Report Hsbc

8/12/2019 Report Hsbc

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1. INTRODUCTION

1.1 ORIGIN OF THE REPORT

The report is a requirement of the internship program for my BBA degree. The

organization attachment started on May 03, 2003 and will end on o!em"er 03,

2003. My organization super!isor Ms. #inia Amreen $%ustomer &er!ices 'fficer,

Main 'ffice, (&B% )ha*a+ assigned me the topic of my report and it is has "een

duly appro!ed "y my super!isor at orth &outh ni!ersity, Ms. Mo"ina (asan.

The reason "ehind choosing this topic is that, recently the %-' of (&B%

Bangladesh has gi!en emphasis on "etter customer ser!ice and more customer

satisfaction and thus the %ustomer ser!ice officer wants to get an idea of the

current le!el of customer satisfaction at (&B%.

1.2. OVERVIEW OF THE COMPANY

(&B% is a glo"al "an*ing and financial ser!ice organization headquartered in the

nited ingdom. The (&B% group/s international networ* comprises of some

,000 offices in 1 countries and territories. (&B% holding plc are held "y around

0,000 shareholders in some 00 countries and territories. 4n Bangladesh, (&B%

group is represented "y its head office in )ha*a, a full5ser!ice "ranch in

%hittagong and three su"5"ranches in 6ulshan, Moti7heel and )hanmondi. (&B%

is the first "an* to recei!e the 4&'002 accreditation in Bangladesh.

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1.3 OBJECTIVE OF THE REPORT

General Objective: 6eneral o"7ecti!e is to assess the le!el of importance the

customers of (&B% put across !arious ser!ice le!el attri"utes and also to

determine how well (&B% was satisfying the customers on those ser!ice grounds.

More specific o"7ecti!e is to pro!ide information on (&B% Bangladesh, determine

most important attri"utes of ser!ice quality, identify the most satisfied

demographic segments, determine relation "etween complaint resolution and

satisfaction etc.

1.4 Scope

The presentation of the organizational structure and policy of (&B% Bangladesh

and in!estigating the strategies applied "y it pro!ide the scope of this report. An

infrastructure of the organization has "een detailed, accompanied "y a glo"al

perspecti!e and loo* into the future. The scope of this report is limited to the

o!erall description of the company, its ser!ices, and its position in the industry

and its mar*eting strategies. The scope of the study is limited to organizational

setup, functions, and performances.

1. H!po"#e$%$

The services that customers place most importance in are well satisfied

by HSBC, Banladesh!

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1.& METHODO'OGY

"!#!" Type of research:

4n this study, e8ploratory research was underta*en to gain insights and

understanding of the o!erall "an*ing industry and also to determine some of the

attri"utes of ser!ice quality in Ban*s. After that, a more comprehensi!e

conclusi!e research was underta*en to fulfill the main purpose of the study.

"!#!$ Taret roup:

-8ploratory 9esearch:

Managers, -8ecuti!es, %ustomers of (&B%, Bangladesh.

%onclusi!e 9esearch:

4ndi!idual customers of (&B%.

"!#!% Sources of &nformation:

Primary data

I have collected primary information by interviewing employees and managers of HSBC and

directly communicating with the customers. I have also conducted a questionnaire survey of

the customers minimizing interruptions in their banking activities. rimary data were mostly

derived from the discussion with the employees ! through surveys on customers of the

organization. rimary information is under consideration in the following manner"

#ace to face conversation with the employees

$ppointment with the top officials of the Bank

By interviewing customers at HSBC% &ain 'ffice

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Secondary data

I have elaborated different types of secondary data in my research. Sources of secondary

information can be defined as follows"

Internal Sources

Bank(s $nnual )eport

*roup Business rincipal manual

*roup Instruction &anual ! Business Instruction &anual

rior research report

$ny information regarding the Banking sector

External Sources

+ifferent books and periodicals related to the banking sector

Bangladesh Bank )eport

,ewspapers

"!'!( Study center:

4 could only co!er the )ha*a Main 'ffice in my study, as 4 was not allowed to go

out of the office to carry out my research.

"!'!' )ata collectin instruments:

In-depth interview: )uring the e8ploratory research, 4 conducted in5depth

inter!iews with managers, employees ; customers of (&B%

Questionnaire survey: 4 also designed a structured questionnaire for the

customers of (&B%. This structured questionnaire was the ma7or tool of this

research pro7ect.

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"!'!#Samplin method:

4 adopted simple random sampling technique during the sur!ey of this pro7ect

where customers were gi!en copies of the questionnaire and were as*ed to fill

them. 4 ga!e continuous support to the customers for any pro"lems that they

faced while filling up questionnaire so that the !alidity of the questionnaire

increases. As the &imple random sampling is easily understood and results are

pro7ecta"le it is "est suited for my study.

"!'!* Sample si+e:

Exploratory Research: )uring this phase of the research 4 selected a group of

30 people. This group included < managers, 0 employees and < customers of

(&B%.

Conclusive Research: 4n this part of the research 4 sur!eyed a total of 00

customers with the help of a structured questionnaire.

"!'! )ata -nalysis Techni.ues:

The data that o"tained from the sur!ey were analyzed and interpreted "y using

statistical tools such as /012314C5 )&ST0&B3T&O4, 6ercentae analysis,

7eans, Correlationand Cross tabulations. The data o"tained from the sur!ey

were grouped in two ma7or categories. They are5 importance ; satisfaction. After

that an o!erall !ariance "etween the customer e8pectations and perceptions are

measured to determine the gap "etween ser!ice le!els. Then the data were

presented through a numerical and graphical presentation using the a"o!e

statistical tools. Based on these figures and findings recommendations were made

out to impro!e the o!erall satisfaction of the "an*

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1.( 'IMITATIONS OF THE STUDY

Time frame for the research was !ery limited. The actual sur!ey was done

within a month.

=arge5scale research was not possi"le due to constraints and restrictions

posed "y the organization.

The research only co!ers the customers of )ha*a Main office.

The sur!ey was limited to the customers of >ersonal "an*ing di!ision and

does not co!er the organizational or corporate customers of (&B%.

>art on organizational culture was written from indi!idual/s perception and

may !ary from person to person.

4n many cases, up to date information was not pu"lished.

The information regarding the competitors is difficult to get

6etting 9ele!ant papers and documents were strictly prohi"ited.

Many procedural matters were conducted directly in the operations "y the top

management le!el, which also ga!e some sort of restrictions.

To protect the organizational loss in regard of maintaining confidentiality,

some parts of the report are not in depth.

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2. BAN)ING SECTOR IN

BANG'ADESH

2.1 DEFINITION OF BAN)

?hoe!er, "eing an indi!idual firm, company or corporation generally deals in the

"usiness of money and credit is called a "an*. 4n our country, any institution,

which accepts, for the purpose of lending or in!estment deposits of money from

pu"lic, repaya"le on demand or otherwise, and with transfera"le "y chec*s draft

order ; otherwise is called a "an*.

The purpose of Ban*ing is to ensure transfer of money from surplus unit to deficit

units. Ban*s in all countries wor* as the repository of money. The owners loo* for

safety and amount of interest for their deposits with Ban*s. -ntrepreneurs try to

o"tain money from the "an*s as wor*ing capital and for long term in!estment.

These entrepreneurs welcome effecti!e and forward5loo*ing ad!ice for

in!estment. Ban*ing sector thus owe a great deal to the deposit holders on the

one hand and the entrepreneurs on the other. They are e8pected to play the role

of friend, philosopher, and guide for the deposit holders and the entrepreneurs.

&ince li"eration, Bangladesh passed through fragile phases of de!elopment in the

Ban*ing sector. The nationalization of Ban*s in the post li"eration period was

intended to safe the institutions and the interest of the depositors. Those

handling the "an*ing sector ha!e "orne the "urden of putting "an*s on relia"le

footings. )espite all that was done, some elements of irregularities appeared.

?ith the assertion of the role of the %entral Ban*, the Bangladesh Ban* started

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adopting measures for putting "an*ing institutions on right trac*. @et the

preponderance of pu"lic sector management of "an*s left some negati!e effects

in the money mar*et in particular and the economy in general. The agility among

the "orrowers manipulates the "an*ing sector as a whole. 4n effect, a default

culture, among other effects, appeared on the scene.

The opening of pri!ate and foreign participants to the "an*ing sector was

intended to o"tain desira"le results from "an*ing. The authorization of pri!ate

"an*s was designed to create competition among the "an*s and competition in

the form of efficiency within and the producti!ity in enterprises funded "y "an*s.

nfortunately, for the people, at large, "an*ing sector is yet to o"tain the credit

for efficiency, credi"ility, and growth.

The cle!er, among the user of "an*ing ser!ices, ha!e influenced the management

of "an*s, for o"taining short term and long term loans. They sometimes showed

inflated equity to get money for in!estment in "usinesses and industry. ew

di!erted their loan money to purposes different from the loan proposals, and

in!ested in non profita"le units ha!e failed to repay their loans to the "an*s. or

this reason new entrepreneurs are not getting capital while defaulting

entrepreneurs ha!e started o"taining either relief in the form of rescheduling of

the repayment program or additional ine!ita"le money for di!ersified units.

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2.2 A PREVIEW ON THE GENERA'

ECONOMY AND THE BAN)S

6erformance

-conomy often plays an important role in the "an*/s performance and it/s

e8istence in the mar*et. &o while e!aluating the performance of "an*ing sector of

Bangladesh. 4 "elie!e that it is important to tal* a"out the economy during the

rele!ant year.

General 1conomy 8"99"9$;

The 6ross domestic product $6)>+ of Bangladesh increased "y 3. in 52

as compared to 3.C growth in the pre!ious year. )uring this year the growth

was little lower than pro7ected. )ue to the hea!y growth in the countrywide

e8port and negati!e growth in import the international trade deficit decreased "y

&D2E2 million to &D


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"an*ing sector increased "y . "ecause the demand for loan was higher than

the pre!ious years. )uring this year deposit increased to B)T2C020 million.

General 1conomy 8"99%9(;

35E was the continuation of pre!ious economic growth. 4n this period the

growth was


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than the pre!ious years, as result growth rate in this sector was 3.


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2.3 BAN)S IN BANG'ADESH

4ame of Ban< 4umber of Branches

&nland -broad

-! 4ationali+ed Commercial Ban


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. ational Ban* of >a*istan

0. (anil Ban*

. )utch Bangla Ban* 2"$! HSBC ' $

Source: www!banladeshban

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2.4 BAN)ING IN BANG'ADESH

Ban*ing is the "ac*"one of national economy. All sorts of economic and financial

acti!ities re!ol!e round the a8is of the "an*. As the industry produces goods and

commodities, so does the "an* creates and controls money5mar*et and promotes

formation of capital. rom this point of !iew, "an*ing5a technical profession5 can

"e termed as industry. &er!ices to its customers are the products of "an*ing

industry "esides "eing a pi!otal factor in promoting capital formation in the

country. As all economic and fiscal acti!ities re!ol!e round this important

H4ndustryH, the role of "an*ing can hardly "e o!er emphasized.

%ircumstances "eing such, it "ecomes imperati!e to find out the role that now

playing in the country and analyze its operational aspects so as to ascertain the

importance of this delicate financial sector and its o!er all impact on our national

economy. To ascertain the role of "an*s and to analyze its operational aspects

and its o!erall impact on our national economy a through study as to its

distri"ution, e8pansion and contri"ution is essential to comprehend its past,

present and future "earings for the growth and de!elopment of the "an*ing

sector of the country. 4n the glo"al conte8t, the role of "an*s is far 5 reaching and

more penetrating in the economic and fiscal discipline, trade, commerce,

industry, e8port and import5 all carried through the "an*. Ban*s are the only

media through which international trade and commerce emanate and entire credit

transactions, "oth national and international.

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2. APPROVA' OF NEW BAN)S

'pening of the recently permitted new "an*s, without implementation of the

needed reforms, could lead to unethical competition and horse5 trading in the

countryHs trou"led "an*ing sector, according to the "an*ers.

-ntry of new "an*s in the mar*et under the present situation will lead to

unethical competition and horse5trading in the "an*ing sector. The pro"lems li*e

non5performing loans in the sector may also worsen. The size of the mar*et and

the present state of economic acti!ity did not pro!ide adequate scope for

"usiness for a large num"er of "an*s with poor management and outdated

operating systems. This would o"!iously lead to unethical practices in the sector.

Adding the lac* of s*illed hands at the top and mid5le!el management of "an*s

could also result in Ihorse5tradingI.

Mr. =utfar 9ahman &ar*ar, -85go!ernor Bangladesh Ban* echoed his !iews and

said IAllowing the new "an*s, without restoring discipline and resol!ing their

numerous pro"lems, will create unhealthy atmosphere and unethical "an*ing in

the whole country.I The "an*s would o"!iously resort to unethical means of

capturing or retaining "usiness, such as undercutting interest or "ri"ing official to

attract go!ernment deposits. These would !itiate the atmosphere of the "an*ing

sector.

A top official of another multinational "an* said appro!al of the new "an*s "y the

go!ernment was against the glo"al trend. I?hen the glo"al trend is merger and

acquisition of the small "usiness entities, the go!ernment is permitting numerous

new "an*s.

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oreign "an*s were all prepared to snatch the countryHs limited mar*et, with

potentials of new "usiness opportunities. 6o!ernment step at this time should

ha!e "een to strengthen local "an*s through underta*ing needed reforms.

4nstead of doing that new "an*s were permitted further squeezing the "usiness

opportunities.

Another senior pri!ate "an*er said, I9unning a "an* is !ery difficult in a country

li*e Bangladesh, with inadequate and ineffecti!e legal framewor*. >ermitting new

"an*s without addressing the pro"lems was o"!iously wrong decision.

The pri!ate "an*s had concentrated their acti!ities only in a few areas. The new

"an*s would also try to share the most potential mar*et, forcing others to face

tougher competition. This would also restrict other to e8pand fast to cater to the

"an*ing needs of the people in other areas.

The international Monetary und $4M+ and the world Ban* earlier as*ed the

go!ernment to reconsider its decision to permit new "an*s without restoring

discipline in the sector, crippled "y huge amount of "ad de"ts.

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18

Head Office

HSBC Bangladesh

Anchor Tower, Sonargaon Road


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3. THE HONG)ONG AND SHANGHAI

BAN)ING CORPORATION 'IMITED *HSBC+

3.1 INTRODUCTION

(eadquartered in =ondon, (&B% (oldings plc is one of the largest "an*ing and

financial ser!ices organizations in the world. 4t "egan operations in (ong ong

more than 30 years ago. The (&B% 6roupHs international networ* comprises

some ,000 offices in 1 countries and territories in -urope, the Asia5>acific

region, the Americas, the Middle -ast and Africa.

?ith listings on the =ondon, (ong ong, ew @or* and >aris stoc* e8changes,

around 0,000 shareholders in some 00 countries and territories hold shares in

(&B% (oldings plc. The shares are traded on the ew @or* &toc* -8change in the

form of American )epository 9eceipts.

Through a glo"al networ* lin*ed "y ad!anced technology, including a rapidly

growing e5commerce capa"ility, (&B% pro!ides a comprehensi!e range of

financial ser!ices: personal, commercial, corporate, in!estment and pri!ate

"an*ingJ trade ser!icesJ cash managementJ treasury and capital mar*ets

ser!icesJ insuranceJ consumer and "usiness financeJ pension and in!estment

fund managementJ trustee ser!icesJ and securities and custody ser!ices.

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3.2 HSBC GROUP AT A G'ANCE

-ssets &D EC,33< million at 30 Fune 2002.

6rofit 8preta=; &D aris stoc* e8changes. Trading of the

companyHs shares on the stoc* e8changes is

conducted in =ondon, (ong ong and >aris in the

&D 0.% "an*ing o!er a pri!ate networ*, interacti!e TK,

and fi8ed and mo"ile telephones.

6roduct rane >ersonal, commercial, corporate, in!estment and

pri!ate "an*ingJ trade ser!icesJ cash managementJ

treasury and capital mar*et ser!icesJ insuranceJ

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consumer and "usiness financeJ pension and

in!estment fund managementJ trustee ser!icesJ and

securities and custody ser!ices.

>ey events The (&B% 6roup e!ol!ed from the (ong ong and

&hanghai Ban*ing %orporation =imited, which was

founded in 1C< in (ong ong with offices in

&hanghai and =ondon and an agency in &an

rancisco. The 6roup e8panded primarily through

offices esta"lished in the "an*Hs name until the mid5


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3.3 FOUNDATION , GROWTH OF HSBC-

The (&B% 6roup is named after its founding mem"er, The (ong ong and

&hanghai Ban*ing %orporation =imited $(&B%+, which was esta"lished in 1C< in

(ong ong and &hanghai to finance the growing trade "etween %hina and

-urope. The inspiration "ehind the founding of the "an* was Thomas &utherland,

a &cot who was then wor*ing as the (ong ong &uperintendent of the >eninsular

and 'riental &team a!igation %ompany. (e realized that there was considera"le

demand for local "an*ing facilities "oth in (ong ong and along the %hina coast

and he helped to esta"lish the "an* in March 1C


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2 with one of the largest "an* acquisitions in history when (&B% holdings

acquired Midland Ban* plc, which was founded in in 13C. The following are

some *ey de!elopments in the group since


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"9* The &audi British Ban* is esta"lished under local control to

ta*e o!er The British Ban* of the Middle -astHs "ranches in

&audi Ara"ia.

"9? The (ong*ong and &hanghai Ban*ing %orporation acquires


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argo Ban*. Midland Ban* =aunches irst )irect, the Hs first

2E5hour telephone "an*ing ser!ice.

"99" (&B% (oldings is esta"lishedJ its shares are traded on the

=ondon and (ong ong stoc* e8changes.

"99$ (&B% (oldings purchases the remaining equity in Midland

Ban*. (&B% 4n!estment Ban* plc is formed.

"99% The (&B% 6roupHs (ead 'ffice mo!es to =ondon. orward Trust

6roup =imited $now (&B% Asset inance $+ =imited+, a

Midland su"sidiary, acquires &wan ational =easing,

esta"lishing the Hs third largest !ehicle contract hire

company.

"99( The (ong ong and &hanghai Ban*ing %orporation is the first

foreign "an* to incorporate locally in Malaysia, forming (ong

ong Ban* Malaysia Berhad $now (&B% Ban* MalaysiaBerhad+.

"99' ?ells argo ; %o. and (&B% (oldings esta"lish ?ells argo

(&B% Trade Ban*, .A. in %alifornia to pro!ide customers of

"oth companies with trade finance and international "an*ing

ser!ices.

"99* (&B% (oldings and ?acho!ia %orporation of the nited &tates

form a non5equity alliance to mar*et corporate financial

ser!ices worldwide. orward Trust acquires -!ersholt $now

(&B% 9ail $+ =imited+, a rail rolling5stoc* leasing company

and the largest owner of electric trains operating on the

mainline networ*. Marine Midland Ban* acquires irst ederal

&a!ings and =oan Association of 9ochester in ew @or*. 4n

=atin America, the 6roup esta"lishes a new su"sidiary in Brazil,

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Banco (&B% Bamerindus &.A. and completes the acquisition of

9o"erts 0&.A. de 4n!ersiones in Argentina $now (&B%

Argentina (oldings &.A.+.

"999 &hares in (&B% (oldings "egin trading on a third stoc*

e8change, ew @or*. (&B% (oldings acquires 9epu"lic ew

@or* %orporation $now integreted with (&B% &A 4nc.+ and its

sister company &afra 9epu"lic (oldings &.A. $now (&B%

9epu"lic (oldings $=u8em"ourg+ &.A.+. Midland Ban* acquires

a 0.03 interest in Mid5Med Ban* p.l.c. $ow called (&B%

Ban* Malta p.l.c.+, MaltaHs largest commercial "an*.

$??? (&B% and Merrill =ynch form a 7oint !enture to launch the first

international online "an*ing and in!estment ser!ices company.

(&B% reaches an agreement in principle to acquire aris.

$??" Agreement is reached for (&B% to acquire Barclays Ban*/s

"ranches and fund Management %ompany in 6reece. ew EE5

floor (eadquarter "uilding at =ondon/s %anary ?harf is due to

"e ready for occupation.

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3.4 HSBC INTERNATIONA' NETWOR)-

The (&B% 6roupHs international networ* comprises of some ,000 offices in 1

countries. A "rief list is presented "elow:

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3. COUNTRY C'ASSIFICATIONS-

To ensure that *ey resources $management time, capital, (uman resources and

information technology+ are correctly allocated and that the e8change of "est

practice is accelerated "etween entities, the group has classified the countries

where it operates into 3 categories: the large, the ma7or and the international.

These classifications are a function of sustaina"le, attri"uta"le earnings, the

num"er of retail clients, "alance sheet and size of operation. A "rief presentation

of this classification is shown "elow:

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3.& BOARD OF DIRECTORS-

Sir @ohn Bond, Group Chairman

Age


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A 0 6 )alton ) G 1ldon

) @ /lint A > /un, 'B-

S > Green S Hint+e

- A @ebson Sir @ohn >empAelch

The ord 7arshall C 7iller Smith

Sir 7ar< 7oody Stuart 7 7urofushi

C 1 0eichardt H Sohmen, 'B-

Sir -drian Swire

C / A )e Croisset

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3.( HSBC P%/c%p0 B$%/e$$

E/"%"%e$-

The group is represented "y different "usiness entities in o!er 1 countries and

territories around the world. 4t would "e difficult to list them all indi!idually so the

name of the ma7or entities is shown on the following page along with their region

and !olume of operation.

3. HSBC Gop V%$%o/-

3. HSBC Gop V0e$-

3.15 HSBC Go6e/%/7 O89ec"%6e-

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3.11 HSBC:S BUSINESS PRINCIP'ES

AND VA'UES

The (&B% 6roup is committed to fi!e Business >rinciples:

'utstanding customer ser!iceJ

-ffecti!e and efficient operationsJ

&trong capital liquidityJ

%onser!ati!e lending policyJ

&trict e8pense disciplineJ

(&B% also operates according to certain ey Business Kalues:

The highest personal standards of integrity at all le!elsJ

%ommitment to truth and fair dealingJ

(and5on management at all le!elsJ

'penly esteemed commitment to quality and competenceJ

A minimum of "ureaucracyJ

ast decisions and implementationJ

>utting the 6roupHs interests ahead of the indi!idualHsJ

The appropriate delegation of authority with accounta"ilityJ

air and o"7ecti!e employerJ

A merit approach to recruitmentselectionpromotionJ

A commitment to complying with the spirit and letter of all laws and

regulationsJ

The promotion of good en!ironmental practice and sustaina"le

de!elopment and commitment to the welfare and de!elopment of

each local community.

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3.12 HSBC B0/; , Copo0"e

I;e/"%"!-

The (e8agon logo of (&B% deri!es from (&B%/s traditional flag, a white rectangle

di!ided diagonally. =i*e many other (ong ong company flags in the last century,

the design of the flag was "ased on the cross of &T.Andrew, The >atron &aint of

&cotland.

(&B% "rand ; corporate identity represents what (&B% wants its "rand to mean

to its customer. 4t is deri!ed from the groups:

Corporate Character

(&B% is a prudent, cost conscious, ethically grounded, conser!ati!e, trustworthy

international "uilder of long5term customer relationships.

Basic )rives

(igher producti!ity, Team 'rientation, %reati!e 'rganization ; %ustomer

'rientation.

Dision

To "e the world/s leading financial company.

The essence of (&B% "rand is integrity, trust and e8cellent customer ser!ice. 4t

gi!es confidence to customers, !alue to in!estors ; comfort to colleagues.

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3.13 HSBC %/ B0/70;e$#-

The (&B% Asia >acific group represents (&B% in Bangladesh. (&B% opened it/s

first "ranch in )ha*a in th )ecem"er, C to pro!ide personal "an*ing

ser!ices, trade and corporate ser!ices, and custody ser!ices. The Ban* was

awarded 4&'002 accreditation for its personal and "usiness "an*ing ser!ices,

which co!er trade ser!ices, securities and safe custody, corporate "an*ing,

(e8agon and all personal "an*ing. This 4&'002 designation is the first of its *ind

for a "an* in Bangladesh. The (ong ong and &hanghai Ban*ing %orporation

Bangladesh =td. primarily limited its operations to help garments industry and to

commercial "an*ing. =atter, it is e8tended to pharmaceuticals, 7ute and consumer

products. 'ther ser!ices include cash management, treasury, securities, and

custodial ser!ice.

9ealizing the huge potential and growth in personal "an*ing industry in

Bangladesh, (&B% e8tended its operation to the personal "an*ing sector in

Bangladesh and within a !ery short span of time it was a"le to "uild up a huge

client "ase. -8tending its operation further, (&B% opened a "ranch at %hittagong,

three "ranch offices at )ha*a $6ulshan, Moti7heel and )hanmondi+ and an

offshore "an*ing unit on o!em"er 1. At 30 Fune 2003, the num"er of

employees of this "an* in Bangladesh was 2


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(&B% Bangladesh is under strict super!ision of (&B% Asia >acific 6roup, (ong

ong. The %hief -8ecuti!e 'fficer of (&B% Bangladesh manages the whole

"an*ing operation of (&B% in Bangladesh. nder the %-' there are heads of

departments who manage specific "an*ing functions e.g. >ersonal "an*ing,

corporate "an*ing, etc.

%urrently (&B% Bangladesh is pro!iding a wide range of ser!ices "oth two

indi!idual and corporate le!el customers. 4n the year 2000, the "an* launched a

wide array of personal "an*ing products designed for all *inds of $middle and

higher5middle income+ indi!idual customers. &ome such products were >ersonal

loans, car loans, etc. 9ecently the "an* launched three of its personal "an*ing

products G Ta8 loan, >ersonal secured loan ; Automated Tele Ban*ing $ATB+

ser!ice. These products are designed to meet the di!erse customer needs more

completely.

(&B% in Bangladesh also specializes in self5ser!ice "an*ing through pro!iding 2E5

hour ATM ser!ices. 9ecently it has introduced )ay ; ight "an*ing "y installing

-asy5pay machines in Banani, ttara and )hanmondi to "etter satisfy the needs

of "oth customers and non5customers. 4n total (&B% currently has ATM/s $< on5

site ; E offsite+ and 3 -asy5pay machines located at !arious geographical areas of

)ha*a ; %hittagong.

36


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3.14 HSBC BANG'ADESH AT A G'ANCE-

4ame of the Orani+ation: The (ong ong &hanghai Ban*ing

%orporation Bangladesh =T)

5ear of 1stablishment: C

Head Office: Anchor Tower, 5B &onargaon 9oad

)ha*a 20


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7anaement: 7r! )avid @ Griffits

%hief -8ecuti!e 'fficer

7r! Aasim -dnan Aahed

%hief 'perating 'fficer

7r! 7amoon 7 ShahManager, >ersonal inancial &er!ices

7r! -dil &slam(ead of %orporate Ban*ing

7r! Syed - H 3ddinManager, (uman 9esources

7r! 7unir HussainManager, Mar*eting

4umber of Offices: < $)ha*a, Moti7heel, 6ulshan,

)hanmondi ; %hittagong+

4umber of -T7Es:

4umber of 1asy 6ay

7achines: 3

4umber of employees: 2


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3.1 HSBC B0/70;e$# O


40/148

3. emal Atatur* A!enue, Banani 5 )ha*a

E. %oncord Twin Towers, &hantinagar G )ha*a

3.1& O70/%=0"%o/0 H%e0c#! A"

HSBC> B0/70;e$#-

(&B% follows a E layer management philosophy in Bangladesh. These are

Managers, -8ecuti!es, 'fficers ; Assistant officers. The %-' is the top most

authority of all the le!els. Managers are the departmental heads who are

responsi"le for the acti!ities of their departments. They are the heads of the

department and formulate strategies for that department. e.g. (uman 9esources

Manger. -8ecuti!es ha!e the authority ne8t to managers. They are "asically

responsi"le for certain acti!ities ; organizational functions. e.g. Admin -8ecuti!e.

These two layers represent the management le!el of (&B% Bangladesh.

'fficers are the ne8t persons to stand in the hierarchy list. They are the typical

mid5le!el employees of (&B% organizational hierarchy. These officers are

responsi"le for managing the operational acti!ities and operating le!el

employees. The operating le!el employees of (&B% who are ran*ed as Assistant

'fficer fill the last layer of this hierarchy. They perform they day5to5day

operational acti!ities of (&B%. An organizational hierarchy chart is shown "elow:

40

7anaers

1=ecutives

Officers

-ssistant Officers


41/148

3.1( ORGANI?ATIONA' STRUCTURE OF

HSBC B0/70;e$#-

%!"*!" Chief 1=ecutive Committee:

The organizational structure of (&B% Bangladesh is designed according to the

!arious ser!ice and functional departments. The %hief -8ecuti!e 'fficer $%-'+

heads the chief e8ecuti!e committee, which decides on all the strategic aspect of

(&B%. The %-' is the person who super!ises the heads of all the departments

and also is the ultimate authority of (&B% Bangladesh. (e is responsi"le for the

all the acti!ities of (&B% Bangladesh and all its consequences. (e administers all

the functional departments and communicates with the department heads for

smooth functioning of the organization. The (&B% %hief -8ecuti!e %ommittee is

formed with the heads of all departments along with the %-'. The structure of

this top5most authority is shown in the figure a"o!e. Besides the %-' the %-% is

staffed with < more managers: %hief 'perating 'fficer, Manager >ersonal

inancial &er!ices (ead of %orporate Ban*ing, Manager (uman 9esource

)epartment and Manager Mar*eting.

41

% h i e f ' p e r a t in g

' f f ic e r

M a n a g e r

> e r s o n a l A i n a n c i a l & e r ! i c e s

( e a d o f

% o r p o r a t e B a n * i n g

M a n a g e r

( u m a n 9 e s o u r c e ) e p a r t m e n t

M a n a g e r

M a r * e t i n g

% h i e f - 8 e c u t i ! e ' f f i c e r


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3.1 F/c"%o/0 Dep0"@e/"$ oersonal Ban*ing, etc.+. There are C ma7or functional departments at

(&B%: (uman 9esources, &er!ices, inancial %ontrol, >ersonal Ban*ing,

%orporate Ban*ing and Mar*eting. ?ithin these ma7or departments there are

some other su"sidiary departments that allow smooth operation of their own

ma7or departmental function. A graphical presentation of all the departments

$Ma7or ; minor+ is shown in the following page. A "rief functional description of

these departments is discussed "elow:

Functional Departments of HSBC

NNNNNNNNNNN

4T G 4nformation Technology

>%M G >ayment and cash management

(B G (&B% uni!ersal Ban*ing

42


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%!"!" Human 0esource )epartment:

The (uman resource Manager heads this department. The ma7or functions of this

department are 9ecruitment, Training and de!elopments, >ersonnel &er!ices and

&ecurity. The (9 department is much concerned with the discipline that is set up

"y the (&B% group. (&B% group has got strict rules and regulations for each and

e!ery aspect of "an*ing, e!en for non5"an*ing purposesJ i.e. The )ress %ode. All

these ma7or personnel functions are integrated in the "est possi"le way at (&B%,

which results in its higher producti!ity. The (uman resource officer monitors the

employee staffing and administration acti!ities. The Training officer super!ises

Training, de!elopment ; rotation acti!ities. The structure of the (9 department is

shown "elow:

Structure of Human 0esource )epartment

-O Assistant 'fficer

43


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%!"!"!" 0ecruitment, Trainin and )evelopment:

(&B% Bangladesh limited follows a standard procedure for recruitment and

selection. (owe!er there is no set time period when this recruitment and

selection ta*es place. -ach )epartmental head places the requisition for

recruitment to the (uman resource officer, if any !acancy is created due to $+

9etirement, $2+ 9esignation $3+ )eath, or $E+ -8tra wor* load.

The process for the recruitment of personnel for managerial and non5managerial

le!el differs slightly "ut the "asic steps are same in "oth the cases. The steps

are5

Step- I Initial Screening:

Step- II Screening by Departmental eads:

Step- III !illing of the S"C #ob $pplication !orm %#$!

Step- I' Screening on the basis of S$!:

Step- ' Initial Intervie(

Step )'I Selection for (ritten test

Step- 'II *ritten test

Step )'III +valuation of test papers

Step )I, Selection of !inal intervie(ees

Step ), !inal intervie(

Step- ,I Documentation Chec

Step ) ,II .edical +xamination

Step ) ,III /robationary $ppointment:

Step- ,I' Confirmation

4n order to enhance the efficiency of the employees, (&B% gi!es emphasis on the

"oth theoretical and practical training for its personnel. All the training and

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de!elopment programs are aimed at two "asic reasons 5 $+ s*ill de!elopment

$2+ moti!ation through counseling and persuasion to change !alue system. or

the top management or senior Managers there is pro!ision for o!erseeing training

arranged "y (&B% group. or the mid5le!el manager or other managerial le!el

there is pro!ision for regional training courses. Besides, for non5management

le!el there are training programs arranged in different institution and also with in

the organization. or the operati!es, !arious on the 7o"5training program are

conducted within the company. inally, (&B% follows a performance "ased

promotion system for all le!els of its employees.

%!"!"!$ 6erformance -ppraisal

The company follows "oth rating and descripti!e systems for the performance

appraisal. Although the appraisal system is non5participati!e "ut the employees

are annually assessed with a 7oint consultation with their immediate super!isor

and departmental head.

9ating is mainly done on the following factors5

i+ nowledge of wor*

ii+ Accuracy and 9elia"ility

iii+ &peed

i!+ 6eneral intelligence

!+ &ense of responsi"ility and duty

!i+ )iligence

!ii+ 4nitiati!e and self confidence

!iii+ 9eadiness to wor* for and with others.

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%!"!"!% Aelfare -ctivities:

(&B% has many well5structured welfare policies for its employees. These include

well5structured wage ; salary policy, medical facility, sports ; cultural facilities,

pro!ision for loans at a minimal rate, free uniform etc. These welfare policies aim

at strengthening the relationship of the employees to the organizations and ma*e

them more responsi"le in their respecti!e positions.

%!"!$ Services )epartment:

This is an integral and !ital part of the "an*. The ser!ices department ensures

smooth operation and functioning within and "etween all the departments of

(&B%. 4t also pro!ides continuous support to the core "an*ing acti!ities of (&B%.

The Manager of &er!ices heads this department who formulates and manages

!arious critical issues of the ser!ices function of (&B%. (e is followed "y a group

of e8ecuti!es who are the heads of !arious su"sidiary di!isions that operate

within the ser!ices department. The ser!ices department is considered as the

"ac*"one of all other departments. The !arious su"sidiary di!ision within this

department are Administration, 4T, 4nternal %ontrol $4%+, etwor* &er!ices %enter

$&%+, and (B. A structure of the ser!ices department is presented "elow

followed "y a "riefing of the su"sidiary di!isions:

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%!"!$!" -)7&4&ST0-T&O4:

=i*e that of any other organizations, the Admin department of (&B% ma*es sure

that the organizations mo!es on with all its departments and staffs operating

according to all the rules and regulations of the company. 4t also pre!ents any

"ottlenec*s within the wor* process and ensures smooth functioning. The admin

department has two di!isions G general administration and Business support

ser!ices.

The general admin di!ision is pretty much similar to the admin departments of

other companies that ensure discipline and regulatory concerns. The "usiness

support ser!ices pro!ide supports to the departments during employee lea!es

and sudden terminations so that the department can function without pro"lems.

%!"!$!" &T

This department gi!es the software and hardware supports to different

departments of the "an*. As (&B% is engaged in online "an*ing, the role of 4T is

!ery crucial for the "an*. This department is the most acti!e department of (&B%

where employees always stand "y to sol!e any pro"lems in the system. The

managers and e8ecuti!es of 4T di!ision wor* continuously to de!elop the total 4T

system of (&B% so that it can "e operated with ease, accuracy and speed.

%!"!$!% &4T104- CO4T0O:

(&B% has internal auditors who !isit on regular "asis and su"mit the report to the

higher authority for audit purposes. This gi!es different departments the chance

to *now their mista*es and ta*e necessary correcti!e actions. Again, the Ban*

annually administers a company wide audit program to e!aluate the o!erall

performance of the "an* in Bangladesh.

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%!"!$!( HSBC 3niversal Ban


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3!"3 /inancial Control )epartment 8/C);:

This is considered as the most powerful department of (&B%. 4t *eeps trac*s of

each and e!ery transaction made within (&B% Bangladesh. 4t is headed "y

Manager of %) who ensures that all the transactions are made according to rules

and regulation of (&B% group. Kiolation of such rules can "ring serious

consequences for the law"rea*er. The functions of %) are "riefly discussed

"elow along with an organ gram of the department:

555

FC Foreign Correspondence

PCM Payment & cas management

!CM !"t#ard cas management

49


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%!"!%!" /orein Correspondence 8/C;:

% *eeps records of all the accounts of (&B%. All the !ouchers, notes, ad!ices

and transaction reports of the "ranches are sent to % for record *eeping

purposes. % also prepares the financial statements for the "an*s and decided

upon "an*s assets and lia"ilities. 4t also deals with the returns that are su"mitted

to the %entral Ban* on regular inter!al.

%!"!%!$ Treasury:

This department wor*s under %). Their main 7o" is to ta*e decisions regarding

purchase and sell of foreign %urrency. The purpose of TreasuryHs operations is to

utilize the funds effecti!ely and arrange funds at a lowest possi"le rate of

interest, through maintaining effecti!e relationship with other "an*s and following

the 6o!ernment rules and foreign e8change regulations

%!"!%!% 6ayment and cash 7anaement 86C7;:

>%M deals with the inter5"an* payment. >%M strategies are designed to ensure

efficiency, profita"ly and comprehensi!e support.

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%!"!( 6ersonal Ban=B is the most flourishing department of (&B% Bangladesh. This department

"asically deals with the management of products and ser!ices offered to the in

indi!idual consumers. ?ithin a span of only se!en years, (&B% >=B has grown

tremendously and is still growing with its inno!ati!e products and ser!ice

offerings. Manager of >=B, Mr. Mamoon M &hah, manages this department. (e is

the person "ehind the astounding growth of >=B department in (&B% Bangladesh.

%hief of >=B manages and super!ises the >ersonal Ban*ing acti!ities of the

"ranch networ* of (&B% Bangladesh. The < "ranches of (&B% "asically deal with

the personal "an*ing acti!ities and pro!ide !arious accounts ser!ices to indi!idual

customers.

%!"!(!" Branch networ=B

products, opening new accounts, pro!iding cash, remittance and other teller

ser!ices, etc. the "ranches are quite decentralized for "etter deli!ery of ser!ices

to customer and ha!e their own premises and facilities. These "ranches are

headed "y "ranch managers. -ach "ranch is staffed with its own team of

employees. A great deal of teamwor* is seen within these "ranches. ATM/s are

situated with each "ranch premises.

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%!"!(!$ Credit )epartment:

The personal "an*ing credit department deals with the consumer credit schemes

such as the >ersonal loan, car loan, personal secured loan, personal secured

credit etc. which are tailored to meet the demand of indi!idual customers. The

manager of >=B credit, Mr. uad @usuf han, appro!es and administers all the

acti!ities of this department. (e is staffed with two loan appro!al officers, two

loan processing officer, two assistant officers and one M4& cler*. The appro!al

officers mainly re7ect or appro!e the credit requests. After "eing chec*ed "y the

appro!al officers, the credit requests go to the processing officers for further

processing of the application.

%!"!(!% -T7 Center:

The ATM center ensures smooth operation of the ATM machines that are located

at )ha*a and %hittagong. The ATM center is responsi"le for regular replenishment

of the off5site ATM/s and ser!icing of all the ATMs. %urrently a total ATMs are in

operation. The ATM center also deals with issuance, termination and ser!icing of

the ATM cards. Basically, the ATM center is the department that is solely

responsi"le for all the acti!ities related to ATM and is the facilitating department

that ena"les customers 2E hour "an*ing support.

%!"!(!( -TB center:

ATB refers to Automated Tele Ban*ing. This department deals with the "ac* office

ser!icing of the (&B% phone "an*ing ser!ices pro!ided to customers. This

department is "asically responsi"le for the acti!ation of ATB, ATB pin generation,

and ATB security management, ATB "loc*ing and trou"leshooting of all ATB

pro"lems. %urrently this department is staffed with one e8ecuti!e and an officer

52


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%!"!' Corporate Ban


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communicate with the clients and are solely responsi"le for the companies they

deal in. Any information regarding a corporate client must "e communicated

through the respecti!e 9M assigned to that corporate client. A relationship

manager may "e assigned more than one company and this decision depends on

the (ead of %orporate Ban*ing.

%!"!'!% H1-GO4:

The (e8agon department deals with all aspects related to (&B%/s unique "an*ing

software product 5 (e8agon. 4t is the glo"al -lectronic Ban*ing system of (&B%,

which offers the customers more con!enient and efficient "an*ing than e!er

"efore. 4t is an inno!ati!e des*top "an*ing system de!eloped "y the (&B% group,

which operates !ia the group/s proprietary worldwide communications networ*.

%!"!'!( HSBC T0-)1 S10D&C1S 8HTD;Trade ser!ice is *nown "y !arious names in other "an*s, e.g. Trade inance

oreign -8change, oreign Trade etc. (owe!er, the functions are the same. As

the name suggests, this department is in!ol!ed in facilitating trade, "oth

international ; within Bangladesh. (&B% is the leading pro!ider of trade finance

and related ser!ices to importers and e8porters in Asia. Trade is considered a

core "usiness of the group. The group/s presence in 1 countries of the world

gi!es a good opportunity to control "oth ends of a trade transaction and *eep the

"usiness within the 6roup. The !arious awards it has won from the leading

pu"lications of the world ac*nowledge (&B%/s e8cellence in trade. The trade

ser!ice department has two separate su"sidiaries: %redit Administration ;

oreign -8change )i!ision.

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%redit Administration department "asically deals with all the documentation,

processing, administration and dis"ursement of the import5e8port ser!ices

pro!ided to corporate clients. This department is *nown to "e the heart of (&B%

trade ser!ices that administers and manages all the trade tools and facilities

pro!ided "y (&B% %orporate Ban*ing. &ome important aspects of this department

are =% ad!ising, documentation, ') facilities, guarantees, etc.

The or5e8 di!ision of trade ser!ices is solely concerned with the management of

oreign e8change inflow and outflow. The or5e8 di!ision of trade ser!ice in

relation with &% and %) manages the foreign currency traffic of (&B% that

originates from %orporate Ban*ing and trade ser!ices.

%!"!# 7arromotion ; Mar*eting Administration. This di!ision

are discussed "elow:

%!"!#!" )irect Sales 8)S;:

An e8ecuti!e is assigned to this part of the mar*eting department. The )irect

&ales di!ision coordinate ; manages the sales acti!ities of all the Mo"ile sales

officers $M&'+ of (&B% Bangladesh. The M&'/s "asically ma*es sales of the

company !arious >ersonal Ban*ing products such as, sa!ings accounts, consumer

55


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loan, etc outside the "an*ing premises. There are a total of more than < mo"ile

sales officers $M&'+ employed in the cities of )ha*a and %hittagong. The M&'/s

are assigned to specific "ranches for ma*ing sales acti!ities more smoothly. The

)& e8ecuti!e sets sales strategies ; targets for the &ales officers and manages

the whole team of M&'/s in Bangladesh. The direct sales department also decides

upon the commission and remuneration of the mo"ile sales officers as their salary

structure is "ased on sales performances. Thus this part of the mar*eting

di!ision is !ery important for the o!erall growth of the >ersonal Ban*ing )i!ision.

%!"!#!$ 6romotion:

This part of the mar*eting department deals with all the promotional acti!ities of

(&B% Bangladesh. >rime responsi"ilities of this department are: Maintaining

strong pu"lic relations with !arious media intermediaries, Ad!ertising the

companies products and ser!ices, "uilding a strong corporate image of (&B% in

Bangladesh.

%!"!#!% 6ublic 0elations:

The promotion department organizes !arious en!ironmental and social acti!ities

in order to "uild a strong corporate image of (&B% in the minds of customers as

well as in the media. Maintaining strong relationship with news media is another

ma7or duty of this department.

%!"!#!( -dvertisin:

The promotion also coordinates all the ad!ertising of (&B% products within

Bangladesh. &ome of the ad!ertising tools that are frequently used "y the

company are as follows:

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a+ ewspapers Ad!ertising: 9egular ad!ertisements of !arious products and

ser!ices of (&B% are gi!en in some of the countries most renowned daily

newspapers.

"+ Bill"oards: (uge colourful "ill"oards with (&B% logo are found in !arious

ma7or areas of )ha*a and %hittagong. These "ill"oards emphasize on the

needs of customers and shows (&B% logo as solution to their needs.

c+ 9oad &ide &ignposts: Medium sized multi colour signposts focusing on

!arious products of (&B% are found on the roadsides of !arious posh areas

such as, 6ulshan, )hanmondi, Baridhara, Moti7heel, etc.

d+ Mailers: !arious product updates and new product information are

regularly sent to e8isting customers of (&B%.

e+ Brochures: Karious colourful "rochures featuring specific products of (&B%

are "eing displayed and distri"uted to e8isting and potential customers !ia

"ranch offices and Mo"ile sales officers.

These are some of the promotional acti!ities managed and coordinated "y the

promotion department.

%!"!#!' 7ar


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4n these are the ma7or departments of (&B% Bangladesh. -8cept the "ranches all

other departments are situated at (&B% Bangladesh head offices located at

Anchor Tower, awran Bazar. Most of (&B%/s operation and acti!ities are

operated centrally from the head office. But to deal with customers more

completely, the "ranches are gi!en considera"le authority and they operate in a

more decentralized manner "ut su"7ect to !erification of the respecti!e

departments.

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3.1 PRODUCTS , SERVICES

(&B% Bangladesh carries out all traditional functions, which a commercial Ban*

performs such as Mo"ilization of deposit, dis"ursement of loan, in!estment of

funds, financing e8port ; import "usiness, trade ; commerce ; so on. Besides it

also offers some specialized ser!ices to its customers. >roducts ; ser!ices offered

"y (&B% can "e categorized according to the customers they ser!e. Thus two

ma7or groups can "e identified. They are G indi!idual customers or consumers ;

corporate customers or organizations. An in5depth analysis of (&B%/s product and

ser!ices in Bangladesh is presented in this section. irst of all, the lia"ility

products of the "an* are discussed. Then, the !arious products and ser!ices of

personal "an*ing di!ision will "e presented. The summary of all the products and

ser!ices of (&B% Bangladesh is displayed in the following page with the help of a

diagram.

%!"9!" 6roducts F Services: iabilities

The financial products of (&B% can "e categorized into two groups G Asset

products and lia"ility products. Asset products are the !arious types of credit and

loan schemes offered to consumers whereas the lia"ility products consist of all

the sa!ings and deposit schemes offered to customers. 4n the following section,

the lia"ility products of (&B% are descri"ed "riefly:

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60


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%!"9!"!" Savins -ccount :

Th i s i s a depos i t o ry a ccoun t "a s i ca l l y des i gned f o r sma l l 5 s ca l e

sa!e r s . Th i s i s an i n t e res t "ea r i ng a ccoun t and t he f ea tu res o f

th i s account a re as f o l l ows:

'pening "alance T*


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o restrictions on num"er of Transactions

o yearly ledger fee

on interest "earing

ree ATM card and phone "an*ing ser!ice

%an "e opened only "y:

o 4ndi!iduals $7oint or single+

o >roprietorship companies

o >artnership companies

o =imited %ompanies

o =iason offices

o 6'/s

)ocumentation needed: !arious *inds of documents are needed for the

companies such as memorandum of association, "oard resolution, etc.

howe!er the requirements for indi!iduals are same as the sa!ings account.

%!"9!"!% SH O 0 T T 1 0 7 ) 1 6 O S & T 8ST);:

These accounts are opened mostly "y the organizations. 'rganizations normally

maintain current accounts in the "an*s. They need to transact "ul* amount

regularly that/s why, current account fits with their requirements. As current

accounts do not pro!ide any interests and as the organizations cannot ha!e

sa!ings account, they are depri!ed of earning any interest despite ha!ing huge

deposit in their accounts. O&hort5term deposit/ accounts ena"le them to earn

interests from their accounts. These *inds of accounts share some properties of

"oth current and sa!ings accounts. The account pro!ides interests which are li*e

the sa!ings accounts and the holder can withdraw any amount any time from his

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account which is a property of the current account. 4ndi!iduals especially,

"usinessmen maintain such accounts.

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%!"9!"!( /&1))16OS&T:

4t is also *nown as term deposits. These deposits are made in the "an* for a fi8ed

period of time. This period of time should "e specified in ad!ance. The "an*

needs not maintain cash reser!es against these deposits ; therefore, it offers

interest rates that are higher than the sa!ings accounts.

%!"9!"!' 0esidents /orein Currency Current accounts:

B) nationals residing a"road open this account. oreign nationals residing a"road

or in Bangladesh, oreign firms registered a"road, Bangladeshis wor*ing in

multinationals at Bangladesh and recei!ing salary in % can also open such

account. The account is non5interest "earing and there are !arious *inds of

restrictions for withdrawals and deposits. The account can "e maintained in -uro

$-9+, >ound &terling $6B>+ and & )ollar $&)+.

%!"9!"!# 4onresident forein currency accounts:

These are time deposit interest "earing accounts. They can "e opened "y all non5

resident Bangladeshi nationals, persons ha!ing dual citizenship, shipping staffs,

etc. they can "e maintained in -9, 6B> ; &) currencies. These accounts are

strictly monitored "y the central "an* and restrictions e8ist for these accounts.

%!"9!"!* 0esident forein currency deposit accounts

Balances in these accounts are freely transfera"le a"road without any restriction

from Bangladesh "an*. 9esident Bangladeshis returning from a"road can open

this account within one month of hisher return.

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%!"9!"! Convertible Ta


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Services offered to these accounts:

?ide ranges of ser!ices are offered to the customers who hold these accounts.

&ome such ser!ices are:

ree ATM %ard, chec* "oo* ; phone "an*ing ser!ice

%hequescash deposits

&tanding instruction

Luarterlymonthly statement of account

oreign currency -ndorsement against tra!el quota and sale of Tra!elers

cheques $Thomas %oo*+.

4ssue of &ol!encyBan* certificate

>ayment orders, demand drafts, Telegraphic transfers.

4nward and outward funds transfer and recei!ing.

&ome unique ser!ices are also pro!ided to customers using (&B% accounts.

These ser!ices are >hone Ban*ing, &elf &er!ice Ban*ing ; >ower !antage

&cheme.

%!"9!$ 6ersonal Ban


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%!"9!$!" 6ersonal &nstallment oan 86&;:

This loan is *nown as the any5purpose consumer loan of (&B%. This loan

is currently the "est product of (&B% Bangladesh and is gi!en to (&B%

customers. The customers can a!ail this loan for any of his personal needs

such as, tra!eling, purchase of household goods, computer purchase, etc.

4n!oices or quotations are not required for these loans, as the "an* will

dis"urse the credit amount directly to customers account.

o >ersonal guarantee or cash security is required to support the loan.

-!en no down payment is required to dis"urse this loan.

The main feature of the >4= is simplicity. This means "y completing !ery

simple and easy documents the customers can apply for the loan.

=ow and !ery competiti!e interest rates are offered for this loan with !ery

low processing fee and stamp charges. The interest rate is on

reducing "alance and 1 for salary account customers.

Anyone who is at least 2< years old, employed in a well5esta"lished

company for 2 years with a minimum monthly income of T


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=oan repayments are made in form of equal monthly installments $-M4+.

The customers ha!e the fle8i"ility of choosing the repayment period $2,

2E or 3C months+. The monthly installment is automatically de"ited from

the customers personal account held with (&B%.

>ro!isions for partial repayments and early settlement of the loan are also

present "ut the customer has to pay the respecti!e fees of settlement.

=oans are appro!ed at the sole discretion of (&B% credit authority and

re7ections are unquestiona"le.

%!"9!$!$ C-0 O-4

%ar loan is pro!ided to (&B% customers to purchase personal cars. This

loan is the second "est product of (&B% that finances the cost of the car

for its customers.

The scheme co!ers loans ranging from T00,000 to T*


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The interest rate on the loan is


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or >ersonal secured credit $short term+ the interest is calculated on the

daily outstanding loan amount and for personal secured loan $long term+

the rate is calculates annually.

acilities are repaid when either time deposits are withdrawn or go!t.

"onds mature.

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3.25 HSBC Gop , HSBC B0/70;e$#

The parent company of (&B% Bangladesh is The (&B% 6roup represented "y

(&B% Asia >acific, headquartered at (ong ong. They are the ma7or

shareholders of (&B% Bangladesh. The operations in Bangladesh are under the

super!ision of (&B% Asia >acific 9egion and are managed, regulated, monitored

and controlled "y them.

The management of (&B% Bangladesh is trained "y (&B% 6roup. All the fi!e top5

le!el managers of (&B% Bangladesh are international managers and ha!e the

corporate sense of Management. These top5le!el managers are appointed "y the

(&B% group "oth glo"ally and locally. 4n case of unusual circumstances, the

(&B% 6roup recruits or appoints managers from around the world to manage

specific tas*s or acti!ities.

A group of -8ternal Auditors appointed "y (&B% Asia >acific annually !isits the

(&B% Bangladesh offices in order to assess their effecti!eness, management,

operational efficiency, discipline, rules and regulation. The audit group then

prepares an e8tensi!e report on (&B% Bangladesh and as well as a performance

report of The %-'. This report is then presented to the (&B% Asia >acific

(eadquarters for e!aluation and decision ma*ing purposes

As (&B% Bangladesh is a su"sidiary of (&B% Asia >acific 6roup any new proposal

or target generated from Business Annual Target is passed to the 6roup. The top

management of Bangladesh supplies all the information regarding the new pro7ect

and product. Then the financial analysts at (ong ong office analyzes the

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profita"ility and consequences of the pro7ect and after all the assessments, the

decision is underta*en. The strategies and results are then forwarded to (&B%

Bangladesh for e8ecution and implementation.

The oreign %orrespondence $%+ di!ision at the inancial %ontrol )epartment of

(&B% Bangladesh solely deals with and is responsi"le for su"mitting regular

reports of operation to The (&B% Asia pacific group. These department also

prepares financial statements on all the financial acti!ities of (&B% Bangladesh

and presents them to the %-' for appro!al. After The %-'/s appro!al, the report

is sent to the corporate headquarter $(+ for further e!aluation and consolidation

of the reports into the group annual report.

&o, the parent company and the local company follow a two5way communication

channel. (&B% Bangladesh or any other su"sidiaries are not allowed to ta*e any

ma7or decisions without prior consent of the region headquarters.

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3.21 M0/07e@e/" 0" HSBC B0/70;e$#

(&B%, Bangladesh is one such company that had to o!er come a lot of hurdles to

reach the position it now holds. At present, Mr. )a!id F 6riffiths is the %-'J Mr.

?. Adnan ?ahed is the %hief 'perating 'fficer, Mr. Mamoon M &hah is the %hief

of >ersonal Ban*ing, Mr. &yed A ( ddin is the (uman 9esource Manager and Mr.

Munir (ussain is the Manager, Mar*eting at (&B% Bangladesh.

These fi!e men at the top carried out their management roles e8hausti!ely. They

equally contri"uted to (&B%/s superior leadership, "y carrying out their unique

roles. They wor*ed well together, respecting each other/s a"ilities, ; arguing

openly ; without any rancor when they disagreed.

To maintain a close touch with the organization each man wor*s in separate area

of (&B%/s comple8. Their offices are indistinguisha"le from all other cu"icles

where (&B%/s 7unior e8ecuti!es ; secretaries wor* in. There are no office walls in

(&B% and all the staff starting from the %-' to the lower operating le!el

employee share the same premises under one roof. There are no &pecialized

ca"ins for top management and e8ecuti!es and also no e8ecuti!e dining rooms.

This has created a management team that is unified, cohesi!e ; energetic.

-ach and e!ery employee of (&B% ta*es pride of "eing an employee at (&B% and

his or her pride comes from the freedom of direct communication with the top

management. The management of (&B% is supporti!e in the sense that the top

management deli"erately supports the suggestions, !alues, ideas, inno!ation and

hard wor* of the employees and officer. Again high amount of employee

participation is encountered in the management process. There are also systems

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for awards, incenti!es, and status for inno!ati!e ideas and hard wor*s. Again the

management style can also "e termed as %ollegial as high amounts of team wor*

and participation e8ists "etween the top and "ottom parts of (&B%. Thus

according to my perspecti!e of management style at (&B% Bangladesh falls

somewhere "etween supporti!e and collegial. A graphical presentation is shown

"elow:

74

A#TOCRAT$C

%ower

Authorit&

O'edience

Dependence on

Boss

Su'sistence

(inimum

C#STOD$A)

*conomic Resources

(one&

Securit& and 'enefits

Dependence on

organi+ation

Securit&

%assie cooperationS#%%ORT$-*

)eadershipSupport

.o' performance

%articipation

Status and

recognition

Awa/ened dries

CO))*0$A)

%articipationTeamwor/

Responsi'le

Behaior

Self 1discipline

Self actuali+ation

(oderate

enthusiasmHSBC


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3.22 HSBC C"e

An organization needs to grow itself em"racing some distinct customs ; the more

it grows these norms "ecome a part of their e8istence, which is e!entually

referred as its culture. This culture can "e well defined "y the people of the

organization rather than the people outside the organization. @et in the case of

(&B% "ecause of its strong presence, e!en o"ser!ers feel the uniqueness of

O(&B% culture/, which can also "e referred as its philosophy. To authenticate this

culture "eing the nurturer of the organization su"sequent characteristics will "e

discussed.

T(- (&B% eeling:T(- (&B% eeling:

All the employees of (&B% ha!e a strong sense of "elongingness towards (&B%.

The (&B% he8agon "rand is also the logo of the (&B% dress code $Tie+. ?ith the

"rand stic* to them, employees feel the (&B% feeling within them, which nurtures

growth and hardwor*ing tendency within their minds.

9e!olutionary culture9e!olutionary culture

(&B% *nows that the organization needs to adapt to a culture consistent with

their operation. The top management of (&B% puts a lot of emphasis on this.

Along with the operation of the organization they also concentrate on the

practiced ; shared norms, !alues ; customs of (&B%, which e!entually has gi!en

"irth to P(&B% cultureQ, a culture incorporated with the re!olutionary operation of

the organization.

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%ompetiti!e culture%ompetiti!e culture

The culture of (&B% is considered so important for the organization that it is

"elie!ed throughout the company as well as "y the people out side (&B%, to "e

an implement, which pro!ide them with competiti!e edge o!er its other

competitors.

)isciplined culture)isciplined culture

Time, the *eynote for discipline is largely emphasized at (&B% ; also "ecause a

culture that is so well coordinated ; has "een portrayed as the canon can not "e

referred as nothing "ut a sense of discipline.

Aware cultureAware culture

4n today/s e!er5changing en!ironment any organization needs to "e "alanced

rather than e8tremist in their practiced norms. 4n case of (&B%, the culture of the

organization has succeeded to find the "alance with the odd mi8ture of discipline

; fle8i"ility in their culture, which only disposition them to "e aware of their

surroundings.

indred cultureindred culture

4n the natural course of professional action, employees are only interested in

what "enefits them. @et in the case of (&B% employees agree to wor* e8tra

hours a day G without e8tra pay G to pro!ide "etter customer ser!ice ; to "rea*

production "ottlenec*s as necessary.

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>roud culture>roud culture

-mployees of (&B% feel proud to "e a part of the (&B% %orporation. Because of

the way things are carried out through out the organization only the "est will

sustain in (&B%. That is why an employee admitted:

P4t/s great to say you wor* at (&B%. @ou *now you/re the "estR @ou *now

you/re really a part of something e8traordinary ; !ery important.Q

Appellati!e cultureAppellati!e culture

The culture of (&B% is such that it has gotten the e8clusi!e identification of (&B%

culture. Fust "ecause of its strong "elief ; !ast practice (&B% culture has "ecome

deep rooted ; to a great e8tent the synonymous for its e8istence. rom the

strategic decisions of the top management to the defined process of carrying out

the operation of the operati!e employees resem"les this culture.

%harismatic culture%harismatic culture

(&B% culture is such, which will attract any"ody to "e a part of the culture. ?ith

its strong presence in the corporation this culture charms the outsiders. As the

culture of the organization is primarily defined "y the top management of (&B% ;

later supported "y the entire organization, the charisma of top people is what

ma*es (&B% a winning team.

Taught cultureTaught culture

The nature of (&B% culture is such that a course is ta*en on it right after the

employees ha!e arri!ed in the organization. The emphasis put on this is to

profuse that one of the mem"ers of (&B%/s top management group ta*es this

course.

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Admissi"le ; enthusiastic cultureAdmissi"le ; enthusiastic culture

6roup of employee says, Pit/s e8citing to *now you may see ; tal* to the !ery top

guy at any time. @ou feel a part of thingsQ.

)irecti!e culture)irecti!e culture

The atmosphere in (&B%, "ecause of the e8treme commitment of the top

management has always "een guided properly. -!entually which created a

culture where the direction of achie!ing their goals is clear ; unde!iating. or

instance, T(- %-'/s ad!ice to the employees cannot "e more directi!e than this:

P@ou ha!e to mo!e fast, to "e first. But you/re in a realm where no one

has done "efore what you/re trying to do. @ou ha!e to measure a"solutely

e!erything, so when something goes wrong, you ha!e some idea of what

went wrong.Q

>roducti!e culture>roducti!e culture

As the culture of any organization usually flow from the top management of the

organization, (&B% definitely is not an e8ception of the fact. &ince the top team

of (&B% consists of hard wor*ing, producti!e e8ecuti!es, the same is e8pected

from the organization.

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3.23 To"0 0%"! M0/07e@e/"

AT HSBC

TLM is the tas* and responsi"ility of e!ery single employee of (&B%. TLM at

(&B% means:

TLM is first of all a system of !alues of thin*ing and acting in quality, in which

e!ery employee has to "e integrated and which has to "e li!ed "y e!ery"ody

in daily "usiness.

OTotalEmeans to align all structure and processes with the customers and

their needs.

2ualitystands as synonym for competiti!eness, it is well the yardstic* for all

quality standards set.

J 7anaementE means a target oriented deployment and implementation of

these requirements through leaders who act and ser!e as role model to their

employees and moti!ate the people.

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The ine criteria that form the "asis for TLM and direct deployment ;

implementation of policies ; strategies At (&B% are as shown in the following

diagram:

9egular Assessment of Luality is conducted at e!ery stages at (&B%:

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%!$%!" &nstructions F Strateies /or T27:

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3.24 Se6%ce M0e"%/7 S"0"e7! o>-)4S+, which had a positi!e gap score of 0.2C. The

dimension that had highest gap was the empathy dimension with a negati!e gap

score of G0.. The gap scores of assurance was G0.22, which depicted the

perceptions fall slightly short of e8pectations. Again relia"ility, responsi!eness

were other dissatisfied dimension with negati!e gap scores of G0.C1 ; 50.1

respecti!ely. The location and products dimensions showed slight moderate gaps

and the scores were G0.3 ; 50.3 respecti!ely. The gap scores of the !arious

dimensions are shown graphically "elow:

126

>7.88

>8.38

>8.28

>8.18

>8.48

8.88

8.48

8.18

GapScores

Reliabilit y Responsivenes Assurance Empat hy Tangibles Locat ions Pr oduct s

Dimensions

Gap Analysis


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'!#!$!$ Service compared to Other ban


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'!#!$!% Complaint 0esolution:

The respondents were as*ed to state that weather they had placed any

complaints to (&B% during their ser!ice life cycle $L32+. Around EC

respondents stated that they had pro"lems with (&B% and had complained where

as


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'!#!$!( Overall Satisfaction Aith HSBC:

Apart from all the indi!idual ratings of !arious attri"utes, features and aspects

the respondents were as*ed to rate their o!erall satisfaction with (&B% $L3+ on

a


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.( IMP'ICATION OF RESU'TS

'!*!" )rivers of Satisfaction:

4f "an*s are to impro!e their satisfaction and loyalty ratings and differentiate

themsel!es from the competition, they need to understand what really dri!es

satisfaction and loyalty. They also need to *now which areas ha!e the greatest

room for impro!ements. There is little point in inter!ening resources in areas that

are important "ut are performing well, or in areas which there is much room for

impro!ement "ut they are not important in dri!ing satisfaction and loyalty. Thus

(&B% managers need to *now what le!ers to push to increase these measures of

success.

'ne useful tool is to search for the most important attri"utes which allows to

analyze those areas that are important and ha!e much room for impro!ements.

4n the following section the most important attri"utes will "e discussed.

'!*!$ 7ost important attributes of the Service:

The analysis of the importance scores across !arious attri"utes of ser!ice quality

dimension pointed out some attri"utes that were highly important to

customers$A>>-)4S+. These attri"utes are listed "elow according to importance:

&peed of ser!ice $LE+

=ocation of the "ranches $L+

=ocation of the ATM/s $L20+

riendliness ; courtesy of the employees $L+

>romptness of error correction $L3+

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eeping >romises $L+

9ates on =oans $L2+

&a!ings ser!ices $L2E+

9ecognition of needs $L+

ees ; ser!ice charges $L23+

These attri"utes were considered as the dri!ers of satisfaction for the customers.

&atisfaction across these attri"utes influenced the o!erall satisfaction towards the

"an*s ser!ices. &ome other attri"utes, which were important to customers "ut

not considered as dri!ers of satisfaction are listed "elow:

4ndi!idual attention $L0+

=oan or credit ser!ices $L2C+

&afety of transactions with (&B% $L+

9elia"ility and accuracy of the statements $L+

%larity of the statements $LC+

>ro"lem sol!ing interest within employees $L2+

>rofessionalism of the employees $L1+

The rest of the attri"utes administered during the sur!ey were found to

moderately important or less important for the customers and were not

considered "y them while deciding on satisfaction scores.

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'!*!% Satisfaction towards the most important attributes:

As mentioned earlier, the ma7or concern of managers is to find out satisfaction of

the customers across the !arious dri!ers of satisfaction $A>>-)4S+. The results

of the sur!ey showed that customers were satisfied only across the following

dri!ers of satisfaction:

riendliness ; courtesy of the employees $L+

ees and ser!ice charges $L23+

&a!ing and deposit ser!ices $L2E+

>romptness error correction $L3+

Thus the a"o!e attri"utes were only !ery few compared to the list of highly

important attri"utes. Again the customers also ran*ed some of the highly

important factors as highly dissatisfactory. These attri"utes thus damaged the

o!erall satisfaction scores drastically. &ome such attri"utes are as follows:

9ecognition of needs "y (&B% $L+

=ocation of Branches $L+

Most of the other dri!ers of satisfaction that were !ery important to customers

showed a!erage satisfaction scores. This depicts that most of the customers are

not !ery satisfied with the attri"utes and are somewhat indifferent with the

attri"utes. This "rought down the o!erall satisfaction scores to the neutral or

a!erage points.

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'!*!( 7ost satisfied aspects of HSBC services:

The respondents showed high satisfaction scores towards some of the attri"utes

of the ser!ice dimensions. Though most of these were not !ery important to

customers they do represent the good side of the ser!ices pro!ided "y (&B%.

&ome such satisfied attri"utes are listed "elow starting from the most satisfied

ones:

eatness of -mployees $LE+

-quipments ; Technology $L1+

riendliness and courtesy of employees $L+

Tele Ban*ing ser!ices $L21+

&afety with (&B% $L+

%leanliness of the premises $L2+

Kisually appealing facilities $L3+

9elia"ility and accuracy of statements $L+

ees and ser!ice charges $L23+

%ash and remittance ser!ices $L2+

&ufficiency of par*ing spaces $L22+

&a!ings ser!ices $L2E+

>romptness of error correction $L3+

&o these were the attri"utes that resem"le strengths of ser!ices pro!ided "y

(&B% ser!ices which were ran*ed as satisfactory "y the respondents.

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'!*!' 7ost dissatisfied aspects of HSBC services:

The respondent while e8pressing their satisfaction !iews toward !arious attri"utes

ran*ed some of the aspects of the ser!ice quality poorly $A>>-)4S+. The poor

scores depict that customer were dissatisfied with these attri"utes of ser!ice.

These dissatisfactory features are the starting points of the attempts for

impro!ing the o!erall customer satisfaction. &uch dissatisfied must "e ta*en care

as early as possi"le. &ome such poorly ran*ed dissatisfied attri"utes are as

follows:

>rofessionalism of the employees $L1+

?illingness to help $L


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'!*!# -SS1SS714T O/ TH1 S10D&C1 23-&T5 )&714S&O4

This research on customer satisfaction of (&B% was designed across the some

dimensions of ser!ice quality. &uch dimensions were responsi"le for influencing

the o!erall ser!ice quality and customer satisfaction of (&B%. 9elia"ility,

9esponsi!eness, Assurance, %are ; empathy, Tangi"les, =ocation ; eatures of

>roducts ; ser!ices were the se!en dimensions used in this sur!ey to assess the

o!erall customer satisfaction. Karious attri"utes of (&B% ser!ices were grouped

within these se!en category and the respondents were as*ed to e8press their

!iews.

The results showed that the most important dimension of ser!ice quality was

relia"ility of the ser!iceG which is a"ility to perform the promised ser!ice

dependa"ly and accurately $A>>-)4S+. (&B% customers e8pressed a!erage

satisfaction along this dimension of ser!ice quality, which implies that (&B%

needs to impro!e more along this direction of ser!ices.

The second most important dimension pointed out was the Assurance dimension

of ser!ice quality G which consists employees *nowledge, courtesy and a"ility to

inspire trust and confidence. The results showed that customers were satisfied

with this dimension of (&B% ser!ices. riendliness of employees and safety with

(&B% are some of the most satisfied attri"utes of this dimension. This indicates

that (&B% should "uild on this dimension of ser!ice quality.

The con!eniency of the =ocations were another of the important dimension

mentioned "y the customers. But the satisfaction with this dimension falls short

of e8pectation and most of the customers are on the a"o!e a!erage side. Thus to

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impro!e customer satisfaction (&B% should impro!e it/s location facilities

according to customer needs and wants. Most of the dissatisfaction came due to

the incon!eniency of the "ranches.

The most satisfied dimension of (&B% came out to "e the tangi"les G which

includes appearance of facilities, equipment, personnel, etc. The importance gi!en

to this attri"ute was a!erage. This implies that (&B% has the "est premises,

equipment and facilities that should "e promoted more aptly to customers.

The most dissatisfied dimension found out in the sur!ey was %are ; -mpathy G

which is %aring ; gi!ing indi!idual attention to customers. This dimension was

moderately important to customers "ut the significance of dissatisfaction along

this attri"ute was se!ere. To impro!e the o!erall satisfaction (&B% should

impro!e its ser!ice concepts and en!isage care ; empathy into the o!erall

customer ser!ices.

=astly, the products ; ser!ices dimension, which included features of the

products, was somewhat important to customers in deciding ser!ice

effecti!eness. A!erage satisfaction was o"ser!ed in this category. 4n!estment

ser!ices ; rates on &a!ings were the two most dissatisfied aspects of this

dimension. To score high on satisfaction, (&B% should consider these two

features and redesign them according to customer needs. ees and ser!ice

charges, sa!ings ser!ices, cash ; remittance ; >hone"an*ing were some of the

most satisfied aspects of this dimension and represent the strengths of (&B%.

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'!*!* Complaint 0esolution F Satisfaction:

The sur!ey found that an important reason of dissatisfaction was dissatisfaction

with the way a customer complaint had "een handled. 'nly 22 respondents

were satisfied with the outcome of a complaint they made. This lac* of

satisfaction influenced 1 of those who had made complaints to hold negati!e

remar*s a"out the o!erall satisfaction of the "an*. The num"er and sort of

complaints were not recorded. %learly, (&B% needs to do "etter in this area.

'!*! 7ajor Competitors of HSBC:

The sur!ey pointed out some of the ma7or competitors of (&B% according to the

customer perceptions $A>>-)4S+. This aspect is !ery important to (&B%

management, as customers are the ultimate person who decided among "an*s.

The offerings and ser!ices of the ma7or competitors can "e analyzed to "etter

understand the customer needs and wants. The sur!ey uniformly e8plored that

&tandard %hartered was the closest competitor of (&B% and also pointed out that

it had a "etter place or ran* in the minds of customers. This is an o"!ious fact

gi!en the size and !olume of &%B/s "usinesses. There are many names that

compete for the second "est competitor of (&B%. But among those >rime Ban*

was found to "e the ne8t "est competitor of (&B% in the minds of customers.

Documents

Report Hsbc