CUSTOMER SERVICES, DEPOSIT MOBILIZATION,

MARKETING OF DIFFERENT PRODUCTS & SERVICES

OF AN ISLAMIC BANK & RELATIONSHIP BANKING

PRESENTED BY : DR. M. KAMAL UDDIN JASIM

SENIOR VICE PRESIDENT & HEAD OF BRANCH
HEAD OFFICE COMPLEX BRANCH
ISLAMI BANK BANGLADESH LTD.
 Islamic Banking Products & Services
• Banking products are the various services offered by a bank to
its customers.
• A bank’s job is to provide customers with financial services that help
people better manage their lives.
• As technology advances and competition increases, banks are offering
different types of services to stay current and attract customers.
• The different products in a bank can be broadly classified into:
• Retail Banking.
• Trade Finance.
• Treasury Operations.
Retail Banking and Trade finance operations are conducted at the
branch level while the wholesale banking operations, which cover
treasury operations, are at the head office or a designated branch.
 BROAD CLASSIFICATION OF PRODUCTS
OFFERED BY BANKS

Retail Banking Trade Finance Treasury Operations

• Deposits • Issuing and confirming • Buying and selling of

• Investment of letter of Credit.
• Remittances • Drawing,
• Book-Keeping accepting, discounting,
(maintaining all buying, selling, collecting
accounting records) of bills of
exchange, promissory
• Receiving all kinds of
notes, drafts, bill of
Islamic bonds valuable for
lading and other
safe keeping
securities.
bullion, Foreign
exchange.
• Acquiring,
holding, underwriting and
dealing
in shares, debentures,
etc.
• Purchasing and selling
of Islamic bonds and
securities on behalf of
constituents.
 DEPOSIT PRODUCTS
Current Account NRB Savings Bond
Term Deposit Students Savings
Hajj Account Special Savings (Pension)
Savings Bond Monthly Profit Deposit
Muhor Account Waqf Cash Deposit
Special Notice Account Foreign Currency
Savings Account Farmers Account
Current Account NRB Savings Bond
Term Deposit Students Savings
Hajj Account Special Savings (Pension)
Savings Bond Monthly Profit Deposit
 ADC Products
1. ATM 4. POS
2. IDM 5. Online/Xpress Pay
3. Card 6. SMS Banking
• ATM Card 7. Phone Banking
• Visa Debit Card 8. Internet Banking
• Khidmah Credit Card 9. Payment Gateway
• Hajj Card 10.mCash
• Remittance Card 11.IBBL Call Center
• Travel Card 12. i-Banking
• Salary Card 13. Sheba Ghar
• Business Prepaid 14. e-GP
Card 15. EFT
• Other Card 16. BACH
17. RTGS
 INVESTMENT PRODUCTS
Bai-Murabaha
Bai-Istijrar
Bai-Muajjal
Bai Salam
Istisnana
Bai-As-Sarf
Mudaraba
Musharaka
Hire Purchase Under Shirkatul Melk
 DIFFERENT INVESTMENT SCHEME

House Hold Investment Scheme

Investment Scheme for Doctors
Transport Investment Scheme
Car Investment Scheme
Small Business Investment Scheme
Micro Industries Investment Scheme
Agricultural Implement Investment Scheme
Real Estate Investment Program
Real Estate Investment (Commercial & Working Capital)
Agricultural Investment of IBBL
NRB Entrepreneurs Investment Scheme
Women Entrepreneurs Investment Scheme
RELATIONSHIP BANKING means more service, more data, more time
and thus more expense. Defining what “relationship banking” means helps
bankers determine the cost of the service. Understanding the cost of
delivery then helps management have a clearer understanding of how to
apply this approach. Elements of what a sustainable relationship business
model looks like :-
Strategic Relationship Banker takes the relationship to a higher
level. These bankers not only break away from a transactional
role, but they also relentlessly pursue “strategic business
partner” status with their customers through the execution of
the Optimal Relationship Building principles.

The Relationship Pyramid shown [next slide] is an important

strategic tool used to assess the status of customer relationships
and the quality of the conversation. It is likely that a relationship
banker may be shifting among different levels of the pyramid
over time with the same customer (depending upon such factors
as the customer’s situation, the decision maker, the product,
etc.). However, sales at the top of the pyramid will be more
profitable, will be viewed as contributing more value and will
lead to additional sales throughout every level of the pyramid.0
 Shariah
Banking
Diversified
Better
Product
Line
Service

Vast Quick
Network MOTIVATION Service
FOR
DEPOSITOR

Bank’s Competitive
Stability Rate

IT Problem
Support Solving
 Shariah
Banking
Diversified
Product No Hidden
Line Charge

High
Single Free
Party Consultancy
Exposure MOTIVATION
FOR
INVESTMENT
CLIENT
Bank’s Quick &
Stability Better
Service

No Competitive
Compounding Rate
Bank as
Partner
MEANING OF CUSTOMER [THE KING]
 CUSTOMER SERVICE
Simply defined, customer service is the service and
support you give your customers whether in-person,
online or off. The six pillars of great customer service are
an essential part of your business, so keeping them happy
is vital to the success of your company.
ENSURE THE ELEMINETS OF
CUSTOMER SERVICE
 ROLE OF
CUSTOMER RELATIONSHIP MANAGER
 Polite

Smiling Effective

Smart QUALITIES Efficient

OF
FRONT DESK
OFFICER

Resilient Courteous

Humble Empathetic
DO NOT MISLEAD CUSTOMER
HOW TO MAKE YOUR CLIENTS HAPPY
Communication is the Key

Meet deadline

WOW them

Be consistent

Provide top notch quality

Don’t leave them out of Special Promotions

Show appreciation for referrals

Get to know your clients

Love them and love what you do

Always try to do more

 FIVE REASONS
WHY A CUSTOMER MAY QUIT
 WORDS & PHRASES
THAT DAMAGE CUSTOMER RELATIONSHIP

• I don’t know. • You don’t understand.

• I can’t • You don’t see my point.
• You must/should • Hold on a second.
• You’ll have to • Our policy says
• What’s your problem?• What you need to do is
• Why don’t you…? • That’s not my job.
• I never said… • What you need to do is
• You must/should • What’s your problem?
 WORDS & PHRASES
THAT BUILD CUSTOMER RELATIONSHIP

• Please. • I understand how you feel.

• Thank you. • May I …?
• I can/will… • Could we try …?
• How may I help? • Have you considered …
• I was wrong. • It’s my/our fault.
• You’re right. • What do you think?
• I’m sorry for … • Would you mind?
 ACCORDNG TO RESEARCH
Up to 60% of dissatisfied customer will not return
Dissatisfied customers will tell 8-10 people. 13% will tell 20
people
It costs 10X as much to attract a new customer
Seven of ten complaining customers will do business with
you again if you resolve issue
If you resolve a complaint on the spot, 95% will do business
again
 HOW TO HANDLE DIFFICULT CLIENTS
• Ask closed questions
• Limit the time available for them to
interrupt
• Provide minimal response
Talkative • Smile and be pleasant, but don’t
encourage them
• Wind up – thank them for coming, walk
them to the door but don’t be rude or
dismissive

• Listen carefully & understand the problem

• Empathize in a broad way
• Stay calm and remain polite
• Don’t escalate the problem
Angry •
•
Don’t take it personally, don’t blame others
Propose an action plan and follow it
• Seek support if you are scared, if you can’t agree
on a solution or if the customer asks to see
“whoever’s in charge”
 HOW TO HANDLE DIFFICULT CLIENTS
• Find out what they really want
• Ask them for the options
• Reflect back to them what they’ve said
• Assume control gently
Indecisive • Point out the best course of action
• Be logical
• Confirm a plan of action with them
• Put it in writing

• Establish your credibility

• Ensure you know your product or service
• They will try and catch you out so don’t
guess or tell them something you’re not
Suspicious sure of
• Be careful what you say
• Be polite
• Don’t take it personally, they don’t trust
anyone!
 SHIFTING OF MARKET BEHAVIOR

Consumer behaviors and expectations are shifting in ways

that are forcing banks to both redefine their priorities and
transform their distribution models. To re-establish trust
with customers and secure their loyalty, banks will need
more than just a digital-first approach. As digital offerings
mature, banks must define their value proposition to
encompass both digital innovation and traditional values to
meet their customers’ needs.
There are FIVE ENERGING TRENDS are the elements of
shifting of Market behavior.
 EMERGING TRENDS
Younger Consumers Drawn to Online Services [GAFA Model: Google,
Apple, Facebook and Amazon ]. Big portion of younger generation will
consider purchasing banking services from an online provider, such as
Google or Amazon or e-bay.
Automated Support is Welcome. Banking customers are open to
receiving entirely computer-generated support, provided it can deliver
the tailored and personalized services they need.
Personalization That Stretches Beyond Banking : Consumers demand
more personalized banking advice and want relevant advice and product
information at their fingertips as they go about their daily lives.
A New Route to Trust: As consumers open up to increasingly data-
driven services, personal relationships are no longer the main driver of
trust. The biggest driver of loyalty for banking customers is the ability to
trust their bank in protecting their personal data.
Branches That Add More Value : Banking customers are not yet ready
to forgo the branch. Customers are looking for a branch experience that
blends the physical and digital in a seamless manner.
STRATEGIES TO FACE THE EMERGING TRENDS
Let Customers Define Their Experience : Consumers are seeking
speed and convenience as well as tailored advice, and they want it all
on their own terms. Advances in artificial intelligence and machine
learning technologies are opening the door for banks to provide
effective automated support as an additional route to building
loyalty.
Re-Write Customer Processes for the Digital Era : Banks will need
to establish new customer processes to deliver the digital service
customers want, and to enable effective digital distribution of their
products.
Get API-Enabled : As they seek to multiply their interactions with
customers, banks will need to think about products or services
delivered through application program interfaces (APIs) that can be
accessed and sold outside of the bank’s boundaries, but with the
assurance provided by the bank’s ability to validate the identity and
creditworthiness of all parties involved.
Win the Data Game : Banks will need to access more customer data
to offer more competitive prices and faster, easier services, and to
offer products that are relevant to customers’ financial needs.
Agent Banking Scenario of IBBL up to
31.12.2018:

Date of Inception : 15/07/2017

No. of Agents : 305
Deposit : 307.23 crore
Remittance : 332.91 crore

1/7/19
 Status of
Mobile Financial Services [MFS]
Solution Provider} : Own Build Solution
Carrier : ROBI, AIRTEL, Banglalink, Grameen Phone with
USSD Channel and Others with IVR Channel
Number of Agents : 31371
Registered Customers : 344210
Number of Transactions : 111387
Amount of Transactions : Tk. 13,767,119
(BDT)
Product Name : Inward Foreign Remittance, Cash-In, Cash-Out, P2P,
Salary Disbursement, Utility Bill Payment, Merchant
Payment, Govt. Payment, Top-up, e-Commerce
payment, ATM Withdrawl, etc.

1/7/19
35
36