mcb privilege bank

8/8/2019 MCB Privilege Bank

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OPERATIONAL MANAGEMENT

MCB Privilege Bank

Discover Your Privileges

Group Members

Faiqa Qamar

Haris Ahmed

Irfan Ullah

Saad Ullah

Waleed Ahmed

Lahore School of Economics

BBA Double Majors in Finance and Marketing



Introduction

Established in 2008, MCB Privilege is an extension of Muslim Commercial Bank, which is

recognized for fulfilling the need of excellent customer relation and superior quality service to

the customers. MCB Privilege has four centers nationwide located in Karachi, Lahore, Multan

and Islamabad. It is a new trend in banking sector that most of the renowned banks are inclining

towards facilitating their customers with privilege services. Examples are Superior Banking by

Standard Charter Bank and Royal Banking by Bank Al Falah. MCB Privilege has given a new

dimension in banking sector to target the most profitable and potential customers.

Privilege Experience

MCB Bank Limited is the first local bank that has launched privilege banking facilities for its

customers. The special facilities are available to all customers, who open their account with

MCB Privilege and maintain a deposit relationship of Rs. 2.5 million and above.

MCB Privilege goes ³beyond banking´, aspiring on building relationships for life. By offering

exceptional services and treatments to our customers, we aim to bring to them an experience of a

lifetime. Our Privilege Relationship Managers, with their experience and expertise strive to

deliver above and beyond their expectations and enable our customers to view the Privilege

Centre as more than just a banking channel. Our Privilege customers also receive specialized

benefits for banking with us:

Instant account opening: all new customers will receive their cheque book and activated

ATM card within minutes of opening an account

ATM/Debit Card with international acceptance

Superior spending power through our Gold Credit Card with enhanced transaction and

POS limits

24/7 account enquiry through our dedicated call centre

Round the clock access through ATM, SMS and Virtual Banking

Charge free banking

Option for replacement loan



Expert advice on management of financial assets

Invitation to exclusive events

Privilege Relationship

With our team of professional, highly dedicated and certified Privilege Relationship Managers,

you are set on the golden road to success. They understand your aspirations, and focus not only

on your current financial standing but also on where you want to be. With the attention and

commitment that you deserve, the Privilege team will use their expertise, and market insight to

help you invest your funds and grow your wealth. Your Privilege Relationship Manager will

arrange periodic review meetings with you to assess your financial situation and better prepare

you for the future.

MCB Privilege Products

MCB Privilege offers the following services to its prospect customers;

Deposit Products

Investment Products

Loans

Bancassurance

Credit Cards

1. Deposit Products

The portfolio for deposit products consists of the following accounts. These accounts are

designed with specific consumer needs and policies. Products in deposit category includes

Saving 365 Gold, Saving Xtra, Smart Dollar Account, Saving Account, Current Account,

Business Account, Foreign Curreny Account.

Investment Products

With Privilege Banking, Financial Management goes beyond just simply offering a wide range

of investment products; it is how financial services and solutions can be developed around your

individual aspirations and goals. We offer a unique approach to help manage your wealth, by



listening to you and understanding the things that are most important in your life and offering

you superior customer service and a promising relationship built on trust. Investment Products

include Dynamic Cash Fund, Dynamic Allocation Fund, and Dynamic Stock Fund.

2. Loans

MCB Privilege offers the loan under following categories; Mortgage, Personal Loan, Business

Sarmaya, and Cash 4 Cash.

3. Bancassurance Products

Your policy will be selected from the most reliable insurance companies. You can feel confident

that your policy has already passed MCB¶s strict standards for selection µUnparalleledProtection¶. These policies include RetireEasy, Income Max, EduCare, and Dream Wedding.

4. Credit Cards

Accepted at over 24 million establishments worldwide in 210 countries including 10,000 in

Pakistan displaying the Credit Cards logo, you can rest assured of real value-added benefits at

home and abroad. We offer you a Pre-approved Visa Gold credit card, packed with the most

powerful alliance card, ³Priority Pass´, the largest airport VIP lounge program in the world, withover 400 exclusive VIP airport lounge locations around the world.



Branch Operations

A)

A Privilege Banking customer is defined as below:

Existing: Customers maintaining a 3-month average balance of a minimum of Rs. 2.5 million on

a relationship basis.

New: Customers opening accounts with a minimum of Rs. 2.5 million based on the premise that

funds will be maintained with us.

MCB Privilege is following the same Operational Manual that is followed in normal MCB

branches except for minor modification in charges for different services because they provide

premium services so they charge premium against them. MCB Privilege is currently using

SYMBOLS as their computer database program for daily transaction. SYMBOLS is an Oracle

based systems.

Authorized signatories only includes:

Branch Sales & Service Manager (BSSM)

Branch Operations Manager (BOM)

Account Opening/Maintaining Process Flow

Process flow for Frontline staff

1. Requisition to be sent out to Consumer Bank Operations on 20th of every month (for accounts

to be opened as Privilege for the following month only) from BSSM mailbox stating: Type

of accounts (CA/SA)

2. Fill out AOF completely and accurately

3. Clearly put the ³P rivilege Banking´ stamp on the documents before faxing/ scanning to the

Principal branch.

4. Append the ³Already Faxed/Scanned´ stamp on the AOF after scanning/ faxing to ensure

that the same account is not processed again.



5. Attach all supporting documents accurately

6. Record Account # of Welcome Pack on AOF & KYC

7. Authorized signatory (PCM/BSSM of sub branch) to sign on AOF being faxed across.

Original documents to be sent to the Principal branch same day where they will be stored in a

fire proof cabinet.

8. Operations at the principal branch will remove the block µIAS´ from the pre-opened account

and enter the details of AOF on symbols. After the details are plugged, a/c will be authorized

by relevant signatory.

9. Operations at Principal branch will inform the BSSM, BOM & RM through an email that all

details have been input on symbols & CNIC verification on NADRA¶s veri-check has been

carried out. Subject of the email should be A/c no of the customer.

10. RM will get the Welcome Pack from the BOM along with ATM PIN mailer from the

designated teller. All three will sign the inventory control sheet.

11. When account is opened, the Privilege Pack (consisting of Interim cheque book and ATM

card) is to be handed to the customer and due acknowledgement is taken for the same.

12. RM/CSO will take the ATM Card for activation. RM/CSO will check the ATM card number

on the ³MCB ATM Card Generation Module´; reconcile the card number on the system with

the number on the plastic. RM/CSO will then, mark an activation request to the Call Center.

13. Designated officer at the Call Center will activate the ATM card on EURONET, which is the

ATM controller.

14. The RM will personalize the ATM card at the center by running it through the Data Card

printer, which will print the customer¶s name on the plastic

Process flow for Principal Branche (back-end):

Principal branch will perform the following activities:

1. Pre-opening of liability accounts

2. Restraint setup for charges waiver

3. Requisition of non-personalized 5 leaves cheque books

4. ATM requisition



Gold Card Process Flow (For Privilege Customers only)

Privilege Relationship Manager (PRM) will fill in credit card application along with all the

relevant documents.

1. Documents for NEW Privilege Customer:

Profession, Copy of CNIC or Passport, 6 months bank statement (relationship with

another bank) & salary slip if required.

2. Documents for EXISTING Privilege Customer:

Credit will conduct data check & e-cib clearance for all existing customers before these

customers are solicited by privilege RMs. This list will be provided by Product team

through the Business Intelligence Unit. CNIC, Recommendation memo/ email from

Branch Manager* stating the 6-month average balance of the customer.

3. If a greater limit is requested than preset limit of Rs. 150,000/-

INSTANT ACCOUNT OPENIN

Customer walks into the P rivilegeCenter

NTB

Existing

Individuals will submit: CNIC, AoF, KYC/ AML.Sole Proprietor: Application on officialletterhead, NTN#, Evidence of membership of

trade organization, list of authorized officials withSignatures

In case of an existing send it for processing existing customer

Customer to receive h

RM to checkaccuracy and

signoff. The Afaxed to the p

Account opening officer to perform th- Key in customer data- Personalized cheque book request

- Personalized ATM request to be rai- CN IC verification through NADRA

Email is sent to BOM

informing them that th

RM greets the customer. Checkswhether it is a NTB or existing

customer



In those cases where the customer is eligible for a limit higher than Rs 150,000/- credit

will assign the higher limit to the customer. PRM will ensure the following:

- ³P rivilege Banking´ stamp is affixed on the application.

- Customer Account number (where balance >Rs. 2.5M is being maintained) to be written

in the application.

- Privilege Sales Source code ³PRM XXX´ is mentioned.

- Branch code to be mentioned next to ³PRM XXX´

- ³Already Scanned/ Faxed´ stamp to be affixed ONLY on original card application. ( to be

followed for all branches)

4. PRM will FAX & SCAN the application to FTS for Data check and FTS. Application to

be marked as Privilege Banking to ensure urgent processing.

5. FTS will input the required information in the system with SE Code, generates Bar Codes

& Data Entry will input Customers particulars & forwards it to PRM for further

processing.

6. PRM to forward the FAX and SCAN the application to Credit Initiation Unit

7. Application received at CIU for further processing/decision

8. Credit Initiation Unit will scrutinize the application to check for discrepancies.

BM/BOM approval is taken and discrepancy to be resolved in 2 days from date of

application. Nevertheless, application will not be processed if discrepancy exists.

Discrepancies will be escalated to HoPB, HoC, CCH after 7 Working days.

9. CIU to access the application and assign limit ( based on income/ salary and available

limit)

10. In case of internal verification (IV) only, CIU will initiate a request to Card Processing

Unit (CPDU) & provide the customer¶s information for urgent processing.

11. CPDU embosses the card and forwards it to courier for onward delivery to card member.



Mortgage Loan Process Flow

Mortgage loan at MCB Privilege is offered for the following purposes:

Purchase

Renovation

Construction

Balance Transfer Facility (BTF)

Process Flow:

The departments/units involved in this process include Privilege Relationship Managers (PRMs),

Asset Sales, CIU, External Agencies Management Unit (EAMU), and

Privilege Credit Card Process Flow

C a r d

P r o d u c t i o n U n i t

P r i v i l e g e R M

D

a t e E n t r y

C a r d

O

p e r a t i o n s

C I U

C u s t o m e r

Customer is

approached by

PRM, and shows

interest in

purchasingCard

PRM gets Application

Form filledout from

customer, collects

documents & submits it

to Data Entry

Barcodes

application &

inputs PRM¶s

sales code

Data Entry is

carried out

Scrutiny of

application and

Credit Checks

Discrepancies

Sorts out

discrepancies ,

getsmissing info

from customer

Yes

Email sent to

CPDU for urgent

processing

No

Customer is

MCB account

holder

Internal

Verification

Yes

CardEmbossing

and Delivery

Internal &

External

VerificationNo



1. When the customer first walks in, the PRM approaches the customer, and then prepares a file

for the interested & eligible customer.

2. PRM prescreens the customer, gets the property documents and cheque for processing fee

and forwards it to Mortgage Sales.

3. PRM will forward any cases to the assigned Relationship Manager (Asset Sales) attaching

the branch call memo, one Bank one team form as well as the branch stamp so that the case

can logged in as a Privilege center referred case.

4. Sales department calculates debt burden then forwards it to CIU for ³Credit´ approval.

5. They forward the required document to EAMU for ³Appraisal´ as well as for ³Legal

Opinion´. The EAMU verifies the cases and forwards the reports to CIU within 5 working

days provided that the documents for legal and appraisals are completed

6. It is then forwarded to Mortgage Operations department for Data entry at first stage and then

finally for ³Disbursement´ after the final ³Credit´ approval by the CIU.



B).

Supply Chain Management

MCB Privilege Bank is included in service sector so majority of its operations are free of hassle

with respect to manufacturing or assembling of the products. The supply chain system of MCB

Privilege is divided into two main domains; ATM Vendors and Branch System Software Vendor.

ATM Vendor

Innovatives PVT Ltd. (IPL) fulfills the needs Automated Teller Machines for MCB Privilege.

IPL is a Pakistani based company which is a part of a group that includes other market leading

companies such as i2c Inc. USA and Avenceon. IPL specializes in three main categories Client

Service Division, Power Protection Solution, and Banking Automation Solution.

Computer Database and Software

MCB Privilege uses software called SYMBOLS for their operations. SYMBOLS is an Oracle

based support software.

Outsourcing

All the products and services are entirely produced by MCB Privilege except for the two

products mentioned above. MCB Privilege has also outsourced its department for Customer

Support. The outsourcing of Call Center has helped them to focus on their core services and

enhance their productivity. They have hired the services of local based company µBusiness

Solutions¶ in this regard. Apart from that MCB Privilege is running its own HR, Marketing,

Operations, Financial functional etc.

ATM

Computer

Softwareand

Database

Supplay

Chain



C).

Process Flow used by Company for Suppliers

MCB Privilege has a simple process flow for supplier i.e. ATM and computer software vendor.

A written request for particular product is sent to the vendor which has its approvals by two

personnel which includes Group Head Consumer Banking, and Group Head Privilege Banking.

Once the vendor accepts the request, both the parties undergo a mutual contract.

Designated branch ATM Coordinator and IT Monitor:

All ATM equipped branches are required to formally designate one official in the branch to

perform the prescribed ATM related tasks. This officer in smaller branches can be the Operations

Manager or the Administration Officer.

Key responsibilities:

The officer is responsible for the following tasks in addition to his/her duties (core

responsibilities/functions) in the branch.

Weekly checkup of system database.

Cleanliness and up-keep of the ATM booth and manage the maintenance. Maintain ATM UPS and other networking equipments to be in order.

Maintain liaison with ATM Operations (ITD) and the Vender.

Maintain a complaint log register and record all repair/maintenance activities on the

machine by the vender/engineers. The movement of ATM parts either for

repairs/replacement should also be entered in the register.

Make sure to keep an updated record of names and contact numbers of the related

venders and the ITD Implementation personnel for quick reference.



D).

Service Quality

Customers are the focus of every business today, they define quality. The key aim of providing

Quality service to our customers is the involvement of all employees to a quality approach.

Identifying the needs of customers is a matter of ensuring that employees, who depend on one

another as individuals, as well as departments, that depend on each other as units, communicate

their needs to one another continually.

This, develops, strengthens and retains Customer relationships by improving the cycle time and

reducing defects in all the processes resulting in Customer Satisfaction and loyalty.

MCB approach to service quality control

According to MCB ³Customer Needs, Expectations and Perceptions are changing rapidly

therefore we also need to gear ourselves in order to stand in line with our competitors. Keeping

in view the aim of delivering quality service to our customers continuously´

Following are some features that MCB thinks essential for delivering quality in every branch

Branch Environment

Quality encompasses every aspect of an organization. The branch environment helps turn the

branch into the largest generator of value in retail banking, and also the most significant

factor in customer retention

Staff Attire

A nice, uniform look for your staff helps them look professional and command the respect

they deserve.

Branch Customer Service

Customer service is built on the bedrock of a positive attitude, without which all attempts to

create a wonderful customer experience will fail it include Cash Counters, Telephone

Etiquettes



Service management activities at MCB

Service management activities are the ones we do on daily basis for ensuring all components

(touch points) that would affect an over-all customer experience are as per our standards and that

we are making efforts to improve them further e.g. Cleanliness, Ambiance management, Service

Forums, Process Improvement, Training, etc.

1. Host of the day - DAILY

2. Housekeeping - DAILY

3. Floor Management - DAILY

4. Service Coaching - DAILY

5. Monthly Service Meeting - MONTHLY

6. Service Clinic ± QUARTERLY

1. Host of the Day

It is a proactive approach towards day-to-day service management. The rationale behind this

initiative is to make sure that all attributes within the branch which can affect our service

delivery and in turn help make a good customer experience should be checked on daily basis.

2. Housekeeping

Look and Feel does make a difference in any experience. Clean and hygienic environment gives

a decent and good impression apart from proving a comfort for the customer. It includes Outside

Parking Area, Front Entrance, Banking Hall, ATM, Lockers, Kitchen, and Toilets etc

Service Quality Analyst will check Quality of Cleanliness Look and feel of the branch via

Housekeeping and discuss any improvements pending items with the Branch Operations

Manager and the Branch Manager

3. Floor Management

Floor Management is a daily activity, any one staff member of the branch is assigned to servecustomers for an hour during peak hours (I-e 10.00 am to 2:00 pm) in which he/she will maintain

the service level of the branch and provide additional support to the existing frontline service

staff (CSO). The purpose of this initiative is to work as a team and effectively manage branch

floor time.



4. Service Coaching

Coaching for service mindset and culture is a crucial function of management. The objective of

coaching is to improve customer services and to build confidence. When staff feels more

confident in what they are doing, they will be willing to do it more frequently. Branch Managers

and Supervisors should invest time in it.

5. Service meetings

These meetings should be held once a month (max by 15th of every month). The date of meeting

should be communicated to departments at the 1st working day of the month. The objective of a

service meeting is to discuss and correct the flaws branch are facing in their activities.

6. Service Clinic

It is conducted by Service Quality. This is a forum where all Customer Service Officers of a

region get together on a quarterly basis to review their service performance results as a team,

identify weak areas and decide on action plan for the upcoming quarter. This is a full day forum

done by the experts quarterly.

Service Quality Analysts

MCB have a separate quality control department and it sends its analyst to visit branches and

check all parameters and record findings on a quality check report. Service Quality Analysts

would share the report with the Branch Manager on-spot and fetch a target closure date for all

actionable items (weak areas) identified The purpose of the Service Indicators (SI) Program is to

ensure service quality along a number of core internal service standards.

Customer Satisfaction

Profitable Organizations have one clear common denominator that they are customer focused.

They know who their customers are and know what they want. Further, they systematically

measure themselves against standards set by their customers. MCB is doing just the same thing

to achieve customer satisfaction level and uses to methods to measure its level

Customer Satisfaction Survey (External)

Customer Satisfaction Survey (Internal)



1. Customer Satisfaction Survey (External)

MCB want to know how customer feels about our services on a continuous basis. Service

Quality Analyst during their branch visits and telephonically, will conduct this survey every

month. The frequency will be as follows:

3 customers per month will fill out the questionnaire in the branch while being served 3

customers per month will be interviewed via telephone. The feedback score will be compiled and

shared with all stakeholders

2. Customer Satisfaction Survey (Internal)

Banks are increasingly interested in retaining existing customers while targeting new customers;

measuring customer satisfaction provides an indication of how successful the organization is at

providing products and services to the market place. The customer¶s state of satisfaction depends

on a number of both psychological and physical variables. The level of satisfaction can also vary

depending on a customer using other bank¶s products/services. These surveys are done once a

year.

Complaint Management

A good complaint management process has four major components:

y Capture complaints

y Resolve complaints for customers

y Eliminate root causes



y Drive continuous improvement

Channels through which complaints are received are as follows

MCB Call Center, Branches, MCB Website / Email, Fax / letters, Regulators (State Bank &

Banking Mohtasib), Management/ Hierarchy.

Complaint Resolution Unit (CRU)

A centralized unit, working in collaboration with all Segments; responsible for acknowledging,

investigating, tracking, escalating and resolving customer complaints within a specifiedturnaround time (5 working days). The Unit also performs in-depth qualitative and quantitative

complaints analysis followed by suggestions and recommendations in order to eliminate root

causes/ drive continuous improvement drive.

Complaint Management System (CMS)

Complaints are processed through ³Complaint Management System´ (CMS) which is a State-of-

the-Art solution for managing customer complaints starting from Instantiation at customer

interaction places to their Resolution. This system is used to input data, keep close follow-ups

and monitor progress as well as storage of the data, along with the escalation to the different

levels of the Management. It is accessible at various departments.

MCB is using state of the art quality control method which are up to the par with the

international level and is one of the leading bank in the country in quality insurance and control.



There are zones of quality department for MCB. Whole Pakistan is divided into different zones

Lahore zones got 6 offices while Karachi zones which covered most of the Sindh got 10

departments.

References

Amara BanoCustomer Services Officer

MCB Privilege Bank

Sadia Zaman Khan

Operational Manager MCB Privilege BAnk

MCB Privilege Center # 1

Lahore: 15 Main Gulberg, Jail Rd, Lahore

Phone: 042-36041806 / 36041808

Fax: 042-35776669

http://www.mcb.com.pk/privilege/

http://www.innovative-pk.com/aboutus.html