Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank LimitedBy Ziauddin Chowdhury ID: 0921044 An Internship Report Presented in Partial Fulfillment of the Requirements for the Degree of Bachelor of Business Administration Independent University, Bangladesh December 2012 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited By Ziauddin Chowdhury ID: 0921044 Has been approved October, 2012 __________________________ Mr. Abul Bashar Senior Lecturer, Management School of Business Independent University, Bangladesh November 29, 2012 To Mr. Abul Bashar Senior Lecturer, Management School of Business Independent University, Bangladesh. Subject: Submission of Internship Report. Dear Sir, With due respect I am very pleased to enclose herewith the internship report on ―Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited‖. The last three months has been the most fabulous learning experience for me. Without your guidance and help this learning experience would not have been way it has been. I have tried my best to prepare a good report with providing all of my effort and to cover all aspects regarding the matter. I think that this report contains the information that you need to get an idea about my research also. However, because of the confidentially policy of United Commercial Bank Limited it not been possible to put as many data and information as I would have liked to. I, therefore, hope that you would be kind enough to accept my internship report. Sincerely Yours, Ziauddin Chowdhury Id: 0921044 Independent University Bangladesh Acknowledgement All praises are due to Almighty Allah who enabled me to complete this report. This report entitled the Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited. The study has been successfully accomplished along with considerate support and continuous guidance of few people. This is the utmost pleasure of mine to show heartfelt gratitude towards those individuals. First and foremost, I would like to express my gratefulness my respected supervisor Mr. Abul Bashar (Senior Lecturer, Management) School of Business, Independent University, Bangladesh for his support in every area of this research. He is the person of my inspiration to give best effort in this study. He was always there as an advisor, monitor and supervisor. Without his cooperation it would not have been possible to accomplish the research. My thankfulness also goes to Abu Arafat Latif (Senior Officer) of Bashundhara Branch for his continuous and cordial support during my internship. He provided me with invaluable insights about overall Consumer Credit (Retail Banking) system of this bank. I am grateful to all concerned persons who provided valuable guidance, suggestions and advices in collecting information, analyzing and preparing the report. I am particularly indebted to them whose efforts and cordial cooperation made the report possible. Table of Contents Executive Summary--------------------------------------------------------------------------------------- 01 Origin of Bank--------------------------------------------------------------------------------------------- 02 United Commercial Bank Limited – At a Glance ---------------------------------------------------- 03 Goals and Objectives ------------------------------------------------------------------------------------- 04 Mission ----------------------------------------------------------------------------------------------------- 04 Vision ------------------------------------------------------------------------------------------------------- 04 UCBL‘s Organizational Structure ---------------------------------------------------------------------- 05 Branch Information --------------------------------------------------------------------------------------- 06 Service booths at UCB- Bashundhara Branch -------------------------------------------------------- 07 Employees at UCBL - Bashundhara Branch ---------------------------------------------------------- 08 Products/ Services offered by the Bank ---------------------------------------------------------------- 09 Consumer Credit ------------------------------------------------------------------------------------------ 10 Consumer Credit Schemes of United Commercial Bank Limited ---------------------------- 11 - 16 Objective of the Customer Credit Scheme ------------------------------------------------------------- 17 Collection Steps of United Commercial Bank Limited ---------------------------------------------- 17 About The Research -------------------------------------------------------------------------------------- 18 Statement of the Problem -------------------------------------------------------------------------------- 19 Purpose of the Study -------------------------------------------------------------------------------------- 19 Review of Literature -------------------------------------------------------------------------------- 20 - 22 Conceptual Framework ----------------------------------------------------------------------------------- 23 Research Questions and Hypothesis -------------------------------------------------------------------- 24 Methodology ----------------------------------------------------------------------------------------- 25 – 26 41 Reliability Analysis ------------------------------------------------------------------------------.28 Correlation analysis ------------------------------------------------------------------------------.50 .44 Recommendation ----------------------------------------------------------------------------------------.48 .45 Conclusion -----------------------------------------------------------------------------------------------.Data Analysis: Frequencies analysis ----------------------------------------------------------------------------------.46 References -----------------------------------------------------------------------------------------------.43 Significance of the Study -------------------------------------------------------------------------------.42 .27 Crosstabs analysis -------------------------------------------------------------------------------------.29 .47 Appendix --------------------------------------------------------------------------------------------. etc. A detailed picture of customer satisfaction possessed by the bank with its commercial clients has been the core of the research. budget. while writing this report. After my research I can say that service quality and employee behavior of UCB is quite satisfactory. Having more people for brainstorming and research would have given fresh perspective. they can easily be satisfied through empowerment of which would lead to a lasting commitment to create pool of loyal customers and source of positive word-of-mouth. BANGLADESH (IUB) .Page |1 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Executive Summary: Internship report is mandatory in the process to pursue a Bachelor‘s degree from country‘s leading business school at Independent University. human. Staff training may improve the situation. is that if a client has faith in the bank‘s procedures. while the Research portion of the report discusses about an aspect of the business that was never analyzed before. time. iii. Company Background discusses about the business where an intern is appointed to. Expert advice on marketing research on this topic could have provided more dimensions to this research. The research could have been much better if there were more variables and sample size to work on. Efficiency and clarity of discussing information is found to be the weak link. a service blueprint of the branch has been provided. ii. The report contains small background information of the bank and the branch where the internee was placed in. The most important finding. however. The report is divided into two parts – Company Background and Research.e. As an internee I visited three branches in Dhaka city and gathered data from 40 respondents (commercial clients) to conduct analysis on the research topic. As you would proceed further. in terms of interacting with customers. INDEPENDENT UNIVERSITY. Front-end employees tend to be doing their job well. To provide better satisfaction towards customer UCB have to improve their product line much updated and the charges should be under satisfactory level so that customers feel happy to being with UCB. Major findings include: i. A list of people (with respective designation) who were working at the branch. has been provided. with adequate resources i. Internal service is perceived to be doing better compared to efficiency and communication of information. For these people and the government is very much dependent on these banks as the financial intermediary. it has become essential for every person to have some idea on the bank and banking procedure. But when we use the term ―Bank‖ without any prefix. At the same time the banking process is becoming faster. they are coming with different innovative ideas & products. For this reason a student takes the internship program at the last stage of the degree. Investment Banks. Industrial Banks. Savings Banks. The differences between two are the profit for the bank. to launch a career with some practical experiences. So we can say Commercial banks are a profit-making institution that holds the deposits of individuals & business in checking & savings accounts and then uses these funds to make loans. especially for the students of Business Administration. In order to survive in the competitive field of the banking sector. all banking organizations are looking for better service opportunities to provide their fellow clients. it refers to the ‗Commercial banks‘. Central Banks. But there are different types of banks like.Page |2 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Origin of Bank: Originally the word ―BANK‖ we can easily understand the financial institution that deals with money. Commercial banks are the primary contributors to the economy of a country. easier and the banking arena is becoming wider. Internship program is essential for every student. or qualification. which helps them to know the real life situation. Commercial Banks. they collect deposit at the lowest possible cost and provide loans and advances at higher cost. As banks are profit -earning concern. INDEPENDENT UNIVERSITY. As the demand for better service increases day by day. As a result. Banking sector is expanding its hand in different financial events every day. Co-operative Banks etc. BANGLADESH (IUB) . creating employment opportunity. Dhaka-1000. profitability and establishing its image as one of the leading private commercial banks. INDEPENDENT UNIVERSITY. Motijheel commercial area. a group of highly successful local entrepreneurs conceived an idea of floating a commercial bank with a different outlook. Rajuk Avenue. United Commercial Bank Limited was created and commencement of business started on 17th April 1980. As a fully licensed commercial bank. In its 22nd year of operation in 2012. accelerating the pace of industrialization. alleviating poverty. The bank is listed with DSE & CSE as a public quoted company. UCBL was actually registered under the Companies Act of 1913 with its registered office at 5. Accordingly. The bank has already occupied an enviable position among its competitors after achieving success in all areas of business operations. The bank has been graded as a top class bank in the country through internationally accepted CAMEL Rating. United Commercial Bank Limited has being managed by highly professional and dedicated team with long experience in banking. Motijheel commercial area. United Commercial Bank has made significant progress within a very short period of its existence. Dhaka-1000. 1980 through the opening of its Motijheel Branch at Adamjee Court Annex Building. it has been working for stimulating trade and commerce. Motijheel commercial area. BANGLADESH (IUB) . 119-120. United Commercial Bank Ltd. raising standard of living of the people etc and thereby contributing to the sustainable development of the country. As such. For them it was competence. Dhaka-1000 which was later shifted to Adamjee Court Annex Building. it has committed to provide high quality financial services to the people of this country to accelerate economic development of the nation. They constantly focus on understanding and anticipating customer needs. excellence and consistent delivery of reliable service with superior value products. United Commercial Bank has made substantial headway in terms of business growth. the Central Bank of the country on April 17. Since inception. is operating as a scheduled bank under the banking license issued by Bangladesh Bank. Its march towards reaching greater heights in operation continues with full vigor and enthusiasm. boosting export.Page |3 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited United Commercial Bank Limited – At a Glance: In the backdrop of economic liberalization and financial sector reforms. Expand scientific MIS to monitor bank‘s activities. policies and procedures in each of the objective and goal areas.Page |4 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Goals and Objectives: To utilize all available resources properly to develop various plan. Utilize team of professional employees. Synchronized and steady growth of the bank. Develop a realistic deposit mobilization plan Build up appropriate lending risk assessment system Improve capital plan Develop a structure to make sound loan and advances Develop systematic procedures and approaches by improving management efficiency. Develop a plan for offering better customer service. Vision: To be the bank of the 1st choice through maximizing value of clients shareholder & employees and contributing to the national economy with social commitments. Search for a total customized solution for by establishing full automation step. Ensure a sound rate of recovery of all loans & advances and other credit facilities Build up a low cost fund base Meet capital adequacy recruitment at all the time. Mission: To assist high quality service to customer and to participate in the growth and expansion of our national economy and to satisfy clients. BANGLADESH (IUB) . INDEPENDENT UNIVERSITY. shareholders and employees. BANGLADESH (IUB) . Vice President Senior Executive Officer Executive Officer Principle Officer Senior Officer Management Trainee Officer Junior Officer Junior Level Mid Level Management INDEPENDENT UNIVERSITY.Page |5 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited UCBL’s Organizational Structure: Chairman Board of Directors Executive Committee Top Management Managing Director Deputy Managing Directors Executive Level Management Senior Executive Vice Executive Vice President Senior Vice President Assistant Vice President First Assistant. of Branches 2007 84 2008 84 2009 84 2010 98 2011 112 2012 125 INDEPENDENT UNIVERSITY. BANGLADESH (IUB) .Page |6 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Branch Information: UCBL has 125 Branches in Bangladesh Total Branch: 02 Total Branch 07 Total Branch: 14 Total Branch: 56 Total Branch: 38 Total Branch: 07 Total Branch: 01 Year No. there are three service counters at this branch – Cash. 4. Whoever comes first is served first. This is located at the 2nd floor of the branch. The first queue system that one can see while entering the bank premises. The other queue system is opposite to clearance and transfer booth. INDEPENDENT UNIVERSITY. is located in front of Cash Booth. A multiple server multiple queuing can be seen at this spot. The third service point deals with debit/credit cards. The principle is basically the same as multiple-server-multiple-queuing. 5. where all information or queries regarding it can be collected from this desk. 6.Page |7 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Service booths at UCB.Bashundhara Branch: Primarily. At this booth. The purpose of cash booth is to deposit or withdraw funds from bank accounts. one can do these following tasks and more: 1. 3. however the services offered are quite different from cash booth and the queue time is usually lot less in comparison. BANGLADESH (IUB) . Four employees are stationed to work as servers to the customers. Clearance & Transfer and Card. 2. Open a bank account Get bank statements Learn about the deposit schemes offered by the bank Present cheques that are from other banks to debit their account Collect pay-order scripts. Acquire necessary documents from Western Union Money Transfer (to be presented to Cash booth). K.M. Kaniz Fatema Mr. Ariful Haque INDEPENDENT UNIVERSITY. MD. MD. B. Hafizur Rahman Mr. S. S. Golam Idrees Mr. Saifullah Mr. BANGLADESH (IUB) .M.Bashundhara Branch: Designation Vice-President & Head of Branch First Assistant Vice-President & Operation Manager Senior Executive Officer Senior Officer Name Mr. Abu Arafat Latif Officer Officer – Cash Junior Officer Mr. Borhan Uddin Mr. Morshedul Alam Mr. Rafiqul Karim Mr. Md Akhter Hossain Mr.Page |8 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Employees at UCBL . Shahjahan Chowdhury Mrs. Ali Rawshan Ibne Alam Mrs. Sirajul Kabir Workstation Manager‘s Cabin (2nd Floor) FAVP‘s Cubicle (1st Floor) SEO‘s Desk (2nd Floor) Senior Officer Desk (2nd Floor) Officer‘s Desk (2nd Floor) Cash Booth (1st Floor) Clearance & Transfer Booth (1st Floor) Clearance & Transfer Booth (1st Floor) Clearance & Transfer Booth (1st Floor) Cash Booth (1st Floor) Cash Booth (1st Floor) Cash Booth (1st Floor) Card Officers‘ Desk (2nd Floor) Card Officers‘ Desk (2nd Floor) Mr. Rezwana Khanam Junior Officer Junior Officer – Probation Assistant Cash Officer Assistant Cash Officer Assistant Cash Officer – Probation Credit Card Service Officer Debit Card Service Mr. BANGLADESH (IUB) . INDEPENDENT UNIVERSITY. commercial (includes SME and Corporate) banking. and miscellaneous services.Page |9 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Products/ Services offered by the Bank: UCB Multi Milionaire UCB Money Maximizer UCB Earning Plus UCB DPS Plan Western Union Money Transfer SMS Banking Service Online Service Credit Card One Stop Service Time Deposit Scheme Monthly Savings Scheme Deposit Insurance Scheme Inward & Outward Remittances Travelers Cheques Import Financing Export Financing Working Capital Finance Loan Syndication Underwriting and Bridge Financing Trade Finance Industrial Finance Foreign Currency Deposit NFCD (Non Resident Foreign Currency Deposit Account) All These services can be broken down to Consumer Credit (Retail) Banking. The Bank‘s overriding goal is not only to increase total shareholder return but also to contribute to the socio economy by improving the life style of the limited income segment of the country and that can be achieved optimizing profits. INDEPENDENT UNIVERSITY. This reflects the potential of consumer credit scheme to produce high levels of economic profit and perceived demographic trends toward an expanded middle class and higher income levels. However. but incorporates the concept of lending against acceptable risks. which is then read and used. conservatism does not mean simply minimizing bad debts. rather than just minimizing losses.P a g e | 10 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Consumer Credit: It is one of the core businesses for United Commercial Bank Limited and has been targeted for significant further growth. BANGLADESH (IUB) . Asset quality is generally expected to be higher in personal lending than corporate lending due to variety of factors including: Diversification of risk Security Cultural values The increasing need for individuals to have access to bank credit for the conduct of normal daily activities. United Commercial Bank is a conservative lender in consumer credit as part of its corporate philosophy. profit optimization will follow from: Good-planning and control of approval process Well-designed products with appropriately focused marketing The use of statistical techniques and decision support system that permit risks to be managed predictably Gathering high quality management information. To convert into CNG For treatment in hospital INDEPENDENT UNIVERSITY. Truck. Personal Computer. Furniture and any other household items. Jeep. Car. Fax machine. Television. Small PABX system. BANGLADESH (IUB) . Cover Van. Household Durable Loan Car loan For purchasing household durables. Station Jeep. Audio-video equipment. Other home electric appliances. Pick up Van.P a g e | 11 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Consumer Credit Schemes of United Commercial Bank Limited: The United Commercial Bank with their financing items under CCS loan is given below: Household Durable Loan: Motor Cycle. Doctors’ Loan Loan against salary Any purpose loan Education loan Travel Loan Marriage loan CNG Conversion Loan Hospitalization Loan For the Doctors only. For wedding only. Bus. Photocopier. Any qualified person For emergency need For Study purpose only For traveling purpose. Ambulance and any other vehicle for own use. Mobile Phone set. Refrigerator. In specific terms the target customers should cover salaried executives of multinational companies. Doctors’ Loan Customer Segment Any Bangladeshi citizen who is a graduate in Medical Science/Dentist/Eye/Allopathic as self-employed or salaried people has the means and capability to repay the loan. BANGLADESH (IUB) . International aid agencies and any tax paying businessmen of repute and self-employed tax-paying individual having a reliable source of income. middle to large size local corporate. machineries. Officials working in Semi-government.P a g e | 12 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Car loan: Customer Segment Any Bangladeshi individual who has the means and capacity to repay the loan. Household Durable Loan Customer Segment Any Bangladeshi individual who has the means and capacity to repay the loan. items to support professional tools or other relevant needs (e.g. Autonomous and reputed Non-Government INDEPENDENT UNIVERSITY. In specific terms the target customers should cover salaried executives of multinational companies. Purpose Purchase of non-commercial new and reconditioned vehicles for personal use only by individual. run or set up a clinic/hospital/dispensary). Government officials. middle to large size local corporate. Officials working in Semi-government. Autonomous and reputed Non-Government Organization. Government officials. Purpose Small scale purchase of different medical equipments. P a g e | 13 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Organization. Washing Machine. Any purpose loan Customer Segment Employees of reputed multinational companies and large local corporate Employees of medium sized or mid-range local corporate such as reputed schools and colleges. Non-Government Organization. other household furniture etc. Purpose Purchase of household durables like Television. insurance and leasing companies. Air conditioner. Purpose To meet the financial need for marriage purpose. Computers. for personal use only. Refrigerator. reputed trading firms and all other salaried persons. insurance and leasing companies. Marriage loan Customer Segment Employees of reputed multinational companies and large local corporate Employees of medium sized or mid-range local corporate such as reputed schools and colleges. Non-Government Organization. Purpose may be as follows: INDEPENDENT UNIVERSITY. Government officials. BANGLADESH (IUB) . Any tax paying businessmen of repute and self-employed tax-paying individual having a reliable source of income. International aid agencies and any tax paying businessmen of repute and self-employed tax-paying individual having a reliable source of income. reputed trading firms and all other salaried persons Purpose The customer has to declare the purpose of the loan but submission of supporting document is not mandatory. Hospitalization Loan: Customer Segment Employees of reputed multinational companies and large local corporate Employees of medium sized or mid-range local corporate such as reputed schools and colleges. Purpose For educational purposes like study in abroad or within the country. insurance and leasing companies. insurance and leasing companies. Any tax paying businessmen of repute and self-employed tax-paying individual having a reliable source of income. INDEPENDENT UNIVERSITY. reputed trading firms and all other salaried persons Any tax paying businessmen of repute and self-employed tax-paying individual having a reliable source of income. Government officials. reputed trading firms and all other salaried persons. Non-Government Organization. BANGLADESH (IUB) . Non-Government Organization.P a g e | 14 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited House renovation Marriage in a family Advance retail payment Hospitalization or other emergency medical needs Trips abroad Purchase of Miscellaneous household appliances Purchase of personal computer Purchase of electronic items Purchase of furniture Education loan: Customer Segment Employees of reputed multinational companies and large local corporate Employees of medium sized or mid-range local corporate such as reputed schools and colleges. Dhaka Apollo Hospital Health Care. insurance and leasing companies. Chittagong etc Loan against salary Customer Segment Employees of reputed multinational companies and large local corporate Employees of medium sized or mid-range local corporate such as reputed schools and colleges. Government officials. Chittagong Health Home.P a g e | 15 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Purpose To meet the financial need for treatment purposes in the following hospitals/clinics of Dhaka and Chittagong: BIRDEM Holy family Hospital Central Hospital Monwara Hospital Samrita Hospital Medinova Bangladesh Medical Metropolitan Hospital Sikder Medical Islami Bank Hospital Dhaka Renal Centre Ibne Sina Hospital Lab Aid Cardiac Hospital National Heart Foundation CMH. Chittagong CMH. BANGLADESH (IUB) . Chittagong Poly Clinic. Non-Government Organization. reputed trading firms and all other salaried persons INDEPENDENT UNIVERSITY. P a g e | 16 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Purpose To meet the financial need for any acceptable purpose. Any tax paying businessmen of repute and self-employed tax-paying individual having a reliable source of income. INDEPENDENT UNIVERSITY. BANGLADESH (IUB) . Government officials. insurance and leasing companies. reputed trading firms and all other salaried persons. Non-Government Organization. In specific terms the target customers should cover salaried executives of multinational companies. International aid agencies and any tax paying businessmen of repute and self-employed tax-paying individual having a reliable source of income Purpose For converting vehicles from carbon based fuel to Compressed Natural Gas system. middle to large size local corporate. CNG Conversion Loan Customer Segment Any Bangladeshi individual who has the means and capacity to repay the loan. Travel Loan Customer Segment Employees of reputed multinational companies and large local corporate Employees of medium sized or mid-range local corporate such as reputed schools and colleges. Officials working in Semi-government. Purpose To meet the financial need for travel purpose. Autonomous and reputed Non-Government Organization. To ensure the credit facility to the both middle class Limited income group and upper class income group. To participate in the socio-economic development of the country. Employer Reference all above effort follows Warning of legal action by next 15 days Call up of loan Final Reminder and serve legal notice Legal proceeding begins Repossession starts Telephone calls Legal proceeding continues Collection effort continues by officer & agents Letter to different Banks and Associations 45-59 days 60-89 days 90 and above days INDEPENDENT UNIVERSITY. Follow up and Persuasion over phone 1st Remainder Letter and first step follows 2nd Reminder letter single visit of credit officer 3rd Reminder letter Group visit by team members Follow up over phone Letter to Guarantor. BANGLADESH (IUB) . Collection Steps of United Commercial Bank Limited: Days Past Due Collection Action 1-14 days 15-29 days 30-44 days Letter. To improve the living standard of limited income group through financing in purchasing necessary goods.P a g e | 17 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Objective of the Customer Credit Scheme: United Commercial Bank Limited started the Consumer Credit Scheme program with a view to fulfill its benevolent institutional objectives through financing the middle class limited income group. Lion share revenues of banks comes by meeting the financial requirements of the SMEs and corporates. Simultaneously. outcomes from processing fieldwork data will lead to the most imperative aspects the bank needs to focus on for improvement to cater their customers better. as it is inexpensive and profitable for the business than attracting new ones and establishing relationship. Credit Department plays a very important role in bank as they evaluate the risk and take decision about giving loan to the customers. is among the first banks that took relationship banking seriously through ―Happy Banking‖ campaign. BANGLADESH (IUB) .P a g e | 18 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited About The Research: Consumer Credit (Retail Banking) is one of the vital functions for any bank. While demand for. In this scenario a stronger bank has an edge. financing services by banks to commercial institutions are difficult to measure. and supply of funds in the money market intersect at a point that makes most of the financial service-availing institutions indifferent for selection of bank. dated back in 2007. INDEPENDENT UNIVERSITY. The Credit Department (Retail Banking) policy of UCB is prepared in line with the guidelines of Bangladesh Bank to handling it in a disciplined way. Gwinner and Gremler (2002) has been the backbone of my research. An award winning service research journal on relationship benefits and quality for serviceoriented business authored by Hennig-Thurau. The journal encompasses a multivariate study that probes several aspects of relationship between service provider and customers with thorough analysis on this field of study. With assumption that the structural equation model devised by the author to be exhaustive. In this report I have tried to study the literatures instruments about customer satisfaction process and also the credit operation of United Commercial Bank Limited. United Commercial Bank Ltd. Credence product by nature. The bank offers innumerable flexible options and benefits to their clients along with emphasizing professional bonds between bank employees and clientele. banks in recent times have taken fostering of relationship with present clients with great care. Purpose of the Study: The purpose of the internship program is to familiarize students with real market situation and compare it with bookish concept. charges and employee behavior about in the context of customer satisfaction. INDEPENDENT UNIVERSITY. This report will mainly focus on managing credit risk by providing proper satisfaction towards the customers as well as achieving organizations profit. Major purpose of the study are To examine customer satisfaction towards UCB credit schemes. The main purpose of the study is to have an assessment about Consumers Credit Schemes of United Commercial Bank Limited and customer satisfaction gaining from those credit schemes. Establishing favorable employee attitude to provide better satisfaction towards customers. Updated products. Developing new products and ideas to create brand awareness as well as for proper customer satisfaction. BANGLADESH (IUB) . To find out the real picture of UCB in terms of deposits and other financial products.P a g e | 19 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Statement of the Problem: Credit risk and customer dissatisfaction corresponds to potential financial loss as a result of customer‘s inability to honor the terms and conditions of credit facility. Find out the relationship between service quality. However. The study of McCleary and Weaver (1982) indicated that good service is defined on the basis of identification of measurement behaviours that are important to customers. 2004). banks can earn high profits if they are able to position themselves better than their competitors within a specific market (Davies et al. Hostage (1975) believes that a service firm‘s contact personnel comprise the major determinants of service quality. 1995). BANGLADESH (IUB) . 1982). (1997) argued that a ―direct and strong‖ relationship exists among service quality. Service Quality: Research has indicated that service quality has been increasingly recognized as a critical factor in the success of any business (Parasuraman et al. The finding of the study reinforces that customer satisfaction is linked with performance of the banks. Therefore. many scholars agree that service quality can be decomposed into two major dimensions (Gronroos. while Lewis and Booms (1983) propose INDEPENDENT UNIVERSITY. (1985) as ―outcome quality‖ and the second by Gronroos (1984) as ―technical quality‖. It can be noted that customers can perceive differences in the quality of service (Chaoprasert and Elsey. 1984. Levitt (1981) proposes that customers use appearances to make judgements about realities. banks all over the world offer similar kinds of services.. Moreover. Berry (1980) along with Booms and Bitner (1981) argue that. customers evaluate banks‘ performance mainly on the basis of their personal contact and interaction (Gronroos. The first is referred to by Zeithaml et al. Moreover. Service quality has been widely used to evaluate the performance of banking services (Cowling and Newman. the second dimension is concerned with how the service is delivered: the process that the customer went through to get to the outcome of the service.. customer use elements associated with the physical environment when evaluating service quality. the first dimension is concerned with what the service delivers and on the other hand. banks need focus on service quality as a core competitive strategy (Chaoprasert and Elsey. Moreover. due to intangible nature of services. 2004).Vimi and Mohd (2008) undertook a study of the determinants of performance in the Indian retail banking industry based on perception of customer satisfaction. 1990). and try to quickly match their competitors‘ innovations. 1999) and on the other hand. Lehtinen and Lehtinen. The study of Newman and Cowling (1996) reports that two British banks used the SERVQUAL model and this model improved quality of service. The banks understand that customers will be loyal if they receive greater value than from competitors (Dawes and Swailes. Zeithaml (2000) also found evidence about the influences of service quality on profits and Heskett et al. 1995).P a g e | 20 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Review of Literature: In this research I have go through some variables which must be needed to create best customer satisfaction in United Commercial Bank Limited. Moreover. customer satisfaction and profitability. 1988) and the banking sector in this case is not exceptional. as well as both banks enjoying substantial increases in profit. telephone banking. 1998). Burr (1996) describes it as an electronic connection between the bank and the customer in order to prepare. banks have taken the attitude that they will provide customers with the services and products that they. and PC banking. overdrafts. the portion of depository institutions income derived from noninterest sources—including fees on savings and checking accounts—varied but increased overall from 24 percent to 27 percent. Historically. and stop payment orders have risen by 10 percent or more since 2000. Lustsik (2004) describes electronic banking as a variety of the following platforms: Internet banking. TV-based banking. customer satisfaction. Banks customers‘ taste and desire have begun to raise the stakes of expectation of exceptional services. Employee Behavior: Employees are key stakeholders in value delivery and brand/supplier success. During this period. to capture and retain the most profitable customers and secondly to redirect unprofitable customers into service channels which can limit the costs and maximise potential revenues (Mols. wish to provide.P a g e | 21 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited that service quality resides in the ability of the service firm to satisfy its customer needs i. They want to pay their regular household bills. and they frequently represent the difference between positive experiences or negative experiences and whether customers stay or go. Electronic banking according to Al-Abed (2003) is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. Changes in both consumer behavior. It has been found that employee commitment and advocacy INDEPENDENT UNIVERSITY.e. manage and control financial transactions. returns of deposited items. buy and sell stocks and shares (Carse. but their exact effects are unknown. Firstly. 1999). and practices of depository institutions are likely influencing trends in fees. while others. have declined. the banks. such as making more payments electronically. Charges: Data from private vendors indicate that average fees for insufficient funds. BANGLADESH (IUB) . such as monthly account maintenance fees. 2003). banks need to change their process of servicing their customers. mobile phone banking. Updated products refer to the use of information and communication technology by banks to provide services and manage customer relationship more quickly and most satisfactorily (Charity-Commission. Customers want to transact their banking transactions at any time and location convenient for their life-style. change in the banking industry was driven by the twin forces of deregulation and technological change. Updated Products: From the beginning of the 1990s until the middle of July 2007. In order to survive both from domestic and the increasing level of global cross-border competition. the Drory and Romm study found that employees‟ perception of employee behavior are dependent upon circumstances and that as circumstances or elements of a situation vary so do perceptions regarding the politics. thus creating commitment-inducing emotional bonds.. and Keiningham 1996. Drory and Romm (1988) In fact. boss. Bloemer and Kasper 1994. satisfaction has been identified as a key driver in the generation of (positive) customer word-of-mouth behavior (e. INDEPENDENT UNIVERSITY. Stauss and Neuhaus 1997). Anderson and Fornell 1994. Oliver 1999. and internal service quality. Oliva. BANGLADESH (IUB) . Yi 1990). Similarly. and the repeated fulfillment of these social needs is likely to lead to bonds of an emotional kind that also constitute commitment (Hennig-Thurau and Klee 1997). more recent studies suggest the impact of satisfaction on customer loyalty is rather complex (e. The relevance of satisfaction in gaining loyal customers and generating positive word-ofmouth is largely undisputed (e.. Although satisfaction is modeled as the only immediate antecedent of loyalty.g. Oliver. Rust. Oliver 1996). and MacMillan 1992. Zahorik. other key drivers of loyalty include service quality. we postulate satisfaction to positively influence commitment. and intent to turnover of the workers (Ferris & Kacmar. satisfaction. However. satisfaction is related to the fulfillment of customers‘ social needs.g. Anderson and Sullivan 1993. Dwight. and also to corporate sales and profitability. employee loyalty. Reichheld 1993..R.. Yi 1990). Drawing on Hennig-Thurau and Klee (1997).P a g e | 22 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited behavior have a direct and profound relationship to the loyalty of customers. Work environment influences the way how employees feel about their company. Customer Satisfaction: According to the disconfirmation paradigm. In addition. In their service profit chain model. File.g. studies have found satisfaction to be a (and often the) leading factor in determining loyalty (e. Rust and Zahorik 1993). Relationship quality is generally considered to be composed of satisfaction and commitment. and they impact the productivity. Gerald. Several (but not all) of the relationships hypothesized in the service profit chain model have been confirmed empirically by Loveman (1998).Frink (1996) studied Politics as a potential source of stress in the work environment.g. Oliver 1980. 1992). and Prince 1994. and coworkers. (1994) proposed customer loyalty to be the result of a complex causal chain. A high level of satisfaction provides the customer with a repeated positive reinforcement.. employee satisfaction. Several studies provide evidence for the significant influence of satisfaction on loyalty and word-of-mouth communication.D.g. Heskett et al.Ferris. customer satisfaction is understood as the customer‘s emotional or feeling reaction to the perceived difference between performance appraisal and expectations (e. Indeed. Cermak. P a g e | 23 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Conceptual Framework: The framework for the projected study is presented below: Service Quality Updated Products Customer Satisfaction Charges Dependent Variable Employee Behavior Independent Variables Figure 1: Framework of Research Variable and their Relationships INDEPENDENT UNIVERSITY. BANGLADESH (IUB) . H4: Employee Behavior effect customer satisfaction in the context of UCB. INDEPENDENT UNIVERSITY. H2: Updated products effect customer satisfaction in the context of UCB.P a g e | 24 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Research Questions and Hypothesis: RESEARCH QUESTIONS Q1: Does service quality effect customer satisfaction in the context of UCB? Q2: Does updated products effect customer satisfaction in the context of UCB? Q3: Does charges effect customer satisfaction in the context of UCB? Q4: Does employee behavior effect customer satisfaction in the context of UCB? HYPOTHESIS H1: Service quality effect customer satisfaction in the context of UCB. H3: Charges effect customer satisfaction in the context of UCB. BANGLADESH (IUB) . charges. perception of participants. attitudes. With the above findings in the literature. Our research is a Quantitative Research.The study will be conducted only in some branches of Dhaka city due to time and budget constraints. I picked both male and female from different ages and professional back ground and the sample size was N=40. Sampling: Sample unit: In this study as a researcher I found some factor really that whether effects on customer satisfaction or not. Our sampling technique will be simple random sampling under the probability sampling method so that we can select randomly from our existing customers. More specifically it is an ex post facto study because this study involves after the fact report on what happened to the measured variables. The purpose of the study was to measure correlations among variables. Sample Size: Sample size relates to how many people to pick for the study. For this kind of study researcher need to do select a sample size. BANGLADESH (IUB) . INDEPENDENT UNIVERSITY. Here i selected participants randomly from UCB and give them the questionnaire so that we can know about all those characteristics. To get proper satisfaction idea from customers i targeted the population who has an experience dealing with UCB.P a g e | 25 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Methodology: Research design: The projected framework (Figure: 1) represented the outline and arrangement of relationships among the set of considered variables. employee behavior and customer satisfaction with organizational performance. That‘s why it is a causal studies. Sample Procedure: Their as a researcher i used probability sampling to collect information. this study aims to inspect the possible relationships among service quality. updated products. We have used purposive probability sampling to know the characteristics or experiences. Cooper and Schindler (2003) stated that in this type of probability sampling method each population element is known and has an equal chance of selection. In a structured questionnaire. each taking Twenty Five (25) questionnaires to be filled out by respondents from the devised sample. In the context of UCB. Five-point of Liker type scales were used in all measures.P a g e | 26 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Instruments: Questionnaires will permit us to gather information that cannot be found elsewhere from any secondary information such as books. newspapers and internet resources. quantitative data is required. There are Five (5) response choices. Types of Data and Sources: There are two types of data collection Primary Data & Secondary Data. This are- 1 = Strongly Disagree 2= Disagree 3= Neither Disagree nor Agree 4= Agree 5= Strongly Agree Data Collection. We used a structured questionnaire. While filling out the questionnaires the researchers assisted the respondents to get a better idea of their actual behaviors to minimize the margin of error.Secondary Data are those which have already been collected and analyzed by someone else. As a researcher I use questionnaire method to collect data from the primary sources. According to interval scale the response choices will be arranged. Because this research work is exclusively carry out for Bank. Because of this reason. We will confirm our respondents that all the data collected from them will be kept confidential and exclusively used for academic purposes and their individual identity would be kept undisclosed individuals. In this study mostly primary data will be used to draw a recommendation. BANGLADESH (IUB) . Primary Data are those collected for the first time . So the questionnaire survey is the most successful method for this study to collect the data. as researchers I used primary data to examine the research problem and verify hypothesis. INDEPENDENT UNIVERSITY. the researcher will use questionnaire. 80% of male and 20% of female customers participates in this survey which is shown at below. There are four income ranges. BANGLADESH (IUB) . 12 customers age was between 26-35 years. INDEPENDENT UNIVERSITY.P a g e | 27 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Data Analysis: Frequencies analysis: The sample consists of 32 male and 08 female customers.5% respondent was in the range of 31000-40000 and 22. 35% respondent was in the range of 21000-30000 taka. 27. 15 customers age was between 36-45 years and 5 customers age was between 46 and above which is shown below. Among the responding 08 customers age was between 15-25 years. 15% respondents were in 15000-20000 taka range.5% respondent was in the range of more than 41000 taka. Table shows that between 15000-20000 income ranges there are 4 male and 2 female. Again between 21000-30000 income ranges there are 11 male and 3 female. And in the income of above 41000 ranges there are 8 male and 1 female. In 31000-40000 income ranges there are 9male and 2 female. age and income. INDEPENDENT UNIVERSITY.P a g e | 28 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Crosstabs Analysis We survey 40 respondents with different gender. BANGLADESH (IUB) . The resonance rate is 100%. 4 0. high. marked Very strong.0 to 0.2 to 0.01) and significant (p<.05).7 to 0. low Moderate Strong.9 0. BANGLADESH (IUB) . According to Nadim Jahangir the classification of correlation coefficient is as follows: 0.4 to 0.P a g e | 29 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Correlation analysis Correlation analysis was conducted on all variables to explore the relationship between variables.0 Very weak. very high INDEPENDENT UNIVERSITY. negligible Weak.9 to 1.7 0.2 0. The bivariate correlation procedure was subject to a two tailed of statistical significance at two different levels highly significant (p<. P a g e | 30 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Relationship between Service quality and customer satisfaction: According to Spearman correlation coefficient between service quality and customer satisfaction is 0. √ = 5.021 to +2. Now we have to test r for other calculations or comparisons. INDEPENDENT UNIVERSITY.638 shows positive relationship between two variables.1074 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2. BANGLADESH (IUB) . So according to Spearman Correlation test there is a relationship between service quality and customer satisfaction. We know. which means that service quality effect customer satisfaction in context of UCB.021) and accept alternative hypothesis. √ = 5.021 to +2.021) and accept alternative hypothesis.P a g e | 31 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Pearson correlation coefficient between service quality and customer satisfaction is 0. So according to Pearson Correlation test there is a relationship between service quality and customer satisfaction.656 shows positive relationship between two variables. BANGLADESH (IUB) . which means that service quality effect customer satisfaction in context of UCB. Now we have to test r for other calculations or comparisons.3741 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2. We know. INDEPENDENT UNIVERSITY. We know. Now we have to test r for other calculations or comparisons. √ = 3. which means that service quality effect customer satisfaction in context of UCB.021 to +2.5971 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2. BANGLADESH (IUB) . So according to Kendall's tau_b Correlation test there is a relationship between service quality and customer satisfaction.021) and accept alternative hypothesis.504 shows positive relationship between two variables.P a g e | 32 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Kendall's tau_b correlation coefficient between service quality and customer satisfaction is 0. INDEPENDENT UNIVERSITY. So according to Spearman Correlation test there is a relationship between updated products and customer satisfaction.021 to +2.P a g e | 33 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Relationship between Updated products and customer satisfaction: According to Spearman correlation coefficient between updated products and customer satisfaction is 0. which means that updated products effect customer satisfaction in context of UCB. INDEPENDENT UNIVERSITY. We know.616 shows positive relationship between two variables. BANGLADESH (IUB) .8204 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2. Now we have to test r for other calculations or comparisons. √ = 4.021) and accept alternative hypothesis. 021) and accept alternative hypothesis.4695 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2. BANGLADESH (IUB) . Now we have to test r for other calculations or comparisons. which means that updated products effect customer satisfaction in context of UCB. √ = 4. So according to Pearson Correlation test there is a relationship between updated products and customer satisfaction.587 shows positive relationship between two variables. We know.P a g e | 34 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Pearson correlation coefficient between updated products and customer satisfaction is 0.021 to +2. INDEPENDENT UNIVERSITY. which means that updated products effect customer satisfaction in context of UCB. INDEPENDENT UNIVERSITY.021) and accept alternative hypothesis. So according to Kendall's tau_b Correlation test there is a relationship between updated products and customer satisfaction. Now we have to test r for other calculations or comparisons. We know.021 to +2.487 shows positive relationship between two variables.P a g e | 35 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Kendall's tau_b correlation coefficient between updated products and customer satisfaction is 0. BANGLADESH (IUB) . √ = 3.4372 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2. BANGLADESH (IUB) .021) and reject alternative hypothesis.208 shows negative relationship between two variables. We know. Now we have to test r for other calculations or comparisons. √ = -1. which means that charges is not effect customer satisfaction in context of UCB which reflect that customers are not satisfied by charges in UCB. So according to Spearman Correlation test there is no relationship between charges and customer satisfaction.021 to +2.P a g e | 36 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Relationship between charges and customer satisfaction: According to Spearman correlation coefficient between updated products and customer satisfaction is -0. INDEPENDENT UNIVERSITY.3108 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we can accept the null hypothesis as T value falls in (-2. which means that charges is not effect customer satisfaction in context of UCB which reflect that customers are not satisfied by charges in UCB. We know.021 to +2.1109 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we can accept the null hypothesis as T value falls in (-2.021) and reject alternative hypothesis. So according to Pearson Correlation test there is no relationship between charges and customer satisfaction. INDEPENDENT UNIVERSITY.P a g e | 37 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Pearson correlation coefficient between charges and customer satisfaction is 0. √ = -0.018 shows negative relationship between two variables. BANGLADESH (IUB) . Now we have to test r for other calculations or comparisons. 021 to +2. INDEPENDENT UNIVERSITY.021) and reject alternative hypothesis. which means that charges is not effect customer satisfaction in context of UCB which reflect that customers are not satisfied by charges in UCB. √ = -0. BANGLADESH (IUB) . We know.9671 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we can accept the null hypothesis as T value falls in (-2. So according to Kendall's tau_b Correlation test there is no relationship between charges and customer satisfaction.155 shows positive relationship between two variables. Now we have to test r for other calculations or comparisons.P a g e | 38 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Kendall's tau_b correlation coefficient between charges and customer satisfaction is -0. So according to Spearman Correlation test there is a relationship between employee behavior and customer satisfaction.3182 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2.021) and accept alternative hypothesis. which means that updated products effect customer satisfaction in context of UCB. Now we have to test r for other calculations or comparisons. √ = 2. We know. BANGLADESH (IUB) .P a g e | 39 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Relationship between employee behavior and customer satisfaction: According to Spearman correlation coefficient between employee behavior and customer satisfaction is 0.352 shows positive relationship between two variables. INDEPENDENT UNIVERSITY.021 to +2. 0490 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we cannot accept the null hypothesis as T value don‘t falls in (2. INDEPENDENT UNIVERSITY.P a g e | 40 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Pearson correlation coefficient between employee behavior and customer satisfaction is 0. which means that updated products effect customer satisfaction in context of UCB. BANGLADESH (IUB) . Now we have to test r for other calculations or comparisons. √ = 4.549 shows positive relationship between two variables.021 to +2. So according to Pearson Correlation test there is a relationship between employee behavior and customer satisfaction. We know.021) and accept alternative hypothesis. 021) and reject alternative hypothesis. 6941 Hypothesis testing: Ho: null hypothesis = no relationship Ha: alternative hypothesis = relationship At 5% level of significance we can accept the null hypothesis as T value falls in (-2.265 shows positive relationship between two variables. BANGLADESH (IUB) .P a g e | 41 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited According to Kendall's tau_b correlation coefficient between employee behavior and customer satisfaction is 0. We know.021 to +2. So according to Kendall's tau_b Correlation test there is no relationship between employee behavior and customer satisfaction. √ = 1. which means that employee behavior is not effect customer satisfaction in context of UCB which reflect that customers are not satisfied by behavior of employees in UCB. INDEPENDENT UNIVERSITY. Now we have to test r for other calculations or comparisons. 60 coefficient or cronbach‘s alpha is sufficient. so it is reliable. INDEPENDENT UNIVERSITY. The cronbach‘s alpha of service quality is 0.811 which means it is highly reliable. The most highly recommended measure of internal consistency is provided be cronbach‘s Alpha (α) as it provides a good reliability estimate in most situations. In this study the coefficient alpha for different constructs were computed using the reliability procedure in SPSS (version 17.0). 50-. Reliability is the extent to which measurement of particular measure of particular test are repeatable.811. It is between the standard. Updated products are also fall to the reliability test because cronbach‘s alpha is 0.5 then it should be deemed unacceptable. If the reliability of scale for any particular variable is below .P a g e | 42 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Reliability Analysis: The reliability of a scale that predicts a variable should be measured in order to see whether it actually affects the dependent variable. BANGLADESH (IUB) . so it is reliable.625 which is reliable. INDEPENDENT UNIVERSITY. Again the cronbach‘s Alpha (α) of employee behavior is 0.784 which is between the standard. BANGLADESH (IUB) .P a g e | 43 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited The reliability of charges is 0. Again the cronbach‘s Alpha (α) of customer satisfaction is 0.800 which is reliable. INDEPENDENT UNIVERSITY. get crystal clear idea about the significance of customer satisfaction. Implication for future research: As i mention earlier. now a day research is also used for academic purpose. newspapers. our research will help various corporations thus far. Various law suits has already been posted against MNC‘s as well as national companies.bureaus and websites so. charges and employee behavior respectively: anyone who will go through these. Because a trend has been changed over the past few years. I analysis various kinds of data that is given in various journals. customers‘ attitude toward business products or service also changed. Thus faculties also need to study and implement those studies (researchers) to their students so that it can help the students for their study. So. As my research is based on customer satisfaction this research may helpful for students who are keen to know about UCB recent position in front of customers. So it would be really beneficial for the company s to change their policy and get concerned about the customer satisfaction rather than making profit . Students will also get the knowledge about current position of UCB as a private bank in Bangladesh through this research. Academic significance: We know. While any student is going for making any new business plan they are must needed to go for a research. sticking with the obsolete business plan will no longer be effective for making profit.Our study reveals the relationship between the customer satisfaction with the service quality.P a g e | 44 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Significance of the Study: Business significance: Our research hopefully will help various corporations to be concerned about the present condition of UCB as a bank. govt. updated products. BANGLADESH (IUB) . future researchers would get the information about the scale that has been used in my study and hypothesis testing will give them an idea whether there is a relationship between our variables or not and reliability tests will give an information whether our question adjust with the variable. it could also be effective and efficient analysis for the future researchers. Budget is necessary because it gives customers a clear view of the branch Consumers‘ Credit. The present marketing ability to pursue the consumers is not so strong. The processing time for taking consumer credit scheme should simple as possible. He should not be liberal in this respect. details of collateral security with valuation and guarantee. credit repayment sources. The ATM facility of UCBL is weak than other competitor banks so they should try to improve this facility as soon as possible.the consumer taking loan by showing a quotation of furniture but he is not buying that item. INDEPENDENT UNIVERSITY. UCBL should develop short procedure for taking the consumer credit loan. Stopping the diversion of loan: the major portion of the loan goes to the pocket of those who are wealthy. There are some limitations that can be overcome by some measures to make the performance outstanding. United Commercial Bank training institute should introduce training program on Consumer Credit of their executives to provide unique solution for their financial situation. Strengthening the Marketing ability. Credit officer measures the risk associated with the credit facility. The diversion of loan is also prevailing. The system should be developed. he should strictly follow the credit evaluation principle followed by the bank. So UCBL should increases the promotion activities as possible. There are some suggestions for United Commercial banks consumer credit management team from my observation. The analysis should contain information about the borrower. For example. credit purpose. Introducing the appropriate client judgment system: the existing client judgment system for consumer evaluation is not so rigorous.P a g e | 45 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Recommendations: United Commercial bank Limited has an efficient and excellent credit management team and performing with great expertise and care. BANGLADESH (IUB) . So the monitoring system should be improved. This means that the targeted people are not getting loan. A budget is a record that shows the flow of money in and out of the Branch. Proper consumers‘ credit budget for each branch should be established. Introducing the new feature of product may attract the customer to take loan from the UCBL. P a g e | 46 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Conclusion: As an internee of UCBL. BANGLADESH (IUB) . the more the income will be from Credit operations the more will be the profit of the UCBL Limited and here lays the success of Credit Financing. I am confident that this three months internship program at UCBL will definitely help me to realize my further carrier in the job market. INDEPENDENT UNIVERSITY. In this competitive market UCBL has to compete not only the others commercial banks but also with the public Bank. UCBL invested more funds in export and import business. Less the amount of loan losses. UCBL is more capable of contributing towards economic development as compared with other bank. During the course of my practical orientation I have tried to learn the practical banking activities to realize it with my theoretical knowledge. It is obvious that the right thinking of this bank including establishing a successful network over the country and increasing resources will be able to play a considerable role in the portfolio of development. which I have greathearted and going to acquire from various courses of my BBA program. Success in the banking business largely depends on effective lending. I have truly enjoying my internship from the learning and experience viewpoint. As there are lots of local and foreign banks in Bangladesh the UCBL is promising commercial Bank among them. & Dec. Sep. (1984). 2004 Englewood Cliffs. S. Empirical validation of affect.H. B.ucbl. & Sternthal. 88 – 95. Psychological Bulletin. behaviour and cognition as distinct attitude Ethical Consumer Research Association: About practice: A review and recommended two-step approach. Schedule Bank Statistics.P a g e | 47 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited References: Jahangir.. Chowdhury (1992).. ―Financial liberalization in Bangladesh. R.M. Bangladesh Bank. The construct validity of the tripartite classification of attitude. Various issues. (2003). NJ: Prentice-Hall Bagozzi..com Several Booklets from UCB Seeral Newsletter from UCB Credit Operational Manual of UCB Chowdhury.A. 16. Bangladesh Bank.3 &4. (2010). M. INDEPENDENT UNIVERSITY. J. Howard R. Tybout. S. Dhaka: SUBARNA. (1979). Craig. 411 – 423. Conceptual Issues and Impact on Banking financial institutions‖ Bank Parikrama. A. A guide To Growth. P. BANGLADESH (IUB) . Profits and Market share. Dhaka. Perceptions of Power: A Cognitive Perspective of Natinalised Commercial Banks in Bangladesh. No. Nadim. Breckler. C.. Goldsmith.59. P. 103. Journal of Marketing Research. http://www. A. Nurul Islam and T. Vol 18. Your information will be kept confidential. So please do not hesitate to answer.P a g e | 48 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited Appendix QUESTIONNAIRE Hello!! We are conducting a survey to find out information regarding ―Consumer Credit Schemes and Consumers satisfaction of United Commercial Bank Ltd (UCBL). This research is conducted for academic purposes only. BANGLADESH (IUB) . All information will be used for the purpose of this specific research.”There is no right or wrong answer. Personal Information Male Female Age: 15-25 Income per month: 15000-20000 Taka 26-35 21000-30000 Taka 31000-40000 Taka 36-45 41000 and above 46 and above Occupation ________________ INDEPENDENT UNIVERSITY. 4. 5. We do not have any hidden charges. You feel safe dealing with us.P a g e | 49 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited 1= Strongly Disagree 2= Disagree 3= Neither Disagree nor Agree 4= Agree 5= Strongly Agree Service quality: 1. External appearance of bank is good. The time limit to repay the payables should be increased. The procedure of our services and the transactions are clear to you. Updated Products: Products are up to date The installment policy is easy. 12. 7. 2. Availability of ATM in several locations. UCBL‘s services are up to mark. Charges: 1 2 3 4 5 10. The interest rate charged on credit scheme is high. 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6. Sometimes you get services at cheaper price than our listed rate. we charges extra. The service quality should be improved. 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 9. BANGLADESH (IUB) . 13. 8. 14. 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 1 1 2 2 3 3 4 4 5 5 INDEPENDENT UNIVERSITY. UCBL is an excellent bank to have banking services. 11. 1 1 2 2 3 3 4 4 5 5 3. Compared to our quality. Employees provide fast and efficient service. 25. In general you are satisfied with services of UCBL. You feel discomfort in the transactions you do with this bank. 23. With UCBL your purpose is properly fulfilled. You have confidence on our work. 20. UCBL charges higher amount for down payment compare to others. Customer Satisfaction: 21. You will tell others about us. You would like to deal with us in future. 1 2 3 4 5 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 1 2 3 4 5 INDEPENDENT UNIVERSITY. 19. You are satisfied with the online customer service of the UCBL. 17. Employees are skilled and efficient. 18. Employee Behavior: 16. 24.P a g e | 50 Consumer Credit Schemes and Consumer Satisfaction of United Commercial Bank Limited 15. BANGLADESH (IUB) . 22. We meet your expectation level.