INTRODUCTION

FINANCIAL SERVICES
Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks, credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. As of 2004, the financial services industry represented 20% of the market capitalization of the S&P 500 in the United States. The term "financial services" became more prevalent in the United States partly as a result of the Gramm-Leach-Bliley Act of the late 1990s, which enabled different types of companies operating in the U.S. financial services industry at that time to merge. Companies usually have two distinct approaches to this new type of business. One approach would be a bank which simply buys an insurance company or an investment bank, keeps the original brands of the acquired firm, and adds the acquisition to its holding company simply to diversify its earnings. Outside the U.S. (e.g., in Japan), non-financial services companies are permitted within the holding company. In this scenario, each company still looks independent, and has its own customers, etc. In the other style, a bank would simply create its own brokerage division or insurance division and attempt to sell those products to its own existing customers, with incentives for combining all things with one company. Our range of products and services fall under the following three broad categories:

Infrastructure Banking Unit (IBU):

This unit provides a full range of advisory and credit linked products to clients with a special focus on the infrastructure sector. We meet the financial needs of clients operating in the Power, Telecom, Mining, Oil and Gas, Transportation and Wind Energy segments. We assist our clients to obtain funding for projects and also offer end- to-end advisory services from the planning stage to financial closure.

Structured and Project Finance Unit (SP & F):

The SP & F unit offers structured and project finance expertise to non-infrastructure clients. The areas of specialization include: a. Securitization- We provide solutions that offer companies access to strategic sources of fundingby converting assets with probable and predictable cash flows into a source of capital. This alters the risk profile of the corporate, provides the necessary liquidity and offers investors an opportunity to gain higher yields while taking acceptable risks. b. Structured Liability Products- The SP and F group, in conjunction with the Debt Capital Markets Group, offers liability products to a range of financial and retail clients in packaging, structuring and placing ABS, MBS, CLOs and CDOs to generate cost efficient liabilities for our clients. c. Debt- Syndication- We provide debt solutions from local and international markets to both private and public sector institutions. Our strong relations with Borrowers, other banks and Institutional investors help our clients to fulfil their desired financing requirements. d. Leverage Finance- This encompasses the origination, structuring, underwriting and participation through Funding in Leveraged Finance transactions, including leveraged Buy-Outs, Take-overs and General Acquisition Finance. e. Asset and Tax based structures- Comprehensive solutions to provide tax benefits, finance for physical assets and advisory services for leases.

Financial Restructuring Unit (FRU):

This unit provides specialized advisory services on financial restructuring, with expertise in the area of stressed assets. We offer our clients expert advice and creative product solutions to overcome balance sheet and financing contraints. The team also assists financially distressed companies in the creation and implementation of comprehensive financial restructuring packages.

Infrastructure Banking and Project Finance:

Driven by strong credit appraisal skills, knowledge based approach and experienced human capital, this team has created an identity in the infrastructure financing space. The IBPF team has deep understanding of the international best practices in infrastructure finance, due diligence and project structuring skills. The knowledge banking managers have proven project financing capabilities in several infrastructure sectors: Power Transportation Telecom Urban Infrastructure

The team had several marquee transactions to its credit, with some of the best names in the industry.

Structured Finance
The team leverages its strong regulatory and legal understanding to structure complex transactions, thus assisting clients in obtaining superior financial returns in a risk mitigated manner due to substantial knowledge arbitrage over the market. Landmark transactions in current financial year Providing Microfinance Institutions (MFIs) access to the debit capital market. Discounting of rental receivables Securitization transaction Agriculture loan pool buyouts Microfinance loan pool buyouts

Realty Banking
The team provides advisory and funding services like project conceptualization and structuring, JV partner identification, and raising/arranging financing in the commercial and residential real estate sectors across diverse geographies and Special Economic Zones. The team has successfully completed several transactions involving some of the best names in the industry since inception.

Advisory and Syndications

The team provides comprehensive syndication services to clients of Yes Bank. With its proven domestic and international banking credentials, the team caters to all the financing requirements of corporate as well as specialized financing for acquisitions, asset purchases, sell downs and leveraged buyouts. Yes Bank was ranked No. 21 in the Syndicated Loan Ranking (India) and No. 7 in the Syndicated Loan Ranking Indian Rupee Loans by Thomson Reuters.

Project Equity
The Private Equity team is furthering Yes Banks focus by developing specialist funds that will leverage the domain expertise that Yes Bank has built over the years. Currently, it is co-sponsoring the South Asia Clean Energy Fund (SACEF) in collaboration with Global Environment Fund, USA (GEF). SACEF is a USD 200 million fund targeting investments in clean energy, clean technology and energy efficiency across India, Sri Lanka, Nepal, Bangladesh.

OBJECTIVE OF THE STUDY

To know the various financial services of private banks. To know the method of banking. To know the banking and financial terms used in day-to-day life and which plays an important role in our life.

SIGNIFICANCE OF THE STUDY

The study is useful for the student as he/ she gained knowledge about various financial services of bank, the working of the bank and also about the competitors of the bank that plays an important role in the making and implementation of the strategy.

DEVELOPING COUNTRIES

HDFC BANK
HDFC Bank Limited (BSE: 500180, NSE: HDFCBANK, NYSE: HDB) is an Indian financial services company based in Mumbai, Maharashtra that was incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the first largest bank by market capitalization as of November 1, 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. As on December 2012, HDFC Bank has 2,776 branches and 10,490 ATMs, in 1,399 cities in India, and all branches of the bank are linked on an online real-time basis. As of December 2012 the bank had balance sheet size of Rs. 3837 billion. For the fiscal year 2011-12, the bank has reported net profit of 5,167.07 crore (US$940.41 million), up 31.6% from the previous fiscal. On March 14, 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider showing high ranking officials and some employees of HDFC bank willing to turn black money into white which is violation of Money Laundering Control Act. After this The government of India and Reserve Bank of India have ordered an inquiry.

HISTORY
HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation Limited (HDFC), India's largest housing finance company. It was among the first companies to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The Bank started operations as a scheduled commercial bank in January 1995 under the RBI's liberalisation policies. Times Bank Limited (owned by Bennett, Coleman & Co./The Times Group) was merged with HDFC Bank Ltd., in 2000. This was the first merger of two private banks in India. Shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to more than 1,000. The amalgamated bank emerged with a base of about Rs. 1,22,000 crore and net

advances of about Rs.89,000 crore. The balance sheet size of the combined entity is more than Rs. 1,63,000 crore.

BUSINESS FOCUS
HDFC Bank deals with three key business segments. - Wholesale Banking Services, Retail Banking Services, Treasury. It has entered the banking consortia of over 50 corporates for providing working capital finance, trade services, corporate finance, and merchant banking. It is also providing sophisticated product structures in areas of foreign exchange and derivatives, money markets and debt trading And Equity research.

WHOLESALE BANKING SERVICES

For customers from ongoleBlue-chip manufacturing companies in the Indian corp to small & mid-sized corporates and agri-based businesses the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of the above services to its corporate customers, mutual funds, stock exchange members and banks.

RETAIL BANKING SERVICES

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (Visa Electron) and issues the Master Card Maestro debit card as well. The Bank launched its credit card business in late 2001. By March 2009, the bank had a total card base (debit and credit cards) of over 13 million. The Bank is also one of the leading players in the merchant acquiring business with over 70,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments. The Bank is positioned in various net based B2C opportunities including a wide range of Internet banking services for Fixed Deposits, Loans, Bill Payments, etc.With Finest of Technology and Best of Man power in Banking Industry HDFC Bank's retail services have become by and large the best in India and since the contribution to CASA i.e. total number of current and savings account of more than 50%, HDFC BANK has full potential to become India's No.1 Private Sector Bank.

 TREASURY
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. These services are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

DISTRIBUTION NETWORK
HDFC Bank is headquartered in Mumbai and as of March 31, 2012, the Banks distribution network was at 2,544 branches and 8,913 ATMs in 1,399 cities as against 1,986 branches and 10000 ATMs in 996 cities as of October,2012.

CAPITAL STRUCTURE
The authorized capital of HDFC Bank is Rs550 crore (Rs5.5 billion). The paid-up capital isRs424.6 crore (Rs.4.2 billion). The HDFC Group holds 19.4% of the bank's equity and about17.6% of the equity is held by the ADS Depository (in respect of the bank's AmericanDepository Shares (ADS) Issue). Roughly 28% of the equity is held by Foreign InstitutionalInvestors (FIIs) and the bank has about 570,000 shareholders. The shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange. The bank's American Depository Sharesare listed on the New York Stock Exchange (NYSE) under the symbol 'HDB'.

TIMES BANK AMALGAMATION

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged withHDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved bythe shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisitionaddedsignificant value to HDFC Bank in terms of increased branch network, expanded geographicreach,

enhanced customer base, skilled manpower and the opportunity to cross-sell and leveragealternative delivery channels.

PROMOTER
HDFC is India's premier housing finance company and enjoys an impeccable track record inIndia as well as in international markets. Since its inception in 1977,the Corporation hasmaintained a consistent and healthy growth in its operations to remain the market leader inmortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC hasdeveloped significant expertise in retail mortgage loans to different market segments and alsohas a large corporate client base for its housing related credit facilities. With its experience in thefinancial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

FINANCIAL SERVICES
Working Capital Finance:
Turnover Less Than Equal To Rs.5 Crores HDFC Bank offers you a unique range of working capital facilities at your door-step. We offer affordable, convenient financial solutions which are of paramount importance in running an efficient enterprise. You can choose from the range of customized working capital loans for smooth business operations. Types of Working Capital Cash Credit / Overdraft Term Loan (TL) Letter of Credit (LC)

Bank Guarantee (BG) Packing Credit (PC) Post Shipment Finance Bill Discounting

Customer Segment: SMEs including Traders,Manufacturers , Service Enterprises, Retailers, Stockist, Distributors,Merchant Establishments,Departmental Stores, Supermarkets,

Restaurants, Multi Brand Outlets etc.

Products Offered
Quickdraw - Working Capital Facilities for Traders / Retailers ranging from Rs.2 Lacs to Rs.10 lacs in the quickest possible time Valuedraw - Working Capital Facilities from Rs.10 Lacs to Rs.25 lacs against wide range of collaterals adding more value to Business Elitedraw - Take your business to Elite heights with our Working Capital Solutions for from Rs.25 lac onwards against wide range of collaterals. Turnover Greater Than Rs.5 Crores Working Capital Finance is financial assistance given to entities to help them run their business. There are many different types of Working Capital Finance .These are offered at all our branch locations. Types of Working Capital Cash Credit / Overdraft Letter of Credit Bank Guarantee Buyers Credit Short Term Finance Packing Credit Post Shipment Limits

Bill Discounting Structured Cash Flow Financing

Working Capital For Contractors: Features And Benefits

Uses commercial/construction equipment as security collateral Quick processing of loan Attractive rate of interest Convenient facilities like Internet Banking and Phone Banking facilities Multi-location banking

Products Offered:
Fund based Cash Credit facility Overdraft facility Working Capital demand loan Bill/Invoice discounting

Non Fund based Bank Guarantee (BG) Letter of Credit (LC)

Commercial/ Construction Equipment Finance: Features

Avail Commercial/ Construction Equipment Finance on an entire range of equipment at attractive interest rates

Choose among various types of loans that suit your business requirements

There is no need to shop around anymore for loan options to purchase Commercial/ Construction equipment, Earth Moving, Material handling Equipment, Term loans, Working Capital requirements, Bank Gurantee or LC, that your business may require. Choose HDFC Bank's Commercial/Construction Equipment Loan and you will get the best terms and interest rates. You may avail of a finance facility for your required equipment from any of your preferred manufacturers including JCB, Telcon, L&T Komatsu, Caterpillar, Volvo, Escorts, Case, Schwing Stetter, Hyundai, Terex, Ace, Liugong, Greaves, Sany, Putzmeister, Atlas Copco, Apollo and many more. We offer: New/Used Commercial/Construction Equipment Loans Working Capital Finance CC & OD facilities Bank Guarantees/LCs Bill Discounting / LC discounting Inventory Funding /Trade advance/ CC /OD for Dealers Payment Solution, Cash Management Services & Forex Solutions, etc.

Benefits
Receive up to 100 % finance for your Commercial/ Construction Equipment* Take advantage of some of the best interest rates along with Speedy processing of loan.

You can avail of the following benefits on our Construction Equipment Finance: Up to 100% financing of Construction Equipment* Attractive interest rates* Up to 60 month tenure for loan* Simpler documentation and quick processing

Reduced down payments Customized EMI structure to suit your business needs

Working Capital Finance To Transporters: Features And Benefits

Loan amount from Rs.25 lacs onwards Taking Commercial Vehicle as security collateral Internet Banking & Phone Banking Facilities Multi-Location Banking Easy documentation through the different process Fast processing that helps at every level Benefits of at par cheque facility

Products Offered:
Fund based Cash Credit facility Overdraft facility Working Capital demand loan Bill/Invoice discounting

Non Fund based Bank Guarantee Letter of Credit

Term Loans: Features

Customised products to meet your requirements

Products offered at all branch locations

Benefits
Low-cost credit Cash-flow financing

Term Loans are offered to businesses up to a tenure of 5 years for their expansion, capital expenditure and for fixed assets. HDFC Bank also offers Short Term Finance options that are structured to meet your individual needs.

Business Loans:
These funds can be used for business expansion, working capital, your child's education or home renovation No collateral or guarantor surety required. A guarantor becomes a co-endorser and assumes liability in event of default.

Features
Unsecured Loan to self employed businessmen involved in Manufacturing, Trading and Service Industry. Loan Amount up to Rs.15 Lakhs. (Up to Rs.30 Lakhs in selected locations). Flexible repayment options ranging from 12 36 Months. Hassle free processing. Speedy loan approval. Convenience of Service at your doorstep.

Benefits
The funds can be used for business expansion, working capital, child's education or home renovation. No collateral/ Guarantor/ Security required.

Business Loan- Drop Line Overdraft

Get unsecured DOD upto Rs.5 lac. Pay interest only on utilised amount.

Features
Unsecured Drop-line Overdraft facility Interest will be charged on utilisation Convenience of service at your doorstep

Benefits
The funds can be used for business expansion, working capital, child's education or home renovation No collateral/ guarantor/ security required

Loans For Professionals Features

Hassle free processing Speedy loan approval Convenience of service at your doorstep

Benefits
The funds can be used for business expansion, renovating your hospital/clinic/office, buying new medical equipment, working capital, child's education or home renovation No collateral/ Guarantor/ Security required

Loans Against Assets:

Loan Against Securities

Get liquidity from your investments, without selling them Get upto 80% loan against the value of your securities. Term loans on select securities offered too.

Loan Against Property

Do you own a property? Why not avail a loan against it? Lower EMI owing to long repayment tenure Flexible product offering Term Loan & Overdraft facility available Residential and commercial both types of properties accepted.

Loan Against Rental Receivables

Maximize the benefits of future rents on your commercial property today. Get additional funds through expected rental cash flows for growing your business, funding personal requirements or adding to an existing loan.

Healthcare/ Medical Finance: Features And Benefits

Customised and structured solutions Tenures that range between 12 to 84 months Competitive Solutions at competitive prices

Types Of Loans
Asset / Medical Equipment Finance Infrastructure Loan Balance Transfers of existing Term Loans or Working Capital

ME-OD Facility

CONCLUSION
There is a stiff and tough competition in the private sector banking and especially cutthroat level at Retail Banking section. The services offered by various banking sections such as Credit Card, Debit Card, ATMs, Savings Banks Account, Current Account and so on enable me to find out what the customer of today thinks about the services the banks are providing and made a significant distinguish between what the performance of Yes Bank to that of the HDFC Bank and how prompt they are. Also, I learn how to make out and induce customers about the prospects of an organization upon which he is going to save his/ her deposits for a considerable period of time.

DEVELOPED COUNTRIES

Introduction
In this age of information technology, electronic communication is the cornerstone of a country for its business, every government agency and economy. Modern banks play a pivotal role in promoting economic advancement of a country. Electronic banking is a modern banking system that delivers the new and traditional banking products and services to the customers electronically. Electronic banking systems allow business parties or individual to pay directly or to debit accounts via telecommunication systems. It provides users, working with a home computer attached by network to their bank, with the ability to authorize payments, reconcile accounts, and access a variety of other banking services with the help of ATM (Automated Teller machine), visa card, master card, Q-cash, E-cash, Ready cash, mobile, internet etc. This paper represents the scenario of electronic banking in Bangladesh how it is up surging, makes our country with more state of the art facilities and also highlights some drawbacks and recommendations of overcoming the drawbacks of electronic banking. The number of customers who choose Internet banking as their preferred method of dealing with their finances is growing rapidly. Online banking (or Internet banking) is a term used for performing transactions, payments etc. over the Internet through a bank's secure website. First-ever online Banking system was introduced in the American Bank namely Wells Fargo Bank of California back in the year 1990 and within a few years of launching, this banking system got momentum worldwide. Now almost all the big-size banks in Europe, America and in other parts of the world introduced on-line banking to provide 24-hour automated services to their constituents. In Bangladesh Standard Chattered (2000) first introduced online banking service. This can be very useful, especially for banking outside bank hours (which tend to be very short) and banking from anywhere where Internet access is available. Online banking isn't out to change the usual money habits. Instead, it uses today's computer technology to give the option of bypassing the time-consuming, paper-based aspects of traditional banking in order to manage our finances more quickly and efficiently. The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry. For years, financial institutions have used powerful computer networks to automate millions of daily transactions. Today, often the only paper record is the customer's receipt at the point of sale. Now that its customers are connected to the

Internet via personal computers, banks envision similar economic advantages by adapting those same internal electronic processes to home use. The challenge for the banking industry has been to design this new service channel in such a way that its customers will readily learn to use and trust it. After all, banks have spent generations earning our trust; they aren't about to risk that on a Web site that is frustrating, confusing or less than secure. Today, most large national banks, many regional banks and even smaller banks and credit unions offer some form of online banking, variously known as PC banking, home banking, electronic banking or Internet banking. Those that do are sometimes referred to as "brick-to-click" banks, both to distinguish them from brick-and-mortar banks that have yet to offer online banking. Banks view online banking as a powerful "value added" tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment. In this report we will talk about the Online Banking System of Hong Kong and Shanghai Banking Corporation (HSBC) Ltd. in Bangladesh. It will also include the possibility of the growth of online banking system in our country.

The Organization
HSBC

The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 in Hong Kong and Shanghai. It is one of the largest banking and financial services organizations in the world, with well-established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. HSBC is an old company with a very young brand identity. It is only since 1998 that HSBC has operated under a single brand name combined with the graphic hexagon logo. Even more recently, in 2002, a positioning statement for the brand was developed and added to the name and graphic logo. The worlds local bank has come to sum up HSBCs role in financial services, globally. Over the past decade HSBC has built one of the strongest and most relevant brands in the world today, ranked number one by Brand Finance Top 500, The Banker, for the third year in a row (2007, 2008, 2009) and the highest rated bank in the Interbrand annual survey of the Best Global Brands (2009).

HSBC IN BANGLADESH

The HSBC Group is represented in Bangladesh by its Head Office in Dhaka (Sonargaon Road), a second full-service branch in Chittagong (Agrabad) and two booths in Gulshan and Motijheel with a vision to satisfy its customer with high quality service that reflects its global image as the premier International Bank. The Bank has recently opened another branch in Dhanmondi. The Bank has been serving customers in Bangladesh since 1996. It has also an Offshore Banking Unit, which provides banking services for foreign companies based in the Export Processing Zones in Dhaka and Chittagong. HSBC has been offering Internet banking service from 2001 in Bangladesh.

Name of the Organization Year of Establishment Head Office Nature of the organization Shareholders

The Hong Kong Shanghai Banking Corporation Bangladesh LTD 1996 Anchor Tower, 1/1-B Sonargaon Road, Dhaka-1205. Multinational company with subsidiary group in Bangladesh HSBC group shareholders Internet Banking Savings & deposit services Loan products Corporate and Institutional services Trade services Hexagon Mr. David C. Griffith (Chief Executive Officer) Mr. Mamoon Mahmood Shah (Head of Personal Financial Services) Mr. Adil Islam (Head of Corporate Banking) Mr. Syed Akhtar Hossain Uddin (Human Resource Manager) Mr. Munir Hussain (Marketing Manager) Mr. Wasim Adnan Wahed (Chief Operating Officer) 5 10 www.hsbc.com.bd 200 Offers full online banking from branch to branch and also from Dhaka to Chittagong. & Serves individual and corporate customers within Dhaka & Chittagong.

Products

Management

Number of Offices Number of ATMs Online Address Number of employees Technology Service Coverage Customers

Services Offered Over Online

Internet Banking service is a great way to save a trip to the high street, it's secure and best of all it's free customer only pay for the cost of accessing the internet. With HSBC Banking Account, it is no longer necessary to call the Bank or go to any of the branches/ATMs. Just need logon from HSBC web page from ANY appropriate Internet enabled PC.
View balances and transactions Make payments to other HSBC accounts Manage your standing orders and Direct Debits Statements can be downloaded Transfer money between your accounts Update personal details, including mailing address and email address Thoose the frequency of paper statements or stop them all together All 24 hours a day. Paying bills any time of day and night is as easy and accessible than ever before with HSBC online services. Bangladesh Telephone & Telegraph Board Dhaka Electric Supply Company Ltd. Dhaka WASA Grameenphone Ltd. Robi Banglalink gsm Citycell American Life Insurance Co Ltd.

ELIGIBILITY FOR INTERNET BANKING BANGLADESH

Any individual customer can apply for using Internet Banking service. Both retail and corporate customer must have these following eligibilities to use online service.
Customer must have a Current and Savings account with HSBC. Customer submits filled in Internet Banking Application Form

Customer agrees (through signing) that he read and understood the terms and conditions of Online Banking and agrees to follow those. After fulfilling these terms user is given a User ID and Password to log on in the banks secure website and do online banking. This ID and Password are unique secret words/characters to each user to ensure confidentiality. A customer needs both of them to login into the web page.

Technological Setup for Online Banking Systems

Online banking is possible only if the concerned branches are linked through Wide Area Network (WAN). Although most of the branches in Bangladesh have introduced computerization, the software is not yet, in most cases, centralized. Centralized software ensures better security, strong monitoring system and easy accessibility of data at Head Office level of a bank. In case of HSBC, they strictly maintain a central database in regional Head office of Hong Kong as well as in Dhaka. Thus, they always have a backup database to use in case of emergency and unavoidable circumstances. Unfortunately the indigenously developed software, which is currently in use in the local banks, is not in a position to respond to the ever-increasing demand of the clients. Apart from this, for connecting the individual branches HSBC has a centralized communications system with the help of HUB (HSBC Universal Banking System). HUB is developed by the programmers who extensively work for HSBC. These highly skilled programmers are devoted to overall HSBC software and networking system throughout the world (United Kingdom, USA Mainland, China and Hong Kong, Africa, Middle East). HSBC networking system has already come up with its concurrent communication infrastructure. Therefore, they have already synchronized their setup with all available connectivity.

A few years back, HSBC got an opportunity to have Fiber Optics connectivity, which could provide a range of multifarious communication facilities in information and Communications Technology (ICT) including worldwide Internet faster accessibility. Because of its folly, HSBC could not take advantage of the Fiber Optics system, which it could probably get free of cost if HSBC decided in favor of it a few years back. Although HSBC have finally agreed to go for Fiber Optics communication system, they have to fairly a high price for the service now and the whole thing has been delayed by a couple of years. So, in the absence of Fiber Optics communication system HSBC currently using radio link, DSL for connectivity between short distanced local HSBC banks and VSAT (Very Small Apertures Terminal) for long distanced branches like Chittagong to Dhaka. For Real-Time Online system which will allow the clients to hit their accounts with the bank, HSBC need centralized ISO standard world class computer software, which is again rather expensive and only a few banks in our country have so far been able to afford such highly efficient software and HSBC is one of the leading pioneer in this regard. Many of the local banks are currently in the process of procuring such world-class software. Banks in Bangladesh are in a transition period. Only a few banks, which could by now acquire world-class centralized computer software, are in position to provide real-time online facilities to the clients. Most of the other banks are on offline banking system, which implies that the clients can still draw cash from a branch having an account in some other branch with or without an arrangement with the bank. Only after procuring world-class centralized software all the banks will be able to provide realtime online banking facilities to the clients.

HSBC Network Function

Internet offers the Banking industry a global inexpensive delivery mechanism for online banking. The rapid growth of internet banking driving the need for scalable, reliable, and flexible e-Banking systems. To meet performance and scalability requirements of growing user populations Banks are forced to find alternative systems that meet current needs and can scale to meet anticipated user growth over the next 3 to 5 years without disruption. From the stand point of HSBC, the picture remains the same. But relying on internet has never been easy for security reason and HSBC is adequately concerned about this factor. Keeping this key factor HSBC has organized its whole network system accordingly. From the major financial centers of the world to the remote branch locations, HSBC uses one hardware platform family from a single vendor. Using one architecture and being able to control the network from a single point, HSBC can dramatically reduce the network management resources required. Thus it helps to concentrate on solving problems with network management resources. They concentrate on solving problems with carriers and maximizing the use of their bandwidth. The HSBC Group Wideband Network (GWN) offers an integrated suite of services that supports the primary communications requirements of HSBCs regional and local subsidiaries, including Hong Kong Bank. The GWN employs a variety of different types of digital circuits from over 30 international and domestic carriers, including fractional T1/E1 services. The GWN uses General DataComms Transport Management System (TMS) 3000 and Office Communications Manager (OCM) internetworking platforms for its core technology. The GDC products integrate and manage each offices voice, fax and data applications. Each Group subsidiary has very different telecommunications needs, which HSBC has integrated using a single family of products from GDC. By standardizing on the GDC OCM platform, the HSBC Group is consolidating all voice and data traffic onto common high-speed digital links and bringing the sophistication of the network backbone down to the branches, regardless of their location.

Using the OCM, HSBC can extend the network anywhere in the world, interconnect buildings at T1 and E1 transmission rates, and offer seamless integration between computer centers, head office buildings and branches. This can offer in-house T1 or N x 64 Kbps lines within a building.

ABOUT THE OCM

The GDC Office Communications Manager is an internetworking platform that integrates voice, fax, data, fractional channels, LAN and Frame Relay onto one common hardware and management platform. The OCM is available in several versions (each either standalone or rack mountable), and in either point-to-point configuration or as a multi-aggregate feeder platform feeding services to a TMS 3000.

CENTRALIZED MANAGEMENT
The GWN is centrally managed, using GDCs PC-based network management software, from the Global Data Network Control Center (GDNCC) in Hong Kong Banks radically-designed Head Office at 1 Queens Road Central in Hong Kong. In the event of a disaster, the entire network can be administered, using the same corporate procedures, from Buffalo, London or Hong Kong, within minutes. In Asia things move rapidly for HSBC. It is using GDCs TMS and OCM products on top of national carrier, alternative carrier and its own private VSAT service to provide a reliable and highly managed network to deliver banking products to its customers. HSBC has been in Asia for well over a century and are very familiar with the way business is conducted here. Rapid and reliable service is a must. The GDC OCM makes it easier to deliver such service in a controlled fashion. In HSBC Bangladesh Head office, there is a central database, which is synchronized to Hong Kong and Shanghai Bank through VSAT. Besides, Hong Kong Head Office can maintain monitoring through VSAT in different time shift. As VSAT has efficient bandwidth for online transaction therefore, it makes the transmission smoothly. HSBC networking system has already coped up with its concurrent communication infrastructure. Therefore, they have already synchronized their setup with all available connectivity.

At individual level HSBC provide Hexagon software (now its distribution is limited) for users to access their server. User is given a range of number through which he/she can get access to the HSBC account for necessary information and action. Users have to have the following components to login into HSBC server. Although logging from HSBC online server is also possible. Using a unique Internet Banking ID with First, Fourth and Last security number any online account holder can log in to his account. Users are instructed through proper guidelines provided by HSBC to make sure privacy is well kept. They maintain this commitment to data security by implementing appropriate physical, electronic and managerial measures to safeguard and secure the personal data. The secure area of the website of HSBC supports the use of Secure Socket Layer (SSL) protocol and 128-encryption technology an industry standard for encryption over the Internet to protect data. When customer provides sensitive information such as credit card details, it will be automatically converted into codes before being securely dispatched over the Internet. Besides SSL there are constantly active firewalls to prevent unauthorized access.

SWOT Analysis
STRENGTHS

Strong Corporate Identity: HSBC is the leading provider of financial services worldwide. With its strong corporate image and identity, it can better position in the minds of customers. This image has helped HSBC grab the personal banking sector of Bangladesh very rapidly. Distinct Operating Procedures: HSBC in known worldwide for its distinct operating procedure. The company is managing for Value strategy had better satisfy customers needs and keeps the firm profitable time. Secured Security System: HSBC has a 21 layers of security system. So it is fully safe to do online banking with HSBC. Efficient Performance: HSBC provides hassle free customer service to its client base comparing to the other financial institutions of Bangladesh. Personalized approach to the needs of customers is its motto. Modern Equipment & Technology: HSBC owns the best banking and information technology equipments in Bangladesh. It ultra modern banking systems starting from terminal pcs to HUBs are based on the international HSBC group standards and are the latest.
WEAKNESSES

Narrow Operating Span: HSBC has a very narrow operating span in Bangladesh. It has only two full service branches in Bangladesh situated only at Dhaka and Chittagong. Absence of Strong Marketing Activities: Internet can be used for extensive marketing activities where HSBC seemed to be lagging behind. Gaining Mass Customer Confidence: Internet Banking in Bangladesh is getting more and more popular but still a large number of customers dont have that confidence about it. HSBC also didnt succeeded to gain the confidence of a big number of customers about using their internet banking.

OPPORTUNITIES

Countrywide Network: The ultimate goal of HSBC is to expand its operations to whole Bangladesh. Nurturing this type of vision & mission & to act as required, will not only increase HSBCs profitability but also will secure its existence in the long run. As a result, more people will know about their Internet banking service and will use it for their convenience. More Personal Banking: There are so many services that are still awaited to be offered through internet banking. As a matter of fact in other countries Global HSBC already offered such services. These can be introduced in Bangladesh as well. THREATS

Upcoming Banks: The upcoming private local & multinational banks posses a serious threat to the existing banking networks of HSBC. Some local private banks like Eastern bank Ltd, Dutch Bangla Bank, Dhaka Bank is truly offering good Internet banking to their customers. It is expected that in the next few years more commercial banks will emerge. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against and win the battle of banks. Hackers: Hackers are the main threat for any bank that is serving Internet banking service. It is the main reason of the customers for not being interested to use Internet banking.

Losing Customers: Absence of various products and services over internet is causing various customers to detract from HSBC. This is a serious threat for HSBC Bangladesh.

Recommendations
Now days internet banking has proved to be the most prospective concern for any bank. Some valuable issues for HSBC regarding the online banking are discussed in this part of recommendations. These were the aspects that came out while working for the report. Such general recommendations are discussed below:
The management of HSBC should regularly administer marketing research activities in order to keep a regular track of consumer satisfaction levels with the online banking.

HSBC should actively manage the complaints of various customers and encourage customers to give feedback about the services. Research showed that this strategy will radically improve the overall online banking. Individual attention should be given to customers in order to understand their needs properly. When customers come with their problems they should be well focused. As HSBC provides services from only 5 branches throughout Bangladesh new branches should be constructed to serve more geographic service.