Professional Documents
Culture Documents
On
Dutch-Bangla Bank Limited, Satmosjid Road Branch.
Abbreviations
ATM
CIB
EVA
IT
: Information Technology.
LRA
DBBL
SLR
SSI
CSR
NID
: National Identity
M-Banking
: Mobile Banking
E-Money
: Electronic Money
STD
IT
: Information Technology
LC
: Letter of Credit
DPS
SWIFT
SMS
GPRS
3G
: 3ed Generation
1.Executive Summary
Importance of banking system in a country is increasing day by day. It is quite impossible for any
country to develop in industrial and commercial sector without sound banking system in modern
economic era. General Banking and Mobile Banking is one of the significant functions of the
bank. It plays a vital role in overall economy of the country. Bank collects information from
numerous sources relating to cost and revenue from Customer Management.
Globalization of national economies has given a boost to international trade. The seller and the
buyer in an international trading transaction must agree for a product or its quality, price etc.
enter into a sales contract, spelling out precisely shipping and delivery details, terms of payment,
required documentation and other related issues including dispute settlement procedure and legal
framework available.
2. General Introduction
Company Profile
segments of customer. It has been achieved much of its goals but it has been performing its
activities to satisfy the country people as it did before well.
For the community strengthening the corporate values and taking environment and social
risks and reward into account
over night. It has some distinction features so that it is now very close of the peak of success.
Those distinctive features are as stated:
The Dutch-Bangla bank provides service with high degree of experienced & expert &
use of modern technology.
The bank has the biggest IT investment as a bank in the country.
The institution creates long term relationship based on mutual trust.
It responses to customers needs with speed & accuracy.
It shares its values & beliefs with the clients.
It provides products & services at competitive pricing.
It ensures safely & security of customers valuables in trust with us.
It introduces diversified & dynamic banking system.
It targets every income level person for its banking service.
The financial institution ensures higher level of transparency and accountability at all
level of doing business for having efficient and effective business operation.
It is the pioneer in maintaining Corporate Social Responsibility (CSR) as a banking
financial institution all over the country.
It holds the biggest ATM (Automated Teller Machine) network.
As one of the leader of banking financial institutions of the country, the Dutch-Bangla
Bank Limited has a wide variety of operations. It earns a lot of profit from those operations. The
important thing is that the operations are little unique from the competitors.
The different operations are as stated shortly here:
2.7.1 Deposit Collection: As a leading commercial bank of the country, Dutch-Bangla Bank
Limited collects huge amount of idle money from the country people as deposit in against of
paying interest depending upon the account features. It pays different percentage of interest for
different maturity of fixed deposits. It disburses flat 4% interest for savings account. As usual, it
does not pay any interest for the current account
2.7.2 Life line Disbursement: The bank has a wide variety of life line. The collected idle money
is distributed among the applicants after judging their possibility. Life line can be for
commercial, personal, business, home, car, health, children, education, marriage etc. It takes
interest based on the maturity period of the life line. It earns almost 85% of its income from this
operation
2.7.3. Foreign Trade: Foreign trade is another source of income for the bank. It is involved in
both export and import business. It earns little from this sector but it contributes a lot to the
national economy. Here, L/C (Letter of Credit) is the main source of income.
2.7.4 Foreign Currency Endorsement: Foreign currency endorsement is another source of
income for the bank. It supplies money of the different recognized foreign currency like US
Dollar, British Pound, Japanese Yean, Saudi Real etc to the immigrants after having their
passports and visa.
2.7.5 Investment: Investment is an important operation of the bank. It can be of long and short
term. It contributes significantly in the profit earning of the bank that goes to the stockholders
ultimately. This investment improves the infrastructural, national development.
2.7.6. Social Responsibility: Social Responsibility is a very important operation for the bank.
Though it is not a major operation from the view of profit earning but it has generated a very
strong image of the bank among the national and international community also. Through this
image, it has reached to the top of the success. The bank often arranges different types
of social campaign like eye replacement, blood donation, free medical check up, various natural
calamities, social awareness against of dowry system, early marriage, Scholarship of different
level and other social problems .
At first the bank had begin its operation with only 3 branches and a very few officials. Those
branches are Motijheel Local Office, Agrabad branch and Banani branch. But now it has a strong
network of service consisting of 97 branches and over 2000 officials over the country.
[
2.9 Corporate Profile:
:
Corporate Profile Of Dutch Bangla Bank Ltd
Name of the Bank
Status
Corporate Slogan
Commencement of operation
Authorized capital
Paid up capital
Industry
Nature of Business
Target customers
Number of ATM
Number of Branches
Number of employees
SWIFT
Mobile banking is not simply another delivery channel but represents a fundamental shift in
the paradigm of consumer banking.
Internet Banking helped give the customer's anytime access to their banks. Customer's could
check out their account details, get their bank statements, perform transactions like transferring
money to other accounts and pay their bills sitting in the comfort of their homes and offices.
However the biggest limitation of Internet banking is the requirement of a PC with an Internet
connection, not a big obstacle if we look at the US and the European countries, but definitely a
big barrier if we consider most of the developing countries of Asia like Bangladesh. Mobile
banking addresses this fundamental limitation of Internet Banking, as it reduces the customer
requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the
Asian economies like Bangladesh. The main reason that Mobile Banking scores over Internet
Banking is that it enables Anywhere Anytime Banking'. Customers don't need access to a
computer terminal to access their bank accounts, now they can do so on-the-go while waiting for
the bus to work, traveling or when they are waiting for their orders to come through in a
restaurant. The scale at which Mobile banking has the potential to grow can be gauged by
looking at the pace users are getting mobile in Bangladesh.The mobile subscriber base in
Bangladesh hit 70 million in 2011. The explosion as most analysts say, is yet to come as
Bangladesh has about one of the biggest untapped markets. We see that in Korea which is now
witnessing the roll-out of some of the most advanced services like using mobile phones to pay
bills in shops and restaurants.
Mobile Banking is a Banking process without bank branch which provides financial services to
un-banked communities efficiently and at affordable cost. To provide banking and financial
services, such as cash-in, cash out, merchant payment, utility payment, salary disbursement,
foreign remittance, government allowance disbursement, ATM
money withdrawal through mobile technology devices, i.e. Mobile Phone, is called Mobile
Banking.
Mobile banking (m-banking) involves the use of a mobile phone or another mobile device to
undertake financial transactions linked to a clients account. M-banking is one of the newest
approaches to the provision of financial services , made possible by the widespread adoption of
mobile phones even in low income people. The roll out of mobile telephony has been rapid, and
has extended access well beyond already connected customers in rural area. There is mounting
evidence of positive social impact on poorer people and communities as a result.
There are sound reasons for the hope that m-banking could have similar impact. A mobile
network offers a high technology platform onto which other services can be often provided at
very low cost to deliver an effective result. Mobile data channels are often under-used and
therefore may be offered at low cost by the network operator. M-banking services which use
channels such as text messaging/ SMS can be carried at a cost of less. The low cost of using
existing infrastructure makes such channels more amenable to use by low income customers.
M-banking is new in our country, and there has been limited donor support in this sector to date.
This report considers the case for donors to support m-banking as a sector. Bangladesh Bank
permitted 10 commercial bank to do such kind of mobile banking business that the rural people
who have mobile but havent banking facilities, Service holders can get there salary by the
mobile banking.
Around 87% of the total population of Bangladesh is un-banked. To bring such a huge
population into the banking channel, DBBL is implementing a system to launch mobile banking
soon. The project is in its final stage now. With this facility any person having a
mobile number will be able to use his number as a bank account. In this mobile account they will
be able to do the following:
Cash deposit to any Agent of DBBL
Cash withdrawal from any Agent of DBBL
Cash withdrawal from DBBL ATMs
Funds transfer to another mobile account
Utility bill payment, Tuition fee payment, Air time top-up.
Receive remittance from home and abroad
Salary disbursement
Disbursement of Govt. allowances
Merchant Payment
Balance Inquiry
While poor people have little money, they are active managers of what they have.
Holding cash comes at high price to poor people because of the risk of crime in many
poor People, but they often have few alternatives to cash based services.
In particular, appropriate financial services help poor people to access usefully large
lump sums of money, which may either enable a pathway out of poverty through
investment in income generating activities (such as micro enterprises) or asset creation
(such as housing); or may reduce vulnerability to sudden shocks to cash flow, as a result
for example of illness or climate conditions.
In our country, poor people are forced to rely on informal financial services, which may
be unsafe, or fringe formal financial products which may be expensive as well as unsafe.
In other words, their exclusion from formal financial services has economic and social
impacts which may exacerbate their poverty.
The cost efficient provision of formal financial services (payments/ remittances, savings,
credit or insurance) is predicated on customers having access at least to a basic
transactional account, from which electronic transfers can be made as like purchase
product and pay one another by M-banking and cash withdrawn as necessary.
M-banking holds the prospect of offering a low cost, accessible transaction banking
platform for currently unbaked and poorer customers. In addition, as mobile networks
expand their coverage, they offer the opportunity of bringing payment and remittance
services into that areas where banking services is unable able.
However, not all m-banking products will be transformational in the sense of broadening
access to financial services substantially at first or even at all. However, it is likely that
even m-banking services which start targeted at existing banked customers may over time
extend to un-banked groups.
According to the Law and Practice the Banker Customer relation arises only from contract
between the two. And opening of Mobile Account is the contract that establishes the relationship
between a banker and a customer. So this section pays very important role in attracting customer
and therefore be handled with extra care
4.11.3 Necessity
A person who wants to open an account he/she should have some documents to open an account,
these are1. 2 copies PP size photo of Applicant
2. Photocopy of National ID Card
3. 10 tk as account opening charge.
4.11.4 Mobile Account opening procedure in a flow chart
Applicant fills up
the relevant
application form
in the prescribed
manner
He/ she is
required to fill up
the specimen
signature
The authorized
officer scrutinized
the introduction and
examine the
documents submit
Account is opened
After registration of DBBL Mobile Banking DBBL cell center call customer for choosing the
password. Customer chose four digit number what they like. The mobile banking number will be
like mobile number with one cheque digit. It will be active within 1-2 working day.
4.11.5 Why PIN is required?
PIN is required to be inputted during cash withdrawal from an Agent or DBBL ATM. PIN
ensures security of your money and protect fraudulent transaction.
PIN is the key for transaction of Mobile Banking. Only correct match of PIN & Mobile Number
can access the Mobile Account. PIN is needed to verify the A/C owner by the system. If a PIN is
disclosed, respective account is at risk; therefore, PIN should be handled very carefully.
4.11.7 Why Check digit?
Mobile number is public and known to many people. Without knowing your check digit, none
will be able to deposit money at your account, thus it helps to keep your mobile account
confidential. On the other hand, a check digit eliminates typing error, thus protects sending or
depositing money to a wrong account.
4.11.8 Which Telcos Mobile can be registered?
Customer having any mobile from any Mobile Operator can be registered for DBBL Mobile
Banking at any agent point of Banglalink and Citycell. All these Mobile Account holders will be
able to deposit and withdraw money from the Agents. However the customers having
mobile from operators other than Banglalink and Citycell will not be able to initiate many selfinitiated services like Balance checking, fund transfer, utility payment, Air-time top up, PIN
Change etc. Customers having mobile from Banglalink and Citycell will be able to enjoy all the
services agent-initiated as well as self-initiated.
4.11.7 What type of Mobile set is required?
Any type of mobile set can be used for DBBL mobile banking.
4.11.8 How much initial deposit is required?
Customers can open a DBBL Mobile Account with an initial deposit of Taka 10/- (taka ten) only.
4.11.9 Can I deposit and withdraw money immediately after registration?
You can deposit money immediately after registration. However, you can withdraw after your
account is fully registered. Bank officer verifies the information on the registration form (KYC
form) and authorizes the account for full registration. Normally 1-2 working days are required
for full registration. After your account is fully registered, you will get an SMS notification.
DBBL Mobile Banking is highly secured as it uses either USSD or SMS+IVR as its
communication channel. In case of USSD, both the instructions and PIN are communicated
using USSD while in case of SMS+IVR, instructions are sent via SMS and PIN via IVR (voice
channel) both the USSD and IVR are secured for transmission of PIN Customers money is safe
as none can withdraw his/her money without taking possession of Mobile set, PIN and Check
digit together. None will be able to deposit unwanted money into a Mobile Banking Account
without knowing the check digit (although the mobile number is publicly known).
4.11.11 Where to cash-out (cash withdrawal)?
Customer can cash-out (withdraw) at any authorized agent of DBBL (at present Citycell &
Banglalink agents), DBBL ATMs and DBBL Branch.
4.11.12Mobile A How does it work?
Customer asks the Agent for withdrawal of an amount from his/her mobile account
Agent initiates the transaction from his/her mobile
Agent gets prompt menu and in reply agent enters customers mobile account number
(including check digit) and amount to withdraw
DBBL system sends prompt menu to the customers mobile (or IVR Call): You are going to
withdraw Tk. XXXX from your mobile account with DBBL. If you want to continue, please
enter your 4-digit PIN
Customer enters his/her PIN
System debits customers account and send an SMS to the customers mobile
Agent hands over money to the customer
4.11.13 Where to cash-in (cash deposit)?
Customer can cash-in (deposit) at any authorized agent of DBBL (at present Citycell &
Banglalink agents) or DBBL Branch.
4.11.14 How does it work?
Customer hands over cash to the Agent
Agent initiates the transaction from his/her mobile
Agent gets prompt menu and in reply agent enters customers mobile account number
(including check digit) and amount
Agent enters his/her PIN
System credits customers account for the same amount
Agent issues a receipt to the customer
System sends an SMS to the customers mobile
For security reason, customer needs to check the sending number of SMS and the amount.
SMS will be sent from 16216
There may be scarcity of cash at agent points. We want to serve as many customers as possible
from each agent points. On the other hand, it is required to minimize fraudulent loss, if any. To
arrest all the above, a transaction limit in terms of frequency and amount have been set in the
system. Current limit for the customers are as under:
Cash-in frequency per day = 5 times
Cash-out frequency per day = 5 times
Cash-in / cash-out amount per transaction = 5,000/Cash-in frequency per month = 20 times
Cash-out frequency per month = 20 times
4.11.16 How to check your account balance?
Customer initiates the transaction from his/her own mobile
DBBL system sends prompt menu to the customers mobile (or IVR Call): Please enter your
4-digit PIN to know your balance or press Cancel button to cancel the request
Customer enters his/her PIN
System sends the balance into his/her mobile
4.11.17 How to change PIN?
It is a process by which Corporate Office can disburse the salary of their employees and
Government can disburse different allowances like elderly allowance, freedom fighter allowance
to the people within a few moment in a hassle free way.
4.11.18 How it works?
Corporate Office/ Government will send the list of mobile account numbers (including check
digit) and monthly salary/allowance to DBBL
DBBL will credit all the individual accounts by debiting corporate account centrally by a
batch process system
The employee/beneficiary will get an SMS regarding the transaction
The employee/beneficiary can go to any agent or DBBL ATM or DBBL Branch for
withdrawal of money
4.11.19 Benefits of Corporate Office/Government?
Time savings
Cost savings
No need of extra manpower
Probability of error is very low
Instant service is ensured
4.11.20 Benefits of employee/beneficiary?
Instant credit to the account
No hassle to collect salary/allowance
No queue
Money can be withdrawn from any agent or DBBL ATM or DBBL Branch
4.11.21 How foreign remittance can be sent to Mobile Account?
Exchange houses at abroad receive remittance against beneficiarys mobile account number
Exchange houses send the mobile account number and the amount to DBBL
DBBL will centrally credit the amount against respective mobile account
The beneficiary will get an SMS regarding such transaction.
The beneficiary can go to any agent or DBBL ATM or DBBL Branch for withdrawal of
money
4.11.22 Fees & Service Charges
Registration Fee : Free
Cash-in Charges : 1% of the transaction amount or
Tk.5/-, whichever is higher
Cash-out Charges : 2% of the transaction amount or
Tk.10/-, whichever is higher.
Merchant Payment : Free for customer
Mobile Top-up : Free for customer
Salary Disbursement : Free
Allowance Disbursement : Free
Remittance Disbursement : Free
4.11.23 Mobile Banking Services in DBBL
Banks offering mobile access are mostly supporting all of the following
Services
4.11.24 Account Information
Mini-statements and checking of account history
SMS Alerts on account
Registration fee, salary and remittance disbursement
4.11.25 Payments & Transfers
Domestic fund transfers
Micro-payment handling
Mobile recharging
Bill payment processing
4.11.26 Transaction
Fund Transfer
Bill Payment
Other financial services like
4.11.27 Enquiry Based
Credit/Debit Alerts.
Minimum Balance Alerts
Bill Payment Alerts
Account Balance Enquiry
Account Statement Enquiry
Cheque Status Enquiry.
Cheque Book Requests.
Recent Transaction History.
the market long enough to ensure that to identify the elements of a successful model. Hence,
support to providers may assist in overcoming this barrier. Generally available research into
the patterns and needs of the un-banked target market may also help.
Lack of interoperability with existing systems: Interoperability of different payment systems
is primarily a question of market structure and regulation. It arises initially only in markets
where there is an existing payment infrastructure with which new providers can inter-operate
(and later on, once new infrastructure becomes the standard). Without inter-operability, the
fixed costs of deploying financial infrastructure may be much harder to recover, since usage
per item of proprietary infrastructure will fall. Clearly, one solution may be to give regulators
the power to require interoperability; however, it may be sufficient to encourage the
identification of appropriate standard upfront. This could take place via support to regulators
or industry bodies, where these exist.
Regulatory barriers: Specific regulatory impediments vary by market; but in general, a
lack of openness to new models of provision and a lack of policy certainty limit the potential
of new models. Increasing openness and certainty may require support to regulators to
outline high level policy, as well as to amend existing regulations or draft new ones where
and when required.
The case for donor support therefore rests on removing barriers such as these, thereby making it
more likely that transformational models of m-banking will emerge at all, or at least, sooner; and
that they will develop more rapidly than otherwise would be the case.
mobile banking application. It will be expected that the mobile application itself check the
upgrades and updates and download necessary patches. However, there could be many issues to
implement this approach such as upgrade / synchronization of other dependent components.
Personalization
It would be expected from the mobile application to support personalization such as:
1. Preferred Language
2. Date / Time format
3. Amount format
4. Default transactions
5. Standard Beneficiary list
6. Alerts
4.15 Prospective:
Increasing faster transmission via GPRS 3G technology to be lunched soon in Bangladesh is
expected to bring in a mobile revaluation.
Users are slowly getting used to the concept of mobile in hand held device as digital cash or
wallet to carry out purchase.
Presently low value M-commerce transecting are happening.
To extent low cost banking services to existing clients & un-banked individuals especially in
rural areas.
Findings And Analysis
No.
of Percentage
Respondents
20-30
44
44%
31-40
26
26%
41-50
17
17%
50>
13
13%
Total
100
100%
No. of Respondents
Percentage
Male
68
68%
Female
32
32%
Total
100
100%
Profession
40
35
30
25
20
15
10
5
0
Student
Reason
opening
Required
of
Percentage
53
53%
Attractiveness
14
14%
Facilities
21
21%
12
12%
Total
100
100%
Percentage
Attractiveness
14
14%
Facilities
21
21%
my 12
12%
Near from
place
Total
100
53%
100%
No. of Respondents
9
25
38
12
16
100
Percentage
9%
25%
38%
12%
16%
100%
18
12
20
0
Belo 10Min
15 Min
30 Min
Above 30 Min
5.1.1 Strengths
Strengths
1. Potential customer in rural and urban area where branch banking is not possible.
2. Partner is available.
3. New investment like Mobile Banking where no bank in Bangladesh is not start such kind
of business
4. Low cost for opening Mobile Bank Account.
5. Possible to give hand to the remote area customer of there remittance earn from abroad.
6. Mobile bill pay or recherch through Mobile Banking is possible.
7. Out let is available.
8. Tran section process is easy
9. Save money in rural area.
10. Salary/Allowance Disbursement
11. Strong network of telecom company
12. Efficient Employee of DBBL as well as Telecom Partner.
13. Cost effective
5.1.2 Weaknesses
Weaknesses
1. Out Let is not available as per requirement.
2. Mobile ATM booth is not available.
3. Amount of transaction is very little.
4. Advertisement is not adequate that most of the people dont know about Mobile Banking.
5. Employee are not efficient that M-Banking is new in Bangladesh.
6. Insecure out let that rubbery the money in remote area where security is not available.
7. New concept in Bangladesh is the beast weakness
8. Cash in and out cost is more than interest rate
9. Lack of Knowledge of operating Mobile transaction within customer.
5.1.3 Opportunities
Opportunities
1. Lot of potential customer in Bangladesh that around 7 corer people use Mobile phone.
2. It may that the shopkeeper receive there payment through Mobile transaction.
3. Salary and allowance may distribute through Mobile Banking
4. Government and other International agencies positive attitude toward low classification
rate.
5. Opportunity to expand banking business.
6. Large market for bank.
7. Gain more profit through Mobile Banking.
8. To reach the modern banking facilities to the rural area where banking facilities does not
reach till now.
5.1.4 Threats
Threats:
1) Customer may not use properly the process of M-Banking.
2) Reaching deeper into rural areas without costly investment in infrastructure.
3) Reducing the costs of servicing.
4) Interoperability
5) Security risks from robbery & holdup.
6) Scalability & reliability
7) Personalization
8) Customer education
9) Reduce cost of clients
10) Lack of out late
11) Cost of cash in and out is high compare to interest rate on bank deposit
6.1 Recommendation:
Continue Mobile Banking in the rural areas to increase the use of E-Money especially in
commercial applications. Continuous pilot testing of the other M-Banking services to model cost
effective ways of reaching more and more people in areas farther away from bank.
Develop a mobile banking website as information portal particularly for M-Banking.
Continuous support and training workshop on Mobile Banking.
Procedures develops on going:
Developed M-banking system to automated transecting.
Major problems in a business arises when its new. The officer should observe that
whether there is loss of the top executive, demand, or any other most important new one
has entered and often the change may be worse.
DBBL and concern partner should advertise more for attracting all level of customers.
DBBL should encourage students for Mobile account opening because students are a
potential source for a bank.
DBBL should increase facility to fulfillment customers need.
DBBL should increase its outlet.
Bank should also be aware of significant changes in the training of M-Banking officer
and concern Partners employee.
Changes in industry trends may directly affect business so that it can no longer
completely profitable. Therefore, the Bank should keep information about the
environment of each industry in which its customers operate.
Real value of business can come from making regular visits to the customers place of
business rather than holding all meetings in the Bank.
Against big willful defaulters legal action should be taken promptly for customer MMoney Security.
Should arrange more and more campain in public place to expan M-Banking customer.
The cost of cash in and out should decrease.
Try to involve small business to raise customers.
References:
Books:
Bringham, Eugene F, Essential of Managerial Finance Twelfth Edition.
Syed Ashrf Ali & R.A Howlader Banking Low & Practice First Edition November 2009
Annual Report 2010 DBBL
Ross, Westerfield, Jaffe Corporate Finance Sixth Edition
Gitman, J Lawrence(2003), Principal of Finance Tenth Edition
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