Conceptual Framework

Being a public company, Janata Bank has been able to provide various banking services
dedicated to the mass people of our economy. But, when we looked at their offered services,
things were pretty clear that, they have focused lot on the services like depository services,
long-term schemes, industrial and enterprise loans as well as export-import trading etc.
Moreover, they have concentrated less on the retail-banking which lags their popularity
rather than their close competitors in the market. As it is mentioned earlier in this report about
their offered services they could not get huge account holders in comparison with the banks
like DBBL , EBL etc. During our visit to the local branch which is an export-import section,
it has come to our knowledge that the officials have no idea about what their clients want
when it comes about general banking. As per our collected data and experience visit, the
services of Janata Bank are discussed according to the GAPS below1.

Provider Gap #1(not knowing what customers want)

Not understanding the customers expectations can be as well the result of a bad management
of customers complaints (Veljkovi, 2009). The statement is true when it comes to know
about what actually the customers expect from a service provider. As per the stated services
of Janata Bank, the factors which can extend the area of provider gap 1 can be When we had interview with our designated personnel about the complaint
management method of Janata Bank, they have replied that they dont have any
department that deals with the formal feedbacks of the customers for further
development and implement. Besides, they have selected personnel for every branch
those are responsible for the critical complaints like transactional dealings, credit
issues etc. more likely to be said, they have mentioned about a Complaint Cell on
their official website which consists of two officials from their head office. In this
case, they are being deprived to know how their customers want to be served from the
organization.
More precisely, if the research focuses on their provided services, it will be noticed
that they have focused lot on the investments rather than making loyal customers.
That might occur when they have focused on the transactions rather than the
customers.

 In this competitive market, Janata Bank is not intended to conduct any market survey
on the emerging factors that could bring new customers which leads to inadequate
market research, specially the youths who would like to be introduced in the bank
transactions.

Most of the times if anyone intends to have their any credit programme, they have to
wait for long to get approval as there are too many layers to justify. For example, if
someone intends to have any financial loan about agro products in any remote
district of our country, the person may to wait long get the approval as from the top
management as there are too many layer with the contact personnel and the top
management. In this case, though they provided numerous credit facilities, they dont
have one-stop service facilities for such offers like other private banks.
More precisely, Janata Bank has been insufficient on relationship focus. In brief,
where United Commercial bank discount offers for their customer while shopping
with the UCB debit card on selected retail outlets as their loyalty programme, Janata
Bank doesnt have such offerings for their customers. Such scenario, clearly indicates
their lack of relationship focus.
2. Provider Gap #2(Not selecting the right service standards)
Despite their attractive rates of the interest from the long term deposits, they have
numerous account holders. For such situation, when someone intends to deposit their
monthly installment to the bank, he/she has to wait for hours to have their designated
service at any branch of them as the employees are odd numbered as per the customer
demand. They can blame their poor service design standard, which enables the
employees to deal with such situation as the management has not re-designed their
service structure on going with the demand. Factors like opening different department
which only deals with DPS or retail banking could solve rush and making the
occurrences organized.
While their competitors have introduced numerous comfortable services like sms
banking, online banking etc. Janata Bank fails to attract the customers with such
initiative. They have failed to connect service design with service positioning. It is
believed that, Services quality is the amount of difference between customer's
perceptions from services and his/her expectations. (Grifvi, 2001). Though Janata
Bank have declared such offerings on their official website, their customers are not

encouraged to retain such services because of the complexity of the usage. Lack of
publicity made the customers ignorant about this service.
If someone pays visit to the nearly located branch of Janata Bank, that person will see
that most of the updated technologies used for banking sector are missing in their
branches. In many branches, receiving and delivering cash money takes place without
the help of automatic counting machine. Moreover, the majority employee force are
the people of old age, may be that is why they dont understand what their customers
want apart from the retail banking. More likely to be said, the security system of
Janata Bank is vulnerable. The history gives evidence about the attack of the burglars
on the cash vault of Janata Bank numerous times. That is people dont want to deposit
their valuable assets in the vault of Janata Bank. The bank authority can blame their
top management for not updating the servicescape.
Though they offer many services to the customers, most of them fail due to the
formal process as it has too many layers, where their other competitors offer the
customers to have some services manually from the internet.
One important portion of the provider gap #2 is not developing tangibles in line
with the customer requirements. That goes true to Janata Bank by definition. Our
personal observation while visiting the head office of Janata Bank suggests that they
have failed to arrange their physical evidences as per their customer requirements.
Customers often want ATM services from their banks that should be available
whenever they need. In this case, Janata Bank has failed to define customer-defined
service standards. Besides they dont have their own ATM network as they use the
networks of the banks like DBBL, Brac bank etc. from which the customers can
withdraw with a commission rate that costs them a lot. They have mentioned about
660 ATM booths that can be used for withdrawing money from a Janata Bank
account.
We all know that, services quality is the all-dimensional judgment about the superior
principle of services in relation with similar services with its good advantages.
(Zeithaml, 1987).

Having a debit or credit card has become an inevitable part of our

everyday life as through this we can do shopping, online payments etc. In this case,
Janata Bank has failed to develop tangibles in line with customer expectations.
They have offered debit card and credit card programme as Q-cash which is basically
unpopular in our country. Where, the banks like UCBL,EBL etc. offer Visa,
Mastercard etc. which is widely acceptable for shopping, online payment etc.

Provider Gap #3( not delivering to service standards)

Service presenting performance at the core and relational dimensions is an important
guidance for customer's satisfaction in banking.(Losco,1996).One of the important
challenges the managers are encountered with is the lack of ability of the organization in
satisfying the standards determined in presenting the services.
The recruitment policy of Janata Bank is also competitive like other sectors and
privet banks. From the insight view, occurrences like personal favor, quota
reference etc. takes place. That is why sometimes they fail to recruit the efficient
employees who are enthusiastic work at a challenging environment and bring
change.
Janata bank widely practices succession planning which may sometimes bring
role conflict and egoistic matters among the employees. Moreover, the newly
recruited employees are given more tasks than their senior colleagues where they
are treated with same salary. This may bring less productivity and the freshmen
fail to satisfy the customer needs.
The employees of this generation are well aware of the technologies in the
corporate word. But, the elder employees who took care of the bank related
matters manually should be given training to use technologies like computer
software, data related software etc. which may put their pressure on ease. It is the
duty of the top-management of Janata Bank to make their employees
technologically-fit.
Janata Bank slightly updates their compensation structure which results
discouragement for the employees. In example, an executive officer of Janata
Bank monthly receives tk. 20000 where just a customer representative of
Eastern Bank receives tk. 26-28 thousands. Clearly it indicates that the
compensation strategy of Janata Bank is not literally competitive.
Janata Bank slightly encourages team work where they appraise every employee
individually. Moreover, they dont effectively conduct some other HR related
tools like Job rotation, on-the-job training etc.
More often they dont aware their customer s about their responsibilities towards
their bank. That is why most of the times, when a customer gets dissatisfied,
he/she tends to spread negative word-of mouth.

 From the insight view, just because of the organizational politics as it is a govt.
service bank, most of the times the management fails to supervise their
empowerment policy.
In the branches of rural areas, the top-management sometimes fail to serve the
same service quality as in the town areas lack of their supervision deficiencies.
For the top-management, retaining the existing customer means to them is
shuffling the rates for retail-banking and credit programmes. As per the demand of
the customers, they tend to shuffle their service rates which leads them to overrely on price.

Provider Gap #4(not matching performance to promises)

The managers of the organization should identify customers' needs/priorities and then prepare
standards for them and finally try to perform them by choosing proper procedures. Promises
presented by servicing companies' via media advertisements, selling staff and other
communications may increase customers' expectations being evaluated as a criterion based on
which the customers examine quality services. The difference between real services and the
promised ones has a reversed effect on distance from the customer. For this case, Janata Bank
does not spend much on the advertising. They can thank their some core services which the
private banks cannot provide like more insight agricultural loans, micro credit programmes,
NRB banking etc.
As they are ignorant about promotional programmes, Janata Bank has the absence of
strong internal marketing programmes while they are having business with their
customers. The employees are not also motivated to promote the offers.
They have overlooked the customer-expectation management. Rather, they have
tried to follow those ways which may bring out more revenues for the company
whether it is form retail-banking or foreign trade etc.
From the insight view, it is observed that, they dont use the same policies across all of their branches.
For example, a branch of Janata Bank in any rural areas may emphasize more on agricultural related
services rather than the retail banking. That is why they are losing the customers of rural areas for retail
banking where the private banks made their positions strongly.