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ANALYZING CUSTOMER EXPECTATIONS IN TRADE FINANCE PRODUCTS WITH RESPECT TO ING VYSYA BANK
Prepared by:Payal SonejaSummer Intern Amity School of Economics
ING VYSYA BANK
ING VYSYA BANK
• Founded in 1930, Vysya Bank was formally incorporated in the city of Bangalore, Karnataka.
• ING Vysya Bank Ltd. (International Netherlands Group), is an entity formed with the coming together of erstwhile, Vysya Bank Ltd, a premier bank in the Indian Private Sector and a global financial powerhouse, ING of Dutch origin, during Oct 2002.
• Shailendra Bhandari (CEO & MD) of INF Vysya bank and Arun Thiagarajan is the chairman of the board
• India's Premier Private Sector Bank.
• Revenue: 16.6B ($320M)₹
ING VYSYA BANK
INTRODUCTION
OBJECTIVES
The objectives of my report are:
Broad Objective of the report is:• To know about the customers’ expectation and satisfaction in trade finance
products of ING VYSYA Bank
Specific Objectives of the report are:
(i) The research will identify the problems faced by customers with the various products in trade finance.
(ii) To compare the trade finance products and services offered by ING Vysya Bank with other private banks (ICICI & HDFC and Axis Bank)
(iii) To thoroughly study the products & services of ING Vysya Bank.
(iv) To make recommendations for improving the quality of different services provided to the customers by the Bank.
ING VYSYA BANK
SCOPE
The study will be able to reveal the preferences, needs, expectation of the customers regarding the banking services, It also help banks to know whether the existing products or services they are offering are really satisfying the customers’ needs. The main purpose of the research is to understand the customer’s satisfaction level of the customers of different products and services offered by ING Vysya Bank and its customers’ problems and the steps taken to improve their facilities.
LIMITATIONS
• It was difficult to interview respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents.
• Accuracy: It is difficult to know if all the respondents gave accurate information; some respondents tend to give misleading information.
ING VYSYA BANK
LITERATURE REVIEW
Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.
What is customer satisfaction and why to measure it Accounts and services offered by ING Vysya bank Trade finance products offered by ING Vysya bank:
Buyer’s credit
Letter of credit
Bank guarantees
Remittance services Overview of ING Vysya bank.
ING VYSYA BANK
RESEARCH METHODOLOGY
All the conclusions are based on the survey done in the working within the time limit. I have tried to select the sample representative of the whole group during my training.
RESEARCH DESIGN
No research paper is complete without data collection and data analysis vital and pertaining to the topic of the paper. In my research report, I have decided to use:
Firstly Exploratory Research, to determine the approximate area where the problem lies according to the information needs of the bank and Descriptive Research to discover answers to the questions who, what, when, where, and, sometimes, how. My attempts to describe or define a subject, often by creating a profile of a group of problems, people.
ING VYSYA BANK
SOURCES OF DATA COLLECTION
• Primary Data
I have chosen a Primary method of Data Collection which would suit this type of Research Design. I have gathered the primary data through personal interviews, questionnaires which I got filled by the customers of ING Vysya bank and as well as the customers from other banks.
• Secondary Data
I have collected the secondary data from internal sources, such as official records of the bank, annual reports and bank’s website.
ING VYSYA BANK
SURVEY METHOD
For conducting my research total sample size was 50 and my target population was exporters, importers and contractors and a questionnaire was produced before the them and their responses were recorded. I took the use of descriptive statistics to analyze the data. For customer interview I used Convenience sampling method which is a non-probability sample. Under this I had the freedom to choose whomever they find, thus the name convenience.
DATA ANALYSIS TECHNIQUES
To analyze the Data Analysis and for the better presentation and right explanation I have used Preliminary method of statistical data analysis which includes statistical methods such as Pie Charts, Histograms, Bar diagrams, which shows how many customers are satisfied from the bank‘s trade finance products.
ING VYSYA BANK
DATA ANALYSIS AND INTERPRETATION
The following information contains the data interpretation of the questionnaires. The respondents’ responses for the questions have been interpreted and a finding has been made based on the respondents responses.
ING VYSYA BANK
DEMOGRAPHIC ANALYSIS
GENDER
84%
16%
MALE
FEMALE
From the above chart, it can be seen that of the 50 respondents 84% of them were male and 16% were female
ING VYSYA BANK
From the above graph, 48% respondents belonged to the age category of 30yrs-40yrs, 32% respondents belonged to the category of 40yrs-50 years, 10% of the respondents belonged to the category of more than 50 years, and between 20yrs-30yrs.
BETWEEN 20-30BETWEEN 30-40
BETWEEN 40-50MORE THAN 50
0%5%
10%15%20%25%30%35%40%45%50%
10%
48%
32%
10%
Sales
AGE GROUP
ING VYSYA BANK
From the above pie chart, 72% of the respondents were salaried , 20% of the respondents were self employed, and 8% of the respondents were managerial.
72%
20%
8%
SALARIED SELF EMPLYED MANAGERIAL
OCCUPATION
ING VYSYA BANK
From the above graph, 26% of respondents are belonged to the category of Graduate, 52% of respondents are belonged to the category of Post graduate, 16% of respondents are belonged to the category of professional course, and 6% belonged to the category of M.Phil./PHD
GRADUATE POST GRADUATE PROFESSIONAL COURSE
M.PHIL/PHD.0%
10%
20%
30%
40%
50%
60%
26%
52%
16%
6%
EDUCTIONAL QUALIFICATION
ING VYSYA BANK
From the above analysis, perception of 60% of the respondents is that ING Vysya bank is a private bank, while 12% of the respondents think that it is a public bank, 18% of them think, the bank is both a private and public bank and 10% of the respondents have no surety about the perception of the bank.
PERCEPTION OF CUSTOMERS ABOUT ING VYSYA BANK
60.00%
12.00%
18.00%
10.00%
Private
Public
Private and public
Don't know
ING VYSYA BANK
From the above chart, 30% of the respondents deal in apparel industry, 22% of the 50 respondents deal in mobile phones and accessories, 18% deal in electronics and electric appliances, 12% deal in gems and jewellery and a total 18% deal in(handicrafts, pharmaceutical and construction industry).
18%
30%
6%
22%
8%
12%4% ELECTRICALS AND
ELECTRONIC APPLI-ANCESAPPAREL INDUSTRY
CONSTRUCTION
MOBILE PHONES AND ACCESSORIES
PHARMACEUTICAL
GEMS AND JEWELLERY
HANDICRAFTS
THE TYPE OF INDUSTRY THE CUSTOMERS DEAL IN
ING VYSYA BANK
From the above chart, it can be inferred that 44% of the respondents deal in export business, 26% deal in import business, 12% of the respondents deal in construction business and 2% deal in trading business.
44%
26%
16%
12% 2%
EXPORT IMPORT EXPORT/IMPORTCONTRACTORS TRADING
ING VYSYA BANK
As per the data collected and analyzed, ICICI Bank hold the accounts of 46% of the respondents. Next rank comes to ING Vysya Bank with 34% of accounts. HDFC Bank has captured 16% (speculative) of the accounts and AXIS Bank with 4%.
ICICI BankING Vysya Bank
HDFC BankAXIS Bank
0%5%
10%15%20%25%30%35%40%45%50% 46
34
16
4
CUSTOMERS HAVE ACCOUNTS WITH WHICH BANK
ING VYSYA BANK
LETTER OF CREDIT
BANK GUARANTEE
BUYER'S CREDIT
CASH CREDIT/PACKING CREDIT
REMITTANCE SERVICES
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
44%
24%
14%
8%
10%
ING VYSYA BANK
From the above analysis, maximum number of respondents (57% of them approx.) of ING Vysya bank used buyer’s credit as their trade finance product. 41.67% of the respondents of ICICI bank used letter of credit, 25% of the HDFC bank respondents used both letter of credit as well as cash credit, and 25% of the AXIS bank respondents used cash credit as their trade finance products.
ING VYSYA BANK
ICICI BANK HDFC BANK AXIS BANK0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
LETTER OF CREDIT
BUYER'S CREDIT
REMITTANCE SERVICES
ING VYSYA BANK
From this chart, it could be inferred that 42% of the consumers have rated services and products offered by their respective banks as ‘good’, 22.5% of them have rated them as ‘very good’, and 15% of them have rated as excellent and average’ while only 5% have rated as ‘poor’.
10.00%
20.00%
52.00%
14.00%
4.00%
EXCELLENT VERY GOOD GOOD AVERAGE POOR
RATINGS GIVEN BY CUSTOMERS FOR THEIR PRODUCTS
ING VYSYA BANK
Of the above parameters, Performance received a maximum rating of 42%, for customer satisfaction; 28%and 16% for speedy process, and also 14% for easy to deal.
42%
28%
16%
14%Performance
Customer satisfac-tion
speedy process
Easy to deal
PARAMETER CUSTOMERS
Performance 21
Customer satisfaction
14
Speedy process 8
Easy to deal 7
ING VYSYA BANK
The above table is a continuous rating scale (Non comparative scaling technique)
HOW SATISIFED CUSTOMERS ARE WITH PRDOUCTS OFFERED BY ING VYSYA BANK
Highly satisfied
Satisfied Neither satisfied nor dissatisfied
Dissatisfied Highly dissatisfied
14 22 10 3 1
28% 44% 20% 6% 2%
ING customers 4 8 4 1 0 17
ING VYSYA BANK
According to chart, 44% of the total respondents are satisfied with the products with their respective banks, while 28% are highly satisfied from their current bank; only 4% are dissatisfied while 2% people are highly dissatisfied. Whereas of the respondents 20% are such who are neither satisfied nor dissatisfied from the products and services provided by their current bank.
Highly satisfied Satisfied Neither satisfied nor dissatisfied
Dissatisfied Highly dissatisfied0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
28%
44%
20%
6%
2%
ING VYSYA BANK
17 ING customers were interviewed by me during the analysis.Out of which, 47.05% (8 customers) of the respondents of ING bank were satisfied by the products and services offered by the bank, 23.53% (4 customers) were highly satisfied and some of them were neutral and 5.89%(1 customer) were dissatisfied. The customers were having problems regarding the documentation and the bank was not able to provide funds in given span of time.
HOW SATISIFED CUSTOMERS ARE WITH PRDOUCTS OFFERED BY ING VYSYA BANK
Highly satisfied Satisfied Neither satisfied nor dissatisfied
Dissatisfied Highly dissatisfied0.00%5.00%
10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%
23.53%
47.05%
23.53%
5.89%
0.00%
ING VYSYA BANK
Above pie chart shows that 42% respondents have Saving A/Cs, and 22% have Current A/Cs and rest of the respondents have 36% share of other A/Cs in total (which includes fixed deposits, land/property, and other products)
42%
22%
10%
18%
8%
Saving account Current account Land/Property Fixed deposit Others
TYPE OF COLLATERAL TO OPERATE WITH THE BANK
ING VYSYA BANK
The customers are satisfied with the banks sincerity in solving their personal or any other problem. Most of the respondents agree with the above statement and none of the customers are dissatisfied by the bank’s ability to solve their problems. So, on this point of bank’s sincerity in problem solving the customers are seemed to be satisfied
STRONGLY AGREE
AGREE NEUTRAL DISAGREE STRONGLY DISAGREE
0%5%
10%15%20%25%30%35%40%45%50%
ING VYSYA BANK
From the above graph, it can be inferred that most of the importers i.e. 31% of them have their issue of bank not able to arrange funds in given span of time, 23% of them have their issues regarding rate issues and exchange rate fluctuations, 15% of the importers have their problems regarding documentation and 8% of them have their issues regarding the shipment schedule not being met.
RATE ISSUES
BANK NOT ABLE TO ARRANGE FUNDS
THE SHIPMENT SCHEDULE CANNOT BE MET
TOO MUCH DOCUMENTATION REQUIRED
PRICE BECOMING LOW DUE TO EXCHANGE RATE FLUCTUATIONS
0% 5% 10% 15% 20% 25% 30% 35%
23%
31%
8%
15%
23%
PROBLEMS FACED BY CUSTOMERS (IMPORTERS) OF ING VYSYA BANK