A PROJECT REPORT

ON
SERVICE EXCELLENCE AND MARKET
COMPETITIVENESS:
A CASE OF HSBC BANK

UNDER THE GUIDANCE OF:

MR. VARUN SRIVASTAVA
AREA SALES & SERVICE MANAGER

SUBMITTED BY:
PUSHNEET SINGH BHATIA
ROLL NO.-0621001627
MODULE-6
SPECILIZATION: MBA/MARKETING

INSTITUTE OF MANAGEMENT TECHNOLOGY

(CENTRE FOR DISTANCE LEARNING)
GHAZIABAD

ACKNOWLEDGEMENT

Through this research I have tried to develop an understanding of the importance of

services in the banking industry. I also learned about the service standards applicable
in HSBC and also got to study the comparative analysis of various banks (HSBC
Bank, Citibank and ICICI Bank) on the basis of service. Several people played a
significant role towards the successful completion of my research. I would like to take
this opportunity to thank them all.
There are several individuals, who facilitated me in undertaking my research work. To
start with, I want to thank my External Guide Mr. Varun Srivastava Area Sales &
Service Manager for guiding all the way throughout my project and helping me even
in the smallest of my problems. I would also like to thank all my colleagues for their
co-operation and for bearing me with all my faults and failures. Lastly, and most
importantly I would like to thank all the Branch Managers for their support. Without
the co-operation all the above mentioned people, this project would surely have not
been a success. I thank you all once again.

PUSHNEET SINGH BHATIA

EXECUTIVE SUMMARY
The customer service study revealed that no specific tactic, technology, or mission
statement is the key to effective customer service delivery. In fact, what is clear is that
effective customer service delivery is organization specific, since services are
designed around the targeted customers desires and the frontline employees
delivering the services. The components of the process for producing effective
customer service delivery include appropriately identifying and targeting the ideal
customer, establishing a customer-focused vision that is consistent with the prioritized
desires of the target customers, establishing the operational procedures and internal
infrastructure that support customer service, continuously measuring customer and
employee satisfaction, embracing change, and striving persistently to improve. The
customer service literature clearly demonstrates that both profit-seeking and public
agencies that implement effective customer service strategies realize financial
benefits, either through increased profits or through reduced costs associated with
long-term, informed customers; customer referrals; employee retention; improved
information exchange; and streamlined service delivery
Thus service excellence assumes utmost importance in any industry. It can help an
organization to gain an edge over its competitors by providing better services to its
customers and satisfying their need so as to keep them loyal towards their
organization and do great business for the organization.
In this respect platform service of the banks proved to be of great help to any banking
institution to provide better services to its customers. A comparative analysis of banks
would help in coming to an ultimate conclusion about the service levels of various
banks. We have conducted Exploratory Research, wherein we have used Observation
Method and Secondary Data Collection. In this research of comparative analysis of

various banks(HSBC Banh, Citibank and ICICI Bank), I made an attempt to find out
the difference in the three banks on the basis of services provided by them and also
the preference of customers to bank with which particular bank.
The study is a modest effort towards preparing a report, which lays down the role of
how HSBC Bank makes its customer happy in the present scenario.
As per web definition, service that exceeds the needs and expectations of the
customer is called service excellence. It is no coincidence that bank, which focus on
the customer and invest in their staff, are the market leaders in their sectors.
Customer service representative roles is to actively communicate with customers to
ensure the Bank delivers the products and services that help them achieve their
financial needs and lifestyle goals.

TABLE OF CONTENT
CHAPTER 1

CHAPTER 2

INTRODUCTION

1-7

History of Banking in India

7 Ps of Marketing

2
5

LITERATURE REVIEW

8-36

HSBC: Company Profile

Depositary Receipts

HSBC

Power

Vantage

12

Financial Planning Services

13

HSBC Business Select

14

An Exclusive Relationship Manager

14

Preferential Pricing on Trade Services

14

Preferential Pricing on Foreign Exchange Rates

15

FREE Internet Banking for Businesses

15

FREE Business Phone banking

15

FREE special ATM card

15

Cluster Deposits

15

Smart Money Account

16

Mutual Funds

16

CHAPTER 3

CHAPTER 4

CHATPER 5

Service Excellence

17

Platform Services

20

Service expected by Customers

21

Comparative Analysis of Various Banks

23

Customer delight

23

Customer delight at HSBC

29

Wealth Management

32

The Wealth Management Process

32

Products and Services

34

Investment Products

35

OBJECTIVE & METHODOLOGY

37-41

Objective

38

Scope Of The Study

38

Significance Of Research

38

Research Design And Methodology

39

DATA ANALYSIS

42-60

Analysis Of Platform Services Of HSBC

43

Fishbein Model

50

Multi Attribute Model Of Attitude

51

SWOT Analysis: HSBC Bank

58

CONCLUSIONS

Limitations

61-64
64

CHAPTER 6

RECOMMENDATIONS & SUGGESTIONS

65-68

CHAPTER 7

BIBLIOGRAPHY

69-70

CHAPTER 8

APPENDICES

71-76

Questionnaire

72

Platform Services

75

LIST OF TABLE
Table no.

Particulars

Page no.

1.

Multi attributes Model of Attitude

51

LIST OF FIGURES

Figure no.

Particulars

Page no.

1.

Did the staff greet you

44

2.

The staff try

45

3.

The staff excuse himself before attending

46

4.

Staff Polite

47

5.

Would you like to be invited to the branch events

48

6.

Customers preferences for using various services

49

7.

Preference to Bank with a Particular Bank

53

8.

The Preferences of Customers

54

9.

Particular Bank Needs Improvement

55

10.

Comparison of customer base of different banks

57

CHAPTER -1
INTRODUCTION

INTRODUCTION
History of Banking in India
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and
internal factors.
For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact, Indian banking
system has reached even to the remote corners of the country. This is one of the main
reasons of India's growth process. The government's regular policy for Indian bank
since 1969 has paid rich dividends with the nationalization of 14 major private banks
of India. Not long ago, an account holder had to wait for hours at the bank counters
for getting a draft or for withdrawing his own money. Today, he has a choice. Gone
are days when the most efficient bank transferred money from one branch to other in
two days. Now it is simple as instant messaging or dial a pizza. Money has become
the order of the day.
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
Early phase from 1786 to 1969 of Indian Banks
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.

10

 New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II
and Phase III.

Phase I
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank
of Bombay (1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank
of India was established which started as private shareholders banks, mostly
Europeans shareholders.
In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab
National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906
and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian
Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935.
During the first phase the growth was very slow and banks also experienced periodic
failures between 1913 and 1948. There were approximately 1100 banks, mostly small.
To streamline the functioning and activities of commercial banks, the Government of
India came up with The Banking Companies Act, 1949 which was later changed to
Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision of
banking in India as the Central Banking Authority.

11

During those days public has lesser confidence in the banks. As an aftermath deposit
mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. It formed State
Bank of India to act as the principal agent of RBI and to handle banking transactions
of the Union and State Governments all over the country.
Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on
19th July, 1969, major process of nationalization was carried out. It was the effort of
the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in
the country were nationalised. Second phase of nationalization Indian Banking Sector
Reform was carried out in 1980 with seven more banks. This step brought 80% of the
banking segment in India under Government ownership.

Phase III
This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. Time is given more
importance than money.

12

The financial system of India has shown a great deal of resilience. It is sheltered from
any crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the foreign
reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.

7 Ps of Marketing
A comparative analysis of marketing strategy of public, private and foreign banks
with respect to 7Ps of marketing viz. Product, place, promotion, price, people,
physical evidence and procedures have revealed the following findings. The analysis
of the product related strategies of public, private and foreign banks, with respect to
their products and services reveal that PUBS generally offer services which are
traditional in nature. The strategy adopted is modification in the existing products.
On the other hand, PVTBS have diversified into other innovative areas like home
banking, tele-banking, factoring, anytime banking, anywhere banking etc. similarly,
the FBS have transcended the usual banking practices , they are now onto On line
banking, banking on the net , global banking etc. Innovation is the keyword for the
FBS.
The analysis of place related strategies of PUBS, PVTBS and FBS reveals that
public sector bank have chosen a nook and corner strategy of providing banking
services to a large customer base whereas PVTBS have opted for a fewer bank
branches strategy which is concerned with the branches to be established in select
cities to have opted for Selective and effective network strategy.
The promotion related strategies of various categories of banks reveal that public
sector banks are quite indifferent towards promoting their products/services. They
adopt a strategy of lesser investment in promotional expenditures. PVTBS are into a

13

vigorous promotional strategy which emphasizes on personalized sales, pioneer

advertising, product demonstration etc. FBS concentrate on promotional activities
which stress upon relationship banking. This strategy helps a bank to convert single
services users into multi-user clients.
The price related strategies of various categories of bank sector reveals that PUBS
have adopted a lower pricing strategy for their customers. PVTBS, on the other
hand use the cost base pricing method which maximizes their profits. The bank
follows a strategy of price discrimination as per the type of the customer. FBS uses
the high pricing strategy to establish a relationship between price and quality. None
of the three bank categories consider the pricing option which prevents competition.
Moreover 1ai-gefbased method is also not used by any of the banking sectors.
The analysis of people related strategies reveals that PUBS believe in huge
workforce strategy, whereas, PVTBS opt for the quality of workforce strategy.
FBS similarly adopted the strategy of a limited workforce. All the three banking
sectors invest heavily in their employees and as such training is a regular feature in
the banks. Though the nature and purpose of training varies from sector to sector.
Moreover, FBS and PVTBS are found to be providing highly lucrative incentive to
their employees as compared to PUBS.

14

The analyses of physical evidence related strategies reveal that PUBS have started
loosing their evidence in the modern day economies whereas on the other hand
PVTBS and FBS have started gaining more relevance; hence their physical evidence
is constantly increasing.
The analysis of procedure related strategies reveals that as far as PUBS are
concerned they generally follow traditional procedures of doing work. On the other
hand PVTBS and FBS are aiming at providing faster and efficient services to its
customers to win their confidence. The FBS in this respect come out with new
technology and better ways of satisfying customers than its competitors.

15

CHAPTER -2
LITERATURE REVIEW
16

LITERATURE REVIEW
HSBC: Company Profile
Headquartered in London, HSBC Holdings plc is one of the largest banking and
financial services organizations in the world.
The HSBC Group's international network comprises some 6,500 offices in 78
countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle
East and Africa.
With listings on the London, Hong Kong, New York and Paris stock exchanges,
shares in HSBC Holdings plc are held by around 190,000 shareholders in some 100
countries and territories. The shares are traded on the New York Stock Exchange in
the form of American

Depositary Receipts
Through a global network linked by advanced technology, including a rapidly
growing e-commerce capability, HSBC provides a comprehensive range of financial
services: personal, commercial, corporate, investment and private banking; trade
services; cash management; treasury and capital markets services; insurance;
consumer and business finance; pension and investment fund management; trustee
services; and securities and custody services.

150 Years in India

The antecedents of the HSBC Group in India can be traced back to October 1853
when the Mercantile Bank of India, London and China was founded in Bombay (now
Mumbai). Starting with an authorized capital of Rs 5 million, the Mercantile Bank
soon opened offices in London, Madras(Chennai), Colombo and Kandy, followed by
Calcutta(Kolkata), Singapore, Hong Kong, Canton(Guangchow) and Shanghai by
17

1855. The following hundred years were in many ways propitious for the Mercantile
Bank. In 1950 it moved into its new head office building in Mumbai. at Flora
Fountain.
The acquisition in 1959 by The Hong Kong and Shanghai Banking Corporation
Limited of the Mercantile Bank was a decisive factor in laying the foundation for
today's HSBC Group. Founded in 1865 to serve the needs of the merchants of the
China coast and finance the growing trade between China, Europe and the United
States, HSBC has been an international bank from its earliest days.

After the

Mercantile Bank was acquired by The Hong Kong and Shanghai Banking
Corporation, the Flora Fountain building became and remains to this day, the Head
Office of the HSBC Group in India.
Through the 1990s, HSBC has vigorously developed its role as one of the leading
banking and financial services organizations in the world. Its strategy of 'managing
for value' emphasizes the Group's unique balance of business and earnings between
older, mature economies and faster-growing emerging markets. HSBC in India is
proud to have retained the Group's pioneering streak by being an active partner in the
development of the Indian banking industry - even giving India its first ATM way
back in 1987. The organizations adaptability, resilience and commitment to its
customers have further enabled it to survive through turbulent times and prosper
through good times over the past 150 years.
HSBC's Wealth Management Services offer you a reliable partnership that takes care
of all your personal and business banking requirement

HSBC Premier
HSBC Premier offers banking and financial solutions tailored to your needs

18

A Dedicated relationship Manager

Your dedicated HSBC Premier Relationship Manager will assist you in managing
your wealth after understanding your current needs, your risk profile and your future
financial goals.

24/7 Banking Service

HSBC Premier offers you unmatched global privileges and priority services 24 hours
a day 7 days a week, ranging from international banking services to emergency
banking, home banking and more.

HSBC Premier Centers worldwide

HSBC Premier welcomes you at over 9,500 offices in 76 countries and territories. As
an HSBC Premier customer, find your needs fulfilled at dedicated HSBC Premier
centre worldwide; whether it is cash abroad or a breather from a hectic day.

Eligibility
An aggregate of Rs 25 lakhs in a combination of deposits, investments and loans.
A minimum of Rs 20 lakhs in deposits (savings / current account / fixed deposit)
and/or investments (mutual funds).
The remaining Rs. 5 lakhs of the relationship can comprise loans from the bank.
OR
NRIs with minimum deposit / investment holdings of Rs 25 lakhs.

HSBC Power Vantage

A Power Vantage Relationship Manager to assist you in your banking and financial
planning needs
Personal Financial Review helps you to evaluate your finances, identify your current
and future financial needs and assist you in drawing up a plan to meet them.

19

Unlimited Free Transactions (Cash withdrawals and balance enquiries) at 15,000

HSBC and non-HSBC Visa ATMs in India using your Power Vantage debit card.
Dedicated Service Desk and Teller Counters to assist you with your banking needs,
enabling you to save time.

Higher Cash Withdrawal limit of up to Rs.50,000 and funds transfer up to

Rs.100,000 with your Power Vantage debit card, across 15,000 HSBC and nonHSBC Visa ATMs in India and close to 1 million ATMs overseas.

Use your Power Vantage debit card for purchases of up to Rs.25,000 per day at
over 250,000 merchant establishments in India and over 13 million such
establishments overseas.

Free Cheques Payable at Par (CPP) facility in all cities where HSBC has branches,
helping you save on out-station clearing time and costs.

No-bounce cheque Protection which means cheques presented through clearing

irrespective of funds available, will be honored (overdrawing of a maximum of
Rs.10,000)**.

Monthly Composite Statement giving you a snapshot of all deposits and loans.

Joining fee waiver and 50% off on the annual fee for your credit card.

Eligibility
To be eligible for Power Vantage, all you have to do is maintain an overall average
quarterly balance of Rs. 100,000 as a combination of deposits and loans with a
minimum of Rs. 50,000 in deposits.
OR

20

 Take a home loan from HSBC.

OR
Hold a minimum investment of Rs 500,000 purchased through HSBC.
To experience these exclusive advantages, tailor-made to your needs open a Power
Vantage account today.

Financial Planning Services

Inflation, falling interest rates and fluctuating market conditions require you to plan
your finances carefully. Celebrate important occasions in the future by managing your
wealth well now. HSBC's Financial Planning Services offer assistance to secure your
future.
Our financial planning services are available for existing HSBC customers and are
free of cost.

21

HSBC BUSINESS SELECT

An Exclusive Relationship Manager

Business Select provides you with a dedicated personal Relationship Manager to
understand your financial needs. So whether you're looking for cash management
solutions, trade related services, or simply cash pick-up from your business premises,
the personal attention your relationship manager provides is invaluable in helping you
choose the right solutions.

Preferential Pricing on Trade Services

As our valued customer, you can enjoy our local expertise and global reach in
handling your trade business, including a complete range of products that would
facilitate all your export and import transactions. These include Export and Import
Collections, Documentary Credit (or Letter of Credit) issuing, advising and
confirmation, negotiation of your Export Bills and Remittances. All this at specially
discounted prices!

FREE Cashier's Orders

Enjoy the benefit of free Cashier's Orders payable at any HSBC in India.

Business Doorstep Banking

Transact from the comfort of your cabin with Business Doorstep Banking. Cash,
cheques and drafts can be picked up from or delivered to your office absolutely
free of cost.

Preferential Pricing on Foreign Exchange Rates

22

With our global network, we not only ensure that your foreign exchange transactions
are seamless but also provide you with preferential rates on all your foreign exchange
remittances routed through us.

No Bounce Cheque Protection

Business Select offers you a no-bounce limit of up to Rs.200,000 on cheques,
irrespective of the balance in your current account. This service can be obtained
through prior arrangement. For more information and an application form, please
contact your branch.

FREE Internet Banking for Businesses

Manage your finances with ease. View your account statements, pay bills, make drafts
or transfer funds round the clock, from anywhere in the world.

FREE Business Phone banking

Access your bank balances 24 hours a day, 7 days a week at your convenience,
without actually stepping into the Bank. All you need is a phone and you can transfer
funds, pay your suppliers, make fixed deposits, request a cheque book and much
more.

FREE special ATM card

Withdraw up to Rs.200,000/- per day with your special Business Select ATM card at
over 150 HSBC ATMs in India.

Cluster Deposits
With Cluster Deposits, let your idle monies earn the interest rate of a fixed deposit.
Ensuring attractive returns as well as liquidity.

Smart Money Account

23

With the Smart Money Account, make your fixed deposits work for you. Avail of an
overdraft against your fixed deposits at attractive rates.
That's not all... fast path processing of requests, rapid cheque clearance, faster
remittances, salary accounts and many more benefits, leaving you with time and
energy to focus on your business. Business Select accounts need to maintain an
average quarterly balance of INR 1,000,000.

Mutual Funds
Here's investing in Mutual Funds could prove to be a good financial decision:

Constant new opportunities

Fund managers identify and maximize opportunities for your investments to grow
with the help of critical information from leading economists and analysts.

Reduced risks
While you expand your portfolio, Mutual Funds help you reduce your overall
investment risk by diversification of investment.

Speedy access to your money

As Mutual Funds can be bought and sold on any dealing day (which normally means
weekdays), you get easy access to your money at short notice

Affordability
Because of its large corpus, even a small investor can benefit from its investment
strategy.

Tax Benefits

You get tax benefits on treatment of long-term capital gains.

Low Costs

24

The benefits of scale in brokerage, custodial and other fees translate into lower
costs for investors.

Transparency

Regulated for investor protection

The Mutual Funds sector is regulated to safeguard the investor's interests.

Service Excellence
What is customer service?
Customer service is not merely customer relations or how nice frontline workers are
to customers. Rather, satisfying or even delighting customers is the goal of excellent
customer service. Because customers for different types of services have different
needs, customer service strategies will differ and must be tailored to the target
customer.
Good customer service is essential for all businesses, and providing it isn't that
difficult if bank and their employees enact these 10 basic rules:

Commit to quality service. Everyone in the company needs to be devoted to

creating a positive experience for the customer. Always try to go above and
beyond customer expectations.

Know your products. Conveying knowledge about products and services will help
you win a customer's trust and confidence. Know your company's products,
services and return policies inside out. Try to anticipate the types of questions
customers will ask.

Know your customers. Try to learn everything you can about your customers so
you can tailor your service approach to their needs and buying habits. Talk to

25

people and listen to their complaints so you can get to the root of customer
dissatisfaction.

Continually ask the target customers what they want and then give it to them: this
will help an organization better understand their customers and will be able to
come up with new an improved products as per their needs

Establish an Organizational Culture Supportive of Customer Service: Utilizing the

information gathered, establish the companys customer-focused vision. The vision
statement should be simple and may also identify what the company does not want to
be. Express and L.L. Beans promise "Guaranteed. Period. Live up to what is
promised by concurrently developing and applying externally and internally oriented
strategic service concepts that reflect the vision. If the organization does not
implement both internally and externally oriented service strategies consistent with
the vision, the organization will have good intentions but poor customer service
(Thompson).
Treat people with courtesy and respect. Remember that every contact with a customer
whether it's by email, phone, written correspondence, or face-to-face meeting
leaves an impression. Use phrases like "sorry to keep you waiting," "thanks for your
order," "you're welcome," and "it's been a pleasure helping you."
Never argue with a customer. You know darn well that the customer isn't always right.
But instead of focusing on what went wrong in a particular situation, concentrate on
how to fix it. Research shows that 7 out of 10 customers will do business with you
again if you resolve a complaint in their favor.
Don't leave customers hanging. Repairs, callbacks and emails need to be handled with
a sense of urgency. Customers want immediate resolution, and if you can give it to

26

them, you'll probably win their repeat business. Research shows that 95 percent of
dissatisfy customers will do business with a company again if their complaint is
resolved on the spot.
Always provide what you promise. Fail to do this and you'll lose credibility and
customers. If you guarantee a quote within 24 hours, get the quote out in a day or less.
If you can't make good on your promise, apologize to the customer and offer some
type of compensation, such as a discount or free delivery.
Assume that customers are telling the truth. Even though it sometimes appears that
customers are lying or giving you a hard time, always give them the benefit of the
doubt. The majority of customers don't like to complain; in fact, they'll go out of their
way to avoid it.
Focus on making customers, not making sales. Salespeople, especially those who get
paid on commission, sometimes focus on the volume instead of the quality of the sale.
Remember that keeping a customer's business is more important than closing a sale.
Research shows that it costs six times more to attract a new customer than it does to
keep an existing one.
Make it easy to buy. The buying experience in your store, on your Web site or through
your catalog should be as easy as possible. Eliminate unnecessary paperwork and
forms, help people find what they need, explain how products work, and do whatever
you can to facilitate transactions.
Embrace change and persistently strive to improve (be a learning organization): this
will help an organization to attract more customers because in this fast moving world
customers always expect more than what you presently offer

Platform Services
27

Platform services are the most important services offered by a particular bank.
Platform services are important for any banking organization because, the services
provided at the platform help an individual develop an overall picture of a particular
bank and its overall services. Customers have most of the interaction with the people
at the platform, People at the platform help out the customers with whatever problems
they have. Customers can come up with all their problems and queries to the bank and
discuss them in detail with the staff at the platform. The better the staff at the platform
treats the customer the more satisfied they are with the bank and therefore the more
loyal they are towards a particular brand. Hence in order to increase the customer base
as compared to other banks, one should try to win over the customers by providing
better services to them as compared to other banks, as it is rightly said that customers
are a key to success for any business.
At HSBC great efforts are made to provide excellent services to its customers, whish
ultimately results in customer retention. Platform services have increasingly gained
importance in banking industry. At HSBC attempts are made by the platform service
team to satisfy the customer to maximum possible extent.
HSBC, South Extension has the best platform service team all over the globe. As a
customer enters the branch there is a lobby manager at the may I help you desk who
tries to assists the customers and maintains the record of all the customers walking
into the branch with what ever queries they have. At HSBC we have a system of first
come first serve, whereby the person who enters the branch first would be attended
first. Hence there would be no bias among customers. Then we have a team of 5
platform service managers who listen to the customers and help them overcome the
problem they are facing in the best possible manner so that they are fully satisfied.
The platform team is also important because it helps people working at all other levels

28

to pitch the customers who can give the bank huge amount of business in terms of
investments and insurance by making the customers aware of the products offered by
the bank and develop a need for these products in them. Hence good platform services
are important not only because it helps in winning over the confidence of the
customers but also because they help in discovering potential customers for the
organization on whom the financial planning managers can pitch.

Service expected by Customers

Customers should be made feel comfortable when they enter the branch. This is
important because if they are not treated properly they would not like to visit the
branch again and may opt to bank with some other banks which provide them better
services. This is so because there is hardly any difference in the products offered by
each bank, what make a particular customer bank with a particular bank is the
services and facilities offered by them. A customer would choose a bank, which
provides it better services. Hence service assumes the most role as far as the success
of a particular organization is concerned as compared to its competitors. In general a
bank should take care of the following services:

Environment in the bank

Proper desks at each counter

Proper waiting area

Water being served at regular intervals

Snacks offered

Dcor

Clean carpets

Pipe music

29

Attitude of the staff towards the customers

30

COMPARATIVE ANALYSIS OF VARIOUS BANKS

CUSTOMER DELIGHT
When a brand meets customer expectations, it is ensuring customer satisfaction.
However, when customers get value or benefits beyond what they had expected, the
brand has ensured customer delight. Common sense suggests that a delighted
customer may be more loyal to your brand than a satisfied customer.
Customer delight is not just about better product performance. Consumers have a
certain degree of functional expectation from a brand, and, in most cases, the brand is
likely to deliver a level of performance pretty close to that expected by the customer.
This is precisely the reason why functional parameters have ceased to be meaningful
differentiators for customers to choose one brand over the other.
So what is customer delight all about? How is it ensured by brand? Customer delight
is about demonstrating and providing a set of tangible and intangible benefits beyond
the functional features, a combination of which provides value beyond what the
customer had expected to receive from the brand.
It is important to recognize that customer delight is a moving target. It is not a fixed
benchmark to be achieved. As competition intensifies and responds, the power of
some benefits to act as differentiators gets diluted or erased. Brands, therefore, have to
constantly monitor customer satisfaction and delight levels in relation to competitive
offerings. Then they must create both more and innovative value propositions for
customers to continue to feel delighted.
In many categories, brands have taken the easy route of providing higher value
through lower price. However, not only is there no guarantee of it being a sustainable
advantage (because it is replicable by other players too), but it also strips the brand of
31

much needed profitability to create and sustain alternate benefits. Apart from a
sensible price point, customers look at brand imagery, service, and other intangible
parameters for selecting between brands. For a brand that seeks to provide everincreasing service levels and standards, competing on price will seriously limit its
ability to invest in technology and resources to provide the desired service levels.
In a digitally enabled business environment, it has become relatively easier for a
brand to plan and implement strategies to provide customer delight. Though it
requires an initial investment in time, resources, and technology, creating a robust
database of customers is the first step in making the task of providing continued
customer delight easier and efficient for the organization.
Some of the ways of ensuring customer delight through a customer base that is
captured digitally are:
Loyalty programs: These programs provide incentives for customers to stay with
your brand. The biggest value of a loyalty program to a customerin terms of
incentives or discountsis "the more you buy, the more you benefit." Loyalty
programs bind the customer to the brand by "raising exit barriers." As the customer
collects more points (or any other form of incentives), the barrier to exit from the
brand rises. Typically, airlines, credit card companies, and supermarkets have used
loyalty programs effectively.
Collaborative marketing: Collaborative marketing is a customer centric business
strategy to provide value to customers through marketing partnerships/tie-ins with
brands that are relevant to the customers in your database. In other words,
collaborative marketing is about identifying brands that your customers would be
interested in and then creating an opportunity for those brands to offer an incentive to

32

your customers that would not have been possible on an individual level. It's a winwin-win situation for all entities. Your customers benefit because they get value from
your brand that is beyond the product or service that you market; the participating
brand benefits because they get to interact one-on-one with a large cluster of potential
customers; and your organization benefits because you strengthen the customers
satisfaction with your brand by providing greater value for them to belong to your
database.
Proactive marketing: Proactive marketing is defined as identifying customer needs
before they do to supply them with information and/or service and to help them
decide about a purchase. The concept is clearly about informing consumers about new
or higher version products or services that they will require without waiting for them
to discover it on their own. For example, a computer manufacturer can use this
concept by proactively informing existing consumers about product upgrades or new
services that the organization (or its business partners) has to offer. A television or
music system marketer can use this in a similar fashion. Entertainment companies, if
they know the consumers preferences, can send marketing information of new
releases in that genre to consumers so that they do not have to wait for the consumer
to chance upon the new product while perusing the store. (For example, did you know
that most music buyers are not "active" buyers? They do not seek out a particular
album, but tend to impulse buy when they happen on an album they like.)
Cross-selling: This marketing method identifies the most relevant products from a
company's portfolio that your customer will benefit from and offers it to them...
perhaps at an incentive for being a member of your brand. Let's take the example of a
financial organization having interests in banking, credit cards, personal loans,
housing loans, insurance, etc. In the old world format of business, each business entity

33

managed a separate list of customers, and data was rarely shared across the enterprise.
However, in a digitally enabled environment, the entire enterprise can maintain a
common repository of customer data and tag them for all the relationships that the
customer has with the entire enterprise. This allows the organization to get a 360
view of its entire customer base. This knowledge can be used intelligently to ensure
that the organization gets a higher lifetime value from the customer by selling them as
many relevant products as possible from its portfolio.
Single service window: This is defined as the ability to recognize a customer as a
single entity across the many products/services that your organization may have
marketed to him. In many organizations, different departments of that organization
operate as separate entities and have separate customer service teams. However, the
customer buys different products and services from that organization because he/she
sees value in "belonging" to that brand. How often have you heard: "Sorry, Sir, but
you will have to call another number for queries about other products"? The customer
service team can avoid this set of words if the organization were to deploy technology
to maintain a common pool of data about customers across different departments.
24x7 supports: Customers are active 24 hours a day, seven days a week, and
initiatives like call centers and help desks are rendered more effective by use of robust
and scaleable technology solutions. Technology tools available today enable call
centers or help desks to provide a detailed interaction history with its customer base to
enable them to provide service more efficiently to each individual customer. Some of
the features that a good e-CRM contact center solution will provide are:

Outbound e-mail management system (with features like segmentation, dynamic

mail construction, performance tracking, etc.);

34

Automated response system that can be used for sending alerts and e-mails (e.g.
sending automated mails to a bank customer when his/her check is credited);

Inbound mail management system (with features like auto responders,

preformatted mail responses to increase speed of response, I-mail, collaboration
tools, etc.); and

Assisted self-service wherein the customer can access relevant parts of the
organizations site assisted by a virtual service agent.

In each of these initiatives (and the many more that are possible), there is potential
to offer an ever-increasing set of benefits. It is left to the dynamism and innovative
spirit of the organization to harness it to the max. Remember: a delighted
customer has the potential to be more loyal to your brand than a satisfied
customer.

The Customer Delight Principle McGraw-Hill Professional Books.htm

Here's how your company can take customer satisfaction to a new level and reap
the profits!

The Customer Delight Principle shows how customer delight -- not mere satisfaction
-- drives repeat purchasing and customer loyalty. The book details how your company
can build a customer delight-oriented organization and reveals many of the roadblocks
that you are likely to encounter. How to monitor customer delight results, including
measurement and validation against revenue, is covered, as is formulating payback
curves for a customer delight investment, allocating resources for continued customer
delight improvements, and the continued benchmarking of results.

35

Statistics show that customer satisfaction alone is not enough. Over 60% of customers
lost by companies have reported that they were at least "satisfied," in their experience
with the company
Striving for more than customer satisfaction is a key strategy in Customer
Relationship Marketing (CRM), the predominant marketing approach of todays most
successful traditional and dot-com companies.
Techniques to Move Your Customers beyond Mere Satisfaction--at Every Point of
Contact
Global competition today is fierce, and customers who are merely satisfied with your
company's products or services will soon be lured away by your competition. The
Customer Delight Principle reveals how today's leading marketers consistently retain
and grow their customer bases by moving beyond satisfaction to discover and fill each
customer's unseen yet essential needs. Comprehensive in scope yet focused in
treatment, this book reveals how to dramatically increase your organization's positive
customer experiences, virtually eliminate the negative, and drive your customers to
new levels of repeat purchasing, loyalty, and sheer delight.
Satisfied customers are good for business success--just not good enough.

CUSTOMER DELIGHT AT HSBC

HSBC has recognized the importance of customer delight in winning the confidence
of customers and keeping them loyal towards their own brand. HSBC does a lot for its
customers as far as customers are concerned. At HSBC the policy, which rules, is that
the key to success for HSBC is providing personalized services to its customers to
keep them loyal to their to their brands for years to come. At HSBC each and every
employee is trained to make the customer happy. They try to understand what

36

problem the customer is facing and then make an attempt to solve it without making
him wait for long. The customers are given a feeling of pride by giving them
importance who so ever he may be. This is important because it makes the customer
feel that they hold importance to the bank and ultimately increase their satisfaction
level. HSBC keeps on organizing events for their customers as a part of customer
delight to develop good relations with them and to make them feel that we care for
them and they are important to us. Every Saturday at HSBC is the day devoted for
customer delight. Many events have been organized till date to win the confidence of
the customers. Some of them are:
HSBC organizes a birthday event every last Saturday of the month where it invites all
those customers whose birthday falls in that particular month. They organize snacks
for the customers and usually on the birthday event they arrange for a taro card reader
and an astrologer whereby people can discuss whatever they want to with them.
Then one week they had organized as childrens week, where they had arranged for
small gifts for children and were given to those children who had walked into the
branch during that week. This was followed by a magic show and some art and craft
learning on Saturday, when the bank made an attempt to call all customers who had
small kids to enjoy the magic show and have fun
One week they had organized a luck draw wherein the customers walking into the
branch were asked to drop in their visiting cards and on Saturday there was a luck
draw in which some of the customers won movie tickets for 2 at the pvr nearest to
their residence

37

On 5th June as it was environment day, we had celebrated an environment week in the
branch. This week we had arranged for small siblings to be handed over to customers
walking into the branch during that week.
As far as premier customers are concerned along with the above mentioned ways of
providing delight to them they are given exclusive personalized services by the banks
staff along with the following other services:

Free tickets for the entire family to the movie of their choice

Tickets for different matches life cricket, football, etc

Lunch and dinner parties hosted at five star hotels

Invitation for important events of banks

Music shows and concerts by well known personalities

A weekend tour and many more

Delighting customers is an ongoing process in HSBC and has also proved to be

fruitful to the company as it was able to develop better relations with their customers
and win their confidence so that they can help bank get better business from them. But
one thing, which is always kept in mind, is that no business is discussed during these
events. These events are meant for fun and enjoyment and therefore the show must go
on uninterrupted.
Apart from delighting customers HSBC also tries to delight its employees to the
fullest possible extent so as to make them feel that they are important to the
organization and their contribution matters them a lot. Delighting staff helps in

38

developing enthusiasm among the staff to work hard and to meet their targets well in
time. Some of the policies adopted by HSBC to delight is employees are:
HSBC is the first and only banking organization to organize an incentive scheme for
all its employees from top to bottom. And these incentives are so attractive that one
can make incentives even more than their monthly salary. This is actually a
motivating factor for the staff to work hard and show their potentials to the
organization and in turn make huge amounts of money for them
HSBC organizes events for its staff on various occasions including festivals by having
performance by various celebrities and dramas organized by the staff itself
It also organizes dance parties for their staff and having competitions among various
branches by organizing cricket match, bowling matches and many more.

39

Wealth Management
Private banking/wealth management addresses the need of high net worth individuals
to manage their wealth. It provides a comprehensive range of client centered advice,
products and services individually tailored for wealthy clients on the world catering to
their wealth management needs in their home countries (onshore) and at the large
international financial centers (offshore). The challenge of a private banker is to
combine strong personal relationships with resources that are available from across
the globe and provide a full range of wealth management services from asset
management to estate planning and from corporate finances advice to art banking. The
idea being to give clients access to a wide array of pre-screened, top-quality products
from third party providers that complements in-house products.
Client focus is the main driver of the business of wealth management. A wealth
manager is committed to proactively and consistently delivering customized and
unbiased financial solutions of the highest quality to its clients. The business of
private banking and wealth management lies on the pillars of long-term personal
relationships. The consistent delivery of a truly consultative advisory process
combined with a comprehensive product positioning framework is essential to putting
wealth managements value proposition into action.

The Wealth Management Process

The wealth management process can be broken down into four clear, mutually
enhancing steps. In the first step, advisors take the time to understand what it is it tat
their clients want and need, and look at all the different factors that might affect their
goals and willingness to take risk. As a second step, the advisor formulates investment
proposals crafted for their clients specific requirements by selecting from the best
products and services available. In the third step, the client agrees with the advisor

40

which of the solutions should be implemented. The fourth step rounds out the whole
process with comprehensive monitoring and reporting of investment performance to
the client by the advisor, as well as regular communication between the two in which
goals and strategies are constantly evaluated, and adjusted as required. A clearly
structured advisory process helps client advisors add value at each step and provide
clients with a consistent and comprehensive experience.
In the heart of the relationship between the clients and their financial advisors is a
consultative process, during which each advisor profiles and creates an investment
plan for his or her client based on individual needs, requirements and goals. It takes
the clients risk tolerance into account, and follows the appropriate asset allocation
strategy. The plan is normally designed to help the client accumulate, preserve and
transfer wealth. Once the plan is put in place, advisors hold regular portfolio reviews
that help ensure that the clients long-term goals are met.
Training is essential to make the process a success. Wealth managers provide
extensive training to client advisors on products and processes so as to make them
fully versed in all aspects of a structured advisory process. Most wealth managers
make all their new advisors undergo training program that are designed to provide
them with the necessary financial planning, analysis, client relationship management,
and legal and compliance knowledge. Wealth managers commit considerable
resources to further develop and expand the expertise of their financial advisors. The
process of training is continuous and does not end when an advisor starts working at a
branch. Experience of senior private bankers across the globe shows the training
programs are a key factor in helping to develop long-term, mutually beneficial
relationships with clients.

Products and Services

41

Most wealth managers offer wealth management services to wealthy individuals and
families with investible assets of at least USD 1 million. Some high-end specialized
wealth managers offer wealth management services to clients with a minimum of
USD 10 million to invest with the average account size normally substantially larger
than the cut off.
The growing size of the mass affluent market globally has also lured wealth managers
to provide preferred banking and specialized services to this segment as people
frequently move from the higher end of the mass affluent category to become wealth
management clients. Globally banks like HSBC (HSBC Premier), Citibank (Citi
Gold), ABN (Van Gogh), etc., have rolled out products focusing on the mass affluent
market. In India ICICI Bank has been the front-runner in providing preferred banking
services to its base of over 1,00,000 clients.
Customer relationship management tools are now utilized to recognize and fulfill
customer needs of the mass affluent segment by identifying appropriate products and
services and delivering them to the customer through their channel of preference. As
specialized and investment advisory services to mass affluent started gaining
prominence, wealth managers institutionalized the product development process.
Previously product suppliers drove product development. Wealth managers have now
pursued a strongly client-focused approach to product developments. Wealth
managers identify the principal investment themes and market developments relevant
to their set of customers and carefully analyze the needs of specific client segments.
Product suppliers are involved at an early stage so that they can target their efforts on
translating the identified themes and developments into products, which appeal to
clients. The new approach provides customers with superior financial solutions and is
beneficial for all, the client, the wealth manager, and the internal product suppliers.

42

Products could include banking related needs such as current and savings accounts,
personal and home loans, cards and also insurance and investment services including
securities trading. Such services are now increasingly delivered via self-service
terminals, phone banking and the Internet. Comprehensive financial planning
services, covering customers investment, retirement, personal and asset protection
needs are offered through specialist financial advisors.
The credibility and reputation of a wealth manager hinges on its ability to ensure that
clients receive the best products and services available, regardless of whether they are
produced internally or are sourced from external agencies. However, as the intention
of premier wealth managers is not to become a one-stop financial supermarket, they
carefully choose and screen third-party offerings, selecting those that meet the high
standards that there clients demand. Depending on their financial situation and
individual preferences, clients have varying requirements regarding the level of
service they expect. Products on offer could both be on the assets and liabilities side.

Investment Products
The first level of products and services framework for any wealth manager comprises
of advisory services primarily focused on effective management of a standard suite of
transaction-oriented products as well as credit and life insurance products to cover the
clients basic needs. The suite of these products comprises of offerings on equity and
equity linked products, commodities, foreign exchange, fixed income securities
including government, mortgage-backed, corporate and municipal bonds, as well as
preferred stocks. Wealth managers have selling arrangements with mutual fund
companies across the globe, many of which are leaders in the industry. Because of
high investor interest in hedge funds and funds of funds, wealth managers have also
built up a capability to create structure and manage a broad array of alternative

43

investments for high net worth individuals. They provide alternative investments
ranging from own hedge funds to third party private equity funds and fund of funds
products and also offer their clients with a wide range of structured products covering
equity linked note products, principal protected notes, enhanced appreciation
securities and hedge fund underlying structured products. Wealth managers also offer
a broad range of fee-based money management programs that utilize the expertise of
professional money managers, both internally and through third parties.

44

CHAPTER -3
OBJECTIVE & METHODOLOGY
45

OBJECTIVE OF STUDY
The objective of the research is to analyze the services provided by HSBC Bank,
Citibank and ICICI Bank. To try to find out what do customers expect from an
organization and try to deliver that level of satisfaction to them. For the same purpose
I have taken into various attributes relating to service that may be responsible for the
success of a particular bank like geographical location, ambience, products offered,
etc to name a few.

SCOPE OF THE STUDY

Negative buying experiences are almost always linked to shoddy customer service.
These days it's rare to find good customer support, even though most businesses claim
that they put people first. But customer service hasn't gone the way of the dodo. In
fact, after consumer groups and the media took potshots at e-commerce sites last year
for leaving customers in the lurch, many businesses started to pay more attention to
the levels of service they provide.
The scope of the study has been limited to distilling out and detailing the techniques
used by HSBC bank to provide service excellence to its customers.

SIGNIFICANCE OF RESEARCH
There are a huge number of banks in the market today, differing on service style,
ambience, products offered, credit rating and branding. In such a market where
suppliers are many and varied, it becomes an increasingly difficult task for various
customers to choose one from. This research study therefore takes a step forward in
this direction to look into the nitty-gritty of this lucrative and competitive market, its
suppliers and its customers based on the underlying variables.

46

RESEARCH DESIGN AND METHODOLOGY

The research design adopted for the study is one of the exploratory cum descriptive
research process which has been elaborately discussed below:
In exploratory research, the major emphasis is on the discovery of ideas and insights.
As such the research design appropriate for such studies must be flexible enough to
provide opportunity for considering different aspects of a problem under study. Inbuilt
flexibility in research design is needed because the research problem, broadly defined
initially, is transformed into one with more precise meaning in exploratory studies,
which fact may necessitate changes in the research procedure for gathering relevant
data. Generally, the following three methods in the context of research design for such
studies are talked about: (a) the survey of concerning literature; (b) the experience
survey and (c) the analysis of insight-stimulating examples.
The research design adopted for the study is one of the exploratory cum descriptive
research process which has been elaborately discussed below:
Attempt has been made to apply concepts and theories developed in different research
contexts to the area in which work is done. Sometimes the works of creative writers
also provide a fertile ground for hypotheses-formulation and as such may be looked
into by the researcher.
As far as the descriptive research is concerned, it commences with describing the
characteristics of a particular individual, or of a group. A descriptive study therefore
concerns itself with studying the specific predictions, with narration of facts and
characteristics concerning individuals, group or situation, all being examples of such a
process of study. Most of the social research comes under this category. In descriptive,
the researcher must be able to define clearly, what he wants to measure and must find
47

adequate methods for measuring it along with a clear cut definition of population
that needs to be studied. Since the aim is to obtain complete and accurate information
in the said studies, the procedure to be used must be carefully planned. The research
design must make enough provision for protection against bias and must maximize
reliability, with due concern for the economical completion of the research study.
An exploratory research design emphasizes on the discovery of ideas and insights as
have the following characteristics:
Business Significance: Unless the problem has a place in the industry or has business
significance, its study is useless and meaningless.
Practical Aspect: It should be of practical value to the management. If it has no
practical value it is useless for business decisions.
Combination of Theory: Mere practical significance of the problem has no meaning
unless it is based on theory. If a particular problem is based on certain theoretical
aspects is possible for the researcher to judge its utility or proceed with his study in
the insight direction.
Reliable and Variable Facts: In the absence of reliable facts, the study of the
problem is of no managerial significance.
The distinct features of such a descriptive process are the following:
Field: The descriptive designs are concerned only with the existing or present forms
of the problem.
Objective: In descriptive design the main object is to acquire knowledge. It has
nothing to do with the solution of the problem or treatment of the causes.

48

Treatment: Under descriptive designs, no attempt is made to solve or modify the

existing or present causes of the problem.
Field Expansion: This is one field where the knowledge about the problem has not
been developed properly. In such circumstances, descriptive designs are more useful
and effective as compared to other designs.
Primary questionnaire method was used to complete the dissertation and secondary
sources (books, website) were also taken. 250 respondents were chosen to complete
the survey.
Sample Location The sample location selected by us is the National Capital Region
Delhi (India) and NCR.
Sample Size How many people should be surveyed? for this research, I have
randomly selected a population of 250 people of any age group who were already
banking with HSBC
Sample Procedure How should the respondents be chosen? In this research, I have
chosen the respondents according to STRATIFIED RANDOM SAMPLING, which is
a method of PROBABILITY SAMPLING.
Sample Unit It answers the question of who is to be surveyed. In our research, the
sample units are the common people, who have accounts with HSBC and other banks.

CHAPTER -4
DATA ANALYSIS
49

50

DATA ANALYSIS
Analysis of Platform Services of HSBC
There was a small questionnaire which the branch used to get filled by all the
customers walking into the branch with their queries, so as to have an insight of how
do the customers feel about the services rendered by them and the areas where a
particular platform service manager needs to improve. I have used the same
questionnaire in my analysis to study what customers feel about HSBCS platform
services
Sample size- 100

1. The first question asked was- Did the staff greet you?

51

 YES--------------------------------------- 96%
NO---------------------------------------- 4%

Figure No. - 1

INTERPRETATION
The analysis of it revealed that 96% of the customers said that they were greeted
by the staff and only 4% of them said that they were not properly greeted by staff.

2. Did the staff try to help you?

YES------------------------------------------------ 84%

52

 NO--------------------------------------------------16%

Figure No. - 2

INTERPRETATION:
On analysis it was found that 84% of the customers felt that the staff had tried to
help them out but 16% of the customers were not satisfied. Although it was a huge
number but it because people coming with problems relating to credit card and
housing loan could not be attended as the branch did not had staff to deal with
problems relating to credit card division and housing loans. And the branch has
recognized this problem and would shortly overcome it.
3. Did the staff excuse himself before attending to a call or before attending
anything?
YES------------------------------------------------ 91%
53

 NO------------------------------------------------- 2%
Did not -------------------------------------------7%

Figure No. - 3

INTERPRETATION:
On analysis it was found that 91% of the customers answered that the staff had
excused himself/ herself before doing any other work apart from attending him.
2% of the customers were not satisfied on this point, whereas 7% of the customers
said that they didnt attend to the call.
4. Was the staff polite?
YES------------------------------------------------ 95%
NO------------------------------------------------- 05%

54

Figure No. - 4

INTERPRETATION:
Analysis of this question revealed that the staff at HSBC was very polite with its
customers as 100% of the customers answered the question as yes

55

5. Would you like to be invited to the branch events?

YES------------------------------------------------ 73%
NO------------------------------------------------- 27%

Figure No. - 5

INTERPRETATION:
The analysis revealed that 73% of the customers were interested in attending the
branch events and 27% of the customers said they would not like to visit the
branch for the events.

56

Customers preferences for using various services provided by various banks indicates
that most of the customers use the ATM facility provided by various banks, followed
by internet banking which is gaining importance these days. This is followed by
phone banking and then door step banking.

Figure No. - 6

57

FISHBEIN MODEL
1. What is an Attitude?
An attitude is a lasting general evaluation of something - it has knowledge of
that something, liking or disliking, and the strength of the feelings.
Attitudes are lasting, but changeable
2. They help to direct behavior - e.g. do you recycle cans?
Beliefs: Cognitive Component of Consumer Attitude
A consumer belief is a psychological association between a product or brand
and an attribute or feature of that product or brand
Beliefs are cognitive (based on knowledge)
The stronger the association of features or attributes with the product or brand,
the stronger the consumers belief
Brand equity is a measure of the strength of the association in the marketplace
The Fishbein Model

Affective responses to a brand consist of:

The strength or weakness of a consumers beliefs about the brand and its attributes
the consumers evaluation of or feelings toward those attributes
Since a consumer holds many beliefs, it may often be difficult to get down to a
"bottom line" overall belief about whether a particular bank, such as HSBC Bank
is overall good or bad. The Multi attribute (also sometimes known as the Fishbein)
Model attempts to summarize overall attitudes into one score.

58

Multi attribute Model of Attitude

The cognitive component of the tripartite model is generally assessed by using a
version of the multi attribute or Fishbein model:

Ao=[SUM]BiEi

where:

Ao = the overall attitude toward object o

Bi = the strength of the belief that object o has some particular attribute

Ei = the evaluation of the goodness or badness of attribute

Note that the evaluative component serves as something of a weight.

Parameter
GEOGRAPHICAL

Weights(Wi)

Avg(Xib)

WiXib

LOCATION

1.5

2.58

3.87

CREDIT RATING

2.5

2.78

6.95

SERVICE STYLE

2.87

8.61

CUSTOMER DELIGHT

2.57

5.14

0.5

2.58

1.29

2.46

2.46

IMAGE/BRAND
AMBIENCE
Total

28.32
Table No. 1

That is, for each belief or parameter, we take the weight, or importance (Wi) of that
belief and multiply it with its evaluation (Xib). For example, a consumer believes that
the geographical location of a particular bank is moderately important, or a 1.5 on a
scale from 0.5 to 3. He or she believes that the observed average 2.58 on a scale.
59

Thus, the product here is 1.5(2.58)=3.87. On the other hand, he or she believes that
the service style of a bank is extremely important (3), and the observed average being
2.87, on this attribute. Thus, we now have 3(2.87)=8.61. Had these two beliefs been
the only beliefs the customers held, his or her total, or aggregated, attitude would have
been 3.87+8.61=12.48. In practice, of course, customers tend to have many more
beliefs that must each be added to obtain an accurate measurement.
In our study, we have considered the various parameters or factors affecting
success of a banking institution. Their weights when multiplied with the observed
averages and summed up give an aggregated attitude of 28.32.
Analysis of importance of promotional schemes of banks to the preferences of
customers
When asked about the importance of promotional schemes, 63% of the customers
said that promotional schemes offered by a bank have an influence on the
selection of a particular bank to do business with.

60

1. DO PROMOTIONAL SCHEMES EFFECT YOUR PREFERENCE TO

BANK WITH A PARTICULAR BANK
EMBED

MSGraph.Chart.8

\s

Figure No. - 7

INTERPRETATION:
An analysis of which promotional scheme has a better impact in influencing a
customers decision to bank with a particular bank Of the 63% people who said
that promotional schemes affect the preferences of customers further ranked the
various promotional schemes. Monthly incentives are the first choice of
customers. Also the second choice of all of them is media publicity followed by
celebrity endorsement.

61

2. EFFECT OF VARLOUS PROMOTIONAL SCHEMES ON THE

PREFERENCES OF CUSTOMERS

62

EMBED MSGraph.Chart.8 \s

63

Figure No. - 8

64

3. Analysis of the areas where a particular bank needs improvement

Figure No. - 9

INTERPRETATION:
In the analysis, where people were asked about the areas the three selected banks
should improve in, the following results were found:
The first attribute was ambience. As far as ambience was concerned, it was
analyzed that 265 of the customers said that HSBC should improve its ambience
and 21% of the customers said that Citibank needs to improve its ambience. But
most of the people (53% of them) said that ICICI needs to improve on ambience.
The second attribute which was measured was service style. From the analysis it
was found that HSBC was the best as far as service standards are concerned,
whereas both Citibank and ICICI bank provided almost the same level of services.

65

 The third attribute was products offered. An analysis of this revealed that there
was a mix reaction on the basis of responses of customers.33% of customers
wanted an improvement in the products offered by HSBC, 29% of them opted for
improvement in Citibanks products and 38% for ICICI Bank
The last attribute, which was measured, was promotional schemes. The analysis
showed that HSBC Bank and ICICI bank were good as far as promotional
schemes are concerned. On the other hand 54% of the customers said that
Citibank should come up with more promotional schemes.

66

4. Comparison of customer base of different banks

City bank
8.3%

Others
10.8%

HSBC
21.6%

American
Express
12.3%

Standard
Chartered
34.3%

ABN AMRO
12.7%

Figure No. -10

INTERPRETATION:
More importance must be given on increasing the customer base as though it has a
decent customer base but its still behind Standard chartered which has the highest
customer base of 34.3%

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SWOT Analysis: HSBC Bank

The SWOT analysis is very useful for closely examining the business. The purpose of
doing the SWOT analysis is to identify actions that will capitalize on companys
strengths and weaknesses.
Strengths - What do you do well?
Weaknesses - Where do you need to improve?
Opportunities - How could you improve performance?
Threats - What presents a risk to your business?
The HSBC 2001 Annual report shows a significant decrease in profit: Gross profit
$10,247 million down from $14,159 million. Return on average shareholder funds
11.4% down from 16.5% however this is almost fully accounted by $1,102 million
losses and bad debt provision attributable to Argentina. The Environment 2001 was
an "annus horribilis" for the world economy in general and for the banking sector in
particular according to Rolf-E Breuer, spokesman for the managing directors of
Deutsche Bank and one of HSBCs global banking competitors. The slowing of the
United States economy and its follow-on effect to the Asian exporters adversely
affected HSBCs results. However, it was the economic collapse of Argentina was the
major problem for HSBC, resulting in a $1.1 billion charge (HSBC Annual Report).
Hall Auer describes the major trends in the global banking environment as: increasing
mergers and acquisitions increasing market share by the larger banks declining cost to
income ratios shrinking interest margins and decreasing dependence upon interest
margins. Competitors The obvious competitors are similar juggernaut sized global
banking groups such as Citibank, ING, JP Morgan Chase, Bank of America and

68

Deutsche Bank. Some large multinational banksthe local subsidiaries of

Citibank, HSBC, and Standard Charteredhave developed strong and profitable local
franchises with a wide range of services. Others, including JPMorgan-Chase and
Deutsche Bank, are much more selective and in some cases are narrowing their
activities in emerging markets, refocusing on investment banking and private banking
activities. (Adams) However, depending upon the market segmentation virtually all
sized banks can present competition (John Westwood).

STRENGTHS
Size : The juggernaut strategy is based upon size: companies that control large market
shares usually outperform the average industry return (Westwood). Ability to
successfully grow by mergers and acquisition: HSBC's acquisition of Midland
resulted in a fall in the ratio of cost to income from over 70 percent in 1992, to under
60 percent by the end of 1997 (Molyneux). Ability to successfully implement their
custom electronic banking application. Hexagon is the foundation of HSBCs strategy
to deliver innovative services via Information Technology. Hexagon is focused on
business customers engaged in intercontinental trade and high-end retail customers
who use global banks to mange their personal global finances. Successful multidomestic strategy combined with global branding. Successful management structure,
valued and valuable employees.

WEAKNESSES
HSBC has a greater and perhaps increasing dependence upon emerging and less
developed markets than many of its major global competitors. The $1.1 billion write
down in 2007 being the most recent example.

THREATS

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HSBCs development of emerging markets provides increased vulnerability to

external factors that are more likely to occur than in developed markets such as:
currency instability, financial market instability, adverse government intervention and
steeper economic downturns. Obviously the benefits have exceeded the risks.
Although during 2001 HSBC fared less well than for example Citibank due to this
increased vulnerability. HSBC is justifiably proud of its custom information system,
Hexagon. However, the importance of such systems combined with the relatively
short life-span of such products provides opportunities for competitors to overtake
HSBCs advantages in these areas.

OPPORTUNITIES
HSBC stated aim is to be the Worlds Leading Financial Services Company (Bond).
This requires HSBC to transform itself from a global bank to a more diversified
global financial services company such as Citibank. The challenge will be to do this
while increasing shareholder return, another major aim and maintaining its already
low cost base. Current directions which could be expanded include greater
diversification into equity products which is currently being pursued via HSBC
Merrill Lynch, increased presence in insurance and card products.
Despite the 2007 decrease in revenue from this line of business, Private Banking is
regarded as an important high profit opportunity for growth as it currently only
contributes four percent of profit.

70

CHAPTER -5
Conclusions

71

CONCLUSIONS
The present study, because of it being adapted to the Indian context would prove
relevant to many a bank intending to prosecute this profession in India at a time when
literature, procedure and processes concerning the profession as applicable to the
Indian context are source to come by. Inter alia the present study has also enabled the
researcher to gain a deep insight into the services of HSBC Bank. Also in India as
prevailing today and in the context of the wealth management processes in HSBC
Bank where researcher is currently short-listed for taking up employment. The study
undertaken would be significant to the public who intend to get involved in the
subject of customer service. The research study would also be of relevance to the
financial planners, mutual fund industry, banking industry, security brokerage, etc.
Therefore, the intension of preparing this research work is to make the people
understand the platform services provided by HSBC bank.

OVERALL ANALYSIS OH HSBC BANK ON THE BASIS OF

OBSERVATIONS:
As far as the findings say, the services at the HSBC Bank are satisfactory. Let
there is always a room for improvement by
Setting up more branches even in the remotest of areas as it has only few branches
in Delhi where as its closest rival ICICI Bank has 33 branches.
Opening greater number of ATM Centers in those areas where people goes
regularly.

72

 Customer satisfaction is the ultimate goal of every business which is less in saving
account once it is opened their services are relaxed .It should not be forgotten that
one satisfied customer can help to bring new customer by references.
Minimum balance limit for saving accounts should be reduced so as to draw more
customers to the bank. Sales team focuses on their targets.
Advertisements strategies segmentation should be according to the target
customer. For example for youngsters road shows at markets sights, cable TV
advertisements during prime time or advertisements in club magazines that have
got many readers.
Sometimes they bring such customer, which are for short period. So they have to
focus to those type of customers which give them business in the long period.
The branch should be self-informative in a manner that it provides maximum
information related to the new schemes and products to the customers without any
difficulty.
Correct positioning of bank is very important. HSBC Bank is known for its
corporate operations. For the past so many years it has been catering to these
clients only and has generated an image of being a corporate bank. This product
extension into the retail segment need separate focus and separate positioning in
the market
ATM card withdrawal limit should increase for day as Citibank has Rs. 50,000 per
day.
Debit charges should be reduced as ICICI has lowest charge

73

Rest. 99.

LIMITATIONS
Due to an excruciating limitation of limited time in which this study had to be
completed, the content had to be completed to meet prescribed deadlines set for it and
as a result a more detailed elaboration could not be attempted by the researcher.
Also because most of the questionnaires were got filled by doing telephonic
interviews and then filling up the forms myself based on the response given by them,
there can be some kind of bias existing in the study.
Some of them also did not answer all the questions do to paucity of time, leading to
incomplete questionnaires.

74

CHAPTER -6
Recommendation

75

RECOMMENDATIONS AND SUGGESTIONS

The key to a successful banking is maintaining a steady customer base. After all,
successful businesses typically see 80 percent of their business coming from 20
percent of their customers. Too many banks neglect this loyal customer base and
chase new customers instead. Since it costs significantly more money to attract new
customers than to maintain relationships with existing ones, banks efforts toward
building customer loyalty will certainly payoff. Following are the recommendations
which help HSBC bank to make their new as well as their existing customer happy.
Understand that good customer service takes time, patience, persistence, consistency
in message at all levels, accountability, courtesy, respect, and emphasis on team
players.
Make sure upper management and executives at the top are sold on a customer service
culture.
Put a human face on customerstreat them with a personal touch, rather than as a
collective.
Make it easy for customers to do business with the service.
Listen to customers to learn what they need and want.
Address the immediate needs of the customer.
Communicate: Whether it is an email newsletter, monthly flier, a reminder card
for a tune up or a holiday greeting card, reach out to your steady customers.
Hire the right people by hiring on attitude and training on the skill.
Mentor new employees.
76

 Manage by staying close to the frontline.

Train the frontline on how to address customer problems.
"Inspect" what you "expect."
Dont focus energies on the bad applesput energies and resources into those
employees that want to work in customer service.
Ensure that management/executives listen to their employees complaints (without
interruption) and have trust in their employees.
Ask open-ended questions.
Have uniform expectations of the customers.
Reliability: If you say it will be there on Wednesday, deliver it on Wednesday. Be
reliable. If something goes wrong, let customers know immediately and
compensate them for their inconvenience.
People over Technology: The harder it is for a customer to speak to a human being
when he or she has a problem, the less likely it is that you will see that customer
again
Establish uniform processes, policies, and procedures to collect payments.
Customers must be able to expect the same expertise, collection efforts,
production, recovery, and professional delivery regardless of which branch or
individual is working.
Develop working relationships with other partners (e.g., courts, credit card
companies, vendors, or other banks) that play a role in debt collection.

77

 When working with a customer complaint, try to understand the customer as well
as those available to help address the problem.
Frontline employees should mentally separate themselves from problems in an
effort to address the issue so that the outcome is positive for all involved.
Maintain an orderly work atmosphere.

78

CHAPTER -7
BIBLIOGRAPHY

79

BIBLIOGRAPHY
BOOKS & NEWSPAPERS
1. Personal Financial Planning by Aitkin and Goodman, Financial Planners USA,
2000 Edition, 2003 Reprint
2. Marketing of financial services by Sangeeta arora.

INTERNET WEBSITES LINKS:

1. www.hsbc.com/abouthsbc
2. www.hsbc.com/investorrelationscs02
3. The Customer Delight Principle McGraw-Hill Professional Books.htm
4. http://finance.indiamart.com/investment_in_india/banking_in_india.html

80

CHAPTER -8
APPENDIX

81

APPENDICES
COMPARATIVE ANALYSIS OF VARIOUS BANKS
QUESTIONNAIRE
NAME: ______________________
CITY: _______________

TEL. NO.: ________________

AGE: _______________

ACCOUNT NO.___________

SEX:

Male

MARITAL STATUS:
OCCUPATION:

Q1.

Female
Single

Married

_____________________________________________________

Do you bank with HSBC?

Yes
No

Q2.

Which other banks do you bank with?

_______________________________________________________________
_______________________________________________________________

Q3.

What all services of a bank do you generally avail of? (more than one,
applicable)
ATM
Door Step Banking
Phone Banking
Internet Banking

82

Q4.

Rate the following attributes of various banks on a scale of 1 to 5 (with 1

being The worst and 5 being the best):
Parameter
Geographical

HSBC

CITI BANK

ICICI Bank

location
Credit Rating
Service style
Customer Delight
Brand/ Image
Ambience

Q5

Do you think that promotional schemes of a particular bank affect your

preferences?
Yes
No
(if yes, answer the 10th question else go to the 11th)

Q6.

Rank the following promotional schemes according to the impact they

have on the Preferences of the customers:
Media publicity
Monthly incentives
Celebrity endorsements

Q7.

In which areas do the following banks need improvement (tick against the
Appropriate option):

83

Parameter

HSBC

CITI BANK

ICICI

Ambience
Service style
Products Offered
Promotional schemes

Q8. Any suggestions or Recommendations:

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
THANK YOU FOR YOUR CO-OPERATION!

84

PLATFORM SERVICES
QUESTIONNAIRE
STAFF NAME________________________________________________________
DATE_______________________________________________________________
CUSTOMER NAME___________________________________________________
ACCOUNT NUMBER__________________________________________________
CONTACT NUMBER__________________________________________________

Q1.

Did the person greet you?

Yes
No

Q2.

Did the staff try to help you?

Yes
No

Q3.

Did the staff excuse himself before attending to a call or before attending
anything?
Yes
No

85

Q4.

Was the purpose of your visit served?

Yes
No

Q5.

Was the staff polite?

Yes
No

Q7.

Would you like to be invited to the branch events?

Yes
No

THANK YOU

86