Investigating the levels of satisfaction of Local Corporate clients in Standard Chartered Bank regarding the various services offered

by Local Corporate.

Prepared by: Nushat Nowrin Sharna ID: 0920645

An Internship report presented in partial fulfillment of the requirements for the degree Bachelor of Business Administration

Independent University, Bangladesh November 2012

Investigating the levels of satisfaction of Local Corporate clients in Standard Chartered Bank regarding the various services offered by Local Corporate

Prepared by: Nushat Nowrin Sharna ID: 0920645

Has been approved November 2012

Mr.Abul Khair Jyote Lecturer School of Business Independent University, Bangladesh November 2012

Letter of Transmittal
Mr.Abul Khair Jyote Lecturer Independent University, Bangladesh Sub: Submission of the Internship Report Dear Sir, I have the pleasure to submit my Internship report on investigating the levels of satisfaction of Local Corporate clients regarding the various services offered by Local Corporate of Standard Chartered Bank as requirement for my graduation. You are aware that I am doing my internship program in Standard Chartered Bank (SCB) I started my intern 16th September 2012 & It will finish 15th December 2012, in the local corporate banking sector of the head office of SCB, located in Gulshan-1. I feel most privileged to be associated with an experienced, efficient and professional team in one of the most reputed multinational Banks of Bangladesh. I strongly believe that this report will satisfy your requirements and expectations. I have tried my best to make this report as informative, practical, reliable and relevant as possible. In preparation of this report, I have reviewed few books, journals, articles from internet, taking few interviews and on the basis of this available information I drew a set of recommendation which I believe will help the Local Corporate (LC) department to improve their competence. I appreciate your kind advice, cooperation, patience and suggestions regarding this report, which will definitely help me to follow as a guideline in future endeavors. I will be available for any further query and clarification regarding this report whenever necessary. Sincerely, Nushat Nowrin Sharna ID: 0920645 Dept: BBA Independent University, Bangladesh

Acknowledgement
Firstly, I would like to thank my honorable faculty, Mr.Abul Khair Jyote for his kind patience, guidance and support for the preparation of this report. I will always be indebted to him for the valuable suggestion and the time that he had spent for guiding me through the report. I would also like to acknowledge my great appreciation toward Mr. Md. Tabrez Bin Mahbub, Director of Local Corporate, Origination & Client Coverage (OCC), Faysal Islam, Associate of Local Corporate, OCC, for being patient and supporting me throughout my 3-month long internship program. They have provided their time and effort to direct me throughout my time at SCB. My peers and colleagues at the bank had also been very kind and helpful and they made my internship a more comfortable one. I would like to specially thank Mr. Justin Shattajit Corraya, Mr. Maain Uddin & Syed Shahed Imam for being there whenever I needed their support. Last but not the least, I also want to thank all the clients that I have come across over the phone and being patient in taking part in the survey that has been so crucial for my report.

Executive Summary
Involvement of the banking sector in different financial events is increasing day by day. At the same time the banking process is becoming faster, easier and the banking arena is becoming wider. As the demand for better service increases, the banking organizations are coming with innovative ideas. In order to survive in the competitive field of the banking sector, all banking are looking for better service opportunities to provide to their clients. As a result, it has become essential for every person to have some idea on the bank and banking procedure. In the age of modern civilization bank is playing its spending role to keep to the economic development wheel moving. The corporation of the bank is needed in every economic activity. In fact there is hardly any aspect of development activity where state inspired or otherwise where bank do not have role to play. It gives us immense pleasure that i got the opportunity to prepare the report on Investigating the levels of satisfaction of Local Corporate clients in Standard Chartered Bank regarding the various services offered by Local Corporate. Standard Chartered Bank is a multinational bank and has a country wide branch network through which they provide comprehensive banking services to their customers, which includes wealthy individuals, corporate client and financial institutions. Customers satisfaction is the top priority of the bank. Bank in its goal has mentioned that customers expectations will be meeting through innovative financial products and services. Deposit scheme includes current accounts, savings account, and fixed deposit receipt, foreign currency current accounts, security deposit receipt (SDR) and short term deposit accounts (STD). Loans scheme includes consumer credit, education loan, executive loan, corporate loan etc. The activities of customer satisfaction business what I have done is outlined in this report. Various rules and regulations, policies and procedures relating to different banking activities have also been enumerated here.

Table of Contents
Page No.

Part One: Organization Profile & Overview

1.0 1.0.1 1.0.2 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 1.1.7 a. b. c. i. ii. Iii. 2.1 2.2 2.3 2.4 2.5 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Banking Sector in Bangladesh Overview of banking sector Current structure of banking system in Bangladesh Standard Chartered Bank, Bangladesh History Current position Organizational structure and management Business and support activities Client relationship segment: Local Corporate Orientation and Client Coverage (OCC) Overview of Local Corporate (LC) LC client base LC employees LC services and solutions Cash management Trade finance Securities services Creating spread and updating previous spreads Score card Business Credit Application (BCA) Factory visit report Other activities 02 02 03 04 05 06 07 08 08 09 10 10 10 12 12 13 13 15 18 18 21 22 24 24 25 25 26 28 29

Part Two: My Roles & Responsibilities

Part Three: Research

Introduction Statement of the problem Purpose of the study Objective of the study Literature review Conceptual Framework Research Question

3.8 3.9 3.9.1 i. ii. 3.9.2 i. ii. iii. iv. v. 3.9.3 3.9.4 3.10 3.11 3.12 3.13 3.14

Hypothesis Methodology Approach Primary Sources Secondary Sources Sampling Population Sample Units Sampling Frame Sampling Design Sample Size Data collection methods Data analysis Qualitative Analysis Limitations of the study Findings Recommendations Conclusions

Part Four: References

29 29 29 30 30 30 30 31 31 31 31 31 32 34 58 59 61 63 66

Part 1 Organization Profile & Overview

1.0 THE BANKING SECTOR IN BANGLADESH

1.0.1 OVERVIEW OF THE BANKING SECTOR
There is no denying the fact that the financial system plays a significant role in the economic development of a country. The importance of an efficient financial sector lies in the fact that, it ensures domestic resources mobilization, generation of savings, and investments in productive sectors. In fact, it is the system by which a countrys most profitable and efficient projects are systematically and continuously directed to the most productive sources of future growth. Financial sector in Bangladesh, like most in developing countries, is dominated by banking institutions. With recent gains in financial fronts Bangladesh's financial sector is now comparable with most of the countries in South and East Asia in terms of financial deepening. Bangladesh, like other developing countries, still has an underdeveloped financial system and is facing serious problems with the operation of its financial system and poor financial intermediation presents significant disincentives to foster economic growth. Nevertheless, the banking sector occupies an important place in Bangladesh because of its intermediary role; it ensures allocation and relocation of resources and keeps up the momentum of economic activities. It plays a pivotal role in the economic development of the country and forms the core at the money market.

Banks can be defined in various ways. In Bangladesh, any institution which accepts for the purpose of lending or investment, deposits of money from the public, repayable on demand or otherwise, and is transferable by checks, draft order or otherwise, can be termed as a bank. The purpose of banking is thus to ensure transfer of money from surplus unit to deficit units or in other words, to work as the repository of money.

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1.0.2 CURRENT STRUCTURE OF BANKING SYSTEM IN BANGLADESH

At present, the financial system in Bangladesh is mainly composed of two types of institutions banks and non-bank financial institution (NBFIs). The formal financial sector in Bangladesh includes:

(a) Bangladesh Bank as the central bank; (b) 47 commercial banks, including 4 Government owned commercial banks (SOCB), 30 domestic private banks (PCBs) (of which 7 banks are operating under Islamic Shariah), 9 foreign banks (FCBs) (of which 1 bank is operating as Islamic bank); and 4 government-owned specialized banks (DFIs); (c) 31 non-bank financial institutions (NBFIs) licensed by the Bangladesh Bank; (d) 2 large government- owned insurance companies (life and general) and 62 private owned (18 life and 44 general) insurance companies; (e) 2 stock exchanges and; (f) Some co-operative banks (Source: http://www.bangladesh-bank.org/fnansys/bankfi.php) Besides, a good number of semi-formal micro finance institutions (MFIs) also are operating in Bangladesh. Among the nine FCBs, one such well-known multinational bank operating in Bangladesh is Standard Chartered Bank, which will be the next focus of my report.

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1.1 STANDARD CHARTERED BANK: BANGLADESH

Fig 1.1: The SCB operations in different locations of Bangladesh

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1.1.1 HISTORY
The Chartered Bank started operating in Bangladesh in 1948, opening a branch in Chittagong. The branch was opened mainly to facilitate the post-war reestablishment and expansion of South and Southeast Asia. The Chartered Bank opened another branch in Dhaka in 1966, where it is still headquartered. After the merger of the Chartered Bank with the Standard Bank in 1969, the Standard Chartered Bank took up a program of expansion. It increasingly invested in people, technology and premises as its business grew in relation to the country's economy. It is the first international bank to extend credit lines and open the first external letter of credit in Bangladesh in 1972.

In 1993, there was an organizational re-structuring, which led to a substantial expansion of the bank's business. It expanded its operations by opening new branches and widening areas of activity as well as banking facilities. Number of branches of the bank in Bangladesh stood at 6, including its off-shore unit in the Export Processing Zone (EPZ) area at Savar near the Dhaka city. The bank is a pioneer in establishing the ATM network in Bangladesh - to provide 24-hour banking facilities to its customers. The bank also opened non-branch-banking booths at Tejgaon in Dhaka and Nasirabad in Chittagong.

In April 2000, Standard Chartered Bank Plc bought the Local banking business of the ANZ Grindlays Bank Plc from the ANZ Group, following which the branches of ANZ Grindlays Bank Plc in Bangladesh became units of the Standard Chartered Grindlays Bank Limited. Bangladesh operations of Standard Chartered Grindlays Bank merged with Standard Chartered Bank on 1 January 2003, and since then the combined bank has become known as Standard Chartered Bank.

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1.1.2 CURRENT POSITION

Today, Standard Chartered Bank is the largest international bank in Bangladesh with 26 Branches and 57 ATMs; employing over 1,300 people. They are the only foreign bank in the country with presence in 6 cities Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj; including the country's only offshore banking units inside Dhaka Export Processing Zone (DEPZ) at Savar and Chittagong Export Processing Zone (CEPZ).

Currently, the bank provides both Consumer Banking and Wholesale Banking Services, ranging from Personal and Corporate Banking to Institutional Banking, Treasury and Custodial services. Extensive knowledge of the market and essential expertise in a wide range of financial services underline the banks strength to build business opportunities for corporate and institutional clients in Bangladesh. Continuous upgrading of technology and control systems has also enabled the bank to offer new and improved services in Bangladesh such as 24-hour Contact Centre, Internet Banking, SMS Banking, etc.

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1.1.3 ORGANIZATIONAL STRUCTURE AND MANAGEMENT

Standard Chartered Bank in Bangladesh follows a hierarchy of command. The following organization chart shows the chain of command that is followed at the Head Office of the Standard Chartered Bank in Bangladesh.
HEAD OF PERSONAL BANKING HEAD OF PRIORITY BANKING HEAD OF FINANCIAL MARKET HEAD OF ORIGINATION & CLIENT COVERAGE HEAD OF CLIENT SERVICES GROUP HEAD OF CORPORATE AFFAIRS REGIONAL HEAD GROUP HEAD SME BANKING HEAD OF CREDIT POLICY HEAD OF FINANCE HEAD OF LRGAL COMPLIANCE & ASSURANCE HEAD OF MARKTING

GROUP HEAD CONSUMER BANKING

GROUP HEAD WHOLESALE BANKING

GROUP HEAD ISLAMIC BANKING

GROUP HEAD SUPPORT SERVICES

HEAD OF OPERATIONAL RISK MANAGEMENT HEAD OF HUMAN RESOURCE MANAGEMENT

FIGURE 1.1.3: Corporate Hierarchy at Standard Chartered Bank, Bangladesh (Source: Human Resource Department of Standard Chartered Bank)

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At the top of the chain is the Regional Head of countries under MESA (Middle East and South Asia). Group Heads of the business segments Consumer Banking, Wholesale Banking, Islamic Banking, SME Banking and the Group Head of Support Services reports to the Regional Head. Heads of various functional departments under the business segments and support services in turn reports to these Group Heads.

1.1.4 BUSINESS AND SUPPORT ACTIVITIES

Standard Chartered Bank operations consist of two sets of activities. One is the business segment and the other is the support segment. The business segment represents the business activities of the bank - their products, services and solutions that they offer their clients and the support segment represents the services that the bank provides the business segment internally and helps them operate efficiently. The services fall under the following business segments:

CONSUMER BANKING

SME BANKING

SAADIQ ISLAMIC BANKING

WHOLESALE BANKING

1.1.5 CLIENT RELATIONSHIP SEGMENT: LOCAL CORPORATE ---My designated department--Standard Chartered Bank has a long history of success built on the client-centric approach. For my internship program, I got the opportunity to work in one of the client relationship segments of the Standard Chartered Bank Local Corporate. Local Corporate falls under the functional department of Origination and Client Coverage (OCC), a division under Wholesale Banking. I

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have been fortunate enough to work under this segment and therefore detailed overview of the particular department is discussed further in this part of the report.

1.1.6 ORIGINATION AND CLIENT COVERAGE (OCC)

Under the Wholesale Banking, OCC is at the forefront of that strategy which ensures that the bank acts as a partner to the clients. It strives to fully understand each clients indi vidual needs and goals. With the help of the products and industry partners, the bank works to anticipate clients needs and deliver proactive solutions. This approach, and the consequential performance results, differentiates Standard Chartered Bank from their competitors. By continuing to focus on the fundamentals and by putting clients first, OCC tends to deepen relationships and ensure that success is sustainable. The segments under OCC are

Global Corporate This segment is responsible for providing services to multinational enterprises and Global clients like Sanofi-Aventis, GrameenPhone, Wartsila Bangladesh, LM Ericsson, Motorola, British American Tobacco, and such others. Local Corporate This segment provides services and solutions to local clients like local industries and firms. Their accounts mainly include the provident funds, gratuity funds, pension funds of trusts, small businesses and sole proprietorships. Some well-known local clients of the bank are Incepta Pharmaceuticals, Renata Limited, Pacific Motors, ACME, etc. Commodity Traders and Agriculture The main office of this segment is at Chittagong. It deals with agricultural firms, countrywide divisional traders and other consultancy firms like PetroBangla, Jamuna Oil Company, etc. Financial Institutions This segment deals with two separate client groups. One is the Development Organization, which provides services to NGOs, leasing companies, insurance companies, and other financial institutions. The next group, Banks and
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Investors provides services to local banks like Dhaka Bank, Uttara Bank, and individual investors.

The functional department of OCC therefore deals with some key industries like Telecom, Oil & Gas, Metals & Mining, Power & Utilities, Chemicals & Refining, Transportation & Infrastructure, Commercial Real Estate and Financial Institutions through their Strategic Client Coverage Group (SCCG). It is in this Strategic Client Coverage Group (SCCG) that the segment of Local Corporate plays a significant role.

1.1.7 OVERVIEW OF LOCAL CORPORATE (LC)

Local Corporate (LC) has a total of 1300 accounts, of which 180 are lending relationships and the rest 1120 are non-lending relationships. The relationships managed by LC cover among 66% of the relationships of the total OCC department.

a. LC CLIENT BASE
Local Corporate has a strong base of local clients and these clients have created a diverse portfolio for the relationship segment of LC. The portfolio concentration of LC includes key industries of cement, chemicals, power and engineering, FMCG (Fast Moving Consumer Goods), T&G (Trading and Gas).

b. LC EMPLOYEES
The team of Local Corporate consists of 22 dynamic members, led by the Head of LC. Besides the Head, there are 5 Directors and 4 Associate Director in the team. Working with the directors and associate directors are the 10 Associates of LC. The directors, associate directors and associates are otherwise known as relationship managers. A relationship manager plays a vital role in building and maintaining relationships with clients. They not only account for existing clients, but also build new relationships to bring in new clients to their segment. Usually the directors and associate directors act as the main

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relationship managers for a segment like LC. To assist them, associates or assistant relationship managers are hired. Together, they provide clients with various services and facilities and build a strong client base for their segment. Each associate relationship manger (ARM) works with two relationship managers (RM) and the whole team then reports to the Head of LC. To illustrate further, the organ gram for the LC segment of the bank is given below:

Enamul Haque (Head of OCC)

I WORK HERE

Iftekhaer Hossain (Director)

Faria H Kabir (Director)

Tabrez Mahbub (Director)

Shamim Reza (Director)

Tamanna Rowshan (Director)

Suraiya Zahan (Associate Director)

Andalib Mahmood (Associate Director)

Faysal Islam (Associate)

Habibur Rahman (Associate)

Iftekhaer Alam (Associate Director)

Shayzamee Ashna Ahmed (Associate Director)

Jalaluddin Baybers (Associate)

Renuma Huq (Associate)

Armeen Ahmed (Associate)

Abu Miraj Talukder (Associate)

Md. Rakibuddowla (Associate)

Safat Sadman (Associate)

Anzara Sharif (Associate)

Syed Shahed Imam (Associate)

Justin Sattajit (Executive)

Maainuddin (Executive)

FIGURE 1.1.7.b: Corporate Hierarchy of Local Corporate, SCB Bangladesh (Source: Intranet Site of Standard Chartered Bank - www.iconnectzone.scb.net)
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c. LC SERVICES AND SOLUTIONS

Local Corporate offers transaction banking services to its local clients. As discussed earlier, there is various transaction banking services offered by the bank. However, LC tends to concentrate on three important transaction banking services and offers its solutions to the Local clients. The three services offered by LC are

CASH MANAGEMENT

TRADE FINANCE

SECURITIES SERVICES

i. CASH MANAGEMENT
The vital features of this service is that it manages the availability of clients funds efficiently, monitors and controls the movement of funds, settles payments to client s suppliers in a timely and cost-effective manner and captures every investment opportunity to increase the clients income. Under the cash management services, the solutions that Local Corporate offers its Local clients are Payment Services: LCs payment solutions can help clients to reduce their overall processing costs for domestic and local payments saving time and money while providing a value-added service to the clients suppliers. Collection Services: LCs collections solution leverages the Bank's extensive regional knowledge and widespread branch network across the key markets to specially tailor solutions for the local clients regional and local collection needs. Liquidity Management: SCBs Local Corporate helps its clients to: maximize interest income on surplus balances; minimize interest expense on deficit balances for domestic, regional accounts; minimize FX conversion for cross currency cash concentration;
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customize liquidity management solutions for different entities; and centralize information management of consolidated account balances.

ii. TRADE FINANCE

It is a consolidated channel for all the Local clients trade transactions which links the channel to a host of other cash management solutions. The service involves various types of credit facilities that are offered to the clients as per their companys requirements. The solutions offered by LC under this service are: Imports/Exports, Supply Chain Financing, and Document Manager.

iii. SECURITIES SERVICES

LC works with broker dealers to meet specific requirements for back office outsourcing, leveraging on the expertise residing within the bank in local market settlement. With an extensive Asian network and comprehensive range of commercial banking solutions, LC offers clients the convenience of dealing with a single provider for all their banking requirements. This service comprises of advanced information systems, in-depth local market expertise, integrated and flexible core services, strong client focus and total quality management.

All these services signify the range of solutions that is offered by Local Corporate to its local clients. But are the clients satisfied with these solutions and services? The objective of my report is thus to explore the satisfaction level of clients regarding these transaction banking services offered by Local Corporate.

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Part 2 MY ROLES & RESPONSIBILITIES

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2.1 Creating Spread and updating previous spreads:

In case for a new client, whose financial records has not previously been entered into the system, I would be required to create new spread for specific clients based on the company financials provided. For the process, I had been given access to unique software, called CreditMate. I would be required to log in with username and password, and then search for specific clients. A view of the software platform is availed in the appendix for a better understanding. CreditMate isin-house software used commonly in Standard Chartered Bank. It is part of an initiative to improve the end-to-end credit process. It aims to improve the quality of data, ensure compliance to credit policies, and create standardized processes across customer segments and geographies. The improved processes translate to improved work-life for all. The system covers spreading, grading, pricing, Business Credit Application- BCA (preparation and approval) and issuance of BFLs. Key advantages: - Simplicity: One single system that automates streamlines and consolidates all work of the department. It also provides simplification of the credit initiation and approval process. - Faster turnaround time: Across all credit applications and approvals, therefore, drives better client service. - Solid data integrity: Across all our businesses. - Replacement of multiple systems with one integrated, global system

Spread-work:
Standard Chartered bank uses Moodys Risk Analyst, integrated software to record, update and monitor the financial data of their clients. Using the browser-based interface, the employees can spread core financial statement data and other qualitative data in a central database, based on various accounting standards or specific industries.

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Moodys Risk Analyst RiskAnalyst simplifies and standardizes the way firms collect, analyze and store credit data, laying the groundwork for sound internal credit practices for firms of all sizes across a widerange of industries. Risk Analyst is used to: Collect Financial and Qualitative Data - It creates efficiencies by standardizing the way the firm spreads financial and non-financial data - It minimizes data entry errors using one of industry-compliant financial templates - It obtains a comprehensive view of each customer across a wide-range of assets including company financials, real estate holdings, borrower financials and other pertinent data all in one location Analyze and Report - It improves accuracy and makes better lending decisions by using dual-risk rating platform to calculate probability of default (PD), loss given default (LGD) and other credit risk metrics in one place - It saves time and reduces complexity by implementing standardized credit risk scorecards which outline rating decisions - It Improves business performance by embedding risk policies into structured risk management framework - It builds valuable financial projections and performs scenario analysis without any limitations on the use of historical data - It easily creates reports for a variety of audiences including analysts and senior management Store Data in a Centralized Database - It streamlines a banks credit decision process and helps to understand where the single obligor and transaction risk lie by having a single source for all data - It helps avoid data loss and redundancy - It reduces turn-around time for management, audit and regulatory inquiries

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Fig 2.2: Risk Analyst Platform

Entering reported figures:

The Risk Analyst has three menus on the left column, historical, projection and report. All financial data are recorded in historical. In case of a new statement, a tab named insert statement is clicked, which then would prompt me for details regarding the statement, e.g. report type (qualified/unqualified), accountant name, the date of financial etc.

Financial Projections:
Projection is a vital part in companys strategic planning. Through projections, Standard Chartered bank further monitors its clients progress and growth. There are certain criteria based on which projections are made, varying from company to company. Examples of projections would be for a company to set to project a Cost of goods sold to be 70% of sales in its upcoming year. I would be given clients projection values to update in the risk analyst and set the certain criteria as advised, from which the software would itself fill in certain calculated values.

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Report:
This part of the Risk Analyst is what I have worked frequently with. After inserting all the necessary values from the clients financial (annual/quarterly) reports and making sure they are all balanced properly, my next task would be to acquire financial ratio figures based on the inserted financials. The ratios are generated automatically by the integrated software and I have the option of choosing the number of financial years I want to compare it with (generally, three most recent fiscal years of a company).

Publish Summary:
Once the financial information is archived accurately it needs to be published to be able to use it for Business Credit Application (BCA). I would usually verify the inputs with one of my peers and then publish it for future use.

2.2 Scorecard
Scorecard is a system in creditmate, which is used to obtain credit grading of a client that generates based on certain criterions set by the bank to evaluate a company. It would require me to go through a series of steps in the creditmate to obtain the final credit grade (CG) that is later used in BCA and credit approval decision. The system evaluates and computes score based on both financial and non-financial information of a company.

2.3 Business Credit Application (BCA)

Business Credit Application (BCA) is a document that allows a business to apply for credit privileges with a company. The information the business provides in a business credit application allows for an investigation into its credit worthiness.

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Standard Chartered banks BCA are designed to facilitate better understanding of customers risk assessment and needs identification for both Relationship Manager (RMs) and the approvers. The application format gradually reduce re-work as they help RMs to present all the relevant information required for processing an application; approver queries if any should be gradually minimized if all sections of the format are filled in crisply.

Fig. 2.3 Business Credit Application

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A BCA usually consists of the following:

Executive summary
- What is being requested? - Why we want to do this? - SCB scorecard: a credit grading provided for each company based on certain criterions and how a company satisfies those criterions.

Sources of repayment
This includes details of a clients banking relationships with SCB and other banks, prioritizing a s primary or secondary.

Top 3 risks and risk monitoring strategy

In this segment, the three key risks associated with banking with particular client are identified with additional Mitigate and risk monitoring strategy is provided.

Client Background
This is a detailed report of the clients activities, market position and outlook, including any future plan that a client may have. This would also include organization chart, ownership/management, operating model, five major buyers & suppliers.

Peer Analysis
This is a competitive analysis between the client and its major competitor, including a brief industry overview. In this segment of BCA, comparisons are made in terms of financial ratios, productions and sales. This is a crucial scenario as it provides a scenario of how a client is doing in the market compared to other companies with similar business activities.

Key Risks and Mitigates

Some of the key components of this segment are industry risk analysis, business risk analysis, security risks, refinancing risks, management capability and succession planning, and facility

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structure and capital alignments. The various risks are identified, assessed and discussed briefly for review.

My most frequent task as an intern in standard chartered bank was to work on brief financial highlights of a company, which is part of this segment of the BCA. I would be required to write brief, yet insightful assessment of the changes in financial ratios of the client, acquired from the Risk Analyst software mentioned earlier. The portion is divided into three further components Sales & profitability, Liquidity, and Leverage. In each of the components, I would address the changes in related ratios and identify the reasons of such changes, followed by opinions on how well a company is performing based on the ratios and other internal and external factors effecting on them. Sales & profitability would usually have total sales, GP margin, COGS/Sales mentioned in it. Liquidity would contain assessments of a companys current ratio, liquidity ratio, net cash after operations (NCAO), net working cash cycle (NWCC) etc. Gearing portion would include debt ratios, leverage, gearing ratios etc. BCA is reviewed on a yearly basis. However, if any additional changes are needed to be updated, such as a clients facility structures, an interim BCA would be prepared in between a year.

2.4 Factory visit report

Factory visit is part of the process in evaluating clients operational activities and granting credit approval. A general template is used to record information upon a visit to a clients factory. I have worked on such template to record information based on the notes taken by an associate of local corporate, while gathering additional information from the clients company websites .

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2.5 Other activities

Writing business letters to clients Using spreads to create database of clients Use of mail merge system to prepare labels of a large list of clients Organizing and updating local corporate database and previous reports.

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Part 3 RESEARCH
Investigating the levels of satisfaction of Local Corporate clients in Standard Chartered Bank regarding the various services offered by Local Corporate.

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3.1 Introduction
Dealing with customers every day is not an easy job. Financial institutions serve a wide variety of customers individually and conduct business with a variety of financial needs. It takes special skills and knowledge to handle customers successfully. As a banks boom or bust largely depends on customer satisfaction, a unique understanding of customers needs must be developed. All kinds of service provided by a Bank are closely related to the customer/client. Since a customer is a very important factor for the bank every bank tries to satisfy its customers by providing them various types of service. A bank should be knowledgeable regarding customer needs & wants to achieve its ultimate goals towards success. Every bank tries its best to satisfy its customers to establish their own business in the most competitive business world. On behalf of any bank, every banker tries to capture the faith and trust of his/her customer. SCB is running it business successfully in Bangladesh since 1947 till now. It is possible only because of its better service to satisfy all of its customers. Therefore, a constant and through research on customer satisfaction is crucial to the bank to hold its customers and attain the desired company goal.

3.2 STATEMENT OF THE PROBLEM

Research has always been concentrated in measuring Customer Satisfaction or service quality for customer services. What most researchers agree and have a consensus on is that quality of services offered being a crucial element in Customer Satisfaction even when the offering involved a combination of a product and services. The current study aims at measuring the levels of satisfaction of corporate clients over the various services provided from standard chartered. As efforts are directed toward establishing longer relationships with customers as well as upholding and extending business relationships to various corporate levels, and hence it is imperative that various strategically service offers result in higher customer satisfaction levels.

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3.3 PURPOSE OF THE STUDY

Satisfaction of clients is important for Standard Chartered Bank, as it is one of the leading banks of Bangladesh. It is the satisfaction level of clients that determines the current and future position of the bank, their reputation and image, and also contributes to the growing base of clients for the bank. This study will help Relationship Managers to gain more knowledge about the satisfaction level of Local clients regarding the transaction banking services of Local Corporate. It will also facilitate them to redefine their strategies for maintaining client relationships to satisfy more Local clients and to further analyze their products, services and client solutions. The study will also encourage employees to become more motivated and adopt new ways of approaching and satisfying the Local clients.

This report will not only help the management of the bank, but also the stakeholders on a whole. Different financial institutions can be motivated to consider the study conducted in this report, in order to improve the various offerings of the transaction banking services for Local clients.

3.4 OBJECTIVES OF THE STUDY

I. Broad/General Objective of the report are: To achieve a wide knowledge of the transaction banking services offered by Local Corporate. To measure the degree of satisfaction of the Local Corporate clients.

II. Specific Objectives of the report are: To examine the knowledge level of local clients regarding the services of Local Corporate. To investigate clients views regarding the quality and standard of the services offered by Local Corporate.

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 To identify the gaps between the services and solutions that clients want from this segment and those which are actually being provided by Local Corporate. To suggest ways of improving the services and solutions offered by Local Corporate to accommodate the rapidly growing client base of Standard Chartered Bank.

3.5 LITERATURE REVIEW

Service Quality
Traditionally, service quality has been conceptualized as the difference between customer expectations regarding a service to be received and perceptions of the service being received (Grnroos, 2001; Parasuraman, Zeithaml, & Berry, 1988). In some earlier studies, service quality has been referred as the extent to which a service meets customers needs or expectations (Lewis & Mitchell, 1990; Dotchin & Oakland, 1994). It is also conceptualized as the consumers
overall impression of the relative inferiority or superiority of the services (Zeithaml, Berry, & Parasuraman, 1990).

Service Quality Dimensions

Parasuraman et al. (1988) identified five dimensions of service quality (viz. reliability, responsiveness, assurance, empathy, and tangibles) that link specific service characteristics to consumers expectations. (a) Tangibles - physical facilities, equipment and appearance of personnel; (b) Empathy - caring, individualized attention; (c) Assurance - knowledge and courtesy of employees and their ability to convey trust and confidence; (d) Reliability - ability to perform the promised service dependably and accurately; and (e) Responsiveness - willingness to help customers and provide prompt service. After a comprehensive review of service quality studies, Asubonteng, McCleary, and Swan (1996) concluded that the number of service quality dimensions varies in different industries.
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For example, Kettinger and Lee (1994) identified four dimensions in a study of information systems (IS) quality, which did not have tangible dimension. Cronin and Taylor (1992) developed a one-factor measurement instrument instead of the five-factor measures proposed by Parasuraman et al. (1988). Besides SERVQUAL, Sureshchandar, Rajendran, and Anantharaman (2003) have identified five factors of service quality from the customers perspective. Those are: a) Core service or service product, b) Human element of service delivery, c) Systematization of service delivery: non- human element, d) Tangibles of service, and e) Social responsibility. After a close inspection it could be safely concluded that the newly defined construct of service quality by Sureshchandar et al. (2003) has some resemblance with the definition provided by Parasuraman et al. (1988). For this study the researchers have employed the five dimensions of service quality proposed by Parasuraman et al. (1988).

Customer Satisfaction
Customer satisfaction is a well known and established concept in several areas like marketing, consumer research, economic psychology, welfare-economics, and economics. The most common interpretations obtained from various authors reflect the notion that satisfaction is a feeling which results from a process of evaluating what has been received against what was expected, including the purchase decision itself and the needs and wants associated with the purchase (Armstrong & Kotler, 1996). Bitner & Zeithaml (2003) stated that satisfaction is the customers evaluation of a product or service in terms of whether that product or service has met their needs and expectations. According to Boselie, Hesselink, and Wiele (2002) satisfaction is a positive, affective state resulting from the appraisal of all aspects of a party s working relationship with another. The definition provided by Boselie et al. (2002) has been used for this study.

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Relationship between Service quality and Customer Satisfaction

Over the past few years there has been a heightened emphasis on service quality and customer satisfaction in business and academia alike. Sureshchandar et al, (2003) identified that strong relationships exist between service quality and customer satisfaction while emphasizing that these two are conceptually distinct constructs from the customers point of view. Spreng and Mackoy (1996) also showed that service quality leads to customer satisfaction while working on the model developed by Oliver (1997). In a recent study conducted by Ribbink et.al (2004) revealed that this relationship also exists in the e-commerce industry.

3.6 CONCEPTUAL FRAMEWORK

Dependent

Service Offered
Length of relationship The extent of business Reliability Responsiveness Accessibility Assurance Factor Empathy

Customer Satisfaction

Independent

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3.7. Research Question

RQ 1): Is there any significant relationship between customer satisfaction & service offered in context of Standard Chartered Bank in Bangladesh?

3.8. Hypothesis
H 1): There is a significant relationship between customer satisfaction & service offered in context of Standard Chartered Bank in Bangladesh.

3.9 METHODOLOGY
3.9.1 APPROACH
My objective was to find out specific correlations between the independent and dependent variables associated in this research subject matter. Therefore, my objective was to look at the relationship between various services provided by Local Corporate department as well as the quality of these services with the customer satisfaction level of the same sector.

For the purpose of my research, I initially designed a descriptive- correlational study to assess whether there is any correlation among the variables. This method would be most effective as I am trying to find out the extent of the associations between the variables, whether any exists, as well as their statistical significance on my overall research. However, due to time constraints and imitational length of the project, only qualitative study has been made over the findings from this research.

The research has been carried out over a one period of time through questionnaires answered by a sample of local corporate clients using the conventional method of telephone survey.

Further information used to prepare this report has been collected from both primary and secondary sources. The primary sources have provided the report with reliable data and
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information relating to Local clients and the banks operations. On the other hand, the secondary sources have been an indispensable source of information regarding the historical background of the bank, its functions, and descriptions of its various departments and products.

i. PRIMARY SOURCES
Data collected from the clients over telephone survey conducted through questionnaires. Informal discussion with the banks staff, especially the relationship managers of the corporate segment. Relevant data from the banks reports, presentations and other docume nts

ii. SECONDARY SOURCES

Annual reports of the Standard Chartered Bank. Various product and service brochures. Intranet Site of the Standard Chartered Bank. Official local website of the Standard Chartered Bank. Various web researches

*Note: The questionnaires are provided in the appendix.

3.9.2 SAMPLING

i. POPULATION
The population targeted for this research was mainly the corporate clients of the local segment of the bank.

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ii. SAMPLE UNITS

The sampling unit in case of this research consisted of the clients taken from the population of the Local Corporate segment of the bank.

iii. SAMPLING FRAME

The sampling frame usually contains a list of elements from which the sample is drawn. The survey has been conducted among different levels of corporate clients representing industries like cement, telecom, pharmaceuticals, etc. Also, all levels of relationship managers have been considered starting from associate to associate directors of this segment.

iv. SAMPLING DESIGN

The sampling frame usually contains a list of elements from which the sample is drawn. The survey had been conducted among different levels of corporate clients representing industries like cement, telecom, pharmaceuticals, etc.

v. SAMPLE SIZE
The sample size consisted of 120 respondents who are the major Clients of the Local Corporate segment of the bank. Corporate clients are usually less in number at the same time corporate clients may not reveal information through online survey due to confidentiality concerns. Also, because of time constraint it will not be possible to go to every organization and take the survey. For this research, those clients will be chosen who has maximum possibilities of answering the survey questions. So, keeping limitations in mind, a sample size of 120 has been chosen from the local corporate clients of standard chartered bank.

3.9.3 DATA COLLECTION METHODS

Corporate clients are usually less in number at the same time corporate clients may not reveal information through online survey due to confidentiality concerns. The questions were
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prepared in such a way keeping their confidentiality concerns in mind. Also, because of time constraint it was not possible to go to every organization and take the survey. Therefore, data for this report was collected through structured questionnaires from clients, who were asked over the telephone with the help of the respective relationship managers of the Local Corporate segment. Also, informal discussions with the relationship managers of the segment provided invaluable data for the report. Published statistics relating to the bank and Local clients was also used in this report.

3.9.4 DATA ANALYSIS

Analysis can be done for both qualitative and quantitative data. Due to time constraints and many other limitations, only qualitative research has been done to limit the research to a reduced length as required by the internship program in the university. To analyze the data collected in the survey through questionnaires, analysis was conducted mainly through the use of Microsoft Excel.

To measure the degree of satisfaction of the Local Corporate clients, the survey was done among 80 respondents. These respondents represented the local companies that the segment of Local Corporate works with. For instance, when a company opens an account with the Local Corporate segment, two or three people is usually authorized to deal with the bank on behalf of the company. The number of authorized persons can be more, depending on the structure of the company.

Typically, these people tend to be the finance controllers, finance directors, or head of the finance department of the particular company. It is these people who represent the company and work with the bank and so they know more about the services and solutions of the Local Corporate segment. Also, they are the ones who can accurately rate the quality and standard of these services and comment on their own satisfaction level regarding the segment. This is why this group of peoples is chosen as group.
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For the target group, a structured questionnaire containing both open-ended and close-ended questions were prepared with appropriate options. The questionnaire consisted of questions relating to the clients level of knowledge regarding the services of Local Corporate. Also there were questions regarding the clients views about the quality and standard of services offered by this segment, Moreover there were some questions that probes the clients satisfaction level regarding the services of LC and the final part asks for the clients feedback and suggestion to improve the services and solutions of LC. The questionnaire is thus a blend of multiple-choice questions, open-ended questions, rank order questions, statement checklists and rating questions.

After I prepared the questionnaire, I requested my supervisor to help me to get in touch with the clients. Since it was not feasible for me to go and meet all the clients of LC, I listed around 120 prominent client groups and e-mailed the questionnaires to the authorized persons of those companies. The client groups were selected using the simple random sampling method, in order to remain unbiased and to provide equal opportunity for all the clients of the Local Corporate segment.

I had sent out around 120 questionnaires to these 120 companies in total by thinking that many of them might not respond accordingly. But the non-response rate was very low. I got tremendous response from every company. At the end, I collected data from 115 respondents.

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3.10 QUALITATIVE ANALYSIS

Duration of maintaining relationship with the Local Corporate Respondent Less than 1 year More than 1 year More than 5 year For quite a long time Total 13 21 48 33 115 Percent 11.3 18.3 41.7 28.7 100.0

GRAPH 1: Duration of maintaining relationship with the Local Corporate (Source: Excel Outputs)

The table shows that around 42% clients have a banking relationship with LC for more than 5 years. Only 11% clients are dealing with the bank for less than a year and 29% clients stated that they have a relationship with this segment for quite a long time. This shows that the majority of respondents has worked with the segment for more than 5 years and therefore can be regarded as to have a strong relationship with LC.
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The next tables relate to the questions about the clients level of knowledge regarding the services of Local Corporate. Which are the services offered by LC? Respondent Cash management, Trade finance, Securities services Corporate advisory, securities services, Trade finance Cash management, structured Finance, trade finance Securities services, Cash management, Client access Total 61 19 24 11 115 Percent 53.0 16.5 20.9 9.6 100.0

GRAPH 2: Which are the services offered by LC? (Source: Excel Outputs)

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Which LC service your company avail the most? Respondent Cash management Corporate advisory Structured Finance Securities services Trade finance Client access Total 43 7 9 19 27 10 115 Percent 37.4 6.1 7.8 16.5 23.5 8.7 100.0

GRAPH 3: Which LC service your companies avail the most? (Source: Excel Outputs)

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Would you like to know more about LC services? Respondent I am aware of the services and I think it is as much as necessary. I am aware of the services but would like to know more I am not too aware of the services but I am not keen to know more I am not too aware of the services but would like to know more Total 53 31 12 19 115 Percent 46.1 27.0 10.4 16.5 100.0

GRAPH 4: Would you like to know more about LC services? (Source: Excel Outputs)

Around 53% of the respondents accurately named the services that LC offers them, which proves that majority of the LC clients have a clear knowledge about LC services and solutions. The next table shows that cash management is the service that is availed by nearly 37% of the respondents. A close percentage result is that of 24%, which relates to the service of trade finance. This proves that the cash management solution is mostly popular among the majority

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of LC clients tend to use most, followed by the trade finance solution of LC services. Results from the next table shows that 46% of the respondents claim that they are aware of the services of LC and they think it is as much as necessary. This proves that LC clients do not have much interest to know more about the services of the segment, other than those that their companies avail.

The next set of tables relate to the clients views about the quality and standard of services offered by this segment. Does LC provide promised services? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 28 51 8 19 9 115 Percent 24.3 44.3 7.0 16.5 7.8 100.0

GRAPH 5: Does LC provide promised services? (Source: Excel Outputs) Page | 38

Can LC be depended upon? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 19 68 4 11 13 115 Percent 16.5 59.1 3.5 9.6 11.3 100.0

GRAPH 6: Can LC be dependent upon? (Source: Excel Outputs)

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Does LC maintain records accurately? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 55 30 6 9 15 115 Percent 47.8 26.1 5.2 7.8 13.0 100.0

GRAPH 7: Does LC maintain records accurately? (Source: Excel Outputs)

The reliability factor of LC services and staff has been accounted for by three questions. The clients have been asked whether LC provides promised services, if LC can be depended upon, and whether LC maintains records accurately. To these questions, responses have been recorded accurately and the table shows that 44% of the respondents have agreed that LC provides promised services; 59% respondents also agreed that LC can be depended upon and 48% of the clients strongly agreed that LC maintains records accurately. Thus all three statements indicate that the services and staff of LC can be regarded as reliable.
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Does LC keep you informed? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 18 49 21 14 13 115 Percent 15.7 42.6 18.3 12.2 11.3 100.0

GRAPH 8: Does LC keep you informed? (Source: Excel Outputs)

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Does LC provide prompt services? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 23 30 16 41 5 115 Percent 20 26.1 13.9 35.7 4.3 100.0

GRAPH 9: Does LC provide prompt services? (Source: Excel Outputs)

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Does LC readily respond to requests? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 16 26 39 23 11 115 Percent 13.9 22.9 33.9 20.0 9.6 100.0

GRAPH 10: Does LC readily respond to requests? (Source: Excel Outputs)

The responsiveness factor of LC services and staff has been accounted for by three questions. The clients have been asked whether LC keeps them informed, if LC provides prompt services, and whether LC readily responds to requests. To these questions, responses have been recorded accurately and the frequency table shows that 43% of the respondents have agreed that LC keeps them informed; but 38% respondents disagreed that LC provides prompt services and 40% of the clients took a neutral stand that LC readily responds to requests. Thus all three

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statements together indicate that the services and staff of LC cannot be regarded as satisfactorily responsive.

Can LC RMs be easily accessed? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 72 23 1 10 9 115 Percent 62.6 20.0 0.9 8.7 7.8 100.0

GRAPH 11: Can LC RMs be easily accessed? (Source: Excel Outputs)

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Can LC services be accessed at convenient hours and branches? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 28 47 5 15 20 115 Percent 24.3 40.9 4.3 13.0 17.4 100.0

GRAPH 12: Can LC services be accessed at convenient hours and branches? (Source: Excel Outputs)

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Is the waiting time expensive? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 13 21 34 39 8 115 Percent 11.3 18.3 29.6 33.9 7.0 100.0

GRAPH 13: Is the waiting time expensive? (Source: Excel Outputs)

The accessibility factor of LC services and staff again has been accounted for by three questions. The clients have been asked whether LC RMs (relationship managers) can be easily accessed, if clients can access services at convenient hours and branches, and whether waiting time is expensive for them. To these questions, responses have been recorded accurately and the table shows that 63% of the respondents have strongly agreed that LC RMs can be easily accessed; 41% respondents also agreed that services can be accessed at convenient hours and branches

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and 34% of the clients disagreed that waiting time is not expensive. Thus the statements indicate that the services and staff of LC are accessible, but simultaneously clients also find the waiting time to be expensive.

Do LC employees have knowledge to answer clients requests? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 24 41 11 22 17 115 Percent 20.9 35.7 9.6 19.1 14.8 100.0

GRAPH 14: Do LC employees have knowledge to answer clients requests? (Source: Excel Outputs)

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Can LC employees keep company secrets safe? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 67 37 2 3 6 115 Percent 58.3 32.2 1.7 2.6 5.2 100.0

GRAPH 15: Can LC employees keep company secrets safe? (Source: Excel Outputs)

The assurance factor of LC services and staff has been accounted for by two questions. The clients have been asked whether LC employees have knowledge to answer clients' requests and whether LC employees can keep company secrets safe. To these questions, responses have been recorded accurately and the table shows that 36% of the respondents agreed that LC employees have the knowledge to answer clients' requests and 58% respondents strongly agreed that LC employees can keep company secrets safe. Thus the two statements indicate that LC staff can guarantee service assurance.
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Do LC employees provide individual attention? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 56 32 8 13 6 115 Percent 48.7 27.8 7.0 11.3 5.2 100.0

GRAPH 16: Do LC employees provide individual attention? (Source: Excel Outputs)

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Do LC employees understand company needs? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 27 46 12 12 17 115 Percent 23.5 40.0 11.3 10.4 14.8 100.0

GRAPH 17: Do LC understand company needs? (Source: Excel Outputs)

The empathy factor of LC services and staff has been accounted for by two questions. The clients have been asked whether LC employees provide them individual attention and whether LC employees understand their company needs. To these questions, responses have been recorded accurately and the table shows that 49% of the respondents strongly agreed that LC employees provide them individual attention and 40% respondents agreed that LC employees can understand their company needs. Thus the two statements indicate that LC staff shows empathy towards clients.
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Are LC employees consistently polite? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 33 48 17 11 6 115 Percent 28.7 41.7 14.8 9.6 5.2 100.0

GRAPH 18: Are LC employees consistently polite? (Source: Excel Outputs)

The courteousness factor of LC services and staff has been accounted for by only one question. The clients have been asked whether LC employees are consistently polite. Responses have been recorded accurately to this question and the table shows that 42% of the respondents agreed that LC employees are consistently polite. Thus the statement indicates that LC staff is courteous.
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Are the rates of LC in accordance with its quality? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 15 38 18 37 7 115 Percent 13.0 33.0 15.7 32.2 6.1 100.0

GRAPH 19: Are the rates of LC in accordance with its quality? (Source: Excel Outputs)

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Are the rates of LC reasonable? Strongly agree Agree Neutral Disagree Strongly disagree Total Respondent 13 22 19 48 13 115 Percent 11.3 19.1 16.5 41.7 11.3 100.0

GRAPH 20: Are the rates of LC reasonable? (Source: Excel Outputs)

The rates of LC services have been accounted for by two questions. The clients have been asked whether the rates of LC are in accordance with its quality and whether the rates are reasonable. To these questions, responses have been recorded accurately and the table shows that 33% of the respondents agree but a close number of clients nearly 32% - disagree that rates of LC are in accordance with its quality. On the other hand, 42% respondents disagreed that rates of LC are reasonable. Thus it can be inferred from the two statements that LC rates are somewhat in

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accordance with quality, but clients seem to be confused regarding the balance between quality and service charges. Also, clients feel that the rates are not reasonable.

How will you rate the overall quality and standard of LC services? Exceptional Consistently High Generally Good Poor Total Respondent 13 23 59 20 115 Percent 11.3 20.0 51.3 17.4 100.0

GRAPH 21: How will you rate the overall quality and standard of LC services? (Source: Excel Outputs)

This question was asked to the respondents to get their overall response regarding the quality and standard of LC services. 51% respondents stated that the overall quality and standard of LC services is generally good.

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Which cash management solution is the most satisfactory? Payment Services Collection Services Liquidity Management None of the above All of the above Total Respondent 32 41 18 8 16 115 Percent 27.8 35.7 15.7 7.0 13.9 100.0

GRAPH 22: Which cash management solution is the most satisfactory? (Source: Excel Outputs)

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Which trade finance solution is the most satisfactory? Import/Export Supply Chain Finance Document Manager None of the above All of the above Total Respondent 19 35 29 14 18 115 Percent 16.5 30.4 25.2 12.2 15.7 100.0

GRAPH 23: Which trade finance solution is the most satisfactory? (Source: Excel Outputs)

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Which securities service solution is the most satisfactory? Custody Service Clearing Service Fund Service None of the above All of the above Total Respondent 22 57 17 11 8 115 Percent 19.1 49.6 14.8 9.6 7.0 100.0

GRAPH 24: Which securities service solution is the most satisfactory? (Source: Excel Outputs)

The first three questions under this section were given to find out which solution among the cash management, trade finance and securities services was mostly popular with the clients. 36% of the respondents found collection service to be the most satisfactory one among cash management services; 30% of the respondents voted for the solution of supply chain financing to be most satisfactory among trade finance services and 50% of them claimed that clearing service under the securities services is most satisfactory.

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How likely are you to complain about LC services to RMs? I often have complaints about the services and share it with the RM I have some complaints and I share it with the RM I have some complaints but never shared it with the RM I do not have any complaints regarding the services being offered Total Respondent 26 34 41 14 115 Percent 22.6 29.6 35.7 12.2 100.0

Please rate your overall satisfaction level regarding LC services. Extremely satisfied Moderately satisfied Moderately dissatisfied Extremely dissatisfied Total Respondent 20 54 25 16 115 Percent 17.4 47.0 21.7 13.9 100.0

The tables relating to clients complaints and satisfaction level are discussed below. 32% of the respondents stated that the staff of LC is not supportive and efficient and 36% of them said that although they have some complaints regarding the services and staff of LC, they do not share it with the respective relationship managers. When asked to rate their overall satisfaction level regarding LC services, 47% of the respondents stated that they are just moderately satisfied with the services of Local Corporate.

3.11 LIMITATIONS OF THE STUDY

The survey was limited to the local clients of the wholesale banking division only. Lack of comprehension and responsiveness of the clients was a major problem in the collection of data.
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Large-scale research was not possible due to constraints and restrictions posed by the bank as well as the university. Confidentiality of data acted as a barrier during the study, as banks have confidential data related to its operations and clients which they did not want to reveal. Time constraint was also one of the factors that curtailed the scope of the study. Rush banking hours and hectic schedules of the banking staff was another obstacle to the scope of the study. The Relationship Mangers of the concerned department were busy meeting their targets and it was very difficult for me to get some practical ideas regarding their ideas, expectations and opportunities regarding my topic.

3.12 FINDINGS
A comprehensive analysis was done for the data gathered from the survey results of LC clients. At first, the frequency table and the qualitative results highlighted some major points of the local clients responses. These major points are as follows: Most LC clients have been maintaining relationship with the Local Corporate segment of Standard Chartered Bank for more than 5 years. They have a good knowledge about the services and solutions that LC offers them and thus they perceive their current awareness status and level of knowledge as sufficient. Most clients have rated LC services as reliable, but believe LC staff to be less responsive. Clients claimed that LC staff and services are easily accessible but the waiting time is pretty expensive. They also stated that LC staff can guarantee them service assurance, are consistently polite and courteous and shows empathy towards them. On the other hand, even if clients found LC rates to be in accordance with quality, they did not state it as reasonable. In fact, clients rated the overall quality and standard of LC services to be generally good. Majority of the clients have some complaints against the services of LC, mostly that LC staff is not supportive and efficient but clients never share it with the relationship

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managers (RMs). Thus, they have rated the overall satisfaction level regarding the services of LC as moderate. Most clients did not want LC to add any other solution to their services, because they felt that existing solutions covered all aspects of a business. But those who wanted new solutions to be added to LCs range of services, requested for solutions relating to foreign exchange.

Clients did not want LC to remove any solution from their offered services, because they felt that existing solutions were quite standard. However, those who wanted some solutions to be removed from LCs range of services voted against those solutions which are not much in use by the clients. Talking about changes in the Local Corporate segment, most clients want LC staff to make more frequent communication with the clients. Factors like service assurance, responsiveness and courteousness of LC staff and the rates of LC services have a strong relationship with client satisfaction of the Local Corporate segment. Also, the rates of LC services strongly impact the clients rating of the overall quality and standard of LC services but not the rating of their level of satisfaction. Other factors like reliability of LC services, accessibility of the staff and services and empathy shown by the staff have a weak relationship with LC client satisfaction. Factors of service reliability, staff responsiveness, service and staff accessibility, service assurance, staff empathy and courteousness, and even rates of the services have a weak relationship with the longevity of the relationship that clients share with the segment of LC. Even the clients rating of the overall quality and standard of LC services and their own satisfaction level has a weak relationship with the longevity of the clients relationship with LC. Finally, the rating of the clients satisfaction level regarding LC services have a weak relationship with the clients rating of the overall quality and standard of LC services and their choice of the mostly used LC service.
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Customers feel that LC services as reliable but are not said to be responsive except for LC keeps them informed about when services to be provided. LC services can be said to be easily accessible except for one part that is waiting time for the service is expensive for clients, other than this clients feel that LC is easily accessible. Customers also feel that LC employees have the knowledge to answer clients queries and can keep company secrets safe. Clients do consider LC staffs as empathetic but not courteous. In general, customers rated LC services mostly as poor to good not beyond that.

3.13 RECOMMENDATIONS
Since most clients share a relationship with Local Corporate for more than 5 years, Local Corporate should take special care to strengthen these relationships further and maintain their strong base of clients. For this, Local Corporate needs to continuously remind clients of their services and solutions through effective publicity and promotions. This can include billboards, brochures, leaflets and even web advertising. As cash management is the mostly used service by the local clients, the segment should invest more in the efficient utilization of the clients cash assets in a manner which is consistent with the strategic objectives of Local Corporate. The segment should focus on providing international product quality and cross border capability to its clients. Local Corporate should concentrate on providing superior access to the worlds fastest growing markets through their international network of branches, subsidiaries and alliances - supported by world-class electronic channels. They should try to develop comprehensive and integrated working capital solutions using leading-edge products and expertise - supported by consistent and seamless local service standards. Local Corporate can also include some local liquidity management solutions, multi currency cross border payments, trade ports and trade kiosks to its entire suite of transactional services and solutions. Since most clients have complaints against the staff of local corporate, the segment should employ more skilled, segment-aligned specialists with the experience and
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insights needed to provide trusted business advice to senior client executives of the local companies. Also, the segment should try to be responsive and make more client calls so as to communicate more frequently with the clients. As service assurance, responsiveness and courteousness of staff and the rates of services tend to have an impact upon client satisfaction of local corporate; the segment should focus on the enhancement and improvement of these factors. Local corporate should specially make its staff more responsive in providing services and attending clients and ensure that rates are reasonable for the local clients. For this, extensive training programs and attractive incentives can be useful to make the staff more responsive. Local corporate can also carry out a market survey to find out about the rates of the other banks of Dhaka and adjust their charges accordingly. As the rates strongly impact the clients rating of the overall quality and standard of local corporate services, it should be cautiously charged. Although factors like service reliability, staff responsiveness, service and staff accessibility, service assurance, staff empathy and Courteousness and even rates of the services have a weak relationship with the longevity of the relationship that clients share with the segment yet local corporate should take these factors into account. Staff training programs to speed up their ability to provide services can facilitate prompt services by local corporate and the staff can readily respond to the clients requests. Clients are highly dissatisfied with the waiting time as it is time-consuming and costly for them. Therefore, local corporate can involve support staff to provide clients with services that require less time but for which clients have to wait longer like statement printouts, signature verifications, etc. Also, call centers of the bank can hire teams to work and provide services to the local corporate clients specifically. In this way, a lot of trivial problems of clients will be solved without making them wait for long. Local Corporate can conduct surveys or telephone interviews or take suggestions from the clients during client calls to further improve and revamp their services and solutions. Relationship Managers (RMs) can play a vital role here as they are the intermediaries
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between the segment of the bank and the clients. It should be the RMs responsibility to some extent to gather information about the services and solutions that clients are satisfied and dissatisfied with. Satisfactory services should be made consistent by the segment but the not so satisfied services and clients should be given special care and treatment. This is because a bit of negligence and ignorance on the part of the client relationship segment of local corporate can make them lose clients to their competitors.

3.14 CONCLUSION
The relationship of clients with a bank in usually set for a long-term period. When clients come to a bank for services and solutions relating to their company or business, they would definitely expect a superior quality and standard for these services. It is thus the banks responsibility and more specifically the client relationship segments duty to make sure that the clients receive their expected quality of services. Local Corporate needs to fulfill this responsibility with special care as they represent the client relationship segment for local clients and are dealing with local companies. This segment brings in the most revenue for the bank owing to its strong client base. So to maintain relationships with this strong base of clients, Local Corporate should continuously improve their services and train their staff. They should understand clients expectations and try to meet them if possible, even surpass these expectations wherever feasible. Then only, local corporate can continue being the best client relationship segment of the Origination & Client Coverage (OCC) department and more importantly guarantee the satisfaction level of their local clients to a large extent. Today, the banking industry in Bangladesh is a competitive field and to retain their position in the market, Standard Chartered Bank needs to provide new and innovative solutions to their banking services for the local clients. In this way, the bank can maintain a strong portfolio of local clients and stay in competition with other banks in the industry. To achieve this, client relationship segments should also be strengthened further specially segments like Local Corporate. They should provide quality and
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prompt services and be more responsive to clients requests. Only then, the satisfaction level of clients can be fully achieved.

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Part 4 REFERENCES

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Books
Cooper, Donald R. Schindler, Palmer. S. (2009) Business Research Methods (9th Ed). McGraw Hill.

Journals
Akbar, M.M, Parvez, N., (2009) Impact of service quality, trust, and customer satisfaction on customers loyalty. Retrieved from http://www.journal.au.edu/abac_journal/2009/jan09/article02_JanApr2009.pdf

Wang, M., Shieh, C-J. (2006). The relationship between service quality and customer satisfaction: the example of CJCU library. Retrieved from www.tarupublications.com/journals/jios/full-text/JIOS.../jios134.pdf

Smith, Amy K., Bolton, Ruth N. and et. (1999). A Model of Customer Satisfaction with Service Encounters Involving Failure and Recovery. Retrieved from www.ruthnbolton.com/Publications/ServiceFailureandRecovery.pdf

Websites
http://www.standardchartered.com/en/ http://www.bangladesh-bank.org/ http://vip.intranet.standardchartered/scybernet2 http://www.standardchartered.com/bd

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Part 5 APPENDIXES

CLIENT LIST
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NFC FIBRES LTD LONDON METROPOLITAN UNIVERSITY POWERTRADE ENGINEERING LIMITED M/S. MASTER CORPORATION INN-WIN ENTERPRISE MIZAN HATIM ENGINEERING COMPANY LIMITED CITY SCHOOLS (PRIVATE) LIMITED DECON.ASSOCIATES VARUNA LEATHER PRODUCTS FLOCK PRINTERS JUTE MATE PACKAGING COMPANY M/S UNIQUE PRINTERS KHAN ASSOCIATES DART LOCAL LOGISTICS (PRIVATE) LTD SUN COPPER INDUSTRIES LTD. PROFESSIONAL SERVICES LTD ACI FORMULATIONS LTD. ADVANCED CHEMICAL INDUSTRIES LTD. SELECTOR HIDES & SKINS AGENCY GAFFAR FOOD PRODUCTS LIMITED (A/T) IMPEXCO ALASKA INTERNATIONAL COMPANY MOTION TRADE& ENGINEERING LIMITED STAR POINT INTERNATIONAL PVT. LIMITED T.M.PEL HOUSE GRAMEEN TELECOM AL MADINA TRAVELS INTERNATIONAL LTD SFX GREENHERALD INTERNATIONAL SCHOOL BANGLA KAPITA POWER LIMITED AWANA BANGLADESH AZIZ & COMPANY LTD. BANGLADESH AUSHAD SHILPA SAMITY A MALEK & SONS ADCOMM MEDIA ALOSHIKHA RAJIHAR SOCIAL DEVELOPMENT CENTRE ALTERNATE ASSOCIATE LTD

37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74

BANDHU SOCIAL WELFARE SOCIETY BANGLADESH HASTA SHILPA SAMABAYA FEDERATION LTD. BIBI PRODUCTIONS ASIA PLASTIC BANGLADESH LTD. ATAZ BANGLADESH BAE ENGINEERING (BD) LIMITED BARI STUDIO LTD BENGAL JUTE & BURLAP AGENCIES C & K TRADING CO. LTD. ABUL BIRI FACTORY LTD ABUL KHAIR VEGETABLE OIL INDUSTRIES LTD ALO MULTIPURPOSE COMPANY LIMITED ARIF KNITSPIN LTD ASSET DEVELOPMENT & HOLDINGS LTD. MENNONITE CENTRAL COMMITTEE M/S DAIKEI INDUSTRY DATA ANALYSIS & TECHNICAL ASSISTANCE LIMITED DHAKA YMCA FINE LABEL & OFFSET PRINTERS GREEN EXPORT HOUSE JENNYS FOOTWEAR LTD. JENNYS INTERNATIONAL LIMITED JOURNEYMAN ORNATE SERVICES LTD AWANA BANGLADESH AZAD ENGINEERS & TRADES AZIZ & COMPANY LIMITED AZIZ PIPES LTD BANGLA TRAC LIMITED BANGLADESH ELECTRICAL IND BANGLADESH ERECTORS BANGLADESH EXPRESS COMPAN BANGLADESH INTL TUTORIAL BANGLADESH SHIPPING LINES BANGLADESH STEELS LTD BANGLADESH TENNIS FEDERAT BENGAL MARITIME SERVICES BISWAS TEXTILES LTD

75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

BITOPI ADVERTISING LTD. BLL WORKERS PROFIT PARTIC BODY & SPORTS M/S BONANZA FOOD PLUS BOOMERS BORRAK SEAFOOD TRADE INTL BRB CABLE INDUSTRIES LIMITED BRIGHTON HOUSING LTD. BROAD BAND TELECOM BSRM STEELS LIMITED BUILD UP PLASTICS (BD)LTD BUSINESS CORPORATION CITY OVERSEAS LTD COMPUTER SERVICES CONCORD ENGINEERS & CONST CONCORD LANDS LIMITED CONSOLIDATED CHEMICALS CREATIVE COMMUNICATION LIMITED CROSS WORLD LIMITED D.T.OVERSEAS LIMITED DACCA WAREHOUSE LIMITED DARTRANS LOGISTICS (PRIVATE) LIMITED DECON ASSOCIATES DESH GARMENTS LIMITED DESIGN & DECORATION LTD DHAKA EXPATRIATE SERVICES LIMITED DHAKA WAREHOUSE EMPLOYEES PROVIDENT FUND DIMENSIONS LTD DRIK ALOKCHITRA GRANTHAGA DYNAREKA (BANGLADESH) PVT. LTD. EAGLE BOX AND CARTON MFG EAGLE EXPRESS LIMITED. EASTERN OVERSEAS SHIPP LI EBARA CORPORATION ECHO COTTON MILLS LIMITED ECONO IMPEX EDWARD ELECTRICAL ENGINEE EKUSHEY PUBLICATIONS LTD.

113 114 115 116 117 118 119 120

ELECTRO HOUSE EMIRATES SHIPPING LINES BD LTD. ENGINEERING SCIENCE LIMIT ENVOY GARMENTS ESKAYEF BANGLADESH LIMITED ETCETERA BANGLADESH (PVT) EUSUF AND ASSOCIATES. EVERBEST SHIPPING AGENCIE

TOTAL

120

Questionnaire
This research is conducted for academic purposes only. So please do not hesitate to answer. Your information will be kept confidential. Personal Information 1. Customer Name: 2. Gender Male 3. Age: Female 15-25 26-35 36-45 46 and above 4. Income per month:
5000-15000 Taka 16000-25000 Taka 26000-35000 Taka 36000 and above

5. Occupation ________________ 6. Duration of maintaining relationship with the Local Corporate Less than 1 year More than 1 year More than 5 year 10 years and longer

7. Which LC service your company avail the most? Cash management Corporate advisory Structured Finance Securities services Trade finance Client access

8. Would you like to know more about LC services? I am aware of the services and I think it is as much as necessary. I am aware of the services but would like to know more I am not too aware of the services but I am not keen to know more I am not too aware of the services but would like to know more

1 Strongly Agree Disagree

2 Agree

3 Neutral nor Disagree

4 Disagree

5 Strongly Disagree Agree 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

9. Does LC provide promised services? 10. Can LC be depended upon? 11. Does LC maintain records accurately? 12. Does LC keep you informed? 13. Does LC provide prompt services? 14. Does LC readily respond to requests? 15. Can LC RMs be easily accessed? 16. Can LC services be accessed at convenient hours and branches? 17. Is the waiting time expensive? 18. Do LC employees have knowledge to answer clients requests? 19. Can LC employees keep company secrets safe? 20. Do LC employees provide individual attention? 21. Do LC employees understand company needs? 22. Are LC employees consistently polite? 23. Are the rates of LC in accordance with its quality? 24. Are the rates of LC reasonable?

25. How will you rate the overall quality and standard of LC services? Exceptional Consistently High Generally Good Poor

26. How likely are you to complain about LC services to RMs? I often have complaints about the services and share it with the RM I have some complaints and I share it with the RM I have some complaints but never shared it with the RM I do not have any complaints regarding the services being offered

27. Please rate your overall satisfaction level regarding LC services. Extremely satisfied Moderately satisfied Moderately dissatisfied Extremely dissatisfied