Group members

yALI HARIS yZUHAIB IJAZ

NIB
y NIB bank is the 7th largest bank in Pakistan branch wise, NIB bank provides

services to more than 675,000 customers through a wide branch network of 223 branches. It is one of the fastest growing banks in Pakistan

y NIB started as NDLC( National Development Leasing Corporation )-IFIC Bank

which was incorporated in March 2003, as a public limited company

y Started operations in October 2003 with paid up capital of Rs. 1.2bn with

amalgamation of NDLC and of IFIC s Pakistan operations and their assets & Liabilities, and subsequently those of Credit Agricole Indosuez Pakistan in April 2004

y Temasek Holdings acquired 25% shareholding in NIB in March 2005 through

Bugis Investments which was enhanced to over 70% in June 2005

y NIB has grown rapidly from 2 branches in 2003 to around 240 post

merger in the first quarter of 2008, with a corresponding increase in its deposits and assets base

y NIB vision is to rank amongst top 5 banks in Pakistan. Therefore it

acquired majority shares of PICIC on June 28 2007, which gave control of its subsidiaries (a commercial bank PCBL, an asset management company - PICIC AMC and PICIC Insurance). NIB also has a shareholding in NAFA, an asset management company, along with National Bank of Pakistan and Fullerton Asset Management Company 07, once all regulatory approvals were obtained. Number of branches then increased from 45 to 240

y Legal merger of PICIC & PCBL into NIB took place on 31st December

y Post merger NIB total assets increased to Rs. 176.6 bn as of 31st

December 2007, further increasing to Rs 180 bn as of 31st September 08. Present paid up capital of Rs. 40.4 bn is highest amongst banks in Pakistan o NIB is now the 7th largest bank in Pakistan in terms of branch network. Temasek Holding remains the largest single shareholder with approximately 74% shareholding NIB business units include: Small Medium Enterprises and Commercial Banking Group Corporate and Investment Banking Group / Financial Institutions Consumer and Small Enterprise Group Treasury

y NIB has almost 4900 employees. y y y y

Quality for NIB bank

y NIB Bank is an exemplary provider to business and industry offering high quality expertise and service along with innovative Banking solutions, which in turns supports economic development. y At NIB Bank, we value our Human Capital and ensure that employees in every functional area of the bank have the required skills & competencies to deliver the business proposition to our customers. y NIB provides a work environment which is inclusive and supportive, where staff is highly valued and feel motivated, based on fairness, equity and business needs.

External Approach
If we talk about the external approach NIB bank is focused on, y External Customers y Valued product and services y Customer retention y Increased customer base y Profitability and growth

Internal Approach
y Talking about the internal approach adopted by the

bank NIB is focused on, y Bank its people and processes y Efficiency and effectiveness in all aspects y Profitability and growth

Electronic Banking in NIB

y Electronic banking, also known as electronic fund transfer (EFT), uses computer and electronic technology as a substitute for checks and other paper transactions. EFTs are initiated through devices like cards or codes that let you, or those you authorize, access your account.

ALTERNATE DELIVERY CHANNEL:

y Automated Teller Machines or 24-hour Tellers are electronic terminals that

let you bank almost any time. To withdraw cash, make deposits, or transfer funds between accounts, you generally insert an ATM card and enter your PIN.

y Pay-by-Phone Systems let you call your financial institution with

instructions to pay certain bills or to transfer funds between accounts. You must have an agreement with the institution to make such transfers.

y Personal Computer Banking lets you handle many banking

transactions via your personal computer. For instance, you may use your computer to view your account balance, request transfers between accounts, and pay bills electronically.

y Debit Card Purchase Transactions let you make purchases with a

debit card, which also may be your ATM card. This could occur at a store or business, on the Internet or online, or by phone. While the process is fast and easy, a debit card purchase transfers money fairly quickly from your bank account to the company s account. So it s important that you have funds in your account to cover your purchase. y Direct Deposit lets you authorize specific deposits, such as paychecks and Social Security checks, to your account on a regular basis. You also may pre-authorize direct withdrawals so that recurring bills, such as insurance premiums, mortgages, and utility bills, are paid automatically.

Why e banking?
y E-Banking services are aligned well with the bank s

goal to enhance its business relationship with clients and maintain financial stability through operational efficiency and cost effectiveness. y It wants to give its clients options for self-service channels because these are cost-efficient to the bank. Cost-efficiency, in turn, allows the bank to offer their clients the best products and services

BENEFITS OF INTERNET BANKING TO BANK

y Cost Savings y Electronic processing dramatically reduces the cost per transaction. The

average transaction cost at a full service bank is more as compared to transaction at an ATM and transaction at web is much less. electronic bill presentment costs 40% less than paper delivery.

Loyal Customers y NIB bank is moving to offer a hub of financial services including bill presentment and payment, financial planning, estate planning, insurance, loans, and brokerage services. . The idea is that by creating a more loyal customer who depends on a bank for many financial services

Internet Profit Generation y E-commerce, when properly integrated into existing banking operations, can lead to substantial cost savings and higher profitability. banks are able to retain customers more effectively when offering services that are valueadded. High-Profit Customers y Bank generate 50% more revenue than the average customer; hold 20% higher balances; use 50% more products, and their attrition rate is 50% of the overall attrition rate. Furthermore, on average, it costs 14% less to service these customers as compared to bricks-and-mortar customers.

CRITICAL SUCCESS FACTOR

y WEBSITE DEVELOPMENT:

To create a positive experience, a great deal of planning, resources and expertise invested in the development and ongoing maintenance of websites by NIB. NIB website manage all the aspects that customers would expect from the buying process in a non-web environment.

Channel Integration
y Services distribution channels for NIB has evolved over a long time driven primarily by need, changes in regulations, market environment and technological advances. banks need to invest in a consistent and seamless customer experience across all channels, which requires integration of real-time cross-channel communications. Usage of the major delivery channels is split and changes with time.

Managing Relationships with Customers:

y Managers responsible for managing relationships with

customers. Some people need extra counseling before buying an online product due to their inability to understand complex financial products or technology. This should be available by in the form of customer services over the phone.

Winning Customer Trust

y One of the biggest obstacle in the growth of e-

commerce is the lack of trust many people feel when they conduct transactions online. Developing a trustworthy online brand is a strategic as well as a managerial challenge.

Human Resources Management y Human resources management is a key factor of in the success in e-banking. Ebanking HR requires special skills because HR functions such as (HR) planning, job analysis and job design, recruitment and selection, job progression, appraisal process, training, and compensation would be different than for other traditional business areas. Project Management: y A project may involve a number of steps such as feasibility study, determination of objectives, planning, execution as well as end of project evaluation.

Core Banking Application Of NIB:

y for IBM servers supporting a T24 implementation has gone through at NIB Bank. Branch rollout for more than 244 branches of NIB Bank all over Pakistan. Rollout was conducted for retail banking at branch level, trade finance at hub level and credit operations at head office level. y TEMENOS T24 is the most technically advanced banking system available today. y T24 is built on open architecture, offers low cost of ownership and uses established standards such as HTTP, XML and J2EE. y The design of T24 offers multiple application server support offering horizontal scalability and supporting huge numbers of users with true non-stop resilience.

Functionality

y T24 provides a solid foundation for banks to manage customers, processes, risks and monitor ongoing activities, as well as specialised line of business functionality, which provides the full range of banking services. y Retail Banking

y y y y y y y

CRM Multi-channel Cash transactions Payments Credit Deposits Loan simulation

y Private Wealth Management

y Portfolio Management y Valuations y Compliance y Relationship Management y Order Management y Products & Instruments y Backoffice Support y Operational Service

y Corporate Banking

y y y y y y y y y y y

Payments Cash management Commercial Lending and Syndicated Lending Trade finance Internet banking
y Treasury Operations

Forex Money market Securities and repos FRAs and swaps Nostro recs and confirmation matching Futures and options

SWOT ANALYSIS
y In its quality assurance cell, the bank maintains a check and balance on y y y y y y y

methods of sales distribution, new business ideas and strategic options, such as entering a new market or launching a new product in its product line, changing its suppliers and outsourcing its services. STRENGTHS Promoting savings and investment By providing cheaper loans and giving high interest on saving accounts. They have computerized system, and online banking. Automated systems made NIB bank to rise with the pressure of rising competition. The employers at NIB are offered reasonable monetary benefits. Normally two bonuses are given Eid ul Fitar and Eid ul Azha. NIB bank has well established website and is up to date about the bank. The opening of several new flagship branches along with a refurbishment programme can be seen as an attempt to refocus on customer demands for a strong presence

WEAKNESS Centralized organizational structure. Branch area is very small with respect to hired staff. Though NIB Bank installed computer yet the system has not totally shifted on computer. Manual procedure is still there hence computer facility is not fully availed. It should be fully availed and system should be fully computerized. y A lot of productive time is wasted by the staff in unproductive pursuits and tea and lunch breaks are got voluntarily extended and the time spent in corridors, courtyards, depends on the staff will. This tendency of late must be eliminated which reflect adversely on the image of the institution and has posed a serious problem. y People have to wait for re-cashing their cheques for about 10 to 12 minutes, which is not good for the reputation of bank.
y y y y

OPPURTUNITIES Large market potential. Favorable demographic changes in society. Increase credit facilities to lower level income and also to SME,s. The bank s strategy is to offer a full portfolio of services nationwide, providing a wide range of cross-selling opportunities. y Since the Bank has an extensive networks of branches so if the bank can be able to computerize all of its branches then it can be able to capture the market more efficiently y The bank has already a huge amount of customers by providing better and better services to their existing customers, but word of mouth can also be helpful in increasing the number of customers to have a competitive advantage over its growing number of competitors.
y y y y y

y THREATS y Huge competition with local and foreign banks y Rapid technological advancements has become challenge for

NIB Bank Ltd y Due to increasing number of foreign banks in Pakistan which offer a very attractive package for their employees the very key employees of the bank are more likely to resign which is a very major threat. y Not all branches are computerized neither providing ATM services and no online banking and the customers demand for these services is increasing day by day so Bank should computerize all its branches. y At some places, the NIB Bank Limited is over-employed. which is causing over expenditure

Conclusion
y In every industry, E-commerce is revolutionizing the

way business is conducted. New business models are replacing outdated ones and organizations are rethinking business process designs and customer relationship management strategies. NIB Bank inherits strong organizational culture having values for leaders and as well as for employees and customers and the organization behavior is up to the mark for any company being in Pakistan.

Recommendations
y NIB Bank should offer training and development sessions for undergraduates;

this will help NIB Bank in future while recruiting employees.

y NIB should introduce Dress-Down day i.e. employees should be given

permission to wear dresses other than formal dresses on certain days so as to make them relaxed while work.

y Customer retention: Customer retention is one of the main priorities for banks

today. With the entry of new players and multiple channels, customers have become more discerning and less 'loyal' to banks. y In order to implement total quality management, bank need to respect a cultural change in direction, set the strategy and give employees a chance to look at things differently.
y Reorganizing products and services according to customer requirements