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Comparison of CRM in Standard Charter Bank and Alfalah Bank in

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					                                                 Page 1 of 48

  Comparison of CRM in Standard Charter Bank and
                       Bank Alfalah


A REPORT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT
SCIENCES, VIRTUAL UNIVERSITY OF PAKISTAN IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF
MASTERS IN BUSINESS ADMINISTRATION.



Submitted By:
                       MC080200061
                      Tanveer Ahamd




          Department of Management Sciences,
                Virtual University of Pakistan
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 I dedicate this project report to My
beloved and kind parents and my elder
              brother.
                                                                              Page 4 of 48




                             Acknowledgement
All gratitude and thanks to almighty “ALLAH” the gracious, the most merciful and
beneficent who gave me courage to undertake and complete this task. I am very much
obliged to my ever caring and loving parents whose prayers have enabled me to reach
this stage.

I am grateful to almighty ALLAH who made me able to complete the work presented in
this project. It is due to HIS unending mercy that this work moved towards success.

I am highly indebted to our course instructor for providing us an opportunity to analyze
the CRM in most prestigious banks like “Bank Alfalah and Standard Charted Bank"
which is vital ingredient of MBA (Marketing) program. I am very great full to

Mr. Fazal Shehzad        (Branch Manager, Bank Alfalah)

Mr. Abd-us-Saboor        (Business Development Officer, Bank Alfalah)

Mr. Umer Usman           (Business Development Officer, Bank Alfalah)

Mr. Hashim Raza          (Customer Relationship Manager, SCB)

Mr. Naeem Akhar          (Customer Relationship Officer, SCB)

for giving me guideline and cooperation for the completion of this project.

I feel great pride and pleasure on the accomplishment of this project.
                                                               Page 5 of 48

                      Executive Summary:

The main theme behind this report is to help understand the major
functions of the Customer Relationship Management System of Standard
Chartered Bank and Bank Alfalah as I had the opportunity of analysis at
these prestigious banks. This requires that I introduce both the Banks and
then I will go on to give a brief summary of the major points, related to
my project report.

Bank Alfalah is engaged in providing banking and financial services. The
bank provides services such as lending loans and accepting deposits,
finance leasing, credit cards and money transfer services. With a
partnership with the Abu Dhabi Group the position of the bank became
stronger which allowed the bank to invest more in revolutionary
technology to increase its range of products and services. This facilitates
the commitment of bank’s management to a culture of innovation and
seeks out synergies with clients and service providers to ensure
uninterrupted services to its customers. The bank perceives the
requirements of customers and matches them with quality products and
service solutions.

During the past five years, it has emerged as one of the foremost financial
institution in the region endeavoring to meet needs of tomorrow today.
The Group's principal activity of Bank Alfalah Ltd is to provide
commercial banking and related services. The Group accepts deposits in
local currency, client deposit in foreign currency, remittances, and
advances to business, trade, industry and agriculture.

Standard Chartered is the largest and fastest growing International Bank in
Pakistan. The Bank has been operating in Pakistan since 1863 when it first
established its operations in Karachi. Standard Chartered now employees
over 4,000 people and has a branch network of 162 branches across 41
cities in the country. Standard Chartered’s core businesses in Pakistan are
in Consumer Banking and Wholesale Banking. Standard Chartered
Pakistan is the first international bank to get an Islamic Banking license
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and to open the first Islamic Banking branch in Pakistan and has been
given credit ratings of AAA/ A1+, the highest long-term rating assigned
by PACRA to any private sector commercial bank.The Bank’s efforts
have been recognized by independent and credible authorities; we won
"Best Foreign Commercial Bank in Pakistan" award by Finance Asia;
"Best International Trade Bank in Pakistan 2009" by Trade Finance
Magazine, a publication of Euromoney; "Best Foreign Exchange
Provider" Award from the Global Finance Magazine for 2010; Triple A
awards for the 'Best Debt House in Pakistan' award by The Asset;
"Pakistan Deal of the Year – 2009" award by the Islamic Finance News;
'Awards for Excellence', London 2009, by the Global Custodian;
Consumer’s Choice Award for being the "Best Credit Card Provider in
Pakistan" by the Consumer Association of Pakistan.

My project report, as mentioned earlier is about the CRM system which
comes under the marketing strategies. During my research I met the bank
staff, interviewed with them and seek help from the internet about the
banks and their strategy about the CRM. To evaluate the compliance and
results of the strategy and policies approaching customer are asked to
fulfill the questionnaire.

A major portion of the report is devoted towards explaining and describing
the tasks that I performed or that I observed in both banks. I have worked
out on the literature and go through the website and different published
material of both the banks. I have gone through the CRM plan of the
banks, CRM goals objectives of the banks. Some how the goals and
objectives of the banks are almost the same to meet the customers
satisfaction and increase the revenue of the bank through customer and
satisfaction and royalty. Both banks have some strategies to meat the
requirements of customer retention and acquisition. For good and
competent services to the customers the banks have trained their staff and
introduced the new E-CRM services.
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Lastly I have discussed the problems that I think that the banks are facing
at present and also given recommendations as to how these can be
resolved. My suggestions are divided in categories where some
suggestions are for the improvement of the product while others are for the
management.
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                        Table of Contents
                                                     Page #
1. Chapter         INTRODUCTION                      10
   1.1     Background                                10
   1.2     Introduction of the project               11
   1.3     Objectives of the project                 12
   1.4     Significance of the project               12
   1.5     Why Customer Relationship Management      13
   1.6     Introduction of the Bank Alfalah          13
   1.7     List of the competitors BAF               16
2. Chapter         CUSTOMER RELATIONSHIP
                   MANAGEMENT                        17
   2.1     Marketing Mix                             17
   2.2     Segmentation                              21
   2.3     Target marketing                          22
   2.4     CRM Plan of Bank Alfalah                  22
       2.4.1 CRM Objectives                          22
       2.4.2 Strategies of CRM at BAF                23
       2.4.3 CRM functions of BAF                    25
   2.5     CRM database                              27
   2.6     Customer Support and Service Strategies   27
   2.7     E-CRM                                     27
3. Chapter         STANDARD CHARTERED BANK           28
   3.1     Introduction of the SCB                   28
   3.2     Marketing Mix                             32
   3.3     Segmentation and Target Marketing         34
   3.4     CRM Plan of SCB                           36
       3.4.1 CRM Objectives                          36
       3.4.2 Strategies of CRM at SCB                36
       3.4.3 CRM functions of SCB                    39
   3.5     CRM database                              40
   3.6     Customer Support and Service Strategies   41
   3.7     E-CRM                                     41
4. Chapter         METHODOLOGY                       42
   4.1     Data Collection Sources                   42
   4.2     Data Collection Tools                     42
   4.3     Data Processing                           42
   4.4     Sampling                                  42
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5. Chapter      DATA PROCESSING AND ANALYSIS 43
   5.1   Field Work / Data Collection               43
   5.2   Data processing, analysis & Interpretation 44
6. Chapter      CONCLUSION, RECOMMENDATIONS &
   LIMITAIONS                                       44
   6.1   Conclusion                                 44
   6.2   Recommendations                            45
   6.3   Limitations                                46

                       List of Acronyms:


      Acronym Used

            SCB        Standard Chartered Bank

            CRO        Customer Relationship Officer

                       Customer Relationship
            CRM
                       Management

            AOF        Account Opening Form

            BAF        Bank Alfalah Ltd.

            KYC        Know Your Customer

            CSI        Customer Satisfaction Index

            BDO        Business Development Officer

            PDC        Post Dated Checks
                                                              Page 10 of 48


                 1 CHAPTER
           INTRODUCTION
1.1 Background:
   The biggest management challenge in the new millennium of
   liberalization and globalization for a business is to serve and maintain
   good relationship with the king – the customer. In the past producers
   took their customers for granted, because at that time the customers
   were not demanding nor had alternative source of supply or suppliers.
   But today there is a radical transformation. The changing business
   environment is characterized by economic liberalization, increasing
   competition, high consumer choice, demanding customer, more
   emphasis on quality and value of purchase etc.


   All these changes have made today’s producer shift from traditional
   marketing to modern marketing. Modern marketing calls for more
   than developing a product, pricing it, promoting it and making it
   accessible to target customer. It demands building trust, a binding
   force and value added relationship with the customers.


   The process of developing a cooperative and collaborative
   relationship between the buyer and seller is called customer
   relationship management shortly called CRM. According to Ashoka
   dutt head of Citi Bank “the idea of CRM is to know the individual
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   customer intimately, so that the company has a customized product
   ready for him even before he asks for it.”


1.2 Introduction of the project:
   Banking sector owes a pivotal importance in the economy of any
   country through its vibrant functions. This is the deep seated
   motivator that geared up me to have a deep analysis of it.


   CRM is a simple philosophy that places the customer at the heart of a
   business organization’s processes, activities and culture to improve
   his satisfaction of service and, in turn, maximize the profits for the
   organization.


   A successful CRM strategy aims at understanding the needs of the
   customer and integrating them with the organization’s strategy,
   people, and technology and business process.


   I shall made industrious efforts to converse them comprehensively in
   this project. Particularly, I shall study of CRM of Standard Chartered
   Bank and Bank Al-Falah Limited. I shall make maximum venture to
   elaborate this project with the material read, listened and observed.


   I strongly believe that this project will guide and ease the readers to
   understand the operations of banking system with respect to CRM and
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   more prominently have good knowledge about Standard Chartered
   Bank and Bank Al-Falah Limited, in Pakistan.


1.3 Objectives of the Project:
   This project report will help in achieving following objectives:
      1. To determine and compare the effectiveness of CRM of the selected
          banks in acquiring new customers
      2. To determine and compare the effectiveness of CRM of the selected
          banks in the retaining the existing customers.
      3. To determine whether the CRM of both the banks are effective in
          complaint handling.
      4. To determine whether the selected banks are working to assure
          customer satisfaction.


1.4 Significance of Project:
   This report will help the organization to achieve following benefits:
         Streamlined sales and marketing processes
         Higher sales productivity
         Improved customer service
         Better customer profiling and targeting
         Reduced expenses
         Increased market share
         Higher overall profitability


   Through this project report we shall come to know about the CRM
   techniques which are good for banking business. People of every
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        country have some norms and social values and CRM should be in
        accordance of such values and norms, this project report will also
        explore to us that which CRM tools and techniques are taken by the
        people of Pakistan with open arms and which are not suitable for this
        society. This project report will also tell us that how a CRM will help
        in achieving the goals of State Bank and the Government. With the
        help of this project report the stakeholders of the bank will also come
        to know another way of analyzing the bank which is CRM and which
        affects on the performance very much.
        This project will help the organizations to increase their profits in the
        light of the findings of this project which will result in high dividend
        for the shareholders.


     1.5 Why Customer Relationship Management:
           A satisfied customer in 10 years will bring 100 more customers to
            the company.
           It costs 7 times more to attract a new customer than to serve an old
            one.
           20% of the company’s loyal customers account for 80% of its
            revenues. (Pareto’s principle).
           The chances of selling to an existing customer are 1 in 2, the
            chances of selling to a new customer are 1 in 16.


     1.6 Introduction OF Bank Alfalah

1.6.1 Brief History of Bank Alfalah Limited
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     Bank Alfalah Limited is a private bank in Pakistan owned by the Abu
     Dhabi Group. Bank Alfalah was incorporated on June 21, 1997 as a public
     limited company under the Companies Ordinance 1984. Its banking
     operations commenced from November 1, 1997. The bank is engaged in
     commercial banking and related services as defined in the Banking
     companies ordinance, 1962. The management of the bank had
     implemented strategies and policies so the bank would become a major
     player in the market.

     On the 16th of May, 2005 Bank Alfalah formally took over the
     Bangladesh operations of Shamil Bank of Bahrain for US $17.88 million
     and renamed it to Bank Alfalah. This was the first branch of the bank
     outside Pakistan. Currently it has five branches outside the country.

     Bank Alfalah Limited, through its subsidiaries, provides various
     commercial banking products and services. It offers fixed deposits,
     savings deposits, current accounts, and term deposits, as well as safe
     deposit locker facilities. The bank provides credit cards, debit cards, auto
     loans, and home loans. It also offers project finance, export finance, trade
     finance, leasing, lending, guarantees, and bills of exchange, as well as
     agri-finance.

1.6.2 Nature of the organization:

     Bank Alfalah is engaged in providing banking and financial services. The
     bank provides services such as lending loans and accepting deposits,
     finance leasing, credit cards and money transfer services. With a
     partnership with the Abu Dhabi Group the position of the bank became
     stronger which allowed the bank to invest more in revolutionary
     technology to increase its range of products and services. This facilitates
     the commitment of bank’s management to a culture of innovation and
     seeks out synergies with clients and service providers to ensure
     uninterrupted services to its customers. The bank perceives the
     requirements of customers and matches them with quality products and
     service solutions.
                                                                   Page 15 of 48

     During the past five years, it has emerged as one of the foremost financial
     institution in the region endeavoring to meet needs of tomorrow today.
     The Group's principal activity of Bank Alfalah Ltd is to provide
     commercial banking and related services. The Group accepts deposits in
     local currency, client deposit in foreign currency, remittances, and
     advances to business, trade, industry and agriculture.

1.6.3 Business Areas:

           Corporate & Investment Banking
           Branch Banking & SME
           Priority Banking & Wealth Management
           International Business
           Treasury
           Consumer Finance
           Information Technology
           Human Resources & Quality Assurance
           Training & Development
           Risk Management
           Commercial Banking
1.6.4 Branch Network:

     Since the inception of Bank Alfalah, Bank Alfalah Limited moved rapidly
     in expanding its branch network and deposit base, along with making
     profitable advances and increasing the range of products and services. The
     company primarily works in Pakistan, Asia Pacific, and the Middle East.
     The Bank is fully aware that the branch network has direct implications on
     the services that it provides to its customers. It offer services through a
     network of total 231 branches and 195 state of the art ATM machines,
     including 5 overseas, and 23 Islamic banking branches. It has currently
     operating in 74 cities of Pakistan, with the registered office at
     B.A.Building, I.I.Chundrigar, Karachi. Some of the main branches are
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located in all of the major cities including: Islamabad, Lahore, Kasur,
Gawadar, Peshawar, Faisalabad, Quetta, D.I.Khan, Rawalpindi, Sargodha,
Sukkur, Sialkot, Multan, Murree, Attock District, Gujranwala, Hyderabad
etc.

1.7 List of Competitors of BAF:
However Bank Alfalah feels that its major competitors are as follows:

      United Bank Limited (UBL)

      MCB Bank

      Citibank

      Askari Bank

As far as UBL is concerned, Bank Alfalah feels that it is a competitor
because UBL itself is a sister company of Bank Alfalah as the Abu Dhabi
Group has stake in UBL and so there is always a comparison between
them. Furthermore, Askari Bank is a competitor because of the fact that
the product and services that it offers is fairly similar to that of Bank
Alfalah and its markup rates are similar as well. MCB, after being
privatized has also introduced a wide variety of services and with its large
number of account holders, it is also a big competitor. Citibank is a
foreign bank that has been established in Pakistan for a long period of time
and has introduced a number of first class services and as Bank Alfalah is
also competing in the services industry, it needs to benchmark its product
and services to a bank with a stature to that of Citibank.
                                                                   Page 17 of 48


                      2 CHAPTER
      Customer Relationship Management
     2.1 MARKETING MIX:

2.1.1 Product:

     The following Services and Products offer by the Bank Alfalah Limited.

 o Financial services
                Structured Finance
   A service offered by many large financial institutions for companies with
   very unique financing needs. These financing needs usually don't match
   conventional financial products such as a loan. Structured finance
   generally involves highly complex financial transactions.
                Trade Finance
   The incertitude and skepticism of the international banking community
   towards financial institutions from emerging markets remained intact.
   Alfalah persistence during the past four years allowed him to make
   significant inroads into the arena of correspondent banking. Large
   international banks, after critically evaluating him, agreed to enter into
   relationship.
                Small and Medium Enterprise (SME)
   Bank Alfalah started a separate department at the Head Office level in
   early 2004. The SME Department was established with a mandate to foster
   SME finance at BAL, explore opportunities for developing structured
   product programs for SMEs, introduce the concept of Dedicated SME
   officers and finding market based solutions to fill the financing gap to this
   important and under-served business segment. Bank Alfalah offers two
   type of small and medium enterprise finance.
                Alfalah Karobar Finance
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Bank Alfalah’s first SME product Alfalah Karobar Finance is a running
finance facility based on projected cash flows. Under AKF, we offer
working capital finance (Rs.0.5 million to Rs. 10 million) to SME’s at
highly competitive rates. Alfalah have a team of professional credit
officers who provide expert financial advice along with customized
packages to diverse range of business clientele. The product is available to
SMEs through our 86 branches in 38 cities.
             Alfalah Milkiat Finance
Bank Alfalah took another step towards addressing the needs of the
industry by introducing Alfalah Milkiat Finance. AMF is aimed at
strengthening the Small and Medium Enterprises viz a viz their business
premises. Alfalah Milkiat Finance offers comprehensive and flexible
financing packages from Rs. 0.5M up to Rs. 20 million for the purchase,
renovation and expansion of business premises.
             Lease Finance
In modern days leasing has now be-come an economic and financial
reality of primary importance. It is the originality of the leasing techniques
and its economical advantages, which has enabled it to enter the world of
industrial investment in Pakistan and on the international scene.
Lease finance provides a significant source of funds for companies to
acquire or use assets. Leasing provides additional earning opportunities to
acquire assets and to get the inflows simultaneously out of the operations
of the same assets. The ownership of the asset is vested with the Bank
(lessor) and in return for rental payments; the client (lessee) has full use of
the asset. Being a medium to long term mode of financing, it allows the
lessee to use the funds for other profitable purposes which otherwise
would have been tied up in case of immediate payment for purchase of the
asset.
             Agriculture Finance
Bank Alfalah Limited acknowledging the vital role of agriculture in the
economic development of Pakistan has designed Rural Finance Program
named as "BANK ALFALAH ZARIE SAHULAT". The product is
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designed to cater for multiple financing requirements of our farming
sector.
Bank Alfalah his customers through chain of complete, distinguished and
specialized products for agriculture sector. Bank Alfalah Limited
Branches are designed to help the farmers with expert advice, technical
know-how and Credit for their multifarious activities through timely,
affordable and attainable modes to suit farmer requirements.
             Consumer Finance
Credit Card:
Bank Alfalah Credit Card is your partner everywhere and is globally
accepted and welcomed at locations displaying the VISA logo. It is
accepted at nearly 29 million locations in more than 150 countries around
the globe and over 22,000 Bank Alfalah’s establishments in Pakistan.
Home Loan:
The crown jewel of our Home Finance scheme, the golden opportunity for
someone starting a career to buy an already constructed housing unit early
in life! We offer a moratorium of up to 3 years in principal payments, for a
financing of up to 20 years. You service only the mark-up element
initially, and principal repayment starts after the end of moratorium
period.
Auto/Vehicles Loan:
Bank Alfalah Limited recently introduced car leasing facility for
individuals and corporate sector has set new dimensions for the product.
Now you are provided with the option of either to get the vehicle leased or
financed. Easily affordable installments on monthly basis in the form of
post-dated cheques will set you free of depositing your rental cheques
every month.
Debit Card:
The Alfalah Hilal Card is an International Visa Debit Card which gives
you an unlimited access to your current / savings account with a simple
swipe, at millions of retail shops and ATMs, worldwide. No Interest No
Minimum Income Requirement - all you need to do is open an account in
any branch of Bank Alfalah Limited No PIN required for Retail
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      Transactions Accepted at more than 1 Million ATMs and 29 Million retail
      outlets around the world.
  o Types of account offered by that bank:
                   Current Account
                   Profit And Loss Account
                   Royal Profit
                   Basic Banking Account
                   Alfalah Kifayat Account
                   Alfalah Mahana Amdan
                   Alfalah Education
2.1.2 Price:
      The price for various services of bank is given in the booklet “The
      schedule of bank charges” attached with this project report. The prices at
      the bank are quite competitive with those of other bank working vertically.
      The Bank Al Falah try to that they give loan at low interest.
2.1.3 Placement:
      The distribution channels are its employees who deal with customers. The
      bank has over 223 branches through which it offers services to its clients
      in different sectors like as:
      Industrial sector
      Agriculture sector
      Commercial Areas
      Small Towns
      Public Organizations
2.1.4 Promotion:
      Various promotional techniques as advertising, personal selling etc. are
      used the promotional strategies of the bank vary according to the market
      condition. However the following techniques are mostly used.
  o Sponsorships:
                   Sports Sponsor:
      (Where there is Sports, there is Al Falah)
      In the arena of sports, Bank Alfalah is actively involved in sponsoring
      events. Sports today not only represent healthy and clean way of life, it is
                                                            Page 21 of 48

big business in its own right. The sponsoring events Sponsored by the
Bank Al Falah Limited in Pakistan range from Cricket Golf, Squash, Polo,
and Volley ball, to Hockey. BAL uses attractive slogans to prominent.
Some famous Events are.
Al Falah Cup Cricket
Bank al Falah Pakistan Squash Open
Bank al Falah Polo
AL Falah Cricket Triangular Series
             Event Sponsor
Social Events
BAL encourages extra-curricular activities and social events that allows
employee to have a social exchange outside the working environment. In
this employee are encouraged to bring there family members along, giving
them a chance to fell a part of BAL family network social events like;
Picnics
Barbeques
Sports
Cultural Tours
Actually they are creating a reference group (a group to which attached
persons feel internal recognition by telling others about that group) and
doing the marketing in terms of Word of mouth (The marketing that
spread from one person to others in the circle of its family, friends,
relatives, neighbors etc).some famous events are
        Whaga Border Trip
        Lahore Basant Trip

2.2 SEGMENTATION
Based on three basis:

   o     Demographic:
           Income.
           Occupation.
           Family Lifecycle.
                                                                      Page 22 of 48

        o Psychographic:
              Life Style.
              Social class
        o Behavioral:
              Benefits.
              Services.
              Quality.
              Convenience.

    2.3 TARGET MARKET:
    Bank Alfalah target market consists of individual clients as well as a
    number of business organizations. Due to different market segments,
    BAF’s different branches have their target markets.

    To capture the import business in Pakistan, the targeted segments is valid
    markets known as business & commercial hub of Pakistan. Due to
    specialized services provided by BAF and its highly competitive foreign
    exchange rates, most of the major importers in this area deal with BAF.

    As far as the individual clients are concerned, the targeted segment is posh
    areas like Madina Town, D-Ground, etc.

    2.4 CRM PLAN OF BANK ALFALAH:
    Bank Alfalah is a multinational bank and is competing in a diverse economy of
    Pakistan. So it has an effective plan for its CRM program.

2.4.1 CRM Objectives

    o   Improve customer experience.
    o   Ensure retention of the customers.
    o   Improve the support to the customers.
    o   Spread a consistent message
    o   Provide real time information to staff which can use that information.
                                                                         Page 23 of 48

2.4.2 Strategies of CRM at Bank Alfalah to achieve customer

    retention and acquisition:
    The main objective of customer relationship management at Bank Alfalah is
    higher profitability through high customer satisfaction and low cost. The goal of
    Alfalah is to have the lowest cost than any other bank in Pakistan. They are doing
    the same things and activities as the other banks in Pakistan but they want to do it
    with the lowest cost and also the highest satisfied customer. Alfalah want to get
    the highest point in the Customer Satisfaction Index (CSI); this is one of the main
    objectives of the bank. The main CRM strategies at Bank Alfalah can be seen as
    follows:

        o Customer Interaction:
    Alfalah uses different channels according to customer requirements in its
    interactions with its customers. Some of these channels include, telephone, call
    center, branch office, ATM, Internet and field based managers. The bank focuses
    so much on the branch channel because they think it is the strongest according to
    the bank’s resources. This is also because the bank helps the customers better at
    the branch. This is where the managers and the staff of the bank gives more time
    to the customer and also the bank is able to learn more about the special situation
    of the customer so that they can meet the customers needs squarely. As part of
    the CRM initiatives of the bank, they meet all customers of the bank at least once
    every year and discuss about their personal finances and their needs and how
    possible the bank can help them meet their needs and aspirations.

        o Personalization or Customization:
    According Alfalah, customers are the same in general sense but they are all
    different according to their needs or they all have different needs so Alfalah try
                                                                    Page 24 of 48

to help them according to their unique needs and tailor special products and
services according to what they want from the bank.

    o Customer Identification:
Alfalah try to get many customers. This is done in several ways. One of the ways
is that, they meet new customers through house brokers. Also, the bank goes out
and gives opportunity to people who are going to buy new houses to become
customers of the bank. The bank also has corporation with brokers so that they
can get more customers through the brokers. Another way that Alfalah acquire
new customers is to arrange meeting with those who are interested in trading
stock. Alfalah also try to win the workers of its corporate customers to become
customers of the bank. Again Alfalah goes out to companies to meet new
customers.

    o Benefits of CRM initiatives at Bank Alfalah
The main benefits that the bank wants to get are higher customer retention and
customer loyalty through higher customer satisfaction. They try to maintain the
old customers and make sure that they are highly satisfied. At Alfalah they try as
much as possible to treat current customers very carefully and in a very proper
way so that they will continue to stay with the bank. Some of the major benefits
that Alfalah intend to achieve and what they have achieved so far can be seen in
the following:

             o   Revenue and profitability enhancement:

             o   Cost Savings and reduction:

             o   Organizational Impact:
                                                                  Page 25 of 48

2.4.3 CRM Function of Bank Alfalah:
       o Marketing Automation:
    Systems for marketing help the Bank identify and target its best clients
    and generate qualified leads for the sales team. A key marketing capability
    is tracking and measuring multi channel campaigns, including email,
    search, social media, and direct mail.

       o Sales Force Automation:

    Powering its sales team with CRM that have functionalities of Sales
    Module the bank Alfalah can manage leads and keep track of the
    communication with prospects, referrals and customers. Sales Automation
    Module of Alfalah includes:
    · Appointment Management
    · Time Management
    · Calendar Management
    · Reporting
       o Services:
    After marketing and selling the product the bank must have a very good
    customer services team. CRM provided a good services module which can
    help the customer services department. They become able to manage
    service contracts, tracking individual cases and recording information in a
    search able knowledge base. Services Automation Module of bank Alfalah
    includes:
                         Product Database
                         Knowledge base search
                         Customer tracking
                         Contract Tracking
                         Customer History


2.4.4 PROCEDURE OF ACCOUNT OPENING

    It is very simple and quick procedure. A person who wants to open an
    account must has the introduction of bank’s staff or any already existing
    account holder of bank. The customer is required to fill an account
    opening form. Then signatures of the introduce are verified from S.S. Card
                                                                Page 26 of 48

before opening account. AOF is very standard and up to the mark which
contains almost whole information about customers. Customer is guide to
fill all columns of AOF. All formalities and requirements are completed
and verified, and all supportive documents are taken and checked
according to the nature of account. If any formality is incomplete,
chequebook is not issued until it is fulfilled.

If a person cannot sign write his / her hand thumb impression is affixed
marked, which is attested by one male or two female witnesses. Thumb
impression for female right hand and for male left hand.

They also have to give identity letter

       NIC copies
       Passport size photograph
One place on the form other is on SS Card they have non-bearer cheques.
On their cheque book a stamp is affixed on it there is written. Thumb
impression should be fixed in front of an officer of the bank.

The bank does not make payment of a cheque bearing a six months or
older date. If an account is not operated in six months. It is called dormant
account.

Following Factors Prior To Opening Of Account Should Be
Considered:
   1.       The suitability of the perspective customers
   2.       Verification of customer credentials.
   3.       The perspective possibility of profitability of the relationship.
   4.       The proposed relationship does not violate:
            SBP rules & regulation
            Applicable local laws
            The bank’s internal policies
                                                                   Page 27 of 48

2.5 Customer relationship management data base for
    customers
Bank Alfalah uses software for keep the data of the customers and their accounts
named Bank Smart. Whereas many other tools like MS Excel and MS access are
used by the individuals of the bank. With the introduction of the online banking
system of Alfalah the databases prepared at the branch level are called for a
consolidated data base which is accessible all over the Pakistan with the help of
the internet.

2.6 Customer support and service strategy:
Bank Alfalah has a well established call center which is 24 hour engaged in
provided valuable knowledge to customers. There is also a complaint system in
every branch which is reviewed by the branch manager periodically. In Bank
Alfalah every employee is trained to deliver optimal services and information to
every query. The complaints and queries are also welcomed on the website of
Bank Alfalah.

2.7 Electronic customer relationship management:
As the other goes and the need of development of banking business Bank Alfalah
also evolved the E-CRM activities. The Alfalah step forward in the following
directions:
           Alfalah has the phone banking services for their customers.
           Alfalah introduced the SMS alert services.
           Alfalah’s website is always open for customers.
           Call centre.
           E-mail marketing.
                                                            Page 28 of 48


                  3 CHAPTER
  STANDARD CHARTERED BANK
3.1 INTRODUCTION OF SCB:
     A brief history of Standard Chartered

Standard Chartered is one of the worlds leading banks headquartered in
London. Its businesses however, have always been overwhelmingly
international. The main events in the history of Standard Chartered and
some of the organizations with which it merged are provided in this
section.

       Expansion in Africa and Asia

The Standard Bank opened for business in Port Elizabeth, South Africa, in
1863. It pursued a policy of expansion and soon amalgamated with several
other banks including the Commercial Bank of Port Elizabeth, the
Colesberg Bank, the British Kaffarian Bank and the Fauresmith Bank. The
Standard Bank was prominent in the financing and development of the
diamond fields of Kimberly in 1867 and later extended its network further
north to the new town of Johannesburg when gold was discovered there in
1885. Over time, half the output of the second largest gold field in the
world passed through the Standard Bank on its way to London. In 1892
the Standard Bank opened for business in Zimbabwe, and expanded into
Mozambique in 1894, Botswana in 1897, Malawi in 1901, Zambia in
1906, Kenya, Zanzibar and the Democratic Republic of Congo (D.R.C.),
in 1911 and Uganda in 1912. Of these new businesses, Botswana,
Zanzibar and the D.R.C. proved the most difficult and the branches soon
closed. A branch in Botswana opened again in 1934 but lasted for only a
year and it was not until 1950 that the Bank re-opened for business in
                                                              Page 29 of 48

Botswana. In Asia the Chartered Bank expanded opening offices in,
Myanmar in 1862, what is now Pakistan and Indonesia in 1863, the
Philippines in 1872, Malaysia in 1875, Japan in 1880 and Thailand in
1894. Some 34 years after the Chartered Bank appointed an agent in Sri
Lanka it opened a branch in 1892 to take advantage of business from the
tea and rubber industries. During 1904 a branch opened in Vietnam. Both
the Chartered and the Standard Bank opened offices in New York and
Hamburg in the early 1900s. The Chartered Bank gaining the first branch
license to be issued to a foreign bank in New York.

       Standard Chartered today

Today Standard Chartered is the world's leading market bank employing
30,000 people in over 500 offices in more than 50 countries. Primarily in
countries in the Asia Pacific Region, South Asia, the Middle East, Africa
and the Americas.

The new millennium has brought with it two of the largest acquisitions in
the history of the bank with the purchase of Grindlays Bank from the ANZ
Group and the acquisition of the Chase Consumer Banking operations in
Hong Kong in 2000.

These acquisitions demonstrate Standard Chartered’s firm commitment to
the emerging markets, where they have a strong and established presence
and where we see their future growth.

       Standard Chartered Bank Pakistan

Standard Chartered is the largest and fastest growing International Bank in
Pakistan. The Bank has been operating in Pakistan since 1863 when it first
established its operations in Karachi.

Standard Chartered now employees over 4,000 people and has a branch
network of 162 branches across 41 cities in the country. Standard
                                                            Page 30 of 48

Chartered’s core businesses in Pakistan are in Consumer Banking and
Wholesale Banking.

Standard Chartered Pakistan is the first international bank to get an
Islamic Banking license and to open the first Islamic Banking branch in
Pakistan and has been given credit ratings of AAA/ A1+, the highest long-
term rating assigned by PACRA to any private sector commercial bank.

The Bank’s efforts have been recognized by independent and credible
authorities; we won "Best Foreign Commercial Bank in Pakistan" award
by Finance Asia; "Best International Trade Bank in Pakistan 2009" by
Trade Finance Magazine, a publication of Euromoney; "Best Foreign
Exchange Provider" Award from the Global Finance Magazine for 2010;
Triple A awards for the 'Best Debt House in Pakistan' award by The Asset;
"Pakistan Deal of the Year – 2009" award by the Islamic Finance News;
'Awards for Excellence', London 2009, by the Global Custodian;
Consumer’s Choice Award for being the "Best Credit Card Provider in
Pakistan" by the Consumer Association of Pakistan.

       Mission Statement & Brand Values

Mission Statement:

“To offer outstanding value to our customers by providing
knowledgeable, efficient and reliable services in a personal, helpful
and responsive manner.”

Over the 150 years of quality services that SCB has provided to its
customers, the Bank has had various mission Statements. However this is
the one that is currently being followed by the organization.

Brand Values:

From the above mentioned mission statement the bank has developed
some very deep-rooted brand values. These values are mainly designed
with the intention of communicating with the customers. However they
                                                              Page 31 of 48

also serve the purpose of showing each employee exactly what a customer
expects when he walks into Standard Chartered. The employees are
constantly reminded of the customer expectations and have to
continuously evaluate how their behavior is conformant with what the
customers have in mind. This is why it is common practice to display
these values in almost each department and on all the notice boards.

These values are there for all employees and apply especially to the
personal loans department. As it is the people of this department who are
mainly going out to meet the customers and getting the opportunity to
communicate these values to them.

The values that have been developed over the 150-year life of this
organization are as follows:

Courageous
Its a commitment to being there for you in good times and bad. We help
you achieve your aspirations by guiding you towards the right choice, not
just the easy one.

Responsive
We are good on our word. We are accessible whenever and wherever you
need us. Not only do we strive to deliver solutions, we also aim to exceed
your expectations.

International
We understand the balance between global and local. You trust us to be
established and internationally networked, while at the same time sensitive
to your individual needs. Our strong network across culture helps us build
stronger relationships based on ideas, not formulae.

Creative
Creative thinkers are not limited by convention. They allow their minds to
soar beyond predictable solutions. That's how we approach each challenge
                                                                      Page 32 of 48

     posed to us, which is why we base our products and services on ideas that
     are innovative, perceptive and instinctive.

     Trustworthy
     We respect you, and the life you live. By understanding your needs and
     tailoring the right financial solutions for you, we earn your trust.


     3.2 MARKETING MIX
3.2.1 Product:
      Consumer banking
      Standard Chartered provide mortgages, Credit Cards, personal loans, auto
      loans, deposit accounts, and wealth management products.
      Corporate and institutional banking
      Corporate & Institutional Banking provides trade finance, cash
      management and lending services.
      Global markets
      Global Markets provides foreign exchange, interest rate management and
      debt capital markets services that are very dynamic in Pakistan as there are
      a lot of changes in the economic climate.
      Service Provided:
           Foreign Exchange
           Spot and Forward
           Asset & Liability management
           Short Term loans/deposits
           Interest rate / Liquidity management
           Economic Research & Analysis
           Customer Risk Management
           Non Deliverable Forwards
           FX Options
           Interest Rate Derivatives
           Interest Rate Swaps
                                                                     Page 33 of 48

            Cross Currency Swaps
            FRAs
            Interest Rate Options
            Financial Engineering
3.2.2 Price
      Standard Chartered Bank Pakistan Limited is an active price maker in the
      market and handles flows of multinationals and foreign investors in the
      stock market. Variable service charges on apply on each category of
      service offerings, these range from bank charge rates to transaction costs
      etc.
3.2.3 Distribution
      Standard Chartered Bank is one of the world's leading banks in foreign
      exchange and money market operations with specialist strengths in exotic
      currency products.[citation needed] Clients have access to a 24-hour
      dealing service through 20 dealing rooms in the principal financial centers.
      The bank has also established a strong reputation for dynamic involvement
      in new financial products such as options and derivatives and is
      particularly strong in the emerging market currencies of Asia, Africa and
      Latin America where it is recognized as being a first choice provider in
      many markets.

     With presence in more than 50 countries and 150 years of experience, the
     bank has a large local customer base in each of these markets attracting
     large volume transactions.
     Standard Chartered Bank (Pakistan) Limited is Pakistan's oldest and
     largest foreign bank with over 150 branches in the country. The history of
     Standard Chartered in Pakistan dates back to 1863, when the Chartered
     Bank of India, Australia and China first established its operations in
     Karachi.
     In 2006 Standard Chartered Bank acquired Pakistan's Union Bank. On 30
     December 2006, Standard Chartered merged Union Bank with its own
     subsidiary, Standard Chartered Bank (Pakistan), to create Pakistan's sixth
     largest bank.
                                                                     Page 34 of 48

3.2.4 Promotion
      Promotional Policies
      At Standard Chartered Grindlays sales promotion is a key ingredient in
      marketing campaigns. A lot of consideration and finances are allocated to
      sales promotion.
      Through advertising building brand awareness and communicating the
      different services being provided by the bank.
      To reach out to the target market and to deepen the brand loyalty
      advertising is to be used.
      Publications and events are also arranged in order to build public relations

     For publicity, the bank uses both the print media and the electronic media.
     Its advertisements appear on the International channels like National
     Geographic and Star Plus etc. recently, the bank has introduced the zakat
     scheme and it is making heavy advertisement on the print media. The
     advertisements normally come in the nation’s leading newspapers.
     Communication
     In Pakistan the communication mix for SCB had been more of below the
     line advertisement rather than an open traditional promotional and
     communication mix. They usually prefer to paint-out the entire bank
     branch using it as an attractive outdoor advertising medium. Other than
     that brochures within the bank are placed for walk in clients to announce
     their new service offerings.



     3.3 SEGMENTATION AND TARGET MARKET OF SCB
     1. Market segments

     Overall market industry for banks in general and SCB in particular can be
     divided into following categories:
     Personal Banking
     Accounts and Deposits
     Debit & Credit cards
     Loans & Mortgages
                                                             Page 35 of 48

Insurance
Investment
Islamic Banking

Standard Chartered, with an aim to meet the unique needs of its customer,
has setup an Islamic Banking Division. The bank is offering tailor-made
Shariah compliant products to its customers.

Wholesale Banking
Transaction Banking
Financial Markets
Corporate Finance
Principal Finance
Positioning of Standard Chartered within the product class




Figure 3.1

Standard Chartered served the Pakistani customer with the existing
products that it offered in different part of the world.
                                                                    Page 36 of 48

    3.4 CRM PLAN OF STANDARD CHARTERED BANK
    SCB is an international bank which have much more than any other commercial
    bank in Pakistan. The competition for SCB is very tough because it has to
    compete in global economy. It some advantages in the Pakistan because of its
    high standards and perceived high value. It has a comprehensive plan for CRM
    whose highlights are as under:

3.4.1 CRM Objectives

    o    Improve customer satisfaction.
    o    Achieving a holistic view of the customer relationship
    o    Attain cross-sell revenues.
    o    Maximum lifetime value.
    o    Identify and target key customer groups
    o    Ensure that each and every customer interaction in handled with the
         same degree of excellence using the same tools and information across
         all lines of business, geographies and sales channels



3.4.2 Strategies of CRM at Standard Chartered Bank to achieve
        customer retention and acquisition:
    According to Mr. Hashim Raza Customer Relationship Manager, Standard
    Chartered Bank based on an interaction that we had with him in his office
    at the main branch of the bank for more than an hour; the basic objective
    of the bank’s CRM programs is to be the bank that has the most satisfied
    customers. This the bank believe will be made possible by making it
    possible for the customers to achieve their needs and aspirations in their
    life. This is based on its statement ‘Make it possible’. In this program they
    try to make it possible for their customers to achieve their goals and
    aspirations in life. The main objectives and strategies of CRM in SCB can
    be seen in the areas below:

         o Customer Interaction:
                                                              Page 37 of 48


When it comes to interaction, SCB uses as many channels as possible as
they can to reach their customers. These channels include: call center,
ATM, sales personnel, branch offices and the Internet. Within these
channels, the bank prefers to contact their customers face to face. They
think that face-to-face discussions can help them gain better understanding
of their customers and vice versa and it is also easy to communicate with
them. For SCB, the interaction that a customer gets has also been grouped
into three categories base on the way they have group their customers, that
is gold, silver and ordinary customers. In this case, the gold customers
have a personal private banker who meets with him or her on regular basis
to discuss the customer’s finances and for the bank to offer advice as to
how best the customer can manage his or her finances base on the
customers needs. The silver customers also have a staff that has been
assigned to them so that any time they need any help or advice they talk to
that particular person who also understands the customers’ needs. In the
same way, the ordinary customer has not been assigned a personal private
banker as it is with the gold and the silver however, anytime they need any
assistance through any of the channels, the bank is happy to help base on
again the customers needs and the information they have about him or her.
Not withstanding the above, SCB does survey about its customers
satisfaction every year. This is for all categories of customers. They call
this Customer Satisfaction Index (CSI). In this program, they try to meet
the best customers to share ideas and discuss and ask for suggestions on
how to help them to manage their private finances.

   o Customer Differentiation:

This is also one of the major objectives and strategy of CRM in SCB.
Basically the B2C customers of SCB have been group into three
categories. They are: gold customers, these are the big and the most
important customers of the bank; silver customers, they are the next
                                                                Page 38 of 48

important customers after the gold and; the ordinary customers, they are
also important but just that they are the normal customers of the bank.

   o Personalization:

Personalization is also part of CRM strategies of SCB. This according to
them is one of their primary aims that the bank try to help each customer
to achieve his or her goals in life according to their personal needs and
demands. They also use data mining methods to search through the
customer database that they have, trying to know the needs of the ordinary
customers and make customized service and products for them. For the
gold and the silver customers, they meet them one on one basis and try to
know their needs so that they can help them to meet these needs.

   o Customer Identification:

SCB identify and acquire new customers through their youth programs.
They go to the university campuses from time to time and meet with the
students. They also sponsor university student programs so that their name
will be familiar with the student body. One way that they get new
customers is that, they also visit companies and talk to the staff. Again
they have partners and affiliates so they try to get to the customers of their
partners and affiliates and also the staff of the corporate customers.

   o Expected Benefits of CRM at SCB

According to Mr. Hashim Raza, the major benefits SCB was expecting or
the main reasons why they embarked on the CRM program as follows:

           o Revenue and profitability enhancement
           o Cost savings and reduction
           o Organizational impact
                                                             Page 39 of 48

   o Priorty Banking Services:

Standard Chartered Bank have the priority banking services which is
provided to the customers who maintain the below mention deposit
balances on relationship basis will be eligible to avail the following
services free of charge. Average quarterly balance of 3 millions and above
in rupee current account, PLS or term deposits account. Average quarterly
balance of US$ 50000 (or equivalent in other FCY)

   o Banking Services Provided

Issuance of Pay Orders, drafts and telegraphic transfer
Standing instruction related to regular banking
Cancellation of pay orders and demand drafts
Issuance of balance confirmation certificate
Collection of cheques
Inter city banking
Duplicate statement
Courier services
Zakat certificate
ATM Debit card annual fees
Up to 4 free transaction per month on M-net/1link networks
Issuance of traveler cheques
Stop payment of cheques
Return of unpaid cheques
Delivery of cheques book by couriers
Inward remittance
Issuance of counter cheques
Free E-statement

   o Locker facility:
                                                                  Page 40 of 48

    50% waiver on first year locker rental fee for locker issued between first
    Jan 2010 to 30th Jun 2010 (on availability of lockers)

3.4.3 CRM function of Standard Chartered Bank
                Marketing Automation:
    Systems for marketing help the Bank identify and target its best clients
    and generate qualified leads for the sales team. A key marketing capability
    is tracking and measuring multi channel campaigns, including email,
    search, social media, and direct mail.

               Sales Force Automation:
    The works included in the Sale force routine of Standard Chartered Bank
    are:
          Appointment Management
          Visits and Calls
          Deepings in relation
          Compliance with the goals and objective of CRM of SCB
          Reporting

                Services:
    CRM provided a good services module which can help the customer
    services department. They become able to manage service contracts,
    tracking individual cases and recording information in a search able
    knowledge base. After marketing and selling the product the bank must
    have a very good customer services team. Services Automation Module of
    bank Alfalah includes:
           Customer Database
           Specialized search for the potential customers
           After sales followup calls
           Follow letter.
           Invite to visit bank for first time services.

    3.5 CUSTOMER RELATIONSHIP MANAGEMENT
        DATA BASE FOR CUSTOMERS
                                                                  Page 41 of 48

SCB uses software for keep the data of the customers and their accounts.
Whereas many other tools like MS Excel and MS access are used by the
individuals of the bank. The databases prepared at the branch level are
transformed into a consolidated data base which is accessible all over the
Pakistan with the help of the internet.

3.6 Customer support and service strategy:
SCB has a well established call center which is 24 hour engaged in provided
valuable knowledge to customers. There is also a complaint system in every
branch which is reviewed by the branch manager periodically. Especially the
CRM department is created and Customer relationship Manager and Customer
Relationship Officers are appointed to provide customer services and information
to the reached customer and phone calls. In SCB every employee is trained to
deliver optimal services and information to every query. The complaints and
queries are also welcomed on the website of SCB.

3.7 Electronic Customer Relationship Management:
SCB has much development in E- CRM. The SCB step forward in the following
directions:
           SCB has the online banking facility for its custmers.
           SCB has the phone banking services for their customers.
           SCB provides SMS services to its clients.
           SCB website is always open for customers.
           Call centre.
           E mail marketing.
                                                              Page 42 of 48


                   4 CHAPTER
                METHODOLOGY
4.1 Data Collection Sources:
Primary data is collected through in-persons mails, telephone calls, and
personal interviews, expert opinions, self observation.

Secondary data is collected through the publication of banks, websites of
both the banks and internet contents search.

4.2 Data Collection Tools:
For data collection one questionnaire is used, which analyze the banks
interaction and support with the customer. Questionnaire also judged the
implication of the bank on its plan and strategies.

4.3 Data Processing:
The data is processed with help of basic softwares (MS Excel, pivot table,
bar graph, etc.) and is interpreted with the help of different mathematical
and statically tools.


4.4 Sampling
          Target Population:
The target population is all the accountholder of Standard Chartered Bank
and Bank Alfalah in Faisalabad.
        Sample size and Sampling Technique:
 A Sample of 60 Customers from each bank is chosen and evaluated
through the tool of questionnaire filled by them.
A simple convenience sampling method is followed in selecting the
sample for the analysis.
                                                                Page 43 of 48




                    5 CHAPTER
DATA PROCESSING AND ANALYSIS
5.1 Fieldwork/Data Collection
The research work is conducted in the branches of both BAF and SCB in
Faisalabad’s geographical area. 4 sites from the above are chosen for
more detailed and longitudinal ethnographic fieldwork. The whole work of
data collection such as interviews and discussion etc. are done by me with
the help of my class fellows. The data itself takes broadly three forms:
1) Minutes transcripts of interviews/observations etc.
2) Field notes
3) Documentation: including photographs, diagrams, paper and electronic
    information provided by colleges during periods of fieldwork.


5.2 Data processing, analysis & interpretation
The data is processed with help of Computer application softwares (MS
Excel, pivot table, bar graph, etc.) and is interpreted with the help of
different mathematical and statically tools. I have assign points to each
question in the questionnaire and then the data collected from the
customers is coded in the MS EXCEL which calculated the aggregate
results for both the banks and then the conclusion is prepare in the light of
those results.


    Summary (will be furnished within 4 days)
                                                              Page 44 of 48


                    6 CHAPTER
CONCLUSION, RECOMMENDATIONS
                AND LIMITATION
 6.4    CONCLUSION
 Serving the consumer market in Pakistan for financial services is an
 enormous undertaking. The geographic span of the country is huge, and
 the needs of consumers are varied and complex. These realities have
 forced Banks to rely upon technology to meet the requirements of the
 consumer financial services market. And as the banks have sought to
 refine its business strategies to include a relationship management
 component, the need for technology has become even more critical. Yet
 the banks recognize that technology alone will not provide it with a
 comprehensive CRM business strategy.

 An interesting aspect of Bank Alfalah’s approach to CRM is that it does
 reflect a balance among technology, people, and business processes. While
 technology powers the advanced analytics that allow the bank to create
 meaningful and appropriate sales and service strategies, it must also rely
 upon well-trained personnel and CRM-based business processes if it is to
 be successful in building relationships with clients. The acknowledgment
 of this reality and the willingness to allocate resources accordingly
 separates Bank Alfalah from most other banks.

 Within Standard Chartered Bank, the goal of CRM is to ensure that
 interactions with customers are consistent and appropriate across all the
 delivery channels. The bank has developed this goal out of the realization
 that its separate platforms serving diverse markets could easily develop
 conflicting customer messages if coordination efforts were not initiated.
 Consistency and appropriateness in customer messages can only be
 achieved if critical customer information is widely distributed among all
 points of customer contact. At present, Royal Bank is storing customer
 sales and service strategies in a centralized profile repository. Branches
                                                              Page 45 of 48

and call centers are supported by these actions contained in the repository
and are the two primary channels involved in the bank’s CRM
implementation.

It is found with the research and analysis the CRM program of the
Standard Chartered Bank is more effective than of Bank Alfalah as it has
strong network of relation with the corporate as well as individuals to
track the new leads

In the strategy to retain the existing customers SCB is also a step ahead
from Bank Alfalah. As it has more interaction with the customer and the
personalized bank is more practical in it.

The complaint handling process of the both the bank is almost the same. If
there is a complaint the reaction is certain and procurement remains
working till the complaint is removed.

The customer satisfaction index is a little higher in case of SCB as
compare to Bank Alfalah. The SCB is proactive in this regards and extra
staff is always there for customer satisfaction.


6.5    RECOMMENDATIONS
   6.5.1   CUSTOMERS PROBLEMS

It seems that the priority is given to the corporate customers in both the
banks as the individuals from middle have to remind the management of
certain branch to do the needful for them. Customer is the king and
customer always right. Bank is earning profit from the customers. Bank
should have a proper relationship with corporate as well as individual
customers. It is recommended that the management should stress on
having satisfactory relationship with individual customers because they
can also provide the revenue in term of profit.

   6.5.2   IMPLICATIONS AND RECOMMENDATIONS FOR
           MANAGERS AND ORGANIZATION:
                                                                  Page 46 of 48



Banks have a huge data and information about their customers. I think
that, they will get a lot of benefits from their CRM initiatives if these
organizations could add the right technology to their CRM programs.
Moreover, one important thing that I think banks should take advantage of
is personalization or customization. Although during my investigations, I
found out that both the Banks I studied, have personalization as part of
their CRM strategies in a way but I am of the opinion that they can do
even better and also get more benefits through personalization by adding
the right technology. Base on the massive data that they collect, and
continue to know a lot of actions and activities their customers go through;
base on the fact that the banker customer relationship is relatively a long
one and in most cases, it can exist until the customer dies.


Furthermore, I think that, banks by using the data can tailor some specific
products and services to meet the needs of their customers at a very right
time. This will then delight the customer and he or she will like to stay and
continue to enjoy such services. Therefore, the customers’ satisfaction will
increase and therefore he or she would like to be loyal and this will then
increase the banks profit eventually. In the long run, it will get positive
impact on the overall performance of the company.


6.6    LIMITATIONS
During working on this project the following limitation in the way. If
these do not exist, this research report can be more effective.
                                                               Page 47 of 48

   It was very difficult to have exact knowledge of the matter, due to lake
    of interest of the bank staff.
   The customers hesitate in providing the information.
   Time constraint is always there.
   Bank Staff hesitate to provide facts and figures.
   Even precise information about the CRM is missing with the bank
    staff.
   CRM study in bank required lot of work to do, which need budget and
    the lack of budget did not allow going in details.
   CRM is a wide study and it become very difficult to limit it only to the
    bank.
                                                                Page 48 of 48



                            Part II
1. Introduction of the student
       • Name:                  Tanveer Ahmad
       • ID:                    mc080200061
       •Course:                 MBA (Marketing)
       • Last Degree Obtained: B.Com
       • Organization’s Name: Subhan Fabrics
       • Designation:           Export Manager
       • Experience (Years):    6 years
2. Appendix/Appendixes
              Schedule of Charges of Bank Alfalah
              Schedule of Charges of SCB
3. Bibliographies
   The facts and figures are collected from the website of Bank Alfalah and
   Standard Charter Bank:

      Bank Alfalah Limited official website
       http://www.bankalfalah.com
      Standard Chartered Bank Pakistan Limited official website
       http://www.standardchartered.com/pk

				
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