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A PROJECT REPORT ON Marketing strategies for enhancing the debit card base of J&K Bank
Submitted to Punjab Technical University Jalandhar FOR PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTERS IN BUSINESS ADMINSTRATION SUBMITTED BY MAFOOZ ILAHI ROLL NO: 1172945
INDEX
Acknowledgement Declaration Executive Summary Introduction Profile
Research Objective Introduction to the J&K Bank Credit Cards Debit Cards Point of Sale Machine E-Banking Mutual Funds
Bibliography
EXECUTIVE SUMMARY
In few years JAMMU & KASHMIR BANK financial services has emerged as a tool for ensuring ones financial well-being. P.O.S machines, CREDIT cards, DEBIT cards etc. have helped families tap into the success of Indian industries. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds and using various services. The trick for converting a person with no knowledge of services to a profitable customer is to understand which of the potential customers are more likely to buy credit card,
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POS machine, debit card and to use the right argument in the sales process that customers will accept as important and relevant to their decision.
This project gave me a great learning experience and at the same time it gave me enough scope to implement my marketing ability in the sale of the services offered by the bank. This report will help to know about the various financial services offered by the J&K bank and the people response to them. The report throws some light on some factors that lead to the preference of J&K bank services over other banks. I hope the research findings and conclusions will be of use.
BANKING
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Banks are the institutions where those who have some savings can keep their money in the form of deposits & those who need money borrow money on payment of interest with
certain conditions that assure recovery of the borrowed money. The rate of interest charged by the bank from its borrower is usually higher than what it pays to the depositor. In addition to the safe money keeping of depositor and money lending to the borrower a bank also helps people in many kinds of money transactions. In brief the main functions of bank are: Receiving money from the depositors Lending money on demand Transferring money from one place to another Receiving payment for public utility services such as telephone bills, house tax etc Renting safe deposits locker for safe custody of valuables Helping travellers and tourist by providing travellers cheques and foreign currency etc. The various types of account provided by the bank are as follows: Saving account Current account Term or fixed deposits
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Recurring deposits
PROFILE
Incorporated in 1938 as a limited company. Governed by the Companies Act and Banking Regulation Act of India. Regulated by the Reserve Bank of India and SEBI. Listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) 53 percent owned by the Government of J&K. Rated "P1+" by Standard and Poor- CRISIL connoting highest degree of safety. Four decades of uninterrupted profitability and dividends.
Jammu & Kashmir bank was founded on October 1, 1938 and it commenced business from July 4, 1939. The Jammu and Kashmir bank limited has been the first of its nature and composition as a state owned bank in the country. The bank was established as a semi state bank with participation in capital by state and the public under the control of state government.
The bank had to face serious problems at the time of independence when out of its total of ten branches two branches of Muzaffarabad and Mirpur fell to the other side of the line of control ( now Pak occupied Kashmir) along with cash and other assets. Following the extension of central laws to the state of Jammu & Kashmir, the bank was defined as a government company as per the provisions of Indian Companies Act, 1956.
Today J&K bank is one of the fast growing banks in India with the network of more than 539 branches/ offices spread across the country offering world class banking products/ services to its customers. The bank recently bagged three very prestigious awards for following fair business practices and commitment to social obligations
The vision of the bank is to be financially sound, profitable, growth and technology oriented bank committed to buildings and maximizing sustainable value for all its shareholders, customers and employees. In its endeavor to attain the goal visualized, the bank is laying maximum emphasis on the effective system of corporate governanc e, with the view to improve companys image, efficiency, effectiveness, and satisfying the public expectations of fairness and ethical conduct.
The new identity of J&K Bank is a visual representation of the banks philosophy and business strategy. The three colored squares represent the regions of Jammu, Kashmir & Ladakh. The counter form is created by the interactions of the squares is a falcon with outstretched wings-a symbol of power and empowerment .The synergy between the three regions propels the bank towards new horizons. Green signifies growth and the renewal, Blue represents stability and unity and Red represents energy and power. All these attributes are integrated and assimilated in the white counter form
and lender of last resort to the Government of J&K. Plan and non -plan funds, taxes and non-tax revenues routed through the bank. Salaries of Government officials disbursed by the Bank. Only private sector bank designated as agent of RBI for banking.
HIGHLIGHTS
The fastest growing bank with 439 branches across the country. Over 98% of the business computerized Internet banking, SMS and mobile banking provided. Anywhere banking, telebanking and swift banking provided. ATMs connected globally to all master networked ATMs.
Mobile ATM services available first of its kind in northern India. JK Bank global access debit card cirrus and maestro enabled. Own credit card.
CUSTOMER SERVICES
The Bank continued its emphasis on maintaining high standards of services to its customer. In this direction the Bank introduced various hi-tech and customer friendly products during the year, providing value added service to achieve customer satisfaction. Customer complaints received are dealt promptly and expeditiously. The Bank is a member of the Banking codes and Standards board of India and has adopted Code of Banks commitment to customer, a voluntary code of providing protection and Right to know to the customer. The Bank has
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established a 24 x 7 help desk address customer queries and the desk is slated to be converted into a full-fledged call center in 2007-08. The Bank is keenly pursuing for ISO 9000 certification for its customer service.
RESEARCH OBJECTIVES
To attract the more and more customers towards the debit card service. To find out the reasons,why less customers use debit card service.
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1. Insurance: (J&K bank ties up with METLIFE for life insurance & BAJAJ Allianz for non-life insurance.) 2. Debit cards 3. Credit cards 4. POS machine 5. Mutual Funds 6. E-banking
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making purchases. In some cases, the cards are designed exclusively for use on the Internet, and so there is no physical card.
In many countries the use of debit cards has become so widespread that their volume of use has overtaken or entirely replaced the check and, in some instances, cash transactions. Like credit cards, debit cards are used widely for telephone and Internet purchases.
However, unlike credit cards, the funds paid using a debit card are transferred immediately from the bearer's bank account, instead of having the bearer pay back the money at a later date.
Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash and as a check guarantee card. Merchants may also offer cash back facilities to customers, where a customer can withdraw cash along with their purchase.
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Enabled
Accepted at National Financial Switch (NFS) ATMs No Transaction Fee at JK Bank ATMs No Transaction Fee on Purchases
Cash withdrawal facility upto 20% of total credit limit Loyalty programme MasterCard SecureCodeTM enabled Credit Cards J&K Bank MasterCard Credit Card. This service through a simple checkout process confirms your identity when we make purchase on internet.
Types of Cards
Acceptability
All Merchant Establishments like shops who honor MasterCard Credit Cards.
Eligibility
Annual Income
For Salaried -Above 80,000.00 1,50,000.00
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Documentation
Credit Limits
Blue Empowerment Card- Upto Silver Empowerment Card-Upto Gold Empowerment Card-Upto 1,00,000.00
25,000.00 50,000.00
Rate of Interest Annual Fee Renewal Fee Add-on Card Fee Late Fee One Time Password(OTP) for IVR transactions
300
250
150
100
Effective January 1, 2011, as mandated by Reserve Bank of India (RBI), Credit-Cardissuing Banks in India have introduced an additional measure of security for IVR
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transactions (Interactive Voice Response transactions are those transactions which are made over the phone where certain CreditCard details are to be entered into an automated system in order to make payment to a merchant for the purchase of goods/services) through their Credit Cards the OTP (One Time Password) generation.
What is an OTP?
An OTP is a six-digit code, valid for a limited period from the time of placing a request for it. You will need to obtain an OTP before every IVR payment transaction.
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a. Money Transaction
c. Shopping
b. Online Purchasing
d. Ticket Reservation
13. How often you use your DEBIT/ATN card for payments?
a. Less than 3 times in a month c. 7-10 times in a month b. 3-6 times in a month d. More than 10 times
14. Do you feel comfortable while giving your DEBIT/ATM card to someone else for the payment?
a. YES b. NO
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16. How much maximum amount you would prefer to pay through DEBIT/ATM card?
a. Less than 1000 c. 3000-10000 b. 1000-3000 d. More than 10000
18. If YES,How?
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a. Because you are using E-Banking b. Because you are using cheques for transactions c. Because you are not aware about DEBIT/ATM card d. Other
19. If NO,Why?
a. Because it is fastest technology b. Because it reduces your time of transaction c. Because it is easy to use d. Because it is safe process
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To find out the factors which are responsible for unawareness or rejections about J&K debit cards. To check the satisfaction level of the preferred and classic customers regarding debit cards. To analyse the effective strategies of jk bank our debit cards.
RESEARCH METHODOLGY:
Primary Objective:
To finding out the factors which are responsible for unawareness or rejections about J&K debit cards.This was done by interacting with people through the medium of Questionnaires and Direct interviews being taken in some cases. The satisfaction greatly depends on the quality of service, the interests being provided on various banking facilities and the payback period for taking any sort of loan. One of the important factors affecting customer expectations is the presence of on-line banking facility being incorporated by the bank in its very basic functioning infrastructure.
The project helped in developing an insight about the Actual level of satisfaction and the Expected level of satisfaction. The various grievances that came forwarded during the survey and the various things which the customers wanted the bank to incorporate in
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its structure is attached in the report afterwards in the form of Recommendations. Through the project, the competitive strategies being followed by other banks were also analyzed.
Sampling Technique:
The problem definition can be said to be the quite essential part of the research process; as it determines precisely, what the managerial problem is and the type of information that the research can generate to help the problem before conducting the field work. It is better to decide upon the method/technique of data collection. Generally, there are two techniques of data collection: 1. Census technique 2. Sample technique or convenient sampling A census is a complete enumeration of each and every unit of population where as in a sample only a part of the universe is studied and conclusion about the entire universe is drawn about that basis. The census method is costlier and more time consuming as com-pared to sampling method but the result are near representatives than sample method. The availability of resources, time factor degree of accuracy desire and scope of the problem enable us to apply sample technique.
DATA COLLECTION
The objectives of the project are such that both the primary and secondary data is required to achieve them. So both primary and secondary data was used for the project. The
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mode of collecting primary data is questionnaire mode and sources of secondary data are various magazines, books, newspapers & websites etc.
1. Primary Data:
The primary data was collected to measure the customer satisfaction regarding J&K bank debit cards. The primary data was collected by means of direct personal interview method through structured questionnaire and analysis was done on the basis of response received from the customers. The questionnaire has been designed in such a manner that the customers satisfaction level can be measured and consumer can enter his response easily
2. Secondary Data:
The purpose of collecting secondary data was to achieve the objective of studying the factors which are responsible for unawareness or rejections about J&K debit cards.
Sampling Design:
It is very difficult to collect information from every member of a population. As time and costs are the major limitations that the researcher faces.
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Sampling Method:
Our sample consisted of 100 personal interviews. We structured our personal interviews on the basis of a sample random sample.
Sample size:
Because of the various constraints imposed on our project work, especially time and cost, our sample size was limited to 100. This also enabled us to obtain an equal number of respondents in each stratum
Sampling plan:
The research was conducted mainly at the branch and further we met certain customers personally at their offices after getting the proper references.
Questionnaire design:
We designed our questionnaire based on the information acquired from our background research. We also used our own personal judgment when determining which type of questions might be the most applicable to the information we were trying to obtain. The questionnaire consisted of 19 questions with options against each and one open ended question; at the end, for suggestion.
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In designing the format of our questionnaires, we used the standard procedure to formulate a questionnaire.
Collection procedure: Personal interviews were conducted using individual questionnaire for each
respondent. The responses were recorded directly onto each questionnaire.
Tools of analysis:
After collecting the data has been analyzed through various statistical tools and techniques. The unwisely data should necessarily be condensed into few manageable groups and tables for further analysis. Thus it helps to classify the raw data into some purposeful and usable categories. The tools used are tables and pie charts.
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Interviewer bias could not be avoided as in case of many surveys open ended questions involve the use of probing techniques that increase interviewer bias. However, as our study did not use many open ended questions, the extent of the bias was reduced. Some of the respondents gave ambiguous replies for certain questions or omit-ed the responses to some of them. The interpretation of such responses become-s difficult and could generate wrong result.
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No 6% Other 3%
Yes 91%
Analysis:- Above diagram shows the position of the J&K bank in the market where 91% people out of 100 people may know about the debit cards service products of J&K Bank whereas, 6% people and 3% people doesnt know or doesnt have an exactly about debit cards of J&K Bank.
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Other 10%
Less Marketing 5%
Analysis:- Above diagram shows the reason of not having or preferring the J&K Bank debit cards which shows the bank failure in exposing or creating awareness about their products. Under a survey I find that mostly people doesnt have an interest in our products whereas 80% and 10% people doesnt have our card because of our less marketing and lack in personal interactions respectively. Rest 10% have many other factors..
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yes 78%
Analysis:- According to survey,78% people out of 100 people have debit cards and remaning 22% does not have debit cards.
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no 19%
other 7%
yes 74%
Analysis:- Above diagram shows that 74% of people out of 100 people wants to use debit cards service,19% of people out of 100 people doesnt want to use that service and remaning 7% are others.
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Other 24%
price 23%
awareness 32%
usability 21%
Analysis:- According to the diagram,32% people out of 100 people are not aware about the debit card sevices,23% people and 21% people out of 100 people are not using debit card services because of price and usability respectivetively.24% people are others.
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0%
satisfied 68%
Analysis:- This diagram depicted that out of every 100 people who having an debit cards mostly 68% holders are satisfied with the charges whereas 32% holders are not satisfied with the charges of debit cards.
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Analysis:- Above diagram shows that 62% card holder out of 100 people want there favorite picture on there debit cards 38% holders doesnt want there favorite picture on there debit cards.
other 0%
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Analysis:- From the above diagram, I may analyze that 87% of people out of every 100 people thinks that the max. withdraw amount is limit and 13% people think that the the no. of atm is not enough.
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owner 12%
other 9%
bank 79%
Analysis:- After an survey, I questioned 100 people about the debit cards from those79% people says that bank should be responsible for card embezzed 12% peoples says that owner should be responsible. 9% are others.
internet banking 7%
by cash 61%
Analysis:- Out of 61 people of every 100 person prefer to pay for purchase by cash, 20% of people prefer to pay through credit,12% through atm card and only 7% prefer to purchase through internet banking.
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11. For what purposes you used your DEBIT/ATM card? shopping 13% ticket reservation 6%
Analysis:- Above graph shows that, 60% people of out 100 peoples have debit cards for the pupose of money transaction whereas 21% people use for the purpose of online purchasing.13% people and 6% people use for the purpose of shopping and ticket reservation respectively.
No 37%
Yes 63%
Analysis:- Above graph shows that, 63% of people out of 100 people have a trust on debit cards security and remaining 37% doesnt have trust on debit cards security.
13. How often you use your DEBIT/ATN card for payments?
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Analysis:- According to the survey,52% people out of 100 people use their debit cards 3-6 times in a month whereas 33%,11% and 4% use their debit cards less than 3 times in a month,7-10 times in a month and more than 10 times in a month respectively.
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14. Do you feel comfortable while giving your DEBIT/ATM card to someone else for the payment?
No 50%
Yes 50%
Analysis:- This diagram shows that out of every 100 peoples, 61% of people of total are not feeling comfortable while giving the debit card for someone else whereas 39% of people of total are feeling comfortable.
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other 4%
security 22%
Analysis: - 63% people out of 100 people like debit cards because it is conveince,22% like because of security reason,11% like because of fast payment and 4% are others.
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16. How much maximum amount you would prefer to pay through DEBIT/ATM card?
1000-3000 43%
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Analysis:- After the survey,I concluded that 43% of people out of 100 people prefer to pay 10003000 through debit card,23% people prefer less than 1000 ,22% and 12% people prefer to pay 300010000 and more than 10000 through debit cards.
yes 32%
No 68%
Analysis:- According to the survey of 100 people,68% people say that thay cannot do without debit cards and remaining 32% can do without debit cards.
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18. If YES,How?
because of Ebanking 11%
other 18%
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Analysis:- According to diagram 65% people using cheque service,11% using E-banking,6% are not aware about debit card services and 18% are others.
19. If NO,Why?
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Analysis:- above diagram show that 44% people out of 100 people use debit cards because it is fastest technology,36% people use because of safe process,10% and 10% use because it is easy to use and it saves time respectively.
RECOMMENDATIONS
1. The J&K bank should appoint direct selling agents which has almost become a necessity in modernized banking culture to attract new consumers. 2. J&K bank should device some aggressive marketing strategies to expand its market, for example making association with some great cause or endorsing some celebrity to advertise its various financial services. It can be that Jk bank should use a localpersonality to advertise its products that seems more appealing to the local people. 3. The financial services like debit cards should be advertise in the various branches of the bank & the customers should be made aware of the services via sms and e-mail.
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4. 87% peoples of out 100 peoples wants to increase the withdraw amount limit and remaining 13% doesnt want.If bank increases the withdraw amount limit then it shows the excellent performance on debit card services. 5.After an survey, I questioned 100 peoples about the debit cards from those76% peoples know about debit cards/ATM and 24% peoples dont aware about the bank Debit card Service. Jk Bank shows the good performance on debit card services. 6. 60% peoples of out 100 peoples have debit cards whereas 40% peoples doesnt have debit cards. If bank provide more better service than there may be rise in the holders of debit cards.
7. 59% peoples of out 100 peoples want to use the debit/atm card for the purpose of online purchasing and remanining 39% want to use for the purpose of money transaction,ticket reservation and shopping.
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BIBLOGRAPHY
http://jkbank.net/customerCards.php http://jkbank.net/customerMutualFunds.php http://jkbank.net/cardUsage.php
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