 relevant statements. In second section the participants had to tick in the

boxes provided beside each question according to the extent of their agreement (scale provided

at the beginning of the questionnaire).

Scale rating provided was:

1 =‘Strongly Agree’

2 = ‘Agree’

3 = ‘Neutral’

4 = ‘Disagree’

5 = ‘Strongly Disagree’



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

SECONDARY DATA:

While doing this research I took help of some secondary data. Most of the information was

obtained through internet browsing. I also went through couple of books on customer

satisfaction. SCB’s brochures, booklets and intranet were also of great help.

SAMPLE SIZE:

The sample size for this research was 54.

TYPE OF RESPONDENTS:

All the respondents were randomly selected for the survey and were both male and female. The

participants of the conducted survey were selected from the different level of customers of the

SCB. Most of the people participated in the survey were between 25 to 30 years of age. There

were employees from different organizations. Most of their educational background ranged

from undergraduate to post graduate.

Hypothesis Building:

Hypothesis:Hypothesis:Hypothesis:Hypothesis:

Any undecided explanation can be referred to as a hypothesis which we use in many

managerial decisions. For example: qualified employees generate more revenue. This statement

is still faltered because there is no proof of its validity. This is why we conduct hypothesis

testing which shows the validity of the explanation. (Malhotra, 2009)

A hypothesis should have testability so that it can proceed to the stage of hypothesis testing.

Hypotheses must also be able to explain the phenomena under any set of conditions; if a

hypothesis can only explain a phenomenon in one set of conditions, it is generally considered

unacceptable. (Malhotra, 2009)



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Hypothesis Testing:Hypothesis Testing:Hypothesis Testing:Hypothesis Testing:

This test tries to prove the validity of the given hypothesis. The test involves a series of

experiments in many different conditions. If the hypothesis does not stand up to the tests in all

conditions then a new one is formed and submitted to the same hypothesis testing. If the new

hypothesis passes in all conditions then it can be considered as a reliable and valid theory.

I have used statistical hypothesis testing for which I have collected large quantities of data

through questionnaires and interview. Then I have conducted tests (mean, correlation,

reliability, regression).

In a hypothesis test there are two hypotheses: null hypothesis and alternative hypothesis. Null

hypothesis is the accepted decision and alternative hypothesis is the decision that one tries to

prove.

Importance Of Hypothesis Testing:Importance Of Hypothesis Testing:Importance Of Hypothesis Testing:Importance Of Hypothesis Testing:

It enables managers to better understand quality data. Data collection is the foundation for

employee evaluation but without correct data processing, it is difficult to make an objective

conclusion. (Malhotra, 2009)

For instance, the success rate of different groups is 15% and 10%, respectively. In this case it

would be an incomplete judgment saying that one group is better than the other because other

variables like working conditions, job satisfaction are relevant to job performance. On this

occasion, hypothesis testing is instrumental in explanation of this dilemma.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Test Statistic: Test Statistic: Test Statistic: Test Statistic:

It is the random variable X whose value is tested to arrive at a decision. The Central Limit

Theorem states that for large sample sizes (n > 30) drawn randomly from a population, the

distribution of the means of those samples will approximate normality, even when the data in

the parent population are not distributed normally. A z statistic is usually used for large sample

sizes (n > 30), but often large samples are not easy to obtain, in which case the t-distribution

can be used. The population standard deviation s is estimated by the sample standard deviation,

s. The t curves are bell shaped and distributed around t=0. The exact shape on a given t-curve

depends on the degrees of freedom. In case of performing multiple comparisons by one way

ANOVA, the F-statistic is normally used. It is defined as the ratio of the mean square due to the

variability between groups to the mean square due to the variability within groups. The critical

value of F is read off from tables on the F-distribution knowing the Type-I error and the

degrees of freedom between & within the groups.

Rejection Region : Rejection Region : Rejection Region : Rejection Region :

It is the part of the sample space (critical region) where the null hypothesis H0 is rejected. The

size of this region is determined by the probability (a) of the sample point falling in the critical

region when H0 is true. a is also known as the level of significance, the probability of the value

of the random variable falling in the critical region. Also it should be noted that the term

"Statistical significance" refers only to the rejection of a null hypothesis at some level a. It

implies only that the observed difference between the sample statistic and the mean of the

sampling distribution did not occur by chance alone.

Decision:Decision:Decision:Decision: If the test statistic falls in the rejection/critical region, H0 is rejected, else H0 is

accepted.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Figure: Steps in hypothesis testing



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

MY HYPOTHESIS:

In my project I have shown the relationship between different factors and customer satisfaction.

To prove my point, I have taken twelve independent variables. Then I have shown the effect

that these variables have relation with the factors of customer satisfaction. So my hypothesis in

this project is as follows:

HYPOTHESIS 1: The level of customers’ satisfaction about the services provided by

SCB is positively related to the level of customers’ exposure about the bank’s

service packages.

HYPOTHESIS 2: SCB’s Customers expectation of service matches bank’s service

promise.

HYPOTHESIS 3: SCB’s Customers are updated of the bank’s services.

HYPOTHESIS 4: SCB’s Customer involvement with the bank is high.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

7.2 ANALYSISANALYSISANALYSISANALYSIS & FINDINGS& FINDINGS& FINDINGS& FINDINGS

Demographic Analysis:

As mentioned earlier, total number of respondents was 54. They can be classified in the

following types:



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Services Provided by SCB Matches your expectation

How Do You Find the Overall Services of SCB?



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Reliability Test:

The following questions are interrelated to each other. So any discrepancy in the reliability may

end up with inaccurate results. So reliability test is necessary here

1. How do you find the overall service of SCB? a. Very Satisfied b. Satisfied c. Neutral d. Dissatisfied e. Very Dissatisfied

2. Customer Satisfaction in different dimensions (factors): What is your perception about SCB’s service in the following areas (1 being strongly agree, and 5 being strongly disagree).

Customer Satisfaction Factors Ranks

Punctuality 1 2 3 4 5

Sincerity 1 2 3 4 5

Right Solution 1 2 3 4 5

Well information providing 1 2 3 4 5

Prompt services 1 2 3 4 5

Willingness to help 1 2 3 4 5

Fair Fees structure 1 2 3 4 5

Banking Environment 1 2 3 4 5

Individual attention 1 2 3 4 5

Products and services offered 1 2 3 4 5

Availability of ATM booth 1 2 3 4 5

Feeling safe in transactions 1 2 3 4 5

Do the services provided by SCB matches your expectation

1 2 3 4 5



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

The Alpha and Standardized Item Alpha were obtained as follows:

Reliability Statistics

Cronbach's Alpha

Cronbach's Alpha Based on

Standardized Items

N of Items

.688 .905 14

Alpha Value = 0.688

As the Alpha Value is greater than 0.4, therefore we can say that the data is reliable and

there is no need for Factor Analysis that would have required Data Reduction and further

analysis.

This shows that all the questions in that section were objective, accurate and positive.

COMMENT:

Systematic development of the questionnaire for data collection is important to reduce

measurement errors. Well-crafted conceptualization of the content and transformation of the

content into questions is inessential to minimize measurement error. Careful attention to detail

and understanding of the process involved in developing a questionnaire are of immense value.

Not following appropriate and systematic procedures in questionnaire development, testing,

and evaluation may undermine the quality and utilization of data. (Malhotra, 2009). Since I

tried to follow all the logical steps in making the questionnaire, it helped me to come out with

responses which are truly representative.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Descriptive Statistics:

The table below shows the mean value and standard variations of all the variables used

Descriptive Statistics

N Minimum Maximum Mean Std.

Deviation

Punctuality 54 1.00 5.00 2.2593 .93537

Sincerity 54 1.00 4.00 2.1852 .84840

Right solution 54 1.00 4.00 2.2407 .79941

Well information providing 54 1.00 4.00 2.3704 .91726

Prompt services 54 1.00 5.00 2.6852 1.02468

Willingness to help 54 1.00 5.00 2.2222 .94503

Fees structure 54 1.00 5.00 2.6852 1.09586

Banking Environment 54 1.00 4.00 2.0556 .94003

Individual attention 54 1.00 4.00 2.4630 .88409

Products and services offered 54 1.00 5.00 2.2407 .88882

Availability of ATM Booth 54 1.00 5.00 3.0926 .97649

Make you feel safe in your

transactions

54 1.00 4.00 2.0185 .83532

Services provided by SCB

matches your expectation

54 1.00 5.00 2.2407 1.09777

Valid N (list wise) 54

From the above statistics we can see that most of the customers are satisfied having

positive answers in each of the questions. However, in case of availability of ATM booths,

average answer is neutral. So, we will do further research to prove our hypothesis.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

CORRELATION

In Pearson correlation, we will find the correlation direction and magnitude among the

relationship between independent variables Punctuality, Sincerity, Right solution, Well

information providing, Prompt services, Willingness to help, Fair Fees structure, Banking

Environment, Individual attention, Products and services offered, Availability of ATM Booth

and Make you feel safe in your transactions with dependent variable How do you find the

overall service of SCB ?

How do you find

the overall service of SCB?

How do you find the overall service of SCB?

Pearson Correlation 1

Sig. (2-tailed)

N 54

Punctuality Pearson Correlation .763**

Sig. (2-tailed) .000

N 54

Sincerity Pearson Correlation .571**


N 54

Right solution Pearson Correlation .301*


N 54

Well information providing Pearson Correlation .575**


N 54

Prompt services Pearson Correlation .576**


N 54

Willingness to help Pearson Correlation .559**


N 54

Fees structure Pearson Correlation .571**


N 54



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Banking Environment

Pearson Correlation

.399**


N 54

Individual attention Pearson Correlation .570**


N 54


Pearson Correlation .390**


N 54

Availability of ATM Booth Pearson Correlation .538**


N 54

Make you feel safe in your transactions



N 54

Services provided by SCB matches your expectation



N 54

**. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed).

From the above table it is seen that all the factors have positive correlation with the

customers’ perspective of overall service. Punctuality and the service provided by SCB

have strong correlation with the dependant variable. However all other factors have moderate

correlation with the customers’ perspective of overall services.

Correlations

How long have you been banking with

SCB

How do you find the overall service of SCB ?

How long have you been banking with SCB

Pearson Correlation

1 -.044


N 54 54

How do you find the overall service of SCB?

Pearson Correlation

-.044 1


N 54 54

A negative correlation can be found between the banking years with SCB and satisfaction. It

means that customers tend to be dissatisfied as the banking relation period

increases.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Regression

In the regression analysis, the quantitative effect and the relative weight of the variables

Punctuality, Sincerity, Right solution, Well information providing, Prompt services,

Willingness to help, Fair Fees structure, Banking Environment, Individual attention, Products

and services offered, Availability of ATM Booth and Make you feel safe in your transactions

with dependent variable How do you find the overall service of SCB?

Model Summary

Model R R Square

Adjusted R Square

Std. Error of the Estimate

1 .860a .739 .662 .62021

a. Predictors: (Constant), Make you feel safe in your transactions, Fees structure,

Right solution, Products and services offered, Well information providing, Prompt

services, Sincerity, Availability of ATM Booth, Individual attention, Punctuality,

Willingness to help, Banking Environment

ANOVAb

Model Sum of Squares

Df Mean Square

F Sig.

1 Regression

44.599 12 3.717 9.662 .000a

Residual 15.771 41 .385

Total 60.370 53

a. Predictors: (Constant), Make you feel safe in your transactions, Fees structure, Right

solution, Products and services offered, Well information providing, Prompt services,

Sincerity, Availability of ATM Booth, Individual attention, Punctuality, Willingness to

help, Banking Environment

b. Dependent Variable: How do you find the overall service of SCB?



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Coefficientsa

Model Un standardized Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) -.843 .378 -2.231 .031

Punctuality .504 .135 .442 3.735 .001

Sincerity .013 .146 .010 .087 .931

Right solution -.115 .128 -.086 -.901 .373

Well information providing

.215 .127 .185 1.700 .097

Prompt services .172 .110 .165 1.558 .127

Willingness to help .087 .139 .077 .625 .535

Fees structure .084 .108 .087 .783 .438

Banking Environment

-.097 .144 -.086 -.679 .501

Individual attention .075 .141 .062 .530 .599


.104 .117 .086 .886 .381

Availability of ATM Booth

.181 .116 .165 1.555 .128

Make you feel safe in your transactions

.013 .146 .010 .091 .928

a. Dependent Variable: How do you find the overall service of SCB?

All the above mentioned variables are responsible for the variation of the dependant variable

SCB customers’ perspective of overall services. Around sixty percent of the variation of

customers’ perspective of overall services can arise due to the above twelve factors.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

HYPOTHESIS TESTING

HYPOTHESIS 1:

H0: “The level of customers’ satisfaction about the services provided by SCB is not

positively related to the level of customers’ exposure about the bank’s service

packages.”

H1: “The level of customers’ satisfaction about the services provided by SCB is

positively related to the level of customers’ exposure about the bank’s service

packages.”

Model Summaryb

Model R R

Square

Adjusted R

Square

Std. Error

of the

Estimate

1 .330a .109 .091 1.01730

a. Predictors: (Constant), Do you read the instructions

well?

b. Dependent Variable: How do you find the overall

service of SCB?

ANOVAb

Model Sum of

Squares

Df Mean

Square

F Sig.

1 Regressio

n

6.556 1 6.556 6.335 .015a

Residual 53.815 52 1.035

Total 60.370 53

a. Predictors: (Constant), Do you read the instructions well?




PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Coefficientsa

Model Un standardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) 1.547 .315 4.910 .000

Do you read the

instructions well?

.301 .119 .330 2.517 .015


P value for coefficient of A is 0.015. For any value of α, if P-Value < α, we can reject the

null hypothesis. So in this case we can reject the null hypotheses. The level of customers’

satisfaction about the services provided by SCB is positively related to the level of

customers’ exposure about the bank’s service packages.

HYPOTHESIS 2:

H0: “Customers’ expectation of service doesn’t matches bank’s service promise.”

H1: “Customers’ expectation of service matches bank’s service promise.”

Model Summaryb

Mod

el

R R

Square

Adjusted R

Square

Std. Error

of the

Estimate

1 .848a .718 .713 .57183

a. Predictors: (Constant), Services provided by SCB matches your expectation

b. Dependent Variable: How do you find the overall

service of SCB?



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

ANOVAb

Model Sum of

Squares

Df Mean

Square

F Sig.

1 Regressio

n

43.367 1 43.367 132.628 .000a

Residual 17.003 52 .327

Total 60.370 53

a. Predictors: (Constant), Services provided by SCB matches your

expectation


Coefficientsa


Coefficients

Standardize

d

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) .413 .178 2.317 .024

Services provided by

SCB matches your

expectation

.824 .072 .848 11.516 .000



null hypothesis. So in this case we can reject the null hypotheses. SCB Customers’

expectation of service matches bank’s service promise.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

HYPOTHESIS 3:

H0: “SCB’s Customers are not updated of the bank’s services.”

H1: “Customers’ SCB’s Customers are updated of the bank’s services.”

Model Summaryb

Model

R R Square Adjusted R Square


1 .081a .006 -.013 1.07398

a. Predictors: (Constant), What do you think about reading the reading the instructions provided by the bank ?

b. Dependent Variable: How do you find the overall service

of SCB?

ANOVAb


Df Mean Square

F Sig.

1 Regression .392 1 .392 .340 .562a

Residual 59.978 52 1.153

Total 60.370 53

a. Predictors: (Constant), What do you think about reading the reading the instructions provided by the bank?


Coefficientsa

Model Un standardized Coefficients

Standardized Coefficients

t Sig.

B Std. Error Beta

1 (Constant) 2.077 .345 6.023 .000

What do you think about reading the reading the instructions provided by the bank?

.084 .144 .081 .583 .562


P value for coefficient of A is 0.562. For any value of α, if P-Value < α, we can reject the null

hypothesis. So in this case we cannot reject the null hypotheses. SCB’s Customers are

not updated of the bank’s services.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

HYPOTHESIS 4

H0: “SCB’s Customer involvement with the bank is not high.”

H1: “SCB’s Customer involvement with the bank is high.”

Model Summaryb

Model

R R Square Adjusted R Square


1 .131a .017 -.002 1.06814

a. Predictors: (Constant), Are you interested in finding out

new products offerings of SCB? b. Dependent Variable: How do you find the overall service

of SCB?

ANOVAb


Df Mean Square

F Sig.

1 Regression 1.042 1 1.042 .913 .344a

Residual 59.328 52 1.141

Total 60.370 53

a. Predictors: (Constant), Are you interested in finding out new products offerings

of SCB? b. Dependent Variable: How do you find the overall service of SCB?

Coefficientsa


Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

1 (Constant) 1.953 .352 5.555 .000

Are you interested in finding

out new products offerings of

SCB?

.137 .143 .131 .956 .344



null hypothesis. So in this case we cannot reject the null hypotheses. SCB’s Customer

involvement with the bank is not high.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Other Analysis:

Reason for maintaining A/C with other banks:

Do you have accounts with any other bank?

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid .00 2 3.7 3.7 3.7

Yes 35 64.8 64.8 68.5

No 17 31.5 31.5 100.0

Total 54 100.0 100.0



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

What is the main reason for maintaining account with different bank(s)?

Frequenc

y

Percent Valid

Percent

Cumulative

Percent

Valid Better availability of

branches and ATMs

10 18.5 18.9 18.9

Better Service 5 9.3 9.4 28.3

Better value 9 16.7 17.0 45.3

Better other facilities 12 22.2 22.6 67.9

Not Applicable 17 31.5 32.1 100.0

Total 53 98.1 100.0

Missing 9.00 1 1.9

Total 54 100.0

Almost 65 percent of the respondents have accounts in other banks and the main reasons

behind this are availability of branches and ATMs, better value and, better other facilities.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Internet Banking:

73 percent of the respondent finds the internet banking very useful.

Interpersonal Communication:

The Interpersonal communication between the bank’s representatives and

customer is very limited, which is clearly noticeable in the accompanying chart.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

Crosstab Analysis:

Gender * How do you find the overall service of SCB? Cross tabulation

Count

How do you find the overall service of SCB? Total

Very

satisfied

Satisfied Neutral Dissatisfied Very

dissatisfied

Gender Male 9 17 4 4 1 35

Female 4 7 5 2 1 19

Total 13 24 9 6 2 54

From the sample it is seen that more percentage of male customers are satisfied with

SCB than that of female customers.

What type of account do you maintain with SCB? * How do you find the overall service of

SCB? Crosstabulation

Count

How do you find the overall service of SCB? Total

Very

satisfied

Satisfied Neutral Dissatisfied Very

dissatisfied

What type of

account do you

maintain with

SCB?

Current

Account

3 6 1 3 0 13

Savings

Account

8 12 4 1 1 26

Term 0 2 2 1 0 5

Salary 2 2 1 1 1 7

Others 0 2 1 0 0 3

Total 13 24 9 6 2 54

The current and savings account holder are the major respondent in the survey and among them

very small portion are dissatisfied with SCB’s service.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

7. 3 RECOMMENDATION: RECOMMENDATION: RECOMMENDATION: RECOMMENDATION:

It will be naïve of me to give suggestions to a multinational corporation like SCB which is

already the top financial institution of the world. But based on the survey result and my 3

months experience, I feel SCB would even perform better if it does the following:

Use Key Performance Index (KPI) or in short how many customers are served

effectively in a stipulated time.

Monitor employee activity regularly and take special care during rush hour. Motivate

employees to serve customers at a time effective way.

Though it might resemble that SCB is providing right solution in most cases, it is

also a warning that the percentage of right solution is not up to the fullest. SCB can

take service evaluation to check whether their service were unto satisfactory level or

not.

Though employees are presumed to have willingness to help all the time, the

response graph says that there is a possibility that employees are not profession at

their services all the time. So their line manager should sit and talk with them about

this issue.

Fair fees structure is a major issue of customer satisfaction. Fees structures are

thereby updated considering market trends and other financial and economic factors.

Customers are happy when they get fair fees structures. To them, the word fair



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

includes local and global reputation of the bank, brand image, value chain etc. So

these things should be considered while rescheduling the fees.

Banking environment has been found good for SCB, as expressed in the graph. Still

there are some percentages of customers who don’t like the environment. So SCB

should sit with their customers to solve the related banking environment problems.

Banking has become so user friendly that customer usually like to use ATM cards to

withdraw cash than standing into the queue in the bank. From the customer

responses it is visible that customers are not at all happy with the current number of

ATM booths available for use. As it is an important factor of satisfaction, SCB

should look into it.

From the graph it is visible that the customers’ opinion regarding safety in

transaction is quite satisfactory. Still there are some percentages of customers who

have negative comments regarding safety. So SCB should look into it as safety has

become a bigger issue nowadays. If any safety loopholes are found, SCB should take

proper action so no mishap can happen.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

CHAPTER 8

CONCLUSION



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

8. CONCLUSIONCONCLUSIONCONCLUSIONCONCLUSION

Now a day business does not mean just selling and purchasing the products or services. This is

very important to conduct the business in an organized and effective manner. Now questions

arise that how we can make this business process effective. Advertising can be a bigger

solution in this sector. More than that maintaining a satisfactory level of customer satisfaction

might make the whole selling process a lot more progressive. As we all know in the business

world things move on the will of Impression. Standard Chartered is the world’s one of the best

leading Bank’s. And it the duty of this Bangladesh corporate office to hold that same image and

continue with the Business.

The positive linkage that has been found between independent and dependent variables has

proved that there are some specific factors that makes customer satisfied or dissatisfied. As

customers are driving force of the banking industry, banks do a lot of marketing regarding the

products and services they offer. And also they cater their customers with regularly updated

offerings. SCB is doing business for more than 150 years, having a banking structure based on

the localized culture, tradition by blending its brand value and norms. The survey I have done

shows that customers are satisfied in most cases. However, in some cases they are dissatisfied.

Though the report intends and to find the factors of customer satisfaction which it already did,

further recommendations have been given so that the customer satisfaction increases rather than

decreasing day by day.



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

CHAPTER 9

BIBLIOGRAPHY



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

9. BIBLIOGRAPHY:BIBLIOGRAPHY:BIBLIOGRAPHY:BIBLIOGRAPHY:

CB inside- Standard Chartered Bank internal Web site

http://www.standardchartered.com/

http://www.tdan.com/i018ht01.htm

http://eps.syr.edu/toolkit/analyzing.aspx

http://pigseye.kennesaw.edu/~dbraun/csis4650/A&D/UML_tutorial/activity.htm

http://www.agilemodeling.com/artifacts/useCaseDiagram.htm

http://www.technologystudent.com/designpro/richpic1.htm

http://www.naa.gov.au/recordkeeping/dirks/dirksman/dirks_A12_feasibility.html

http://members.aol.com/AllenWeb/planning.htm

http://www.umsl.edu/~sauter/analysis/dfd/dfd.htm

http://www.umsl.edu/~sauter/analysis/er/er_intro.html

Interview of: Saqib Sarkar; Assistant manager: Corporate Affair, SCB

Interview of Sajib Nurul Kabir; Senior Manager: Corporate Affairs, SCB

Interview of Tanvir hossain; Card Dpt: SCB



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

CHAPTER 10

APPENDIX



PPPP

RRRR

EEEE

PPPP

AAAA

RRRR

EEEE

D D D D

BBBB

YYYY

S

H

A

M

S

APPENDIX

Standard Chartered Bank SHAMS NSU Internship Report

Documents

Transcript of Standard Chartered Bank SHAMS NSU Internship Report