Service opportunities at Trade and Development bank

Prepared by:Enkhuulen Gantumur Saruulzaya Bayarsaikhan Enkhjin Erdene-Ochir

Agenda

Introduction Background Target market segmentation Nature of services Analysis of key marketing issues/challenges SWOT analysis 7ps of service marketing mix Conclusion Recommendations

Introduction
This presentation focuses on the local leading bank TDB. The banking service is intangible and hard to evaluate for customers which of the commercial banks are the best one. Therefore concentration is on TDBs strategies, services they offer and the steps how they become the best commercial bank among its competitors Intangible nature of banking service Differentiating and positioning

Background of TDBM

Established in October 1990 The oldest and one of the largest bank in Mongolia Prides itself for its leading position in the universal banking offering a full range of services 70 types of international standard banking products 750 highly qualified staff providing personal attention and user friendly banking services through a network of 41 branches and settlement centers, 60 ATMs, 1300 POS terminals, Internet banking and SMS banking throughout the country, and utilizes same technology as their international partners. In 2004, TDB was the first bank in the country to receive the investment from the Asian Development Bank and International Finance Corporation totaling USD 11 million (shares and loan) First Mongolian bank to begin treasury activities on the international foreign exchange and money markets.

Target market segmentation

Primary target markets: Individuals, Large corporations, Small Medium enterprises and other business sectors TDB positioning: Leading universal Bank in Mongolia with a strong international presence dedicated, trusted and responsible financial partner helping all its clients in their pursuit of sustainable financial well being. Competitive advantage: TDB has been continuously growing its assets and provides wide range of services with the high guarantee. It has best reputation among the financial sectors and in its industry and has been awarded from 2001 to 2009. (Detailed in background section)

Nature and type of services:

Current Account Payment Card Cool Saving Cheque Service Cool Lending Bank Guarantee International Transfer Electronic Banking Service SMS banking Bill payment Credit Line Collection Service Children's Saving Account Deposit Box Service Money Gram Saving Collateral Loan

SWOT analysis

Strengths

Number 1 bank in Mongolia Have 40 correspondent accounts with the worlds major clearing bank Latest machinery installed Included in the Global Trade Finance Program Most reliable banking sector in domestic markets Has good reputation based on its experiences and past performances No failure experienced during its operations from 1990s Has less customers compared to Khan bank and Golomt bank Not enough branches in the city A lack of communication skills of employees Overloaded queue even they leveraged they queuing machine Increase the number of branches with 24-hour service Increase number of branches Increase number of customer

Weaknesses

Opportunities

Threats

increasing interest rates Rising cost of wages Large and increasing competition

Issues and challenges

The competitive advantage:

objectives set, present market performance, product/services offered, customer relationship, service performance, employees productivity.

As domestic market has only 14 banks customers have only thin option to choose the bank which is most reliable and accessible. TDB is facing lack of employee communication with the customers and the knowledge sharing of employees. As it is a large banking sector it is hard for employees to know who the loyal and major customers are and who the new customers are. The another marketing challenge is customers who are not familiar with TDB banking service are confused to choose which service suits them best because there are wide range of services to choose unlike other competitors whose services are understandable and short. Another challenge company is facing is over queue of its branches. TDB is facing the competition from small exchange centers that are buying foreign money in a higher price and selling it in a lower price which made the banks exchange center to change its exchange rates.

7ps of service marketing

Product elements For TDB bank the core products are savings and debit accounts and loans. The supplementary services are shown in details in 2.1. Trade development bank is in its maturity level of a lifecycle because its been for 20 more years in Mongolian market. Place and Time Trade development bank has 31 branches and settlement centers, 60 ATMs, 1300 Point of sales terminals, internet banking and SMS banking throughout the country. (most of branches working business hrs and very few 24 hr ones) Price

For any servicing business it is hard to evaluate the price of its products. To open up a current account individuals need to pay 5000 MNT, for Corporations 20,000 MNT. Withdraw foreign currencies form current account free of charges, USD 0.25%, EUR 0.3 %, CNY 0.15%, RUB and KRW 0.4 % other currencies 1% , bill payments 500 MNT TUG each, transaction
Promotion

CSR activities: Trade development Banks has given 50 Million MNT to National Emergency Management Agency due to weather extremes causing losses of livestock back in 2009. This is one of the corporate social responsibilities of the bank which is improving their reputation on society. Back in 2008 TDB sponsored TV transmission of Beijing Olympics and Euro-2008. The recent years bank has been sponsoring lots of TV programs the Duulian Childrens football championship endorsed by the president of Mongolia. Heavy advertisement campaigns via traditional and electronic means Discounts and premium services to its core corporate clients

7ps of service marketing cont

Physical evidence The bank has 31 branches throughout the country, and the branches which are located in the highly business area are concern about their environments. Every branch has its formal environment and the waiting areas provided by the brochures and introductions that are provided by the bank and new offerings.

People Provides training program twice a year, they are focusing on continuing professional development where employees see their professional learning as a lifelong process of training and development. TDBs human resource department is working on recruiting its employees and reducing the turnover of employees because of the training programs and the knowledge or experiences of its employees.

Process TDB keeps connection with its customers is one of the main operative goals, making sure the money is transferred, the payment card is working, the cheque is issued to the right person, the withdrawals are available in every locations and the loan is paid back on time

Conclusion

As of TDB is the best financial sector in Mongolian market it has to maintain its current success and continuously expand its services beating up the competitors. For Mongolian market we have only 14 banks and the financial sector is very thin these banks are interrelated and affecting each others operations to win the customers attention. So the biggest players such as Golomt bank, Khaan Bank are focusing more on its customer service and one on one communication showing empathy to each customer TDB has to improve its customer communication of its front line employees and responsiveness of complaints would be preferred. As TDBs management system is centralized where top management makes all the decision they should be adaptable and flexible in decision making process where certain changes need to be made.

Recommendations

Provide training for the employees Get students attention and provide them sufficient understanding about banking services Increase number of branches with 24-hour service Focus more on advertising, reaching the potential customers attention Show more empathy to each customers Quick responsiveness to complaints or suggested loans

Thank you for your time