Perspective of Consumer Finance in Bangladesh

1
Executive Summary

odern Banking is a result of evolutions driven by changing economic activities and lifestyles.
Entering a new millennium, banking needs have become more diverse and exotic than ever
before. As financial intermediaries, banks play a crucial role in the operation of most
economies. Recent research, as shown by Levine (1996), has shown that the efficacy of
financial intermediation can also affect economic growth. Crucially, financial intermediation
affects the net return to savings, and the gross return for investment. Regarding financial
structure, in countries with a more competitive banking sector, banks and banking assets
constitute a larger portion of the GDP (Gross Domestic Product). This study attempted to reveal
the facts about the strengths and weakness, if any, of the customer services with a view to have
an in-depth idea about the customer services of the Banking business. Credit division is the
heart of the Banking system. Under credit division credit management is the lifeblood of
managing risk in a customer portfolio. Credit management is mainly concerned with the credit
disbursement and recovery of loan. In order to strengthen credit management and recovery
position of the loans or advances by the Banks need to follow some techniques for credit
disbursement. The study would be helpful for banking sector of Bangladesh to improve the
quality of their services.

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An Overview of Financial Sector of Bangladesh

The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4
State Owned Commercial Banks (SCB), 5 government owned specialized banks, 30 domestic
private banks, 9 foreign banks and 29 non-bank financial institutions. Moreover, MRA has
given license to 298 Micro-credit Organizations. The financial system also embraces insurance
companies, stock exchanges and co-operative banks.

Finance Division

Bangladesh Bank (Central Bank)

SOCBs PCBs FCBs SOSCB NBFIs

(4) (30) (9) (5) (29)

 SOCBs- State owned Commercial Bank (4 nos.)

 PCBs- Private Commercial Bank (30 nos.)
 FCBs- Foreign Commercial Bank (9 nos.)
 SCBs- Specialized Commercial Bank (5 nos)
 NBFI- Non Banking financial Institution (29 nos)

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Bank Licensing
Bank Company Act, 1991, empowers BB to issue licenses to carry out banking business in
Bangladesh. Pursuant to section 31 of the Act, before granting a license, BB needs to be satisfied
that the following conditions are fulfilled: "that the company is or will be in a position to pay
its present or future depositors in full as their claims accrue; that the affairs of the company
are not being or are not likely to be conducted in a manner detrimental to the interest of its
present and future depositors; that, in the case of a company incorporated outside Bangladesh,
the Government or law of the country in which it is incorporated Bangladesh as the
Government or law of Bangladesh grants to banking companies incorporated outside
Bangladesh and that the company complies with all applicable provisions of Bank Companies
Act, 1991." Licenses may be cancelled if the bank fails to comply with above provisions or
ceases to carry on banking business in Bangladesh.

Central Bank
After the liberation war, and the eventual independence of
Bangladesh, the Government of Bangladesh reorganized the Dhaka
branch of the State Bank of Pakistan as the central bank of the
country, and named it Bangladesh Bank. This reorganization was
done pursuant to Bangladesh Bank Order, 1972, and the
Bangladesh Bank came into existence with retrospective effect from
16 December 1971.

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.

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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.

Private Commercial Banks

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State Owned Commercial Banks
The commercial banking system dominates the financial sector with limited role of Non-Bank
Financial Institutions and the capital market. The Banking sector alone accounts for a
substantial share of assets of the financial system. The banking system is dominated by the 4
State Owned Commercial Banks, (Sonali Bank, Rupali Bak, Janata Bank and Agrani Bank)
which together controlle more than 30% of deposits and operates 3383 branches (50% of the
total) as of June 30, 2008.

Foreign Banks

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Specialized Banks

Out of the 4 specialized banks, 2(Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank)
were created to meet the credit need of the agricultural sector while the other two (Bangladesh
Development Bank Limited BDBL & BASIC Bank Ltd.) are for extending term loans to the
industrial sector of Bangladesh.

Financial Institutions (FIs)

Twenty-nine (29) financial institutions are now operating in Bangladesh. Of these institutions,
1(one) is govt. owned, 15 (fifteen) are local (private) and the other 13(thirteen) are established
under joint venture with foreign participation. The total amount of loan & lease of these
institutions is Tk. 99,091.80 million as on 31 December, 2007. Bangladesh Bank has
introduced a policy for loan & lease classification and provisioning for FIs from December
2000 on half-yearly basis. To enable the financial institutions to mobilize medium and long-
term resources, Government of Bangladesh (GOB) signed a project loan with IDA, and a project
known as ``Financial Institutions Development Project (FIDP)`` has started its operation from
February 2000. Bangladesh Bank is administering the project. The project has established
``Credit, Bridge and Standby Facility (CBSF)`` to implement the financing program with a cost
of US$ 57.00 million.

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Basic Differences: Banking and Non Banking Financial Institution’s

In Bangladesh now different commercial banks and the non banking financial organizations
are operating there business. And every organization now involved attracting the retail
customers that means the middle income group people of the country. To draw their attention
the sells persons of different organization try to knock every possible door. These activities of
different organization increase the interest about this sector. As both commercial banks and the
non financial institutes are in the market, so it makes confusion to the general people about the
activities of these organizations. This article helps the customers to makes differentiate between
these.

Banks, usually a corporation, that accepts deposits, makes loans, pays checks, and performs
related services for the public. The Bank Holding Company Act of 1956 defines a bank as any
depository financial institution that accepts checking accounts (checks) or makes commercial
loans, and its deposits are insured by a federal deposit insurance agency. A bank acts as a
middleman between suppliers of funds and users of funds, substituting its own credit judgment
for that of the ultimate suppliers of funds, collecting those funds from three sources: checking
accounts, savings, and time deposits; short-term borrowings from other banks; and equity
capital. A bank earns money by reinvesting these funds in longer-term assets. A Commercial
Bank invests funds gathered from depositors and other sources principally in loans. An
investment bank manages securities for clients and for its own trading account. In making
loans, a bank assumes both interest rate risk and credit risk.

The commercial banks are described now a day by many agents of economic development and
social change. Their functions and roll are undergoing revolutionary changes client coverage
and extended beyond imagination.

While many people believe that banks play only narrow roll in the economy taking deposit and
making loans the modern banks has bad to adopt new roles to remain competitive and
responsive to public needs. Baking’s principal roles today are as follows:

The intermediary role:

Transforming saving received primarily from household into credit for business firm and
others in order to make investment in new building, equipment and other goods.

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The payment role:
Carrying out payment for goods and services on behalf of their customers.

The guarantor role:

Standing behind their customers to pay off customer debts, when those customers are unable to
pay.

The risk management role:

Assisting customer in preparing financially for the risk of lost to property and persons.

The saving / investment advisers’ role:

Aiding customers in fulfilling their long rang goals for a better life by building, managing, and
protecting savings.

The safekeeping/certification of value role:

Safeguarding a customer’s valuables and appraising and certifying their true market

The agency role:

Acting on behalf of customers to manage and protect their property or issue and redeem their
securities.

The policy role:

Saving as a conduit for govt. policy in attempting to regulate the growth of the economy and
pursue social goals.

Non-bank financial institutions represent one of the most important parts of a financial system.
In Bangladesh, NBFIs are new in the financial system as compared to banking financial
institutions (BFIs). A total of 25 NBFIs are now working in the country. The NBFIs sector in
Bangladesh consisting primarily of the development financial institutions, leasing enterprises,
investment companies, merchant bankers etc. The financing modes of the NBFIs are long term
in nature. Traditionally, our banking financial institutions are involved in term lending
activities, which are mostly unfamiliar products for them. Inefficiency of BFIs in long-term
loan management has already leaded an enormous volume of outstanding loan in our country.
At this backdrop, in order to ensure flow of term loans and to meet the credit gap, NBFIs have
immense importance in the economy. In addition, non-bank financial sector is important to

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increase the mobilization of term savings and for the sake of providing support services to the
capital market.

The basic difference may include:-

 A Bank is an organization that accepts customer cash deposits and then provides
financial services like bank accounts, loans, share trading account, mutual funds, etc.
 A NBFC (Non Banking Financial Company) is an organization that does not accept
customer cash deposits but provides all financial services except bank accounts.
 A bank interacts directly with customers while an NBFI interacts with banks and
governments
 A bank indulges in a number of activities relating to finance with a range of customers,
while an NBFI is mainly concerned with the term loan needs of large enterprises
 A bank deals with both internal and international customers while an NBFI is mainly
concerned with the finances of foreign companies
 A bank's man interest is to help in business transactions and savings/investment
activities while an NBFI's main interest is in the stabilization of the currency

Besides the differences between the both commercial banks and the non banking financial
institutions they play both for the development of the economic structure of the country. If the
both play positively than it can be said that, the development of the country is sure.

The Product/Services that are offered by the Banks

•Traditional Product & Services: In Bangladesh, the Banking system uses various instruments for
making payment and transactions, such as cash, cheque, bill of exchange, promissory note,
demand draft, payment order and other services including mail transfer and telegraphic
transfer.

•Loan Products that are given for economic purposes: Consumer Loan, Micro Credit, and Terms
Lending. Project and Infrastructure, Housing Loan, Cash Credit and Over draft etc. In addition
to this, SME Lending are also been given much of the priorities.

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•Modern and innovative technology given products, popularly known as plastic money: Debit,
Credit and other ATM Cards. Currently, Banks are also giving emphasis on improving their
transaction capabilities through ATM, POS(Point of Sale), Online, Internet, Tele-banking,
SWIFT and Reuter.

BANK WISE INTEREST RATE STRUCTURE (Except Islamic Bank)

Interest Rate SOCB’s SCB’s PCB’s FCB’s

Deposits Rate
Savings Deposits 3-6 5-7 4-9 2-6

Fixed Deposits:
i) Three months and above but
4-7.5 7.25-7.5 7.75-10 1.25-9
less than six months
ii) Six months and above but less
4.7-7.75 7.25-8 8-10 1.75-9.5
than one year
iii) One year & above but less than
4.9-8.85 7.5-8.25 8.25-10 2-9.5
two years
iv) Two years & above but less
5-8.5 7.75-8.5 7.75-9.6 2-9.5
than three years
v) Three years & above
8-8.5 7.75-8.5 7.75-10.3 4.25-9.5
Lending Rates
i). Agriculture 2-11 10-12 8.5-13 7-13
ii). Term Loan to Large Industry 12.5-13 11-13 13 12-13
iii). Term Loan to Small Industry 10-12.5 11-12.5 11.5-16.5 11.5-15
iv). Trade Financing 12-13 13.00 13 10.5-13
v). Housing Loan 13 13.00 13 10-13
vi). Consumer Credit 13-14 13-14.75 12.5-16.5 13-19
vii). Others 5-17 6-14.75 11.5-16.5 9-16

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Consumer Finance

Consumer finance has become a

topic you hear about almost every
day lately due to the result of our
current economic recession. It is
important to understand that
consumer finance, a term that
simply means lending money to
consumers is something that has
not always been as popular as it is
today. Consumer finance really
took off in the mid 1900's. Banks
began to be less willing to lend to
people with poor credit and the
consumer finance industry began
to be built. The industry really
took off in the later 20th century
as sub-prime lending became
popular. Sub-prime lending, a
current event hot topic, is loans to people with less stellar financial credit and really expensive
rates. Bangladeshis are "consumption" happy and love to buy vs. save, a some sub-prime
lending for things such as automobiles, and homes has really taken off the last decade. Though
this is certainly a part of the reason for the current world recession, it is not the only reason.
Consumer finance isn't all about home loans either. They also partner with furniture stores,
electronic stores, or any retail outlet where consumers could use extra credit to make
purchases. These loans typically attract customers with a NO INTEREST promotion, but usually
come with very high interest rates. Consumer finance has become a very important and

12
essential sector in the Bangladesh economy, and one that our consumers are certain to continue
to utilize for some time to come.

Consumer finance is the segment of the financial services industry that lends money to
individual consumers. Although banks and credit unions are among the lenders in the
consumer finance industry, alternative lenders include finance companies, pay day loan
services and establishments specializing in lending to borrowers with poor credit. As a whole,
the broad range of services in consumer finance provides the financing to purchase vehicles,
remodel a home or obtain secured and unsecured lines of credit from banks.

Loan
Servicing

Consumer
Financing

Debt
Recovery

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Personal Loan
Consumer Finance creates
an opportunity to satisfy
customers' desire to
purchase consumer
durables like - computer,
television, refrigerator,
washing machine, air
conditioner, music
systems, motor cycle and
a lot of other things by Consumer Durable Loan. Many Banks in Bangladesh are providing
maximum 1.00 lac. Taka to be repayable in by 12 to 36 monthly installments.

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Education Loan
“Education is the Backbone of a nation”. Without
education any nation cannot ahead a single step
now a day. To achieve higher level of education
from home and abroad lots of money are needed
and Mid-income level people cannot afford these
huge expenses. Education Loan that can make a
student's dream comes true.

Student loan for Bangladeshi student is very useful

activity. Numbers of student get the loan and run
their education. Many students are doing their
higher education with the help of this loan. There
are thousands of student stopped their education
because of poverty or bad economical condition. So
many talents student are unable to run their education based on different finical problem. As to
support their family they have to do work as a result they disconnected from the school or
colleges. But still the chance they have to run their education with this loan. There are some
ideas below hope this idea will make you more confident. There are many bank have who are
really want to help the student (Grameen Bank, Brak Bank, EBL, DBBL, and many more). Just
you need to show them accurate requirement and proof that you are student and you have the
ability to return their loan. It's very easy just go and try. In our country NGO have covered
large number of people and offer some excellent feature which are really helpful for student.
(ASSA, BRAK and more) Ask them about their requirements and get the loan.

Some Banks of Bangladesh firmly believes that expense for education is an investment for
future. Only education can fulfill the dreams of an individual as well as a nation. Education
loan provided by different Banks at maximum Tk. 8.00 lac to be repayable in 12 to 48 monthly
Installments.

15
Home Loan
Home is an address, a shelter
for entire life, and this is what
one leaves behind for the
family. A house is the single
biggest investment that you
will make in your lifetime. To
own a home from savings
takes a long time and full
payment at a time is difficult
too. Once have to be waiting
for entire life to saving. Lots of
Bank and some Non-Banking financial institutions of Bangladesh are providing maximum
Tk.75.00 lac to be repayable in 12 to 180 monthly installments.

Private institutions specializing in housing finance in Bangladesh have made remarkable

strides in a short time. The management teams at Delta Brac Housing Finance Corporation
Limited, National Housing Finance and Investments Limited, and IDLC Finance Limited,
aspiring to the same professional standards as their counterparts in other areas of the world,
have made substantial progress in underwriting, loan servicing, streamlining local decisions,
eliminating delays, and increasing transparency. With a national market share of 6.7 percent,
Delta Brac has done particularly impressive work in putting together credit histories of
potential borrowers and beginning to correlate credit history with loan performance. Still,
these institutions focus on clients at the upper- and upper-middle-income levels. Specialized
financial institutions have also made strides in loan servicing. A vigilant surveillance system,
keeping careful track of delinquencies and communicating with borrowers via cell phones and
automated messaging at the first sign of trouble, maintains nonperforming loans at 0.5 percent.

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Bangladesh Bank (BB) has asked the commercial banks to properly maintain the interest rate
ceiling on lending at maximum 13 per cent for housing sector. The central bank issued a
circular in this regard on the day and asked the chief executives and managing directors of all
scheduled banks to follow the directive for fixing the interest rate on housing loan.

Commercial banks are increasingly coming forward to provide home loans, which they feel are
more secure than other forms of loan. The banks' outstanding home loans have doubled to Tk
12,360 crore in fiscal 2009 from Tk 6,400 crore in fiscal 2006.

Private banks led the tally with Tk 7,490 crore outstanding loans to the housing sector as on
June 30, 2009, against just Tk 3,510 crore three years ago. Private banks' lending to the sector
increased by over 113 percent in the three years to fiscal 2009.

Housing loans from four state-owned banks also rose by over 42 percent in the same period.
Outstanding housing loans by the four banks were Tk 2,580 crore in fiscal 2006, which rose to
Tk 3,670 crore at the end of fiscal 2009.

GROWTH OF HOME LOANS

180
160
140
120
100
80
60
40
90 110 130 170
20 billion billion billion billion
0
FY2006 FY2007 FY2008 FY2009

Source: http://www.thedailystar.net (Wednesday, January 27, 2010)

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Car Loan
Owning a car means freedom of convenience for
moving out, affords punctuality, shelter from rain
and heat during traveling and above all guarantees
the much needed safety. Owning a car is a dream
of many people. To materialize your dream, now
we have Auto Loan with more flexible, affordable
and convenient package option.

IFIC Bank is providing maximum Tk. 20 lac to be

repayable in 12 to 60 monthly installments.

The central bank has amended regulations for

consumer financing with slashing tenure of
reconditioned cars by one year aiming to protect
environment. Under the amended regulations, the
commercial banks will be allowed to finance the
cars older than five years instead of six years.

''The banks desirous of financing the purchase of used cars shall prepare uniform guidelines
for determining value of the used vehicles. However, in no case the bank shall finance the cars
older than five years,"

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Marriage Loan
Marriage is the most important day of once
life; begin one new family in style. Money is
only an object for such an important event
and shouldn't be a barrier to its perfection.
Marriage often changes an individual’s
relationship with money. Whereas before
marriage an individual is in full control of his
or her money, following marriage income has
to be allocated among various family
members. Neoclassical economic theory
further assumes that this maximization occurs
without any problems “either because there is
a consensus on preferences within the family
or because decisions are made by an altruistic
family head and accepted by all other
members.” Although most married couples
pool their finances, in line with the unitary
view of neoclassical economic theory, recent research has questioned the other basic
neoclassical economic assumptions. If you need extra funds to ensure your special day is one to
remember than come into on IFIC Bank branch and trust us to help you realize your dreams.

IFIC Bank is providing maximum Tk. 3.00 lac to be repayable in 12 to 36 monthly installment.

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Medical Loan
Medical Loan lets you to focus on Medicare of your
family and yourself - taking away the worry of
finance. Medical Loan caters hospitalization or other
emergency medical needs to salaried people. The loans
are easy & absolutely hassle free.

Bank is providing maximum Tk. 3.00 lac for medical

loan to be repayable in 12 to 36 monthly installments.

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Holiday Loan
When you plan to visit overseas with
family or friend for taking a break
from routine, enjoying nature,
making a holiday - all these can
happen through Holiday Loan.
Holiday Loans are easy & absolutely
hassle free.

Banks are providing maximum Tk. 3.00 lac to be repayable in 12 to 36 monthly. Instalment for
Holiday Loan.

Executive Loan
Whether you are a Doctor/ Engineer/ IT
professional/ Management Consultant or any
other professional, sometimes you just need
that little bit extra money for whatever
reason? Don't make yourself worry about it.
Come to us at IFIC Bank and trust that we'll
help you to realize your dreams.

IFIC Bank is providing Maximum Tk. 10.00 lac to repayable in 12 to 48 monthly instalment.

Quick Processing & Least Formalities.

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Problems of Consumer Financing

Controversial Practices
Consumer Finance is a term used in large banks for divisions of that bank which consist of
stores or offices which primarily sub prime lending and "indirect lending" (for example
running the payments financing program of a local furniture store). Both of these are high
interest rate items and potentially can make the parent company a lot of money Sub prime
lending is also controversial however, and is considered by some to be synonymous with loan
sharks.

Here are some of the controversial practices associated with the industry:

 Failing to tell people who ask for a loan from the sub prime lender that they really have
good credit and can get a better deal somewhere else (a subprime loan is usually twice
as expensive as a non sub prime)
 Sending live checks through the mail which when used become loans. This can trick
some people, and the interest rate is usually purposely high to give the subprime lender
a reason to also refinance their mortgage
 Charging very high fees on a mortgage refinance (with the some say dubious excuse
that this has to do with the riskier nature of subprime lending), but instead of charging
them directly, they finance them into the loan increasing the amount of interest also
paid to them.
 Doing refinances that are worse then the previous loan, usually by showing that the
new payment will be lower, but not revealing that the new payment does not include
taxes and insurance
 Selling single premium credit insurance, also financing that into the loan.

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Interest rates
Interest rates are an important aspect of consumer finance. Consumers may do themselves a
great service by understanding the effect of the interest rate charged on the amount of their
loan. Generally, the interest rate on any financing arrangement is the cost of borrowing by the
consumer. Intuitively, consumers may find that higher interest rates result in paying much
more than the sale price of a particular purchase. In contrast, lower interest rates means that
financed purchases do not cost much more than the selling price. With these two interest rate
scenarios in mind, a consumer may gauge whether a certain financing arrangement is actually
worthwhile and in his best interest. After all, entering a financial arrangement is a commitment
to pay back the borrowed amount and additional interest payments.

Credit Rating
Credit ratings impact a consumer's ability to obtain favorable consumer financing. Generally, a
consumer's individual credit rating may serve as a way to gauge the risk of a consumer
defaulting on the loan. Credit ratings are expressed as a numerical value of a borrower's credit
worthiness. A credit rating higher than 700 is generally accepted to be favorable by creditors.
As a result, lenders use credit ratings to approve or reject a consumer's request for a line of
credit. In addition, credit ratings may also determine whether the terms of the credit or loan
are favorable to the consumer. Although an unfavorable credit rating does not automatically
disqualify a consumer from financing, there are significant financial differences in financing
terms between consumers with poor credit ratings and those with strong ratings. For instance,
poor credit scores may often result in unfavorable financing terms such as paying higher
interest rates. In contrast, consumers with strong credit scores may be able to shop around for
the best terms and lower interest rates.

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Effects
Being unaware of the effect of interest rates on borrowing or the inability to escape expensive
borrowing may be expensive. In some instances, some consumer finance products may not be
in the best interest of the consumer. Favorable interest rate terms may make repayment easy to
manage while higher rates make repayment a significant financial burden.

Fraud
Consumer finance products may not all be in the best interest of the consumer. Consumers
with poor credit or limited financing options may be especially susceptible to potentially bad
financing services. The Federal Trade Commission reports that recent "law enforcement efforts
demonstrate that fraud promoters who promise financial services or assistance for a several-
hundred-dollar fee generally do not deliver. Instead, they take millions of dollars from
consumers without providing any services at all." The FTC warns that fraudulent activities
include advance fee financing and credit repair services that charge fees upfront to secure
credit on behalf of the consumer or improve credit ratings or clear.

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Conclusion
There are some negative aspects in the Consumer Credit Scheme but anyway it’s a huge
success. The customer service quality should be improved to a certain level. If this is done and
the scheme is accurately improved and managed well it will be a profitable division of One
Bank Ltd. Side by side it has to lower its default ion rate. Only then it will be totally successful.

Success in the banking business largely depends on effective lending. Less the amount of loan losses, the
more the income will be from credit operations. The more the income from credit operations the more
will be the profit of the One Bank Ltd. and here lies the success of credit financing.

There are some problems and hindrance to implement the credit facilities of One Bank Ltd as per
instruction of the top management, which is discussed in brief in the light of recommendation.

Last of all it can be said that the result gained from the survey is moderately satisfactory. The
management should analyze the weakness and opportunities and implement scientific technique to
improve the level of satisfaction.

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Recommendation
The above findings are only a research. So it’s difficult to come to a single decision. What we can do is
give some suggestions on the improvement of the satisfaction of the customers of CCS (Consumer Credit
Scheme). Ways of improving the satisfaction level of the customers

 From the research it has been found that the customers are not totally satisfied about the service
of the One Bank regarding the Loan Scheme (Ref-Findings of Question-5). So the customer
service quality should be improved. For this reason, employees are to be given proper training
regarding customer service.
 The bank is not aware of the different kind of needs of the customers. Or they are not giving
focus on this part.(Ref-Findings of Question -11) Customer may need the repayment interval
time or period to be flexible which will be convenient to them. The bank should consider this
matter keeping their profit as well as the satisfaction level of the customers.
 Though the customers are moderately satisfied about the technological aspect of the bank the
management should give on this matter. (Ref-Findings of Question -12) One Bank needs
immediately to update its technology. One Bank is a first generation bank. Most of the banks
operating in our country are third generation banks. In this competitive situation One Bank also
needs to enter into online banking. It will help its borrowers to repay the installment in any
branch online.

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