report hsbc
TRANSCRIPT
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1. INTRODUCTION
1.1 ORIGIN OF THE REPORT
The report is a requirement of the internship program for my BBA degree. The
organization attachment started on May 03, 2003 and will end on o!em"er 03,
2003. My organization super!isor Ms. #inia Amreen $%ustomer &er!ices 'fficer,
Main 'ffice, (&B% )ha*a+ assigned me the topic of my report and it is has "een
duly appro!ed "y my super!isor at orth &outh ni!ersity, Ms. Mo"ina (asan.
The reason "ehind choosing this topic is that, recently the %-' of (&B%
Bangladesh has gi!en emphasis on "etter customer ser!ice and more customer
satisfaction and thus the %ustomer ser!ice officer wants to get an idea of the
current le!el of customer satisfaction at (&B%.
1.2. OVERVIEW OF THE COMPANY
(&B% is a glo"al "an*ing and financial ser!ice organization headquartered in the
nited ingdom. The (&B% group/s international networ* comprises of some
,000 offices in 1 countries and territories. (&B% holding plc are held "y around
0,000 shareholders in some 00 countries and territories. 4n Bangladesh, (&B%
group is represented "y its head office in )ha*a, a full5ser!ice "ranch in
%hittagong and three su"5"ranches in 6ulshan, Moti7heel and )hanmondi. (&B%
is the first "an* to recei!e the 4&'002 accreditation in Bangladesh.
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1.3 OBJECTIVE OF THE REPORT
General Objective: 6eneral o"7ecti!e is to assess the le!el of importance the
customers of (&B% put across !arious ser!ice le!el attri"utes and also to
determine how well (&B% was satisfying the customers on those ser!ice grounds.
More specific o"7ecti!e is to pro!ide information on (&B% Bangladesh, determine
most important attri"utes of ser!ice quality, identify the most satisfied
demographic segments, determine relation "etween complaint resolution and
satisfaction etc.
1.4 Scope
The presentation of the organizational structure and policy of (&B% Bangladesh
and in!estigating the strategies applied "y it pro!ide the scope of this report. An
infrastructure of the organization has "een detailed, accompanied "y a glo"al
perspecti!e and loo* into the future. The scope of this report is limited to the
o!erall description of the company, its ser!ices, and its position in the industry
and its mar*eting strategies. The scope of the study is limited to organizational
setup, functions, and performances.
1. H!po"#e$%$
The services that customers place most importance in are well satisfied
by HSBC, Banladesh!
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1.& METHODO'OGY
"!#!" Type of research:
4n this study, e8ploratory research was underta*en to gain insights and
understanding of the o!erall "an*ing industry and also to determine some of the
attri"utes of ser!ice quality in Ban*s. After that, a more comprehensi!e
conclusi!e research was underta*en to fulfill the main purpose of the study.
"!#!$ Taret roup:
-8ploratory 9esearch:
Managers, -8ecuti!es, %ustomers of (&B%, Bangladesh.
%onclusi!e 9esearch:
4ndi!idual customers of (&B%.
"!#!% Sources of &nformation:
Primary data
I have collected primary information by interviewing employees and managers of HSBC and
directly communicating with the customers. I have also conducted a questionnaire survey of
the customers minimizing interruptions in their banking activities. rimary data were mostly
derived from the discussion with the employees ! through surveys on customers of the
organization. rimary information is under consideration in the following manner"
#ace to face conversation with the employees
$ppointment with the top officials of the Bank
By interviewing customers at HSBC% &ain 'ffice
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Secondary data
I have elaborated different types of secondary data in my research. Sources of secondary
information can be defined as follows"
Internal Sources
Bank(s $nnual )eport
*roup Business rincipal manual
*roup Instruction &anual ! Business Instruction &anual
rior research report
$ny information regarding the Banking sector
External Sources
+ifferent books and periodicals related to the banking sector
Bangladesh Bank )eport
,ewspapers
"!'!( Study center:
4 could only co!er the )ha*a Main 'ffice in my study, as 4 was not allowed to go
out of the office to carry out my research.
"!'!' )ata collectin instruments:
In-depth interview: )uring the e8ploratory research, 4 conducted in5depth
inter!iews with managers, employees ; customers of (&B%
Questionnaire survey: 4 also designed a structured questionnaire for the
customers of (&B%. This structured questionnaire was the ma7or tool of this
research pro7ect.
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"!'!#Samplin method:
4 adopted simple random sampling technique during the sur!ey of this pro7ect
where customers were gi!en copies of the questionnaire and were as*ed to fill
them. 4 ga!e continuous support to the customers for any pro"lems that they
faced while filling up questionnaire so that the !alidity of the questionnaire
increases. As the &imple random sampling is easily understood and results are
pro7ecta"le it is "est suited for my study.
"!'!* Sample si+e:
Exploratory Research: )uring this phase of the research 4 selected a group of
30 people. This group included < managers, 0 employees and < customers of
(&B%.
Conclusive Research: 4n this part of the research 4 sur!eyed a total of 00
customers with the help of a structured questionnaire.
"!'! )ata -nalysis Techni.ues:
The data that o"tained from the sur!ey were analyzed and interpreted "y using
statistical tools such as /012314C5 )&ST0&B3T&O4, 6ercentae analysis,
7eans, Correlationand Cross tabulations. The data o"tained from the sur!ey
were grouped in two ma7or categories. They are5 importance ; satisfaction. After
that an o!erall !ariance "etween the customer e8pectations and perceptions are
measured to determine the gap "etween ser!ice le!els. Then the data were
presented through a numerical and graphical presentation using the a"o!e
statistical tools. Based on these figures and findings recommendations were made
out to impro!e the o!erall satisfaction of the "an*
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1.( 'IMITATIONS OF THE STUDY
Time frame for the research was !ery limited. The actual sur!ey was done
within a month.
=arge5scale research was not possi"le due to constraints and restrictions
posed "y the organization.
The research only co!ers the customers of )ha*a Main office.
The sur!ey was limited to the customers of >ersonal "an*ing di!ision and
does not co!er the organizational or corporate customers of (&B%.
>art on organizational culture was written from indi!idual/s perception and
may !ary from person to person.
4n many cases, up to date information was not pu"lished.
The information regarding the competitors is difficult to get
6etting 9ele!ant papers and documents were strictly prohi"ited.
Many procedural matters were conducted directly in the operations "y the top
management le!el, which also ga!e some sort of restrictions.
To protect the organizational loss in regard of maintaining confidentiality,
some parts of the report are not in depth.
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2. BAN)ING SECTOR IN
BANG'ADESH
2.1 DEFINITION OF BAN)
?hoe!er, "eing an indi!idual firm, company or corporation generally deals in the
"usiness of money and credit is called a "an*. 4n our country, any institution,
which accepts, for the purpose of lending or in!estment deposits of money from
pu"lic, repaya"le on demand or otherwise, and with transfera"le "y chec*s draft
order ; otherwise is called a "an*.
The purpose of Ban*ing is to ensure transfer of money from surplus unit to deficit
units. Ban*s in all countries wor* as the repository of money. The owners loo* for
safety and amount of interest for their deposits with Ban*s. -ntrepreneurs try to
o"tain money from the "an*s as wor*ing capital and for long term in!estment.
These entrepreneurs welcome effecti!e and forward5loo*ing ad!ice for
in!estment. Ban*ing sector thus owe a great deal to the deposit holders on the
one hand and the entrepreneurs on the other. They are e8pected to play the role
of friend, philosopher, and guide for the deposit holders and the entrepreneurs.
&ince li"eration, Bangladesh passed through fragile phases of de!elopment in the
Ban*ing sector. The nationalization of Ban*s in the post li"eration period was
intended to safe the institutions and the interest of the depositors. Those
handling the "an*ing sector ha!e "orne the "urden of putting "an*s on relia"le
footings. )espite all that was done, some elements of irregularities appeared.
?ith the assertion of the role of the %entral Ban*, the Bangladesh Ban* started
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adopting measures for putting "an*ing institutions on right trac*. @et the
preponderance of pu"lic sector management of "an*s left some negati!e effects
in the money mar*et in particular and the economy in general. The agility among
the "orrowers manipulates the "an*ing sector as a whole. 4n effect, a default
culture, among other effects, appeared on the scene.
The opening of pri!ate and foreign participants to the "an*ing sector was
intended to o"tain desira"le results from "an*ing. The authorization of pri!ate
"an*s was designed to create competition among the "an*s and competition in
the form of efficiency within and the producti!ity in enterprises funded "y "an*s.
nfortunately, for the people, at large, "an*ing sector is yet to o"tain the credit
for efficiency, credi"ility, and growth.
The cle!er, among the user of "an*ing ser!ices, ha!e influenced the management
of "an*s, for o"taining short term and long term loans. They sometimes showed
inflated equity to get money for in!estment in "usinesses and industry. ew
di!erted their loan money to purposes different from the loan proposals, and
in!ested in non profita"le units ha!e failed to repay their loans to the "an*s. or
this reason new entrepreneurs are not getting capital while defaulting
entrepreneurs ha!e started o"taining either relief in the form of rescheduling of
the repayment program or additional ine!ita"le money for di!ersified units.
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2.2 A PREVIEW ON THE GENERA'
ECONOMY AND THE BAN)S
6erformance
-conomy often plays an important role in the "an*/s performance and it/s
e8istence in the mar*et. &o while e!aluating the performance of "an*ing sector of
Bangladesh. 4 "elie!e that it is important to tal* a"out the economy during the
rele!ant year.
General 1conomy 8"99"9$;
The 6ross domestic product $6)>+ of Bangladesh increased "y 3. in 52
as compared to 3.C growth in the pre!ious year. )uring this year the growth
was little lower than pro7ected. )ue to the hea!y growth in the countrywide
e8port and negati!e growth in import the international trade deficit decreased "y
&D2E2 million to &D
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"an*ing sector increased "y . "ecause the demand for loan was higher than
the pre!ious years. )uring this year deposit increased to B)T2C020 million.
General 1conomy 8"99%9(;
35E was the continuation of pre!ious economic growth. 4n this period the
growth was
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than the pre!ious years, as result growth rate in this sector was 3.
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2.3 BAN)S IN BANG'ADESH
4ame of Ban< 4umber of Branches
&nland -broad
-! 4ationali+ed Commercial Ban
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. ational Ban* of >a*istan
0. (anil Ban*
. )utch Bangla Ban* 2"$! HSBC ' $
Source: www!banladeshban
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2.4 BAN)ING IN BANG'ADESH
Ban*ing is the "ac*"one of national economy. All sorts of economic and financial
acti!ities re!ol!e round the a8is of the "an*. As the industry produces goods and
commodities, so does the "an* creates and controls money5mar*et and promotes
formation of capital. rom this point of !iew, "an*ing5a technical profession5 can
"e termed as industry. &er!ices to its customers are the products of "an*ing
industry "esides "eing a pi!otal factor in promoting capital formation in the
country. As all economic and fiscal acti!ities re!ol!e round this important
H4ndustryH, the role of "an*ing can hardly "e o!er emphasized.
%ircumstances "eing such, it "ecomes imperati!e to find out the role that now
playing in the country and analyze its operational aspects so as to ascertain the
importance of this delicate financial sector and its o!er all impact on our national
economy. To ascertain the role of "an*s and to analyze its operational aspects
and its o!erall impact on our national economy a through study as to its
distri"ution, e8pansion and contri"ution is essential to comprehend its past,
present and future "earings for the growth and de!elopment of the "an*ing
sector of the country. 4n the glo"al conte8t, the role of "an*s is far 5 reaching and
more penetrating in the economic and fiscal discipline, trade, commerce,
industry, e8port and import5 all carried through the "an*. Ban*s are the only
media through which international trade and commerce emanate and entire credit
transactions, "oth national and international.
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2. APPROVA' OF NEW BAN)S
'pening of the recently permitted new "an*s, without implementation of the
needed reforms, could lead to unethical competition and horse5 trading in the
countryHs trou"led "an*ing sector, according to the "an*ers.
-ntry of new "an*s in the mar*et under the present situation will lead to
unethical competition and horse5trading in the "an*ing sector. The pro"lems li*e
non5performing loans in the sector may also worsen. The size of the mar*et and
the present state of economic acti!ity did not pro!ide adequate scope for
"usiness for a large num"er of "an*s with poor management and outdated
operating systems. This would o"!iously lead to unethical practices in the sector.
Adding the lac* of s*illed hands at the top and mid5le!el management of "an*s
could also result in Ihorse5tradingI.
Mr. =utfar 9ahman &ar*ar, -85go!ernor Bangladesh Ban* echoed his !iews and
said IAllowing the new "an*s, without restoring discipline and resol!ing their
numerous pro"lems, will create unhealthy atmosphere and unethical "an*ing in
the whole country.I The "an*s would o"!iously resort to unethical means of
capturing or retaining "usiness, such as undercutting interest or "ri"ing official to
attract go!ernment deposits. These would !itiate the atmosphere of the "an*ing
sector.
A top official of another multinational "an* said appro!al of the new "an*s "y the
go!ernment was against the glo"al trend. I?hen the glo"al trend is merger and
acquisition of the small "usiness entities, the go!ernment is permitting numerous
new "an*s.
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oreign "an*s were all prepared to snatch the countryHs limited mar*et, with
potentials of new "usiness opportunities. 6o!ernment step at this time should
ha!e "een to strengthen local "an*s through underta*ing needed reforms.
4nstead of doing that new "an*s were permitted further squeezing the "usiness
opportunities.
Another senior pri!ate "an*er said, I9unning a "an* is !ery difficult in a country
li*e Bangladesh, with inadequate and ineffecti!e legal framewor*. >ermitting new
"an*s without addressing the pro"lems was o"!iously wrong decision.
The pri!ate "an*s had concentrated their acti!ities only in a few areas. The new
"an*s would also try to share the most potential mar*et, forcing others to face
tougher competition. This would also restrict other to e8pand fast to cater to the
"an*ing needs of the people in other areas.
The international Monetary und $4M+ and the world Ban* earlier as*ed the
go!ernment to reconsider its decision to permit new "an*s without restoring
discipline in the sector, crippled "y huge amount of "ad de"ts.
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18
Head Office
HSBC Bangladesh
Anchor Tower, Sonargaon Road
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3. THE HONG)ONG AND SHANGHAI
BAN)ING CORPORATION 'IMITED *HSBC+
3.1 INTRODUCTION
(eadquartered in =ondon, (&B% (oldings plc is one of the largest "an*ing and
financial ser!ices organizations in the world. 4t "egan operations in (ong ong
more than 30 years ago. The (&B% 6roupHs international networ* comprises
some ,000 offices in 1 countries and territories in -urope, the Asia5>acific
region, the Americas, the Middle -ast and Africa.
?ith listings on the =ondon, (ong ong, ew @or* and >aris stoc* e8changes,
around 0,000 shareholders in some 00 countries and territories hold shares in
(&B% (oldings plc. The shares are traded on the ew @or* &toc* -8change in the
form of American )epository 9eceipts.
Through a glo"al networ* lin*ed "y ad!anced technology, including a rapidly
growing e5commerce capa"ility, (&B% pro!ides a comprehensi!e range of
financial ser!ices: personal, commercial, corporate, in!estment and pri!ate
"an*ingJ trade ser!icesJ cash managementJ treasury and capital mar*ets
ser!icesJ insuranceJ consumer and "usiness financeJ pension and in!estment
fund managementJ trustee ser!icesJ and securities and custody ser!ices.
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3.2 HSBC GROUP AT A G'ANCE
-ssets &D EC,33< million at 30 Fune 2002.
6rofit 8preta=; &D aris stoc* e8changes. Trading of the
companyHs shares on the stoc* e8changes is
conducted in =ondon, (ong ong and >aris in the
&D 0.% "an*ing o!er a pri!ate networ*, interacti!e TK,
and fi8ed and mo"ile telephones.
6roduct rane >ersonal, commercial, corporate, in!estment and
pri!ate "an*ingJ trade ser!icesJ cash managementJ
treasury and capital mar*et ser!icesJ insuranceJ
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consumer and "usiness financeJ pension and
in!estment fund managementJ trustee ser!icesJ and
securities and custody ser!ices.
>ey events The (&B% 6roup e!ol!ed from the (ong ong and
&hanghai Ban*ing %orporation =imited, which was
founded in 1C< in (ong ong with offices in
&hanghai and =ondon and an agency in &an
rancisco. The 6roup e8panded primarily through
offices esta"lished in the "an*Hs name until the mid5
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3.3 FOUNDATION , GROWTH OF HSBC-
The (&B% 6roup is named after its founding mem"er, The (ong ong and
&hanghai Ban*ing %orporation =imited $(&B%+, which was esta"lished in 1C< in
(ong ong and &hanghai to finance the growing trade "etween %hina and
-urope. The inspiration "ehind the founding of the "an* was Thomas &utherland,
a &cot who was then wor*ing as the (ong ong &uperintendent of the >eninsular
and 'riental &team a!igation %ompany. (e realized that there was considera"le
demand for local "an*ing facilities "oth in (ong ong and along the %hina coast
and he helped to esta"lish the "an* in March 1C
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2 with one of the largest "an* acquisitions in history when (&B% holdings
acquired Midland Ban* plc, which was founded in in 13C. The following are
some *ey de!elopments in the group since
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"9* The &audi British Ban* is esta"lished under local control to
ta*e o!er The British Ban* of the Middle -astHs "ranches in
&audi Ara"ia.
"9? The (ong*ong and &hanghai Ban*ing %orporation acquires
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argo Ban*. Midland Ban* =aunches irst )irect, the Hs first
2E5hour telephone "an*ing ser!ice.
"99" (&B% (oldings is esta"lishedJ its shares are traded on the
=ondon and (ong ong stoc* e8changes.
"99$ (&B% (oldings purchases the remaining equity in Midland
Ban*. (&B% 4n!estment Ban* plc is formed.
"99% The (&B% 6roupHs (ead 'ffice mo!es to =ondon. orward Trust
6roup =imited $now (&B% Asset inance $+ =imited+, a
Midland su"sidiary, acquires &wan ational =easing,
esta"lishing the Hs third largest !ehicle contract hire
company.
"99( The (ong ong and &hanghai Ban*ing %orporation is the first
foreign "an* to incorporate locally in Malaysia, forming (ong
ong Ban* Malaysia Berhad $now (&B% Ban* MalaysiaBerhad+.
"99' ?ells argo ; %o. and (&B% (oldings esta"lish ?ells argo
(&B% Trade Ban*, .A. in %alifornia to pro!ide customers of
"oth companies with trade finance and international "an*ing
ser!ices.
"99* (&B% (oldings and ?acho!ia %orporation of the nited &tates
form a non5equity alliance to mar*et corporate financial
ser!ices worldwide. orward Trust acquires -!ersholt $now
(&B% 9ail $+ =imited+, a rail rolling5stoc* leasing company
and the largest owner of electric trains operating on the
mainline networ*. Marine Midland Ban* acquires irst ederal
&a!ings and =oan Association of 9ochester in ew @or*. 4n
=atin America, the 6roup esta"lishes a new su"sidiary in Brazil,
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Banco (&B% Bamerindus &.A. and completes the acquisition of
9o"erts 0&.A. de 4n!ersiones in Argentina $now (&B%
Argentina (oldings &.A.+.
"999 &hares in (&B% (oldings "egin trading on a third stoc*
e8change, ew @or*. (&B% (oldings acquires 9epu"lic ew
@or* %orporation $now integreted with (&B% &A 4nc.+ and its
sister company &afra 9epu"lic (oldings &.A. $now (&B%
9epu"lic (oldings $=u8em"ourg+ &.A.+. Midland Ban* acquires
a 0.03 interest in Mid5Med Ban* p.l.c. $ow called (&B%
Ban* Malta p.l.c.+, MaltaHs largest commercial "an*.
$??? (&B% and Merrill =ynch form a 7oint !enture to launch the first
international online "an*ing and in!estment ser!ices company.
(&B% reaches an agreement in principle to acquire aris.
$??" Agreement is reached for (&B% to acquire Barclays Ban*/s
"ranches and fund Management %ompany in 6reece. ew EE5
floor (eadquarter "uilding at =ondon/s %anary ?harf is due to
"e ready for occupation.
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3.4 HSBC INTERNATIONA' NETWOR)-
The (&B% 6roupHs international networ* comprises of some ,000 offices in 1
countries. A "rief list is presented "elow:
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3. COUNTRY C'ASSIFICATIONS-
To ensure that *ey resources $management time, capital, (uman resources and
information technology+ are correctly allocated and that the e8change of "est
practice is accelerated "etween entities, the group has classified the countries
where it operates into 3 categories: the large, the ma7or and the international.
These classifications are a function of sustaina"le, attri"uta"le earnings, the
num"er of retail clients, "alance sheet and size of operation. A "rief presentation
of this classification is shown "elow:
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3.& BOARD OF DIRECTORS-
Sir @ohn Bond, Group Chairman
Age
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A 0 6 )alton ) G 1ldon
) @ /lint A > /un, 'B-
S > Green S Hint+e
- A @ebson Sir @ohn >empAelch
The ord 7arshall C 7iller Smith
Sir 7ar< 7oody Stuart 7 7urofushi
C 1 0eichardt H Sohmen, 'B-
Sir -drian Swire
C / A )e Croisset
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3.( HSBC P%/c%p0 B$%/e$$
E/"%"%e$-
The group is represented "y different "usiness entities in o!er 1 countries and
territories around the world. 4t would "e difficult to list them all indi!idually so the
name of the ma7or entities is shown on the following page along with their region
and !olume of operation.
3. HSBC Gop V%$%o/-
3. HSBC Gop V0e$-
3.15 HSBC Go6e/%/7 O89ec"%6e-
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3.11 HSBC:S BUSINESS PRINCIP'ES
AND VA'UES
The (&B% 6roup is committed to fi!e Business >rinciples:
'utstanding customer ser!iceJ
-ffecti!e and efficient operationsJ
&trong capital liquidityJ
%onser!ati!e lending policyJ
&trict e8pense disciplineJ
(&B% also operates according to certain ey Business Kalues:
The highest personal standards of integrity at all le!elsJ
%ommitment to truth and fair dealingJ
(and5on management at all le!elsJ
'penly esteemed commitment to quality and competenceJ
A minimum of "ureaucracyJ
ast decisions and implementationJ
>utting the 6roupHs interests ahead of the indi!idualHsJ
The appropriate delegation of authority with accounta"ilityJ
air and o"7ecti!e employerJ
A merit approach to recruitmentselectionpromotionJ
A commitment to complying with the spirit and letter of all laws and
regulationsJ
The promotion of good en!ironmental practice and sustaina"le
de!elopment and commitment to the welfare and de!elopment of
each local community.
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3.12 HSBC B0/; , Copo0"e
I;e/"%"!-
The (e8agon logo of (&B% deri!es from (&B%/s traditional flag, a white rectangle
di!ided diagonally. =i*e many other (ong ong company flags in the last century,
the design of the flag was "ased on the cross of &T.Andrew, The >atron &aint of
&cotland.
(&B% "rand ; corporate identity represents what (&B% wants its "rand to mean
to its customer. 4t is deri!ed from the groups:
Corporate Character
(&B% is a prudent, cost conscious, ethically grounded, conser!ati!e, trustworthy
international "uilder of long5term customer relationships.
Basic )rives
(igher producti!ity, Team 'rientation, %reati!e 'rganization ; %ustomer
'rientation.
Dision
To "e the world/s leading financial company.
The essence of (&B% "rand is integrity, trust and e8cellent customer ser!ice. 4t
gi!es confidence to customers, !alue to in!estors ; comfort to colleagues.
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3.13 HSBC %/ B0/70;e$#-
The (&B% Asia >acific group represents (&B% in Bangladesh. (&B% opened it/s
first "ranch in )ha*a in th )ecem"er, C to pro!ide personal "an*ing
ser!ices, trade and corporate ser!ices, and custody ser!ices. The Ban* was
awarded 4&'002 accreditation for its personal and "usiness "an*ing ser!ices,
which co!er trade ser!ices, securities and safe custody, corporate "an*ing,
(e8agon and all personal "an*ing. This 4&'002 designation is the first of its *ind
for a "an* in Bangladesh. The (ong ong and &hanghai Ban*ing %orporation
Bangladesh =td. primarily limited its operations to help garments industry and to
commercial "an*ing. =atter, it is e8tended to pharmaceuticals, 7ute and consumer
products. 'ther ser!ices include cash management, treasury, securities, and
custodial ser!ice.
9ealizing the huge potential and growth in personal "an*ing industry in
Bangladesh, (&B% e8tended its operation to the personal "an*ing sector in
Bangladesh and within a !ery short span of time it was a"le to "uild up a huge
client "ase. -8tending its operation further, (&B% opened a "ranch at %hittagong,
three "ranch offices at )ha*a $6ulshan, Moti7heel and )hanmondi+ and an
offshore "an*ing unit on o!em"er 1. At 30 Fune 2003, the num"er of
employees of this "an* in Bangladesh was 2
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(&B% Bangladesh is under strict super!ision of (&B% Asia >acific 6roup, (ong
ong. The %hief -8ecuti!e 'fficer of (&B% Bangladesh manages the whole
"an*ing operation of (&B% in Bangladesh. nder the %-' there are heads of
departments who manage specific "an*ing functions e.g. >ersonal "an*ing,
corporate "an*ing, etc.
%urrently (&B% Bangladesh is pro!iding a wide range of ser!ices "oth two
indi!idual and corporate le!el customers. 4n the year 2000, the "an* launched a
wide array of personal "an*ing products designed for all *inds of $middle and
higher5middle income+ indi!idual customers. &ome such products were >ersonal
loans, car loans, etc. 9ecently the "an* launched three of its personal "an*ing
products G Ta8 loan, >ersonal secured loan ; Automated Tele Ban*ing $ATB+
ser!ice. These products are designed to meet the di!erse customer needs more
completely.
(&B% in Bangladesh also specializes in self5ser!ice "an*ing through pro!iding 2E5
hour ATM ser!ices. 9ecently it has introduced )ay ; ight "an*ing "y installing
-asy5pay machines in Banani, ttara and )hanmondi to "etter satisfy the needs
of "oth customers and non5customers. 4n total (&B% currently has ATM/s $< on5
site ; E offsite+ and 3 -asy5pay machines located at !arious geographical areas of
)ha*a ; %hittagong.
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3.14 HSBC BANG'ADESH AT A G'ANCE-
4ame of the Orani+ation: The (ong ong &hanghai Ban*ing
%orporation Bangladesh =T)
5ear of 1stablishment: C
Head Office: Anchor Tower, 5B &onargaon 9oad
)ha*a 20
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7anaement: 7r! )avid @ Griffits
%hief -8ecuti!e 'fficer
7r! Aasim -dnan Aahed
%hief 'perating 'fficer
7r! 7amoon 7 ShahManager, >ersonal inancial &er!ices
7r! -dil &slam(ead of %orporate Ban*ing
7r! Syed - H 3ddinManager, (uman 9esources
7r! 7unir HussainManager, Mar*eting
4umber of Offices: < $)ha*a, Moti7heel, 6ulshan,
)hanmondi ; %hittagong+
4umber of -T7Es:
4umber of 1asy 6ay
7achines: 3
4umber of employees: 2
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3.1 HSBC B0/70;e$# O
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3. emal Atatur* A!enue, Banani 5 )ha*a
E. %oncord Twin Towers, &hantinagar G )ha*a
3.1& O70/%=0"%o/0 H%e0c#! A"
HSBC> B0/70;e$#-
(&B% follows a E layer management philosophy in Bangladesh. These are
Managers, -8ecuti!es, 'fficers ; Assistant officers. The %-' is the top most
authority of all the le!els. Managers are the departmental heads who are
responsi"le for the acti!ities of their departments. They are the heads of the
department and formulate strategies for that department. e.g. (uman 9esources
Manger. -8ecuti!es ha!e the authority ne8t to managers. They are "asically
responsi"le for certain acti!ities ; organizational functions. e.g. Admin -8ecuti!e.
These two layers represent the management le!el of (&B% Bangladesh.
'fficers are the ne8t persons to stand in the hierarchy list. They are the typical
mid5le!el employees of (&B% organizational hierarchy. These officers are
responsi"le for managing the operational acti!ities and operating le!el
employees. The operating le!el employees of (&B% who are ran*ed as Assistant
'fficer fill the last layer of this hierarchy. They perform they day5to5day
operational acti!ities of (&B%. An organizational hierarchy chart is shown "elow:
40
7anaers
1=ecutives
Officers
-ssistant Officers
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3.1( ORGANI?ATIONA' STRUCTURE OF
HSBC B0/70;e$#-
%!"*!" Chief 1=ecutive Committee:
The organizational structure of (&B% Bangladesh is designed according to the
!arious ser!ice and functional departments. The %hief -8ecuti!e 'fficer $%-'+
heads the chief e8ecuti!e committee, which decides on all the strategic aspect of
(&B%. The %-' is the person who super!ises the heads of all the departments
and also is the ultimate authority of (&B% Bangladesh. (e is responsi"le for the
all the acti!ities of (&B% Bangladesh and all its consequences. (e administers all
the functional departments and communicates with the department heads for
smooth functioning of the organization. The (&B% %hief -8ecuti!e %ommittee is
formed with the heads of all departments along with the %-'. The structure of
this top5most authority is shown in the figure a"o!e. Besides the %-' the %-% is
staffed with < more managers: %hief 'perating 'fficer, Manager >ersonal
inancial &er!ices (ead of %orporate Ban*ing, Manager (uman 9esource
)epartment and Manager Mar*eting.
41
% h i e f ' p e r a t in g
' f f ic e r
M a n a g e r
> e r s o n a l A i n a n c i a l & e r ! i c e s
( e a d o f
% o r p o r a t e B a n * i n g
M a n a g e r
( u m a n 9 e s o u r c e ) e p a r t m e n t
M a n a g e r
M a r * e t i n g
% h i e f - 8 e c u t i ! e ' f f i c e r
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3.1 F/c"%o/0 Dep0"@e/"$ oersonal Ban*ing, etc.+. There are C ma7or functional departments at
(&B%: (uman 9esources, &er!ices, inancial %ontrol, >ersonal Ban*ing,
%orporate Ban*ing and Mar*eting. ?ithin these ma7or departments there are
some other su"sidiary departments that allow smooth operation of their own
ma7or departmental function. A graphical presentation of all the departments
$Ma7or ; minor+ is shown in the following page. A "rief functional description of
these departments is discussed "elow:
Functional Departments of HSBC
NNNNNNNNNNN
4T G 4nformation Technology
>%M G >ayment and cash management
(B G (&B% uni!ersal Ban*ing
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%!"!" Human 0esource )epartment:
The (uman resource Manager heads this department. The ma7or functions of this
department are 9ecruitment, Training and de!elopments, >ersonnel &er!ices and
&ecurity. The (9 department is much concerned with the discipline that is set up
"y the (&B% group. (&B% group has got strict rules and regulations for each and
e!ery aspect of "an*ing, e!en for non5"an*ing purposesJ i.e. The )ress %ode. All
these ma7or personnel functions are integrated in the "est possi"le way at (&B%,
which results in its higher producti!ity. The (uman resource officer monitors the
employee staffing and administration acti!ities. The Training officer super!ises
Training, de!elopment ; rotation acti!ities. The structure of the (9 department is
shown "elow:
Structure of Human 0esource )epartment
-O Assistant 'fficer
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%!"!"!" 0ecruitment, Trainin and )evelopment:
(&B% Bangladesh limited follows a standard procedure for recruitment and
selection. (owe!er there is no set time period when this recruitment and
selection ta*es place. -ach )epartmental head places the requisition for
recruitment to the (uman resource officer, if any !acancy is created due to $+
9etirement, $2+ 9esignation $3+ )eath, or $E+ -8tra wor* load.
The process for the recruitment of personnel for managerial and non5managerial
le!el differs slightly "ut the "asic steps are same in "oth the cases. The steps
are5
Step- I Initial Screening:
Step- II Screening by Departmental eads:
Step- III !illing of the S"C #ob $pplication !orm %#$!
Step- I' Screening on the basis of S$!:
Step- ' Initial Intervie(
Step )'I Selection for (ritten test
Step- 'II *ritten test
Step )'III +valuation of test papers
Step )I, Selection of !inal intervie(ees
Step ), !inal intervie(
Step- ,I Documentation Chec
Step ) ,II .edical +xamination
Step ) ,III /robationary $ppointment:
Step- ,I' Confirmation
4n order to enhance the efficiency of the employees, (&B% gi!es emphasis on the
"oth theoretical and practical training for its personnel. All the training and
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de!elopment programs are aimed at two "asic reasons 5 $+ s*ill de!elopment
$2+ moti!ation through counseling and persuasion to change !alue system. or
the top management or senior Managers there is pro!ision for o!erseeing training
arranged "y (&B% group. or the mid5le!el manager or other managerial le!el
there is pro!ision for regional training courses. Besides, for non5management
le!el there are training programs arranged in different institution and also with in
the organization. or the operati!es, !arious on the 7o"5training program are
conducted within the company. inally, (&B% follows a performance "ased
promotion system for all le!els of its employees.
%!"!"!$ 6erformance -ppraisal
The company follows "oth rating and descripti!e systems for the performance
appraisal. Although the appraisal system is non5participati!e "ut the employees
are annually assessed with a 7oint consultation with their immediate super!isor
and departmental head.
9ating is mainly done on the following factors5
i+ nowledge of wor*
ii+ Accuracy and 9elia"ility
iii+ &peed
i!+ 6eneral intelligence
!+ &ense of responsi"ility and duty
!i+ )iligence
!ii+ 4nitiati!e and self confidence
!iii+ 9eadiness to wor* for and with others.
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%!"!"!% Aelfare -ctivities:
(&B% has many well5structured welfare policies for its employees. These include
well5structured wage ; salary policy, medical facility, sports ; cultural facilities,
pro!ision for loans at a minimal rate, free uniform etc. These welfare policies aim
at strengthening the relationship of the employees to the organizations and ma*e
them more responsi"le in their respecti!e positions.
%!"!$ Services )epartment:
This is an integral and !ital part of the "an*. The ser!ices department ensures
smooth operation and functioning within and "etween all the departments of
(&B%. 4t also pro!ides continuous support to the core "an*ing acti!ities of (&B%.
The Manager of &er!ices heads this department who formulates and manages
!arious critical issues of the ser!ices function of (&B%. (e is followed "y a group
of e8ecuti!es who are the heads of !arious su"sidiary di!isions that operate
within the ser!ices department. The ser!ices department is considered as the
"ac*"one of all other departments. The !arious su"sidiary di!ision within this
department are Administration, 4T, 4nternal %ontrol $4%+, etwor* &er!ices %enter
$&%+, and (B. A structure of the ser!ices department is presented "elow
followed "y a "riefing of the su"sidiary di!isions:
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%!"!$!" -)7&4&ST0-T&O4:
=i*e that of any other organizations, the Admin department of (&B% ma*es sure
that the organizations mo!es on with all its departments and staffs operating
according to all the rules and regulations of the company. 4t also pre!ents any
"ottlenec*s within the wor* process and ensures smooth functioning. The admin
department has two di!isions G general administration and Business support
ser!ices.
The general admin di!ision is pretty much similar to the admin departments of
other companies that ensure discipline and regulatory concerns. The "usiness
support ser!ices pro!ide supports to the departments during employee lea!es
and sudden terminations so that the department can function without pro"lems.
%!"!$!" &T
This department gi!es the software and hardware supports to different
departments of the "an*. As (&B% is engaged in online "an*ing, the role of 4T is
!ery crucial for the "an*. This department is the most acti!e department of (&B%
where employees always stand "y to sol!e any pro"lems in the system. The
managers and e8ecuti!es of 4T di!ision wor* continuously to de!elop the total 4T
system of (&B% so that it can "e operated with ease, accuracy and speed.
%!"!$!% &4T104- CO4T0O:
(&B% has internal auditors who !isit on regular "asis and su"mit the report to the
higher authority for audit purposes. This gi!es different departments the chance
to *now their mista*es and ta*e necessary correcti!e actions. Again, the Ban*
annually administers a company wide audit program to e!aluate the o!erall
performance of the "an* in Bangladesh.
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%!"!$!( HSBC 3niversal Ban
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3!"3 /inancial Control )epartment 8/C);:
This is considered as the most powerful department of (&B%. 4t *eeps trac*s of
each and e!ery transaction made within (&B% Bangladesh. 4t is headed "y
Manager of %) who ensures that all the transactions are made according to rules
and regulation of (&B% group. Kiolation of such rules can "ring serious
consequences for the law"rea*er. The functions of %) are "riefly discussed
"elow along with an organ gram of the department:
555
FC Foreign Correspondence
PCM Payment & cas management
!CM !"t#ard cas management
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%!"!%!" /orein Correspondence 8/C;:
% *eeps records of all the accounts of (&B%. All the !ouchers, notes, ad!ices
and transaction reports of the "ranches are sent to % for record *eeping
purposes. % also prepares the financial statements for the "an*s and decided
upon "an*s assets and lia"ilities. 4t also deals with the returns that are su"mitted
to the %entral Ban* on regular inter!al.
%!"!%!$ Treasury:
This department wor*s under %). Their main 7o" is to ta*e decisions regarding
purchase and sell of foreign %urrency. The purpose of TreasuryHs operations is to
utilize the funds effecti!ely and arrange funds at a lowest possi"le rate of
interest, through maintaining effecti!e relationship with other "an*s and following
the 6o!ernment rules and foreign e8change regulations
%!"!%!% 6ayment and cash 7anaement 86C7;:
>%M deals with the inter5"an* payment. >%M strategies are designed to ensure
efficiency, profita"ly and comprehensi!e support.
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%!"!( 6ersonal Ban=B is the most flourishing department of (&B% Bangladesh. This department
"asically deals with the management of products and ser!ices offered to the in
indi!idual consumers. ?ithin a span of only se!en years, (&B% >=B has grown
tremendously and is still growing with its inno!ati!e products and ser!ice
offerings. Manager of >=B, Mr. Mamoon M &hah, manages this department. (e is
the person "ehind the astounding growth of >=B department in (&B% Bangladesh.
%hief of >=B manages and super!ises the >ersonal Ban*ing acti!ities of the
"ranch networ* of (&B% Bangladesh. The < "ranches of (&B% "asically deal with
the personal "an*ing acti!ities and pro!ide !arious accounts ser!ices to indi!idual
customers.
%!"!(!" Branch networ=B
products, opening new accounts, pro!iding cash, remittance and other teller
ser!ices, etc. the "ranches are quite decentralized for "etter deli!ery of ser!ices
to customer and ha!e their own premises and facilities. These "ranches are
headed "y "ranch managers. -ach "ranch is staffed with its own team of
employees. A great deal of teamwor* is seen within these "ranches. ATM/s are
situated with each "ranch premises.
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%!"!(!$ Credit )epartment:
The personal "an*ing credit department deals with the consumer credit schemes
such as the >ersonal loan, car loan, personal secured loan, personal secured
credit etc. which are tailored to meet the demand of indi!idual customers. The
manager of >=B credit, Mr. uad @usuf han, appro!es and administers all the
acti!ities of this department. (e is staffed with two loan appro!al officers, two
loan processing officer, two assistant officers and one M4& cler*. The appro!al
officers mainly re7ect or appro!e the credit requests. After "eing chec*ed "y the
appro!al officers, the credit requests go to the processing officers for further
processing of the application.
%!"!(!% -T7 Center:
The ATM center ensures smooth operation of the ATM machines that are located
at )ha*a and %hittagong. The ATM center is responsi"le for regular replenishment
of the off5site ATM/s and ser!icing of all the ATMs. %urrently a total ATMs are in
operation. The ATM center also deals with issuance, termination and ser!icing of
the ATM cards. Basically, the ATM center is the department that is solely
responsi"le for all the acti!ities related to ATM and is the facilitating department
that ena"les customers 2E hour "an*ing support.
%!"!(!( -TB center:
ATB refers to Automated Tele Ban*ing. This department deals with the "ac* office
ser!icing of the (&B% phone "an*ing ser!ices pro!ided to customers. This
department is "asically responsi"le for the acti!ation of ATB, ATB pin generation,
and ATB security management, ATB "loc*ing and trou"leshooting of all ATB
pro"lems. %urrently this department is staffed with one e8ecuti!e and an officer
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%!"!' Corporate Ban
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communicate with the clients and are solely responsi"le for the companies they
deal in. Any information regarding a corporate client must "e communicated
through the respecti!e 9M assigned to that corporate client. A relationship
manager may "e assigned more than one company and this decision depends on
the (ead of %orporate Ban*ing.
%!"!'!% H1-GO4:
The (e8agon department deals with all aspects related to (&B%/s unique "an*ing
software product 5 (e8agon. 4t is the glo"al -lectronic Ban*ing system of (&B%,
which offers the customers more con!enient and efficient "an*ing than e!er
"efore. 4t is an inno!ati!e des*top "an*ing system de!eloped "y the (&B% group,
which operates !ia the group/s proprietary worldwide communications networ*.
%!"!'!( HSBC T0-)1 S10D&C1S 8HTD;Trade ser!ice is *nown "y !arious names in other "an*s, e.g. Trade inance
oreign -8change, oreign Trade etc. (owe!er, the functions are the same. As
the name suggests, this department is in!ol!ed in facilitating trade, "oth
international ; within Bangladesh. (&B% is the leading pro!ider of trade finance
and related ser!ices to importers and e8porters in Asia. Trade is considered a
core "usiness of the group. The group/s presence in 1 countries of the world
gi!es a good opportunity to control "oth ends of a trade transaction and *eep the
"usiness within the 6roup. The !arious awards it has won from the leading
pu"lications of the world ac*nowledge (&B%/s e8cellence in trade. The trade
ser!ice department has two separate su"sidiaries: %redit Administration ;
oreign -8change )i!ision.
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%redit Administration department "asically deals with all the documentation,
processing, administration and dis"ursement of the import5e8port ser!ices
pro!ided to corporate clients. This department is *nown to "e the heart of (&B%
trade ser!ices that administers and manages all the trade tools and facilities
pro!ided "y (&B% %orporate Ban*ing. &ome important aspects of this department
are =% ad!ising, documentation, ') facilities, guarantees, etc.
The or5e8 di!ision of trade ser!ices is solely concerned with the management of
oreign e8change inflow and outflow. The or5e8 di!ision of trade ser!ice in
relation with &% and %) manages the foreign currency traffic of (&B% that
originates from %orporate Ban*ing and trade ser!ices.
%!"!# 7arromotion ; Mar*eting Administration. This di!ision
are discussed "elow:
%!"!#!" )irect Sales 8)S;:
An e8ecuti!e is assigned to this part of the mar*eting department. The )irect
&ales di!ision coordinate ; manages the sales acti!ities of all the Mo"ile sales
officers $M&'+ of (&B% Bangladesh. The M&'/s "asically ma*es sales of the
company !arious >ersonal Ban*ing products such as, sa!ings accounts, consumer
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loan, etc outside the "an*ing premises. There are a total of more than < mo"ile
sales officers $M&'+ employed in the cities of )ha*a and %hittagong. The M&'/s
are assigned to specific "ranches for ma*ing sales acti!ities more smoothly. The
)& e8ecuti!e sets sales strategies ; targets for the &ales officers and manages
the whole team of M&'/s in Bangladesh. The direct sales department also decides
upon the commission and remuneration of the mo"ile sales officers as their salary
structure is "ased on sales performances. Thus this part of the mar*eting
di!ision is !ery important for the o!erall growth of the >ersonal Ban*ing )i!ision.
%!"!#!$ 6romotion:
This part of the mar*eting department deals with all the promotional acti!ities of
(&B% Bangladesh. >rime responsi"ilities of this department are: Maintaining
strong pu"lic relations with !arious media intermediaries, Ad!ertising the
companies products and ser!ices, "uilding a strong corporate image of (&B% in
Bangladesh.
%!"!#!% 6ublic 0elations:
The promotion department organizes !arious en!ironmental and social acti!ities
in order to "uild a strong corporate image of (&B% in the minds of customers as
well as in the media. Maintaining strong relationship with news media is another
ma7or duty of this department.
%!"!#!( -dvertisin:
The promotion also coordinates all the ad!ertising of (&B% products within
Bangladesh. &ome of the ad!ertising tools that are frequently used "y the
company are as follows:
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a+ ewspapers Ad!ertising: 9egular ad!ertisements of !arious products and
ser!ices of (&B% are gi!en in some of the countries most renowned daily
newspapers.
"+ Bill"oards: (uge colourful "ill"oards with (&B% logo are found in !arious
ma7or areas of )ha*a and %hittagong. These "ill"oards emphasize on the
needs of customers and shows (&B% logo as solution to their needs.
c+ 9oad &ide &ignposts: Medium sized multi colour signposts focusing on
!arious products of (&B% are found on the roadsides of !arious posh areas
such as, 6ulshan, )hanmondi, Baridhara, Moti7heel, etc.
d+ Mailers: !arious product updates and new product information are
regularly sent to e8isting customers of (&B%.
e+ Brochures: Karious colourful "rochures featuring specific products of (&B%
are "eing displayed and distri"uted to e8isting and potential customers !ia
"ranch offices and Mo"ile sales officers.
These are some of the promotional acti!ities managed and coordinated "y the
promotion department.
%!"!#!' 7ar
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4n these are the ma7or departments of (&B% Bangladesh. -8cept the "ranches all
other departments are situated at (&B% Bangladesh head offices located at
Anchor Tower, awran Bazar. Most of (&B%/s operation and acti!ities are
operated centrally from the head office. But to deal with customers more
completely, the "ranches are gi!en considera"le authority and they operate in a
more decentralized manner "ut su"7ect to !erification of the respecti!e
departments.
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3.1 PRODUCTS , SERVICES
(&B% Bangladesh carries out all traditional functions, which a commercial Ban*
performs such as Mo"ilization of deposit, dis"ursement of loan, in!estment of
funds, financing e8port ; import "usiness, trade ; commerce ; so on. Besides it
also offers some specialized ser!ices to its customers. >roducts ; ser!ices offered
"y (&B% can "e categorized according to the customers they ser!e. Thus two
ma7or groups can "e identified. They are G indi!idual customers or consumers ;
corporate customers or organizations. An in5depth analysis of (&B%/s product and
ser!ices in Bangladesh is presented in this section. irst of all, the lia"ility
products of the "an* are discussed. Then, the !arious products and ser!ices of
personal "an*ing di!ision will "e presented. The summary of all the products and
ser!ices of (&B% Bangladesh is displayed in the following page with the help of a
diagram.
%!"9!" 6roducts F Services: iabilities
The financial products of (&B% can "e categorized into two groups G Asset
products and lia"ility products. Asset products are the !arious types of credit and
loan schemes offered to consumers whereas the lia"ility products consist of all
the sa!ings and deposit schemes offered to customers. 4n the following section,
the lia"ility products of (&B% are descri"ed "riefly:
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%!"9!"!" Savins -ccount :
Th i s i s a depos i t o ry a ccoun t "a s i ca l l y des i gned f o r sma l l 5 s ca l e
sa!e r s . Th i s i s an i n t e res t "ea r i ng a ccoun t and t he f ea tu res o f
th i s account a re as f o l l ows:
'pening "alance T*
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o restrictions on num"er of Transactions
o yearly ledger fee
on interest "earing
ree ATM card and phone "an*ing ser!ice
%an "e opened only "y:
o 4ndi!iduals $7oint or single+
o >roprietorship companies
o >artnership companies
o =imited %ompanies
o =iason offices
o 6'/s
)ocumentation needed: !arious *inds of documents are needed for the
companies such as memorandum of association, "oard resolution, etc.
howe!er the requirements for indi!iduals are same as the sa!ings account.
%!"9!"!% SH O 0 T T 1 0 7 ) 1 6 O S & T 8ST);:
These accounts are opened mostly "y the organizations. 'rganizations normally
maintain current accounts in the "an*s. They need to transact "ul* amount
regularly that/s why, current account fits with their requirements. As current
accounts do not pro!ide any interests and as the organizations cannot ha!e
sa!ings account, they are depri!ed of earning any interest despite ha!ing huge
deposit in their accounts. O&hort5term deposit/ accounts ena"le them to earn
interests from their accounts. These *inds of accounts share some properties of
"oth current and sa!ings accounts. The account pro!ides interests which are li*e
the sa!ings accounts and the holder can withdraw any amount any time from his
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account which is a property of the current account. 4ndi!iduals especially,
"usinessmen maintain such accounts.
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%!"9!"!( /&1))16OS&T:
4t is also *nown as term deposits. These deposits are made in the "an* for a fi8ed
period of time. This period of time should "e specified in ad!ance. The "an*
needs not maintain cash reser!es against these deposits ; therefore, it offers
interest rates that are higher than the sa!ings accounts.
%!"9!"!' 0esidents /orein Currency Current accounts:
B) nationals residing a"road open this account. oreign nationals residing a"road
or in Bangladesh, oreign firms registered a"road, Bangladeshis wor*ing in
multinationals at Bangladesh and recei!ing salary in % can also open such
account. The account is non5interest "earing and there are !arious *inds of
restrictions for withdrawals and deposits. The account can "e maintained in -uro
$-9+, >ound &terling $6B>+ and & )ollar $&)+.
%!"9!"!# 4onresident forein currency accounts:
These are time deposit interest "earing accounts. They can "e opened "y all non5
resident Bangladeshi nationals, persons ha!ing dual citizenship, shipping staffs,
etc. they can "e maintained in -9, 6B> ; &) currencies. These accounts are
strictly monitored "y the central "an* and restrictions e8ist for these accounts.
%!"9!"!* 0esident forein currency deposit accounts
Balances in these accounts are freely transfera"le a"road without any restriction
from Bangladesh "an*. 9esident Bangladeshis returning from a"road can open
this account within one month of hisher return.
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%!"9!"! Convertible Ta
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Services offered to these accounts:
?ide ranges of ser!ices are offered to the customers who hold these accounts.
&ome such ser!ices are:
ree ATM %ard, chec* "oo* ; phone "an*ing ser!ice
%hequescash deposits
&tanding instruction
Luarterlymonthly statement of account
oreign currency -ndorsement against tra!el quota and sale of Tra!elers
cheques $Thomas %oo*+.
4ssue of &ol!encyBan* certificate
>ayment orders, demand drafts, Telegraphic transfers.
4nward and outward funds transfer and recei!ing.
&ome unique ser!ices are also pro!ided to customers using (&B% accounts.
These ser!ices are >hone Ban*ing, &elf &er!ice Ban*ing ; >ower !antage
&cheme.
%!"9!$ 6ersonal Ban
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%!"9!$!" 6ersonal &nstallment oan 86&;:
This loan is *nown as the any5purpose consumer loan of (&B%. This loan
is currently the "est product of (&B% Bangladesh and is gi!en to (&B%
customers. The customers can a!ail this loan for any of his personal needs
such as, tra!eling, purchase of household goods, computer purchase, etc.
4n!oices or quotations are not required for these loans, as the "an* will
dis"urse the credit amount directly to customers account.
o >ersonal guarantee or cash security is required to support the loan.
-!en no down payment is required to dis"urse this loan.
The main feature of the >4= is simplicity. This means "y completing !ery
simple and easy documents the customers can apply for the loan.
=ow and !ery competiti!e interest rates are offered for this loan with !ery
low processing fee and stamp charges. The interest rate is on
reducing "alance and 1 for salary account customers.
Anyone who is at least 2< years old, employed in a well5esta"lished
company for 2 years with a minimum monthly income of T
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=oan repayments are made in form of equal monthly installments $-M4+.
The customers ha!e the fle8i"ility of choosing the repayment period $2,
2E or 3C months+. The monthly installment is automatically de"ited from
the customers personal account held with (&B%.
>ro!isions for partial repayments and early settlement of the loan are also
present "ut the customer has to pay the respecti!e fees of settlement.
=oans are appro!ed at the sole discretion of (&B% credit authority and
re7ections are unquestiona"le.
%!"9!$!$ C-0 O-4
%ar loan is pro!ided to (&B% customers to purchase personal cars. This
loan is the second "est product of (&B% that finances the cost of the car
for its customers.
The scheme co!ers loans ranging from T00,000 to T*
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The interest rate on the loan is
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or >ersonal secured credit $short term+ the interest is calculated on the
daily outstanding loan amount and for personal secured loan $long term+
the rate is calculates annually.
acilities are repaid when either time deposits are withdrawn or go!t.
"onds mature.
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3.25 HSBC Gop , HSBC B0/70;e$#
The parent company of (&B% Bangladesh is The (&B% 6roup represented "y
(&B% Asia >acific, headquartered at (ong ong. They are the ma7or
shareholders of (&B% Bangladesh. The operations in Bangladesh are under the
super!ision of (&B% Asia >acific 9egion and are managed, regulated, monitored
and controlled "y them.
The management of (&B% Bangladesh is trained "y (&B% 6roup. All the fi!e top5
le!el managers of (&B% Bangladesh are international managers and ha!e the
corporate sense of Management. These top5le!el managers are appointed "y the
(&B% group "oth glo"ally and locally. 4n case of unusual circumstances, the
(&B% 6roup recruits or appoints managers from around the world to manage
specific tas*s or acti!ities.
A group of -8ternal Auditors appointed "y (&B% Asia >acific annually !isits the
(&B% Bangladesh offices in order to assess their effecti!eness, management,
operational efficiency, discipline, rules and regulation. The audit group then
prepares an e8tensi!e report on (&B% Bangladesh and as well as a performance
report of The %-'. This report is then presented to the (&B% Asia >acific
(eadquarters for e!aluation and decision ma*ing purposes
As (&B% Bangladesh is a su"sidiary of (&B% Asia >acific 6roup any new proposal
or target generated from Business Annual Target is passed to the 6roup. The top
management of Bangladesh supplies all the information regarding the new pro7ect
and product. Then the financial analysts at (ong ong office analyzes the
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profita"ility and consequences of the pro7ect and after all the assessments, the
decision is underta*en. The strategies and results are then forwarded to (&B%
Bangladesh for e8ecution and implementation.
The oreign %orrespondence $%+ di!ision at the inancial %ontrol )epartment of
(&B% Bangladesh solely deals with and is responsi"le for su"mitting regular
reports of operation to The (&B% Asia pacific group. These department also
prepares financial statements on all the financial acti!ities of (&B% Bangladesh
and presents them to the %-' for appro!al. After The %-'/s appro!al, the report
is sent to the corporate headquarter $(+ for further e!aluation and consolidation
of the reports into the group annual report.
&o, the parent company and the local company follow a two5way communication
channel. (&B% Bangladesh or any other su"sidiaries are not allowed to ta*e any
ma7or decisions without prior consent of the region headquarters.
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3.21 M0/07e@e/" 0" HSBC B0/70;e$#
(&B%, Bangladesh is one such company that had to o!er come a lot of hurdles to
reach the position it now holds. At present, Mr. )a!id F 6riffiths is the %-'J Mr.
?. Adnan ?ahed is the %hief 'perating 'fficer, Mr. Mamoon M &hah is the %hief
of >ersonal Ban*ing, Mr. &yed A ( ddin is the (uman 9esource Manager and Mr.
Munir (ussain is the Manager, Mar*eting at (&B% Bangladesh.
These fi!e men at the top carried out their management roles e8hausti!ely. They
equally contri"uted to (&B%/s superior leadership, "y carrying out their unique
roles. They wor*ed well together, respecting each other/s a"ilities, ; arguing
openly ; without any rancor when they disagreed.
To maintain a close touch with the organization each man wor*s in separate area
of (&B%/s comple8. Their offices are indistinguisha"le from all other cu"icles
where (&B%/s 7unior e8ecuti!es ; secretaries wor* in. There are no office walls in
(&B% and all the staff starting from the %-' to the lower operating le!el
employee share the same premises under one roof. There are no &pecialized
ca"ins for top management and e8ecuti!es and also no e8ecuti!e dining rooms.
This has created a management team that is unified, cohesi!e ; energetic.
-ach and e!ery employee of (&B% ta*es pride of "eing an employee at (&B% and
his or her pride comes from the freedom of direct communication with the top
management. The management of (&B% is supporti!e in the sense that the top
management deli"erately supports the suggestions, !alues, ideas, inno!ation and
hard wor* of the employees and officer. Again high amount of employee
participation is encountered in the management process. There are also systems
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for awards, incenti!es, and status for inno!ati!e ideas and hard wor*s. Again the
management style can also "e termed as %ollegial as high amounts of team wor*
and participation e8ists "etween the top and "ottom parts of (&B%. Thus
according to my perspecti!e of management style at (&B% Bangladesh falls
somewhere "etween supporti!e and collegial. A graphical presentation is shown
"elow:
74
A#TOCRAT$C
%ower
Authorit&
O'edience
Dependence on
Boss
Su'sistence
(inimum
C#STOD$A)
*conomic Resources
(one&
Securit& and 'enefits
Dependence on
organi+ation
Securit&
%assie cooperationS#%%ORT$-*
)eadershipSupport
.o' performance
%articipation
Status and
recognition
Awa/ened dries
CO))*0$A)
%articipationTeamwor/
Responsi'le
Behaior
Self 1discipline
Self actuali+ation
(oderate
enthusiasmHSBC
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3.22 HSBC C"e
An organization needs to grow itself em"racing some distinct customs ; the more
it grows these norms "ecome a part of their e8istence, which is e!entually
referred as its culture. This culture can "e well defined "y the people of the
organization rather than the people outside the organization. @et in the case of
(&B% "ecause of its strong presence, e!en o"ser!ers feel the uniqueness of
O(&B% culture/, which can also "e referred as its philosophy. To authenticate this
culture "eing the nurturer of the organization su"sequent characteristics will "e
discussed.
T(- (&B% eeling:T(- (&B% eeling:
All the employees of (&B% ha!e a strong sense of "elongingness towards (&B%.
The (&B% he8agon "rand is also the logo of the (&B% dress code $Tie+. ?ith the
"rand stic* to them, employees feel the (&B% feeling within them, which nurtures
growth and hardwor*ing tendency within their minds.
9e!olutionary culture9e!olutionary culture
(&B% *nows that the organization needs to adapt to a culture consistent with
their operation. The top management of (&B% puts a lot of emphasis on this.
Along with the operation of the organization they also concentrate on the
practiced ; shared norms, !alues ; customs of (&B%, which e!entually has gi!en
"irth to P(&B% cultureQ, a culture incorporated with the re!olutionary operation of
the organization.
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%ompetiti!e culture%ompetiti!e culture
The culture of (&B% is considered so important for the organization that it is
"elie!ed throughout the company as well as "y the people out side (&B%, to "e
an implement, which pro!ide them with competiti!e edge o!er its other
competitors.
)isciplined culture)isciplined culture
Time, the *eynote for discipline is largely emphasized at (&B% ; also "ecause a
culture that is so well coordinated ; has "een portrayed as the canon can not "e
referred as nothing "ut a sense of discipline.
Aware cultureAware culture
4n today/s e!er5changing en!ironment any organization needs to "e "alanced
rather than e8tremist in their practiced norms. 4n case of (&B%, the culture of the
organization has succeeded to find the "alance with the odd mi8ture of discipline
; fle8i"ility in their culture, which only disposition them to "e aware of their
surroundings.
indred cultureindred culture
4n the natural course of professional action, employees are only interested in
what "enefits them. @et in the case of (&B% employees agree to wor* e8tra
hours a day G without e8tra pay G to pro!ide "etter customer ser!ice ; to "rea*
production "ottlenec*s as necessary.
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>roud culture>roud culture
-mployees of (&B% feel proud to "e a part of the (&B% %orporation. Because of
the way things are carried out through out the organization only the "est will
sustain in (&B%. That is why an employee admitted:
P4t/s great to say you wor* at (&B%. @ou *now you/re the "estR @ou *now
you/re really a part of something e8traordinary ; !ery important.Q
Appellati!e cultureAppellati!e culture
The culture of (&B% is such that it has gotten the e8clusi!e identification of (&B%
culture. Fust "ecause of its strong "elief ; !ast practice (&B% culture has "ecome
deep rooted ; to a great e8tent the synonymous for its e8istence. rom the
strategic decisions of the top management to the defined process of carrying out
the operation of the operati!e employees resem"les this culture.
%harismatic culture%harismatic culture
(&B% culture is such, which will attract any"ody to "e a part of the culture. ?ith
its strong presence in the corporation this culture charms the outsiders. As the
culture of the organization is primarily defined "y the top management of (&B% ;
later supported "y the entire organization, the charisma of top people is what
ma*es (&B% a winning team.
Taught cultureTaught culture
The nature of (&B% culture is such that a course is ta*en on it right after the
employees ha!e arri!ed in the organization. The emphasis put on this is to
profuse that one of the mem"ers of (&B%/s top management group ta*es this
course.
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Admissi"le ; enthusiastic cultureAdmissi"le ; enthusiastic culture
6roup of employee says, Pit/s e8citing to *now you may see ; tal* to the !ery top
guy at any time. @ou feel a part of thingsQ.
)irecti!e culture)irecti!e culture
The atmosphere in (&B%, "ecause of the e8treme commitment of the top
management has always "een guided properly. -!entually which created a
culture where the direction of achie!ing their goals is clear ; unde!iating. or
instance, T(- %-'/s ad!ice to the employees cannot "e more directi!e than this:
P@ou ha!e to mo!e fast, to "e first. But you/re in a realm where no one
has done "efore what you/re trying to do. @ou ha!e to measure a"solutely
e!erything, so when something goes wrong, you ha!e some idea of what
went wrong.Q
>roducti!e culture>roducti!e culture
As the culture of any organization usually flow from the top management of the
organization, (&B% definitely is not an e8ception of the fact. &ince the top team
of (&B% consists of hard wor*ing, producti!e e8ecuti!es, the same is e8pected
from the organization.
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3.23 To"0 0%"! M0/07e@e/"
AT HSBC
TLM is the tas* and responsi"ility of e!ery single employee of (&B%. TLM at
(&B% means:
TLM is first of all a system of !alues of thin*ing and acting in quality, in which
e!ery employee has to "e integrated and which has to "e li!ed "y e!ery"ody
in daily "usiness.
OTotalEmeans to align all structure and processes with the customers and
their needs.
2ualitystands as synonym for competiti!eness, it is well the yardstic* for all
quality standards set.
J 7anaementE means a target oriented deployment and implementation of
these requirements through leaders who act and ser!e as role model to their
employees and moti!ate the people.
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The ine criteria that form the "asis for TLM and direct deployment ;
implementation of policies ; strategies At (&B% are as shown in the following
diagram:
9egular Assessment of Luality is conducted at e!ery stages at (&B%:
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%!$%!" &nstructions F Strateies /or T27:
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3.24 Se6%ce M0e"%/7 S"0"e7! o>-)4S+, which had a positi!e gap score of 0.2C. The
dimension that had highest gap was the empathy dimension with a negati!e gap
score of G0.. The gap scores of assurance was G0.22, which depicted the
perceptions fall slightly short of e8pectations. Again relia"ility, responsi!eness
were other dissatisfied dimension with negati!e gap scores of G0.C1 ; 50.1
respecti!ely. The location and products dimensions showed slight moderate gaps
and the scores were G0.3 ; 50.3 respecti!ely. The gap scores of the !arious
dimensions are shown graphically "elow:
126
>7.88
>8.38
>8.28
>8.18
>8.48
8.88
8.48
8.18
GapScores
Reliabilit y Responsivenes Assurance Empat hy Tangibles Locat ions Pr oduct s
Dimensions
Gap Analysis
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'!#!$!$ Service compared to Other ban
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'!#!$!% Complaint 0esolution:
The respondents were as*ed to state that weather they had placed any
complaints to (&B% during their ser!ice life cycle $L32+. Around EC
respondents stated that they had pro"lems with (&B% and had complained where
as
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'!#!$!( Overall Satisfaction Aith HSBC:
Apart from all the indi!idual ratings of !arious attri"utes, features and aspects
the respondents were as*ed to rate their o!erall satisfaction with (&B% $L3+ on
a
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.( IMP'ICATION OF RESU'TS
'!*!" )rivers of Satisfaction:
4f "an*s are to impro!e their satisfaction and loyalty ratings and differentiate
themsel!es from the competition, they need to understand what really dri!es
satisfaction and loyalty. They also need to *now which areas ha!e the greatest
room for impro!ements. There is little point in inter!ening resources in areas that
are important "ut are performing well, or in areas which there is much room for
impro!ement "ut they are not important in dri!ing satisfaction and loyalty. Thus
(&B% managers need to *now what le!ers to push to increase these measures of
success.
'ne useful tool is to search for the most important attri"utes which allows to
analyze those areas that are important and ha!e much room for impro!ements.
4n the following section the most important attri"utes will "e discussed.
'!*!$ 7ost important attributes of the Service:
The analysis of the importance scores across !arious attri"utes of ser!ice quality
dimension pointed out some attri"utes that were highly important to
customers$A>>-)4S+. These attri"utes are listed "elow according to importance:
&peed of ser!ice $LE+
=ocation of the "ranches $L+
=ocation of the ATM/s $L20+
riendliness ; courtesy of the employees $L+
>romptness of error correction $L3+
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eeping >romises $L+
9ates on =oans $L2+
&a!ings ser!ices $L2E+
9ecognition of needs $L+
ees ; ser!ice charges $L23+
These attri"utes were considered as the dri!ers of satisfaction for the customers.
&atisfaction across these attri"utes influenced the o!erall satisfaction towards the
"an*s ser!ices. &ome other attri"utes, which were important to customers "ut
not considered as dri!ers of satisfaction are listed "elow:
4ndi!idual attention $L0+
=oan or credit ser!ices $L2C+
&afety of transactions with (&B% $L+
9elia"ility and accuracy of the statements $L+
%larity of the statements $LC+
>ro"lem sol!ing interest within employees $L2+
>rofessionalism of the employees $L1+
The rest of the attri"utes administered during the sur!ey were found to
moderately important or less important for the customers and were not
considered "y them while deciding on satisfaction scores.
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'!*!% Satisfaction towards the most important attributes:
As mentioned earlier, the ma7or concern of managers is to find out satisfaction of
the customers across the !arious dri!ers of satisfaction $A>>-)4S+. The results
of the sur!ey showed that customers were satisfied only across the following
dri!ers of satisfaction:
riendliness ; courtesy of the employees $L+
ees and ser!ice charges $L23+
&a!ing and deposit ser!ices $L2E+
>romptness error correction $L3+
Thus the a"o!e attri"utes were only !ery few compared to the list of highly
important attri"utes. Again the customers also ran*ed some of the highly
important factors as highly dissatisfactory. These attri"utes thus damaged the
o!erall satisfaction scores drastically. &ome such attri"utes are as follows:
9ecognition of needs "y (&B% $L+
=ocation of Branches $L+
Most of the other dri!ers of satisfaction that were !ery important to customers
showed a!erage satisfaction scores. This depicts that most of the customers are
not !ery satisfied with the attri"utes and are somewhat indifferent with the
attri"utes. This "rought down the o!erall satisfaction scores to the neutral or
a!erage points.
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'!*!( 7ost satisfied aspects of HSBC services:
The respondents showed high satisfaction scores towards some of the attri"utes
of the ser!ice dimensions. Though most of these were not !ery important to
customers they do represent the good side of the ser!ices pro!ided "y (&B%.
&ome such satisfied attri"utes are listed "elow starting from the most satisfied
ones:
eatness of -mployees $LE+
-quipments ; Technology $L1+
riendliness and courtesy of employees $L+
Tele Ban*ing ser!ices $L21+
&afety with (&B% $L+
%leanliness of the premises $L2+
Kisually appealing facilities $L3+
9elia"ility and accuracy of statements $L+
ees and ser!ice charges $L23+
%ash and remittance ser!ices $L2+
&ufficiency of par*ing spaces $L22+
&a!ings ser!ices $L2E+
>romptness of error correction $L3+
&o these were the attri"utes that resem"le strengths of ser!ices pro!ided "y
(&B% ser!ices which were ran*ed as satisfactory "y the respondents.
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'!*!' 7ost dissatisfied aspects of HSBC services:
The respondent while e8pressing their satisfaction !iews toward !arious attri"utes
ran*ed some of the aspects of the ser!ice quality poorly $A>>-)4S+. The poor
scores depict that customer were dissatisfied with these attri"utes of ser!ice.
These dissatisfactory features are the starting points of the attempts for
impro!ing the o!erall customer satisfaction. &uch dissatisfied must "e ta*en care
as early as possi"le. &ome such poorly ran*ed dissatisfied attri"utes are as
follows:
>rofessionalism of the employees $L1+
?illingness to help $L
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'!*!# -SS1SS714T O/ TH1 S10D&C1 23-&T5 )&714S&O4
This research on customer satisfaction of (&B% was designed across the some
dimensions of ser!ice quality. &uch dimensions were responsi"le for influencing
the o!erall ser!ice quality and customer satisfaction of (&B%. 9elia"ility,
9esponsi!eness, Assurance, %are ; empathy, Tangi"les, =ocation ; eatures of
>roducts ; ser!ices were the se!en dimensions used in this sur!ey to assess the
o!erall customer satisfaction. Karious attri"utes of (&B% ser!ices were grouped
within these se!en category and the respondents were as*ed to e8press their
!iews.
The results showed that the most important dimension of ser!ice quality was
relia"ility of the ser!iceG which is a"ility to perform the promised ser!ice
dependa"ly and accurately $A>>-)4S+. (&B% customers e8pressed a!erage
satisfaction along this dimension of ser!ice quality, which implies that (&B%
needs to impro!e more along this direction of ser!ices.
The second most important dimension pointed out was the Assurance dimension
of ser!ice quality G which consists employees *nowledge, courtesy and a"ility to
inspire trust and confidence. The results showed that customers were satisfied
with this dimension of (&B% ser!ices. riendliness of employees and safety with
(&B% are some of the most satisfied attri"utes of this dimension. This indicates
that (&B% should "uild on this dimension of ser!ice quality.
The con!eniency of the =ocations were another of the important dimension
mentioned "y the customers. But the satisfaction with this dimension falls short
of e8pectation and most of the customers are on the a"o!e a!erage side. Thus to
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impro!e customer satisfaction (&B% should impro!e it/s location facilities
according to customer needs and wants. Most of the dissatisfaction came due to
the incon!eniency of the "ranches.
The most satisfied dimension of (&B% came out to "e the tangi"les G which
includes appearance of facilities, equipment, personnel, etc. The importance gi!en
to this attri"ute was a!erage. This implies that (&B% has the "est premises,
equipment and facilities that should "e promoted more aptly to customers.
The most dissatisfied dimension found out in the sur!ey was %are ; -mpathy G
which is %aring ; gi!ing indi!idual attention to customers. This dimension was
moderately important to customers "ut the significance of dissatisfaction along
this attri"ute was se!ere. To impro!e the o!erall satisfaction (&B% should
impro!e its ser!ice concepts and en!isage care ; empathy into the o!erall
customer ser!ices.
=astly, the products ; ser!ices dimension, which included features of the
products, was somewhat important to customers in deciding ser!ice
effecti!eness. A!erage satisfaction was o"ser!ed in this category. 4n!estment
ser!ices ; rates on &a!ings were the two most dissatisfied aspects of this
dimension. To score high on satisfaction, (&B% should consider these two
features and redesign them according to customer needs. ees and ser!ice
charges, sa!ings ser!ices, cash ; remittance ; >hone"an*ing were some of the
most satisfied aspects of this dimension and represent the strengths of (&B%.
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'!*!* Complaint 0esolution F Satisfaction:
The sur!ey found that an important reason of dissatisfaction was dissatisfaction
with the way a customer complaint had "een handled. 'nly 22 respondents
were satisfied with the outcome of a complaint they made. This lac* of
satisfaction influenced 1 of those who had made complaints to hold negati!e
remar*s a"out the o!erall satisfaction of the "an*. The num"er and sort of
complaints were not recorded. %learly, (&B% needs to do "etter in this area.
'!*! 7ajor Competitors of HSBC:
The sur!ey pointed out some of the ma7or competitors of (&B% according to the
customer perceptions $A>>-)4S+. This aspect is !ery important to (&B%
management, as customers are the ultimate person who decided among "an*s.
The offerings and ser!ices of the ma7or competitors can "e analyzed to "etter
understand the customer needs and wants. The sur!ey uniformly e8plored that
&tandard %hartered was the closest competitor of (&B% and also pointed out that
it had a "etter place or ran* in the minds of customers. This is an o"!ious fact
gi!en the size and !olume of &%B/s "usinesses. There are many names that
compete for the second "est competitor of (&B%. But among those >rime Ban*
was found to "e the ne8t "est competitor of (&B% in the minds of customers.