1. Introduction

Achievement of high economic growth is the basic objective of present economic policy of Bangladeshgovernment. In achieving this objective, the banking sector plays an important role. Standard Chartered is one of the world’s leading banks. It also operates in Bangladeshquite well. Credit card service is one of the most important services that SCB offers. This service is of great importance for the achievement of our banking sector and also SCB. This bank first introduced the credit card service in 1997 with a vision of giving prompt and effective banking services to its valued customers for 24 hours. Credit card is the most modern payment mechanism that enables people to consume different types of product and services without paying cash. (Fabozzi, Modighiani et al, 2002: 18; Hadjimichalakis, 1995:98) Credit card is not that much an old concept. A huge number of customers were attracted to purchase credit card facility, especially when Standard Chartered Bank and other commercial banks launched it in Bangladesh. It has many-fold benefits that really attract a wide segment of market in the personal banking sector, both in BD and in overseas. Despite the market growth of credit card in banking sector, it was hypothesized that with the coming up of a large number of local banks into issuing Credit Cards, it might be a threat to SCB about retaining its customer base. So, this situation has created an interest to know about the customer satisfaction level of SCB. So, the main concentration of the present study would be on the “Analysis of customer’s satisfaction regarding Credit card services on Gulshan Branch of SCB”.

1.1. Statement of the Problem

SCB has been launching new products along with the credit card services in order to satisfy their targeted customers. Since this study is entirely devoted to analyzing SCB’s credit card services, it seems essential to study as to what extent the existing customers of SCB’s credit card are satisfied. Naturally, it has become a great need for the purpose of the present study to get to know of the customers’ satisfaction regarding SCB-issued credit card. These days inBangladeshpeople are found to use credit card to a great extent. Local banks also have started issuing credit cards. There is, therefore, an obvious market growth of credit card in the banking sector. In spite of this, since local banks have entered the market for providing credit card services, it might be a problem for SCB to retain its reputation as a provider of credit card services to customers. Naturally, it has become a great need for the purpose of the present study to get to know of the customers’ satisfaction regarding SCB-issued credit card services. And in view of this, a study on customers’ satisfaction with respect to SCB’s credit card (Gulshan Branch) services has been felt important. It is also not possible to consider the all branches of SCB, we consider the Gulshan branch and assume it may represent the others branches of SCB The problem of the study may be stated in terms of following questions:

v     Is Standard Chartered Bank (SCB) effectively performing its jobs in regard to Credit card service?

v     What do the customers feel about the credit card services of SCB?

1.2. Objectives of the study

Broad objectives:

The broad objective of the present study is to analyze the existing customers’ about credit card services of SCB at Gulshan Branch.

Specific Objectives

To have an overall scenario of SCB’s credit card on a specific branch inBangladesh.(G.B)

To identify the major features of SCB Credit card

To assess the satisfaction levels of Gulshan Branch(G.B) customers regarding Credit card services of SCB

To study the factors the customers consider while acquiring SCB’s credit card

To study the annual fees and charges for the credit card of SCB as compared to other banks’ credit card fees and charges

To ascertain the factors causing dissatisfaction to the cardholders(G.B) in regard to SCB’s credit card services

To provide some recommendations for SCB to improve on the level of customers’ satisfaction

1.3: Scope of the study

The present study addresses itself to analyzing the existing customers’ perception about credit card services of SCB. The study also covers an investigation into the credit card services of SCB based on the bulletins and information supplied by SCB. The study is limited to the SCB’s head office located at Gulshan,Dhaka.

1.4. Rationale of the Study

The findings of this study will help consumer banking of SCB to understand the credit cardholders’ satisfaction level in regard to credit card services, as well as to know about their perception regarding its credit card. The Credit card department of SCB would be in a position to decide whether they need to build new strategies to meet customers’ ever changing needs. This study will also help the authority of SCB credit card division to find out the major problems of its credit card and also to get an idea about how they should offer better services compared to other banks. SCB will also be able to know how far the credit cardholders are satisfied with their credit card services.

1.5. Methodology

1.5.1. Population of the Study

The credit card holders of SCB who came to the Gulshan branch for making credit card’s payment and other queries regarding their card status. Total Population who uses Credit Card at

Gulshan Branch are estimated 500.

1.5.2. Sample of the study

49 credit cardholders are here considered as sample of the study. We assumed these 49 credit cardholders will represent the 500 credit card holders of Gulshan Branch.

Sample design:

A non-probability sampling procedure was used for this report. Customers who come to the branch remain busy. The judgmental sampling procedure was used here to select the sample units who could allow them to respond to the questionnaires.

1.5.3. Sample Unit

Each cardholder is a sample unit of Gulshan branch.

1.5.4. Types of Credit card

Credit Card of SCB has been divided into four strata:

Silver

Gold

Cricket

Platinum.

It deserves mention that the study has not taken into consideration the Cricket and Platinum credit cardholders. The reason is: cardholders in both the cases are very few in number. The bank is of the view that Cricket card is not offered regularly and Platinum card has been recentlyissued. So, the study has included only silver and gold credit cardholders.

1.5.5: Procedure of Collecting Information

            1.5.5.1. Primary Data

For the purpose of collecting primary data one set of questionnaire (with structured and unstructured questions) has been administered. In addition to this, face to face interview and interview over telephone have been conducted.

       1.5.5.2. Secondary Data

For the sake of collecting secondary information, books, journals and documentary evidences available with Standard Chartered Bank have been used. Some published materials of the bank under study have also been studied as a source of secondary data. They are:

SCB internal web site

SCB’s bulletin

Brochures & guide book for different features regarding credit card.

1.5.6: Questionnaire

The questionnaire administered to the respondents has been divided into two sections. Section I, which is on customer satisfaction level of credit card services of SCB, consists of six questions. All these questions have been designed which relates to SCB credit card, comprises 14 questions under 3sections. All these questions are both open ended & close ended.

1.5.7: Procedure of Data Analysis

For the purpose of analysis, data have been presented in terms of percentage. Besides, tables, charts and graphs have also been used. For this research, MS Excel has been used for the purpose graphical presentation and percentage calculation.

1.6: Limitations of the study

Large-scale research was not possible due to restrictions posed by the organization.

Original data could not be collected in some cases because of the SCB’s strict adherence to the principle of confidentiality.

This study has not covered the Cricket cardholders and Platinum cardholders, as they are very few in number.

Could not survey overall branches because of time limitations.

1.7. Definitions of the Important Terms Used in the Study

1.7.1. Customer satisfaction

It refers to the satisfaction of customers in terms of how they are satisfied with the politeness, knowledge and promptness of employees in handling busy customers. It also takes into consideration the perception of the customers as to whether the product or service is worth what they are paying for it.

1.7.2. Perception

In this study perception means a very deep natural understanding and awareness of the customers about the credit card services of SCB. In other words, it is a way how customers are seeing, understanding, and interpreting SCB’s credit card services from different angles.

1.7.3. Credit Card

A credit card is a piece of plastic and safer substitute to cash and is the major mode of payment worldwide.  It is a revolving loan facility, which can be used to purchase goods and services and withdraw cash at wide range of outlets.

1.7.4. Cardholder

Means an individual whose name is in a card account and who is responsible for all transactions and liabilities on the card account. It includes Primary and Supplementary cardholders.

1.7.5. Credit Limit

Credit limit means the maximum debit balance permitted by the bank for the cardholder for his or her account for the primary and the supplementary card.  Cardholder may request for enhancement of credit limit only after using the card for one year. The time for the enhancement limit takes 1 week or more based on the customer’s credit worthiness.

1.7.6. Flexible Credit Limit

Flexible credit limit means the balance permitted by the bank for cardholders is flexible. That means the cardholders can easily enhance their balance permitted by the bank.

1.7.7. Money link Card

A money link ATM service is free of charge. By it a cardholder can withdraw and deposit cash. Cheque deposits, chequebook request, change of PIN, printing of mini-statement and payment of utility bills.

1.7.8. Visa & Master Card

A “Visa” or “Master” symbol represents the different Logo respectively.  Visa started its operation in late 1958 inUSA.  That time the name of the card was “BankAmericacard”. The new name “Visa” was introduced in 1976.  Master card started their operation in 1976.  In 1978 the both organizations agreed to operate their operation jointly.

1.7.9. International Card

This card can be used inside or outside inBangladesh.  All transactions are billed in US $ regardless of the country in which card has been used.  This card is issued against the deposit of a RFCD (Residence Foreign Currency Deposit).

1.7.10. Local Card

Can be used inBangladeshonly and for payment of which bills are in Taka currency. This card is an unsecured credit.

1.7.11. Gold Card

This is one of the generous classifications of cards.  Gold Cardholders get some priority in every sector.  Gold Cardholders get highest credit limit from Tk.100, 000 to Tk. 4, 00,000 in local and US $ 5000 to US $4 30,000 in international markets.

1.7.12. Silver Card

Another classification of credit card is silver card.  The credit limit and other charges of this card are low as compared to Gold card.

1.7.13. Annual Fee

Annual fee is the fixed charge payable by each cardholder annually. By holding a credit card of SCB, each cardholder shall pay a fixed amount for a credit card.

1.7.14. ATM

Means an Automated Teller Machine or any card operated machine or device belonging to the banks or financial institutions. This machine accepts cards.

2.1. Organizational Overview:

Standard Chartered Bank derives its name after two banks – Standard Bank of British South Africa and the Chartered Bank ofIndia,AustraliaandChina. The merger took place in 1969. Standard Chartered Bank is regulated by the Bank of England and is a clearing bank in theUnited Kingdom.

The new millennium brought with it two of the largest acquisition in the history of the bank- the acquisition of the Grindlays Bank from the ANZ group for a consideration of $1.34 billion and acquisition of the Chase Consumer Banking Corporation in theHong Kongfor $ 1.32 billion. These acquisitions demonstrate Standard Chartered Bank’s firm commitment to the emerging markets.

Standard Chartered employs 29,000 people in over 500 offices in more than 50 countries. The group provides consumer-banking services to individuals and small to medium size businesses, and offers Wholesale Banking capabilities to corporate and institutional clients. With 150 years in the emerging markets the group has unmatched knowledge and understanding of its customers in its markets. Standard Chartered recognizes its responsibilities to its staff and to the communities in which it operates. Their 150 years of history gives them a deep better understanding of their markets, their customers, and the local communities in which they operate>It is a strong platform for future growth. Standard Chartered is holding leading positions in dynamic markets. They are in some of the world’s fastest growing markets including heUnited Arab Emirates,India,China, and the markets ofSouth Asia. They are present in many of their markets for several generations and have become a trusted partner to businesses and individuals. In other words, they are trusted and well respected provider of financial products and services. They have built up an enviable knowledge of local markets inAsia,Africa, the Americans and theMiddle East. In many cases, they have had a presence for more than a century. Their first two branches were inCalcuttaandShanghaiand we have been operating continuously inChinafor the last 144 years.

2.2 Business Activities of the Global Standard Chartered Bank: 

The bank provides a full range of products and services all around the world, some of which are mentioned here:

2.2.1. Global Consumer Finance:

There are seventy-six branches and finance centers under this division in about the countries with a workforce of 1616 employees. Some of the services provided by this division are unsecured personal loans, credit cards and retail store cards, vehicle related leases, etc.

2.2.2 Personal Banking:

There are about 410 branches with a workforce of 12,000 employees working under this division in 28 countries. Some of the services provided by this division are various kinds of insurance and loans, account maintenance, traveler’s cheques and money exchange etc.

2.2.3 Global Corporate and Institutional Banking:

There are 350 branches under this division. This division provides services in 42 countries. The services provided by this division are International Trade Management, Institutional banking, Treasury, Custody and Cash Management.

2.2.4 Global Custodial Service:

There are 17 offices under this division and about 900 staff members, operating in 14 countries and headquartered inSingapore. Standard Chartered Equator fulfils standard Chartered Bank’s strategic commitment to provide custody and clearing services in the Greater Asia. Standard Chartered Bank has one ofAsia’s leading custodians over 40 years. Equator’s focus is on the followings:

Commitment to equity

Dedication to the customer needs

Sustained investment in people and systems.

 2.2.5 International Trade Management:

Principles services of this division are to the people are Import Letter of Credits (L/C), Import Bills for Collection, Back to Back Letter of Credit, Direct Export Bills for Collection, Bulk Letter of Credit Collection, Bonds and Guarantees.

 2.2.6 Global Cash Management:

The division is operational in all countries where the group has Corporate & Institutional Banking division. Standard Chartered Bank recognizes the importance of Cash Management to corporate and institutional customers and offers a comprehensive range of services and liquidity management. Services provided worldwide by this division with stress on Asian delivery.

2.2.7 Global Electronic Banking:

Electronic Banking provides various types of support through a wide range of operating systems, sweeping transaction accessories with the provision of reporting features or other special functions.

2.3. Global Presence of Standard Chartered Bank

Standard Chartered Bank has its prominence presence in total of 48 countries:

(Based on Previous Data of SCB)

Standard Chartered Bank All Over the World (Based on Previous Data of SCB)

3.1. Standard Chartered Bank in Bangladesh

The Chartered Bank opened inChittagongin 1948, which was, at that time, the eastern region of the newly createdPakistan. The branch was opened mainly to facilities the post-war

re-establishment and expansion of South andSouth East Asia. The Bank opened its first branch inDhakain 1966 and shifted it’s headquarter fromChittagongtoDhakaafter the birth of theRepublicofBangladeshin 1971.

At present the Bank has 14 branches in Dhaka, it also have 1 offshore banking unit inside the Dhaka Export Processing Zone at Savar, 1 branch in Narayanganj, 3 branches in Chittagong,

1 branch inKhulna, 1 branch in Sylhet, 1 branch in Bogra. In the year 1999 Standard Chartered has acquired the operation of Grindlays Bank in theMiddle Eastand South East Asian countries. Former Grindlays Bank started its journey inBangladeshin 1905 under the name of Grindlays Bank (when it forbears the National Bank ofIndiaopened inChittagong). Standard Chartered Bank took-over the operation of ANZ Grindlays Bank inBangladeshas a part of acquisition of the South East Asian andMiddle Eastoperation of theAustraliaand New Zealand Banking Group. Standard Chartered Bank (SC) become the highest bidder quoting about AU$2.5 billion  (US$1.5 billion) after ANZ Banking group decided to sell its subsidiary, the ANZ Grindlays Bank operating mostly in the Middle east and South East Asian countries. The SC with its 18 branches and booths acrossBangladeshhas employed more than 600 people. The acquisition has enabled Standard Chartered Bank (SC) to access 500,000 new customer and 40 branches inIndia, and this made them one of the biggest banks in this region.

Fig 3.1 : Comparison in Terms of Deposit Among The Foreign Banks

After acquisition, Grindlays Bank is a part of Standard Chartered Group. The Bank presently has 18 outlets in 5 cities serving over 1, 25000 customers. The network of SCB Bank inBangladeshincludes:

14 Branches inDhakacity

1 Branch in Savar EPZ (recently started with full banking operations)

1 Branch in Narayanganj

3 Branches inChittagong

1 Branch inKhulna

1 Branch in Sylhet.

1 Branch in Bogra

The network of SCB engages itself for providing best quality banking service in retail, commercial and corporate banking segments. The countries top Enterprises; Multinational, Local Corporation and Financial institutions are served by SCB. With total asset based of BDT 17.5 billion and annual turnover of BDT 1.78 billion, SCB inBangladeshis among the top performing multinational bank.

3.2: Organizational Structure and some other aspects

The SCB inBangladeshhas its headquarters and fourteen branches inDhaka, three inChittagongand one each branch in Sylhet,Khulna, Narayanganj and Bogra. While the full range of services is available at the headquarters, other branches offer specific services appropriate for the location. The organizational structure of the Standard Chartered Group’s operation is depicted in the following figure:

Figure 3.2: Organizational Structure

Standard Chartered Bank started its business inBangladeshin 1948, opening its first branch in the port city ofChittagong. The bank increasingly invested in people, technology and premises as its business grew in relation to the country’s thriving economy. At present the bank has offices in six districts, including the country’s only offshore banking unit inside the Dhaka Export Processing Zone at Savar. Besides with the acquisition of ANZ Grindlays, the bank had more branches to serve its huge customer base from August 19, 2001.Continuous upgrading of technology and control system has enabled the bank to offer new services, which include unique ATMs and Phone banking.

Physical facilities of Standard Chartered Bank are outstanding comparing to other banks operating in this country. All the branches and cash offices are widely located and nicely decorated. Previously marketing efforts were being seriously constrained due to lack of physical facilities in some branches such asDhakaMain, Dhanmondi branch etc. After their renovation and extension, physical facilities upgraded significantly. Besides, introduction of PC Banking has developed the intra and inter communication system tremendously.

The SCB inBangladeshhas its headquarter and eleven branches inDhaka, three inChittagongand one branch in Sylhet,Khulna, Narayangonj and Bogra. The bank has seven business units, each under a head and some support units for efficient achievement of its target. While the full range of services is available at the headquarters, other branches offer specific services appropriate for the location.Dhakamain branch mainly consists of two divisions.

Business

Support

            3.2.1Business Division:

SCB is primarily corporate driven. More than the corporate banking generates 40% of its revenue group while Treasury contributes more than 20% to the overall revenue. The rest is generated from Personal Banking; Custodial Services and Institutional Banking. The business division has the following departments:

Corporate Banking Group (CBG)

Treasury (TSY)

Institutional Banking Group (IBG)

Consumer Banking (CB)

Custodial Services (CUS)

           3.2.2. Support Division:

The support division provides assistance to the above business activities and consists of the following departments:

Operations

Finance, Administration and Risk Management

InformationTechnologyCenter

Human Resource Department

Legal and Compliance

External Affairs and Credit

3.3. Product and services of SCB

Standard Chartered Bank is one of the largest international banks operating inBangladesh. It offers a full range of banking services and possesses the largestBangladeshnetwork of any international bank. There are two types of services provided by the SCB.

Corporate Financial Services

Consumer Financial Services

                                      Figure 3.3: Banking services of SCB

4.1: An overview on Credit card

A credit card is a piece of plastic used for purchasing goods and services and for obtaining cash disbursements on credit terms.  The use of plastic money is originated in theUnited Statesduring the 1920s, when individual companies such as hotel chains and oil companies, began issuing them to customers for purchases made at those business.  This use increased significantly after World War II. In 1951, Diners Club issued the first Charge Card to 200 customers who could use it at 27 restaurants inNew York. With this system’ the Credit Card Company charged cardholders an annual fee and billed them on a monthly or yearly basis. The American Express Company established another major charge card in 1958 as the American Express Card.

In 1950s, the Credit Card concept emerged where the bank credits the account of the merchant as sales slips are received and assembles charges to be billed to the cardholder at the end of the billing period. Bank of America issued the first Credit Card ‘BankAmerica’ in late 1958 inCalifornia,USA. This system was licensed in other states starting in 1966, and was renamed as VISA in 1976. At the same time, three different groups of banks that were not franchisees of Bank of America began activities that would later merge to become today’s MasterCard International. “Visa” or “Master” symbol represents the different Logo respectively.

Both organizations originally set out signing up member banks to issue cards, enroll merchants, and/or both. Competition was fierce. Banks that offered one card could not handle the other, thus losing money. More importantly, the merchants themselves were being forced to turn down sales from customers who did not carry the same card the merchant accepted. In 1978 the MasterCard International and VISA International organizations agreed to a concept of duality, in other words, banks could honor and issue both Credit Cards.

Credit cards are introduced for the use of credit-worthy customers. Users are issued with a card on production of which their signature accepted on bills in shops and establishments participating in the scheme. The banks thereby guarantee to meet the bill and recover from the cardholder through a single account presented periodically. In some cases users are required to pay a regular subscription for the use of the service as well. An extension of the scheme allows the repayment large sums over a period at interest. The bank guarantees to pay, for a specific charges, certain types of annual bills (fuel bills, mobile bills etc) promptly as they become due, whilst repayments are spread over a 12- monthly period from the customer’s current account. Some banks are using electronic machines, which will scan check and dispense notes and save time at the counter.

4.2: Credit Card Issuing Process of SCB

The process begins with compiling the credit card applications. With proper documentation, the bank gathers necessary information regarding the applicants. Then the risk assessment division checks the application and sends it to the Contact Point Verification (CPV) for further testing of the authenticity of the documents. They also approve or refuse the application afterward and determine the credit limit for the client. These jobs can be done either by the organization itself or through outsourcing. Then the bank prepares a master file and issues the cards and then delivers them to the customers. After receiving the card, cardholder can activate the card through the call centre or by using the card on the ATM machine.

  4.2.1. Requirements:

Completed credit card application form.

One copy of passport size photograph.

Minimum monthly income of Tk. 10,000 for Master and VISA Card Silver.

Minimum monthly income of Tk. 55,000 for Master Card Gold.

Documents (e.g. Salary Certificates, Income Tax Certificates, and six months bank statement, Photocopy of passport or other Documents).

For foreigners, work permit from the ministry is required.

4.2.2: Supplementary Cards

One may apply for supplementary card(s) for their spouse, parents, sisters, brothers, friends or children above 18 years of age. The first supplementary is free as long as one are holding the primary card. The supplementary cards will hold a separate account number, so that in case of loss or theft, only the affected card(s) need the cancellation. The unaffected card(s) continue to enjoy uninterrupted card usage.

4.3: Product range of Standard chartered credit card

4.3.1: Local Card

Visa Silver

MasterCard Cricket

MasterCard Silver

MasterCard Gold

4.3.2: International Card

Visa Silver

Visa Gold

4.4: Key Benefits of Standard Chartered Credit Card

4.4.1. Wide Acceptance

Standard Chartered Credit Card is accepted at over 5000 merchant outlates around the country. SCB’s wide range of merchants include hotels, restaurants, airline & travel agents, shopping malls and departmental stores, hospitals and diagnostic centers, jewellery shops, electronics and computer shops, leather goods & shoe stores, mobile phone & internet service providers, petrol pumps and many more! This number is increasing everyday to cater to the customers needs.

        4.4.2 Easy Repayment Facilities

With the Standard Chartered credit card, cardholders have the flexibility to pay as little as 5% of the outstanding (or Tk. 500, whichever is higher) on the card account every month, thus having the power and flexibility to plan the customers’ payments.

          4.4.3. Cash Advance Facilities

SCB cardholders can get instant cash advance up to 50% of card limit from any of the SCB ATMs, thus having access to cash 24 hours a day.

            4.4.4. Insta-Buys

InstaBuys is a unique installment plan that allows the customers’ to convert  any retail purchase over Tk. 3000 made by the credit card into an installment scheme. The customer can payback the amount in equal monthly installments (EMIs) over a tenor ranging from 6 to 36 months at a flat interest rate, as determined by the bank from time to time.

            4.4.5. Rewards Program

As a credit cardholder, the customer will accumulate treasure points for every purchase made by using the card. SCB’s rewards catalog is packed with a variety of products and gift vouchers at an unbeatable value and the customer can easily select his or her reward based on the number of treasure points the have earned. For every Tk. 50 spent on the customer credit card, the customer will earn 1 treasure point and be closer to redeeming the reward of his or her choice.

            4.4.6Auto Bills pay

With the credit card the customer no longer have to stand in long queues for paying his or her monthly bills of electricity, mobile phones, internet service providers (ISP) or cable TV. With auto bills pay the customer can authorize SCB to pay all these utility bill payment from his or her credit card while the customer will be relaxing at home.

            4.4.7: e – statements:

e-statements is a fast & reliable way for receiving his or her credit card’s monthly statements at his or her e-mail address, absolutely free. He or she can choose up to 3 e-mail addresses to access his or her financial information on the net. E-statements give him or her freedom to receive his or her financial information anywhere in the world & minimize his or her paper work.

            4.4.8: SMS Banking:

It is the simplest way of finding out his or her credit card’s current status on his or her citycell or grameenphone mobile through a SMS. He or she also receives a mini statement of his or her credit card through SMS, absolutely free.

            4.4.9: Card Cheque:z

It is a cheque book issued from his or her credit card. With card cheque, he or she can enjoy the convenience of a cheque book, which means he or she can make payment through cheques (A/C payee only) to any person or establishment. Card cheque is especially useful to him or her where credit card acceptance facility is not available (e.g. house rent, school fees, etc.).

            4.4.10. Safety Net!

He / she can insure every taka he / she spend through his or her credit card through safety net. This insurance comprehensively covers the entire dues on the credit card in the unfortunate event of death or permanent total disability of the cardholder. Every SCB credit cardholder is automatically enrolled in safety net with a 2 months’ free-trial-period. He / she can choose out anytime by simply calling SCB’s 24-hour call centre.

            4.4.11: Free All Accident Death Insurance:

The credit card give the cardholder a free all accidental death insurance coverage upto Tk 100,000 (for silver card) or Tk. 500,000 (for gold cardholder) in case of accidental death. This is also applicable for supplementary cardholders.

4.5: Limit enhancement

Cardholders can request for limit enhancement in writing. A cardholder must fulfill the following criteria for the limit to be enhanced:

Card account at least 1 year old.

Credit limit utilization at least 30%+ of approved limit.

Average payment should be fulfilled between 5%-90% in last month.

No limit increase in last year.

Debt burden Ratio of the customer should be <=50%

4.6: Processing of Credit card Application

The above flow chart is discussed in following steps.  Those are

Step-1

Application submitted to any SCB branch or Credit Card sales team are forwarded to the Credit Card Operation (CCO) Unit for capturing data into card Application Processing System (CAPS).  This process usually takes one working day.

Step-2

Applications are then forwarded to Consumer Credit Unit (CCU) for necessary credit assessment.  After credit review, all approved applications Specifying credit limits are sent back to Card operations.  The rejected applications are forwarded to sales teams for review or comments.

Step-3

Approved applications received at CCO are sent for Contact Point Verification (CPV) by outsourcer’s agencies. The agency verifies Telephone Number, residence and business address of the applicant and forwarded the report on each applicant to CCO.

Step-4

After receiving all CPV report, CCO forwards the approved applications along with CPV report to CCU for further review.  CCU revisits applications and any application with negative CPV is declined.  Previous set credit limit may be reviewed at this point based on CPV report.

Step-5

After this final review from CCU, approved applications are sent back to CCO for opening card accounts and producing plastics and PINS.  CCO sends a system-generated intimation to the applicants whose credit card application is declined.

Step-6

CCO arranges to deliver the card and PIN at customers mailing address.

4.7. SCB Credit Card Fees & Frees:

General

Fees

Other fees & charges (all cards)

6.1 Summary of Findings:

The following findings emerge from the analysis:

According to the feedback of the survey analysis, Auto bills- pay, e-statement, Instabuys, Reward and SMS banking are the major benefits of credit card at Gulshan Branch (Table # 5.1).

Majority of the respondents (i.e., 46.93%) were satisfied with SCBs (Gulshan Branch) services and benefits from credit card (Table # 5.2).

In case of credit limit of SCB’s credit card, quite a good majority of the customers (i.e., 57.14%) were dissatisfied while a very poor percentage of customers (i.e., 8.16%) were satisfied (Table #5.6).

The highest percentage of customers (i.e., 28.57%) regarded “Cost” as the most important factor at the point their acquiring credit cards. “Quality of the product”, “Credit card features”, “Reputation of Brand”, “Procedure of acquiring credit card” and “After-sales-service” were considered the second, third, fourth, fifth and sixth important factors before acquiring credit cards (Table # 5.8).

From the survey it has been found that SCB charges higher interest rate and annual fee as compared to other two banks (such as Prime bank and National bank). Majority of the cardholders were not satisfied with the annual fee and interest rate of SCB’s credit card (Table # 5.10, Table # 5.11).

SCB cardholders can use their credit cards in ATM machine. Other banks are also using ATM machine but that’s only for debit card, not for credit card. So, Standard Chartered Bank still holds the highest market share in credit card services.

High interest rate has been found to be the key factor for the dissatisfaction of most of the customers (i.e., 40.81%). They think that the time limit for card payment (within 45 days) is very short. After 45 days if they want to make the payment, they have to pay a high interest charge on the amount they used (Table # 5.12).

30% cardholders reported that they did not face any problem by using SCB credit card. But an overwhelming majority of the cardholders (i.e., 70%) stated that they faced several times unpleasant and embarrassing incidents such as excessive billing, ghost billing etc while they used SCB credit card for making payment (Figure # 5.2).

Despite the market growth of credit card in other financial institutions, it was found that Standard Chartered Bank is still having the highest market share. 64 percent of the cardholders are using SCB’s credit card and the rest 36% is covered by other financial institutions (Figure # 5.1).

6.3. Conclusion:     

Credit card is an immensely important mechanism of making payment all over the world. Credit card services have changed the dimension of life style of a section of people worldwide. To meet the growing need of the customers, Standard Chartered has introduced “Credit Card” facility, and has been offering banking services including credit card services round the clock. Credit card is not only a piece of plastic card; it is a safer substitute for cash and is the ideal mode of payment worldwide. People feel much secured while they carry credit card for the purpose of making payment in distant places. Standard Chartered Bank is the pioneer in respect of providing credit card services inBangladesh. SCB captured the market rapidly and its number of cardholders is increasing every year. But, since other banks (such as Prime, National, Premium bank) coming into this market, SCB has been facing a keen competition. Earlier it had a near monopoly market. In the current situation, the competition with other banks in respect of credit card services appears to be a threat to SCB.

After analyzing the customer’s satisfaction regarding Credit card it can be said that Standard Chartered is holding the highest market share as well as a very good image and position in the market except for a few issues. In the analysis, it can been seen that the annual fees and late payment fees of SCB credit card are very high as compared to other banks. SCB is not flexible about the credit limit compared to other banks and they take long time for processing the card. High interest rate, complex terms and conditions, limited opportunity to use credit card and unwillingness of shopkeepers in accepting card payment are the main reasons for customers’ dissatisfaction. So, to sustain and increase the performance of credit card, SCB should keep watchful eyes on those issues. SCB needs to put in all out efforts to retain the existing customers. SCB, for the purpose of overcoming the problems associated with its credit card services, needs to re-engineer its credit card services in terms of reducing interest rate and annual fee, increasing the number of merchant outlets and ATM terminals, as well as enhancing multi-dimensional service facilities for the customers.

To conclude: with the passage of time, credit card is gradually making its road into the economic domain ofBangladesh with increasing potency. The growth of credit card culture inBangladesh is promising. Arrival of new banks, in the market justifies this.

6.2 Recommendations:

SCB’s credit card division is very much inflexible about the credit limit. In general, it does not increase the credit limit before one year. Sometimes it takes more than a year for enhancing the credit limit. But other banks like Prime bank, National bank are more flexible about credit limit. Comparing SCB with other banks in respect of different charges, it has been found that annual fees of SCB’s credit card are higher than those of other banks. All the other banks provide more or less same services and facilities for their card holders. The conjoint cardholders of SCB and other banks are increasing day by day. So, SCB should reduce its annual fee and other charges to enhance the satisfaction of customers.

Card division employees should be pleasant behavioral.

The number of satisfaction level should be increase by providing benefits to customers. We have found ( 46.93%) were satisfied with SCB s (Gulshan Branch) services and benefits from credit card.

They should also increase the credit limit.

We found that 30% of customers did not face any problem while that 70% of customers faced many problems, we mentioned. So it may be recommended to take steps to reduce that type of problems.

Standard Chartered excelled other competitors by dint of quality of services and reputation. SCB first introduced the credit card inBangladeshmarket. But no published annual report is available in SCB. Therefore, for customers’ satisfaction, SCB needs to publish annual report and other detailed information regarding credit card. Card division is required to adopt and implement accurate programs that will give error-free calculations.

Bibliography

     Al-Emran, and Md.Zakir Hossain Bhuiyan (2003). “Marketing of Credit Cards in Bangladesh: Augmenting the Customer services”, DU Journal of Marketing, Vol.No.6 (June 2003): 45-55

Brochures on Credit Cards of SCB, National Bank, Prime Bank, Premier Bank and HSBC.

Cooper, Donald R. and Pamela S, Schindler (1998). Business Research Methods, ed. SixthBoston: MC Graw – Hill.

Faboezi, Frank J., Franco Modigliani, Frank J. Jones and Michael G. Ferri (2002).Foundation of Financial Market and Institution, ed 3^rd.Delhi: Pearson Education Limited

Hadjimichalakis and Hadjimichalakis (1995). Contemporary Money, Banking, And Financial Markets: Theory and Practice, Chicago: Richard D. Irwin, Inc.

      Kotler, Philip. 1994). “Marketing Management Analysis”, ed 8^th.New Delhi: Prentice Hall of India Pvt. Ltd.

Saunders, Mark, Philip Lewis and Adrian Thorm hill (2003). Research Method for Business Students, ed. 3^rd.Delhi: Pearson Education Limited

      Shekhar K. C. and Lekshmy Shekhar (1998). Banking Theory And Practise, ed Eighteenth, Reprint 2002.New Delhi: Vikas Publishing House Pvt Ltd.

Zikmund William G. (2000). Business Research Methods, ed. Sixth.Philadelphia: The Dryden press Harcourt College Publishers.

Standard Chartered Bank (SCB) – Bangladesh-2007

“Quarterly Credit Customer Satisfaction Survey – SCB Customers”

Dear Customer

I am working on my internship research project titled “Analysis of customers’ perception about credit card services of SCB” and conducting a study from SCB and  interested in your satisfaction with the credit services offered by SCB. The interview would not take more than 5 minutes of your time, and your responses will be kept completely confidential. . This study will be used to improve the quality of service of SCB regarding its credit card, as well as for my academic purposes. I thank you for your kind cooperation.

Questionnaire for Credit cardholders

Section: 1: Branch Service

Q. 1 All the things considered (orderliness, environment, cleanliness etc.), what is your overall rating of the branch services of SCB (using a scale of 1 to 10 where 10 is excellent and 1 is poor)?

Section: 2: Satisfaction level of credit card services of SCB

Q. 2.1 Services & benefits from SCB regarding credit card (using a scale of 1 to 10 where 10 is excellent and 1 is poor)

Excellent                                                                      Poor

10         9         8         7         6         5         4         3         2         1

Q.2.2 SCB employees’ undivided attention to credit card related transactions (using a scale of 1 to 10 where 10 is excellent and 1 is poor)

            Excellent                                                                      Poor

10         9         8         7         6         5         4         3         2         1

Q.2.3 Services from SCB during emergency situations (using a scale of 1 to 10 where 10 is excellent and 1 is poor)

            Excellent                                                                      Poor

10         9         8         7         6         5         4         3         2         1

Q.2.4 Using of SCB’s credit card in different booths (using a scale of 1 to 10 where 10 is excellent and 1 is poor)

            Excellent                                                                      Poor

10         9         8         7         6         5         4         3         2         1

Q.2.5 Credit limit on the SCB’s credit card (using a scale of 1 to 10 where 10 is excellent and 1 is poor)

            Excellent                                                                      Poor

10         9         8         7         6         5         4         3         2         1

Q.2.6 Overall services from SCB’s employees (using a scale of 1 to 10 where 10 is excellent and 1 is poor)

            Excellent                                                                      Poor

10         9         8         7         6         5         4         3         2         1

Section 3: Credit card of SCB

Q.3.1   Please identify the factors you consider while you think of acquiring Credit cards and     then rank them in order of importance (Most important = 1, Second most important =       2 and so on).

Reputation of Brand

Quality of the product (credit card)

Procedure of acquiring the product (credit card)

Products’ Features

After-sale service from SCB

Cost of acquiring the product (credit card).

Q.3.2   Do you know that SCB launches different types of facilities/services related to credit      card?

Yes

No

Q.3.3   If yes, please state those facilities / services and also specify which one is most   effective?

Facilities:

1) _____________________________________________________________________

2) _____________________________________________________________________

3) _____________________________________________________________________

4) _____________________________________________________________________

Most effective one:

_____________________________________________________________________

Q.3.4 Please specify the reasons for dissatisfaction (if any)?

High interest rate

Complex terms and conditions

Limited opportunity to use credit card

Unwillingness of shopkeepers of accepting card payment

Any other (please specify)

__________________________________________________________

Q.3.5 How is the annual fee of SCB credit card?

Very High

High

Moderately High

Low

Q.3.6 How is the interest rate of SCB credit card payment?

Very High

High

Moderately High

Low

Q.3.7   Have you ever had any problem in using credit card?

Yes

No

If yes, please specify the problem(s)

__________________________________________________________________________________

  Q.3.8 In your opinion, what SCB can do to improve on the level of customer s satisfaction?

_____________________________________________________________________

_____________________________________________________________________

Q.3.9. Please gives some suggestions regarding the improvement of SCB credit card.

Thank you very much for your most sincere help & cooperation.