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Market Insight of Satellite Town, Rawalpindi

GTOs 2008 - Retail Banking Module – Northern Region

“The best way to predict the


future is to create it”
- Peter Druker

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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.

We, the team of Graduate Trainee Officers of JS Bank Limited, are


extremely grateful to Mr. Kamran Jafar, Regional Head – North, Retail
Banking, and Mr. Maqbool Ausaf Muneeb, Regional Head - Operations,
JS Bank Limited, for granting us this challenging opportunity to conduct
a worthwhile market survey analysis for the bank’s upcoming branch in
Satellite Town area, Rawalpindi. Working on this project has given us
chance to utilize our efforts while gaining practical exposure of the
retail market. We would also like to acknowledge the ample guidance,
suggestions and directives of Mr. Shafqat Rauf Khan, Branch Manager
Blue-Area, and Mr. Malik Humayun Younis, Operations Manager,
Rawalpindi Cantt branch and Mr. Faisal, Operations Manager, Satellite
Town branch while going through this effort. We, along with paying
above gratitude to our managers, would also like to be thankful to the
staff of Consumer Centre whose premises were utilized by us during
this project.

We are extremely grateful to our parents without whose prayers we


are nothing. At the end, we like to appreciate our colleagues and
friends who, directly and indirectly, supported us in completing this
project.

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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region

Executive Summary

It is proven that initial findings before starting any project play a


tremendous role in forecasting the future course of events. The
opening of new bank branch also requires such a conclusive evidence
for its marketability. Therefore, a new branch of JS Bank Ltd, about to
commence its operations in the Commercial Market area of Satellite
Town, Rawalpindi, is thus going to be facilitated by an extensive
market survey consisting of Banks, Private Companies, Franchises,
Restaurants & food outlets and Petro-CNG stations, Retailers,
Hospitals, Schools, Jewelers and other groups.

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.

The purpose of conducting market research of the


customers/businesses is to investigate their satisfaction level in the
areas of customer services, cash counter, remittances and ATM
transactions with the branches of banks, where they have maintained
their accounts, the nature of their accounts and their valuable
suggestions for the banks.

Introduction

Research Project Background:


Our team is undergoing an extensive training program of about 4
months in different departments of bank such as Remittances, Retail
Banking, Customer Services and Cash. We are presently going through
the stage of Retail Banking. This study was conducted in lieu of the
opening of our bank’s Commercial Market branch in Rawalpindi. We
were assigned a task to review the core business areas of the region
operating within 3 kilometers radius of our bank’s branch, analyze its
banking potential and gather information regarding customers’
suggestions for improvement of the banking services.

Key task objectives:


The main objective of this report is to gather authentic
information related to market strengths and shortfalls of the banks

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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.

Strategic Terrain Mapping (Scope of the Market)


This project will help us provide valuable information regarding
the target market which will serve the opening of our Satellite Town
Branch, due to commence operations towards the end of September
2008. Our market territory includes:

 Main Commercial Market – Retailers, private limited,


restaurants, franchises, pharmacies etc.

 Chandni Chowk – Banks, retailers, jewelers,


automobile dealers and showrooms, restaurants, Petro-
CNG stations, franchises etc.

 Murree Road – Retail plazas, Banks, jewelers,


restaurants.

 Saidpur Road – Hospital labs, clinics and few retail


outlets and schools.

 6th Road – Schools, colleges, institutes.

Tactical Domain Analysis (Methodology)


Due to the degree of sensitivity of the information required for
the project, the collection of valuable data from the banks and the
customers was achieved using a soft form of military strategy of
camouflaged distraction i.e. we penetrated the core of our target
market (banks and retailers) posing as MBA students conducting
research for our university thesis. Further more, the tactics of engage

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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.

Gears of War (Research Tools)


Here we developed two pronged strategy using questionnaires
based on both open-ended and closed ended questions comprising of
qualitative and quantitative queries. The said strategy was adopted in
order to safeguard our bank’s brand integrity and potential
marketability. Sample of both types of questionnaires is
attached in annexure.

The Target Sample:


For better comprehension of how sample data was collected the
population relevant to the study is defined. The sample is divided into
two parts, the customer (current and prospective) and Banks. Our
sample consists of about 7-8 big names from each of the customer
categories mentioned below, and 14 banks in our target terrain. The
detailed list of categories and the extracted sample are
attached in annexure.

a) Customers:

 Retailers / Wholesalers

 Franchises

 Private Companies

 Automobile Dealers

 Petro-CNG Station

 Jewelers

 Hotels / Restaurants

 Bakeries

 Schools / Colleges / Universities

 Hospitals / Labs

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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region
b) Banks:

 MCB Bank

 Standard Chartered Bank

 Bank of Punjab

 KASB

 UBL

 Meezan Bank

 NIB – Salam Banking

 Bank Al-Falah Ltd.

 HBL

 Askari Bank Ltd.

 Faysal Bank Ltd.

 Soneri Bank Ltd.

 Saudi Pak Bank Ltd.

 Al-Baraka Islamic Bank Ltd.

Obstacles (Limitations):
During this project, we encountered several constraints such as:

• Time constraints due to half timings and customer crowding of


banks in the month of Ramadan.

• Busy banking activity especially around 1200 hours PST.

• Few bank managers tried to avoid interviews directly by referring


us to a junior officer usually from the customer services or
operations department.

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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.

• Retailers especially jewelers, private companies and hospitals


were reluctant to disclose their bank account information.

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.

The total target market (strategic terrain) has been segregated


into various distinguished categories/segments comprising of Retailers,
Private Companies, Jewelers, Franchises, Hotels and Restaurants,
bakeries, Hospitals and labs, Schools/Colleges, Petro-CNG stations and
Automobile Dealers.

They have all been investigated through questionnaire different


queries regarding branches of the banks in the local area. From doing
this survey, we ascertained some information from them in relation to
the maintenance of their bank accounts, their satisfaction level with
them, the things that annoy them and why they opted for these 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;

• Most preferred department of bank (customer services, cash


counter, remittances or any other)

• Most attractive products (online banking, ATM, Fund Transfer


or any other)

• Their expectations from bank (quality of service, higher


profit/return, long-term relationship or any other)

• Importance of business to bank distance (to a great extent,


much, sometimes and not at all)

We also investigated whether customers prefer to have accounts


with a single bank or multiple banks. At the end, customers were asked
for suggestions to banks to improve their service quality to their
valuable clients.

The market segment-wise detailed analysis of the targeted


customers is as under. Their details are attached in annexure.

1. Jewelers

According to the survey, majority of the surveyed jewelers (Rabi


Center and Ashiana Mall, Murree Road) preferred not to have any
bank account whatsoever. However, those who did have banking
relationship, maintained current accounts in Bank Alfalah, NIB and
UBL. The reason being their suppliers (commonly termed
BEOPAAREES in jeweler language) had accounts in the
aforementioned banks and these banks were the nearest to their
shops. Therefore, the jewelers were obliged to maintain accounts
with the above banks in order to facilitate their suppliers. Regarding
the services of their respective banks, they were usually found
satisfied and content. However they did face problems in changing
cash and delays in payment on counter. They were also in particular
annoyed from, as they put it, “the hidden charges” of the banks.

2. Schools/Colleges/Universities

They are maintaining multiple accounts in almost all banks


separately for fee collection from their students and salary accounts
of their staff. Most of the institutes are satisfied with the services
offered by their banks. Cash counters and remittances are their

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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

They prefer to open current accounts with highly established


banks like MCB, Standard Chartered, NIB, Faysal Bank mostly due to
proximity of bank from their business centers. They are satisfied
with their banks due to late night banking services. They mostly opt
for fund transfers and ATMs in their banks.

4. Petro-CNG Stations

Most of the Petro-CNG Stations prefer to open account with


multiple banks in order to avail the lowest of charges offered by
several banks on products such as L/Cs. They also prefer the nearest
bank. Cash counter is their favorite department because they have
to deposit money on daily basis. Most of them have current
accounts in HBL, ABL, SCB, BOP, NIB, Faysal Bank and Askari Bank.

5. Hotels and Restaurants

They usually prefer to open accounts in multiple banks for


business and salary purposes. They tend to build long-term
relationship with their banks provided those banks give them high
quality services. Most of them are satisfied with their banks on basis
of either proximity or convenience while some have issues with
ATMs, merchant machines, and counter times. Our sample consisted
of KFC, AFC, Bao Ji Pulao, La Carte Ice Parlor, Chicken Hut, Café Dine
Light, Broadway and Chaman Ice cream. KFC, Chicken Hut, AFC
have centralized accounts as per their parent company policies in
RBS, KASB, SCB, Bank Alfalah, Citibank, Askari Bank, UBL, and ABL
respectively.

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.

10. Hospitals and Labs

Most of the hospitals have trust or centralized accounts with the


big banks or in those banks where they have business obligations.
They usually encounter the Fund Transfer facility. Some of them
have complaints regarding cash counter times. Our survey included

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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.

Banks Review & Analysis


We visited a total of 14 banks as per our target portfolio. Based on
their number of accounts, total deposit and the customer analysis
about the type of accounts they are maintaining with their respective
banks, we also determined a rough estimate of the CASA ratio of the
banks. Special rates on 1 year TDR upon deposit of 100 Mio of most of
the banks were also obtained. Their SOC and TP rate sheets are
attached in annexure.

1. United Bank Ltd


UBL is one of the oldest banks in Pakistan.
According to them, their unique product is their
Visa debit Card. They have an estimated 150
Accounts, Deposit of PKR 500 Mio and they are
offering products like Business Partner, Rupee
Trans A/C, UBL UniFlex, and UBL UniSaver. Their estimated CASA
ratio is almost 50/50. Their special rate on one year TDR is 12%.

2. Meezan Bank Ltd


It is the premier Islamic Bank in Pakistan. Their
distinguishing feature from other banks (both
conventional and Islamic) is their widely
distributed branch network and free online
services. According to their view, they are
providing fast and accurate Transfer of funds, quick delivery of ATM

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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%.

4. NIB Bank – Salam Banking


NIB Bank is entertaining the mass market i.e. those
people of the lower income segment who have no
banking exposure previously. They have 3000+
accounts, but did not disclose its total deposit.
However, judging by the types of accounts they have, we concluded
that their CASA ratio is 80/20. Also their special rate on 1 year TDR
is 12.75%.

5. Askari Islamic Bank


Its main strength is its brand name; hence it is
different from other Islamic bank in terms of credit
rating and reputation. Most of the queries from
customer are regarding online banking. Their account
strength is about 880 accounts with deposit of around 915 Mio.

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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.

6. Saudi Pak Bank


It is one of the emerging private Banks in Pakistan. Their features
are better profit rates and enhanced customer services. Most of
queries from the customers are about Account Balance and Profit
Rate. It has about a total of 1900 accounts with Deposit of PKR 700
Mio. Their CASA ratio is estimated at 40/60 and they are offering
products like Super Saver Account, Term Deposit and internet
banking. Customers prefer Saving Account. Their special rate on 1
year TDR is 14%.

7. Al-Baraka Islamic Bank


Being one of prime Islamic banks, their products are
all Shariah compliant. Their customers expect good
service with minimum counter time. They have
approximately 1000 accounts in this specific branch
of satellite town. Their products include Modaraba,
Musharaka and Ijarah. Their customers prefer mostly current
accounts. It offers special rate up to 12%.

8. Allied Bank Ltd


It is one of the oldest banks in this area and
capitalizes on its branch network. According to
them, most of queries from their customers are
about ATM and A/c balance inquiry. They have
around 5000 accounts with the deposit of around 600-700 Mio. And
the products they offer are Allied Munafa Account, Mahana Amdani

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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.

10. FAYSAL Bank


Faysal bank is a blend of Islamic plus conventional
banking. It is different from other banks with regard
to their high service standards and up to the mark
customer service. Their customers mostly prefer
ATM and online banking. They have approximately
4000 accounts and a deposit of around 1 billion rupees. Customers
prefer current accounts. Special rate is 14% on one
year TDR. Faysal Izafa, Faysal Sahulat and Faysal
Muavin are their good products.

11. Dubai Islamic Bank


It is one of the emerging Islamic banks in Pakistan.
The main strength of the DIB is their variety of
Islamic banking products under the brand name of Al-Islami Fixed
Deposit, Saving Account, and Current Account. Most of queries from
the customers are about Profit rates on Saving Accounts. Their
rate sheet is attached in annexure.

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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%.

13. Bank of Punjab


The Bank of Punjab, under the supervision of Punjab
Govt. is offering saving schemes to its retail and
corporate customers. Most of their queries are
regarding A/c balance and payment of cheques.
They have around 5000 Accounts with the deposit
of PKR 750 Mio. They are offering liability products like Supreme
Saving, Tijarat account, and Munafa hi Munafa accounts. Customer
mostly prefer to open BOP Tijarat account in which various
incentives have been offered like, free cheque book, free locker
facility, free online and many other facilities. Their CASA is
estimated @ 75/25. And their special rate on one year TDR is
13.5%.

14. Soneri Bank


It is one of the prominent private banks in Pakistan.
Their distinguishing features are less services
charges and higher return. Most of queries from the
customers are about ATM as their branch is being
renovated following a fire incident. It has about
3000 accounts with Deposit of PKR 140 Mio. Their specialized TDR
are Golden Deposit Certificate with 10.25% p.a for 5 years and
Diamond Deposit Certificate offering 13% p.a for 3 years. Their
special rate on 1 year TDR is 14%. Their CASA is 80/20.

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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region

Graphs and Tables


Banks:
1) Number of Accounts:

The number of accounts plays an important role in the banks


specially the proper mixture of CASA. It indicates how much people
are interested in banking industry. The higher number of accounts
in any bank shows that it is popular and creditworthy in the masses.

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:

These are the profit rates offered by banks to high Networth


customers especially corporate on 3-months, 6-months, 1-year,
2-year, 3-year, 5-year and up to 10-year Term Deposits,
depending upon the amount deposited. We gathered the special
rates of the designated banks for 1-year TDR based on funds of
PKR 100 Mio.

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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.

4) Competitive Edge (Weight-age):


Each bank surveyed highlighted its own best feature that it termed
as distinguished it from the rest of the banks. It was observed that
majority of the banks thrived on enhanced customer services,
followed by higher profit returns, branch network, facilitating all
income groups, issuance of Pay Order within the branch network,

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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:

While each bank’s survey highlighted its best service/product


feature from the banks’ perspective, we also asked the various
categories of customers to identify and give us their feedback on
what they think is the best feature of their respective banks that
made them clients to those banks. It was observed that majority of
the customers regarded high quality customer services, less cash
counter times, error-free ATMs, followed by proximity of bank from
their line of business, minimum service charges, and provision of
merchant machines to retailers & jewelers, and flexible
deposit/withdrawal options.

Most Preferred Department of the Bank


Cash Customer Funds Any Other Total
Counter Services Transfer
Number 35 41 6 1 83
of
Businesse
s

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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region

2) Most widely used Products of the Bank:

While each bank’s survey highlighted its best service/product


feature from the banks’ perspective, we also asked the various
categories of customers to identify and give us their feedback on
what attracts/suits them as the most useful product/service of their
respective banks. It was observed that majority of the customers
regarded high quality customer services, less cash counter times,
error-free ATMs, followed by proximity of bank from their line of
business, minimum service charges, and provision of merchant
machines to retailers & jewelers, and flexible deposit/withdrawal
options.

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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region

Most Attractive Banking Products/Services


Online ATM Funds Late Total
Banking Transfer Banking
Hours/Dep
osit &
Withdrawal
s
Number 35 13 13 2 63
of
Business
es

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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):

The third tier of customer opinion focused on their expectations


from the banks i.e. either they’d go for quality of services offered by
their respective banks or they’d like to maintain long-term
relationship with them regardless of their service quality. So the
general response was that majority of the customer preferred high
quality of services rather than keeping relationship with any single
bank. As most of them had business/current accounts with multiple
banks, this shows that the target customer market of Satellite Town
area are well aware of the value of service quality and is therefore
more volatile to switch brands based on this single factor.

Customer Expectations From Bank


Service Long- Total
Quality Term
Relations
hip
Number 58 13 71
of
Business
es

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Market Insight of Satellite Town, Rawalpindi
GTOs 2008 - Retail Banking Module – Northern Region

4) Importance of business to bank distance (matters or not):

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.

Importance of Business to Bank


Distance
Matters Doesn’t Total
Matter
Number 56 16 72
of
Business
es

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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:

The quality of service should be enhanced on the counter so that


customers can be satisfied. While achieving this, the following
points should be focused upon:

 Small denominations of money should be kept in excess in order


to facilitate the customers.
 Customers having some mutilated notes should be entertained
politely so that they are not embarrassed.
 Different types of currency notes should be accepted from the
customer in order to increase the amount of deposits such as in
case of GBP, Euro and USD etc.
 All cash counters must remain active during banking hours to
distribute customer load at peak hours especially.
 Counter timings should be increased to facilitate maximum
number of clients.
 ATM machines should be properly maintained so that they can
perform their function error-free.
 ATM Cards/Cheque Books should be delivered to customers in
the shortest possible time after opening account with the bank.
 Cash collection centre should be made in each branch so that
customer can get ample time for their transactions.
 CROs must be customer friendly and should have the proper
knowledge to guide the customer to go to concerned authority.

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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

 Service charges should be exempted on minimum balance


requirement.
 The withdrawal limit on ATM must be increased to facilitate
especially the businessmen.
 Credit card facility should be provided all customers with no
hidden charges.
 Merchant machines must be provided to retailers by all banks.
 Monthly account statements should be sent to the customers.
 The terms and conditions for opening LC should be relaxed.
 Cheque return charges must be reduced.
 Banks should maintain a backup record of customers to avoid
any data or funds loss due to any accident e.g. Citibank lost
consumer data due to error in database software which led to
loss of funds to many of its customers.

3- Online banking/Telebanking/E-Banking:

 Telebanking speed should be enhanced as nowadays increasing


number of customers prefers online transactions.
 The queries of the customer on the telephone must be improved
and to the point information should be given to the customer.
 E-banking should be introduced by all banks.

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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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