Customer Satisfaction of NCC bank

8/13/2019 Customer Satisfaction of NCC bank

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Advance working Report on Customer Satisfaction Of NCC Bank LtdIn Context of Private Commercial Bank

B

An Interns!ip Report Presented In Partial "ulfillment

Of #!e Re$uirements of t!e %egree

Bac!elor of Business Administration

&a '()'

Advance working Report on Customer Satisfaction Of NCC Bank Ltd1


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In Context of Private Commercial Bank

B

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INTRODUCTION

Bank as t!e financial services industr is approac!ing full !istorical ccle* Originall t!e+anking sstem operated as full service industr, performing directl or indirectl all

financial services* Banks are direct agents to create opportunities for development in a

countr and also provide large scale of emploment opportunities* Banks mo+ili-e savings

and make it advances to investors and + t!is process make profit* As t!e deal wit! pu+lic

mone, t!eir form of +usiness is different from ot!ers* Banks must refund pu+lic.s mone

w!en t!e demand / $ualitful services eit!er it makes or not* So, overall operation sstem

of +ank s!ould +e evaluated carefull*

Banking sector is expanding its !and in different financial events ever da* At t!e sametime t!e +anking sstem is +ecoming faster, easier and t!e +anking area is +ecoming wider*

As t!e demand for +etter service increases da + da, t!e are coming wit! different

innovative ideas / products* In order to survive in t!e competitive field of t!e +anking

sector, all +anking organi-ations are looking for +etter service opportunities to provide t!eir

fellow clients* As a result, it !as +ecome essential for ever person to !ave some idea on t!e

+ank and +anking sstem*

#!e evaluation of +anking sstem is a complex process involving interactions +etween t!e

environment, internal operations, and external activities* #!e ultimate o+0ective ofmanagement is to maximi-e t!e value of +ank.s e$uit s!ares + attaining t!e optimal mix

of returns and risks* In t!is respect +ank management needs to develop a compre!ensive

plan in order to identif o+0ectives, goals, +udgets and strategies t!at will +e consistent wit!

t!e maximi-ation of s!are values*

In researc!er.s t!esis paper, researc!er !as selected one private commercial +ank to evaluate

t!e +anking sstem in our +anking industr* #!is is NCC Bank L#%* #!is +ank !as a great

impact in our econom* NCC Bank L#% !as +een operating t!eir services from )123 as a

leasing compan and from )114 as a Bank in our countr t!roug! its )5 +ranc!es*

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Background of National Credit & Commerce Bank Ltd (NCCBL)

National Credit and Commerce +ank Limited +ears a uni$ue !istor of its own* #!e

organi-ation started its 0ourne in t!e financial sector of t!e countr as an investmentcompan +ack in )123* #!e aim of t!e compan was to mo+ili-e resources from wit!in and

invest t!em in suc! wa so as to develop countr.s Industrial and #rade Sector and plaing a

catalst role in t!e formation of capital market as well* Its mem+ers!ip wit! t!e +ourse

!elped t!e compan to a great extent in t!is regard* #!e compan operated up to )11' wit!

)5 +ranc!es and t!ereafter wit! t!e permission of t!e Central Bank converted in to a full6

fledged sc!eduled private commercial +ank in &a 199wit! paid up capital Tk! 9! ""

core to serve t!e nation from a +roader platform* %uring last )' ears of its operation

NCCBL !as ac$uired commenda+le reputation + providing sincere personali-ed service to

its customers in a tec!nolog6+ased environment* #!e Bank !as set up a new standard in

financing in t!e Industrial, #rade and "oreign 7xc!ange +usiness* Its various deposit and

credit products !ave also attracted t!e clients6+ot! corporate and individuals w!o feel

comfort in doing +usiness wit! t!e Bank*

#!e initial aut!ori-ed capital of t!e Bank was #k* #$!""core and, paid6up capital #k* 19!$",

core at t!e time of conversion, w!ic! is now raised, to #k* 9!"" cores* #!e present

aut!ori-ed capital is #k* %$"!""core and paid up capital is #k* "!#'core* #!e sponsors of

t!e new +ank consisted of '5 8#went six9 &em+ers, w!o comprised t!e first Board of

%irectors* #!e s!are price of t!e +ank is currentl +eing $uoted at +ot! %!aka and

C!ittagong Bourses at an average price of #k* 4'(:6 against per value of #k* )((:6*

NCC Bank +ased upon its commenda+le +usiness performance for t!e ear ended '((;, !as

meanw!ile declared stock dividend at t!e rate of 4(


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articular* '()(

Aut!ori-ed Capital @3(*((

Paid up Capital 5(@*2)

Reserve fund / ot!er Reserves @5)*)2

7$uit "und )452*11

%eposits )5(51*'4

Loans / Advances )3'))*)3

Investment ;423*'4

Import Business )4'@;*(2

7xport Business 3@@)*53

Operating Income ''24*4@

Operating 7xpenses )35'*22

Operating Profit @'(*;1

Profit +efore #ax ;;3*3(

Profit after #ax '23*)5

ndistri+uted Profit );*'2

#otal Assets 8excluding contra9 ');51*('

"ixed Assets '1@*''

Num+er of Branc!es 45

+ork Re*,on*i-ilitie*.

In interns!ip program I work in general +anking site* &ention +elow w!at kind of activitI work in NCC +ank*

Account opening 8 Savings ,SSS ,"%R9

#aking C!e$ue+ook Re$uisition*

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Receiving C!e$ue

Inward outward Clearing register writing

&aintain c!e$ue+ook Register

pdate Account opening "orm

1.0 EXECUTIVE SUMMARY

Satisfing customers are t!e onl wa to sta competitive in todas marketplace* #!e

+alancing act +etween w!at customers want and w!at t!e compan can provide must +e

optimi-ed in order to maximi-e compan.s long6term profits* NCC +ank !as done numerous

researc!es to understand t!e level of customer satisfaction* #!e are alread in a good

position in t!e customers mind +ut understanding t!e customer.s satisfaction level, will !elp

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t!e compan to exceed t!e present level of customer satisfaction* ?owever, no suc! researc!

!as +een done to understand t!e level of customer satisfaction level of NCC +ank* #!is

stud investigates t!e level of customer satisfaction of internet +anking* On assessing t!e

level of customer satisfaction, w!at marketing tools, like promotional efforts and ot!er

marketing efforts, are necessar to improve t!e customer satisfaction level will +e given as

recommendation + t!e researc!er* #!is stud is +ased on primar data, as no suc! previous

researc! !as +een done to understand t!e level of customer satisfaction of NCC +ank* It is a

kind of researc! and information was gat!ering + $uestionnaire surve* #!e researc!er

covered t!e eograp!ical +ase of %!aka cit* pon completion of t!e researc! analsis, t!e

researc!ers understood t!e level of Customer satisfaction of t!e customers* All respondents

were moderatel satisfied wit! t!e Bank services* But one service is ver poor w!ic!

internet +anking* Researc!er also found t!at all customers are moderatel satisfied* So t!e

s!ould tr to develop t!eir ot!er service

%!" /tatement of t0e ro-lem.

in t!e current environment of increased competition wit! rapid market entr of new serviceconcepts and formats, t!e customer satisfaction also presents a c!allenge* NCC Bank is

t!reatened to lose t!eir existing market s!are due to t!eir weak internet +anking service

w!ic! is commonl offered + ot!er +anks* #!is !as enticed t!em to conduct a surve to

find alternative solution to satisf t!eir customers* "or t!at I was assigned to find t!e

factors 8t!at t!e need to look at or do furt!er researc!9 on related to customer satisfaction*7


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%!1 ur,o*e of t0e /tud

#!e ke purpose of t!is stud is to find t!e factors t!at can ensure customer Satisfaction and

NCC Bank.s performance in t!ose factors* #!us identif t!e service need gap and set up

proper strateg to improve furt!er to t!e extent t!at customers remain satisfied*

%!% /co,e of t0e /tud

#!e stud is to +e done onl on NCC +ank customers or account !olders w!o !ave Been

using NCC Bank account for more t!an a ear and visit +ank at least once a week* #!e

competition customers !ave not +een considered since t!e +ank at t!is point of time feels

t!e still need to improve furt!er to +e more competitive* Improving furt!er is onl possi+le

w!en t!e can satisf t!eir existing customers make t!em sta wit! t!eir +ank*

%! Limitation* of /tud

#!e unavaila+ilit of proper data+ase making me una+le to select respondent using a pure

simple random sampling* #!e data was collected from onl one +ranc!es of NCC Bank in

%!aka* Branc!es outside %!aka were not considered* So an a+solutel actual representation

of +ank.s customers is not in t!is report*

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%! Timeline

'()' );st "e+ruar Researc! Proposal Driting

'()' '(t! "e+ruar Literature Review

'()' '3t! &arc! %ata Collection

'()' )(t! April %ata Analsis / Interpretation

'()' '(t! April %raft Paper

'()'

!" Re2ie3 of Related Literature

4*) Customer Satisfaction

Customer satisfaction is defined as an Eevaluation of t!e perceived discrepanc +etween

Prior expectations and t!e actual performance of t!e productE 8#se and Dilton, )122, Oliver

)1119* ardial / Doodruff 8)1159 mentioned t!at a customer.s positive or negative attitude

toward t!e value of using a +usiness service in a specific situation is customer satisfaction*

D!ere as, Fukmir 8'((59 said t!at t!e amount of t!e timing and caring driving customer

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satisfaction in +usiness service* Bennet 8'((;9 stated t!at positive !ig! level of loalt is not

alwas a result of !ig! level of customer satisfaction* According to &uffatto 8)1139,

customer satisfaction makes a +usiness competitive and facilitates its future planning*

?ansemark 8'((;9 said t!at, good relations!ip wit! a customer can create satisfied feelings*

And Leonard, >o!nson and Dalker said 8'((59, customer satisfaction drives profita+ilit*

3.2. Customer Services

Customer service is a sstem of activities t!at comprises customer support sstems,

complaint Processing, speed of complaint processing, ease of reporting complaint andfriendliness w!en reporting complaint 8=im, Park and >eong, '((;9* As far as economic

factor is concerned, services s!ould satisf t!e needs of t!e customers 8#urel and Serenko,

'((5G &elod, )11@9* "or developing satisfaction among customers, t!e +ank service

providers need to +e extra careful for t!e customer services t!e provide* Satisfaction of

customer is determined + !is evaluation of service provided + a +rand 8ustafsson,

>o!nson and Roos, '((39* #!e stud of A!n, ?an and Lee 8'((59 s!ows t!at w!en t!e

customers, do not get t!eir complaints considered properl, t!e start looking for ot!er

+anks* It !appens +ecause eit!er t!e customer service centers do not !andle t!e complaints

or t!e customers are not a+le to address t!em properl "urt!ermore, t!e friendl attitude and

courteous +e!avior of t!e service workers at service firms leaves a positive impression on

t!e customer w!ic! lead towards customer satisfaction 8Soderlund and Rosengren, '((29*

On t!e ot!er !and, if a +ank service provider lacks in providing services to its customers it

experiences customer c!urn*

3.3 Interpersonal Relationship

According to Am ?awke / #ro ?effernan interpersonal relations!ip increase

commitment from +ot! Customers / suppliers sides w!ic! finall increases trust +etween

eac! ot!er rendering +usiness growt!* According to >uan Pa+lo &aicas Lope-, Holanda Polo

Redondo and "co* >avier Sese Olivan Customers maintaining a Long6lasting relations!ip

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will +e less predisposed to switc! as t!e are wit! t!e firm for a long time, using t!e service

more in dept! and investing in complementar services*

3.4 Internet Banking

Introduction and development of e6+anking especiall +egan in )11(s 8Pikkarainen et

al*'((;, p*'';9* A researc! made in *S in ear )111 stated t!at t!ere !ave +een !uge

increases in t!e use of e6+anking in America* 7xamining t!e development of online +anking

in t!e world, one can sa t!at t!e 7uropean countries are still t!e leader of t!e use of newest

+anking tec!nologies and online +anking 8Pun et al, '((',p*@49* According to a stud, less

t!an )3 percent of +anks wit! transactional we+sites will reali-e profits directl attri+uta+le

to t!ose sites8Courc!anne et al,'((', p*43;9* 76+anking !as affected customers.

expectations as +ank.s clients prefer to deal wit! +anks t!at offer en!anced, well6organi-ed,

professional and innovative services* Banks !ave to +ring improved $ualit services to t!eir

customers to survive in t!is vulnera+le environment 8ppal, '((2,p*5;9* #!ere are man

forces t!at !ave an effect on +anks to develop t!eir online +anking services* One of t!em is

to reduce t!e cost of t!eir services* Dit! t!e online c!annels, +anks can eliminate costltransactions + reducing t!e num+er of +ranc!es* New p!sical locations !ave !ig! starting

up costs and online services and A#& +anking reduces t!e need of new +ranc!es* #!e

freedom of no time limitation and t!e +enefit of low6cost services can +e considered

t!erefore t!e ke reasons +e!ind t!e development of online +anking services 8Ro+inson #,

'(((,p* )(;9* &an firms adapt rapidl to c!anges in internet and tec!nolog* &an

companies improve t!eir +usiness efficienc and service $ualit via new applications in t!e

internet, and attracting new customers8Nat!, et al*,'((),p*')9

!" De2elo,ment of Conce,tual 4rame3ork

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$!" Re*earc0 5et0odolog

3*) Researc! %esign

#!e conceptual framework work s!ows t!at t!ere is a direct relations!ip +etween t!e

independent varia+les and t!e dependent one* But it will +e important to explore t!e tpe /intensit of t!is relations!ip so t!at t!e earlier mentioned purpose of t!e stud can +e met*

#!e stud will ena+le t!e +ank to understand t!e factors influencing customer satisfaction

and identif service gap in t!ese factors* #!us t!e can plan t!eir future plan of action or

strategies to keep strong !old of t!eir current customer +ase*

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Internet Banking

Inter,er*onal Relation*0i,

/er2ice 6ualit

Customer

Satisfatio!


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3*' Sampling

A total of 4( customers to +e interviewed from &ali+ag! +ranc! a sstematic random

sampling met!od is to +e used w!ere ever 4rd customer arriving in t!e +ranc! will +e

contacted* Among t!ose w!oever fall under t!e criteria of !olding an account for more t!an

a ear / visiting t!e +ranc! at least once ever two weeks will +e interviewed*

3*4 &easurement Instrument:uestionnaire

A close ended definitive scale $uestionnaire !as +een used to collect surve data* #!ere is

also a gender and occupation of t!e $uestionnaire* #!ere is two Faria+le %ependent and

Independent*

#!e $uestions are set in statement format w!ere respondents are given a five point Likert

scale to rate t!eir level of agreement* #!e $uestionnaire is designed to assess t!e existing

relation +etween dependent / independent varia+les* #!e statements are all set in a positive#one following laddering tec!ni$ue to collect responses on eac! of t!e varia+les* 7ac!

varia+le !ave t!eir own constructs* ) to 4 are constructs for Customer Satisfaction

#!en ; to 5 are constructs for customer service *@and 2 are construct for interpersonal

relations!ip 1and$)( are internet +anking*

3*; %ata Collection

#!is !as +een done from )(t! April to )3t! April, '()' in &ali+ag! +ranc!* %ata is collected

during ; das full +anking !our for eac! of t!is +ranc!*

3*3 %ata Analsis

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#!is is done using &s 7xcel

!" Re*ult*

#!e data o+tained from t!e researc! are anal-ed t!roug! &s 7xcel average +asis* All result

S!own in average* Result r given +elow and also s!ow some c!art*

GenderMale 47%

Female 53%

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"igureJ )

In t!e a+ove mention c!art s!ows t!e gender* In t!e $uestionnaire sample, gender is ;@

percent and female is 34 percent respondent*

O!"a#ion

$erie &older 50%

$#!den# 7.14%

'!siness 21.42%

o!se i*e 21.42%

"igureJ'15


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#!e respondents are 3( percent is service !older* @*); percent is student* ')*;' is

+usinessmen* ')*;' is !ousewife* #!e +ar grap! s!ows t!at service !older is !ig!l

respondent*

+!s#omer serie

,o# sa#is*ied 23%

Modera#e 47%

$a#is*ied 30%

"igureJ4

#!is pie c!art s!ows customer service w!ic! +ank provide* ?ere most of t!e respondent is

moderate* Not satisfied is '4percent, satisfied is 4( percent* D!ic! is ver lowK

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-n#er"ersonal rela#ion

,o# sa#is*ied 30%

Modera#e 53%

$a#is*ied 17%

"igureJ;

In t!e interpersonal relations!ip, customers are !ig!l moderate w!ic! percent is 34* But 4(

percent customers are not +elief t!is relation* On t!e ot!er !and )@ percent customer is

satisfied wit! interpersonal relation*

-n#erne# 'ankin

,o# sa#is*ied 63%

Modera#e 7%

$a#is*ied 30%

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"igureJ3

?ere t!is grap! s!ows satisfaction la+el of customer a+out internet +anking*54 percent

customer are not satisfied t!ere internet +anking t!is s!ows t!at t!e lose t!eir customer

onl for internet +anking* On t!e ot!er !and 4( percent are satisfied w!ic! is ver few* @

percent is moderate

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#!" Recommendation

NCC +ank Ltd, Banglades! seems to !ave received good level of satisfaction from its

existing account !olders* #!e interpersonal relations!ip +etween t!e customers andemploees are also !ig!* Bot! of t!ese positivel drive customer satisfaction* ?owever, in

t!is researc! context, a weak relations!ip is found +etween internet +anking so, +ank needs

to put some effort to maintain t!is service* Customer satisfaction in suc! competitive market

situation via ensuring +est possi+le $ualit management in terms of offices internal

environment, customer attendant / efficient complaint !andling* On t!e ot!er !and, a ver

good sign is customer.s service and interpersonal relations!ip* Since NCC +ank Ltd, cannot

control its external environment suc! as competition +e!avior +ut it can at least take a step

of its own via communicating t!at c!anging +ank is !assle / undesired w!en customers can

!ave some additional +enefits from t!eir existing +ank* #!ese additional +enefits s!ould +e

somet!ing to su+stitute competitive lag in terms of internet +anking* Overall, working on

customer satisfaction, customer service, interpersonal relations!ip seem important since all

t!ese !ave moderate relations!ip wit! Customer satisfaction* Internet +anking, s!ould

develop recentl ot!erwise +ank lose t!eir customer*

'!" Conclu*ion

In a nuts!ell, NCC +ank Ltd, Banglades! seems to !ave accepta+le level of satisfaction /

interpersonal relation wit! its customers* But internet +anking in t!is countr !ave +roug!t

in revolutionar c!ange in +anking service at it !as made it muc! faster, easier / !assle

free* Looking in to t!e future, t!ere seems to +e no alternative option to su+stitute t!is

internet +anking service* 7ven t!oug! satisfaction is moderate, NCC +ank s!ould tr /

adopt t!is as earl as possi+le and till its introduction s!ould retain its customers t!roug!

offering t!em some additional value added service* ?owever, a separate stud needs to +e

conducted on eac! of t!ose varia+les to understand t!em +etter*

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Reference*

Alomaim, N*, #unca, *&*, airi, &* 8'((49* Customer Satisfaction MFirtual aaaa aaaaaaaa Organi-ation* &anagement %ecision* pp* 55@65@(*

Bennett, R*, Rundle6#!iele, S* 8'((;9* Customer satisfaction s!ould not +e t!e onl goal*aaaaJournal of Services Marketing* Fol* )2 No* @, pp* 3);63'@*

Bemmaor, A*C* 8)1139* Predicting +e!avior from intention6to6+u measuresJ t!e aaaa

aaaaparametric case*Journal of Marketing Research* Fol* 4' No* ', pp* )@561)*

?ansemark, C*O*, Al+inson, &* 8'((;9* Customer Satisfaction and RetentionJ #!e aaaa

aaaa 7xperiences of Individual 7mploees*Managing Service Qualit* Fol* ); No*4,aaaapp*;(63@

?ellier, =*P*, eursen, &**, Carr, A*R*, Rickard, A*>* 8'((49* Customer Repurc!aseaaaa Intention*!uropean Journal of Marketing* Fol* 4@ No* )):)', pp* )@5'6)2((*

>ones, A*&*, Su!, >* 8'(((9* #ransaction Specific Satisfaction and Overall SatisfactionJaaaa An 7mpirical Analsis* >ournal of Service &arketing* Fol* );, pp* );@6)31*

&uffatto, &*, Pani--olo, R* 8)1139* A Process6+ased Fiew for Customer Satisfaction*

International Journal of Qualit an" Relia#ilit Management* Fol* )' No* 1,

pp* )3;6)51*

Fukmir, B*R* 8'((59* Customer Satisfaction. International Journal of $ealth Care. Fol* )1

?effernan* #, ?awke* A, 8'((59* Interpersonal Linking in lender6customer relations!ip in

aaaa t!e Australian +anking sector*International %ournal of #ank marketing* Fol*'; No*aaaa 4, pp );(6)3@

Olivan "*>*S, Redondo H*P, Lope- >*P*&, 8'((59 #!e impact of customer relations!ipaaaa c!aracteristics on customer switc!ing +e!avior* &anaging Service ualit* Fol* )5 No*

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=otler, P* / Armstrong, * 8'()(9, Principles of &arketing, )4t! ed* New >erseJ Prentice?all*

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Communications niversit, Husong6gu, ?waam6dong, #ae0on 4(364;2, Sout! =orea*

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Aladwani Adel &* 8'(()9 Online +ankingJ a field stud of drivers, development

c!allenges, and expectations, International >ournal of Information &anagement, Fol ')*

Bauer =, Scott 7* ?ein* 8'((59 #!e effect of !eterogeneous risk on t!e earl adoption of

Internet +anking #ec!nologies, >ournal of Banking / "inance, Fol 4(*

Calisir ", Cigdem Altin umusso*8'((29, Internet +anking versus ot!er +anking c!annelsJHoung consumers. view, International >ournal of Information management volume ')

Carlson, >*, "urst, =*, Lang, D*D*, and Nolle, %* 7* 8'(((9 Internet BankingJ &arket

%evelopments and Regulator Issues #!e New 7conomJ D!at ?as C!anged, and t!e

C!allenges for 7conomic Polic* Societ of overnment 7conomists Conference*Das!ington, %C*

Courc!ane &, %avid Nickerson , Ric!ard Sullivan* 8'(('9 Investment in internet+anking as a real optionJ t!eor and tests, >ournal of &ultinational "inancial

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Customer Satisfaction of NCC bank

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