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Trend Analysis of People opting for Bank Car Lease Schemes
Nadia Zehra
Department of Computer Sciences,
Allama !"al #pen $ni%ersity, slama"ad
A"stract:
Banks provide car leasing schemes to
customers who can pay in installments. In
order to meet the expectations: customer
inclination is to be researched. So that banks
can endow more profitable design and focus
on the automobiles that can provide more
benefits in the future. Customer data can be a
useful contribution to estimate the economictrends. Nowadays banks give a lot of facilities
to customers from credit cards different kinds
of loans insurance and auto lease schemes.
!ur focus in this research is on information
drawing out of car leasing scenarios. Now
owning a car is not a huge burden as it used to
be few years back. "eople can get brand new
luxurious or second hand cars of their choice
at affordable prices on regular installments in
lieu of various car leasing schemes. Such an
ease has increased a lot of traffic as
individuals with average income keep a #uota
of their money for loans to be on roads. In this
study our focus is to find trends in car leasing
among common people their perceptions and
how to improve the road behavior.
ntroduction&
$he car lease cases have interest rates or aremortgage free depending on the type of
banking. $he repayments have to be made for
a range of %&' years in many cases. $his data
can very helpful if we want to make educated
guesses about customer preferences of buying
the type of cars. Similarly keeping in view the
background of customers it can be somehow
ruled out that how customers manage the
paybacks. $ransport situation in "akistan is
not better than worse. (ccording to )orld
Bank *eport there are approx %+ passenger
transports for %+++ people in "akistan in
,++-. $his is dis#uieting situation on roads.
(n alarming situation for a population of %+
million. !ut of which working class make %%+
million which is /+0 of the population 1%2.
(ccording to Neilson Study in ,+%3 about
40 of people want to buy new cars in next
two years and -0 are willing to get them
when they become financially strong. $o meet
the demands of working people on roads Car
5inancing has played a vital role in providing
auto lease opportunities. $he banks that
provide car financing in "akistan are: 6B7
(skari Bank 8ee9an NIB ubai IslamicBank to name the top most ones.
Customers play a key role in financial sectors
specially banks. $he needs and behavior of
the customers can be analy9ed using C*8
techni#ues 1,2. !ne aspect of C*8 is to
highlight the customers that can be termed as
cash effective and on the reverse all those as
well who are risk to banks. $herefore
Customer analysis done by banks can not onlyincrease performance but also strengthen the
customer ties with it. ;Banks that apply
analytics to customer data have a four
percentage point lead in market share over
banks that do not.
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important substantial body to know their
status to draw to a close look at their payback
trends. ;"rudent borrowers restrict their loan
demands to a reasonable percentage of their
annual income and many banks as a matter of
practice enforce an arbitrary maximum
percentage.< 132.
Pro"lem Statement&
$he research focuses on trends analysis of
customers availing car lease schemes. $he
evaluation is to support the banks analy9e
how to categori9e the loans. ( particular
brand of car could be a hot favorite. )hich
banks policies are mostly favored by people>(re the policies by banks beneficial and
analy9e the improvement suggestions given
by the people.
'esearch (ethodology&
;(nalysts say that as technology becomes
increasingly important some buyers have
started to assess their cars and trucks as they
would the latest computer or cell phone as agadget. $he lease has offered a solution for
many shoppers: a chance to drive home in a
vehicle that has the latest technology while
still keeping that monthly payment within
reach< 1'2. $he methodology that is used to
analy9e customer trends is through surveying.
( general #uantitative analysis is done taking
in account ordinary people. ( sample si9e of
,' is used with people of no prior knowledge
of car leasing methodology.
Data Analysis&
In this research we seek different views of
general public for e.g. (re the installment
limits harsh or not> $he following results
show that more than half of the people didn?t
reply in favor of Installment limits. If you do
an Industry analysis the Installment rates of
various banks vary from %&,%0 of overall
payment which amounts a lot for an average
income customer.
010203040
Opinion about Installment Rates of Car Leasing Schemes
In another #uestion of preference of Banks
most of the customers voted for two Banks
namely Bank (lfalah and (skari bank 7td.
ue to @ood Customer Satisfaction repute
they are termed as the most favorite banks.
Banks offer different cars of customer choice
to be leases. ue to different markup rates
and installment types people preferences
change. 8ost of the people tend to buy small
cars which are more affordable. $he analysis
has shown that most of the customers tend to
prefer Su9uki and 6onda Brand. $he cars
which bought at once with full payment are
now possible to be drawn with some down
payments. !ne becomes owner without
paying the actual amount. $his ownership
gives customer the freedom to choose their
dream car. 7ocal car sales Aincluding lightcommercial vehicles eeps and vans umped
to )*,+- unitsin the first three months ADul&
Sep of fiscal year -./ up 4,0 compared to
0,+11units in the same period of last year
according to data released by the "akistan
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(utomotive 8anufacturers (ssociation
2PA(A34 5/2
(nother feature of our survey has been the
market segmentation. $here are many broad
aspects of 8arket Segmentation in(utomobile Industry that range from
@eographical emographical "sychological
and Behavioral Segmentation 142. "eople
preferred that young employees and people
who are financially robust must opt for these
schemes. $his gives the idea that as "akistan
is a young country with /=0 population under
the age of ,'. So it?s very feasible to target
the consumer group of young enthusiast
employees to employ in these schemes.
Esually low cadre employees with new obs
tend to have cars for their status
improvement.
$ransport Issues as mentioned earlier is a
grave concern. $here is already much traffic
on roads. (nd Car 5inancing has added more
burdens on roads as in "akistan public
transport has not provided the ade#uate means
to travel within city. $he recent incorporation
of 8etro Services in big cities like
*awalpindiFIslamabad and 7ahore has
provided a positive impact on ordinary people
commuting within cities. It is estimated that
public transport demand of around %'=+++
passengers is available on daily basis between
the two cities AIslamabad&*awalpindi 12.
6owever within the city there is still not a
passable infrastructure to maintain peoplecommutation. $hough Car financing has
provided relief to individuals it has
supplemented traffic problem to a huge
extent. Such issues can be addressed if the
7easing Companies focus on @reen
Gnvironment. $hey should do measures to
provide vehicles that are less polluting and
limit the families with already possessing
vehicles to exclude from such schemes. 8ost
of the customers have given positive reply for
@reen 7easing in the survey. (nd much do
not know the terminology. )ith propagation
towards such important factor things can go
in favor of clean environment businesses.
Conclusion&
In Banks there is a much greater scope to do
market segmentation for auto leasing. $here
are many areas that need to address like Safe
(uto Banking @reen (uto 7easing and Soft
Installment rates to make cars affordable forordinary users. Customer analysis and trends
study give a proection towards future policy
making and course of actions. Car financing
is a success tree if it is grown with proper
research methodologies incorporating future
trends as well.
'eferences&
%. 8a9har N. A,+%=. "akistan GconomicSurvey ,+%,&%=: "opulation 7abour
5orce and Gmployment 8inistry of
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,. Suresh B. C. A,+%,. CRM is all
about bringing people, processes &
technology together a case study of
banking sector in India, *omanian
Dournal of 8arketing % '+&'/.
=. Consulting C. A,+%=. Big ata
(lchemy: 6ow can Banks maximi9ethe value of their customer data *etail
Banking Hoice of the Customer
Survey Capgemini G58(.
3. Chapman D. 8. A%-3+. $he
Customers of "ersonal 7oan
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epartments Commercial Banks and
Consumer Installment Credit NBG*.
'. Jessler (. D. A,+%'. (uto 7easing
@ains "opularity (mong (merican
Consumers $he New Kork $imes
ADan .
/. Ibex A,+%'. Car Sales Dumped to '3
%, units in the first three months 5K
,+%/ (ccessed from:
http:FFwww.ibexmag.comFpakistanFne
wsFcar&sales&umped&to&'3%,&units&
in&the&first&three&months&fy&,+%/F
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segmentation for automobiles
(ccessed from: http:FFgaurav&
mantra.blogspot.comF,+%%F+=Fmarket&
segmentation&for&automobiles.html
. 8etro *awalpindi A,+%/. (ccessed
from: http:FFwww.metrori.pkFabout&
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