An Internship Report on BRAC Bank Ltd- A Study on Castomer Satisfaction(1)

8/13/2019 An Internship Report on BRAC Bank Ltd- A Study on Castomer Satisfaction(1)

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Preface

Banks are financial institutions that

perform a very important function in the economy. In

the words of R.R. Paul, a bank is an institution

which deals with money and credit. Banks

can be classified into many types on the basis of

their functions, ownership etc. The central bank of

a country is the most authoritative

bank of all banks. This bank observes and

controls the monetary and credit system of the

country. Commercial banks are those banks that performall kinds of banking business. !amples may be, BR"C Bank #td., $outh ast

Bank #td, %ne bank etc. Industrial Banks are also termed as Investment banks.

They meet the financial needs of the industries, generally medium term and long

term. !amples of such kinds of banks may be B$R$ & Bangladesh $hilpo Rin

$angstha. "gricultural Banks meet the financial needs in the agriculture sector of a

country. !amples of this kind can be' (rameen Bank, Bangladesh )rishi Bank.

*or economic development of any country standard maintenance of banking

industry is important. *inancial condition is strongly depends on Banks. BR"C

Bank is a scheduled commercial bank established under the Bank Companies "ct

++ and incorporated as a public company limited by shares on - /ay +

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under the Companies "ct +1 in Bangladesh. The primary ob2ective of the bank

is to carry on all kinds of banking businesses. The Bank could not start its

operations till 3 4une, -+ since the activity of the Bank was suspended by the

5igh Court of Bangladesh. $ubse6uently, the Bank has started operations from 14uly, -+. "t present the Bank has -7 Branches, 08 9onal offices and 3+3 unit

offices of $/ :$mall ; /edium nterpriset a?c

holders of the bank, the goodwill and negative word of mouth of the bank and its

overall image of 6uality service are hampered. Integrating IT with the presentwork process yields an easier work process and ensures better 6uality of service.

$mooth service provision means goodwill and an image of the employees serving

and the overall bank is created. 5ence it will increase the number of deposit

accounts. "lso, a high level of attention towards customer service can be given.

Time consumption of the workflow is reduced and hence an effective service can

be provided to clients and customers.

In respect to the services marketing triangle, the Company, the employees and the

customers could work together in achieving the goals of bank.

%ne is the Company producing the goods and services, performs e!ternal

marketing and internal marketing with the customers and employees respectively.

=hile the others, are the employees and customers, conducting interactive

marketing respectively.

Providing technical training to the employees time to time and appreciating the

work performed and motivating towards better service is recommended for

internal marketing.

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Involve customers in attaining a service so that swift service can be ensured.

Creating a loyalty program for client, so that, customer can becomes client.

Informing the clients about the new services that are launched and having cordial

behavior towards the customers are recommended for !ternal and internal

marketing respectively.

Aim of the report

I am a student of BB" :/arketing< conducting internship at BR"C Bank #td.

@indaba9ar Branch. I was placed to gain a real life work e!perience for a period of

three months to find out the way it operates. The aim of this report is to provide

the reader of what flaws I have found :in conte!t of /arketing< at the appointed

branch. $ome recommendations on how these flaws can be rectified are also

provided.

Objective of the report

The ob2ectives of my report are as follows'

+. To become ac6uainted with the services provided by the BR"C Bank, ast

@indaba9ar Branch.-. To know about their marketing strategies based on seven important elements of

marketing mi!, which is control by the BR"C Bank.

3. To know about the problem and barriers they are facing in providing services.

1. To measure customer satisfaction according to the services of Bank.

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8. To know about the problem and barriers that customer are facing after having

the services and at the time of receiving the services.

0. To know what are the benefits and services that the customers are e!pecting

from the Bank.

Methodology

" wide range of literature will reviewed to gather necessary information about the

sub2ect matters of this study. These literatures include the te!ts, profile, annual

reports, documentationA different /anuals etc. The data collected for this study

was the mean s of a survey. The survey will be done on the customers and staff ofthe Bank by personal observation and interview and some data will be collected

from the 2ournal and website of BR"C Bank. " thorough and insightful

observation will be conducted on the various "dministrative, Interventional and

/arketing philosophies, approaches and practices to collect necessary

information. iscussion with the staffs and other related persons to generated

standard information for the study is also a comprising tool and also important

instructions from the pro2ect supervisor.

Collection of primary data:I have collected many of the data and information

from my practical e!perience and 6ueries from the officers while doing my

internship at BR"C Bank #imited. Information and data regarding products ;

services, banking operations, organi9ation structure, management personnel and

policies were collected from this source.

Collection of secondary data: ata regarding the operations of BR"C Bank#imited and analysis of financial statement were collected from secondary sources

like annual report, bank profile brochures, manuals and publications of BR"C

Bank #td.



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Limitations

%ne of the main limitations in conducting this research was time constraints.

!tensive research was not possible due to time constraints as well as restrictionposed by the organi9ation. "s it is internship, real life work is to be done and

hence there was an intention of doing a survey for collecting primary data. The

primary data could not be collected from other sources than observation. The

6uestionnaire illustrates an individual>s perception hence will vary from person to

person. $ometimes customer may not be interested to fill up the survey forms.



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Part "' Review on Banking and Banks

Introduction

In the year +7-, the government of Bangladesh restructured the total banking

system of the country and passed the Bank Dationali9ation %rder&7-. "ccordingly,

all the commercial banks of Bangladesh were nationali9ed and put under the

control of Bangladesh Bank :central bank of the country


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Banks are financial institutions that perform a very important function in the

economy. =e have across various kinds of banking functions in our every day life.

!amples of these could be cash from your bank account either by a che6ue or an

"T/, depositing money, paying bills and many more."ccording to Crowther, a bank Fcollects money from those who have it to spare or

who are saving it out of their incomes, and it lends this money to those who

re6uireit.G

"ccording to )inley, Fa bank is an establishment which makes to individuals such

advances of money as may be re6uired and safely made, and to which individuals

entrust money when not re6uired by them for use.G

In the words of R.R. Paul, a bank is an institution which deals with money and

credit. It accepts deposits from the public, makes the funds available to those who

need them, and helps in the remittance of money from one place to another.

"ccording to 4ohn Paget, Fno body can be a banker who does not :+< take deposit

accounts, :-< take current accounts, :3< issue and pay che6ues, :1< collects

che6ues&crossed and uncrossed for its customers.G In short, from the above, the

term Bank in the modern times refers to an institution having the following

features:

a) It deals with money. It accepts deposits and advances loans.

b) It also deals with creditA it has the ability to create credit. i.e., the ability to

e!pand its liabilities as a multiple of its reserves.

c) It is commercial institutionA it aims at earning profit.

d) It is a uni6ue financial institution that creates demand deposits which serve

as a medium of e!change and, as a result, the banks manage the payment

system of the country.

Types of banks



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Banks can be classified into many types on the basis of their functions, ownership

etc. They are'

Central Banks

The central bank of a country is the most authoritative bank of all banks. This

bank observes and controls the monetary and credit system of the country. It has

the monopoly to issue a country>s currency. But in this conte!t, the (overnment of

Bangladesh issues and supplies Tk.+ and Tk. - notes and coins only. =hile, the

central bank of our Bangladesh i.e., Bangladesh Bank issues currency notes from

Tk. 8 onwards, and coins of Tk. 8 only. Bangladesh Bank acts as an agent, a

custodian and a banker to the (overnment of Bangladesh and other commercial

banks. It performs the function of leader of last resort to the government as well as

the commercial banks.

Commercial Banks

Commercial banks are those banks that perform all kinds of banking business.

They also act as financer of trade and commerce to the general public. !amples

may be, BR"C Bank #td., $outh ast Bank #td, %ne bank etc.

nd!strial Banks

These banks are also termed as Investment banks. They meet the financial needs

of the industries, generally medium term and long term. They play a significant

role in the development of industries in the country. !amples of such kinds of

banks may be B$R$ & Bangladesh $hilpo Rin $angstha.

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Agric!lt!ral Banks

These banks are those, which meet the financial needs in the agriculture sector of a

country. !amples of this kind can be' (rameen Bank, Bangladesh )rishi Bank.

There are many more types of banks but in general it can be easier to understand if

you look at the figure.

Commercial Banking "tr!ct!re at Present

Bangladesh Bank, the central bank of the country, is the guardian of banking

institution of Bangladesh. Bangladesh Bank :BB< head office is located at

/oti2heel, haka. There are two branches in haka and there is one branch in

each division. The structure of banking system is presented in the following table.

There are four DCBs operating with HH0 average branches per bank, +3 *CBs

operating with - average branches and +3 PCBs operating with 18 averagebranches.

In Bangladesh around 78 people live in rural areas. Erban&rural ratio for DCBs

is .8 :Calculated from Juarterly $cheduled Bank $tatistics


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#ype $!mber Branches %mployee Average Branches

per Bank

Dationali9ed

Commercial Banks

1 3818 0-+ HH0

*oreign

Commercial Banks

+3 3+ +318 -

Private

Commercial Banks

- +-1 -87-7 18

Source: Economic Trends and Annual Reports of Bangladesh Bank, une !""#$

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Part & B: B'AC Bank Profile

ntrod!ction

BR"C Bank #imited, one of the latest generation of commercial banks which

started its 2ourney on the 1 th4uly -+ with a vision to be the absolute market

leader through providing the entire range of banking services suitable to the needs

of modern and dynamic banking business as well as to promote broad based

participation in the Bangladesh economy through the provision of high 6uality

banking services. The uni6ue strength of BR"C Bank lies in the fact that BR"C

one of the world>s largest private development organi9ation is its key shareholder

and the bank>s vision are thus aligned with those of BR"C D(%. BR"C Bank is

gradually growing up to establish itself in the Banking arena of Bangladesh to be

the market leader in terms of service 6uality and a trusted partner in the

development of Bangladesh. *or economic development of any country standard

maintenance of banking industry is important. *inancial condition is strongly

depends on Banks. BR"C Bank is a scheduled commercial bank established under

the Bank Companies "ct ++ and incorporated as a public company limited by

shares on - /ay + under the Companies "ct +1 in Bangladesh. The

primary ob2ective of the bank is to carry on all kinds of banking businesses. The

Bank could not start its operations till 3 4une, -+ since the activity of the Bank

was suspended by the 5igh Court of Bangladesh. $ubse6uently, the Bank has

started operations from 1 4uly, -+. "t present the Bank has 0 Branches, 8 $/

$ervice Center, +77 "T/ Booths and 1- unit offices of $/ :$mall ; /edium

nterprise


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Backgro!nd

BR"C Bank is a scheduled commercial bank established under the Banking

Companies "ct, ++ and incorporated as a public company limited by shares on

- /ay, + under the Companies "ct, +1 in Bangladesh. The primary

ob2ective of the Bank was suspended by the 5igh Court of Bangladesh.

$ubse6uently, the 2udgment of the 5igh Court was set aside and dismissed by the

"ppellate ivision of $upreme Court on 1 4une, -+ and accordingly, the Bank

has started operations from 1 4uly, -+.

BR"C Bank has a uni6ue institutional shareholding between BR"C, the largest

*% in the world, the International *inance Corporation :I*Cs footprint has grown to -7 branches,

3+3 $/ unit offices and -1 "T/ sites across the country, and the customer base

has e!panded to +, , deposit and 8, borrowers through -8. In the last

four and half years of operation, the bank has disburses over BT +, H crore in

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loans to nearly 18, small and medium entrepreneurs. The management of the

Bank believes that this sector of the economy can contribute the most to the rapid

generation of employment in Bangladesh.

The bank operates under a Fdouble bottom lineG agenda where profit and social

responsibility go hand in hand as it strives towards a poverty&free, enlightened

Bangladesh.

Company Profile

BR"C Bank #imited, with institutional shareholdings by BR"C, International

*inance Corporation :I*C< and $horecap International, has been the fastest

growing Bank in -1 and -8. The Bank operates under a Kdouble bottom lineK

agenda where profit and social responsibility go hand in hand as it strives towards

a poverty&free, enlightened Bangladesh.

" fully operational Commercial Bank, BR"C Bank focuses on pursuing

une!plored market niches in the $mall and /edium nterprise Business, which

hitherto has remained largely untapped within the country. In the last five years of

operation, the Bank has disbursed over BT +8 crore in loans to nearly 8,

small and medium entrepreneurs. The management of the Bank believes that this

sector of the economy can contribute the most to the rapid generation of

employment in Bangladesh. $ince inception in "ugust -7, the BankLs footprint

has grown to -7 branches, 38 $/ unit offices and -1 "T/ sites across the

country, and the customer base has e!panded to more than 3, deposit and

0, advance accounts through -7. In the years ahead BR"C Bank e!pects to

introduce many more services and products as well as add a wider network of

$/ unit offices, Retail Branches and "T/s across the country.

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B'AC Bank(s ision* Mission and +oal

BR"C Bank promotes broad&based participation in the Bangladesh economy

through the provision of high 6uality banking services. BR"C Bank will do this

by increasing access to economic opportunities for all individuals and business in

Bangladesh with a special focus on currently under&served enterprises and

households across the rural urban spectrum.

BR"C Bank intends to set standards as the /arket leader in Bangladesh. It will

demonstrate that a locally owned institution can provide efficient, friendly and/odern full& service banking on a profitable basis. BR"C Bank goal is to

provide mass financing to enable mass production and mass consumption, and

thereby contribute to the development of Bangladesh. The Bank>s goals are thus

aligned with those of BR"C.

%ision of the bank:BR"C Bank vision is to build a profitable and socially

responsible financial institution focused on /arkets and Businesses with growthpotential, thereby assisting its stakeholders build a 2ust, enlightened, healthy,

democratic and poverty free Bangladesh.

&ission of the bank: Corporate mission of BR"C bank are as follows'

, $ustained growth in Lsmall ; /edium nterpriseL sector.

,Continuous low cost deposit growth with controlled growth in Retained

"ssets.

,Corporate "ssets to be funded through self&liability mobili9ation.

(rowth in "ssets through $yndications and Investment in faster growing



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sectors.

,Continuous endeavor to increase fee based income.

,)eep our ebt Charges at - to maintain a steady profitable growth.

,"chieve efficient synergies between the bankLs Branches, $/ Enit

%ffices and BR"C field offices for delivery of Remittance and BankLs

other products and services.

,/anage various lines of business in a fully controlled environment with

no compromise on service 6uality.

,)eep a diverse, far flung team fully motivated and driven towards

materiali9ing the bankLs vision into reality.

'oal of the bank: BR"C Bank will be the absolute market leader in small and

medium enterprise business through out Bangladesh. It will be a world class

organi9ation in terms of service 6uality and establishing relationships that help

its customers to develop and grow successfully. It will be the Bank of choice

both for its employees and its customers, the model bank across the globe.

B'AC Bank(s Long #erm "trategy

$ummed up in a single sentence, banks long&term strategy is to go where the

market is. "s a result of the achievement of the micro&credit providers,Bangladesh now has an hour glass shaped banking market in which credit and

other limited financial services are valuable to both very large and very small

businesses and very wealthy and very poor individuals. =hile there is well&

known informal system that provides credit to businesses, virtually nothing is



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available from either banks or micro finance provider to the million the middle

businesses and individual& who are severely constrained in their ability to

produce and save for lack of access to financial resources and services. Entil

modern, competitive financial services are readily available including credit inamounts, terms and conditions that small can access, Bangladesh will not be able

to create the large middle class that is a prere6uisite to social stability.

B'AC Bank(s al!es

%ur $trength emanates from our owner & BR"C. This means, we will hold the

following values and will be guided by them as we do our 2obs. BR"C Bank holds

the following values'

, Malue the fact that we are a member of the BR"C family

,Creating an honest, open and enabling environment.

,5ave a strong customer focus and build relationships based on integrity,

superior service and mutual benefit.

,$trive for profit ; sound growth.

,=ork as a team to serve the best interest of our owners.

,Relentless in pursuit of business innovation and improvement.

,Malue and respect people and make decisions based on merit.



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,Base recognition and reward on performance.

,Responsible, trustworthy and law&abiding in all that we do.

"hareholders

BR"C Bank #imited, with institutional shareholdings by BR"C, International

*inance Corporation :I*C< and $hore cap International, has been the fastest

growing Bank in -1 and -8.

Table !:Shareholding Structure

"hareholders PercentBR"C 3+.71

I*C .8

$hore Cap International H.70

(eneral Public through IP% 1

Don&Residents Bangladeshi>s 8

/utual funds through IP% 8

#otal -../

'raph 1:Shareholding Structure

B'AC



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BR"C, a national, private organi9ation, started as an almost entirely donor funded,

small&scale relief and rehabilitation pro2ect initiated by *a9le 5asan "bed to help

the country overcome the devastation and trauma of the #iberation =ar and

focused on resettling refugees returning from India. Today, BR"C has emerged asan independent, virtually self&financed paradigm in sustainable human

development. It is one of the largest $outhern development organi9ations

employing 7,+- people, with 0+ women, and working with the twin ob2ectives

of poverty alleviation and empowerment of the poor.

0C

International *inance Corporation :I*C< is the commercial wing of =orld Bank.

Esing certain channels and overseas representatives, I*C it helps local financial

institutions find profitable ways to target small and medium si9ed companies.

*unding comes from the "sian evelopment Bank, Canada, the uropean

Commission, the Detherlands, Dorway, the Enited )ingdom and I*C itself.

I*C is a + shareholder in BR"C Bank. " new assistance program signed in

"ugust -8 aims to double the bank>s number of small and medium enterprise

clients in +H months through campaigns to target women entrepreneurs and rural

clients, introduce new products and train branch managers.

"hore Cap international

$horeCap International #td. is an international private non&profit, e6uity company

seeking to invest in small business banks and regulated micro finance institutions

in countries with developing and transitional economies. *ounded in mid -3,

$horeCap has a current base of N-H.3 million in capital commitments and seeks to

support the growth of development finance institutions in "frica, "sia and astern

urope. The institution has made investments totaling N7 million in Bangladesh,

India, Cambodia, "rmenia, /ongolia and )enya. $horeBank is a investor of

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$horeCap and runs the management company, which oversees

investmentbactivities.

$horeCap typically invests between N8, and N- million for an ownershipposition of +&-8 of a company. "s a minority shareholder, $horeCap seeks

financial institutions with a strong, e!perienced management team and a

committed set of local development&minded investors. $horeCap currently owns

+H of BR"C Bank #imited.

Capital str!ct!re

Table (:Capital Structure

"hareholder Percentage

BR"C 03

I*C +

$hore cap international +H

#otal -../

Management #eam

Table ): The Management Team of BRAC Bank

-1 mran 'ahman

C% ; /anaging irector

21 0ar!k Ahammad

5ead of *inancial "dministration

31 4aiser #ami5 Amin

Chief %perations %fficer

61 0ar5ana Cho7dh!ry

5ead of $mall ; /edium nterprise :$/s Che6ue ,$tudent *ile

,P$ "ccount

,$avings "ccount

- Phone Banking

- Corporate #oan Products'

,%verdraft

,Term #oan

,#ease *inance

,#oan "gainst Trust Receipt :#"TRs internal environment. It should be more

friendly and convenient for bothA employees ; customers.

7. Deed to improve the organi9ation>s internal culture.

In case of e.ternal marketing, the 5ead of BR"C Bank could'

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+. Involve customers in attaining a service so that swift service can be ensured.

3. Create a loyalty program for clients, so that customers can become clients.

1. e&marketing should introduce properly in regards to e!ternal marketing.

8. Regular monitoring and feedback is necessary

0. Dew products and services should introduce to serve the different market

segments.

7. Proper and updated media should use for promotional activities.

H. Co&operation between departments should strengthen and the departments

should be informed.

The mployee

In interacti"e marketingby the employees, they could perform the following'

+. Informing the clients about the new services that are launched.

-. 5aving cordial behavior towards the customers.

3. 5elping them at all possible ways in terms of banking services.

1. The employees should be well informed about the banks products and

services.

8. "lways should try to provide the best effort.



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+ap Model Analysis

igure #:Customer 0ap

The Customer (ap

!pected $ervice

Customer (ap

Perceived $ervice

The central focus of the gap model is the customer gap, the difference between

customer e!pectations and perceptions. !pectations are the reference points

customers have coming in to a service e!perienceA perceptions reflect the service

as actually received. The idea is that organi9ations will want to close this gap

between what is e!pected and what is received to satisfy their customers and

build long term relationships with them.

uring my internship I asked 3 customers of BR"C Bank, @indaba9ar branch

about their services and surprisingly most of them are satisfied with the services,

in fact some of them are delighted with the present service. The key findings of



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my small survey are as follows'

+. Customer Satisfaction: "bout 03 customers :among 3 total + customers

said they are satisfied< are satisfied with the present services provided by

C$%s.-. Slo/ Ser.ice:"bout -8 customers complain that the services are slow.

$pecially 8 customers mentioned about the service of cash counter that they

have to wait for long time to withdraw or deposit the money. %ne customer

told that he is not getting 3 /onths statement regularly, it delay sometimes but

though he mentioned that it is the problem of this branch but actually the

statement comes from head office which he may not know. "nother customer

told that he needs to wait for 3days to get a che6ue book which should not be

done because it creates problem for him. "nother customer said that he was

not clear about the services counter, i.e., specially he was confused about the

counters.

3. AT& Ser.ice: - customers complain about the "T/ services which remain

out of use most of the time. =hile another customer also told that though its

disturbing but its ok because it>s a machine and technical problem may arise

this is a part of machine. Customers also told they want more "T/s locations.

1. 0igh Ser.ice Charge:"bout 3 customers ob2ect about the service charges

which is high for the middle class people.

8. thers: %ne customer told that he is not satisfied with the $/$ service and

phone banking service also perturb for him because it>s a lengthy process and

one have to wait -?3 minutes to get the operator.

0. Ser.ice Timing:"bout 33 customers mentioned that they get the services

within 0&+ minutes. Dear about -7 customers told that they get the services



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within 3&8 minutes. - customers told that they get the services instantly

and - customers it take more than + minutes top get a service from this

branch.

*or overcoming these gaps and problems facing in delivering services my

recommendations are as follows'

The primary cause for not meeting customers> e!pectations is that the firm lacks

accurate understanding of e!actly what those e!pectations are. The provider gaps

are the underlying causes behind the customer gap'

igure 2:0aps Model

(aps /odel

(ap -Customer

Perceived $erviceCompany perceptions of consumer e!pectations

Customer&driven service designs and standards

!ternal communications to customers$ervice elivery!pected $ervice



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'ap 13 4ot kno/ing /hat customers e5pect: This gap e!ists between bank

perceptions of customers> e!pectations and what customers actually e!pect. This

branch should more focus on what customer e!pect from them. They want fastest

service, trouble&free "T/ service, minimum standard service charge, etc.

'ap !3 4ot selecting the right ser.ice designs and standards: This gap e!ists

when organi9ation does clearly understand its customers> e!pectations, but the

understanding is not properly translated into customer&driven service designs and

standards. $ome of the customers are not clear about the services counters, the

design of the counters and desks makes confused to them. "lso phone banking

services is trouble&some.



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'ap (3 4ot deli.ering to ser.ice standards: This gap arises when systems,

processes and people in place failed to ensure that service delivery actually

matches the designs and standards in place. To remove this gap the bank should

focus on on&time delivery and try to avoid creating long cue.

'ap )3 4ot matching performance to promises: This gap occur when the

promises to customers not matches with what is delivered. They should try to

deliver 3 months statement, che6ue books, cash payment, etc. as 6uickly as

possible.

Part %: Concentration of the nternship

C!stomer "ervices provided by B'AC Bank* indaba5ar branch

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Problems 0o!nd in the %Eisting "ystem

The problems e!isting in this are many and e!plained as follows'

+. The present system is time consuming both for the bankers as well as the

clients. *or instanceA in terms of bankers, the officers have to go through a

lot of files in searching the details of a particular transaction, if it is

backdated. In terms of clients, they have to wait in a long 6ueue in order to

let the officer find out the correct file.

-. In some cases not paying attention towards customers during a busy hour.

3. Customers do not receive appropriate attention. ven though these

customers aren>t a?c holders of the bank, the goodwill and negative word of

mouth of the bank and its overall image of 6uality service are hampered.

1. In this branch most of the customers does not know about the token system

and they come to the desk and then know that they have to take token andreceive the service serially.

8. Customers get impatient of waiting for a long time like +?- hour or even

more for receiving during peak times.

0. In case of foreign remittance there are times when the clients do not know

which branch are they to receive their money from and thus going to branchto branch.

*or a service business that is in operation for long term, these effects will

negatively affects the goodwill in the long run, which seems to be ha9ardous.



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$e7 Process ?esign G Opport!nity ?evelopment

ntegration of # 7ith Present Horkflo7

In order to remove the problems mentioned in the previous chapter, a new system

should be designed. This system will consist of a database containing the details of

services to be made and how the problem can resolve through computeri9ed way

without filling a form.

The new process is designed in a way, so as to utili9e the resources available

within the working environment. Resources like& technology, manpower etc.

Thus, integrating IT with the present work process integrates an easier work

process and ensures better 6uality of service.

'ationale for the Proposed $e7 Process

The possible strengths of BR"C Bank, if system is modified are'

+. "s all the services are integrated with IT, a smooth and 6uick service can be

given to clients and customers.

-. "n effective Customer Relationship /anagement :CR/< can be

maintained, which is truly important for a service organi9ation.

3. $mooth service provision means goodwill and an image of the employee

serving and the overall bank is created. 5ence it will increase the number of



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deposit accounts.

1. " high level of attention towards customer service can be given.

8. Time consumption of the workflow is reduced and hence an effective

service can be provided to clients and customers.

0. Creation of a 6uick service enhances the brand image and helps in the

course of an effective brand building.

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"HO# Analysis

"trengths:

+. Professional management team.

+. /ulti product financial institution.

+. $trong distribution channel.

+. $atisfactory IT soft and hard infrastructure.

+. $atisfactory performance.

+. "de6uate capital base

+. /arket leader in retail banking among local banks.

+. /ulti national ; institutional ownership.

+. The top management of the bank, the key strength for the BR"C Bank has

contributed heavily towards the growth and development of the bank.

+. $trong network through out the country and provide 6uality of service to

every level of customer.

+. vening banking of this branch is very helpful towards business

professionals.

+. #ocations of Branches.

+. Relationship with e!isting clients is personal base and very strong. They

have developed professional relationship with their clients, which also

includes emotional tough.

+. Installation and use of highly sophisticated, automated system that enables

the bank to have on time communication with all branches reduces

e!cessive paperwork and vanes time for valued customer transaction.

+. *rom the very beginning BR"C Bank tries to furnish their work

surroundings with modern e6uipment and facilities. %nline Banking is one

of the main attractions, which gave this bank a better position among

private Banks.

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+. The corporate culture of BR"C Bank is very much interactive compare to

our other local organi9ations. /anagement and owners :directors< share a

very good relationship.

+. The employees share a good understanding with each other and it gavethem reason to work efficiently and become more dedicated to work.

+. BR"C Bank has been founded by a group of prominent entrepreneurs of

the country, who has developed good relationship with many large

industrialists and influential people who are also large customers of the

Bank.

+. Correlation with foreign banks is very effective. They have relationship

with more than - foreign banks. The foreign Banks also give preference

to this Bank, which helps to give smooth services to the e!porter and

importer through this bank.

Heaknesses:

+. Insignificant market share.

+. ependence on high cost bearing fi!ed deposits.

+. #imited disclosure.

+. Concentrated ownership.

+. #ow non&funded business.

+. "dvertising and promotion is one of the weak points of this branch. There

is no marketing department and does not have any effective plan for

aggressive marketing activities.

+. 5igher service charge in some areas of banking operation than that of

nationali9ed banks discourages customers from opening or maintaining

accounts with this bank.

Opport!nities:



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+. 5uge untapped sub&urban and rural market $/.

+. (overnment of Bangladesh has rendered its full support to the banking

sector for a sound financial status of the country, as it is becoming one of

the vital sources of employment in the country now. $uch government

concern will facilitate and support the long&term vision for BR"C Bank.

+. The online Banking and $=I*T facility will open more scope for BR"C

Bank to reach the clients not only in Bangladesh but also in the global

arena. It will also facilitate wide area network in between the buyer and the

production unit of BR"C Bank to smooth operation to meet the desired

need with least deviation.+. The Bank can recruit e!perienced, efficient and knowledgeable workforce

as it offers attractive compensation package and good working

environment.

+. The credit facility offered by BR"C Bank has attracted security and status

conscious businessmen and as well as service holders with higher income

group.

#hreats:

+. Increased competition in the market for 6uality assets.

+. $upply gap of foreign currency.

+. efault culture is very much familiar in our country. *or a bank, it is very

harmful. "s BR"C Bank is 6uite newA it has not faced it seriously yet.

5owever as the bank grows older it might become a big problem.

+. The Central Bank e!ercises strict control over all banking activities in local

banks like BR"C Bank. $ome times the restriction impose barrier in the

normal operations and policies of the bank.

+. Rival bank can easily copy the product offering of BR"C Bank. There fore



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the bank is in continuous of product innovation to gain temporary

advantage over its competitors.

+. The worldwide trend of mergers and ac6uisition in financial institutions is

causing concentration the industry and competitors are increasing in powerin their respective areas.

+. ue to e!istence of demand in financial sector, it is e!pected that more

financial institutions will be introduced in the industry very shortly. "nd we

have already seen such cases in our country that lots of new banks are

coming in the scenario with new services. BR"C Bank should always be

prepared for the competition in the coming years.



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Problems fo!nd in B'AC Bank Limited* indaba5ar Branch

Advertising and promotion:

#ack of advertising and promotion is one of the weak points of BR"C Bank,

@indaba9ar branch. BR"C Bank #imited does not have any effective promotional

activities through advertisement, but other banks have better promotional strategy

in $ylhet.

Centrali5ation:

The Bank is too much centrali9ed. *or each and every move, branch office has to

go for permission from the 5ead %ffice. The 5ead %ffice tightly controls each and

every branch office. This sort of dependency on 5ead %ffice slows down the

activities of branch office.

nefficient 7aiting place:

In compare to customers the place for waiting? sitting areas are not sufficient, as a

result, customers have to wait by standing.

Lack of '!ral Banking:

Though there are huge opportunities of Rural Banking in potential rural areas of

$ylhet ivision, the bank is opening only urban branches in $ylhet ivision.

0e7 Merchant Locations:

There is a very few merchant location of "T/ card.



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0indings

+. The service of Brac Bank #td. is competitive and efficient comparing to the

othersA but there is significant scope of improvement.

+. The bank needs to make significant effort to improve the employee

relationship with clients.

+. The environment inside the bank needs to be improved significantly for

efficient and pleasant banking activities for the customers.

-. $teps should take to improve employee 2ob satisfaction.

+. /ore customi9ed products and service should introduce.

+. $ales team often provides inade6uate or incorrect information to the

customers.

-. To increase customer satisfaction the bank needs to improve their service

6uality by providing more importance on customer>s preference.

3. $ervice charge is relatively high than others.

1. Internet link problem hurdles the service delivery process.

8. Branch needs more personnel to ensure smooth service.

In terms of the customers, environment of the bank is 6uite ok but the services of

cash needs to more fast also more attention need to be given to the customers

when they come for foreign remittance. It>s better if different place?desk is

maintained for foreign remittance.



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'ecommendations

" bank is an institution that is to remain active for a long term. In this mean time,

if the good will of the bank is affected due to negative word of mouth and poor

servicesA ultimately a ma2or section of the customers will switch the banks because

of competitors finding the gap and filling it.

It is recommended that'

+. $teps are taken to implement the new process in order to ensure a smooth

service as promised to customers.

-. " new local brand ambassador should be used to promote BR"C Bank as a

brand.

3. mployees needed to given ade6uate training to work and handle clients

under pressure. In this case both the branch authorities and higher

authorities can persuade each other to train the employees.

1. BR"C Bank #imited should increase more Consumer Banking activity.

Their Consumer banking activity is 6uite satisfactory but it will be better if

they can put attention on individual customer.

8. BR"C Bank #imited should pursue advertisement campaign in order to

build a strong image among the local $ylheti people. They should carry out

aggressive marketing campaign to attract clients. They can give

advertisements in local newspaper and maga9ine, television and neon signs.

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0. They should invent other type of deposit to attract more customers which is

different from other banks.

7. BR"C Bank #imited should maintain more cash and deposit balances with

other banks. Because it is desirable that banks keep their cash and balance

with other bank to such e!tent so that it can minimi9e the chance of

li6uidity crunch.

H. BR"C Bank #imited should develop more strategic planning as to compete

with its rival banks.

. BR"C Bank may introduce one stop service for its client.

+. Recruit more efficient employees.

++. Increase the merchant locations of "T/ cards.

+-. "s most of the customer>s of the bank are aged between -+ to 3, the bank

should consider the products and services with fewer service charges that

are suitable for that age group. The products should also be developed

mostly for customers with income more than 3, and particularly

2obholders.

+3. The bank needs to slightly modify their savings scheme to attain superior

customer satisfaction. In this case, they should consider ma!imi9ing

customer profitability alongside the banks.

+1. "s there is significant scope of improvement for employee knowledge of



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products, the company could device training session every few months.

This would also allow them to improve the employee to client relationship,

in which they seem to be vulnerable at the present state.

+8. BR"C Bank has significant problem regarding the environment of the

bank. In this case, they need to identify e!actly which portion of the

environment is bothering them the most and then resolve the problems in

the best possible manner.

+0. Problems regarding IT and internet link should take seriously.

+7. $hould increase the number of "T/s and ensure their smooth operations.

+H. Internet based customer service may introduce so that customer can receive

their service sitting at home. It will provide Brac Bank the first mover

advantage.



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Concl!sion

$ince the banking service especially the private Banks are doing an outstanding

business, so it is clear that the modern people are more concerned about securing

their valuable assets and get high&6uality and timely services. *or this reason lot of

new commercial bank has been established in last few years and these banks have

made this banking sector very competitive. $o, now banks have to organi9e their

operation and do their operations according to the need of the market. Banking

sectors no more depends on a traditional method of banking. In this competitive

world this sector has trenched its wings wide enough to cover any kind of financial

services anywhere in this world. The ma2or task for banks, to survive in this

competitive environment is by managing its assets and liabilities in an efficient

way. BR"C Bank is the most promising private commercial bank in Bangladesh.

very day BR"C Bank endeavor to increase their product and services although

they provide a wide range of product of services to their customers. BR"C Bank

is helping the economy of Bangladesh by remitting of funds both local and

foreign. *or helping the people the bank provides bridge financing loan, working

capital loan to its corporate clients. "s modern function BR"C Banks provides

credit card facility, "T/ card facility and any branch banking facility to its

customers.

The BR"C Bank>s philosophy & KTrust EnshakeableK has been precisely an

essence of the legend of success in the "sian countries. The bank has proved to be

successful by offering 6uality and timely services to its customers.

The employees of BR"C Bank are very efficientA everyone knows their work very

well and can perform efficiently to produce the best output. The bank has plans to

open more branches to e!pand their network.

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This pro2ect concentrated mostly on the customer services of the @indaba9ar

branch and identified some valuable information that could make the services

more attractive and also enhance the banks reputation among the customers.

=ith the current performance of the Bank and with little improvement here and

there will certainly make BR"C Bank one of the best Private Bank in Bangladesh

in the near future.

Documents

An Internship Report on BRAC Bank Ltd- A Study on Castomer Satisfaction(1)