ANALYZING CUSTOMER EXPECTATIONS IN TRADE FINANCE PRODUCTS WITH RESPECT TO ING VYSYA BANK

Prepared by:Payal SonejaSummer Intern Amity School of Economics

ING VYSYA BANK

ING VYSYA BANK

• Founded in 1930, Vysya Bank was formally incorporated in the city of Bangalore, Karnataka.

• ING Vysya Bank Ltd. (International Netherlands Group), is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002.

• Shailendra Bhandari (CEO & MD) of INF Vysya bank and Arun Thiagarajan is the chairman of the board

• India's Premier Private Sector Bank.

• Revenue: 16.6B ($320M)₹

ING VYSYA BANK

INTRODUCTION

OBJECTIVES

The objectives of my report are:

Broad Objective of the report is:• To know about the customers’ expectation and satisfaction in trade finance

products of ING VYSYA Bank

 

Specific Objectives of the report are:

(i) The research will identify the problems faced by customers with the various products in trade finance.

(ii) To compare the trade finance products and services offered by ING Vysya Bank with other private banks (ICICI & HDFC and Axis Bank)

(iii) To thoroughly study the products & services of ING Vysya Bank.

(iv) To make recommendations for improving the quality of different services provided to the customers by the Bank.

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SCOPE

The study will be able to reveal the preferences, needs, expectation of the customers regarding the banking services, It also help banks to know whether the existing products or services they are offering are really satisfying the customers’ needs. The main purpose of the research is to understand the customer’s satisfaction level of the customers of different products and services offered by ING Vysya Bank and its customers’ problems and the steps taken to improve their facilities.

LIMITATIONS

• It was difficult to interview respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.

• Accuracy: It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.

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LITERATURE REVIEW

Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. 

What is customer satisfaction and why to measure it Accounts and services offered by ING Vysya bank Trade finance products offered by ING Vysya bank:

Buyer’s credit

Letter of credit

Bank guarantees

Remittance services Overview of ING Vysya bank.

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RESEARCH METHODOLOGY

All the conclusions are based on the survey done in the working within the time limit. I have tried to select the sample representative of the whole group during my training.

RESEARCH DESIGN

No research paper is complete without data collection and data analysis vital and pertaining to the topic of the paper. In my research report, I have decided to use:

Firstly Exploratory Research, to determine the approximate area where the problem lies according to the information needs of the bank and Descriptive Research to discover answers to the questions who, what, when, where, and, sometimes, how. My attempts to describe or define a subject, often by creating a profile of a group of problems, people.

ING VYSYA BANK

SOURCES OF DATA COLLECTION

• Primary Data

I have chosen a Primary method of Data Collection which would suit this type of Research Design. I have gathered the primary data through personal interviews, questionnaires which I got filled by the customers of ING Vysya bank and as well as the customers from other banks.

 • Secondary Data

I have collected the secondary data from internal sources, such as official records of the bank, annual reports and bank’s website.

ING VYSYA BANK

SURVEY METHOD

For conducting my research total sample size was 50 and my target population was exporters, importers and contractors and a questionnaire was produced before the them and their responses were recorded. I took the use of descriptive statistics to analyze the data. For customer interview I used Convenience sampling method which is a non-probability sample. Under this I had the freedom to choose whomever they find, thus the name convenience.

 

DATA ANALYSIS TECHNIQUES

To analyze the Data Analysis and for the better presentation and right explanation I have used Preliminary method of statistical data analysis which includes statistical methods such as Pie Charts, Histograms, Bar diagrams, which shows how many customers are satisfied from the bank‘s trade finance products.

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DATA ANALYSIS AND INTERPRETATION

The following information contains the data interpretation of the questionnaires. The respondents’ responses for the questions have been interpreted and a finding has been made based on the respondents responses.

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DEMOGRAPHIC ANALYSIS

GENDER

84%

16%

MALE

FEMALE

From the above chart, it can be seen that of the 50 respondents 84% of them were male and 16% were female

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From the above graph, 48% respondents belonged to the age category of 30yrs-40yrs, 32% respondents belonged to the category of 40yrs-50 years, 10% of the respondents belonged to the category of more than 50 years, and between 20yrs-30yrs.

BETWEEN 20-30BETWEEN 30-40

BETWEEN 40-50MORE THAN 50

0%5%

10%15%20%25%30%35%40%45%50%

10%

48%

32%

10%

Sales

AGE GROUP

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From the above pie chart, 72% of the respondents were salaried , 20% of the respondents were self employed, and 8% of the respondents were managerial.

72%

20%

8%

SALARIED SELF EMPLYED MANAGERIAL

OCCUPATION

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From the above graph, 26% of respondents are belonged to the category of Graduate, 52% of respondents are belonged to the category of Post graduate, 16% of respondents are belonged to the category of professional course, and 6% belonged to the category of M.Phil./PHD

GRADUATE POST GRADUATE PROFESSIONAL COURSE

M.PHIL/PHD.0%

10%

20%

30%

40%

50%

60%

26%

52%

16%

6%

EDUCTIONAL QUALIFICATION

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From the above analysis, perception of 60% of the respondents is that ING Vysya bank is a private bank, while 12% of the respondents think that it is a public bank, 18% of them think, the bank is both a private and public bank and 10% of the respondents have no surety about the perception of the bank.

PERCEPTION OF CUSTOMERS ABOUT ING VYSYA BANK

60.00%

12.00%

18.00%

10.00%

Private

Public

Private and public

Don't know

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From the above chart, 30% of the respondents deal in apparel industry, 22% of the 50 respondents deal in mobile phones and accessories, 18% deal in electronics and electric appliances, 12% deal in gems and jewellery and a total 18% deal in(handicrafts, pharmaceutical and construction industry).

18%

30%

6%

22%

8%

12%4% ELECTRICALS AND

ELECTRONIC APPLI-ANCESAPPAREL INDUSTRY

CONSTRUCTION

MOBILE PHONES AND ACCESSORIES

PHARMACEUTICAL

GEMS AND JEWELLERY

HANDICRAFTS

THE TYPE OF INDUSTRY THE CUSTOMERS DEAL IN

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From the above chart, it can be inferred that 44% of the respondents deal in export business, 26% deal in import business, 12% of the respondents deal in construction business and 2% deal in trading business.

44%

26%

16%

12% 2%

EXPORT IMPORT EXPORT/IMPORTCONTRACTORS TRADING

ING VYSYA BANK

As per the data collected and analyzed, ICICI Bank hold the accounts of 46% of the respondents. Next rank comes to ING Vysya Bank with 34% of accounts. HDFC Bank has captured 16% (speculative) of the accounts and AXIS Bank with 4%.

ICICI BankING Vysya Bank

HDFC BankAXIS Bank

0%5%

10%15%20%25%30%35%40%45%50% 46

34

16

4

CUSTOMERS HAVE ACCOUNTS WITH WHICH BANK

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LETTER OF CREDIT

BANK GUARANTEE

BUYER'S CREDIT

CASH CREDIT/PACKING CREDIT

REMITTANCE SERVICES

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

44%

24%

14%

8%

10%

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From the above analysis, maximum number of respondents (57% of them approx.) of ING Vysya bank used buyer’s credit as their trade finance product. 41.67% of the respondents of ICICI bank used letter of credit, 25% of the HDFC bank respondents used both letter of credit as well as cash credit, and 25% of the AXIS bank respondents used cash credit as their trade finance products.

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ICICI BANK HDFC BANK AXIS BANK0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

LETTER OF CREDIT

BUYER'S CREDIT

REMITTANCE SERVICES

ING VYSYA BANK

From this chart, it could be inferred that 42% of the consumers have rated services and products offered by their respective banks as ‘good’, 22.5% of them have rated them as ‘very good’, and 15% of them have rated as excellent and average’ while only 5% have rated as ‘poor’.

10.00%

20.00%

52.00%

14.00%

4.00%

EXCELLENT VERY GOOD GOOD AVERAGE POOR

RATINGS GIVEN BY CUSTOMERS FOR THEIR PRODUCTS

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Of the above parameters, Performance received a maximum rating of 42%, for customer satisfaction; 28%and 16% for speedy process, and also 14% for easy to deal.

42%

28%

16%

14%Performance

Customer satisfac-tion

speedy process

Easy to deal

PARAMETER CUSTOMERS

Performance 21

Customer satisfaction

14

Speedy process 8

Easy to deal 7

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The above table is a continuous rating scale (Non comparative scaling technique)

HOW SATISIFED CUSTOMERS ARE WITH PRDOUCTS OFFERED BY ING VYSYA BANK

  Highly satisfied

Satisfied Neither satisfied nor dissatisfied

Dissatisfied Highly dissatisfied

 

  14 22 10 3 1  

  28% 44% 20% 6% 2%  

ING customers 4 8 4 1 0 17

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According to chart, 44% of the total respondents are satisfied with the products with their respective banks, while 28% are highly satisfied from their current bank; only 4% are dissatisfied while 2% people are highly dissatisfied. Whereas of the respondents 20% are such who are neither satisfied nor dissatisfied from the products and services provided by their current bank.

Highly satisfied Satisfied Neither satisfied nor dissatisfied

Dissatisfied Highly dissatisfied0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

28%

44%

20%

6%

2%

ING VYSYA BANK

17 ING customers were interviewed by me during the analysis.Out of which, 47.05% (8 customers) of the respondents of ING bank were satisfied by the products and services offered by the bank, 23.53% (4 customers) were highly satisfied and some of them were neutral and 5.89%(1 customer) were dissatisfied. The customers were having problems regarding the documentation and the bank was not able to provide funds in given span of time.

HOW SATISIFED CUSTOMERS ARE WITH PRDOUCTS OFFERED BY ING VYSYA BANK

Highly satisfied Satisfied Neither satisfied nor dissatisfied

Dissatisfied Highly dissatisfied0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

23.53%

47.05%

23.53%

5.89%

0.00%

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Above pie chart shows that 42% respondents have Saving A/Cs, and 22% have Current A/Cs and rest of the respondents have 36% share of other A/Cs in total (which includes fixed deposits, land/property, and other products)

42%

22%

10%

18%

8%

Saving account Current account Land/Property Fixed deposit Others

TYPE OF COLLATERAL TO OPERATE WITH THE BANK

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The customers are satisfied with the banks sincerity in solving their personal or any other problem. Most of the respondents agree with the above statement and none of the customers are dissatisfied by the bank’s ability to solve their problems. So, on this point of bank’s sincerity in problem solving the customers are seemed to be satisfied

STRONGLY AGREE

AGREE NEUTRAL DISAGREE STRONGLY DISAGREE

0%5%

10%15%20%25%30%35%40%45%50%

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From the above graph, it can be inferred that most of the importers i.e. 31% of them have their issue of bank not able to arrange funds in given span of time, 23% of them have their issues regarding rate issues and exchange rate fluctuations, 15% of the importers have their problems regarding documentation and 8% of them have their issues regarding the shipment schedule not being met.

RATE ISSUES

BANK NOT ABLE TO ARRANGE FUNDS

THE SHIPMENT SCHEDULE CANNOT BE MET

TOO MUCH DOCUMENTATION REQUIRED

PRICE BECOMING LOW DUE TO EXCHANGE RATE FLUCTUATIONS

0% 5% 10% 15% 20% 25% 30% 35%

23%

31%

8%

15%

23%

PROBLEMS FACED BY CUSTOMERS (IMPORTERS) OF ING VYSYA BANK