Service and Direct Marketing

A Case Study of Habib Bank Limited, Pakistan

Presenting By: Group A

Kashif Khan

Rooheena Khan

Anum Saleem

Marium Khursheed

Annas Hussain

History

Holdings

Financial Analysis

Particulars 2015 2014

(in millions) (in millions)

Net asset 182,620 169,595Profit after taxation 35,102 31,483

Investments 1,244,887 922,691Net Advances 633,383 595,295Net Deposits 1,634,944 1,524,645

Awards

Best Bank in Pakistan Euromoney Awards for Excellence, 2015

Safest Bank in Pakistan Global Finance, 2015

Best Retail Bank in PakistanThe Asian Banker International Awards, 2015

Best Investment Bank in PakistanInternational Finance Magazine, 2015

Best Domestic Bank in Pakistan Asiamoney Best Domestic Bank Awards, 2015

Brand of the year, Pakistan World Branding Awards, 2015

HBLSERVICESCAPE & 7Ps

Products & Services Deposit accounts (Current, Saving, Foreign etc)

Debit Card Credit Card Car, Home & personal loans Amaan: Retirement plan

Tabeer: Education and Marriage plan

HBL Zarai Banking: Crop inputs, farm implements, Tractors/ agriculture vehicles, livestock, poultry, fish farming, group lending, tobacco

Products & Services (cont..)

ATMsMobile BankingCall centerBill PaymentsE-StatementsBranchless Banking Islamic Banking

Price

Open an account with just PKR 1,000.No minimum balance requirement.Obtain two free debit transactions, through

branches Avail up to 20% discount at the country’s

most popular restaurants by using your HBL Debit Card.

Account Opening Process

Customer Entry Information Seeking Account Officer

SavingA/c

Yes

Formfilling

NADRA verification

a/c no allotManager inform ClientDeposit moneyEnjoy Interest

rate

It has more then 1700 branches at domestic level

55 branches in 26 different countries U.K , U.S.A, Hong Kong and more

Largest banking sector of Pakistan

PlaceBRANCHES OF HBL

Place (cont..)

The installation of 120 new ATM will spearhead expansion plan of ATM availability throughout the country

The implementation of IBTS-B in all domestic branches will give clear market leadership in the sheer number of branches able to perform online transactions

PLACEMENT STRATEGIES OF HBL

PromotionMARKETING STRATEGIES OF HBL

Promotion (cont..)

Overall results shows that no doubt HBL is going great in marketing but still HBL have been specific to TV audience only and even now they are

focusing more towards television ads that means they are strengthening one side for sure but by leaving all the other side weak.

People

HBL always focus on its PEOPLE, the Human Resource Department has recently completed a training strategy for all employees, in conjunction with the international financial corporation (as part of its technical assistance to HBL) which will roll during the year.

• TRAINING STRATEGY FOR EMPLOYEES

People (cont..)

The Human resource group has also launched a Broad Band pay system, a strategic approach to compensation structure that will drive the process of service improvements. The system will merge the existing structure of regular and contractual employees into a single tier, enabling both the horizontal and vertical growth opportunities.

Broad band will introduce a simplified benefit structure and effective monetary performance evaluation. It will enhance cross mobility with fewer levels of administration making it easier for employees to grow within the business, helping HBL improves staff retention.

• GROWTH AND RETENTION STRATEGY FOR EMPLOYEES

Servicescape

The use of physical evidence to design service in HBL.

Physical environment where service performed, delivered and consumed or a physical surrounding of HBL

Aid internal as well as external goalsIt involves:

Internal exterior includes Ambiance as well External exterior Tangible parts

Physical Evidence (The Seventh “P”)

External

• Prominent locations

• Billboards and hoardings

• Advertisement• website• Signage• ATMs availability• Tagline

“Jahan Khwab wahan HBL”

Internal • Temperature• Noise• Cleanliness• Moving space• Lighting• Ventilation• Colors usage• Interior design

Tangible• ATM/debit/credit

cards• Brochures• Cheque books• Calendar• Stationary• Billing

statements• Reports• Human Resource

personnel

Types of Physical Evidence

Self-service

• Involves Customer only

• ATMs:• Various locations• Physical evidence

Pleasing • Easy to use for

customers• 1700 ATMs

Interpersonal

• Involves customer and employee both

• Normally daily routine and interactions

Remote service

• Involves employees only

Gaps AnalysisCustomer

Expectation Online Payment Staff efficient response and

empathy Focused and informed staff

Enough tangible and good service standards as depict in advertisement

Perceived No proper online set-up Insufficient relationship

focus Lack of empowerment,

perceived control and teamwork

Inappropriate physical evidence and lack of service standard. Also, Overpromising in advertisement

Gaps Analysis (cont..)

Customer Expectation

Uniform procedures across all branches

Experience and motivated employees

Receive service as desire

Perceived Different policies and

procedures across branches

Deficiencies in Human Resource Policies (Poor employee-technology job fit)

Absence of customer driven standard

Other Improvement Areas

• Noticeable communication gap between upper level management and operational staff.

• Over staffing in HBL moreover inefficient individuals are in credit card department.

• Huge difference in approaches of experienced staff & young staff 

• Experienced Habibie's are neither satisfied by the privatization of bank nor they were taken into confidence at that times

Other Improvement Areas (cont..)

• Proper and thorough communication required before implementation of change was absent

• ATM machines and network problem• Main concerns of the employees were:

• Did not trust the new management• Job insecurity increased after privatization• Living a habitual public sector professional life• Difficulty in adapting to the new work

environment

Recommendations • Formation of interdependent teams having a mix of

both top and middle level management employees• Implementation of customer-based service standard

including adoption of technology.• Preparation of a Career Development Plan • The T&D should be focused on the needed and

required competencies of the future• Introduction of a tailored evaluation program• Senior employees to be judged not only on the basis of

their productivity but also on the basis of their level of improvement within the period of evaluation

• Bank should help the society by providing interest free loans to the talented students.

• Bank must improve the network infra world wide

Thank You