Report Hsbc

1. INTRODUCTION
1.1 ORIGIN OF THE REPORT
The report is a requirement of the internship program for my BBA degree. The
organization attachment started on May 03, 2003 and will end on o!em"er 03,
2003. My organization super!isor Ms. #inia Amreen $%ustomer &er!ices 'fficer,
Main 'ffice, (&B% )ha*a+ assigned me the topic of my report and it is has "een
duly appro!ed "y my super!isor at orth &outh ,ni!ersity, Ms. Mo"ina (asan.
The reason "ehind choosing this topic is that, recently the %-' of (&B%
Bangladesh has gi!en emphasis on "etter customer ser!ice and more customer
satisfaction and thus the %ustomer ser!ice officer wants to get an idea of the
current le!el of customer satisfaction at (&B%.
1.2. OVERVIEW OF THE COMPANY
(&B% is a glo"al "an*ing and financial ser!ice organization headquartered in the
,nited .ingdom. The (&B% group/s international networ* comprises of some
0,000 offices in 12 countries and territories. (&B% holding plc are held "y around
230,000 shareholders in some 200 countries and territories. 4n Bangladesh, (&B%
group is represented "y its head office in )ha*a, a full5ser!ice "ranch in
%hittagong and three su"5"ranches in 6ulshan, Moti7heel and )hanmondi. (&B%
is the first "an* to recei!e the 4&'3002 accreditation in Bangladesh.
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1.3 OBJECTIVE OF THE REPORT
General Objective: 6eneral o"7ecti!e is to assess the le!el of importance the
customers of (&B% put across !arious ser!ice le!el attri"utes and also to
determine how well (&B% was satisfying the customers on those ser!ice grounds.
More specific o"7ecti!e is to pro!ide information on (&B% Bangladesh, determine
most important attri"utes of ser!ice quality, identify the most satisfied
demographic segments, determine relation "etween complaint resolution and
satisfaction etc.
1.4 Scope
The presentation of the organizational structure and policy of (&B% Bangladesh
and in!estigating the strategies applied "y it pro!ide the scope of this report. An
infrastructure of the organization has "een detailed, accompanied "y a glo"al
perspecti!e and loo* into the future. The scope of this report is limited to the
o!erall description of the company, its ser!ices, and its position in the industry
and its mar*eting strategies. The scope of the study is limited to organizational
setup, functions, and performances.
1. H!po"#e$%$
The services that customers place most importance in are well satisfied
by HSBC, Banladesh!
2
1.& METHODO'OGY
"!#!" Type of research:
4n this study, e8ploratory research was underta*en to gain insights and
understanding of the o!erall "an*ing industry and also to determine some of the
attri"utes of ser!ice quality in Ban*s. After that, a more comprehensi!e
conclusi!e research was underta*en to fulfill the main purpose of the study.
"!#!$ Taret roup:
-8ploratory 9esearch:
Managers, -8ecuti!es, %ustomers of (&B%, Bangladesh.
%onclusi!e 9esearch:
4ndi!idual customers of (&B%.
"!#!% Sources of &nformation:
Primary data
I have collected primary information by interviewing employees and managers of HSBC and
directly communicating with the customers. I have also conducted a questionnaire survey of
the customers minimizing interruptions in their banking activities. rimary data were mostly
derived from the discussion with the employees ! through surveys on customers of the
organization. rimary information is under consideration in the following manner"
#ace to face conversation with the employees
$ppointment with the top officials of the Bank
By interviewing customers at HSBC% &ain 'ffice
3
Secondary data
I have elaborated different types of secondary data in my research. Sources of secondary
information can be defined as follows"
Internal Sources
 Bank(s $nnual )eport
 *roup Business rincipal manual
 *roup Instruction &anual ! Business Instruction &anual
 rior research report
 $ny information regarding the Banking sector
External Sources
 +ifferent books and periodicals related to the banking sector
 Bangladesh Bank )eport
 ,ewspapers
"!'!( Study center:
4 could only co!er the )ha*a Main 'ffice in my study, as 4 was not allowed to go
out of the office to carry out my research.
"!'!' )ata collectin instruments:
In-depth interview: )uring the e8ploratory research, 4 conducted in5depth
inter!iews with managers, employees ; customers of (&B%
Questionnaire survey: 4 also designed a structured questionnaire for the
customers of (&B%. This structured questionnaire was the ma7or tool of this
research pro7ect.
4
"!'!# Samplin method:
4 adopted simple random sampling technique during the sur!ey of this pro7ect
where customers were gi!en copies of the questionnaire and were as*ed to fill
them. 4 ga!e continuous support to the customers for any pro"lems that they
faced while filling up questionnaire so that the !alidity of the questionnaire
increases. As the &imple random sampling is easily understood and results are
pro7ecta"le it is "est suited for my study.
"!'!* Sample si+e:
Exploratory Research: )uring this phase of the research 4 selected a group of
30 people. This group included < managers, 20 employees and 2< customers of
(&B%.
Conclusive Research: 4n this part of the research 4 sur!eyed a total of 200
customers with the help of a structured questionnaire.
"!'!, )ata -nalysis Techni.ues:
The data that o"tained from the sur!ey were analyzed and interpreted "y using
statistical tools such as /012314C5 )&ST0&B3T&O4, 6ercentae analysis,
7eans, Correlation and Cross tabulations. The data o"tained from the sur!ey
were grouped in two ma7or categories. They are5 importance ; satisfaction. After
that an o!erall !ariance "etween the customer e8pectations and perceptions are
measured to determine the gap "etween ser!ice le!els. Then the data were
presented through a numerical and graphical presentation using the a"o!e
statistical tools. Based on these figures and findings recommendations were made
out to impro!e the o!erall satisfaction of the "an*
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1.( 'IMITATIONS OF THE STUDY
⇒ Time frame for the research was !ery limited. The actual sur!ey was done
within a month.
⇒ =arge5scale research was not possi"le due to constraints and restrictions
posed "y the organization.
⇒ The research only co!ers the customers of )ha*a Main office.
⇒ The sur!ey was limited to the customers of >ersonal "an*ing di!ision and
does not co!er the organizational or corporate customers of (&B%.
⇒ >art on organizational culture was written from indi!idual/s perception and
may !ary from person to person.
⇒ 4n many cases, up to date information was not pu"lished.
⇒ The information regarding the competitors is difficult to get
⇒ 6etting 9ele!ant papers and documents were strictly prohi"ited.
⇒ Many procedural matters were conducted directly in the operations "y the top
management le!el, which also ga!e some sort of restrictions.
⇒ To protect the organizational loss in regard of maintaining confidentiality,
some parts of the report are not in depth.
6
2. BAN)ING SECTOR IN
BANG'ADESH
2.1 DEFINITION OF BAN)
?hoe!er, "eing an indi!idual firm, company or corporation generally deals in the
"usiness of money and credit is called a "an*. 4n our country, any institution,
which accepts, for the purpose of lending or in!estment deposits of money from
pu"lic, repaya"le on demand or otherwise, and with transfera"le "y chec*s draft
order ; otherwise is called a "an*.
The purpose of Ban*ing is to ensure transfer of money from surplus unit to deficit
units. Ban*s in all countries wor* as the repository of money. The owners loo* for
safety and amount of interest for their deposits with Ban*s. -ntrepreneurs try to
o"tain money from the "an*s as wor*ing capital and for long term in!estment.
These entrepreneurs welcome effecti!e and forward5loo*ing ad!ice for
in!estment. Ban*ing sector thus owe a great deal to the deposit holders on the
one hand and the entrepreneurs on the other. They are e8pected to play the role
of friend, philosopher, and guide for the deposit holders and the entrepreneurs.
&ince li"eration, Bangladesh passed through fragile phases of de!elopment in the
Ban*ing sector. The nationalization of Ban*s in the post li"eration period was
intended to safe the institutions and the interest of the depositors. Those
handling the "an*ing sector ha!e "orne the "urden of putting "an*s on relia"le
footings. )espite all that was done, some elements of irregularities appeared.
?ith the assertion of the role of the %entral Ban*, the Bangladesh Ban* started
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adopting measures for putting "an*ing institutions on right trac*. @et the
preponderance of pu"lic sector management of "an*s left some negati!e effects
in the money mar*et in particular and the economy in general. The agility among
the "orrowers manipulates the "an*ing sector as a whole. 4n effect, a default
culture, among other effects, appeared on the scene.
The opening of pri!ate and foreign participants to the "an*ing sector was
intended to o"tain desira"le results from "an*ing. The authorization of pri!ate
"an*s was designed to create competition among the "an*s and competition in
the form of efficiency within and the producti!ity in enterprises funded "y "an*s.
,nfortunately, for the people, at large, "an*ing sector is yet to o"tain the credit
for efficiency, credi"ility, and growth.
The cle!er, among the user of "an*ing ser!ices, ha!e influenced the management
of "an*s, for o"taining short term and long term loans. They sometimes showed
inflated equity to get money for in!estment in "usinesses and industry. Aew
di!erted their loan money to purposes different from the loan proposals, and
in!ested in non profita"le units ha!e failed to repay their loans to the "an*s. Aor
this reason new entrepreneurs are not getting capital while defaulting
entrepreneurs ha!e started o"taining either relief in the form of rescheduling of
the repayment program or additional ine!ita"le money for di!ersified units.
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2.2 A PREVIEW ON THE GENERA'
ECONOMY AND THE BAN)S
6erformance
-conomy often plays an important role in the "an*/s performance and it/s
e8istence in the mar*et. &o while e!aluating the performance of "an*ing sector of
Bangladesh. 4 "elie!e that it is important to tal* a"out the economy during the
rele!ant year.
General 1conomy 8"99":9$;
The 6ross domestic product $6)>+ of Bangladesh increased "y 3.3B in 2332532
as compared to 3.CB growth in the pre!ious year. )uring this year the growth
was little lower than pro7ected. )ue to the hea!y growth in the countrywide
e8port and negati!e growth in import the international trade deficit decreased "y
,&D2E2 million to ,&D2<<3 million as against the deficit of ,&D2102 million last
year. )uring 2332532, the "an*ing sector witnessed higher growth in deposits
and slower growth in credits o!er the past year resulting in e8cess liquidity.
-8cluding inter5"an* items and go!ernment deposits, total deposits of "an*ing
sector increased "y 2E.3B to B)T 2,EE, <EE million as against 22.3B growth last
year.
General 1conomy 8"99$:9%;
)uring this year the 6)> increased "y E.3B compared to E.2B growth in the
pre!ious year. Although the world economy was depressed, de!elopmental
pro7ects and growth were achie!ed due to social and political sta"ility in
Bangladesh. As compared to the pre!ious year, the loan sanctioning of the
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"an*ing sector increased "y 0.3B "ecause the demand for loan was higher than
the pre!ious years. )uring this year deposit increased to B)T2C0200 million.
General 1conomy 8"99%:9(;
233353E was the continuation of pre!ious economic growth. 4n this period the
growth was <B. )uring this period the country/s foreign e8change reser!e was
the highest in it/s history5almost B)T210 crore. The de!aluation of Ta*a was also
the lowest among the &outh Asian countries appro8imately 2B. 4n o!erall sense
it can "e said that Bangladesh felt a great year from the o!erall macroeconomics
perspecti!e. Business, especially the e8port mar*et was !ery successful. 4t
e8perienced more than 2<B growth rate. The industrial growth was 0B, which is
close to the go!ernment/s targeted industrial growth.
General 1conomy 8"99(:9';
4n the fiscal year there were all sorts of en!ironmental and political turmoil which
included drought, flood, stri*e and so on. Aor this reason agricultural growth was
affected in other words the whole economy was in a fragile position. )uring this
year the growth rate of 6)> was E.EB as compared with E.2B of last years 6)>
and inflation was <.2B. 4n the same year 4nternational Trade "alance decreased
"y D EC0 million as compared to D 000 million of last year
General 1conomy 8"99':9#;
4n the year of 233<53C 6)> was <.3B compared to E.EB of last year.
4n!estment was 20B of 6)> and the inflation was E.2B. There were deficits of D
1<2 million in Balance of >ayment. Agricultural growth was comparati!ely "etter
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than the pre!ious years, as result growth rate in this sector was 3.<B. Trade
deficit was D 1<2 million.
General 1conomy 8"99#:9*;
4n the year of 233C530 6)> was C.0B compared to <.3B of last year.
4n!estment was 20B of 6)> and the inflation was E.2B. There were deficits of
D3<0 million in Balance of >ayment. Total deposit in the country was B)TE31012
million, which was B)T E<203< million in the pre!ious year showing 20.<3B,
increase in annual growth rate. The rate of e8pansion of money supply $M52+ was
E.30B compared to 3.00B in the pre!ious year
General 1conomy 8"99*:9,;
)ue to some positi!e and supplementary steps ta*en "y the go!ernment towards
industrial de!elopment during 2330531, the growth of this sector increased to
1.20B against 3.<0B of the pre!ious year. (owe!er, gross in!estment of the
country, which was 20.30B of the 6)> during last year, was reduced and stood
At 2C.30B during the year under reference. 6ross internal sa!ings increased and
stood at 0.30B of the 6)> during the year whereas the same was 0.<0B of 6)>
in the pre!ious year. 9ate of inflation stood at 0.00B during the year, which was
2.<0B during 233C530 at national le!el.
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2.3 BAN)S IN BANG'ADESH
4ame of Ban< 4umber of Branches
&nland -broad
-! 4ationali+ed Commercial Ban<s
2. &onali Ban* 2323 0
2. Fanata Ban* 130 E
3. Agrani Ban* 301 55
B! Speciali+ed Ban<s
2. Bangladesh .rishi Ban* 13C 55
2. 9a7shahi .rishi ,nnayan Ban* 300 55
3. Bangladesh &hilpa Ban* $4ndustrial+ 2< 55
E. Bangladesh &hilpa &angstha < 55
<. 6rameen Ban* 2220 55
C! 6rivate Commercial Ban<
2. 9upali Ban* <2< 2
2. >u"ali Ban* =td. 3<2 55
3. ,ttara Ban* =td. 231 55
E. Ara" Bangladesh Ban* =td. <1 2
<. 4nternational Ainance ; 4n!estment ;
%ommerce Ban* =td. $4A4%+
<< 2
C. 4slamic Ban* Bangladesh =td. 200 55
0. ational Ban* =td. CC 2
1. The %ity Ban* =td. 10 55
3. ,nited %ommercial Ban* =td. 03 55
20. Al G Bara*a Ban* Bangladesh =td. 33 55
22. >rime Ban* =td. 2C 55
22. )ha*a Ban* =td. 3 55
23. Al5Arafa 4slami Ban* =td. 20 55
2E. &outh -ast Ban* =td. 20 55
2<. BA. 'A &mall 4ndustries ; %ommerce 22 55
2C. -astern Ban* =td. 22 55
20. B= 20
21. &ocial 4n!estment Ban* =td. < 55
)! /orein Commercial Ban<s!
2. American -8press Ban* =td. 2
2. %redit Agricole 4ndosuez 2
3. The &tandard %hartered Ban* 2<
<. (a"i" Ban* =td. 2
C. &tate Ban* of 4ndia 2
0. Muslim %ommercial Ban* 2
1. %iti Ban* @ 2
12
3. ational Ban* of >a*istan 2
20. (anil Ban* 2
22. )utch Bangla Ban* 2
"$! HSBC ' ,$
Source: www!banladesh:ban<!or
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2.4 BAN)ING IN BANG'ADESH
Ban*ing is the "ac*"one of national economy. All sorts of economic and financial
acti!ities re!ol!e round the a8is of the "an*. As the industry produces goods and
commodities, so does the "an* creates and controls money5mar*et and promotes
formation of capital. Arom this point of !iew, "an*ing5a technical profession5 can
"e termed as industry. &er!ices to its customers are the products of "an*ing
industry "esides "eing a pi!otal factor in promoting capital formation in the
country. As all economic and fiscal acti!ities re!ol!e round this important
H4ndustryH, the role of "an*ing can hardly "e o!er emphasized.
%ircumstances "eing such, it "ecomes imperati!e to find out the role that now
playing in the country and analyze its operational aspects so as to ascertain the
importance of this delicate financial sector and its o!er all impact on our national
economy. To ascertain the role of "an*s and to analyze its operational aspects
and its o!erall impact on our national economy a through study as to its
distri"ution, e8pansion and contri"ution is essential to comprehend its past,
present and future "earings for the growth and de!elopment of the "an*ing
sector of the country. 4n the glo"al conte8t, the role of "an*s is far 5 reaching and
more penetrating in the economic and fiscal discipline, trade, commerce,
industry, e8port and import5 all carried through the "an*. Ban*s are the only
media through which international trade and commerce emanate and entire credit
transactions, "oth national and international.
14
2. APPROVA' OF NEW BAN)S
'pening of the recently permitted new "an*s, without implementation of the
needed reforms, could lead to unethical competition and horse5 trading in the
countryHs trou"led "an*ing sector, according to the "an*ers.
-ntry of new "an*s in the mar*et under the present situation will lead to
unethical competition and horse5trading in the "an*ing sector. The pro"lems li*e
non5performing loans in the sector may also worsen. The size of the mar*et and
the present state of economic acti!ity did not pro!ide adequate scope for
"usiness for a large num"er of "an*s with poor management and outdated
operating systems. This would o"!iously lead to unethical practices in the sector.
Adding the lac* of s*illed hands at the top and mid5le!el management of "an*s
could also result in Ihorse5tradingI.
Mr. =utfar 9ahman &ar*ar, -85go!ernor Bangladesh Ban* echoed his !iews and
said IAllowing the new "an*s, without restoring discipline and resol!ing their
numerous pro"lems, will create unhealthy atmosphere and unethical "an*ing in
the whole country.I The "an*s would o"!iously resort to unethical means of
capturing or retaining "usiness, such as undercutting interest or "ri"ing official to
attract go!ernment deposits. These would !itiate the atmosphere of the "an*ing
sector.
A top official of another multinational "an* said appro!al of the new "an*s "y the
go!ernment was against the glo"al trend. I?hen the glo"al trend is merger and
acquisition of the small "usiness entities, the go!ernment is permitting numerous
new "an*s.
15
Aoreign "an*s were all prepared to snatch the countryHs limited mar*et, with
potentials of new "usiness opportunities. 6o!ernment step at this time should
ha!e "een to strengthen local "an*s through underta*ing needed reforms.
4nstead of doing that new "an*s were permitted further squeezing the "usiness
opportunities.
Another senior pri!ate "an*er said, I9unning a "an* is !ery difficult in a country
li*e Bangladesh, with inadequate and ineffecti!e legal framewor*. >ermitting new
"an*s without addressing the pro"lems was o"!iously wrong decision.
The pri!ate "an*s had concentrated their acti!ities only in a few areas. The new
"an*s would also try to share the most potential mar*et, forcing others to face
tougher competition. This would also restrict other to e8pand fast to cater to the
"an*ing needs of the people in other areas.
The international Monetary Aund $4MA+ and the world Ban* earlier as*ed the
go!ernment to reconsider its decision to permit new "an*s without restoring
discipline in the sector, crippled "y huge amount of "ad de"ts.
16
17
18
Head Office
HSBC Bangladesh
Anchor Tower, Sonargaon Road
)ha*a
3. THE HONG)ONG AND SHANGHAI
BAN)ING CORPORATION 'IMITED *HSBC+
3.1 INTRODUCTION
(eadquartered in =ondon, (&B% (oldings plc is one of the largest "an*ing and
financial ser!ices organizations in the world. 4t "egan operations in (ong .ong
more than 230 years ago. The (&B% 6roupHs international networ* comprises
some 0,000 offices in 12 countries and territories in -urope, the Asia5>acific
region, the Americas, the Middle -ast and Africa.
?ith listings on the =ondon, (ong .ong, ew @or* and >aris stoc* e8changes,
around 230,000 shareholders in some 200 countries and territories hold shares in
(&B% (oldings plc. The shares are traded on the ew @or* &toc* -8change in the
form of American )epository 9eceipts.
Through a glo"al networ* lin*ed "y ad!anced technology, including a rapidly
growing e5commerce capa"ility, (&B% pro!ides a comprehensi!e range of
financial ser!ices: personal, commercial, corporate, in!estment and pri!ate
"an*ingJ trade ser!icesJ cash managementJ treasury and capital mar*ets
ser!icesJ insuranceJ consumer and "usiness financeJ pension and in!estment
fund managementJ trustee ser!icesJ and securities and custody ser!ices.
19
3.2 HSBC GROUP AT A G'ANCE
-ssets ,&D 0EC,33< million at 30 Fune 2002.
6rofit 8pre:ta=; ,&D <,0C0 in 2002.
Staff &ome 200,000 employees in 12 countries and
territories.
Share listins (&B% (oldings is listed on the =ondon, (ong .ong,
ew @or*, and >aris stoc* e8changes. Trading of the
companyHs shares on the stoc* e8changes is
conducted in =ondon, (ong .ong and >aris in the
,&D 0.<0 ordinary shares, and in ew @or* in the
form of American )epository &hares, each of which
represents fi!e ordinary shares.
Technoloy (&B% maintains one of the worldHs largest pri!ate
data communication networ*s and is reconfiguring its
"usiness for the e5age. 4ts rapidly growing e5
commerce capa"ility includes the use of the 4nternet,
>% "an*ing o!er a pri!ate networ*, interacti!e TK,
and fi8ed and mo"ile telephones.
6roduct rane >ersonal, commercial, corporate, in!estment and
pri!ate "an*ingJ trade ser!icesJ cash managementJ
treasury and capital mar*et ser!icesJ insuranceJ
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consumer and "usiness financeJ pension and
in!estment fund managementJ trustee ser!icesJ and
securities and custody ser!ices.
>ey events The (&B% 6roup e!ol!ed from the (ong .ong and
&hanghai Ban*ing %orporation =imited, which was
founded in 21C< in (ong .ong with offices in
&hanghai and =ondon and an agency in &an
Arancisco. The 6roup e8panded primarily through
offices esta"lished in the "an*Hs name until the mid5
23<0s when it "egan to create or acquire
su"sidiaries. This strategy culminated in 2332 with
one of the largest "an* acquisitions in history when
(&B% (oldings acquired Midland Ban* plc $now called
(&B% Ban* plc+, which was founded in ,. in 213C.
21
3.3 FOUNDATION , GROWTH OF HSBC-
The (&B% 6roup is named after its founding mem"er, The (ong .ong and
&hanghai Ban*ing %orporation =imited $(&B%+, which was esta"lished in 21C< in
(ong .ong and &hanghai to finance the growing trade "etween %hina and
-urope. The inspiration "ehind the founding of the "an* was Thomas &utherland,
a &cot who was then wor*ing as the (ong .ong &uperintendent of the >eninsular
and 'riental &team a!igation %ompany. (e realized that there was considera"le
demand for local "an*ing facilities "oth in (ong .ong and along the %hina coast
and he helped to esta"lish the "an* in March 21C<. Then, as now, the "an*Hs
headquarters were at 2 LueenHs 9oad %entral in (ong .ong and a "ranch was
opened one month later in &hanghai.
Throughout the late nineteenth and the early twentieth centuries, the "an*
esta"lished a networ* of agencies and "ranches "ased mainly in %hina and &outh
-ast Asia "ut also with representation in the 4ndian su"5continent, Fapan, -urope
and orth America. 4n many of its "ranches the "an* was the pioneer of modern
"an*ing practices. Arom the outset, trade finance was a strong feature of the
"an*Hs "usiness with "ullion, e8change and merchant "an*ing also playing an
important part. Additionally, the "an* issued notes in many countries throughout
the Aar -ast.
)uring the &econd ?orld ?ar the "an* was forced to close many "ranches and
its head office was temporarily mo!ed to =ondon. (owe!er, after the war the
"an* played a *ey role in the reconstruction of the (ong .ong economy and
"egan to further di!ersify the geographical spread of the "an*. The group
e8panded primarily through offices esta"lished in the "an*s name until the mid
23<0s when it "egan to create or acquire su"sidiaries. This strategy culminated in
22
2332 with one of the largest "an* acquisitions in history when (&B% holdings
acquired Midland Ban* plc, which was founded in ,. in 213C. The following are
some *ey de!elopments in the group since 23<<:
"9'' The (ong .ong and &hanghai Ban*ing %orporation of
%alifornia was founded.
"9'9 The (ong .ong and &hanghai Ban*ing %orporation acquires
The British Ban* of the Middle -ast $formerly the 4mperial
Ban* of >ersia, now called (&B% Ban* Middle -ast+ and The
Mercantile Ban* $originally the %hartered Mercantile Ban* of
4ndia, =ondon ; %hina+.
"9#? ?ayfoong Ainance =imited, a (ong .ong hire5purchase and
personal finance su"sidiary, is esta"lished.
"9#' The (ong .ong and &hanghai Ban*ing %orporation acquires a
ma7ority shareholding in (ang &eng Ban* =imited, now the
second5largest "an* incorporated in (ong .ong.
"9#* Midland Ban* purchases a one5third share in the parent of
=ondon Merchant "an* &amuel Montagu ; %o. =imited $soon
to "e renamed (&B% 9epu"lic Ban* $,.+ =imited+.
"9*" The %yprus >opular Ban* =imited $now =ai*i Ban*+ "ecomes
an associated company of the 6roup.
"9*$ The (ong .ong and &hanghai Ban*ing %orporation forms
merchant "an*ing su"sidiary, ?ardley =imited $now called
(&B% 4n!estment Ban* Asia =imited+. Midland Ban* acquires
a shareholding in ,BAA Ban* =imited $now *nown as British
Ara" %ommercial Ban* =imitd+.
"9*( &amuel Montagu "ecomes a wholly owned su"sidiary of
Midland.
23
"9*, The &audi British Ban* is esta"lished under local control to
ta*e o!er The British Ban* of the Middle -astHs "ranches in
&audi Ara"ia.
"9,? The (ong*ong and &hanghai Ban*ing %orporation acquires
<2B of ew @or* &tateHs Marine Midland Ban*, .A. $now
called (&B% Ban* ,&A+, with a controlling interest in %oncord
=easing. ,.5"ased merchant "an* Antony 6i""s "ecomes a
wholly owned su"sidiary. Midland acquires a controlling
interest in leading 6erman pri!ate "an* Trin*aus ; Bur*hardt
.gaA $now (&B% Trin*aus ; Bur*hardt .gaA+.
"9," (ong*ong Ban* of %anada $ow (&B% Ban* %anada+ is
esta"lished in Kancou!er. The 6roup acquires a controlling
interest in -quator (oldings =imited.
"9,$ -gyptian British Ban* &.A.-. is formed, with the 6roup holding
a E0B interest.
"9,% Marine Midland Ban* acquires %arroll Mc-ntee ; Mc6inley $now
(&B% &ecurities $,&A+ 4nc.+, a ew @or* "ased primary dealer
in ,& go!ernment securities.
"9,' ew (ead office "uilding opened at (ong .ong.
"9,# The (ong .ong and &hanghai Ban*ing %orporation esta"lishes
(ong .ong Ban* of Australia =imited $now (&B% Ban*
Australia =imited+ and acquires Fames %apel ; %o. =imited, a
leading =ondon5"ased international securities company.
"9,* The (ong .ong and &hanghai Ban*ing %orporation acquires
the remaining shares of Marine Midland and a 2E.3B equity
interest in Midland Ban*.
"9,9 A strategic alliance is entered into "etween The (ong .ong and
&hanghai Ban*ing %orporation and %alifornia5"ased ?ells
24
Aargo Ban*. Midland Ban* =aunches Airst )irect, the ,.Hs first
2E5hour telephone "an*ing ser!ice.
"99" (&B% (oldings is esta"lishedJ its shares are traded on the
=ondon and (ong .ong stoc* e8changes.
"99$ (&B% (oldings purchases the remaining equity in Midland
Ban*. (&B% 4n!estment Ban* plc is formed.
"99% The (&B% 6roupHs (ead 'ffice mo!es to =ondon. Aorward Trust
6roup =imited $now (&B% Asset Ainance $,.+ =imited+, a
Midland su"sidiary, acquires &wan ational =easing,
esta"lishing the ,.Hs third largest !ehicle contract hire
company.
"99( The (ong .ong and &hanghai Ban*ing %orporation is the first
foreign "an* to incorporate locally in Malaysia, forming (ong
.ong Ban* Malaysia Berhad $now (&B% Ban* Malaysia
Berhad+.
"99' ?ells Aargo ; %o. and (&B% (oldings esta"lish ?ells Aargo
(&B% Trade Ban*, .A. in %alifornia to pro!ide customers of
"oth companies with trade finance and international "an*ing
ser!ices.
"99* (&B% (oldings and ?acho!ia %orporation of the ,nited &tates
form a non5equity alliance to mar*et corporate financial
ser!ices worldwide. Aorward Trust acquires -!ersholt $now
(&B% 9ail $,.+ =imited+, a rail rolling5stoc* leasing company
and the largest owner of electric trains operating on the ,.
mainline networ*. Marine Midland Ban* acquires Airst Aederal
&a!ings and =oan Association of 9ochester in ew @or*. 4n
=atin America, the 6roup esta"lishes a new su"sidiary in Brazil,
25
Banco (&B% Bamerindus &.A. and completes the acquisition of
9o"erts 02&.A. de 4n!ersiones in Argentina $now (&B%
Argentina (oldings &.A.+.
"999 &hares in (&B% (oldings "egin trading on a third stoc*
e8change, ew @or*. (&B% (oldings acquires 9epu"lic ew
@or* %orporation $now integreted with (&B% ,&A 4nc.+ and its
sister company &afra 9epu"lic (oldings &.A. $now (&B%
9epu"lic (oldings $=u8em"ourg+ &.A.+. Midland Ban* acquires
a 00.03B interest in Mid5Med Ban* p.l.c. $ow called (&B%
Ban* Malta p.l.c.+, MaltaHs largest commercial "an*.
$??? (&B% and Merrill =ynch form a 7oint !enture to launch the first
international online "an*ing and in!estment ser!ices company.
(&B% reaches an agreement in principle to acquire 0<B of the
issued shares of Bang*o* Metropolitan Ban*, the eighth largest
"an* in Thailand. (&B% acquires %redit %ommercial de Arance
$%%A+, a ma7or Arench "an*ing group. &hares in (&B%
(oldings are listed on a fourth stoc* e8change, in >aris.
$??" Agreement is reached for (&B% to acquire Barclays Ban*/s
"ranches and fund Management %ompany in 6reece. ew EE5
floor (eadquarter "uilding at =ondon/s %anary ?harf is due to
"e ready for occupation.
26
3.4 HSBC INTERNATIONA' NETWOR)-
The (&B% 6roupHs international networ* comprises of some 0,000 offices in 12
countries. A "rief list is presented "elow:
27
3. COUNTRY C'ASSIFICATIONS-
To ensure that *ey resources $management time, capital, (uman resources and
information technology+ are correctly allocated and that the e8change of "est
practice is accelerated "etween entities, the group has classified the countries
where it operates into 3 categories: the large, the ma7or and the international.
These classifications are a function of sustaina"le, attri"uta"le earnings, the
num"er of retail clients, "alance sheet and size of operation. A "rief presentation
of this classification is shown "elow:
28
29
3.& BOARD OF DIRECTORS-
Sir @ohn Bond, Group Chairman
Age <3. An e8ecuti!e )irector since 2330J 6roup %hief -8ecuti!e from 2333 to
2331. Foined (&B% in 23C2J an e8ecuti!e )irector of The (ong .ong and
&hanghai Ban*ing %orporation =imited from 2311 to 2332. %hairman of (&B%
Ban* plcJ (&B% ,&A 4nc., (&B% Ban* ,&A and (&B% Ban* Middle -ast and a
)irector of The (ong .ong and &hanghai Ban*ing %orporation =imited. %hairman
of the 4nstitute of 4nternational Ainance and a )irector of Aord Motor %ompanyJ A
mem"er of the %ourt of the Ban* of -ngland.
The Baroness )unn, )B1
Deputy Chairman & senior non-executive Director
Sir Brian 7offat, 'B-
Deputy Chairman and senior non-executive Director
0 Ahitson!
Group Chief 1=ecutive
The Bord Butler, 6%B, %K'
0 > / ChCien, %B-
30
A 0 6 )alton ) G 1ldon
) @ /lint A > B /un, 'B-
S > Green S Hint+e
- A @ebson Sir @ohn >emp:Aelch
The Bord 7arshall C 7iller Smith
Sir 7ar< 7oody: Stuart 7 7urofushi
C 1 0eichardt H Sohmen, 'B-
Sir -drian Swire
C / A )e Croisset
31
3.( HSBC P.%/c%p01 B2$%/e$$
E/"%"%e$-
The group is represented "y different "usiness entities in o!er 12 countries and
territories around the world. 4t would "e difficult to list them all indi!idually so the
name of the ma7or entities is shown on the following page along with their region
and !olume of operation.
3.3 HSBC G.o2p V%$%o/-
3.4 HSBC G.o2p V012e$-

3.15 HSBC Go6e./%/7 O89ec"%6e-
32
3.11 HSBC:S BUSINESS PRINCIP'ES
AND VA'UES
The (&B% 6roup is committed to fi!e Business >rinciples:
• 'utstanding customer ser!iceJ
• -ffecti!e and efficient operationsJ
• &trong capital liquidityJ
• %onser!ati!e lending policyJ
• &trict e8pense disciplineJ
(&B% also operates according to certain .ey Business Kalues:
• The highest personal standards of integrity at all le!elsJ
• %ommitment to truth and fair dealingJ
• (and5on management at all le!elsJ
• 'penly esteemed commitment to quality and competenceJ
• A minimum of "ureaucracyJ
• Aast decisions and implementationJ
• >utting the 6roupHs interests ahead of the indi!idualHsJ
• The appropriate delegation of authority with accounta"ilityJ
• Aair and o"7ecti!e employerJ
• A merit approach to recruitmentMselectionMpromotionJ
• A commitment to complying with the spirit and letter of all laws and
regulationsJ
• The promotion of good en!ironmental practice and sustaina"le
de!elopment and commitment to the welfare and de!elopment of
each local community.
33
3.12 HSBC B.0/; , Co.po.0"e
I;e/"%"!-
The (e8agon logo of (&B% deri!es from (&B%/s traditional flag, a white rectangle
di!ided diagonally. =i*e many other (ong .ong company flags in the last century,
the design of the flag was "ased on the cross of &T.Andrew, The >atron &aint of
&cotland.
(&B% "rand ; corporate identity represents what (&B% wants its "rand to mean
to its customer. 4t is deri!ed from the groups:
Corporate Character
(&B% is a prudent, cost conscious, ethically grounded, conser!ati!e, trustworthy
international "uilder of long5term customer relationships.
Basic )rives
(igher producti!ity, Team 'rientation, %reati!e 'rganization ; %ustomer
'rientation.
Dision
To "e the world/s leading financial company.
The essence of (&B% "rand is integrity, trust and e8cellent customer ser!ice. 4t
gi!es confidence to customers, !alue to in!estors ; comfort to colleagues.

34
3.13 HSBC %/ B0/710;e$#-
The (&B% Asia >acific group represents (&B% in Bangladesh. (&B% opened it/s
first "ranch in )ha*a in 20
th
)ecem"er, 233C to pro!ide personal "an*ing
ser!ices, trade and corporate ser!ices, and custody ser!ices. The Ban* was
awarded 4&'3002 accreditation for its personal and "usiness "an*ing ser!ices,
which co!er trade ser!ices, securities and safe custody, corporate "an*ing,
(e8agon and all personal "an*ing. This 4&'3002 designation is the first of its *ind
for a "an* in Bangladesh. The (ong .ong and &hanghai Ban*ing %orporation
Bangladesh =td. primarily limited its operations to help garments industry and to
commercial "an*ing. =atter, it is e8tended to pharmaceuticals, 7ute and consumer
products. 'ther ser!ices include cash management, treasury, securities, and
custodial ser!ice.
9ealizing the huge potential and growth in personal "an*ing industry in
Bangladesh, (&B% e8tended its operation to the personal "an*ing sector in
Bangladesh and within a !ery short span of time it was a"le to "uild up a huge
client "ase. -8tending its operation further, (&B% opened a "ranch at %hittagong,
three "ranch offices at )ha*a $6ulshan, Moti7heel and )hanmondi+ and an
offshore "an*ing unit on o!em"er 2331. At 30 Fune 2003, the num"er of
employees of this "an* in Bangladesh was 2<0.
4n 2002, paid5up capital of this "an* was B)T 310 million. )eposit of this "an*
was B)TE,310 million. Among this deposit, called deposit was B)T E10 million
and fi8ed deposit was B)T 2,323 million. The amount of ad!ance and in!estment
was B)T 2,210 million and B)T 200 million respecti!ely. 4n 2002, this "an*
operated foreign e8change "usiness of B)T 1,23E million.
35
(&B% Bangladesh is under strict super!ision of (&B% Asia >acific 6roup, (ong
.ong. The %hief -8ecuti!e 'fficer of (&B% Bangladesh manages the whole
"an*ing operation of (&B% in Bangladesh. ,nder the %-' there are heads of
departments who manage specific "an*ing functions e.g. >ersonal "an*ing,
corporate "an*ing, etc.
%urrently (&B% Bangladesh is pro!iding a wide range of ser!ices "oth two
indi!idual and corporate le!el customers. 4n the year 2000, the "an* launched a
wide array of personal "an*ing products designed for all *inds of $middle and
higher5middle income+ indi!idual customers. &ome such products were >ersonal
loans, car loans, etc. 9ecently the "an* launched three of its personal "an*ing
products G Ta8 loan, >ersonal secured loan ; Automated Tele Ban*ing $ATB+
ser!ice. These products are designed to meet the di!erse customer needs more
completely.
(&B% in Bangladesh also specializes in self5ser!ice "an*ing through pro!iding 2E5
hour ATM ser!ices. 9ecently it has introduced )ay ; ight "an*ing "y installing
-asy5pay machines in Banani, ,ttara and )hanmondi to "etter satisfy the needs
of "oth customers and non5customers. 4n total (&B% currently has 3 ATM/s $< on5
site ; E offsite+ and 3 -asy5pay machines located at !arious geographical areas of
)ha*a ; %hittagong.
36
3.14 HSBC BANG'ADESH AT A G'ANCE-
4ame of the Orani+ation: The (ong .ong &hanghai Ban*ing
%orporation Bangladesh =T)
5ear of 1stablishment: 233C
Head Office: Anchor Tower, 2M25B &onargaon 9oad
)ha*a 220<, Bangladesh
4ature of the orani+ation: Multinational company with su"sidiary
group in Bangladesh.
Capital: >aid up capital: T. E310 million
)eposit G T* E,310 million
Ad!ance G T* 3,2<< million
Shareholders: (&B% group shareholders
6roducts: &a!ings ; deposit ser!ices.
=oan products.
%orporate and 4nstitutional ser!ices.
Trade ser!ices
(e8agon
37
7anaement: 7r! )avid @ Griffits
%hief -8ecuti!e 'fficer
7r! Aasim -dnan Aahed
%hief 'perating 'fficer
7r! 7amoon 7 Shah
Manager, >ersonal Ainancial &er!ices
7r! -dil &slam
(ead of %orporate Ban*ing
7r! Syed - H 3ddin
Manager, (uman 9esources
7r! 7unir Hussain
Manager, Mar*eting
4umber of Offices: < $)ha*a, Moti7heel, 6ulshan,
)hanmondi ; %hittagong+
4umber of -T7Es: 3
4umber of 1asy 6ay
7achines: 3
4umber of employees: 2<0
Technoloy: 'ffers full online "an*ing from "ranch
to "ranch and also from )ha*a to
%hittagong!
Service Coverae F
Customers: &er!es indi!idual and corporate
customers within )ha*a ; %hittagong.
38
3.1 HSBC B0/710;e$# O<<%ce$ , ATM
Ce/"e.$:
(&B% Bangladesh currently pro!ides ser!ices from two of it/s full ser!ice "ranches
one in )ha*a and the other one in %hittagong. Besides these offices there are
three personal "an*ing Booth offices located at 6ulshan, Moti7heel and
)hanmondi. There is currently 1 ATM/s operating in )ha*a and 2 in %hittagong.
The list of these offices is shown "elow along with there their addresses:
Branches F Booths:
• )ha<a 7ain Office 8/ull service branch with one -T7;
Anchor Tower, &onargaon 9oad 5 )ha*a
• Gulshan Office 86ersonal Ban<in Booth with one -T7;
6ulshan A!enue, )ha*a
• 7otijheel Office 86ersonal Ban<in F 0emittance office with " -T7;
9a7u* A!enue, Moti7heel5 )ha*a
• )hanmondi Office 86ersonal Ban<in Booth with one -T7;
9oad520, )hanmondi5)ha*a
• Chittaon Office 8/ull service branch with one -T7;
'sman %ourt, Agra"ad G %hittagong
• O<<$%"e ATM$-
2. ,ttara model town, ,ttara 5 )ha*a
2. Mumtaz plaza, )hanmondi 5 )haha
39
3. .emal Atatur* A!enue, Banani 5 )ha*a
E. %oncord Twin Towers, &hantinagar G )ha*a
3.1& O.70/%=0"%o/01 H%e.0.c#! A"
HSBC> B0/710;e$#-
(&B% follows a E layer management philosophy in Bangladesh. These are
Managers, -8ecuti!es, 'fficers ; Assistant officers. The %-' is the top most
authority of all the le!els. Managers are the departmental heads who are
responsi"le for the acti!ities of their departments. They are the heads of the
department and formulate strategies for that department. e.g. (uman 9esources
Manger. -8ecuti!es ha!e the authority ne8t to managers. They are "asically
responsi"le for certain acti!ities ; organizational functions. e.g. Admin -8ecuti!e.
These two layers represent the management le!el of (&B% Bangladesh.
'fficers are the ne8t persons to stand in the hierarchy list. They are the typical
mid5le!el employees of (&B% organizational hierarchy. These officers are
responsi"le for managing the operational acti!ities and operating le!el
employees. The operating le!el employees of (&B% who are ran*ed as Assistant
'fficer fill the last layer of this hierarchy. They perform they day5to5day
operational acti!ities of (&B%. An organizational hierarchy chart is shown "elow:
40
7anaers
1=ecutives
Officers
-ssistant Officers
3.1( ORGANI?ATIONA' STRUCTURE OF
HSBC B0/710;e$#-
%!"*!" Chief 1=ecutive Committee:
The organizational structure of (&B% Bangladesh is designed according to the
!arious ser!ice and functional departments. The %hief -8ecuti!e 'fficer $%-'+
heads the chief e8ecuti!e committee, which decides on all the strategic aspect of
(&B%. The %-' is the person who super!ises the heads of all the departments
and also is the ultimate authority of (&B% Bangladesh. (e is responsi"le for the
all the acti!ities of (&B% Bangladesh and all its consequences. (e administers all
the functional departments and communicates with the department heads for
smooth functioning of the organization. The (&B% %hief -8ecuti!e %ommittee is
formed with the heads of all departments along with the %-'. The structure of
this top5most authority is shown in the figure a"o!e. Besides the %-' the %-% is
staffed with < more managers: %hief 'perating 'fficer, Manager >ersonal
Ainancial &er!ices (ead of %orporate Ban*ing, Manager (uman 9esource
)epartment and Manager Mar*eting.
41
% h i e f ' p e r a t i n g
' f f i c e r
M a n a g e r
> e r s o n a l A i n a n c i a l & e r ! i c e s
( e a d o f
% o r p o r a t e B a n * i n g
M a n a g e r
( u m a n 9 e s o u r c e ) e p a r t m e n t
M a n a g e r
M a r * e t i n g
% h i e f - 8 e c u t i ! e ' f f i c e r
3.13 F2/c"%o/01 Dep0."@e/"$ o<
HSBC-
(&B% acti!ities are performed through functional departmentalization. &o, the
departments are separated according to the functions they perform $(9,
Mar*eting, >ersonal Ban*ing, etc.+. There are C ma7or functional departments at
(&B%: (uman 9esources, &er!ices, Ainancial %ontrol, >ersonal Ban*ing,
%orporate Ban*ing and Mar*eting. ?ithin these ma7or departments there are
some other su"sidiary departments that allow smooth operation of their own
ma7or departmental function. A graphical presentation of all the departments
$Ma7or ; minor+ is shown in the following page. A "rief functional description of
these departments is discussed "elow:
Functional Departments of HSBC
NNNNNNNNNNN
4T G 4nformation Technology
>%M G >ayment and cash management
(,B G (&B% uni!ersal Ban*ing
42
%!",!" Human 0esource )epartment:
The (uman resource Manager heads this department. The ma7or functions of this
department are 9ecruitment, Training and de!elopments, >ersonnel &er!ices and
&ecurity. The (9 department is much concerned with the discipline that is set up
"y the (&B% group. (&B% group has got strict rules and regulations for each and
e!ery aspect of "an*ing, e!en for non5"an*ing purposesJ i.e. The )ress %ode. All
these ma7or personnel functions are integrated in the "est possi"le way at (&B%,
which results in its higher producti!ity. The (uman resource officer monitors the
employee staffing and administration acti!ities. The Training officer super!ises
Training, de!elopment ; rotation acti!ities. The structure of the (9 department is
shown "elow:
Structure of Human 0esource )epartment
-O G Assistant 'fficer
43
%!",!"!" 0ecruitment, Trainin and )evelopment:
(&B% Bangladesh limited follows a standard procedure for recruitment and
selection. (owe!er there is no set time period when this recruitment and
selection ta*es place. -ach )epartmental head places the requisition for
recruitment to the (uman resource officer, if any !acancy is created due to $2+
9etirement, $2+ 9esignation $3+ )eath, or $E+ -8tra wor* load.
The process for the recruitment of personnel for managerial and non5managerial
le!el differs slightly "ut the "asic steps are same in "oth the cases. The steps
are5
Step- I Initial Screening:
Step- II Screening by Departmental eads:
Step- III !illing of the S"C #ob $pplication !orm %#$!&
Step- I' Screening on the basis of S$!:
Step- ' Initial Intervie(
Step )'I Selection for (ritten test
Step- 'II *ritten test
Step )'III +valuation of test papers
Step )I, Selection of !inal intervie(ees
Step ), !inal intervie(
Step- ,I Documentation Chec-
Step ) ,II .edical +xamination
Step ) ,III /robationary $ppointment:
Step- ,I' Confirmation
4n order to enhance the efficiency of the employees, (&B% gi!es emphasis on the
"oth theoretical and practical training for its personnel. All the training and
44
de!elopment programs are aimed at two "asic reasons 5 $2+ s*ill de!elopment
$2+ moti!ation through counseling and persuasion to change !alue system. Aor
the top management or senior Managers there is pro!ision for o!erseeing training
arranged "y (&B% group. Aor the mid5le!el manager or other managerial le!el
there is pro!ision for regional training courses. Besides, for non5management
le!el there are training programs arranged in different institution and also with in
the organization. Aor the operati!es, !arious on the 7o"5training program are
conducted within the company. Ainally, (&B% follows a performance "ased
promotion system for all le!els of its employees.
%!",!"!$ 6erformance -ppraisal
The company follows "oth rating and descripti!e systems for the performance
appraisal. Although the appraisal system is non5participati!e "ut the employees
are annually assessed with a 7oint consultation with their immediate super!isor
and departmental head.
9ating is mainly done on the following factors5
i+ .nowledge of wor*
ii+ Accuracy and 9elia"ility
iii+ &peed
i!+ 6eneral intelligence
!+ &ense of responsi"ility and duty
!i+ )iligence
!ii+ 4nitiati!e and self confidence
!iii+ 9eadiness to wor* for and with others.
45
%!",!"!% Aelfare -ctivities:
(&B% has many well5structured welfare policies for its employees. These include
well5structured wage ; salary policy, medical facility, sports ; cultural facilities,
pro!ision for loans at a minimal rate, free uniform etc. These welfare policies aim
at strengthening the relationship of the employees to the organizations and ma*e
them more responsi"le in their respecti!e positions.
%!",!$ Services )epartment:
This is an integral and !ital part of the "an*. The ser!ices department ensures
smooth operation and functioning within and "etween all the departments of
(&B%. 4t also pro!ides continuous support to the core "an*ing acti!ities of (&B%.
The Manager of &er!ices heads this department who formulates and manages
!arious critical issues of the ser!ices function of (&B%. (e is followed "y a group
of e8ecuti!es who are the heads of !arious su"sidiary di!isions that operate
within the ser!ices department. The ser!ices department is considered as the
"ac*"one of all other departments. The !arious su"sidiary di!ision within this
department are Administration, 4T, 4nternal %ontrol $4%+, etwor* &er!ices %enter
$&%+, and (,B. A structure of the ser!ices department is presented "elow
followed "y a "riefing of the su"sidiary di!isions:
46
%!",!$!" -)7&4&ST0-T&O4 :
=i*e that of any other organizations, the Admin department of (&B% ma*es sure
that the organizations mo!es on with all its departments and staffs operating
according to all the rules and regulations of the company. 4t also pre!ents any
"ottlenec*s within the wor* process and ensures smooth functioning. The admin
department has two di!isions G general administration and Business support
ser!ices.
The general admin di!ision is pretty much similar to the admin departments of
other companies that ensure discipline and regulatory concerns. The "usiness
support ser!ices pro!ide supports to the departments during employee lea!es
and sudden terminations so that the department can function without pro"lems.
%!",!$!" &T
This department gi!es the software and hardware supports to different
departments of the "an*. As (&B% is engaged in online "an*ing, the role of 4T is
!ery crucial for the "an*. This department is the most acti!e department of (&B%
where employees always stand "y to sol!e any pro"lems in the system. The
managers and e8ecuti!es of 4T di!ision wor* continuously to de!elop the total 4T
system of (&B% so that it can "e operated with ease, accuracy and speed.
%!",!$!% &4T104-B CO4T0OB:
(&B% has internal auditors who !isit on regular "asis and su"mit the report to the
higher authority for audit purposes. This gi!es different departments the chance
to *now their mista*es and ta*e necessary correcti!e actions. Again, the Ban*
annually administers a company wide audit program to e!aluate the o!erall
performance of the "an* in Bangladesh.
47
%!",!$!( HSBC 3niversal Ban<in 8H3B;:
The (&B% "an*ing system is called (,B. (&B% does the online "an*ing and it is
(,B, which sets up the parameter for that. This (,B is lin*ed with the (&B%
group !ia satellite and each and e!ery transaction made "y (&B% within
Bangladesh is "eing recorded at the (&B% Asia5pacific headquarters at (ong
.ong !ia (,B. Thus the (,B is the most powerful and important equipment of
(&B% Bangladesh that monitors and trac*s any fraud and faults made with (&B%
Bangladesh.
%!",!$!' 41TAO0> S10D&C1S C14T01 84SC;:
This department can "e descri"ed as the O>ower (ouse of (&B% Bangladesh. &%
does the "ac* office 7o" for the "an*. The main four 7o"s that are performed "y
&% are %learing, &canning of signature cards, issuing chec*"oo*s and sending ;
recei!ing 9emittances. &% loo*s after the clearing process of (&B% and ma*es
necessary contact with the central "an* for maintaining account flows. All the
customer signatures are scanned in this department and are entered into the
system. &% also issues chec*"oo* for new and old accounts "ased on requisition
from !arious "ranches. O9emittance/ is a "an*ing term, which means OTransfer of
funds through "an*s/. ?hen a "an* remits on "ehalf of its customers, it is termed
as outward remittance. 'n the other hand, when the "an* recei!es the
remittance on "ehalf of the "an*, it is inward remittance. The following are the
methods that &% used to remit money for customers: Telegraphic Transfer $TT+,
)emand )raft $))+ ; %ashier/s 'rder.
48
3!"3 /inancial Control )epartment 8/C);:
This is considered as the most powerful department of (&B%. 4t *eeps trac*s of
each and e!ery transaction made within (&B% Bangladesh. 4t is headed "y
Manager of A%) who ensures that all the transactions are made according to rules
and regulation of (&B% group. Kiolation of such rules can "ring serious
consequences for the law"rea*er. The functions of A%) are "riefly discussed
"elow along with an organ gram of the department:
555
FC – Foreign Correspondence
PCM – Payment & cas management
!CM – !"t#ard cas management
49
%!",!%!" /orein Correspondence 8/C;:
A% *eeps records of all the accounts of (&B%. All the !ouchers, notes, ad!ices
and transaction reports of the "ranches are sent to A% for record *eeping
purposes. A% also prepares the financial statements for the "an*s and decided
upon "an*s assets and lia"ilities. 4t also deals with the returns that are su"mitted
to the %entral Ban* on regular inter!al.
%!",!%!$ Treasury:
This department wor*s under A%). Their main 7o" is to ta*e decisions regarding
purchase and sell of foreign %urrency. The purpose of TreasuryHs operations is to
utilize the funds effecti!ely and arrange funds at a lowest possi"le rate of
interest, through maintaining effecti!e relationship with other "an*s and following
the 6o!ernment rules and foreign e8change regulations
%!",!%!% 6ayment and cash 7anaement 86C7;:
>%M deals with the inter5"an* payment. >%M strategies are designed to ensure
efficiency, profita"ly and comprehensi!e support.
50
%!",!( 6ersonal Ban<in )ivision 86BB;:
>=B is the most flourishing department of (&B% Bangladesh. This department
"asically deals with the management of products and ser!ices offered to the in
indi!idual consumers. ?ithin a span of only se!en years, (&B% >=B has grown
tremendously and is still growing with its inno!ati!e products and ser!ice
offerings. Manager of >=B, Mr. Mamoon M &hah, manages this department. (e is
the person "ehind the astounding growth of >=B department in (&B% Bangladesh.
%hief of >=B manages and super!ises the >ersonal Ban*ing acti!ities of the
"ranch networ* of (&B% Bangladesh. The < "ranches of (&B% "asically deal with
the personal "an*ing acti!ities and pro!ide !arious accounts ser!ices to indi!idual
customers.
%!",!(!" Branch networ<:
There are fi!e "ranches of (&B%, E situated at different )ha*a and 2 at
%hittagong. 'nly the )ha*a office $head office+ "ranch ; %hittagong "ranch deals
with "oth corporate and personal "an*ing. The other 3 offices only deal with the
personal "an*ing acti!ities. There functions are to pro!ide !arious financial
ser!ices to the consumers. These include customer ser!ices, sale of !arious >=B
products, opening new accounts, pro!iding cash, remittance and other teller
ser!ices, etc. the "ranches are quite decentralized for "etter deli!ery of ser!ices
to customer and ha!e their own premises and facilities. These "ranches are
headed "y "ranch managers. -ach "ranch is staffed with its own team of
employees. A great deal of teamwor* is seen within these "ranches. ATM/s are
situated with each "ranch premises.
51
%!",!(!$ Credit )epartment:
The personal "an*ing credit department deals with the consumer credit schemes
such as the >ersonal loan, car loan, personal secured loan, personal secured
credit etc. which are tailored to meet the demand of indi!idual customers. The
manager of >=B credit, Mr. Auad @usuf .han, appro!es and administers all the
acti!ities of this department. (e is staffed with two loan appro!al officers, two
loan processing officer, two assistant officers and one M4& cler*. The appro!al
officers mainly re7ect or appro!e the credit requests. After "eing chec*ed "y the
appro!al officers, the credit requests go to the processing officers for further
processing of the application.
%!",!(!% -T7 Center:
The ATM center ensures smooth operation of the ATM machines that are located
at )ha*a and %hittagong. The ATM center is responsi"le for regular replenishment
of the off5site ATM/s and ser!icing of all the ATMs. %urrently a total 3 ATMs are in
operation. The ATM center also deals with issuance, termination and ser!icing of
the ATM cards. Basically, the ATM center is the department that is solely
responsi"le for all the acti!ities related to ATM and is the facilitating department
that ena"les customers 2E hour "an*ing support.
%!",!(!( -TB center:
ATB refers to Automated Tele Ban*ing. This department deals with the "ac* office
ser!icing of the (&B% phone "an*ing ser!ices pro!ided to customers. This
department is "asically responsi"le for the acti!ation of ATB, ATB pin generation,
and ATB security management, ATB "loc*ing and trou"leshooting of all ATB
pro"lems. %urrently this department is staffed with one e8ecuti!e and an officer
52
%!",!' Corporate Ban<in:
This di!ision of (&B% pro!ides financial ser!ices to organizational clients. (&B% is
a worldwide leader in "an*ing and financial ser!ices whose success is "ased on its
relationships with its corporate clients. ?hether it is locally or around the world,
(&B% offers a comprehensi!e range of ser!ices that can "e tailored to the
indi!idual needs of the company. Mr. Adil 4slam, who manages the acti!ities of
corporate "an*ing of (&B% BA6=A)-&(, heads the department. Two offices of
(&B% Bangladesh offer corporate "an*ing ser!ices to corporate clients. These are
the )ha*a (ead 'ffice and %hittagong office. %orporate Ban*ing of (&B%
Bangladesh includes %orporate 4nstitutional Ban*ing $%4B+ Trade &er!ice $(TK+,
and (e8agon. These su"5di!isions are discussed "riefly in the following sections:
%!",!'!" Corporate &nstitutional Ban<in 8C&B;:
As their ma7or customers operate internationally, (&B% ser!es them
internationally. 'perating through the ma7or centers and in close liaison with
(&B% 4n!estment Ban*, %orporate and 4nstitutional Ban*ing pro!ides the full
range of the 6roupHs capa"ilities at local and glo"al le!els, with a particular focus
on payments and cash management, trade and securities custody. (&B% also
offers local financial institutions and "an*s access to wide range of financial
ser!ices a!aila"le on an international "asis. The ser!ices are tailored to suit the
needs of the companies. %4B has two separate wings: 9elationship management
department and (e8agon. These are discussed "elow:
%!",!'!$ 0elationship 7anaement )epartment:
The 9M department consists of !arious relationship managers who are assigned
to different corporate client to "etter satisfy their needs. These 9M/s
53
communicate with the clients and are solely responsi"le for the companies they
deal in. Any information regarding a corporate client must "e communicated
through the respecti!e 9M assigned to that corporate client. A relationship
manager may "e assigned more than one company and this decision depends on
the (ead of %orporate Ban*ing.
%!",!'!% H1H-GO4:
The (e8agon department deals with all aspects related to (&B%/s unique "an*ing
software product 5 (e8agon. 4t is the glo"al -lectronic Ban*ing system of (&B%,
which offers the customers more con!enient and efficient "an*ing than e!er
"efore. 4t is an inno!ati!e des*top "an*ing system de!eloped "y the (&B% group,
which operates !ia the group/s proprietary worldwide communications networ*.
%!",!'!( HSBC T0-)1 S10D&C1S 8HTD;
Trade ser!ice is *nown "y !arious names in other "an*s, e.g. Trade Ainance
Aoreign -8change, Aoreign Trade etc. (owe!er, the functions are the same. As
the name suggests, this department is in!ol!ed in facilitating trade, "oth
international ; within Bangladesh. (&B% is the leading pro!ider of trade finance
and related ser!ices to importers and e8porters in Asia. Trade is considered a
core "usiness of the group. The group/s presence in 12 countries of the world
gi!es a good opportunity to control "oth ends of a trade transaction and *eep the
"usiness within the 6roup. The !arious awards it has won from the leading
pu"lications of the world ac*nowledge (&B%/s e8cellence in trade. The trade
ser!ice department has two separate su"sidiaries: %redit Administration ;
Aoreign -8change )i!ision.
54
%redit Administration department "asically deals with all the documentation,
processing, administration and dis"ursement of the import5e8port ser!ices
pro!ided to corporate clients. This department is *nown to "e the heart of (&B%
trade ser!ices that administers and manages all the trade tools and facilities
pro!ided "y (&B% %orporate Ban*ing. &ome important aspects of this department
are =% ad!ising, documentation, ') facilities, guarantees, etc.
The Aor5e8 di!ision of trade ser!ices is solely concerned with the management of
Aoreign e8change inflow and outflow. The Aor5e8 di!ision of trade ser!ice in
relation with &% and A%) manages the foreign currency traffic of (&B% that
originates from %orporate Ban*ing and trade ser!ices.
%!",!# 7ar<etin )epartment:
The si8th ma7or department of (&B% is the mar*eting department. The mar*eting
department of (&B% play a !ital role in fostering the continuos growth (&B% in
Bangladesh. A manager is assigned to this department who loo*s after the o!erall
mar*eting operation of (&B% in Bangladesh. This department is "asically
concerned a"out mar*eting the company/s products, ser!ices and "uilding a
strong corporate image. The mar*eting department of (&B% has three
su"di!isions: )irect &ales, >romotion ; Mar*eting Administration. This di!ision
are discussed "elow:
%!",!#!" )irect Sales 8)S;:
An e8ecuti!e is assigned to this part of the mar*eting department. The )irect
&ales di!ision coordinate ; manages the sales acti!ities of all the Mo"ile sales
officers $M&'+ of (&B% Bangladesh. The M&'/s "asically ma*es sales of the
company !arious >ersonal Ban*ing products such as, sa!ings accounts, consumer
55
loan, etc outside the "an*ing premises. There are a total of more than 0< mo"ile
sales officers $M&'+ employed in the cities of )ha*a and %hittagong. The M&'/s
are assigned to specific "ranches for ma*ing sales acti!ities more smoothly. The
)& e8ecuti!e sets sales strategies ; targets for the &ales officers and manages
the whole team of M&'/s in Bangladesh. The direct sales department also decides
upon the commission and remuneration of the mo"ile sales officers as their salary
structure is "ased on sales performances. Thus this part of the mar*eting
di!ision is !ery important for the o!erall growth of the >ersonal Ban*ing )i!ision.
%!",!#!$ 6romotion:
This part of the mar*eting department deals with all the promotional acti!ities of
(&B% Bangladesh. >rime responsi"ilities of this department are: Maintaining
strong pu"lic relations with !arious media intermediaries, Ad!ertising the
companies products and ser!ices, "uilding a strong corporate image of (&B% in
Bangladesh.
%!",!#!% 6ublic 0elations:
The promotion department organizes !arious en!ironmental and social acti!ities
in order to "uild a strong corporate image of (&B% in the minds of customers as
well as in the media. Maintaining strong relationship with news media is another
ma7or duty of this department.
%!",!#!( -dvertisin:
The promotion also coordinates all the ad!ertising of (&B% products within
Bangladesh. &ome of the ad!ertising tools that are frequently used "y the
company are as follows:
56
a+ ewspapers Ad!ertising: 9egular ad!ertisements of !arious products and
ser!ices of (&B% are gi!en in some of the countries most renowned daily
newspapers.
"+ Bill"oards: (uge colourful "ill"oards with (&B% logo are found in !arious
ma7or areas of )ha*a and %hittagong. These "ill"oards emphasize on the
needs of customers and shows (&B% logo as solution to their needs.
c+ 9oad &ide &ignposts: Medium sized multi colour signposts focusing on
!arious products of (&B% are found on the roadsides of !arious posh areas
such as, 6ulshan, )hanmondi, Baridhara, Moti7heel, etc.
d+ Mailers: !arious product updates and new product information are
regularly sent to e8isting customers of (&B%.
e+ Brochures: Karious colourful "rochures featuring specific products of (&B%
are "eing displayed and distri"uted to e8isting and potential customers !ia
"ranch offices and Mo"ile sales officers.
These are some of the promotional acti!ities managed and coordinated "y the
promotion department.
%!",!#!' 7ar<etin administration:
This department formulates ; e8ecutes !arious mar*eting strategies of (&B%
Bangladesh. This department also administers !arious mar*eting research
acti!ities on the e8isting and potential customers of (&B%. &ome such research
acti!ities are: mystery shopping, critical incident sur!eys, customer suggestion
sur!eys, etc. The results of these sur!eys are integrated while formulating
!arious mar*eting strategies. This department also deals with the "illing and
in!oicing of !arious mar*eting ; ad!ertising costs of (&B% Bangladesh.
57
4n these are the ma7or departments of (&B% Bangladesh. -8cept the "ranches all
other departments are situated at (&B% Bangladesh head offices located at
Anchor Tower, .awran Bazar. Most of (&B%/s operation and acti!ities are
operated centrally from the head office. But to deal with customers more
completely, the "ranches are gi!en considera"le authority and they operate in a
more decentralized manner "ut su"7ect to !erification of the respecti!e
departments.
58
3.14 PRODUCTS , SERVICES
(&B% Bangladesh carries out all traditional functions, which a commercial Ban*
performs such as Mo"ilization of deposit, dis"ursement of loan, in!estment of
funds, financing e8port ; import "usiness, trade ; commerce ; so on. Besides it
also offers some specialized ser!ices to its customers. >roducts ; ser!ices offered
"y (&B% can "e categorized according to the customers they ser!e. Thus two
ma7or groups can "e identified. They are G indi!idual customers or consumers ;
corporate customers or organizations. An in5depth analysis of (&B%/s product and
ser!ices in Bangladesh is presented in this section. Airst of all, the lia"ility
products of the "an* are discussed. Then, the !arious products and ser!ices of
personal "an*ing di!ision will "e presented. The summary of all the products and
ser!ices of (&B% Bangladesh is displayed in the following page with the help of a
diagram.
%!"9!" 6roducts F Services: Biabilities
The financial products of (&B% can "e categorized into two groups G Asset
products and lia"ility products. Asset products are the !arious types of credit and
loan schemes offered to consumers whereas the lia"ility products consist of all
the sa!ings and deposit schemes offered to customers. 4n the following section,
the lia"ility products of (&B% are descri"ed "riefly:
59
60
%!"9!"!"
Savi ns -ccount :

Thi s i s a deposi t or y account "asi cal l y desi gned f or smal l 5 scal e
sa!er s. Thi s i s an i nt er est "ear i ng account and t he f eat ur es of
t hi s account ar e as f ol l ows:
• 'pening "alance T* <0,000
• A!erage "alance that should "e maintained: T* <0,000
• 4nterest "earing $from E.2<B 5 <.2<B+. 'ne of the unique features of
(&B% sa!ings account is that interest is calculated on daily outstanding
"alance and is credit to customers account e!ery si8 months.
• o restrictions on num"er of Transactions
• o yearly ledger fee
• Aree ATM card and phone "an*ing ser!ice
• )ocumentation required to open the account: one pp5size photograph,
filled account opening form, passport copy ; chec*Mcash of T* <0,000M
• %an "e opened only "y Bangladesh and dual citizens in single or 7oint
names.
%! "9! "! $ C30014T -CCO34T:
Thi s i s a al so a deposi t or y account "asi cal l y desi gned f or
!ar i ous cust omer s. Thi s i s a non i nt er est "ear i ng account and
t he f eat ur es of t hi s account ar e as f ol l ows:
• 'pening "alance T* <0,000
• A!erage "alance that should "e maintained: T* <0,000
61
• o restrictions on num"er of Transactions
• o yearly ledger fee
• on interest "earing
• Aree ATM card and phone "an*ing ser!ice
• %an "e opened only "y:
o 4ndi!iduals $7oint or single+
o >roprietorship companies
o >artnership companies
o =imited %ompanies
o =iason offices
o 6'/s
• )ocumentation needed: !arious *inds of documents are needed for the
companies such as memorandum of association, "oard resolution, etc.
howe!er the requirements for indi!iduals are same as the sa!ings account.
%! "9! "! % SHO0T T107 )16OS& T 8ST);:
These accounts are opened mostly "y the organizations. 'rganizations normally
maintain current accounts in the "an*s. They need to transact "ul* amount
regularly that/s why, current account fits with their requirements. As current
accounts do not pro!ide any interests and as the organizations cannot ha!e
sa!ings account, they are depri!ed of earning any interest despite ha!ing huge
deposit in their accounts. O&hort5term deposit/ accounts ena"le them to earn
interests from their accounts. These *inds of accounts share some properties of
"oth current and sa!ings accounts. The account pro!ides interests which are li*e
the sa!ings accounts and the holder can withdraw any amount any time from his
62
account which is a property of the current account. 4ndi!iduals especially,
"usinessmen maintain such accounts.
63
%! "9! "! (
/&H1) )16OS&T:
4t is also *nown as term deposits. These deposits are made in the "an* for a fi8ed
period of time. This period of time should "e specified in ad!ance. The "an*
needs not maintain cash reser!es against these deposits ; therefore, it offers
interest rates that are higher than the sa!ings accounts.
%! "9! "! '
0esidents /orein Currency Current accounts:
B) nationals residing a"road open this account. Aoreign nationals residing a"road
or in Bangladesh, Aoreign firms registered a"road, Bangladeshis wor*ing in
multinationals at Bangladesh and recei!ing salary in A% can also open such
account. The account is non5interest "earing and there are !arious *inds of
restrictions for withdrawals and deposits. The account can "e maintained in -uro
$-,9+, >ound &terling $6B>+ and ,& )ollar $,&)+.
%! "9! "! #
4on:resident forein currency accounts:
These are time deposit interest "earing accounts. They can "e opened "y all non5
resident Bangladeshi nationals, persons ha!ing dual citizenship, shipping staffs,
etc. they can "e maintained in -,9, 6B> ; ,&) currencies. These accounts are
strictly monitored "y the central "an* and restrictions e8ist for these accounts.
%! "9! "! *
0esident forein currency deposit accounts
Balances in these accounts are freely transfera"le a"road without any restriction
from Bangladesh "an*. 9esident Bangladeshis returning from a"road can open
this account within one month of hisMher return.
64
%! "9! "! ,
Convertible Ta<a accountI
)iplomatic missions, , organizations, non5profit international companies,
foreign contractors ; consultants, e8patriate resident employees of , missions
can open these accounts. These accounts are maintained in T*. and are non5
interest "earing.
%! "9! "! 9
1=porters 0etention .uota accounts:
-8porters earn foreign currency. But due to legal restriction posed "y the
Bangladesh "an*, they cannot *eep foreign currency more that D<,000. As the
e8porters earn "ul* of foreign e8change and are depri!ed of the "enefits of
foreign currency accounts, a special *ind of account is created to "enefit them. 4n
this special type of account they can *eep up to a 0B of their total amount of
foreign currency e8ports and earn interests according to dollar interest rates.
&ome other special "enefits are also awarded to such customer such as free
endorsements, withdrawals that are higher than the ma8imum limits, discounted
rates for T%/s, etc. They use those accounts in the purpose of remittance and
other "usiness purposes.
%! "9! "! "?
Other accounts:
There are !arious other accounts that are created to meet customer demands and
requirement. &uch accounts are customized and restrictions on these accounts
are su"7ect to change.
65
Services offered to these accounts:
?ide ranges of ser!ices are offered to the customers who hold these accounts.
&ome such ser!ices are:
• Aree ATM %ard, chec* "oo* ; phone "an*ing ser!ice
• %hequesMcash deposits
• &tanding instruction
• LuarterlyMmonthly statement of account
• Aoreign currency -ndorsement against tra!el quota and sale of Tra!elers
cheques $Thomas %oo*+.
• 4ssue of &ol!encyMBan* certificate
• >ayment orders, demand drafts, Telegraphic transfers.
• 4nward and outward funds transfer and recei!ing.
&ome unique ser!ices are also pro!ided to customers using (&B% accounts.
These ser!ices are >hone Ban*ing, &elf &er!ice Ban*ing ; >ower !antage
&cheme.
%!"9!$ 6ersonal Ban<in 6roducts:
The personal "an*ing di!ision of (&B% has designed !arious assets products to
meet the needs of indi!idual customers. These are !arious loans and consumer
credit schemes that satisfy and fulfill some "asic purchase purpose of the
indi!idual customers. These products are descri"ed in the following sections.
66
%!"9!$!" 6ersonal &nstallment Boan 86&B;:
• This loan is *nown as the any5purpose consumer loan of (&B%. This loan
is currently the "est product of (&B% Bangladesh and is gi!en to (&B%
customers. The customers can a!ail this loan for any of his personal needs
such as, tra!eling, purchase of household goods, computer purchase, etc.
4n!oices or quotations are not required for these loans, as the "an* will
dis"urse the credit amount directly to customers account.
• o >ersonal guarantee or cash security is required to support the loan.
-!en no down payment is required to dis"urse this loan.
• The main feature of the >4= is simplicity. This means "y completing !ery
simple and easy documents the customers can apply for the loan.
• =ow and !ery competiti!e interest rates are offered for this loan with !ery
low processing fee and stamp charges. The interest rate is 23B on
reducing "alance and 21B for salary account customers.
• Anyone who is at least 2< years old, employed in a well5esta"lished
company for 2 years with a minimum monthly income of T. 2<,000 can
apply for the loan. &elf5employed indi!iduals can also apply "ut !alid
income proof must "e presented to the "an*.
• The loan amount ranges from T*<0,000 to T*0<0,000 or ma8imum four
times of the applicants monthly income, whiche!er is lower.
67
• =oan repayments are made in form of equal monthly installments $-M4+.
The customers ha!e the fle8i"ility of choosing the repayment period $22,
2E or 3C months+. The monthly installment is automatically de"ited from
the customers personal account held with (&B%.
• >ro!isions for partial repayments and early settlement of the loan are also
present "ut the customer has to pay the respecti!e fees of settlement.
• =oans are appro!ed at the sole discretion of (&B% credit authority and
re7ections are unquestiona"le.
%!"9!$!$ C-0 BO-4
• %ar loan is pro!ided to (&B% customers to purchase personal cars. This
loan is the second "est product of (&B% that finances the cost of the car
for its customers.
• The scheme co!ers loans ranging from T.200,000 to T*<,000,000. The
loan amount is up to a ma8imum of 00B of car !alue for a reconditioned
car and C0B for a new car. The loan does not co!er registration, insurance
and other costs.
• The customers need to su"mit quotations from at least 3 !endors
mentioning the price of the car to "e purchased.
• The loan !alue is paid to the car !endor in the form of pay order.
68
• The interest rate on the loan is 2<.<B $special offer+ with low processing
fee and no hidden cost.
• (&B% ma*es arrangements with selected insurance companies for special
discounts on their insurance policies.
• Anyone who is at least 2< years old, employed in a well5esta"lished
company for 2 years with a minimum monthly income of T. 20,000 can
apply for the loan. &elf5employed indi!iduals can also apply "ut !alid
income proof must "e presented to the "an*.
• =oan repayments are made in form of equal monthly installments $-M4+.
The customers ha!e the fle8i"ility of choosing the repayment period $22,
2E, 3C ; E1 months+. The monthly installment is automatically de"ited
from the customers personal account held with (&B%.
%!"9!$!% 6ersonal Secured Boan F Credit
• >ersonal secured =oanMcredit is a credit facility against time deposits or
go!ernment sa!ings certificates and "onds.
• A customer can get a loan amount up to 30B of the security !alue.
• A customer can re5in!est his money while hisMher main in!estment
$certificate or Bonds+ remain intact and this ena"le the customer to ha!e
the fle8i"ility to meet short5term commitments as well as long term
purchases without unloc*ing their long term in!estments.
69
• Aor >ersonal secured credit $short term+ the interest is calculated on the
daily outstanding loan amount and for personal secured loan $long term+
the rate is calculates annually.
• Aacilities are repaid when either time deposits are withdrawn or go!t.
"onds mature.
70
3.25 HSBC G.o2p , HSBC B0/710;e$#
The parent company of (&B% Bangladesh is The (&B% 6roup represented "y
(&B% Asia >acific, headquartered at (ong .ong. They are the ma7or
shareholders of (&B% Bangladesh. The operations in Bangladesh are under the
super!ision of (&B% Asia >acific 9egion and are managed, regulated, monitored
and controlled "y them.
The management of (&B% Bangladesh is trained "y (&B% 6roup. All the fi!e top5
le!el managers of (&B% Bangladesh are international managers and ha!e the
corporate sense of Management. These top5le!el managers are appointed "y the
(&B% group "oth glo"ally and locally. 4n case of unusual circumstances, the
(&B% 6roup recruits or appoints managers from around the world to manage
specific tas*s or acti!ities.
A group of -8ternal Auditors appointed "y (&B% Asia >acific annually !isits the
(&B% Bangladesh offices in order to assess their effecti!eness, management,
operational efficiency, discipline, rules and regulation. The audit group then
prepares an e8tensi!e report on (&B% Bangladesh and as well as a performance
report of The %-'. This report is then presented to the (&B% Asia >acific
(eadquarters for e!aluation and decision ma*ing purposes
As (&B% Bangladesh is a su"sidiary of (&B% Asia >acific 6roup any new proposal
or target generated from Business Annual Target is passed to the 6roup. The top
management of Bangladesh supplies all the information regarding the new pro7ect
and product. Then the financial analysts at (ong .ong office analyzes the
71
profita"ility and consequences of the pro7ect and after all the assessments, the
decision is underta*en. The strategies and results are then forwarded to (&B%
Bangladesh for e8ecution and implementation.
The Aoreign %orrespondence $A%+ di!ision at the Ainancial %ontrol )epartment of
(&B% Bangladesh solely deals with and is responsi"le for su"mitting regular
reports of operation to The (&B% Asia pacific group. These department also
prepares financial statements on all the financial acti!ities of (&B% Bangladesh
and presents them to the %-' for appro!al. After The %-'/s appro!al, the report
is sent to the corporate headquarter $(.+ for further e!aluation and consolidation
of the reports into the group annual report.
&o, the parent company and the local company follow a two5way communication
channel. (&B% Bangladesh or any other su"sidiaries are not allowed to ta*e any
ma7or decisions without prior consent of the region headquarters.

72
3.21 M0/07e@e/" 0" HSBC B0/710;e$#
(&B%, Bangladesh is one such company that had to o!er come a lot of hurdles to
reach the position it now holds. At present, Mr. )a!id F 6riffiths is the %-'J Mr.
?. Adnan ?ahed is the %hief 'perating 'fficer, Mr. Mamoon M &hah is the %hief
of >ersonal Ban*ing, Mr. &yed A ( ,ddin is the (uman 9esource Manager and Mr.
Munir (ussain is the Manager, Mar*eting at (&B% Bangladesh.
These fi!e men at the top carried out their management roles e8hausti!ely. They
equally contri"uted to (&B%/s superior leadership, "y carrying out their unique
roles. They wor*ed well together, respecting each other/s a"ilities, ; arguing
openly ; without any rancor when they disagreed.
To maintain a close touch with the organization each man wor*s in separate area
of (&B%/s comple8. Their offices are indistinguisha"le from all other cu"icles
where (&B%/s 7unior e8ecuti!es ; secretaries wor* in. There are no office walls in
(&B% and all the staff starting from the %-' to the lower operating le!el
employee share the same premises under one roof. There are no &pecialized
ca"ins for top management and e8ecuti!es and also no e8ecuti!e dining rooms.
This has created a management team that is unified, cohesi!e ; energetic.
-ach and e!ery employee of (&B% ta*es pride of "eing an employee at (&B% and
his or her pride comes from the freedom of direct communication with the top
management. The management of (&B% is supporti!e in the sense that the top
management deli"erately supports the suggestions, !alues, ideas, inno!ation and
hard wor* of the employees and officer. Again high amount of employee
participation is encountered in the management process. There are also systems
73
for awards, incenti!es, and status for inno!ati!e ideas and hard wor*s. Again the
management style can also "e termed as %ollegial as high amounts of team wor*
and participation e8ists "etween the top and "ottom parts of (&B%. Thus
according to my perspecti!e of management style at (&B% Bangladesh falls
somewhere "etween supporti!e and collegial. A graphical presentation is shown
"elow:
74
A#TOCRAT$C
%ower
Authorit&
O'edience
Dependence on
Boss
Su'sistence
(inimum
C#STOD$A)
*conomic Resources
(one&
Securit& and 'enefits
Dependence on
organi+ation
Securit&
%assi,e cooperation
S#%%ORT$-*
)eadership
Support
.o' performance
%articipation
Status and
recognition
Awa/ened dri,es
CO))*0$A)
%articipation
Teamwor/
Responsi'le
Beha,ior
Self 1discipline
Self actuali+ation
(oderate
enthusiasm
HSBC
3.22 HSBC C21"2.e
An organization needs to grow itself em"racing some distinct customs ; the more
it grows these norms "ecome a part of their e8istence, which is e!entually
referred as its culture. This culture can "e well defined "y the people of the
organization rather than the people outside the organization. @et in the case of
(&B% "ecause of its strong presence, e!en o"ser!ers feel the uniqueness of
O(&B% culture/, which can also "e referred as its philosophy. To authenticate this
culture "eing the nurturer of the organization su"sequent characteristics will "e
discussed.
T(- (&B% Aeeling: T(- (&B% Aeeling:
All the employees of (&B% ha!e a strong sense of "elongingness towards (&B%.
The (&B% he8agon "rand is also the logo of the (&B% dress code $Tie+. ?ith the
"rand stic* to them, employees feel the (&B% feeling within them, which nurtures
growth and hardwor*ing tendency within their minds.
9e!olutionary culture 9e!olutionary culture
(&B% *nows that the organization needs to adapt to a culture consistent with
their operation. The top management of (&B% puts a lot of emphasis on this.
Along with the operation of the organization they also concentrate on the
practiced ; shared norms, !alues ; customs of (&B%, which e!entually has gi!en
"irth to P(&B% cultureQ, a culture incorporated with the re!olutionary operation of
the organization.
75
%ompetiti!e culture %ompetiti!e culture
The culture of (&B% is considered so important for the organization that it is
"elie!ed throughout the company as well as "y the people out side (&B%, to "e
an implement, which pro!ide them with competiti!e edge o!er its other
competitors.
)isciplined culture )isciplined culture
Time, the *eynote for discipline is largely emphasized at (&B% ; also "ecause a
culture that is so well coordinated ; has "een portrayed as the canon can not "e
referred as nothing "ut a sense of discipline.
Aware culture Aware culture
4n today/s e!er5changing en!ironment any organization needs to "e "alanced
rather than e8tremist in their practiced norms. 4n case of (&B%, the culture of the
organization has succeeded to find the "alance with the odd mi8ture of discipline
; fle8i"ility in their culture, which only disposition them to "e aware of their
surroundings.
.indred culture .indred culture
4n the natural course of professional action, employees are only interested in
what "enefits them. @et in the case of (&B% employees agree to wor* e8tra
hours a day G without e8tra pay G to pro!ide "etter customer ser!ice ; to "rea*
production "ottlenec*s as necessary.
76
>roud culture >roud culture
-mployees of (&B% feel proud to "e a part of the (&B% %orporation. Because of
the way things are carried out through out the organization only the "est will
sustain in (&B%. That is why an employee admitted:
P4t/s great to say you wor* at (&B%. @ou *now you/re the "estR @ou *now
you/re really a part of something e8traordinary ; !ery important.Q
Appellati!e culture Appellati!e culture
The culture of (&B% is such that it has gotten the e8clusi!e identification of (&B%
culture. Fust "ecause of its strong "elief ; !ast practice (&B% culture has "ecome
deep rooted ; to a great e8tent the synonymous for its e8istence. Arom the
strategic decisions of the top management to the defined process of carrying out
the operation of the operati!e employees resem"les this culture.
%harismatic culture %harismatic culture
(&B% culture is such, which will attract any"ody to "e a part of the culture. ?ith
its strong presence in the corporation this culture charms the outsiders. As the
culture of the organization is primarily defined "y the top management of (&B% ;
later supported "y the entire organization, the charisma of top people is what
ma*es (&B% a winning team.
Taught culture Taught culture
The nature of (&B% culture is such that a course is ta*en on it right after the
employees ha!e arri!ed in the organization. The emphasis put on this is to
profuse that one of the mem"ers of (&B%/s top management group ta*es this
course.
77
Admissi"le ; enthusiastic culture Admissi"le ; enthusiastic culture
6roup of employee says, Pit/s e8citing to *now you may see ; tal* to the !ery top
guy at any time. @ou feel a part of thingsQ.
)irecti!e culture )irecti!e culture
The atmosphere in (&B%, "ecause of the e8treme commitment of the top
management has always "een guided properly. -!entually which created a
culture where the direction of achie!ing their goals is clear ; unde!iating. Aor
instance, T(- %-'/s ad!ice to the employees cannot "e more directi!e than this:
P@ou ha!e to mo!e fast, to "e first. But you/re in a realm where no one
has done "efore what you/re trying to do. @ou ha!e to measure a"solutely
e!erything, so when something goes wrong, you ha!e some idea of what
went wrong.Q
>roducti!e culture >roducti!e culture
As the culture of any organization usually flow from the top management of the
organization, (&B% definitely is not an e8ception of the fact. &ince the top team
of (&B% consists of hard wor*ing, producti!e e8ecuti!es, the same is e8pected
from the organization.
78
3.23 To"01 A201%"! M0/07e@e/"
AT HSBC
TLM is the tas* and responsi"ility of e!ery single employee of (&B%. TLM at
(&B% means:
• TLM is first of all a system of !alues of thin*ing and acting in quality, in which
e!ery employee has to "e integrated and which has to "e li!ed "y e!ery"ody
in daily "usiness.
• OTotalE means to align all structure and processes with the customers and
their needs.
• 2uality stands as synonym for competiti!eness, it is well the yardstic* for all
quality standards set.
• J 7anaementE means a target oriented deployment and implementation of
these requirements through leaders who act and ser!e as role model to their
employees and moti!ate the people.
79
The ine criteria that form the "asis for TLM and direct deployment ;
implementation of policies ; strategies At (&B% are as shown in the following
diagram:
9egular Assessment of Luality is conducted at e!ery stages at (&B%:
80
%!$%!" &nstructions F Strateies /or T27:
81
3.24 Se.6%ce M0.Be"%/7 S".0"e7! o<
HSBC B0/710;e$#
(&B% made its de"ut in Bangladesh in the year 233C. &ince then it has "een
continuously de!eloping itself to "e the num"er one financial institution of
Bangladesh. ?ith its huge and enormous glo"al image it has "een a"le to attract
a huge client "ase within a !ery short span of time. 4t has "een continuously
launching new products and ser!ices to meet customer demean head to head
with its competition. To pro!ide "etter quality ser!ice it opened three new
"ranches 7ust after two years of its entrance in Bangladesh. Another "ranch was
added !ery recently to ma*e "an*ing con!enient for people of a "usy area li*e
)hanmondi. ?ith world5class management styles and personnel, it has
consistently attracted the "an*ing mar*et and as well as the "an*ing community.
A close analysis of (&B%/s mar*eting acti!ities re!eals that it has "een following
the Offensive strateies of Service 7ar<etin. &ome *ey aspects of this
strategy are presented "elow:
82
• Reputation
• %rice %remium
• High
(ar/et Share
Sales
&-9K4%-
2#A)$T3
%ROF$TS
3.2 E/6%.o/@e/" , HSBC-
(&B% "elie!es that sound "usiness management should ta*e account of the
effects that "usiness has on the en!ironment, with a !iew to minimizing
detrimental impact. The pursuit of economic growth and a healthy en!ironment
are lin*edJ go!ernment, "usinesses and indi!iduals all ha!e a role in achie!ing
sustaina"le de!elopments.
(&B% Bangladesh has "een regularly in!ol!ed with !arious *inds of
en!ironmental acti!ities. &ome recent acti!ities were as follows:
%!$'!" 1nvironmental wee<:
To commemorate the I?orld -n!ironment )ayI, (&B% in Bangladesh o"ser!ed
I(&B% -n!ironment ?ee*I at all its "ranches in )ha*a and %hittagong recently.
&apling of different *inds of trees were distri"uted free to customers and staff
throughout the wee* as part of the program, says a press release.
(&B%/s e85manager >ersonal Ban*ing, Foe Bar*er5Bennett said: I-n!ironment
and education are priority areas for (&B% and we "elie!e it is important to help
play our part in protecting and impro!ing the en!ironment. ?e want to share this
sense of responsi"ility with our staff and !alued customersI.
83
3.2& HSBC %/ "#e co@@2/%"!-
(&B% is in!ol!ed in well "eing of the communities where it operates through
philanthropy and sponsorship. (&B% Bangladesh has regularly "een attached with
the educational, social and political welfare of the community and has organized
!arious programs for the well5"eing of the society as a whole. &ome such
programs wereJ
%!$#!" )onation to &nstitution of Business -dministration 8&B-;:
As part of its donations and community sponsorship program for 2002, The (ong
.ong and &hanghai Ban*ing %orporation =imited $(&B%+ in Bangladesh
presented a cheques to the 4nstitute of Business Administration $4BA+, ,ni!ersity
of )ha*a.
%!$#!$ )onation for Blind Students:
(&B% in Bangladesh donated T* 30,000 to Assistance for Blind %hildren $AB%+ as
part of its donations and community sponsorship program. The cheque was
handed o!er to %hairman of Ainance %ommittee of AB%, Munira .han "y (&B%Hs
%hief -8ecuti!e officer Bangladesh, )a!id F 6riffiths, at the latterHs office. The
sponsorship will co!er educational costs of all students of AB% for one year.
%!$#!% Blood )onation 6roram:
(&B% Bangladesh recently organized a "lood donation program for the !ictims in
the terror attac* of ,&A. This program was organized at (&B%, )ha*a office.
84
3.2( INDUSTRY ANA'YSIS
4ndustry analysis "uilds on customer ; competitor analyses to ma*e more
strategic 7udgment a"out a mar*et ; its dynamics. 'ne primary o"7ecti!e of
industry analysis is to determine the attracti!eness of a mar*et to current ;
potential participants. A second o"7ecti!e of a mar*et analysis is to understand
the dynamics of the mar*et.
The need is to identify the *ey emerging factors, trends ; threats, opportunities ;
strategic uncertainties that can guide information gathering ; analysis.
>orter/s approach can "e applied to an industry, "ut it can also "e applied to a
mar*et or su"5mar*et within the industry. The "asic idea is that the
attracti!eness of an industry or mar*et as measured "y the long5term return
in!estment of the a!erage firm depends largely on fi!e factors.
A complete understanding of the competiti!e area helps to guide strategy design
; implementation.
85
7icro 1nvironment of HSBC
86
Dri,ing
Forces from
the
*4ternal
*n,ironment
HSBc
C
&ndustry
-ttractiven
essess
ess
HSBC5s
Competitors5
(o,es
Anticipated
(o,es from
6e&
Competitors
3.23 Po."e.C$ F%6e Fo.ce$ 0" HSBC
3.23.1 R%601.! 0@o/7 eD%$"%/7
co@pe"%"o.$
The ri!alry among the competitors and the growth in the industry depends upon
the intensity of competition. A high amount of competition is o"ser!ed in the
"an*ing sector of Bangladesh. There are more than <0 commercial "an*s in
Bangladesh that fight for there own share of the mar*et. The national "an*s ha!e
the highest "an*ing networ* in Bangladesh. They compete against the "an*s with
their low cost of operation and go!ernment support. Again, &tandard %hartered
"an* is the largest multinational "an*ing networ* in Bangladesh that has its
networ* in many metropolitans of Bangladesh. There are other international
"an*s who also ta*e part in the competition and are aggressi!e in nature. This
high intensity of competition ma*es companies difficult to sustain in the long run.
3.23.2 T#.e0" o< /eE e/".0/"$
The ne8t force highlights the possi"ility of new competitors entering the mar*et.
-8isting firms may try to discourage new competition "y aggressi!e e8pansion ;
other types of entry "arriers. The "an*ing sector of Bangladesh seriously faces
the threat of new entrants. (owe!er the threat comes from two direction. The
first threat comes with the arri!al of the multinational "an*s and her "ranch
e8pansion particularly due to the "ooming energy sector. &econdly, the
87
continuous entry of local "an*s with lower cost structure also pose a se!ere
threat to this industry.
4n the conte8t of (&B% the !arious new ; upcoming Ban*s pose a significant
threat, "eing new entrants in the "an*ing sector of Bangladesh. But (&B% is
aware of these potential competitors and is trying to e8pand countrywide to ma*e
the sector unattracti!e ; to create entry "arrier.
3.23.3 T#.e0" o< $28$"%"2"e
p.o;2c"$-
This force considers the potential impact of su"stitutes. ew products that satisfy
the same customer needs are important sources of competition including
alternati!e products in the definition of product mar*et structure identifies
su"stitute forms of competition.
(&B% continuously faces the threat of !arious su"stitute products launched "y its
strong competitors in the mar*et place. Aor e8ample, the launch of premiere
"an*ing "y &%B poses a strong threat on (&B%/s premium customer group and
(&B% is at a condition where it should launch an e!en "etter product. More o!er
the !arious consumer credit schemes offered "y !arious local "an*s with lower
interest rates and cost also pose a strong threat on the (&B% personal "an*ing
products. Again the lower ser!ice charges at national "an*s also discourages a
wide group of customers to hold account in (&B%. These are some of the threats
posed "y su"stitute products in the mar*et place.
88
3.23.4 B0.70%/%/7 poEe. o<
$2pp1%e.$
The fourth force is the power of suppliers that may ha!e impact on the producers
in an industry. %ompanies may pursue !ertical integration strategies to reduce
the "argaining power of suppliers.
4n the conte8t of (&B%, suppliers are those customers and organizations that
pro!ide financing to the firm !ia depository schemes. 4f the cost of financing
rises, then (&B% will ha!e to increase the interest rate that it charges to its
customer in order to remain in the "usiness. This may result in se!ere customer
dissatisfaction ; as a result poor profita"ility. (&B% is aware of this de!astating
situation.
3.23. B0.70%/%/7 poEe. o< 82!e.$
Ainally, "uyers may use their purchasing power to influence the producers or
ser!ice pro!iders. ,nderstanding which organizations ha!e power ; influence in
the distri"ution channel pro!ides important insight into the structure of
competition.
4n the "an*ing sector of Bangladesh, customers ha!e a strong "argaining power
since there a large num"er of commercial "an*s pro!iding similar ser!ices.
%ustomers ha!e a wide range of options in deciding where to "an*. They can
either go for the Multinationals or turn to new local "an*s for getting quality
ser!ice. 'thers may also consider the national "an*s for large credit facilities.
Therefore "an*s ha!e to pursue the customers with attracti!e interest rates and
89
pro!ide them with tailor made customized ser!ices in order to attract the
customer or hunt depositors.
4n the conte8t of (&B%, the firm is more or less free from the cope of the
"argaining power of the "uyers. (&B% has its own policies to carry out its
operations ; employees follow those rules to deal with the customers. But too
much rigidity of the pre!ailing policies when to deal with the clients may under
cut its client "ase as well as profita"ility. To o!ercome this worst scenario G a
positi!e ; personalized approach to the needs of customer 5 has "ecome (&B%/&
motto.
90
3.24 SWOT ANA'YSIS-
ST014GHTS
Stron corporate
&dentity
(&B% is the leading pro!ider of financial ser!ices
worldwide. ?ith its strong corporate image and identity
it can "etter position in the minds of customers. This
image has helped (&B% gra" the personal "an*ing
sector of Bangladesh !ery rapidly.
)istinct operatin
procedures
(&B% in *nown worldwide for its distinct operating
procedure. The company/s Managing for Kalue strategy
"etter satisfy customers needs and also *eeps the firm
profita"le.
)istinct schedule -!eryone in (&B% from the appraiser to the top
management has to wor* to the same schedule toward
a different aspect of the same goal, interfacing
simultaneously at all le!el o!er quite a long period of
time.
Stron employee
bondin and
beloninness
(&B% employees are one of the ma7or assets of the
company. The employees of (&B% ha!e a strong sense
of commitment towards organization and also feel proud
and a sense of "elonging towards (&B%. the strong
culture of (&B% is the main reason "ehind this strength.
1fficient 6erformance (&B% pro!ides hassle free customer ser!ice to its client
"ase comparing to the other financial institutions of
Bangladesh. >ersonalized approach to the needs of
customers is its motto.
5oun 1nthusiastic
wor<force
The selection ; recruitment of (&B% emphasizes on
ha!ing the s*illed graduates ; postgraduates who ha!e
little or no pre!ious wor* e8perience. The logic "ehind is
91
that (&B% wants to a!oid the pro"lem of Ogar"age in ;
gar"age out/. ; This type young ; fresh wor*force
stimulates the whole wor*ing en!ironment of (&B%.
1mpowered Aor<
force
The human resource of (&B% is e8tremely well thought
; perfectly managed. As from the !ery first, the top
management "elie!ed in empowered employees, where
they refused to put their finger in e!ery part of the pie.
This empowered en!ironment ma*es (&B% a "etter
place for the employees. The employees are not
suffocated with authority "ut are a"le to grow as the
organization matures.
Companionable
1nvironment
All office walls in (&B% are only shoulder high partitions
; there is no e8ecuti!e dining room. Any of the
e8ecuti!es is li*ely to plop down at a ta"le in its
cafeteria ; 7oin in a lunch chat with whoe!er is there.
'ne of the employees has said, P4ts e8citing to *now
you may see ; tal* to the top management at any time.
@ou feel a part of thingsQ.
4o communication
barriers
)B) has tried hard to a!oid communication "arriers ;
structural "ureaucracies. The little e8istence of
authoritati!e "arriers among the different le!el of
management stimulates a feeling of importance as their
wor* get priority o!er the position.
1.uali+ation At (&B% wor*shops are conducted periodically. 'n the
wor*shops, all people participate as equals, with new
mem"ers free to openly challenge top managers.
/ree e=chane of
communication
At (&B% the main o"7ecti!e is to setting up wor*shops
are to remo!e authority from an artificial spot at the
top, ; place it where the most *nowledgea"le people
92
are, the people closest to the operations. The free
e8change of ideas is reinforced "y a policy of
Pconstructi!e confrontationQ. -ach employee is e8pected
to challenge ideas openly ; aggressi!ely, "ut ne!er
attac* an indi!idual/s moti!es for presenting an idea.
7BO (&B% also has Management "y '"7ecti!es $MB'+
e!erywhere. -ach person has multiple o"7ecti!es. All the
employees must ha!e to get the appro!al of their
"osses on what they are going to do. =ater they re!iew
as how well they ha!e performed their 7o" with their
management as well as the peer group.
KOne:to:oneL meetin The MB' ma*es the re!iew a communication de!ice
among !arious groups. The *ey to the system is a Pone5
to5oneQ meeting "etween a super!isor ; a su"ordinate.
4n the meeting, the pro"lems in dealing with customers
are put forward first ; e!ery one dug it to sol!e them.
7odern 1.uipment F
technoloy
(&B% owns the "est "an*ing and information
technology equipments in Bangladesh. 4t ultra modern
"an*ing systems starting from terminal pc/s to (,B/s
are "ased on the international (&B% group standards
and are the latest. The (e8agon product is one of the
"est e8amples in this conte8t.
Disually -ppealin
/acilities
(&B% has some of the "est !isually appealing "ranches
and office premises in )ha*a ; %hittagong that highly
attracts customers attentions and customers also feel
the international en!ironment while "an*ing with (&B%.
93
A1->41SS1S
4arrow operatin
span
(&B% has a !ery narrow operating span in Bangladesh. 4t
has only 2 full ser!ice "ranches in Bangladesh situated
only at )ha*a and %hittagong. Karious geographic
segments are currently not a!ailing the ser!ices of (&B%
due to incon!enient "ranch location or a"sence of
neigh"orhood "ranches.
-bsence of stron
7ar<etin -ctivities
(&B% currently don/t ha!e any strong mar*eting
acti!ities through mass media e.g. Tele!ision. TK ads
play a !ital role in awareness "uilding. (&B% has no such
TK ad campaign.
4o investment
products
%urrently the personal "an*ing di!isions of (&B% do not
ha!e in!estment products for its customers. The "anning
of in!estment loan "y central "an* posses a strong
pressure to design new products.
Bac< of customer
confidence
A& (&B% is fairly new to the "an*ing industry of
Bangladesh a!erage customers lac* the confidence in
(&B% and 7udge the "an* as an a!erage new "an*.
Too many contract
wor<ers
(&B% has contract wor*ers who lac* the commitment
with superior quality ser!ice and also are pretty
dissatisfied as "eing a contract wor*er. This hampers the
"an*/s ser!ice quality as a whole.
94
Bow remuneration
6ac<ae
The remuneration pac*age for the entry le!el officers are
considera"le low. &ince other foreign and local "an*s
offer a more lucrati!e salary pac*age, it will "e difficult
for (&B% to attract MBA/s in future with its current salary
pac*age.
)iversification (&B% can peruse a di!ersification strategy in e8panding
its current line of "usiness. The management can
consider options of starting merchant "an*ing or
di!ersify in to leasing and insurance. As (&B% is one of
the leading pro!ider of all financial ser!ices, in
Bangladesh it can also offer these ser!ices.
Credit Cards This is one of the most popular and emerging product in
Bangladesh which offers customers total financial
mo"ility. Karious other "an*s and institutions are
currently offering this product. (&B% can also ta*e
ad!antage of this product and gra" the mar*et share.
-c.uisition (&B% is one of the e8perts in acquiring !arious firms and
organizations. 4n Bangladesh it can also di!ersify quic*ly
"y acquiring !arious local esta"lished "an*s and increase
it/s total operation within Bangladesh rapidly.
95
O66O0T34&T&1S
Hih demand of
Housin loans
&ince housing is one of the "asic needs of people, there
is a high demand of housing loans. (&B% personal
"an*ing di!ision can focus on this category of products
and gra" this segments of customers.
)istinct operatin
procedures
(&B% is noted for its distinct operating procedures.
9epayment capacity as assessed "y (&B% of indi!idual
client helps to decide how much one can "orrow. As the
whole lending process is "ased on a client/s repayment
capacity, the reco!ery rate of (&B% is close to 200B.
This pro!ides (&B% financial sta"ility ; gears up (&B% to
"e remain in the "usiness for the long run.
Countrywide networ< The ultimate goal of (&B% is to e8pand its operations to
whole Bangladesh. urturing this type of !ision ; mission
; to act as required, will not only increase (&B%/s
profita"ility "ut also will secure its e8istence in the log
run.
7ore e=perienced F
manaerial <now:
how
The top management team of (&B% is e8pert in "an*ing
acti!ities. The operating policies esta"lished "y them are
unique ; unified. All the mem"ers of the team carry out
their management roles e8hausti!ely. They equally
contri"uted to (&B%/s superior leadership, "y carrying
out their unique roles. They wor*ed well together,
respecting each other/s a"ilities, ; arguing openly ;
without any rancor when they disagree.
96
TH01-TS
3pcomin Ban<s The upcoming pri!ate local ; multinational "an*s
posses a serious threat to the e8isting "an*ing networ*
of (&B%. it is e8pected that in the ne8t few years more
commercial "an*s will emerge. 4f that happens the
intensity of competition will rise further and "an*s will
ha!e to de!elop strategies to compete against and win
the "attle of "an*s.
Bose of Customers A"sence of !arious products such as credit card,
housing loans are causing !arious customers to detract
from (&B%. This is a serious threat for (&B%
Bangladesh.
7oderate levels of
Customer Satisfaction
(&B% should continuously impro!e its customer ser!ice
strategies and the o!erall ser!ice quality needs to win
the customer satisfaction undou"tedly.
)efault Culture This a ma7or pro"lem in Bangladesh. As (&B% is a !ery
new organizations the pro"lem of non5performing loans
or default loans is !ery minimum or insignificant.
(owe!er, as the "an* "ecomes older this pro"lem will
arise enormously and the "an* may find itself in a
more threatening en!ironment. Thus (&B% has to
remain !igilant a"out this pro"lem so that proacti!e
strategies are ta*en to minimize this pro"lem.
97
4.Wo.B EDpe.%e/ce 0" HSBC
(eadquartered in =ondon, (&B% is considered as one of the largest "an*ing and
financial ser!ices organization in the world. 4n Bangladesh it has made its place
as the fastest growing "an*. Being a"le to wor* in this world renowned
organization 4 find myself luc*y. 4 got the opportunity to wor* in one of the most
!ital department of (&B%5 The %ustomer &er!ice )epartment $%&)+.

4 was offered an internship for three months time in the customer ser!ice
department and when my internship tenure was a"out to finish, 4 was offered an
e8tension for another three months and am still wor*ing on the e8tension period.
4 am thoroughly en7oying the wor* at the customer ser!ice department. The wor*
e8perience has gi!en me a good idea of the o!erall "an*ing system of Bangladesh
and has taught me the professionalism at wor* place.
98
. THE PROJECT
.1 I/".o;2c"%o/
Ban*ing is one the most competiti!e industries of Bangladesh that has seen a
huge amount of growth during the last decade. A large num"er of new "an*s
ha!e made their places in the industry and yet there are more to register in the
list. 4n such a highly competiti!e ser!ice industry, the importance of customer
satisfaction cannot "e de5emphasized. 4mpro!ed customer satisfaction and loyalty
gi!es a firm "etter "ase than its ri!als and allows it flourish in the industry.
This pro7ect deals with the ser!ice quality and customer satisfaction of (&B%
Bangladesh. A sur!ey was conducted on the customers of (&B%, )ha*a. The
o"7ecti!e was to assess the le!el of importance the customers of (&B% put across
!arious ser!ice le!el attri"utes and also to determine how well (&B% was
satisfying the customers on those ser!ice grounds. The results of this sur!ey are
then analyzed to determine the most important aspects of the ser!ice and
disco!er !arious dri!ers of o!erall satisfaction. Karious important issues of
customer satisfaction are also presented in light of the findings of the sur!ey.
=astly, the findings are e8amined to prescri"e a set of specific recommendations
to impro!e the o!erall ser!ice quality according to customers e8pectations and
also to sol!e the e8isting pro"lems in the whole organizational le!el.
99
.2 O89ec"%6e o< "#e p.o9ec"
General Objective
6eneral o"7ecti!e is to assess the le!el of importance the customers of (&B% put
across !arious ser!ice le!el attri"utes and also to determine how well (&B% was
satisfying the customers on those ser!ice grounds.
Specific Objectives:
• >resentation of an introduction to the (&B% 6roup
• >ro!ide information on (&B% Bangladesh
• To determine !arious attri"utes of ser!ice quality in %ommercial "an*s.
• To assess the e8pectation ; satisfaction le!els of (&B% customers
• To determine the most important attri"utes of ser!ice quality
• To determine the most satisfied and dissatisfied aspects of the "an*
• To identify the most satisfied demographic segments.
• To determine the relation "etween satisfaction ; recommendation of the
"an*.
• To determine the relation "etween complaint resolution ; satisfaction.
• To identify the ma7or competitors of the "an* in the customers minds.
To recommend strategies to impro!e the o!erall ser!ice quality and customer
satisfaction of (&B% Bangladesh.
100
.3 S%7/%<%c0/ce O< T#e S"2;!
%ustomer satisfaction related to e8pectation fulfillment is an e8tremely important
and critical issue facing organizations in the comple8 "usiness en!ironment of
today. The "an*ing industry is certainly not an e8ception to this premise. 4n fact,
it has "een widely held in financial institutions that customer satisfaction may "e
the most influential factor in the selection of a "an*ing institution. =i*ewise, with
all of the changes ta*ing place in the financial mar*etplace and the increase in
competition, it "ecomes apparent that more attention must "e gi!en to customer
ser!ice and satisfaction. Based on what customers ha!e indicated in !arious
"an*ing situations, personalized and quality customer ser!ice will pro!ide "an*s
with the a"ility to "e more competiti!e than their counterparts. Therefore, it is
important to o"tain customer input as to the ser!ices and products they desire to
a!oid situations where the institution fails to li!e up to customer e8pectations due
to failed communications.
This report e8plored the importance customer place on !arious aspects of the
ser!ice pro!ided "y (&B% and at the same time assessed the current satisfaction
le!els of the customers. &uch finding will "e "eneficial for the management in
attempting to impro!e the o!erall ser!ice quality and also to promote the
company/s ser!ices to customers. Ainally, the current le!el of satisfaction will gi!e
an indication a"out the o!erall quality of the ser!ice pro!ided currently from
customers/ point of !iew and thus gi!ing an opportunity to "uild on strengths and
correcting wea*nesses and dar* sides of the ser!ice. &o the study will "e !ery
useful for the top management in impro!ing the o!erall ser!ice quality and
customer satisfaction.
101
.4 H!po"#e$%$-
The service that customers place most importance in are well satisfied by
HSBC, Banladesh!
. METHODO'OGY
'!'!" Type of research:
4n this study, e8ploratory research was underta*en to gain insights and
understanding of the o!erall "an*ing industry and also to determine some of the
attri"utes of ser!ice quality in Ban*s. After, that a more comprehensi!e
conclusi!e research was underta*en to fulfill the main purpose of the study.
102
.& S2.6e! F%/;%/7$-
'!#!" 1=ploratory 0esearch
An e8ploratory research was conducted to e8plore through the !arious aspects of
customer satisfaction and to pro!ide insights and understandings of the o!erall
ser!ice en!ironment of "an*ing. 4n this phase of research, managers and
customers were inter!iewed to determine the ser!ice attri"utes that were most
important in the selection of "an*s and also were responsi"le for the o!erall
customer satisfaction.
The inter!iewees pointed out !arious important attri"utes that they thought were
important to customers in assessing ser!ice quality and satisfaction. 4n this part
of the pro7ect, my organization super!isor Ms. #inia Amreen helped me out the
most. The most common and rele!ant responses were then selected from the
pool of attri"utes and were categorized according to fi!e dimensions of ser!ice
quality. &ome such attri"utes are presented "elow along with the associated
ser!ice quality dimension:
0eliability:
Attri"utes such as *eeping ser!ice promises, gi!ing appropriate solution, error
resolution were categorized in this dimension of ser!ice quality. This dimension
was the most uniform among the respondents.
103
0esponsiveness:
&peed of ser!ice, willingness to help, willingness to search for solutions, etc. were
the attri"utes that related to the responsi!eness dimension of ser!ice quality.
-ssurance:
The respondents also mentioned friendliness ; professionalism of the employees
and feeling of safety with them while descri"ing the ser!ice attri"utes. These
aspects were close to the assurance dimension and thus were categorized in this
section.
Care and 1mpathy:
Aspects li*e 4ndi!idual attention, understanding customers needs and interests
were categorized in this section.
Tanibles:
9espondents also mentioned !arious attri"utes of ser!ices pro!ided "y "an*s that
relate to physical e!idences, facilities, technologies, neatness of the premises,
etc. All these information was grouped in the tangi"les dimension of ser!ice
quality.
Apart from these general attri"utes discussed a"o!e, respondents also mentioned
the !ital role of location ad!antages and the features of products ; ser!ices in
forming o!erall customer satisfaction. )ue to such emphasis on these aspects,
they were also included in the list of attri"utes that affected ser!ice quality.
104
The !arious product ; ser!ice features that were mentioned in the discussions
were fees ; charges, !arious product schemes, rates of credit or sa!ings
schemes, etc.
These !arious aspects that were found in this phase of research were used to
construct a complete questionnaire for use in the ne8t phase of the sur!ey. -ach
attri"ute were then transformed into a questionnaire to find out the importance
placed "y customers and satisfaction towards that specific questionnaire. The
questionnaire was di!ided into !arious parts that included the ser!ice dimension
and other important aspect of the ser!ice.
Thus the e8ploratory research disco!ered ideas, pro!ided insights to the main
sur!ey and the findings in this phase formed the "asis of the questionnaire used
in ne8t main sur!ey.
105
'!#!$ &mportance to Customer and Satisfaction at HSBC:
4n this section the findings of the (&B% customers/ importance put to !arious
ser!ice attri"utes and satisfaction at (&B% are shown "riefly. The results are
presented according to the !arious ser!ice quality dimensions. -ach dimension
consists of its own specific questions. The results of the sur!ey are presented
according to these questions that were as*ed to the respondents with the help of
a structured questionnaire. The results of this study are as follows:
0eliability:
Aspects relating to relia"ility dimension of ser!ice quality were as*ed in 3
different questions. The results are as follows:
Q1: Provides services within the time promised.
The respondents placed a high importance in this characteristic of the ser!ice.
The mean importance score was E.E0 $0n a < point scale 5 where < is the highest
score+. Again, ECB respondents score <, which depicted that customer/s
e8pectations were high in this characteristic. The mean satisfaction score in this
attri"ute was 3.<C, which is not !ery satisfactory. 'nly CB respondents were
highly satisfied $scored <+ with this aspect and <2B were somewhat satisfied
$scored E+. The results are presented "elow:
Q1
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 12 0 2 2
1 13 1 04 03
5 2 5 51 64
4 4 3 788
7 7
106
Q2: Employees ive appropriate solution to pro!lems.
The mean importance score for this attri"ute was E.00, which ma*es this
attri"ute important. Moreo!er, around 01B of the respondents scored E or a"o!e.
The a!erage satisfaction score was 3.3E. 9esults show that only 3CB
respondents were satisfied in this attri"ute and most of the others were on the
neutral side.
94
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 41 0 1 1
1 01 1 54 52
5 48 5 03 61
4 4 4 2 788
7 7
Q": Errors and mista#es corrected promptly:
This attri"ute was found to "e the most important attri"ute within relia"ility
dimension ha!ing a mean importance score of E.EE. All the respondents placed an
importance score of E or a"o!e with EEB respondents scoring <. %onsequently,
most of the customers were also satisfied with this attri"ute and the mean
satisfaction score was 3.30 where 00B of the respondents placed a satisfaction
score of E or a"o!e.
95
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 02 0 44 44
1 11 1 13 :8
5 5 43 63
4 4 4 788
7 7
107
Summary Statistics: 0eliability
&ummary of all the relia"ility attri"utes re!eals that customers placed a mean
importance score of E.21 and mean satisfaction score of 3.C0 on the relia"ility
dimension of the ser!ice quality. The results are shown "elow:
Reliability Dimension
Mean Score
Importance Satisfaction
97 1.18 5.02
94 1.8 5.51
95 1.11 5.6
&ean 1.43 5.28
108
0esponsiveness:
3 attri"utes were grouped in this dimension and the respondents were as*ed to
e8press their opinions. 9esults of the !arious aspects are shown "elow:
Q$: Employees ive you prompt service
An e8tremely high importance was gi!en in this attri"ute of ser!ice where the
mean importance score was E.<1. 3EB of the respondents placed an importance
score of E or a"o!e. The a!erage satisfaction score of this attri"ute was 3.C0.
'nly 1B of all respondents were highly satisfied with the ser!ice where E1B
were somewhat satisfied. The rest of the respondents were indifferent in their
responses. The results are as follows:
91
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 21 0 3 3
1 58 1 13 02
5 2 5 18 62
4 4 1 788
7 7
Q% - Employees are always willin to help:
A moderate importance was placed on this attri"ute of responsi!eness dimension
where the mean importance score was 3.1C. 1EB of the respondents scored E or
a"o!e in their importance opinions. The a!erage satisfaction score across this
attri"ute was significantly low and was 2.30 only. 9espondents showed se!ere
dissatisfaction with this attri"ute. 'nly 2EB respondents scored E or a"o!e in
their satisfaction ratings. The results are as follows:
109
L<
4mportance
&core
>ercentage
$B+
&atisfaction
&core
>ercentage
$B+
%umulati!e
B
< 22 < C C
E C2 E 1 2E
3 2C 3 CE 01
2 2 2E 32
2 2 1 200
Q& ' Employees always search (or solutions:
Moderate importance was o"ser!ed across this attri"ute where the mean
importance score was 3.EC. Most of the respondents were indifferent while
e8pressing their importance towards this aspect. But the satisfaction scores of
this attri"ute were dissatisfactory and the mean was 2.01. 30B respondents
scored 2 or less than 2 and only 2CB respondents scored E or a"o!e. The results
are as follows:
92
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 2 0 1 1
1 51 1 3 74
5 28 5 03 :8
4 4 44 64
7 7 3 788
110
Summary Statistics: 0esponsiveness
The responsi!eness attri"utes re!eal that customers placed a mean importance
score of 3.30, which was slightly lower than the relia"ility dimension. The mean
satisfaction score was 3.03 on the responsi!eness dimension, which is
significantly lower than relia"ility scores. The results are shown "elow:
Responsiveness
Mean
Importance Satisfaction
91 1.03 5.2
90 5.32 4.6
92 5.12 4.:3
&ean 5.6: 5.86
111
-ssurance:
Aspects relating to assurance dimension of ser!ice quality were as*ed in 3
different questions. The results are as follows:
2*: /riendliness F Courtesy of the 1mployees:
This attri"ute was also found to "e another of the most important ones ha!ing a
mean importance score of E.<2. All the respondents placed an importance score
of E or a"o!e with <2B respondents scoring <. %onsequently, the customers were
also highly satisfied with this attri"ute and the mean satisfaction score was E.E1
where all the respondents placed a satisfaction score of E or a"o!e.
9:
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 04 0 13 13
1 13 1 04 788
5 5 788
4 4 788
7 7 788
112
2, M 6rofessionalism of the 1mployees:
Mean importance score of this attri"ute was 3.3C where 0CB respondents scored
E or a"o!e. The mean satisfaction score for this attri"ute was 2.3C and were
somewhat dissatisfactory. 10B of the respondents scored 3 or less than that. The
results are as follows:
93
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 48 0
1 02 1 48 48
5 41 5 28 38
4 4 72 62
7 7 1 788
29: 5ou feel safe in your transactions with HSBC:
This attri"ute was found to "e important and the mean importance score was
E.0E. 00B respondents scored E or a"o!e in the importance ratings. The
respondents also ga!e high satisfaction scores with mean of E.E2. <0B of the
respondents were highly satisfied with this aspect of assurance. The results are
shown "elow:
96
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 51 0 08 08
1 52 1 14 64
5 58 5 3 788
4 4 788
7 7 788
113
Summary Statistics: -ssurance
&ummary of all the assurance attri"utes re!eals that customers placed a mean
importance score of E.20 and mean satisfaction score of 3.3< on the assurance
dimension of the ser!ice quality. The results are shown "elow:
$ssurance
&ean
Importance Satisfaction
9: 1.04 1.13
93 5.62 4.62
96 1.81 1.14
&ean 1.7: 5.60
114
Care F 1mpathy:
3 attri"utes were grouped in this dimension and the respondents were as*ed to
e8press their opinions. 9esults of the !arious aspects are shown "elow:
Q1) ' *+,C ives you individual attention
Mean importance score of this attri"ute was E.01 where 10B respondents scored
E or a"o!e. The mean satisfaction score for this attri"ute was 3.32 and where
respondents were moderately satisfied. <1B of the respondents scored 3 or less
than that. The results are as follows:
978
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 43 0 74 74
1 04 1 58 14
5 48 5 14 31
4 4 78 61
7 7 2 788
Q11 ' Employees o( *+,C understands your speci(ic needs:
(igh importance was placed on this attri"ute of care ; empathy dimension where
the mean importance score was E.21. 30B of the respondents scored E or a"o!e
in their importance opinions. The a!erage satisfaction score across this attri"ute
was significantly low and was 2.30 only. 9espondents showed se!ere
dissatisfaction with this attri"ute. 'nly 2EB respondents scored E in their
satisfaction ratings. The results are as follows:
977
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 53 0 8 8
1 04 1 71 71
5 78 5 21 :3
4 4 48 63
Q12 - *+,C has your !est interest at *earts:
115
Moderate importance was gi!en to this aspect and the mean importance score
was 3.C2. But the mean satisfaction were for this attri"ute was the lowest of all
the attri"utes and was 2.1E. 11B respondents scored 3 or less than that and only
22B respondents scored E on this aspect of care and empathy.
974
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 74 0 8 8
1 18 1 74 74
5 12 5 21 :2
4 4 4 48 62
7 7 1 788
+ummary +tatistics: Care - Empathy
The statistics re!ealed that customers placed a mean importance score of 3.33 on
the care and empathy dimension. The mean satisfaction score was 3.02 on this
dimension, which is significantly lower than the other dimensions. The results are
shown "elow:
Care ! ;mpathy
&ean
Importance Satisfaction
978 1.83 5.54
977 1.43 4.6
974 5.24 4.31
&ean 5.66 5.84
116
.ani!les:
C questions relating to the tangi"le dimension were as*ed to the respondents.
These questions co!ered !arious tangi"le aspects of the ser!ices pro!ided "y
(&B%. The results are shown "elow:
2"%: HSBC has visually appealin facilities
Moderate importance was gi!en to this attri"ute and the mean !alue was 3.<0.
9espondents !ery satisfied with this aspect and the mean satisfaction score was
E.3E where 31B respondents were found to satisfied. The results are as follows:
975
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 72 0 52 52
1 42 1 24 63
5 08 5 4 788
4 3 4 788
7 7 788
2"( M HSBC employees appear neat:
The mean importance score of this attri"ute was 3.E1. The mean satisfaction
score was E.<C where all the respondents were found to "e satisfied and score E
or a"o!e. The results are as follows:
971
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 74 0 02 02
1 14 1 11 788
5 43 5 788
4 73 4 788
7 7 788
Q1% ' *+,C has convenient hours o( operation:
Moderate importance and satisfaction was o"ser!ed in this aspect where the
mean importance and satisfaction scores were 3.C2 ; 3.E0 respecti!ely.
117
970
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 71 0 1 1
1 51 1 52 18
5 04 5 02 62
4 4 1 788
7 7 788
Q1& ' +tatements are easily understood:
A high importance was gi!en on this attri"ute where the mean score was E.02.
But the respondents was found to e8tremely dissatisfied with this attri"ute and
the mean was 2.<C where 3CB respondents scored 3 or less than that.
972
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 42 0 8 8
1 08 1 1 1
5 41 5 08 01
4 4 11 63
7 7 4 788
Q1/ ' +tatements are relia!le and accurate:
A mean importance score of E.0E depicted that respondents placed high
importance to this attri"ute. The respondents were also !ery satisfied with this
aspect and mean satisfaction was E.21 where 3EB respondents scored E or
higher. The results are as follows:
97:
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 41 0 51 51
1 02 1 28 61
5 48 5 2 788
4 4 788
7 7 788
Q10 ' *+,C has modern e1uipments and technoloies that !etter satis(y
your needs:
118
9espondents were indifferent while e8pressing the importance of this attri"ute
and the mean was 3.E0. But the satisfaction scores across this attri"ute were
highest with a mean of E.<0 where all the respondents scored E or higher.
973
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 3 0 08 08
1 51 1 08 788
5 13 5 788
4 78 4 788
7 8 7 788
119
+ummary +tatistics: .ani!les
The moderate importance was gi!en to this dimension of ser!ice quality. The
mean importance score across this dimension was 3.C1. This dimension was
found to "e the most satisfied one with mean score of 3.3E
<angibles
&ean
Importance Satisfaction
975 5.0 1.51
971 5.13 1.02
970 5.24 5.1
972 1.84 4.02
97: 1.81 1.43
973 5.18 1.08
&ean 5.23 5.61
4n addition to these fi!e dimensions of ser!ice quality, two additional
dimensions were also considered and analyzed in the sur!ey. These were
O=ocations/ and O>roducts ; ser!ices/. &ur!ey results across these dimensions are
also presented to pro!ide a "etter picture of the ser!ices.
2ocations:
E questions were as*ed in this category and the results are presented "elow:
Q13 ' ,ranch locations are convenient:
(igh importance were gi!en to this attri"ute with a mean score of E.<E. But the
satisfaction scores were !ery low with a mean of 2.0C where 3EB respondents
were dissatisfied with the locations.
976
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 02 0 4 4
1 14 1 74 71
5 4 5 04 22
4 4 43 61
7 7 2 788
120
Q2) ' 4.5 locations are convenient
A high importance was also gi!en to this attri"ute and the mean was E.<E. Again
the respondents were moderately satisfied with the location of ATM/s and the
mean score was 3.<C with <1B respondents "eing satisfied with the locations.
948
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 01 0 1 1
1 12 1 08 01
5 5 11 63
4 4 4 788
7 7 788
Q21 ' Premises are neat and clean
Moderate importance was gi!en to this attri"ute with a mean of 3.C1. The
respondents were highly satisfied among this attri"ute and the mean satisfaction
score was E.31 with 31B respondents scoring E or a"o!e.
947
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 72 0 18 18
1 11 1 03 63
5 54 5 4 788
4 3 4 788
Q22 ' Par#in spaces are su((icient:
A!erage importance was o"ser!ed in this attri"ute with a mean score of 3.C0.
Again the respondents were also highly satisfied with this attri"ute scoring a
mean of E.20 where 1CB respondents were satisfied with the facilities.
944
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 44 0 51 51
1 58 1 04 32
5 51 5 71 788
4 71 4 788
121
+ummary +tatistics: 2ocations
The results indicated a high importance towards this dimension and the mean
score was E.03. ?hile on the other hand, the mean satisfaction score across this
dimension was found to "e 3.03. The results are presented "elow:
=ocations
&ean
Importance Satisfaction
976 1.01 4.:2
948 1.01 5.02
947 5.23 1.53
944 5.2 1.4
&ean 1.86 5.:5
Products - +ervices:
4n this category !arious other attri"utes of (&B% products ; ser!ices were
considered and the customer e8pectations and satisfaction towards these
attri"utes were 7udged. 1 different aspects were analyzed and the results are
shown "elow:
Q2" ' 6ees and +ervice chares:
%ustomer e8pectation towards this attri"ute was !ery high and mean score was
E.20. 'n the other hand, satisfaction scores on this aspect was also !ery high and
the mean was E.2E where 12B respondents were satisfied with this aspect.
945
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 11 0 14 14
1 51 1 18 34
5 48 5 73 788
4 4 4 31
7 7 31
122
Q2$ ' +avins or 7eposit services:
Mean importance of this aspect was E.32 and mean satisfaction scores were E.2C.
This entails that this category resem"led high importance and high satisfaction of
the respondents.
941
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 52 0 58 58
1 28 1 02 32
5 2 5 71 788
4 4 788
Q2% ' Investment services:
A!erage importance was gi!en to this attri"ute and the mean was 3.E3.
&atisfaction in this category was poor and the mean !alue was 2.31 where C0B
respondents were dissatisfied with the in!estment ser!ices of the "an*.
940
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 78 0 4 4
1 18 1 4 1
5 52 5 54 52
4 78 4 28 62
7 1 7 1 788
Q2& ' 2oan or credit services:
(igh importance was gi!en to this attri"ute and the mean was E.0C. Moderate
satisfaction scores were o"tained with a mean of 3.11 where 0EB customers
placed a !alue of E or higher.
942
Importance ercentage Satisfaction ercentage Cumulative
0 04 0 41 41
1 43 1 08 :1
5 73 5 48 61
4 4 4 4 62
7 7 1 788
123
Q2/ ' Cash - remittance services:
A mean importance of 3.3E was o"ser!ed in this aspect of products and ser!ices.
The satisfaction scores of this category was satisfactory with a mean of E.22
where 12B customer were satisfied with the cash and remittance ser!ices.
94:
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 48 0 11 11
1 01 1 53 34
5 42 5 71 62
4 4 1 788
7 7 788
Q20 ' .elephone !an#in services:
9espondents were somewhat indifferent in e8pressing their importance towards
this aspect and a mean of 3.EE was found. 'n the other hand, customer were
highly pleased with this ser!ice of (&B% and the mean satisfaction score was E.EC
where 3CB customers were satisfied with this ser!ice.
943
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 74 0 08 08
1 54 1 12 62
5 11 5 1 788
4 74 4 788
Q23 ' Rates on 2oans:
(igh importance was placed on this feature and the mean score was E.3E. But
a!erage satisfaction scores were found on this category with a mean of 3.2E.
'nly 2B customers were satisfied with the rates of loans whereas C0B were
indifferent. The results are shown "elow:
124
946
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 52 0 4 4
1 24 1 42 43
5 4 5 28 33
4 4 3 62
7 7 1 788
Q") ' Rates on +avins:
Moderately high importance scores were o"tained in this category and the mean
was 3.32. But the satisfaction scores in this category were poor and the mean
was 2.E0. 'nly CB customers scored E or higher and the rest scored negati!ely.
958
Importance
Score
ercentage
-./
Satisfaction
Score
ercentage
-./
Cumulative
.
0 48 0 8
1 04 1 2 2
5 43 5 53 11
4 4 12 68
7 7 78 788
Summary statistics: 6roducts F services
The means importance score of this dimension was 3.3< and the mean
satisfaction score was 3.2E. The results are shown "elow.
&ean
Importance Satisfaction
945 1.4 1.41
941 1.54 1.72
940 5.14 4.53
942 1.82 5.33
94: 5.65 1.44
943 5.11 1.12
946 1.51 5.71
958 5.64 4.1
&ean 5.60 5.27
125
'!#!$!" G-6 SCO01 -4-B5S&S O4 TH1 )&714S&O4S:
6ap scores gi!e a meaningful indication as to where customers are mostly
dissatisfied. 6ap scores are e8pressed as the difference "etween mean
importance and satisfactions $& 5 4+ and are most often negati!e num"ers
"ecause customer perceptions or satisfaction of the ser!ice typically fall short of
customer e8pectations. The result of the sur!ey conducted on the customers of
(&B% show that the only dimension where customer perception e8ceeded
e8pectation is tangi"les $A>>-)4S+, which had a positi!e gap score of 0.2C. The
dimension that had highest gap was the empathy dimension with a negati!e gap
score of G0.30. The gap scores of assurance was G0.22, which depicted the
perceptions fall slightly short of e8pectations. Again relia"ility, responsi!eness
were other dissatisfied dimension with negati!e gap scores of G0.C1 ; 50.10
respecti!ely. The location and products dimensions showed slight moderate gaps
and the scores were G0.30 ; 50.32 respecti!ely. The gap scores of the !arious
dimensions are shown graphically "elow:
126
>7.88
>8.38
>8.28
>8.18
>8.48
8.88
8.48
8.18
G
a
p

S
c
o
r
e
s
Reliabilit y Responsivenes Assurance Empat hy Tangibles Locat ions Product s
Dimensions
Gap Analysis
'!#!$!$ Service compared to Other ban<s:
The respondents were as*ed to rate the (&B% in comparison with the ser!ices of
other "an*s $L32+. The results showed that only CB of the customer thought
that the ser!ices are much "etter compared to other "an*s whereas 30B of the
respondents "elie!ed that the ser!ices are worse compared to competitors. The
results are shown "elow:
Service comparison
2
44
14
58
8 78 48 58 18 08
&uch Better
Better
Same
?orse

o
m
p
a
r
i
s
o
n
!
ercentage -./ 2 44 14 58
&uch Better Same ?orse
127
'!#!$!% Complaint 0esolution:
The respondents were as*ed to state that weather they had placed any
complaints to (&B% during their ser!ice life cycle $L32+. Around ECB
respondents stated that they had pro"lems with (&B% and had complained where
as <EB did not ha!e pro"lems. The ne8t phase of this question as*ed the
pro"lem faced customers/ weather that complaint was resol!ed. 4n this part, C2B
of the pro"lem complainants stated that the pro"lem was still there. The results
of this sur!ey are presented "elow:
954a laced Complaints 954b Complaint )esolved
#requency . #requency .
@es 12 @es 53
,o 04 ,o 24
128
'!#!$!( Overall Satisfaction Aith HSBC:
Apart from all the indi!idual ratings of !arious attri"utes, features and aspects
the respondents were as*ed to rate their o!erall satisfaction with (&B% $L32+ on
a <5point scale. The results of this question ga!e an idea of the o!erall
satisfaction with (&B%. The findings were used for determining correlations with
!arious other attri"utes of the ser!ices. The results of this question showed that
only 1B customers were highly satisfied with the "an* and score < on this
questions. This segment represented the most loyal group of customers. 'n the
other hand 2CB of the respondents were found to "e dissatisfied with the
ser!ices of the "an*, which is higher than the satisfied group. The findings of this
questions are presented graphically "elow:
"verall Satisfaction
3
58
12
72
8 78 48 58 18 08
0
1
5
4
7
S
c
o
r
e
#re$uency %!&
Satisfaction Score 3 58 12 72
0 1 5 4 7
129
.( IMP'ICATION OF RESU'TS
'!*!" )rivers of Satisfaction:
4f "an*s are to impro!e their satisfaction and loyalty ratings and differentiate
themsel!es from the competition, they need to understand what really dri!es
satisfaction and loyalty. They also need to *now which areas ha!e the greatest
room for impro!ements. There is little point in inter!ening resources in areas that
are important "ut are performing well, or in areas which there is much room for
impro!ement "ut they are not important in dri!ing satisfaction and loyalty. Thus
(&B% managers need to *now what le!ers to push to increase these measures of
success.
'ne useful tool is to search for the most important attri"utes which allows to
analyze those areas that are important and ha!e much room for impro!ements.
4n the following section the most important attri"utes will "e discussed.
'!*!$ 7ost important attributes of the Service:
The analysis of the importance scores across !arious attri"utes of ser!ice quality
dimension pointed out some attri"utes that were highly important to
customers$A>>-)4S+. These attri"utes are listed "elow according to importance:
• &peed of ser!ice $LE+
• =ocation of the "ranches $L23+
• =ocation of the ATM/s $L20+
• Ariendliness ; courtesy of the employees $L0+
• >romptness of error correction $L3+
130
• .eeping >romises $L2+
• 9ates on =oans $L23+
• &a!ings ser!ices $L2E+
• 9ecognition of needs $L22+
• Aees ; ser!ice charges $L23+
These attri"utes were considered as the dri!ers of satisfaction for the customers.
&atisfaction across these attri"utes influenced the o!erall satisfaction towards the
"an*s ser!ices. &ome other attri"utes, which were important to customers "ut
not considered as dri!ers of satisfaction are listed "elow:
• 4ndi!idual attention $L20+
• =oan or credit ser!ices $L2C+
• &afety of transactions with (&B% $L3+
• 9elia"ility and accuracy of the statements $L20+
• %larity of the statements $L2C+
• >ro"lem sol!ing interest within employees $L2+
• >rofessionalism of the employees $L1+
The rest of the attri"utes administered during the sur!ey were found to
moderately important or less important for the customers and were not
considered "y them while deciding on satisfaction scores.
131
'!*!% Satisfaction towards the most important attributes:
As mentioned earlier, the ma7or concern of managers is to find out satisfaction of
the customers across the !arious dri!ers of satisfaction $A>>-)4S+. The results
of the sur!ey showed that customers were satisfied only across the following
dri!ers of satisfaction:
• Ariendliness ; courtesy of the employees $L0+
• Aees and ser!ice charges $L23+
• &a!ing and deposit ser!ices $L2E+
• >romptness error correction $L3+
Thus the a"o!e attri"utes were only !ery few compared to the list of highly
important attri"utes. Again the customers also ran*ed some of the highly
important factors as highly dissatisfactory. These attri"utes thus damaged the
o!erall satisfaction scores drastically. &ome such attri"utes are as follows:
• 9ecognition of needs "y (&B% $L22+
• =ocation of Branches $L23+
Most of the other dri!ers of satisfaction that were !ery important to customers
showed a!erage satisfaction scores. This depicts that most of the customers are
not !ery satisfied with the attri"utes and are somewhat indifferent with the
attri"utes. This "rought down the o!erall satisfaction scores to the neutral or
a!erage points.
132
'!*!( 7ost satisfied aspects of HSBC services:
The respondents showed high satisfaction scores towards some of the attri"utes
of the ser!ice dimensions. Though most of these were not !ery important to
customers they do represent the good side of the ser!ices pro!ided "y (&B%.
&ome such satisfied attri"utes are listed "elow starting from the most satisfied
ones:
• eatness of -mployees $L2E+
• -quipments ; Technology $L21+
• Ariendliness and courtesy of employees $L0+
• Tele Ban*ing ser!ices $L21+
• &afety with (&B% $L3+
• %leanliness of the premises $L22+
• Kisually appealing facilities $L23+
• 9elia"ility and accuracy of statements $L20+
• Aees and ser!ice charges $L23+
• %ash and remittance ser!ices $L20+
• &ufficiency of par*ing spaces $L22+
• &a!ings ser!ices $L2E+
• >romptness of error correction $L3+
&o these were the attri"utes that resem"le strengths of ser!ices pro!ided "y
(&B% ser!ices which were ran*ed as satisfactory "y the respondents.
133
'!*!' 7ost dissatisfied aspects of HSBC services:
The respondent while e8pressing their satisfaction !iews toward !arious attri"utes
ran*ed some of the aspects of the ser!ice quality poorly $A>>-)4S+. The poor
scores depict that customer were dissatisfied with these attri"utes of ser!ice.
These dissatisfactory features are the starting points of the attempts for
impro!ing the o!erall customer satisfaction. &uch dissatisfied must "e ta*en care
as early as possi"le. &ome such poorly ran*ed dissatisfied attri"utes are as
follows:
• >rofessionalism of the employees $L1+
• ?illingness to help $L<+
• 9ecognition of needs $L22+
• (&B% has "est interest of the customer $L22+
• &earching for solutions $LC+
• =ocation of the "ranches $L23+
• %larity of the statements $L2C+
• 9ates on sa!ings $L30+
• 4n!estment ser!ices $L2<+
'f the a"o!e list need recognition location of "ranches and clarity of statements
were !ery important to customers. 4mportance of the rest of the dissatisfied
features were somewhat moderate.
134
'!*!# -SS1SS714T O/ TH1 S10D&C1 23-B&T5 )&714S&O4
This research on customer satisfaction of (&B% was designed across the some
dimensions of ser!ice quality. &uch dimensions were responsi"le for influencing
the o!erall ser!ice quality and customer satisfaction of (&B%. 9elia"ility,
9esponsi!eness, Assurance, %are ; empathy, Tangi"les, =ocation ; Aeatures of
>roducts ; ser!ices were the se!en dimensions used in this sur!ey to assess the
o!erall customer satisfaction. Karious attri"utes of (&B% ser!ices were grouped
within these se!en category and the respondents were as*ed to e8press their
!iews.
The results showed that the most important dimension of ser!ice quality was
relia"ility of the ser!iceG which is a"ility to perform the promised ser!ice
dependa"ly and accurately $A>>-)4S+. (&B% customers e8pressed a!erage
satisfaction along this dimension of ser!ice quality, which implies that (&B%
needs to impro!e more along this direction of ser!ices.
The second most important dimension pointed out was the Assurance dimension
of ser!ice quality G which consists employees *nowledge, courtesy and a"ility to
inspire trust and confidence. The results showed that customers were satisfied
with this dimension of (&B% ser!ices. Ariendliness of employees and safety with
(&B% are some of the most satisfied attri"utes of this dimension. This indicates
that (&B% should "uild on this dimension of ser!ice quality.
The con!eniency of the =ocations were another of the important dimension
mentioned "y the customers. But the satisfaction with this dimension falls short
of e8pectation and most of the customers are on the a"o!e a!erage side. Thus to
135
impro!e customer satisfaction (&B% should impro!e it/s location facilities
according to customer needs and wants. Most of the dissatisfaction came due to
the incon!eniency of the "ranches.
The most satisfied dimension of (&B% came out to "e the tangi"les G which
includes appearance of facilities, equipment, personnel, etc. The importance gi!en
to this attri"ute was a!erage. This implies that (&B% has the "est premises,
equipment and facilities that should "e promoted more aptly to customers.
The most dissatisfied dimension found out in the sur!ey was %are ; -mpathy G
which is %aring ; gi!ing indi!idual attention to customers. This dimension was
moderately important to customers "ut the significance of dissatisfaction along
this attri"ute was se!ere. To impro!e the o!erall satisfaction (&B% should
impro!e its ser!ice concepts and en!isage care ; empathy into the o!erall
customer ser!ices.
=astly, the products ; ser!ices dimension, which included features of the
products, was somewhat important to customers in deciding ser!ice
effecti!eness. A!erage satisfaction was o"ser!ed in this category. 4n!estment
ser!ices ; rates on &a!ings were the two most dissatisfied aspects of this
dimension. To score high on satisfaction, (&B% should consider these two
features and redesign them according to customer needs. Aees and ser!ice
charges, sa!ings ser!ices, cash ; remittance ; >hone"an*ing were some of the
most satisfied aspects of this dimension and represent the strengths of (&B%.
136
'!*!* Complaint 0esolution F Satisfaction:
The sur!ey found that an important reason of dissatisfaction was dissatisfaction
with the way a customer complaint had "een handled. 'nly 22B respondents
were satisfied with the outcome of a complaint they made. This lac* of
satisfaction influenced 01B of those who had made complaints to hold negati!e
remar*s a"out the o!erall satisfaction of the "an*. The num"er and sort of
complaints were not recorded. %learly, (&B% needs to do "etter in this area.
'!*!, 7ajor Competitors of HSBC:
The sur!ey pointed out some of the ma7or competitors of (&B% according to the
customer perceptions $A>>-)4S+. This aspect is !ery important to (&B%
management, as customers are the ultimate person who decided among "an*s.
The offerings and ser!ices of the ma7or competitors can "e analyzed to "etter
understand the customer needs and wants. The sur!ey uniformly e8plored that
&tandard %hartered was the closest competitor of (&B% and also pointed out that
it had a "etter place or ran* in the minds of customers. This is an o"!ious fact
gi!en the size and !olume of &%B/s "usinesses. There are many names that
compete for the second "est competitor of (&B%. But among those >rime Ban*
was found to "e the ne8t "est competitor of (&B% in the minds of customers.
&ome other names were &outh-ast Ban* =imited, ational Ban* =imited,
American -8press Ban* =td, etc.
The reason "ehind this findings is that (&B% can impro!e the o!erall ser!ice
offerings "y closely analyzing the offerings of it/s closest competitors. ?ith such
an attempt customer satisfaction would "e an o"!ious outcome.
137
'!*!9 SAOT -nalysis
Opportunities:
'pportunities are the ones that holds "right prospects for (&B% identifies that
where it should "uild it/s strength. Ariendliness of employees $L0+, relia"ility of
statements $L20+, &afety with the Ban*$L3+, fees and ser!ice charges $L23+,
sa!ings ser!ices$q2E+ ; cash ; remittance ser!ices$L20+ are some of the
opportunity areas of (&B% that were disco!ered during the sur!ey.
Threats:
Threats are the ones that represent danger for the "an* in its future growth and
are responsi"le for the downgrading of customer satisfaction. &ome of the threats
that were identified in sur!ey were professionalism of the employees $L1+, clarity
of the statements $L2C+, location of the "ranches $L23+, rates on sa!ings $L30+.
These were the attri"utes that represented se!ere threat for the "an*.
Strenths:
The attri"utes with which customers were highly satisfied "ut ga!e less
importance was tagged as the strengths areas of the "an*. &ome such aspects
were appealing facilities $L23+ neatness of employees $L2E+, Technology of "an*
$L21+ and phone "an*ing ser!ices $L21+. These were the attri"utes that gi!e
(&B% a "etter standing in the competition.
Aea<nesses:
&ome wea*nesses of the "an* were pointed out in the sur!ey which had low
satisfaction scores and were somewhat less important to customers . But in order
138
to impro!e o!erall satisfaction these attri"utes should "e considered. Two wea*
areas were in!estment ser!ices of the "an* $L2<+ and &olution searching
tendency of employees $LC+. 0ne more (ea-ness that (as not reflected in the
survey but I have personally felt (hile (or-ing for customer service department
(as the loan or credit services1 .ost of the loan processing too- long time and
many of the applications (ere refused (ithout giving any proper clarification to
the customers1 .any customers seemed dissatisfied (ith this aspect of the
service of S"C and I could not get a chance to fill the survey 2uestionnaire by
those customers3 as most of them (ere really furious about their loan being
re4ected (ithout a proper explanation1
139
.(.15 S2@@0.! o< "#e F%/;%/7$-
The general approach used to design this sur!ey defines satisfaction as the
difference "etween importance customer puts on ser!ice attri"utes and what
heMshe actually recei!es from (&B%. 4n this sur!ey, satisfaction is measured
along thirty different attri"utes of (&B% ser!ices that were grouped into se!en
ma7or dimensions.
The o!erall satisfaction results of the sur!ey were a!erage if the total scenario is
considered for an a!erage "an*. But in terms of (&B%, which is a world5class
ser!ice pro!ider worldwide, the results were highly dissatisfactory. 'nly 1B pf
the respondents were highly satisfied and were loyal to the "an*. 4n total, one
third of the respondents were found to "e satisfied with the ser!ices of the "an*.
The rest of the respondents were found on the neutral and negati!e side of. 2CB
customers were highly dissatisfied with the "an*. This num"er represents the
customers that percei!ed the "an* as inferior. The result showed that a high
degree of correlation e8ists "etween pro"lem resolution and satisfaction. Thus
my hypothesis PThe service that customers place most importance in are
well satisfied by HSBC, BanladeshL is not a valid statement but has been
rejected by the findins of the report!
Based on the a"o!e results, it can "e said that (&B% should reconsider its ser!ice
strategies in Bangladesh and design products and ser!ices that "etter satisfy
customer needs and requirements. Ban* should "e more tactful in dealing with
the customers and launch new products that fully meet customer e8pectations.
Based on the sur!ey a finding a set recommendation is presented in the ne8t
section of the research and a general list of suggestions to the "an* is discussed.
140
.3 RECOMMENDATIONS
<.1.2 9ecommendations "ased on the &ur!ey:
(&B% is one of the most flourishing Ban*s of Bangladesh with wide growth
opportunities in the industry. The sur!ey on the customers of (&B% was
conducted with an aim of impro!ing the o!erall customer satisfaction at (&B%.
The research ga!e !alua"le insights as to where impro!ements were necessary to
impro!e the quality of ser!ice. (&B% with its strong corporate image and
organizational strength can successfully utilize the opportunities and o!ercome its
wea*nesses. 4n this section, a list of recommendation is presented "ased on the
findings of the sur!ey conducted on (&B% customers:
• ,se of Mar*eting 9esearch:
The management of (&B% should regularly administer mar*eting research
acti!ities in order to *eep a regular trac* of satisfaction le!els. 9egular
research should also "e conducted to find out customer e8pectations a"out
!arious ser!ice aspects. As customer e8pectations and satisfaction are not
static figures, regular research at sufficient inter!als should "e conducted.
• %omplaint Management:
(&B% should acti!ely manage the complaints of !arious customers and
encourage customers to gi!e feed"ac* a"out the ser!ices. The management
should collect, document complaints, use that information to identify
dissatisfied customers, correct indi!idual pro"lems where possi"le and identify
141
common ser!ice failure points. 9esearch showed that this strategy will
radically impro!e the o!erall customer satisfaction.
• Aocus on relationship strategies:
The "an* should focus more on e8isting customers in order to "uild strong
and loyal relationship with them as most satisfied customers recommends the
"an* to friends and relati!es. Thus the power of relationship will foster
positi!e ?ord of Mouth %ommunication and will attract new customers at a
lower cost.
• %larity of the statements:
The "an* should redesign the format of its account statement in to a clearer
and easily understanda"le format. The sur!ey showed a huge amount of
dissatisfaction towards the current format of statements. 4t should "e
redesigned with inputs from customers and satisfying their requirements.
• -mployee Trainings:
-mployee trainings and wor*shops should "e administered in order to gi!e
them *nowledge and professionalism in customer interactions. ?ith a more
professional "ase, employees can "etter satisfy the customers. They should
"e taught a"out how to deal with pro"lem customers and pro"lematic
situations. The sur!ey showed significantly low scores for employee/s
willingness to help. Thus this aspect should "e considered.
142
4ndi!idual Attention ; %are:
4ndi!idual attention should "e gi!en to customers in order to "etter
understand their needs and "etter satisfy them.
• ew Branches should "e introduced:
%ustomers showed a huge dissatisfaction with current locations as (&B%
pro!ides ser!ices from only < "ranches throughout Bangladesh. ew "ranches
should "e constructed in )ha*a city satisfying more geographic segments
especially towards ,ttara as quite a considera"le num"er of (&B% customers
li!e in ,ttara. As con!enience of "ranch location was a !ery important factor
for the customers (&B% should consider "uilding new "ranches and ATM/s
within )ha*a city as well as other metropolitan cities of Bangladesh.
• ew 4n!estment products:
ew in!estment schemes should "e introduced to meet customer demands.
&ur!ey results indicated a high amount of dissatisfaction with current
in!estment schemes and ser!ices. ew personal sa!ings, future in!estment
products, &anchay patra schemes should "e launched to stay ahead of
competition and "etter satisfy customer requirements.
• 9econsider interest rates on &a!ings:
Ma7ority of the customers suggested that the sa!ings rates should "e redesign
as most of the customers were currently dissatisfied with the sa!ings rates.
(&B% should restructure the interest schemes of its sa!ings product to attract
more !alua"le customers.
143
<.1.2 6eneral 9ecommendations:
4n this part of recommendations, some !alua"le issues of (&B% are discussed.
These were the aspects that came out while wor*ing as an intern at (&B%. These
were related to !arious parts of (&B% and thus are placed in the list of general
recommendation. Though these issues were not the part of the pro7ect, they also
contri"ute !alua"le information at impro!ing the o!erall customer satisfaction of
(&B%. &uch general recommendation are discussed "elow:
• %ustomer defined &er!ice standards:
A formal ser!ice "lueprint should "e designed with appropriate ser!ice le!el
standards to reduce the !aria"ility of ser!ice. These standards should "e
customer defined and customer e8pectation should "e considered while
deciding on the ser!ice standards.
• )efensi!e &trategy of &er!ice Luality:
(&B% should pursue a defensi!e ser!ice quality strategy that is a go slow
strategy rather than offensi!e ser!ice strategy. That is, it should focus on
costs of operation, increasing !olume of "usinesses with e8isting loyal
customers, segmentation of the premium customers, foster a positi!e word of
mouth communication in its e8isting customers, etc. Though these strategies
will ta*e time to de!elop a huge customer "ase, they will in the long run "ring
more loyal customers to (&B%.
• Aaster )eli!ery of ATM cards:
(&B% should reduce the amount of time required to pro!ide new ATM cards.
%urrently it ta*es 2< days while some competitors can pro!ide the card within
2 wor*ing days. As the (&B% ATM card comes directly from (ong .ong delays
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are o"!ious. (&B% should ma*e necessary arrangements to produce the new
cards locally in order to reduce the customer difficulties faced in the a"sence
of ATM card.
• =aunch of %redit %ards:
%redit card facilities should "e gi!en to customers as early as possi"le.
Though they ha!e "een gi!ing dates after dates of launching still they ha!e
not launched credit cards for customers though the staffs of (&B% are already
using the credit card facility. Many local and foreign "an*s are currently
pro!iding these ser!ices and are satisfying customer needs more widely.
According to my e8perience at (&B%, out of <0 calls recei!ed a day, atleast 0
customers enquire a"out credit card. Thus (&B% should also ta*e ad!antage
of this popular product with no further delay.
• =oc*er &er!ices:
?hile interacting with the customers at customer ser!ice point, a huge
amount of customers demanded loc*er ser!ices. ?ith such demand of this
ser!ice, (&B% should consider of pro!iding loc*er ser!ices to its customers.
This will also attract new customers from other "an*s who are currently
offering these ser!ices.
• %ontrol o!er the mailing networ*:
(&B% should strictly monitor the courier ser!ices that are engaged in
deli!ering mails and documents. (uge amount of deli!ery failures is "eing
piled up at "ranches. Moreo!er there has "een regular customer complaints of
non5receipt of statements though the courier showed proof of deli!ery signed
"y someone who doesn/t e!en li!e at the customers/ address. &o (&B% should
ha!e some control o!er its couriers and ensure proper deli!ery of mails and
documents.
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• >rocess Management:
The actual procedures, mechanisms and flow of acti!ities at customer ser!ice
should "e well managed and structured in order to form a good e8perience of
the ser!ice in the minds of customers. As the ser!ices of the Ban* are
comple8 in nature, the employees should pro!ide adequate guidance to
customers in order to a!oid ser!ice failures. Thus the whole process should
follow a "road ser!ice philosophy, which is tailored to customer needs.
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.4 Co/c12$%o/-
(&B% is a glo"al "an*ing and financial ser!ices organization headquartered in
=ondon. The groups international networ* comprises more than <000 offices in 12
countries and territories, operating the Asia >acific region, -urope, ,&A, Middle
-ast ; Africa. (&B% 6roup is represented in Bangladesh "y its su"sidiary "an*
(&B%, Bangladesh. 4 had the opportunity to wor* for this "an*ing giant during
my internship program. 4 was placed at the customer ser!ice department of (&B%
Main 'ffice, Anchor Tower. )uring this time 4 got an opportunity to o"ser!e the
o!erall ser!ice process of (&B% personal "an*ing di!ision. 4 also got the scope to
interact with customers and re!eal their e8pectations and perceptions a"out the
"an*/s ser!ices. )uring my interaction with customers 4 felt that somewhere
there are gaps "etween customer e8pectations and "an*s ser!ices and since the
%-' of (&B% Bangladesh has gi!en emphasis on "etter customer ser!ice and
more customer satisfaction, thus the %ustomer ser!ice officer as*ed me to wor*
on this topic.
This research has pro!ided some interesting insight into what *ind of ser!ice the
customers gi!e importance to and what quality ser!ice they get from (&B%. 4t is
quite o"!ious from the research that the customer requirement are not fully met
and they are !ery dissatisfied with some of the aspects of the "an* $location,
sa!ing rates, credit ser!ices, in!estment ser!ices, etc.+. Again the research
re!ealed that only one third of customers were more of less satisfied with the
ser!ices of the "an* and more than half of the respondents were on the neutral
side of satisfaction line. (&B% should attract this half and "ring them to the
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positi!e side of the road so that strong relationship with the customers can "e
maintained.
Ainally, 4 would say that this internship at (&B% has increased my practical
*nowledge of Business Administration and made my BBA education more
complete and applied. 4n this report 4 got the opportunity to apply !arious tools
and concepts 4 learned in my BBA courses. &ome such courses were &trategic
Mar*eting, &trategic Management, &er!ices mar*eting, %onsumer "eha!ior, etc. 4
loo* forward to wor* as a permanent employee of this world5class "an*ing giant.
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