Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

mehedi hassan ubl main body

193 views

Published on

  • Be the first to comment

  • Be the first to like this

mehedi hassan ubl main body

  1. 1. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 1 1. Introduction Master of Business Administration (MBA) is an Academic Program and the Internship Program is an important part of Master of Business Administration (MBA). Internship creates a unique opportunity for the student to apply their theoretical knowledge into practice and gain valuable real world business experience. During the Internship Period, student can also realize existing business condition apart from having opportunities to solve the problem using various analytical tools. Modern banks play an important part in promoting economic development of a country. Banks provide necessary funds for executing various programmers underway in the process of economic development. They collect savings of large masses of people scattered throughout the country. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the requirements. Economy of Bangladesh is in the group of world’s most underdeveloped economies. Since 1990, Bangladesh Government has taken a lot of financial sector reform measurements for making financial sector as well as banking sector more transparent, and formulation and implementations of these reform activities has also been participated by different international organization Online banking comes with huge benefits. Many customers warmly adopt the habit of online banking. Some eagerly wait for new online services. But some still prefer traditional banking. They find traditional banking easy, hassle free and more trustworthy than online banking. As a servicing industry, the Banks are customers oriented. Customers are the driven power of a Bank and it earns profit by providing services to customers. Customers are the person or institutions which deal with the Bank. In general, he, who has an account in a Bank, may be treated as a customer. In broad sense, customers may be seen from the two wings – Depositors and Borrowers. Beside these, other short-term served customers may exist in a Bank. As the Banking area is very hard and competitive, in order to survive and successfully compete with other Banks, a Bank has to serve its customers very carefully. Now, in Bangladesh more than 50 scheduled Banks are operating their activities to serve customers. To fulfill the demand of time and impress the customer most of the banks are now trying to make their whole banking operation through online. Online banking is the demand of time. It is now no longer a “nice to have” but an “impossible to survive without” for all banks. Uttara Bank Ltd performs many of its operation in on line and trying to include rest of the operations. Uttara Bank Ltd is continuing to begin new online services one by one. During my project period I got the opportunity to observe customer closely. I found that many customer want more online services to save their time and cost. Many customers are happy with traditional banking. Some customers have no faith on online banking. Online banking makes life easier, there is no doubt. But introducing a new system is not easy because it brings some difficulties with it. In case of starting full online banking; the bank has to introduce some new system/products. In that situation both employees and customers face some problem to adopt that new system/product.
  2. 2. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 2 1.1 Origin of the Study For any business school student, only curriculum activities are not enough for handling the real business situation. So it is important to know about the field of business. This Internship Report is originated as a partial fulfillment of the MBA Program on “Customer Satisfaction on Electronic and Online Banking Performance of UBL” which has been approved and assigned by UBL and working as an internee in Uttara Bank Ltd, Ramna Branch from 29 February 2016 to28May2016.Duringthisperiodthekeylearningpointishow the host organization works with the help of the internal supervisor. Internship Supervisor of the MBA Program is instructed by Mohammad Mizanour Rahman, Assistant Professor, Department of Accounting & Information Systems, Comilla University. On the basis of working experience and under the supervision of him, it was a great endeavor to prepare this report which relates to the theoretical knowledge with the practical work situation. 1.2 Statement of the Problem A single bank is highly connected with other banks for payment system and other functions of bank. The failure of a single bank not only affects its shareholders and depositors rather it affects rest other banks and even all rest other business. Now a days different types of Electronic & online banking activities are being provided by the commercial banks. Considering customer demands & benefits, all banks compete with each other to attract their customers in different ways through providing convenient, accessible and acceptable services to their customers. One of the most important of these services is the electronic services that have contributed significantly to increase the distance between customer and the bank. Online & E- banking was adopted by banks so as to improve their services delivery, decongest queues in the banking hall, enable customer withdraw cash 24/7, aid international payment and remittance, track personal banking transaction, request for online statement, or even transfer deposit to a third party. Despite the effort of banks to ensure that customer reap the benefits of E-banking, the bank is to meet with complaints from customer as regards, malfunctioning Automated Teller Machine (ATMs), network downtime, online theft and fraud, non- availability of financial service, payment of hidden cost electronic banking like Short Massage Services (SMS), for sending alert, mandatory acquisition of ATM cards for international transaction. So, problem arising from E- banking services exists all over the world. Besides many of the banks in our country have been operating their online services internationally with upgraded systems but some have not been. So, to get better facilities from a bank customer always justify the services by comparing with other banks. To accomplish that type of activities there is necessary to hire some experienced experts in every bank. Therefore, success of UBL depends on the increase of customers if bank provides particular online & E-banking services to their customers when they need. By analyzing some data in chapter four we will be able to say what is going on online & E-banking performance of UBL.
  3. 3. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 3 1.3 Rationale of the Study In the present global economy, banking sector is the prerequisite to ensure better life for the people of any country. But to establish a strong banking sector, it is required to have good study in all operations of banking. For that we should do all of these operations step by step & obviously we must have to know about impact of online & E-banking activities of banking sector. Online & E-banking plays a vital role in the financial sector of our faster economy. We know that banks remain busy always with lots of clients in its working place. Once upon a time every banks performs their work manually but now a days they depend on electronic database system. So, it facilitates all kinds of customer related transactions according to customer requirement. Anybody can make his/ her each transaction with getting notification for each from any distance by online without going to bank. Online banking provides security systems for every customer with separate identity by saving time. Some banks are able to give faster E-banking services giving highly security services to the healthy customers. Moreover, Banks facilitate exchanging business very well through online within a long distance. It is very much important to know and understand the contributions of this sector to the overall economic performance of the country. Thus, I have decided to conduct the study on Customer Satisfaction on Electronic and Online Banking Performance of Uttara Bank Limited. So, it is also true for UBL to run with strong competition & to take proper action. On the other hand, Internship Program of Accounting & Information Systems of Comilla University is a partial requirement for the graduation of MBA students. I had been placed at Ramna Branch of Uttara Bank Limited in order to do my Internship and I have to work considering all of this mention above I have decided to work on this rational topic. 1.4 Objectives of the Study The general objective of this report is to prepare an internship report based on Customer Satisfaction on Online & Electronic Banking Performance of UBL. However, the study specifically seeks to:  Identify the given online & E- banking services offered by UBL and its Usage by customers.  To determine the impact of online & E- banking services on valued customer.  Identify & comparing customer’s level of satisfaction with selected others banks providing service delivery by introduction of E-banking services.  To identify the customer’s reactions when suddenly they are asked for some extra rules to make the system online.  Identify the benefits to customers for using online & E- banking services.  To identify employees problem to operate the system that newly installed.  Identify the challenges facing effective implementation of electronic banking system by UBL.
  4. 4. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 4 1.5 Methodology of the Study 1.5.1 Introduction This report is a descriptive type of research, which briefly reveals the overall activities performed by ttara Bank Ltd. It has also been administered by collecting secondary data. Annual reports of UBL were the major secondary data sources in this regard. But different types of statistical information and analysis have given the proper information about the online & E- banking performance by making comparison. The study is performed based on the information extracted from different sources collected by using a specific methodology. This report is analytical in nature. 1.5.2 Sources of Data The data collection method to study consists of both of primary and secondary sources. But majority of the information was collected from secondary sources. Primary Data Collection: The primary data has been mainly collected from asking the respective senior officers, personnel and from manager of the bank. More importantly detailed information about banking has been taken from extensive interview from the bank’s personals especially from the officers of UBL (Ramna Branch).The study is conducting where data were collected from primary sources using the following methods: a) Observation Method: Observation method may be defined as systematic watching of facts and events occurring in the field of study. All the activities of banking services are observed to identify the implementation, supervision, and monitoring and repayment practice. b) Interview Method: Interview is a face-to-face situation where the interviewer asks a person being interviewed (the respondent), questions to obtain answer pertinent to study. To get real information about Electronic & online banking of UBL, some respondents & clients are asked directly. c) Analysis: The analysis has been done to achieve the objectives of operation system study, banking system of the bank. The necessary data are to be taken and analyzed in a systematic manner. Besides these methods that will be used to collect the primary data needed for conducting the study have been collected from the following sources:  Practical work exposures and observation in different desks of the branch covered.  Scheduled survey, informal discussion with professionals and conversation with clients.  Study of different files of different section of the bank and some access to database.  Interview with the respective employee or personnel.  Expert opinions.
  5. 5. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 5 Secondary Data Collection Secondary sources are permanent and printed sources of information that are collected from Internet, different article of published in journals and magazines. The secondary data of this report are collected from different conceptual matter, interest and different articles UBL published. These are- Bank's Annual Report and publication of statements. Different relevant reference books, newspaper, journals related to the banking sector. Information from Uttara Bank’s Website. Unpublished UBL data from the branch. Online published article on perception about E-banking. Online banking related case study on UBL, SCB, PBL, EBL. 1.5.3 Sample Selection  Sampling Frame: The research was conducted in Uttara Bank Limited, Ramna Branch.  Sampling Element: Respective officers and clients who are mostly related to the online & E- banking services of mentioned five banks.  Sampling Procedure: For the research I have used probability Convenience sampling technique.  Sample Size: Clients of five (5) banks. So, the sample size is in one (1) bank is20 totaling 100. 1. Uttara Bank Limited 2. Prime Bank Limited 3. Eastern Bank Limited 4. Dutch Bangla Bank Limited 5. Standard Chartered Bank Limited 1.5.4 Data Collection Procedure and Instruments For the “Customer Satisfaction on Electronic and Online Banking Performance of UBL” I mainly used Secondary data. Besides this I also have done qualitative and quantitative analysis with the data I have collected from the respondents. I had developed a questionnaire that contained 17 questions. Data collection has been done on a random basis. The sample size is 100. The results will be represented through Column charts only. My result will come out through analyzing those data. 1.5.5 Data Analysis Tools Several tools were used to prepare and analysis data for the results for creating report on Customer Satisfaction on Electronic and Online Banking Performance of UBL. These are: Graph Chart.
  6. 6. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 6 Microsoft Word. Microsoft Excel. Clustered Chart. 1.6 Scope of the Study Electronic and Online Banking of a bank is very important and critical matter. It needs both quantitative and qualitative information. It needs also the data regular years. Now in this global arena the activities of commercial banking are very fast. This report is an attempt to analyze the every banking operation of the Uttara Bank Ltd. This study focuses on the condition of Customer Satisfaction on Electronic and Online Banking Performance of UBL & how well it is going on. This report has the crisp details of the procedure of the Customer Satisfaction on Electronic and Online Banking Performance. Along with that, a relevant stream of discussion has been made on the theory and policy issues relating to Electronic and Online Banking Performance. I had a great opportunity to have first-hand knowledge of all the banking activities practiced by the Uttara Bank Limited. The scope of the study is limited to organizational setup, functions and performances: To make differentiation on same E- banking services among five banks. To analyze better online services provided by different banks. To analyze client’s securities systems based on online. To obtain practical experience about E-banking activities by involving such type of program. To build professional carrier in the banking sectors gathering knowledge by using software. 1.7 Limitations of the Study Time Limitation: To complete the study, time was limited by three months. It was really very short time to know details about an organization like Uttara Bank Ltd. A huge amount of time is needed to create a good report on Customer Satisfaction on Electronic and Online Banking Performance of any financial organization. Inadequate Data: Lack of available information about the business activities of Uttara Bank Ltd. Because of the unwillingness of the busy key persons, necessary data collection became hard. The employees are extremely busy to perform their duty. Confidentiality of Data: Every organization has their own secrecy that is not revealed to others. While collecting data on UBL, personnel did not disclose enough information for the sake of confidentiality of the organization. Limited Area: Another important limitation was my working area. I have completed my Internship Program at Ramna Branch. But UBL has 220 branches. So it was not possible to gather knowledge about the bank as a whole.
  7. 7. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 7 2. Overview of the Uttara Bank Ltd. 2.1 Historical Background of Banking Industry of Bangladesh The formally known ‘State Bank of Pakistan’ was renamed as ‘Bangladesh Bank’ right after Bangladesh’s independence. The Bangladesh Bank automatically became official foreign exchange reserve institute. It was too accountable for currency control, monitoring exchange and credit control. In the early 1970s, the government decided to permit foreign banks to continue their business and nationalize the local banks. In that very decade of 1970s, the primary concern of the government was to develop the country’s agricultural industry. This resulted in the ‘Krishi Bank’ extending loans to more farmers. In the later decades, however, the county’s focus shifted to industrialization; resulting in various difficulties in the economic growth process. Lack of proper private activity guidelines and proper methods on loan giving were more significant of these problems. It was not until the late 1980s that these difficulties were being overcome and compensated for the agro sector. However the financial institutions failed to recover the loans the industrial sector. Interestingly, Grameen Bank has set an ideal example of how things should be managed during this devastating time. The bank gave out small amount of loans to the poor population in order for themselves to be self-employed. The selection process for giving out these loans was extraordinary. They gave loans mostly to women who were subordinated; these women became self-employed and hence paid back when were helped with guidance to run their business. In the mid ‘1980s, the government adopted new policies for recovery. It did not work. Government-owned banks continued to fail on recovering the loans. In the 1990s, many private banks started to emerge. Local group of companies became aggressive in investment so the money flow was rather big. Bangladesh Bank played key role in managing these private banks with modern outlook. As consciences the banking sector grew many folds. Throughout the 2000s, governments maintained positive economic policies. The economy grew, so did the Bangladesh's banking sector and business sector. Since 2011 however, many banking scams took place, mainly at government owned banks. This created a bad vibe which is still to recover from. 2.2Profile of the Uttara Bank Ltd. Uttara Bank-one of the largest and oldest private-sector commercial bank in Bangladesh, with years of experience. At first Uttara Bank was established in 1964 named Eastern Banking Corporation. After liberation war it named Uttara Bank. In 1984 published market share and named Uttara Bank Limited. Uttara Bank is one of the oldest and largest commercial banks in private sector in Bangladesh, with years of experience. Adaptation of modern technology both in terms of equipment and banking practice ensures efficient service to clients. 220 branches at home and 600 affiliates worldwide create efficient networking and reach capability. Uttara Bank is a bank that serves both clients and country. The bank is listed in the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly quoted company for trading of its shares. It operates through 220 fully computerized branches ensuring best possible and fastest services to its valued clients. The bank has more than 600 foreign correspondents worldwide. Total number of employees nearly 3,562. The Board of
  8. 8. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 8 Directors consists of 15 members. The bank is headed by the Managing Director who is the Chief Executive Officer. The Head Office is located at Bank’s own 18-storied building at Motijheel, the commercial center of the capital, Dhaka. 2.3 Mission, Vision and Objectives 2.3.1 Mission  Creating and maintaining a set of hard working and efficient employees.  To extend financial assistance to poorer section of the people.  To achieve balance growth & equitable development.  Maintaining the maximum ethical standards community accountability praiseworthy of a leading corporate citizen.  Continuously improving profitability, productivity and thereby enhancing shareholder value. 2.3.2 Vision  To provide quality service to the customer.  To set high standard of integrity.  Bring total satisfaction to its clients, sponsors and employees.  To be leading commercial bank in the country and contribute maximum of the welfare for the people of the country.  Prime objective is to deliver a quality that demonstrates a true reflection of its vision.  Excellence in banking. 2.3.3 Objectives  Paying special attention to the areas, which are under developed.  To develop SME’S, foreign remittance, foreign trade.  To increase industrialization in the country.  To provide employment opportunities.  To make people more of mind to have saving habits.  To increase the services (backed by technology) by efficient employees.  To increase deposit mobilization.  For smooth functioning of foreign trade, establish large foreign network.  To expand the more credit facilities for the customers.  To maintain a good position in the competitive banking sectors in Bangladesh.  To ensure growth and development of the bank.  To use resources of the bank efficiently.  To get more deposits.  To participate in development of the country.
  9. 9. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 9 2.4 Corporate Information Particulars Data Registered name of the company Uttara Bank Limited Legal Form Uttara Bank Ltd. had been a nationalized bank in the name of Uttara Bank under the Bangladesh Bank (Nationalization) order 1972, formerly known as the Eastern Banking Corporation Limited which started functioning on and from 28.1.1965. Consequent upon the amendment of Bangladesh Bank (Nationalization) order 1972, the Uttara Bank was converted into Uttara Bank Limited as a public limited company in the year 1983. The Uttara Bank Ltd. was incorporated as a banking company on 29.6.1983 and obtained business commencement certificate on 21.8.1983. The Bank floated its shares in the year 1984. It has 220 branches all over Bangladesh through which it carries out all its banking activities. The Bank is listed in the Dhaka Stock Exchange Ltd. and the Chittagong Stock Exchange Ltd. as a listed company for trading of its shares. Registered Office 47, shahid Bir Uttam Asfaqus Samad Sarak (Former 90, Motijheel Commercial Area) Motijheel, Dhaka-1000, Bangladesh. GPO Box: 818 & 217 Telephone PABX 9551162 Telefax 88-027168376,88-02-9553081, 88-02-9560820 & 88-02- 9568941 Corporate Website www.uttarabank-bd.com Email uttara@citecho.net, ublmis@uttarabank-bd.com, ublidgen@uttarabank.com Chairman Mr. Azharul Islam No. of Branches 220 No. of ATM Booths 10 SWIFT Code UTBLBDDH No. of Employee 3769 No. of Shareholders 82,081 Human Resources Development 1,958 Training Institution 1 Table 2.4: Corporate Information
  10. 10. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 10 2.5 Overview of Ramna Branch I was assigned at the Ramna Branch of Uttara Bank Limited to complete my Internship Program. During my Internship Program I had a lot of learning, but most importantly I realized how to work under the pressure of responsibilities. This practical orientation is necessary for the development and preparation of a person before entering into the corporate world. The things that I have learned at Uttara Bank are: Meaning of responsibility. Necessity of commitment. Punctuality and regularity is very important. Ability to interact with different sorts of people. Uttara Bank Limited has always been prepared the Internship Program for its internees. It is strictly followed by both parties. Uttara Bank in Ramna Branch was opened in the 02 April 1985 at Ramna, Dhaka with 8 employees. The age of this branch is 30 years, it is being successfully operated its activities from the beginning of establishment. Ramna Branch at a Glance Particulars Data Address 21/1 Purana Paltan,Mukti Bhaban(1st floor), Dhaka-1000,Bangladesh. Phone 9551154, 9565764 Email ublramna@dhaka.net Total Number of Deposit accounts 4053 Total number of Loan Accounts 382 Loan Deposit Ratio 18 % Weighted Average Interest Rates 16% Deposit Amount Tk. 698831(thousand)- Up to November 2015 Loan Amount Tk. 633376 (thousand)- Up to November 2015 Table 2.5: Ramna Branch at a Glance
  11. 11. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 11 2.6 Products & Services of UBL Products & Services Types of Each Product & Service Deposit Products Savings Account, Special Notice Deposit, Fixed Deposit Receipt Account, Double Benefit Deposit Scheme, Monthly Deposit Scheme, Uttaran Marriage Deposit Scheme, Uttaran Swapnapuran Deposit Scheme, Uttaran Education Deposit Scheme, Monthly Profit Scheme. Special Loan Schemes 1.Uttaran Consumer Credit Scheme 2. SME Loan Women Entrepreneur’s Loan Scheme, Uttaran Small Business Loan(USBL) Scheme, Loan for Service Concern, Loan for Trading and Other Concern, Loan for Manufacturing Concern. 3. Other Loan Personal Loan, Building Repair Loan, Loan Against FDR, Loan Against DPS. Lease Services & Other Credits Over Draft, Micro Credit, Export Credit, Import Credit, Bills Purchases, Loan on Securities, Loan on Secured Mortgage, Payment Against Documents, Loan Against Imported Merchandise, Export Development Loan, Agricultural Loan, Industrial loan, Industrial Lending(Term & Working Capital), Internal trade, Housing Loan, Bills Discounted & Purchased. Foreign Exchange FCDA (Foreign Currency Deposit Account), NFCDA (Non Foreign Currency Deposit Account), RFCDA (Residential Foreign Currency Deposit Account). Remittance & International Services Pay Order, Demand Draft, Electronic Fund Transfer (EFT), Instant Cash, Express Money, Money Gram, Instant Cash, SWIFT Service, International Money Order. Table 2.6: UBL Products and Services.
  12. 12. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 12 2.7 Green Banking of UBL Environment friendly banking is called Green Banking. Environmental concern is at the center of the green banking strategy. Green Banking is like a normal bank, which considers all the social and environmental factors. It is also called as ethical bank, environmentally responsible bank, socially responsible bank, or a sustainable bank and is expected to consider all the social and environmental factors. The approach to Green Banking varies from bank to bank, however, broad objectives of the banks are to use their resources with responsibility avoiding waste and giving priority to environment and the society. Ethical banks sometimes work with narrower profit margins than traditional ones. A Green Bank never invests in the environment threat project. The environmentalist bank is Green Bank. As green initiatives sweep across the globe, more and more banks have been adopting green banking practices that are connected with both internal operation and product ecology. Bangladesh Bank, vide BRPD circular No.2 dated February 27,2011 has advised the banks to adopt a comprehensive Green Banking policy in a formal and structured manner in line with global norms so as to protect environmental degradation and ensure sustainable banking practices. Green Banking policy needs to be covered through time frame which will be segregated into 3 phases. The time lining for the actions to be taken under different phases is given as under:- Phases Duration Phase- (i) should not exceed December 31, 2012 Phase-(ii) should not exceed December 31, 2013 Phase- (iii) should not exceed December 31, 2014 Table 2.7: Different phases given by Bangladesh Bank. UBL is careful enough about the above time lining. They have already invested near about 04.50 (Four) crore as Green Finance in 2013.Uttara Bank Limited is so much committed to play an important role for the implementation of Green Banking challenges. UBL has taken rigorous steps towards Green banking goals. They hope that, it will create a new horizon in the banking sector. The following years Green Banking investment in BDT (crore): Years Taka(Crore) 2014 3 2013 4 2012 3 Table 2.7: Green Banking Investment in BDT (Crore).
  13. 13. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 13 Figure 2.7: Green Banking Investment. 2.8 CSR Activities of UBL CSR is an integral part of our corporate culture and ethics. Uttara Bank Limited considers socially responsible activities an important part of its culture, identity and business practice. It has a deep commitment, loyalty and a high sense of responsibility to the nation and its people. As part of its CSR, the bank contributes greatly to the nourishment of the country’s arts, culture and sports and to combat all natural calamities. As part of its CSR, the bank contributes to the nourishment of the country’s arts, culture and sports and to combat natural calamities. The following CSR activities of 2014: SL. No. Sector CSR Activities(2014) Expenditure Incurred(in Crore) 01. Sports Bank donated to Olympic Association (75.00 lac) and Archery in 2014 for making games more popular & dynamic in Bangladesh and bringing it in remarkable position in international level. 1.25 02. Disaster Management Bank has donated Financial assistance to martyred army officers family killed in BDR carnage, Prime Ministers Relief Fund, Warm cloth etc. Tornado affected people in B.Baria. 2.11 03. Education To make the human a resource education is must. Keeping this view in the mind bank has been giving priority .30 0 1 2 3 4 2014 2013 2012 3 4 3 Green Banking Investment
  14. 14. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 14 to the education sector. Bank donated in different educational institution. 04. Treatment Bank donated to Mizanur Rahman, Jahangir Alam Bappy for treatment. .01 05. Agriculture Bank donated to distressed & landless women for fishing culturing and orange plant for free distribution of the farmers. .01 06. Arts & Culture Bank donated to Nari Uddokta Somabesh and Anandamela. .01 Total 3.69 Table 2.8: CSR activities (2014) 2.9 Corporate Governance Fairness, transparency, accountability, and the responsibility are the minimum standard of acceptable corporate behavior today. A sound corporate governance practices has consistently been followed in carrying out the operation of UBL. The bank management is smoothly running the day to day activities of the bank within the policy guidelines of the board of directors and in accordance with the legal and regulatory framework of different regulatory bodies of the county. The main aspects of corporate governance are: Figure 2.9: Main Aspects of Corporate Governance of UBL. Board of Directors & Committees Legal & Regulatory Complianc Disclosoure & Transparency Risk Management Review of Activities
  15. 15. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 15 2.9.1 The Board of Directors Name of Directors Designation Mr. Azharul Islam Chairman Iftekharul Islam Vice- Chairman Badrunnessa (Sharmin) Islam Member (Director) Syed A.N.M Wahed Member (Director) Major General Prof. M.A Mohaiemen(Retd) Member (Director) Eng. Tofazzal Hossain Member (Director) Muhammad Quamrul Ahsan Member (Depositor Director) Asif Rahman Member (Director) Mr. Faruque Alamgir Member (Director) Arif Rahman Member (Director) Dr. Md. Rezaul Karim Mazumder Member (Independent Director) M. Tajul Islam Member (Depositor Director) Prof. Dr. Abu Hossain Siddique Member (Independent Director) Col. Engr. M. S. Kamal (Retd.) Member (Independent Director) Shaikh Abdul Aziz Member (MD & CEO) Md, Fazlur Rahman Secretary 2.9.2 Executive Committee SL. NO. Name of the Director Status With the Bank Status with the Committee 01. Mr. Azharul Islam Independent Director Chairman 02. Iftekharul Islam Director Member 03. Col. Engr. M. S. Kamal (Retd.) Director Member 04. Md. Fazlur Rahman Director Member 05. Muhammad Quamrul Ahsan Depositor Director Member 06. Mr. Asif Rahman Director Member 07. Shaikh Abdul Aziz MD & CEO Member
  16. 16. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 16 2.9.3 Audit Committee: SL. NO. Name of the Director Status With the Bank Status with the Committee 01. Dr. Md Rezaul Karim Mazumder Independent Director Chairman 02. Faruque Alamgir Director Member 03. Prof. Dr. Abu Hossain Siddique Independent Director Member 04. Md. Fazlur Rahman Director Member 2.9.4 Risk Management Committee: SL. NO. Name of the Director Status With the Bank Status with the Committee 01. Iftekharul Islam Director Chairman 02. Col. Engr. M. S. Kamal (Retd.) Director Member 03. M. Tajul Islam Depositor Director Member 04. Prof. Dr. Abu Hossain Siddique Independent Director Member 05. Shaikh Abdul Aziz MD & CEO Member 06. Md. Fazlur Rahman Director Secretary 2.9.5 Credit Rating Credit Rating Agency of Bangladesh Limited (CRAB) has upgraded the long term rating of Uttara Bank Limited to “AA3” (pronounced as Double A three) from A1 and retained the Short Term rating at “ST-2” for the year 2012. A comparative position of the credit Rating of Uttara Bank Ltd. for the year 2012 and 2011 is furnished below: Particulars Rating Results Terms Long Term Short Term Surveillance Rating 2012 “AA3” (Very Strong Capacity & Very High Quality) ST-2 (High Grade) Date of Rating 30.06.2013 Validity 1 (One) Year 1 (One) Year Commercial Banks rated “AA3” have very strong capacity to meet their financial commitments. AA3 is judged to be of very high quality and is subject to very low credit risk. Commercial Banks rated ST-2 are considered to have strong capacity for timely repayment. Commercial Banks rated in this category are characterized with commendable position in terms of liquidity, internal fund generation, and access to alternative sources of funds. The rating reflects the Bank’s strength in risk weighted capital adequacy, satisfactory profitability, improving trend in asset quality and surplus provision.
  17. 17. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 17 2.10 Corporate Logo and Corporate Slogan A corporate logo is a distinctive design, mark or symbol that uniquely identifies a company. A corporate logo is powerful corporate identity tool and, as the symbol by which public recognizes a firm, is in some cases more valuable than the physical assets of the firm. A slogan is an advertising tag-line or phrase that advertisers create to visually express the importance and benefit of their product. The UBL’s slogan is- "Nourished by the age old heritage of Bengal” 2.11 Organizational Structure of UBL: Managing Director(MD) Additional Managing Director(AMD) Deputy Managing Director(DMD) Executive General Manager(EGM) General Manager(GM) Deputy General Manager(DGM) Assistant General Manager(AGM) Senior Principle Officer(SPO) Principle Officer(PO) Senior Officer(SO) Officer Grade-2 Assistant Officer
  18. 18. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 18 2.12 Financial Overview of UBL 2.12.1 Return on Assets (ROA) Return on Assets ratio of a bank gives an idea of how efficiently a bank is using its assets to generate profit. The formula of ROA is: ROA= Earnings available for Common Stockholders/Total Assets × 100 The Return on Asset ratios of Uttara Bank Limited from 2011-2015 are given below:- 2011 2012 2013 2014 2015 1.54% 1.91% 1.69% 1.00% 0.99% Table 2.12.1: Return on Assets (ROA). Figure 2.12.1: Return on Assets (ROA) Interpretation: In this case the profit yields as result of the employment of the assets in a bank. In the table no- 2.12.1 and figure no- 2.12.1 of Return on assets Ratio of Uttara Bank Limited it is noticed that there is major fluctuations in the last five year. In 2012, the ratio increased to great level. This was because in that year earnings available for common stockholders increased to great level. But after that year there was a decreasing trend in this ratio because of declining rate of increment in earnings. 1.54% 1.91% 1.69% 1.00% 0.99% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2011 2012 2013 2014 2015 Return on Assets Years
  19. 19. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 19 2.12.2 Return on Equity (ROE) Return on Equity is a ratio that measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. The formula of ROE is- ROE = Earnings available for common stockholders / Common stock equity× 100 The Return on Equity ratios of Uttara Bank Limited from 2011-2015 are given below:- 2011 2012 2013 2014 2015 17.80% 18.02% 17.13% 12.62% 12.27% Table 2.12.2: Return on Equity (ROE). Figure 2.12.2: Return on Equity (ROE). Interpretation: The ratio was highest during the 2012. This is because increase in Earnings available for common stockholders at a higher incremental rate than the increase in Common stock equity in that year. In 2014 and 2015 there was a heavy fall in this ratio. The Earnings available for common stockholders in those years decrease at higher rate that is from TK. 3000.3 million to TK.2536.4 million and TK.2680.4 million respectively. And the shareholders equity also increased in those years from previous years that are from TK.9, 634 million to TK. 9,796.9 and 10,679.4 million respectively. 17.80% 18.02% 17.13% 12.62% 12.27% 0.00% 5.00% 10.00% 15.00% 20.00% 2011 2012 2013 2014 2015 Return on Equity Years
  20. 20. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 20 2.12.3 Earnings per Share (EPS) The term Earnings per Share represents the portion of a company’s earnings, net of taxes and preferred stock dividends that is allocated to each share of common stock. Earnings per Share are calculated as follows: Earnings per Share = Earnings available for common stockholders / Number of common stock outstanding The Earnings per Share of Uttara Bank Limited from 2011-2015 are given below:- 2011 2012 2013 2014 2015 69.19 5.40 5.74 3.74 3.60 Table 2.12.3: Earnings per Share (EPS). Figure 2.12.3: Earnings per Share (EPS). Interpretation: In case of EPS if the trend is positive, then the bank is either generating an increasing amount of earnings or buying back its stock. Conversely, a declining trend can signal to investors that the bank is in trouble which can lead to a decline in the stock price. There was denomination of share (face value) from tk. 100/- to 10/- has been changed on 05.01.2013 and the EPS has been calculated based on new number of shares as on 31.12.2012.In the above table no- 2.12.3 and figure no- 2.12.3 of Earnings per Share of Uttara Bank Limited we see a huge change in EPS between 2011 and 2012 to 2015 because of this split. The trend of EPS was decreasing in nature in the last five years. The main reason behind this is the gradual increase in the number of shares outstanding which was higher than the increase in Earnings available for common stockholders. 69.19 5.4 5.74 3.74 3.6 0 20 40 60 80 2011 2012 2013 2014 2015 Earnings Per Share Years
  21. 21. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 21 2.12.4 Payout Ratio The payout ratio or dividend layout ratio is the percentage of a company’s earnings paid out to investors as cash dividends. The payout ratio is calculated as the percentage of earnings paid out as dividends. Payout Ratio = Cash Dividends / Net Earnings for the period × 100 The Payout Ratio of Uttara Bank Limited from 2012-2015 are given below:- 2012 2013 2014 2015 20% 20% 15% 15% Figure 2.12.4: Payout Ratio. Figure 2.12.4: Payout Ratio. Interpretation: From the trend of Payout Ratio showed in table no- 2.12.4 and figure no 2.12.4- we see that the rate was high in 2012 and 2013 with a value of 20% because of higher earnings. But in 2014 there was fall in the bank’s earnings. For this reason the rate of dividend fallen and it continued to 2015. 20.00% 20.00% 15.00% 15.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 2012 2013 2014 2015 Payout Ratio Years
  22. 22. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 22 2.12.5 Debt to Total Assets Ratio Debt to Total Assets Ratio is laid out the percentage of a company total asset the change into total debt. The ratio is calculated as follows: Debt to Total Assets Ratio = Total Debt / Total assets× 100 The Debt to Total Assets Ratio of Uttara Bank Limited from 2011-2015 are given below:- 2011 2012 2013 2014 2015 91.37% 89.43% 90% 92.08% 92% Figure 2.12.5: Debt to Total Asset Ratio. Figure 2.12.5: Debt to Total Asset Ratio. Interpretation: The higher the percentage of debt to total asset ratio, the greater risk that the company may unable to meet its maturing obligations. From the trend of Debt to Total Assets Ratio of UBL showed in table no-2.12.5 and figure no- 2.12.5 we see that the bank has financed a large amount of its total assets with debt. All of the years except 2012, having 90% or more than 90% debt to total asset ratio. The ratio was highest during 2014 with a higher value of debt that is tk. 1, 13,884 million. The main reason behind this high debt to total asset ratio is the increasing amount of deposits of UBL. 91.37% 89.43% 90.00% 92.08% 92.00% 88.00% 88.50% 89.00% 89.50% 90.00% 90.50% 91.00% 91.50% 92.00% 92.50% 2011 2012 2013 2014 2015 Debt to Total Assets Ratio Years
  23. 23. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 23 2.12.6 Financial Highlights of UBL at a Glance (BDT in Million/Percentage) SL. Particular 2015 2014 2013 2012 2011 Income Statement 01. Gross Income 15,245.1 13,674.3 10,668.2 8768.2 7654.4 02. Gross Expenditure 12,109.7 10412.9 7517.9 5701.3 5140.5 03. Gross profits 3135.4 3261.4 3150.3 3066.9 2513.9 04. Pre Tax Profit 2680.4 2536.4 3000.3 2801.9 2188.9 05. Post Tax Profit 1310.4 1236.4 1650.3 1551.9 1105.2 Balance Sheet 06. Authorized Capital 6000.0 6000.0 5000.0 5000.0 3200.0 07. Paid up Capital 3637.1 3306.4 2875.2 2396.0 1597.3 08. Reserve Fund and other Reserves 7042.3 6490.5 6758.8 6214.8 4609.6 09. Shareholders’ Equity 10679.4 9796.9 9634.0 8610.8 6206.9 10. Deposit 111300.1 93658.6 72152.4 65868.0 59387.3 11. Advances (Gross) 64829.8 61328.6 54010.3 48672.7 39451.4 12. Investment 45749.5 41998.2 22894.7 18591.1 22502.5 13. Guarantee Business 2566.9 1878.6 1806.6 1759.1 1633.5 14. Export Business 14306.0 14192.9 15588.5 12986.7 15096.9 15. Import Business 40336.8 35418.6 33037.6 29614.5 29129.3 16. Foreign Remittance 44301.3 43585.6 37848.7 43200.7 44635.3 17. Fixed Assets 3204.3 2843.4 2762.2 2798.1 1088.4 18. Total Assets 132385.5 123790.6 97417.9 81451.8 71946.0 19. Classified Loan & Advances 5209.5 5161.9 2821.9 2678.7 2842.0 20. Total Off Balance Sheet Exposures 18775.9 12005.3 9860.0 9377.6 8560.5 BIS Capital Measures 21. Required Capital 8195.2 7518.7 6865.6 6287.4 3688.2 22. Actual Capital 10203.8 9300.6 9117.4 7912.7 5829.0 Credit Quality 23. Required Provision Loan & Advances 1357.7 1740.9 1062.4 923.9 889.7 24. Provision Maintained 1419.5 1803.5 1092.0 952.0 910.1 25. Required Prov. against off Balance Sheet Exposures 187.8 120.0 98.6 93.8 85.6 26. Provision Maintained 188.0 120.1 111.6 101.7 101.7 Share Information
  24. 24. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 24 27. Earnings Per Share (EPS) 3.60 3.74 5.74 5.40 69.19 28. Market Value Per Share 31.10 38.10 77.80 166.08 145.03 29. Price Earnings Ratio (Time) 8.64 10.19 13.55 30.76 2.1 30. Book Value Per Share 29.36 29.63 33.51 29.95 25.91 0perating Performance Ratio 31. Advance Deposit Ratio 0.58:1 0.65:1 0.75:1 0.74:1 0.66:1 32. Total Advance/Class. Advance (%) 8.04% 8.42% 5.22% 5.50% 7.20% 33. Total Adv. /Class. Advance (net) % 5.85% 4.32% 3.20% 3.54% 4.90% 34. Income From Equity (%) 12.27% 12.62% 17.13% 18.02% 17.80% 35. Income from Assets (%) 0.99% 1.00% 1.69% 1.91% 1.54% Table 2.12.6: Financial Highlights of UBL.
  25. 25. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 25 3. Theoretical Framework 3.1 Literature Review Review of literature means reviewing research studies or other relevant preposition in related area of the study so that all past studies, their conclusions and deficiencies may be known and further research can be conducted. It is secondary sources and such, and do not report any new or original experimental work. Its ultimate goal is to bring the researcher up to date with current literature on the topic and forms the basis or another goal, such as further research that may be needed in the area. Review of literature has vital relevance with any research work due to literature review the possibility of repetition of study can be eliminated and another dimension can be selected for the study. The literature review helps researcher to remove limitations of existing work or may assist to extend prevailing study. Several researches have been conducted to analyze the different aspects of E- Banking of commercial banks in Bangladesh and abroad. But there are very few research and literature available on the subject related to financial regulatory issues and its impact on Bangladeshi banks. The available literature and research are divided into three major parts according to the area of research i.e. literature related to: I. Review of previous history related to E- banking & online banking. II. Review of ICT Act- 2006 in Bangladesh. III. Review of Regulatory Issues provided by Bangladesh Bank related to e-banking & online banking. So far research has been conducted on ways to measure and improve customer satisfaction, measuring & ensuring customer satisfaction of Bank clients, tools of customer satisfaction. The reviewed researches to prepare this report are: “Customer Satisfaction across Organizational Units” by Edward C. Malthouse, James L. Oakley, Dawn Iacobucci and Bobby J. Calder; “How to Measure Customer Satisfaction” by Murali Chemuturi; “Customer Satisfaction Measurement in The Private Bank Sector- A study on Greece” by G. Mihelis, E. Grigoroudis, Y. Siskos, Y. Politis and Y. Malandrakis; “Measuring Customer Satisfaction in The Banking Industry” by Dr. Manoj Kumar Dash and D.M. Mahaptra. One thing to noticeable here is all of these researches has been conducted based on foreign organization or banks. Several books have been also published on the topic customer satisfaction like “Handbook of Customer Satisfaction Measurement” by Nigel Hill, “Ensuring customer satisfaction” by Tim Brooks etc. The only research conducted on Bangladesh about customer satisfaction is “Customer Satisfaction Measurement for The State-Owned Banks in the Developing Countries – The Case of Bangladesh” by Muhammad Saifuddin Khondaker and Monir Zaman Mir. I. History The e-banking business model started back in the 1980’s, and it evolved through three main phases that can be summarized as follows:
  26. 26. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 26 The Eighties: The early beginning Modern e-banking first appeared in New York in the early 1980’s, where it was offered by major banks in that city, such as Citibank and Chase Manhattan. The United Kingdom banks started to adopt the concept in 1983 where the Bank of Scotland was the first to introduce it. Back then it required a computer terminal, a monitor, and a telephone line. It was also offered through a numeric keypad on a telephone enabling sending messages to the bank. The early services were very basic ones such as viewing your bank statements and paying your bills online. It was not a full transaction banking service; however, it paved the way for the more comprehensive and sophisticated e-banking services that we see today. The Nineties: Modern Internet Banking In the 1990’s, the use of internet evolved when more people owned computers and were connected to the dial-up home internet. The first bank to offer the most comprehensive e- Banking services was the Stanford Federal Credit Union bank in 1994. This technological evolution and the spread of home internet usage meant customers enjoyed 24/7 e- Banking services. On the other hand, many customers during the 1990’s didn’t trust the concept enough to make serious and substantial monetary transactions and did not think the internet banking is safe enough. This triggered a massive effort and investment by the offering banks to develop more security features for their online banking services and promoting them in the market. The 2000’s: The growth and acceptance The first bank to reach three million online banking customers was the Bank of America in 2001. Throughout the 2000’s on-line banking started to grow and become more acceptable by customers. It covered most of the banking services range. We also had our first “on-line only” banking firms that offered better interest rates and more features to their clients taking advantage of the cost savings achieved by the “Digital Firm” business model. E- Banking versus Other Terms While e-banking can be described as the “umbrella” term, it is used interchangeably when people refer to one or more forms or components of e-banking such as: Virtual banking, on- line banking, cyber-banking, net-banking, interactive-banking, web-banking, phone-banking, PC-banking, and remote electronic banking. In the following paragraphs the main types of e- banking will be reviewed in more detail. ATM (Automatic Teller Machine) In 1969, the first ATM was offered in the public dispensing cash to customers at Chemical Bank in Rockville Center, New York. It revolutionized the banking industry by eliminating the need to visit a bank to conduct basic financial transactions. In the 1980’s the machines provided many banking transactions and became widely acceptable and even popular amongst the clients. They provided many services provided by bank tellers on 24/7 basis,
  27. 27. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 27 such as: deposits, withdrawals, transfer, account balances inquiries, requests for cheque books, account statements, etc. Using an ATM requires an ATM card and a personal identification number (PIN). They provide basic banking services such as described in the paragraphs 6.2.2, 6.2.3 and 6.2.4. Telephone Banking In the 1970’s banking customers started to use their home phones to dial the phone to check their account balances, transfer funds, and pay bills. It provided 24/7 services, however, it did not provide visual features while conducting the transactions. Customers could listen to the transaction acknowledgements, but they could not view them. Of course, this was before the smart-phone era back in the 1970’s. In general, there are two types of phone banking: 1) Operator Services: for customers with very complicated inquiries needing personnel attention and cannot be covered by automated services, or customers who are not too comfortable with automated services and needed engagements by human personnel. 2) Automated Services: for functions that can be conducted by the automated system without the need for human operators. This became less applicable in today’s phone-banking with the evolution and development of smart-phones with internet connection and software applications. Home Banking In the early 1970’s home banking was offered through touch-tone telephones for very basic banking transactions. During that era, it was considered “home banking” and not phone- banking. In mid-1980’s banks offered more advanced home banking services to customers by installing software in customer’s Personal Computers (PC) that enabled them to connect to the bank through a dial up connection. It was a sufficient enough secure channel; however, it provided a limited range of services. After 1985, this service was not popular anymore and was not widely spread because it required proprietary systems and huge technology investments, so very few banks managed to provide it. In addition to that, the PC was still not widely spread. Online Banking This method offers a full range of advanced banking services by directly accessing the bank website using the internet browser (either through PC or Phone connected to the internet). This resulted in having lesser walk-in customers as they enjoyed full services on 24/7 basis. The services were provided through a portal, and relied on digital signatures and other safety and security measurements. Its main benefits to the customers and the banks can be summarized by the following:  Despite the technical set-up and maintenance costs, the internet banking had reduced the traditional banking costs enabling more profitability
  28. 28. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 28  Enabled offering more than banking services on the websites; such as tax services, where customers can fill out the tax application online, calculating the taxes, etc.  Customers benefiting from the time and place shifting 24/7 services.  Allows customers to be alerted via email and phone of updates and changes in their banking dealings.  Cost efficiencies passed on to customers with lesser fees and charges than traditional banking. Banks to the banks but they vary such as cars, gold, mortgage, land, silver, etc. The way Bill Gates (2008) announced that “banking is essential, banks are not”. This quotation means that the traditional bank branch is going to vanish in order to be surrogated by electronic banking which continue to attract new users. The banking industry believed that by adopting new technology, the will be able to improve customer service level and tie to their customer closer to the bank. Pikkarainen, Karjaluoto, and Pahnila, (2004) defines internet banking as an internet portal, through which customers can use different kinds of banking services ranging from bill payment to making investment’. II. According to ICT act 2006 Sec 56 Hacking or access without authorization If any person: A) Does any kind of offence knowing, it will hamper the resource, erase or change any computer system which will loss public assets. B) Access into any computer, server, and network system without authorization. It should treat as hacking crime/offence. Penalty: Maximum 10 year, one crore taka or both of this penalty Sec 61 penalty of accessing in restricted system Unauthorized access into any computer system knowing that it is restricted by controller of government should be treated as unauthorized access. Penalty: Maximum 10 year, 1, 00,000 taka or both of this. Sec 54 penalty of destruction into computer, computer system, etc Damage any file, resource, document, data, program, network system should be treated as a crime. Penalty: Maximum 10 year, 1, 00,000 taka or both of this.
  29. 29. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 29 III. Regulatory Issues Approval from Bangladesh Bank  Without having approval from Bangladesh Bank no bank is allowed to do such business.  Banks willing to provide Mobile Financial Services shall seek prior approval from Bangladesh Bank, with full details of the services including tentative implementation schedule. Banks shall have to submit agreement(s)/MOU(s) containing Service Level Agreement (SLA) signed between banks and their partners/agents before launching the product.  The Cash Points/Agents shall have to be selected by the bank and a list of the Cash Points/ Agents with their names and addresses shall have to be submitted to the Department of Currency Management and Payment System (DCMPS), Bangladesh Bank and will be updated on monthly basis.  At any point of time, the relevant balance in bank book shall be equal to the virtual balance of all registered mobile accounts shown in the system. Banks will be the custodian of individual customers’ deposits.  The inward foreign remittance (credited to Nostro Accounts of Banks) transfer arrangement through designated Cash Points/Agents will be used only for delivery in local currency.  The platform should not be used for cross border outward remittance of funds without prior approval from Bangladesh Bank.  Bangladesh Bank may withhold, suspend or cancel approval for providing MFS services if it considers any action by any of the parties involved in the system detrimental to the public interest 3.2 Benefits from the Banks’ Point Of View From the banks’ point of view, the first benefits for the banks offering e-banking services was better branding and better responsiveness to the market. The other benefits were possible to measure in monetary terms. The main goal of every company was to maximize profits for its owners and banks were not any exception. Automated e- banking services offered a perfect opportunity for maximizing profits. 3.3 Benefits from the Customers’ Point Of View The main benefit from the bank customers’ point of view was significant saving of time by the automation of banking services processing and introduction of an easy maintenance tools for managing customer’s money. The main benefits of e- banking were as follows:  Increased comfort and time saving-transactions made 24 hours a day, without requiring the physical interaction with the bank.  Quick and continuous access to information.
  30. 30. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 30  Corporations had easier access to information as they checked on multiple accounts at the click of a button.  Better cash management.  E-banking facilities speed up cash cycle and increases efficiency of business processes as large variety of cash management instruments is available on Internet sites of banks. Private customers looked for slightly different kind of benefits from e-banking. Overall we can say that, the benefits are many. For the online banking customer, the convenience factor rates high. No longer does a person have to wait for the bank statement to arrive in the mail to check account balances. One can check the balance every day just by logging onto one’s account. In addition to checking balances and transactions, one can catch discrepancies in the account right away and deal with them swiftly. The best part is that this can be done anywhere! As long as one has Internet access, one can practice online banking. All the online banking facilities are not till available in Bangladesh. Since bills are paid online, the necessity of writing checks, affixing postage and posting the payment in the mail is eliminated. Once the amount is entered and the payee is checked off, the funds are automatically deducted from the payer’s choice of account. Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also minimal. While there is usually a fee for online banking, it can be extremely low. Those who partake in online banking all agree it’s worth every penny. Online banking also eliminates paper waste, which is a plus not only for those who have to handle all the paper work, but also for the environment. 3.4 List of Online Product and Services of UBL Deposit Product: Savings Account, Smart Savings Account, Super Saving Plus – More Money, Current Account, Special Notice Deposit (SND) Account, Pension Savings Scheme (PSS), Double Return Deposit Scheme (DRDS), Millionaire Dream Plan (MDP). SMS Banking: This service allow customer to do some banking activities through SMS from their mobile. The services are as follows-  Check account balance  Short Statement of last 5 transaction POS: Point of Sales Service for the customer who wants to withdraw money from any branch using their card. Card Transaction: This product allows customer to withdraw money anytime from ATM booth. Here, customer can do account transaction, balance enquiry etc. They don’t need to carry much cash with them.
  31. 31. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 31 Cash, Cheque Deposit & Withdraw: Customer can deposit cash and cheque in any branch of the bank. A customer can also withdraw money from any branch whether he has an account in that branch or not. Internet Banking: This service allow customer to do some banking activities through internet from his home or office or anywhere of the world. The services are as follows-  Check account balance  View and verify transactions on account View Statement  Print Account Summary Print Account Statement  View Check-Book usage status View & update short profile 3.5 Software Uttara Bank Ltd have produced a completely new web enable Core Banking Application Software which can be compared to internationally recognized packages. "Bank Ultimus" is a local product with international flavor, designed strictly in accordance with the dictates of international standard, incorporating all features. 3.6 Benefits of “Bank Ultimus” Benefits Activities Accounts 1) Account openings. 2) Cancellations. Credit Card Applications and Account Maintenance 1) Loan approvals. 2) Post approval activities for mortgage loans, personal loans, car loans and private enterprise loans. Services 1) Product consultations. 2) Promissory note guarantees. 3) Change of rates. 4) Fund transfers. 5) Investigation of accounts. 6) Claims management. Costs 1) Maximizes cost reductions, 2) process automation requirements to minimize training costs Others 1) Provides for growth. 2) Manages change. 3) Executes an integrated business strategy. 4) Manages change effectively as requirements, laws, processes, and regulations change. 5) Provides a structured but customizable environment to extend to other industry. 6) Increased productivity for employees 7) Error reduction and elimination for data input 8) Increased customer satisfaction and faster response
  32. 32. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 32 4. Analysis of Customer Satisfaction on Electronic and Online Banking Performance. 4.1 Analysis of Questionnaires 4.1.1 What were the most important reasons you opened an Internet bank account? Now banks are offering online banking facilities to their customer with the help of technological development. Customer are also interested to take this facility. Several factors influence them to open internet banking account. The table below shows the respondent opinion about this matter. Particulars UBL SCB PBL EBL DBBL Total Percent Convenience 4 4 5 14 11 38 38 Curiosity 0 0 0 0 0 0 0 Safe and secure 5 16 7 4 5 37 37 Low service charge 8 0 0 0 0 8 8 Easy maintenance 3 0 8 2 4 17 17 Table 4.1.1: what were the most important reasons you opened an Internet bank account? Figure 4.1.1 what were the most important reasons you opened an Internet bank account? Interpretation: This Graph represents the single most important reason to open an internet bank account rather than traditional Bank account. Among 100 respondent 38% opens their internet banking account for convenience, 37% for Safety reason and 17% for easy way to 38% 0% 37% 8% 17% 0% 5% 10% 15% 20% 25% 30% 35% 40% Convenience Curisity Safe and secure Low Service Charge Easy Maintanance Percentage
  33. 33. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 33 maintain their bank account. So the most important reason are convenience and security where people are ready to pay higher service charge as only 8% people prefer for low service charge. Interpretation: This graph compare between banks performance. In case of UBL, low service charge is the most important reason to open internet bank account where safety is the most important reason for Standard Chartered Bank. 40% Customers of Uttara bank open account for low service charges. 80% of customers from SCB open their account for safety issue. Easy way to maintain banking transaction is the important reason for prime bank Ltd. Convenience is the most important reason for Eastern Bank Ltd and Dutch Bangla Bank Ltd. 70% of Customers from DBBL & 55% of customers from EBL prefer availability to open their internet bank account for convenience. 20% 20% 25% 70% 55% 0% 0% 0% 0% 0% 25% 80% 35% 20% 25% 40% 0% 0% 0% 0% 15% 0% 40% 10% 20% 0% 20% 40% 60% 80% 100% UBL SCB PBL EBL DBBL Comparison among Banks (Most Important Reason You Opened An Internet Bank Account) Convenience Curiosity Safe & secure Low service charge Easy to maintain my banking transaction activity
  34. 34. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 34 4.1.2 What was the single most important reason that you chose this particular bank as your Internet bank? In Bangladesh more than 57 Banks are operating and many new banks are coming. So people have a lot of option to open their bank account in different bank. The table below reflects the reason why customer choose this particular bank for their internet banking transaction. Option UBL SCB PBL EBL DBBL Total Percentage I have a traditional bank account with the same bank 18 4 11 5 3 41 41% The brand name of the bank 0 6 2 2 6 16 16% The excellent service offered by this bank 2 10 7 11 9 39 39% others 0 0 0 2 2 4 4% Table 4.1.2: what was the single most important reason that you chose this particular bank as your Internet bank? Figure 4.1.2: what was the single most important reason that you chose this particular bank as your Internet bank? Interpretation: This graph represents the most important reason to open bank account in this particular bank. In this matter customer considered the excellent service (39%) and their own traditional bank account (41%) in this particular bank as the most important reason. Only 16% considered brand name as their reason to open bank account on that particular bank. 41% 16% 39% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% I have a traditional bank account with the same bank The brand name of the bank The excellent service offered by this bank others Percentage
  35. 35. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 35 Interpretation: In case of Uttara bank Ltd. customer have traditional bank account in the same bank which is the most important reason to open bank account. 90% of Customers open their account in UBL for this reason but in other four banks excellent service offering is the top most reason to open bank account such as 55% of customers from EBL, 35% of customers from PBL, 50% of customers from SCB. Particular bank 30% Brand name is another important reason because customers of DBBL prefer excellent service 45%. 90% 20% 55% 25% 15% 0% 30% 10% 10% 30% 10% 50% 35% 55% 45% 0% 0% 0% 10% 10% 0% 20% 40% 60% 80% 100% UBL SCB PBL EBL DBBL Comparison among Banks (Single Most Important Reason that you Chose This Particular Bank) I have a traditional bank account with the same bank The brand name of the bank The excellent service offered by this bank others
  36. 36. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 36 4.1.3 How frequently do you use online banking services per month? It will help me to find out the customer dependency of online banking. The table shows the frequency of transaction. Customer has to present at bank for every single transaction. Now they can do it easily and they don’t have the hassle to present at bank more than10 to 15 times for their transaction. Option UBL SCB PBL EBL DBBL Total percent Less than 1 0 0 0 0 1 1 1% 1 to 3 times 10 0 2 0 6 18 18% 3 to 8 times 4 4 8 3 13 32 32% 8 to 12 times 5 8 7 12 0 32 32% over 12 times 1 8 3 5 0 17 17% Table 4.1.3: How frequently do you use online banking services per month? Figure 4.1.3: How frequently do you use online banking services per month? Interpretation: The graph represents no. of customer transaction per month. Most of the customer done their online transaction more than 3 times. In both case 32% of customers perform their transaction 3 to 8 time or 8 to 12 time and 17% over 12 times. It means they need to go to bank more than 12 times in a month for their transaction which is reduced by online banking transaction’s hassle. 1% 18% 32% 32% 17% 0% 5% 10% 15% 20% 25% 30% 35% Less than 1 1 to 3 times 3 to 8 times 8 to 12 times Over 12 times Percentage
  37. 37. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 37 Interpretation: In case of Uttara bank 50% of customers do their transaction 1 to 3 times where 40% standard chartered bank’s customers do their transaction 8 to 12 or over 8 to 12 time. In case of prime bank 40% and 65% from Dutch Bangla Bank do their transaction in 3 to 8 times per month. 60% of customers from EBL do their transaction 8-12 times per month. So in case of transaction matter Standard Chartered Bank is in top position as 40% of their customers do transaction much frequently. 0% 0% 0% 0% 5% 50% 0% 10% 0% 30% 20% 20% 40% 15% 65% 20% 40% 35% 60% 0% 5% 40% 15% 25% 0% 0% 10% 20% 30% 40% 50% 60% 70% UBL SCB PBL EBL DBBL Comparison among Banks (No. of Transaction) Less than 1 1 to 3 times 3 to 8 times 8 to 12 times
  38. 38. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 38 4.1.4 Which online features do you use regularly? This will help me to find out the most popular online banking services among the customers. The respondent’s opinion about this matter is given bellow. Option UBL SCB PBL EBL DBBL Total percent Pay bills 0 0 0 0 0 0 0% Make an account inquiry 10 0 2 0 1 13 13% Transfer funds between accounts 3 10 8 14 20 55 55% MT/DD/TT 7 10 8 6 5 36 36% Order check books 0 0 0 0 9 9 9% ATM 0 20 5 20 20 65 65% Table 4.1.4: Which online features do you use regularly? Figure 4.1.4: Which online features do you use regularly? Interpretation: This graph represents the popular online banking service. From the graph it can be seen that ATM is the most popular online feature. As 65% customer depends on ATM. The second important service can be the transfer of funds between accounts. Among 100, 55% customer use the online services for transferring their fund between accounts. 0% 13% 55% 36% 9% 65% 0% 10% 20% 30% 40% 50% 60% 70% Pay Bills Make an accont inquiry Transfer funds between accounts MT/DD/TT Order check books ATM Percentage
  39. 39. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 39 Interpretation: ATM is the most popular online feature for each and every bank except Uttara Bank and prime Bank. I found that most of the customers are unknown about the service provided by Uttara bank but in their bank website they claim that they provide ATM service. Transfer of Fund and wire transfer are also important features in most of the banking sectors. 0% 50% 15% 35% 0% 0% 0% 0% 50% 50% 0% 100% 0% 10% 40% 40% 0% 25% 0% 0% 70% 30% 0% 100% 0% 5% 100% 25% 45% 100% 0% 20% 40% 60% 80% 100% 120% Pay bills Make an account inquiry Transfer funds between accounts MT/DD/TT Order check books ATM Comparision Among Banks (Popular Online Features) DBBL EBL PBL SCB UBL
  40. 40. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 40 4.1.5 Would you use your mobile phone to do your mobile banking? Mobile banking is a new online feature which is offered by some specific banks. The table reflects the respondent opinion about the acceptance of mobile banking. Option UBL SCB PBL EBL DBBL Total percentage Yes 13 20 14 18 17 82 82% No 1 0 6 2 2 11 11% N/A 6 0 0 0 1 7 7% Table 4.1.5: Would you use your mobile phone to do your mobile banking? Figure 4.1.5: Would you use your mobile phone to do your mobile banking? Interpretation: From this graph we can see this 82% of customers agree to use their mobile phone for their banking service. Among 100 respondents 82% will use their mobile for banking service but 11% of them are not interested to use their mobile and another 7% did not want to give their opinion. So it’s clear from graph that mobile banking will be helpful as most of the customers will take the service. 82% 11% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Yes No N/A Percentage
  41. 41. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 41 Interpretation: From the graph we can see that in Standard Chartered Bank among 20 respondents all agree to use their mobile phone for banking services. Most of the Customers from Eastern Bank and Dutch Bangla Bank also wanted to accept mobile banking service. From 85% from DBBL, 90% from EBL and 70% from PBL agree to use their mobile phone but some banks like Dutch Bangla Bank and Prime Bank are already using some specific mobile banking services. 65% 100% 70% 90% 85% 5% 0% 30% 10% 10% 30% 0% 0% 0% 5% 0% 20% 40% 60% 80% 100% 120% UBL SCB PBL EBL DBBL Comparison among Banks (Mobile Banking) Yes No N/A
  42. 42. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 42 4.1.6 Which of the following mobile banking features would you use? Option UBL SCB PBL EBL DBBL Total Percentage Balance Inquiry 9 12 10 8 20 59 59% Utility Bill Payment 2 4 3 6 8 23 23% Email and Text Alerts 11 6 6 12 20 55 55% Order Cheque Book 0 0 0 0 0 0 0% Internal Account Transfer 0 2 1 0 15 18 18% Table 4.1.6: Which of the following mobile banking features would you use? Figure 4.1.6: Which of the following mobile banking features would you use? Interpretation: From this graph it can be identified which will be the popular online banking services. Most of the customers will try to get their balance information from mobile banking. 59% will take this service and 55% will take e-mail and text alert service which already exists in most of the banks. 23% of customers will use it for utility bill payment and 18% for internal account Transfer. 59% 23% 55% 0% 18% 0% 10% 20% 30% 40% 50% 60% 70% Balance inquiry Utility bill payment E-mail & text alerts Order cheque book Internal accont Percentage
  43. 43. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 43 Interpretation: This graph shows the popular mobile banking service among the banks. In case of DBBL 45% of respondents will take balance inquiry and 55% e-mail and text alert service. 50% from PBL, 40% from EBL, 60% from SCB want balance inquiry service in their mobile phone. 30% Customers from SCB & PBL want e-mail and text alert service. More or less 20% customers want utility bill service. So from the graph it indicates that balance inquiry and text alert are the most popular services. 45% 60% 50% 40% 100% 10% 20% 15% 30% 40% 55% 30% 30% 60% 100% 0% 0% 0% 0% 0%0% 10% 5% 0% 75% 0% 20% 40% 60% 80% 100% 120% UBL SCB PBL EBL DBBL Comparison among Banks (Popular Mobile Banking Service) Balance inquiry Utility bill payment E-mail and text alerts
  44. 44. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 44 4.1.7 Do you suffer any security and privacy threat in accessing online banking? Online banking transactions are conducting through more secured way which is the most significant advantage for the customer. Customer’s opinion about the security matter of online banking are given bellow. Option UBL SCB PBL EBL DBBL Total Percentage Yes 2 1 1 1 1 6 6% No 13 14 14 15 16 72 72% N/A 5 5 5 4 3 22 22% Table 4.1.7: Do you suffer any security and privacy threat in accessing online banking? Figure 4.1.7: Do you suffer any security and privacy threat in accessing online banking? Interpretation: This graph shows whether the customer face any security/ safety threat or not. In this case 72% of customers feel secured about the online banking service where only 6% says they are facing problem. 22% of customers did not want to give their opinion about this matter. 6% 72% 22% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No N/A Percentage
  45. 45. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 45 Interpretation: This graph discloses the security factor among 5 banks. In this case we can see that most of the DBBL customers are much more secured than other but the percentage is closer to each other. Customers from SCB and PBL give same opinion about this matter. From this graph it reflects that DBBL is much more secured than EBL and other Banks. It shows 70% from SCB & PBL, 75% from EBL, 80% from EBL respectively. 10% 5% 5% 5% 5% 65% 70% 70% 75% 80% 25% 25% 25% 20% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% UBL SCB PBL EBL DBBL Comparison among Banks (Security Issue) Yes No N/A
  46. 46. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 46 4.1.8 Types of characteristics you want to see in a bank’s representative? Option UBL SCB PBL EBL DBBL Total Percentage Friendly and courteous manner 14 18 17 16 17 82 82% Willingness to listen and help 12 15 16 14 15 72 72% Provide guidance and advices 12 18 15 15 16 76 77% Recognition of you as valued customer 18 18 17 18 19 90 90% Table 4.1.8: Types of characteristics you want to see in a bank’s representative? Figure 4.1.8: Types of characteristics you want to see in a bank’s representative? Interpretation: This graph depicted what types of characteristics customer want to see in a bank representative. 90% of customers want to see him or her as a valued customer. They like to see that they are considered with proper value. 82% wants friendly and courteous manner. 76% of proper service with proper guidance is present in a representative. 82% 72% 76% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Friendly & courteous manner Willingness to listen & help Provide guidence and advices Recognition of you as valued customer Percentage
  47. 47. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 47 Interpretation: The comparison graph shows that position of SCB is comparatively in a standard & suitable position in case of four characteristics than that of other banks. Here it shows the 90% in recognition of you as valued customer, provide guidance & advice, friendly & courteous manner but some less in willingness to listen & help. Moreover, UBL should improve in all cases of customer services. 70% 90% 85% 80% 85% 60% 75% 80% 70% 75% 60% 90% 75% 75% 80% 90% 90% 85% 90% 95% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% UBL SCB PBL EBL DBBL Comparison among Banks (Standard Characteristics of Bank's Representative) Recognition of you as valued customer Provide guidance and advices Willingness to listen and help Friendly and courteous manner
  48. 48. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 48 4.1.9 Rate Customer Care Unit Performance. Customers remain in a driving position of any kind of organization. So banks need to deal with customer’s errors and problem very wisely. Customer care unit is dedicated to solve customer problem. The table given below figure out the respondent’s satisfaction level about customer care unit. Option UBL SCB PBL EBL DBBL Total Percentage Very satisfied 0 3 2 1 0 6 6% Satisfied 7 15 10 14 13 59 59% Neutral 8 2 7 4 3 24 24% Dissatisfied 5 0 1 1 4 11 11% Very Dissatisfied 0 0 0 0 0 0 0% Table 4.1.9: Rate Customer Care Unit Performance. Figure 4.1.9: Rate Customer Care Unit Performance. Interpretation: This graph discloses the customer reflection about the customer care unit. 59% of customers are satisfied with the service where 11% is dissatisfied and only 6% is very satisfied. 24% of customers are in neutral position. So overall customer care unit performance is good enough and satisfactory. 6% 59% 24% 11% 0% 0% 10% 20% 30% 40% 50% 60% 70% Very satisfied Satisfied Neutral Dissatisfied Very dissatisfied Percentage
  49. 49. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 49 Interpretation: From the graph it indicates that Standard Chartered Bank performance is higher than other four banks and Uttara Bank contributes the poor performance. Most of the UBL customers did not want to give their opinion. And 5% is dissatisfied with the customer care unit performance. Eastern Bank provides better service according to their customer. DBBL also provides good service. 0% 15% 10% 5% 0% 35% 75% 50% 70% 65% 40% 10% 35% 20% 15% 25% 0% 5% 5% 20% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% UBL SCB PBL EBL DBBL Comparison among Banks (Customer Care Unit Performance) Very satisfied Satisfied Neutral
  50. 50. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 50 4.1.10 Do you think bank need to increase their promotional activity to attract more customers for internet banking? Customers need to know about the service provided by the bank. If they are well known about different services and their advantage then they can be interested to take those particular services. So promotion is an important factor. The table given below represents the respondent’s opinion about this matter. Option UBL SCB PBL EBL DBBL Total Percent Yes 15 17 16 18 20 86 86% No 3 2 4 2 0 11 11% N/A 2 1 0 0 0 3 3% Table 4.1.10: Do you think bank need to increase their promotional activity to attract more customers for internet banking? Figure 4.1.10: Do you think bank need to increase their promotional activity to attract more customers for internet banking? Interpretation: The graph represents that 86% of customers think every bank needs to increase their promotional activity to attract more customer. Most of the customers are unknown about the service provided by UBL. They are asked for specific promotional activities to know about the service provided by the bank. Only 11% gives negative opinion about this matter. 86% 11% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Yes No N/A Percent
  51. 51. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 51 Interpretation: It is shown in the graph that every DBBL customers agree to increase the promotional activity to attract more customers. Among 20 respondents all of them think DBBL need to increase more promotional activity as they are already investing to promote their service. EBL and PBL need to follow this procedure. Customers of SCB & EBL have same opinion 85% and 90%. But UBL needs to do this because they are transforming their branches from traditional to online which needs more promotion to gain popularity. Customer from UBL think they need to increase their 75% promotional activity. 75% 85% 80% 90% 100% 15% 10% 20% 10% 0% 10% 5% 0% 0% 0% 0% 20% 40% 60% 80% 100% 120% UBL SCB PBL EBL DBBL Comparison among Banks (Importance of Promotional Activity) Yes No N/A
  52. 52. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 52 4.1.11 Overall, how satisfied are you with the online banking service? This will help to find out the customer satisfaction level which is very important factor to retain customer in a long run. If a bank wants to compete in the market they have to provide quality service and satisfy their customer. The table given bellow shows the customer satisfaction level of different banks. Option UBL SCB PBL EBL DBBL Total Percent Very satisfied 0 5 4 2 2 13 13% Satisfied 9 14 13 15 13 64 64% Neutral 8 1 2 2 3 16 16% Dissatisfied 3 0 1 1 2 7 7% Very Dissatisfied 0 0 0 0 0 0 0% Table 4.1.11: Overall, how satisfied are you with the online banking service? Figure 4.1.11: Overall, how satisfied are you with the online banking service? Interpretation: This is the final outcome of the survey to find out the satisfaction level of customer. The most positive thing is those 64% of customers are satisfied with the online service provided by several banks and 13% is very satisfied. So overall 77% of customers has positive result about the online banking service where only 7% is dissatisfied and 16% has neutral view about this matter. 13% 64% 16% 7% 0% 0% 10% 20% 30% 40% 50% 60% 70% Very Satisfied Satisfied Neutral Dissatisfied Very dissatisfied Percent
  53. 53. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 53 Interpretation: The graph reflects that customer satisfaction level is high in Eastern Bank and Standard Chartered Bank. Among 20 respondents, 75% of respondents from EBL and 70% from SCB are satisfied with the online banking service. 25% of respondents from SCB claims that they are very satisfied with the online banking service. 65% of respondents from PBL are very satisfied with the online banking service. But UBL performance is poor comparing to other banks. The satisfaction level is only 45% and 40% give neutral opinion and 15% is dissatisfied. 0% 25% 20% 10% 10% 45% 70% 65% 75% 65% 40% 5% 10% 10% 15%15% 0% 5% 5% 10% 0% 0% 0% 0% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% UBL SCB PBL EBL DBBL Comparison among Banks (Customer Satisfaction) Very satisfied Satisfied Neutral
  54. 54. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 54 4.1.12 how frequently do your customers get response from you when they complain about banking service? Customer care unit is available to solve any problem of customer and provide guidance. Customer satisfaction level depends on how quickly and promptly the agent responds to their problem. UBL SCB PBL EBL DBBL As per requirement Within 24 Hours Within 24 Hours Within 48 Hours Within 48 Hours Interpretation: Here the table shows us the how promptly the banks response to their customers while they make any complain about online banking services. Though time requires solving any problem regarding online banking varies on the type of problem. Still among five banks Prime Bank Limited and Standard Chartered Bank do the quickest response and they respond to their customer’s complain within 24 hours. Whereas Eastern Bank Limited and Dutch-Bangla Bank Limited respond to customers complain within 48 hours. But in this matter Uttara Bank has their own complain cell .They rely on the depth of the problem and response as per requirement. 4.1.13 what type of response are you getting from your customer and employee about online banking system? UBL SCB PBL EBL DBBL Appreciated Highly Appreciated Appreciated Highly Appreciated Highly Appreciated Interpretation: To figure out how the customers and Employees of the bank are evaluating online banking system the above table has been represented. Uttara Bank Limited & Prime Bank Limited considers that their customers appreciate Online Banking system .Whereas the customers and employees of Eastern Bank Limited, Standard Chartered Bank Limited and Dutch Bangla Bank Limited have already highly appreciated about online banking operation system. 4.1.14 what are the problems faced by both customer and employee when transformation occurred? Interpretation: Some customers said that traditional banking is easy to carry out. Some internet banking users also support that traditional banking is easy to carry out than online banking because they are not much familiar with these services. One of the main problems is lack of awareness. People still think that their money is safer in their hand than online. When I described the benefit of online A/C to some client, I found different point of view of them. Online A/C has many advantages including: a customer needs not to come to bank every month. One customer who was a housewife said that she loved to come to bank every month. She also felt secure to deposit her money physically. This is not
  55. 55. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 55 her point of view only; many customers shared the same statement. It is very hard to change mentality. A huge number of customers taking banking services does not capable to bear the cost of additional equipment like computer, computer accessories, Internet etc. from their own organization or at home. Using Internet facility still very costly and people has little knowledge in operating computers. A few numbers of cyber cafe is available but for banking purpose customers do not feel safe to use these facilities. As a result total number of customers who are habituated in online banking systems are limited. Some customers come and asked the bank staff to write the deposit slip for them because they can’t write properly. It is very difficult to take those customers under the umbrella of online banking. Another problem is with internet connectivity and network. Sometime network is unavailable to make transaction activity. Employee are also facing problem:  The bank has to invest a lot of money for technology and investment. So at primary level it needs a lot of money for total setup.  Proper training is necessary but I experienced proper employee training is not available. When I was in intern at UBL Ramna branch only two or three employee took part in training session and the branch got migrated. After that only two trainers are available for three days to solve the queries of employee. Then when any employee faces any problem they have to communicate with trainer over mobile phone. Sometime they are not available so employees are not able to give proper service to the customer.  Employees are not used to with new technology and software which need to follow more step than before and ultimately it lessens their working speed. 4.1.15 what type of IT operation system does your organization is following now? For providing online transaction activity and other banking staff banks need to depend on IT operation system. The table given bellow shows the IT operation system used by different bank UBL SCB PBL EBL DBBL Centralized Centralized Partially Centralized Centralized Centralized Interpretation: Among five banks four of them have centralized IT operation system and one of them is partially centralized. Prime Bank Limited is partially centralized. Uttara Bank Limited, Eastern Bank Limited, Dutch Bangla Bank Limited, Standard Chartered Bank limited are fully centralized.
  56. 56. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 56 4.1.16 what kind of additional online products/services would you wish to be provided by your bank? Interpretation: Respondents wish they could carry out full transactions with their online banking with adequate security and also cross transaction with other financial institution. They felt that the present services provided by their bank is limited compared to what pertained in other parts of the world. 4.1.17 if you have any other comments or suggestions please feel free to say. Interpretation: Most of the customers run account in more than one bank. They complained that they get more online services facility in another bank than Uttara Bank. In case of ATM, some customers complain about unavailability and some customers about network. After any kind of transaction, customers want SMS notification. But their banks SMS notification alert is irregular. Some feel insecurity for that. Some customers mentioned that in case of balance transfer to some branches of the bank out of Dhaka city, the bank takes online charge, it should be free. Introducing new rule after opening an account is also disliked by most of the customers. They think in case of introducing any new rule the bank should consider about old customers.
  57. 57. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 57 4.2 Analysis of Uttara Bank’s Electronic & Online Banking Services Uttara Bank is one of the very first commercial banks which has recently introduced online banking services. From the beginning they are striving to provide with better quality service. Based on collected data Uttara Bank’s Online Banking services are being evaluated while comparing with other four banks. Centralized IT System: Uttara Bank Ltd. uses their centralized IT operation system which is under the control of their IT department and uses Bank Ultimus Software. This enables them to –  Control: One of the major advantages of centralized operation system is control. A centralized approach to information systems provides organizational focus for learning and for control. This is likely to produce higher quality information systems. It also enables the banks to solve decentralization problems of inadequate security, maintenance and documentation.  Safety and Security: Price is a major factor that influences consumer adoption of any product but customer considers availability with safety and security as most important reason. Though all four consider that the customer are pleased with the online charges but Uttara Bank Limited is charging very minimum amount for online services. In some cases like Savings account and other services they don’t change extra amount. Standard Chartered Bank, Prime Bank Limited, Dutch Bangla Bank Limited & Eastern Bank Ltd. charge for their services. But the real scenario says people are ready to pay for security and better quality service. Customer interest to change: Uttara Bank Limited receives customer who shows interest for internet banking service every day. Customer as well other staff wants mobile banking services in which other banks are offering. So they need to change if they want to compete with other bank which is enriched with more technology and facilities. Customer Service Quality: Customer opens their bank account as they have traditional bank account in Uttara bank but most of the customers want excellent service quality which forces customer to change their bank in the long run. Standard Chartered Bank attracts most of their customer because of their excellent service quality. Performance of Uttara Bank is not satisfactory in this case comparing to other four banks. Customer Care Unit: All other four banks have individual customer care unit except Uttara Bank Ltd. They have complain cell but customer are not satisfied with the performance of this complain cell. Lack of Promotional Activity: Promotional activity of Uttara Bank is very few. People are unaware about the product and services offered by Uttara Bank Ltd. For example-  ATM Services: ATM is the most popular online service which is offered by several banks. But this service is not much convenience in Uttara Bank. Even lots of people don’t know that Uttara bank has its individual ATM service.
  58. 58. “Customer Satisfaction on Electronic and Online Banking Performance of UBL” Department of Accounting and Information Systems, Comilla University. Page | 58  Locker Service: Uttara Bank offer locker services to their customers. But this service is available in some specific brunch. But most of the customer doesn’t know that Uttara Bank has a secured locker service. Lack of training: When any branch transforms from traditional banking to online banking the employee need proper training. But I experienced that the training facility is not proper in Uttara bank. So they have to contact over phone which devaluate their customer quality.

×