Scb Project Paper

8/9/2019 Scb Project Paper

1/41

PART-I


2/41

1.0 Introduction

1.1 Origin of the Report

This project is a requirement of BBA Program and includes

experiences during preparing this project. This report is about the

Credit Card er!ices of tandard Chartered Ban" in Bangladesh.

#ere the project contains di$erent s%stem& program& process& features

and bene'ts of Credit Card.

tandard Chartered Ban" is a multinational ban" and started its

business in Bangladesh in ()*+ ,ith a branch in Chittagong. Toda% it

has (+ branches and AT/s in di$erent important places of this

countr%. tandard Chartered Ban" is the pioneer issuer of Credit Card

in Bangladesh and it is also pioneer acquirer of Credit Card in

Bangladesh. It acquires credit card since ()++ and started issuing

credit cards from the %ear ())0. Toda% it has in total approximatel%

(11&111 credit cards in the mar"et ,ith approximatel% *111

merchants.

1.2 Objectives

The main objecti!es of this project to stud% the customer ser!ices

pro!ided b% the Credit Card er!ices of tandard Chartered Ban" in

this countr%. Along ,ith this the objecti!es of this stud% ,ere as

follo,s2

i3 To stud% the product - Credit Card

ii3 To stud% about the Credit Card customer ser!ice

iii3 To re!eal the limitations of the current Credit Card

i!3 To suggest possible ,a%s to o!ercome the limitations.

Page 2 of 41


3/41


4/41

(.(. 7imitations7imitations

7ac" of comprehension of the respondents ,as the major

problem that created man% confusions regarding !eri'cation of

conceptual question.

imitation of time ,as one of the most important factors that

shortened the present stud%. 5ue to time limitation man% aspect

could not b% discussed in the present stud%.

!on'dentialit% of data ,as another important barrier that ,as

confronted during the conduct of this stud%. 8!er% organi9ation

has their o,n secrec% that is not re!ealed to others. :hile

collecting data on tandard Chartered Ban"& personnel did not

disclose enough information for the sa"e of con'dentialit% of the

organi9ation.

R ush hours and business ,as another reason that acts as an

obstacle ,hile gathering data.

"he 'nding of the sur!e% is based on emplo%ee;s response in

di$erent tandard Chartered branches located in 5ha"a Cit%

onl%. The results ma% not re


5/41

:hich card is popular in Bangladesh& its interest rate and the social

impact of Credit Card. 4ifth part is conclusion and recommendation.

Page 5 of 41


6/41

PART-II

Page 6 of 41


7/41

2.0 S"#$%#R% !R"'R'% (#$)

tandard Chartered Ban" >CB3 is an international ban"& ,hichprimaril% focuses its acti!ities in Asia& Africa& and /iddle 8ast. This

ban" pla%s an in!igorating role in lin"ing the ,orld;s de!eloped

economies ,ith emerging mar"ets and pro!ides personal ban"ing&

corporate ba"ing& institutional ban"ing consumer 'nance and

custodial ser!ices. The act of the ban" is to pro!ide the most e$icient&

consistent and timel% ser!ices and to be the ban" of choice in its

principal territories.

CB is a multinational ban" and 'nancial ser!ices group that is

incorporated in the ?.@. ,ith a unique international net,or". It no,

spans in the de!eloped and emerging economies of the ,orld& after

been built o!er (1 %ears.

The group operates through more than =11 o$ices in o!er *+

countries and has o!er &111 people managing assets of o!er *0

billion pounds. In asset si9e the group ,as ran"ed )*th in the ,orld in

())0. The group has its long past histor% sho,ing its huge gro,th

,orld,ide.

2.1 St*nd*rd !h*rtered in (*ngl*desh

The Chartered Ban" opened its operation in Chittagong in ()*0 that

,as& at that time the eastern region of the ne,l% created Pa"istan.

The branch opened mainl% to facilitate the post ,ar re-establishment

and expansion in outh 8ast Asia. The ban" opened its 'rst branch in

5ha"a in ()== and shifted it;s headquarter from Chittagong to 5ha"a

after the birth of the Republic of Bangladesh in ()0( the ban"

increasingl% in!ested in people& technolog% and premises as its

business gre, in relation to the countr%;s thri!ing econom%. 8xtensi!e

Page 7 of 41


8/41

"no,ledge of the mar"et and essential expertise in ,ide 'nancial

ser!ices underline CB;s strength to build business opportunities and

institutional clients at home and abroad. Continuous upgrading of

technolog% and control s%stem has enabled the ban" to o$er ne,

ser!ices& ,hich include unique AT/ and Phone Ban"ing on a *-hour

basis.

PART-III

Page 8 of 41


9/41

3.0 !redit !*rd3.0 !redit !*rd

3.1 +h*t is * !redit !*rd ,3.1 +h*t is * !redit !*rd ,

A plastic card issued b% a ban"& li"e tandard Chartered Ban" or b%

other 'nancial institutions. It is also "no,n as plastic mone%. The

credit cards are personali9ed to the user bear the user name&

photograph and signature and are magneti9ed ,ith unique cardnumber.

Credit card allo,s cardholder mainl% to bu% goods and ser!ices for

the retailers or shops ta"e cash ad!ances from AT/s or branches pa%

their utilit% bills.

6n purchasing goods and ser!ices for the selected shops& called

merchants& retailers are paid directl% b% the ban"& less a ser!ice

charge.

Card holder recei!es monthl% statements from the credit card unit of Card holder recei!es monthl% statements from the credit card unit of

the ban"& ,hich ma% be paid in full ,ithin a certain number of da%sthe ban"& ,hich ma% be paid in full ,ithin a certain number of da%s

,ith no interest charged. Card holders ma% ma"e a speci'ed,ith no interest charged. Card holders ma% ma"e a speci'ed

Page 9 of 41


10/41

minimum pa%ment >t%picall% of the outstanding3 and pa% interestminimum pa%ment >t%picall% of the outstanding3 and pa% interest

on the outstanding balances.on the outstanding balances.

Credit Card allo,s customers to enjo% re!ol!ing credit as repaidCredit Card allo,s customers to enjo% re!ol!ing credit as repaid

amounts can be redra,n up to the allocated limit of the credit card.amounts can be redra,n up to the allocated limit of the credit card.

In modern time in most of the countries Credit Cards are !ie,ed as aIn modern time in most of the countries Credit Cards are !ie,ed as a

prime pa%ment instrument& a safer substitute for cash.prime pa%ment instrument& a safer substitute for cash.

3.2 &istoric*l (*c-ground

In toda%s econom%& the pa%ment s%stem has come a long ,a% since

the da%s of barter. The concept of cards or plastic mone% ,as 'rst

introduced b% :estern ?nion in the ?nited tates in ()(*. The s%stem

,as !er% ,ell appreciated b% e!er%one and began to spread out in

other contexts also. In ()*& eneral Petroleum Corporation of

California introduced their o,n fuel card to be used at their oil

stations all o!er the countr%. This ga!e their customers the pri!ilege of

bu%ing gas from all the general petroleum outlets ,ith this card

instead of using cash mone%.

The popularit% of card encouraged the ban"s to introduce this product

to their customers. Ban" credit card ,as 'rst introduced in the ?Ain () b% the 4ran"lin Dational Ban". But the rising cur!e of the

credit card popularit% started in the later half of the =1s. ()1s

,itnessed introduction of tra!el E entertainment cards such as 5iners

club& American 8xpress and Carte Blanche. The incident that

triggered the constitution of the 5iners Club is quite fascinating. The

founder of 5iner Club Robert /cnmara once experienced

entertaining guests at a De, For" restaurant. This incident ga!e birth

to the idea of charge cards.

Barcla%s Ban" of the ?@ introduced Barcla%card in ()==. This ,as

follo,ed b% Access Credit Card launched jointl% b% 7lo%ds Ban"&

/idland Ban"& Dational :estminster& :illiams E l%ns and the ro%al

ban" of cotland.

Page 10 of 41


11/41

Tra!el and entertainment cards are used as a method of pa%ment onl%

and not considered as credit cards. In ()+& American 8xpress

introduced their corporate cards ,hich has toda% become the most

,idel% used charge card in the ,orld. Consequentl% in ()== /aster

charge E Ban" Amricard >,hich later came to be "no,n as

/asterCard3 and in ()00 GIA ,ere born. Both /asterCard

international and GIA international are scheme operators ,ho

operate all around the ,orld through a ,ide range of established

ban"s li"e Citiban"& #ong @ong hanghai Ban" and ADH rindla%s

Ban"& tandard Chartered Ban" etc.

3.3 "ypes of !*rd

The basic underl%ing h%pothesis of plastic cards is that a cardholder

can use that card as a medium of pa%ment at di$erent points of sales

>P63 in the place of cash currenc%& in a standard situation& e!er%

transaction through cards in!ol!es three parties. The% are

>(3 Cardholder

>3 The card issuing ban"

>3 The merchant. #ere the card issuing ban" acts as an intermediar% bet,een the card

holder and the merchant.

There are se!eral cards being used around the ,orld. The main

Categories ha!e been discussed in the proceeding sectionJ

3.3.1 !redit c*rd

Credit card as a substitute for cash or cheque and ser!ices is

becoming increasingl% popular ,ith public since its introduction in the

mar"et. lobal acceptabilit% is the sign for the success of credit card.

It pro!ides t,o aspects of ban"ing function togetherJ the transmission

of pa%ment and granting of credit. The s%stem is mutuall% attracti!e

Page 11 of 41


12/41

to parties in!ol!ed in credit card operation-card holder& merchant and

ban".

A credit card has a limit on the amount the cardholder can spend on

it2 but at the same time it has the ad!antage of re!ol!ing credit. B%

de'nition& KA Credit Card is a card ,hich allo,s the cardholder to pa%

for goods and ser!ices or dra, cash& up to a predetermined card

spending limit and enables him to pa% o$ the outstanding balance

o!er from one statement to another. This charge co!ers the ban"s

expenses of carr%ing unclear debit balances in the cardholders

accountL.

3.3.2 is* *nd M*ster!*rd !redit c*rds

Gisa and /asterCard are t,o scheme operators ,ho operate all o!er

the ,orld through established ban"s li"e #BC& tandard Chartered

Ban"& Citiban" etc. A ,orld ,ide "no,n brand li"e GIA or /aster

Card is a !er% good example of strategic branding of ser!ices. ?se of a

single brand all o!er the ,orld helps the users or cardholders b%

allo,ing them to deri!e maximum utilit% from their cards.

As a scheme operator GIAM /asterCard ,or"s as a lin"age bet,een the

card issuing ban" and the card ser!icing ban" here the card ser!icing ban"

is a member of the scheme operators curtail and it pro!ides di$erent

establishments in its localit%.

3.3.3 !h*rge c*rds

Charge card is a card ,hich allo,s the card holder to purchase goods

or ser!ices in a st%le similar to credit cards but ,ithout the pro!ision

of deferred pa%ments. The outstanding balance o,ing at the end of

each billing c%cle must be cleared in full b% pa%ment ,ithin due date

,hich is usuall% is da%s from statement date. Charge cards do not

ha!e spending or credit limits but the issuer normall% establishes a

Page 12 of 41


13/41

spending pattern based on the cardholders usage !olumes and

in!estigations abnormall% excessi!e of large transactions. 8xamples of

charge cards include American 8xpress& 5iners club E NCB cards.

3.3.4 %ebit !*rd

A debit card is issued b% a ban" to its account holders against a

minimum le!el of deposit in their account. Then after regular inter!als

>usuall% 1 da%s3 the transaction amount is debited from the

customers account along ,ith the ser!ice charge.

3.4 "he !redit !*rd "r*ns*ction /rocess

:hen a transaction through credit card is initiated& it in!ol!es four parties

and the% areJ

Credit card holder Card issuer Ban"

Acquirer Ban"

/erchant

Page 13 of 41


14/41

igure 1 "r*ns*ction /rocess of !redit !*rd

The merchant is a business establishment ,hich has the facilities to

accept credit card as a form of pa%ment for goods and ser!ices. To

ha!e this facilit% the merchant needs to formali9e an agreement ,ith

a ban" ,hich is called the acquirer ban". 4or scheme operators li"e

GIA or /asterCard& ,ho operate ,orld ,ide through a number of

member ban"s the acquirer ban" and the card issuer ban" are usuall%

t,o di$erent ones.

A credit card transaction is accepted b% a participating merchant on

the basis of either recei!ing a !oice or electronic authori9ation or if the transaction is under a certain !alue >


15/41

This authori9ation also protects the merchant from accepting lost or

stolen card being presented b% an% person other than the cardholders.

In technicall% ad!anced countries& this authori9ation is done

electronicall% ,ith the help of electronic de!ices.

After this transaction bet,een the cardholder and the merchant has

ta"en place& the merchant obtains compensation from the acquirer

ban" amount less a certain ser!ice charge and claims compensation

from the card issuer ban" through the scheme operator.

The issuing of a credit card in!ol!es the creation of a credit

relationship bet,een the issuer and the cardholder. The issuer ,ill

perform a series of in!estigations to establish the reliabilit% of the

customer before pro!iding a credit limit and a card. The cardholder

,ill recei!e a statement of

transactions from the issuer on a regular basis& ,hich ma% include

cash ad!ances& sales and

interest charges and request a minimum pa%ment of the balance

outstanding. A similar process is follo,ed ,hen an acquirer ban" selects an

establishment for becoming a merchant. The establishments past

business records& 'nancial performance& and ban";s recommendation

along& ,ith man% more details are scrutini9ed before choosing it as a

merchant and pro!iding it ,ith the necessar% logistic and bac"up

support to accept cards.

3. -ey benets of St*nd*rd !h*rtered !redit c*rds

Page 15 of 41


16/41

+ide #ccept*nce

tandard Chartered Ban" issues both GIA and /asterCard Credit

Cards& the t,o ,idel% accepted cards. o& the customers can bu%

an%thing from clothes to meals in exclusi!e restaurants to airline

tic"ets to hospital bills. An% outlet that accepts Gisa or /asterCard

,ill entertain our cardholders.

The% ha!e >CB3 at present& agreements ,ith 11 merchants all o!er

Bangladesh. But their cards are accepted in almost *11 outlets. The

number is gro,ing e!er%da%.

Substitute of !*sh

it is the primar% bene't of credit card. Through cards one can bu%

almost an% thing on credit ,ithin the credit-limit. Therefore people

can go for their desired products and ser!ice and not bother ,hether

the% are carr%ing enough cash ,ith them or ha!e enough cash in their

ban" account. It enhances the purchasing po,er of the customer and

gi!es them opportunit% to shop an% time as the% li"e.

S*fety

Customers do not need to carr% cash to purchase goods and ser!ices.

Through credit card customer can settle hisMher dues to obtain credit in

shops& hotels& restaurants& petrol stations& etc.

Supple5ent*ry !*rd

tandard Chartered credit card holder can enjo% the con!enience of

supplementar% card for cardholders spouse& children o!er (+ %ears of

age or an% famil% members or friends. Cardholder can set the

spending limit of cardholder choice& ,hich ,ill be the maximum

amount that the supplementar% cardholder can spend in one billing

Page 16 of 41


17/41

c%cle. A supplementar% cardholder can enjo% all the bene'ts that onl%

cardholder can.

'5ergency $eed

In cases of emergenc%& cardholders can get instant cash ad!ances up

1 of card limit from an% of their AT/s * hours in a da%. ince

non-account holder also can be a credit card holder& so non-account

holder also can use their AT/ through credit card.

!onvenience

Cardholders can pa% their utilit% bills through the Auto Bills Pa%

cheme. Customers no longer ha!e to stand in long queues of the

ban" pa% utilit% bills.

Insur*nce !over*ge

Cardholders enjo% free an% accidental death insurance co!erage.

/oreo!er under the afet% Det insurance scheme& in case of death or

total permanent disabilit%& the ban" ,ai!es the total outstanding on

the card.

Inst*ll5ent o*n f*cility Customers can con!ert speci'c purchases into installment loans

through the InstaBu% scheme. Cardholders can bu% merchandise and

pa% them at a lo,er interest rate than most unsecured loans in the

mar"et. /oreo!er in certain special campaign& customers are o$ered

H8R6 interest rates loan facilit% for certain products.

6ifts *nd Re7*rds

Cards ha!e an ongoing re,ards campaign ,here customers get

di$erent gifts based on the Treasure Points that the% get on their

purchases of di$erent goods. Besides that Cards al,a%s ha!e some

sort of campaign or other going on.

Page 17 of 41


18/41


19/41

3.8.!redit i5it

!*rd "ype #5ount/aster M Gisa Card>7ocal3

B5T (1&111 B5T )1&111

old /aster Card >7ocal3 B5T (11&111 B5T *11&111Platinum /aster Card>7ocal3

B5T *11&111 +11&111

Gisa il!er ?Q 11 ?Q *&11 Gisa old ?Q &111 ?Q 1&111

"*ble 3

3.6.6 Debt Burden Ratio0<

3.8.= Secured !*rd >oc*l ? Int@lA

" B0<

3.8.C (usiness 'Distence >for self9e5ployed onlyA

1 :e*r E oc*l

3.8.B Mini5u5 Rep*y5ent >1 d*ys *fter the

st*te5ent d*teA

oc*l E &igher of < ? (%" 00

Intern*tion*l E &igher of < ? ;SF 10.

3.= 6ener*l diGerences bet7een gold H silver c*rd

oc*l *nd Intern*tion*l c*rds

Page 19 of 41


20/41

3.=.1 6old c*rd *nd Silver c*rdsold Cards are for people ,ith a higher le!el of income and ,ith

auent lifest%les. ome of the attribute di$erences of the gold and

sil!er cards are&

!riteri* 6old

!*rd

Silver !*rd

/inimum monthl%

income

B5T &111 B5T (1&111

/inimum Credit 7imit B5T (11&111 B5T (1&111/aximum Credit 7imit B5T 11&111 B5T )1&111

Annual 4ees >Primar%

Card3

B5T 11 B5T (01

Annual 4ees

>upplementar%

Card3

B5T (&111 B5T 11

Card Replacement 4ee&

PID

Replacement 4ee& 6!er-

limit

Charge E 7ate Pa%ment

4ee

>Per c%cle3

B5T (& 11MCard S GAT B5T +11MCard S GAT

"*ble 4

4ees and charges are subject to frequent changes to adjust ,ith

mar"et condition and business priorities.

3.=.2 oc*l *nd Intern*tion*l c*rdsome of the attributable di$erences of the 7ocal and International cards are&

Intern*tion*l !*rds oc*l !*rds

;se Can be used outside

Bangladesh for Purchases

To be used onl% in

Bangladesh for

Page 20 of 41


21/41

other currencies. Purchases onl% in

B5TSecurity Issued against the

deposits of an Account

or an 8xport Retention

Ouota Account.

Issued full%

unsecured

Charge!urrency

Charges are all in ?5. Charges are in B5T

;s*ge If used locall% then

customers are a$ected b%

the currenc% con!ersion

rate. As cards bills aresettled against foreign

currenc% Accounts.Oper*tor GIA onl% GIA and /asterCard

both

"*ble

3.C %iGerent types of St*nd*rd !h*rtered !redit !*rdsJ

3.C.1 oc*l !*rd/asterCard old

/asterCard il!er

Gisa il!er

3.C.2 Intern*tion*l !*rd Gisa il!er

Gisa old

3.C.3 !*rds *lso c*n be used in (*ngl*desh

Page 21 of 41


22/41

/asterCard il!er

/aster Card old

/aster Card Platinum

Gisa il!er

3.C.4 !ric-et !*rd There is no di$erence in Gisa il!er and

/asterCard il!er from tandard Chartered point of !ie,. 6nl% is that

some retailers accept Gisa ,hile some accept /asterCard depending

on the acquiring membership respecti!e retail shops holds. The

merchants of tandard Chartered accept both GIA and /asterCard.

The tandard Chartered Cric"et Card is the latest edition to thetandard Chartered famil% of Cards. This is an exciting !alue-pac"ed

o$er that has the ,hole to,n buKKing. or e!er% Ta"a spend b% the

cardholders CB ,ill donate a portion of that amount to the cric"et

de!elopment fund. :hene!er Bangladesh ,ins a Test or an 65I& CB

,ill double the re,ard points on the purchases made b% the Cric"et

Cardholders in the next ( da%s of the victory. !ric-et cardholders

,ill get discounts at di$erent sports stores. The 'rst fe, successful

applicants ,ill be gi!en a special Cric"et benets. "he abo!e-

mentioned bene'ts are the special bene'ts that are exclusi!e to the

Cric"et Card. Beside that& Cric"et Card holders ,ill get all the usual

bene'ts of a credit card including re,ards program& afet% Det&

InstaBu%& Auto bills Pa% etc.

3.B &o7 do the #uto (ills p*y Syste5 7or-, Auto Bills pa% is a simple method of pa%ing utilit% bills. Cardholders

,ho enroll into the scheme don;t ha!e to stand in line at di$erent

ban"s or other collection o$ices. Currentl% there are ) ser!ice

pro!ides under the scheme.

Page 22 of 41


23/41

3.B.1 e*tures *nd #dv*nt*ge There are some features

and ad!antages of Auto billspa%.The areJ

#assle free transaction

Con!enient

8as% trac"ing

imple and eas% to appl%.

3.B.2 /*rticip*ting Merch*nts

/obile Phone rameen Phone& A"tel&Cit%cell& Blin"

IP Accesstel& Agni& B67Cable TGJ Prisms 5igital?tilit% Compan% 5esa& 5esco

"*ble 8

CB cardholders& ,ho are also customers of these utilit% companies&

can issue a standing order& through ,hich their bills ,ill be

automaticall% paid& in full& at the respecti!e billing date. The pa%ment

of the bill is subject to the a!ailable credit in the credit limit of the

cardholder.

If there is insu$icient credit to meet the bill amount& the billing

compan% informs the cardholder that his Auto Bills pa% has been

declined and he needs to pa% in the bill through other channels.It is

possible for a cardholder to pa% the bills of more than ( utilit% or or

more bills of the same utilit% can be paid through the same card.

/eaning ( person can pa% his and other;s bills as ,ell.

3.B3 I5port*nt /oints

ubscription

5ocumentation

Page 23 of 41


24/41

Acti!ation

5isputes

3.10 Card cheque

CB 'rst introduces cheque against credit cards. A cardholder can

issue a cheque for the total limit of the card if the amount is a!ailable.

The cheque is account pa%ee. The card holder is charged onl% ( of

the amount and can enjo% a max. 6f * da%s and min.( da%s interest

free period >I the pre!ious month is totall% paid3.

3.10.1 e*tures *nd #dv*nt*geJ

:ider Acceptance

4lexible Transaction

/ore Con!enience

afe and ecure

Additional Card Cheque for upplementar% Card holder

Re,ard

3.10.2 ees *nd !h*rgesJ

(. card Cheque Boo" 4ees2

B5T (11 for 7ea!es Cheque Boo"

B5T (1 for (1 7ea!es Cheque Boo"

. Card Cheque Prossing 4ees2

(.11 of the Card Cheque transaction amount.

3.10.3 I5port*nt /ointsJ

?sage Area

?sage 7imit

ubscription

Time 7ine to get the Cheque Boo"

7ost Cheque M Cheque Boo"

Re,ard Point

Page 24 of 41


25/41

3.11 '9S"#"'M'$"

3.11.1 +h*t is '9S"#"'M'$",

The subscriber of e- statement ,ill be able to recei!e their monthl%

statements through e-mail. This is an alternati!e of printed statement.

Through e-statement& Credit Card statement can be recei!ed

an%,here in the ,orld. This program has been launched from (

st

Nune&11.

3.11.2 e*tures *nd #dv*nt*ge

4ast& eas% and hassle free.

Do charge.

/ultiple emailing facilities.

Increases securit% and con'dentialit%.

#assle free enrollment.

3.11.3 '9St*te5ent Subscription /rocedure

The customer ,ill 'll out the application form and it ,ill be

collected b% the sales executi!es.

The sales executi!es ,ill submit the form to the Portfolio o$icer.

The application form ,ill be processed b% the operations

department.

Page 25 of 41


26/41

6nce e-statement is acti!ated& the customer ,ill immediatel%

recei!e a :87C6/8 /essage >email3 con'rming the receipt of

the completed e-statement application form.

The monthl% Credit Card e-statement ,ill be in P54 format&

,hich can be !ie,ed b% Acrobat Reader.

If customer does not ha!e Acrobat Reader& it can be do,nloaded

from ,,,.Adobe.com for free.

3.12 &o7 co5e Inst*buy is such * big hit,

InstaBu% is the ne, scheme of tandard Chartered Credit Cards.This is an

installment plan ,here CB Credit Card #olders can transfer their

purchases to the

installment loan account and repa% in 8qual /onthl% installment

>8/I3.

3.12.1 e*tures *nd (enets Abilit% to ma"e high !olume purchase.Do further credit appro!al or documents require.Do opening fee.Con!enience to pa%bac" in =&(&(+&* or = months onInstallments.Re,ards points earned on all Instabu%.8njo% 1 interest rate for purchase from particular merchants.

3.12.2 I5port*nt /oints Galid onl% in 7ocal cards.Can transfer more than one transaction to Instabu% plan.Transaction amount has to be more than B5T 11.

Page 26 of 41

http://www.adobe.com/http://www.adobe.com/


27/41

3.12.3 Rep*y5ent f*ctor

Months /*y5ent *ctor Monthly Inst*ll5ent

= (.1+*+ B5T (&**= ( (.(=) B5T 0+1 (+ (.* B5T 0 * (.)1 B5T **= 1 (.*+ B5T +1 = (.1+ B5T

"*ble =

3.13 +h*t is S*fety $et ,It is an insurance Co!erage safeguarding tandard Chartered Ta"a

Cardholders against life; uncertainties. In case of 5eath or an%

Permanent Total 5isabilit%& card outstanding ,ill be ,ai!ed b% the

ban". This program has been launched from (st Nune&11.

3.13.1 e*tures *nd #dv*nt*gein*nci*l security in ti5es of need

In case of total permanent disabilit% or death& the total outstanding on

the credit card ,ill be ,ai!ed& ,ithout causing an% incon!enience of

lo!ed ones.

ery no5in*l 5onthly ch*rge

6nl% 1. of the last credit card statement balance. 4or instance&T@.

(111 outstanding ,ill ha!e a charge of onl% T@. ..It ,ill be charged

to the account on the (st da% of each month.

ree cover*ge for tr*ns*ctions on supple5ent*ry c*rd

ince all supplementar% card transactions are charged to the primar%

card holder;s account& afet% net also co!ers supplementar% card

holder transaction.

ree t7o 5onths tri*l period

Page 27 of 41


28/41

4irst t,o months& afet% Det can be enjo%ed absolutel% free of charge.

tatement ,ill sho, Kafet% Det Insurance chargeL.

5uring trial period& there ,ill be another reser!e transaction.

#uto5*tic *nd h*ssle free enroll5ent

Do forms ha!e to be 'lled.

If no call recei!ed ,ithin the 'rst t,o months& card holders ,ill

continue to bene't from afet% Det.

If protection is not preferred& card holders ,ill call them and request

for de-enrollment.

3.13.2 I5port*nt /oints

ree tri*l period

4or existing clientsJ next months.

4or ne, card holdersJ months after hisMher card issued.

Insur*nce !l*i5

After the incident card holder can call them or ,rite to them& and

necessar% papers ,ill be sent to the card holders for claming the

bene'ts.

Restrictions

As ,ith an% other insurance polic%& restrictions and disclaimers ,ill appl%.

uggest reading of terms and conditions.

Insur*nce !o5p*ny

To be disclosed onl% if customer requests. American 7ife Insurance

Compan% >Alico Bangladesh3& a compan% of repute has been operation

since ().

3.13.3 S*fety $et !l*i5 /rocedure

Cardholder;s famil% ,ill contact Customer er!ice-CAs ,illinform the famil% o send an application claming afet% net

Insurance and also inform the famil% that death certi'cate and

other documents ,ill be required for processing the claim. The

ban" ,ill contact them later regarding the documents required.

Page 28 of 41


29/41


30/41

P?77U er!iceJ

Through pull ser!ice& the customer ,ill be able to access Credit

CardMAccount;s pre!ious da%;s outstanding b% t%ping a pre-de'ned

@e%,ord >CAR5 for Credit Card and ACC for Account;s.3 ,ith a * digit

PID as a message in the mobile phone and then send the message to

00.

imple and Con!enientJ

:ith / ban"ing& customer does not ha!e to ,ait for the statements

to arri!e through mail or call up at Cards Call Centers. / ban"ing

,ill pro!ide *- hour access to the "e% 'nancial information of Credit

CardMAccount.

3.14.3 SMS (*n-ing Subscription /rocedureJ

To sing up for / ban"ing& the customer needs to 'll-out /

ban"ing form.

The customer ,ill 'll out the application form b% pro!iding a *

digit Pin.

The sales executi!es ,ill collect and submit the form to the

Portfolio 6$icer.

The application form ,ill be processed b% the operations

departments.

CB ,ill require 0 ,or"ing da%s to acti!ate the ser!ice.

3.14.4 I5port*nt /oints of SMS (*n-ing

In case of Ban" Account& CB ,ill accept application forms

signed b% the authori9ed signatories of the account onl%. In case

of Credit Cards ,ill accept application forms signed b% the

PRI/ARF cardholder onl%.

Page 30 of 41


31/41

The accountholderMCardholder is solel% responsible to ensure

the possession of the /obil phoneMConnection assigned to /

ban"ing ser!ice to maintain the con'dentialit% of hisMher

'nancial information.

/ ban"ing er!ice shall remain e$ecti!e until other,ise

ad!ised in ,riting b% the AccountholderMCardholder& ,hich

should reach the Ban" at least one ,ee" the next statement is

due.

Page 31 of 41


32/41

3.1 +h*t is the Re7*rd /rogr*5, #nd ho7

does it 7or-

The Re,ards Program of the Credit at CB is a scheme to ma"e thecredit card experience more exciting for the cardholders.

In this program& Cardholders accumulate Treasure Points for the

Purchase on their credit cards. 4or e!er% T@. 1 of purchaseCardholders ,ill accumulate ( Treasure Point. Through the treasure

points& cardholders ,ill be entitled to exclusi!e gifts or !ouchers from

selected merchant establishments across the countr%.

The Treasure Points necessar% for a speci'c gift is gi!en in the

boo"let that each customer recei!es along ,ith his credit card.

8xisting customers ,ere mailed the boo"let at the start of the

campaign. The boo"lets are also a!ailable& in limited numbers& at the

Branches.

The customers ha!e no fear of an% portion loss here. In other ,ords& if

someone purchases T@. 1 at month;s end& he gets (1 points for the

T@. 11 and the T@. 1 is held and ,ill be added to next month;s

Page 32 of 41


33/41

point;s accumulation. o& customers get points for e!er% Ta"a that

the% purchase on their CB Credit Card.

8ach month;s statement includes the points accumulated b% the

customer till date. o customers can trac" their point;s accumulation.

Customers can redeem their Treasur% Points for pri9es& b% either

'lling in a re,ards cheque or b% calling in at a gi!en number. :ithin a

,ee" the Re,ard release Goucher ,ill be sent to the customers.

Page 33 of 41


34/41

PART I

4.1 Popular Cards in BANGLAD!"#

CB has !arious t%pes of 7ocal as ,ell as International Credit Cards.

Among the Credit Cards& /aster Card is more popular no, a da%&

because of the merchant >P& A@T87& CITFC877& B7& etc3 out let.

Pre!iousl% !isa Card ,as popular. But no, /aster card old& /aster

Card il!er& /aster card Platinum are more popular in Bangladesh.

4.$ %nterest rate in Ban&ladesh#

The interest rate charge for Credit Card is . monthl% and .1+dail%.

Page 34 of 41


35/41

4.3 Custo'er de'and (or Credit Card in Ban&ladesh#

Credit Card has a tremendous demand in Bangladesh2 especiall% CB

Credit Card. CB has (11&111 customers of Primar% Card and(1&111 customers for upplementar% card. 8!er% da% the% are

increasing their customer in a numerous ,a%. 11 to *11 customers

the% are retaining e!er%da%.

4.4 !ocial %'pact o( Credit Card#

6ur countr% has become more de!eloped than before. De,

technologies are using in man% sector. 8arning pro't is not onl%

concern of the business2 the% also thin" about the customer

satisfaction. 7i"e other sector pri!ate ban"s are also concern of

customer satisfaction. o& for the sa"e of the customer pri!ate ban"s

introduced Credit Card in Bangladesh.

/aximum pri!ate ban"s use on-line ban"ing s%stem. Credit Card is

one of part of 6n-line s%stem. There is also another t%pe of card&

,hich is AT/ card. Both the card got the same popularit% in

Bangladesh. B% the Credit Card the card holder can purchase

an%thing form there ,here the Credit Card is allo,ed. Credit Card

holder also can dra, cash but onl% from the Credit Card booth. There

is limit speci'cation that& up to that amount& the card holder can

purchase.

Credit Card is nothing but ta"ing short term loan from ban"s. Thecard holder does not need to go to ban"s to ta"e the loan.

Do, a da%& the Credit Card is so popular in Bangladesh& that

maximum account holders are using it. Customer li"e to use it

because& it reduces the ris" of carr%ing cash all the time. Credit Card

Page 35 of 41


36/41

s%stem is changing the !ie, of ban"ing s%stem. People of Bangladesh

are no, loo"ing for easier and faster ban"ing s%stem for mone%

transaction and for ta"ing loans. afet% is another reason of carr%ing

Credit Card instead of carr%ing cash. The concept of Credit Card

changed the thin"ing pattern of the people.

Page 36 of 41


37/41

PART

.1 Conclusion:

Page 37 of 41


38/41

CB ban" is still regarded as a reliable ban" and the gro,ing

number of its customers indicates its acceptance among clients. It

is !er% common statistical sa%ing that it is times costl% to get ane, customer than retaining the customer. It is also noted that

getting a credit card and closing it is expensi!e. In both cases a

number of time consuming steps ha!e to be ta"en from the ban"

and the customer. ince CB has been able to increase the number

of card holders& it no, should ta"e care on the matter of pro!iding

qualit% of ser!ice.

The !arious s%stems of a Credit Card for customer ser!ice are a

positi!e mo!e to,ards greater qualit% ser!ice. But the ban" needs

to o!ercome the lac" of internal co-ordination bet,een the

departments. To "eep up the ser!ice qualit%& the ser!ice pro!iders

need regular moti!ations. The customers should also be

enlightened regarding the ser!ices of Credit Card and more

ad!ertisement is a must to boost the Ban"s reputation.

It is !er% true that the most of the customers do not hesitate to

expression CB as a better than other ban". But it should be

considered that the customers ha!e !er% fe, choices of ban"s ,ith

,hich the% can actuall% compare the online ser!ice of CB. The

nationali9ed ban"s of Bangladesh alread% ha!e earned a bad

reputation in ser!ing customers. Again among the foreign pri!ate

ban"s li"e #BC& A/8V is the ban"s that ha!e ,idened operation

li"e CB. 6ther pri!ate ban"s ha!e limited operation in limited

locations. The local ban"s ha!e recentl% focused their attention tocustomer ser!ice& satisfaction and also Credit Card er!ice.

/oreo!er there are a good number of pri!ate ban"s that are

coming into the competition soon. Therefore it is better for CB not

Page 38 of 41


39/41

to let the situation be ,orst and should emphasi9e on ser!ing

customers e$ecti!el% and e$icientl% to ensure better ser!ice.

6.1 Recommendation:

The customer should be encouraged b% o$ering ne,

bene'ts to retain the Credit Card holders.

Pro!iding an authori9ation for a card is to sanction an

unsecured loan. There are fraud issues related to it.

ometimes the agent has to ta"e appro!al from the

merchant di!ision to pro!ide authori9ation. ince

authori9ations are a !ital ser!ice pro!ide& t he merchant

di!ision should be more accessible in terms of issuing

Credit Cards.

The customer needs to be encouraged to use the CB

Credit Card. pecial campaigns could be launched for the

purpose. CB should also be moti!ated to encourage for

more customers. The Credit Card needs more ad!ertising

and campaigns to encourage customers.

Page 39 of 41


40/41

7.0 BIBLIOGRAPHY

777.st*nd*rdch*rtered.co5

777.google.co5

in*nci*l Report 03040 of S!(

Md. I5r*n #li /roduct Service OGicer !usto5er Service #ssur*nce %ept. &*di Mension (r*nch S!(.

Page 40 of 41

http://www.standardchartered.com/http://www.google.com/http://www.standardchartered.com/http://www.google.com/


41/41

Scb Project Paper

Documents

Transcript of Scb Project Paper