Union Bank

EXECUTIVE SUMMARY

The internship requirement in the degree of Master in Business Administration led me to experience an

exciting and professional exposure to Union Bank Limited as an intern.

Union Bank is rapidly gaining ground in the global financial market and considering this rapid growth;

Standard Charter, which is one of the leaders in Banking, decided to adopt it after the issuance of orders

from State Bank of Pakistan that every bank in Pakistan must have more than 200 running branches and

one half billion of reserves. So in July 2006, Union Bank officially merged with Standard Charter, which is

the leading international bank in Pakistan, and Union Bank will materially enhance its market position.

Given the identical positioning of both the banks in the market, the combined entity of Standard Chartered

and Union Bank will deliver economies of scale, a more complete product set, a stronger operating

platform and a wider distribution network. This acquisition will make Standard Chartered the 6th largest

bank (in terms of assets) and will also significantly increase its presence in Pakistan

Though, now Union Bank is officially operating as Standard Charter but the management takeover still

remains, which will completely change the internal business processes and policies. But during my period

of internship, I essentially learned the business processes and policies of Union Bank Limited so from

now onwards in this repot, I will refer the Bank as Union Bank and will focus on its details and policies.

This report accentuates the details of business operations and my learning and observation at Union

Bank Limited as an intern from 17 Aug 2006 to 29 Aug 2006. It also includes the actual forms that are

used in this organization to carry out basic business processes.

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BACKGROUND

Union Bank is a private bank and institution that was licensed in the early 1990´s and has demonstrated

an impressive period of growth since the new management team took over the bank in 1999.

Union Bank is now the eighth largest bank in Pakistan by market share. Mr. Shaukat Tarin is the

President and Group CEO of Union Bank. Over the last five years, Union Bank has come a long way

through its strategy of being a universal bank that provides banking solutions to a variety of customers as

well as small and medium sized enterprises (SMEs). It has successfully established international

operations in Sri Lanka.

Union Bank today is the preferred choice of thousands of satisfied customers throughout Pakistan. With

42 branches in 19 cities and a correspondent banking network of over 300 banks in 85 countries, Union

Bank is rapidly gaining ground in the global financial market.

The management at Union Bank comprises of seasoned professionals in the fields of banking and finance

thereby encouraging a culture of innovation, and total customer satisfaction. Union Bank's vision is to

provide its clients with complete banking solutions.

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VISION, MISSION AND CORE VALUES

Our Vision…

To be the premier financial institution in the Emerging Markets

Our Mission…

To be the premiere bank, responsive to the needs of our target market customers, recognized for

consistently superior service quality and innovative products, thereby delivering superior value to our

stakeholders

Core Values…

Customer Focus

Relentless focus on understanding and fulfilling customer needs through superior service.

Innovation

Continually generate, validate and implement creative solutions to business challenges

Meritocracy

Ensure a fair recruitment process and closely link recognition and reward to performance against

goals, irrespective of personal relationships, gender, religion or ethnicity.

Integrity

Uncompromising financial and intellectual honesty to the organization and oneself with

relationships based on mutual trust and openness.

Team-work

Willingness to share the glory of achievements as well as responsibility for failure

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BUSINESS OPERATION

Organizational Structure of Branch Banking

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BMKhaqan Manzoor

OMAisha Riffat

CSOSaima Khan

PBs (Personal Bankers) and Sales

Executives

Central Office Lahore or DBRG

OCOSaeed Ather

CSOAbid

Hussain

CSOTariq

Mahmood

CSONaseer Akhter

CSOMurtaza Waseem

CROAisha

Sarfraz

CROAamir

Cheema

CSMZubair Khan

CSMSumaya Rafi

CRMSaima Iqbal

PBs areMr. Iftikhar HussainMr. Sajjad HussainMr. Rab Nawaz &Mr. Kamar Saddique as Sales Executive

PBs areMr. Iftikhar HussainMr. Sajjad HussainMr. Rab Nawaz &Mr. Kamar Saddique as Sales Executive

BMPBOMSECSMCRMCSOCROOCOBAO

Branch ManagerPersonal BankerOperations ManagerSales ExecutiveCustomer Relationship ManagerCustomer Services ManagerCustomer Services OfficerCustomer Relationship OfficerOperations Control OfficerBranch Accounts Officer

BAOZeeshan Zufiqar

SWOT ANALYSIS

A SWOT analysis is used as a framework to help the firm develop its overall corporate, marketing or

product strategies. Strengths and Weaknesses are internal factors, which are controllable by the

organization. Opportunities and threats are external factors, which are uncontrollable by the organization.

During My internship period, I closely studied the SWOT of Union Bank Limited and is described below

STRENGHTS

Market Share

Union Bank is the eighth largest bank in Pakistan by market share of assets (having total assets of $2

billion) for cash consideration of $431 million. It serves approximately 400,000 retail customers through its

extensive network of 65 branches in 22 of Pakistan’s major cities, and operates a small but growing

wholesale banking business. Union Bank has successfully gained the market share and profitability via

focusing on innovative consumer banking products and services.

Excellent Customer Services

Union Bank provides excellent customer services and constantly makes the improvements through its

state of the art programs CMP (Complaint Management Program), ISM (Internal Service Measurement)

MSP (Mystery shopping Program) and CSS (Customer Satisfaction Survey).

Union Bank stood top in the Mystery Shopping Program competition for the period January-June 2006.

The target competition consisted of ABN Amro, Citibank, Standard Charter and Bank Al-Falah. Union

Bank stood at 87% whereas the competition closed the first half of the year with an aggregate of 76%.

Real Time Online Services

Union Bank offers real time online services to its customers. Its branches are connected and supported

by a sophisticated Computerized Network that makes use of real time online softwares. No matter where

the customer holds his/her account, to him, any branch is like his/her own branch moreover, Union Bank

has 24 hours state of the art call center that helps out customers.

It has also introduced Internet banking and has launched a unique debit card, which is called the

"shopping card". It is an internationally accepted debit card and is linked to all of customer’s current

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account, savings account, and personal loan account and can accessed overseas through the Visa

network. Union Bank was the first only bank to offer this service in Pakistan to their customers.

Innovative IT Technology

To increase employees work efficiency, Union Bank makes use of high-end distributed softwares such as

Autos Tracking System, OSMS and CTL, Lotus Notes. Such softwares immensely increase work

efficiency of employees as well as business processes and reduce the chance of error.

Seasoned Employees

Union Bank benefits from a strong independent local management team with a wealth of experience from

leading international banks. Union Bank keeps most qualified and experienced staff. Most employees are

rendering their services in the banking sector for more than a decade. Yet they encourage the young

talent for they are well aware of their long-term investment.

Increased Employee Productivity Through Training And New Techniques

Union Bank always seeks to increase employee productivity through a combination of training and

implementation of modern human resource techniques. Frequent in-house and external training

programs, seminars are carried out to help the Bank in maintaining and developing an efficient work

force.

Culture of Working Towards Cooperate Goals

Union Bank’s organizational members are its strongest asset who together work towards the attainment

of cooperation goals through dedication and devotion.

Well-Diversified Consumer Portfolio

Union Bank’s has well-diversified consumer portfolio. This diversification is giving it immense profitability

and respect within society. It can be judged from following.

Country's First Agriculture Credit Card

Agriculture generates 25% of Pakistan’s GDP. It is really only the public sector banks that have been

lending in this area in the past. Union Bank is the first private Bank to hit the nail at the right position at

the right time by launching "Kissan Card" which offers exclusive benefits for farmers purchasing crop

inputs or fuel. Currently the trial is between 5,000 to 8,000 credit cards in the first year, which is going on

quite well, and hopefully by the end of next year, it will have a mass launch of this product throughout

Pakistan.

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Country’s First VISA Debit Card

The total loan portfolio on the banking side is 1.35 trillion rupees ($30 billion) of which only 10% is in

consumer banking. So mortgages, auto finance, credit cards, personal loans are less than 10% of the

total balance sheets of the banks. The rest is in corporate, agricultural, or some SME banking.

Union Bank scratched the surface of this huge market knowing that anyone who has the first mover

advantage will go and capture a higher market share and be in a good position to defend it later on. This

is exactly what it did by introducing first debit card.

Shifting the Paradigm in SME (Small and Medium Enterprises) Banking

Union Bank is the first bank that is shifting the paradigm in SME Banking by treating each SME industry

as a business segment having its own research and its distinct credit criteria. Tana Bana product in textile

is just one illustration of this strategy. Union Bank is going after vendor financing and electronic finance

facilities for retailers and wholesalers of electronic products. This is being done on a programmed basis

and is going to change the way SME banking is being done in Pakistan.

American Express Credit Card

Union Bank had to have either a premier name that they did not have, or a premier brand to lift it. So

Union Bank bought the American Express franchise for the credit cards. The strategy was to go into the

top end with American Express to boost the bank’s brand name. Express card acquisition succeeded in

lifting the name of Union Bank by issuing in the space of one year 120,000 cards. With this launch Union

Bank became a force in the highly competitive Cards business in Pakistan. After wards, Union Bank

launched the Visa line whose success is more pronounced because people know that it is from the same

Union Bank that issued American Express cards.

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WEAKNESSES

Low Market Share

Union Bank needs to do a lot in order to increase its market share that currently gives it the standing as

eighth largest bank in Pakistan. Banking is still a growing sector in Pakistan and the market has not come

to the saturation point as it has in some developed countries.

Though the competition is tough in this sector but an emerging bank can still gets an edge in the market

through its tactful and customer focusing strategies.

Lack of Sophisticated Performance Related Incentive Systems

Union Bank provides worthy allowances to its permanent staff in Branch Banking. However most staff in

Consumer Banking is not completely satisfied with the inducements. This dissatisfaction sometimes leads

to less motivated employees in consumer banking which in turn can effect its business efficiency.

Moreover, permanent staff is not given any performance related incentives. As a result of this, an

inefficient manager or employee is earning the same as an efficient employee who is the real asset for the

organization.

Low Brand Loyalty

Union Bank has still not got the edge where the consumers become loyal to its products and services.

Mostly customers become its customers out of no reason than request from a personal banker. And

talking about consumer banking, though credit cards awareness in our middle class society has gradually

improved but not up to the point where they can compare the perks that one Bank is offering and other is

not. Truth must be said, most customers do not even know the intricacies behind the term “interest free

days”. The point is, consumers do not know of the product being offered so how can they become brand

loyal?

We can say that Autos is a business where consumers can become for consumers are associated with it

for more than a decade unlike credit cards but UBL and many other banks are leading the market and

hence consumers are more loyal to them and will continue unless Union Bank upgrades its Autos

Financing System by focusing consumers.

Lack of Promotional Activities

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Union Banks Services and products are excellent but I feel that there is a lack of appropriate promotion of

these innovative products and services e.g. being an American Express card holder, I did not know that

Ufone and Union Bank has special alliance that facilitates to avail free Ufone connections and Ufone

special packages with International Roaming, GPRS, and MMS including security deposit waivers to the

American Express card holders till now when I had to do a little research for my report.

Union Bank mostly targets its existing customers and relies on its sales executives and personal bankers

to make new customers. With a little spending in promotional activities such as advertisement, through TV

media and Radio, which are rapidly gaining new grounds in Pakistan, it can attract a large number of

consumers who are unaware of such existence of services.

Conflicts Among Employees

Conflicts among employees are bad for any organization. They not only affect the work efficiency of

employees involved but of other colleagues as well and certainly the organization. Though employees

work together towards cooperation goal but being an intern, I felt the tension in the environment and

disliked it. Conflicts must be resolved, reported and investigated to enhance a peaceful and friendly

environment.

High Staff Turnover in the Banking Sector

Turnover rate in the banking sector is a little higher than other sectors. Union Bank spends much on its

human resources and when a trained employee leaves the organization, it is as if the Bank has got

deprived from its valuable asset. Union Bank needs to put more concentration on its human resources by

providing more attractive incentives.

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OPPORTUNITIES

Growing Credit Cards Market

The current level of information technology and its application, though on the increase, is rather limited in

Pakistan’s financial services industry. Credit cards as well as ATMs are relatively new concepts in the

local market and have recently been recognized as profitable business lines by the local banking sector.

Acceptability of credit card transactions in Pakistan is growing. Over the last two years, credit cards have

been able to penetrate the middle and upper income salaried class primarily. These markets still have far

greater potential for growth and no doubt, in coming days, this business will flourish a lot and Union Bank

is already on its way in gaining an edge in this business.

International Emerging Markets of Africa, Asia, the Middle East, and Eastern Europe

Though Union Bank has successfully established international operations in Sri Lanka where it was

warmly welcomed. Union Bank’s strategy is to diversify into emerging markets and this strategy can work

wonders in the International emerging markets in Banking Sector. As Mr. Shaukat Tarin, President and

CEO of Union Bank said,

“We are going to go mostly to emerging markets because that is where

opportunity lies. I don't think we should go and compete with the best banks

in the U.S. and in Europe because our strength will be in the emerging

markets of Africa, Asia, the Middle East, or Eastern Europe. So first we will

go to these emerging markets and will try to replicate what we are doing here

in Pakistan”

Changes in Society Beneficial to Banking Sector

A drastic change in Pakistani society is its awareness to computer technology and its perks especially in

middle and upper class. Pakistan still has limited net penetration but it promises to increase in the next

few years as IT education becomes more common and use of computers at home and workplace

increases. This all leads to significant impact on banks when people would soon prefer internet banking

access in there homes which is right now in embryonic stage. Union Bank has already taken the first step

towards this Internet Banking that will proof useful in future competition. However it still needs to do a lot

more and should plan of providing easier to use and sophisticated online platforms to its customers.

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THREATS

Dominance of Large Local Banks

The dominance of the five large banks (NBP, HBL, UBL, ABL and MCB) in the domestic banking industry

is obvious given the size of their branch networks from where they are able to generate large amounts of

cheap and stable deposits.

They are also able to attract the most profitable clientele - the middle class businessmen - who require

services, which demand the banks to maintain widespread presence in Pakistan. When we compare,

Union Bank that is a private sector bank, its operations are too small to justify such a large presence. The

strength of these banks in terms of deposit generation may only be challenged in the event of a

substantial consolidation in the private sector.

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MARKETING STRATEGIES

Union Bank strongly believes in “winning the customer by winning his heart” through complete satisfaction

of his/her needs. Union bank’s marketing strategies are more towards making their existing customers

loyal because they believe that it is their customers who provide them with new customers. Union Bank

uses KYC (Know your customer forms) to have complete association with their new customers.

DEPOSITS

Target Market

Personal Bankers target markets include businessmen, salaried individuals, housewives, retired

individuals and anyone who has the potential of providing legal deposits to the bank.

Promotional Strategies

Promotional marketing has various types; from what I can recall there is direct marketing and indirect

marketing. Direct marketing is a discipline within marketing that involves the planned recording, analysis

and tracking of individual customers’ response and transactions for the purpose of developing and

prolonging mutually profitable customer relationship.

Direct marketing is a form of marketing that attempts to send its messages directly to consumers using

“addressable” media, such as mail and (increasingly email), telephone and personal meeting with

customers. Therefore, direct marketing differs from regular advertising in that it does not place its

messages in a third party medium, or in the public market, such as billboard to a radio commercial would.

Instead, the marketing of the service or commodity is addressed directly to the target customer

On the other hand indirect marketing includes such types of advertising tools like billboards, TV

commercials where no immediate response can be seen neither can be measured. No matter what the

promotional strategy, as Mr. Kashif, Team Manager of Credit Cards Department in Consumer Banking

said

“A successful product or service means nothing unless the benefit of such a

service can be communicated clearly to the target market”

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Union Banks promotional strategies consist of

Public Relations

Union Bank strongly aims to develop positive relationship with public. Union Bank donated Rs.18 Million

to the President’s Relief Fund for Earthquake Victims in 2005.

Direct Mail

There has been a massive growth in direct mail campaigns over the last few years. Union Bank has

complete databases, which contain names and addresses of potential customers.

Direct mail allows Union Bank to use their resources more effectively by allowing them to send publicity

material to a named person within their target segment. By personalizing advertising, response rates

increase thus increasing the chance of improving business.

Internet Promotion

Owning a website is a now a crucial ingredient to the marketing mix strategy of any organization. Union

Bank’s customers can now obtain instant information on products or services to aid them in their crucial

decision. Further Union Bank also facilitates its customers through I-Banking. Customer can register on

the web site and can enjoy a host of services.

Personal Selling (Push Strategy)

The foremost Promotional Strategy of Union Bank is Personal Selling i.e. Selling a products one to one.

Direct Marketing

Personal Bankers at Union Bank, whose primary job is to bring more and more deposits to the

bank, make use of Direct Marketing techniques. First of all these PBs identify their sources from

the reference groups and track down their likely to be customers. According to a PB Mr. Rab

Nawaz at Union Bank,

“It is all a matter of keeping your eyes and ears open. While meeting with a

potential customer, it is most likely that you can get a new reference for a

new customer”

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Once they get a reference from their existing customer or relative or colleague, they try to get as

much information as possible about their potential customer. Then they give a call to the

customer and try to convince him/her over the phone. Customers with greater potential are asked

for appointments for a face-to-face meeting.

Customers who provide the bank with heavy deposits are given special treatment. It is common

for the Branch Manage Mr. Khaqaan Manzoor to give formal meals in restaurants to such

customers.

Product Strategies

Augmented Product

With every new account opened, Union Bank provides a free chequebook and a free debit/shopping card.

Other than that, if a customer maintains an average balance of one lac, he/she has the facility of making

two DDs free of any charge.

Augmented Personalized Services

Personal bankers are dedicated to provide with the best possible attention, advice and services to their

customers aside from regular.

CREDIT CARDS

Push Promotional Strategy

Union Bank makes use of push promotional strategy to promote the credit cards business. Through this

promotional strategy, Union Bank makes use of its sales force and trade promotion activities to create

consumer demand for credit cards.

Mission Statement

“To create superior value for our customers through exceptional service

delivery and innovative payment product concepts while leveraging our

partners’ global expertise and infrastructure, meeting the life-stage needs of

our target market”

Positioning

The Credit Card meets the everyday usage needs of financially responsible consumers who desire the

flexibility offered by the credit cards. It provides the high level of quality customer service.

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Target Market

The Credit Cards are targeted towards customers who are financially responsible, middle and upper

income consumers who seek greater financial flexibility, a mix of local and global services and support

and demand a high level of quality and service

Target Market Profile

Aspirant

Financially responsible

Need for financial flexibility

Price and image conscious

High everyday retail use, as well as local travel and entertainment use

Approved Cities

Karachi

Lahore

Islamabad

Others (All Cities where Union Bank Branches exist along with Collection and Verification

infrastructure)

Risky Categories

Property Dealers/ Real Estate Investors

Agriculturists/ Politicians/ Landlords (can consider if exporters/business)

Manpower Suppliers / Overseas Employment Agencies

Expatriates

Non-Resident Pakistani’s

Lawyers/ Journalists (exceptional approval only by Credit Manager/ Business Head)

IT Schools (exceptions include multinational collaborations like NCR, Microsoft and schools operating

for more than 2 years.)

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BUSINESS PROCESS ANALYSIS

Auto Financing Process

Union bank finances only new car models of 2002 or higher models. When a consumer leases a car, he

has to make the payment or installment on the 1st of every month. If the customer does not makes

payment then .1% additional interest is charged. If the customer desires to get rid of the installments then

he has to make a one-time payment plus 5% penalty. Markup rates can increase and the customer is

liable to pay it. The process of leasing a car is as follows

Step 1 - The chooses a car to be financed or leased

Step 2 - An application attached at the end of report is filled out and signed by the consumer

Step 3 - KYC form (Know you customer form) is filled out

Step 4 - The Sales Processor rechecks the documents and enters the whole information in the ATS (Auto

Tracking System).

Step 5 - This soft copy and the original file are sent to the CIU department who tries to find out objections

and reject that application.

Step 6 - If no objection is found with the provided documents and evidences, then the copy of record is

forwarded to Verification Department whereas

Step 7 - The original documents are sent to credit analysts at Lahore.

Step 8 - When credit analysts pass the case then the application and forms are sent to Karachi to COPS

department where the case is filed as pending at operation.

Step 9 - The COPS ask for legal documents. Upon receiving legal documents, the Head Office issues the

purchase order.

Step 10 - This purchase order and a dealership acceptance form are given to the customer.

The Bank makes the purchase of the car; the dealers give away two keys one goes to customer and the

other to HO (Head Office). The financed car is always insured to an insurance company for which

customer has to pay.

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The whole process is lengthy and complex and customer must get carefully as much information as

possible so as to avoid any trouble in future.

Weaknesses of this process

The process is complex and time consuming

Strict policies in Autos make the whole process very complex and unpleasant for customers. This

can result in the customer diverting to UBL (United Bank Limited) Auto Financing, which is a

major competitor of Union Bank in Autos department.

Down payment before getting the vehicle

UBL has such policies that straightly go into consumers benefit e.g. UBL receives down payment

from consumer after he takes the car home unlike Union Bank’s. Besides, if the application

rejects then the customer is refunded the down payment with Rs. 2000 deduction and customers

sometimes get frustrated on that.

Strict verification department

The VU department is adamant to reject the application. Even small grammar and spelling

mistakes or any cutting on the documents attached at the end of report could lead to sending

back the documents for correction.

Consumers Prefer Dox rather than No Dox

Nowadays, a large population of consumer prefers car financing through No Dox (No Documents)

also known as BAC (Branch Acquisition Channel). Through BAC, a consumer comes to know just

within a day whether he/she can finance a car or not. The No Dox process requires merely the

following

Last six months bank statement showing average balance as 1 lac Business proof in the form of

Partnership deed

Rental Agreement

Salary Slips

4 to 5 lac rupees deposited in Union Bank for just one week

ID Card Copy

Two Snaps

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Then I read an article in newspaper that I would like to share. The outlines are as follows

UBL Auto Financing

UBL finances over 2000 cars per month. Its car financing features are as follows

Zero Pre Payment Penalty

UBL does not charge down payment and processing charges till application is approved

PAYS (Up/Down)

PAYS is a revolutionary feature and heart of UBL’s Drive Philosophy. It provides

Consumer driven facility where customer can distribute the quantum of payments over

period of seven years on his/her own will.

Consumer gets free car tracking device

Consumer can take payment holidays

Car Replacement Plan

This plan provides value added financing solutions to their customers this plan facilitates life

Insurance, maneuver the loan tenure and Opt for financial payment

Recommendation

Clearly, in the presence of such major leading competitor, Union Bank does not seem to get a competitive

market share in near future. Union Bank should pay more attention to its Branch Acquisition Channel with

new competing strategies and should continue the Dox Car Financing as well for there are still consumer

markets that cannot afford to arrange five lac rupees for a week.

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Autos Collection Process

Collection is defined as obtaining payments from delinquent accounts or from customers who are close to

availing the maximum of the facility allowed. Collection process continues for six months, after six months

the process becomes recovery of funds. Payers could be

Prompt payers

Good but slow payers

Willing but unable

Able but Unwilling

Delinquent Accounts

Union Bank classifies an account as delinquent when the monthly amount due is not settled on the due

date. After an account is stated as delinquent, special efforts are needed to be carried out for collection.

1-29 DPD is equal to 1 payment due (Front Range)

30-59 is equal to 2 payments due (Mid Range)

60-89 is equal to 3 payments due

90-119 is equal to 4 payments due

120 onwards is equal to 5 payments due

Collection could be In-house or external as follows

In-house Collection

In-house collection can be made through

Telephone calls

Letter Dunning (Delinquent payment letters are generated according to the type of delinquency)

Visits; Customer walks in (Customer may wish to visit and meet with RCM Regional Collection Manager)

External Collection

When In-house fails, legitimate process is carried out which follows repossession in which physical

confiscation of the asset is carried out after legal notice has been sent.

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Collection department performs the following

They enforce customers to make payments

If more than three payments are over due, the vehicle is captured in possession.

If customer agrees to pay then amount charged is outstanding payments plus extra charges.

Otherwise auction is carried out.

If after auction, dues still remain to be paid by the unwilling customer then court case can be

registered against consumer.

If a customer does not pays on due date he/she can becomes a defaulter at CIB.

CIB (Credit investigation beaureu)

If a customer does not make due payments for three months, he/she becomes a defaulter and his name

is sent to CIB. Afterwards if the customer pays then his name can be removed from defaulter list. Every

bank to identify its new customer as good or bad refers the defaulter list.

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Voucher Audit Process

Verification of Transactions Made By Cashiers

Every morning, the voucher audit process start from the submission of debit and credit vouchers of the

previous day by cashiers at the back office. The head office sends the printout of TRL to all Union Bank

Branches. This TRL contains the transactions made by cashiers. The order of the transactions listed is by

the account numbers. So upon receiving the vouchers, the following steps are carried out.

Separation of vouchers of this branch and other branches

Arranging both vouchers in ascending order according to account numbers.

Matching the vouchers one by one with the related transaction in the transaction list.

The following things must match for credit vouchers.

The account title on the credit voucher must match with the title on the TRL.

The amount written on the credit voucher must match with the one written on TRL.

If deposit is through cheque of Union Bank then the cheque number written on credit voucher

must match with the one written on TRL.

If all these things match this means that the entry made by the cashier was correct. While carrying out this

process, the credit vouchers are examined carefully for any errors. The following things are examined

The date entered on the credit voucher must be correct

Account number is entered correctly

If the payment is through cheque, cheque number must be mentioned

The amount written in numbers must match with the amount written in words

There must be no cutting or over writing

Other than this, stamps are checked

Every credit voucher must contain the uploaded stamp

If payment was made through cash then cash received stamp must be there

All credit vouchers must contain the signature verification stamp

If credit voucher is for transfer, then transfer stamp must be there

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Credit voucher must contain the clearing stamp if the instrument presented for funds deposit is of

some other bank

Related signatures of cashiers must be there

The following are needed to be matched for debit vouchers.

The account title on the debit voucher must match with the title on the JRC.

The cheque number on JRC must match with the one on debit voucher.

The amount written on debit voucher must be the same as on JRC

While carrying out this process, the debit vouchers are checked carefully for any errors. The following are

checked carefully.

Cheques must not be post dated

Cheques must not be staled

All required stamps must be there

The amount written in numbers must match with the amount written in words

There must be no cutting or over writing

If there is any sort of over writing, customers’ signature must be taken near that area

Other than this, the following stamps are checked

If the cheque is crossed, this means that the amount specified on the cheque can only be

transferred to another account and cash cannot be paid. If there is crossing stamp on the cheque

then there must be payees account credited stamp at the back.

If the cheque is not crossed and was presented at Union Bank then cash paid stamp must be

there.

If the cheque carries some other banks stamp then it must also have clearing stamp on it for that

cheque had come to union bank after passing through clearing process.

If the cheque contains a clearing stamp then it must also contain Received for final realization

stamp

Signature verification stamp must be there

If the account title written on the cheque is of some company then it must also carry the company

stamp.

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LEARNING AS A STUDENT INTERN

I started my internship at Union Bank on 17th July 2006. I reported at the University Road Branch promptly

at 9:00 am in the morning where I had an orientation and then I was placed at the Customer services

Department .I was to report to OM, Ms. Riffat Aisha, and during my working tenure she supervised me as

well.

DUTIES

During my internship period at Union Bank, initially I was assigned no particular duties. It was if I had

found some modern archeological plot equipped with knowledge. It was completely up to me how much I

could dig out according to my strength and capabilities. But still there were some regular duties that I was

needed to accomplish efficiently and with great responsibility as follows.

Vouchers Audit

One of my regular duties was to carry out the audit of debit and credit vouchers. This department comes

under Mr. Saeed Ather who is Operations Control Officer at Union Bank and I worked under his

supervision. Audit of vouchers is a lengthy and tedious and hence wearisome process. It requires

constant attention and any negligence can lead to fanatic situation.

Firstly we have to sort all the vouchers in the same order as it appears on the TRL (Transaction List) so

that it could become easier to match the vouchers with their corresponding entry on the list. Once sorted,

each and every voucher is carefully examined for stamps and signatures and also that none are post

dated or stale. After satisfying ones self, the transaction on the TRL is underlined.

Any objection in the vouchers is reported and is taken care of accordingly. The purpose of matching is to

make sure the cashier did not miss anything and all the transactions were made correctly.

In the end, the transaction list is revised to make sure that no transactions were overlooked and that

every transaction that appears on the TRL is underlined, a transaction that is not underlined suggests that

the related voucher is missing.

23

My job as CRO (Customer Relationship Officer)

My job as CRO was a completely new and exciting experience. CRO is a person who interacts with every

customer who steps into the bank and guides him/her according to his need and business. I do not think I

have interacted with such large number of people as CRO in these six weeks than in my whole life.

As CRO, I learnt a lot of things, not only work related or career related but things, which are good for

one’s character as well. For instance in my experience I learnt how to be patient when dealing with

customers, it became so irritating at times. But then looking around, and seeing how the other colleagues

worked with customers everyday and observing their tactics made me realize the art.

Every customer who arrives at the Bank needs a different treatment because different customers belong

to diverse backgrounds and set of values and beliefs. Some are educated, others uneducated and cannot

even write, some are rude, other are cooperative and polite, some are in urgent need while others are

more trivial, some need an outstanding treatment and are fully aware of their rights as customers whereas

others are afraid of asking even for their rights. I had to interact with all and guide them.

I also guided customers who interacted through phone and this requires immediate feedback, good

communication, quick thinking and fast decision-making skills. This interaction with so many people built

huge confidence in me.

I also maintained the record of outward and inward mails, which included OBC as well, that are received

on daily basis. The gain of such record is that we could always trace back whether a mail was dispatched

or not in times of uncertainty.

Maintaining CBR, CBI and Debit Cards Record

During my internship, I worked in CRD (Customer Relationship Department) under the direct supervision

of Ms. Saima Iqbal who serves as Customer Relationship Manager at Union Bank. I was also assigned

the duty of maintaining the record of chequebooks and shopping cards. Chequebooks arrive from Head

Office at Karachi on daily basis upon receiving chequebook requests. The request is received on CBR

(chequebook request form) from customer. All the requests at the end of the day are sent to head office

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through Union Bank’s special online system OSMS. The next day, chequebooks arrive through courier

service. An entry is made in OSMS confirming that chequebooks have arrived.

The record of these received chequebooks is maintained manually in a register to take customers

signature upon receiving. The customers are informed through telephone to come and collect their

chequebooks. Upon customer arrival, CBI (chequebook issuance) that is in the chequebook is signed by

the customer and is kept safely for record whereas the CBR initially given by customer is returned

because CRD does not need it any more. Another signature of customer is taken on chequebook register.

A customer can also authorize a person to collect his/her chequebook if he/she cannot come in person.

The account holder fills out an authorization form and authorized person ID card is submitted and

signatures of both are taken. The authority holder can be one time or full time.

Rests of the chequebooks that are not delivered on that day are kept safely in the locker room. If a

customer does not come to collect his chequebook within 90 days, they must be destroyed. Ten days

before destruction, the customers are again informed to receive their chequebooks. The process of

destruction is carried out on 1st and 16th of every month.

I was also to maintain the record of VISA shopping debit cards. Debit cards requests are received on

Shopping Card request form attached at the end of report. These request are handled just like

chequebooks requests difference is that debit cards must be destroyed within 40 days from the date of

issue.

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ACCOMPLISHMENTS

New knowledge acquired

The core of my internship was the knowledge I acquired. Being Computer Science graduate and

completely supported and helped by my family, I never felt the need to even step into a bank and open an

account. I was entirely ignorant of a bank’s business processes. But this internship program has made me

aware of most of bank’s business processes and hence it has built in me, immense confidence to step

into bank and carry out the routine banking tasks.

New exposure

My internship experience has given me a completely new industry exposure in the banking sector, which

includes both the consumer banking and branch banking. After graduation, I strived to have some

professional experience so that I could overcome my weakness of hesitation from social circle. I can say

that for me the best thing about MBA was this social and professional exposure that I longed to have.

People Diversity

Being an introvert personality, I never had the precious experience in people diversity. During this

internship period, I interacted with so many people both customers and employees with diverse

personalities and behaviors, different age groups, some far too senior and experienced that it has given

me confidence to interact efficiently with people.

Tactful communication; A MUST

From this internship program, I have realized that the skill to communicate tactfully is the thing we should

learn and polish, especially in dealing with customers. It is not the most important if you don’t have the

required skills at this moment. Rather, being creative in problem solving and being a quick learner are the

keys to success in the fast growing banking sector.

Another important thing regarding communication that I have learnt is; no matter how far we go in

adopting English language; practically and within organizations, staff prefer to communicate in their

mother language i.e. Urdu, because their priority is to efficiently complete the work to attain the corporate

goal of the organization in minimum time and they simply do not let formalities come in their way because

actions speak louder than words.

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Working towards corporation goal

During my internship, in the last weeks, I started to feel part of that organization. I actually felt working for

that organization though I was merely an intern. Techniques like how to work towards the corporation

goal, tackle a problem, are not something that can be taught in classrooms and this internship has

definitely trained me in it.

Larger social circle

I have come to know and be respected by a number of professionals who are lending their services to the

banking sector for more than a decade. I feel honored that I have worked with such seasoned

professionals and have experienced broader social awareness.

Self-discoveries

During my internship period, I self discovered that I could interact well with difficult people and that I have

the tendency of being liked by other people, which is because I believe that to earn respect, one should

give respect. Moreover people find me their secret holder and trust me and that is perhaps because of my

simple rule, which is “no backbiting”.

Career Awareness

This program was a career awareness program as well in the sense that it helped me in identifying my

interests. What I have identified is that I want to do some thing dynamic and not an assembly line kind of

job. Moreover, I have found that in Pakistan, it doesn’t matter what is your field of education meaning that

as long as you have the slightest idea of job in hand and you are an active learner, you can work

wonders.

Opening up new horizons

I must admit that such interaction in that respectable professional community will help me in seeking out

job opportunities. All this experience has transformed me into a mature person with multiple perspectives

and has put me one step forward to a better career, and also broadened my horizon.

Confidence building

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One thing I lacked and strived for was the lack of confidence in interacting in a professional environment.

Union Bank’s supportive culture made me feel comfortable talking to my superiors regarding problems

encountered at work. I learnt to always be responsible and have the sense of ownership when problems

appear. This all has definitely helped me build up confidence and had made me well equipped for my

career.

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PROBLEMS ENCOUNTERED

Difficult time in getting used to new environment

Initially I had difficult time in mixing with organization members and felt uncomfortable in that new place

with new people. However, after some time, I became a part of it just like everyone else and felt

completely comfortable.

Working Ladies Still Not Respected

Second problem that I encountered is very common in our society and that is women are assaulted

emotionally; though trend of working women has immensely increased in our society and people have

started to accept a lady working on a descent job outside her home but unfortunately, we know too well

that our society, culture, and citizens live and function far from ideal.

I must briefly quote here the actual incident that took place; an officer simply refused to guide an intern

because apparently she was a female and her presence was not welcomed in his office. It does not

matter whether he actually meant it or not, his statement hurt the intern emotionally and for the time being

she was ready to leave internship. Then another intern was remarked on having her hair lose.

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NEW KNOWLEDGE ACQUIRED

During my internship, I came across with an attention-grabbing issue of money laundering. I studied it and

it is briefly described as follows

Money Laundering

Money laundry covers activities and procedures to change the identity of illegally obtained money so that

it appears to have originated from legitimate source. Money laundering encompasses moving the money

back and forth in financial institutions to hide the money's

Origin

Ownership

Character, which is tried to be changed from illegal to legal

Generation of Illegal Wealth

Illegal wealth can be generated from

Drug Trafficking

Robbery to Theft

Tax Evasion

Smuggling

Terrorism

Profits derived from environmental violations

Three Basic Stages in Money Laundering

Placement

Placement is carried out by splitting of large sums into smaller amounts known as smurfing and

Deposited into bank accounts.

Used to buy financial instruments e.g. cheques, securities in the name of front man

Collected through accounts in other banks

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Layering

Complex financial transactions are carried out that separate the money from its source. Each

transaction on its own appears innocent such as

Purchasing assets Gold/Fine Arts

Purchase of Traveler cheques or Stocks or Bonds

Integration

Money is brought back into legal economy to benefit criminals who created this wealth in the first

place.

How to Control It

By monitoring card transactions

Reliability of staff handling cash

Transactions that do not make any economic sense

Customers with large number of accounts with the same bank

Transactions in which assets are withdrawn immediately after depositing

Account shows virtually no normal, personal or business related activity but is used to

receive or withdraw large sums

Through KYC (Know Your Customer)

Trust Worthy Third Party

Purchasing or selling of foreign currencies or substantial amounts by cash

Purchase of large number of cheques by an interim customer

Who are Customers and Non Customers?

Union Bank keeps the distinction between customers and non-customers. According to Union Bank,

individuals who possess account with Union Bank are their customers and those who do not are non-

customers. To become a customer, an individual opens an account with Union Bank as follows.

How an Account opens?

Account opening is the first step towards establishing banker-customer relationship. A written contract in

the form of Account Opening Form (AOF) attached at the end of report must be completed and signed by

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the customer who desires to open an account with the bank. The customer submits the required

information and submits the required documents.

Once all the required information is completed, the personal banker rechecks the information, gets the

required signatures from OM or BM and enters the mandatory information in the MOCHA information

system. MOCHA system provides a unique account number that is provided to the account holder. Then

an initial deposit slip is prepared so that the customer can make the first deposit.

How to make a deposit?

To make a deposit, customer needs to fill out a deposit slip attached at the end of report. Deposit can be

made through cash, cheque or draft. When the customer’s desired account is actually debited, depends

on the nature of instrument presented. For example if the cheque presented needs to be launched in

clearing then the transaction cannot take place immediately as in the case of cash deposit or Union Bank

crossed cheque deposit. Deposit voucher is marked with a number of stamps and can be signed by a

number of employees. A deposit voucher must not contain any over writing or extra markings. During

audit of deposit vouchers, a number of things must be carefully checked.

During my duty as CRO, I was surprised to the fact that a number of customers do not know how to fill

their deposit slips. Though it is not the duty of CRO to fill the deposit slips for customers but there is no

other option. Besides, deposit works as blood in the veins of Bank. I used to make sure that the account

number in which deposit is to be made is correctly written as told by the customer and used to urge them

to verify it before presenting it on the cash counter.

What is MOCHA Information System?

MOCHA information System is software designed specifically keeping in view the needs of Union Bank

Limited. This SW acts as the vertebral column of this organization. The sensitivity of this SW can be

judges by the fact that I was not allowed to capture a screen shot of this sophisticated SW. The

employees are well aware of the fact that this SW plays a vital role in the competition in banking sector.

This SW is used to open an account electronically. Once all the information is entered in the system, it

allots a distinctive number, which is to be quoted in all correspondence with the Bank relating to the

account.

MOCHA SW keeps history of all the transactions performed on an account. It maintains and manages all

the functions related to an account such as the balance remained in an account, time and amount of

transactions carried out, average balance of an account, customer details, customer contact details, the

serial number of cheques utilized by a customer.

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Each and every computer terminal in the organization is installed with this SW with some limited access

according to the department. Each and every input in the system made; can be seen at any Union Bank

branch all over the Pakistan. Through this SW, Union Bank is competing in the war of real time online

baking systems.

This system is efficiently maintained and secured by the IT department. Customers’ inquiries about their

accounts are answered by getting the desired information from this system. This system not only

manages customer accounts information rather it is a complete accounting information system and is

used to maintain and manage all the accounts of the organization as well.

Only the authorized employees have access to this system. Entering a valid combination of user name

and password can access MOCHA system.

How inquires about account balances are handled?

Customers can inquire about their account related information by providing the account number on phone

or by coming in person. Customer satisfaction is priority of Union Bank. The culture of Union Bank is to

receive the phone call in maximum three rings. This culture helps Union Bank to maintain its position as a

leader in providing best customer services in banking sector.

Debit Card / Shopping Card

When a customer opens an account with Union Bank, he/she can request for a shopping card free of

charge for the first time. This shopping card can be used 24 hours to withdraw cash through ATM

machine. The request for shopping card is sent to the head office Karachi, where they are produced and

delivered to different branches. The maximum cash of 25000 can be withdrawal in a day through ATM or

debit card. The maximum limit of cash withdrawal depends on how much customer deposits in his/her

account.

What is a Bank Statement?

A bank statement is a statement that contains past transactions carried out on an account in a specific

time period.

How Bank Statement Requests are fulfilled?

Union Bank issues bank statements to all account holders after six months time period. Other than that, a

customer can get a bank statement any time upon request by filling out a bank statement issuance

request attached at the end of report, the presence of account holder or an authorized person is

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mandatory. After the request is verified, the statement is printed out on the spot. The whole procedure

takes less than five minutes on average at Union Bank.

What is intimation regarding change of address of A/C numbers?

When a customer opens an account, his/her mailing address is fed into system for contact purposes. If

the customer needs to change his/her contact address, he/she is to fill the request regarding change of

address. The request is sent to he Head Office where the address is changed in the system.

What is CTL Program?

CTL program is used to track credit cards payments. The credit cards department has this program

installed in computers. Through CTL, collection department can inform the customer of each and every

transaction he made and where it was made or can check the amounts deposited on specific dates by the

customer. All the merchant machines around the globe are interconnected. That is how the customer

transactions can be traced out.

Lockers

There are three types of lockers small, medium and large, to rent a locker, customer has to fill a request

form, locker can be a joint locker of up to four individuals or it can be individual. In case of joint, signatures

and IDs and presence of all locker candidates is compulsory.

For every locker, customer has to submit a key deposit amount of Rs. 1500 for once which is non

refundable and also lien; Lien is an advance amount of 3xLockerRent that is refundable upon locker

surrender. Then there is annual fee of amount according to the type of locker. If customer does not submit

this fee, a monthly fee of Rs.100 is charged unless customer does not pay.

Lien against locker rent

Lien is an advance amount of 3xLockerRent that is refundable upon locker surrender.

Locker Keys

Inserting two keys can open every locker. One of the keys is kept with locker holder, whereas the CRM

keeps other one in custody.

Locker Breaking Charges

If a customer loses his/her locker key, that locker's lock has to be replaced by a new one with new keys.

Locker breaking charges are charged to the customer.

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Locker Surrender

When a customer no longer wants to keep the locker, he/she has to surrender it. After surrender, the key

is put into pending which means that this locker cannot be rented to any customer unless a new lock of

the locker is placed with new keys.

Lockers with lost locker holders

If the annual fee is not submitted for 10 years, in that case the belongings are handed over to the State

bank of Pakistan.

Free Locker

If a customer is an account holder and he maintains an average minimum balance of 1 million, then a free

locker is granted.

OSMS (Operations and Services Management System)

Stop Payment

Stop payment instructions are accepted subject to the condition that item has not been paid. To stop

payment through an instrument, customer fills out a stop payment request attached at the end of report.

The instrument numbers are entered in the MOCHA system as soon as possible.

Vernacular Form (Letter of Authority)

If customer signatures differ a bit every time he signs then a vernacular form is signed by the customer

which states that the customer takes the responsibility if something goes wrong due to signature

mismatch.

Drop Box

A drop box is used so that customer does not have to wait to make monthly payments credit cards.

Instead the customer can make payment of the AMX or Visa card or leasing installments by dropping the

cheque and attached deposit slip in the drop box and can leave immediately.

Types of accounts

To open any account, a different set of documents and proofs are required

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Individual Account

An individual account is the property of only a single individual and hence only that individual’s

signature or presence is required to carry out certain activities.

Joint Account

Two or maximum four individuals possess joint account. In this case, it is possible that one of the

two individuals can carry out the transactions with his authority alone.

Sole Proprietor Account

This account requires Rubber Stamp, CNIC, request for opening sole proprietor account on firm's

letterhead and NTN certificate.

Partnership account

This account requires Rubber stamp, List of partners, Partnership deed, Registration of

Partnership, request for opening sole proprietor account on firm's letterhead and NTN certificate

Company Account

This account requires Memorandum of Association, Article of Association, List of Directors,

Certificate of Commencement of Business (only for Public limited companies), NTN certificate,

Rubber Stamp, Board Resolution, NIC of all Directors and Registration of Company.

Association/Trust/Club/Society Account

This type of account requires NIC, Rubber Stamp, List of Members, Resolution, Copy of Rules,

and Copy of By-Laws.

Types of Cheques

Self or Bearer

A self or bearer cheque is a type of cheque that can be cashed. The person who presents the

cheque is paid the amount written on the cheque.

Crossed Cheques

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Crossed cheques can only be transferred into an account. They cannot be cashed. There are two

types of crossed cheques.

Simple Crossing

These instruments can be used by anyone, however the bearer of cheque will not be paid

cash instead the amount will be transferred in the account mentioned by the bearer.

Special Crossing

In Special Crossing, account title and account number are mentioned and the cheque

can be deposited only in the payees account.

Order cheque

In order cheques, the name of person is mentioned who is eligible to get cash, the person has to

show NIC to get the cash.

Stale Cheque

A cheque is stale if it has completed its six months limit and it sort of expires and cannot be presented for

withdrawal.

Post-Dated Cheque

A cheque is post dated if it is presented but it face date is some future date.

Clearing Process

Clearing is a process that is carried out in order to verify that the cheque presented is collectable and the

account holder of that cheque maintains the balance that is written on the cheque. This process involves

Presentation of cheque on cash counter

Stamping

Posting of shadow entries

Printing of JRC of shadow entries

Sorting of cheques according to banks

Verification by comparing actual cheques received and that on the JRC and

Making of outward/inward clearing sheet

Verification of balance by matching manual and computer generated figures

All Banks representatives meet at National Bank in Sargodha where the clearing process continues.

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OBC (Outward Billing Collection)

Outward billing collection is the same as clearing except that the cheques are received from other union

bank's branches located in different cities so that they can be launched in clearing locally.

IBC or Inward Clearing

When union bank's cheques are launched in clearing by other banks in the same city, they are received

by union bank as IBC at National Bank Limited.

Cheque Returned Memo

If a transaction cannot be carried out for a cheque presented, because of any reason, the cheque is

returned along with an attached memo attached at the end of report. The memo contains the reason for

return of that cheque.

Dishonored cheque

If account holder gives a person a cheque, such that the person cannot draw it due to insufficient balance

and the cheque returns with memo, it is the right of that person to register FIR against that account

holder. However, to register FIR, he/she must provide at least three consecutive memos.

Funds can be transferred through following security leaves

Pay order

To transfer funds within the city, an account holder can make use pay order. The advantage of

pay order against cheques is that the bank gets involve at two points. At first the pay order has to

be made from bank and the second point where the pay order will be presented for withdrawal.

Pay order is used to transfer funds in the account of the beneficiary however, if the account does

not exist then the signatures of two bank officers are required to cancel the effect of payee's

account only.

Demand Draft (DD)

The difference between pay order and DD is that, DD is used to transfer funds between cities.

Telegraphic Transfer (TT)

Telegraphic transfer is a fast way to complete transaction. To make TT, .1 % of the amount

transferred or 200, which ever is higher, is charged to the customer. The customer fills out funds

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transfer request form and pays cash. Suppose a person who has to receive the cash (TT) resides

in Islamabad, the Union Bank Sargodha will make a call to Union Bank Islamabad to give a

specified amount on funds transfer form to the person whose name was mentioned on the funds

transfer request form. The Union Bank Islamabad gives away the amount to that person by

keeping a copy of his ID card.

Traveler’s cheque

If a person needs to travel and he does not want to carry a heavy cash amount, he/she can make

a traveler cheque from a bank. This cheque can then be cashed from any branch in another city

of the same bank

Stamp Paper

Proprietorship deed is taken on stamp paper. There are different worth of stamp papers. Before 1999 the

deed was taken on stamp paper worth Rs. 150. After 1999 it is taken on Rs. 500 worth paper. This is so

because of government act.

Advice

In some banks, to make payments against demand draft to the beneficiary, advice is required. Advice is a

sort of code that is posted by the bank who issues the DD in first place. Any one does not know this code.

The receiver matches the advice and if matched, makes the payment to the customer. Unless advice is

not received, payment cannot be made.

Service Quality Programs

Three activities are carried out in service quality program at Union Bank

1- ISM (Internal Service Measurement)

2- MSP (Mystery shopping Program)

3- CSS (Customer Satisfaction Survey)

Through ISM, different activities are recorded whether they are performed within specified time e.g. Turn

Around time of customers at cash counter is recorded. Similarly, CRM keeps an eye that no phone should

ring more than thrice as a result of this, customers get fast response.

In MSP, a Union Bank agent arrives at bank and pretends to be a customer and checks out how he/she

was treated at the bank. Moreover, he/she also gives phone call to check the services on phone. The

shopper is equipped with hidden camera that can be used later for proving.

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The employees at the bank deal with him like their regular customer and mystery shopper reports back to

head office of his experience at the Bank.

CSS is carried out by asking different questions related to Union Bank’s services from customers.

For every quality program, there are accuracy percentages that must be maintained in order to get the

highest performance scores.

CMS (Complaint Management System)

CRM at Union Bank receives the complaints through CMS. Any complaint that is resolved must be

entered into the system so as to keep a record.

A customer complained that his balance was showing greater number of deductions than it should. CRM

produced and reviewed his bank statement. Upon reviewing, it was found that he made three transactions

of 25000. Two of them were charged .2% of the amount withdrew which was informed to the customer

and was entered into the CMS.

Service Quality Department

The service quality department checks whether the services quality is maintained for example has the

customer been served within ten minutes after getting the token? Similarly has the phone been picked up

before three rings? These checks enable Union Bank to maintain and improve their services.

Host of the Day

Every day, there is a host of the day; the duty of HOD is to check the status of things such as Branch

entrance cleanliness, Security alarm system, Mobile Jamming equipment, water dispensers, Notice

Board, Brochures Availability, Plants and Planters, All indoor lights, Trash bins and a number of other

things. The status could be satisfactory or needs improvement. If it needed improvement then what action

the host took has to be mentioned.

Video Cameras

All the activities in bank are recorded on videotapes. The videos of last twelve months are maintained and

are placed in the locker room.

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UNION BANK’S PRODUCTS

Every now and then, Union Bank offers new products to its customers. During my internship period, I

came across the following products.

Types of Accounts

Union Bank offers its customers to open different types of accounts, these include

Current Account

Current account is a deposit account subject to withdrawal on demand. This account does not bear any

interest. A maintenance fee of 200 is charged to accounts that do not maintain a minimum average

balance of 100000. Further types of current accounts are

BBA (Basic Banking Account) Account:

Basic Banking Account is a type of current account offered by keeping in view the needs of

salaried employees. There are no restrictions of maintaining the average balance amount.

However customer is restricted to that he/she can carry out only three maximum transactions on

that account in a month.

Business Account

It is a flexible current account that gives the freedom to transact wherever a business takes.

Customer can transfer his/her funds anywhere in Pakistan without the hassles of carrying Cash or

Travelers Cheques. Business accounts have the following features.

The account that moves with you

Through Business Account customer can deposit and withdraw funds from any of 53

branches across 20 cities. And Online/Real time technology allows conducting a host of

banking services in any of branches. Through Business Account customer can

Get Pay Orders/Demand Drafts anywhere in Pakistan

Can immediately access account information

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Faster cheque clearing

Bank at your convenience

Business Account allows customers to initiate inquiries and conduct transactions at

his/her convenience, 24 hours a day by calling at the customer contact center.

A complete banking solution

Only Business Account offers the unique flexibility of availing Trade Finance, Overdraft

and Borrowing Facilities so that customer have greater control and better access to

complete banking solutions.

UNB Saving Account

Saving account is an interest bearing account. The minimum average balance requirement of saving

account is Rs. 100,000. It is the latest addition to Union Bank's ever-increasing portfolio of products. This

product offers a good rate of return and profit is paid out on a six-monthly basis.

Profit Rates

Tier Rate

Up to Rs. 100,000 0.10%

Over Rs. 100,000 1.00%

Mahana Izaafa

Mahana Izaafa is a saving account, which gives the best combination of both saving and current account.

It is a unique rupee saving account, which combines a high rate of monthly profit and flexibility of

withdrawal and convenience. The special tier structure ensures a higher profit on higher deposits. Profit is

calculated on daily basis, the higher the balance in account on a given day, the higher is the profit earned.

The profit is added to the account every month.

On opening an account, a free ATM/Debit card and a free chequebook are issued to the customer.

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Profit Rates

Tier Rate

Up to Rs. 100,000 0.10%

Above Rs. 100,000 to Rs. 500,000 1.50%

Above Rs. 500,000 to Rs. 1 Million 3.50%

Above Rs. 1 Million to Rs. 5 Million 4.25%




Above Rs. 500 Million 10.00%

Munafa Max

Munafa Max is a fixed deposit account with profit paid at maturity. The available tenures are 3 months, 6

months and 1 year. Munafa Max offers the highest rates of return.

Profit Rates

Tenor Rate

3 Months 8.00%

6 Months 9.00%

1 Year 10.00%

Max Up to One Year.

Ready Cash

Union Bank's Ready Cash is an evergreen personal line of credit that gives its

customers financial power with unmatched freedom and flexibility. Through ready

cash, customer can withdraw cash from his/her credit line using a cheque or VISA

Debit / ATM card. It offers lowest markup and no restrictions on where and how to

spend Ready Cash. Ready cash has the following features

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Instant credit up to Rs. 1 million

An instant credit line of Rs. 75,000 to Rs. 500,000 can be received upon meeting the

criteria. Credit is automatically transferred into customers Ready Cash account.

Lowest Markup

One of the distinguishing features of Ready Cash is its lowest markup.

Pay as you utilize

Ready Cash offers to pay markup only on the amount utilized for the number of days by

the customer.

Easy Settlement of the principal

Ready Cash gives the flexibility to revolve the credit line by only repaying 1.5% principal

in addition to the 1.58% mark up payment every month. The repaid principal will be

available in customer’s credit line for him/her to use again.

No penalties on early repayment

Customer is free to repay as and when he/she feels like. There are no penalties

whatsoever on early repayment.

Universal availability, Universal acceptability

Unlike a balance transfer facility, which is available only to those individuals that own a

credit card, Union bank's Ready Cash is available to all individuals that meet simple

eligibility criteria.

Autos Business

Uni Car

UNICAR is yet another product offered by Union Bank. Its greatest

flexibility is that the customer can choose from anywhere between 1 - 5

years leasing / financing period, with an additional option for an extended

6-7 years lease / finance period. Other than that, it has the following

features.

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Down Payment as low as 10%

With the UNICAR advantage, customer can make a Down Payment as low as 10% of the value of his/her

vehicle.

Cards Business

Union Bank’s Visa Shopping Card

Union Bank's Shopping Card is the Pakistan's first Visa Debit Card that is linked to

customers Union Bank Account. It combines the key elements of ATM cards, credit

cards, cheques and gives instant access to cash through local and worldwide

acceptance. With Union Bank's Shopping Card, account holders can now have

round the clock access to their Mahana Izaafa, Business Account, Savings Account, Ready Cash or

Business Power account from anywhere across Pakistan and around the world.

Union Bank's Shopping Card is the most convenient & useful way of replacing cash for everyday

purchases. Union Bank's Shopping Card is accepted at over 8,000 VISA merchants in Pakistan and over

13 million worldwide. It also functions as an ATM card and allows to withdraw cash 24 hours a day from

over 800 Union Bank, 1-Link and M-Net ATMs across Pakistan and over 864,000 VISA ATMs worldwide.

Upon opening of an account, customer can request for VISA shopping card free of charge. Additional

cards for joint account holders can be requested as well free of charge. However annual fee of Rs. 200 is

charged. Local transaction fee is NIL whereas international transaction fee is 2% of transaction amount.

VISA shopping card is sent to the customer inactive. To activate the card, customer calls 24-hour toll free

customer contact center at 0800-44-444 and gets a PIN code.

Through debit card, customer can shop up to 50,000 per day or his/her remaining account balance

whichever is less. However it also offers the option of enhancing the merchant transaction limit per day.

Besides drawing cash, customers can

Inquire about the balance in their accounts

Transfer funds between accounts maintained with Union Bank

Change PIN code

Obtain a mini account statement for the last nine transactions

Get an E-Statement every month that contains the summary of the retail and ATM transactions

on the shopping card by calling customer contact center and giving his/her Email address so that

it could be easier to track down the expenses.

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Receive global assistance while traveling overseas through Global Customer Assistance Service.

Report lost /stolen card by calling customer contact center

Union Bank’s Visa Credit Card

Union Bank’s Credit Visa Card offers a host of features as follows

Cash Back

Cash-Back Program, allows consumers to earn while they spend. Visa

cardholders are reimbursed 1% on any and all retail transactions that are

made on Union Bank VISA Credit Card. This means that they are rewarded

not through points like other credit cards in the market, but through hard

cash. Cash-Back points are redeemable at the end of each year.

3% Minimum Payment

After receiving the monthly statement, cardholder has the convenience of paying only 3% of monthly

outstanding balance by the payment due date. While other credit cards in the market require to pay at

least 5% of outstanding amount.

BTF Balance Transfer Facility

Union Bank Gold offers it customers the opportunity to pay off the outstanding amount they owe on their

other credit cards at a rate lower than what they are paying on them. The balance on other credit cards

will be transferred on their Union Gold within 24 hours. It takes three working days for the clearing of the

cheque. Customer can choose any tenure and pay just 1.67% per month.

Free Credit for 51 Days

Service charges are not accumulated up to 51 days on Union Bank Visa Card hence giving the customers

ample amount of time to make minimum or full payment due. Above all if customer chooses to pay in full

each month, then they will not be charged a service fee on the monthly outstanding amount.

Supplementary Cards

Union Bank offers up to six supplementary cards. Supplementary card transactions are clearly itemized in

monthly statements to know at a glance where the spending took place and who spent how much.

75% Cash Advance Limit

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Visa cardholders can access cash up to as much as 75% of their available credit limit at all Union Bank

ATMs and through out the world at over 864000 ATMs carrying the VISA sign.

Complimentary Travel Accident Insurance

Each time a cardholder uses VISA card to purchase airline, bus or railway tickets, he/she, spouse and

any dependent children under 23 years of age are automatically covered under Travel Accident Insurance

against any sort of accident that may befall the card holder during traveling. The coverage amount is upto

Rs. 10 Million.

O2 Assurance

O2 assurance covers loss or damage to cardholder’s home contents caused by fire, lighting, explosion,

earthquake, burglary and armed holdups, cash and jewelry (at home or on person) against burglary and

snatching, financial loss re-imbursement (wherein cardholders are entitled to claim against the fraudulent

transactions on his/her credit card), and personal accident insurance, providing cover for accidental death

and disability and loss of identification documents.

Union Bank offers two plans for insurance coverage, cardholder can avail Plan A by paying Rs. 160 per

month and Plan B by paying Rs. 215 per month.

American Express Credit Card

Instant Recognition

The American Express Credit Card is warmly welcomed at

thousands of merchant establishments in Pakistan and millions

worldwide.

Revolving Facility

American Express Credit Card offers the option of paying monthly outstanding balance in full or

over a period of time. A service charge of only 2.25% per month gives an added comfort in

managing finances every month

Balance Transfer

Card member can conveniently transfer the balances from their other credit or charge cards to the

American Express Credit Card with a balance transfer rate of 1.25% per month.

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Express Cash

Card members can use The American Express Credit Card to avail instant cash advance facility

from all branches of Union Bank in Pakistan and over 550,000 ATMs worldwide.

Travel Service Locations

American Express Credit Card has the power to redefine traveling, whether within the country or across

the globe. The dedicated staff in more than 1700 American Express Travel Service Offices in over 130

countries is readily available to assist Card members with their travel-related needs. Invaluable

assistance can be provided for travel arrangements, car rentals, local area/culture information and hotel

bookings etc.

Union Bank Online

It is a state-of-the-art customer contact center, which offers real time advantage. With Union Bank Online

customers no longer have to take time out to visit any Union Bank branch for their routine banking needs.

With just a single phone call customers can now have instant access to a wide range of Tele-banking

solutions and personalized banking services from anywhere at anytime which in turn saves money and

time.

Key Features of Union Bank Online

By using Union Bank Online, customer can:

Check his/her card and account balances

Instruct issuance of pay orders and demand drafts

Transfer funds between his/her own accounts and to a third party account

Order issuance of chequebook

Make his/her card or loan account payments

Check transaction history of his/her accounts

Get his/her account statements through fax

Receive information on various Union Bank products and services

Obtain status of his/her issued cheques

Find out status of his/her card or loan application

Request balance or reference certificate

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Get currency exchange rates

Find emergency and important numbers

Issue stop payment instructions

Register his/her comments and suggestions regarding Union Bank products and services

Report loss of his/her chequebook

HOW EXPERIENCE IMPACTS MY CAREER

My internship experience has given me a realistic preview of my field of education. Now I feel that I am

better prepared to enter the world of professional work. I have come to know and been appreciated by a

number of professionals who are lending their services to the banking sector for more than a decade. I

feel honored that I have worked with such experienced professionals. I must admit that such interaction in

this respectable professional community will help me in seeking out job opportunities in the near future.

Each task I performed was a different experience in itself. By the end of it, I must say I realize my

potentials, I have realized that earning money is not so easy after all, it takes a lot of hard work and

devotion, and not to forget time. And I now know that if I want I can make things possible, and I also know

how good it feels to having accomplished something and being appreciated for it. I definitely have learnt

things, which will impact my career and my character.

The overall experience of my internship was very good; I have learnt the sense of responsibility in its

literal meaning. I am now capable of dealing with different sort of customers, and how to be patient while

doing so. Besides this I also gained knowledge about banking which I previously lacked and many more

products being offered by the bank. So in a nutshell, this internship gave me the experience, which would

no doubt boost my confidence to work in future.

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ACRONYMS

BM - Branch Manager

OM - Operations Manager

CSD - Customers Services Department

CSM - Customer Services Manager

CSO - Customer Services Officer

CRD - Customer Relationship Department

CRM - Customer Relationship Manager

CRO - Customer Relationship Officer

PB - Personal Banker

OCO - Operations Control Officer

BAO - Branch Accounts Officer

SE - Sales Executive

SP - Sales Processor

AOF - Account Opening Form

SQD - Service Quality Department

PKR - Pakistani Currency

DPD - Days Payment Due

FKR - Foreign Currency

A/C - Account

SW - Software

ATM - Automatic Teller Machine

PIN - Personal Identification Number

CNIC - Computerized National Identity Card Number

NTN - National Tax Number

HD - Host of the Day

SPP - Simple Payment Plan

BTF - Balance Transfer Facility

TRL - Transaction List

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OBC - Outward Billing Collection

CBR - Chequebook Request

CBI - Chequebook issuance

OSMS - Operations and Services Management System

SQD - Service Quality Department

TT - Telegraphic Transfer

DD - Demand Draft

KYC - Know Your Customer

ISM - Internal Service Measurement

MSP - Mystery shopping Program

CSS - Customer Satisfaction Survey

CMS - Complaint Management System

VU - Verification Unit

UBL - United Bank Limited

CIU - Customer Inquiry Unit

BAC - Branch Acquisition Channel

ATS - Auto Tracking System

RCM - Regional Collection Manager

CIB - Credit investigation beaureu

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Union Bank

Documents

Transcript of Union Bank