termpaper on ok banking-final

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Service Marketing term paper on OK banking Service




E-business has been continuously growing as a new industry during the last decade. The banking industry has been leading this trend in recent years, and now all banking transactions completing through internet applications are sometimes called e-banking. E-banking has revolutionized the way business is transacted by globalizing the business enterprise. E-banking technologies have proliferated in recent years, and the availability of a wide range of products has led to increasing adoption among consumers. These technologies include direct deposit, computer banking, stored value cards, and debit cards. Growth of Electronic banking in a country depends on many factors, such as success of internet access, new online banking features, household growth of internet usage, legal and regulatory framework. E-banking can offer speedier, quicker and dependable services to the customers for which they may be relatively satisfied than that of manual system of banking. E-banking system not only generates latest viable return, it can get its better dealings with customers.A transitional period in the banking sector of Bangladesh has been passing through since shifting from the traditional banking system to the online banking system. These comments indicate that gradually electronic banking is gaining its importance in Bangladesh. At the same time the banking process is becoming faster and easier. In order to survive in the competitive field of the banking sector commercial banks are looking for better service opportunities to provide their customer. There are many e-banking operator in Bangladesh- Bkash (BRAC Bank), DBBL mobile banking (DBBL Bank), Ukash (UCB), Sure kash (First Security Islami Bank Ltd.), Mkash, Mykash, Hello, Mobikash etc. There is another new mobile banking operators called OK mobile banking a product of One Bank Ltd. which is operated by Interspeed Marketing Solutions Limited. The paper has been undertaken mainly to find out whether OK banking can satisfy the customers or not.

1.1 Objectives of the Study

Objectives of this report are: To know how a new company grow in the competitive market. To discover the GAP between customer expectation and perception from this service. To detect problem of OK mobile banking. To make suggestion on basis of findings. To identify the prospect of mobile banking in Bangladesh.

1.2 Limitation

Due to the following limitations the report might not be through enough to achieve the objectives: It is important to conduct small research among the target group to understand the OK Banking total service dimensions. Due to the time limitation it was not possible to do any research in large scale and outside of the Dhaka. While taking the interviews, many of the agents of OK Banking were unwilling to provide any kind of information to us and also we found difficulties to talking with them as they use to be very busy with their own works.However, we tried our level best to make this paper an enhanced one and a strong team work helped us a lot to finish it within the short time period.

1.3 Methodology

Primary Data Source: The primary data is obtained by one interview with Md. Ashikur Rahman, Territory Officer of Interspeed Marketing Solution Ltd. We have also talked with the BRAND Manager of Interspeed Marketing Solution Ltd. Pratik SenGupta. They have given idea about the service development and design of OK Banking and also described about their work regarding this project of One Bank Ltd.Secondary Data Source: To understand how other organizations work and to know industry practices secondary data have been used from survey on the retailers/agents of Ok banking and also from different reports, articles and website. We have taken a survey of 30 retailers to know about OK banking performance and consumer expectation from this service.

1.4 Background

Interspeed Marketing solution is an advertising and marketing communication organization. It is a marketing consultancy helping businesses grow and realize their commercial dreams. Interspeed is one of the first Bangladeshi advertising agencies. It was founded by Enayet Karim in 1968. Over the last 43 years they have consolidated their position as one of the largest independent agency in the country revered and respected for their creative streak and great brand building work for some of the largest clients in the country. (Interspeed Marketing Solutions Ltd., 2000) Their core strength lies in their ability to think differently and act boldly and bring a solution-neutral integrated approach to marketing problems for clients. They build and nurture strong brands by creating communications that circumvent the usual and disrupt the status quo.

Product/Service Offerings:Interspeed believes in 3-dimensional marketing communication solutions for businesses and brands. They have three business units.Interspeed Advertising: is their traditional full service creative agency that provides clients with through the line advertising and brand consultancy services. Interspeed Activation: is their brand activation, rural outreach and events management agency that provides clients with 360 degree touch points on the ground, in-store or anywhere that traditional media fails to touch consumers. Interspeed Marketing Solutions is their direct marketing, trade marketing and one-to-one customer engagement agency that provides clients direct marketing capabilities, trade merchandising support and digital solutions.Interspeed Clients: The clients of Interspeed are Unilever, Akij Group, Radio Foorti, Anwars Group, NuVista pharma Ltd., British American Tobacco, Banglalion, Eastern Bank Ltd., Cocacola, PRAN, Microsoft, Renata Ltd., Computer Source, Bombay Sweets, BRAC Chicken, iCON, HP Bangladesh etc.

1.5 Mobile Banking in Bangladesh

In Bangladesh, the expansion of e-banking is beset with several infrastructural, institutional, and regulatory constraints such as inadequate availability of reliable and secure telecommunication infrastructure, poor ICT penetration in the banking sector, lack of skilled manpower and training facilities, absence of supportive policies, guidelines, rules and regulations relating to e-transactions and the like. To make Digital Bangladesh the Bangladesh Bank has brought competition among the scheduled banks to improve banking services and rapidly adopt e-banking on a wider scale.

Mobile banking is a new banking concept in Bangladesh. Bangladesh Bank is influencing banks to operate this mobile in a serious manner to reach to the unbanked people of Bangladesh. Bangladesh Bank believes that mobile is the easiest way to reach to the rural part of the country with the banking service. Still now, Bangladesh Bank has given license to 23 banks to run this mobile banking operation. Among these, 14 banks have full Mobile Financial Service permission and other 9 banks have the permission for international remittance transaction only through mobile. Currently many banks are providing this service, among them BRAC Bank Limited mobile banking service named Bkash, One Bank limited mobile banking, Islami Bank has its banking services named M-cash, UCB has its U-cash and one bank has currently launched its mobile banking service named OK Banking.Mobile Banking service can be provided in two different processes. One of these processes allows banks to give the mobile banking service towards the customer directly. In this process banks have their own network system. In the second process banks use 3rd party to give mobile banking service. In this process banks have only the database system and the service providing duty is relies on 3rd party. Now, based on these services providing process, service can be delivered in two different ways. These are application based (GPRS protocol) and the other one is SMS based.


GAP Model

2.1 Customer GAPThe customer gap is the difference between customer expectations and perceptions. Whatever the company promised to the consumer if they fulfill it properly then customer becomes happy. If company provides more than whatever they promised, customer becomes happier. But, if company fails to fulfill their promise, customer becomes unhappy. Customer expectation becomes higher when company promise higher. GAP rises when customer finds differences in between expected service and perceived service.

Expected service

Customer Gap

Perceived service

Figure: The Customer GapTo find out the GAP of Ok banking we have done a survey on their agents/retailers. We have found out the gap between the customer expectation and perceived value is higher. Customers expect many things from their service like- regular communication with retailer,advertisement and promotioncommission, service availability,flexible account opening system, easy process, respond on time,building Relationship with Retailers, training and seminar etc. But actually they are not getting from this service as they expected. For example- a) Service representative respond on time: Retailers expected that the SR of OK banking will respond time, but from survey we have got the actual perception of retailers.Strongly AgreeAgreeNeutralDisagreeStrongly Disagree


Figure: SR on time respondsb) Maintain good network coverage: The survey result is-Strongly AgreeAgreeNeutralDisagreeStrongly Disagree


Figure: Good network coverageMost of the people dont know about their network quality, because after opening the accounts the company didnt recharge the balance of agents account to operate the business, thats why the retailers have less idea about their network.c) Strong commitment towards service:Strongly AgreeAgreeNeutralDisagreeStrongly Disagree


Figure 2.4: Strong commitment towards serviceMost of their retailers/agents sa