Md. hashibur rahman (internship report)

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INTERNSHIP REPORT

ON

Priority Banking Service in Bangladesh

Course Code- INT 4399

Course Title- Internship/ Project

Fall Semester 2012

Prepared for

Sarker Rafij Ahmed Ratan

Assistant Professor

School of Business and Economics

United International University (UIU)

Prepared by

Md. Hashibur Rahman

ID: 111 081 203



Date of Submission: December 12, 2012

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“Priority Banking Service in Bangladesh”

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Course Code: INT 4399

Course Title: Internship/Project

Fall Semester: 2012

Submitted To


Assistant Professor

School of Business & Economics

United International University

Submitted By

Md. Hashibur Rahman

ID: 111 081 203



Date of Submission: December 12, 2012

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Letter of Transmittal

December 12, 2012


Assistant Professor



Subject: Submission of Internship Report Based on ‘Priority Banking Services in Bangladesh’.

Dear Sir,

With due respect and humble submission, I am a student of BBA Department and already I have

completed 120 credit hours. I completed my internship under your kind of supervision and now I

want to submit my internship report which based on ‘Priority Banking Service in Bangladesh’. It

gives me immense pleasure to inform you that I have completed my internship report under your

kind hearted direct supervision and I learn so many things which help me in future.

Now, I want to place my internship report and for this reason I want your kind approval. I hope

my report will satisfy you.

Sincerely yours:

Md. Hashibur Rahman

ID# 111 081 203



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ACKNOWLEDGMENT All Praise To Almighty Allah

At first I am thankful to my Almighty Allah, who gives me the strength to complete this

internship report. Any comprehensive work such as this report must owe credit to multitude

people and their inspiration, guidance, financial and logical help needed. In preparing this report,

different persons have extended their helping hands to me. It would have not been possible for

me to prepare this report without their help. Certainly, I wish to express my profound gratitude to

my honorable intern supervisor Sarker Rafij Ahmed Ratan, Assistant Professor, School of

Business & Economics, United International University (UIU).

I am deeply grateful to Mr. MD. TAREQ UDDIN, (Assistant Vice President & In charge-

Imperial Banking, Retail Banking Division, UCBL) for giving me the opportunity to work in

UCBL. I also grateful to Mr. RASHED MD. KHAN, (Relationship Manager, Imperial

Banking, UCBL) and Mr. MOHAMMAD SHA SUJA (Relationship Manager, Imperial

Banking, UCBL), SHAHIDA AKHTER KHANAM (Associate Relationship Manager,

Imperial Banking, UCBL) for guiding me to prepare this report.

I am also obliged to MD.FORHAD HOSSAIN, (Senior Vice President & Head of Mirpur

Road branch, UCBL) and MOHAMMAD SALIM ULLAH, (Assistant Vice President &

Operation Manager of Mirpur Road branch, UCBL) for giving me the opportunity to work

and gather practical experience.

I would like to convey my thanks to all officers of Mirpur Road Branch for their help, valuable

suggestions and contributions that have helped me much to learn many new things and also to

preparing this report. I also like to thank all other employee of Mirpur Road Branch for giving

me suggestions and facilitating this internship report. I would like to give thanks to all the

respondents for their participation and giving me their valuable time to prepare this report and

their opinion. I am indebted to those websites that indirectly helped me in completing my

internship report.

And last but not the least, no words can adequately express my earnest gratitude to my family

members and friends whose support help me in all the way.

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Declaration

I confirm that the Internship Report titled “Priority Banking Service in Bangladesh” is being

submitted for the internship part of my BBA program is the original work carried out by me. It

has not formed the part of any other reports submitted as internship report either in this or any

other University.

Thanks and Regards

Yours Truly

----------------------------

Md. Hashibur Rahman

ID # 111 081 203

BBA Department


I certify that the declaration made above by the Student is true.

-----------------------------------


Assistant Professor



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Executive Summary

Priority Banking Service is relatively new, innovative and becoming popular for its services

facilities in the banking context of Bangladesh. Different local banks and other commercial

organizations are moving towards Priority Banking Service as their daily routine. Once the

customers are entitled for Priority Banking Service, customers get some extra value added

service benefits which are not being offered to any regular or normal customer. The main motive

of this service is to retain & attract the high net-worth customers and increase their financial

portfolio. Priority Banking Service was first introduced by HSBC in 2005 in Bangladesh,

followed by Standard chartered Bank. Other local banks are also introducing Priority Banking,

but they are not that much well equipped with resources to complete with the current Multi-

national banks. They don’t follow any common or international standards due to lack of research

and development (R&D). Moreover Bangladesh Bank has not yet intervened any set of

guidelines or instruction for Priority Banking Service which may lead to frauds and forgery.

Services provided by the local banks may arise confusion to the customers since there is no

common standards followed by every bank, the current services offered varies from bank to

bank. However, Priority Banking Service is moving towards a new dimension for entire banking

industry in Bangladesh as it is developing fast. Targeting a different prospective client will

definitely help in growing existing customers database, therefore this is the going to be main

reason to introduce Priority Banking Service in Bangladesh. The emerging prospect of this new

segment can be reason of business growth, if properly practiced as per international standard.

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TTOO PPIICC PPAA GGEE

PPRREEFFAACCEE II --VV

Name of the Authors I

Letter of Transmittal II

Acknowledgement III

Declaration IV

Executive Summery V

Chapter 1: Introduction

1-5

1.1 Introduction 1

1.2 Origin of the Report 2

1.3 Scope of the Study 2

1.4 Objective of The Report 3

1.5 Methodologies 4

1.6 Limitation of the Study 5

Chapter 2: Overview of Priority Banking Service

6-9

2.1 Overview of Priority Banking Service 6 2.2 History of Priority Banking Service 6

2.3 Facilities of Priority Banking Service 7

2.4 Priority Banking Service In Bangladesh 8

2.5 List Of Priority Banking Service Provider In Bangladesh 9

Chapter 3: Priority Banking Service In Bangladesh

11-21

33..11 United Commercial Bank Ltd. (UCB) 11

3.1.1 General Information 11

3.1.2 Facilities for Clients 11

3.1.3 Eligibility for Clients 12

3.2 Hongkong & Shanghai Banking Corporation (HSBC) 1133




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3.3 BRAC Bank 14




3.4 Standard Chartered Bank Ltd. 16


3.4.2 Facilities for Clients 16 3.4.3 Eligibility for Clients 17

3.5 Eastern Bank Ltd. (EBL) 17

3.5.1 General Information 17 3.5.2 Facilities for Clients 17 3.5.3 Eligibility for Clients 18 3.6 Mutual Trust Bank Ltd. 19

3.6.1 General Information 19 3.6.2 Facilities for Clients 19 3.6.3 Eligibility for Clients 20

Visiting Card of Different Bank’s In-charge of Priority Banking Service 21

Chapter 4:Priority (Imperial) Banking Service in UCBL

22-37

4.1 Overview Of Imperial Banking Service in UCB 22

4.2 Proposed Operating Location 23

4.3 Organogram 24

4.4 Value Proposition 24

4.5 Service Proposition 25

4.6 Imperial Banking Service Offerings 26

4.7 Eligibility Criteria for UCB IMPERIAL & Criteria to remain Eligible 28

4.8 Target Customer 29

4.9 Source of prospective Clients 29

4.10 Area Based Existing Customer of UCBL who are eligible for Imperial 30

4.11 Source of Client Acquisition 31

4.12 Operation Module 31

4.13 Document Needed for Imperial Account 32

4.14 Financial stipulation 33

4.15 Cancellation of Priority Service 34

4.16 Future Proposition 34

4.17 Instruction Manual 34

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4.18 Address of UCB Imperial Banking Service 36

4.19 Picture of UCBL Imperial 37

Chapter 5: Comparison Of Priority Banking Service in BD

5.1 General Comparison 39

5.2 Comparison of Facilities 40

5.2.1 Table & Chart 41

5.2.2 Graphical Comparison 42

Chapter 6: United Commercial Bank Ltd. (UCBL)

43-51

6.1 Over View Of United Commercial Bank Ltd. (UCBL) 43

6.2 Vision, Mission and Corporate culture 44

6.3 Board of Directors 45

6.4 Products and Services 46

6.5 Other Information 46

6.6 Financial Position in a Glance 47

6.7 General Banking 49

6.7.1 Account Opening Section 49

6.7.2 Deposit Section 49

6.7.3 Cash Section 50

6.7.4 Local Remittance Section 50

6.7.5 Clearing Section 51

Chapter 7: Findings, Recommendation & Conclusion

52-57

7.1 Findings 52 7.2 Recommendation 53

7.2.1 Recommendation for Priority Banking Service 53

7.2.2 Recommendation for Imperial Banking Service

54

7.2.3 Recommendation for UCB (General Banking) 55

7.3 Conclusion 57

BIBLIOGRAPHY 58

APPENDIX 59

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Introduction

Origin of the Report

Scope of the Study

Objective of The Report

Broad Objective

Specific objective

Additional Objective

Methodologies

Primary Data

Secondary Data

Limitation of the Study

Chapter-1

Introduction

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Bangladesh is a developing country. The financial institutions especially banks have undergone a

tremendous change in recent phew years due to contribution in the economic growth of the

country, technological innovation, diversified needs of the customers, security and high

competition. In Bangladesh, the Banking service today plays a vital role in our economic

development and now it is one of the most leading, promising and established sector. Every bank

deals with the most important factor of the economy that is Money. It flows funds from surplus

unit to deficit unit and through this it facilitated the efficient allocation of the resources as well as

it accelerated the economic growth. Private Banks are playing an important role compare to the

government bank in the country. They always try to expand their business. For this, they are

offering various new products and new services to fulfill the needs and demands of customer by

providing more customized service. In recent phew years, for the Customer interest different

banking sector offer Priority Banking Service in Bangladesh. This Priority Banking Service is

moving towards a new dimension as it is developing fast due to competition, deregulation, and

better and customized service than ever before.

As the place of globalization competition, banking sector is developing very fast. Banks are

becoming more customers oriented and offer High tech customized products to its target market

to grasp the market. Central bank ‘Bangladesh Bank’ always keeps monitoring those banks of

our country, measure each banks performances. Individual banks also need to assess their own

performance to satisfy the parties those are related to its growth. All this things are the reasons

for offering and establishing Priority Banking Service in Bangladesh.

Internship program is essential for all BBA students because it help them to acquire different

knowledge and survive in real life situation. Bank is one of the important institutions to acquire

the real life experience. So I have selected ‘United Commercial Bank limited (UCBL)’, which is

now one of the leading private commercial banks in Bangladesh. In Bangladesh Priority Banking

Service is innovative and becoming popular, for this reason I prepared my internship report on

“Priority Banking Service in Bangladesh”.

1.1 Introduction

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1.2 Origin of The Report

Internship is one kind of program which helps a student to have a complete idea and gather

knowledge and experience of full time job experience and also internship fulfill the partial

requirement of Bachelor of Business Administration (BBA) program. Since the banking is a

prosperous sector, I have chosen “United Commercial Bank limited (UCBL)” for the completion

of this internship program. Priority Banking Service is newly added service in UCBL. This

report mainly focuses on ‘Priority Banking Service in Bangladesh’.

1.3 Scope of the Study

Predominantly UCB has been indentified and perceived as a bank working in the corporate

arena. With introduction of retail banking, the image is gradually shifting where individuals have

started to believe that UCB is not only a bank where the corporate clients are only entertained;

this is also the bank where individual banking needs is being attended. Since the launch of Retail

Banking in February 2009 the bank has achieved considerable business growth and in a very

short time the bank has established itself as one of the leading brands in Retail Banking Sector

thought wide range of personal banking products. Retail success has always been the organic

growth from its high-end segment of customers. In order to retain, deepen and grow this niche

market and to recognize and reward their value to the bank, it is felt that there is a need to

provide differentiated service to them. UCB IMPERIAL (Priority Banking) Customers service to

attract them to do lifestyle banking with UCB. It is more than the customer expectation.

This report mainly focuses on ‘Priority banking service in Bangladesh’ as well as the general

banking in UCB. I am working in the Imperial Banking service in Mirpur Road

Branch and this provides me the way to get myself familiarized with Priority banking

service as well as the General banking environment. I have an opportunity to gather experience

by working in Imperial banking service and different departments of General banking of Mirpur

Road Branch.

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1.4 Objective of The Report

Broad Objective :

The broad purpose of this study is to gain practical knowledge about the operation of financial

institution like bank (UCBL) to fulfill the partial requirement of the internship program as full

credit subject of the BBA program. Priority Banking Service is a new service for financial

institution like in a Bank in Bangladesh. This report is to provide a general description of the

initial and present status of ‘Priority Banking Service in Bangladesh’.

Specific Objective :

The following aspects can be listed as the specific objectives:

To apply the theoretical knowledge in the practical field.

To know about the ‘Priority Banking Service in Bangladesh’.

To measure the overall Status of ‘Priority Banking Service in Bangladesh’.

To identify the products and services, different facilities, activities and Eligibility criteria

for Priority Banking Service.

To find out the different lacking and recommendation (solution) for ‘Priority Banking

Service in Bangladesh’.

Additional Objective :

To observe the working environment in United Commercial Bank Limited (UCBL).

To know the General Banking, General Advance and Foreign Exchange Advance of

United Commercial Bank Limited UCBL.

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1.5 Methodologies

For smooth and accurate study I have emphasized on the practical observation with following

some roles and regulation. In the time of preparing the report, I have taken all the information

from two sources:

Primary Data :

Primary data were mostly derived from the discussion with the employees

and personal experience during Internship period. I have collected primary information under

consideration in the following manner:

Face-to-face conversation with the respective officers and staffs.

Direct observation.

Hearing conversation between respective officers and Clients.

Different relevant information sent by Head Office of UCBL.

Relevant file study as provided by the officers concerned.

Practical work exposures from the different desks of the departments of the Branch

covered.

Secondary Data :

I have taken the help from different types of secondary data in my report. The

sources of those data can be categorized as follows:

From UCBL Brusher and Other Banks Brusher.

Different books and periodicals related to ‘Priority Banking Service in Bangladesh’.

Face-to-face conversation and observation with the relevant officers and staffs in other

Bank that provide Priority Banking Service.

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1.6 Limitation of the Study

‘Priority Banking Service’ is new service facility for all available Banks in Bangladesh that

started from recent phew years. That’s why enough information is not available in internet about

‘Priority Banking Service in Bangladesh’. Moreover due to the security reason and

confidentiality, all the bank personnel usually don’t want to disclose all the information about

their Priority Banking Service and also enough information is not available in their website. The

entire bank that is providing Priority Banking Service has some limitations to disclose all

the information. Time is another major limitation’s because the duration of the program was

three months only and being a temporary member of the organization, it was not

possible on my part to notice or express some of the sensitive issues and other aspects.

However the some of the limitations I have face while preparing this Report are listed as follows:

Limitation of information because Information is not available in internet and different

bank website.

Every bank that provides Priority Banking Service has their own secrecy that is not

revealed to others. While collecting data, interviewing the employees, they did not

disclose much information for the sake of the confidentiality of the organization.

It was very difficult to collect the information from various personnel for their job

restriction.

It was difficult to communicate with the customer, as many of them were unable to give

me much time for interview.

In many case up-to-date information was not available.

Time is also a big constraint for my study. I have to submit a broader deal in a shorter

form of outcome.

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Overview of Priority Banking Service

History of Priority Banking Service

Facilities of Priority Banking Service

Priority Banking Service In Bangladesh

List Of Priority Banking Service Provider In Bangladesh

Chapter-2

Overview of

Priority Banking Service

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2.1 Overview of Priority Banking Service

Priority Banking Service is relatively new in the banking context. Priority banking service is

the banking service that gives much more priority to high valued and first class customer. In this

form of banking, the bank identifies its priority customers (often customers with deposits above

30 lakh-however this is different for each individual bank) and some special privileges are

provided to these first class or high valued customers by the bank. Ex. They do not have to wait

in the queue for transactions, given priority based service, free cheque book & debit card, instant

account information & access ability. They are assigned clients with dedicated relationship

managers to take care of all their daily banking needs. These customers can use banks premises

that are known as lounge for holding meetings, can access the Internet free of cost, online bill

pay, financial consultation and several other benefits are also provided. The basic purpose of this

form of banking is to make the experience of banking hassle free and less time consuming. This

is not to be confused with wealth management where the thrust is on providing first-class or high

valued customers customized services and expert advice on various financial needs. This is

generally carried out by the wealth managers of the bank. However priority banking as part of its

service offerings may include wealth management. Priority banking may also be offered as a

promotional offer for new customers.

2.2 History of Priority Banking Service

Many people in every country have enough money. They are rich and they have less time,

because they are involving in several work. Different banks try to realize that they can do

something for this type of people. If the bank offers new service which helps this rich people,

safe their time and if this new service become profitable for both this type of rich people, clients

and for the bank then it will be better for the bank. From this realization different banks lance a

new service for the rich and first class people known as Priority Banking Service. By this service

bank offer different new service and privilege for their clients, high valued and first class

customer. The main purpose of Priority banking service is to serve the clients. It means this

service offer for the clients and attracts the customer. In the globalization, competition is high

http://www.businessdictionary.com/definition/online.html

http://www.businessdictionary.com/definition/bill-pay.html

http://www.businessdictionary.com/definition/bill-pay.html

http://www.businessdictionary.com/definition/financial.html

http://www.businessdictionary.com/definition/consultation.html

http://www.businessdictionary.com/definition/offer.html

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and that’s why all banks offering various new products and new services to attract the customer

and fulfill the needs and demands of customer by providing more customized service to grasp the

market. For this reasons, different bank wish to release Priority Banking Service for their high

valued and targeted customer. First HSBC and Standard chartered bank (SCB) open priority

banking service for serve their special clients who are doing business internationally. Then they

try to serve the individual customer. After a certain moment other banks interested to open this

service for serve their client. At present not only in Bangladesh but also outside of Bangladesh

different private bank lunch Priority Banking Service. Priority banking service is now getting

response and popularity. Different types of other private and public organization are moving

towards priority based service only because of better service and getting response from clients.

2.3 Facilities of Priority Banking Service

Under Priority banking service the customer enjoys exclusive Privilege across wide range of

products & services. From my observation I notice that different banks offer different Special

service to attract the customer as their Priority banking service. Some common privilege services

provided are as: -

Priority based service at all bank branches and through Customer Care.

Instant account statement & access ability.

Can use Banks lounge for holding meetings.

Preferential rate on purchase of Bank pure gold and foreign exchange.

Discount on annual fee for safe deposit locker.

Special rates on Bank loans.

Preferential rate on DD/ PO charges.

Multi-city and special cheque book which different from others.

Free cheque book & debit card.

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Waiver on account and credit card related charges.

Assigned client a dedicated Relationship Managers to take care of all their banking needs.

Financial consultation.

Different types of gift and special logo/ sticker that identify high valued customer.

Where don’t have lounge, can use bank branch manager (branch head) room.

Several other benefits are also provided.

Discount in hotel, restaurant, shops, hospital etc.

2.4 Priority Banking Service In Bangladesh

Bangladeshi banking sector are becoming more customers oriented. In Bangladesh there are

about 78 banks exist right now. The financial system of Bangladesh consists of Bangladesh Bank

(BB) as the central bank, 4 State Owned Commercial Banks (SCB), 5 government owned

specialized banks, 30 domestic private banks, 9 foreign banks and 29 non-bank financial

institutions. Moreover, MRA has given license to 298 Micro-credit Organizations. The financial

system also embraces insurance companies, stock exchanges and co-operative banks. In

Bangladesh Priority Banking Service is innovative and becoming popular for its services

facilities that is providing by the bank as they promises. Under priority banking service a

customer get all the support that they need. Although all bank take care of their entire customer

but all customer are not same. Some are high valued customer; some are like valuable customer

but not as like high valued customer and rest others are general customer. The expectation of

high valued and first class customers and general customer is not same. High valued customer

and first class customer need more customized service to safe their valuable time. For their

valuable time bank provide all the service that they need. Under the Priority Banking service

bank provide this service but that particular customer should be a priority customer. He/ She

need to fulfill the requirement of priority banking condition. If a client or customers fulfill the

requirement of priority banking condition then he/ she will be a priority customer and from that

time bank will give different privileges. Bank will take extra care of that priority customer. At



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present about seven banks offer this Priority Banking Service for their high valued customer in

Bangladesh.

In Bangladesh all the bank those offer Priority Banking Service are getting positive response

from the customer and customer use the privileges as a priority customer. Some people, who

have enough money to keep in a bank, are looking for Priority Banking Service. Their intension

is like that, they has to keep money in a bank, so if they get enough service from the bank which

safe their time and reduce their tension, will better for them. As a result they are going forward to

Priority Banking Service. Different bank lance Priority Banking Service that’s whey competition

is high. All the banks try to provide more new service from others to attract the customer. For

that reason Priority Banking Service is not same in all banks, although it seems to some service

are common for the customer. Customer always wants more customized service as their

requirement that’s why the entire bank moving towards Priority Banking Service.

2.5 List Of Priority Banking Service Provider In Bangladesh

The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4

State Owned Commercial Banks (SCB), 5 government owned specialized banks, 30 domestic

private banks, 9 foreign banks and 29 non-bank financial institutions. But all banks are not open

priority banking service yet. Some bank try to grab the market by this service but their priority

banking service system is not working fully because all banks launch it for the first time in

Bangladesh. Some private banks lance priority banking service in Bangladesh which is given

below with name of the bank and their logo, their priority banking service name and its logo.

Name of the Bank with Bank Logo Priority Banking

Service Name


Logo

United Commercial Bank Ltd. (UCB)

IMPERIAL

BANKING

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Hongkong & Shanghai Banking

Corporation (HSBC)

SELECT

BRAC Bank

PRIMIUM

BANKING

PRIMIUM

Banking

Standard Chartered Bank Ltd.

PRIORITY

BANKING

Eastern Bank Ltd. (EBL)

PRIORITY

BANKING

Mutual Trust Bank Ltd.

PRIVILEGE

BANKING

ICBI

PRIVILEGE

BANKING

Privilege

BANKING

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United Commercial Bank Ltd. (UCB)

Hongkong & Shanghai Banking Corporation (HSBC)

BRAC Bank

Standard Chartered Bank Ltd.

Eastern Bank Ltd. (EBL)

Mutual Trust Bank Ltd.

Chapter-3


in Bangladesh

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3.1 United Commercial Bank Ltd. (UCB)

3.1.1 General Information:

UCB starts its priority banking in 3rd

June 2012. The current name of UCB priority banking is

Imperial. Retail Banking Division hereby proposes to rename “UCB Royal” as “UCB

IMPERIAL” for its Priority Banking concern. Imperial is more than privilege banking services.

It is about recognizing its client’s needs and making their wealth come alive through Returns,

Rewards and relationships. UCB Imperial banking product proposition offers banking,

borrowing, protection and investment, exclusive new products along with a high level of service

by professional relationship managers to meet its client’s specific needs. The dominating factors

that drive the concept of Imperial Banking is “To Retain & Attract the High Net-Worth

Customers”. UCBL has currently 2 Lounge for serve their client.

3.1.2 Facilities for Clients:

UCB Imperial Clients are entitled to access certain benefits and Preferred Pricing structured.

They are allowed to entrance certain benefits like:

Imperial Lounge and Branch Privilege

Exclusive cash transaction environment

Always fresh currency notes

Preferential allocation of locker upon availability.

Hotel/ Hospital/ Air ticket/ Rail way ticket booking

Monthly/Quarterly statement; Monthly E-statement free

Free SMS after every transaction to ensure safety of transaction.

Preferential attention in all UCB branches

Dedicated Relationship Manager

Home delivery service (Non cash Items)

Credit Card Privileges

Preferential Rates in Retail Products

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Fast track loan processing

Travel concierge services

Medical Facilities

Children's Savings Account (Cross-Selling)

Direct Benefits: waiver of Charges

Dual Currency Debit card

Referral Program

Complementary Monthly Magazines (delivery at home/office)

3.1.3 Eligibility for Clients:

Minimum Average Balance Requirement:

Customer needs to maintain a minimum balance of BDT 30, 00,000.00 (Taka Three

Million) per month in either Savings or Current Account or in combination of

Savings and Current Account.

For Fixed Deposit, the minimum amount would have to be Tk. 40, 00,000.00 (Taka

Four Million).

Customer maintaining BDT 30, 00,000 Savings/ Current deposit with 10, 00,000 or

more as loan can be enrolled as Imperial Member.

Special enrolment for socially renowned client, reference from Management or Board

(People who will be a spokesperson and opinion leader, having good balance in other

competitive banks and already availing such facility with other bank).

Criteria to remain eligible are as follows:

Clients must maintain UCB Imperial Deposit minimum six month’s relationship

with sufficient funds to cover the minimum balance requirement.

And/ or any other criteria as UCB may determine at its discretion from time to time.

[UCBL Imperial Broacher, 2012]

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3.2 Hongkong & Shanghai Banking Corporation (HSBC)


HSBC starts its priority banking in 1st January 2005 in Bangladesh. The current name of HSBC

priority banking service is ‘Select’ for only Bangladesh but for international it is ‘premier’. This

Select service is under control by Retail Banking Division. HSBC Select is having a bank that

personally takes care of its clients finances. It is design for the select for few who demand

immediate, undivided attention. HSBC Select is a highly specialized proposition offering

unprecedented levels of exclusive services. HSBC Select customer will be privy to superior

facilities, preferential pricing and a seamless, streamlined style of banking, affording them

greater freedom in personal and financial fronts. HSBC has currently 5 Lounge in Bangladesh

for serve their client.


HSBC Select Clients are entitled to get exclusive privileges, like:

Dedicated Relationship Manager

Exclusive Privileges in Hotel, Accommodations and Airport Services

Privileged access

Pre-approved overdraft facility

Preferential pricing

Waiver of fees on selected services

Greater Credit limits

Higher ATM limits

Free ATM cash withdrawals from any visa marked ATMs within Bangladesh

Privileged services at Hazrat Shahjalal International airport

Visa Gold International Credit Card & HSBC Global Select ATM Card

Commission free Endorsement

Emergency Cash Disbursement

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HSBC Select is an exclusive proposition for customers who maintain a total monthly deposit

balance equivalent to BDT 40, 00,000 (Four Million Taka only) or more within HSBC in

Bangladesh. HSBC Select family package is an exclusive proposition for the family members of

customers who maintain a total monthly deposit balance equivalent to BDT 70, 00,000 (Seven

Million Taka only) or more with HSBC in Bangladesh. A maximum of three people from the

same family will be eligible to enjoy the HSBC Select Family Package. For HSBC Select Family

Package, the primary account holder will have to maintain a minimum monthly average balance

of BDT 40, 00,000 (Four Million Taka only) in order to be eligible.

[HSBC Select Broacher, 2012]

3.3 BRAC Bank


BRAC Bank Called their Premium client as Platinum Card holder and gives them free access to

the Balaka VIP Lounge at Hazrat Shahjalal International Airport and get free access and enjoy

other facilities in the Balaka Lounge. This service provides access to fast track and personal VIP

treatment. Platinum Privileges Exclusive Offers on Client’s Platinum Credit Card. BRAK Bank

has currently 10 Lounge in Bangladesh for serve their client.


Platinum Card holder Exclusive Privileges are given below:

Dedicated Relationship Manager for only serve Platinum Card Holders.

Instant Account information & free Statement.

Free access at BALAKA VIP Lounge in Hazrat Shahjalal International Airport.

Unique Priority airport arrival and departure service

Discount at PUROBI JEWELLERS

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Discount at OTOBI

Discounts in restaurants all over India

TEE off at top GOLF CLUBS around the world

Discount at GULSHAN GROUP of HOTELS

PRIORITY PASS (world’s largest independent airport lounge access program)

Visa SPEEDPASS

CONCIERGE service

Entertainment facilities

Emergency services



Customer needs to maintain a minimum balance of BDT 50, 00,000.00 (Taka Five




Five Million).


Clients must have to become a BRAC Platinum Card holder Deposit relationship


Any other changes as BRAC Bank may determine at its prudence from time to time.

[BRAC Primium Broacher, 2012]

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3.4 Standard Chartered Bank Ltd.


We all have different priorities in life. Is it securing our family’s financial future, Pursuing our

ambitions in life, spending more time on activities that Standard Chartered Bank are passionate

about or being recognized and rewarded for customers achievements, SCB priorities are usually

a combination of these and more. And they will continue to evolve and change over time. At

Standard Chartered Priority Banking SCB recognize that. Standard Chartered Priority Banking

Service known as ‘Priority Banking’ and it offers a total banking relationship that is anchored on

three pillars of commitment. 1. Priority Benefits 2.Priority Solution 3.Priority Service. SCB has

currently 5 Lounge for serve their client in Bangladesh.


Status, Convenience, Benefit or Wealth, SCB recognize it all. SCB provide special privileges,

like:

Global Recognition

Total Relationship Rewards

Reward Points Across Multiple Product Holdings

Credit Card Spend, Average Balances in Savings or Current Account, Outstanding

Balances of Loans.

Leading the way in Bangladesh

Service like Ask Once & It’s Done

Express Processing: Account Opening, Loan Disbursements

Dedicated Complaint Management: Guaranteed Response in 24 hrs

International Banking

Global Foreign Exchange Discounts at Travelex

Emergency Cash Facility

Family Recognition

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Priority status for spouse and children

Free Visa Platinum Credit Card & Platinum Debit Card







Four Million).


Clients have to maintain SCB Priority Deposit minimum three month’s relationship


And/ or any other criteria as SCB may determine at its discretion from time to time.

[SCB Priority Broacher, 2012]

3.5 Eastern Bank Ltd. (EBL)


EBL Priority banking is an exclusive banking service proposition offered to their most valued

clients like you. Their Priority Banking Service known as ‘Priority Banking’. EBL are dedicated

in providing a comprehensive range of banking services to help you both enhance your wealth

and enjoy a life full of privileges. They have dedicated relationship Managers are assigned to

take care of all your banking needs. For EBL service excellence in not just customer satisfaction,

but customer delight. EBL has currently 7 Lounge in Bangladesh for serve their client.


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Personal dedicated Relationship Manager

Complementary Dual currency Visa Signature debit card

Privileged access to 600 airport lounges worldwide.

Complementary membership/ discount on top hotels, restaurants, airlines, hospitals,

superstores.

Meet and greet service at Hazrat Shahjalal International Airport, Dhaka.

Fast track loan/ deposit application process

Prevailing interest rate on loan products

Higher ATM withdrawal limit

No minimum balance fee

Free unlimited times of cash withdrawals and deposits

Access to lockers at flexible hours without extra pay

Number of waivers in bank account services





Savings and Current Account as well as in Fixed Deposit.


Clients must have to maintain EBL Priority Deposit minimum three month’s

relationship with sufficient funds to cover the minimum balance requirement.

Any other change as EBL may establish at its discretion from time to time.

[EBL Priority Broacher, 2012]

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3.6 Mutual Trust Bank Ltd.


Mutual Trust Bank Ltd. (MTBL) Priority Banking Service is known as ‘Privilege Banking’.

MTBL starts its priority banking Service in 24th

March 2011. They choose Individual Fund as

their target customer but not any corporate or other fund. MTBL are getting average response

from their target customer. They started their Privilege Banking service with one lounge in

Gulshan area. They are providing customized service for their Privilege client. They provide

service as they are promises. Their Future plan is to serve properly to their existing customer as

well as new customer with more lounges facilities in different important area and they want to

become a trusted bank in Bangladesh.


Privileges as a Privilege Banking customer are entitled to special perks and benefits. Get ready to

be pampered; MTBL services are designed to put a smile on client face, Exclusive lifestyle

choices with MTBL partners. Below is a preview of MTBL privileged services:

Reduced lending rates

Waiver of fees on various products and services

Higher ATM withdrawal limit

Free internet Banking

Free Debit card

Discount on locker service

Special Debit card & Cheque books

Composite Statement

International Credit Card

Dedicated Lounges

Preferential and fast track service for loan application

Dedicated Personal relationship Manager

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Dedicated hotline at the Contact Centre

Free Internet Browsing at Privilege Centre

Exclusive Experiences at Hotel, Restaurants, Hospitals, Shops and Clubs.





Savings and Current Account as well as in Fixed Deposit.


Clients must maintain MTBL Privilege Deposit minimum three month’s

relationship with sufficient funds to cover the minimum balance requirement.

And/ or any other condition as MTBL may determine at its caution from time to

time.

[MTBL Privilege Broacher, 2012]

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In the time of my direct observation, I wes collect visiting Card of Different Bank’s In-charge &

Rilationship Manager (RM) of Priority Banking Service that are given below:

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Overview Of Imperial Banking Service in

UCB

Proposed Operating Location

Organogram

Value Proposition

Service Proposition

Imperial Banking Service Offerings

Eligibility Criteria for UCB IMPERIAL &

Criteria to remain Eligible

Target Customer

Source of prospective Clients

Area Based Existing Customer of UCBL who

are eligible for Imperial

Source of Client Acquisition

Operation Module

Document Needed For Imperial Account

Financial stipulation

Cancellation of Priority Service

Future Proposition

Instruction Manual

Address of UCB Imperial Banking

Service

Picture of UCBL Imperial

Chapter-4

Priority (Imperial)

Banking Service in UCBL

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“WELCOME TO THE MAGNIFICENT OF UCB IMPERIAL”

UCB imperial is more than privilege banking services. It is about recognizing customer needs

and making their wealth come alive through Returns, Rewards and relationships.

UCB Imperial banking product proposition offers banking, borrowing, protection and

investment, exclusive new products along with a high level of service by professional

relationship managers to meet customer specific needs.

4.1 Overview Of Imperial Banking Service in UCB

I found that since the launch of retail banking, UCB has achieved considerable business growth

in a very short time and UCB has established itself as one of the leading brands in Retail

Banking Sector through its wide range of personal (customized) banking products. A key

contributor to retail success has been the growth from its high-end segment of customers. This

segment constitutes less in number of customers but contributes a big percentage of total

consumer deposits. Serving a few High Net Worth clients in the portfolio would help to achieve

a major portion of the retail revenue. In order to retain, deepen and grow this segment, to

recognize and reward their value to the bank, it is felt that there is a need to provide

differentiated service to them in the form of “Imperial Banking”.

UCBL starts its priority banking in 3rd

June 2012. The current name of UCB priority banking is

Imperial. Retail Banking Division hereby proposes to rename “UCB Royal” as “UCB

IMPERIAL” for its Priority Banking concern. This change of identity has been proposed to keep

the synergy within the Retail top of the shelf products, which are in the line of offer for UCBL

very ultra high end individual customers including the following key Components:

• Tailoring services to individual client requirements

• Anticipation of clients needs

• A long-term relationship orientation

• Personal contact

• Discretion

37 | P a g e

The dominating factors that drive the concept of Imperial Banking is “To Retain & Attract the

High Net-Worth Customers”. Imperial Banking Enhance brand loyalty, Creates powerful brand

image, hence achieves competitive advantage that can retain existing market share and grab new

ones.

I notice that Imperial Banking focuses on 5 main things:

1. Professional: - Here UCBL have professional Dedicated Bankers to Meet customer

Financial Needs and Goals.

2. Personal: - Exclusive Lounges for proper delivery of Good and Quality Service.

3. Profitable: - UCBL have Dedicated Relationship Managers who ensures customer for

proper delivery of service and special pricing to meet your daily requirements.

4. Imperial: - UCBL provide the Red Carpet welcome to their Lounges by giving imperial

client UCBL Imperial Banking VIP Card.

5. All customer are Crowed to UCBL.

4.2 Proposed Operating Location

Relevant officer told me that their proposed operating location is mostly in the area of:

Inside Dhaka Outside Dhaka Gulshan 1 (Year 1)

Gulshan 2 (Year 1)

Banani (Year 1)

Uttara (Year 1)

Dhanmondi (Year 1)

Eskation/ Mogbazar (Year 2)

Mohammadpur (Year 2)

GEC- Chittagong (Year 1)

Agrabad-Chittagong (Year 1)

Sylhet (Year 3, on the basis of the

economic indicator)

Khulna (Year 3, on the basis of the

economic indicator)

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4.3 Organogram

In the time of my observation I notice that Center Manager will be FAVP & Above, under center

manager there will be RMs (SEO and above) and ARMs (SO and above). Moreover each lounge

will have Lounge Support Officer. Each lounge will have support staffs to keep the upkeep and

hygiene of the lounge, Peon and 2 runners to support the home delivery of the statements and

other non security items as requested by the customers.

4.4 Value Proposition

I find out that the key features of the value proposition for this segment will therefore be aligned

with the following characteristics:

Exclusive Service Proposition: Access to dedicated relationship manager and an exclusive

lounge to conduct all banking/business in comfort and privacy with relationship pricing

Head of Retail

Head of Imperial

Center Manager Gulshan Branch

Center Manager Mirpur Road Branch

Business Relationship manager

Support Lounge Support Officer

Business Relationship manager

ARM ARM

Support Lounge Support Officer

39 | P a g e

discounts and priority turnaround time for service delivery.

Sophisticated Lifestyle: Imperial clients will enjoy benefits with distinctive branding/gift,

rewards/discounts at key outlets which will be perceived as good value to customers and

something which they will aspire to.

4.5 Service Proposition

Premium Cards

Platinum Debit Cards

Platinum Credit Cards (VISA & Master)

Preferential Services

Dedicated Relationship Managers

Doorstep Banking

Branded Cheque Book

Preferential Pricing

Top up Loans

Standing Order

Travel in Style

Access to International airport lounge

Medical & legal referral overseas

Special Offers

Exclusive offers and discounts.

Lifestyle Offers

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4.6 Imperial Banking Service Offerings

Benefits and Preferred Pricing Provided by UCB:

a) UCB Imperial Clients are entitled to access certain benefits and Preferred Pricing

structured.

b) UCB reserved the right to amend or withdraw Imperial benefits and preferred Pricing at

any time upon giving prior notice.

Credit Charges:

a) UCB Imperial Clients are entitled to avail preferred Credit Pricing, With UCB reserves

the right to amend or withdraw at any time.

Fees and Charges:

a) Fees and Charges include Government charges.

b) All fees and Charges, including Government charges are subject to charge.

Imperial Lounge and Branch Privilege:

a) As an Imperial Client, Clients are allowed to use the Imperial Lounge. For branches

where Imperial Lounge/ Center are not present, Clients can direct their queries and

transactional needs to the branches Manager.

b) Any person other than Client himself/ herself bearing Imperial instruments is not eligible

to use Imperial Lounge and privileged services.

Exclusive cash transaction environment

Always fresh currency notes

Preferential allocation of locker upon availability.

Hotel/ Hospital/ Air ticket/ Rail way ticket booking

Monthly/Quarterly statement; Monthly E-statement free

Free SMS after every transaction to ensure safety of transaction.

Preferential attention in all UCB branches

Dedicated RM

Home delivery service (Non cash Items)

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Credit Card Privileges

Welcome Gift Pack

Pre Approved Credit Card (Duel Currency)

Complementary Credit Card For Spouse(if married)

Credit Limit from Tk. 5 Lac

2 Free Supplementary Credit Cards

No Temporary block of Cards

Preferential Rates in Retail Products:

1% to 1.5% less than the normal offering considering the previous historical volume

in Current/ Savings account only.

0.5% less service charge

50% Service charge for locker

Fast track loan processing

Travel concierge services

locating the best flights,

assisting with Visa requirements

Access to more than 600 international airport lounges worldwide to make use of

business facilities and refreshments.

Hotel booking assistance

Foreign currency purchase

Special protocol in arrival and departure lounge

Arrange pick and drop to airport (Fees applicable)

Travel loan (cross-selling)

Medical Facilities:

Treatment facilitation at affiliated hospitals

Medical Loan(cross-selling)

Children's Savings Account (Cross-Selling)

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Direct Benefits: waiver of Charges:

Ledger Fee

Cheque Book issuance Fee

Dollar Endorsement Fee

Bank Certificate and Bank Statement Assurance Fee

Debit Card Charge: BDT 100

On-Line Transaction Fee

Locker Fee 50% (Depending on the availability)

ATM withdrawal limits BDT 2, 00,000.

Dual Currency Debit card

Proximity Identification: Software that notifies RMs through SMS Or pop-ups to

computer every time a UCB Imperial comes in range of Priority lounge

Other Privileges: Invitation to Exclusive Events based on taste & Preferences

Referral Program: Generate reward points by referring a new member to priority family

and enjoy exclusive rewards for achieving targets.

Rewards like luxurious trip, Shopping vouchers, Complementary dining experience etc

Complementary Monthly Magazines (delivery at home/office)

4.7 Eligibility Criteria for UCB IMPERIAL

Minimum Average Balance Requirement Membership:

To be the client of UCB Imperial, Customer needs to maintain a minimum balance of

BDT 30, 00,000.00 (Taka Three Million) per month in either Savings or Current

Account or in combination of Savings and Current Account.


Four Million).

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Customer maintaining BDT 30, 00,000.00 Savings/ Current deposit with 10, 00,000

or more as loan can be enrolled as Imperial Member.

Special enrolment for socially renowned client, reference from Management or Board

(People who will be a spokesperson and opinion leader, having good balance in other

competitive banks and already availing such facility with other bank).


Client must maintain UCB Imperial Deposit relationship with sufficient funds to

cover the minimum balance requirement.

And/ or any other criteria as UCB may determine at its discretion from time to time.

4.8 Target Customer

Imperial banking is for the upscale retail customers; this service offering is aimed to attract high

net-worth individuals who require very personalized and customized banking solutions. UCB

choose Individual Fund as their target customer but not any corporate or other fund. Those who

have enough money to keep in bank they are also target customer for UCBL.

Existing Clients:

Referring friends

Referring Family

Referring work colleagues

Marketing & Promotion:

Advertising

PR Endorsement

Worksite Marketing

Staff

Poaching staff from competition

Intermediaries:

Financial advisors

Ambassadors

Top government officials

4.9 Source of prospective Clients

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I found that at present UCBL have some customer in different branches and place who are

eligible to become an Imperial client are shown below:

Sl No:- Name of the Branch Number of Customers

1 Agrabad Branch 26

2 Banani Branch 38

3 Dhanmondi Branch 47

4 Foreign Exchange Branch 50

5 Gulshan Branch 49

6 Jubilee Road Branch 44

7 Kawran Bazar Branch 7

8 Mohakhali Branch 37

9 Mohammadpur Branch 21

10 Principal Branch 75

11 Mirpur Road Branch 50

12 Shahjalal Upshore Branch 5

13 Shantinagar Branch 18

14 Shylet Branch 32

15 Tejgaon Branch 9

16 Zindabazar Branch 9

17 Zinzira Branch 4

TOTAL Number of Customers = 471

4.10 Area Based Existing Customer of UCBL

who are eligible for Imperial

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1. Organization-based:

Senior Management’s Personal Network

Branches, Representative’s Office, Other Divisions, i.e. CBD, SME, ID etc.

Co operations with complementary companies Intermediaries (financial Intermediaries,

individual with a professional network, individual with a social network)

Existing Clients – Word of Mouth

2. Marketing activity-based:

Advertising (Only in selected areas)

Direct Marketing

Collaboration with Third-Parties, e.g. clubs, organizations

Internal / external cross selling

Database marketing

Initial Customer Selection:

Initial customers are to be selected from the existing book where the customers will be selected

on the basis of eligibility criteria mentioned in Section 1.1 of this document.

Step 1: A query to be run on the basis of the average monthly balance criteria and identify the

eligible customers.

Step 2: Flag the customers in the system so that all the front end and back end can understand

the type of customer whenever they come across any transaction of this customer.

4.11 Source of Client Acquisition

4.12 Operation Module

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Step 3: Carefully present the privileges and offers to the Imperial customers. Ensure proper

reception of the Imperial customer.

Step 4: Create branding and stationeries for Imperial exclusive communication tool

- Letter head

- Envelopes (Small, Medium, Large)

- Cheque book

- Welcome Kit

- Deposit slips

Step 5: Inform customers about their changed status and privileges and introduce their RMs with

them.

Initial Operation Establishment:

Structure: This will be an RM bases structure where ARMs will report to RMs and RMs will

report to Head of Imperial Membership.

4.13 Document Needed For Imperial Account

□ Imperial Account:

1. Accounts open by Minimum Balance Requirement.

2. Account Holders’ Photograph (2copy).

3. Photocopy of National ID/ Passport of the Account Holder.

4. TIN Certificate of the Account Holder.

5. Nominee Photograph (1copy).

6. Photocopy of National ID/ Passport of the Nominee.

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4.14 Financial stipulation

Particulars YR 1 YR 2 YR 3

No of Accounts booked 300 450 600

Min Avg Balance per A/C 3,000,000 3,000,000 3,000,000

Total Deposit Mobilized 900,000,000 1,350,000,000 1,800,000,000

Fund Available for Investment after CRR

and SLR (19.5%)

724,500,000 1,086,750,000 1,449,000,000

Cost of Deposit 11%

Avg Lending Rate 15.5%

Spread 4.5%

Spread (Taka) 32,602,500 48,903,750 65,205,000

Earning to be waived per A/C

Service Charge 300

Fee of both Debit and Credit 3500

Locker 3500

Others 5000

Statement 2400

Total Per A/C 14700

Total Fees Waiver 29400

Portfolio Waiver 8,820,000 13,230,000 17,640,000

Gross income 23,782,500 35,673,750 47,565,000

Expenses

Advertisement/ Promotion 4,000,000 4,000,000 4,000,000

Welcome Kits 100,000 300,000 600,000

Lounge operating expense 3,600,000 4,000,000 4,700,000

Misc (reimbursement to Sheraton for

using the Balaka/ Own VIP Lounge)

2,000,000 2,500,000 3,000,000

TOTAL 9,700,000 10,800,000 12,300,000

Net operating income 14,082,500 24,873,750 35,265,000

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4.15 Cancellation of Priority Service

Cancellation of UCB Imperial Service:

a. I find out that customer eligibility to be an Imperial Client and all associated benefits will

immediately cease to apply if:

i. If client do not pay the amount due to Bank under the agreement of the account or

any other UCB products and services.

ii. If client fail to maintain the minimum average balance requirement for three

consecutive months.

iii. The bank in its discretion may decide to cancel the facility.

iv. The Bank informs client that he/ she is no longer eligible for UCB Imperial

Banking.

4.16 Future Proposition

By the talking with relevant officer I hear that the future proposition for UCB Imperial is:

SMS alert to customer’s when money Withdrawal/ Deposited in their Imperial account.

Exclusive Imperial Phone Banking Service (call-centre service)

Differentiated internet banking portal

Interactive Sessions- like, online communication via chat.

4.17 Instruction Manual

I gain knowledge from Relevant officer that they have some instruction manual that given below:

a) All the term and conditions must be read by client in conjunction with the terms and

conditions detailed for every product.

49 | P a g e

b) UCB Imperial Banking is only available to the client while client continue to be eligible

for the proposition. In the event that they cease to be eligible for UCB Imperial Banking,

client’s UCB Imperial Account relationships will automatically convert to a standard

account and will be subject to normal fees and charges as detailed in Regular “Schedule

of Charges”.

c) Charges are detailed in the brochure of UCB Imperial Banking Schedule of Charges, and

should be read in conjunction with the Schedule of Charges of UCB Regular Accounts.

d) Applicable service tax will be in addition to all charges.

e) All service and benefits offered are subject to Bangladesh Bank’s guidelines.

f) The Bank reserves the right to amend the terms, conditions or anything stated in different

communication materials.

g) In all cases, an account statement will be sent to Imperial client every 6 months.

h) UCB may at its discretion and for any purpose (including for the purpose of fraud

prevention, audit, the provision of services by any third party, debt collection, or if

required by any competent Government and regulatory body) disclose any information,

details or data relating to the Client or the Client’s transactions to any local authorities,

Bangladesh Bank, Government bodies, Judicial bodies in accordance to any requirement

of any provision of law and order of any court of law.

i) Client agrees to indemnify and keep UCB indemnified in the event of any dispute or

claim arising out of an account resulting in loss or damage suffered by UCB.

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4.18 Address of UCB Imperial Banking

Service

Imperial Banking in Dhaka

Imperial Banking Centers:

I note that Imperial Banking Lounges and relationship managers are located at the

following Priority Centers in Dhaka.

1. CORPORATE HEAD OFFICE

Plot- CWS-(A)-1, Road No- 34, Gulshan Avenue, Dhaka-1212

Phone : +88-02-8852500

Ex. 1001-1015

Mobile : 01730-318848

E-Mail :

S.W.I.F.T : UCBLBDDHGAB

Routing Number

:245261738

2. GULSHAN I.K TOWER

CONCORD I.K. Tower (1st Floor),

Plot No. CEN (A)-2, North Avenue, Gulshan-2, Dhaka-1212

Phone : +88-02-8824198, 8824564, 9895500,

Mobile :01711-881052,

Fax :+880-02-8824564,

E-Mail : S.W.I.F.T: UCBLBDDHGSN

Routing Number :245261725

3. MIRPUR ROAD BRANCH (UCB)

House # 12, Road # 05, Dhanmondi R/A, Dhaka-1205, Bangladesh

Phone :

Mobile :

Fax :+88-02-9671357

E-mail :

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4.19 Picture of UCBL Imperial

UCB Imperial opening Ceremony, 3

rd July 2012 In charge of - UCB Imperial

UCB Imperial Client, you are allowed to use the Imperial Lounge

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Debit Card: Black Check used instead of keeping it

plain

Imperial Fascia

Office File (Cover and Back) of account Opening Form Letter Head Page

Imperial Brochure Cover Page

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General Comparison

Table & Chart

Comparison of Facilities

Graphical Comparison

Chapter-5

Comparison of Priority

Banking Service in BD

54 | P a g e

Priority banking service is comparatively new in the banking context of Bangladesh. Under this

banking service bank gives much more priority to their high valued and first class customer.

Some special privileges are provided to the first class or high valued customers by the bank

which is different from bank to bank because of high competition. Those Banks who has more

lounges can serve more customers & can attract the customer. In Bangladesh there are about

seven banks offering Priority Banking Service. In Bangladesh in term of lounge facilities, BRAC

bank has highest number of lounge (10 lounges), then EBL has 7 lounges and HSBC & SCB

both has 5 lounges. BRAC bank has 8 lounges inside Dhaka and BRAC, SCB, EBL has 2

lounge outside Dhaka. More Relationship Manager (RM) can serve more customers at a time.

They also can bring more customers from local area. In term of RM BRAC bank has 12

Relationship Manager and then EBL has 10, SCB has 6, HSBC has 4, and UCBL & MTBL both

has 2 RM. Some other employee needed for the help of RM as well as customer. More

employees can serve more customers at a same time. In term of other employee except RM

BRAC bank has about 35 employees, EBL has 23 employees, SCB & HSBC both has 15 and

UCB & MTBL both has 5 employees working right now. The entire bank try to attract the

customer by providing better serves then others because of high competition. They try to provide

more customized service as customer’s interest. They are providing service as they promised. As

a result customer except & prefer them. Customers are doing their transaction with the bank as

they prefer. From my direct observation I notice that at present HSBC has highest number of

existing customers (600 approximately) because in Bangladesh they started Priority service first

and it was 2005. Then BRAC has 500 customers (approximately), SCB has 450, EBL has 300,

UCBL has 450 and MTBL has 150 (approximately) existing customers. I found this information

by talking with relevant employee. From my opinion I think all the bank are getting better

response from the customer that’s why they are expanding their lounge, service and other

facilities. Priority Banking Service is moving towards a new dimension for entire bank in

Bangladesh as it is developing fast due to competition, deregulation, and better and customized

service than ever before.

5.1 General Comparison

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5.2 Comparison of Facilities

From my observation I find out that different banks provide different privileges for their clients

but many of them are common but some are different from others. Comparison of facilities is

given below:

Priority Banking Service privilege Name of the Bank

UCB HSBC BRAC SCB EBL MTBL

Priority based service at all bank branches Separate Customer Care Center Instant account statement & access ability lounge for holding meetings Preferential rate for all banking products Special rates on Bank loans Multi-city and special cheque book Free cheque book & debit card Waiver on account and credit card related

charges

Assigned client a dedicated Relationship

Managers

Financial consultation Gift and special logo/ sticker Discount in hotel, restaurant, shops, hospital Exclusive cash transaction environment Always fresh currency notes Monthly/Quarterly statement SMS alert after every transaction occurred Home delivery service (Non cash Items) Dual Currency Debit card Complementary Monthly Magazines Greater Credit limits Higher ATM limits Global Recognition International Banking



56 | P a g e

5.2.1 Table & Chart Form my direct observation and going over, I found that different Bank has several lounges to

serve the Priority customer in several places, like:

Name of the Bank Total Number of

Lounge

Inside of

Dhaka

Outside of

Dhaka

United Commercial Bank (UCBL) 2 2

Hongkong & shanghai Banking

Corporation (HSBC)

5 4 1

BRAC Bank 10 8 2

Standard Chartered Bank Ltd. (SCB) 5 3 2

Eastern Bank Limited (EBL) 7 5 2

Mutual Trust Bank Ltd. (MTBL) 1 1

Number of RM (Relationship Manager) varies bank to bank as well as other employees, like:

Name of the Bank Number of RM Number of Other Employee



Corporation (HSBC)

4 15

BRAC Bank 12 35

Standard Chartered Bank Ltd. (SCB) 6 15

Eastern Bank Limited (EBL) 10 23


From direct my observation I found that the entire bank that provide Priority Banking Service

has some existing customer. Existing customer vary bank to bank, like:

Name of the Bank Number of Existing

Customer

(approximately)

Portfolio Holding by

other Bank (in crore)



Corporation (HSBC)

600 1300

BRAC Bank 450 350

Standard Chartered Bank Ltd. (SCB) 450 1600

Eastern Bank Limited (EBL) 300 380


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5.2.2 Graphical Comparison

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Over View Of United Commercial Bank Ltd. (UCBL)

Vision, Mission and Corporate culture

Board of Directors

Products and Services

Other Information

Financial Position in a Glance

General Banking

Account Opening Section

Deposit Section

Cash Section

Local Remittance Section

Clearing Section

Chapter-6

United Commercial Bank

Limited (UCBL)

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6.1 Over View Of United Commercial Bank

Ltd. (UCBL)

United Commercial Bank Limited is known as UCBL, Sponsored by some dynamic and reputed

entrepreneurs and eminent industrialists of the country and also participated by the Government.

UCBL was established under the rules & regulations of Bangladesh bank & the Bank companies’

Act 1991, on the 3rd June 1983. United Commercial Bank Limited (UCB) has stepped into its

27th Anniversary on June 29, 2010. United Commercial Bank Ltd. (UCB) is one of the oldest,

leading & largest commercial banks in Bangladesh in terms of assets, deposits, profits, network,

clientele base and employees. Being a first generation bank in the private sector of Bangladesh,

the Bank has been playing a pivotal role in the economic activities of the country, and is firmly

engaged in the development of trade, commerce and industry through a creative and prudent

credit policy. The bank has a wide network of 125 branches across the nation. With UCB

commitment to the economic development of the country, the Bank has already made a distinct

mark in the realm of Private Sector Banking through personalized service, innovative practices,

dynamic approach and efficient Management.

Predominantly UCBL has been indentified and perceived as a bank working only in the

corporate arena. With introduction of retail banking and card business, the image is gradually

shifting where individuals have started to believe that UCBL is not only a bank where the

corporate clients are only entertained; this is also the bank where individual banking needs are

being attended. With its firm commitment to the economic development of the country, the Bank

has already made a distinct mark in the realm of Private Sector Banking through personalized

service, innovative practices, dynamic approach and efficient Management. The Bank, aiming to

play a leading role in the economic activities of the country, is firmly engaged in the

development of trade, commerce and industry thorough a creative credit policy. The Bank has in

its Management a combination of highly skilled and eminent bankers of the country of varied

experience and expertise successfully led by Mr. Muhammed Ali, a dynamic banker, as its

Managing Director and well educated young, energetic and dedicated officers working with

missionary zeal for the growth and progress of the institution.

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6.2 Vision, Mission and Corporate culture

VISION:

UCB vision is to be the bank of first choice through maximizing value for our clients,

shareholders & employees and contributing to the national economy with social commitments.

MISSION:

The mission of UCB is to offer financial solutions that create, manage and increase our clients’

wealth while improving the quality of life in the communities UCB serve.

Corporate Culture:

Employees of UCBL share certain common values, which helps to create a UCBL

Culture.

Happy Banking

The clients come first

Search for professional excellence.

Openness to new ideas and new methods to encourage creativity.

Quick decision making

Flexibility and prompt response

A sense of professional ethics

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6.3 Board of Directors

Chairman

Late Mr. Akhtaruzzaman Chowdhury, MP

Vice Chairman

Mr. Showkat Aziz Russell

Director & Chairman, Executive Committee

Mr. M. A. Sabur

Director & Chairman, Audit Committee

Mr. Md. Jahangir Alam Khan

Members

Mr. M. A. Hashem (Director)

Mr. Kazi Enamul Hoque (Director)

Hajee Yunus Ahmed (Director)

Hajee M. A. Kalam (Director)

Mrs. Nur Nahar Zaman (Director)

Mr. Saifuzzaman Chowdhury (Director)

Mr. Bazal Ahmed (Director)

Mr. Shabbir Ahmed (Director)

Mr. Nur Uddin Javed (Director)

Mr. Sharif Zahir (Director)

Mr. Tanvir Khan (Director)

Mr. Ahmed Arif Billah (Director)

Mrs. Setara Begum (Director)

Mr. Anisuzzaman Chowdhury (Director)

Managing Director

Mr. Muhammed Ali

AMD & Company Secretary

Mr. Mirza Mahmud Rafiqur Rahman

http://www.ucbl.com/Alhaj_Akhtaruzzaman_Chowdhury.html

http://www.ucbl.com/Showkat_Aziz_Russell.html

http://www.ucbl.com/MrMA_Sabur.html

http://www.ucbl.com/MrMdJahangir_Alam_Khan.html

http://www.ucbl.com/MrMA_Hashem.html

http://www.ucbl.com/MrKazi_Enamul_Hoque%20.html

http://www.ucbl.com/Hajee_Younus_Ahmed.html

http://www.ucbl.com/Hajee_MA_Kalam.html

http://www.ucbl.com/MrSaifuzzaman_Chowdhury%20.html

http://www.ucbl.com/MrBazal_Ahmed.html

http://www.ucbl.com/MrShabbir_Ahmed.html

http://www.ucbl.com/MrNur_Uddin_Javed.html

http://www.ucbl.com/MrSharif_Zahir.html

http://www.ucbl.com/MrMd_Tanvir_Khan.html

http://www.ucbl.com/MrAhmed_Arif_Billah.html

http://www.ucbl.com/MrsSetara_Begum.html

http://www.ucbl.com/MrAnisuzzaman_Chowdhury.html

http://www.ucbl.com/Mr_Muhammed_Ali.html

http://www.ucbl.com/AMD_Rafiqur_Rahman.html

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6.4 Products and Services

Saving Account Multi Millionear

Currenr Account Locker Service

Online Service Home Loan

Credit Card Home Mortgage Loan

One Stop Service Auto Loan

Inward & Outward Remittances Education Loan

DPS Doctors Loan

Short Term Deposite (STD0 Travel Loan

Long Term Deposite Marriage Loan

Over Draft Advanced Against Loan

Secured overdraft Any Purpose Loan

DPS+ Hospitalization Loan

Earning+ CNG Conversion Loan

Money Maximizer House Hold- Durable Loan

6.5 Other Information

Division Based Branch of UCBL:

Name of the division Number of branches

Dhaka division 56

Chittagong division 38

Sylhet division 14

Khulna division 07

Barishal division 01

Rajshahi division 07

Rangpur division 02

Total(till December, 2012) 125

http://www.ucbl.com/online.htm

http://www.ucbl.com/card/index.htm

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6.6 Financial Position in a Glance

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6.7 General Banking

General banking department is the heart of all banking activities. This is the busiest and

important department of a branch, because funds are mobilized, cash transactions are made;

clearing, remittance and accounting activities are done here. Since bank is confined to provide

the services every day. General banking is also known as ‘retail banking’. In UCBL Mirpur Road

Branch, the following departments are under general banking section:

1. Account opening section

2. Deposit section

3. Cash section

4. Remittance section

5. Clearing section

6. Accounts section

1. Account Opening Section:

Account opening is the gateway for clients to enter into business with bank. It is the foundation

of banker customer relationship. This is one of the most important sections of this branch,

because by opening accounts bank mobilizes funds for investment. Various rules and regulations

are maintained and various documents are taken while opening an account. A customer can open

different types of accounts through this department. Such as:

i. Current account.

ii. Savings (SB) account.

iii. Short Term Deposit (STD) & Short Noticeable Deposit (SND)

2. Deposit Section:

Deposit is the lifeblood of UCB. From the history and origin of the banking system we know that

deposit collection is the main function of a bank.

Accepting deposits

The deposits that are accepted by UCBL like other banks may be classified into,—

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1. Demand Deposits

2. Time Deposits

3. Cash Section:

Banks, as a financial institution, accept surplus money from the people as deposit and give them

opportunity to withdraw the same by cheque, etc. But among the banking activities, cash

department play an important role. It does the main function of a UCB i.e. receiving the deposit

and paying the cash on demand. As this department deals directly with the customers, the

reputation of the bank depends much on it. The functions of a cash department are described

below:

Functions of Cash Department:

Cash Payment

1. Cash payment is made only against cheque.

2. This is the unique function of the banking system which is

known as “payment on demand”.

3. It makes payment only against its printed valid Cheque.

Cash Receipt

1. It receives deposits from the depositors in form of cash.

2. So it is the “mobilization unit” of the banking system.

3. It collects money only its receipts forms.

4. Local Remittance section:

Carrying cash money is troublesome and risky. That’s why money can be transferred from one

place to another through banking channel. This is called remittance. Remittances of funds are

one of the most important aspects of the Commercial Banks in rendering services to its

customers.

Types of remittance:

Between banks and non banks customer

Between banks in the same country

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Between banks in the different centers.

Between banks and central bank in the same country

The main instruments used by the UCBL of remittance of funds are-

Payment order ( PO)

Demand Draft ( DD)

Telegraphic Transfer (TT)

5. Clearing Section

The amount of Cheque, Pay Order (P.O), and Demand Draft (D.D.) Collection of amount of

other banks on behalf of its customer is a basic function of a Clearing Department.

Type of Clearing: 1. Outward Clearing

2. Inward Clearing

Cheque of

AB Bank

Uttara Br.

Deposited in

UCBL

Gulshan Br.

UCBL

Principal BranchBangladesh Bank

AB Bank

Principal Branch

AB Bank

Uttara Branch

Cheque Cheque Cheque

AB Bank

Uttara Branch

Cheque

Cheque Converted to Cash

AB Bank

Principal BranchCashBangladesh Bank Cash

UCBL

Principal BranchCash

Cash

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Findings

Recommendation

Recommendation for Priority Banking Service

Recommendation for Imperial Banking Service

Recommendation for UCB (General Banking)

Conclusion

Chapter-7

Findings, Recommendation

& Conclusion

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7.1 Findings

From my direct observation I found so many new things, mainly about Priority banking Service.

My all findings are given below:

About Priority banking Service:

Priority Banking service are not properly communicated via service (Marketing)

promotion.

Bangladesh bank has no set of any instruction for Priority Banking Service which may

lead to fraud and forgery.

Bank offering Priority Banking Service in Bangladesh has priority lounges only in

premium locations, where as a priority lounge regardless of size should be available in all

branches for customer convenience.

Many customers don’t know about Priority banking Service.

The term & condition of maintaining Priority Banking Account is widely different from

General Banking accounts which are known to only a few customers.

In Bangladesh Priority Banking Service is innovative and becoming popular for its

services facilities.

Client have a perception of incurring extra cost for opening a Priority Account whereas

most of their account related costs are being waived.

Client can use bank lounge for taking rest, entertainment and for meeting with others.

Some customers do not understand Priority Banking account opening procedure.

International standard are not followed by local bank.

When a Priority customer failed to maintain term & condition of Priority Banking

Service i.e. maintaining minimum balance, the bank can’t just cancel their membership

since it arises conflicting issues between customer & bank hence destroys relationship

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between the parties, moreover the customer’s gets offended as social status is an issue for

that.

Priority Banking Service differ from bank to bank which making customer confused.

All the local banks don’t follow a common standard, for that priority service vary bank to

bank.

A small number of Priority Banking Service providers bank promised to provide different

services which are not fully fulfilled by the bank.

Few banks fails to deliver the promise Priority Service/ benefits due to lack of expertise

and experience in this filed.

Priority Banking Service strategy is not arranged by only some local bank in such a way

that provides excellent service to its customers and employees.

7.2 Recommendation for Priority Banking

Service in Bangladesh

Recommendation for Priority Banking Service in Bangladesh:

Priority Banking Service should properly communicate via service (Marketing)

promotion. Different type of promotional activity needed for Priority Banking Service to

become its popular like: add in TV and print media (newspaper & journals), Internet,

Face book (make a face book Imperial group), twitter, etc.

Bank those offering Priority Banking Service in Bangladesh should priority lounges in

premium locations as well as should be available in all branches for customer

convenience.

The term & condition should provide to customer of maintaining priority relationship

because Priority Banking Account is widely different from General Banking accounts.

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The bank those offering Priority Banking Service in Bangladesh should provide all the

cost & charge related information because many clients have a perception of incurring

extra cost for opening a Priority Account whereas most of their account related costs are

being waived.

Entire bank should followed international standard for Priority Banking Service.

Some customer become confused because Priority Banking Service is differing from

bank to bank that’s why the entire bank should followed a standard and common term &

condition.

Expertise and experience in needed in this filed because few banks fail to deliver the

promise of Priority Service/ benefits due to lack of expertise and experience.

Bangladesh Bank should intervene a set of guidelines or instruction for Priority Banking

Service to shrink fraud and forgery.

Recommendation for UCBL Priority (Imperial) Banking Service:

Since I have done my internship with United Commercial bank Ltd. under Priority Banking, as

per my observation the following recommendations are being made:

UCBL should open a website joint with UCBL official website which contain privilege

or facilities and different general information about UCBL Imperial.

UCBL administration should give authority to all Imperial clients to see their transaction,

account information through internet by giving them personal ID and Password which

will be secret.

Lounge needed in different VIP, important and calm place where high profile people live

and near to their office. Lounge needed in other cities like Chittagong, Sylet, etc.

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UCBL should increase more employees for support imperial client and for bring client.

All employees should go outside to search imperial eligible client.

Administration of UCBL should give reward such employee who bring more imperial

client and encourage all other employees.

Should improve all current service and facilities to survive in competitive market.

Keep a good relationship with all imperial client by invite them in a special day with

special way.

UCBL should give reward those clients whose transaction is high with UCBL and who

keep high amount of money (quarterly basis).

UCBL Authority should provide Imperial brochure in all UCB branches, carrying

Imperial information like: Privileges, Eligibility criteria and Terms & Conditions.

Different type of Gift Pack and attractive Imperial client Identification Sticker needed to

attract the clients.

UCBL Administration should give full authority (ID & password) to all Relationship

Manager (RM) so that they can open an Imperial account within very short time; provide

account statement and give immediate all information when a client needed.

UCBL should open some service immediately which is pending now, like Internet

Banking, Mobile Banking, Keep all lounge Wi-Fi connected area.

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Recommendation for UCBL General Banking Service:

If the enter general Banking system is fully computerized with one common software

then they satisfy the customer by provide fast and better service than ever before.

UCBL’s human resources management policy has to identify the right combination

of skills, knowledge, behavior and values and utilize them for the welfare of the bank.

It’s has to adopt the most recent technologies to improve the quality of service.

A group of well-trained and expert work force is dedicated to provide the best service to

the customers within very short time.

The management of UCBL must be identified the weakness point to have in competition

in banking sector.

The management of UCBL has to give their attention to take necessary steps to improve

Credit Management.

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7.3 Conclusion

Competition tend to be moving at a new standard and also banking service, people use to do

traditional banking from the year 1990 to 2001, but right now the trend has moved to more of a

Online system, therefore people tend to be moving more into PRIRITY BANKING since people

knows the value of time.. There are few banks in Bangladesh those are providing Priority

Banking Service, according to my observation it has been recognized that, to serve Priority

customers up-to their standards, banks need to be skillful in many areas like, faster development

of new business strategies, reducing service procurement times, improving customer service

through more atomized & customized service and increasing and maintaining knowledge for

accomplishing all these goals. Research and development (R&D), expertise and experience is

needed in this filed in order to make some positive changes and do some alteration to change the

current scenario. All local banks should follow the circular given by the Bangladesh bank..

Bangladesh Bank should intervene a set of standard guidelines or instruction for Priority

Banking Service to eradicate the chances of frauds and forgery and to reduce the conflicting

issues between the bank and the customers which arises due to varying service proposition

offered by different banks.

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(A) Personal Observation:

o Personal Observation.

o Personal Direct Survey to Other Bank.

(B) Broacher Reference:

o Broacher of UCBL Imperial Banking.

o Broacher of HSBC Select Banking.

o Broacher of SCB Priority Banking.

o Broacher of BRAC Primium Banking.

o Broacher of EBL Priority Banking.

o Broacher of MTBL Privilege Banking.

(C) Reports:

o Annual Report of UCBL

o Prospectus of UCBL

o Several Journals & Booklets from UCBL

(D) Website:

http://www.ucbl.com

http://www.businessdictionary.com/definition/priority-banking.html

http://www.google.com

BIBLIOGRAPHY

http://www.ucbl.com/

http://www.businessdictionary.com/definition/priority-banking.html

http://www.google.com/

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ACRONYMS

A/C Account IBCA Inter Branch Credit Advice

SB Saving Account IBDA Inter Branch Debit Advice

CA Current Account IBCT Inter branch Credit Transaction

FDR Fixed deposit receipt CRF Clean Report Findings

STD Short Term Deposit PAD Payment against Document

SND Short Noticeable Deposit LTR Loan against Trust Receipt

DD Demand Draft AD Authorized Dealer

L/C Letter of Credit FOB Free On Board

OBC Outward Bills for Collection BB Bangladesh Bank

IBC Inward Bills for Collection UCB United Commercial Bank

CC Cash Credit EBL Easter Bank Limited

DD Demand Draft MTBL Mutual Trust Bank Limited

TT Telegraphic Transfer SCB Standard Chartered Bank

B/L Bill of Lading HSBC Hongkong & Shanghai Banking

BOE Bill of exchange Corporation

PO Payment Order

TIN Tax Identification Number

DP Note Demand Promissory Note

C & F Clearing & Forwarding

APPENDIX

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