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An Interns!ip Report Presented In Partial "ulfillment Of #!e Re$uirements of t!e %egree Bac!elor of Business Administration
&a '()'
INTRODUCTION
Bank as t!e financial services industr is approac!ing full !istorical c cle* Originall t!e +anking s stem operated as full service industr , performing directl or indirectl all financial services* Banks are direct agents to create opportunities for development in a countr and also provide large scale of emplo ment opportunities* Banks mo+ili-e savings and make it advances to investors and + t!is process make profit* As t!e deal wit! pu+lic mone , t!eir form of +usiness is different from ot!ers* Banks must refund pu+lic.s mone w!en t!e demand / $ualit ful services eit!er it makes or not* So, overall operation s stem of +ank s!ould +e evaluated carefull * Banking sector is expanding its !and in different financial events ever da * At t!e same time t!e +anking s stem is +ecoming faster, easier and t!e +anking area is +ecoming wider* As t!e demand for +etter service increases da + da , t!e are coming wit! different innovative ideas / products* In order to survive in t!e competitive field of t!e +anking sector, all +anking organi-ations are looking for +etter service opportunities to provide t!eir fellow clients* As a result, it !as +ecome essential for ever person to !ave some idea on t!e +ank and +anking s stem* #!e evaluation of +anking s stem is a complex process involving interactions +etween t!e environment, internal operations, and external activities* #!e ultimate o+0ective of management is to maximi-e t!e value of +ank.s e$uit s!ares + attaining t!e optimal mix of returns and risks* In t!is respect +ank management needs to develop a compre!ensive plan in order to identif o+0ectives, goals, +udgets and strategies t!at will +e consistent wit! t!e maximi-ation of s!are values* In researc!er.s t!esis paper, researc!er !as selected one private commercial +ank to evaluate t!e +anking s stem in our +anking industr * #!is is NCC Bank L#%* #!is +ank !as a great impact in our econom * NCC Bank L#% !as +een operating t!eir services from )123 as a leasing compan and from )114 as a Bank in our countr t!roug! its )5 +ranc!es*
NCC Bank +ased upon its commenda+le +usiness performance for t!e ear ended '((;, !as meanw!ile declared stock dividend at t!e rate of 4(<* #!e Bank w!ic! started wit! )5 +ranc!es in )114, !as at present (1 8fort one9 +ranc!es and (4 8t!ree9 Boot!s located in prime commercial areas of %!aka, C!ittagong, S l!et, "eni, =!ulna, >essore and Rangpur %istrict ?ead$uarters, out of w!ic! as man as 1# 8seventeen9 are Aut!ori-ed %ealer Branc!es, full e$uipped for dealing in direct foreign exc!ange +usinesses*
)articular* Aut!ori-ed Capital Paid up Capital Reserve fund / ot!er Reserves 7$uit "und %eposits Loans / Advances Investment Import Business 7xport Business Operating Income Operating 7xpenses Operating Profit Profit +efore #ax Profit after #ax Andistri+uted Profit #otal Assets 8excluding contra9 "ixed Assets Num+er of Branc!es
'()( @3(*(( 5(@*2) @5)*)2 )452*11 )5(51*'4 )3'))*)3 ;423*'4 )4'@;*(2 3@@)*53 ''24*4@ )35'*22 @'(*;1 ;;3*3( '23*)5 );*'2 ');51*(' '1@*'' 45
+ork Re*,on*i-ilitie*.
In interns!ip program I work in general +anking site* &ention +elow w!at kind of activit I work in NCC +ank* Account opening 8 Savings ,SSS ,"%R9 #aking C!e$ue+ook Re$uisition*
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Receiving C!e$ue Inward outward Clearing register writing &aintain c!e$ue+ook Register Apdate Account opening "orm
t!e compan to exceed t!e present level of customer satisfaction* ?owever, no suc! researc! !as +een done to understand t!e level of customer satisfaction level of NCC +ank* #!is stud investigates t!e level of customer satisfaction of internet +anking* On assessing t!e level of customer satisfaction, w!at marketing tools, like promotional efforts and ot!er marketing efforts, are necessar to improve t!e customer satisfaction level will +e given as recommendation + t!e researc!er* #!is stud is +ased on primar data, as no suc! previous researc! !as +een done to understand t!e level of customer satisfaction of NCC +ank* It is a kind of researc! and information was gat!ering + $uestionnaire surve * #!e researc!er covered t!e Ceograp!ical +ase of %!aka cit * Apon completion of t!e researc! anal sis, t!e researc!ers understood t!e level of Customer satisfaction of t!e customers* All respondents were moderatel satisfied wit! t!e Bank services* But one service is ver poor w!ic! internet +anking* Researc!er also found t!at all customers are moderatel satisfied* So t!e s!ould tr to develop t!eir ot!er service
%!" /tatement of t0e )ro-lem. in t!e current environment of increased competition wit! rapid market entr of new service concepts and formats, t!e customer satisfaction also presents a c!allenge* NCC Bank is t!reatened to lose t!eir existing market s!are due to t!eir weak internet +anking service w!ic! is commonl offered + ot!er +anks* #!is !as enticed t!em to conduct a surve to find alternative solution to satisf t!eir customers* "or t!at I was assigned to find t!e
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factors 8t!at t!e need to look at or do furt!er researc!9 on related to customer satisfaction*
%!1 )ur,o*e of t0e /tud1 #!e ke purpose of t!is stud is to find t!e factors t!at can ensure customer Satisfaction and NCC Bank.s performance in t!ose factors* #!us identif t!e service need gap and set up proper strateg to improve furt!er to t!e extent t!at customers remain satisfied*
%!% /co,e of t0e /tud1 #!e stud is to +e done onl on NCC +ank customers or account !olders w!o !ave Been using NCC Bank account for more t!an a ear and visit +ank at least once a week* #!e competition customers !ave not +een considered since t!e +ank at t!is point of time feels t!e still need to improve furt!er to +e more competitive* Improving furt!er is onl possi+le w!en t!e can satisf t!eir existing customers make t!em sta wit! t!eir +ank*
%! Limitation* of /tud1 #!e unavaila+ilit of proper data+ase making me una+le to select respondent using a pure simple random sampling* #!e data was collected from onl one +ranc!es of NCC Bank in %!aka* Branc!es outside %!aka were not considered* So an a+solutel actual representation of +ank.s customers is not in t!is report*
%!( Timeline '()' '()' '()' '()' '()' '()' );st "e+ruar '(t! "e+ruar '3t! &arc! )(t! April '(t! April Researc! Proposal Driting Literature Review %ata Collection %ata Anal sis / Interpretation %raft Paper
!" Re2ie3 of Related Literature 4*) Customer Satisfaction Customer satisfaction is defined as an Eevaluation of t!e perceived discrepanc +etween Prior expectations and t!e actual performance of t!e productE 8#se and Dilton, )122, Oliver )1119* Cardial / Doodruff 8)1159 mentioned t!at a customer.s positive or negative attitude toward t!e value of using a +usiness service in a specific situation is customer satisfaction* D!ere as, Fukmir 8'((59 said t!at t!e amount of t!e timing and caring driving customer
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satisfaction in +usiness service* Bennet 8'((;9 stated t!at positive !ig! level of lo alt is not alwa s a result of !ig! level of customer satisfaction* According to &uffatto 8)1139, customer satisfaction makes a +usiness competitive and facilitates its future planning* ?ansemark 8'((;9 said t!at, good relations!ip wit! a customer can create satisfied feelings* And Leonard, >o!nson and Dalker said 8'((59, customer satisfaction drives profita+ilit *
3.2. Customer Services Customer service is a s stem of activities t!at comprises customer support s stems, complaint Processing, speed of complaint processing, ease of reporting complaint and friendliness w!en reporting complaint 8=im, Park and >eong, '((;9* As far as economic factor is concerned, services s!ould satisf t!e needs of t!e customers 8#urel and Serenko, '((5G &elod , )11@9* "or developing satisfaction among customers, t!e +ank service providers need to +e extra careful for t!e customer services t!e provide* Satisfaction of customer is determined + !is evaluation of service provided + a +rand 8Custafsson, >o!nson and Roos, '((39* #!e stud of A!n, ?an and Lee 8'((59 s!ows t!at w!en t!e customers, do not get t!eir complaints considered properl , t!e start looking for ot!er +anks* It !appens +ecause eit!er t!e customer service centers do not !andle t!e complaints or t!e customers are not a+le to address t!em properl "urt!ermore, t!e friendl attitude and courteous +e!avior of t!e service workers at service firms leaves a positive impression on t!e customer w!ic! lead towards customer satisfaction 8Soderlund and Rosengren, '((29* On t!e ot!er !and, if a +ank service provider lacks in providing services to its customers it experiences customer c!urn* 3.3 Interpersonal Relationship According to Am ?awke / #ro ?effernan interpersonal relations!ip increase
commitment from +ot! Customers / suppliers sides w!ic! finall increases trust +etween eac! ot!er rendering +usiness growt!* According to >uan Pa+lo &aicas Lope-, Holanda Polo Redondo and "co* >avier Sese Olivan Customers maintaining a Long6lasting relations!ip
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will +e less predisposed to switc! as t!e are wit! t!e firm for a long time, using t!e service more in dept! and investing in complementar services*
3.4 Internet Banking Introduction and development of e6+anking especiall +egan in )11(s 8Pikkarainen et
al*'((;, p*'';9* A researc! made in A*S in ear )111 stated t!at t!ere !ave +een !uge increases in t!e use of e6+anking in America* 7xamining t!e development of online +anking in t!e world, one can sa t!at t!e 7uropean countries are still t!e leader of t!e use of newest +anking tec!nologies and online +anking 8P un et al, '((',p*@49* According to a stud , less t!an )3 percent of +anks wit! transactional we+sites will reali-e profits directl attri+uta+le to t!ose sites8Courc!anne et al,'((', p*43;9* 76+anking !as affected customers. expectations as +ank.s clients prefer to deal wit! +anks t!at offer en!anced, well6organi-ed, professional and innovative services* Banks !ave to +ring improved $ualit services to t!eir customers to survive in t!is vulnera+le environment 8Appal, '((2,p*5;9* #!ere are man forces t!at !ave an effect on +anks to develop t!eir online +anking services* One of t!em is to reduce t!e cost of t!eir services* Dit! t!e online c!annels, +anks can eliminate costl transactions + reducing t!e num+er of +ranc!es* New p! sical locations !ave !ig! starting up costs and online services and A#& +anking reduces t!e need of new +ranc!es* #!e freedom of no time limitation and t!e +enefit of low6cost services can +e considered t!erefore t!e ke reasons +e!ind t!e development of online +anking services 8Ro+inson #, '(((,p* )(;9* &an firms adapt rapidl to c!anges in internet and tec!nolog * &an companies improve t!eir +usiness efficienc and service $ualit via new applications in t!e internet, and attracting new customers8Nat!, et al*,'((),p*')9
Internet Banking
Customer Satisfa tio!
Inter,er*onal Relation*0i,
/er2ice 6ualit1
3*' Sampling A total of 4( customers to +e interviewed from &ali+ag! +ranc! a s stematic random sampling met!od is to +e used w!ere ever 4rd customer arriving in t!e +ranc! will +e contacted* Among t!ose w!oever fall under t!e criteria of !olding an account for more t!an a ear / visiting t!e +ranc! at least once ever two weeks will +e interviewed*
3*4 &easurement Instrument:Iuestionnaire A close ended definitive scale $uestionnaire !as +een used to collect surve data* #!ere is also a gender and occupation of t!e $uestionnaire* #!ere is two Faria+le %ependent and Independent* #!e $uestions are set in statement format w!ere respondents are given a five point Likert scale to rate t!eir level of agreement* #!e $uestionnaire is designed to assess t!e existing relation +etween dependent / independent varia+les* #!e statements are all set in a positive #one following laddering tec!ni$ue to collect responses on eac! of t!e varia+les* 7ac! varia+le !ave t!eir own constructs* I) to I 4 are constructs for Customer Satisfaction #!en I; to I5 are constructs for customer service *I@and I2 are construct for interpersonal relations!ip I1and$)( are internet +anking*
3*; %ata Collection #!is !as +een done from )(t! April to )3t! April, '()' in &ali+ag! +ranc!* %ata is collected during ; da s full +anking !our for eac! of t!is +ranc!*
&!" Re*ult* #!e data o+tained from t!e researc! are anal -ed t!roug! &s 7xcel average +asis* All result S!own in average* Result r given +elow and also s!ow some c!art*
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"igureJ ) In t!e a+ove mention c!art s!ows t!e gender* In t!e $uestionnaire sample, gender is ;@ percent and female is 34 percent respondent*
"igureJ'
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#!e respondents are 3( percent is service !older* @*); percent is student* ')*;' is +usinessmen* ')*;' is !ousewife* #!e +ar grap! s!ows t!at service !older is !ig!l respondent*
"igureJ4 #!is pie c!art s!ows customer service w!ic! +ank provide* ?ere most of t!e respondent is moderate* Not satisfied is '4percent, satisfied is 4( percent* D!ic! is ver lowK
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"igureJ; In t!e interpersonal relations!ip, customers are !ig!l moderate w!ic! percent is 34* But 4( percent customers are not +elief t!is relation* On t!e ot!er !and )@ percent customer is satisfied wit! interpersonal relation*
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"igureJ3 ?ere t!is grap! s!ows satisfaction la+el of customer a+out internet +anking*54 percent customer are not satisfied t!ere internet +anking t!is s!ows t!at t!e lose t!eir customer onl for internet +anking* On t!e ot!er !and 4( percent are satisfied w!ic! is ver few* @ percent is moderate
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#!" Recommendation NCC +ank Ltd, Banglades! seems to !ave received good level of satisfaction from its existing account !olders* #!e interpersonal relations!ip +etween t!e customers and emplo ees are also !ig!* Bot! of t!ese positivel drive customer satisfaction* ?owever, in t!is researc! context, a weak relations!ip is found +etween internet +anking so, +ank needs to put some effort to maintain t!is service* Customer satisfaction in suc! competitive market situation via ensuring +est possi+le $ualit management in terms of offices internal environment, customer attendant / efficient complaint !andling* On t!e ot!er !and, a ver good sign is customer.s service and interpersonal relations!ip* Since NCC +ank Ltd, cannot control its external environment suc! as competition +e!avior +ut it can at least take a step of its own via communicating t!at c!anging +ank is !assle / undesired w!en customers can !ave some additional +enefits from t!eir existing +ank* #!ese additional +enefits s!ould +e somet!ing to su+stitute competitive lag in terms of internet +anking* Overall, working on customer satisfaction, customer service, interpersonal relations!ip seem important since all t!ese !ave moderate relations!ip wit! Customer satisfaction* Internet +anking, s!ould develop recentl ot!erwise +ank lose t!eir customer*
'!" Conclu*ion In a nuts!ell, NCC +ank Ltd, Banglades! seems to !ave accepta+le level of satisfaction / interpersonal relation wit! its customers* But internet +anking in t!is countr !ave +roug!t in revolutionar c!ange in +anking service at it !as made it muc! faster, easier / !assle free* Looking in to t!e future, t!ere seems to +e no alternative option to su+stitute t!is internet +anking service* 7ven t!oug! satisfaction is moderate, NCC +ank s!ould tr / adopt t!is as earl as possi+le and till its introduction s!ould retain its customers t!roug! offering t!em some additional value added service* ?owever, a separate stud needs to +e conducted on eac! of t!ose varia+les to understand t!em +etter*
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Reference*
Alomaim, N*, #unca, L*&*, Lairi, &* 8'((49* Customer Satisfaction MFirtual aaaa aaaa aaaa Organi-ation* &anagement %ecision* pp* 55@65@(* Bennett, R*, Rundle6#!iele, S* 8'((;9* Customer satisfaction s!ould not +e t!e onl goal* aaaa Journal of Services Marketing* Fol* )2 No* @, pp* 3);63'@* Bemmaor, A*C* 8)1139* Predicting +e!avior from intention6to6+u measuresJ t!e aaaa aaaa parametric case* Journal of Marketing Research* Fol* 4' No* ', pp* )@561)* ?ansemark, C*O*, Al+inson, &* 8'((;9* Customer Satisfaction and RetentionJ #!e aaaa aaaa 7xperiences of Individual 7mplo ees* Managing Service Qualit * Fol* ); No*4, aaaa pp*;(63@ ?ellier, =*P*, Ceursen, &*C*, Carr, A*R*, Rickard, A*>* 8'((49* Customer Repurc!ase aaaa Intention* !uropean Journal of Marketing* Fol* 4@ No* )):)', pp* )@5'6)2((* >ones, A*&*, Su!, >* 8'(((9* #ransaction Specific Satisfaction and Overall SatisfactionJ aaaa An 7mpirical Anal sis* >ournal of Service &arketing* Fol* );, pp* );@6)31* &uffatto, &*, Pani--olo, R* 8)1139* A Process6+ased Fiew for Customer Satisfaction* International Journal of Qualit an" Relia#ilit Management* Fol* )' No* 1, pp* )3;6)51* Fukmir, B*R* 8'((59* Customer Satisfaction. International Journal of $ealth Care. Fol* )1 ?effernan* #, ?awke* A, 8'((59* Interpersonal Linking in lender6customer relations!ip in aaaa t!e Australian +anking sector* International %ournal of #ank marketing* Fol*'; No* aaaa 4, pp );(6)3@ Olivan "*>*S, Redondo H*P, Lope- >*P*&, 8'((59 #!e impact of customer relations!ip aaaa c!aracteristics on customer switc!ing +e!avior* &anaging Service Iualit * Fol* )5 No* 5, pp* =otler, P* / Armstrong, C* 8'()(9, NPrinciples of &arketingO, )4t! ed* New >erse J Prentice ?all* =im, &*=*, Park, &*C*, and >eong, %*?* 8'((;9 N#!e effects of customer satisfaction and switc!ing +arrier on customer lo alt * Communications Aniversit , Husong6gu, ?waam6dong, #ae0on 4(364;2, Sout! =orea*
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Aladwani Adel &* 8'(()9 NOnline +ankingJ a field stud of drivers, development c!allenges, and expectationsO, International >ournal of Information &anagement, Fol ')* Bauer =, Scott 7* ?ein* 8'((59 N#!e effect of !eterogeneous risk on t!e earl adoption of Internet +anking #ec!nologiesO, >ournal of Banking / "inance, Fol 4(* Calisir ", Cigdem Altin Cumusso *8'((29, NInternet +anking versus ot!er +anking c!annelsJ Houng consumers. viewO, International >ournal of Information management volume ') Carlson, >*, "urst, =*, Lang, D*D*, and Nolle, %* 7* 8'(((9 NInternet BankingJ &arket %evelopments and Regulator IssuesO N#!e New 7conom J D!at ?as C!anged, and t!e C!allenges for 7conomic Polic O* Societ of Covernment 7conomists Conference* Das!ington, %C* Courc!ane &, %avid Nickerson , Ric!ard Sullivan* 8'(('9 NInvestment in internet +anking as a real optionJ t!eor and testsO, >ournal of &ultinational "inancial &anagement, Fol )'*
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