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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Acknowledgement
First of all we are ever thankful to Allah Almighty for giving us the
means and courage to conduct this project with full zeal and
enthusiasm in the Holy month of Ramadan.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Executive Summary
Commercial banks operating in the area are the main target of this
analysis, in order to investigate their key success/letdown factors. For
this purpose questionnaire/interviews were conducted from the
managers of the bank focusing on areas such as their products &
services, number of accounts, total deposits, schedule of charges and
special rates on fixed deposits. In this way, we obtained a rough
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
estimate of their market strength and thus the opportunities/space for
our bank to capitalize on the shortcomings of the existing banks.
Introduction
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
operating within the defined territory. Therefore the data collected in
this survey is of prime importance. The primary data consists of the
types of accounts that the local customers have with the banks, bank’s
approximate number of accounts, its approximate total branch
deposits and their special rates on high-end TDRs. Based on this we
can figure out a rough idea of the share of CASA in the total deposit of
the bank. In order to facilitate the primary information, data has also
been obtained secondarily through brochures of the banks that
consisted of the products and services they offer, schedule of charges
and profit rate sheets etc.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
& divert were especially deployed to extract the valuable quantitative
info from the targeted banks.
a) Customers:
Retailers / Wholesalers
Franchises
Private Companies
Automobile Dealers
Petro-CNG Station
Jewelers
Hotels / Restaurants
Bakeries
Hospitals / Labs
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
b) Banks:
MCB Bank
Bank of Punjab
KASB
UBL
Meezan Bank
HBL
Obstacles (Limitations):
During this project, we encountered several constraints such as:
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
• Some banks were non-cooperative in disclosing much
information regarding their quantitative data especially total
branch deposits and special rates.
Customer Portfolio
Our total strategic terrain size is 600+ that include banks and
businesses both. Our target sample consists of a total of 86
surveyed businesses, and 14 banks.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
In addition to above, we also provided them with MCQs as under;
1. Jewelers
2. Schools/Colleges/Universities
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
frequently visited departments of the bank. This target market
prefers fund transfer. They like to open account with banks which
are nearer to them. They have the common problem of delayed
cash payment on counter. The big names (Punjab College of
Commerce, Rawalpindi College of Commerce, The Educators,
Sideeq Public School, Virtual University and Islamabad College of
Accounting & Finance) are key clients of current accounts in SCB,
BOP, HBL, Askari Bank, Allied Bank and Saudi Pak Bank.
3. Private companies
4. Petro-CNG Stations
6. Franchises
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
They usually tend to have centralized account with a single bank.
But due to lack of satisfaction, some franchisors prefer multiple
banks. Mostly they are satisfied but still they opine for improvement
in behavior of bank staff. Telenor, Warid, Mobilink, Zong, Ufone and
Waves Service Center, K&Ns have accounts in UBL, ABL, Bank
Alfalah, and HBL, RBS and Bank Alfalah Islamic Banking.
7. Retailers
They have business account with almost every bank. They open
their account in those banks which are near to them. Online banking
is their favorite product. However, almost every other retailer is
having complaints with his respective bank(s) in the areas of
customer dealing by the banks, slow counter times, ATM problems,
hidden charges, cheque bounce issues, bad customer services,
merchant machine problems, wilted currency notes denominations
and even loss of funds of one retailer because their bank (Citibank
didn’t have any backup record of customers when its database
malfunctioned recently!). ATM and Online banking are their most
frequently used banking products.
8. Automobile Dealers
They prefer to open their account with the big banks as they
prefer Brand name. Mostly they like customer services. Mitsubishi
motors, Arshad motors, Suzuki Motors have their current accounts
with HBL, Meezan Bank, NIB, Bank Al-Habib, UBL and SCB.
9. Bakeries
Most of the bakeries open their accounts with those banks which
offered quality services. They face the problem of hidden charges.
Their favorite product is ATM. Bakeries covered by us include United
Bakeries, Nirala Sweets, Sweet Palace; La Carte Bakers having
current accounts with MCB, SCB, Saudi Pak Bank, and Bank Alfalah
Islamic Banking.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Afzal Hospital, Agha Khan Labs, Shaukat Khanum Labs, Shifa
International Labs and their accounts were in MCB, HBL, Soneri
Bank, ABL and UBL respectively.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
cards as well as cheque book. Most of queries from the customers
are about ATM. They have around 2500 Accounts, with estimated
Deposit PKR 600 Mio. They are offering different Islamic products
including Meezan Bachat Account, Normal Saving Account Current
Account. Most of customers prefer having Current Account. Based
on the info gathered from them, it can be inferred that their
approximate CASA ratio is 60/40. Their special rate on 1 year TDR is
lowest i.e. 11% because they rarely offer TDRs due to their internal
policies.
3. KASB Bank
KASB claims that they are different from other
banks in terms of service quality. They are
maintaining about 198 accounts with the Deposit
of PKR 200 Mio plus. Their strengths are on liability
products such as Education Aassan, Maheena
Aassan, Ghar Aassan. Most of their customers prefer Saving
Accounts in shape of TDRs. Their CASA ratio 70/30 and their special
rate for one year TDR is 14%.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Their various products are savings currents, TDR, and Islamic
products of Ijarah car financing, Mudarbah financing and Askari
Islamic investment accounts. Brochures are attached in annexure.
They offer special rate of 13% on 1 year TDR.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Package and Allied Bachat Scheme. Most of their customers prefer
Current Account. Their CASA ratio is 70/30.
9. HBL
This is one of the most successful banks in this area.
It has approximately 15000 accounts. Most of the
queries are regarding balance inquiry. They have
1.32 Billion rupees of deposit. Their most promising
products include value account, super value account
and advantage accounts. Saving account is preferred by most of the
customers here. CASA ratio estimated 80/20. Special rate is 13.25%
for 1 year TDR.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
12. MCB Bank Ltd
It is on of the biggest banks in this area in terms of deposit volume
and business activity. Their major queries are about the traveling
cheques and TT. Having approximately 21,000 accounts and the
deposit of about 2 billion rupees, their CASA ratio is 70/30. Its rate
of saving is from 5 to 7.5% and its special rate is 13.7%.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Interpretation:
The above diagram explains the number of accounts that are
held by the local branches of the banks. Out of the total accounts,
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
most of the portion is held by the branches of the top three banks
comprising MCB, HBL, UBL, BOP, ABL and Faysal Bank. The remaining
portion is shared by the banks that came into being after privatization.
2) Total Deposit:
The more deposit the bank has, the healthier it is financially and
able to meet its liquidity; just as blood is necessary for man to stay
alive. It protects the bank in case of potential bankruptcy and
makes it known in the community.
Interpretation:
The major portion of total deposit of the local branches of the banks is
held by top 9 banks. Out of this deposit, the largest portion is occupied
by top MCB, HBL, Faysal Bank and Askari Islamic Bank. The remaining
portion is held the banks which came into being after privatization. Out
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
of total 15 banks surveyed, 4 did not disclose their information. These
included SCB, Bank Al-Habib, DIB, Al-Baraka Islamic Bank.
3) SPECIAL RATES:
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Interpretation:
The leading competition of one year TDR special rate for deposit
amount of 100 Mio is 14% given by four banks namely KASB, Saudi
Pak, Faysal and Soneri Bank. Next in line are HBL, MCB and BOP with
13.8%, 13.7% and 13.5% as their special rates on the said amount
respectively. The Lower side of the rate is being offered by UBL, Al-
Baraka and Meezan Bank.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
good credit rating, saving schemes for business and corporate
customers, less service charges and flexible payment methods.
Tota
Features l Banks
Enhanced Customer MC
Services 5 Saudi Pak KASB DIB Faysal B HBL ABL
Soneri
Higher Profit Returns 2 Saudi Pak Bank
Branch Network 2 Meezan ABL
Facilitating all income
groups 2 MCB NIB
PO across the branches 1 Meezan
Askari
Good credit rating 1 Islamic
Saving schemes for
retail & corporate 1
customers BOP
less service charges 1 Soneri
flexible payment
methods 1 DIB
Askari Al-
Islamic Banking 3 Meezan Islamic DIB Baraka
Punjab Govt.
Supervision 1 BOP
Visa Debit Card 1 UBL
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Customers:
1) Most Preferred Department of the Bank:
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
3) Customer Expectation from Bank (Service Quality or
Long-Term Relationship):
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Last but not the least, it was important to check customer convenience
in engaging with the banks. This was done by finding out whether the
proximity factor i.e. distance of bank from the business mattered to
the customers or not. As shown by the graph, majority of the
businesses responded that they preferred the bank nearest to them
because it was more convenient to them to carry cash and cheques on
daily basis if their bank was nearby due to security reasons.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Recommendations
The following recommendations & suggestions have been identified
while keeping in view the banks and the customers. They have been
classified into 3 major categories; Service Quality, Service Charges,
Online & Internet banking.
1- Service Quality:
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
In peek banking days of then bank an additional person should
be designated to control cash counter.
Healthy and friendly environment should be maintained to
facilitate the customer.
2- Service Charges
3- Online banking/Telebanking/E-Banking:
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
Conclusion
From the survey and analysis carried out, it can be rightly concluded
that the market of Satellite Town is ripe with abundance of
undiscovered potential for JS Bank to make its day and capitalize on
the opportunities missed/ignored by the banks already operating there.
It might not be so easy for us to achieve milestones initially, due to
market saturation and crowding by virtually every other bank, but with
the right combination of strategic aggressiveness and tactical
maneuverability, we can be ahead of the game within a few months.
Thus it can be discerned that come what may the challenges and
circumstances, we must rise to the occasion and spearhead our Brand
name into the realm unknown.
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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
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