Sindh Bank Limited
By
Muhammad Ijaz
(Reg. 21231036)
__________________________
Mr. Ahmad Babry
(Project Supervisor)
A
project submitted to the Department of Management Sciences, National College of
Business Administration & Economics, East Canal Campus, Lahore in partial
fulfillment of the requirements for the MBA-Executive.
DEPARTMENT OF
MANAGEMENT SCIENCES
NATIONAL COLLEGE
OF BUSINESS ADMINISTRATION & ECONOMICS
EAST CANAL
CAMPUS
LAHORE
SEPTEMBER, 2017
Table of Content
|
S No#
|
Topic
|
P No#
|
|
1
|
Acknowledgment
|
03
|
|
2
|
Dedication
|
04
|
|
3
|
Vision
& Mission
|
05
|
|
4
|
Core Values
|
06
|
|
5
|
Banking History in Pakistan
|
07
|
|
6
|
Departments
of the Bank
|
10
|
|
7
|
Product
and Services
|
10
|
|
8
|
Financial
Highlights
|
11
|
|
9
|
Marketing
Department of Bank
|
12
|
|
10
|
Strategic
Management
|
14
|
|
11
|
Bank
Management Hierarchy
|
17
|
|
12
|
Hierarchy
of Authority
|
18
|
|
13
|
Strategic Options Development and
Analysis
|
18
|
|
14
|
Growth
Strategy
|
19
|
|
15
|
Marketing
Strategy
|
20
|
|
16
|
Corporate
Social Responsibility
|
21
|
|
17
|
Relationship
Marketing
|
22
|
|
18
|
SWOT
Analysis of the Banking Industry in Pakistan
|
25
|
|
19
|
BCG
Matrix
|
28
|
|
20
|
TOWS
Matrix
|
29
|
|
21
|
EFE
Matrix
|
30
|
|
22
|
IFE
Matrix
|
31
|
|
23
|
PESTEL
Matrix
|
32
|
|
24
|
Power
of Suppliers
|
33
|
|
25
|
Availability
of Substitutes
|
33
|
|
30
|
Competitive
Rivalry
|
34
|
|
35
|
Conclusion
|
35
|
|
36
|
References
|
36
|
Acknowledgment
“All praises for
Almighty Allah, who guides us in darkness and helps us in difficulties and due
respect for Holy Prophet (Peace be upon him) who enables us to recognize our
creator.”
First, we would
like to thank Almighty Allah who provided us confidence, guidance &
strength to complete this challenging project. The journey has not finished yet
and we pray to Allah Almighty to show us the right path & help us more in
future as we are nothing without His blessings.
We would like to
express our gratitude towards our parents who support and encourage us throughout our life
This organizational analysis appeared to
be a great experience for us. It added a lot to our knowledge. Completion of
this task would have not been possible without the support of the staff members
of Management Sciences Department to whom we interacted. Sindh Bank. The Sindh Bank Limited is a Pakistani
scheduled bank headquartered
in Karachi. It has over 260 branches in 130 cities. It was set up as a state-owned bank, offering microfinance loans and
other banking services.
Sindh Bank’s vision for promoting economic activity to empower the people of
Pakistan and create employment opportunities brings upon it an onerous
responsibility to deliver results.
Thus the Bank’s polices are focused on enhancing
small farmer’s access to institutional credit and supporting national strategy
for increasing agricultural output by funding farm and non-farm projects. Promoting
SME sector by providing solutions to small and medium sized entrepreneurs. Funding
projects yielding economic benefits to the country. Supporting projects that
empower women. Providing banking facilities in the unbanked areas particularly
in the province of Sindh. Providing e-banking services to enable Bank’s
customers to have fast and easy access meeting their banking requirements by
installing the most modern and efficient technological applications that
satisfy customers expectations. Fulfilling Its Corporate Social Responsibility
in all segments of the society particularly for promoting and enhancing
education in Pakistan, by supporting and providing interest free loans to
meritorious students for higher education with job guarantee in Sindh Bank. Laying
a sound foundation for the bank and delivering attractive value for the
shareholders’ investment while remaining within the ambit of regulatory
requirements.
Dedication
It is our genuine
gratefulness and warmest regard that we dedicate this work to our parents who
taught us never to give up and also to our friends who helped us in completing
it.
Vision
“Our
vision is to be a leading bank which plays a positive role to generate economic
activities for empowering the people by meeting their financial needs for
running a successful business and create employment opportunities”.
Mission
“To
develop as a leading commercial bank in the country by meeting its stated
objectives of promoting economic development of the country in general and in
the province of Sindh in particular”.
Core
Values
- Discipline
- Access to Finance with respect
- Simplicity and Standardization
- Transparency
- Effective Cost Management
- Know Customer needs
GOALS
The bank might want to find the
customers who are to some respect different from the other customers.
Another goal of the bank might be to find implausible
combinations of values that should be corrected in this table
SHORT TERM GOAL
·
Develop
strategies for new market
·
Customer
Satisfaction
·
Profit
Earning
LONG TERM GOAL
·
100
branches are planned to be opened during 2018
·
Sindh
Bank take over on Summit Bank and in Jan 2018 all Summit Bank branches Convert
into Sindh Bank.
·
The
Bank will continue to expand Its Islamic Banking footprint through 7 new
branches as well as windows pan Pakistan. While introducing new asset and
liability products, our focus will continue to be on Shariah Compliance,
Technology platforms and consistent investment in skills upgrade.
·
The
Bank will focus on enhancing commission based income by exploring new avenues.
·
Bank
will also make home remittance arrangements with other top rated international
companies.
·
73
ATMs will be added to the network by the end of the year to improve the Bank’s
branchless banking presence.
BANKING HISTORY IN PAKISTAN
|
|
|
|
Big
Four
|
|
|
·
Atlas
Bank
·
Sindh
Bank
|
|
|
Microfinance banking
|
|
|
Foreign
banks
|
|
|
Defunct banks
|
|
|
See
also
|
|
STATE BANK OF PAKISTAN
The State Bank of Pakistan (SBP) (دولت پاکستان)
is the central bank of Pakistan. While its
constitution, as originally laid down in the State Bank of Pakistan Order 1948,
remained basically unchanged until January 1, 1974, when the bank was
nationalized, the scope of its functions was considerably enlarged. The State
Bank of Pakistan Act 1956,[2] with
subsequent amendments, forms the basis of its operations today. The
headquarters are located in the financial capital of Pakistan, Karachi with branch
offices in 15 cities across Pakistan, including the capital city, Islamabad and the four
provincial capitals.
HISTORICAL OVERVIEW
IN
the 1980s, after much opposition by the centre and the State Bank of Pakistan,
the provinces of Punjab and the NWFP were able to establish provincial banks
such as Bank of Punjab and the Bank of Khyber. Both these banks are currently
functioning as commercial banks, providing people of their provinces benefits
of employment, finance, training and economic development.
However,
the benefits accrued on the deposits kept in these banks by people of other two
provinces, particularly from Sindh, also go to the people of Punjab and the
NWFP. In 1995, an Act was passed by the Sindh Assembly to establish a 'Sindh
Bank', but was strongly opposed by bureaucrats from Punjab and the NWFP working
for the Government of Sindh, the SBP and the centre. Even though, due to the
efforts of chief minister Arbab Rahim, the establishment of the Sindh Bank was
announced countrywide in 2004-05, the process could not move forward due to the
change of regime. The people of Sindh were pleasantly surprised when the new
Chief Minister of Sindh, Syed Qaim Ali Shah, in his oath-taking speech
announced the establishment of this bank yet again in 2008. However, after the
delay of about a year, yet another advertisement appeared in newspapers in 2009
by the finance department of the government of Sindh, this time to obtain
expressions of interest for establishing the Sindh Bank, which neglected all
the provisions of the 1995 Act. Contrary to the Act, the Sindh government's
share in the new proposal has been shown as 40 per cent whereas the private
sector holds 60 per cent of the share. This means that the Sindh government
will not be managing the affairs of the bank and, hence, the accruing benefits
will not go to the people of Sindh. The Sindh finance department is further
spending Rs30m on the evaluation committee to examine the feasibility proposals
of five private parties, something that could have easily been done for Rs0.5m.
Also,
according to the SBP policy, the NOC for the Sindh Bank will be obtained with a
capital of Rs6bn and not Rs2bn as mentioned in the proposal. According to
information, the finance department has deposited about Rs40bn in various
commercial banks. It is, therefore, proposed that the Sindh government should
plan to establish various agriculture-based industries and manufacturing units
in rural areas alongside main roads, so that the jobless of the province can be
employed. Since 2005, in the Sindh budget, Rs3 billion has been set aside each
year for the special relief fund for poor and vulnerable people. However, the
finance department prefers to keep the money in banks for earning interest and
taking commissions instead of helping the poor. It is expected that the
deposited amount has already swelled to around Rs20bn, without a penny going
into the right hands. This amount can also be utilized for the establishment of
industrial and commercial units for the prosperity and welfare of the people of
Sindh.
DEPARTMENTS Of bank
The Bank has organized its
activities within several Departments to achieve its range of
responsibilities. The following are the Departments in the Bank’s Organization
Structure. Click on the Department's name to obtain information on its
activities.
·
Internal
Audit And Compliance
·
Research
·
Security
PRODUCTS AND SERVICES
Sindh Bank provides a large
range of products and services to its business and individual customers some of
which are as follows.
PRODUCTS
·
Sindh
Bank Auto Finance
·
Sindh
Bank Flexi loans for salaried personnel
·
Sindh
Bank lifestyles Financing Scheme
·
Sindh
Bank I-Card
·
Sindh
Bank House Financing Loans
·
Sindh
Bank Easy Access
·
Sindh
Bank Fast Trans
·
Agricultural
Loans
·
Sindh
Bank E-Bank
SERVICES
·
Retail Banking
·
Commercial
Banking
·
Corporate
Banking
·
Phone Banking
·
Cash Management
·
Agriculture
Loans
·
Commercial
Banking
·
Corporate
Banking
·
Islamic
Banking
·
Investment
Banking
·
Working
Capital
·
Procurement
of Machinery
·
Expansion
of Production Facilities
·
Import
of Raw Materials
·
Exports
·
Guarantees
·
Project
Finance,
·
Debt
Capital Markets & Syndications
·
Equity
Capital Markets & Advisory
FINANCIAL HIGHLIGHTS
Sindh Bank now ranks amongst the
top corporate entities in Pakistan in terms of profitability. This large jump
is also reported profit the net interest income and profit growth of the bank
has been achieved in an environment that can be termed unique for the sector in
Pakistan. The improved economic fundamentals have allowed the government to
slash its borrowing requirements and this , combined with substantial inflows
of remittance , has resulted in a large build up of excess liquidity in the banking
sector.
Future Outlook
For a bank to deliver quality
services, it is imperative that technology be an integral part of all aspects
of its operations. At Sindh Bank, strategy has been to utilize cutting edge
technology to serve customer efficiently and in a cost effective manner. Sindh
Bank strive to accomplish this while maintaining a strong personalized approach
in our customer relationship. Sindh Bank embarked on an ambitious plan in 2009
to revamp its technology platform. The technology initiative includes:
·
Online
inter-branch funds transfer
·
Alternate
delivery channels e.g. POS terminal
·
ATM
network for cash withdrawal, fund transfer, payment of utility bills etc
·
E-commerce
·
Internet
banking
·
PC based
banking for corporate customers
·
Automation
of treasury and trade finance
Sindh Bank corporate website has
recently been revamped and now provides a customer friendly, information rich
and technologically advanced environment to its clientele. Enhancement of the
Bank’s communications network to provide online connectivity to:
More than 200 branches,
corporate centers and regional offices in over 30cities throughout Pakistan
MARKETING DEPARTMENT OF BANK
Marketing has always been an
afterthought in banking. For many years, marketing wasn’t even necessary. Bank
regulators quelled competition by controlling everything entrants, operations,
expansion, products and even rate. Accounting, mortgage and retail executives
were the kingpins who ran the show.
This is the Golden Age of bank
marketing. Exciting challenges and new opportunities abound. No longer are we
simply telling consumers what products we have available; consumers are telling
us what they expect speed, convenience, and all of it for free. If we don’t
provide the right products, at the right time and price, they’ll go elsewhere.
Listening and responding is the essence of marketing. And no one in the
organization is better suited to this role than marketing execs. In an
environment where consumers are king and competition is intense, marketing
should be providing the data and the strategy to guide corporate
decision-making.
Retail marketing departments
outside of banking bear little resemblance to those of earlier eras. Content
officers, digital analysts, social media engineers and engagement officers are
among the trendy new titles that give testament to the importance of digital
marketing, but they also connote the expanded functions of today’s bank
marketing department. A Chief Marketing Officer should be the bank’s primary
customer advocate, a champion for change and a guide to help achieve greater
profitability. Meaningful insight into the market and the consumer buying path
is a critical role for today’s CMO. Similarly, digital analysts should be doing
more than just tracking email open rates; they should be providing critical
customer behavioral data that value throughout the bank and it’s the CMO’s job
to make sure this is happening.
·
Twitter
·
Facebook
·
LinkedIn
·
Email
·
Print
Marketing has always been an
afterthought in banking. For many years, marketing wasn’t even necessary. Bank
regulators quelled competition by controlling everything — entrants,
operations, expansion, products and even rate. If your marketing department has
a digital specialist for placing ads and blog posts, that’s not enough. You’ve
simply added a digital operative to a traditional department. You are failing
to recognize that digital is more than media, It’s a service delivery system
that crosses all channels, strengthening relationships and improving
satisfaction. Marketing departments must be restructured to reflect the role
digital plays in every aspect of banking.
Product
Transactional accounts
Current accounts
Savings accounts
Debit cards
ATM cards
Credit cards
Home equity loans
Personal loans
Price
The price for services
is an important element of the marketing mix, being an important income source
for the organization. The settlement of a correct price, both for the
market and the competition, is a significant element for the sector of
financial – banking services
Place
Number of locations 260. Area served All provinces of Pakistan.
Products, Loans, Savings, Consumer Banking. Website, www.sindhbankltd.com.
The Sindh Bank Limited
is a Pakistani scheduled bank headquartered in Karachi. It has over 260 branches in 130 cities.
Head office 3rd Floor,
Federation House Abdullah Shah Ghazi Road, Clifton, Karachi-75600. Media Branch
& ATM Location.
Office: +92-21-35829 394,
+92-21-35829 320
UAN: +92-21-111-333-225
Help
Line: 0800-33322
Sindh
Bank DHA Main Boulevard Branch Lahore
Group
Head Office Lahore
Office:
+92-99264335-36
Help
Line: 0800-33322
Promotion
In marketing, promotion is
advertising a product or brand, generating sales, and creating brand loyalty.
It is one of the four basic elements of the market mix, which includes the four
P's: price, product, promotion, and place. Promotion is also defined as one of
five pieces in the promotional mix or promotional plan. These are personal
selling, advertising, sales promotion, direct marketing, and publicity. A
promotional mix specifies how much attention to pay to each of the five
factors, and how much money to budget. Promotion covers the methods of
communication that a marketer uses to provide information about it's product.
STRATEGIC MANAGEMENT
Sindh Bank
values are the fundamental principles that define its culture and are
brought to life in its attitudes and behavior. It is company’s values that
make its unique and unmistakable. Company values are defined below:
Excellence
This is at
the core of everything Sindh Bank does. The markets in which Sindh Bank operates are becoming increasingly competitive, giving their customers anabundance
of choice. Only through being the very best in terms of the service Sindh Bank offers,
Its products and premises - can it hope to be successful and grow.
Customer focus
Sindh Bank understands
fully the needs of its customers and adapts its products and services to meet
these. Sindh Bank always strives to put the satisfaction of its customers
first.
Progressive
Sindh Bank believes in the advancement of society through the
adoption of enlightened working practices, innovative new products and
processes ,and a spirit of enterprise.
Humility
Sindh Bank encourages
a culture of mutual respect and treat both our team members and customers with
humility and care.
Integrity
Sindh Bank Integrity means a synergic approach towards abiding our core values.United
with the force of shared values and integrity Sindh Bank employees form a net work
of a well-integrated team.
Meritocracy
At Sindh Bank on
every level, from selection to advancement, leadership has designed
aconsistent system of human resource practices, based on objective criteriathroughout
all the layers of the organization. They are therefore able to achieve as pacific
level of performance at every layer of the organization.
Team Work
Sindh Bank team
strives to become a cohesive and unified force, to offer customers a level of
service beyond expectations. This force is derived from participative and collective
endeavors, a common set of goals and a spirit to share the glory and the strength
to face failures together.
Culture of Innovation
Sindh Bank aims
to be proactively responsive to new ideas and to respect and reward the agents leaders
and creators of change.
Sindh Bank Culture
SindhBank has created a challenging environment that encourages creativity andcommitment.
Sindh Bank focused on attracting, developing and retaining the best talent in the
marketplace. Sindh Bank dynamic culture offers diverse growth opportunities
across Pakistan and in 55 countries around the world.
MANAGEMENT FUNCTION
Strategic
management is the continuous planning, monitoring, analysis and assessment
of all that is necessary for an organization to meet its goals and objectives.
Planning
In Sindh Bank
decision making is highly centralized because all the decisions and plans are made
at the top level of management.
Organizing
No autonomy is
provided to Sindh Bank employees. Sindh Bank strives to become a cohesive and unified
force, to offer the customer, a level of service beyond their
expectations. This force is derived from participative and collective
endeavors, a common set of goals and a spirit to share the glory and the
strength to face failures together. And there is also a high degree of
interaction among department managers.
Leading
The
leadership approach established in Sindh Bank is team leadership and the
positive attitude of Sindh Bank employees towards their job is
because of increasing employee job satisfaction.
Controlling
Sindh Bank Imposes external control on its employees and the criterion used by
management to evaluate the employees is their performance. Annual reports are sent
to the top level management about each and every employee which evaluates their
performance.
Understanding Customer
Knowing and understanding customer needs
is at the centre of every successful business, whether it sells directly to
individuals or other businesses. Once you have this knowledge, you can use it
to persuade potential and existing customers that buying from you is in their
best interests.
Analyse Market
A market analysis is a quantitative and
qualitative assessment of a market. It looks into the size of the market both
in volume and in value, the various customer segments and buying patterns, the
competition, and the economic environment in terms of barriers to entry and
regulation
Analyse Competition
Identifying your competitors and
evaluating their strategies to determine their strengths and weaknesses
relative to those of your own product or service. A competitive analysis is a
critical part of your company marketing plan.
Define Marketing Mix
The marketing mix refers to the set of
actions, or tactics, that a company uses to promote its brand or product in the
market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and
Place.
Determine Market Position
Determining market position depends
on three main tasks: Figure out your point of difference. Your unique
attributes are what set you apart from your competitors and attract clients to
your offering. Decide which customers you serve the best.
Marketing Budget
A marketing budget will
typically include all promotional costs, including marketing
communications like website development, advertising and public relations, as
well as the costs.
Execution Plan
A query plan is an ordered set of steps
used to access data in a SQL relational database management system. This is a
specific case of the relational model concept of access plans.
BANK
MANAGEMENT HIERARCHY
The banks need a proper organizational hierarchy in order
to carry out all the activities of the organization in a smooth and the most
efficient way.
A Bank
Management Hierarchy typically enlists all the job titles from
top to bottom in order of their importance, experience levels and contribution
towards the organization. The hierarchy plays a vital role in the effective
functioning of the bank by ensuring a proper communication channel between the
different levels of the professionals. Here is the detailed hierarchy that is
prevalent in most of the banks.
HIERARCHY OF AUTHORITY
The
amount of authority increases
with each level higher a person or organization is in hierarchy. The ultimate power remains
with the person or organization at the very top of the hierarchy, with that position holding the authority to make final
decisions in all matters.
Strategic Options Development and Analysis
Strategic
Options Development and Analysis is a method for working on complex problems.
It is an approach designed to help or consultants help their clients with messy
problems.
SODA
uses interview and cognitive mapping to capture individual views of an issue.
Group maps constructed through the aggregation of individual cognitive maps are
used to facilitate negotiation about value/goal systems key strategic issues,
and option portfolios. As well as problem content attention is paid to the affective
political and process dynamics in the group.
SODA
aims to provide a management team with a model as a device to aid negotiation,
working with individuality and subjectivity as the basis for problem definition
and creativity. It tends to generate increasingly rich models, rather than move
towards abstraction or simplicity and sees strategic management in terms of
changing thinking and action rather than planning.
The
method aims to develop high levels of ownership for a problem through the
attention paid to problem definition and negotiation. It is aimed at groups of
four to ten participants.
The
process uses two personal computers special software, one preferably two large monitor’s
blank wall space large sheets of paper and water based pens. It is managed by
two facilitators one who attends primarily to content and one to process.
GROWTH STRATEGY
While growth
strategies are usually considered a means to overhaul competitors, they
may also be seen as a defense mechanism. Attack is the best form of defense,
and growth strategies may help banks to remain competitive
in a fast-moving and rapidly-changing financial services landscape
Banks are
hungry for growth: hungry for new customers, for deeper and more profitable
relationships with existing clients and for better alignment of expense against
revenue opportunities. But achieving that growth is a difficult challenge.
Low interest
rates continue to put pressure on margins. According to the most recent FDIC Quarterly
Banking Profile, “revenue growth has been modest
and net interest margins continued to decline.” Although interest rates will
inevitably start to rise when the Federal Reserve raises rates and this will
help loan yields, it will also trigger competitive pressure on deposit rates,
limiting improvement in the margin.
Growth of a business is critical for
business success, so using strategies such as horizontal integration, vertical integration, diversification and intensification will all
benefit a business’s growth, be it long term or short term. Refer to an off’s
Matrix for a simpler explanation of the various growth strategies if those
mentioned below are difficult to understand
MARKETING STRATEGY
Has
the fundamental goal of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic, short-term, and
long-term activities in the field of marketing that
deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies
that contribute to the goals of the company and its marketing objectives. Marketing strategies cover
everything from Pay per click, search engine marketing, public relations, Engineering
with Marketing & the much more.
Promotion and marketing in general is a
big part of any bank of financial institution. They rely on their promotional
material in order to sustain their reputation, which to a bank is everything.
This comes through in many ways, especially when dealing with financial and
insurance policies. They take special care when creating graphs, logos and
other visualizations.
Not only is the information supposed to
reassure the potential customer, the content, layout and colors are also
supposed to illicit trust and loyalty. Slogans, branding and campaign
advertising is often very conservative and well thought out so that they do not
damage their trustworthiness. Getting the business of younger people and
younger urban executives is now a more competitive business, as they know that
people tend to stick with one bank once they have settled on their choice.
CORPORATE SOCIAL RESPONSIBILITY
In Sindh Bank,
integrating social responsibility within our core business has been a growing
step through engaging multiple stakeholders in the economic, social and
environmental areas. In this respect, Management further developed the Corporate
Social Responsibility function and set a committee with varied membership of
internal stakeholders dedicated to implicate more opinions and to drive a
sustainability strategy.
In efforts to move forward, Bank Audi’s CSR has adopted the Global Reporting Initiatives and opted for a four-pillar strategy during 2013. This achievement is based on the accountability and commitment to the “International Organization for Standardization” (ISO) and their local representative. Partnering with Sindh Bank as the first pilot organization within the banking sector to implement the ISO Social Responsibility guidelines.
2013 was marked by major achievements related to Corporate Governance, in addition to human, economic and community developmental projects. These helped in sustaining the Bank’s position as a non-discriminatory/equal opportunity employer of choice in the Lebanese private sector.
Within the same scope, the Bank reinforced its ability to attract and retain employees while maintaining their morale, commitment and productivity efficiency through the.
In efforts to move forward, Bank Audi’s CSR has adopted the Global Reporting Initiatives and opted for a four-pillar strategy during 2013. This achievement is based on the accountability and commitment to the “International Organization for Standardization” (ISO) and their local representative. Partnering with Sindh Bank as the first pilot organization within the banking sector to implement the ISO Social Responsibility guidelines.
2013 was marked by major achievements related to Corporate Governance, in addition to human, economic and community developmental projects. These helped in sustaining the Bank’s position as a non-discriminatory/equal opportunity employer of choice in the Lebanese private sector.
Within the same scope, the Bank reinforced its ability to attract and retain employees while maintaining their morale, commitment and productivity efficiency through the.
Moreover,
employees’ community engagement was institutionalized by the “Volunteering”
Program and several internal initiatives taken to ensure the safety and
well-being of all employees this included the appointment of Safety Marshals at
the Bank’s premises.
On a different level, Bank Audi signed a five-year collaboration agreement with “BADER Young Entrepreneurs Program” to support growing businesses and empower future entrepreneurs while influencing the business community as a whole. In addition, the Bank launched the third annual, financially empower, these projects preserve our belief in the value of human capital and the attempt to boost entrepreneurship and innovation within our core business.
Maintaining social equity and good organizational governance within our sphere of influence and supply chain;
On a different level, Bank Audi signed a five-year collaboration agreement with “BADER Young Entrepreneurs Program” to support growing businesses and empower future entrepreneurs while influencing the business community as a whole. In addition, the Bank launched the third annual, financially empower, these projects preserve our belief in the value of human capital and the attempt to boost entrepreneurship and innovation within our core business.
Maintaining social equity and good organizational governance within our sphere of influence and supply chain;
·
Launching
the “Capacity Building” program to enhance the capacities of employees in
Lebanese institutions;
·
Hosting
several activities and trainings for students at different schools to
familiarize them with the banking sector and Bank Audi’s values;
·
Fulfilling
various fund-raising requests for public, private, medical, welfare and
humanitarian purposes;
·
Conducting
surveys on different topics to seek continuous improvement and taking internal
and external recommendations into consideration.
The various activities and different measures taken by Bank Audi are available in a separate CSR Report published and released on the Bank’s website, including further details on CSR-related projects and their effect on the Bank’s stakeholders and on society at large.
The
Meanings behind Different Color Usage
These colors are meant reassuring,
thoughtful and reliable, with the possible exception of red. In the west, red
symbolizes power, danger and firepower, whereas in the east it is a lucky color.
Black on the other hand may be interpreted as ambivalent. Black is a symbol of
luxury, but since the global economic downturn, it is also one of austerity.
This may be why the logo for the Society General is very striking since it
transmits a message of austerity and power.
Banking
that is suitable for all
Banquet postal and LCL both use a
combination of yellow and blue logos and branding colors, which are unlike most
banks. It is plausible to assume that they have done this to show that their
banking services are available for all. Blue is often associated with trust,
whilst yellow is associated with happiness and acceptance.
Banking
based on perception
The trust you have in your bank is all
based on perception, as is the idea that one colour means something, which is
best shown by the vast difference between what red means in Anglo-Saxon
countries and what it means in China.
ING Direct uses their initials and the
image of a lion, which is fairly unusual for a bank. The lion obviously
represents power and respect, but few banks have logo images and initials
side-by-side. Visual images that go beyond text or initials are not uncommon if
you look at different banks around the world. In the fight for marketing
superiority, they are often willing to leverage every opportunity they can
find, which includes the use of graphic symbols.
Relationship Marketing
Many companies focus on building
relationships with their customers instead of always exclusive trying to sell
them something (transactional marketing). Customers who love your brand more
will also spend more money with your brand. Many traditional retailers have
found this to be true. Walgreens has seen that customers who buy from all of
their purchasing channels (store, web, mobile, etc) buy up to six times more
than the average customer that only buys in their store.
Word of Mouth Marketing
Word-of-mouth
Marketing is the passing of information from person to person by oral
communication. Customers are very excited to share with the world the brands
they love. Many consumers find meaning in sharing stories of their favorite
products and services. Word of Mouth is one of the ancient ways people learned
about what to purchase. Modern marketers have learned how to create authentic
word of mouth for their companies and the products they represent.
Diversity Marketing
Develop a customized marketing plan by
analyzing different customer segments based on cultural differences including
tastes, expectations, beliefs, world views, and specific needs.
Online Marketing
As commerce has propagated to the
Internet, a new form of marketing has emerged. From online banners to those
annoying pop ups, online marketers have attempted to get their customers
attention any way they can. Most online strategic marketing efforts today are a
mix of growth hacking strategies A/B testing taken to the max) and a variety of
awareness tactics that drive attention. A very effective online marketer is the
insurance company who simply asks their users to enter their zip code for an
instant quote on a better savings.
Email Marketing
As
soon as customers migrated into the online world, Internet marketers have
attempted to collect and organize emails for potential prospects. Many
business-to-business marketers depend on email marketing as a primary way to connect
with customers. At industry tradeshows, IBM
consultants can often be seen exchanging email information with their
prospects.
Niche Marketing
Finding
a niche and filling it could be described as the secret recipe for growth in
over-crowded marketplaces. Take the shoe business, for example. There is a
great demand for shoes in the world and so many top companies have evolved to
satisfy most of the immediate shoe needs in the marketplace. The shoe
space might seem crowded, but shoe manufacturing company Vans noticed an
underserved customer: the skater. By focusing on this niche market Vans has developed
a thriving business.
Mobile Marketing
Mobile
marketing can provide customers with time and location sensitive, personalized
information that promotes goods, services, and ideas. Here is a recent example of mobile marketing in action.
Mobile Apps
Mobile
apps also example of mobile marketing, through it provide all information
regarding bank and Account on mobile app. Through the mobile phone customer
operate his account, and send and receive payments. Though it they pay their
utility bills, easy load, and funds transfer.
ASSETS
The asset
portion of a bank's capital includes cash, government securities and
interest-earning loans, such as mortgages, letters of credit and inter-bank
loans, while the liabilities section of a bank's capital includes loan-loss
reserves and any debt it owes.
INVESTMENTS
The investments
are expected to rise given that government has announced auction targets both
for PIBs and MTBs. However, it may remain modest given the shift of banks from
long maturity high-yielding bonds towards short maturity low-yielding ones.
Moreover, government’s development outlays are expected to gain momentum
towards the end of the fiscal year.
LIABILITIES
The deposits of
the banking sector have gone up while banks’ borrowing from SBP has also grown
owing to liquidity needs to sustain asset growth. On the funding side, deposit
growth was largely determined by both the anticipated withdrawals due to Eidul
Fitr and the growth of advances. Apart from deposits, borrowings from financial
institutions provided the funding necessary for asset expansion.
The banking
sector continues to invest heavily in infrastructure which is reflected in the
absorption of new employees, development of mobile apps, a rise in Point of
Sales (POS) machines and ATMs cards etc. FY 2016-17 was also a year of mergers
and acquisitions as Bank al Baraka acquired BurjBank whereas mergers of Sindh
Bank with Summit Bank and MCB-NIB merger is on the cards.
Based on the
above, if one does a SWOT analysis of the banking industry in Pakistan, it will
be as follows.
SWOT Analysis of the Banking
Industry in Pakistan
Swot strategies pursue opportunities that are a good fit to the company's strengths.Swot strategies overcome weaknesses to pursue opportunities. Strategies identify ways that the firm can use its strengths to reduce its vulnerabilityto
external threats. Strategies establish a defensive plan to prevent the firm's weaknesses from making ithighly
susceptible to external threats.
.
All categories
of consumer finance credit cards, auto finance, mortgage finance, personal
loans have seen positive growth. Auto financing has been on the rise since last
few years and its share in consumer financing has been increasing as well. This
higher growth in auto financing is due to added interest of banks in secured
financing where margins are relatively higher. In the backdrop of declining
interest rate environment, it is attractive for consumers too. Similarly,
mortgage financing portfolio is continuously growing since third quarter 2014
and there is no coming back since then. The mortgage financing, nevertheless,
provides immense opportunities to banks ive outlook as CPEC related projects
gain steam. However, low interest rates and build-up of low yielding stock of
short-term government bonds has moderated the profitability of the banking sector.
The profitability of the banking sector is expected to see some recovery given
anticipated increase in both advances and investments. From solvency
standpoint, banks are well positioned as the prevailing CAR is well above the
minimum required level of 10.65 percent.
STRENGTHS
·
Source
of employment & GDP growth: There is a consensus among economists that
development of the financial system contributes to economic growth. Financial
development creates enabling conditions for growth through either a supply-leading
(financial development spurs growth) or a demand-following. It is this industry
which continuously works to secure financial stability, facilitate
international trade, promote employment, & reduce poverty around the world.
·
Hedge
from risk: Whether it is natural calamity or man-made calamity banks
mitigate the after effect of the destruction by providing financial support to
the victims to stand –up & lead a peaceful life again.
·
Diversified
services: Banking industry offers services from CASA to insurance, to
loan, to investment.
·
Connecting
People: With the advent of new age technological advancement, banks have
made the life of the common man easier. People can transact on real time basis
in many places.
·
Changing
from mere savings & loan facilitator role: Top priorities of banks now
days include regulatory compliance, improving asset quality, enhancing customer
centricity, focusing on digital convergence, and tackling competition from
non-banks. Banks are therefore making business and technology investments to
change their business models.
WEAKNESSES
·
Lack
of coordination: The global banking industry faces short-term uncertainty
due to the debt crises that challenge several major economies. Volatility in
different market/Currencies has created problems for the banks in order to work
properly across the borders.
·
Vulnerable
to risk: Since this sector deals with finances, it is the most risky
sector which can change the fate of any business/Industry.
·
High
NPA’s: Rise in retail &corporate NPA’s (Non-performing assets) is the
single major issue this sector is going through worldwide.
·
Can’t
reach under-penetrated market: Due to several conflicting objectives of
government & banks which goes hand in hand, rural areas of developing
nations are still not in the shadow of banks. Although efforts are being made
for promoting financial inclusion in the country.
·
Structural
weaknesses: Such as a fragmented industry structure, restrictions on
capital availability and deployment, lack of institutional support infrastructure,
restrictive labor laws, weak corporate governance, political pressure and
ineffective regulations.
OPPORTUNITIES
·
Expansion: Penetrating
to the rural markets & bringing the rural masses under the purview of
organized banking will be the objective of the banks in decades to come.
·
Changing
socio-cultural & demographic factors: Given the demographic shifts
resulting from changes in age profile and household income, consumers will
increasingly demand enhanced institutional capabilities and service levels from
banks.
·
Rise
in private sector banking: Banking industry across the world is highly
regulated &lead by their respective central banks. With the advent of
private sector banks this sector is going through structural & functional
changes mainly due to the adaptation of the advanced technologies &
increased competition thereby benefiting the end customers.
THREATS
·
Recession: It
is one of the major threats to the financial system of the nation. Traumatic
shock of economic crises & collapse of several businesses can affect the
banks and vice-versa.
·
Stability
of the system: Failure of some weak banks has often threatened the
stability of the system.
·
Competition: Competition
from NBFC’s (Non-banking financial companies) like insurance companies &
mutual fund companies can affect the business of banks.
BCG
Matrix
Is a corporate planning tool, which is used to
portray firm's brand portfolio or SBUs on a quadrant along relative market
share axis horizontal axis and speed of market growth vertical axis axis
·
Cash
Cows is where a company has high market share in a
slow-growing industry. These units typically generate cash in excess of the
amount of cash needed to maintain the business. They are regarded as staid and
boring, in a "mature" market, yet corporations value owning them due
to their cash-generating qualities. They are to be "milked"
continuously with as little investment as possible, since such investment would
be wasted in an industry with low growth.
·
Dogs, more charitably called pets, are units with low
market share in a mature, slow-growing industry. These units typically
"break even", generating barely enough cash to maintain the
business's market share. Though owning a break-even unit provides the social
benefit of providing jobs and possible synergies that assist other business
units, from an accounting point of view such a unit is worthless, not
generating cash for the company. They depress a profitable company's return on assets ratio,
used by many investors to judge how well a company is being managed. Dogs,
it is thought, should be sold off.
·
Question marks also known as problem children are
businesses operating with a low market share in a high-growth market. They are
a starting point for most businesses. Question marks have a potential to gain
market share and become stars, and eventually cash cows when market growth
slows. If question marks do not succeed in becoming a market leader, then after
perhaps years of cash consumption, they will degenerate into dogs when market
growth declines. Question marks must be analyzed carefully in order to
determine whether they are worth the investment required to grow market share.
·
Stars are units with a high market share in a
fast-growing industry. They are graduated question marks with a
market- or niche-leading trajectory, for example: amongst market share
front-runners in a high-growth sector, and/or having a monopolistic or
increasingly dominant unique selling
proposition with burgeoning/fortuitous proposition drive
from novelty.
TOWS
Matrix
A TOWS
analysis is a variant of a SWOT analysis and is an
acronym for Threats, Opportunities, Weaknesses and Strengths,
The Banking Industry was
once a simple and reliable business that took deposits from
investors at a lower interest rate and loaned it out to borrowers at a higher
rate. However deregulation and technology led to a revolution in
the Banking Industry that saw it transformed. Banks have become
global industrial powerhouses that have created ever more complex products that
use risk and securitization in models that only PhD students can understand.
EFE Matrix
EFE Matrix is an
analytical technique for evaluation of external position of the organization or
its strategic intents.
EFE
Matrix is an analytical technique related to the SWOT analysis. EFE is an acronym of the External
Factor Evaluation. EFE Matrix evaluates the external position of the
organization or its strategic intents. IFE
matrix stands for internal factors evaluation matrix is a strategic tools used
to evaluate the internal strengths and weaknesses of a company. IFE has been
used for internal evaluation of company, business unit or corporation
functional areas which includes marketing, human resource, finance, information
technology, corporate affairs, legal and compliance, business development,
procurement and operations. The internal organizational structure depends upon
organization size and industry.
IFE
Matrix
IFE
matrix means Internal Factor Evaluation Matrix; is a popular
strategic management tool for auditing or evaluating major internal strengths
and internal weaknesses in functional areas of an organization or a
business. IFE matrix also provides a basis for identifying or
evaluating relationships among those areas. IFE
matrix stands for internal factors evaluation matrix is a strategic tools used
to evaluate the internal strengths and weaknesses of a company. IFE has been
used for internal evaluation of company, business unit or corporation
functional areas which includes marketing, human resource, finance, information
technology, corporate affairs, legal and compliance, business development,
procurement and operations. The internal organizational structure depends upon
organization size and industry.
PESTEL
Analysis
A PESTEL
analysis is a framework or tool used by marketers to analyses and
monitor the macro-environmental (external marketing environment) factors that
have an impact on an organization. The result of which is used to identify
threats and weaknesses which is used in a SWOT analysis.
PESTEL stands for:
·
P
– Political
·
E
– Economic
·
S
– Social
·
T
– Technological
·
E
– Environmental
·
L
– Legal
Threat of New Entrants:
Despite the
regulatory and capital requirements of starting a new bank, between 1977 and
2002 an average of 215 new banks opened each year according to the FDIC1. With so many
new banks entering the market each year the threat of new entrants should be
extremely high. However, due to mergers and bank failures the average
number of total banks decreases by roughly 253 a year2. A core
reason for this is, what is arguably, the biggest barrier of entry for the
banking industry, trust.
Because the industry deals with other people's money and financial information new banks find it difficult to start up. Due to the nature of the industry people are more willing to place their trust in big name, well known, major banks who they consider to be trustworthy.
The banking industry has undergone a consolidation in which major banks seek to serve all of a customer’s financial needs under their roof (this can clearly be seen in the business model of banks like Wells Fargo's). This consolidation furthers the role of trust as a barrier to entry for new banks looking to compete with major banks, as consumer are more likely to allow one bank to hold all their accounts and service their financial needs.
Ultimately the barriers to entry are relatively low for the banking industry. While it is nearly impossible for new banks to enter the industry offering the trust and full range of services as a major bank, it is fairly easy to open up a smaller bank operating on the regional level.
Because the industry deals with other people's money and financial information new banks find it difficult to start up. Due to the nature of the industry people are more willing to place their trust in big name, well known, major banks who they consider to be trustworthy.
The banking industry has undergone a consolidation in which major banks seek to serve all of a customer’s financial needs under their roof (this can clearly be seen in the business model of banks like Wells Fargo's). This consolidation furthers the role of trust as a barrier to entry for new banks looking to compete with major banks, as consumer are more likely to allow one bank to hold all their accounts and service their financial needs.
Ultimately the barriers to entry are relatively low for the banking industry. While it is nearly impossible for new banks to enter the industry offering the trust and full range of services as a major bank, it is fairly easy to open up a smaller bank operating on the regional level.
Power of Suppliers
Manager Finance
& Operation at Confectionery Packaging Products. Bargaining Power of
Suppliers: The introduction of new financial products and greater access to
other financial markets have enhanced the investment opportunities of the
depositors who from the major sources of funds for the banking sector
Capital is the
primary resource on any bank and there are four major suppliers (various other
suppliers contribute to a lesser degree) of capital in the industry.
1. Customer deposits.
1. Customer deposits.
2. Mortgages and
loans.
3. Mortgage-backed
securities.
4. Loans from
other financial institutions.
By utilizing these four major suppliers, the bank can be sure that they have the necessary resources required to service their customers' borrowing needs while maintaining enough capital to meet withdrawal expectations.
The power of the suppliers is largely based on the market, their power is often considered to fluctuate between medium to high.
By utilizing these four major suppliers, the bank can be sure that they have the necessary resources required to service their customers' borrowing needs while maintaining enough capital to meet withdrawal expectations.
The power of the suppliers is largely based on the market, their power is often considered to fluctuate between medium to high.
The individual
doesn't pose much of a threat to the banking industry, but one major factor
affecting the power of buyers is relatively high switching costs. If a person
has one bank that services their banking needs, mortgage, savings, checking,
etc, it can be a huge hassle for that person to switch to another bank.
To try and convince customers to switch to their bank they will often times lower the price of switching, though most people still prefer to stick with their current bank.
The internet has greatly increased the power of the consumer in the banking industry. The internet has greatly increased the ease and reduced the cost for consumers to compare the prices of opening/holding accounts as well as the rates offered at various banks.
ING Direct introduced high yield savings accounts to catch the buyers' attention, and then they went a step further and made it very easy for customers to transfer their money from their current bank to other bank. It was successful in their attempt because they managed to make switching costs very low in terms of time and capital.
To try and convince customers to switch to their bank they will often times lower the price of switching, though most people still prefer to stick with their current bank.
The internet has greatly increased the power of the consumer in the banking industry. The internet has greatly increased the ease and reduced the cost for consumers to compare the prices of opening/holding accounts as well as the rates offered at various banks.
ING Direct introduced high yield savings accounts to catch the buyers' attention, and then they went a step further and made it very easy for customers to transfer their money from their current bank to other bank. It was successful in their attempt because they managed to make switching costs very low in terms of time and capital.
Some of the
banking industry's largest threats of substitution are not from rival banks but
from non-financial competitors.
The industry does not suffer any real threat of substitutes as far as deposits or withdrawals; however insurances, mutual funds, and fixed income securities are some of the many banking services that are also offered by non-banking companies.
There is also the threat of payment method substitutes and loans are relatively high for the industry. For example, big name electronics, jewelers, car dealers, and more tend to offer preferred financing on "big ticket" items. Often times these non-banking companies offer a lower interest rates on payments then the consumer would otherwise get from a traditional bank loan.
The industry does not suffer any real threat of substitutes as far as deposits or withdrawals; however insurances, mutual funds, and fixed income securities are some of the many banking services that are also offered by non-banking companies.
There is also the threat of payment method substitutes and loans are relatively high for the industry. For example, big name electronics, jewelers, car dealers, and more tend to offer preferred financing on "big ticket" items. Often times these non-banking companies offer a lower interest rates on payments then the consumer would otherwise get from a traditional bank loan.
Competitive Rivalry
The banking
industry is considered highly competitive. The financial services industry has
been around for hundreds of years and just about everyone who needs banking
services already has them. Because of this, banks must attempt to lure clients
away from competitor banks. They do this by offering lower financing, higher
rates, investment services, and greater conveniences than their rivals. The
banking competition is often a race to determine which bank can offer both the
best and fastest services, but has caused banks to experience a lower Return on
Assets. Given the nature of the industry it is more likely to see further
consolidation in the banking industry. Major Banks tend to prefer to acquire or
merge with other banks than to spend money marketing and advertising.
Threat from
Substitutes: In addition to the threat from the new entrants, banks are
also exposed to competition from the other financial intermediaries offering
substitute product. Bargaining Power of Buyers: With the level of competition,
both from within and outside the industry
CONCLUSION
It was a
wonderful and learning experience for me while working on this project .Took me
the various phases of project development and give me real insight into the
world of Banking industry, Sindh Bank is clearly the first choice of everyone
who believes in qualitative approach of banking. It pertains environment of
highly responsible workforce. Bank is enjoying a healthy market share and taste
of good status in terms of its operative features and customer support. Sindh
Bank is experiencing a good reputation and reasonable mark up with respect to
prevailing market mark up with assurance of satisfaction and support. Sindh
Bank management is competent enough to set the strategies in order to compete
with their competitors and attract more customers.
I enjoyed etch
and every bit of work I had put into this project .The project further
extendable.
REFERENCES
www.sndb.com.pk
http://www.pakistaneconomist.com/2017/07/17/swot-analysis-of-the-banking-industry-in-
http://www.banqueaudi.com/annualreport/90-corporate-social-responsibility
https://www.google.com.pk/search?q=DEFINE+ife+matrix&dcr=0&source=lnms&sa=X&ved=0ahUKEwjU_MbXjazWAhXMXhoKHeD5AIcQ_AUICSgA&biw=
1366&bih=613&dpr=1
https://www.google.com.pk/search?q=PESTEL+Analysis&dcr=0&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjQweLgjqzWAhXIuBoKHddKBoUQ_AUICigB&biw=
1366&bih=613#imgrc=rOC85HhW4u6LvM
The article was up to the point and described the information very effectively. Thanks to blog author for wonderful and informative post. World Bank Funding Project Sindh
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