ASA UNIVERSITY BANGLADESH

ASSIGNMENT ON

SUBMITTED TO: -

1

Rebeka Sultana Liza(Course teacher)Business Communication

SUBMITTED BY: -

1. Mahmuda (ID: 081-12-0399)

2. Zannatul Ferdous (ID: 081-12-O4O3)

3. DM SAMS-UZ-ZAMAN (ID: O81-12-0382) 4. Azizur Rahman Azad

(ID: 081-12-0407)

5. Emran Kayes (ID: 081-12-0406)

6. ABU SALEH MD. TARIQUE ADNAN (ID: 081-12-0404)

Batch: 3RD

Section: J

LETTER OF TRANSMITTAL

7TH April 2009

2

Rebeka Sultana (Liza)

Course teacher

Faculty of Business

ASA University Bangladesh.

Subject: Customer retention in Bank.

Dear Madam,

Its great pleasure for us that, we are going to present a report on “Customer retention in

Bank” You assigned us this topic for prepare a report.

We know that Dutch-Bangla Bank is one of the leading banks in Bangladesh. Since 1996 it

has been providing different service very effectively.

Dutch-Bangla Bank employee’s communication channel is very effective and strength. That’s

why they make good profit every year. So we want to know the Communication channel

strength and effectiveness of Dutch-Bangla Bank’s executives. As the topic of our report goes

Customer retention in Bank.

Working on this research has given us the opportunity to theoretical with practical

experience. This project gives a wide view of the existing situation of Communication

channel strength and effectiveness different aspects regarding this particular topic.

We would be very happy to provide you with clarifications regarding our research.

Yours truly,

MAHMUDA ABU SALEH MD.TARIQUE ADNAN

(ID: 081-12-0399) (ID: 081-12-0404)

ZANNATUL FERDOUS AZIZUR RAHMAN AZAD

(ID: 081-12-O4O3) (ID: 081-12-0407)

DM SAMS-UZ-ZAMAN EMRAN KAYES

(ID: O81-12-0382) (ID: 081-12-0406)

ACKNOWLEDGEMENT

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We would like to thank our honorable course teacher Rebeka Sultana (Liza) giving us the

chance to write this report on Customer retention in Bank.

Thanks to her that we were able to understand this report properly. She has motivated us all

the time by giving suggestions and delivering supporting materials about the study.

Next thanks go to MOHAMMAD ZAFRUL ISLAM gives us an appointment without any

bureaucratic process and also give us information about the organization.

We also very grateful to all of our group members who had their important contribution to

making this report.

We would like to thanks to those people whom we interviewed, and to all other people who

were supported us, while making this report. Finally, our gratitude along with thanks goes to

The Almighty Allah for keeping everything on the right time.

ABSTRACT

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Customer retention is a most important factor of Bank. A bank that is bad in dealings, like in

conveying his ideas to customer, bank who is bound to fail. In his day-to-day activities,

Banks are highly depending on the customers’ satisfaction. Banks has also to understand the

art of satisfying the customer. So that Bank can give maximum contribution to satisfy its

customers as well as be able to retain the customers.

Good bank’s managers develop this art in due course by understanding the people and on the

basis of trips of good communication. They also take advantage their own experiences. It has

been observed that one particular method is not good for all customers. Personal factors of a

customer have to be taken into account if one wants to retain their customers.

We make a report on Customer retention in bank, which is the most important part of a bank.

 

Executive Summary

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Dutch-Bangla Bank Limited (the Bank) is a scheduled commercial bank. The Bank was

established under the Bank Companies Act 1991 and incorporated as a public limited

company under the Companies Act 1994 in Bangladesh with the primary objective to carry

on all kinds of banking business in Bangladesh. The Bank is listed with Dhaka Stock

Exchange Limited and Chittagong Stock Exchange Limited.

DBBL- a Bangladesh European private joint venture scheduled commercial bank commenced

formal operation from June 3, 1996. The head office of the Bank is located at Senakalyan

Bhaban (4th floor), 195, Motijheel C/A, Dhaka, Bangladesh. The Bank commenced its

banking business with one branch on 4 July 1996.

TABLE OF CONTENTSSL

NO.

Title Page no

1. Letter of Transmittal 1

2. Acknowledgement 2

3. Abstract 5

6

4 Executive summary 6

Background 9

6. About Dhaka Bank 6-10

7. Methodology of the study 10

8. Limitation of the study 11-12

9. Questionnaire and Analysis 13-26

10. Conclusion 27

11. Questionnaire 28-32

12. Bibliography 33

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Chapter -1: Introduction

1.1 Background

A report is something about a comment on specific considerable matter. Its says positive and

negative on a particular subject and given proposals and suggestions for further improvement

if the report is on customer retention, it will be an analysis on the customer retention of that

bank and overall customer satisfaction on the provided service by a bank “DUTCH

BANGLA BANK LTD” is one of the leading bank in Bangladesh, is very much dedicated

for ensuring quality service to it’s customers. This report is about the customer retention in

bank by DUTCH BANGLA BANK.

8

1.2 Statement of the problem

Customer retention is very important thing for a bank Institute. The growth of any bank

institute is highly depending on the satisfaction of its up going customer. People like to

transect their money in that Banks which is more secure and ensure the best quality to their

customers. If a bank is able to satisfied its customers its must be able to reach its desire goal.

So, the statement of problem is HOW THE BANK RETAINS CUSTOMER BY

PROVIDING SERVICE. Here discussing issue will be the customer satisfaction and

providing services.

1.3 Objective of the study

The objective of the study is –

o How one bank can retain their customer?

o Why customers are switch to another bank.

o How much fruitful of the provided service.

o What is the customer demand?

1.4 Scope of the study

The report really focused on:

o A broad overview about the organization.

o The customer retention policy of the bank.

o Customer’s view point about the given services.

o Proposals and suggestions for future improvement.

1.5 Limitations of study

Regarding data collection surveying, I had to go through many limitations, which may

possibly affect the study a little bit. Data has been collected from primary and secondary

sources. The purity of the study was dependent on the fairness of the collected data. I have

tried my level best to collect and process the whole reliable data from different sources.

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Lake of co-operation: Sometimes the employees did not want to co-operate with me

because they have different attitude and way of behavior. So, it was difficult for us to

survey.

Lake of seriousness: Sometimes respondents are not seen serious and some of them

answer the questionnaire as a fun.

Data collection from different locations: Sometimes an alternative source was

chosen, putting behind the targeted one.

Wrong thinking: When we requested some particular female customers they thought

us wrong, as we were trying to irritate them.

Lack of funds: We are student and we do not have any earning source, it was very

hard for me to collect, process and surveying the data.

Lack of time: Time is a big matter for preparing this kind of research. So, the report

would have been much better if more time was available to concentrate and prepare the

report.

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Chapter-2: Methodology

Methods of Collecting Data :

The paper has been prepared on the basis of data collected from both primary and secondary

sources. Primary sources of data are mainly obtained from my selected organization Dutch

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Bangla Bank as interview survey and we help more from our course instructor and I also got

help from some of my class-mates and seniors.

Primary : We have got the primary information through interview, observation and dissection

etc.

Secondary: We have got the primary information through our book, Annul report of Dutch

Bangla Bank Ltd. and Internet.

Study Approach: Study approach was survey category and observation which is based on

summation score. A summation of job is more sophisticated.

Study Instruments:

Evaluation Form: We make Evaluation Form to evaluate the Customer’s point of

view.

Questionnaire: We make Questionnaire for take practical information about the

topic.

Interview: The interview was face-to-face.

Mechanical Instrument: We used paper, pencil, voice recorder, cell-phone,

computer, printer etc.

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Chapter-3 : Company Profile

About Dutch-Bangla Bank Ltd.

Dutch-Bangla Bank Limited Type Commercial bank Founded Dhaka, Bangladesh Headquarters Bangladesh Industry Banking Products Banking services

13

Bangladesh economy has been experiencing a rapid growth since the '90s. Industrial and

agricultural development, international trade, inflow of expatriate Bangladeshi workers'

remittance, local and foreign investments in construction, communication, power, food

processing and service enterprises ushered in an era of economic activities.

The Bank was incorporated as a public limited company under the Companies Act. 1994. The

Bank started its commercial operation on June 3, 1996 with only one branch.

The Bank has 64 branches across the country and a wide network of correspondents all over

the world.

The Bank offers the full range of banking and investment services for personal and corporate

customers.

Dutch-Bangla Bank Ltd. is the preferred choice in banking for friendly and personalized

services, cutting edge technology, tailored solutions for business needs, global reach in trade

and commerce and high yield on invest.

The Board and its Committees

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The Board

Chairman: Mr. Abul Hasnat Md. Rashidul Islam

Directors:

Mr. Zaheed Hossain Khan

Mr. Bernhard Frey : Nominee of Etacol Hong Kong Limited

Mr. Shahabuddin Ahmed : Elected from General Shareholders' group

Mr. Md. Shahidur Rahman

Mr. Md. Yeasin Ali : Ex-officio Director

The Committees of the Board

1. Executive Committee of the Board of Directors

i) Mr. Abul Hasnat Md. Rashidul Islam - Chairman

ii) Mr. Zaheed Hossain Khan - Member

iii) Mr. Md. Shahidur Rahman - Member

iv) Mr. Md. Yeasin Ali - Member

2. Audit Committee of the Board of Directors

i) Mr. Zaheed Hossain Khan - Chairman

ii) Mr. Shahabuddin Ahmed - Member

iii) Mr. Md. Shahidur Rahman - Member

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Sponsor Shareholders

Main Communication channel hierarchy of Dutch Bangla Bank

MANAGING DIRECTOR

CHIEF EXICUTIVE OFFICER

BOARD

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Mission StatementOur Mission

Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a

commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's

operation; because "man does not live by bread and butter alone".

Our Vision

Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics,

music and entertainment, science and education, health and hygiene, clean and pollution free

environment and above all a society based on morality and ethics make all our lives worth

living.

Our Goal

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs

and satisfaction and to become their first choice in banking. Taking cue from its pool

esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that

upholds and epitomizes its vaunted marques "Your Trusted Partner".

Their Branches

Presently Dutch Bangla Bank is operated in 18 different districts with 64 Branches, Dutch

Bangla Bank has built its reputation as one of the leading banks in the private sector

throughout these years. Mr. Md. Yeasin Ali, Managing Director of the Bank is seen receiving

the ICAB National Award-2006 (Second prize) for the best published Accounts and Reports

in Financial Sector (Banking) from Dr. A.B. Mirza, Md. Azizul Islam, Hon'ble Adviser for

Finance, Planning, Commerce and Posts & Telecommunications.

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Chapter-4: Policy & Strategy

18

Policy & Strategy: To retain their customer with satisfaction Dutch Bangla bank

provides all kinds banking facility to customers. DBBL assure the following Policy &

Strategy to their customers

FUNCTION OF THE ORGANIZATION :

Banking Products -

Deposit :

Savings Deposit Account

Current Deposit Account

Short Term Deposit Account

Resident Foreign Currency Deposit

Foreign Currency Deposit

Convertible Taka Account

Non-Convertible Taka Account

Exporter's FC Deposit (FBPAR)

Current Deposit Account-Bank

Short Term Deposit Account-Bank

Term Deposit :

MONTHLY TERM DEPOSIT

TERM DEPOSIT 3 MONTHS

TERM DEPOSIT 6 MONTHS

Loan & Advances

Life Line (a complete series of personnel credit facility)

Loan against Trust Receipt

Transport Loan

Real Estate Loan (Res. & Comm.)

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Customer service and online banking

DBBL continued to be a customer focused, need based and solution-driven Bank. Our

products and services are strongly supported by IT infrastructure and online banking

facilities, which are upgraded and expanded on a continuous basis. Seventy seven (77) more

ATMs were installed in 2007 to increase the number of ATM to 207. We are providing any

branch anytime banking services to our clients 24 hours a day and 365 days a year.

DBBL Internet Banking

DBBL Internet banking enables customer to access his/her personal or business accounts

anytime anywhere from home, office or when traveling. Internet Banking gives customer the

freedom to choose his/her own banking hours. It can save time, money and effort. It's fast,

easy, secure and best of all.

International Trade Performance

Areas of Operation :

Import Finance

DBBL extends finance to the importers in the form of:

1. Opening of Import L/C

2. Credit against Trust Receipt for retirement of import bills.

3. Short term & medium term loans for installation of imported machineries &

production thereof.

4. Payment against document.

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Export Finance

1. Pre-Shipment Finance

Pre-Shipment finance in the form of:

I) Opening of Back-to-Back L/C

II) Export Cash Credit

2. Post-Shipment Finance

Post-Shipment finance in the form of:

I) Foreign/Local Documentary Bills Purchase

II) Export Credit Guarantee

III) Finance against cash incentive

Foreign Remittance

DBBL provides premium quality service for repatriation and collection of remittance with the

help of its first class correspondents and trained personnel. By introducing on-line banking

service and becoming a SWIFT Alliance Access Member, which enable its branches to send

and receive payment instruction directly that helps provide premium services. Remittance

services provided by DBBL are:

Inward Remittance: Draft, TT

Outward Remittance: FDD, TT, TC and Cash (FC)

Treasury

DBBL is well equipped for treasury operation through subscribing Reuters's terminal and

operating in SWIFT network. It is also well equipped with competent human resources for

efficient dealing.

21

Account Services

DBBL provides all the accounts services as prescribed by the guidelines of Central Bank

(Bangladesh Bank). We offer competitive interest rate and provide premium quality services

for the accounts. Account services are:

1. Foreign Currency Account

2. Non-Resident Foreign Currency Deposit Account (NFCD)

3. Resident Foreign Currency Deposit Account (RFCD)

4. Convertible and Non-Convertible Taka Account

5. Non-Resident Blocked Taka Account

Human resources and organizational development

In support of its strategy, Dutch-Bangla Bank Limited focuses on attracting, developing and

motivating the very best individuals and on encouraging talent internally. DBBL continues to

endeavor to ensure that employees' engagement with the business is maximized, as this is

beneficial to shareholders, colleagues and customers alike. DBBL recruits people from a

broad cross-section of society.

A high quality and competent human resource is crucial to continued growth and success of

the Bank, which can be achieved by improving skill, knowledge and productivity of the

employees.

22

SWOC Analysis

Strengths

Satisfactory Capital Adequacy. Satisfactory business growth. Experienced top management. Diversified product lines. Satisfactory asset quality.

Weaknesses

Decreasing market share.Deposit growth is less than Peer and

industry growth.Does not have own training institute.Dependency on term deposit.

Opportunities

Investment in SME and Agro based Industry.

MIS in continuous development process.

Basel-II compliance for capital adequacy

Challenges

Increasing cost of fund.Implementation of Basel-II.Increased competition in the market.

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Our Visited BranchFor taking interview we go on of the Branch of Dutch Bangla Bank.

Branch Addresses:

LOCAL OFFICE

BANKING HOURS Sunday - Thursday 9 AM. To 3 PM.

ADDRESS 231,Senpara Parbota (1st Floor)Mirpur, Section-10Dhaka-1216

CONTACT PERSON Mohammad Zafrul Islam Executive Assistant Relationship Officer

E-MAIL local@dbbl.com.bd

PHONE NUMBER +8802 9015957, Mobile: 8801819-006702

FAX +880-2-9015966

Analysis and findings of Questionnaires are as follows:

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COMPETATIVE ADVANTAGE

Customers perceive their bank has competitive:

Serial No.

Topics N Mean StandardDeviation

1. Has excellent service quality.30 4.3 0.7022

2. Uses latest technology.30 4.033 0.6686

3. Has memorable advertisement. 30 3.70 0.7943

4. Offers unique and distinctive product.

30 3.60 0.7239

5. Has competitive pricing compare to others.

30 4.06 0.7526

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Findings: 1. Dutch Bangla Bank provides Excellence in banking services.

2. Dutch Bangla Bank offers competitive interest rate and provides premium quality

services for the accounts.

3. DBBL’s provides the latest technology to their customer. The Bank has launched

Online Banking service, joined a countrywide shared ATM network and has introduced a co-

branded credit card. A process is also underway to provide e-business facility to the bank's

clientele through Online and Home banking solutions

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CORPORATE IMAGE

Customer perceive the image of their bank’s

Serial No.

Topics N Mean Standard Deviation

1. Widely known.30 4.13 0.5783

2. Stable.30 4.17 0.8339

3. Reliable.30 4.33 0.8022

4. Trust worthy.30 4.47 0.6388

5. Involved in the community.30 4.13 0.7302

6. Well light. 30 4.10 0.6074

7. Unique compare to others. 30 4.17 0.6989

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Findings:

1. DBBL is too much Trust worthy and Reliable to their customer.

2. Dutch Bangla bank offers various type of unique service/product to

their customers.

3. DBBL is a well establish bank. It continues it’s banking activity with quality

and profitability since 1996.

4. DBBL is a widely known commercial bank. The Bank has 64 branches across the

country and a wide network of correspondents all over the world.

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PERCEIVED VALUE

Customers value their Bank because it has:

Serial No.

Topics N Mean Standard Deviation

1. Efficient Service: 30 4.13 0.6815

2.Offers latest product:

30 3.60 0.6214

3.Listen and be sensitive to customer need:

30 3.80 0.6102

4.Flexible Banking policy:

30 3.97 0.8899

5.Convenient branch locations:

30 4.00 0.6432

6. Many branch locations: 30 4.47 0.7878

7.Fair method of setting fees:

30 3.93 0.5915

8. Extended banking hours: 30 4.00 0.6814

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Findings: 1. Dutch Bangla Bank has built its reputation as one of the leading banks in the

private sector. Presently Dutch Bangla Bank is operated in 18 different districts with 64

Branches,

2. The Bank offers the full range of banking and investment services for personal and

corporate customers, backed by the latest technology and a team of highly motivated officers

and staff.

3. Dutch Bangla Bank serves their customers Sunday - Thursday 9 AM. To 3 PM. Its

also provide 24 hours ATM card facility.

After findings the analysis is proved that DUTCH BANGLA BANK LTD. Is too much

caring about their customers and customers are satisfied about the bank.

30

ON

Dutch-Bangla Bank LTD.

31

Responds to the question: How does the management take opinion from Customer in

case of problem solving?

Analysis:

In the case of problem solving management take opinion from customers in several ways like

suggestion box, informal meeting, Internet chat room etc. When we talk with Dutch Bangla

Bank customers they says that informal meeting is effective because in this meeting they talk

with management in a friendly environment out side the office, they feel good to discuses

with the management but suggestion box is long and slow process in their management can

not take right and rapid decision. On the other hand Internet chat room is a modern way to

communicate with the customers in the web that comes to the future when the internet system

is spread everywhere. Out of 20 customers 40% customers are agree with suggestion box,

60% are agree with Informal meeting and 0% for Internet chat room.

40

60

00

20

40

60

80

Series1 40 60 0

SUGGESTION BOX INFORMAL MEETING INTERNET CHAT ROOM

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Responds to the question: Communicate with outside the organization, what type of

Media use?

USE MEDIA OUTSIDE THE ORGANIZATION

PRESSCONFERENCE

14%

ADVERTISINGON TV23%

RADIO /NEWSPAPER

49%

INTERNET14%

Analysis:

Communicate outside the organization Dhaka Bank use Advertisement and internet mostly.

Usually they give advertisement on TV, they have a beautiful web side that consumer can get

information from that. From the questionnaire we see that they use Press conference 14%

advertisement 23%, internet 14% and radio / News paper 49%. They give more

advertisement on Daily News paper.

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The mediums used by your organization to communicate with other branch:

MEDIA USE COMMUNICATE WITH OTHER BRANCHES

INTRANET25%

TELEPHONE50%

FAX25%

VIDEOCONFERENCING

0%INTRANET

TELEPHONE

FAX

VIDEO CONFERENCING

Analysis:

In their daily works Dutch Bangla Banks need to communicate with other branches Most of

the time they use telephone and intranet. Intranet is the easy way the easy way to

communicate with other employees, every employees of Dutch Bangla Bank have a

individual ID to login by that number they can use intranet. But they can not access other web

side. In the past the use Fax mostly but day to day life it is decreasing because it takes time.

Now they do not use video conferencing but in future they hope so.

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Responds to the question: Most of the time organizational work done by-

ORGANIZATIONAL WORK DONE BY

INDIVIDUAL 10%

TEAM WORK 45%

DEPARTMENTAL BASE 30%

ACCORDING TO ORDER 15%

Analysis:

Out of 20 employees 45% are do Team work, 30% departmental base, 15% according to

order, 10% individually. It clearly shows that Dhaka Bank practices Team Work for solve

any problem, do any project or fulfill their organizational goal. It shows that most of the time

organizational work is done by groups. In Dutch Bangla Bank they follow wheel network

because it relies on a central figure to act as a conduit for all of the group’s communication.

But the management encourages selecting a leader by the group themselves among them to

ensure some accountability and friendly environment.

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Responds to the question: What type of behavior customers aspect from bank?

Analysis:

Out of 20 respondents 90% customers are agree that bank’s employees behave with them

Friendly. If Bank’s employees behave with there customers as friendly, customers become

satisfied.

BEHAVIOR EXPECT FROM BANK

90

10

FRIENDLY

FAMILIARSeries1

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Responds to the question: Most probably your organization can communicate with

telephone, fax, E-mail etc but do you have any VIDEO CONFERENCING system?

USE VIDEO CONFERENCE SYSTEM

0

90

10

0

20

40

60

80

100

Series1

Series1 0 90 10

YES NO IN FUTURE

Analysis:

Video conferencing is a modern and popular communicating media in many developed

countries, but in Bangladesh it is not popular till now because of technological improvement.

Dutch Bangla Bank employees are not use Video conferencing system but they expect that in

future it will come.

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CONCLUSION

After a long analysis, it can be said that Dutch Bangla Bank limited is a leading banking

company that is ensuring its growth by the satisfied customers. From starting, the bank is

trying to perform the needs of customer accordingly. If the organization perform its duty in

this way and maintain it accordingly, soon it’ll grasp the leading position of commercial

Banking Company.

In conclusion, it can be also said that the Banking service given by the Dutch Bangla Bank

LTD. is very much satisfactory and competitive to any commercial Bank LTD.

RECOMMENDATION

If Dutch Bangla Bank wants to improve its service quality and survive with satisfactory

growth rate it might be flowed the following Recommendations:

Ensuring the best service to the customers.

Decreasing the cost of funds.

Raising the Investment in SME and Agro based Industry.

Applying the modern technology for maintaining the satisfied trend of customer.

Emphasis on Basel-II compliance for capital adequacy

Raising market share.

Increasing the Deposit growth which is less than Peer and industry growth.

Open own training institute.

Reduce the dependency on term deposit.

The Bank should be more sincere whether any type of customer

facing a hassle or not.

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Appendices Questionnaire

Competitive Advantage

Customers are satisfied with : GRADING 1. Has excellent service quality ………....... 1 2 3 4 5 2. Uses latest technology …….. 1 2 3 4 5 3. Has memorable advertisement ………….. 1 2 3 4 5 4. Offers unique and distinctive product……….. 1 2 3 4 5 5. Has competitive pricing compare to others………. 1 2 3 4 5

Corporate Image

Customers perceive the image of their bank : GRADING

1. Widely known ………………………. 1 2 3 4 52. Stable ……………………………… 1 2 3 4 53. Reliable ……………. 1 2 3 4 54. Trust worthy …………. 1 2 3 4 55. Involved in the community……….. 1 2 3 4 56. Well light …………………………….. 1 2 3 4 57. Unique compare to others ………… 1 2 3 4 5

Perceived Value

Customers value their bank because they have GRADING1. Efficient service ………………… 1 2 3 4 52. Offers latest product ………………… 1 2 3 4 53. Listen and be sensitive to customer’s need 1 2 3 4 54. Flexible banking policy …………… 1 2 3 4 55. Convenient bank location …………… 1 2 3 4 56. Many branches location ………… 1 2 3 4 57. Fair method of setting fees 1 2 3 4 58. Extended banking hours …………… 1 2 3 4 5

39

BIBLIOGRAPHY

Basic Business Communication- Lesikar, Flatley

http://en.wikipedia.org/wiki/Dutch_Bangla_Bank_Limited

http://www.dbbl.com/about_aboutus.php

http://www.dutchbanglabankltd.com/about_sponsors.

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