4.

6: Processing of Credit card Application

The above flow chart is discussed in following steps. Those are

Step-1

Application submitted to any SCB branch or Credit Card sales team are forwarded to the Credit Card
Operation (CCO) Unit for capturing data into card Application Processing System (CAPS). This
process usually takes one working day.

Step-2

Applications are then forwarded to Consumer Credit Unit (CCU) for necessary credit
assessment. After credit review, all approved applications Specifying credit limits are sent back to
Card operations. The rejected applications are forwarded to sales teams for review or comments.

Step-3

Approved applications received at CCO are sent for Contact Point Verification (CPV) by
outsourcer’s agencies. The agency verifies Telephone Number, residence and business address of the
applicant and forwarded the report on each applicant to CCO.

Step-4

After receiving all CPV report, CCO forwards the approved applications along with CPV report to
CCU for further review. CCU revisits applications and any application with negative CPV is
declined. Previous set credit limit may be reviewed at this point based on CPV report.
Step-5

After this final review from CCU, approved applications are sent back to CCO for opening card
accounts and producing plastics and PINS. CCO sends a system-generated intimation to the
applicants whose credit card application is declined.

Step-6

CCO arranges to deliver the card and PIN at customers mailing address.

4.2: Credit Card Issuing Process of SCB

The process begins with compiling the credit card applications. With proper documentation, the bank
gathers necessary information regarding the applicants. Then the risk assessment division checks the
application and sends it to the Contact Point Verification (CPV) for further testing of the authenticity
of the documents. They also approve or refuse the application afterward and determine the credit
limit for the client. These jobs can be done either by the organization itself or through outsourcing.
Then the bank prepares a master file and issues the cards and then delivers them to the customers.
After receiving the card, cardholder can activate the card through the call centre or by using the card
on the ATM machine.

4.2.1. Requirements:
Completed credit card application form.

One copy of passport size photograph.

Minimum monthly income of Tk. 10,000 for Master and VISA Card Silver.

Minimum monthly income of Tk. 55,000 for Master Card Gold.

Documents (e.g. Salary Certificates, Income Tax Certificates, and six months bank statement,
Photocopy of passport or other Documents).

For foreigners, work permit from the ministry is required.

4.2.2: Supplementary Cards

One may apply for supplementary card(s) for their spouse, parents, sisters, brothers, friends or
children above 18 years of age. The first supplementary is free as long as one are holding the primary
card. The supplementary cards will hold a separate account number, so that in case of loss or theft,
only the affected card(s) need the cancellation. The unaffected card(s) continue to enjoy
uninterrupted card usage.

4.3: Product range of Standard chartered credit card

4.3.1: Local Card

Visa Silver

MasterCard Cricket

MasterCard Silver

MasterCard Gold

4.3.2: International Card

Visa Silver

Visa Gold

4.4: Key Benefits of Standard Chartered Credit Card

4.4.1. Wide Acceptance

Standard Chartered Credit Card is accepted at over 5000 merchant outlates around the country.
SCB’s wide range of merchants include hotels, restaurants, airline & travel agents, shopping malls
and departmental stores, hospitals and diagnostic centers, jewellery shops, electronics and computer
shops, leather goods & shoe stores, mobile phone & internet service providers, petrol pumps and
many more! This number is increasing everyday to cater to the customers needs.

4.4.2 Easy Repayment Facilities

With the Standard Chartered credit card, cardholders have the flexibility to pay as little as 5% of the
outstanding (or Tk. 500, whichever is higher) on the card account every month, thus having the
power and flexibility to plan the customers’ payments.

4.4.3. Cash Advance Facilities

SCB cardholders can get instant cash advance up to 50% of card limit from any of the SCB ATMs,
thus having access to cash 24 hours a day.

4.4.4. Insta-Buys
InstaBuys is a unique installment plan that allows the customers’ to convert any retail purchase over
Tk. 3000 made by the credit card into an installment scheme. The customer can payback the amount
in equal monthly installments (EMIs) over a tenor ranging from 6 to 36 months at a flat interest rate,
as determined by the bank from time to time.

4.4.5. Rewards Program

As a credit cardholder, the customer will accumulate treasure points for every purchase made by
using the card. SCB’s rewards catalog is packed with a variety of products and gift vouchers at an
unbeatable value and the customer can easily select his or her reward based on the number of treasure
points the have earned. For every Tk. 50 spent on the customer credit card, the customer will earn 1
treasure point and be closer to redeeming the reward of his or her choice.

4.4.6Auto Bills pay

With the credit card the customer no longer have to stand in long queues for paying his or her
monthly bills of electricity, mobile phones, internet service providers (ISP) or cable TV. With auto
bills pay the customer can authorize SCB to pay all these utility bill payment from his or her credit
card while the customer will be relaxing at home.

4.4.7: e – statements:

e-statements is a fast & reliable way for receiving his or her credit card’s monthly statements at his or
her e-mail address, absolutely free. He or she can choose up to 3 e-mail addresses to access his or her
financial information on the net. E-statements give him or her freedom to receive his or her financial
information anywhere in the world & minimize his or her paper work.

4.4.8: SMS Banking:

It is the simplest way of finding out his or her credit card’s current status on his or her citycell or
grameenphone mobile through a SMS. He or she also receives a mini statement of his or her credit
card through SMS, absolutely free.
 4.4.9: Card Cheque:z

It is a cheque book issued from his or her credit card. With card cheque, he or she can enjoy the
convenience of a cheque book, which means he or she can make payment through cheques (A/C
payee only) to any person or establishment. Card cheque is especially useful to him or her where
credit card acceptance facility is not available (e.g. house rent, school fees, etc.).

4.4.10. Safety Net!

He / she can insure every taka he / she spend through his or her credit card through safety net. This
insurance comprehensively covers the entire dues on the credit card in the unfortunate event of death
or permanent total disability of the cardholder. Every SCB credit cardholder is automatically enrolled
in safety net with a 2 months’ free-trial-period. He / she can choose out anytime by simply calling
SCB’s 24-hour call centre.

4.4.11: Free All Accident Death Insurance:

The credit card give the cardholder a free all accidental death insurance coverage upto Tk 100,000
(for silver card) or Tk. 500,000 (for gold cardholder) in case of accidental death. This is also
applicable for supplementary cardholders.

4.5: Limit enhancement

Cardholders can request for limit enhancement in writing. A cardholder must fulfill the following
criteria for the limit to be enhanced:

Card account at least 1 year old.

Credit limit utilization at least 30%+ of approved limit.

Average payment should be fulfilled between 5%-90% in last month.

No limit increase in last year.

Debt burden Ratio of the customer should be <=50%

4.6: Processing of Credit card Application

The above flow chart is discussed in following steps. Those are

Step-1

Application submitted to any SCB branch or Credit Card sales team are forwarded to the Credit Card
Operation (CCO) Unit for capturing data into card Application Processing System (CAPS). This
process usually takes one working day.

Step-2

Applications are then forwarded to Consumer Credit Unit (CCU) for necessary credit
assessment. After credit review, all approved applications Specifying credit limits are sent back to
Card operations. The rejected applications are forwarded to sales teams for review or comments.

Step-3

Approved applications received at CCO are sent for Contact Point Verification (CPV) by
outsourcer’s agencies. The agency verifies Telephone Number, residence and business address of the
applicant and forwarded the report on each applicant to CCO.
Step-4

After receiving all CPV report, CCO forwards the approved applications along with CPV report to
CCU for further review. CCU revisits applications and any application with negative CPV is
declined. Previous set credit limit may be reviewed at this point based on CPV report.

Step-5

After this final review from CCU, approved applications are sent back to CCO for opening card
accounts and producing plastics and PINS. CCO sends a system-generated intimation to the
applicants whose credit card application is declined.

Step-6

CCO arranges to deliver the card and PIN at customers mailing address.

4.7. SCB Credit Card Fees & Frees:

Master Card Silver/ Visa Silver Master Card Gold

Cricket

General

Payment due date from 15 days 15 days 15 days

statement date

Minimum amount due 5% of tk 500, whichever 5% of tk 500, whichever 5% of tk 500, whichever

is higher is higher is higher

Cash advance limit 45 days 45 days 45 days

Fees
 Annual fee (primary Tk 1750 Tk 1750 Tk 3500
card)

Annual fee Tk 500 Tk 500 Tk 1000

(supplementary card)

Annual fee (visa mini N/A Tk 500 N/A

card)

Card / PIN replacement Tk 200 Tk 200 Tk 500

fee

Late payment Tk 300 Tk 300 Tk 500

Over limit fee Tk 300 Tk 300 Tk 500

Access to balake class N/A N/A Free

lounge

Other fees & charges (all cards)

Finance charge on all 2.5% per month (30 days) 2.5% per month (30 days) 2.5% per month (30 days)
transaction types,
calculated from
statement date till
repayment date (
calculated on average
daily balance method)

Cash advance fee 2% of the withdrawal 2% of the withdrawal 2% of the withdrawal

amount (minimum tk 50) amount (minimum tk 50) amount (minimum tk 50)

Duplicate statement fee Tk 100 Tk 100 Tk 100

(last 2 months)

Duplicate statement fee Tk 200 Tk 200 Tk 200

( beyond last 2 months)

Returned cheque fee Tk 500 Tk 500 Tk 500

Outstation cheque Tk 100 Tk 100 Tk 100
processing fee

Voucher retrieval fee Tk 100 Tk 100 Tk 100

(up to a maximum 3
months)

Certificate charge Tk 500 Tk 500 Tk 500

SafetyNet insurance 0. 35% of the statement 0. 35% of the statement 0. 35% of the statement
charge balance as at the balance as at the balance as at the
statement date statement date statement date

Accidental death Free Free Free

insurance

Card cheque book 10 leaves: tk 150or20 10 leaves: tk 150or20 10 leaves: tk 150or20

insurance leaves : tk 250 leaves : tk 250 leaves : tk 250

InstaBuys finance 16. 95 % p.a. (flat rate) 16. 95 % p.a. (flat rate) 16. 95 % p.a. (flat rate)
charge

InstaBuys pre closure 3 % of remaining balance 3 % of remaining balance 3 % of remaining balance

fee of tk 1000 (whichever is of tk 1000 (whichever is of tk 1000 (whichever is
higher) higher) higher)

SMS banking Free Free Free

iBanking Free Free Free

E – statement Free Free Free

Auto bills pay Free Free Free

6.1 Summary of Findings:

The following findings emerge from the analysis:

According to the feedback of the survey analysis, Auto bills- pay, e-statement, Instabuys, Reward
and SMS banking are the major benefits of credit card at Gulshan Branch (Table # 5.1).

Majority of the respondents (i.e., 46.93%) were satisfied with SCBs (Gulshan Branch) services and
benefits from credit card (Table # 5.2).

In case of credit limit of SCB’s credit card, quite a good majority of the customers (i.e., 57.14%)
were dissatisfied while a very poor percentage of customers (i.e., 8.16%) were satisfied (Table #5.6).

The highest percentage of customers (i.e., 28.57%) regarded “Cost” as the most important factor at
the point their acquiring credit cards. “Quality of the product”, “Credit card features”, “Reputation of
Brand”, “Procedure of acquiring credit card” and “After-sales-service” were considered the second,
third, fourth, fifth and sixth important factors before acquiring credit cards (Table # 5.8).

From the survey it has been found that SCB charges higher interest rate and annual fee as compared
to other two banks (such as Prime bank and National bank). Majority of the cardholders were not
satisfied with the annual fee and interest rate of SCB’s credit card (Table # 5.10, Table # 5.11).

SCB cardholders can use their credit cards in ATM machine. Other banks are also using ATM
machine but that’s only for debit card, not for credit card. So, Standard Chartered Bank still holds the
highest market share in credit card services.

High interest rate has been found to be the key factor for the dissatisfaction of most of the customers
(i.e., 40.81%). They think that the time limit for card payment (within 45 days) is very short. After 45
days if they want to make the payment, they have to pay a high interest charge on the amount they
used (Table # 5.12).

30% cardholders reported that they did not face any problem by using SCB credit card. But an
overwhelming majority of the cardholders (i.e., 70%) stated that they faced several times unpleasant
and embarrassing incidents such as excessive billing, ghost billing etc while they used SCB credit
card for making payment (Figure # 5.2).

Despite the market growth of credit card in other financial institutions, it was found that Standard
Chartered Bank is still having the highest market share. 64 percent of the cardholders are using
SCB’s credit card and the rest 36% is covered by other financial institutions (Figure # 5.1).

6.3. Conclusion:
Credit card is an immensely important mechanism of making payment all over the world. Credit card
services have changed the dimension of life style of a section of people worldwide. To meet the
growing need of the customers, Standard Chartered has introduced “Credit Card” facility, and has
been offering banking services including credit card services round the clock. Credit card is not only
a piece of plastic card; it is a safer substitute for cash and is the ideal mode of payment worldwide.
People feel much secured while they carry credit card for the purpose of making payment in distant
places. Standard Chartered Bank is the pioneer in respect of providing credit card services
inBangladesh. SCB captured the market rapidly and its number of cardholders is increasing every
year. But, since other banks (such as Prime, National, Premium bank) coming into this market, SCB
has been facing a keen competition. Earlier it had a near monopoly market. In the current situation,
the competition with other banks in respect of credit card services appears to be a threat to SCB.

After analyzing the customer’s satisfaction regarding Credit card it can be said that Standard
Chartered is holding the highest market share as well as a very good image and position in the market
except for a few issues. In the analysis, it can been seen that the annual fees and late payment fees of
SCB credit card are very high as compared to other banks. SCB is not flexible about the credit limit
compared to other banks and they take long time for processing the card. High interest rate, complex
terms and conditions, limited opportunity to use credit card and unwillingness of shopkeepers in
accepting card payment are the main reasons for customers’ dissatisfaction. So, to sustain and
increase the performance of credit card, SCB should keep watchful eyes on those issues. SCB needs
to put in all out efforts to retain the existing customers. SCB, for the purpose of overcoming the
problems associated with its credit card services, needs to re-engineer its credit card services in terms
of reducing interest rate and annual fee, increasing the number of merchant outlets and ATM
terminals, as well as enhancing multi-dimensional service facilities for the customers.

To conclude: with the passage of time, credit card is gradually making its road into the economic
domain ofBangladesh with increasing potency. The growth of credit card culture inBangladesh is
promising. Arrival of new banks, in the market justifies this.

6.2 Recommendations:
SCB’s credit card division is very much inflexible about the credit limit. In general, it does not
increase the credit limit before one year. Sometimes it takes more than a year for enhancing the credit
limit. But other banks like Prime bank, National bank are more flexible about credit limit. Comparing
SCB with other banks in respect of different charges, it has been found that annual fees of SCB’s
credit card are higher than those of other banks. All the other banks provide more or less same
services and facilities for their card holders. The conjoint cardholders of SCB and other banks are
increasing day by day. So, SCB should reduce its annual fee and other charges to enhance the
satisfaction of customers.

Card division employees should be pleasant behavioral.

The number of satisfaction level should be increase by providing benefits to customers. We have
found ( 46.93%) were satisfied with SCB s (Gulshan Branch) services and benefits from credit card.

They should also increase the credit limit.

We found that 30% of customers did not face any problem while that 70% of customers faced many
problems, we mentioned. So it may be recommended to take steps to reduce that type of problems.

Standard Chartered excelled other competitors by dint of quality of services and reputation. SCB first
introduced the credit card inBangladeshmarket. But no published annual report is available in SCB.
Therefore, for customers’ satisfaction, SCB needs to publish annual report and other detailed
information regarding credit card. Card division is required to adopt and implement accurate
programs that will give error-free calculations.

Bibliography
Al-Emran, and Md.Zakir Hossain Bhuiyan (2003). “Marketing of Credit Cards in Bangladesh:
Augmenting the Customer services”, DU Journal of Marketing, Vol.No.6 (June 2003): 45-55

Brochures on Credit Cards of SCB, National Bank, Prime Bank, Premier Bank and HSBC.

Cooper, Donald R. and Pamela S, Schindler (1998). Business Research Methods, ed. SixthBoston:
MC Graw – Hill.

Faboezi, Frank J., Franco Modigliani, Frank J. Jones and Michael G. Ferri (2002).Foundation of
Financial Market and Institution, ed 3rd.Delhi: Pearson Education Limited

Hadjimichalakis and Hadjimichalakis (1995). Contemporary Money, Banking, And Financial

Markets: Theory and Practice, Chicago: Richard D. Irwin, Inc.

Kotler, Philip. 1994). “Marketing Management Analysis”, ed 8th.New Delhi: Prentice Hall of
India Pvt. Ltd.

Saunders, Mark, Philip Lewis and Adrian Thorm hill (2003). Research Method for Business Students,
ed. 3rd.Delhi: Pearson Education Limited

Shekhar K. C. and Lekshmy Shekhar (1998). Banking Theory And Practise, ed Eighteenth,
Reprint 2002.New Delhi: Vikas Publishing House Pvt Ltd.

Zikmund William G. (2000). Business Research Methods, ed. Sixth.Philadelphia: The Dryden press
Harcourt College Publishers.
Standard Chartered Bank (SCB) – Bangladesh-2007

“Quarterly Credit Customer Satisfaction Survey – SCB Customers”

Dear Customer

I am working on my internship research project titled “Analysis of customers’ perception about

credit card services of SCB” and conducting a study from SCB and interested in your satisfaction
with the credit services offered by SCB. The interview would not take more than 5 minutes of your
time, and your responses will be kept completely confidential. . This study will be used to improve
the quality of service of SCB regarding its credit card, as well as for my academic purposes. I thank
you for your kind cooperation.

Name: Account / Credit Card Number:Date:Branch:

Questionnaire for Credit cardholders

Section: 1: Branch Service

Excellent Poor 10 9 8 7 6 5
4 3 2 1

Q. 1 All the things considered (orderliness, environment, cleanliness etc.), what is your overall rating
of the branch services of SCB (using a scale of 1 to 10 where 10 is excellent and 1 is poor)?

Section: 2: Satisfaction level of credit card services of SCB

Q. 2.1 Services & benefits from SCB regarding credit card (using a scale of 1 to 10
where 10 is excellent and 1 is poor)

Excellent Poor

10 9 8 7 6 5 4 3 2 1

Q.2.2 SCB employees’ undivided attention to credit card related transactions (using a scale of 1 to 10
where 10 is excellent and 1 is poor)

Excellent Poor

10 9 8 7 6 5 4 3 2 1
Q.2.3 Services from SCB during emergency situations (using a scale of 1 to 10
where 10 is excellent and 1 is poor)

Excellent Poor

10 9 8 7 6 5 4 3 2 1

Q.2.4 Using of SCB’s credit card in different booths (using a scale of 1 to 10

where 10 is excellent and 1 is poor)

Excellent Poor

10 9 8 7 6 5 4 3 2 1

Q.2.5 Credit limit on the SCB’s credit card (using a scale of 1 to 10

where 10 is excellent and 1 is poor)

Excellent Poor

10 9 8 7 6 5 4 3 2 1
Q.2.6 Overall services from SCB’s employees (using a scale of 1 to 10
where 10 is excellent and 1 is poor)

Excellent Poor

10 9 8 7 6 5 4 3 2 1

Section 3: Credit card of SCB

Q.3.1 Please identify the factors you consider while you think of acquiring Credit cards and then
rank them in order of importance (Most important = 1, Second most important = 2 and so on).

Reputation of Brand
Quality of the product (credit card)

Procedure of acquiring the product (credit card)

Products’ Features

After-sale service from SCB

Cost of acquiring the product (credit card).

Q.3.2 Do you know that SCB launches different types of facilities/services related to credit card?

Yes

No

Q.3.3 If yes, please state those facilities / services and also specify which one is most effective?

Facilities:

1) _____________________________________________________________________

2) _____________________________________________________________________
3) _____________________________________________________________________

4) _____________________________________________________________________

Most effective one:

_____________________________________________________________________

Q.3.4 Please specify the reasons for dissatisfaction (if any)?

High interest rate

Complex terms and conditions

Limited opportunity to use credit card

Unwillingness of shopkeepers of accepting card payment

Any other (please specify)

__________________________________________________________
Q.3.5 How is the annual fee of SCB credit card?

Very High

High

Moderately High

Low

Q.3.6 How is the interest rate of SCB credit card payment?

Very High

High

Moderately High

Low

Q.3.7 Have you ever had any problem in using credit card?

Yes

No

If yes, please specify the problem(s)

_________________________________________________________________________________
_
 Q.3.8 In your opinion, what SCB can do to improve on the level of customer s satisfaction?

_____________________________________________________________________

_____________________________________________________________________

Q.3.9. Please gives some suggestions regarding the improvement of SCB credit card.