Rushnan Binte Amin-1020806(Spring 2014 internship report) (1)

CUSTOMER SWITCHING BEHAVIOR IN THE RETAIL BANKING
INDUSTRY IN CONTEXT OF A PRIVATE COMMERCIAL BANK IN
BANGLADESH
by
Rushnan Binte Amin
ID: 1020806
An Internship Report Presented in Partial Fulfillment
of the Requirements for the Degree
Bachelor of Business Administration
INDEPENDENT UNIVERSITY, BANGLADESH
May 2014

CUSTOMER SWITCHING BEHAVIOR IN THE RETAIL BANKING
INDUSTRY IN CONTEXT OF A PRIVATE COMMERCIAL BANK IN
BANGLADESH
by
Rushnan Binte Amin
ID: 1020806
has been approved
May, 2014
Mohammed Sohel Islam
Senior Lecturer
School of Business
Independent University, Bangladesh

LETTER OF TRANSMITTAL
May 8, 2014
Mohammed Sohel Islam
Senior Lecturer
School of Business
Independent University, Bangladesh
Subject: Submission of Internship Report
Dear Sir,
It is my pleasure to submit the Internship Report titled “Customer Switching Behavior in the
retail banking industry in context of a private commercial bank in Bangladesh” to you,
which I have prepared by performing 3 months internship at Mutual Trust Bank Ltd. to fulfill the
requirement of BBA program in the Independent University, Bangladesh. I got huge amount of
support and information for preparing my report properly. I also gathered different types of
information about banking practices which can be applied in real professional life.
Now I have placed this report before you for your kind approval. I hope that my report will
satisfy you. I have tried to give my best effort so that I can prepare a concrete report as per your
instruction. For Any kind of queries, I would be available at your convenience.
Sincerely Yours,
Rushnan Binte Amin
ID# 1020806

Acknowledgement
This report is the ending part of our BBA program and to enhance the capability to study. In the
field of practical organizational arena, a lot of efforts and study have done to make the report
reliable. This would have not been possible without the genuine support and assistance.
First of all, I want to pay my homage to the almighty Allah who made to capable to continue my
everyday task in the work place during the whole period of my internship. Afterward I want to
pay my special thanks to Mohammed Sohel Islam, Senior Lecturer, School of Business,
Independent University, Bangladesh under whom I have completed my internship report.
Without his guidance and proper assistance it would not possible to complete this report.
My acknowledgment will be incomplete and void if I do not mention some person’s name of
Mutual Trust Bank Ltd. I am highly grateful to Mr. Monzur Hassan, the branch manager and
Mrs. Fahmida Afroze, Deputy Manager who helped me to complete my internship program in
that company under their management. Furthermore I want to pay thanks to Ms. Tamanna Azim
Choudhury, JAVP, who gave me full support to work under her supervision in General Banking
Department of Mutual Trust Bank. I also want to pay thanks to Ms Sadia Rahman and Mr. Al-
Noor Rashid Mozumder, Assistant officers in GB for their full support to acquire some basic
knowledge about the different types of work of GB and for their help by providing some
valuable information required completing my report.
For successfully completion of my internship, I am really fortunate to get guidance and
supervision from my teachers, friends & others.

Table of content :
Content Page No.
Executive Summery 1
Part One: Organization Part
Introduction 2
History of the firm 3-4
Organization of the firm 5-10
Official Organ gram of the firm 11
Business operation of the firm 12-24
Part Two: Internship Outcome
Introduction 25-26
General Banking Department of Gulshan
Branch
26
My jobs and responsibilities 26-27
Cross-checking with different departments 28
Particular problem faced 28-29
Suggestions for overcome problems 29
Observations 30
Part Three: Research Part
Introduction 31-33
Problem Statement 34
Purpose of the study 35
Limitations 35
Literature Review 36-49
Conceptual Framework 50
Research Question and Hypothesis 51-52
Research Design 53-54
Methodology 55-68
Findings 69

Discussion 70
Significance of the study 71
Recommendation 72
Conclusion 73
Reference 74-78
Appendix 79-83
Table of figures :
Figures Page No.
1. Existing 94 branches of MTBL 5
2. Management hierarchy of MTBL
Gulshan branch
6
3. Management hierarchy of MTBL 8
4. Hierarchy of Board of Directors 9
5. Official Organ gram of MTBL 11
6. Conceptual framework 50

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Executive Summery:
Banks are the financial institutions licensed as lender and receiver of deposits regulated by the
national government or the central bank. As the most important financial institutions of a country
banks accept deposits from public and lend those deposits to others activities in the capital
market, provide necessary funds to the investors or businessmen that they need to continue their
business. Bangladesh is a third world country with an under developed banking system,
particularly in terms of the services and customer care. Mutual Trust Bank Ltd is one of the
leading banks in Bangladesh which was incorporated in 1999 and till now they have 94 branches
all over the country. They are developing their customer oriented strategies day by day to
compete successfully in the competitive retail banking environment.
Customers are the key concentration of every bank. A customer might move funds from one
bank to another if he/she is dissatisfied with the customer service at the first. The banking
industry must develop profitable, long-term relationships with its customers in order to survive in
the competitive retail banking environment.
This study investigates the effects of different factors such as price, reputation, service quality,
effective advertising competition, involuntary switching and distance on the customers’
switching behavior. Seven hypotheses were raised based on the literature review and primary
data was gathered from a sample of 30 through a questionnaire based survey. Data analysis was
done by SPSS software for analysis.
The objective of this report is to investigate how Mutual Trust Bank succeeds to retain their
customers, and handle the factors that influence customers to switch their banks.
During my internship, I found that there are several factors which the customers notice and take
seriously while taking services from MTBL which may cause customer switching. On the
contrary I also found some positive responses about several factors from the customers which
indicate strong relationship between the customers and the bank. Observing these different
attitudes of the customers I have decided to do a research on “Customer Switching Behavior in
the Retail Banking Industry in context of Private Banking Sector of Bangladesh.”

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Customer switching behavior in the retail bank industry.
1. Introduction:
The banking system at independence consisted of two branch offices of the former State Bank of
Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi
interests and three by foreigners other than West Pakistanis. There were fourteen smaller
commercial banks. Virtually all banking services were concentrated in urban areas. The newly
independent government immediately designated the Dhaka branch of the State Bank of Pakistan
as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating
currency, controlling credit and monetary policy, and administering exchange control and the
official foreign exchange reserves.
After the Liberation War of Bangladesh, the Bangladesh government initially nationalized the
entire domestic banking system and proceeded to reorganize and rename the various banks.
Foreign-owned banks were permitted to continue doing business in Bangladesh. The new
banking system succeeded in establishing reasonably efficient procedures for managing credit
and foreign exchange.
Bangladesh economy has been experiencing a rapid growth since the ‘90s. Industrial and
agricultural development, international trade, inflow of expatriate Bangladeshi workers’
remittance, local and foreign investments in construction, communication, power, food
processing and service enterprises ushered in an era of economic activities. Urbanization and
lifestyle changes concurrent with the economic development created a demand for banking
products and services to support the new initiatives as well as to make channel consumer
investments in a profitable manner. A group of highly acclaimed businessmen of the country
grouped together to respond to this need and established Mutual trust bank Limited in September
29, 1999.

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Company Profile of Mutual Trust Bank Ltd:
1.1 History of the firm:
The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a
public company limited by shares for carrying out all kinds of banking activities with Authorized
Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each.
The Company was also issued Certificate for Commencement of Business on the same day and
was granted license on October 05, 1999 by Bangladesh Bank under the Banking Companies Act
1991 and started its banking operation on October 24, 1999. As envisaged in the Memorandum
of Association and as licensed by Bangladesh Bank under the provisions of the Banking
Companies Act 1991, the Company started its banking operation and entitled to carry out the
following types of banking business:
(i) All types of commercial banking activities including Money Market operations.
(ii) Investment in Merchant Banking activities.
(iii) Investment in Company activities.
(iv) Financiers, Promoters, Capitalists etc.
(v) Financial Intermediary Services.
(vii) Any related Financial Services.
Registered Name of the Company
Mutual Trust Bank Limited

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Legal Form
The Company was incorporated on September 29, 1999 under the Companies Act 1994 as a
public company limited by shares for carrying out all kinds of banking activities with Authorized
Capital of Tk. 38,00,000,000 divided into 38,000,000 ordinary shares of Tk.100 each.
Company Registration No.
c38707(665)/99 on September 29, 1999
Bangladesh Bank Permission No.
BRPD (P)744(78)/99-3081 on October 5, 1999
Registered Office:
MTB Centre, 26 Gulshan Avenue
Plot 5, Block SE(D), Gulshan 1, Dhaka 1212
SWIFT CODE
MTBL BD DH
Corporate Website
www.mutualtrustbank.com

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1.2 Organization of the firm:
The Company (Bank) operates through its Head Office at Dhaka and 94 branches. The
Company/ Bank carry out international business through a Global Network of Foreign
Correspondent Banks.
Fig: Existing 94 Branches of MTBL

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MTBL Gulshan Branch:
Gulshan branch is the most profitable branch. More than 30 employees are working in this
branch. This Branch is an Authorized Dealer Branch. This branch is renowned for its Foreign
Exchange Department, General Banking & Credit Department. There are one SVP & one AVP
in this branch who are responsible for different department. This branch started its operation in
22th May, 2006.
Management Hierarchy of MTBL Gulshan Branch:
Fig: Management Hierarchy of MTBL Gulshan Branch

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Memberships of MTBL:
Metropolitan Chamber of Commerce and Industry, Dhaka (MCCI, D)
The Institute of Banker’s Bangladesh (IBB)
Bangladesh Foreign Exchange Dealer’s Association (BAFEDA)
Bangladesh Institute of Bank Management (BIBM)
International Chamber of Commerce Bangladesh Limited (ICCB)
Association of Bankers Bangladesh Limited (ABB)
Bangladesh Association of Publicly Listed Companies (BAPLC)
American Chamber of Commerce in Bangladesh (AMCHAM)
Primary Dealers Bangladesh Limited (PDBL)

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Management:
The management of the bank is vastly on a Board of Directors, for overall supervision and
directions on policy matters by the board. The power of general supervision and control of the
affairs of the bank is exercise by the president and managing director of the bank who is the chief
executive officer. Above all, the bank will be manned and managed by a galaxy of talented
professionals proficient in the individual fields and dedicated to the cause of the bank.
Management Hierarchy:
Fig: Management Hierarchy of MTBL

9
Board of Directors
In Mutual Trust Bank Limited, the board of directors has been conceived as the sources of all
power headed by its chairman. It is legislative body of the bank board can delegate its power and
authority to professionals, but cannot delegate, relinquish or avoid their responsibilities.
The board of directors of the bank consists of 13 members who are reputed business personalities
and leading industrialists of the country.

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The following are members of the MTB Board of Directors.
Mr. Rashed Ahmed Chowdhury, Chairman
Mr. M. A. Rouf, JP, Vice Chairman
Mr. Syed Manzur Elahi
Dr. Arif Dowla
Mr. Md. Hedayetullah
Mr. Md. Abdul Malek
Mr. Md. Wakiluddin
Mrs. Khwaja Nargis Hossain
Mr. Anjan Chowdhury
Mr. Q.A.F.M Serajul Islam
Mr. Anwarul Amin
Dr. Sultan Hafeez Rahman
Mr. Anis A. Khan, Managing Director & CEO

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1.3 Official Organ gram of MTBL:
Fig: Official Organ gram of MTBL

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1.4 Business operation of the firm:
Mission of MTBL:
We aspire to be the most admired financial institution in the country, recognized as a dynamic,
innovative and client focused company that offers an array of products and services in the search
for excellence and to create an impressive economic value.
Vision of MTBL:
Mutual Trust Bank's vision is based on a philosophy known as MTB3V. We envision MTB to
be:
One of the Best Performing Banks in Bangladesh
The Bank of Choice
A Truly World-class Bank
Mutual Trust Bank Limiter’s Strategic Objectives:
The main object of the Mutual Trust Bank Limited (MTBL) had been to offer an interest free
banking system in the financial market. Apart from that, the bank started its operation in the
country with a view to realizing the following objectives:
 To ensure inflow of funds at combination of least possible cost
 To maintain a discreet credit policy
 To enhance versatility and diversification through the penetration of new market
segments, thereby fulfillment unmet needs
 To extend financial assistance to the citizens, living at dispersed locations by expanding
the network of branches
 To practice stronger IT-driven initiatives that will meet the challenges and requirements
of the banks and its clients

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 To improve administrative and organizational structures in order to prepare the platform
for the best practices of corporate government.
 To enrich the banking sector with improved awareness on corporate social responsibility
 To provide extensive career opportunities through competitive pay and benefits and a
flexible environment.
Business Philosophy of MTBL
The philosophy of MTBL is to develop the bank into an ideal and unique banking institution.
The perception is that MTBL should be quite different from other privately owned and managed
commercial bank operating in Bangladesh. MTBL is to grow as a leader in the industry rather
than a follower. The leadership will be in the area of service, constant effort being made to add
new dimension so that clients get ‘Additional’ in the matter of services to commensurate with the
needs and requirements of the country’s growing society and developing economy.
Functions:
The functions of Mutual Trust Bank Limited are as follows:
 To maintain all types of deposit accounts with online facilities.
 To conduct foreign exchange business.
 To extend other banking services.
 To conduct social welfare activities.

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MTB Products and Services:
 MTB Deposit Products:
MTB has designed various deposit accounts to service all customers’ different needs. From a
straight forward Savings account to Fixed Deposits, they strive to give customers the best value
for their money. MTB accounts enable customers to priorities between flexibility, highest interest
yield and convenience. Different Deposit Products of MTB are given below:
Regular Savings Account
Current Account
Brick by Brick
MTB Double Saver
MTB Education Plan
Fixed Deposit
MTB Millionaire Plan
MTB Inspire
MTB Ruby
Monthly Benefit Plan
MTB Junior
MTB Graduate
MTB Senior
MTB Shanchay
MTB Kotipati
MTB Care

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 MTB Loan Products:
Whatever credit facility customers are looking for, they will surely find it at MTB. It has a
comprehensive selection of facilities to offer, from a simple personal loan, credit cards, auto loan
and overdraft facilities to home loan.
MTB strives to remain competitive and is committed to constantly reviewing both its lending
policies and rates to ensure that their customers get the best deals in town. MTB loan products are
given below:
MTB Personal Loan
MTB Auto Loan
MTB Home Loan
MTB Home Equity Loan
 MTB Gift Cheque:
MTB Gift cheque users have the unique opportunity to choose their gift, whenever they wish.
Purchasers save time and receivers have the option to buy something they require.
MTB Gift Cheque can be exchanged for money anytime, at any MTB branch in Bangladesh.
Purchasers do not have to be an account-holder of MTB to purchase MTB Gift Cheque.
Additional Benefits:
Gift Cheque holders can encash the cheque from any MTB Branch in Bangladesh
No document is required for purchase of gift cheque
No service charge is applicable
Attractive rate of interest
Other conditions may apply

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 Wholesale Banking Products:
Term Finance
Working Capital Finance
Trade Finance
Syndication & Structured Finance
Off-Shore Banking
Customers of wholesale products:
Our wholesale customers include NBFIs, large and medium manufacturing, trading and service
industries including Garments & Textile, Steel & Ship-breaking, Chemicals, Engineering &
Construction, Telecommunication, Airlines etc.
Wholesale Deposit Products:
MTB offer better interest rates on wholesale deposits. The spectrum of wholesale deposit
products are:
Current Deposit Account
Short Term Deposit Account
Savings Bank Account
Fixed Deposit Account

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 SME Banking Products:
SMEs have different types of credit needs. MTB understand their needs and have designed a
number of loan products to meet the needs.
SME Products are:
MTB Bhaggobati
MTB Krishi
MTB Mousumi
MTB Revoloving Loan
MTB Small Business Loan
MTB Digoon
MTB Green Energy Loan
 NRB Banking Products:
MTB offers an array of deposit products in local currency for the NRBs who are residing abroad
and want to save their hard-earned money to utilize in future and facilitate their family
maintenance. NRB products are:
NRB Savings A/C
NRB Deposit Pension Scheme (DPS)
NRB Fixed Deposit (NRB FDR)

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 MTB Card Products:
MTB’s range of Cards helps customers meet their financial objectives. So whether customers are
looking to add to customer’s buying power, conducting cashless shopping, or budgeting their
expenditure, they will find a card that suits them.
Credit Cards:
Worldwide acceptance:
Accepted at over 23 million Merchant Establishments around the world, including 110,000
Merchant Establishments in India.
Revolving credit facility:
Pay a minimum amount, which is 5% of your total bill amount or any higher amount whichever
is convenient and carry forward the balance to a better financial month.
Free Supplementary card:
Customers can share these wonderful features with their loved ones too. MTB offer the facility
of an add-on card for Customer’s spouse, children or parents.
Interest free credit facility:
Avail of up to 45 days of interest free period from the date of purchase.
Debit Cards:
MTB Visa Debit card can be used as an ATM card at any VISA ATM across the world, as well
as for making purchases at merchant locations.
MTB Visa Debit card is extremely versatile and simple to use. Just Swipe & Sign to make a
purchase, the way one does with a credit card. It allows customers the convenience of paying for
their purchases directly from their bank account, without having to carry any cash.
MTB Visa debit card allows customer to track their purchases on a regular basis. The details of
the purchases made on their card, along with the date, merchant name and amount are mentioned
in your bank statement.

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 MTB SMS Banking Service:
“MTB SMS Banking brings your account to your fingertips”--- MTBL Group.
It enables customers to send and receive textual information anywhere 7 days a week and 24
hours a day. It allows them to access information as well as receive transaction alerts on their
account by using their mobile phone.
Facilities available at present:
 Access of account from anywhere in the world through a mobile phone
 Ability to make balance inquiries without visiting the bank
 Ability to receive mini statement of last 5 transactions
 Transaction Alert lets customers get informed whenever there is an ATM/ POS
transaction on their account
 MTB Locker Service:
MTBL provide locker service to their clients. Clients can rent a locker for one year. Every year
they have to pay a fee. They can keep any documents, ornaments and valuable thing in the
locker. One key is given to the clients. There are three types of locker at MTBL: small, medium
and big. The fee of this locker is Taka 1500, 2000, and 2500.
 Online Banking Service
Mutual Trust Bank is playing a pioneering role among its competitors in providing real time
online banking facilities to its customers. Mutual Trust Bank online banking offers a customer to
deposit or withdraw any sum of money from any branch anywhere. Any account holder having
account with the bank can avail this service.

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Facilities available at present:
 Access account from anywhere in the world through a telephone.
 Ability to make balance inquiries without visiting the bank.
 Ability to listen to last 5 transaction detail over the phone.
 Provides a language selection being available in English and Bangla.
 SWIFT Services
The Society for Worldwide Inter-bank Financial Telecommunication or S.W.I.F.T. is a
worldwide community. 7,800 financial institutions in 200 countries connected to one another
through SWIFT. In their own word SWIFT "consistently delivers quantifiable business value
and proven technical excellence to its members through its comprehensive messaging standards,
the security, reliability and five nines‟ availability of its messaging platform and its role in
advancing STP. The guiding principles of SWIFT are clear: to offer the financial services
industry a common platform of advanced technology and access to shared solutions through
which each member can build its competitive edge." Mutual Trust Bank has already become the
member of SWIFT community and has started its operation from March 2004. With introduction
of SWIFT, MTB ensures its customers the quickest and most secured financial transaction
around the world.
 Pay Order
MTBL provide this type of service. When clients want to give money to others for any purpose
they can give pay order. It is safe because they should not carry the money and the receivers can
encash the money. There is no option for dishonor, the client have to deposit money before do
PO.

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The commission of the PO is given below:
Amount Commission
Up to 10,000 Tk 25
10,001-100,000 Tk 50
100,001-500,000 Tk 100
 MTB ATM Booths:
MTBL has 172 ATMs in 31 districts.
MTB ATM Locations
Bogra Dhaka Gournadi Laxmipur Naogaon Rajshahi Sirajganj
Brahmanbaria Dinajpur Habigonj Madaripur Narayanganj Rangpur
Chittagong Feni Jessore Moulvibazar Noakhali Sunamganj
Comilla Gaibandha Joypurhat Munshiganj Pabna Sylhet
Cox's Bazar Gazipur Kushtia Mymensingh Tangail Thakurgaon

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Corporate social Responsibilities of MTB:
MTB CONTRIBUTES BDT 1 CRORE TO PM’S RELIEF FUND
FOR SUPPORTING THE FAMILIES AFFECTED BY THE SAVAR
TRAGEDY
Mutual Trust Bank Ltd. (MTB) contributed Taka 1 crore to the Prime Minister''s Relief Fund
to support and rehabilitate the families affected by the Savar tragedy. Dr. Arif Dowla,
Chairman, Mutual Trust Bank Ltd. handed over the cheque to the Prime Minister at a program
held at the Prime Minister''s office, on May 14, 2013. Earlier, employees of the bank
contributed one day''s basic salary amounting of Taka 10,93,000/- (Ten lakhs ninety three
thousand) to the Prime Minister''s relief fund. In addition, on the second day after the Rana
Plaza building collapse, MTB provided over 5000 bottles of mineral water for the rescue
operators and volunteers.

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MTB HONORS THE WIFE AND CHILDREN OF LATE HAZRAT ALI
Mutual Trust Bank Ltd. (MTB) paid homage to the memory of late Hazrat Ali, who lost his life
while bravely trying to save two lady pedestrians attacked by muggers in Mirpur, in April 6.
Salma Sultana, the widow of Late Hazrat Ali, son Md. Tanvir Hassan Prince and daughter
Cynthia Anjum Preeti were handed over a cheque of Taka Two Lacs, a memorial certificate
and a plaque at a simple ceremony, held at MTB Centre. Rashed A. Chowdhury, MTB Vice
Chairman, M A Malek, MTB Director, Ghulam Mostafa, Managing Director of Kallol Group,
in whose company Hazrat Ali served as a manager, Anis A. Khan, MTB Managing Director
and CEO and members of the bereaved family were present at the simple ceremony. Rashed A.
Chowdhury, in his address, said that MTB was proud to stand beside the family of the valiant
Hazrat Ali and support them in their hour of need. M A Malek expressed his satisfaction at
MTB's taking this initiative under its Corporate Social Responsibility obligations. Ghulam
Mostafa expressed his deep condolences to the bereaved family, on behalf of Kallol group and
thanked MTB for taking the lead, and hoped other bodies would also come forward to offer
succor to the family. Anis A Khan announced MTB's commitment to look after the educational
needs of Hazrat Ali's two minor children.

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MUTUAL TRUST BANK LTD. (MTB) PROVIDES YEARLY CONTRIBUTION TO
TWO FAMILIES AFFECTED BY BDR CARNAGE
Honorable Prime Minister Sheikh Hasina is seen handing over a cheque as part of the
yearly contribution provided by Mutual Trust Bank Ltd. (MTB) to two families
affected by BDR carnage of 2009 at a simple ceremony held at Gonobhaban in the
city. MTB Chairman Dr. Arif Dowla is also seen.

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2. Introduction:
I was assigned at the Gulshan Branch of Mutual Trust Bank Limited to complete my
internship program. I started my internship at MTBL Gulshan branch from 19th
January,
2014.
I was warmly welcomed by Mrs. Fahmida Afroze, Assistant Vice President and Deputy
Manager. She introduced me to everyone in the branch.
During my internship program I had a lot of fun, 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 Mutual Trust Bank are:
 Meaning of responsibility
 Necessity of commitment
 Punctuality and regularity is very important
 Ability to interact with different sorts of people
Mutual Trust Bank Limited has always been prepared the internship program for its
internees. It is strictly followed by both parties. There are different departments in Gulshan
branch and they are:
1. General Banking (GB)
2. Credit Department
3. Foreign Exchange Department (FED)
4. Cash Department
5. Clearing Department
6. Customer Service

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I was rotated across 2 different departments: GB and FED in the past 3 months. However,
my main concentration was General Banking section and thereby, I allocated maximum
time to work at GB section. Therefore, in this report I have described about my job
responsibilities at GB.
2.1 General Banking Section of MTBL Gulshan Branch:
General Banking is the starting point of all the banking operating. General Banking
department aids in taking deposits and simultaneously provides some ancillaries services. It
provides those customers who come frequently and those customers who come one time in
banking for enjoying ancillary services. In some general banking activities, there is no
relation between banker and customers who will take only one service form Bank. On the
other hand, there are some customers with who bank are doing its business frequently. It is
the department, which provides day-to-day services to the customers.
Everyday it receives deposits from the customers and meets their demand for cash by
honoring cheques. It opens new accounts, demit funds, issue bank drafts and pay orders etc.
since bank in confined to provide the service everyday general banking is also known as
retail banking.
2.2 My jobs and responsibilities in GB:
As an intern in the MTBL (Gulshan branch) I got enough opportunity to work in different
segments of General Banking Department. Ms. Tamanna Azim Choudhury, (Junior
Assistant Vice President) is in charge of GB section. I worked under her supervision with
two Assistant Officers: Ms. Sadia Rahman and Mr. Al-Noor Rashid Mozumder during
these 3 months. They introduced me to the necessary papers, document and forms related to
the works of GB.

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They taught me how to manage client properly and to provide a good service to the
customer. There were also a number of activities in which I was involved. The activities are
given below:
 Receiving cheques and pay order vouchers.
 Preparing pay orders.
 The process of account opening and closing, transfer of account.
 Preparing KYC, TP.
 Updating the record book of Clearing, FDR.
 Administrative Activities like drafting letters or any other papers.
 Assisting customers with necessary information.
 Dealing with clients as per the demand of client and officials.
 Responding to the queries in detail about different types of deposit schemes and
accounts.
 Preparing form of different deposit scheme and accounts
 Collecting necessary papers from customers such as- photocopy of National ID card,
Passport, Trade License etc.
 Filling up the important unfilled items on a form.
 Finding and delivering Cheque books
 Processing and enlisting Cheque books.
 Give remind call to the customers if necessary.
 Inputting data to and retrieving necessary information from Flora Software.
Beyond these Activities there were other tasks that I was given to accomplish related to
general banking activities. I have learned many things. The working pressure was high yet
pleasant. All the activities are based on this software “Flora Banking”.

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2.3 Cross-Checking with different departments:
Along with working in GB section I also worked in FED. My works and responsibilities in
FED are given below:
 Writing FDDs and putting entry of the FDDs in the register book
 Filling up some parts of the travel and miscellaneous form
 Filling up some parts of the LCAF form
 Putting LC entry into Bangladesh Bank online
 Writing certificates for reducing tax of the customers.
2.4 Particular Problem Faced:
Professional merit, Competency, Flexibility, Determination and Dedication are the core
resources that MTBL consider to be of paramount importance for building a client oriented
modern banking. Customer satisfaction is MTBL foremost professional undertaking.
Therefore, a satisfied client is MTBL’s precious asset and they consider them as MTBL
ambassador in the market. But as a service provider MTBL also has some lacking which
may negatively affect the precious customers but which are also easy to overcome.
Through my Internship Program I have traced some problem which is related to General
Banking of MTBL. So, I have tried to expose those problems and also suggest some
recommendation to remove those problems. The problems are listed below:
1. In case of opening a new account, the customers do not bring all the documents which
sometimes create problem to the officers.
2. During my internship period I found front desk is so much pressurized because it works
with huge payment order, clearing cheque register and transfer.
3. Different A/C opening form create problem for customer to understand.

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4. Sometimes, the date and the signature of the cheque did not verify properly, as a result the
cheque returned by the clearing department.
5. During my internship period I found front desk is so much pressurized desk because it
works with huge payment order, clearing cheque register and transfer.
6. During my internship period I have found that many customers had problems with
opening DPS as there is a rule that they have to open a savings account first, and then their
DPS would be linked with the savings account. Some customers do not want to open
savings account only for DPS.
2.5 Suggestions for overcome problems:
1. The entire GB department should be well informed regarding their goal and
objectives. It is essential to execute company objective into individual target.
2. There must be clear allocation of responsibilities, authority and accountability.
3. The bank should introduce more promotional activities.
4. The bank should take initiative to develop an effective research and development
centre to get innovative ideas to capture the competitive market.
5. Efficient and attractive marketing strategy and appearance of the bank in the printing
media and electronic media would also increase knowledge of people about the
bank.
6. Tight rules and requirements for opening foreign currency account should be relaxed
and make it easy and simple.

30
2.6 Observations:
It was very interesting working at Mutual Trust Bank. The people there are really nice
and talented. The things that I have noticed and observed are:
 Work is never left pending for the next day unless it is absolutely necessary.
 The work process is faster with better operating systems and Intra Networking System.
 A good job performance is always praised which motivates the employees.
 There is always a rush of customers on this branch so the number of transaction is
high. Thereby, the employees remain very busy throughout the day.
 The work activities are always set and divided for each of the employees.
 Each and every employee has a certain set of responsibilities. He/she carries out
those responsibilities throughout the day. It is also easy to assign duties that way.
Moreover, I often saw everyone help each other out.

31
3.1 Introduction:
Banks are the financial institutions licensed as lender and receiver of deposits regulated by the
national government or the central bank. There are two types of banks: commercial/retail banks
and investment banks. As the most important financial institutions of a country banks accept
deposits from public and lend those deposits to others activities in the capital market, provide
necessary funds to the investors or businessmen that they need to continue their business.
Bangladesh is a third world country with an under developed banking system, particularly in
terms of the services and customer care provided by the government run banks. Recently the
private banks are trying to imitate the banking structure of the more developed countries and
they are becoming successful throughout the time with their services and banking products.
Mutual Trust Bank Ltd is one of the leading banks in Bangladesh which was incorporated in
1999 and till now they have 94 branches all over the country. They are developing their customer
oriented strategies day by day to compete successfully in the competitive retail banking
environment.
There is intense competition and globalization in financial markets. Bank managements are
getting centered to the customer oriented strategies to provide best services to the customers so
that they can retain customers for long time.
Customer switching means customers forsake one service provider for another (Garland, 2002).
As the banking operations are getting wider day by day, customers now have greater choices
among different financial institutes and also have choices between domestic and foreign banks.
So that, they can switch from one service provider to another service provider.

32
Service quality refers to the difference between customer expectations of what a firm should
provide (i.e. expectations) and perceived service performance (Gronroos, 1982;Parasuramanet
al., 1988). It is viewed as an organisational asset and key determinant of corporate marketing and
financial performance (Yasinet al., 2004). Bank can retain a customer for a long time if it meets
the customer’s expectation.
Building long-term relationships with customers has become a critical strategy for most financial
institutions in today’s competitive financial markets. The banking industry must develop
profitable, long-term relationships with its customers in order to survive in the competitive retail
banking environment. Several studies reveal that a bank’s profitability is closely associated with
customer loyalty and retention (Anderson et al., 1994; Jones and Farquhar, 2003; Reichheld and
Sasser, 1990).
The competitive banking industry is concerned with customers’ switching behavior as switching
service providers normally reduces a bank’s market share and profit (Ennew and Binks, 1996).
Levesque and McDougall (1996) also investigated customers’ bank switching behaviour and
complaining behaviour and found that pricing problems and inconvenience of location were
important factors that cause customers to switch banks. In Keaveney’s (1995) seminal research,
the “pricing” factor includes all critical switching behaviours that involve prices, rates, fees,
charges, surcharges, service charges, penalties, price deals, coupons, and/or price promotions.
Colgate and Hedge (2001) demonstrate that price, service failures, and denied services are
important factors that influence customers to switch banks. Since the interactions between a
customer and a service provider create opportunities for customers to evaluate services, service
quality can be broadly conceptualized as a customer’s overall impression of the relative
inferiority/superiority of the organization and its service provisions (Bitner and Hubbert, 1994;
Gronroos,2000).

33
Clemeset al.(2007a) also identified customer commitment, reputation, and service quality as
important switching factors in the banking industry. Wanget al.(2003) suggested that a bank’s
reputation plays a critical role in determining the purchasing and repurchasing behaviour of
customers.
So, not only are the institutions competing, there are also some other issues and customers are
also pitting one against the other. A customer will often try to make the best out of the situation
by not complying with the regulatory requirement, referring to the service provided by another
bank or banks. So banks should position themselves at a unique place in the minds of the
customers by offering attractive offers and providing best services so that they can retain their
customers. The longer a bank can retain a customer, the greater revenue and cost savings from
that customer.

34
3.2 Problem Statement:
The study aims to identify the fact whether the customers have intention to switch their banks
and if they do have that kind of intention then what influence them to do so. There are seven
drivers that affect customer switching behavior, those are: Price, reputation, Service quality,
Effective advertising competition, Involuntary switching, Distance and switching cost.
Consumer-switching behavior refers to customers abandoning a product or service in favor of a
competitor's. A customer might move funds from one bank to another if he/she is dissatisfied
with the customer service at the first.
Now-a-days customers have greater choices between domestic and foreign banks. Foreign banks
are offering auto-financing to customers, operating foreign currency business without
geographical restriction, and conduct local currency business with foreign clients, Bangladeshi
corporations and private individual. And competition is not only between the domestic banks and
the foreign banks. There is a significance competition among the local bank’s management to
understand the customer switching behavior to hold their customers.
The problem statement of this study is to investigate the effects of different factors such as
price, reputation, service quality, effective advertising competition, involuntary switching
and distance on the customers’ switching behavior.
As an intern working under the general banking section in Mutual Trust Bank Ltd, Gulshan
Branch, I have tried to gather information about customer switching behavior, identify the
factors that have influence on this kind of behavior and measure the effectiveness of customer
switching. Because consumer switching is a serious threat for banks as they offer continuously
delivered services, according to the “Handbook of Developments in Consumer Behaviour,” by
Victoria Wells and G. R. Foxall.

35
3.3 Purpose of the study:
 To calculate the pricing problem regarding customer switching
 To measure how reputation contribute to customer switching banks
 To identify the relationship between service quality and customer loyalty
 To measure if the competitive advertising can affect the customer switching
behavior
 To name the involuntary switching factors that are beyond the control of either
customers or the service providers
 To find out the effectiveness of bank distance on the switching behavior of customers
 To identify the service problems and non-service factors that stimulated
customers to switch service providers
 To find out the possible effects of other variables such as charges and their
implementation, facilities and their availability, core service failures, service
encounter failures, competition etc.
3.4 Limitations
 The population from where I have to choose my sample is limited in terms of size and
composition. The data has only been collected from the clients of Mutual Trust Bank Ltd.
Gulshan Branch only, which may fail to represent the factual scenario of the relationship
between measurable variables.
 To measure the visibility, a sample survey is conducted which may not represent the
entire population.
 Respondents were too busy to read the questions properly.
 A survey on the other branches of MTBL was not possible due to time limit and budget
constraint.
 I have limited access to the related literature review due to lack of journals available on
the measured variables from Bangladesh’s perspective.

36
3.5 Literature Review:
There are seven drivers that influence customer switching behavior. Those are: price, reputation,
service quality, effective advertising competition, involuntary switching, distance and switching
costs. Effects of these variables on customer switching behavior are given below:
Price:
Price is an attribute that must be given up or sacrificed to obtain certain kinds of products or
services (Zeithaml, 1998). Customers are normally price conscious in their purchasing behavior
(Beckettet al., 2000; Levesque and McDougall, 1996). Price is also an important factor in choice
situations as a consumer’s choice typically relies heavily on the price of alternatives (Engelet
al.,1995). Similarly, Varki and Colgate (2001) identify that the role of price, as an attribute of
performance, may have a direct effect on customers’ satisfaction and behavioral intentions.
In the financial service industry, price has a wider implication than in several other services
industries. For example, in the financial service industry, price includes fee implementation,
bank charges, and interest rates charged and paid (Gerrard and Cunningham, 2004).
Almossawi (2001) empirically identified price as a critical factor in bank selection for college
students.
A business can use a variety of pricing strategies when selling a product or service. The Price can
be set to maximize profitability for each unit sold or from the market overall. It can be used to
defend an existing market from new entrants, to increase market share within a market or to enter
a new market. Businesses may benefit from lowering or raising prices, depending on the needs
and behaviors of customers and clients in the particular market. Finding the right pricing strategy
is an important element in running a successful business. (Gregson, Andrew. Pricing Strategies for
Small Business 2008 Self Counsel Press.)
Bank pricing strategy needs to align with how different customers value their products and
services. Banks should replace traditional pricing with a holistic data driven approach that
includes customers’ needs, preferences, behaviors, purchasing patterns, and price sensitivity.
(www.pwc.com/structure)

37
Relationship between Price and Switching Behavior:
Due to the complicated nature of the banking industry, price includes not only fees
implementation and bank charges, but also the interest rates charged and paid (Gerrard and
Cunningham, 2004). Simply offering high deposit rates, imposing minimum charges on
customers, and increasing fee rates at the same time is not an effective way to reduce customer
defection rates (Gerrard and Cunningham, 2004).
Increasing bank charges may result in negative effects, such as encouraging customers to switch
to another bank that provides better price options (Gerrard and Cunningham, 2004).
Gerrard and Cunningham (2004) maintain that pricing influences switching behavior among
bank customers as price has a wider implication for bank customers than customers of other
services.
Colgate and Hedge (2001) studied bank customers’ switching behavior in Australia and New
Zealand and identified price as the most important switching determinant, followed by service
failures and denial of services. Similar results were found in Javalgiet al.’s (1989) study
investigating the factors influencing customers’ bank selection decisions in the USA.
Customers tend to focus on the fairness of price, especially on price increases and any price
increases that customers perceive as unfair may result in switching actions (Campbell, 1999). In
the banking industry, Gerrard and Cunningham (2004) suggest that price, when compared to
service failures and inconvenience, plays a more influential role in influencing customers’ to
switching banks. The authors reveal that imposing higher charges on customers can encourage
outward switching and discourage inward switching.
In general, unfavourable price perceptions can influence customers to switch banks (Clemes et
al., 2007a; Campbell, 1999).

38
Reputation:
Reputation has been described as a social identity, and an important and intangible resource that
can markedly contribute to a firm’s performance and survival (Hall, 1993; Rao, 1994; Yoon et
al., 1993).
Reputation has been described as an identity of a business in the mind of customer. Reputation is
a key asset to firms as it is valuable, distinctive, and difficult to duplicate, non-substitutable and
provide the firms with a sustainable competitive advantages (Wang et al. 2003) and plays a key
part in measuring customer satisfaction (Naveed et al. 2010).
Reputation builds competitive advantage. Studies have found that organizations with better reputations do
better financially, attract and keep talent at lower costs, have lower costs of capital, and more
easily gain support from government and other stakeholders in times of need. Every organization
will have a reputation, whether or not they help shape that reputation. People judge organizations
in a variety of ways-by what they do, by what they say they do, and by what others say they do.
Those organizations that do not manage their reputations will have it managed for them by
competitors, critics or others. Reputation management is a process, not an event. Activities like
corporate social responsibility, crisis management, and the like are important tactics, but they
will not be successful if the organization does not align itself to behave in ways that build
reputation, credibility and trust among those who determine whether or not it will succeed (Kim
Harrison).
Business judged by its stakeholders from the first day as they enter into the market. Gibbs (2009)
suggested that further reputation is important and customers give more weight to the reputation.
Its influence ranges from competitive settings, like markets, to cooperative ones, like firms,
organizations, institutions and communities (Wikipedia).
Aaker (1996) and Rust et al.(2001) explained reputation as brand or customer equity, and
linked the construct with the credibility and faithfulness of the firm. A good reputation
can enhance customer loyalty, especially in the retail banking industry, where quality
cannot be evaluated accurately before purchase (Andreassen and Lindestad, 1998; Barich

39
and Kotler, 1991; Nguyen and Leblanc, 2001). Weigelt and Camerer (1988) noted that a
positive reputation is a strategic tool that banks use to earn additional profits.
Yue and Tom (1995) and Javalgiet al. (1989) demonstrated that bank customers’ selection
decisions can be affected by a bank’s reputation. Wanget al.(2003) suggested that a bank’s
reputation plays a critical role in determining the purchasing and repurchasing behavior of
customers.
Relationship between Reputation and Switching Behavior:
A good reputation plays an important role in creating positive signals to the public about a firm’s
capability and reliability (Vendelo, 1998). Thus, bank managers must use a relationship
marketing approach to deliver reliable services and honest communication that will help to
encourage building trust between customers and banks (Clemeset al., 2007a; Gill et al., 2006;
Gronroos, 2000). These methods will eventually lead to increased customer loyalty, benefiting
both customers and banks. In addition to providing timely and accurate services that reduce risk,
managers need to encourage their employees to communicate with customers in a manner that
inspires trust and confidence and enhances the reputation of their bank.
Bloemer et al. (1998) study results revealed image is indirectly related to bank quality via
perceived quality. Naveed et al. (2010) study on banking industry of Pakistan illustrated positive
relationship between unfavorable bank reputation and customer switching banks.
Service Quality:
Services are largely intangible offerings and they are normally experienced simultaneously with
the occurrence of production and consumption. Often, the interaction between the buyer and the
seller renders the service to customers (Gronroos, 2000). Unlike the manufacturing product
quality that can be readily assessed, service quality is an elusive and abstract construct that poses
definition and measurement obstacles. The literature has suggested that service quality is

40
determined by differences between customer’s expectations of service provider’s performance
and their evaluation of services they received (Parasurman et al. 1985, 1988).
Research has indicated that service quality has been increasingly recognized as a critical factor in
the success of any business (Parasuraman et al., 1988) and the banking sector in this case is not
exceptional. Service quality has been widely used to evaluate the performance of banking
services (Cowling and Newman, 1995). The banks understand that customers will be loyal if
they receive greater value than from competitors (Dawes and Swailes, 1999) and on the other
hand, banks can earn high profits if they are able to position themselves better than their
competitors within a specific market (Davies et al., 1995). Therefore, banks need focus on
service quality as a core competitive strategy (Chaoprasert and Elsey, 2004). Moreover, banks all
over the world offer similar kinds of services, and try to quickly match their
competitors‘innovations.
It can be noted that customers can perceive differences in the quality of service (Chaoprasert and
Elsey, 2004). Moreover, customers evaluate banks’ performance mainly on the basis of their
personal contact and interaction (Gronroos, 1990).
The study of McCleary and Weaver (1982) indicated that good service is defined on the basis of
identification of measurement behaviors that are important to customers. The study of Newman
and Cowling (1996) reports that two British banks used the SERVQUAL model and this model
improved quality of service, as well as both banks enjoying substantial increases in profit.
Moreover, Zeithaml (2000) also found evidence about the influences of service quality on profits
and Heskett et al. (1997) argued that a ―direct and strong relationship exists among service
quality, customer satisfaction and profitability. Vimi and Mohd (2008) undertook a study of the
determinants of performance in the Indian retail banking industry based on perception of
customer satisfaction.
The finding of the study reinforces that customer satisfaction is linked with performance of the
banks. Berry (1980) along with Booms and Bitner (1981) argue that, due to intangible nature of
services, customer use elements associated with the physical environment when evaluating
service quality. Levitt (1981) proposes that customers use appearances to make judgments about
realities. Hostage (1975) believes that a service firm‘s contact personnel comprise the major

41
determinants of service quality, while Lewis and Booms (1983) propose that service quality
resides in the ability of the service firm to satisfy its customer needs i.e. customer satisfaction.
Recent studies have shown that levels of customer service quality can exert a positive influence
on customer satisfaction (Parasuraman et al. 1988; Cronin and Taylor, 1992).
Relationship between Service Quality and Switching Behavior:
In a banking context, Kamilia and Jacques (2000) note that perceived service quality results from
the gap between customers’ expectations of the service to be provided by the bank and the
perception of the actual service provided by the bank. A high level of service quality is essential
in order to prevent customers from leaving their current bank (Clemeset al.2007a).
Dusuki and Abdullah (2006) studied the main factors that motivate customers to select Islamic
banks in Malaysia. The authors’ results show that the level of service quality delivered by
Islamic banks contributes to customer satisfaction, and influences customers’ long-term support
for Islamic banking. Furthermore, Levesque and McDougall (1996) note that problems with the
level of services and the bank’s service recovery ability have a major impact on the satisfaction
of customers and their intentions to switch banks.
Service products are an important component of service quality in intangibly based services, as
identified in several studies focusing on the hierarchical nature of service quality. Service
products can be components of interaction quality, physical environment quality, and outcome
quality in a hierarchical context (Clemes et al., 2007b; Daggeret al., 2007). For example, access
and service portfolio are an important component of service quality in Bahia and Nantel’s (2000)
study on retail banking. Mavri and Ioannou (2008) investigated customers’ switching behaviour
in Greek banking services and found that the quality of the banking products and services on
offer had a positive effect on decreasing switching behavior.
Several researchers indicate that service quality plays an important role in supporting business
development as service quality has favourable impact on customer satisfaction, repurchase

42
behavior, and business profitability (Gronroos, 2000; Julian and Ramaseshan, 1994; Zeithamlet
al., 1996).
Bank management needs a strategic focus on delivering high service quality as a competitive
differentiation method. Service product initiatives such as ease of access to accounts, provision
of financial information, and introducing innovative products, can enhance customer loyalty
(Moutinho and Smith, 2000; Nguyen and Leblanc, 1998).
Bank management should focus not only on their range of service products, but also on the
people who deliver the service (Gerrard and Cunningham, 2004). The service characteristics of
the banking industry create numerous inter-actions between customers and employees. Bank
staff should have good banking knowledge, act professionally, and have a courteous attitude
towards all customers. An appropriate people management strategy is necessary in order for
professional service staff to consistently deliver high-quality services (Gronroos, 2000).
Effective Advertising Competition:
In an era of mature and intense competitive pressures, effective advertising can broaden the
communication channel between customers and institutions, which enhances the probability of
success. Cengizet al.(2007) conceptualized advertising as activities undertaken to increase sales
or enhance the image of a service, firm or business. The authors suggest that one of the primary
purposes of advertising is to inform potential customers of the characteristics of products or
services.
Advertising is considered as a core business whose objective is not to generate solutions, but to
fulfill the customer’s needs and expectations.
West, Kover and Caruana (2008, 12) have conducted a research by practitioner and consumers
definition of creativity. They found out that the definitions given by practitioner are related to
relevance, appropriateness, and originality. The results pointed out that practitioner view

43
creativity as a core of the business. Thus, the objective is make business more profitable through
affective advertising in an effective manner.
Advertising plays an important role in attracting customers to a business and also in maintaining
customer numbers during slow periods (Dunn, 1995).
Rust and Zahorik (1993) illustrated that advertising can improve capacity utilization during slow
periods as effective advertising offers opportunities to educate customers about businesses’
service characteristics and operation processes, which can increase productivity from existing
technical capacity.
Davies (1996) explains that effective advertising strengthens the communication between
organizations and customers, and reduces consumers’ perceived risks.
Relation between Effective Advertising Competition and Switching
Behavior:
Advertising can affect customers’ behavior as it may provide information to guide customers’
purchasing decisions. Cengiz et al.(2007) studied bank customers’ behavior in Turkey and found
that efficient advertising may enhance a bank’s customer loyalty and help retain customers.
In general, effective advertising by the competition adds value, captures the attention of potential
customers, and enhances customer loyalty (Cengizet al., 2007).
Furthermore, professional service advertising is positively associated with consumers’
expectations of benefits, and guides their purchasing behavior.
Bank managers should develop effective advertising strategies that enhance the communication
channels between customers and their bank and encourage new customers from other banks.

44
Once customers understand the offerings and processes of their current bank, the probability of
switching to an alternative bank is reduced (Clemeset al., 2007a). With the emergence of high
technology such as the internet, television and radio are not the only ways to communicate
information and advertise a bank’s offerings.
The internet enables potential and existing customers to be informed about services globally and
in a matter of seconds. However, television and radio may still be the most effective method to
advertise banking services to the older age segment.
Therefore, multiple advertising media and messages are required to target different demographic
groups.
Involuntary Switching:
Keaveney (1995) describes the factors that are beyond the control of either customers or
service providers as involuntary switching factors. Customers may switch
unintentionally, upon moving house, changing job, or retail branches being closed in their
area of residence.
Therefore, relocation or other factors that are beyond the control of customers or service providers
can destroy even the most satisfied service relationship (Taylor et al., 2009).
Involuntary switching is, for the most part, beyond the control of marketers but is included in
many switching behavior models (Keaveney, 1995). Involuntary switching is measured in this
study as the inclusion of the construct aids in identifying all of the factors that contribute to bank
switching behavior.
Ganesh et al. (2000) noted that involuntary or unavoidable switching represents the most
common switching behaviour. A bank may provide a perfect service and meet their customers’
requirements. However, the bank can still lose customers due to reasons beyond the control of
either party (Tayloret al., 2009).
Some involuntary switching may be beyond the control of the service provider. However,
assessing the significance of involuntary switching as a factor and determining the marginal
probability of involuntary switching is still valuable strategic information for bank management.

45
Relationship between Involuntary Switching and Switching Behavior:
The results confirm that involuntary switching (such as moving house, changing jobs, and the
opening or closing of a bank branch) is an important factor that influences the marginal
probability of a customer switching banks.
To counter involuntary switching, bank managers may use electronic banking services such as
automatic telling machines (ATMs) and telephone and internet banking to help lower defection
rates (Dutta and Segev, 2001).
Electronic banking can efficiently and effectively improve the traditional marketing functions of
a financial institution, especially when there is a time limit or geographical constraints (Ganet
al., 2006; Polatoglu and Ekin,2001).
Distance:
A convenient location is a critical factor influencing customers’ evaluation of a firm’s
performance (Levesque and McDougall, 1996).
Keaveney (1995) explains that, under the inconvenience category, a service provider’s location is
an important factor that may trigger switching. Customers may switch to a new provider if the
new provider is closer to their work or home.
Levesque and McDougall (1996) suggest that a convenient bank location is an important factor
influencing customers’ switching behavior because location directly determines whether the
customers can access their banks on a regular basis.
Kiser (2002) concludes that location is a critical matter for households choosing depository
institutions due to the limited geographical accessibility of alternative banks.
Gerrard and Cunningham (2000) investigated the bank switching behaviour of Singapore
graduates and found that inconvenient location has an impact on those graduates who prefer
face-to-face communication. In general, a convenient location can encourage customers to stay at
their current bank and postpone switching (Lee and Cunningham, 2001).

46
Relation between Distance and Switching Behavior:
The findings show that distance is another antecedent that affects the marginal probability of a
customer switching banks. A distance to branches that is favorable may play an important role in
influencing customers that are concerned more about convenience as it allows them to save time.
The results of this study also suggest that customers may tend to choose the nearest bank,
especially if there is limited geographical accessibility to alternative banks (Kiser, 2002).
Although internet banking reduces the distance between customers and banks, the technology
does not help those customers who prefer face-to-face communication, especially for older
people who may be reluctant to use the internet.
However, before relying solely on internet banking, bank management should carefully consider
closing bank branches that may not be the most profitable, but are conveniently accessible by
different customer segments.
Switching Cost:
“Switching costs” is a catch-all phrase to describe the variety of financial and non-financial costs
occurred in changing suppliers (Matthews and Murray, 2007). Switching costs can be measured
by the costs that arise from switching to another provider (Lee and Cunningham, 2001).
Switching costs are the costs associated with changing from one value provider to another and
can be costs relating to learning, finding alternatives, compatibility costs, uncertainty costs,
psychological costs, transaction costs, or contractual costs. It is a control mechanism that exists
in most markets and can be real or perceived costs in which customers don't want to lose credits
earned in one program by switching to another (Anders Sundelin, 2009).
Thompson and Cats-Baril (2002) defines switching costs as "the costs associated with switching
supplier", while Farrell and Klemperer (2007) write that "a consumer faces a switching cost

47
between sellers when an investment specific to his current seller must be duplicated for a new
seller". As these definitions indicate, switching costs can arise for several reasons.
Types of switching costs include exit fees, search costs, learning costs, cognitive effort,
emotional costs, equipment costs, installation and start-up costs, financial risk, psychological
risk, and social risk (Wikipedia).
The direct and opportunity costs of switching may discourage customers from leaving the current
organization because customers may perceive switching costs to be higher than the expected
benefits of changing service providers (Lees et al., 2007).
Joneset al.(2002) investigate the relationships between switching costs and outcomes
such as customer retention by using correlation analysis. The authors’ results show that
switching costs are positively and significantly related to repurchase intention.
In the banking industry, switching costs can be interpreted in terms of money, time, and effort,
such as transferring funds, opening a new account, and registering for online banking systems.
Relationship with Switching Cost and Switching Behavior:
Researchers have investigated the relationships between switching costs and customers’
switching behavior. For example, Fornell (1992) explains that high switching costs can prevent
switching by making it costly for customers to change service providers.
The direct and opportunity costs of switching may discourage customers from leaving the current
organization because customers may perceive switching costs to be higher than the expected
benefits of changing service providers (Lees et al., 2007). Gronhaug and Gilly (1991) note that a
customer who is dissatisfied may remain with their current provider if switching costs are too
high.
Colgate and Lang (2001) investigated switching barriers in the New Zealand financial industry
and found that switching costs play an important role in forcing customers not to switch, even
though they have seriously considered switching providers.

48
A unit decrease in switching costs has the maximum impact on the probability that a customer
will switch banks. The result is consistent with a number of researchers that regard switching
costs as the main determinant of behavioral loyalty in customer markets (Burnhamet al., 2003;
Caruana, 2004; Heide and Weis, 1995).
From a manager’s viewpoint, the costs of switching primarily occur from losing inter-personal or
long-term relationships with their customers (Burnhamet al., 2003; Patterson and Smith, 2003).
Thus, in order to reduce the numbers of customers switching banks, banks managers should
endeavor to increase switching barriers to make the switching process more involved and less
attractive to customers. Berry and Parasuraman (1991) find that switching costs can be raised
once customers increase their dependency on a long-term relationship. This is a particularly
important strategy for high-income customers with various investments.
Bank management can also directly link their customers’ portfolio investments or bond entities
with their bank accounts. Thus, if a customer intends to switch to another bank, he/she has to
notify all his/her portfolio investment entities one by one, a time consuming process.
In addition, banks can enhance customer relationships through providing extra benefits to loyal
customers, such as offering a 10 per cent discount to customers who buy home insurance for at
least a three-year period from their current bank. These types of incentives encourage customers
to use a wide range of banking services. Consequently, these types of benefits also increase
switching costs as they act to lengthen the time it takes customers to make alternative banking
arrangements that includes their insurance cover.

49
Switching Behavior:
The competitive banking industry is concerned with customers’ switching behavior as switching
service providers normally reduces a bank’s market share and profit (Ennew and Binks, 1996).
Colgate (1999) showed that in the New Zealand banking industry the annual switching rate was
4 percent. An additional 15 percent of personal retail banking customers also intended to switch
banks, which creates a loss of profits and raises new customer acquisition costs.
Researchers have investigated a combination of several factors that may cause customers to
switch banks in order to assist bank management to develop strategies to minimize the negative
effects of defection and enhance long-term relationships with customers (Clemeset al., 2007a;
Colgate and Hedge, 2001; Gerrard and Cunningham, 2004; Matthews and Murray, 2007).
The factors that influence a customer’s decision to switch banks can be numerous and complex
(Clemeset al., 2007a; Colgate and Hedge, 2001). Stewart (1998) identified four switching
factors: charges and their implementation, facilities and their availability, provision of
information and confidentiality; and services issues relating to customers’ treatment.
Levesque and McDougall (1996) also investigated customers’ bank switching behavior and
complaining behavior and found that pricing problems and inconvenience of location were
important factors that cause customers to switch banks.
Colgate and Hedge (2001) demonstrate that price, service failures, and denied services are
important factors that influence customers to switch banks in New Zealand. Clemeset al.(2007a)
also identified customer commitment, reputation, and service quality as important switching
factors in the New Zealand banking industry.
Gerrard and Cunningham (2000) investigated the Asian banking market and found that bank
switching is strongly associated with three factors: service failures, pricing; and inconvenience.
Kaynak and Kucukemiroglu (1992) studied the behavior of Hong Kong bank customers and
found that customers search for convenience, long association, recommendations from friends
and relatives, and accessibility to easy credit.

50
Switching
Behavior
3.6Conceptual Framework :
Price
Reputation
Service Quality
Effective advertising
competition
Involuntary
switching
Distance
Switching Cost

51
3.7 Research Questions and Hypotheses:
Questions:
From the Literature Review following research questions are formulated:
Q1: Can unfavorable perception of price affect customer switching behavior?
Q2: Can unfavorable reputation of the bank affect customer switching behavior?
Q3: Can good service quality affect customer switching behavior?
Q4: Can effective advertising competition affect customer switching behavior?
Q5: Can involuntary switching affect customer switching behavior?
Q6: Can bank distance affect customer switching behavior?
Q7: Can switching costs affect customer switching behavior?

52
Hypotheses:
Ha1: There is a relationship between price and customers switching banks.
H01: There is no relationship between price and customers switching banks.
Ha2: There is a relationship between bank reputation and customers’ switching banks.
H02: There is no relationship between bank reputation and customers’ switching banks.
Ha3: There is a relationship between providing good service quality and customers switching
banks.
H03: There is no relationship between providing good service quality and customers switching
banks.
Ha4: There is a relationship between effective advertising by the competition and customers
switching banks.
H04: There is no relationship between effective advertising by the competition and customers
switching banks.
Ha5: There is a relationship between involuntary switching and customers switching banks.
H05: There is no relationship between involuntary switching and customers switching banks.
Ha6: There is a relationship between bank distance and customers switching banks.
H06: There is no relationship between bank distance and customers switching banks.
Ha7: There is a relationship between switching costs and customers switching banks.
H07: There is no relationship between switching costs and customers switching banks.

53
3.8 Research Design:
1) Degree of Research Question Crystallization:
i) Formal Study: This research starts with a hypothesis and it has a precise procedure and data
source specification. I am conducting a survey to obtain categorical data for the testing of
formulated hypothesis.
2) Method of Data Collection:
i) Communication Study: I will question some customers and collect their responses by
personal or impersonal means. The survey will be conducted using the questionnaire.
3) Research Control of Variables:
i) Ex Post Facto: With a Ex Post facto design researchers have no control over the variables. As
I cannot control or manipulate the variables, I can only report what has happened or what is
happening. By using over survey result I can determine how the variables affected each other.
4) The Purpose of the Study:
i) Casual study: Through casual study I will try to explain relationships among variables.
5) The Time Dimension:
i) Cross-Sectional Study: Cross-sectional studies are carried out once. I am following cross-
sectional design as I will survey for a single time to find out the effects of the variables.

54
6) The Topical Scope:
i) Statistical Studies: I will survey on a sample so that I can be able to collect the population’s
information. So, I am following statistical studies.
7) The research environment:
i) Field Environment: I will make my research survey under actual environment; I will go to the
customers and capture their responses.
8) Participant’s Perception:
i) Participant’s Perceive Deviations as Researcher Induced:
I will work with my samples to conduct information from them, which are related to the
variables. Participants will answer or participate these questions and activities which I want.

55
3.9 Methodology:
Sampling Method:
Sample unit: This research follows a systematic sampling procedure so that different
demographic and socio economic groups can be included in our sample. The sampling unit for
this survey is the customers of the bank.
The sampling unit considers the age groups of 15-25 years, 26-35 years, 36- 45 years, 46 years
and above. Income range for this sampling unit is 5000- 15000, 16000- 25000, 26000- 35000,
36000 and above.
Size: Sample size is 30
Non-Probability Sampling:
This research follows non probability sampling method. The sample was chosen to fulfill the
research purpose, not randomly. I used my own judgments to identify the customers for survey
which is known as Purposive Sampling. Potential customers will be approached and asked if
they would like to participate. Those who agree will be given the questionnaires.
Instrument:
Data was collected directly from the customers as primary data. The questions used for data
collection are all close ended questions. 7 Likert scale is used for respondents. There are 29
questions in total for measuring all the variables.
There are 4 questions for the variable- Price.
There are 5 questions for the variable- Reputation.
There are 4 questions for the variable- Service quality.
There are 4 questions for the variable- Advertisement.
There are 3 questions for the variable- Involuntary factors.
There are 3 questions for the variable- Distance.
There are 3 questions for the variable- Switching cost.
There are 2 questions for the variable- Customer Switching Behavior.

56
Data Collection Procedure:
Both primary and secondary data was collected for research. Primary data includes the different
effects produced under variables and secondary data includes literature review.
Data collection procedure for this particular research was entirely primary data collection. A
questionnaire was used to survey the customers in order to obtain quantitative data. A systematic
sampling procedure was employed to ensure that the sample included different demographic and
socio-economic groups. The survey was carried out at the bank. It encompasses 30 respondents
from the customers. The researchers approached randomly selected persons who are the regular
customers of the bank, until a sample of 30 had been reached.
Potential respondents were approached and asked if they would like to participate. Those that
agreed were given the questionnaire. Interviews lasting about twenty minutes were conducted
with the respondents as well. The aim of the interviews was to give them the opportunity to
express their feelings, beliefs and attitudes regarding the research questions.
Data analysis method:
After the data was collected, it was reviewed to ensure that every question was answered. The
data gathered from the survey, the firm’s database, and data on communication and conflict
handling were entered into a database and then analyzed using the Statistical Package for the
Social Sciences (SPSS). Validity and reliability tests were conducted, and the data from the
reliable instruments was entered in the SPSS package. Frequencies and percentages were used to
compare the responses.
Factor analysis and Pearson’s correlation coefficient were used to test relationships between the
variables, and to test the research objectives against the relationships between the variables.
Regression analysis was used to identify strong predictors of customer loyalty, using both
behavioral and attitudinal variables, and to establish the contribution.

57
1. Descriptive Analysis:
I surveyed on 30 customers of this bank. The customers are both male and female; their ages
are ranging from 15 to 46 and above. And their incomes are ranging from 5000 to 36000 and
above.
The percentage of male is 60% and the percentage of female is 40%. The relation between
their age and income, age and gender, gender and income are shown in the appendix.
Statistics
Gender
N Valid 30
Missing 0
Gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid male 18 60.0 60.0 60.0
female 12 40.0 40.0 100.0
Total 30 100.0 100.0
Statistics
Age
N Valid 30
Missing 0

58
Age
Cumulative
Percent
Valid 15-25 7 23.3 23.3 23.3
26-35 8 26.7 26.7 50.0
36-45 9 30.0 30.0 80.0
46 and above 6 20.0 20.0 100.0
Total 30 100.0 100.0
Statistics
Income
N Valid 30
Missing 0
Income
Cumulative
Percent
Valid 5000-15000 7 23.3 23.3 23.3
16000-25000 2 6.7 6.7 30.0
26000-35000 9 30.0 30.0 60.0
36000- above 12 40.0 40.0 100.0
Total 30 100.0 100.0

59
2. Reliability Analysis:
Gregory (1996) defined “reliability” as the extent to which measurements of the particular test are
repeatable.
The more consistent the results given by repeated measurements, the higher the reliability of the
measurement procedure. (Carmines & Zeller, 1979)
The most highly recommended measure of internal consistency is provided by coefficient alpha or
Cronbach’s alpha (1951) as it provides a good reliability estimate in most situations. The value of alpha
ranges from 0 to 1. The nearer the value of alpha to 1, the better the reliability is. If the value is low,
either there are too few items or there is very little commonality among the items (Churchill, 1979).
Reliability analysis is done in order to test the scale, questionnaire and the other instruments used in the
research. This ensures how reliable the research is. For reliability analysis the cronbach alpha should be
between 0.5-0.6, which is sufficient but 0.7 and above is much desirable (Jahangir,2003).
Case Processing Summary
N %
Cases Valid 30 100.0
Excludeda
0 .0
Total 30 100.0
a. Listwise deletion based on all variables in the
procedure.
Reliability of all variables is measured according to the questions. There are 8 variables, one is dependent
variable and other seven variables are independent.

60
The value of Cronbach’s alpha for the dependent variable- Customer Switching Behavior is .822
Reliability Statistics
Cronbach's Alpha N of Items
.822 2
The value of Cronbach’s alpha for the independent variable- Price is .681
.681 4
The value of Cronbach’s alpha for the independent variable- Reputation is .785
.785 5
The value of Cronbach’s alpha for the independent variable- Service Quality is .610
.610 4

61
The value of Cronbach’s alpha for the independent variable- Effective Advertising Competition is .620
.620 4
The value of Cronbach’s alpha for the independent variable- Involuntary Switching is .583
.583 3
The value of Cronbach’s alpha for the independent variable- Distance is .526
.526 3
The value of Cronbach’s alpha for the independent variable- Switching Cost is .855
.855 3

62
3. Hypothesis Testing:
Pearson's Correlation:
The Pearson product-moment correlation coefficient (Pearson’s correlation, for short) is a
measure of the strength and direction of association that exists between two variables measured
on at least an interval scale. For our research if the correlation coefficient ρ≠0 and significance
α<0.05 then the alternative hypothesis is acceptable which means there is a relationship between
the two variables (Jahangir, 2003).
Here, Switching Behavior and Price has values of ρ= -0.043 and α=0.822. Here, α> 0.05 which
means there is no relationship between these two variables. This hypothesis is not accepted
according to Pearson’s correlation.
Correlations
Price SwitchingBehavior
Price Pearson Correlation 1 -.043
Sig. (2-tailed) .822
N 30 30
SwitchingBehavior Pearson Correlation -.043 1
N 30 30

63
For the relationship between Reputation and Switching Behavior the result is, of ρ= .444* and
α=0.014. Here, ρ is not equal to 0 and α < 0.05. This means there is a relationship between
Reputation and Switching behavior. Correlation is significant at the 0.05 level, which makes it
95% accurate to be probable.
Correlations
Reputation SwitchingBehavior
Reputation Pearson Correlation 1 .444*
N 30 30
SwitchingBehavior Pearson Correlation .444*
1
N 30 30
*. Correlation is significant at the 0.05 level (2-tailed).
Here, Service Quality and Switching Behavior has the values of ρ=0.319 and α=0.085.
This means that there is no relationship between Service Quality and Switching Behavior. This
hypothesis is not accepted according to Pearson’s correlation.
Correlations
ServiceQuality SwitchingBehavior
ServiceQuality Pearson Correlation 1 .319
N 30 30
SwitchingBehavior Pearson Correlation .319 1
N 30 30

64
Here, Effective Advertising Competition and Switching Behavior has the values of ρ=0.375*
and α=0.041.
This means that there is a relationship between Effective Advertising Competition and
Switching Behavior. This hypothesis is accepted according to Pearson’s correlation. Correlation
is significant at the 0.05 level, which makes it 95% accurate to be probable.
Correlations
EffectiveAdvertisi
ngCompetition SwitchingBehavior
EffectiveAdvertisingCompetitio
n
Pearson Correlation 1 .375*
N 30 30
1
N 30 30
*. Correlation is significant at the 0.05 level (2-tailed).
Here, Involuntary Switching and Switching Behavior has the values of ρ=0.420* and α=0.041.
Correlations
Involuntaryswitchi
ng SwitchingBehavior
Involuntaryswitching Pearson Correlation 1 .420*
N 30 30
1
N 30 30

65
Here, Distance and Switching Behavior has the values of ρ=0.872** and α=0.000.
Correlations
Distance SwitchingBehavior
Distance Pearson Correlation 1 .872**
N 30 30
SwitchingBehavior Pearson Correlation .872**
1
N 30 30
**. Correlation is significant at the 0.01 level (2-tailed).
Here, Switching Cost and Switching Behavior has the values of ρ=0.715** and α=0.000.
Correlations
SwitchingCost SwitchingBehavior
SwitchingCost Pearson Correlation 1 .715**
N 30 30
SwitchingBehavior Pearson Correlation .715**
1
N 30 30
**. Correlation is significant at the 0.01 level (2-tailed).

66
4. Regression Analysis:
Regression analysis is used to predict the value of a variable based on the value of another
variable.
In the Model Summary table for Price (IV) and Switching Behavior (DV), R²=0.002 which
means Price has a relationship with Switching Behavior by 0.002.
Model Summary
Model R R Square Adjusted R Square
Std. Error of the
Estimate
1 .043a
.002 -.034 1.49912
a. Predictors: (Constant), Price
In the Model Summary table for Reputation (IV) and Switching Behavior (DV), R²=0.197 which
means Price has a relationship with Switching Behavior by 0.197.
Model Summary
Std. Error of the
Estimate
1 .444a
.197 .168 1.34477
a. Predictors: (Constant), Reputation

67
In the Model Summary table for Service Quality (IV) and Switching Behavior
(DV), R²=0.102 which means Price has a relationship with Switching Behavior by
0.102.
Model Summary
Std. Error of the
Estimate
1 .319a
.102 .070 1.42190
a. Predictors: (Constant), ServiceQuality
In the Model Summary table for Effecting Advertising Competition (IV) and
Switching Behavior (DV), R²=0.141 which means Price has a relationship with
Switching Behavior by 0.141.
Model Summary
Std. Error of the
Estimate
1 .375a
.141 .110 1.39079
a. Predictors: (Constant), EffectiveAdvertisingCompetition
In the Model Summary table for Involuntary Switching (IV) and Switching
Behavior (DV), R²=0.177 which means Price has a relationship with Switching
Behavior by 0.177.
Model Summary
Std. Error of the
Estimate
1 .420a
.177 .147 1.36142
a. Predictors: (Constant), Involuntaryswitching

68
In the Model Summary table for Distance (IV) and Switching Behavior (DV),
R²=0.760 which means Price has a relationship with Switching Behavior by
0.760.
Model Summary
Std. Error of the
Estimate
1 .872a
.760 .751 .73514
a. Predictors: (Constant), Distance
In the Model Summary table for Switching Cost (IV) and Switching Behavior
(DV), R²=0.511 which means Price has a relationship with Switching Behavior by
0.511.
Model Summary
Std. Error of the
Estimate
1 .715a
.511 .494 1.04910
a. Predictors: (Constant), SwitchingCost

69
3.10 Findings:
H01: Price can not affect Switching Behavior.
The findings indicated that Price has no significant relationship with Switching
Behavior at of, ρ= -0.043 and α=0.822.
Ha2: Reputation affects Switching Behavior.
The findings indicated that Reputation has a significant relationship with
Switching Behavior at of, ρ= 0.444* and α=0.014.
H03: Service Quality can not affect Switching Behavior.
The findings indicated that Service Quality has no significant relationship with
Switching Behavior at of, ρ= 0.319 and α=0.085.
Ha4: Effective Advertising Competition affects Switching Behavior.
The findings indicated that Effective Advertising Competition has a significant
relationship with Switching Behavior at of, ρ= 0.375* and α=0.041
Ha5: Involuntary Switching Affects Switching Behavior.
The findings indicated that Involuntary Switching has a significant relationship
with Switching Behavior at of, ρ= 0.420* and α=0.021.
Ha6: Distance affects Switching Behavior.
The findings indicated that Distance has a significant relationship with Switching
Behavior at of, ρ= 0.872** and α=0.000.
Ha7: Switching Cost affects Switching Behavior.
The findings indicated that Distance has a significant relationship with Switching
Behavior at of, ρ= 0.715** and α=0.000.

70
3.11 Discussion:
Price has no significant relationship with Switching Behavior:
The findings indicated that Price has no significant relationship with Switching Behavior at of,
ρ= -0.043 and α=0.822.
Through this survey I wanted to know the consumer’s attitude towards Switching Behavior. I
wanted to identify if there is any kind of belief or motivation about the prices of MTB’s banking
products which make them to switch the bank.
By surveying different customers of MTBL I come to know that the charges and fees of different
products of MTBL is lower than other local banks, and obviously than the foreign banks.
We know that imposing higher charges on customers can encourage outward switching and
discourage inward switching. Here the investigation shows that as MTBL has the pricing
strategies which is markedly different from it’s major competitors, there isn’t any significant
activities from customer’s side such as rejection of products that can cause to switch the bank.
Service Quality has no significant relationship with Switching Behavior
The findings indicated that Service Quality has no significant relationship with Switching
Behavior at of, ρ= 0.319 and α=0.085.
By surveying different customer segments of MTBL I tried to identify the influence of MTBL’s
service quality to the customer’s decision to switch the bank.
As service quality is an important factor that influences the marginal probability of customers’
bank switching behavior, I wanted to identify that if the strategic focus of high service quality of
the bank and the appropriate people management to provide good service can influence the
customers to not to switch the bank.
After the survey I found that most of the customers are satisfied with the service quality of
MTBL. So the service quality of this bank is not the factor to switch this bank.

71
3.12 Significance of the study:
First, this study will help the researchers to extend their understanding of the relationship among
Switching Behavior and the other factors related to it: Price, Reputation, Service Quality,
Effective Advertising Competition, Involuntary Switching, Distance and Switching Cost. The
results of this study will expose the importance and impact of the relationship between these
variables on Bangladesh’s perspective.
Secondly, this study identified and empirically examined seven factors that influenced bank
customers’ switching behavior. However, there may be additional factors that have an impact on
customers’ switching behavior that were not identified in this study. Further empirical research is
required to identify and examine any other factors that may influence customers to switch banks.
Third, the survey questions ask about respondents’ banking experiences with their current bank.
In order to maintain a long-term relationship with customers, future research should focus not
only on what factors currently cause customers to switch banks, but also on identifying any new
factors that may potentially influence customers to switch banks in the future.
Finally, this study will provide future researchers with a useful methodological framework to
investigate switching behavior. Several significant factors that contribute to bank switching have
also been identified empirically and these factors can be refined in new studies on bank
switching. This is particularly important for developing countries like Bangladesh or any other
countries as this research can also be used for cross-cultural comparisons.

72
3.13 Recommendation:
After completing my internship in Mutual Trust Bank I have a realization that MTBL is well-
organized and tries to provide its best service to the customers. By experimenting different
situations in MTBL I want to recommend some facts which can be helpful for MTBL:
 The authority should recruit more employees to serve the customers. They
can recruit experienced employee as well as fresh graduate.
 The bank can finance to the consumer goods, because many people in the
country wants to buy consumer goods from bank loan.
 They can take an early initiative to improve their expertise in the
investment businesses to be more prompt.
 The Mutual Trust Bank Ltd. can clarify and endorse publicity more about
their position and their activities in socio-economic and socio-cultural
development in Bangladesh.
 To maintain their reputation and image in the Banking sector and to the
general people, Mutual Trust Bank Ltd. should involve precisely in
mobilization and utilization of local resources like – investing in N.G.O.
activities, educational, health expansion activities, poverty eliminations
etc.
 The marketing department of the bank should be more efficient to reach at
the heart of the customer.
 The bank should be more concerned about profit as well as took part to
the economics development of the country.
 Even though MTBL is running online business very successfully but they
should open more ATM booths to meet customer needsS and to be in the
competition.

Rushnan Binte Amin-1020806(Spring 2014 internship report) (1)

Rushnan Binte Amin-1020806(Spring 2014 internship report) (1)

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