market evaluation of financial products of standard chartered bank1

8/2/2019 Market Evaluation of Financial Products of Standard Chartered Bank1

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MAJOR PROJECT REPORT ON

MARKET EVALUATION OF FINANCIAL PRODUCTS OF STANDARD

CHARTERED BANK

Maharaja Surajmal Institute

(AFFLIATED TO GURU GOBIND SINGH INDRAPRASTHA NIVERSITY)

C-4c Janakpuri, New Delhi, 110058

PREPARED BY SUBMITTED TO

Vandana Negi PROF. (Dr.) Sunena

ENROLLMENT NO-04221201809 Department of Business

Administration


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CERTIF IC ATE

This is to certify that VANDANA NEGI has completed her Project Report, as a part

of partial fulfillment of B.B.A (B&I) Programme from Maharaja Surajmal

Institute, affiliated to Guru Gobind Singh Indraprastha University, under my

guidance and supervision. She was in constant touch with me and the matter

embodied in this is original and authentic and same recommended for evaluation.

I wish her all the best in her entire future endeavor.

Professor (Dr.) Sunaina

Department of Business Administration

Maharaja Surajmal Institute


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ACKNOWLEDGEMENT

Project Work is never the accomplishment of an individual rather it is an

amalgamation of the efforts, idea and cooperation of a number of entities.

I acknowledge with gratitude and appreciation, my indebtedness to my mentor &

guide Prof. (Dr). Sunaina for allowing me to work on a very intrinsic project namely-

MARKET EVALUATION OF FINANCIAL PRODUCTS OF STANDARD

CHARTERED BANK. I also thank her for the ideas and basic concepts shedelivered and shared with me, as she helped me a lot in accomplishing this project ofmine.

.

VANDANA NEGI

BBA (B&I) VIth semester

04221201809


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TABLE OF CONTENTS

Chapter Particulars Page Nos.

Chapter 1 Introduction

Objectives

Research Methodology

Limitations

Chapter 2 Company Profile

Chapter 3 Analysis And Interpretation

Chapter 4 Conclusions And

Recommendations

BIBLIOGRAPHY

QUESTIONNAIRE

CHAPTER-1


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INTRODUCTION

Introduction

Banking, transactions carried on by any individual or firm engaged in

providing financial services to consumers, businesses, or governmententerprises. In the broadest sense, banking consists of safeguarding and

transfer of funds, lending or facilitating loans, guaranteeing

creditworthiness, and exchange of money. Such institutions as commercial

banks, savings banks, trust companies, finance companies provide these

services, and merchant banks or other institutions engaged in investment

banking. A narrower and more common definition of banking is the


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acceptance, transfer, and, most important, creation of deposits. This

includes such depository institutions as commercial banks, savings and

loan associations, building societies, and mutual savings banks. All

countries subject banking to government regulation and supervision,

normally implemented by central banking authorities. For further

information on central banks and investment banking, see the relevant

articles. The money a bank receives as deposits from both individuals and

large companies becomes a banks liability. The bank receives assets in the

form of the interest it charges on loans made to governments, businesses,

and private individuals. The chart above depicts how this process works.

Interest given on savings accounts, a percentage return on the banks

investments with the money, gives an additional incentive to save. Transfer

of funds can be handled through negotiable instruments, cheques, or direct

transfers performed electronically. Credit cards and account debit cards,

electronic cash tills, computer online banking, and other services provided

by banks extend their usefulness by offering customers additional ways of

gaining access to and using their funds. Automated clearing houses

perform similar services for business customers by handling regular

payments, such as wages, for a company banking with the bank. Longer-

term schemes for providing regular income on savings are often offered

through trust funds or other investment schemes.

Loans to bank customers are drawn on the funds deposited with the bank

and yield interest, which provides the profits for the banking industry, and

the interest on savings accounts. Banks also provide foreign exchangefacilities for individual customers, as well as handling large international

money transfers. Investment banks engage chiefly in financing businesses

and trading in securities.

A BRIEF HISTORY OF STANDARD CHARTERED BANK

The Standard Chartered Group was formed in 1969 through a merger of two

banks: The Standard Bank of British South Africa founded in 1863 and theChartered Bank of India, Australia and China, founded in 1853. Both

companies were keen to capitalise on the huge expansion of trade and to

earn the handsome profits to be made from financing the movement of

goods from Europe to the East and to Africa.


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The Chartered Bank

Founded by James Wilson following the grant of a Royal Charter by

Queen Victoria in 1853.

Chartered opened its first branches in Mumbai (Bombay), Calcutta

and Shanghai in 1858, followed by Hong Kong and Singapore in

1859.

Traditional business was in cotton from Mumbai (Bombay), indigo

and tea from Calcutta, rice in Burma, sugar from Java, tobacco from

Sumatra, hemp in Manila and silk from Yokohama.

Played a major role in the development of trade with the East which

followed the opening of the Suez Canal in 1869 and the extension of

the telegraph to China in 1871.

In 1957 Chartered Bank bought the Eastern Bank together with the

Ionian Bank's Cyprus Branches. This established a presence in theGulf.

The Standard Bank

Founded in the Cape Province of South Africa in 1862 by John

Paterson. Commenced business in Port Elizabeth, South Africa, in

January 1863.

Was prominent in financing the development of the diamond fields of

Kimberley from 1867 and later extended its network further north to

the new town of Johannesburg when gold was discovered there in1885.

Expanded in Southern, Central and Eastern Africa and by 1953 had

600 offices.

In 1965, it merged with the Bank of West Africa expanding its

operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

In 1969, the decision was made by Chartered and by Standard to undergo a

friendly merger. All was going well until 1986, when a hostile takeover bid

was made for the Group by Lloyds Bank of the United Kingdom. When the

bid was defeated, Standard Chartered entered a period of change. Provisions

had to be made against third world debt exposure and loans to corporations

and entrepreneurs who could not meet their commitments. Standard

Chartered began a series of divestments notably in the United States and

South Africa, and also entered into a number of asset sales.


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3. Study the impact of a customer centric approach being followed by the

Bank, and what is its benefit.

4. Compare the services offered by Standard Chartered Bank and the

customers satisfaction level of the same with that of other Banks in the

Private and Government sector, and to access where the Bank has to

improve.

5. Consideration of various promotional and marketing and advertising

strategies of Standard Chartered to the satisfaction among its ultimate

users and consumers.

6. Finally to draw the various conclusion and recommendations on the basis

of the study conducted on specifically taking to consideration the

services, advertising and marketing strategies of the Bank.

Research Methodology

1) Initially raw data collection enables us to see the prevailing situation

and take an action of improvement accordingly. Thus collection ofraw data is indispensable to gather any kind of information for further

analysis and accordingly taking a decision.

Raw data Information


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2) As per the requirements the questionnaire was prepared and a market

survey was done.

Process

1. Gaining knowledge about the product:

Reading about the product was the first step undertaken. This gave not

only in depth knowledge about what is been offered by the bank but

also proved useful while developing the questionnaire.

Steps in the Development of the Survey Instruments

The main instruments required for survey was a well-developed

questionnaire. The questionnaire development took place in a series of

steps as described below:

Research objectives are being transformed

into information objectives.

The Appropriate data collection methods have

been determinedStep 2

Step 3The information required by each objective is

beingdetermined.

Step 4Specific Questions/Scale Measurement format is

developed.

Step 1

The number of information needed is being

determined.Step 6

Step 5Question/Scale Measurements is being

evaluated.


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2. Customer Survey:

The people play an important part as a clear perception of people

about the product can be estimated and known. Studying the needlevels of the people regarding the banking product can be observed. It

was very useful in knowing about the requirements of the people.

3. Referred to brochures and websites of competitors:

To understand the competitors product brochures and websites of

various banks were referred and a competitive analogy of all the rates

and necessary features of the Savings account is been made. The tableis been attached in the Appendix.

The questionnaire and layout is being evaluated.

Step 7

Step 8

The Questionnaire format is being finalized.


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CHAPTER-2

COMPANY

PROFILE

BUSINESS PROFILE

Listed on both the London Stock Exchange and the Hong Kong Stock

Exchange, Standard Chartered PLC is consistently ranked in the top 25

FTSE 100 companies by market capitalisation.

By combining our global capabilities with deep local knowledge, we

develop innovative products and services to meet the diverse and ever-

changing needs of individual, corporate and institutional customers in some

of the world's most exciting and dynamic markets.

Personal Banking

Through our global network of over 1,700 branches and outlets, we offer

personal financial solutions to meet the needs of more than 14 million

customers across Asia, Africa and the Middle East.


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SME Banking

Our SME Banking division offers a wide range of products and services to

help small and medium-sized enterprises manage the demands of a growing

business.

Wholesale Banking

Headquartered in Singapore and London, with on-the-ground expertise that

spans our global network, our Wholesale Banking division provides

corporate and institutional clients with innovative solutions in trade finance,

cash management, securities services, foreign exchange and risk

management, capital raising, and corporate finance.

Islamic Banking

Standard Chartered Saadiq's dedicated Islamic Banking team provides

comprehensive international banking services and a wide range of Shariah

compliant financial products that are based on Islamic values.

Private Banking

Our Private Bank advisors and investment specialists provide customised

solutions to meet the unique needs and aspirations of high net worth clients.

What we stand for

Strategic intent

The world's best international bank

Leading the way in Asia, Africa and the Middle East

Brand promise

Leading by Example to be The Right Partner

Values

Responsive

Trustworthy


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International

Creative

Courageous

Approach

Participation

Focusing on attractive, growing markets where we can leverage our

relationships and expertise

Competitive positioning

Combining global capability, deep local knowledge and creativity tooutperform our competitors

Management Discipline

Continuously improving the way we work, balancing the pursuit of

growth with firm control of costs and risks

Commitment to stakeholders

Customers

Passionate about our customers' success, delighting them with the

quality of our service.

Our People

Helping our people to grow, enabling individuals to make a difference

and teams to win

Communities

Trusted and caring, dedicated to making a difference

Investors


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A distinctive investment delivering outstanding performance and

superior returns

Regulators

Exemplary governance and ethics wherever we are.

Standard Charted Bank a Constitution of :

1. People : Standard Chartered employs 73,000 people in more

than 70 countries and territories worldwide. Our culture is

centred on diversity and inclusion - key strengths that fuel our

success.2. Our board of directors : Our leaders reflect the diversity that

drives Standard Chartered's success and makes us one of the

world's most international banks.

3. Our global team : As we grow and evolve, our commitment

remains the same - to get the best out of the broadest spectrum

of people, making sure that every individual feels valued for the

strengths they bring to Standard Chartered.As a global team, we

represent more than 115 nationalities - our 500 most senior

employees come from over 61 different countries.Our primary

focus is on three strands of diversity - gender, nationality anddisability, with a particular emphasis on visual impairment.

Overall, our male to female employee ratio is roughly 50:50.

16% of our senior managers are women and our aim is to

balance this figure over the next few years.

4. Principles & Values : At Standard Chartered our success is built

on teamwork, partnership and the diversity of our people.At the

heart of our values lie diversity and inclusion. They are a

fundamental part of our culture, and constitute a long-term

priority in our aim to become the world's best internationalbank.Today we employ 73,000 people, representing 115

nationalities, and you'll find 61 nationalities among our 500

most senior leaders. We believe this diversity helps to fuel

creativity and innovation, supporting the development of

exciting new products and services for our customers

worldwide.


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Financial Products offered by Standard Chartered

CURRENT ACCOUNTS : An account opened and operated primarilyby corporate for Commercial use, wherein the number of

transactions are much Higher than a normal savings account.

No interest is paid on these accounts.

ELIGIBILITY

Resident Indians

Sole proprietorship concerns

Partnership Firms Associations/ societies

Public and Pvt. Ltd. companies

HUF

Foreign nationals/ liaison offices (QA 22)

BALANCE REQUIREMENTS

Minimum average quarterly balance of Rs. 50000/-.

Failure to maintain minimum average balance attracts a ledgerfees of Rs. 300 per quarter.

PRODUCT FEATURES

High liquidity

Unlimited transactions

Zero interest

Any branch banking

Different Current Accounts:

Business Plus Current Account


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FREE National Electronic Funds Transfer

FREE Demand Drafts & Pay Orders at our branch locations.

Demand Drafts on over 470 correspondent bank locations at just

0.15% of draft value.

FREE Payable at par chequebooks

FREE Outstation cheque clearing on our branch locations

FREE NetBanking

FREE Phone banking

FREE Anywhere Banking

Doorstep Banking

International Debit card including Gold Debit card

RTGS facilities

The Standard Chartered Banks Business Plus current account is a powerful

banking tool that gives your organization a host of benefits enumerated

below:

FREE Demand Drafts on our branch locations : As a Business

Plus customer, you can now avail of drafts & pay orders payable at

any of our branches up to 75 a quarter.

FREE Payable at par cheques: You can issue cheques payable at

par at any of our branch locations, FREE of cost.

FREE National Electronic Fund Transfers: Now, transfer funds

seamlessly to accounts in over 67 banks and 28000 branches across

India. The funds can be transferred within 24 hours*.

FREE Anywhere Banking facility : You can conduct your

banking transactions from any of our branches spread across thecountry, irrespective of the branch where your account was

opened.

Get your funds faster without any additional cost : Cheques

drawn on any bank at our branch locations are cleared in just 7

days*, Moreover, this service is available to you FREE of charge.


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Drafts on correspondent bank locations : You now have an

opportunity to avail of drafts on over 470 locations, at most just

0.15% of the draft value.

Quick transfer : You can transfer funds between your accounts

with our bank almost instantaneously and FREE!

Doorstep Banking : You can request for cash pick-up and

delivery, cheque pick-up, draft/PO delivery, to/from your home or

office. Just call / fax us your request.

FREE Internet Banking : Access your account any time of the

day from anywhere in the world through our Secured Internet

Banking facility. And do routine banking transactions online.

FREE Phone banking : Access your account from the comfort of

your home / office. You can get account information, request for

drafts, give stop cheque instructions, transfer funds and do much

more with just one phone call. Anytime of the day. Debit Card with aXcessPlus benefits : You can now get access

(upto 4 free transactions per month) to your money through over

20000 VISA ATMs spread across the country. You'll also get all

the special privileges and offers, made available to our Debit Card

customers.

Real Time Gross Settlement facility offered: You will be able to

instantaneously transfer your funds to accounts in other banks

using this facility.

You will need to maintain a minimum average quarterly balance of Rs.

1,00,000 to avail of the facilities of the Enhanced Business Plus 100 Current

Account.

Enhanced Business Plus Current Account (EBP 1000)

FREE National Electronic Funds Transfer

FREE Demand Drafts & Pay Orders at our branch locations FREE Drafts on correspondent bank locations upto Rs. 75 lakhs per

month

FREE Payable at par chequebooks

FREE Outstation cheque clearing on our branch locations

FREE Net Banking

FREE Phone banking


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FREE Anywhere Banking

FREE Doorstep Banking

RTGS facilities

International Debit card including Gold Debit card

Priority Banking program*

No commissions on Travelers Cheques

You will need to maintain a minimum average quarterly balance of

Rs. 10, 00,000 to avail of the facilities of the Enhanced Business Plus 1000

Current Account.

The Standard Chartered Banks Enhanced Business Plus 1000 Current

Account is a powerful banking tool that gives your organization a host of

benefits enumerated below:

FREE Demand Drafts on our branch locations : As an Enhanced

Business Plus customer, you can now avail of drafts & pay orders

payable at any of our Standard Chartered Bank branches.

FREE Drafts on correspondent bank locations: You now have

an opportunity to avail of free drafts drawn on over 470 locations,

up to a limit of Rs. 75 lakhs per month.

FREE Payable at par cheques: You can issue cheques payable at

par at any of our branch locations, free of cost.

FREE National Electronic Fund Transfers: Now, transfer funds

seamlessly to accounts in over 67 banks and 28000 branches across

India. The funds can be transferred within 24 hours*.

FREE Doorstep Banking: You can request for cash pick-up and

delivery, cheque pick-up, Draft/PO delivery, to/from your home or

office. Just call / fax us your request.

FREE Anywhere Banking facility : You can conduct your

banking transactions from any of our branches spread across the

country, irrespective of the branch where your account was

opened.

Get your funds faster without any additional cost : Chequesdrawn on any bank at our branch locations are cleared in just 7

days*, Moreover, this service is available to you FREE of charge.

Quick transfer : You can transfer funds between your accounts

with our bank almost instantaneously and free!


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FREE Net Banking : Access your account any time of the day

from anywhere in the world through our Secured Internet Banking

facility. And do routine banking transactions online.

FREE Phone banking : Access your account from the comfort of

your home / office. You can get account information, request for

drafts, give stop cheque instructions, transfer funds and do much

more with just one phone call. Anytime of the day.

Debit Card with aXcessPlus benefits : You can now get access

(upto 4 free transactions per month) to your money through over

20000 VISA ATMs spread across the country. You'll also get all

the special privileges and offers, made available to our Debit Card

customers.

Real Time Gross Settlement facility offered: You will be able to

instantaneously transfer your funds using this facility.

Priority Banking: You have the opportunity of availing of thebenefits and privileges of the Priority Banking program.

Membership to the Priority banking program is by invitation only.

SAVING ACCOUNT:

An account primarily opened for & operated by individuals , wherein

the number of transactions are few and which give the customer

liquidity , with the facility to earn some interest on the residual

balances.

Purpose and Description :

1. The savings accounts is a transaction account wherein a

deposit is placed with the bank for an unspecified period

of time.

2. The depositor can withdraw the money whenever requiredthrough any of the following means:

Withdrawal slip, cheques, transfer, through an ATM or Debit Card,

standing instructions, remittances or by making purchases made on a

linked Debit Card at merchant establishments.


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Interest Paid :

Interest on the is determined in accordance with directives of

the Reserve Bank of India.

The current rate is 4% .

Interest is calculated on the minimum credit balance between

the close of the business on the 10 th. & the last day of each

calendar month.

Interest is paid on quarterly rests.

Eligibility :

Individuals

Trusts / Societies / Charitable Organisation

HUFs ( for individuals for the sole purpose of savings & notfor the purpose of business )

Resident Indians & Foreign Nationals.

Product Features :

Account can be in Sole name or joint names.

Average Quarterly Balance

Average quarterly balance of Rs.10,000 to be maintained.

Non - maintenance of AQB attracts a ledger fees of Rs.750/- perquarter.

Transaction oriented account : Mode of transaction is through

Cheque books, ATM Card or Debit Card.

Account can be operated at any of our branches across the

country , 365 days a year from 10 A.M -7 P.M.

Saving Account Product Offering :

aXcess Plus Saving Accounts

Super Value Savings Accounts

in one aXcess Plus Account

Corporate Executive Account


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aXcess Plus Saving Account

The power of accessing your account . Anywhere , Anytime.

A power packed savings account , which is an innovative & convenient

solution for all banking needs of the customer . It comes with a

globally valid ATM cum debit card , which allows one to access

money from any banks ATMs , that has a VISA ELECTRON sign.

Thus, in addition to Standard Chartered bank ATMs the customer has

a power of accessing his account from the ATMs of other banks as

well . In addition , the Debit Card can even be used to make purchases

anywhere in India & abroad from outlets that display the VISA

ELECTRON sign , which includes over 25,000 outlets in India & over

10 million outlets worldwide . It is even accompanied by special offers

& discounts that help the customer get more from his money.

ATM-cum-Debit Card

Product: Deposits access card which provides ATM access and

purchase functionality at merchant outlets. The caption is Buy-

now-pay-now product.

Positioning: Packaged into aXcess Plus savings account to

provide unparalleled account access.

Charges Associated:

Annual charge of Rs 100

Over and above four free transactions from a competitor bank

ATM, a charge of Rs 50/transaction would be levied.

In case of non-maintenance of average quarterly balance in the

account, every transaction from a different bank ATM would

attract charges of Rs 50/ transaction.

Key Features: Visa Electron Card.

Key Competition: HDFC Bank, ICICI Bank, Citibank and HSBC.

Features:

Deposit access card : Provides access to the account through

ATMs and through purchase at merchant outlets.

Amount withdrawn or the purchase amount is directly debited to

the account.


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Visa Electron franchise.

Globally valid card.

Accepted at over 25000 merchant outlets in India and at over 10

million outlets worldwide.

Accepted at over 2400 ATMs in India and at over 6,50,000

ATMs worldwide.

Works as a fully functional ATM card at the banks own

ATMs.

Comes with a lost card insurance of Rs 50,000

The goods purchased through the Debit card are automatically

protected against theft or fire upto the limit of Rs 15,000.

Super Value Savings Account

A savings account where the Average Quarterly Balance to be

maintained is Rs 50,000 and a whole lot of value added services are

offered free of cost which otherwise would be charged in case of a

normal aXcess plus savings account.

Product: Upgrade savings account.

Positioning : a savings account that gives you more value for

your money.

Average quarterly balance : Rs 50,000

Key Features : Free debit card, basket of free services and

discounts.

Target Customers : customers who wish to upgrade from a basic

savings account and enjoy convenience banking.

Key Competition : Citibank and ABN-AMRO

KEY FEATURES

Free Debit Card.

Free Demand Drafts/ Pay Orders

Free ATM- cum-Debit Card

Free cash delivery

Free Draft delivery

Free Payable at par cheques


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Free FIRCs

Free investment advisory services

Free standing instructions

Free remittances

All other features and benefits of the aXcess Plus saving account

Free accidental policy of Rs.2.5 Lakhs

Documentation requirements for opening a Savings Account

with the bank

The following documents are required to open an account:

1. Duly completed account opening form

2. A Signature card for each of the applicants.

3. A photograph of each of the applicants with a signature on thereverse.

4. Duly filled in nomination form DA1 (wherever applicable).

5. Debit Card Photo/Picture Card application, if applicable(with

photograph of the applicant)

6. An introduction is always required for the applicant/s.

7. Documents for Room Service- Sign up form, Indemnity form,

Resolution to open the account and transact through Room

Service.

Any combination of the following documents confirming the Name ,

Signature and Address on the application form is valid:

Document Identity Signature Address

Passport

Driving License

PAN Card No

Ration Card(applicant

is not he mukhiya)

No No

Govt or Defence ID


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Card(may vary from

card to card)

Our People Helping our people

to grow, enablingindividuals to make

a difference and

teams to win

Communities Trusted

andcaring,

dedicated

to making

a

difference

Investors A distinctive

investment

delivering

outstanding

performanceand superior

returns

Regulator

Exemplary governance

and ethics wherever

we are

Self cheque(min

amount Rs 1000)

No No

Bankers Verification

of Signature

No No No

Investment Services offered By Standard Charted

Standard Charted Bank, using over 150 yrs of expertise, promises you to

guide you through the world of exciting new investment opportunities in

India and overseas.


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From shortest term deployment of funds to planning your retirement, w

pledge to got the extra mile to ensure that you reach your chosen financial

goals.

Standard Charted plus Bajaj Alliance. Dealing in 4-5 products.

Product with insurance cover.

Investment products (saving a/cs plus insurance).

Investment plans plus Insurance Covers.

Young Care Plan :

1. 100% credit.

2. 1st year 60% charges and 40% investment.

3. 50 thousand investment per year.

4. Insurance cover of 5 lakhs.

5. Time period 10yrs ( 3 yrs compulsory).

6. Customer is going to pay upto 3 yrs if died.

7. If alien, 10 yrs premium of 50 k.

8. Covers inflation rate every year.

9. Premium * max = paying capacity. , *min = 20 k.

10.Mode of payment annually.

New Unit Gain Plus : Flexible Investments were never so easy.

1. Guaranteed Life Cover

2. Partial and full withdrawals after 3 years.

3. 3 years mandatory.

4. 3 terms 15, 20, 25.

5. Age of maturity. *max = 65, * min = 40.

6. Return Allocation = 45%

7. 100% - 200% credit.

8. Current return 30- 40%

9. Not less than 18-20% return.

Century Plus Plan :


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1. Take 10 yrs compulsory.

2. Allocation 98%.

3. 25% credit.

4. Very simple plan.

5. Minimum 50 k premium.

Future Secure Plan :

1. Minimum term 5 yrs.

2. Age Limit. * min = 18, *max = 65.

3. Pension to wife after death of husband.

4. 10 lakh growth.

5. 1/3 total cash given , rest amount in pension.

New Secure First : An investment plan which offers double

advantage with flexibility.

1. This flexible unit linked life insurance plan provides you

protection and participation in market-linked returns.

2. Double benefit of sum assured + fund value in case of demise.

3. Choice of 5 investment options, 3 free switches and premium

redirection option.

Bajaj Allianz Care First : A medical insurance plan that allows

you to renew till the age of 65 yrs. Premium guaranteed for the

length of each policy term of 3 yrs.

1. Generoushospital cover upto 7 lakhs.

2. Cashless Treatment available across over 2000 leading

hospitals in over 200 towns across India.

3. Specific day care treatments requiring less than 24 hrs.

Multiple Delivery Channels

Automatic Teller Machine (ATM) :


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An ATM is generally a machine that can deliver cash to the

customers to the demand after authentication. However, nowadays we

have ATMs that are used to vend different FMCG products also. An

ATM does the basic function of a banks branch , i.e. , delivering

money on demand. Hence setting of newer branches is not required

thereby significantly lowering infrastructure costs. These keys also

hold the keys to future operational efficiency.

Net Banking :

Net banking means carrying out banking transactions via the

internet. Thus the need for a branch is completely eliminated by the

technology. Also this helps in serving the customer better and

tailoring products better suited for the customer.

A customer can view his accounting details, transaction history,order drafts, electronically make payments, transfer funds and

electronically communicate with the bank through the Internet for

which he may have wanted to visit the bank branch. Net banking

helps a bank spread its reach to the entire world at afraction of the

cost.

Phone Banking :

This means carrying out of the banking transactions through

telephone. A customer can call up the banks helpline or phone

banking number to conduct transactions like transfer of funds, making

payments, checking of account balance, ordering cheques, etc. This

also eliminates customer of the need to visit the bank branch.

Mobile Banking :

Banks can now help a customer conduct certain transactions

through the mobile phones with the help of technologies like WAP,

SMS, etc. This helps the banks to combine the Internet and thetelephone and leverage it to cut costs and at the same time provide its

customer the convenience.

The Importance of Choosing a Correct Distribution Channel

The promise of lower transaction costs, increased sales

productivity, and more convenient service has lured banks into setting


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up new delivery channels. Earlier, vast brick and mortar branch

network has been considered as an inherent advantage of established

banks and new entrants were at huge disadvantage vis--vis the

established players in terms of customer reach.

The foundation for creating such delivery channels is superior

insights into customer behavior. These can come in many forms, but

at their most basic they entail understanding customer needs for the

delivery of different products, how these needs vary by customer

types ( including small businesses), current customer behaviour, and

customer profitability.

The steps to be followed in making a new distribution channel

successful :

Understand customers current channel/transaction behaviour.

Use sophisticated experimental customer research to assess theeconomic impact of tactics designed to change that behavior.

Design non-branch channels to emphasize personalized

interaction to counteract decreased loyalty due to using artificial

intelligence.

Strategic Alliances entered by Standard Charted

Bank:

National ATM Alliance

The Institute for Development and Research in Banking

Technology (IDRBT), a group established by the RBI in 1996 has

planned to set up a national switch to hook up all of the countrys

10000 odd ATMs.

The idea of established ATM interconnectivity through a national

switch has been approved by the information chiefs of various banks.

Cashnet

Its an alliance between Citibank, IDBI, SCB and UTI bank. This is

the countrys first independent shared ATM network.


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Cashnet will give access to more than 1300 ATMs for more than 6

million debit and credit cardholders of the member banks.

Standard Charted Bank and Bharat Petroleum Corporation of

India

They have entered into an alliance to launch a globally valid co-

branded debit card, smart fill in association with Visa international.

Smartfills functions as a debit -cum- ATM card, providing

customers online access to their accounts while they shop or withdraw

cash.

Standard Charted Bank and Allianz Bajaj Life Insurance

Company

The Standard Charted Group has entered into an alliance with

Allianz Bajaj Life Insurance Company to market and distribute the

latters insurance products.

Standard Charted Bank and REDIFF.com

They have entered into an alliance to provide online and offline

banking and related services to the Indian customer.

The alliance will enable information on the entire range of the

banks customer banking products to be made available to the 6.4

million online customers of Rediff.com

Standard Charted and Department of Post

Under the alliance, India post will market credit cards and other consumer

banking products of Standard Chartered Bank through Data Post. While the

partnership will enable Standard Chartered to leverage the extensive national

network of post offices to distribute and market its products, the post officeswill also be the payment collection points for the bank's credit card

customers. The bank will also utilise Speed Post extensively to send its

credit cards to customers.

CHAPTER-3

ANALYSIS & INTERPRETATION


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THE RESULTS OF A SURVEY WHICH WAS CONDUCTED ON 50

RESPONDENTS HAVING SAVING ACCOUNTS IN STANDARD

CHARTERED BANK IS AS FOLLOWED

DURATION WITH BANK

The study of 50 Standard Chartered Bank respondents consisted of a

majority of customers who had been with the Bank for a reasonable amount

of time. This is good as these customers have had the opportunity to

properly access the service level of the Bank, and can compare their

experiences of Standard Chartered Bank with banks they have previously

and are currently dealing with.

Out of the total respondents only 3% have been with the Bank for less than 6

months, the rest 97% have had the opportunity to know about the strengthsand weaknesses of the Bank.

Another inference that we can draw from this study is that couple of years

the Bank has been actively acquiring new customers as from the survey we

can see that about 80% of the customers have opened their accounts during

the past two years. The reason for this could be that during the past two

years the Bank has been able to convince many prospective customers about

the superior service it is able to offer in comparison to competing Banks.

Another reason could be that the customer base of the Bank has increased

due to sheer word of mouth of the Banks millions of satisfied customers.

REASON FOR CHOOSING BANK

The Bank is always interested to know what was that one reason that

prompted the customer to open an account with the Bank even though he is

flooded with very attractive options from the competing Banks.

If the Bank could get to know of that very compelling factor that convinced

the customer to open the account then the Bank could use this in its favor to

attract more customers.

From the study conducted the factor which has come out strongest in thisregards is the Other Reasons getting 44% of the responses , going deeper

into this response by asking the respondent what is the factor they include in

this Other Reasons is that most people are not the deciding factor when they

open a saving account, this is done so by their employers. The customers

salary accounts are created by the companies in which they work.


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A very important inference that can be drawn from this is that Standard

Chartered Bank should be active in maintaining close links with the

corporate sector, this would help the Bank get very profitable Corporate

Accounts in addition to the Saving Accounts..

Closely following the Other Reasons option was that 34% of the

respondents opened their account with the Bank because Standard Chartered

Bank was Recommend by Family/Friends. This is a very important finding

as the existing customers of the Bank have been recommending the Bank to

their acquaintances after their good experiences with the Bank.

But this could also turn as an disadvantage to the Bank as if there are some

dissatisfied customer he might dissuade a prospective account holder, to

deal with this problem the bank should keep up with its good service and

continue to make its Account holders satisfied with its consistently good

services and products it offers.The next important factor while choosing a Bank is the Distance the Bank

is located from the Office/Residence of the Customer, 16% of the

respondents felt this was the most important factor.

This is an area of concern for the Bank as Standard Chartered Bank has only

13 Branches which are located in Delhi apart from this the All India figure

for number of Branches of Standard Chartered Bank is 57. This figure is not

very impressive when compared to Standard Chartered Banks rivals ICICI

Bank and HDFC Bank which have a massive Delhi and All India branch

presence.

The Bank must increase their Branch Presence in Especially the Metro cities

which the Bank is targeting. Apart from this an effort should be made to

increase Branch presence in the potential profitable parts of the country.

The forth most important factor which influences the customer to open an

Account is the Reputation/Brand Name of Standard Chartered Bank., 6%

of the respondents choose this option. Standard Chartered Bank is an

Internationally Recognized Name when it comes to Banking, it has a very

strong Reputation and has tremendous Goodwill in all sections of the

society.

The Bank should be careful that their Goodwill is maintained for the years tocome, this would bring in much more business for the Bank..

The fifth factor which did not receive any responses was Advertisement

The respondents did not feel that Advertisements prompted them to open

accounts with the Bank. This does not undermine the importance of


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Advertisements when it comes to informing the customers of the new

products and offerings the Bank is providing.

OTHER ACCOUNTS HELD

Holding Multiple Saving Accounts is a very common practice today, it

would be highly rare to find a person who holds only a single Account with

a particular Bank. It is common for people to hold two or three accounts in

their name. Multiple Accounts held by customers give them the opportunity

to compare the services offered by different Banks.

In our study we found the Bank whose Account was held by most number of

customers in addition to Standard Chartered Bank was ICICI Bankwith 12

respondents this was followed by HDFC Bank.Banks like ICICI Bank and HDFC Bank pose a serious threat to Standard

Chartered Bank when it comes to Saving Accounts simply for the reason

that these Banks have been successful in creating a vast network of Branches

and ATM all over the country.

In the Other Banks category it included Government and Private/Foreign

Banks. In the Government Banks there were Bank of Baroda, Punjab

National Bank, Central Bank of India. The Banks in the private sector

included CITIBANK, ABN Amro,HSBC,etc.

The one Bank in the Government sector which got a reasonable number of

responses was State Bank of India (SBI), SBI is the largest commercial

Bank in India, it has the largest branch network amongst all Banks be it in

the Public or Private sector. But due to little attention given on customer

service as is the case with most public sector undertakings, its customers are

shifting to Banks in Private Sector like Standard Chartered Bank.

MOST FREQUENT POINT OF INTERACTION WITH THE BANK

The answer to the Question that what would be the point of interaction with

a Bank would have a few years ago have been the Branch. But today this is

not the obvious answer. The Account holders have the option to use the

ATM machines to withdraw or deposit money, or do various other

transactions, he could also use the facility of Phone Banking or Internet

Banking from the comfort of his home or office. Apart from this some


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Banks Including Standard Chartered Bank are provided with facility of Door

StepBanking where the customer can even deposit or withdraw cash without

ever having to leave his home.

The Banks are very interested to know the most popular Point of

Interaction with the Bank as if the Bank is lacking in one of these steps can

be taken to make the situation better.

From the study we can see more than half (more than 50%) of the total

respondents feel that they interact most with the Bank with the help of

ATM. Banks prefer if its Account holders use the ATM machines to do

transaction rather than coming to the Branch as the cost per transaction is

lower when using the ATM machine than using the branch.

Hence the importance of ATM cannot be overstated.

Account holders of Standard Chartered Bank Saving Account having Visa

Electron Debit Card can access other Banks ATM machines four times per

month for free, after that the Account holder has to pay Rs. 50 per

transaction. But holders of ATM cards cannot access machines belonging to

other Banks.

The number of ATM machines installed by Standard Chartered Bank is 35

in Delhi and the All India tally is 246 machines. When this figure is

compared to ICICI Bank which has thrice the number of machines in Delhi

or HDFC Bank which has nearly twice the number of machines in Delhi,

this is worrying for Standard Chartered Bank.

Apart from the above two Banks State Bank of India, UTI Bank have a very

intensive network of ATM machines all over the country.

The Second most popular point of interaction that arises from the study is

the Branch with 32% of the respondents favoring this option. Standard

Chartered Bank is unique in an aspect that it follows the Any Branch

Banking wherein the Account holder can use any of the Banks 246

Branches all over the country.

An aspect that customers really appreciate is the 24 hour Branches and the365 Days Branches of Standard Chartered Bank. The 24 Hour Branch of

Standard Chartered Bank is located at Inner Circle Connaught Place New

Delhi apart from these Branches in Mumbai and other cities in India.

Standard Chartered Bank is the only Bank which has the facility of a 24

Hour Branch. As for a 365 Day Branch the only Bank having this facility

apart from Standard Chartered Bank is ABN Amro Bank.


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Standard Chartered Bank customers have the advantage of being able to do

Cash Transactions from Non-Branch, this facility is provided by a select

few Banks and popular Banks like ICICI Bank and HDFC Bank do not

provide this service.

Standard Chartered Bank should open more Branches in Delhi as Branch

Banking is the second most Frequent Point of Interaction. There is a need to

increase its Branch presence in other Cities around India if Standard

Chartered Bank wants to be known as a household name in the country.

The third most Frequent Point of Interaction is Phone Banking with 11.5%

of the respondents favoring this medium. Phone Banking is one of the new

age Banking techniques. It is in its infancy in India and people have not

taken to it as is the case in other Developed Countries in the World.

In the study it was seen that customers have mixed feeling when it comes to

Phone Banking as sometimes they do not find it as an effective alternate totraditional forms of Banking.

The forth most Frequent Point of Interaction with the Bank is Internet

Banking with 4% of the respondents favoring this medium. Internet

Banking is the most modern means of Banking available to the customers

but due to the general perception that this medium is not safe it is not used

by many people.

In our study only 60% of the total respondents have atleast once used

Internet Banking.

The two option which were not favored by any respondents as the most

Frequent Point of Interaction are Drop Box Facility and Door Step

Banking.

Accounts holders admit having used the Drop Box facility and find it quite a

convenience but do not consider it as the most frequent point of interaction.

When it comes to Door Step Banking very few Account Holders admit

having used the service. This is due to two reasons ,first, people dont

consider it as the most safe means of Banking and second, transactions done

through this medium cost the customers.

TIMES ATM USED PER WEEK


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The study has confirmed the fact that ATM is a very popular means of

Banking today , in fact it is the Most Frequent Point of Interaction with the

Bank. Banks prefer the use of ATM as the cost per transaction is quite low

as compared to Branch Banking.

Banks are always interested to know the frequency with which the ATM

machines are used per month. From our study we infer that most Account

holders (50% of the respondents) use the ATM Less than 2 times per week,

this is followed by 40% of the respondents who use the facility between 2 to

4 times per week. Only 10% of the total respondents use the ATM facility

and more than 4 times per week.

This finding has an important implication, even though Standard Chartered

Bank does not have a very large network of ATM machines and Account

holders can access ATM machines of other Banks (4 free transactions

only).Most Account holders would not face much problem as even if they

are not able to find a Standard Chartered Bank ATM machine they can useother Bank ATM without fearing that they would have to pay Rs. 50 per

transaction fee.

OVERALL SATISFACTION LEVEL

Overall Satisfaction level of the customer is a very important parameter

which is valued by all especially service providers like Banks. It includes

everything and encompasses total experience of the Account holder with the

Bank. It shows the general perception of the account holder. If people who

have had experience in dealing with the Bank have a high Overall

Satisfaction Level they would definitely Recommend the Bank to their

Acquaintances.

Any service provider would want their customers to have a high Overall

Satisfaction level. Standard Chartered Bank has scored very well in this

regard.

The most important thing is that no respondent has complained that they

are overall dissatisfied with the bank. This is a very important finding

because this shows the effort Standard Chartered Bank puts in providing

their customers a superior service has not gone waste.

More than half of the total respondents (52%) say that they are somewhat

satisfied with the overall service of the Bank. About 30% of the total

respondents say that they are Very Satisfied with their Overall Experience

with the Bank.


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Hence about 82% of the Respondents are Satisfied with their Overall

Experience with the Bank.

There is another category of Respondents (20% of total) who say that they

are neither satisfied nor dissatisfied with their Overall Experience with the

Bank. This is a worrying aspect and the Bank should pay more attention to

these segment of Account holders.

The study is showing a very good Overall Satisfaction Level by the

Account holders.

SATISFACTION LEVEL WITH NUMBER OF BRANCHES

Standard Chartered Bank has 57 Branches all over India, and in Delhi alone

it has 13 Branches.

From the study we can see that about 40% of the total respondent has said

that they are somewhat satisfied with the number of Branches of StandardChartered Bank, and only 8% of the total respondents have said they are

very satisfied with number of Branches.

There is a large portion of respondent (32%) who are neither satisfied nor

dissatisfied with number of Standard Chartered Bank Branches whereas 10%

of the respondentsare somewhat dissatisfied.

A comparison of the different Banks with number of Branches each has

is given below-

BANK NO. OF BRANCHES

(INDIA)

NO. OF BRANCHES

(DELHI)

Standard Chartered

Bank

83 13

ICICI Bank 450 33HDFC Bank 201 19

IDBI 65 9

CITIBANK 126 9

HSBC 28 3

AMN Amro 9 3


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UTI 70 -

GTB 91 5

From the above table we can see that ICICI Bank is the clear winner when it

comes to number of Branches in Delhi and on an All India basis, following itis HDFC Bank. CITIBANK is next when it comes to All India figure but it

does not have many Branches in Delhi.

If we look at the figures from strictly Delhi point of view then we can infer

Standard Chartered Bank has put in a lot of effort on Delhi when number of

Branches is concerned.. Nearly 23% of the total Branches of Standard

Chartered Bank are located in Delhi.

The corresponding figure for ICICI Bank is 8.25% , for HDFC Bank is

9.45% , CITIBANK is 7.14%.

The reason for this may be the fact that Standard Chartered Bank is a Bank

which wants to cater to niche customers who are willing to maintain acomparatively higher balance in their accounts as compared to account

holders of other banks. Therefore Standard Chartered Bank is concentrating

on Metro cities like Delhi.

SATISFACTION LEVEL WITH BANKING HOURS (10 am to 7 pm)

From the study of Standard Chartered Bank Account holders we have been

able to infer that Branch Banking is the second most Frequent Point of

Interaction with the Bank. The Average Banking Hours is a very important

aspect associated with any Bank. In todays fast paced life where people whohold Accounts with the Bank are busy working it is important that they can

find a way to visit the Bank without having to miss out on work.

The Average Banking Hours of Standard Chartered Bank is from 10am to

7pm , the Bank is open to the public for nine hours. These timings are

convenient for Especially those Account holders who are working, these

people can visit the Bank after their Office finishes.

Apart from the Average Banking Hours Standard Chartered Bank offers to

its Account holders 24 Hour Branch , 365 Days Branch and the facility of

Sunday Banking.Standard Chartered Bank is the only Bank which offers a 24 Hour Branch in

India, this is a big boon for people who cannot take the time out to visit the

Bank during the normal working hours and is also very handy during

emergencies.


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The 365 Day Branch of Standard Chartered Bank is also unique and the only

other Bank offering this service is ABN Amro , this Branch is open

regardless of the fact that it is a Sunday or a public holiday.

Sunday Banking is very useful for people who are busy throughout the week

and the only day when they find the time is Sunday. Other Banks offering

this service apart from Standard Chartered Bank are ABN Amro and

CITIBANK.

From the analysis of the data that has been collected from Standard

Chartered Bank Account holders we can see that majority of the respondents

are satisfied with the Average Banking Hours.

The respondents who are Somewhat Satisfied with the Banking Hours

consists of 44% of the total , while 28% of the total respondents studied say

that they are Very Satisfied. In all 72% of the total respondents are Satisfied

with the Banking Hours of Standard Chartered Bank.

The respondents who are Neither Satisfied nor Dissatisfied consist of 20% of

total number studied , while 8% of the respondents are Somewhat

Dissatisfied.

SATISFACTION LEVEL WITH PHONE BANKING

The concept of Banking by Phone is Quite new in India , but to its credit it

has become Quite popular in a short span of time. This service is available to

customers of all Private/Foreign Banks and some Indian Government Banks

also provide their Account holders with this service.

With the help of phone Banking Account holders are able to do a number of

transactions without having to leave ones home.

But despite these benefits that accrue from Phone Banking there is the aspect

of impersonality that is associated with this medium. During the study we

have seen that Account holders often complain that the Phone Banking

Executives are not able to solve their problems effectively. There have been

instances when Phone Banking Executives have behaved rudely with the

Account holders.The Account holders feel that even though Phone Banking is useful in

certain situations but is not a very effective way to do Banking as there is no

face to face interaction.

More than half of the respondents (52% of the total respondents)

interviewed felt that they were Satisfied with the Phone Banking service


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offered by Standard Chartered Bank , while 28% of the total respondents felt

that they were Neither Satisfied nor Dissatisfied with Phone Banking.

Out of the Account holders Satisfied with Phone Banking 40% were

somewhat satisfied and 12% were Very Satisfied.

SATISFACTION LEVEL WITH CORRESPONDENCE FROM BANK

REACHING IN TIME

The Bank has to often communicate with the Account holders regarding

many aspects like informing them of the balance in accounts, informing

about new offers and products, delivering important passwords and personal

identification numbers, etc.

The information that is sent to the Account holders through this medium is

very important and if the Bank is not able to maintain a satisfactorily

standard, it would adversely affect the image of the Bank in the minds of thecustomers.

The results from the study shows a worrying aspects , More than two-third

of the total respondents (78%) were in someway or the other Dissatisfied

with the Bank in regards to correspondence from Bank reaching in time. The

percentage of respondents who were Very Dissatisfied were 34% of the

total, and 44% of the respondents were Somewhat Dissatisfied.

The respondents who were Somewhat Satisfied were 22% of the total

number of respondents.

No one was Very Satisfied with this service.

WOULD CUSTOMER RECOMMEND THE BANK TO

ACQUAINTANCES ?

Standard Chartered Bank like any other Bank is always on the lookout for

people to open Accounts with the Bank , this would increase the deposit

base of the Bank. The existing Account holders of the Bank can convince a

lot of people they know to open Accounts with the Bank.

Account holders of the Bank can by their Word of Mouth publicity convince

a lot of people to open Accounts with the Bank. In the earlier part of thestudy when the Reason for Opening A Saving Account with Standard

Chartered Bank was studied Recommended by Family/Friends came out

to be the second strongest reason. Hence now it is imperative to find out

whether the Existing account holders of the Bank would recommend the

Bank to their Acquaintances.


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The results are Quite encouraging for Standard Chartered Bank , About

three- forth of the total respondents (74%) said they would Recommend

the Bank to people they know , while 26% felt they would not

recommend the Bankas they were not satisfied with the services offered

by Standard Chartered Bank.

The above finding shows that most of the respondents are satisfied by the

services offered by the Bank , but the Bank should improve their services

especially for the segment representing one-third of the respondents so that

they can also change their view regarding this subject.

Having dissatisfied customers is very dangerous as there is always a Risk

that these customers might shift to one of Standard Chartered Banks

competitors , or they might discourage one of the prospective customer from

opening an Account with the Bank.

THE RESULTS OF A GENERAL SURVEY WHICH WAS

CONDUCTED ON 105 RESPONDENTS BELONGING TO 10

DIFFERENT BANKS IS AS FOLLOWS:-

BANKS STUDIED


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This study involved mainly Banks operating in the Private Sector, there are

some Banks from the Public Sector but these are at a relatively lower

proportion.

The Private Bank include both Indian and Foreign Banks , the Indian Banks

included ICICI Bank , HDFC Bank While the Foreign Banks apart from

Standard Chartered Bank studied included CITIBANK , HSBC , ABN

Amro.The Government Banks included most noticeably State Bank of India

(Indias Oldest and largest commercial Bank) , Bank of Baroda , apart from

other Banks.

ATM FACILITY PROVIDED BY BANK ?

ATM Banking has today totally Revolutionized Banking in India, it has

completely changed the image one used to associate with Banking at one

time . The Account holders no longer have to wait in queues so that can

Withdraw/Deposit their own money , today simply by inserting the Card in

the machine the Account holder can do a variety of transactions any time ,

any place.

The respondents in the study included Account holders from both the Private

and Government Banks , as far as the Private Banks are concerned 100% of

BANKS STUDIED

20 20

10 10 10 10 10

5 5 5

0

5

10

15

20

25

ICICIB

ank

HDFC

Bank

CITIB

ANK

ABN

Amro

HSB

CIDBI

SBI

PNB

Andhra

Bank

BOB


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the respondents were using the ATM facility provided by the Bank using

either the ATM card or Debit Card.

But from the respondents in the Government sector Banks not all the

Account holders were using the ATM facility. In some cases the respondents

interested in the ATM facility but could not avail the service because the

Government Banks had delayed the delivery of cards even after the Account

holder had applied for the same. Other Account holders preferred the

traditional method of Banking rather than this new medium.

Overall 86% of the total respondents studied use the ATM facility

provided by the Bank, while 14% of the respondents did not use ATM

facility. This entire 14% segment represented account holders from the

Government Sector Banks.

IS MONEY MORE SAFE IN A NATIONALIZED BANK RATHERTHAN A PRIVATE BANK ?

The safety of Funds that are invested in a Bank is of primarily importance in

every depositors mind. Ever since Private and Foreign Banks came on in the

Indian scene there has lingered in the minds of potential depositors whether

the money they invest in these Banks would be returned to them . This could

have been the reason that even after providing much superior service as

compared to Government Banks the deposit base of these banks have not

reached their potential.

Hence to judge the Market Potential of Saving Accounts it was very

important to access whether potential and current clients have the feeling

that Private sector Banks are not as safe as their Government counterparts.

The results from the respondents Questioned is extremely promising as out

of the total sample size only 7% felt that private Banks were not as safe

as their Government counterparts.

The largest chunk of respondents were who said they Disagreed to the

statement that Private Banks were not as safe as the Government Banks

representing 46% of the respondents. Another33% of the respondents feltthat they Strongly Disagreed to the above and 20% of the respondents

Neither Agreed nor Disagreed to the above statement.

From the above implication it is very clear that today the public has come to

trust the Private sector Banks , this can also be seen from the fact that the


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deposit base of Private Banks is increasing at a higher pace than that of

government Banks are rising.

DOES ADVERTISEMENTS HAVE BEARING ON CHOICE OF

BANK ?

Advertisement has become an important means used to popularize the goods

and services produced by different organizations. Banks are no exception to

this , Banks often advertise in Newpapers , magazines , television , etc

informing people regarding new products being introduced by them.

With the emergence of Private and Foreign Banks who aim to provide the

customers with a differentiated product , advertisement plays an important

role in creating a image in the minds of the people of a highly differentiated

product.These Banks keep aside a huge advertisement budget , And it is not

uncommon for Celebrities from movies and sports industry to endorse the

products being offered by the Banks.

It is important to know whether people feel that they get influenced by

Advertisements , and if the answer is yes then it would be worthwhile for the

Banks to invest more on advertisements.

The results from the study shows that according to people advertisement

does have a bearing on choice of Bank , More than 69% of the respondents

felt Advertisement is important while the balance 31% felt the opposite.

DO FREEBIES OFFERED BY THE BANK HAVE A BEARING ON

THE CHOICE OF BANK ?

Apart from advertisements Banks often offer prospective customers offers

and incentives to lure them to open accounts with the Bank. This freebies

include free debit card , free insurance or some other of the Banks products.

It is seen these incentives have some effect on convincing the customer to

open an account with the Bank.

These offers and incentives help the Bank in offering a Differentiated

product in a highly competitive market.

It is necessary to know whether these free incentives offered have a bearing

on the choice of Bank. Out of the respondents questioned 59% of the


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respondents felt that these freebies does help them make up their mind

regarding a certain Bank , while 41% of the respondents felt that these were

not important.

MOST FREQUENT POINT OF INTERACTION WITH BANK

Banks in the Private and Government sector provide to their customers with

different types of medium through which they can interact with the Bank.

Private Sector Banks have been in the forefront of providing their customers

with technologically advanced mediums like Internet Banking , MobileBanking , ATM Facility , Phone Banking ,etc.

Government Banks have rather late realized that if they do not invest in

these modern medium of Banking their deposit base would shrink. Now

these Banks are investingheavily in installing ATM machines , they have set

up call centers for Phone Banking, etc.

State Bank of India is one such Bank which has one of the largest network of

ATM machines all over the country.

Generally the study has concluded that for Private Sector Banks ATM has

come out as the most frequent point of interaction with the Bank , But

Branch Banking is more popular when Government Banks are concerned.

Phone Banking and Internet Banking are western concepts of Banking which

have been popularized by Private Banks operating in India. The usage of

these mediums are restricted to Private Banks. Government Banks are

currently putting these mediums in place for its customers but it will be

some time before Internet and Phone Banking will become popular for

Government Bank Account holders.

Overall the medium which has come out as the most popular point of

interaction with Banks is the ATM Facility with 42.85% of the respondents

choosing this option.Next most popular Point of Interaction with the Banks is Branch Banking

with 30.47% of the respondents choosing this option. Phone Banking

comes next with 19.05% of the respondents choosing this as the most

frequent point of interaction.


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Internet Banking is favored by 7.6% of the respondents as their favorite

medium and Drop Box Facility is not considered by anyone as their most

frequent point of interaction.

Standard Chartered Bank

POSITIVE ASPECTS

1. Debit card holders of Standard Chartered Bank Access Plus Saving

Account can use their card to transact from other Visa Electron machines

four times free per month. This is a unique benefit which is available to

Standard Chartered Bank customers. After the free transactions everytime other machines are used RS. 50 is charged per transaction.

This is over and above the Unlimited free use of Standard Chartered

Bank machines the customer is entitled.

One more Bank which allows its customers two free use of other Bank

machine is ABN Amro Bank. All other Banks charge their customers if

they use other Bank machines.

Standard Chartered Bank has a network of 246 machines All over India

and 35 in the Delhi Region alone. The corresponding figure for ABN

Amro is 40 and 13 respectively.

In the study an attempt was made to find out how many times the ATM

Facility was used by Account holders per week , the results showed that

50% of the respondents used the machine Less than two times per week

and 40% used the Facility between two and four times per week.

From the above we can infer that on the basis of ATM usage rate

Standard Chartered Bank Account holders would not get in a position

that they might have to pay the transactional fee of using other Bankmachines.

2. Average Banking hours (10am to 7pm) of Standard Chartered Bank is

nine hours per day. This is very good when compared to other Banks.

Only ICICI Bank has better working hours (8am to 8pm) , But it does not


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offer its customers 24 Hour Branch and 365 Day Branch as is the case

with Standard Chartered Bank.

Standard Chartered Bank is the only Bank in the country offering a 24

Hour Branch. At this Branch account holders can do their Banking

transactions at any time. This is one of the many firsts which Standard

Chartered Bank is associated.

Apart from Standard Chartered Bank , ABN Amro Bank is the only Bank

which offers a 365 Day Branch.

Sunday Banking is allowed at Standard Chartered Bank , this is a unique

feature as established Banks like ICICI Bank and HDFC Banks do not

provide these services.

The Account holders are very satisfied with these facilities offered by

Standard Chartered Bank.

3. The Maximum Withdrawal Limit from a Standard Chartered Bank ATMmachine per day is RS. 25000. By allowing its customers access to this

amount of their cash Standard Chartered Bank is allowing lot of

Convenience to its customers. It frees the customers of the worry that if

there is an emergency , he will not fall short of cash.

The ATM facility users at the Bank are very satisfied by this service.

The above limit for ICICI Bank and HDFC Bank is RS.15000 , which is

far less than Standard Chartered Banks limit.

4. Standard Chartered Bank offers its customers the facility of cash

transaction from non-branch , this is also one of the unique facilities

offered by the Bank. Established players like ICICI Bank and HDFC

Bank does not provide this service.

The Account holders of the Bank find the above extremely useful.

5. Standard Chartered Bank offers to its Account holders to Link Their

saving account with other Standard Chartered Bank products like credit

cards, etc. The customers of the Bank find this facility very useful as it

frees them of the worry of having to make individual payments , and

having to remember due dates.Another very useful service offered to the Account holders is the

automatic payment of Utility Bills(electricity, water, phones payments).

Crosstabs


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Null Hypothesis: There is no association between age and banking

preference of Standard Chartered Bank

Alternative Hypothesis: There is association between age and banking

preference of Standard Chartered Bank

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Age *

StanC19 19% 81% 81% 100 100.0%


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CHAPTER-4 CONCLUSION & RECOMMENDATION

CONCLUSION

1. Standard Chartered Bank is a Leading Bank in the country , it provides

a variety of products and services to different segments of customers.

2. The Bank aims to serve customers from teenagers to senior citizens ,

hence different products designed to suit specific requirements of the

above.

3. Aims to serve all classes of the society from the salaried middle class

to the high income business class.

Customers are categorized and segmented according to their

requirements and needs.For Example , the Axcess Plus Saving Account aims to serve middle

class customers so minimum balance required to be maintained is RS.

10000. While the Super ValueSaving Account is targeted at high income

customers, the minimum balance requirement is RS. 50000.

4. Customers who are more profitable to the Bank (High Value

Customers) are provided special facilities. Priority Banking is meant to

serve these high value customers.

5. The Bank prides itself with the ability to provide differentative

products in the crowed market of saving accounts. Bank offers freeinsurance , special co-branded debit cards (Smartfill Debit Card) which

makes its product unique.

6. The Bank is also involved in marketing activities which serves as a

medium of advertisement for the Bank. These are as follows:

Extended happy hours at certain pubs in Delhi for the Banks account

holders.

Gift Vouchers on making utility payments , such as cell phones ,

electricity and MTNL bills. Free Gifts like T-shirts/watches to its customers.

Free add-on cards for relatives.

7. The Bank wants its customers to transact more through Internet

Banking and ATM , Rather than the customers using the branch.


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8. The Credit/Debit Cards provided by the Bank are Internationally

Accepted around the world , Hence giving the customers the

convenience to transact anytime , anywhere.

9. The Bank has tied up with other Banks so that its customers can use

other Banks ATM facility for free (four free transactions)

10. The Bank also provides DEMAT account and also sells Mutual Funds ,

this provides the Bank and Government additional revenue.

11. The Bank has been very successful in enlarging its customer base

during the last couple of years.

12. The Number One Reason of people choosing Standard Chartered Bank

is the Brand Name/Reputation of the Bank.

Hence it should be careful that the Brand name and Goodwill the Bank

has earned is not diluted.

13. The Biggest competitors of the Bank are ICICI Bank and HDFC Bank.

14. ATM Facility is most popular way to transact with the Bank.15. Overall the customers appreciate the service and products offered by

the Bank and are willing to recommend the Bank to their acquaintances ,

But more attention has to paid towards:

Increasing the number of ATM machines.

Improving Internet Banking Facility.

Correspondence from Bank reaching in time.

Employee Courtesy.

16. Advertisements do play a role in attracting prospective customers to

the Bank.


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RECOMMENDATION

The SUVIDHA Account that is offered by CITIBANK has become very

popular in Banglore , But the biggest competition to Standard Chartered

Bank especially in Delhi and Mumbai are ICICI Bank and HDFC Bank.

To gain a foothold in these lucrative markets Standard Chartered Bank

should:

1. The Number one complaint of Standard Chartered Bank customers is the

limited number of ATM machines (Delhi-35 All India-246) that the

Bank operates. Since ATM is the most popular point of interaction withthe Bank it is imperative that the Bank increases the number of ATM

machines.

Standard Chartered Bank must enter into alliances with other Banks , so

that its customers can use those Banks ATM facility free of any charge.

2. The Bank should upgrade the ATM machines with video conferencing

facility , this would help the Bank project the ATM machine as a mini-

branch.

3. The Bank should take advantage of its world wide network of ATMmachines , as more and more Indians are travelling abroad. The

advantages of being able to access ones account anywhere in the world

must be highlighted.

4. The Bank should reduce the Transaction cost of Non-Standard Chartered

Bank ATM machines.

5. Account holders of Standard Chartered Bank often have experienced thatthere is a delay on the part of the Bank to dispatch correspondence meant

for the Account holder.

More than four-fifth of the respondents were Dissatisfied to a certain

extent because of delay for important correspondence in reaching the

customer in time.


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6. Account holders who have applied for Internet Banking complain that

there is a delay in the password reaching them , hence causing

inconvenience. Also there have been occasions when Debit Card has

reached but PIN which comes separately has not reached.

7. Apart from this account holders have been frustrated because of delay in

the Statement of Account reaching them.

8. Overall the Account holders who have availed the Phone Banking service

are quite satisfied with the service , they feel it is a useful and convenient

facility. But some respondents felt that it would be better if the Phone

Banking executives were more sensitive to the needs of the customers ,

and made effort that the problem is solved without the Account holder

requiring to call again.

9. Set up a dedicated call center for Debit card holders on the same lines of

the Global Consumer Bank Division for Credit Cards.

10.Account holders feel that it would be good if the Bank offered incentives,

freebies to its existing customers , this would keep the customers happy

and satisfied with the Bank.

Account holders feel that the Bank is quick to give offers to its

customers only when it feels that customer is going to stop doing

business with the Bank.

11.Another overwhelming Demand of the Account holders of the Bank is

that they should receiving free monthly statement of account from the

Bank instead of the current quarterly statement.

The account holders of ICICI Bank and HDFC Bank get Free monthly

statements and the customers feel that there is no reason why Standard

Chartered Bank should not provide them with the same.

12.Door Step Banking is a medium of Banking for the future, Standard

Chartered Bank is again been in the forefront of offering new andinnovative facilities to its customers.

Leading Banks such as ICICI and HDFC are yet to provide this service to

its customers.The Bank should put in extra effort to popularize this

service.


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13. The Bank should launch schemes whereby people are encouraged to open

accounts for their children , also special incentives and offers should be

given for students to open accounts with the Bank.

This would help increase the deposit base of the bank.

14. Try to convince companies to open Corporate Accounts with theBank.

15. The Bank should extend the service of dropping important documents to

all its customers. This facility should not be restricted to the high value

customers.

16. It was observed that during the Branch visits there was insufficient or

waning management support , this aspect needs to be looked into.


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BIBLOGRAPHY

There was immense need and flow of the information while conducting the

analysis as well as while writing the thesis report, which was gathered

through various sources mentioned below:

Internet

www. Standard Chartered Bank. com

www. Standard Chartered Bank .co.inwww. Standard Chartered Bank .com

www.indiainfoline.com

www.google.com

www.economictimes.com

Various Magazines and Newspapers such as

A & M

Outlook

Financial TimesThe Economic Times

The Times of India

The Hindustan Times

Reference Books-

Marketing Management Philip Kotler

Marketing Management- V S Ramaswamy & S NamakumaryMarketing Research- Harper W Boyd, Jr; Ralph Westfall; Stanley

F.Stasch

Journals, Broachers and various other documents gathered and

collected from bank and various other sources such as ATM centers and

associates.
http://www.citibank.co.in/http://www.citibank.co.in/http://www.citi.com/http://www.citi.com/http://www.indiainfoline.com/http://www.google.com/http://www.economictimes.com/http://www.citibank.co.in/http://www.citi.com/http://www.indiainfoline.com/http://www.google.com/http://www.economictimes.com/


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APPENDEX

The Questionnaire used specifically for standard Chartered Bank Account

holders is below.

The responses of 50 Account holders were taken using this Questionnaire.

QUESTIONNAIRE

NAME

ADDRESS

AGE

Below 25 years 25 to 40 35 to 50 50 to 60 Above 60 years

OCCUPATION

Business Professional Service student Others

ANNUAL INCOMELess than 1.5 lakhs 1.5 lakhs to 3 lakhs 3 lakhs to 5 lakhs Above 5

lakhs

1) For how long have you held a saving account with the bank?

Less than 6 months 6 months to 1 year

1 to 2 years Over 2 years

What made you choose Standard Chartered Bank?

Recommended by family/friends


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Brand Name/Reputation of Bank

Advertisement

Branch near Residence/Office

Other Reason (please specify)

In addition to the above