Professional Documents
Culture Documents
0 INTRODUCTION
HSBC is one of the largest banking and financial services organizations in the world.
Headquartered in London, HSBC has an international network comprised of over 9,800
offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas,
the Middle East and Africa. The bank’s 253,000 employees are located mainly in the UK
(56,000 employees), the US (43,000), Brazil (28,000), Hong Kong (26,000), Mexico
(20,000) and France (14,000). Admirably, HSBC acknowledges that it operates in
countries that present a range of social, ethical and environmental challenges. HSBC is
structured according to its consumer groups, providing a comprehensive range of
financial services, including: personal financial services; commercial banking; corporate,
investment banking and markets; private banking; and other activities. HSBC clearly
identifies its top priority as the financial return to its 200,000 shareholders. However, the
bank also states that, ‘our goal is not, and has never been, profit at any cost…tomorrow’s
success depends on the trust we build today.’ Thus, in HSBC customer satisfaction is
considered an important strategic objective to allow the bank to continue to be successful
in the long term.
A. BANKING INDUSTRY-OVERVIEW:
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
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.
Currently the major financial institutions under the banking system include:
• Bangladesh Bank
• Commercial Banks
• Islamic banks
• Leasing Companies
• Finance companies
Of these, there are four nationalized commercial banks (NCB), 5 specialized banks, 11
foreign banks, 26 domestic private banks, 4 Islamic banks currently operating in
Bangladesh.
FCB
20%
NCB
FCB
8% NCB
Islamic
PCB
Islamic Specialized
54%
8%
PCB
Specialized
10%
The range of banking products and financial services is also limited in scope; all local
banks must maintain a 4% Cash Reserve Requirement (CRR), which is non-interest
bearing and a 16% Secondary Liquidity Requirement (SLR). With the liberalization of
markets, competition among the banking products and financial services seems to be
growing more intense each day. In addition, the banking products offered in Bangladesh
are fairly homogeneous in nature due to the tight regulations imposed by the central bank.
Competing through differentiation is increasingly difficult and other banks quickly
duplicate any innovative banking service.
Assets of the bank excluding off-balance sheet items were valued at Tk 3,880.2
million in 2000, when the off-balance-sheet items accounted for Tk 2,669.2 million. The
bank had no borrowing from the interbank market during 1999 and 2000. Till December
1999, HSBC in Bangladesh continued to suffer net losses every year, as the operating
expenses were greater than the operating incomes. In 2000, the bank earned a net profit
of Tk 18.2 million after adjusting provisions for taxation and classified loans
HSBC offers an unmatched efficient banking structure along with a whole range
of products and services to suit all business needs. At HSBC understands that running a
business takes time, money and planning. That is why extensive range of products and
services has been designed to give maximum value with the minimum of paperwork and
effort.
With over 9,800 offices and a presence in over 77 countries and territories
including the Asia-Pacific region, Europe, the Americas, the Middle East and Africa, and
with over 100 million customers, HSBC has the ability to take the business forward.
The following services are offered free of cost to business banking account holders
(a) 24 HOURS DEPOSITS: Customers may deposit upto BDT 50,000 cash per transaction
and any BDT amount in cheque 24 hours a day, 7 days a week through our ATM
Machines, conveniently located Sales and Service Centers. EasyPay Machines are also
available for deposit of BDT 50,000 cash per transaction and any BDT amount in cheque
to customer’s Business Banking account. Customers can use both ATM Machine and
EasyPay Machine at any available location FREE OF COST.
(b) 24 HOURS WITHDRAWALS: Customers can withdraw cash from any of the
conveniently located HSBC ATM Machines using their Business Banking Account ATM
Card at FREE OF COST.
(d) PHONE BANKING: Business Banking Account also provides access to accounts
through HSBC’s state of the art Phone Banking facilities. This is a secure, easy, efficient
system which allows to check account balance, order cheque books and much more 7
days a week, 24 hours a day FREE OF COST.
(e) HSBC CHEQUE BOOK: For payments to beneficiaries through your Business
Banking Account HSBC offers one account payee chequebook (50 cheque leaves) per
month FREE OF COST. You may receive additional chequebooks with a minimal service
fee.
(f) STATEMENTS VIA FAX: HSBC now offers the option of receiving statements via fax
everyday FREE OF COST.
(a) OD FACILITY: To ensure that cheques are honored when fund is not available, in
emergencies, Business Banking Account provides with an overdraft against 100% margin
of fixed deposit.
(c) TRADE SOLUTIONS: HSBC offers its global reach and local expertise in handling
trade business, including the complete range of services that would facilitates import and
export. These include:
2. TREASURY:
HSBC is the leading market maker globally, quoting competitive prices in all
tradable currencies, and acting as a primary provider of liquidity to the market 24 hours a
day. Its dynamic Corporate and Institutional marketing teams provide up-to-date market
intelligence, advice and timely execution of deals to the customers throughout the trading
day, including the following:
(a) SPOT FOREIGN EXCHANGE: A spot contract is a binding obligation to buy or sell a
certain amount of foreign currency at the current market rate, for settlement in two
business days time.
(c) COMPETITIVE FOREX RATES FOR REMITTANCES, EXPORT AND IMPORT: HSBC
in Dhaka offers competitive FX rates to the corporate and retail customers.
3. CORPORATE BANKING: HSBC have a full range of products and services, which
include:
(a) OVERDRAFT: A convenient and flexible form of short-term financing for routine
operating expenses and overheads of your company.
(b) IMPORT AND EXPORT LOANS: Loans against import are available to customers
when they purchase under Documentary Credit or Documentary Collections terms.
Pre-shipment finance is available to you to meet your working capital requirements.
Advances are granted upon production of a buyer's contract or export DC.
(c) DP/DA PURCHASE: A cash advance made to customers when they have exported
goods to a buyer through Documentary Collections, either on a Documents against
Acceptance (DA) or Documents against Payments (DP) basis.
(d) LONG-TERM LOANS: HSBC customizes a Term Loan to finance the fixed assets that
businesses need (such as land, new premises, equipment and machinery). It may be a
Greenfield project or an expansion of an existing plant that may be financed at
competitive floating rate of interest.
(a) EXPORT SERVICES: With over 9,500 offices in 79 countries and territories, customers
can be rest assured that an HSBC office is close to them, wherever they are exporting to.
HSBC is available to provide customers with advice on any aspect of their trade
document preparation and can also provide with working capital finance to assist to
source raw materials Export services include:
►Pre-shipment Finance
(b) IMPORT SERVICES: With over 130 years of experience supporting importers
globally, HSBC is well positioned to fulfill trading needs. A full range of import services
handled by experienced staff is available, ensuring that import documents are processed
without delay. Import services include:
►Documentary Credits
►Import Collections
►Import Finance
►Shipping Guarantee
• Export transaction advices delivered to your desk through email or fax and import
transaction advices through Hexagon.
• Online issuance and amendment of Import DCs from your office, reducing cost
and process time for you.
(b) PAYMENT AND COLLECTION: Most corporate treasurers cannot afford to spend time
worrying about routine payments. HSBC in Bangladesh has the technology to put them in
better control of routine operations and has been successfully handling payment
requirements throughout the nation for its corporate clients. HSBC provides with
benefits, which include:
(c) HEXAGON CHEQUE WRITER: The latest addition in the Payments and Cash
Management services is Hexagon Cheque Writer. It is a cheque writer product which is
also a built-in module of Hexagon, global electronic banking. It is designed to facilitate
corporate customers for preparing, printing and updating the PC ledger (ledger
maintained in cheque writer). Services and benefits include:
(d) ELECTRONIC BANKING: Provides access to customers’ account from their PC 24-
hours a day, 365 days a year from anywhere in the world with Hexagon
Customers can pay to third parties at ease and can affect instant fund transfer between
their own accounts
Trade Services: Hexagon significantly reduces the documentation and physical delivery
required for trade finance, resulting in both faster and more accurate processing and
administration. It will reduce data entry and related errors and you can store frequently
used documentary credit (DC) in templates and recall them as needed to speed in your
processing.
Salary Payment: Salary payment to staff is at customers’ fingertips by using our MT_
100 module through Hexagon. Customers can import salary from their existing payroll
system and send it to bank through Hexagon. From these staff’s accounts are credited
immediately and error-free.
Report Writer: Hexagon report writer is a powerful and easy-to-use tool for accessing
and managing accounts, trade finance and security information. Report writer allows
customers to organize their accounts in a variety of ways of convenient and customized
reporting. It is easy to integrate with their current accounting package.
1. MANAGING MONEY:
(a) SAVINGS PLUS: With HSBC's Savings-Plus Account, customers can earn interest from
the account on a monthly basis rather than at the end of six months.
Benefits:
• Interest will be paid at the end of each month instead of six months.
• Free ATM card with daily withdrawal limit of BDT 50,000.
• Free phone banking facilities.
• Free personalized chequebook.
• Monthly statements.
Eligibility:
(b) CURRENT ACCOUNT: With an HSBC current account, making payments has never
been so simple. It includes the following services:
Easy Pay: Easy Pay machines offer customers and non-customers an easy, convenient
and quick way to make deposits, payments and instructions. The Easy Pay provides
services 24-hours a day, seven days a week.
ATM: Provides access to the account through an ATM card, without having to visit a
branch! Customers can access to their current account via ATM 24-hours a day, seven
days a week.
(c) SAVINGS ACCOUNT: HSBC Savings Account is a secure, rewarding and accessible
way to manage routine money matters effectively. It allows customers to complete any
number of transactions without charge, penalties or a reduction in credit interest. For
savings accounts HSBC neither have any ledger fee nor have limit on number of
transactions. It also provides ATM, Phone banking, & Personalized Chequebooks.
Interest rate structure encourages you to save. Interest is calculated daily and credited to
your account every 6 months. Minimum balance requirement is of BDT 50,000 to receive
daily interest.
Special Loan Rates: PowerVantage customers are entitled to special reduced rates on a
Personal Installment Loan and a discount on the processing fee for a Car Loan.
Auto sweep of Funds: To benefit from a higher rate of interest, customers can issue
standing instructions to have funds transferred between their current and savings accounts
and time deposits.
Special ATM Card: PowerVantage ATM Card provides a high cash withdrawal limit of
up to BDT 50,000 at any of HSBC's ATMs across Bangladesh.
(e) HSBC SELECT: HSBC Select - a customized banking proposition offering exclusive
privileges and unrivalled personal attention. HSBC Select is designed to provide you with
a superior service offering, access to exclusive facilities, preferential pricing, convenient
services and personal attention, allowing you greater personal and financial freedom.
Key Features:
►Privileged access: Exclusive HSBC Select Centers offer a private lounge, reserved car
parking for customer’s convenience and priority service.
►A free HSBC global Select ATM card: This card is issued against resident foreign
currency deposit. It allows to access cash from over 800,000 ATMs around the world, 24
►Waiver of fees: There will be no fees on purchase or sale of foreign currency, required
for travel purposes (limits apply).
►Higher ATM limits: Customers enjoy a higher ATM withdrawal limit up to BDT
150,000 each day.
2. BORROWING MONEY:
(a) PERSONAL SECURED LOAN: A Personal Secured Loan is a fixed loan secured by
customer’s time deposit held with HSBC. The loan provides customers with the
flexibility to meet any emergency cash needs, so that they don't have to encash their high
yield investments.
• Loan amount is up to 90% of the value of your taka time deposit or WEDBs or
80% of the value of your foreign currency time deposit or USDBs with minimum
loan amount of BDT90,000
• Competitive interest rates
• Processing fee - BDT1,000
• Flexible repayment schedules ranging from 12 to 60 equal monthly installments
• Partial prepayment and early settlement facilities
• Automatic and free transfer of monthly installments from your savings account
without affecting the interest earned on that account.
• Option of one time repayment at the end of loan tenure with discounted interest
rate is available.
(b) CREDIT CARD: HSBC's co-branded credit card with Prime Bank gives the freedom to
pay for goods and services without the hassle of carrying cash. The card is accepted at
shops, restaurants, hotels, airlines and travel agents, departmental stores, hospitals and
diagnostic centers, practically anywhere in Bangladesh displaying the MasterCard logo.
Features:
►Customers can enjoy between 20 to 50 days of interest free credit from the date of each
transaction;
►After receiving monthly statement, customers can either choose to pay full or a
minimum of 8% of the current balance shown in the statement or BDT 500 whichever is
higher;
►Credit limit range from BDT 50, 000 to BDT 200, 000;
3. CUSTOMER SERVICE CENTERS: HSBC has a total of 6 service centers throughout the
country. They are located at:
►Dhanmondi: Mumtaz Plaza, House No. 07. Road No. 04, Ground floor, Dhanmondi
R/A, Dhaka 1205
►Uttara: House No. 41, Road No. 07, Sector No. 04, Uttara Model Town, Dhaka 1230
►Gulshan: House No. SWG-2 (Corner of Road No. 05, Gulshan Avenue, Dhaka 1212
►GEC Circle: Golden Plaza, 1692 CDA Avenue, East Nasirabad, Chittagong 4000
►Opening accounts.
►Applying for any of HSBC loan products and knowing detailed features of all the
products from HSBC Mobile Sales Officers (MSO) stationed at Customer Service
Centre;
►Using ATMs;
The objective of this study is to determine the customers’ satisfaction level at HSBC
Bangladesh
In order to conduct this study report both primary & secondary data have been utilized.
The secondary data have been collected from published literature, journals, company
information (web links), other related sources, etc. The primary data have been obtained
through interviewing 50 HSBC account holders of different profession & age group.
Interviewing has been conducted using a structured questionnaire containing 22 questions
representing the five dimensions of customer satisfaction measurement. A sample
questionnaire has been annexed in the appendix A. The time period of the study lies in
between 19 June 2007 to 17 July 2007.
►For the convenient of study non probability samples have been used.
CUSTOMER SATISFACTION:
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement and
in term of their perception and expectation of the performance of the organization being
measured.
More than a decade ago, Parasuraman, Zeithaml and Berry (1988, 1991)
conducted extensive studies in different industries and developed the SERVQUAL
instrument: a 22-item scale with a set of service quality dimensions to quantify a
customer’s assessment of a company’s service quality. Five key dimensions of service
quality — reliability, responsiveness, assurance, empathy and tangibles — have been
identified and form the foundation on which a lot of other studies on service quality have
been built. SERVQUAL is widely recognized and used, and it is regarded as applicable to
a number of industries, including the banking industry (Yavas, Bilgin, Shemuell, 1997).
However, SERVQUAL has been subject to certain criticisms, including vagueness in the
definition of expectations, its dubious applicability in some industries (Teas, 1993), the
SERVQUAL:
The SERVQUAL instrument has been the predominant method used to measure
consumers’ perceptions of service quality. It has five generic dimensions or factors that
are stated as follows (van Iwaarden et al., 2003):
Tangibles:
Modern Looking Equipment (Mean= 4.22, Std. Dev=1.982)
Visually Appealing Physical Facilities (Mean= 3.86, Std. Dev= 2.129)
Neat Appearance of Employees (Mean= 3.94, Std. Dev= 1.570)
Appealing Appearance of Materials (Mean= 4.38, Std. Dev= 1.497)
Reliability:
Act according to Promises (Mean= 4.64, Std. Dev= 1.575)
Sincere Interest in Problem Solving (Mean= 4.50, Std. Dev= 1.919)
Performs the Service Right the First Time (Mean= 4.40, Std. Dev= 1.714)
Provides Services at the Time Promised (Mean= 5.00, Std. Dev= 1.512)
Insists on Error Free Records (Mean= 4.36, Std. Dev= 1.882)
Responsiveness:
Informs exactly when Services will be provided (Mean= 4.18, Std. Dev= 1.987)
Gives Prompt Services (Mean= 4.48, Std. Dev= 1.632)
Employees are Always Willing to Help (Mean= 4.44, Std. Dev= 1.728)
Never too Busy to Respond Customer Requests (Mean= 4.16, Std. Dev= 1.800)
Assurance:
Employees Behavior Instill Confidence in Customers (Mean= 4.52, Std. Dev= 2.102)
Customers Feel Safe in Transaction (Mean= 4.86, Std. Dev= 1.690)
Consistent Courtesy of Employees (Mean= 4.84, Std. Dev= 1.877)
Employees have the Knowledge to Answer Customers' Question (Mean= 4.92, Std. Dev=
2.029)
Moreover, HSBC has established a strong position in terms of Assurance & Reliability,
indicating that customers of HSBC are very much reliable on the services it provides.
Overall the customers have expressed positive perception in terms of tangibles,
responsiveness, and empathy.
The following figure shows the Means of Customer Satisfaction Level measuring
dimensions:
4.6
4.4
4.2
3.8
3.6
Mean
Tangibles 4.1
Reliability 4.58
Responsiveness 4.31
Assurance 4.78
Empathy 4.08
► The Management of HSBC should conduct more product & services awareness
campaign.
► The HSBC Management should critically evaluate the deviation in means in order to
create balance in all dimensions of customer satisfaction measurement tools.
►They should increase the level of providing personal attention to individual customers.
Please show the extent to which you believe HSBC has the feature described in the
statement. Write number that best shows your perceptions.
Thank you very much for your time, cooperation & patience
*****************************************************
Statistics
Gender Type Occupation Age Group
Valid 50 50 50
Missing 0 0 0
FREQUENCY TABLE
Gender Type
Valid Cumulative
Frequency Percent Percent Percent
Valid Male 31 62.0 62.0 62.0
Female 19 38.0 38.0 100.0
Total
50 100.0 100.0
Occupation
Valid Cumulative
Frequency Percent Percent Percent
Businessman 17 34.0 34.0 34.0
Service Holder 19 38.0 38.0 72.0
Student 14 28.0 28.0 100.0
Total 50 100.0 100.0
Age Group
Valid Cumulative
Frequency Percent Percent Percent
The following Graph shows the Frequencies of Samples in terms of Gender, Age
Group, and Occupation.
Frequency
Gender Type
30
20
10
0
Male Female
Gender Type
20
15
10
0
18-25 26-33 33-50 50-Above
Age Group
Frequency
Occupation
20
15
10
0
Businessman Service Holder Student
Occupation
Std.
N Minimum Maximum Mean
Deviation
[ Tangibles ]
5
Modern Looking Equipment 1 7 4.22 1.982
0
Visually Appealing Physical 5
1 7 3.86 2.129
Facilities 0
5
Neat Appearance of Employees 2 7 3.94 1.570
0
5
Appealing Appearance of Materials 1 7 4.38 1.497
0
[ Reliability ]
5
Act according to Promises 2 7 4.64 1.575
0
5
Sincere Interest in Problem Solving 1 7 4.50 1.919
0
Performs the Service Right the First 5
1 7 4.40 1.714
Time 0
Provides Services at the Time 5
2 7 5.00 1.512
Promised 0
5
Insists on Error Free Records 1 7 4.36 1.882
0
[ Responsiveness ]
Informs Exactly when Services will 5
1 7 4.18 1.987
be Provided 0
5
Gives Prompt Services 2 7 4.48 1.632
0
Employees are Always Willing to 5
1 7 4.44 1.728
Help 0
Never too Busy to Respond 5
1 7 4.16 1.800
Customer Requests 0
Cases
Valid Missing Total
Age Group * Gender Type * Employees are Always Willing to Help Crosstabulation
Count
Employees are
Always Willing
to Help Gender Type Total
Male Female
Strongly Age 33-50
Disagree Group 3 3
Total 3 3
Moderately Age 26-33
2 2
Disagree Group
33-50 2 2
Total 4 4
Somehow Age 26-33
2 5 7
Disagree Group
33-50 2 0 2
Total 4 5 9
Neutral Age 18-25
0 3 3
Group
26-33 3 0 3
33-50 2 0 2
Total 5 3 8
T-TEST:
Group Statistics
Levene's Test
for Equality
of Variances t-test for Equality of Means
Std. 95%
Mean Error Confidence
Sig. (2- Differ Differ Interval of the
F Sig. t df tailed) ence ence Difference
Lowe
r Upper
Modern Equal
21.00 -1.65
Looking variances .000 -.853 48 .398 -.494 .579 .671
5 9
Equipment assumed
Equal 4
-1.00 -1.48
variances not 5.0 .321 -.494 .492 .497
4 6
assumed 10
Visually Equal
Appealing variances -1.06
5.587 .022 .317 48 .752 .199 .626 1.457
Physical assumed 0
Facilities
Equal 3
-1.15
variances not .299 1.3 .767 .199 .664 1.552
5
assumed 86
Neat Equal
Appearance variances
.363 .550 .342 48 .734 .158 .462 -.770 1.086
of assumed
Employees
Equal 3
variances not .332 4.5 .742 .158 .476 -.809 1.125
assumed 24
Appealing Equal
-1.95 -1.68
Appearance variances 1.856 .179 48 .056 -.830 .424 .022
8 3
of Materials assumed
Never to Equal
Busy to variances
Respond assumed .023 .881 3.859 48 .000 1.786 .463 .855 2.717
Customers
Requests
Equal 3
variances not 3.867 8.4 .000 1.786 .462 .851 2.721
assumed 68
Employees Equal
Behavior variances
Instill assumed 2.748 .104 .396 48 .694 .244 .618 -.998 1.487
Confidence
in Customers
Equal 4
variances not .422 5.4 .675 .244 .580 -.923 1.412
assumed 14
Customers Equal
-1.88 -1.87
Feel Safe in variances .874 .354 48 .066 -.905 .480 .061
5 0
Transaction assumed
Equal 4
-1.95 -1.84
variances not 2.3 .058 -.905 .464 .031
0 1
assumed 51
Consistent Equal
-3.22 -1.61 -2.62
Courtesy of variances 1.401 .242 48 .002 .501 -.609
6 6 4
Employees assumed
Equal 4
-3.38 -1.61 -2.57
variances not 4.0 .001 .477 -.655
8 6 8
assumed 11
Employees Equal
have the variances
Knowledge assumed
5.492 .023 1.374 48 .176 .805 .586 -.373 1.983
to Answer
Customers'
Question
Has Equal
Convenient variances
-1.47
Operating assumed 8.941 .004 -.943 48 .350 -.470 .499 .532
3
Hours for
Customers
Equal 2
-1.60
variances not -.848 6.9 .404 -.470 .554 .667
8
assumed 23
Has Equal
Employees to variances
Give assumed
2.494 .121 3.279 48 .002 1.610 .491 .623 2.596
Customers
Personal
Attention
Equal 4
variances not 3.450 4.1 .001 1.610 .467 .669 2.550
assumed 73
Has Best Equal
Interest of variances
9.895 .003 2.580 48 .013 1.548 .600 .342 2.755
Customers at assumed
Heart
Equal 4
variances not 2.825 7.4 .007 1.548 .548 .446 2.651
assumed 24
Employees Equal
Understand variances
Specific assumed 6.212 .016 .592 48 .556 .295 .499 -.707 1.298
Needs of
Customers
Equal 4
variances not .657 7.8 .515 .295 .450 -.609 1.200
assumed 73