FINAL_PROJECT report on HSBC
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A Study on Customer Satisfaction Towards HSBC Bank
PART-A 1. INDUSTRY PROFILE INTRODUCTION The banking section will navigate through all the aspects of the Banking System in India. It will discuss upon the matters with the birth of the banking concept in the country to new players adding their names in the industry in coming few years. The banker of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has been well defined under three separate heads with one page dedicated to each bank. However, in the introduction part of the entire banking cosmos, the past has been well explained under three different heads namely: History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India The first deals with the history part since the dawn of banking system in India. Government took major step in the 1969 to put the banking sector into systems and it nationalized 14 private banks in the mentioned year. This has been elaborated in Nationalization Banks in India. The last but not the least explains about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI Act 1934 lays down the condition of scheduled commercial banks. The descriptions along with a list of scheduled commercial banks are given on this page. HISTORY OF BANKING IN INDIA Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth
Department of Management Studies, M.S.Engineering College. Bangalore Page 1
A Study on Customer Satisfaction Towards HSBC Bank process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: Early phase from 1786 to 1969 of Indian Banks Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991. To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.
Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of Department of Management Studies, M.S.Engineering College. Bangalore Page 2
A Study on Customer Satisfaction Towards HSBC Bank India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those day’s public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.
Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalized in 1960 on 19th July, 1969, major process of nationalization was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was nationalized. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: 1949: Enactment of Banking Regulation Act. 1955: Nationalization of State Bank of India. 1959: Nationalization of SBI subsidiaries. 1961: Insurance cover extended to deposits. 1969: Nationalization of 14 major banks. 1971: Creation of credit guarantee corporation. 1975: Creation of regional rural banks. 1980: Nationalization of seven banks with deposits over 200 crore. After the nationalization of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Department of Management Studies, M.S.Engineering College. Bangalore Page 3
A Study on Customer Satisfaction Towards HSBC Bank Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.
BANKS IN INDIA In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities. Some are of Indian origin and some are foreign players. All these details and many more is discussed over here. The banks and its relation with the customers, their mode of operation, the names of banks under different groups and other such useful information’s are talked about. One more section has been taken note of is the upcoming foreign banks in India. The RBI has shown certain interest to involve more of foreign banks than the existing one recently. This step has paved a way for few more foreign banks to start business in India. Major Banks in India •
ABN-AMRO Bank
•
Indian Overseas Bank
•
Abu Dhabi Commercial Bank
•
IndusInd Bank
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A Study on Customer Satisfaction Towards HSBC Bank
•
American Express Bank
•
ING Vysya Bank
•
Andhra Bank
•
Jammu & Kashmir Bank
•
Allahabad Bank
•
JPMorgan Chase Bank
•
Bank of Baroda
•
Karnataka Bank
•
Bank of India
•
Karur Vysya Bank
•
Bank of Maharastra
•
Laxmi Vilas Bank
•
Bank of Punjab
•
Oriental Bank of Commerce
•
Bank of Rajasthan
•
Punjab National Bank
•
Bank of Ceylon
•
Punjab & Sind Bank
•
BNP Paribas Bank
•
Scotia Bank
•
Canara Bank
•
South Indian Bank
•
Catholic Syrian Bank
•
Standard Chartered Bank
•
Central Bank of India
•
State Bank of India (SBI)
•
Centurion Bank
•
State Bank of Bikaner & Jaipur
•
China Trust Commercial Bank
•
State Bank of Hyderabad
•
Citi Bank
•
State Bank of Indore
•
City Union Bank
•
State Bank of Mysore
•
Corporation Bank
•
State Bank of Saurastra
•
Dena Bank
•
State Bank of Travancore
•
Deutsche Bank
•
Syndicate Bank
•
Development Credit Bank
•
Taib Bank
•
Dhanalakshmi Bank
•
UCO Bank
•
Federal Bank
•
Union Bank of India
•
HDFC Bank
•
United Bank of India
•
HSBC ICICI Bank
•
United Bank Of India
•
IDBI Bank
•
United Western Bank
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A Study on Customer Satisfaction Towards HSBC Bank
•
Indian Bank
•
UTI Bank
Fact Files of Banks in India The first, the oldest, the largest, the biggest, get all such types of information’s about Banking in India in this section. The first bank in India to be given an ISO Certification The first bank in Northern India to get ISO 9002 certification for their selected branches The first Indian bank to have been started solely with Indian capital The first among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act
Canara Bank
Punjab and Sind Bank
Punjab National Bank
South Indian Bank
India's oldest, largest and most successful commercial bank, offering the widest possible range of domestic, international and NRI products
State Bank of India
and services, through its vast network in India and overseas India's second largest private sector bank and is now the largest scheduled commercial bank in India Bank which started as private shareholders banks, mostly Europeans shareholders
The Federal Bank Limited
Imperial Bank of India
The first Indian bank to open a branch outside India in London in 1946 Bank of India, founded in and the first to open a branch in continental Europe at Paris in 1974 The oldest Public Sector Bank in India having branches all over India and serving the customers for the last 132 years The first Indian commercial bank which was wholly owned and managed by Indians
1906 in Mumbai
Allahabad Bank
Central Bank of India
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A Study on Customer Satisfaction Towards HSBC Bank Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to open a branch outside India in London in 1946 and the first to open a branch in continental Europe at Paris in 1974. PUBLIC SECTOR BANKS: Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.(1932). Oriental Bank of Commerce (OBC), Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan) disbursing small loans. This Public Sector Bank India has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs. The following are the list of Public Sector Banks in India •
Allahabad Bank
•
Andhra Bank
•
Bank of Baroda
•
Bank of India
•
Bank of Maharastra
•
Canara Bank
•
Central Bank of India
•
Corporation Bank
•
Dena Bank
•
Indian Bank
•
Indian Overseas Bank
•
Oriental Bank of Commerce
•
Punjab & Sind Bank
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A Study on Customer Satisfaction Towards HSBC Bank •
Punjab National Bank
•
Syndicate Bank
•
UCO Bank
•
Union Bank of India
•
United Bank of India
•
Vijaya Bank
List of State Bank of India and its subsidiary, a Public Sector Banks •
State Bank of India ○
State Bank of Bikaner & Jaipur
○
State Bank of Hyderabad
○
State Bank of Indore
○
State Bank of Mysore
○
State Bank of Saurastra
○
State Bank of Travancore
PRIVATE SECTOR BANKS: Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. ING Vysya, yet another Private Bank of India was incorporated in the year 1930. Bangalore has a pride of place for having the first branch inception in the year 1934. With
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A Study on Customer Satisfaction Towards HSBC Bank successive years of patronage and constantly setting new standards in banking, ING Vysya Bank has many credits to its account. List of Private Banks in India •
Bank of Punjab
•
Bank of Rajasthan
•
Catholic Syrian Bank
•
Centurion Bank
•
City Union Bank
•
Dhanalakshmi Bank
•
Development Credit Bank
•
Federal Bank
•
HDFC Bank
•
ICICI Bank
•
IDBI Bank
•
IndusInd Bank
•
ING Vysya Bank
•
Jammu & Kashmir Bank
•
Karnataka Bank
•
Karur Vysya Bank
•
Laxmi Vilas Bank
•
South Indian Bank
•
United Western Bank
INDIAN BANKING INDUSTRY The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth. Department of Management Studies, M.S.Engineering College. Bangalore Page 9
A Study on Customer Satisfaction Towards HSBC Bank The country’s middle class accounts for over 320 million People. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion. The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, and technological innovations are all contributing to this growth.
The Indian banking Industry is in the middle of an IT revolution, Focusing on the expansion of retail and rural banking. Players are becoming increasingly customer centric in
their approach, which has resulted in innovative methods of offering new
banking products and services.
Banks are now realizing
the importance of being a
big player and are beginning to focus their attention on mergers take
advantage
of economies of
scale and/or
comply
and acquisitions to with
Basel II
regulation.“Indian banking industry assets are expected to reach US$1 trillion by 2010 and are poised to receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in Celent's banking group and author of the report. “The banking industry should focus on Department of Management Studies, M.S.Engineering College. Bangalore Page 10
A Study on Customer Satisfaction Towards HSBC Bank having a small number of large players that can compete globally rather than having a large number of fragmented players."
2. COMPANY PROFILE Company History: The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China. The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realized that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank, which opened in Hong Kong in March 1865 and in Shanghai a month later. Soon after its formation the bank opened agencies and branches around the world. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries. In Japan, where a branch was established in 1866, the bank acted as adviser to the government on banking and currency. In 1888, it was the first bank to be established in Thailand, where it printed the country’s first banknotes. From the outset trade finance was a strong feature of the local and international business of the bank, an expertise that has been recognized throughout its history. Bullion, exchange, merchant banking and note issuing also played an important part. By the 1880s, the bank was acting as banker to the Hong Kong government and also participated in the management of British government accounts in China, Japan, Penang and Singapore. In 1874 the bank handled China’s first public loan and thereafter issued most of China’s public loans. What is HSBC? We are the world’s local bank. Department of Management Studies, M.S.Engineering College. Bangalore Page 11
A Study on Customer Satisfaction Towards HSBC Bank Headquarters in London, HSBC is one of the largest banking & financial services organization in the world. HSBC’s international network comprises over 9500 offices in 76 countries & territories in Europe, the Asia-Pacific region, the Americas, the Middle East & Africa. With listings on the London, Hongkong, New York, Paris & Bermuda stock exchange shares in HSBC holdings places are held by nearly 200,000 shareholders in some 100 countries & territories. The shares are traded on the New York stock exchange in the form of American Depository Receipts. Through an international network linked by advertisement techniques, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services like1. Personal financial services 2. Commercial Banking 3. Corporate Banking 4. Investment Banking
A) BACKGROUND AND INCEPTION THE HSBC GROUP IN INDIA Year of commencement of operations in India The Mercantile Bank of India, China & London
: 1853
The Hong Kong & Shanghai Banking Corporation Limited (HBAP)
: 1867
HSBC Securities & Capital Markets (India) Private Limited (HBAP) : 1995 HSBC Electronic Data Processing India Private Limited (HDPI)
: 2000
HSBC Primary Dealership (India) Private Limited (HCPD)
: 2001
HSBC Professional Services (India) Private Limited (HPSI)
: 2001
HSBC Software Development (India) Private Limited (HSDI)
: 2002
HSBC Asset Management (India) Private Limited (ISIN)
: 2002
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A Study on Customer Satisfaction Towards HSBC Bank HSBC Insurance Brokers (India) Private Limited (ININ)
: 2003
HSBC Operations & processing enterprise (India) Pvt. Ltd. (HOPE)
: 2003
Canara HSBC Oriental bank of commerce Life insurance co. Ltd.
: 2008
HSBC Group Entities in India Commercial Banking The Hongkong and Shanghai Banking Corporation Limited (HSBC) Personal Banking HSBC offers a wide range of personal financial services, including personal lending and deposit products, through its branch network in Ahmedabad, Bangalore, Chennai, Chandigarh, Coimbatore, Gurgaon, Hyderabad, Jaipur, Kochi, Kolkata, Ludhiana, Mumbai, New Delhi, Noida, Pune, Thane, Trivandrum and Visakhapatnam. Also offered branch-wide are international Gold and Classic credit cards from VISA and MasterCard and debit cards from Visa. Customers have access to 24-hour banking services through an extensive network of automated teller machines (ATMs), an integrated Call Centre, and internet banking - online@hsbc. Non Resident Indian Banking HSBC's Non Resident Indian Banking (NRI) centres located in Asia-Pacific, the Middle East, Europe and North America, together with HSBC's offices worldwide, provide the international Indian Diaspora access to a range of products and services. These include NRI related investment (both international and domestic), transactional and deposit products, together with a full range of personal and private banking products in India and overseas. Internet banking also provides easy access to HSBC's services. Financial Planning Services Services include investment and custodian management and access to stock broking and insurance services, which are offered to resident as well as non-resident Indians.
Corporate Banking HSBC has well-established, long-term corporate banking relationships with large domestic Indian corporations and foreign multinationals operating in India. Services include term Department of Management Studies, M.S.Engineering College. Bangalore Page 13
A Study on Customer Satisfaction Towards HSBC Bank and working capital finance, trade facilities, corporate deposits, syndications, payments and cash management services and factoring. Business Banking HSBC's Extra Mile Business Banking offers two types of account to small and mediumsized businesses - The Business Account and the BusinessVantage Account. Services include Business Phone Banking, Business Doorstep Banking and Multi Branch Business Banking. Payments and Cash Management HSBC provides integrated domestic and regional transaction support to corporate clients through a sophisticated range of cash management solutions, including collection and payment services and integration with customer back-end systems. Operations and client services are ISO 9001 certified. Hexagon, the HSBC Group's dedicated electronic banking service allows users to perform financial transactions, obtain international financial markets information, and review details of their domestic and international accounts, from anywhere in the world, 24 hours a day. Trade (international and domestic) and Factoring Services A wide range of solutions tailored to meet customer's requirements for both domestic and international businesses is offered. HSBC is also one of the leading banks involved in the bullion business through its offices in Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi and is supported by the Group's global expertise in the precious metal business. HSBC is the leading provider of trade services in India and its trade centres are ISO 9002 certified.
Institutional Banking Working closely with Group offices in India and overseas, trade services, payments and cash management, treasury and capital markets, custody and clearing, and correspondent and electronic banking activities are offered to banks, financial institutions, securities houses, insurance companies, asset management companies and other non-banking companies, non government and development organisations operating in India. Treasury and Capital Markets
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A Study on Customer Satisfaction Towards HSBC Bank Clients consistently rate HSBC's Treasury business as one of the best in India. Its dealing room in Mumbai is one of the largest in the country, serving clients in Mumbai and in the major metropolitan centres across the country. It provides a comprehensive range of products which include - foreign exchange, money market and fixed income products and derivatives in both rupees and major currencies. Custody and Clearing The leading custodian in Asia, HSBC's custody and clearing services are available in 28 markets in Asia-Pacific and the Middle East. With experienced staff and the latest technology, HSBC is the premier provider of sub-custodian and clearing services to foreign institutional investors (FIIs) in India. HSBC clients include the domestic fund management sector in both the retail and institutional segments. Institutional Fund Services launched by the bank offers a comprehensive suite of products to domestic mutual funds and insurance companies ranging from custody, fund administration services, unit distribution and Cash Management Services.
➢ Technology The HSBC Group develops and applies advanced technology to the efficient and convenient delivery of banking and related financial services. In India, the Group provides: •
Self-Service Banking with over 150 in-branch and off-branch ATMs and 24-hour Phone Banking.
•
Trade and Corporate Banking services with real-time access to a centralised information database
•
Instantaneous inter-city transactions through online connections between all branches
•
A state-of-the-art treasury dealing system
•
A sophisticated card system supporting debit and credit cards, domestic and international VISA, MasterCard, and co-branded cards
•
A dedicated acquiring system for both MasterCard and Visa transactions
•
online@hsbc, HSBC's internet banking service, provides customers with an integrated and secure platform to access their accounts.
•
Internet Payment Gateway handles credit card transactions on the internet
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A Study on Customer Satisfaction Towards HSBC Bank
➢ Asset Management HSBC Asset Management (India) Private Limited provides a comprehensive range of investment management solutions to a diverse client base and is committed for aiming to deliver consistent investment performance, world-class service and a broad range of solutions for all types of investors. Our range of offerings in India comes under two broad categories Mutual Fund and Portfolio Management Services.
➢ HSBC Global Resourcing HSBC Global Resourcing is the largest, captive, banking and financial services off shoring organization in the world. A vital part of the HSBC Group's global strategy, Global Resourcing plays a key role in delivering shareholder value and seamlessly integrates and helps the Group remain competitive in the ever changing world of banking and finance. Global Resourcing is present in India as HSBC Electronic Data Processing India Pvt. Ltd., and operates out of 7 Group Service Centres (GSC) in Hyderabad, Bangalore, Kolkata, and Vishakhapatnam.
➢ Insurance HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance Regulatory Development Authority (IRDA) to operate as a composite insurance broking company, which will function as a direct and a reinsurance broker.
➢ Data Processing HSBC Operations and Processing Enterprise (India) Private Limited, through two centres in Mumbai and Chennai, provides operational processing services for HSBC offices in India.
B) NATURE OF BUSINESS CARRIED The HSBC Group is one of the largest banking and financial services organisations in the world, with well-established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
C) VISION, MISSION AND QUALITY POLICY Top of Form Department of Management Studies, M.S.Engineering College. Bangalore Page 16
A Study on Customer Satisfaction Towards HSBC Bank Vision: As a member of HSBC family which has been serving its millions of customers worldwide since 1865, to take our place among Turkey’s most powerful, most profitable, most admired leader banks. Mission:Having regard to ethical values; to meet its customers financial needs in the fastest and most appropriate way, to continue innovative works in order to achieve: human resource with superior qualities, technological infrastructure and service packages.
Our Values: 1) To exceed customer expectations in service quality. 2) To be a pioneer in the implementation of technologies those create distinction for its customers, employees and shareholders. 3) To keep its reliability at the utmost level with the contribution of its strong capital structure and liquid assets. 4) To make a positive contribution to the community 5) To respect meritocracy during hiring processes, improving knowledge and skills of its employees, creating the mostly preferred work environment.
D) PRODUCTS AND SERVICES PROFILE HSBC IRS Products • Paper Collection • Electronic Collections • Receivables Management System
➢ Paper Collection IRS is structured to offer quick realisation of your instruments, local or outstation. The proceeds of all cheques deposited with HSBC can be concentrated into a designated central account at any of our branches. Consequently you have better control on your cash Department of Management Studies, M.S.Engineering College. Bangalore Page 17
A Study on Customer Satisfaction Towards HSBC Bank flows and the reconciliation and monitoring requirements associated with multiple accounts are eliminated. Information on these collections is delivered to you through HSBCnet. IRS further delivers a variety of collection reports that can be used for automating the reconciliation process at your end.
➢ Electronic Collections IRS helps your business process improvement objectives with a comprehensive array of electronic collections, including • Domestic electronic funds transfer such as RTGS, NEFT, ECS • International wire transfer • Direct debit Receivables data accompanying these transactions is captured and delivered to you electronically to support your customer order fulfillment, credit management and reconciliation process.
➢ Receivables Management System Built with advanced modular technology, our receivables management system brings together all the IRS components. Its automated reconciliation and information management modules are fully integrated with the collections and processing features of IRS. As the backbone of IRS, our receivables management system: • Consolidates receivables information across electronic and paper collections • Automates accounts receivables reconciliation using your pre-defined matching parameters for funds received against various invoices • Delivers collection reports structured to meet your specified needs • Provides online transaction enquiry
HSBC Premier Products • Premier Checking • Premier Investor Savings Account and Preferred Rates on CDs Department of Management Studies, M.S.Engineering College. Bangalore Page 18
A Study on Customer Satisfaction Towards HSBC Bank • Premier Credit Card Privileges and Rewards • Premier Wealth Management1 • Premier Mortgage and Home Equity
HSBC Premier Services • HSBC ATMs worldwide • Global View - monitor balances of your worldwide HSBC accounts online in one
convenient place with Global View2. Launch the demo to learn more. • Global Transfers -free instant fund transfers online between your worldwide HSBC
accounts, whichever country they are in2 • Dedicated HSBC call centers will connect you to a qualified person who speaks your language and can give you immediate assistance 24/7. • As an HSBC Premier client, you have access to a Premier Relationship Manager who you can contact for guidance, support and access to all that HSBC has to offer. • Receive personalized attention and global insights from your Relationship Manager, no matter where in the world you are. • Connect with a Relationship Manager at any one of our Premier Centers worldwide3
Product IRS Services Global Trade Solutions: Get the edge in the competitive international market Cash Management: Manage your cash flow effectively. Factoring Solutions: Financing that keeps up with your business growth. Business Current Accounts: Give your business the superior service advantage. Business Loans & Overdrafts: Propel your business to further growth. Foreign Exchange Services: Gain from our 24-hour global coverage and knowledge of local markets.
E) AREA OF OPERATION: The company is operated globally.
Australia
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A Study on Customer Satisfaction Towards HSBC Bank
·
HSBC Bank Australia
·
HSBC Trustee (CI), Ltd.,
South America:
·
HSBC Bank Brazil SA, Banco Multiplo
·
HSBC Bank Argentina SA
·
HSBC Bank Peru SA
·
HSBC Bank Chile SA
·
HSBC Bank Uruguay SA
·
HSBC Bank Paraguay SA
·
HSBC Bank Colombia SA
Asia:
·
HSBC Armenia
·
HSBC Bangladesh
·
HSBC Brunei
·
HSBC Bank India
·
HSBC Indonesia
·
HSBC Sri Lanka
·
HSBC Pakistan
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A Study on Customer Satisfaction Towards HSBC Bank Asia Pacific:
·
The Hongkong and Shanghai Banking Corporation Ltd
·
Hang Seng Bank Ltd
·
HSBC Bank (China) Company Ltd
·
HSBC Bank Malaysia Berhad
Europe:
·
HSBC Algeria
·
HSBC Global Assets Management Austria
·
HSBC plc, Belgium
·
HSBC Bank Armenia
·
HSBC France
·
HSBC Trinkaus und Burkhardt AG
·
HSBC Private Bank (UK) Ltd
·
HSBC Bank Polska S.A.
·
HSBC Bank A.Ş.
·
HSBC Bank Malta Plc
·
HSBC Bank Kazakhstan
HSBC Bank plc
Middle East:
·
HSBC Bank Middle East Ltd
·
HSBC Bank Egypt SAE
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A Study on Customer Satisfaction Towards HSBC Bank
·
The Saudi British Bank
·
HSBC Bank Kuwait
·
HSBC Bahrain
North America:
·
The Hongkong and Sanghai Banking Corporation Ltd.,Bahamas
·
HSBC Bermuda
·
HSBC International Trustee (BVI) Ltd.
·
HSBC Bank Cayman
·
HSBC Bank USA Inc
·
HSBC Finance Corporation
·
HSBC Bank Canada
·
HSBC Mexico SA
f) OWNERSHIP PATTERN Name
Designation
Ajay Dua
Director
Hardeep Singh
Chairman / Chair Person
Kashmira Mathew
Company Secretary
Kashmira Mathew
Secretary
Louisa Cheang
Additional Director
Manasije Mishra
Managing Director & CEO
Manasije Mishra
CEO
Manasije Mishra
Managing Director & CEO
Naina Lal Kidwai
Director
Department of Management Studies, M.S.Engineering College. Bangalore Page 22
A Study on Customer Satisfaction Towards HSBC Bank Sonal Dave
Director
Shareholding pattern - HSBC InvestDirect (India) Ltd. Holder's Name
No of Shares
% Share Holding
Promoters
37317464
52.72%
ForeignPromoter
32071450
45.31%
GeneralPublic
660546
0.93%
OtherCompanies
563990
0.80%
NBanksMutualFunds
110253
0.16%
ForeignInstitutions
35657
0.05%
Others
25212
0.04%
ForeignNRI
4901
0.01%
FinancialInstitutions
300
0.00%
g) COMPETITORS INFORMATION Main Competitors: •
Barclays
•
Citigroup
•
Royal Bank of Scotland
Other competitors ➢ Catholic Syrian Bank ➢ Centurion Bank ➢ City Union Bank ➢ Development Credit Bank ➢ Federal Bank ➢ HDFC Bank ➢ ING Vysya Bank ➢ ICICI Bank IndusInd Bank
➢ United Western Bank Department of Management Studies, M.S.Engineering College. Bangalore Page 23
A Study on Customer Satisfaction Towards HSBC Bank
h) INFRASTRUCTURE FACILITY Facilities provided to the employees of the BANK: Statutory facilities: The bank provides statutory facilities to its employees which are as follows: Canteen: There is a subsidized canteen in the bank which supplies tea, snacks and meals coupons are provided to the employees and the canteen works round the clock. First Aid: It is well equipped with all the medical equipments required for first aid. An ambulance is also provided for employees during emergency. est room and Lunch room: The bank has provided a rest and lunch room for its workers. Other facilities provided by the bank: Individual lockers are provided for each worker in their respective dept to keep their tools and other belonging. •
Open air Auditorium There is a huge open air auditorium, which can accommodate 5000 peoples. Various cultural activities are conducted occasionally over here and feature films are screened occasionally.
•
Guest House
The guest house is at amidst of lush green gardens, which provides suit for management staff.
i) ACHIEVEMENTS AND AWARDS Awards Won in 2011 ➢ In March 2011 HSBC won Euromoney Rates Survey 2011 award. Department of Management Studies, M.S.Engineering College. Bangalore Page 24
A Study on Customer Satisfaction Towards HSBC Bank ➢ In February 2011 Euroweek Syndicated Loan and Leveraged Finance Asia
Awards 2010 Awards Won in 2010 ➢ HSBC won the innovation in recruitment-Employer Branding award at the 4th
Employer Branding Awards, 2009-10 ceremony. ➢ HSBC was awarded with the first Capgemeni Leadership Award for innovation by
Capgemini, at the Nasscom-Capgemini Global Leadership Awards. ➢ HSBC Asset Management India Private Limited(AMIN).
➢ HSBC MIP-Savings was recently rated CPR~1 by CRISIL for its 2 year performance for the period ended Mar 2010 in the open end aggressive MIP category. ➢ Past performance may or may not be sustained in the future and is no guarantee of future results. Awards Won in 2009 ➢ HSBC won the BML Munjal Award for Excellence in learning and development
for the year 2009 in the private sector category. ➢ HSBC India was declared the winner of the Golden Peacock National Training Award for 2009,an award that recognizes organizations that show real initiative and commitment to development of their employees ➢ HSBC was ranked second Best Bank in the Hewitt Best Employers Study of 2009 ➢ HSBC has been ranked second amongst the Financial Institutions and 22nd amongst
all companies in an Outlook business Hewitt Associations Study. ➢ HSBC won the prestigious Green Globe Award in the business enterprise category for its commitment to environment sustainability. Commercial banking ➢ HSBC was the proud recipient of two awards at the first ever Dun & Brandstreet
Bank Awards-for Best Asset Quality-Foreign Banks and Best SME FinancingForeign Banks. HSBC Securities Services ➢ HSBC was adjusted as the Best Securities Services Provider in India by Asian Investor in the Asian Investor Service Provider Awards, 2009. Department of Management Studies, M.S.Engineering College. Bangalore Page 25
A Study on Customer Satisfaction Towards HSBC Bank ➢ Top Rated category in the Global Custodian Agent Banks Survey, for the 8th year
in a row, in 2009. Marketing ➢ INM Marketing won Gold at the National Media Abbys 2009 for Best Use of
internet and new media for its compaign ‘Wimbledon Fever in your inbox’. HSBC Technology Services ➢ Won IQPC award under ‘Best Innovative Six Sigma Project’ at the Prestigious Asian Six Sigma Awards2009, Singapore. ➢ SCMHRD Lean Six Sigma Awards 2009, Pune. ➢ Winner of the ‘Bombay Chamber of Commerce Civic Awards’ under the Art, Culture & Heritage category-all credit to the GCR and ADMN team ➢ HSBC INM branch at Vadodara was awarded with USGBC LEED ‘Platinum’
rating certificate in the Commercial Interiors Category in Dec 2009.This is the highest rating that any building can achieve in LEED certification. ➢ HSBC Asset Management India Private Limited (AMIN). ➢ ICRA Mutual Fund Award 2009-HSBC Monthly Income Plan-Saving Plan has
been ranked a ‘five star fund’indicating performance among the top 10%in the category of ‘open ended marginal equity’ for three-year period ending 31 December 2008. ➢ HSBC Equity Fund was ranked 5 star fund by Value Research Online in March
2009.
j) WORKFLOW MODEL: LEAD SHEET COMPLETION
APPLICATION
MINIMUM CREDIT PARAMETERS CHECKS
Department of Management Studies, M.S.Engineering College. Bangalore Page 26
A Study on Customer Satisfaction Towards HSBC Bank ORIGINAL DOCUMENTS VERIFIED
FIELD VERIFICATION AS PER VERIFICATION STRATEGY
REFERENCE CHECKS
TELEPHONIC VERIFICATION
FILE SENT FOR APPROVAL
AGREEMENT AND PDCs TO BE SIGNED BY THE CUSTOMER
SCRUTINIZED AND SENT TO OPERATIONS
CHEQUE IS PRINTED AND CASE IS DISBURSED
k) FUTURE GROWTH AND PROSPECTS: Emerging markets will continue to outperform developed economies this year, but policymakers will continue to face the challenge of rising inflationary pressure, said Fred Neumann, managing director and co-chief of Asian Economics Research for the Hong Kong and Shanghai Bank (HSBC). He also remains optimistic about Thai economy, saying political uncertainty is only a short-term issue. "Emerging markets re-accelerated in the fourth quarter last year," Neumann said, referring to the HSBC emerging markets index (EMI) quarterly weighted composite indicators based on 20 manufacturing and service sectors derived from the Purchasing Managers Department of Management Studies, M.S.Engineering College. Bangalore Page 27
A Study on Customer Satisfaction Towards HSBC Bank Index (PMIs) surveys conducted across 16 emerging markets. The EMI rose to 55.7 in the fourth quarter versus 54.2 in the third quarter, he said in a teleconference from Hong Kong. Manufacturing has rebounded especially in China, India, Israel, Poland and Turkey, he explained, adding that India had recorded strongest growth in new exports in the fourth quarter, while China's new exports growth was modest but fastest in three quarters. Neumann said domestic demand in emerging market has been driving growth. Domestic demand outperformed exports last year, and two of the top 10 markets showing export growth were the emerging markets of India and Czech Republic, which reflected continued weak demand from the West. This demonstrates a de-coupling from the West as trade among emerging markets has increased, and if more trade barriers were dismantled, trade between these markets would even rise higher, Neumann added. "I do believe the de-coupling will remain, growth of spending by Chinese consumers is higher than US consumers," he said in response to a question on whether de-coupling would remain in the next few years. However, he warned that the biggest risk was inflationary pressure. If policy-makers are unable to tame inflation to prevent overheating of their economies, it could lead to the bursting of the asset bubble. Then emerging economies would become vulnerable and suffer a slump for many years. Yet, Neumann said he did not think inflation would spiral upward as it did in 2008, when crude oil prices exceeded $100 a barrel, but that the increase would be gradual. He said he expected central banks in Asia to tighten monetary policy rates in order tame inflation. Neumann also said he did not believe that Bank of Thailand would raise the policy rate in the next meeting as it could afford a bit of inflationary pressure in order to let the economy grow. He is also opti?mistic about the future of the Thai economy. "Political headwinds are a short-term problem and the fundamentals of Thai economy is very sound," Neumann said. Thailand is expected to be among the top 30 largest economies in the world, led by China, in 2050, according to HSBC's long-term projections. Thailand should climb by seven places and be ranked at 22 among 30. The size of the economy is expected to be worth $856 billion in 2050 and per capita income should rise to $11,674 from $2,744 in 2010.
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A Study on Customer Satisfaction Towards HSBC Bank
3. MCKENSY’S 7S FRAME WORK: There are many management approaches which talk about managing the things and Operation in an organization. One of the famous modes to analyze the pattern of management is Mc 7’s frame work. The 7’s model is better known as Mc Kinsey’s, this is because the two persons who developed this module. Tompetus & Robert waterman has been consultant at Mc Kinsey’s and co. They described that an organization is not that just structured but consist of 7’s elements. This can be distinguished into so called Hard S’s & Soft S’s. The model is very much helpful in viewing the interrelationship of strategy formation and interpretation it focus manger attention to a verification of activities. That may effect the implementation of any strategy as the model originally developed as a way of thinking more broadly about the problem of organizing effectively. It is a judge tool for the implementation of the strategy. The 7’s model is mainly distinguished into two types. 1. Hard S model Department of Management Studies, M.S.Engineering College. Bangalore Page 29
A Study on Customer Satisfaction Towards HSBC Bank 2. Soft S model The hardest elements are visible and easy to identify as they can be found in a strategy elements, corporate plans, organization charts and other documentation of the company. They are 1. Strategy 2. System 3. Structure The soft element involves difficulty in describing there capabilities, values, and elements of corporate culture. They are. 1. Style 2. Staff 3. Skills 4. Shared values
Department of Management Studies, M.S.Engineering College. Bangalore Page 30
A Study on Customer Satisfaction Towards HSBC Bank These Mc Kenzy’s framework is used in this research study to study about HSBC BANK. ➢ STRUCTURE:
The head office of HSBC bank is CHENNAI HSBC bank has various branches in & around India. HSBC has various branches in Delhi, Calcutta, Chennai, Bangalore etc covering various networks.HSBC has the client driven channel provides callers with easy access to credit cards, banking as well as demat &clients can enquire about the products offering of HSBC. HUMAN RESOURCE DEPARTMENT Functions: 1. An effective utilization of human resource in the achievement of organization goals. 2. Maintain a desirable working relationship among all the members of the organization. 3. Generate maximum individual and group development within in the organization. 4. Develops the human resource and their knowledge, skills and potentialities. 5. Creating the right attitude among the employees through effective motivation.
Share Holders
Board members
Chief Executive officer
Risk Mgmt
Internal Audit `` Lean Mgmt unit PFS Credit card
Financial Control
HTS
Operation s
IT OPNS
Finance
Software delivery
Treasury admin
Change Delivery Procurement
HRM Recruitment and Selection Pay and Compensation
Training and Development
Commercial banking Trade and Service Payments and Cash
Global banking and Markets
Marketin g
Mktng Dealing Corporate and institutional Dept.
Department of Management Studies, M.S.Engineering College. Bangalore Page 31 Property/security Legal Dept Service Delivery
A Study on Customer Satisfaction Towards HSBC Bank
Cash Counter
Payments
Processing
Contact Center and Front End Collection Bank operations
Account Maintainance
Back End Collections ATM &Merchant acquiring
Mailing/scanning
Facility documentation
Organizational Structure of HSBC Bank
MARKETING DEPARTMENT Functions: 1. Increase sales volume. 2. Carry out the promotional activities. 3. Increase profitability. 4. Train and motivate the work force. 5. Motivates distributor, retailers, and other middlemen. 6. Carry out sales promotion activities.
FINANCE DEPARTMENT Functions: 1. To ascertain the expenses incurred in producing a product. 2. To find the cost per unit that is by taking into the account of the total cost and production of a particular product. Department of Management Studies, M.S.Engineering College. Bangalore Page 32
A Study on Customer Satisfaction Towards HSBC Bank 3. To allocate the costs incurred into 3 main categories namely factory, office, and selling overhead. 4. To compare budged cost with actual cost and calculate the variance if any. 5. To advice the production department to decrease the cost, minimize wastage and idle time. 6. To implement cost control technique and methods. ➢ STYLE:
Style refers to the employee’s shared & common ways of thinking & behaving unwritten norms of behavior & thought. Style also refers to the way management behaves &collectively spends its time to achieve organizational goals. There are various ways of leadership style which can be adopted. Sharing leadership is key to the white stag philosophy of leadership, because overtly promotes the distribution of the function of the leader among the group. An individual style in interacting with others is an outward sign of the substance within experience, we can really tell a lot about people’s capabilities by looking at them but it is better to watch them in action. Leadership style in HSBCBANK: It has been observed in HSBC BANK that the behavior of superior towards the subordinate is much decent & pleasant. The superior motivate the fresher who are working under them. The superior tells the subordinate what exactly he has to do, the objective of the work is clearly defined to them, any difficulty in accomplishing the task the superior can be consulted & he/she guides in a proper direction. It is also observed that while speaking to their subordinate, superiors move very friendly & affectionately & moreover the views of subordinates are considered for decision making. As a fresher I observed that the superiors respect our efficiency & they view us an important participant in the objectives of the company as well as relationship with subordinates. The superior in charge periodically conducts meetings with their subordinates & set the tasks ahead, periodically seminars are conducted to get the new updated information. SO THE LEADERSHIP STYLE FOLLOWED IN HSBC BANK IS PARTICIPATIVE STYLE.
Department of Management Studies, M.S.Engineering College. Bangalore Page 33
A Study on Customer Satisfaction Towards HSBC Bank ➢ STRATERGY:
The word strategy has been derived from Greek word “Strategos” which means general. Strategy is the pattern of objectives, purposes, or goals stated in such a way as to define what business the company is in or are to be in & the kind of company it is or it is to be strategy is a systematic action & allocation of resources to achieve company aims. Strategy of HSBC BANK: HSBC BANK seeks to perform its role in the social sector through a dedication, not a profit group they are the social initiative group. The strategies include the following initiatives: This is in recognition of the fact that resources being limited, the efficient use is imperative if the maximum number is to be benefited. Cost effectiveness
The initiative drawn must be scalable; scalability implies the ability to draw upon the important elements, it should be possible to do so at national level, even if the program itself is not directly scalable it should be possible to take away significant lessons from it in order to enrich work in other settings.
In order to achieve the achieve the desired objectives or goals in there focus areas, the SIG (SOCIAL INTIATIVE GROUP) tends to support reasonably larged sized initiatives so that issues such as cost effectiveness, scalability & impact assessment can be dealt directly
➢ SYSTEMS:
In McKinsey’s 7s model, systems means any procedures & processes such as manufacturing processes, management information system, budgeting & control processes. In HSBC BANK the branch managers, relationship managers, & business development executives are periodically reviewed of their performance and each branches are ranked as per their branch performance & based on performance the branches ranked. Management information system: This is an interlocking frame work of hardware of people and procedures. The strategic day to day running of the business repairs the speedy collection and flexible interval of information. This help in day to day activities of trading for buying & selling of shares. ➢ SHARED VALUES:
Department of Management Studies, M.S.Engineering College. Bangalore Page 34
A Study on Customer Satisfaction Towards HSBC Bank Are the values shared by the members of an organization, shared values means that the employees share the same guiding values. Values are things that you would strive for even if they were demonstrably not profitable. Values act as an organization’s role in the larger community in which it functions. The organizations main values are stated in its VISION & MISSION STATEMENTS. So it is the responsibility of every employee of the organization to share these values, so that every employee of the organization can give their best for the achievements of these values. ➢ STAFF:
Staff means that the company has hired able people, trains them well as per the job specifications & assign them the right jobs. It is also observed that staff is given adequate trainings to get exposed to recent techniques in their respective areas. The staff members are also often job rotated to get exposed to various new tasks. Selection, training, reward, recognition, retention, motivation & assignment to appropriate work are all key issues. So it means how an organization effectively recruits, trains their people & assigns them the right job. Human capital is very important at HSBC; the numbers of employees are increasing rapidly. HSBC BANK had just 445 employees in 1997, but in year 2002 the figures stood at 7700, &presently the strength has increased to 14000 employees. Training is a big thing at HSBC; each employee spends at least 69 hours during the year recharging himself. As a rapidly growing organization HSBC BANK gives opportunities to induct PG students from various graded business schools across the country. HSBC is very proud of its ability to nurture the individuals & to develop in them new talents which they possess. “If we are in the verge of completing the management education and believe that the amazing world of banking is for us, there is no better place to start OUR CAREER IN HSBC BANK” (1) Receiving Teller's Department (Teller) - Receives, receipts for and proves deposits, distributes checks to bookkeepers and other departments, prepares exchanges for clearing houses, and turns cash over to the paying teller at end of day. (2) Collection Department (Teller) - Collects notes, drafts and other "time" items when payable out of town, and credits accounts of depositors when collections are advised paid.
Department of Management Studies, M.S.Engineering College. Bangalore Page 35
A Study on Customer Satisfaction Towards HSBC Bank (3) General Ledger Department (Bookkeepers) - Keeps the general or control accounts of the bank, and makes up the bank's statement of condition. (4) Auditor's Department (Executive) - This department is responsible for the settlement of the various departments, reconciles the accounts with other banks, and certifies interest calculations. (5) Loan or Discount Department (Executive) - Receives notes submitted for discount or makes loans, figures discount and interest, and has charge of collateral securing loans.
➢ SKILLS:
Skills refer to the fact that employees have the skills needed to carry out the company’s strategy. Training and development help employees to do their jobs to perfection and also helps in getting acquainted with latest techniques. The skill required in HSBC BANK depends on the nature of work, their grades and designation.
4. SWOT analysis: A SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in any other situation requiring a decision. It involves monitoring the marketing environment internal and external to the company. The technique is credited to Albert Department of Management Studies, M.S.Engineering College. Bangalore Page 36
A Study on Customer Satisfaction Towards HSBC Bank Humphrey, who led a research project at Stanford University in the 1960s and 1970s using data from the Fortune 500 companies. •
Strengths: attributes of the organization that is helpful to achieving the objective.
•
Weaknesses: attributes of the organization that is harmful to achieving the objective.
•
Opportunities: external conditions those are helpful to achieving the objective.
•
Threats: external conditions those are harmful to achieving the objective.
The aim of any SWOT analysis is to isolate the key environmental factors that are important to the marketing plans of the organization. SWOT groups key pieces of information into two main categories: •
Internal factors - The 'strengths' and 'weaknesses' internal to the organization, i.e., its strategies and its position in relation to its competitors.
•
External factors - The 'opportunities' and 'threats' presented by the external environment and the competition.
Strengths and Weaknesses: financial, intellectual, locational, Customer service, Efficiency Competitive advantages, Infrastructure, Quality, Staff, Management, rice Delivery time, Cost Capacity etc,. Opportunities and Threats: Economic condition, Expectations of stakeholders, Technology, Public expectations etc,.
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STRENGTHS:1. Brand Name:
The biggest strength is the tag of HSBC is going to be the largest group of MNC’s. 2. Compatible Price:
Prices of different schemes of HSBC are much more compatible than others. 3. Diversified Schemes: We have diversified schemes, which is an exception case of HSBC. 4. Less Risk:
Our debt schemes are 100% free form market risk. Even as our portfolio is that diversified so equities are also less risky than others. 5. Easy procedures for account opening too: We have an easy system for opening the account as it includes investment & being named as saving account for the costumer future benefits. 6. Debit cum ATM card facility:
Department of Management Studies, M.S.Engineering College. Bangalore Page 38
A Study on Customer Satisfaction Towards HSBC Bank The main advantage of HSBC’s Debit cum ATM card is that you can access this card through any VISA supported ATM’s & withdraw your amount, without any single charge to be paid. WEAKNESS:1
Prone to Market Risk: Mutual Funds depend on overall macroeconomic condition and market scenario.
2
Tough Competitions: There is a very tough competition because of large number of Asset Management Companies.
3
Incapability of Customers: HSBC only provides 2 types of account opening of which one is PVA (Power Vantage Account) under which an aqb of 1 lakh is to be maintained & the second one is Premier Account, under which an aqb of 25 lakh is to be maintained. This is sometimes beyond the reach of a middle class person.
OPPORTUNITIES:1
Hoarding: Most of the Indians have black money that too in huge amount i.e. the do not have money in banks, so approaching them is beneficial, so that through the opening of this account they can make further investment.
2
Indian Capital Market is Growing: So more & more new investors are interested in investments.
3
Tailor Made Products: We have tailor made products like sector specified schemes & even diversified schemes.
4
Branch Expansion: Large no. of branches are opening day by day and even we are traping the countries having almost same type of socio-economic condition & even same culture etc.
THREATS:1
Tough Competition:
Department of Management Studies, M.S.Engineering College. Bangalore Page 39
A Study on Customer Satisfaction Towards HSBC Bank As there are so many banks having almost same kind of schemes, so it’s tough to compete with.
2
Unawareness: Majority of population is not aware of HSBC brand name and even because of other banking facilities which are much cheaper than HSBC’s services, so it’s hard to convince people.
3
Changing Scenario: Our market scenario is changing day-by-day i.e. our market is fluctuating, so this makes investor hard to invest.
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A Study on Customer Satisfaction Towards HSBC Bank
5. ANALYSIS OF FINANCIAL STATEMENT: Balance sheet for the India Branches as at 31 March 2010 (Currency: Indian rupees in thousands)
31-Mar-10
31-Mar-09
CAPITAL AND LIABILITIES Amount of deposit kept with Reserve Bank of India under section 11(2) (b) of the Banking Regulation Act, 1949 Capital Reserves and surplus Deposits Borrowings Other liabilities and provisions TOTAL ASSETS Cash and balances with Reserve Bank of India Balances with banks and money at call and short notice Investments Advances Fixed assets Other assets TOTAL Contingent liabilities Bills for collection
13,933,356
10,783,356
44,991,660 76,360,692 557,478,247 59,208,139 166,215,186 904,253,924
44,991,660 67,151,465 499,702,753 84,684,459 249,673,529 946,203,866
39,716,165 41,823,856 412,890,656 234,747,670 8,928,756 166,146,821 904,253,924 8,509,535,228 9,817,220
37,123,770 75,202,428 311,538,200 275,886,858 8,353,196 238,099,414 946,203,866 8,147,158,513 84,293,895
SUMMARY From the above we can determine the financial position of the concern. When comparing balance sheet of 2009 and 2010 the net worth of the company has been increased in the year 2010 when compared to 2009. The total has been increased from 946,203,866Rs to 904,253,924Rs
It shows that the company is growing year by year. Profit and loss account for the India Branches for the year ended 31 March 2010 (Currency: Indian rupees in thousands)
Department of Management Studies, M.S.Engineering College. Bangalore Page 41
A Study on Customer Satisfaction Towards HSBC Bank 31-Mar-10
31-Mar-09
51,658,815 21,354,836 73,013,651
63,269,285 26,994,218 90,263,503
Interest expended Operating expenses Provisions and contingencies
19,146,572 19,501,215 26,266,735
26,610,018 21,946,691 28,793,982
TOTAL Net profit for the year Profit brought forward
64,914,522 8,099,129 9,264,515
77,350,691 12,912,812 1,377,429
TOTAL
17,363,644
14,290,241
2,024,782 (335,667) 206,523
3,228,203 335,667 84,427
---
1,377,429
Balance carried over to balance sheet
15,468,006
9,264,515
TOTAL
17,363,644
14,290,241
INCOME: Interest earned Other income TOTAL EXPENDITURE
APPROPRIATIONS Less: Transfer to statutory reserve Transfer (from)/to investment reserve Transfer to specific reserve Transfer to capital reserves
When comparing Profit and loss account of 2009 and 2010, the net worth of the company has been increased in the year 2010 when compared to 2009. The total has been increased from 14,290,241Rs to 17,363,644Rs.It shows that the company is growing year by year.
6. LEARNING EXPERIENCE The ten weeks summer project have helped me in learning a lot. This program helped me in understanding the various aspects of banking industry. The training, at HSBC bank was a new and challenging experience. It always remains as a dream, to get an opportunity to take up such study at a private banking sector. Unlike private sectors, the employees working in Public/Government sector do not have the right to take decision by themselves. Department of Management Studies, M.S.Engineering College. Bangalore Page 42
A Study on Customer Satisfaction Towards HSBC Bank It was a great knowledge based and an excellent training program had in HSBC bank. While at training exposure was gained on the working environment and also the decision making process. It was a great learning experience working with the professional personalities. I collected all the required information of the second part of the Part A that is Company profile and this gave me knowledge about the organization like their mission, vision, their background, history etc... The Part B of the project it was more like a practical experience. The staff member’s encourage and guided me in understanding the internal aspect of the bank like how their bank structure is, their various department and their functions. They gave me a complete insight into their strategies-like what is strategy they are adopting now and in the future to achieve goals of the company. The bank structure which prescribes the formal relationship among various position & activities were clearly defined. HSBC bank develops such kind of relationship which creates confidential understanding between the staff and department. The members in the bank were friendly and co-operative, disciplined, and prompt in their work. They make performance appraisal once in a year for promoting the employees. Decision is taken by taking the views of all the concerned employees who are affected by that decision. Employee’s suggestions are well-come and rewarded. They conduct training and development programs after identifying need for that. They organize both internal and external training. The style which company is following is participative in nature. The decisions were made in the company and the report will be submitted to all departments. The staff members were well co-ordinate and supportive with each other. I learnt what is the present position of the bank through the SWOT analysis. It is very much necessary to understand the theoretical concepts of the subject. These will make an ease for the study and also helps to work efficiently. But during the training period it is needless to say that the theoretical knowledge gained at class room is entirely different from actual practice within the organization. To conclude we may say that, to study the complete organization, pertaining to the nature of the business that they carry, nature of the work flow, ten weeks is very short, there was Department of Management Studies, M.S.Engineering College. Bangalore Page 43
A Study on Customer Satisfaction Towards HSBC Bank a time constraints. It is a great memorable experience for me that getting experience in Corporate Environment. The project has given an opportunity to learn those practical skills. The project had helped to get familiar with the working environment which is most essential to start the career.
PART-B CHAPTER-1 1. GENERAL INTRODUCTION Customer Satisfaction: Customer satisfaction is equivalent to making sure that product and service performance meets customer expectations. It is the perception of the customer that the outcome of a business transaction is equal to or greater than his/her expectation. Customer satisfaction Department of Management Studies, M.S.Engineering College. Bangalore Page 44
A Study on Customer Satisfaction Towards HSBC Bank occurs when the acquisition of products and /or services provides a minimum negative departure from expectations when compared with other acquisitions and when the marginal utility of a transaction is equal to or greater than preceding acquisitions. Customer satisfaction occurs when the perception of the reward from the purchase of goods or services by the customer meets or exceeds his/her perceived sacrifice. The perception is a consequence of matching past purchase and consumption experience with the current purchase.
Customer Service and Satisfaction: When we talk about customer service and/or satisfaction, we talk about creativity. Creativity allows us to handle or diffuse problems at hand or later on rather in the process of conducting the everyday business. We talk about how, or what, does the organization have to do to gain not only the sale but also the loyalty of the customer. We want to know the payoff of the transaction both in the short and long term. We want to know what our customers Want? We want to know if our customers are satisfied. Satisfaction, Of course, means that what we delivered to a customer met the customer’s Approval. We want to know if customers are delighted and willing to come Back, and so on. Fleiss 2 and Feldman 3 present examples of that delightfulness in their writings. Fleiss has written about Ben and Jerry’s ice cream and Feldman has discussed excellence in a cab ride. As important as delightfulness is, some of us minimize it, or even totally disregard it. At this point, we fail. Some of the issues that will guarantee failure in sales, satisfaction, and loyalty are: Employees must adhere to a rigid chain of command Employees are closely supervised Conflict—in whatever form—is not allowed Rewards are based on carrot-and-stick principles Wrong objectives are measure.
We must understand customer expectation levels concerning quality. We must also understand the strategy for customer service quality, and next we must understand the measurement and feedback cycles of Customer satisfaction. The customer is the person or unit receiving the output of a process on the system. In fact, it is worth emphasizing that a customer can be the immediate, intermediate, or ultimate Department of Management Studies, M.S.Engineering College. Bangalore Page 45
A Study on Customer Satisfaction Towards HSBC Bank customer. Also, a customer may be a person or persons, or a process or processes. Customer satisfaction, however, is when the customer is satisfied with a product/service that meets the customer’s needs, wants, and expectations. There are at least three levels of customer expectations about quality: Level 1. Expectations are very simple and take the form of assumptions, must have, or take it for granted. For example, I expect the airline to be able to take off, fly to my destination, and land safely. I expect to get the correct blood for my blood transfusion and I expect the bank to deposit my money to my account and to keep a correct tally for me. Level 2. Expectations are a step higher than that of level 1 and they require some form of satisfaction through meeting the requirements and/or specifications. For example, I expect to be treated courteously by all airline personnel. I went to the hospital expecting to have my hernia repaired, to be in some pain after it was done, to be out on the same day, and to receive a correct bill. And I went to the bank expecting the bank teller to be friendly, informative, and helpful with my transactions. Level 3. Expectations are much higher than for levels 1 and 2. Level 3 requires some kind of delightfulness or a service that is so good that it attracts me to it. For example, an airline gives passengers traveling coach class the same superior food service that other airlines provide only for first-class passengers. In fact, I once took a flight where the flight attendants actually baked cookies for us right there on the plane. When I went to the hospital, I expected staff to treat me with respect and they carefully explained things to me. But I was surprised when they called me at home the next day to find out how I was doing. And at my house closing, the bank officer, representing the bank holding my mortgage, not only treated me with respect and answered all my questions about my new mortgage, but just before we shook hands to close the deal, he gave me a housewarming gift.
Customer satisfaction surveys help to: Improve customer, client, or employee loyalty.
Department of Management Studies, M.S.Engineering College. Bangalore Page 46
A Study on Customer Satisfaction Towards HSBC Bank
React quickly to changes in the market. Identify and capitalize on opportunities. Beat the competition. Retain or gain market share. Increase revenue. Reduce costs.
1.1 STATEMENT OF THE PROBLEM: The study attempts to study, Analyze and determine the customer satisfaction on HSBC bank. The study helps to obtain suggestions for improvement of services and also helps for finding out satisfaction level of consumer. The comprehensive statement of the problem can be stated as “CUSTOMER SATISFACTION ON HSBC BANK”.
1.2 OBJECTIVES OF THE STUDY Primary Objective: ➢ To analyze the customer satisfaction on HSBC bank services.
Secondary Objectives: To study customer perception about HSBC BANK. To identify and study the various ways of ensuring customer satisfaction adopted by SBC BANK Vs HDFC & SBI. To know the factors which influence customers to choose HSBC bank? To find out the satisfaction level of the different types of customers. To know the parameters influencing the customers. To study the current image of HSBC bank and its Competitors. To obtain the suggestions for improvement of the HSBC bank. .
1.3 SCOPE OF THE STUDY: ➢ This study helps in understanding the satisfaction level of the customer about HSBC bank in Bangalore city Department of Management Studies, M.S.Engineering College. Bangalore Page 47
A Study on Customer Satisfaction Towards HSBC Bank
➢ It also helps the company to understand the level of customer satisfaction and feedback from the customers regarding their services and sales of the products. ➢ The data collected and interpreted will be useful for the company and the reader of the
project.
Various
findings,
observations
and
valuable
suggestions,
recommendations help the company to materialize its future plans. ➢ The research study also helps to find out the demand potential for HSBC bank.
1.4 RESEARCH METHODOLOGY Data Collection Techniques: This project consists of two parts. The first part is a study of the banking industry, HSBC Bank using secondary data sources. This secondary information has been sourced from the internet and from business related magazines and newspapers. The second part of the study has been done using an exploratory research process and a structured questionnaire was developed for this purpose. For the collection of primary data this was the only method used. The reason I used this method is because a need was felt for the free influx of information about the products. Also this method allowed the use of skills gained in class. Sample Design: The population considered for the purpose of the survey was people residing in Bangalore. Sampling Technique Used: Since the information required was not of a very technical nature and also looking at the scope of the project and the extent of the target segment, the sampling technique employed was Convenience Sampling. I administered the questionnaires.
Sample Size:
Department of Management Studies, M.S.Engineering College. Bangalore Page 48
A Study on Customer Satisfaction Towards HSBC Bank I have restricted the sample size to 50 respondents. This was done keeping in mind the time constraints and the fact that I felt that this number would be enough to serve the information needs required to show the trends.
1.5 LIMITATIONS OF THE STUDY •
The study was confined to Bangalore city only
•
The time constraint was that the respondents gave only limited time for the data collection.
•
Due to limited time period and constrained working hours for most of the respondents, the answers at times were vague.
•
The finding of this study was based on the assumptions that the respondents have diverged true and honest information.
•
Sampling size is restricted to 50 respondents only.
•
The study also limited due to various constraints like time, manpower resources and financial availability and also primary data.
•
Making accurate predictions relating to customer behavior is very difficult.
•
The views and responses of the respondents may change over a period of the time.
•
The bias of the respondents may have introduced errors in the survey findings.
2. DATA ANALYSIS & INTERPRETATION TABLE-1 Table-1: Showing gender group of respondents. GENDER GROUP
NO. OF RESPONDENTS
PERCENTAGE
Male
27
54%
Female
23
46%
Total
50
100%
Department of Management Studies, M.S.Engineering College. Bangalore Page 49
A Study on Customer Satisfaction Towards HSBC Bank
Analysis: The above table shows that out of 100% respondents, 54% of the Male respondents and 46% of the Female respondents.
CHART-1 Chart-1: Showing gender group of respondents
Interpretation: •
From the survey it is observed that majority of the respondents are Male that is 54%.
TABLE-2 Table-2: Showing Age group of the respondents. Department of Management Studies, M.S.Engineering College. Bangalore Page 50
A Study on Customer Satisfaction Towards HSBC Bank Sl. No.
Response
No. of Respondents
% of Respondents
1
20-30
6
12%
2
30 – 40
24
48%
3
40 – 50
13
26%
4
Above 50
7
14%
TOTAL
50
100%
Analysis: From the above we observe that 6 respondent are from the age 20-30, 24 respondents are from the age of 30-40 13 respondents are from the age of 40-50 7 respondents are from the age of above 50
CHART-2 Chart-2: Showing Age group of the respondents. Interpretation: From the above we observe that 12% of respondent are from the age 20-30, 48% of the respondents are from the age of 30-40 26% of the respondents are from the age of 40-50 14% of the respondents are from the age of above 50
TABLE-3 Table-3: Showing ANNUAL INCOME of respondents: Department of Management Studies, M.S.Engineering College. Bangalore Page 51
A Study on Customer Satisfaction Towards HSBC Bank SI. No.
Income(annual)
No. Of
% of Respondents
Respondents 1
Up to 160000
13
26
2
160001 to 500000
35
70
3
Rs. 500001 to 800000
2
4
4
800001 and above
0
0
TOTAL
50
100
Analysis: From the above table •
13 respondents annual income is up to 1600000
•
35 respondents annual income is from 160001 to 500000
•
2 respondents annual income is from 500001 to 800000
•
0 respondent annual income is from 800000 and above.
CHART-3 Chart-3: Showing ANNUAL INCOME of respondents:
Department of Management Studies, M.S.Engineering College. Bangalore Page 52
A Study on Customer Satisfaction Towards HSBC Bank
Interpretation From the above table •
26% of the respondents are annual income up to 1600000
•
70% of the respondents are annual income from 160001 to 500000
•
4% of the respondents are annual income from 500001 to 800000
•
0% of the respondents are annual income from 800000 and above.
TABLE-4 Table-4 Showing OCCUPATION of respondents: SI. No.
Response
No. Of
% of Respondents
Respondents 1
Businessman
9
18
2
Professional
7
14
3
salaried person
26
52
4
Student
3
6
5
Other’s
5
10
TOTAL
50
100
Analysis: From above graph 26 respondents from salaried persons, 9 respondents from businesses men, 7 respondents from professionals, 3 students and 5 others include housewives. Department of Management Studies, M.S.Engineering College. Bangalore Page 53
A Study on Customer Satisfaction Towards HSBC Bank
CHART-4 Chart-4: Showing OCCUPATION of respondents:
Interpretation: From above graph 52% of the respondents from salaried persons, 18% of the respondents from businesses men, 14% of the respondents from professionals, 6% are from students and 10% others include housewives.
TABLE-5 Table-5: Showing attributes compelled you to most open saving account in any bank Department of Management Studies, M.S.Engineering College. Bangalore Page 54
A Study on Customer Satisfaction Towards HSBC Bank Attributes
No. of Respondents
% of Respondents
ATM cum DEBIT Cards
15
30%
Cheque Book
10
20%
Internet Banking/ Phone
6
12%
Working Hours
9
18%
Value Added Services
10
20%
TOTAL
50
100%
Banking
Analysis: The above tables showing out of 50 respondents, 15 choose the bank based on the attribute of ATM and DEBIT CARDS, 10 respondents choose the bank on the attribute of Cheque Book, 6 respondents choose the bank on the basis of INTERNET BANKING/PHONE BANKING, 9 respondents choose the bank on the attribute of WORKING HOURS, 10 respondents choose on the attributes of VALUE ADDED SERVICES.
CHART-5 Chart-5: Showing attributes compelled you to most open saving account in any bank.
Department of Management Studies, M.S.Engineering College. Bangalore Page 55
A Study on Customer Satisfaction Towards HSBC Bank Interpretation: - The above pie chart states that 20% of the total sample choose the bank on the attribute of Cheque Book, 12% of the respondents choose the bank on the attribute of Internet Banking, 18% of the respondents choose the bank on the basis of Working Hours, 20% of the respondents choose the bank on the basis of Value Added services, 30% of the total sample select the bank on the basis of ATM cum DEBIT Cards.
TABLE-6 Table-6: Showing respondents having their Bank Account in different Bank Bank Name
No. of Respondents
% of Respondents
SBI
20
40%
HSBC Bank
11
22%
HDFC Bank
8
16%
Axis Bank
6
12%
Others
5
10%
TOTAL
50
100%
Department of Management Studies, M.S.Engineering College. Bangalore Page 56
A Study on Customer Satisfaction Towards HSBC Bank Analysis: The above tables showing out of 50 respondents, 20 respondents are having their bank account in SBI Bank, 11 respondents are having their bank account in HSBC Bank, 8 respondents are having their bank account in HDFC Bank, 6 respondents are having their bank account in Axis bank, and 5 respondents are having their bank account in other Banks.
CHART-6 Chart-6: Showing respondents having their Bank Account in different Bank
Interpretation: The above bar graph showing out of 100%, 40% respondents are having their bank account in SBI Bank, 22% respondents are having their bank account in HSBC Bank, 16% respondents are having their bank account in HDFC Bank, 12% respondents are having their bank account in Axis bank, and 10% respondents are having their bank account in other Banks.
TABLE-7 Table-7: Showing that type of account respondents having. Department of Management Studies, M.S.Engineering College. Bangalore Page 57
A Study on Customer Satisfaction Towards HSBC Bank Account Type
No. Of Respondents
% of Respondents
Saving
20
40%
Current
5
10%
Fixed
15
30%
NRI
6
12%
Others
4
8%
Total
50
100%
Analysis: The above tables showing out of 50 respondents, 20 respondents are having saving account, 5 respondents are having current account, 15 respondents are having fixed bank account, 6 respondents are having their NRI account and 4 respondents are having other type of bank account.
CHART-7 Chart-7: Showing that type of account respondents having.
Department of Management Studies, M.S.Engineering College. Bangalore Page 58
A Study on Customer Satisfaction Towards HSBC Bank
Interpretation: The above graph showing out of 100% respondents, 40% of respondents are having saving account, 10% of respondents are having current account, 30% of respondents are having fixed bank account, 12% respondents are having their NRI account and 8% of respondents are having other type of bank account.
TABLE-8 Table-8: Shows the respondents response towards HSBC Bank whether it provides better facilities than SBI and HDFC Bank.
Response
No. Of Respondents
% Of Response
YES
19
38%
NO
22
44%
Can’t Say
9
18%
TOTAL
50
100%
Analysis: The above table showing that out of 50 respondents, 19 respondents agrees that HSBC Bank provides better facilities than the SBI and HDFC bank. 22 respondents don’t agree that HSBC Bank provides better facilities than the SBI and HDFC bank and 9 respondents are not in a position to say anything about Banks. Department of Management Studies, M.S.Engineering College. Bangalore Page 59
A Study on Customer Satisfaction Towards HSBC Bank
CHART-8 Chart-8: Shows the respondents response towards HSBC Bank whether it provides better facilities than SBI and HDFC Bank.
Interpretation: The above pie chat that out of 100% population, 38% population agrees that HSBC Bank provides better facilities than the SBI and HDFC bank. 44% population doesn’t agree that HSBC Bank provides better facilities than the SBI and HDFC bank and 18% population is not in a position to say anything about Banks.
TABLE-9 Department of Management Studies, M.S.Engineering College. Bangalore Page 60
A Study on Customer Satisfaction Towards HSBC Bank Table-9: Showing the rank of product offered by HSBC Bank than other with reference to respondents.
Rating
Very Good
Good
Moderate
Less
Poor
5
4
3
2
1
Factors
No. of Respondents
% of Response
Very Good
17
34%
Good
14
28%
Moderate
9
18%
Less
6
12%
Poor
4
8%
TOTAL
50
100%
Analysis: The above table shows that out of 50 respondents, 17 respondents says that HSBC Bank products are Very Good than others, 14 respondents says Good, 9 respondents says the products are Moderate, 6 respondents says the products are less satisfactory one and only 4 respondents says the products are poor.
CHART-9
Department of Management Studies, M.S.Engineering College. Bangalore Page 61
A Study on Customer Satisfaction Towards HSBC Bank Chart-9: Showing the rank of product offered by HSBC Bank than other with reference to respondents.
Interpretation: The above Pie graph shows that out of 100% population, 34% population says that HSBC Bank products are Very Good than others, 28% population says good, 18% population says the products are Moderate, 12% population says the products are less satisfactory one and only 8% population says the products are poor.
TABLE-10 Table-10: Showing the number of points given by the respondents to HSBC Bank based upon the service. Factors/services
Points given by Respondents
% Of Response
Less formality
28
28%
Flexibility
43
43%
Less documentation
21
21%
Others
8
8%
Department of Management Studies, M.S.Engineering College. Bangalore Page 62
A Study on Customer Satisfaction Towards HSBC Bank TOTAL
100
100%
Analysis: The above table shows that out of 100 points, 28 points are given to the less formality of service, 43 points are given to the flexibility, 21 points are given to the less documentation and only 8 points are given to the other services.
CHART-10 Chart-10: Showing the number of points given by the respondents to HSBC Bank based upon the service.
Interpretation: The above pie chart shows that out of 100%, 28% is given to the less formality of service, 43% is given to the flexibility, 21% is given to the less documentation and only 8% points are given to the other services.
Department of Management Studies, M.S.Engineering College. Bangalore Page 63
A Study on Customer Satisfaction Towards HSBC Bank
TABLE-11 Table-11: Shows that respondents rank to HSBC services. Attributes
Rating by Respondents
% of Rating
Extremely Satisfied
12
12%
Satisfied
34
34%
Moderate
20
20%
Dissatisfied
26
26%
Extremely Dissatisfied
8
8%
TOTAL
100
100%
Analysis: The above table shows out of 100 points the respondent given rating according to his satisfactory level, 12 points are given to Extremely Satisfied, 34 points are given to satisfied attribute, 20 points are given to Moderate attribute, 26 points are given to dissatisfied and 8 points are given to Extremely dissatisfied attribute.
Department of Management Studies, M.S.Engineering College. Bangalore Page 64
A Study on Customer Satisfaction Towards HSBC Bank CHART-11 Chart-11 shows that respondents rank to HSBC services.
Interpretation: The above pie graph shows out of 100% the respondent given rating according to his satisfactory level, 12% is given to Extremely Satisfied, 34% is given to satisfied attribute, 20% is given to Moderate attribute, 26% is given to dissatisfied and 8% is given to Extremely dissatisfied attribute.
TABLE-12 Table-12: Shows the overall experience in HSBC Bank. Ratings
No. of Respondents
% of Respondents
Excellent
6
12%
Good
25
50%
Average
9
18%
Department of Management Studies, M.S.Engineering College. Bangalore Page 65
A Study on Customer Satisfaction Towards HSBC Bank Bad
6
12%
Very bad
4
8%
Total
50
100%
Analysis: From the above table overall experience of respondents with HSBC Bank 6 of the respondents had an excellent experience in HSBC Bank, 25 of the respondents had good experience in HSBC Bank, 9 of the respondents had Average experience in HSBC Bank 6 of the respondents felt remain neutral, 4 of the respondent’s bad experience in HSBC Bank
CHART-12 Chart-12: Shows the overall experience in HSBC Bank.
Interpretations: From the above chart overall experience of respondents with HSBC Bank 12% of the respondents had an excellent experience in HSBC Bank, 50% of the respondents had good experience in HSBC Bank, 18% of the respondents had Average experience in HSBC Bank 12% of the respondents felt remain neutral, Department of Management Studies, M.S.Engineering College. Bangalore Page 66
A Study on Customer Satisfaction Towards HSBC Bank 8% of the respondent’s bad experience in HSBC Bank
TABLE-13 Table-13: Showing specific brand awareness about HSBC Bank among respondents. Brand awareness
No. of respondents
Percentage
YES
43
86%
NO
7
14%
Total
50
100%
Analysis: The above tables showing out of 50 respondents, 43 respondents know about HSBC Bank Only 7 respondents are not aware of it.
CHART- 13 Chart-13: Showing specific brand awareness about HSBC Bank among respondents.
Interpretation: - The above pie chart states that 86% of the total sample knows about HSBC Bank. Only 14% of the total population does not know about HSBC Bank. From the above interpretation it is clear that although HSBC Bank is a strong brand amongst the financial investors, people of Bangalore-city do not know much about the company. TABLE-14 Table-14: Showing that respondents opinion about HSBC as a trustworthy Bank.
Opinion
No. of respondents
Percentage
Trustworthy
45
90%
Non Trustworthy
5
10%
Department of Management Studies, M.S.Engineering College. Bangalore Page 67
A Study on Customer Satisfaction Towards HSBC Bank Total
50
100%
Analysis: The above table showing that out of 50 respondents, 45 respondents trusts on HSBC Bank and only 5 respondents does not trust on HSBC Bank. CHART-14 Chart-14: Showing that respondent’s opinion about HSBC as a trustworthy Bank.
Interpretation: 90% of the respondents have a trust at HSBC Bank, 10% of the respondents don’t have a trust at HSBC Bank.
TABLE-15 Table-15: Showing that the respondents opinion about using sales promotional activity. Publicity
No. of respondents
Percentage
Yes
28
56%
No
22
44%
Total
50
100%
Analysis: the above table showing that out of 50 respondents, 28 respondents suggested that bank has to use sales promotional activity. CHART-15 Chart-15: Showing that the respondents opinion about using sales promotional activity Interpretation: The bank still needs a lot to be done as far as publicity is concerned. The following chart depicts that 55% people says that the bank needs more publicity TABLE-16 Department of Management Studies, M.S.Engineering College. Bangalore Page 68
A Study on Customer Satisfaction Towards HSBC Bank Table-16: Showing that the respondents opinion about using suitable media by the bank for advertisement. Media
No. of respondents
Percentage
Television
24
48%
Radio
10
20%
Newspaper
12
24%
MYNL representative
4
8%
50
100%
Total
Analysis: the above table showing that out of 50 respondents, 24 respondents suggested that television as an effective media for advertisement. CHART-16 Chart-16: Showing that the respondents opinion about using suitable media by the bank for advertisement.
Interpretation: The most preferred media chosen by most of the people is television as they more deeply come to know about the features of the product through it.
3. FINDINGS AND SUGGESTIONS 3.1 Findings: 1) It was found that out of 50 respondents, 27 of them were male and 23 of them were
female. 2) Out of the 50 respondents interviewed it is found that majority of the respondents were in the age group of 30-40 years. 3) Out of the 50 respondents interviewed it is found that 35 respondents annual
income is from 160001-500000. 4) From the study it is observed that 26 of the respondent’s occupation is salaried
person. 5) From the study it is observed that 20% of the respondents will open their saving
account based upon value added services given by the bank. Department of Management Studies, M.S.Engineering College. Bangalore Page 69
A Study on Customer Satisfaction Towards HSBC Bank 6) From the study it is observed that most of the respondents have their account in
SBI Bank. 7) From the study it is observed that 20of the respondents have saving type of account. 8) Out of the 50 respondents interviewed it is found that 19 of the respondents are
agreeing that HSBC is providing better facilities. 9) From the study it is observed that 17of the respondents have rated very good for the product offered by HSBC. 10)From the study it is observed that 43 points are given by the respondents towards
flexibity service of HSBC Bank. 11) From the study it is observed that 34% of the respondents are satisfied by the service offered by HSBC Bank. 12) From the study it is observed that 25 respondents have good experience in HSBC Bank. 13) From the study it is observed that majority of the respondents are aware of HSBC Bank. 14) From the study it is observed that majority of the respondents agree that HSBC Bank is a trust worthy bank. 15)From the study it is observed that 56% of the respondents says that the bank still
needs publicity. 16)From the study it is observed that 48%of the respondents say’s that television is the
suitable media for the advertisement of HSBC Bank.
3.2 SUGGESTIONS A. Best play in a buoyant environment
Favorable macro, buoyant Market
related
revenues and a benign environment for asset quality. 1) HSBC as a player focused on maintaining and /or improving Market share in
key
business segments, particularly retail lending- Will, in our view, benefit immensely form a positive operating Environment. 2.) Pricing power in consumer financing segment profitability against potential shocks.
Department of Management Studies, M.S.Engineering College. Bangalore Page 70
A Study on Customer Satisfaction Towards HSBC Bank 3.)
HSBC enjoys a dominant market position across customer Categories in retail
lending. The strong market position and robust Demand for consumer financing vests significant pricing power With HSBC is believed either by allowing a hike in lending rates, Negotiating higher subvention form manufacturers of cutting Distribution costs. 4.) Strong pricing power and a balance sheet that is significantly biased towards retail lending buffers HSBC profitability from in the bank's funding cost. 5.) In line with consensus, we recommend buy HSBC for growth Reasons and not for the relative valuation appeal. It is not so much about HSBC but about their respective operating metrics and growth conditions. Market has rewarded both strategies: HSBC broad-based strategy allows capturing value across the Value chain in a customer segment; and HSBC like other large players in the private sector, enjoys favorable conditions arising from a restrictive regulatory/policy Environment towards new entrants and foreign banks and slow Pace of reforms for state-owned banks is believed.
4.CONCLUSION: Thus, HSBC has been able to use technology to provide value-added service to its customers during the last few years. For HSBC, technology is an integral part of their business. However, their overall progress could have been smoother but for certain internal and extraneous factors and also a pressure on spread due to a competitive market (Annual report, 2000 –01). E-banking has become a necessary survival weapon and is fundamentally changing the banking industry worldwide. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. No country today has a choice- whether to implement E-banking or not given the global and competitive nature of the economy. HSBC have to upgrade and constantly think of new innovative customized packages and services to remain competitive. The invasion of banking by technology has created an information age and commoditization of banking Department of Management Studies, M.S.Engineering College. Bangalore Page 71
A Study on Customer Satisfaction Towards HSBC Bank services. HSBC have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their traditional infrastructure. The rise of E-banking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers. Without any doubt, the international scope of E-banking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes.
Department of Management Studies, M.S.Engineering College. Bangalore Page 72
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