1.1.

BACKGROUND OF THE STUDY: The Internship Program is compulsory for all the students of Bachelor of Business Administration (BBA) program of ULAB. After the completion of the program a student has to submit a report on the assigned topic to the supervisor & the department. I was assigned for doing my internship program in the BRAC Bank LTD. for the periods of 3 months starting from 11th January 2012 to 11 April 2012. In BRAC Bank LTD. I was assigned in the Item Production unit, which is under the Deposit Origination Department for 3 months at the head office, 1 Gulshan Avenue, Gulshan. My organizational supervisor was Mr. Kairul Islam. My selected topic is Marketing of Bank services: Problems Prospects A case study of BRAC Bank Ltd which was assigned by my faculty supervisor; Milan Kumar Bhattacharjee,Deaprtment Head of Business Administration. 1.2. SIGNIFICANCE OF THE STUDY: Only the theoretical knowledge is less important when it is not applicable in the practical life. Though we have completed so many theoretical courses in BBA program, but we have no such practical knowledge to be successful in the real business world. As a student of Business studies; we have to learn more practical knowledge to become a good executive in the real business world. For this reason; the internship program is so much helpful to the students of BBA to learn more about the practical world, & the banking sector is such a place where we could gather huge practical lessons about the business world.

1.3. OBJECTIVE OF THE STUDY: The objective of the study describes the main theme & goal of the selected topic. To illustrate the objective properly, there are two steps.

1.4.1. General objective: The general objective of the report is to prepare & submit a report on the selected topic; Marketing of Bank services: Problems Prospects A case study of BRAC Bank Ltd. 1.4.2. Specific objective: The specific objectives of the study are as follows: (I) (II) (III) (IV) (V) (VI) To highlight the theoretical aspects of BRAC Bank LTD. To know about the different types of products in BRAC Bank. To know about the marketing strategies of BRAC Bank LTD. To analyze the performance of BRAC Bank LTD. To identify the marketing related problems of BRAC Bank LTD. To suggest & advice some possible measures to overcome the problems of BRAC Bank LTD

1.4.

METHODOLOGY OF THE STUDY:

The study uses both primary data and secondary data. The information of the report was collected from secondary sources like books, published reports and web site of the BRAC Bank LTD. (www.bracbank.com). For general concept development about the bank short interviews and discussion session were taken as primary source.

Data Collection

Primary Data

Secondary Data

Source

Operational Manual

Direct Observation= 3 Months

Official Web Site

Interviews

Banking Journals

BBL Newsletter Research Paper

1.5. SCOPE OF THE STUDY: The study will provide the scopes of knowing the following: (I) (II) (III)

(IV) (V)

Data Analysis Processing: The classified and tabulated data has been analyzed elaborately in a number of tables in an analysis part. SWOT analysis as used as qualitative analysis to evaluate the performance of BRAC Bank . Comparative analysis is also done to compare the performance of BRAC Bank operations. After collection of the raw data different computer softwares are used for editing and processing such as- MS-Excel, MS-Word, MS-PowerPoint. 1.5. LIMITATIONS:

The study has suffered from a number of barriers. Such aso Data from BRAC Bank is highly confidential for the outside people. No banks in Bangladesh want to disclose their important process related activities as it is linked with the question of profitability. o It was difficult to communicate with the senior officers of the department, as many of them were unable to give me much time for interview. o Some of the important information is backdated. o Time is also a big constraint for my report. I have to submit a broader report within a very short period of time.

2.0 History of Banking The Jews in Jerusalem introduced a kind of banking in the form of money lending before the birth of Christ. The word 'bank' was probably derived from the word 'bench' as during ancient time Jews used to do money -lending business sitting on long benches. First modern banking was introduced in 1668 in Stockholm as 'Svingss Pis Bank' which opened up a new era of banking activities throughout the European Mainland. In the South Asian region, early banking system was introduced by the Afghan traders popularly known as Kabuliwallas. Muslim businessmen from Kabul, Afghanistan came to India and started money lending business in exchange of interest sometime in 1312 A.D. They were known as 'Kabuliwallas'. 2.1 Banking in Bangladesh: The banking system at independence consisted of two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen smaller commercial banks. Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. 2.2 NUMBER AND TYPES OF BANKS The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177. Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks.

2.3 BANGLADESH BANK Bangladesh Bank (BB) has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also Bangladesh Bank (BB) has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the government's monetary policy and implementing it thereby. The BB has a governing body comprising of nine members with the Governor as its chief. Apart from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal. 2.4 SERVICES (Accounts, FDR, PDS, Deposit Scheme) Current Account Generally this sort of account opens for business purpose. Customers can withdraw money once or more against their deposit. No interest can be paid to the customers in this account. If the amount of deposit is below taka 1,000 on an average the bank has authority to cut taka 50 from each account as incidental charge after every six months. Against this account loan facility can be ensured. Usually one can open this account with taka 500. One can open this sort of account through cash or check/bill. All the banks follow almost the same rules for opening current account. Savings Bank Account Usually customers open this sort of account at a low interest for only security. This is also an initiative to create people's savings tendency. Generally, this account is to be opened at taka 100. Interest is to be paid in June and December after every six months. If money is withdrawn twice a week or more than taka 10,000 is withdrawn (if 25% more compared to total deposit) then interest is not paid. This account guarantees loan. Almost all the banks follow the same rules in the field of savings account, except foreign banks for varying deposit. On an average, all the banks give around six percent interest. INTERNET BANKING Customers need an Internet access service. As an Internet Banking customer, he will be given a specific user ID and a confident password. The customer can then view his account balances online. It is the industry-standard method used to protect communications over the Internet.

To ensure that customers' personal data cannot be accessed by anyone but them, all reporting information has been secured using Version and Secure Sockets Layer (SSL). HOME BANKING Home banking frees customers of visiting branches and most transactions will be automated to enable them to check their account activities transfer fund and to open L/C sitting in their own desk with the help of a PC and a telephone. ELECTRONIC BANKING SERVICES FOR WINDOWS (EBSW) Electronic Banking Service for Windows (EBSW) provides a full range of reporting capabilities, and a comprehensive range of transaction initiation options. The customers will be able to process all payments as well as initiate L/Cs and amendments, through EBSW. They will be able to view the balances of all accounts, whether with Standard Chartered or with any other banks using SWIFT. Additionally, transactions may be approved by remote authorization even if the approver is out of station. AUTOMATED TELLER MACHINE (ATM) Automated Teller Machine (ATM), a new concept in modern banking, has already been introduced to facilitate subscribers 24 hour cash access through a plastic card. The network of ATM installations will be adequately extended to enable customers to non-branch banking beyond banking. TELE BANKING Tele Banking allows customers to get access into their respective banking information 24 hours a day. Subscribers can update themselves by making a phone call. They can transfer any amount of deposit to other accounts irrespective of location either from home or office. SWIFT Swift is a bank owned non-profit co-operative based in Belgium servicing the financial community worldwide. It ensures secure messaging having a global reach of 6,495 Banks and Financial Institutions in 178 countries, 24 hours a day. SWIFT global network carries an average 4 million message daily and estimated average value of payment messages is USD 2 trillion. Swift is a highly secured messaging network enables Banks to send and receive Fund Transfer, L/C related and other free format messages to and from any banks active in the network. Having SWIFT facility, Bank will be able to serve its customers more profitable by providing L/C,

Payment and other messages efficiently and with utmost security. Especially it will be of great help for our clients dealing with Imports, Exports and Remittances etc.

2.5. INDUSTRY ANLYSIS: Banking Industry is one of the most promising industry of our country. The importance of the sector revealed through its contribution in the economic growth of the country. This sector accelerates economic growth through mobilizing funds from surplus unit to the deficit unit. Banking Industry is moving towards with rapid changes due to technological innovation and diversified needs of its customers. Commercial banks are the Banks that accept deposits from the public and lend them mainly to the commercial organizations for short periods of time. As they finance mainly commerce, they are called commercial banks. They are also called deposit banks, as they accept deposit from the public and lend them for short and long time periods. 2.6. BANKING SCETOR IN BANGLADESH: Banking sector has a vital role to play in the economic activities and development of any country. This sector is much more important in a developing country like Bangladesh. The whole scenario of the economy of a country can be ascertained by examining the condition of the banking sector. In Bangladesh, the banking sector dominates the financial sector and macroeconomic management largely depends on the performance of the banking sector. Banking sector grew primarily in the public sector with main emphasis on restructuring of the financial system and development needs of the war-torn economy with gradual liberalization in subsequent years. It was increasingly felt that banks should be allowed in the private sector for giving a fillip to development process on the basis of private initiative. In the 80s for the first time a number of banks in the private sector were allowed. Subsequently in the mid 90s some more banks in private sector also commenced operations. Finally, in 1999, 3 rd generation of private sector banks was given permission to operate. As a result while up to 80s public sector

banks dominated financial sector, banks in the private sector were given increased responsibility with the passage of time. Private commercial banks are divided into three groups according to their commencement of business. They are familiar in the name of 1st generation, 2nd generation and 3rd generation banks. 2.6.1 1st Generation Banks (Established 1982-1988): National Bank Limited, The City Bank Limited, United Commercial bank Limited, AB Bank Limited, IFIC Bank Limited, Islami Bank Bangladesh Limited and Al-Baraka Bank Bangladesh Limited. 2.6.2 2nd Generation Banks (Established 1992-1996): Eastern Bank Limited, Brac Bank Limited, National Credit & Commerce Bank Limited, Southeast Bank Limited, Dhaka Bank Limited, Al Arafa Islami Bank Limited, Social Investment Bank Limited and Dutch-Bangla Bank Limited. 2.6.3 3rd Generation Banks (Established 1999 to present): Mercantile Bank Limited, Standard Bank Limited, One Bank Limited, EXIM Bank Limited, Premier Bank Limited, Mutual Trust Bank Limited, First Security Bank Limited, Bank Asia Limited, The Trust Bank Limited, Jamuna Bank, BRAC Bank LTD. and Shahjalal Bank Limited etc. 3 Service Marketing in Banks The ongoing process of economic reforms has completely changed the operational environment for the whole banking industry in the country. Banks are now required to cope with stiff competition in business and also the complex regulatory norms regarding capital adequacy and provisioning. Banks are forced to adopt various marketing techniques and approaches. Thus, marketing has become imperative for all banks including those in the public sector. Marketing in banks can be stated as a new phenomenon that is shaping well over the past one decade. Public sector bank hardly considered marketing as a tool for business. The competition, deregulation that followed the reforms has changed the environment for

banks, where marketing has occupied the place in the business of banks. Today, marketing in the banking industry is characterized by many innovations in products and services, use of advanced technology in product design, up gradation of delivery system, advertising and sales promotion activities, whether in public sector or private sector. Banks now have a firm that marketing strategies alone can brighten the future of banking business. Marketing in banks has become synonymous with customer and banks are found engaged in several activities of discovering, creating and satisfaction customer needs. In Bangladesh banking is at cross roads today. With the deregulation and liberalization process in full swing, the consequent policy changes introduced in the financial system in general and banking in particular are effecting unprecedented changes in its functioning. With the emerging changes did spring up new challenges of commercial viability, cost effectiveness, effective marketing strategy, etc. Market oriented policies also gave birth to new players like foreign and private sector banks and subsidiaries offering varied high tech and cost effective Service. There was an absolute shift from sellers into buyers market, establishing the consumer as the key factor in the market. The dictum as the bank exists because of its customers, has become more pronounced and relevant in the present context. Thus, marketing constitutes the key strategy for banks to retain good customers and also anticipate their future demands. 3.1 Bank marketing Deryk Weyer of Barclays Bank call it a process, consisting of identifyingthe most profitable markets now and in future; assessing the present and thefuture needs of the customers; setting business development goals andmaking plans to meet them; and managing various services and promotingthem to achieve the plans all in the context of a changing environment inthe market. Awareness among Customers Modern technology has made customers aware of the developments in theeconomic environment, which includes the financial system. Financial needsof the customers have grown multifold into various forms like quick cashaccessibility, money transfer, asset security, increased return on surplusfunds, financial advice, deferred payments etc. With a wide network of branches, even in a dissimilar banking scenario, customers expect the banksto offer a more and better service to match their demands and this hascompelled banks to take up marketing in right earnest.

Quality as a Key Factor With the opening up of the economy, fast change has been experienced inevery activity, and banking has been no exemption. Quality is the watchwordin the competitive world, which is market driven and banks have had to faceup to this emerging scenario. In fact, it may not be out of place to reiteratethat quality will in future be the sole determinant of successful bankingventures and marketing has to focus on this most crucial need of the hour. Growing Competition Increased completion is being faced by the banking industry from within the system with other agencies both, local and foreign, offering value added services. Competition is no more confined to resource mobilization but also to lending and other areas of banking activity. The foreign commercial bank with their superior technology, speed in operations and imaginative positioning of their services has also provided the necessary impetus to the banks to innovate and complete in the market place. Technological Advances Technological innovation has resulted in financial product developmentespecially in the international and investment banking areas. The westernexperience has demonstrated that technology has not only made execution of work faster but has also resulted in greater availability of manpower for customer Contact. 3.2 THE MARKETING MIX IN BANKING SECTOR SERVICE With the need for marketing in banks having evolved out of the changing environment and constant interplay of various interdependent factors, the importance of a systematic approach to marketing cannot be over stressed. The application of a marketing approach in banks will therefore involve. a. Identifying customers financial needs and wants; b. Developing appropriate banking services to meet these needs. c. Pricing for the services so developed. d. Setting up suitable outsells / banks branches. e. Advertising to promote the services to the existing as well as prospective customers.

Recently, banks are in a period that they earn money in servicing beyond selling money. The prestige is get as they offer their services to the masses. Like other services, banking services are also intangible. Banking services are about the money in different types and attributes like lending, depositing and transferring procedures. These intangible services are shaped in contracts. The structure of banking services affects the success of institution in long term. Besides the basic attributes like speed, security and ease in banking services, the rights like consultancy for services to be compounded are also preferred. 1. PRICE The price which is an important component of marketing mix is named differently in the base of transaction exchange that it takes place. Banks have to estimate the prices of their services offered. By performing this, they keep their relations with extant customers and take new ones. The prices in banking have names like interest, commission and expenses. Price is the sole element of marketing variables that create earnings, while others cause expenditure. While marketing mix elements other than price affect sales volume, price affect both profit and sales volume directly. Banks should be very careful in determining their prices and price policies. Because mistakes in pricing cause customers shift toward the rivals offering likewise services. Traditionally, banks use three methods called cost-plus, transaction volume base and challenging leader in pricing of their services. 2. DISTRIBUTION The complexity of banking services are resulted from different kinds of them. The most important feature of banking is the persuasion of customers benefiting from services. Most banks services are complex in attribute and when this feature joins the intangibility characteristics, offerings take also mental intangibility in addition to physical intangibility. On the other hand, value of service and benefits taken from it mostly depend on knowledge, capability and participation of customers besides features of offerings. This is resulted from the fact that production and consumption have non separable characteristics in those services. Most authors argue that those features of banking services makes personal interaction between customer and bank obligatory and the direct distribution is the sole alternative. Due to this reason, like preceding applications in recent years, branch offices use traditional method in distribution of banking services.

3. PROMOTION One of the most important element of marketing mix of services is promotion which is consist of personal selling, advertising, public relations, and selling promotional tools. A. PERSONAL SELLING Due to the characteristics of banking services, personal selling is the way that most banks prefer in expanding selling and use of them. Personal selling occurs in two ways. First occurs in a way that customer and banker perform interaction face to face at branch office. In this case, whole personnel, bank employees, chief and office manager, takes part in selling. Second occurs in a way that customer representatives go to customers place. Customer representatives are specialist in banks services to be offered and they shape the relationship between bank and customer. B. ADVERTISING Banks have too many goals which they want to achieve. Those goals are for accomplishing the objectives as follows in a way that banks develop advertising campaigns and use media. 1. Conceive customers to examine all kinds of services that banks offer 2. Increase use of services 3. Create well fit image about banks and services 4. Change customers attitudes 5. Introduce services of banks 6. Support personal selling 7. Emphasize well service Advertising media and channels that banks prefer are newspaper, magazine, radio, direct posting and outdoor ads and TV commercials. In the selection of media, target market should be determined and the media that reach this target easily and cheaply must be preferred. Banks should care about following criteria for selection of media. 1. Which media the target market prefer 2. Characteristics of service 3. Content of message 4. Cost 5. Situation of rivals

Ads should be mostly educative, image making and provide the information as follows: 1. Activities of banks, results, programs, new services 2. Situation of market, government decisions, future developments 3. The opportunities offered for industry branches whose development meets national benefits. C. PUBLIC RELATIONS Public relations in banking should provide; 1. Establishing most effective communication system 2. Creating sympathy about relationship between bank and customer 3. Giving broadest information about activities of bank. D. SELLING PROMOTIONAL TOOLS Another element of the promotion mixes of banks is improvement of selling. Mostly used selling improvement tools are layout at selling point, rewarding personnel, seminaries, special gifts, premiums, contests. 3.3 DEVELOPMENT IN MARKETING SCOPE AT THE ASPECT OF SERVICE MARKETING Marketing scope develops day to day. These developments carry special significance for service sector in which customer and service producer interact closely. INTERNAL MARKETING Especially in service sector like external relations, internal relations also have significance. It requires finding and keeping successful personnel. For personnel of the organization to be considered their own goals and service situation, values of the organization are sold to them. The communication techniques carried out for customers are also performed for the personnel in internal marketing and this two techniques go together. For example, the ads that aim creating firms image should be prepared with regarding to audience which is composed of firms personnel. NETWORK MARKETING This approach takes the organization as a sequence which involves producer and customer that market services to each other in the organization. In this structure, the activities of departments that compose organization would be more focused on market. This will also affect the structure of organization. RELATIONSHIP MARKETING

It was mentioned that close relationship was established between producer and customer in service sector. In addition to this, life cycle of a customer relationship was also mentioned under the product outline. According to the researchers, maintaining the relationship for extant customer increases the profit of firms. It should be emphasized that this fact has an importance for service sector. 3.4 Service marketing Service marketing is defines that is essentially intangible and does not result in the ownership of anything .Its production may or not be tied to a physical product .A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything .Marketing is the foundation of business operations. Understanding the various marketing services and their functions helps the for profit or nonprofit organization reach their goals. Marketing is the process of persuading potential consumers to buy the organization's product or service. Marketing services are the methods used in the overall marketing plan of production, pricing, promotion and distribution. The main marketing services consist of market research, advertising, promotion and public relations.Market research involves gathering statistical data to develop the organization's marketing strategy and plan. 4. An Overview of BRAC Bank LTD.:

2.3.1 BRAC:

BRAC Bank Limited, a scheduled commercial Bank, commenced its business operation in Dhaka, Bangladesh on 4 July 2001. The Bank is mainly owned by the largest NGO in Bangladesh BRAC. The Bank has positioned itself as a new generation Bank with a focus to meet diverse financial needs of a growing and developing economy. The Bank has embarked with an avowed policy to promote broad based participation in the Bangladesh economy through the provision of high quality banking service based on latest information technology. The Bank will ensure this by increasing access to economic opportunities for all individuals and businesses in Bangladesh with a special focus on currently underserved enterprises and households across the rural-urban spectrum. We believe that increasing the ability of underserved individuals and enterprises to build their asset base and access market opportunities will increase the economic well being for all Bangladeshis.

2.1 HISTORY OF BRAC BANK

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2004 and 2007. The Bank operates under a "double bottom line" agenda where profit and social responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh. A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last six years of operation, the Bank has disbursed over BDT 7500 corer in loans to nearly 2,00,0,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. Since inception in July 2001, the Bank's footprint has grown to 56 branches, 429 SME unit offices and 112 ATM sites across the country, and the customer base has expanded to 4,65,000 deposit and 1,87,000 advance accounts through 2008. In the years ahead BRAC Bank expects to introduce many more services and products as well as add a wider network of SME unit offices, Retail Branches and ATMs across the country.

BRAC Bank intends to set standards as the Market leader in Bangladesh. It will demonstrate that a locally owned institution can provide efficient, friendly and Modern full- service banking on a profitable basis. It will produce earnings and pay out dividends that can support the activities of BRAC, the Banks major shareholder. Development and poverty alleviation on a countrywide basis needs mass production, mass consumption and mass financing. BRAC Bank goal is to provide mass financing to enable mass production and mass consumption, and thereby contribute to the development of Bangladesh. The Banks goals are thus aligned with hose of BRAC.

2.2 SHAREHOLDING STRUCTURE

The shareholding structure of BRAC Bank Limited consists of different group with institutional shareholdings by BRAC, International Finance Corporation (IFC), Shore cap International and general public is also included through IPO.

BRAC BRAC, a national, private organization, started as an almost entirely donor funded, small-scale relief and rehabilitation project initiated by Fazle Hasan Abed to help the country overcome the devastation and trauma of the Liberation War and focused on resettling refugees returning from

India. Today, BRAC has emerged as an independent, virtually self-financed paradigm in sustainable human development. It is one of the largest Southern development organizations employing 97,192 people, with 61% women, and working with the twin objectives of poverty lleviation and empowerment of the poor. A International Finance Corporation International Finance Corporation (IFC) is the commercial wing of World Bank. Using certain channels and overseas representatives, IFC it helps local financial institutions find profitable ways to target small and medium sized companies. Funding comes from the Asian Development Bank, Canada, the European Commission, the Netherlands, Norway, United Kingdom and IFC itself. IFC is a 19% shareholder in BRAC Bank. A new assistance program signed in August 2005 aims to double the banks number of small and medium enterprise clients in 18 months through campaigns to target women entrepreneurs and rural clients, introduce new products and train ranch managers. B Shore Cap International Shore Cap International Ltd. is an international private non-profit, equity company seeking to invest in small business banks and regulated micro finance institutions in countries with developing and transitional economies. Founded in mid 2003, Shore Cap has a current base of $28.3 million in capital commitments and seeks to support the growth of development finance institutions in Africa, Asia and Eastern Europe. The institution has made investments totaling $7 million in Bangladesh, India, Cambodia, Armenia, Mongolia and Kenya. Shore Bank is a 9% investor of Shore Cap and runs the management company, which oversees investment activities. Shore Cap typically invests between $500,000 and $2 million for an ownership position of 1025% of a company. As a minority shareholder, Shore Cap seeks financial institutions with a strong, experienced management team and a committed set of local development-minded investors. Shore Cap currently owns 18% of BRAC Bank Limited.
SHAREHOLDERS BRAC IFC Shore Cap International GenPO eral Publication Through IPO Non Resident Bangladeshis PERCENTAGE 31.74 % 9.50% 8.76% 40% 5%

Mutual Funds Through IPO Total

5% 100%

Sources and Application of Funds

Main source of fund is customer deposits and bank utilize major portion of the fund for loan and advances and investments. A portion of fund is maintained in the form of cash and cash equivalents to maintain Statutory Liquidity Ratio and Cash Reserve Ratio.

2.3 GOALS
BRAC Bank will be the absolute market leader in the number of loans given to small and medium sized enterprises throughout Bangladesh. It will be a world - class organization in terms of service quality and establishing relationships that help its customers to develop and grow successfully. It will be the Bank of choice both for its employees and its customers, the model bank in this part of the world.

2.4 VISION
Building a profitable and socially responsible financial institution focused on Markets and Bu siness with growth potential, thereby assisting BRAC and stakeholders build a just, enlightened , healthy, democratic and poverty free Bangladesh".

2.5 MISSION
Sustained growth in 'small & Medium Enterprise' sector Continuous low cost deposit growth with controlled growth in Retained Assets Corporate Assets to be funded through self-liability mobilization. Growth in Assets through Syndications and Investment in faster growing sectors. Continuous endeavor to increase fee based income Keep our Debt Charges at 2.5 % to maintain a steady profitable growth Achieve efficient synergies between the bank's Branches, SME Unit Offices and BRAC field offices for delivery of Remittance and Bank's other products and services Manage various lines of business in a fully controlled environment with no compromise on service quality Keep a diverse, far flung team fully motivated and driven towards materializing the bank's vision into reality.

2.6 CORPORATE VALUES

BBLs strength emanates from their owner - BRAC. This means, we will hold the following values and will be guided by them as we do our jobs. Value the fact that we are a member of the BRAC family Creating an honest, open and enabling environment Have a strong customer focus and build relationships based on integrity, superior service and mutual benefit Strive for profit & sound growth Work as a team to serve the best interest of our owners Relentless in pursuit of business innovation and improvement Value and respect people and make decisions based on merit Base recognition and reward on performance

Responsible, trustworthy and law-abiding in all that we do

2.7 ACHIEVEMENTS
Fastest growing bank: BRAC Bank has been the fastest growing Bank in 2004 and 2007. It is one of the local private commercial bank that set the standard of banking for the leader bank of Bangladesh banking industry. Leader in SME financing through 429 SME unit offices: The idea of SME unit are become very popular to the BRAC bank customer. In the last six years of operation, the Bank has disbursed over BDT 7500 corer in loans to nearly 2,00,0,000 small and medium entrepreneurs. Biggest suit of personal banking & SME products: BRAC Bank has variety of products for their customer in Branch and also in SME office. Large ATMs (Automated Teller Machine) & POS (Point of Sales) network. Now BRAC Bank has 112 ATM Machine all over the country.

2.9 MANAGEMENT HIERARCHY OF BRAC BANK LIMITED

Board of director Chairman Vice Chairman Directors Managing Director Executives Senior Executive Vice President Executive Vice President Senior Vice President Vice President Senior Assistant Vice President First Assistant Vice President Assistant Vice President Officer & Staff

Senior Principal officer Principal Officer Senior officer Probationary officer Assistant officer/ Assistant cash officer

3: DEPARTMENTS OF BRAC BANK LTD

If the jobs are not organized considering their inter relationship and are not allocated in a particular department it would be very difficult to control the system effectively. If the departmentalization is not fitted for the particular works there would be haphazard situation and the performance of a particular department would not be measured. Brac Bank Limited does these works very well. Departments are as follows

Human Resource Department Financial Administration department Asset Operations Department Credit Division SME divisions Inter Control and Compliance Department Impaired Asset Management Probashi Banking Operations Treasury Front Treasury Back General Infrastructure Services IT

Customer Service Delivery Cards Division Phone Banking Cash Management Payment Service Loan Administration Department

3.1 WINGS OF BRAC BANK LTD.

BRAC Bank Limited consists of four major business divisions namely: A. Corporate Banking Division B. Retail Banking Division C. Small and Medium Enterprise (SME) D. Foreign Trade & Treasury

A. CORPORATE BANKING DIVISION:

Corporate Division provides full range of commercial banking products and services to any potential corporate clients including multinationals, large or medium local corporate, NGOs, institutional bodies. The Corporate Banking Division has a centralized structure through on-line banking system. Any credit facility is processed at the Corporate Banking Division, Head office. After sanctioning of the facility, the limit is put on line and the customer can enjoy the facility from any of the BRAC Bank branches. Strict adherence to internal control guidelines and other legal and statutory compliance are followed. The Credit approval process involves separate Credit Division, the Managing Director and finally the Board. Other departments like Foreign Trade, Treasury, and Credit Administration etc. play the support role for a comprehensive range of service to the Corporate Banking Division.

B. RETAIL BANKING DIVISION

Retail Division offers a wide array of lucrative and competitive banking products to the individual customers of the bank. Currently there are six lending products and a number of other attractive new products will be launched shortly. It also offers different types of term deposit scheme and attractive STD & Savings deposit schemes giving interest on daily balance.

C. SMALL AND MEDIUM ENTERPRISE (SME)

SME is an additional and specialized horizon of the bank which serves the banks special focus in promoting broad based participation by catering to the small and medium entrepreneur. The network of SME has already been established throughout Bangladesh. The SME market in Bangladesh is large. BRAC Bank is the absolute market leader in the number of loans given to small & medium enterprises throughout Bangladesh. The Bank disburses almost BDT 700crore of their loan to the SME unit. SME unit is dealing with small scale loan which is known as "ANONNO".

D. FOREIGN TRADE & TREASURY

Treasury Division is one of the major divisions of BRAC Bank. Treasury Division deals with money market. All treasury related products are processed in conformity with the Bank's Operational, Trading, Money market, Overnight, Term placing, Deal settlement, Commercial position keeping, Treasury, Credit, Finance & other applicable policies. Treasury Operations calculates investment figure, prepares the auction application, forwards the application to Bangladesh Bank for Bid and Treasury Operations maintains and reconciles all accounts with foreign and local banks.

The main wings of Brac Bank are described broadly below.

3.1. A: CORPORATE BANKING

The Corporate Banking Division provides full range of commercial banking products and services. Other Departments such as Foreign Trade, Treasury, and Credit Administration etc. plays the support role for a comprehensive range of service to the Corporate Banking Division. Why Corporate Banking: Quality of service Value of innovative solutions Level of trust with clients Market knowledge

Through the corporate banking clients have access to a wide range of financial services including: Debt capital Equity capital Ongoing relation support Financial markets

3.1. A.1 VALUES

Services to customers Quality in everything we do Competitiveness and a will to win Growth and development of our people Continuous productivity improvement Professionalism and ethics in all our actions Growing profit for our stakeholders

3.1. B: RETAIL BANKING

Division
Retail Division offers a wide array of lucrative and competitive banking products to the individual customers of the bank. Currently there are six lending products and a number of other attractive new products will be launched shortly. It also offers different types of term deposit scheme and attractive STD & Savings deposit schemes giving interest on daily balance. Retail Banking Division has the following departments: Alternative Delivery Channel Business Intelligence and Service Quality Cards Department Cross Selling Distribution Liability Value Center Non Funded Business Premium Banking Secured Value Center Unsecured Value Center

3.1. C: SMALL & MEDIUM ENTERPRISE BANKIN G DIVISION

SME Banking Division is a business division of BRAC Bank Limited that deals with Small and Medium sized Entrepreneurs involved in different types of business. SME banking division primarily provides loans to small and medium sized trading, manufacturing, service, agriculture, non-farm activities and agro-based industries located across the country.
Distribution

At present SME Banking Division has a reach in all 64 districts of the country through 427 unit offices. The functional designation of the loan officers who operate at the unit offices is Customer Relations Officers (CROs). A zone is comprised of 1-6 unit offices, where the person in-charge of the zone is known as a Zonal Manager. The reporting manager of a CRO is the Zonal Manager (ZM) or Associate Relationship Manager (ARM). Zonal Managers/ Associate Relationship Managers have the authority to approve a loan up to BDT 6 lac. There are 137 Zonal offices in SME Banking at present. A Territory is comprised of 6-12 zones. There are 14 territories at present. The reporting of a Zonal Manager is the Territory Manager. The Associate Relationship Managers

however eport to the Portfolio Managers. r

3.1. D: TREASURY AND FINANCIAL INSTITUTI ONS

Three major functional areas of Treasury & FI are Money Market, Asset Liability Management and Financial Institutions.

A) Treasury

A.1. MONEY MARKET

Money market is the financial market for short-term borrowing and lending. Key functions of money market are managing daily liquidity requirements and comply with SLR & CRR, Foreign Exchange Open Position and other regulatory requirements. Money market products have maturity up to one-year. Money market again has two broad divisions: Local Currency and Foreign Currency. Some money market products are Overnight Borrowing or Lending from Call Market, Placement or Borrowing from Term Market, Repo or Reverse Repo, Treasury Bills of 91 Days, 182 Days and 364 Days, foreign currency sale/buy (ready, spot, TOM, forward, SWAP). Ready transactions are cash transactions which are settled on the deal date. Tom transactions are settled one day after the deal date. Spot transactions are settled on the third day after the deal date. A forward transaction is a transaction, which takes place beyond Spot date. Treasury circulates Daily exchange rate sheet, which quotes the exchange rate for foreign currencies against local currency and the interest rate for FC FDR. For example 1 GBP = 1.91 USD

A.2. CAPITAL MARKET

The duration of Capital market products starts from one-year to Twenty years. Currently our overnment is offering Treasury Bonds of 5 Years, 10 Years, 15 Years and 20 Years. g

A.3. SECURITIES MARKET

Securities market offers Share, Preference Share, Bonds, Zero Coupon Bond and Debentures of different maturities.

4: PRODUCTS AND SERVICES

4.1 Products and Services
Deposit product Loan product Card product

4.1. A. DEPOSIT PRODUCT

Deposit Account

Accounts In BBL
Type Current Account (CD) Name 1.Current Account 2.Ezee Account 3.Bizness Account 4.Campus Account 5.Salary Account 1.Saving Account ount 2.Femina Account

Savings Account

Short Term Deposit Account Term Deposit Account

1.Short Term Deposit Account 2.Classic Deposit Account 3.Freedom Fixed Deposit it 4.Abiram Fixed Deposit 5.Interest Firs t Fixed Deposit 6.Money Multiplier 7.DPS & FDPS 1.Non Resident FC Account 2.Resident FC Account

Foreign Currency Account

Different Types of account

4.1. A.1 Current Account

An absolute transactional account through which a customer can transact any amount. This is a Cheque bearing account normally no interest paid, no bar on deposit and withdraw and it has easy access to other deposit and loan facilities. This account is normally operated by Businessman.

4.1. A.2. Savings Account A type of transactional account through which a customer can transact on a daily basis. Special features of this account include: Limitation on transaction & Size of transaction, large withdrawal require prior notice, Cheque bearing account, Interest paid on saving rate, Access to ther deposit facilities and loan facilities except overdraft facility. o

Product Name Saving Account

Description A regular savings account ffering you int erests on your deposit amount.

Special Features 8 transactions maximum Cash withdrawal and deposit Of above 5 need clarificatio ns No forfeiture rules or hidden costs Interest on daily balance No minimum balance No ledger fees Smart ATM/Debit card

Aporajita Account

Its a non cheque bearing account des igned exclusively for only lady custo mers with certain exclusive privilege s.

4.1. A.3. Short term Deposit account An absolute transactional account through which a customer can transact any amount with prior notice. Special features of this account include: Normally operated by businesses with less transaction and individual, more like current account, Interest paid, No bar on deposit & withdrawal, Access to other deposit facilities and loan facilities, Bar may be imposed on balance maintenance. 4.1. A.4. Term Deposit Account A type of non transactional Account and the amount payable after maturity only. Special features of this account include: Amount can be fixed by both business & individual with permission from bank, Interest paid is comparatively higher than TA. No access to other deposit facilities and loan facilities, Term Deposit receipts are given from ank, Example 1/3/6 month Fixed Deposit year fixed deposit, DPS etc. b
Product Name Fixed Deposit Description A term deposit with a guaranteed monthly return on investment. Opening Requirements A Current Account or Savings Ac count Special Features Competitive intere st rates Early encashment flexibility Secured Loan and/or

Abiram Account

BRAC Bank 'Abiram' Account is a special type of Fixed De posit scheme, which offers the flexibility & comfort of ha ving a

Secured Overdraft eligibility. Monthly interest on your deposit Attractive r ate of return 95% loan against deposi t

Interest First Fix ed Deposit

Guaranteed monthly return on your investment. This ti me you don't have to wait till maturity to receive interest on your Fixed Deposit. BRAC Bank Interest First Fixed D eposit gives the interest instantly at the time of your dep osit.

Instant interest on fixed Deposit Interest reinvestm ent opportunity Attra ctive rate of return Loan facility agains t the IFFD.

4.1. A.5. Foreign Currency account A type of Transactional accounts both national & foreigners can open. Special features of this account include: Rational require for opening such accounts (Business, Remittance, Foreign income), Special documentation require, Only authorized dealer (AD) branches can open, Can be interest bearing / noninterest bearing ,Maintained as per foreign Exchange guideline of Bangladesh Bank.

4.1. B. LOAN PRODUCTS

Name
Salary Loan Car Loan

Description
Keep an extra 15 month's salary in pocket. Client can get BRAC Bank Salary loan, Loa n against salary. If He/She is a salaried individual working in Bangladesh Why toy with your dreams when you can own one', BRAC Bank Car Loan can stop yo ur dreaming and Start driving Whether you want to purchase a brand new car or a re conditioned one, BRAC Bank have the most customerfriendly car loan scheme availa bfor you. 'Your gateway to the world' BRAC Bank Study Loan gives your child deserves the best education and you have planned it ahead. But worried about financing? BRAC bank h as the perfect solfor your child's future.

Study Loan

Travel Loan Credit Card Loan

'It's time to fly', BRAC Bank Travel Loan opens the door for planning to take a trip abr oad and worried about financing? Bank has fast and easy loan processing will simply add excitemeto your travel plan. When you have a credit card sky is your limit with BRAC Bank. Now, a credit card is a ll you need to get a loan from BRAC Bank. Loan can be used for any reason from buyi ng consumer goods, automobile to vacation expenses. Just decide what to do and start planning for it. A special scheme that allows you to avail cash at nominal interest rates. Your securit y is kept untouched in the Bank's custody avalue grows

Secured Lo an/ OD

Doctor's Loa AntiHeadache solution for Doctor's. BRAC Bank introducing Doctor's Loan, an exclus n ive loan facility for the Doctor's fraternity. Now practicing Doctor's can avail this loan very easily to meet their professional needs.

Secured Value Center

Secured Value Center is a part of Retail Banking that oversees all the secured asset products of the bank. Currently there are mainly five secured products that are being offered by the bank and these are follows: a. Auto Loan b. Secured Loan c. Secured Overdraft d. Home Loan

Unsecured Value Center

Unsecured Value Center (UVC) is the owner of all the Unsecured Products of BRAC Bank .The main purpose of this Center is to monitor, evaluate and boost business of UVC. It is also involved in market study, New Product Development, PPG amendment, maintaining extensive MIS and does everything for betterment of the business. UVC do their business through all the channels, i.e. Direct Sales, Distribution, PB and Cross Selling. Out these channels, Direct Sales is directly attached with the UVC. The main activity of the Value Center is to operate smooth business through the all the channels with value added.

4.1. C. CARD PRODUCTS

VISA Debit Card is three types: VISA Debit VISA Electron VISA Flag / Plus ATM Again this is to inform that Debit Card also needs PIN based technology to use it through. Account number in VISA or any other Debit Card can be embossed or without embossed (Indent printed).

Visa Debit Card: VISA cards are accepted at all BBL, VISA & Q-Cash ATMs & POSs.

DEPOSIT PREMIUM SCHEME (DPS)

A certain amount is deposited every month in an account (also called monthly pension scheme), which is accumulated over a specified period of time. Deposit Premium Scheme (DPS) is the most attracting deposit scheme that is offered by BRAC bank limited. Deposit Premium Scheme is specially designed for the fixed monthly income group. Upon maturity the total amount (total accumulated deposits with accumulated accrued interest) is made available to the DPS account holder. BRAC Bank is well poisoned to be the leading Personal Banking business amongst the local private banks. Bank's conscious efforts in brand building, introducing and supporting new packaged products, developing PB organization along with non-traditional delivery channels have resulted in good brand awareness amongst its chosen target markets. Installment based savings schemes are a major category of saving instruments amongst mid to upper middleincome urban population.

MARKETING ACTIVITIES OF BBL

CURRENT MARKETING ACTIVITIES
The current market activities of BBL are as follows: Promoting their existing product through their branches and outlets. BRAC Bank Participates in 1st Bangladesh Remittance Fair at Chittagong. BRAC Bank receives the prestigious DHL DAILY STAR BEST BUSINESS AWARD. BRAC Bank donates Tk. 50 Lacs to ICDDR, Bs Dhaka Hospital. BRAC Bank & Persona Organizes a Workshop on Beauty Solutions. BRAC Bank Sponsors a Workshop for Professional Women. BRAC Bank Launches its Premium Banking Lounge. BRAC Bank Distributes Prizes of Wall Magazine Competition to commemorate the event of International Womens Day 2010. BRAC Bank signs MoU with Apollo Hospitals Dhaka. BRAC Bank gets ICAB National Award. BRAC Bank receives National Award as the Highest VAT payer for the financial year 2007-2008. BRAC Bank participated in Career Fair. BRAC BANK CALENDAR 2010. Launching of SMS and Internet Banking. Bangla Academy recognizes BRAC Bank for its support.

7.2. MARKETING MIX

PRODUCT Corporate
Bizness account

CHARGES
Savings rate 4%, 5%, 7.50% etc. +15% vat 9201 400 tk. Debit card fee 520 Account Maintenance Feef. Short term 6.00% Tk 4 for every check leaPerson al loan rate 18%

Personal Banking Account count 1.Aporajita 2.Triple Benefit Savings AcScheme 3.Car Loan 4.Deposit Pension 5.Ezee Account 6.Campus Account ation Loan ey Multiplier 7.Educ 8.Mon 9.SME

PROMIOTION Different Kinds of

Promotional Activities CSR activities, Leaflet, prospectus Newspaper Award Workshop

PLACE 99 Branches, 112 ATM Booths and 429

SME Unit office

7.3. SOCIETAL MARKETING CONCEPT

Society, Customer and Profit these three are the factors of societal marketing concept.

Overall marketing size

In local office of BRAC bank ltd. the customer base has expanded to 400,000 depositors. Among these customers there are individuals, corporation, NFBI, govt. bodies, NGO, autonomous bodies

etc. but most of the customer of Dhaka bank is corporate customers.

Annual market growth rate:

The product quality of BRAC bank is high. They have different kinds of product and them always tries to ensure good quality products for their customers.

Brand reputation:
The band reputation of BRAC bank ltd. is also high. They have 9 years experience in banking sector. And in this period of time they tried to provide their customer verities of good quality products and services. Patience, focus, transparency, goal, experience, loyalty, care, sincerity, foresight, punctuality, trust, and knowledge these 12 commitments help the bank to create a trong band. s

Distribution network
The distribution network of BRAC bank ltd. Is strong enough to distribute the marketing activities of the bank throughout the country. So far BRAC bank has 56 branches and 112 ATM booths all over the country from which they are doing their marketing activities. Other than this they are participating in different occasions and events and promotional activities to promote their bank. The bank is also participating in social welfare activities and charity show.

PRODUCT PROMOTION

Strategic Promotion Plan

BRAC Bank select both type of qualitative and quantitative promotional tools for their product promotion.

8.1QUALITATIVE
Qualitative Promotion plan is the future goals of BRAC bank what they will try to achieve within the next few years. BRAC bank set short-term goals for 5 years & within that period of they devote all their resources & skilled manpower to avail the desired goals or targets. After the introduction BRAC bank has proved itself the leading small loan provider to small businesses & entrepreneurs in this industry. BRAC bank does not want to confine its business only to taking deposits & giving away loans but it has a well-diversified plan to deliver all the services provided by any multinational bank. BRAC banks ultimate goal is to become the market leader in banking industry & to reach the apex it has the following short-term goals. 8.1.1. Promotional Tools: Now days a business or organization success totally depends on what the promotional tools they using for their service or product. BRAC Bank use Billboards, Brochures, Leaflet, prospectus, Newspaper and on road advertisement for the promotion. BRAC Banks BSSO (Branch sales and Service Officer), CRO (Client Relationship officer) and Sales people is the main promotional party. BRAC bank has a satisfied customer segment they also promote the product to other client. 8.1.2. Geographic Expansion: For any successful business expansion is an inevitable part of the strategic plan. Crossing the border or define geographical boundaries indicates the growth of the business. BRAC bank started with a mission statement The Fastest Growing Bank. Indeed it is growing very rapid pace. BRAC bank is planning to set Branches to more than 60 districts within the next 5 Years. BRAC bank also established a branch in Afghanistan to prove its capital stre
ngths compare to other local banks.

8.1.3. New Customer Segment: BRAC bank is blessed with a high degree of corporate clients & household savings. BRAC bank is now trying to identify new segments & customer groups to facilitate its rapid expansion. The banks highly talented HR unit discovers that a large number of private university students belong to mostly affluent families. So they found potential business opportunity there if they can make ATM card available for this segment. To make this plan a real success BRAC bank has appointed highly motivated & energetic sales force & they are running various promotional campaigns in several private universities. 8.1.4. New POS, Booth: BRAC bank already established ATM booth to as many as 112 locations. By the end of 2009 they are going to set ATM booths to more than 200 locations

across the country. BRAC Bank is also providing point of purchase (POS) facility. This is nothing but making instant payment for the purchase at the location of purchase. Famous brands like Artistic, Aarong, DIA gold, PQS etc are now part of POS service. BRAC bank is planning to collaborate with at least 30 more brands to take the POS facility. 8.1.5. Branded Card: BRAC has a plan to collaborate with VISA & Master Card to provide randed card to their Corporate & High Class clients. B

8.2. QUANTITATIVE
The companys Quantitative Promotional plans are the objectives of the company that they must achieve within a particular time frame. The banks primary concern is making profit & thereby assisting the high growth potentials. At present the bank has 400000(two hundred thousand) deposit holders of various kind & the bank will try to get another 100000(one hundred thousand) clients in the coming 1 years. 8.2.1. Increase sales: Revenue is the heart of any business. A banks main source of income is the interest earned on loans provided, so a bank must have sufficient fund to provide loans & maintain strong liquidity positions. The main source of fund is the deposits of clients to various accounts like savings, current, fixed deposit scheme etc. Recently Brac bank has taken massive promotional programs to entice a vast group of customers to accept various services it offers. ATM card adds a new dimension for BRAC bank to give more value to the existing clients as well a new segment which is first time introduced by BRAC in Bangladesh called campus account, which is nothing but providing ATM card to university students with an initial balance of only Tk 2000.
8.2.2. SELLING STYLE: FOR TRANSACTION ACCOUNT: NEW BUSINESS SELLING Actually the con cept of BRAC ATM is totally new in Bangladesh. It came to the ATM market at the beginning of 2005. AS the products are new so they are following new business selling style for their ATM card, which is under TA (Transaction Account).

8.2.3. For (High Network) HNW: Missionary Selling HNW (High Network) sales manager deals with the sale of bulk customers like a corporation where they follow Missionary Selling. For new business selling the BRAC sales executives need to be very creative and enthusiastic. So they have to do their homework about the prospect on and on under the supervision of Sales Manager and Sales Team Leader. For Missionary Selling BRAC Bank basically send a bit higher level sales officials sometimes

the Sales Manager as they deal with Bulk customer. BRAC bank has now mainly four group of customer: 1. Existing customers 2. Students 3. Women 4. usinessman Challenges in New - Product Development Brac Bank has failed to get the market leading position for its delayed performance in the activities to get it to the highest possible position in the market. Elaborately meaningful contributions in the consumer mind can change the position of Brac Bank into a new place where it can show the consumers a new way to minimize the risk of their finance residing in the bank. The challenges Brac Bank could face are: a. The product fails to gain sufficient distribution coverage or support. b. Development costs are higher than expected. c. Competitors fight back harder than expected. New concept could lead the consumers to an unseen experience that they may not find comfortable. But for Brac Bank the introduction of new service will definitely bring benefit for both the customers and the bank itself. The experienced management has overcome all those issues in advance to avoid the failure of their possible new concept. Managing the Development Process: Ideas Step One: Idea Generation-Customers and Competitors have played the Role One of our initiatives is to continuously upgrade the system with technological developments and industry standards. The Bank believes that technology will greatly help us to serve the customers better and streamline our cost of operation. Possible Idea generation boxes are as follows: a. Customers b. Scientists c. Competitors d. Employees

e. Channel members and f. Top Management The bank was being motivated by Customers and Competitors greatly. But the employees were playing a supportive role to implement a new banking system where they will have to use only single software to run their daily operations rather than multiple ones. This will definitely ease their operational complications they face daily. Step Two: Idea Screening-IT got the highest priority Maintaining the standard banking operations all banks are keen to receive IT as a helping entity to enhance their process of service. Brac Bank was not different in this case for resolving their burning issues to be solved professionally. The local banking system providers are now under process to develop centralized real time banking system. The Bank has observed that with previous system it is not possible to offer modern delivery channel like SWIFT, ATM and POS network, SMS banking, Internet Banking. Creating a banking system where the customers will be able to use any branch for their banking was the core concept. Also the issues the bank has followed to ease the operational complicacies were in frontier too. Managing the Development Process: Idea to Concept Step Three: Concept Development and Testing-Customer Choice Dominated Mostly The product idea for Brac Bank was to initiate a process where the consumers will be able to do transactions in most possible ways for their easy operational services. For that purpose the bank has got the idea as follows: To allow consumers to do banking activities in most possible roaming way. Concept Development Concepts have been developed to make a better deal with the consumers to serve them in a better way. Initially the bank generated two concepts which could make the journey possible and easygoing. The concepts are: a. Concept 1: Allowing customers to receive all banking information in any branch along with the integrated service to use ATM over most possible outlets. b. Concept 2: The banking service provided with online facilities to meet the clients requirements over online Internet kiosks or home. Earlier concept sounded logical to the management to implement in the banking services along with the meaningful advanced services for the consumers. Concept Testing To test the possible services in the market Brac Bank was involved in dealing with two concepts.

The concepts were logical and also very prosperous for the bank but it is not always possible to get the concepts to become true always. Initial concept was succeeded in the incubator to reach the process of generating goodwill in the banking service market. When the consumers were asked some possible benefits they want from the bank and the respondent were very frequent to indicate the online banking system to which the bank is heading to. Rapid Prototyping For initiating a service in a bank it is quiet impossible to build a prototype as does not have any existence of a product. Virtual Reality The bank was keen to establish a sample issue where the consumers were given chance to get the facilities of an online banking. They were happy to receive the instructions and chose the idea of staying in queue for less time. Managing the Development Process: Concept to Strategy Step Four: Marketing Strategy Development-Was less focused issue Availing a healthy marketing status has put Brac Bank to avoid this process to their new product development to enhance the customer relationship in this process. The essentiality of developing marketing strategy is not extremely necessary for this bank. Meaning the indication to meet the results of existing marketing practice in house could save them from spending excessive time in this regard. Constant response from these non-interest benefits have been motivated the management not to invest money and time in refining the existing marketing strategy for online banking. Putting full effort to the newly adopted IT services was more important to Brac Bank to establish their existing concept of Customer service at an ease. This has helped the bank to think about the location benefits of its branches in different localities in regional dividing of Bangladesh to provide their utmost service to the customers. Formulizing the customer beneficial steps could help the bank to think twice not to spend time in this step for their newly developed product supported by IT enabled services. Managing the Development Process: Strategy Building Blocks Step Five: Business Analysis-Cost Minimized by Benefits After management develops the product concept and marketing strategy, it can evaluate the proposals business attractiveness. For providing better and secured customer services through introduction of modern IT-based products through all of its branches, the Bank intends to purchase a centralized branch banking software including following banking systems and processes:

a. Customer information system b. Any Branch Banking c. Commercial and corporate loans. d. SWIFT/Telex/FAX interfaces e. Fund Transfer f. Merchant Banking g. Tele banking h. Mobile banking i. ATM interface j. Credit Card/Debit Card interface. The Bank has already short-listed three vendors for providing software solution after going through a rigorous selection and evaluation processes. The status is such that one of the vendors could be selected from these three vendors after completion of site visit and financial negotiation. After selection of software the Bank selected network infrastructure. Stabilization of software and network will take around 1 to 1 years. Then the Bank will go for ATM switching system and ATM and POS network. Step Seven: Market Testing-Hindrances made it fail In product developmental process the consumers are given chances to test the service but the service is too sensitive to give it to the consumers to test for the initial time. Though the tests are possible like these: a. Trial b. First repeat c. Adoption d. Usage frequency Step Eight: Commercialization-The Final Process to Ignite Service Usually Commercialization is the process to take the final steps to reach the market in a progressive way. In this regard, Brac Bank was developing the product to refine the whole banking service in a very quick and fabricated version. The bank has succeeded to get the attention of prolonged benefits from the market. In typical commercialization process, these steps are generally followed: a. Launch the product b. Produce and place advertisements and other promotions

c. Fill the distribution pipeline with product Critical path analysis is most useful at this stage a. When: Right after the testing process has been finished the service was introduced to the consumers of Brac Bank Limited. For Brac Bank the service was First Entry. From the text possible entries are: i. First entry ii. Parallel entry iii. Late entry Whereas for the marker it is a late entry for existing competitors the use of online service is very common for them. b. Where: All branches of Brac Bank have been covered under this facility to provide the benefit to all of its consumers. c. To Whom: Existing and prosperous consumers were in the target of PBL to introduce the online banking system inside its house. d. How: The media coverage has done to attract the customer attention.