The customer satisfaction @ citi bank project report mba marketing

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The customer satisfaction @ citi bank project report mba marketing

  1. 1. The Customer satisfaction in citifinancial personal loans TABLE OF CONTENTSS.NO. CHAPTER PAGE NUMBER 1 EXECUTIVE SUMMARY 6 2 AIM OF THE STUDY 7 4 DESIGN OF THE STUDY 9 5 PERSONAL LOANS 13 6 PERSONAL LOANS MARKET IN INDIA 20 7 CITIGROUP 21 8 CITIFINANCIAL 26 9 ANALYSIS & INTERPRETATION 28 10 FINDINGS 50 11 RECOMMEDATION 52 12 CONCLUSION 55 13 MY LEARNINGS 57 LIST OF TABLES & GRAPHSS.NO. TOPIC PAGE NUMBER 1 Customer satisfaction regarding overall service of 33 Citifinancial. 2 Customer opinion regarding Citifinancial’s ability to 35 keep up its promises. 3 Customer opinion regarding Citifinanacial’s ability to 37 meet its customers’ needs. 4 Customer opinion regarding Citifinancial as a 39 trustworthy bank. 5 Customer satisfaction regarding time taken for loan 41 approval. 6 Customer satisfaction regarding EMI schemes offered 43 by Citifinancial. 7 Customer satisfaction regarding interest rate charged 45 by Citifinancial. 8 Customer satisfaction regarding processing fees 47 charged by Citifinancial.BABASAB PATIL Page 1
  2. 2. The Customer satisfaction in citifinancial personal loans EXECUTIVE SUMMARYThe project is on “CUSTOMER SATISFACTION REGARDING CITIFIACIAL PERSOAL LOANS”.I was assigned south Bangalore where I was required to collect & analyze data from south Bangalore. Theresearch involved studying existing customers. It covered each and every aspect of personal loan, which canaffect customer satisfaction. The main objective of the study was to find out areas where customers are notsatisfied with the service offered by Citifinancial regarding personal loan.I was required to collect data from existing customers, analyze it, interpret it & make recommendations whichcan help Citifinancial to improve on areas where it is lacking & achieve better customer satisfaction by focusingon such areas.The report will first give you a brief about the research methodology, which I was supposed to use in the study.After this you will come to know about personal loans & the current trends in personal loans market in India.You will also get information on Citigroup & Citifinancial. Apart from this you will come to know about how Ianalyzed & interpreted the collected data. I hope that you will find this report interesting & will help you inconducting further studies on this sector. CHAPTER-1BABASAB PATIL Page 2
  3. 3. The Customer satisfaction in citifinancial personal loans CHAPTER-2 DESIGN OF THE STUDYBABASAB PATIL Page 3
  4. 4. The Customer satisfaction in citifinancial personal loans DESIGN OF THE STUDYTHE PROBLEM: Citifinancial is witnessing below average industry growth with respect to its personalloans. Despite having a good network of its branches & DSAs in cities where it is present, it is witnessing a lowgrowth as compared to its competitors.OBJECTIVE: Citifinancial holds customer dissatisfaction as the main reason beyond low growth in itspersonal loans. So, the objective of this study is to find out from the existing customers, whether they aresatisfied with the Citifinancial personal loans or not, where the study will cover customer reaction towards each& every aspect of the product. The study will try to find out the areas where Citifinancial needs to improve.GEOGRAPHICAL AREAS: I was allotted south Bangalore where I supposed to cover areas such asBTM, Koramangala, HSR layout, Audugodi, JP Nagar, Jayanagar, Banashankari & Basavanagudi.SCOPE: The study covered each & every aspect of the customers. The study focused on customer reactionwith respect to the overall service and each & every aspect of the product such as interest rate, EMI etc.LIMITATIONS: Though the study has covered each & every aspect of customer satisfaction but it hasneglected customer-employee interaction, which contributes highly to the customer satisfaction. Due to this,though the study may help in finding out the areas where Citifinancial needs to improve with respect to productfeatures but it will not help Citifinancial in deciding whether to train its employees or not for deal in a betterway with the customers. DESIGN OF THE STUDY-RESEARCH METHODOLOGYRESEARCH DESIGN:BABASAB PATIL Page 4
  5. 5. The Customer satisfaction in citifinancial personal loans The research was Exploratory where it tried to cover Who, Where, When, How & Why about the existingcustomers of Citifinancial.DATA COLLECTION:Mainly two types of data were used for data collection viz:Secondary data: The main source was the customer database, which was given by Citifinancial . It was used tofind out all general information about the existing customers such as their names, their residential & officialaddress & their phone numbers.Primary data: The main source was the questionnaire, which was designed to collect all the primary data suchcustomer reaction towards all the aspects of the product.RESEARCH TYPE:The type of research used to collect primary data was Quantitative, where all the findings were quantified todraw interpretations. On the basis of which conclusions were made. Telephonic interview was used to collectdata, where customers were interviewed for five to ten minutes over the telephone. DESIGN OF THE STUDY-RESEARCH METHODOLOGYTYPE OF QUESTIONS:To collect the primary data, a questionnaire was devised which consisted of:Dichotomous questions: Having three optionsBalanced scaling questions: Having three points on which the customers were required to rate.Apart from this, Demographic based questions were there to collect data about the customers regarding theirnames, age, income, occupation, household income, amount of loan & the number of installments.SAMPLING TECHNIQUE:Stratified sampling was used to cover all types of customers on the basis of income.SAMPLE SIZE:I was required to collect a sample of 50 from the database given.BABASAB PATIL Page 5
  6. 6. The Customer satisfaction in citifinancial personal loansANALYSIS:Single Tabulation was used for arranging the collected data & for analyzing & interpretation CHAPTER-3 PERSONAL LOANS PERSONAL LOANSDEFINITIONS:“An amount of money borrowed from a bank or other lender by an individual”.“A loan based on a consumers income, debt and credit history”BABASAB PATIL Page 6
  7. 7. The Customer satisfaction in citifinancial personal loans“Money lent to an individual by a financial institution for a specific personal purpose except buying a house.One main difference between a personal loan and a home loan is that most personal loans are unsecured”.“A loan obtained by an individual for personal (as opposed to business or investment) purposes. A personal loanmay or may not be secured”.“A loan that establishes consumer credit that is granted for personal use; usually unsecured and based on theborrowers integrity and ability to pay”.A personal loan is a lump sum which you borrow from a bank, building society or another lender. A personalloan could be the best option for you if you are looking to borrowing money for between 1 and 5 years and isparticularly ideal if you have other debts that youre looking to consolidate into one loan to reduce your overallmonthly payments.The simplest explanation of the use of the word "personal" to describe these types of loans is that the moneythat is borrowed is to be used for personal reasons. If the aim of the loan was to finance the purchase of a home,that is a mortgage. If the purpose of the loan is to help a business to expand, that is a business loan. If you aretaking out a loan to fund something that will be for your own personal use, or to help you out with personalissues, then that is a personal loan. The best way to expand on this would be to look at what a personal loancould be used for. PERSONAL LOANSA personal loan is an amount of money offered, normally by lending institutions such as banks and buildingsocieties, on the condition that it will be paid back at some later date. Personal loans are available in a wholehost of formats and can range from £500 upwards. The term of the loan is often dependent on whether thelender requires security to be offered by the borrower and the size of the regular repayments you wish to make.Under most personal loan arrangements you receive a lump sum, equal to the amount of the agreed loan and inreturn you agree to make regular repayments. These repayments are normally monthly and cover both theinterest due and the capital outstanding loan amount. If you have established the loan as a repayment type loanthen the repayments will include an amount to pay off some of the capital and reduce your outstanding debt.Payments are made throughout the term of the loan to ensure that the total debt is repaid to the lendinginstitution.AMOUNT OF PERSONAL LOANAmount wise personal loans may range from 15,000 to 10, 00,000.RATE OF INTERESTBABASAB PATIL Page 7
  8. 8. The Customer satisfaction in citifinancial personal loansCurrently, interest rates across all banks are in range of 10% to 22%. The interest rate usually depends on twofactors:Amount of loan: Higher the amount lower will be the interest rate & vice verse.Type of loan: While secured loan carries lower rate where as unsecured loan carries higher rate. PERSONAL LOANSUSES OF PERSONAL LOANThe range of uses for the money is very wide indeed. Common uses include the purchase of a new car, aholiday or the repayment (consolidation) of existing debt.Frequently the lending institution will ask for details of the reason you require the loan. Although the purpose ofthe loan may have little impact on their decision to grant the money, it can have some influence on themaximum term of the loan.It is more likely that larger sized loans, for purchases such as cars, home improvements etc. will result in alonger repayment term. It is not uncommon for the purchase of a car to established with a repayment term of 3years whilst the term for home improvement loans can be for much longer terms (sometimes as long as tenyears).SUITABILITY OF PERSOAL LOANIf you are looking to borrow money over a period of less than ten years, whether you need the money for apurchase or perhaps to repay existing debt, then a personal loan may be suitable for your needs.Personal loans are just another form of credit. If you are considering a personal loan to run alongside otherforms of personal credit such as overdrafts and credit cards, you must give careful consideration to whether youwill be able to afford the total of your regular payments. When considering the situation it is wise to take intoaccount your ability to pay were you unable to work due to illness or should you lose your employment. PERSONAL LOANSACCESSABILITY TO PERSOAL LOANBABASAB PATIL Page 8
  9. 9. The Customer satisfaction in citifinancial personal loansThere are hundreds of potential lenders willing to offer you the opportunity to borrow from them. However theoffer of finance does depend upon your ability to repay the debt and your previous credit history. Thoseapplicants that have had credit difficulties in the past can find it more difficult to obtain access to a personalloan compared to those applicants that have a better credit history.It is normally true that the better the credit risk you are, the easier you will find it to obtain a personal loan. It isalso likely that people who have the best credit histories will be offered the best deals. This normally means alower interest rate is charged or the repayment terms are longer.DIFFERENCE BETWEEN PERSONAL & BANK LOANThere isnt much of a difference between a bank loan and a personal loan. They are in essence the same thing, inthat you are borrowing an amount of money from a product provider that you will repay at agreed intervals withinterest added to the sum.The difference is that a bank specifically provides a bank loan. A few years ago, the bank was one of the onlyplaces a customer could get a loan, which is why people used to say they needed a good relationship with theirbank manager. Obviously, this isnt the case now, as building societies and many other financial companies alsooffer loans.MERITS & DEMERITS OF PERSONAL LOAN MERITS DEMERITS Quick High rate of disbursement interest. of loan. PERSONAL LOANSTYPES OF PERSOAL LOANUnsecured personal loan: Is a debt that you can acquire where you do not have to use any specificcollateral to back the loan. Usually, the people who would be eligible for this type of loan would be people whodo not own a home, or people with bad credit.An unsecured loan will mean less risk to the person taking out the loan than a secured loan. This is due to thefact that a person will not have to use their home as insurance for the loan. The negative aspect of this is thatdue to the lack of insurance, the interest payments set will be higher, as the loan provider will need to cover theadded risk of not being able to get their money back. A positive aspect of the unsecured loan could be that yourapplication is processed a lot quicker, so you can get hold of money more rapidly. This speed is due to the factthat your home will not need to be valued to make sure your security is available. Another upshot of this is thatyou can submit an application, get a reply and answer very quickly to your application, and just because youhave submitted does not mean you are under an obligation to take up the loan.BABASAB PATIL Page 9
  10. 10. The Customer satisfaction in citifinancial personal loansSecured personal loan: Is a loan that is specifically assigned for home owners. This is where the home isused as collateral, which is a larger risk for a customer than an unsecured loan, because if you fall intodifficulties or are unable to repay the loan for any particular reason your home is at risk. One of the most vitalpoints to understand about a secured loan is that it is not best used as a solution to debt problems, because it iseven more important that you have budgeted properly to cover the loan payments. Many people with debtproblems have them precisely because they are not good at budgeting to cover loan payments.Secured personal loans could be taken out for various reasons. You could want to make home improvements,for which you can borrow money secured on your home, as you are hopefully increasing its value. Perhaps itcould be for a debt consolidation loan, where you take out a loan for an amount large enough to pay off severalother debts for a longer period PERSONAL LOANS MARKET IN INDIA PERSONAL LOANS MARKET IN INDIABABASAB PATIL Page 10
  11. 11. The Customer satisfaction in citifinancial personal loansIn recent times, personal loans market in India is witnessing a rapid growth. Over the year 2003-04 personalloans disbursement has grown by 40%. Consumer credit in India is currently growing at around 45%-50%annually, and considering that the Indian economy is expected to grow at around 8% this year, demand forconsumer loans including personal loans is expected to remain strong. The growth is high in unsecuredpersonal loans as compared to secured personal loans.Following are some of the factors responsible for growth in personal loans market in India:Falling interest rates: Interest rates have gradually fell form above 25% to below 20% across all banks overthe years.Change in consumer behavior: Once customers hesitated to take loans from banks but now they are looking atit from a positive angle.Shift in focus of banks from corporate lending towards retail lending: Banks are now concentrating moreon retail loans including personal loans, home loans & auto loans due to the growth in retail loans.Positive demographics: There is rapid growth in urban population, who are most likely to take retail loans.Apart from this middle class segment is growing, which account for about 70-80% of the total loan seekers.MAJOR PLAYERS: At preset ICICI Bank is the market leader having more than 30% market share inpersonal loans market, followed by HDFC Bank. Apart from this there are several other banks includingGovernment banks, Private banks & MNC banks who are in the lead. In case of MNC banks, Citifinancial topsthe list with respect to total loan disbursements & in terms of market share. It is followed by HSBC, StandardChartered bank, ABN AMRO & others. CHAPTER-4 CITIGROUPBABASAB PATIL Page 11
  12. 12. The Customer satisfaction in citifinancial personal loans CITIGROUPLEGACYCitigroup Inc., todays pre-eminent financial services company, with some 200 million customer accounts inmore than 100 countries, dates back to the history of Citibank, which began in 1812; Travelers Life & Annuity,since 1864; Smith Barney, founded in 1873; Banamex, formed in 1884 as a result of the merger of BancoNacional Mexicano and Banco Mercantil Mexicano; and Salomon Brothers, which dates back to 1910 and latermerged with Smith Barney, a subsidiary of Travelers Group at the time.Other major brand names under Citigroups trademark red umbrella include Citi Cards, CitiFinancial,CitiMortgage, CitiInsurance, Primerica, Diners Club, Citigroup Asset Management, The Citigroup Private Bankand CitiCapital.FAMILY TREECitigroup is largely organized into four groups: Citigroup Global Consumer Group, the Global Corporate andInvestment Banking Group, Citigroup Global Investment Management, and Global Wealth Management.BABASAB PATIL Page 12
  13. 13. The Customer satisfaction in citifinancial personal loans CITIGROUPPRODUCT LINESGlobal Consumer Group Cards o World’s largest provider of credit cards o Third Quarter 04 Net Income of $1.267 billion Consumer Finance o World’s consumer finance leader o Third Quarter 04 Net Income of $643 million Retail Banking o Citibank: highest-rated, leading global brand o Third Quarter 04 Net Income of $1.225 billionGlobal Corporate and Investment Banking Group Capital Markets & Banking o #1 underwriter of Combined Debt and Equity and Equity-related transactions o Third Quarter 04 Net Income of $1.159 billion Global Transaction Services o Leading provider of transaction products; $7.3 trillion in assets under custody o Third Quarter 04 Net Income of $285 million CITIGROUPPRODUCT LINESGlobal Investment Management Life Insurance & Annuities o One of the fastest growing life insurers in the U.S with expanding international presenceBABASAB PATIL Page 13
  14. 14. The Customer satisfaction in citifinancial personal loans o Third Quarter 04 Net Income of $282 million Asset Management o A leader with $500.7 billion in assets under management o Third Quarter 04 Net Income of $84 millionGlobal Wealth Management Private Client Services o A leader in managed accounts with $1.087 trillion in total client assets o Third Quarter 04 Net Income of $195 million Private Bank o Offers widest range of services to more than 25,000 of the world’s most successful and influential families o Third Quarter 04 Net Income of $136 million CITIGROUP IN INDIACitigroup opened its first office in India in 1902. Since then they have become one of Indias most diverse andrecognized financial service providers operating in 25 offices and branches across 18 cities. Citigroup India has5,000 employees nationwide. Their operations encompass a premier global corporate and investment bank and awell-established consumer business under the Citibank and CitiFinancial brands. The global corporate and investment banking group provides a comprehensive range of financial servicesincluding treasury management, transaction services, securities custodianship, foreign exchange, fixed incomeand equities sales and trading, and corporate finance to corporate clients, governments and financial institutions.BABASAB PATIL Page 14
  15. 15. The Customer satisfaction in citifinancial personal loansCitibank India is the countrys leading retail bank with a history of innovation and customer service. Today weare the largest issuer of credit cards and offer mortgages, personal loans, insurance, and investment services foron-shore customers. Citibank India also provides banking services to the international Indian community in 23cities around the world. CITIFINANCIAL CITFINANCIALBABASAB PATIL Page 15
  16. 16. The Customer satisfaction in citifinancial personal loansSince 1912, CitiFinancial has been helping people realize their financial goals and dreams. Headed by CEO andPresident Harry D. Goff, CitiFinancial is a member of Citigroup, the worlds largest financial services provider.They have more than 2000 offices in the United States and Canada. Each branch manager runs theirCitiFinancial office as if it is their own business, so loan decisions are made locally.They provide home improvement loans, bill consolidation loans, money for tuition, vacation getaways andunexpected expenses. They have a solution that helps you afford what you want or need most in life. They’ll getyou the money you need when you need it!Products & Services: • Personal loans • Home loans • Auto loansCitifinancial personal loan: It can be used to pay off your credit card bills, meet your unexpectedexpenses or it can be used for education or travel purpose. At this time, CitiFinancial Personal Loans are notavailable for business purposes. Their specialty is extending credit for personal, family and household purposes.Qualification criteria: CitiFinancial grants personal loans to people over age 18 who have establishedcredit and can secure the loan with personal property. Some established credit, like a gasoline or store creditcard, is necessary, and employment or other steady income is required. We also make unsecured loans tohomeowners. People just beginning to establish credit may be asked to have another responsible adult co-signfor the loan. CHAPTER-5 ANALYSIS &BABASAB PATIL Page 16
  17. 17. The Customer satisfaction in citifinancial personal loans INTERPRETATION ANALYSIS & INTERPRETATIONAnalysis has been made for each & every question given in the questionnaire. Mainly analysis has been donefor the sample of 50 covering south Bangalore. This analysis represents only of south Bangalore & not of wholeBangalore & rest of India. Therefore the findings will show the picture of south Bangalore only.To have an in-depth analysis of the sample, the sample of 50 has been classified into 3 groups by usinghousehold income as classification data. Therefore the analysis will not only show the picture of the wholesample together but it will also show the picture of each group separately within the sample.On the basis of analysis, interpretation has been made for the whole sample as well as for each group within thesample.Before jumping on to the conclusion, one should know the type of questions being asked & the options beinggiven, on the basis of which analysis & interpretations have been made.Type of questions:Dichotomous questions: options given were:Agree (it means customer is satisfied)Don’t agree (it means the customer is unsatisfied)Can’t say ANALYSIS & INTERPRETATIONBABASAB PATIL Page 17
  18. 18. The Customer satisfaction in citifinancial personal loansType of questions:Balanced scaling questions: Here the customer is required to rate on a scale of 1 to 3 including 1 & 3.Rating of 1 means ‘bad’ that is the customer is unsatisfiedRating of 2 means ‘average’ that is the customer is neither unsatisfied nor satisfied also.Rating of 3 means ‘good’ that is the customer is satisfied.CLASSIFICATION OF SAMPLE (TOTAL SAMPLE:50)The whole sample of 50 has been divided into 3 groups, using household income as classification data.Following are the 3 groups:Group 1: It consists of customers having household income of less than 15000. The total strength of this groupis 15.Group 2: It consists of customers having household income in the range between 15000 & 25000 includingboth 15000 & 25000. The total strength of this group is 25.Group 3: It consists of customers having household income of more than 25000. The total strength of thisgroup is 10.In the following pages you will encounter some tables & pie charts for each of the topic separately, beingcovered in the questionnaire. For each topic there will be one table showing responses of each group separately& combined together which forms the total sample of 50. Apart from this there will be 4 pie charts for eachtopic. While the first pie chart will show the responses of all groups taken together where as the other 3 willshow the responses of each group separately. QUESTIONNAIRE.Name : ___________________________Occupation : ___________________________ 1. Average family income per annum < Rs 15000 , >15000 <25000 , > 25000. 2. Age group 20 - 30, 30 - 40, 40 - 50, > 50BABASAB PATIL Page 18
  19. 19. The Customer satisfaction in citifinancial personal loans 3. How customer is satisfied with citifinance service provided? 1, 2, 3 Rating of 1 means ‘bad’ that is the customer is unsatisfied Rating of 2 means ‘average’ that is the customer is neither unsatisfied nor satisfied also. Rating of 3 means ‘good’ that is the customer is satisfied. 4 . HOW IS CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO KEEP UP ITSPROMISES? 1, 2, 35. CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO MEET ITS CUSTOMERS’ NEEDS 1, 2, 3 6. CUSTOMER OPINION REGARDING CITIFINANCIAL AS A TRUST WORTHY BANK 1, 2, 3 7. CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR LOAN APPROVAL 1, 2, 3 8. CUSTOMER SATISFACTION REGARDING EMI SCHEMES OFFERED BY CITIFINANCIAL 1, 2, 3 9 . CUSTOMER SATISFACTION REGARDING INTEREST RATE CHARGED BY CITIFINACIAL 1, 2, 3 10. CUSTOMER SATISFACTION REGARDING PROCESSING FEES CHARGED BYCITIFINANCIAL 1, 2, 3 ANALYSIS & INTERPRETATIONQ.No-3) CUSTOMER SATISFACTION REGARDING OVERALL SERVICE OFCITIFINANCIAL.BABASAB PATIL Page 19
  20. 20. The Customer satisfaction in citifinancial personal loans CUSTOMER SATISFACTION-TOTAL SAMPLE 24% 42% 1 2 3 34%Only 42% of the total sample of customers is satisfied with the overall service of Citifinancial. customer satisfaction-group 1 13% 1 2 33% 54% 3In group 1, only 13% of the customers are satisfied with the overall service of Citifinancial.BABASAB PATIL Page 20
  21. 21. The Customer satisfaction in citifinancial personal loans customer satisfaction-group 2 12% 1 48% 2 40% 3In group 2, the situation is somehow better than group 1 as here, about 48% of the customers are satisfied withthe overall service of Citifinancial. customer satisfaction-group 3 10% 20% 1 2 3 70%In group 3, about 70% of the customers are satisfied. This shows the higher income customers are much moresatisfied than the lower end customers as group 3 denotes higher end whereas group 1 denotes lower edcustomers. ANALYSIS & INTERPRETATIONQ.No-4) CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TO KEEPUP ITS PROMISES CUSTOMER OPINION-TOTAL SAMPLE 2% 24% 1 2 74% 3It shows that about 74% of the total sample of customers agrees with the fact that citifinancial was able to keepup its promises.BABASAB PATIL Page 21
  22. 22. The Customer satisfaction in citifinancial personal loans customer opinion-group 1 7% 40% 1 2 3 53%In group 1, only 40 % customers agree with the fact that citifinancial was able to keep up its promises. customer opinion-group 2 12% 0% 1 2 3 88%In group 2, as against group 1, a staggering 88% customers agree with the fact that citifinancial was able to keepup its promises. customer opinion-group 3 10% 0% 1 2 3 90%I group 3, about 90% customers agree with the fact that citifinancial was able to keep up its promises. Thisagain shows that high income group customers (group 3) are much more satisfied with Citifinancial than thelow income group customers (group 1), as 90% customers of group 3 support the above statement as against amere 40% customers of group 1 who support the above statement.BABASAB PATIL Page 22
  23. 23. The Customer satisfaction in citifinancial personal loans ANALYSIS & INTERPRETATIONQ.No-5) CUSTOMER OPINION REGARDING CITIFINANCIAL’S ABILITY TOMEET ITS CUSTOMERS’ NEEDS CUSTOMER OPINION-TOTAL SAMPLE 2% 28% 1 2 70% 3It shows that about 70% of the total sample of customers agrees with the fact that Citifiancial was able to meettheir personal needs. customer opinion-group 1 7% 33% 1 2 3 60%In group 1, only 33% of the customers agree with the fact that Citifinancial was able to meet their personalneeds.BABASAB PATIL Page 23
  24. 24. The Customer satisfaction in citifinancial personal loans customer opinion-group 2 16% 0% 1 2 3 84%I group 2, as against group 1, a staggering 84% of the customers agree with the fact that Citifinancial was ableto meet their personal needs. customer opinion-group 3 10% 0% 1 2 3 90%I group 3, about 90% customers agree with the fact that citifinancial was able to meet their personal needs. Thisagain shows that high income group customers (group 3) are much more satisfied with Citifinancial than thelow income group customers (group 1), as 90% customers of group 3 support the above statement as against amere 33% customers of group 1 who support the above statement. ANALYSIS & INTERPRETATIONQ.No-6) CUSTOMER OPINION REGARDING CITIFINANCIAL AS A TRUSTWORTHY BANK CUSTOMER OPINION-TOTAL SAMPLE 2% 24% 1 2 74% 3It shows that about 74% of the total sample of customers agrees that Citifinancial is a trustworthy bank.BABASAB PATIL Page 24
  25. 25. The Customer satisfaction in citifinancial personal loans customer opinion-group 1 7% 40% 1 2 3 53%In group 1, only 40 % customers agree with the fact that Citifinancial is a trustworthy bank. customer opinion-group 2 12% 0% 1 2 3 88%In group 2, as against group 1, 88% customers agree with the fact that Citifinancial is a trustworthy bank. customer opinion-group 3 10% 0% 1 2 3 90%I group 3, about 90% customers agree with the fact that citifinancial is a trustworthy bank. This again showsthat high income group customers (group 3) are much more satisfied with Citifinancial than the low incomegroup customers (group 1), as 90% customers of group 3 support the above statement as against a mere 40%customers of group 1 who support the above statement. ANALYSIS & INTERPRETATIONBABASAB PATIL Page 25
  26. 26. The Customer satisfaction in citifinancial personal loansQ.No-7) CUSTOMER SATISFACTION REGARDING TIME TAKEN FOR LOANAPPROVAL CUSTOMER SATISFACTION-TOTAL SAMPLE 0% 16% 1 2 3 84%It shows that 84% of the total sample customers are satisfied with the time taken for loan approval byCitifinancial. customer satisfaction-group 1 0% 20% 1 2 3 80%BABASAB PATIL Page 26
  27. 27. The Customer satisfaction in citifinancial personal loans customer satisfaction-group 1 0% 20% 1 2 3 80%About 80% customers of both groups 1 & 2 are satisfied with the total time taken by Citifinancial for loanapproval. customer satisfaction-group 3 0% 0% 1 2 3 100%As against group 1 & 2, 100% customers of group 3 are satisfied with the total time taken by Citifinancial forloan approval. ANALYSIS & INTERPRETATIONQ.No-8) CUSTOMER SATISFACTION REGARDING EMI SCHEMES OFFERED BYCITIFINANCIAL CUSTOMER SATISFACTION-TOTAL SAMPLE 8% 26% 1 2 66% 3It shows that about 66% of the total sample customers are satisfied with the EMI schemes offered byCitifinancial.BABASAB PATIL Page 27
  28. 28. The Customer satisfaction in citifinancial personal loans customer satisfaction-group 1 13% 20% 1 2 3 67%In group 1, about 67% customers are satisfies with the EMI schemes offered by Citifinancial. customer satisfaction-group 2 8% 1 32% 2 60% 3In group 2, about 60% customers are satisfied with the EMI schemes offered by Citifinancial. customer satisfaction-group 3 0% 20% 1 2 3 80%As against group 1 & 2, about 80% customers of group 3 satisfied with the EMI schemes offered byCitifinancial, indicating that they are the most satisfied among all groups, with Citifinancial. ANALYSIS & INTERPRETATIONBABASAB PATIL Page 28
  29. 29. The Customer satisfaction in citifinancial personal loansQ.No-9) CUSTOMER SATISFACTION REGARDING INTEREST RATE CHARGEDBY CITIFINACIAL CUSTOMER SATISFACTION-TOTAL SAMPLE 8% 1 2 38% 54% 3It shows a mere 8% of the total sample customers are satisfied with the interest rate being charged byCitifinancial. & about 54% customers are unsatisfied with it. customer satisfaction-group 1 0% 33% 1 2 3 67%In group 1, a high of 67% customers are unsatisfied with the interest rate being charged by Citifinancial. Theinteresting thing is that not even a single customer is satisfied.BABASAB PATIL Page 29
  30. 30. The Customer satisfaction in citifinancial personal loans customer satisfaction-group 2 12% 1 2 32% 56% 3Here also the scene is not so good as 56% customers of group 2 are unsatisfied with the interest rate beingcharged by Citifinancial. customer satisfaction-group 3 10% 30% 1 2 3 60%In group 3, though only 30% customers are unsatisfied but on the other had only 10% are satisfied with theinterest rate being charged by Citifinancial. This shows that majority of the customers across all groups areunsatisfied with the interest rate being charged by Citifinancial. ANALYSIS & INTERPRETATIONQ.No-10) CUSTOMER SATISFACTION REGARDING PROCESSING FEESCHARGED BY CITIFINANCIAL CUSTOMER SATISFACTION-TOTAL SAMPLE 8% 1 2 38% 54% 3It shows a mere 8% of the total sample customers are satisfied with the processing fees being charged byCitifinancial. & about 54% customers are unsatisfied with it.BABASAB PATIL Page 30
  31. 31. The Customer satisfaction in citifinancial personal loans customer satisfaction-group 1 0% 33% 1 2 3 67%In group 1, a high of 67% customers are unsatisfied with the processing fees being charged by Citifinancial. Theinteresting thing is that not even a single customer is satisfied. customer satisfaction-group 2 12% 1 2 32% 56% 3Here also the scene is not as good as 56% customers of group 2 are unsatisfied with the processing fees beingcharged by Citifinancial. customer satisfaction-group 3 10% 30% 1 2 3 60%In group 3, though only 30% customers are unsatisfied but on the other had only 10% are satisfied with theprocessing fees being charged by Citifinancial. This shows that majority of the customers across all groups areunsatisfied with the interest rate being charged by Citifinancial. ANALYSIS & INTERPRETATIONBABASAB PATIL Page 31
  32. 32. The Customer satisfaction in citifinancial personal loansNUMBER OF CUSTOMERS WHO FACED ANY INCONVENIENCE FOR GETTIG INTOUCH WITH ANY CITIFIANCIAL PERSOAL LOAN OFFICER OR THECONCERNED AGENT FOR EQUIRY REGARDING STATUS OF PROCESSING OFLOANOut of a sample of 50, not even a single customer faced any inconvenience I getting in touch with anyCitifiancial personal officer or the concerned agent.NUMBER OF CUSTOMERS FACED ANY PROBLEM FROM CITIFINANCIALDURING REPAYMENTOut of the sample of 50 customers being surveyed, only 5 customers faced any problem during repayment.CUSTOMER SATISFACTION REGARDING SOLUTION GIVEN TO THE PROBLEMREGARDING REPAYMENT BY CITIFIANCIALIn this, only the 5 customers who faced the problem were interviewed & all of them were satisfied with thesolution give by Citifinancial. CHAPTER-6BABASAB PATIL Page 32
  33. 33. The Customer satisfaction in citifinancial personal loans FINDINGS AND RECOMENDATION FINDINGSFrom the analysis part one can interpret that customers across all groups in thesample are satisfied with the service offered by Citifinancial except for theinterest rate & processing charges. We have already seen that a very highpercentage of customers across all groups in the sample are unsatisfied withthe rate of interest & the processing fees being charged by Citifinancial.As I interviewed all the customers in the sample, one thing I found is that the main reason behind suchunsatisfaction by a majority of the customers is the high rate of interest being charged by Citifinancial. It alldepends on customer attitude & perception.People have a tendency of comparing each option with the other option available to them & then they evaluate.In case of Citifinancial, the same thing has happened. Here also the customers have perception that the ratecharged by Citifinancial is comparatively higher than the rate charged by other institutions offering personalloans.If I say that Citifinancial charges 16% interest and I ask whether it is high or low, then you may not reply as youdon’t have other options with which you can compare it. But, say if you have 3 options viz:  Citifinancial charging 16% interest  ICICI Bank charging 7.5% interest  HSBC charging 15% interest.BABASAB PATIL Page 33
  34. 34. The Customer satisfaction in citifinancial personal loans FINDINGSThen in this case you will compare all the options & will definitely think that the rate charged by Citifinancial ishigh as compared to others. This is what has exactly happened with Citifinacial.Same is the case with the processing fees also as customers think that the fees charged by Citifinancial is veryhigh.Except for the interest rate & the processing charges, customers are satisfied with all other aspects of the servicebeing provided by Citifinancial. Only this thing is affecting the customer satisfaction regarding overall serviceoffered by Citifinancial. There are many customers who are though satisfied with the overall service ofCitifinacial but they are not satisfied with the interest rate & processing fees being charged by Citifinancial.This signals a danger for Citifinancial as its customers are not satisfied with the interest rate & processingcharges. As many customers look out for only these two aspects, any other institution offering personal loan at alow rate may come & takeaway the customers of Citifinancial. This is now started happening with Citifinancialas its customers are now turning towards its competitors, who are offering personal loans at a comparativelylower rate.BABASAB PATIL Page 34
  35. 35. The Customer satisfaction in citifinancial personal loans RECOMMENDATION RECOMMENDATIONMy recommendation will clearly focus on the interest rate & the processing fees being charged by Citifinancial.I would not recommend Citifinancial to fix interest rate only according to what the customers want &neglecting the RBI guidelines. I would not recommend Citifinancial to lower its interest rate but I canrecommend that Citifinancial should try to balance the following three things while fixing the rate:  RBI guidelines  Preference of customers  Rates being charged by its competitorsThe most important thing is that while fixing the interest rate Citifinancial should not only comply with the RBIguidelines but it should try to fix it competitively. The rates should be charged competitively with the ratesbeing charged by the competitors especially the MNC banks.Since Citifinancial is an MNC, people when come here to take personal loan will definitely compare it with thepersonal loans being offered by other MNCs such as HSBC Bank, ABN AMRO Bank, Standard CharteredBank, besides comparing it with the personal loans offered by India private banks & government banks. It isBABASAB PATIL Page 35
  36. 36. The Customer satisfaction in citifinancial personal loansnatural as Citifinancial, HSBC Bank, ABN AMRO Bank, Standard Chartered Bank belong to same category,people will first try to compare any product of Citifinancial with that of the other three. So, Citifinancial shouldwatch out its competitors especially the MNC banks which may easily take away its customers. CHAPTER-7 CONCLUSION CONCLUSIONBABASAB PATIL Page 36
  37. 37. The Customer satisfaction in citifinancial personal loansThe whole study shows how customers are satisfied with the personal loans offered by Citifinancial except forthe interest & processing fees part, with which the customers are unsatisfied.This is not only the picture of south Bangalore but of whole Bangalore & of whole India.Customers across all cities/tows, wherever Citifinancial is present, are unsatisfied with the rate of interest &processing fees being charged by Citifinancial.Citifinancial is now working on it & will soon come out with a new rate that is competitively set & inaccordance to RBI guidelines & customers preference. MY LEARNINGSBABASAB PATIL Page 37
  38. 38. The Customer satisfaction in citifinancial personal loansBABASAB PATIL Page 38

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