INTRODUCTION

This chapter takes into consideration the background of the study, sources of information,
objective of the study, research question, scope of the project, and limitation of the study and
research methodology.
BACKGROUND OF THE STUDY
Modern banks play an important role in promoting economic development of a country.
Banks provide necessary funds for executing various programs underway in the process of
economic development. They collect savings of large masses of people scattered throughout
the country, which in the absence of banks would have remained ideal and unproductive.
These scattered amounts are collected, pooled together and made available to commerce and
industry for meeting the requirements.
As a servicing industry, the Banks are customers oriented. Customers are the driven power of
a Bank and it earns profit by providing services to customers. Customers are the person or
institutions which deal with the Bank. In general, he, who has an account in a Bank, may be
treated as a customer. In broad sense, customers may be seen from the two wings
Depositors and Borrowers. Beside these, other short-term served customers may exist in a
Bank. As the Banking area is very hard and competitive, in order to survive and successfully
compete with other Banks, a Bank has to serve its customers very carefully. Now, in
Bangladesh more than 50 scheduled Banks are operating their activities to serve customers.
To fulfill the demand of time and impress the customer most of the banks are now trying to
make their whole banking operation through online.
Online banking is the demand of time. It is now no longer a nice to have but an
impossible to survive without for all banks. IFIC Bank Ltd performs many of its operation
in on line and trying to include rest of the operations.
Online banking comes with huge benefits. Many customers warmly adopt the habit of online
banking. Some eagerly wait for new online services. But some still prefer traditional banking.
They find traditional banking easy, hassle free and more trustworthy than online banking.

IFIC Bank Ltd is continuing to begin new online services one by one. During my project
period I got the opportunity to observe customer closely. I found that many customer want
more online services to save their time and cost. Many customers are happy with traditional
banking. Some customers have no faith on online banking.
Online banking makes life easier, there is no doubt. But introducing a new system is not easy
because it brings some difficulties with it. In case of starting full online banking; the bank has
to introduce some new system/products. In that situation both employees and customers face
some problem to adopt that new system/product.
Sources of the Information
Information collected to furnish this report is both from primary and secondary sources.
Secondary data was derived from various sources including banks papers, different circular
sent by Head Office of IFIC Bank and Bangladesh Bank, other related researcher reports,
website, previous seminar papers etc. Primary information was obtained from the specific
person dealing certain products, interview with customers, interview with banking staffs, own
observation, working experiences with banking staffs. For the industry related, legal,
infrastructure related information internet was a good source.
OBJECTIVE of the Study
A Bank operates its activities not only to earn profit, but also to serve its clients in accordance
with their needs and demands. Online banking is the demand of time as well as the demand of
customer. IFIC Bank is popular for its better customer services. The main objectives of the
study are to evaluate the customer expectations in term of online banking, their problems
with online banking, etc. However, besides this, the study is an attempt to fulfill the following
objectives:

To identify customers perception of online banking

To find out the facilities of online banking available in IFIC Bank Ltd.

To find out the level of customer satisfaction with the available online banking
facilities.

To analyze the customers opinions towards different online services of IFIC Bank
Ltd.

To identify the customers reactions when suddenly they asked for some extra rules to
make the system online.

To analyze the employees opinions towards different online system of IFIC Bank Ltd.

To identify employees problem to operate the system that newly installed.

Research question
The research questions are:
1. What are online banking products and services that IFIC Bank Ltd offers to their
customers?
2. What are the upcoming online banking products and services that IFIC Bank Ltd is
going to offer their customers?
3. What is the perception of customers of online banking?
Scope of the project
Banking sector is a large and difficult area. A Bank has different products, different services
and different customers. Different departments of a Bank perform different activities.
This study says only about the customers of IFIC Bank Ltd. Different Bank has different
types/classes of customers. Their reaction will differ on same matter. The major parts of the
customers opinions are taken from that branch.
Limitations of the Study
The major difficulties are as follows:

A study that encloses interviews of very few clients can not conclude anything
accurately.

A Bank has some restriction to present all the real data of the bank to the general
people, so all relevant data and document collection is difficult.

It was very much hard to collect information. Customers are very much busy. So they
are not so interested to give genuine information.

Some of the customers are afraid to provide answer/information.

The authority was very busy, so they could not give me enough time for discussion
about various problems.

Personal barriers like inability to understand some official terms, office decorum etc.
creates a few problems to me.

Finally, Due to time limitation large-scale research is not possible.

Research Methodology
Firstly I made a plan about what to do. Then check out some banking activities of the bank
staffs. Gather some practical banking knowledge from some banker of IFIC Bank Ltd.Then
working few days with them and acquire some experiences. After learning some work I gave
some customer services. When I became easy with customers I collect some primary data
from them. I also talk with few bank staffs personally to collect more primary data. I collect
my secondary data from different sources like bank website, brochures, commercials etc.
After collecting necessary data I made the project.
The whole project was prepared through the following seven steps:

Step 1 Planning for the study

Step 2 Acquire knowledge about several banking activities

Step 3 Work few bays like a banker and gather some experience

Step 4 dealing with customers

Step 5 Data collection from different sources of bank (primary and secondary)

Step 6 Analysis of collected data

Step 7 Draw summary and recommendations.

Literature Review
Introduction
This chapter seeks to analyze relevant research documentation and findings essential to
improve this research and its capacity to analyze the concerns it seeks to accomplish. Several
researches have been carried out on online banking and it is important to examine them in
relation to this research topic. This will enhance effectiveness and stimulate an all inclusive
analysis and discussions of critical issue in relation to the topic under consideration. The
content of this chapter comprise the theoretical framework. El-Sherbini et al. (2007)
investigated the customers perspectives of online banking, their perceived importance for it,
usage patterns and problems rising on its utilization. The paper discussed the strategic
implications of the research findings. Empirical data were gathered from bank customers in
Bangladesh to achieve the research objectives. All bank customers in Bangladesh were
considered as population of research interest. The results showed the perceived importance of
online banking services by customers, current and potential use of IB services in Bangladesh
and problems perceived by bank customers in using IB. The researchers main hypothesis
tested that top five services considered relative important in IFIC Banks were Review
account balance, Obtain detailed transactions histories, Open accounts, Pay bills and
Transfer funds between own accounts. Akinici et al. (2004) developed an understanding of
consumers attitudes and adoption of Internet banking among sophisticated consumers. Based
on a random sample of academicians, demographic, attitudinal, and behavioral characteristics
of Internet banking (IB) users and non-users were examined. The analyses revealed
significant differences between the demographic profiles and attitudes of users and non-users.
IB users were further investigated, and three sub-segments were defined according to a set of
bank selection criteria. Finally, based on the similarities between various Web-based bank
services, four homogeneous categories of services were defined.
Online banking

Online banking is the practice of making bank transactions via the Internet. Online banking
allows us to make deposits, withdrawals, pay bills etc all with the click of a mouse. Online
Banking is one of the few web applications where benefits to customers and banks are
already widely proven. It is now no longer a nice to have but an impossible to survive
without for all banks. Online banking means a kind of self-help financial services provided
by the bank for its clients by the medium of Internet, including account information inquiry,
account transfer & payment, online payment, agency services, etc.
The benefits are many.
For the online banking customer, the convenience factor rates high. No longer does a person
have to wait for the bank statement to arrive in the mail to check account balances. One can
check the balance every day just by logging onto ones account. In addition to checking
balances and transactions, one can catch discrepancies in the account right away and deal
with them swiftly. The best part is that this can be done anywhere! As long as one has Internet
access, one can practice online banking. All the online banking facilities are not till available
in Bangladesh.
Since bills are paid online, the necessity of writing checks, affixing postage and posting the
payment in the mail is eliminated. Once the amount is entered and the payee is checked off,
the funds are automatically deducted from the payers choice of account.
Since the cost to the bank is minimal, the cost to the consumer, in many cases, is also
minimal. While there is usually a fee for online banking, it can be extremely low. Those who
partake in online banking all agree its worth every penny.
Online banking also eliminates paper waste, which is a plus not only for those who have to
handle all the paper work, but also for the environment.
Of course, there are also cons.
Banking sites can be difficult to navigate at first. Plan to invest some time and/or read the
tutorials in order to become comfortable in your virtual lobby.

Security is always an issue with Internet transactions. Although information is encrypted, and
the chances of your account being hacked are slim, it happens. Banks pay big bucks to install
high tech firewalls.
Youre also missing the personal service. No smiling teller or representative hands you a
receipt. Instead, except for whats printed into your account, all the paperwork is up to you.
Always print copies of important transactions.
If you have to deposit cash or checks, youll still have to spend time at the ATM. unless a
payment to you is directly deposited; this is one thing youll always have to handle manually.
Sound management of banking products and services, especially those provided over the
internet, is fundamental to maintaining a high level of public confidence not only in the
individual bank and its brand name but also in the banking system as a whole. Key
components that will help maintain a high level of public confidence in an open network
environment include:

Security: Banks must have a sound system of internal controls to protect against
security violate for all forms of electronic access.

Authentication: In cyberspace, as in the physical world, customers, banks, and

merchants need assurances that they will receive the service as ordered or the
merchandise as requested, and that they know the identity of the person they are
dealing with.

Trust: Public and Private Key cryptographic systems can be used to secure
information and authenticate parties in transactions in cyberspace. A trusted third
party is a necessary part of the process. That third party is the certification authority.

Non-repudiation: Non-repudiation is the undeniable proof of participation by both

the sender and receiver in a transaction. It is the reason public key encryption was
developed, i.e. to authenticate electronic messages and prevent denial or repudiation
by the sender or receiver.

Privacy: For the case of online banking personal information is very confidential. So
the information should be very much private. The banks should ensure the privacy of
all these information.

Availability: The bank should maintain their service at every moment. The customers
of online banking are time conscious and time is much more important to them. So the
service should be available all the time.

online Banking products and services

Online Banking products and services can include wholesale products for corporate
customers as well as retail products for individual customers. Ultimately, the products and
services obtained through online banking may mirror products and services offered through
other bank delivery channels. Some examples of online products and services include:

Cash management

Automated clearinghouse transactions

Bill presentment and payment

Balance inquiry

Funds transfer

Downloading transaction information

Bill presentment and payment

Loan applications

Investment activity

Other value-added services

Other internet banking services may include providing internet access as an Internet Service
provider (ISP). Historically, banks have used information systems technology to process

checks (item processing), drive ATM machines (transaction processing), and produce reports
(management information systems). In the past, the computer systems that made the
information systems operate were rarely noticed by customers. Today, websites, electronic
bill presentment and payment systems are an important way for banks to reach their
customers.
What is a Customer?
In general terms, a customer is a person or organization that a marketer believes will benefit
from the goods and services offered by the marketers organization. As this definition
suggests, a customer is not necessarily someone who is currently purchasing from the
marketer. In fact, customers may fall into one of three customer groups:

Existing Customers Consists of customers who have purchased or otherwise used

an organizations goods or services, typically within a designated period of time. For
some organizations the time frame may be short, for instance, a coffee shop may only
consider someone to be an Existing Customer if they have purchased within the last
three months. Other organizations may view someone as an Existing Customer even
though they have not purchased in the last few years (e.g., television manufacturer).
Existing Customers are by far the most important of the three customer groups since
they have a current relationship with a company and, consequently, they give a
company a reason to remain in contact with them. Additionally, Existing Customers
also represent the best market for future sales, especially if they are satisfied with the
relationship they presently have with the marketer. Getting these Existing Customers
to purchase more is significantly less expensive and time consuming than finding new
customers mainly because they know and hopefully trust the marketer and, if
managed correctly, are easy to reach with promotional appeals (i.e., emailing a special
discount for new product).

Former Customers This group consists of those who have formerly had relations
with the marketing organization typically through a previous purchase. However, the
marketer no longer feels the customer is an Existing Customer either because they
have not purchased from the marketer within a certain time frame or through other
indications (e.g., a Former Customer just purchased a similar product from the
marketers competitor). The value of this group to a marketer will depend on whether

the customers previous relationship was considered satisfactory to the customer or

the marketer. For instance, a Former Customer who felt they were not treated well by
the marketer will be more difficult to persuade to buy again compared to a Former
Customer who liked the marketer but decided to buy from someone else who had a
similar product that was priced lower.

Potential Customers The third category of customers includes those who have yet
to purchase but possess what the marketer believes are the requirements to eventually
become Existing Customers. Locating Potential Customers is an ongoing process for
two reasons. First, Existing Customers may become Former Customers (e.g., decide
to buy from a competitor) and, thus, must be replaced by new customers. Second,
while we noted above that Existing Customers are the best source for future sales, it is
new customers that are needed in order for a business to significantly expand. For
example, a company that sells only in its own country may see less room for sales
growth if a high percentage of people in the country are already Existing Customers.
In order to realize stronger growth the company may seek to sell their products in
other countries where Potential Customers may be quite high.

CUSTOMER PERCEIVED VALUE

According to BusinessDictionary.com(2007-2008) defines the value offered by a firm as:
Extent to which a goods or service is perceived by its customer to meet his or her needs or
wants, measured by customers willingness to pay for it. It commonly depends more on the
customers perception of the worth of the product than on its intrinsic value
Expand of online banking
Numerous factors are motivating banks towards online banking. The challenge is to make
sure the savings from online banking technology more than offset the costs and risks
associated with conducting business in cyberspace.
There are many market factors that drive a banks strategy towards on line banking.
Some are discussing below:

Cost efficiencies: Banks can deliver banking services on the internet at transaction costs far
lower than traditional ways. The actual costs to execute a transaction will vary depending on
the delivery channel used. These costs are expected to continue to decline.
Revenue Enhancement: By reducing cost and attracting new customer bank can increase its
revenue.
Competition: The competitive pressure is the chief driving force behind increasing use of
online banking technology, ranking ahead of cost reduction and revenue enhancement. Banks
see online banking as a way to keep existing customers and attract new ones to the bank.
Geographical Reach: Online Banking allows expanded customer contact through increased
geographical reach and lower cost of delivery channels. In fact some banks are doing
business exclusively via the internet they do not have traditional banking offices and only
reach their customers online.
Branding: Relationship building is a strategic priority for most banks. Online banking
technology and products can provide a means for banks to develop and maintain an ongoing
relationship with their customers by offering easy access to a broad array of products and
services. By capitalizing on brand identification and by providing a broad array of financial
services, banks hope to build customer loyalty, and enhance repeat businesses.
Customer Demographics: Online banking allows banks to offer a wide array of options to
their banking customers. Some customers will rely on traditional branches to conduct their
banking business. Other customers are early adopters of new technologies that arrive in the
marketplace. The challenge to banks is to understand their customer base and find the right
mix of delivery channels to deliver products and services profitably to their various market
segments.
As use of the internet continues to expand, more banks are using the web to offer products
and services or otherwise enhance communications with consumers. The internet offers the
potential for safe, fast, and convenient new ways to shop for financial services and conduct
banking business, any day, any time.
Global scenario of online banking

Online banking has grown gradually in the UK over the past decade and is now used by 39%
of adults, or 17 million people. But growth has slowed in the past couple of years. Thats odd
because only46% of UK Net users access their bank accounts online, yet 74% regularly shop
online. By 2012, it is expected that 44% of adults to use online banking in the UK, or nearly
22 million people. It is hoped that between 2009 and 2014, the total number of US online bill
payment households will increase from 48 million to 63 million. Online banking has grown
steadily in France over the past decade, boosted by the growth in Net use overall, and is now
used by 31% of adults, or 15 million people. Growth to continue at a similar rate for the next
five years because French Net users are becoming increasingly confident with the channel
and because banks can still do more to persuade customers to bank online, starting with
reducing or eliminating the charges that many still impose on customers who bank online. By
2013, it is expected that 42% of adults to use online banking, or more than 22 million people.
With only 12% of Swedish banking customers using branches, Sweden has the lowest branch
use in Europe. Swedish banks have successfully migrated the majority of their customers to
ATMs and online banking 83% and 71%, respectively. It is projected that, by 2012-2013,
81% of Dutch and 47% of German consumers will use Internet banking.
THE SUPPORTING IT INFRASTRUCTURE
Though the first main frame computer came to Bangladesh in 1964, but the usage of PC
became popularize very late to the common people. Several large banks and private
entrepreneurs in industrial sectors are the path makers of achieving benefits from computer
and computerized applications. Bureau of Statistics and a few nationalized banks are the
leaders in using computer in government sector by processing data and information, while
industrial concerns in private sectors are the leaders in applying computer for their
accounting, payroll and inventory related applications.
Today the people are getting more technology conscious. They are well aware of the benefits
of the technology. This made many people a user of the internet facilities. The number of
users increased fast over the years.
Internet Usage and Population Statistics:
No. of Users

Population

YEAR

Source: World Bank Statistics and Data

for Bangladesh

2000
2007
2009
2010
2011

100,000
450,000
556,000
617,300
5,501,609

134,824,000
137,493,990
156,050,883
158,065,841
158,570,535

0.1
0.3
0.4
0.4
3.5

Though we have seen some sharp rise in the growth of internet and internet users, there are
some impediments on the way to the growth of internet in Bangladesh. Some of the reasons
are listed below:

Underdeveloped IT industry

Lack of efficient use of IT network

No direct access to the information super highway

Limited skilled human resources

Poor telecommunication infrastructure

Low-level of computer literacy

Widespread poverty

Low telephone penetration

Lack of software in the Bengali language

Opportunities for a better Internet support

Bangladesh has a nationwide fiber-optic network established by Bangladesh Railway.

This facility can provide excellent backbone for nationwide voice and data
communication.

As we have no direct access to the information super highway the only option is to
communicate through satellite. Satellite communication is costlier than fiber optic.

To avoid satellite communication and its high cost, we can establish the missing link
to the information super highway if the nation-wide fiber-optic network is allowed to
link up with the high speed fiber-optic backbone in India.

Availability of telephone lines and reduction in service fee will attract many
professionals into internet arena.

Young generation should play a vital role in developing IT industry in Bangladesh.

ONLINE BANKING OF BANGLADESH

At present the banks in Bangladesh are using the limited electronic banking services. It is
expected that bank can attain more profit and offer better services to its customers by,
introducing on line banking facilities. The foreign commercial banks operating in Bangladesh
like Standard Chartered Bank, Citi Corp. N.A. and the HSBC are the pioneers to introduce
the electronic banking facilities. They provide ATM, Debit Card, Credit Card, Home
Banking, Internet Banking, Phone Banking, on line banking etc. services.
Among the indigenous banks, the Private Banks are ahead of the public banks. Prime bank
ltd, Dhaka bank ltd., BRAC bank ltd., Dutch-Bangla bank ltd, Eastern Bank Ltd., Mercantile
bank Ltd., and IFIC Bank Ltd. is already stepped on towards electronic banking facilities.
Apart from these banks, Mutual Trust Bank ltd. also introduced ATM service. Among the four
Nationalized Commercial Banks (NCBs), Agrani and Janata bank has some access to the
electronic banking facilities. Bangladesh Bank, the Central Bank of Bangladesh, is also trying
to formulate the structure of electronic banking facilities. All of these private banks offering
limited on line banking services. Most of these banks only offer services by providing ATM
card. Most of them do not offer wide range of internet banking facilities which is the main
advantages of e-banking. Can deposit money in any branch and withdraw money from ATM
machine- is treated the best e-banking facility available in Bangladesh While electronic
money transfer starts in a limited edition. Sonali and Agrani Bank Ltd., is also providing on
line banking services in a limited scale. Rupali Bank Ltd. is also developing on line banking.
BASIC bank which is 100 percent public owned but served as private sector banking has a
technological advancement.
A broad spectrum of Internet banking services, a subset of electronic finance, is available in
Bangladesh with different degree of penetration. The credit card is available from VISA,
MasterCard and VANIK. Some foreign banks provide electronic fund transfer (EFT) services.
It is at an early stage and used on a very limited scale. Microchips embedded Smart Card is
also becoming popular in the country, particularly for utility bill payment. Automated teller
machine (ATM) is expanding rapidly in major cities. A group of domestic and foreign banks
operate shared ATM network, which drastically increase access to this type of electronic
banking service. The network will gradually be extended to other parts of the country.

The e-banking services provided by the banks in Bangladesh could be divided in three
groups: ATM Services, Internet Banking (i-Banking), and SMS Banking. The scopes of these
services are vast, but the banks in Bangladesh do not provide all of these services. Some of
the banks provide these or other services and charges fees for ATM transaction, SMS and iBanking while the western banks inspire clients to do ATM banking without fee or a
minimum fee to reduce banking expense.
Last couple of years shows dramatic improvement in the awareness situation in the banking
sector regarding the comprehensive application of ICT. Local software companies have been
starting competition to supply useful complete banking software with all the basic features of
banking module. However, many forms of electronic banking services are not possible to
offer in Bangladesh at this moment due to the technology backwardness, infrastructural
underdevelopment and legal infrastructure. Those products would be very useful for exportoriented industry to reduce lead-time in export and keep comparative advantage in the
international market.
PROBLEM OF ONLINE BANKING SYSTEM IN BANGLADESH
Numerous problems have been identified in the field of on line banking system in
Bangladesh. Some of them are in the followings:
Inefficiency and inadequate knowledge of the bank management about the on line banking.
Lack of proper Strategic plan to gain and retain market share of the indigenous banks.
Lack of international standard communication channel.
High cost of establishing on line banking system.
Inadequate back and front office management.
Lack of integrated plan among the banks and the Central Bank authority.
Inefficient Clearing House Facilities.
Inappropriate software and less trust by the Bank authorities on local software.

Biased-ness of the management of bank towards foreign software.

Legal barriers and appropriate policy framework.
SWOT ANALYSIS
To find out the viability of a particular product we must perform a SWOT Analysis of the
product. This will analyze the Strengths, Weaknesses, Opportunities, and Threats of the
particular product. For analyzing the performance of Online Banking in Bangladesh we the
following SWOT Analysis is considered.
STRENGTH

Online Banking is new in our market. Only a few banks are now offering online
services in solving banking problems. Most of the banks are offering only accounting
information online. Actual fund transfer and fund disbursement is not possible in all
the banks that are offering online services. So this product will enjoy the benefit of a
first mover.

It is cheap both for the banks and the customers. The bank will be able to lower down
the overhead costs and make more profit out of it. Online banking will require less
manual workers. Again the customers will be able to save time as well as money for
their transaction needs.

Internet banking is convenient as the service is available all the time at just a click
away.

WEAKNESSES

Security breakdown: The system will have a problem with the identification of the
individual who is initiating the transaction. In Bangladesh, the identification of an
individual is not yet supported digitally. So there will be a problem in moving to the
Internet era for banking purposes just now. First we will have to develop a digital
database of the users of the internet banking services.

The transaction can be cancelled only via internet. The internet infrastructure of our
country is not that much supportive to provide all time access to the web. So there
will be a problem in executing the service with its full functionality.

OPPORTUNITIES

Non-branch banking is becoming popular in our country. Many banks are now
offering non-branch banking facilities. A person can withdraw or deposit money in
any branch of the bank he has account with. So moving to online banking will allow
the banks to offer non-branch banking facilities.

The internet services are becoming very common to us. So a service offered through
the internet will be widely accepted in the near future.

THREATS

People have concern about security and privacy. They like to feel their money with
their hand. They actually dont believe in virtual money transfer.

In the field of IT new technology is coming every day. The one which is very popular
today might get obsolete tomorrow. So to have a competitive edge over the
competitors the banks must always update their services.

The movement towards online banking might marginalized the customers who do not
have internet access or who are not technologically sound.

ONLINE SERVICES OFFERED BY SOME BANK OF BANGLADESH

In Bangladesh more than 50 scheduled banks are operating their activities to serve customers.
Many of those banks offer exciting online product and services. Some are described below:
Dutch Bangla Bank:
Internet Banking Features

Account Summary: The Customer will be able to view the list of Current, Saving,
Term Deposit and Loan accounts with the current balance.

Account Details: The Customer can choose a particular account and see the account
details including unclear fund, limit, interest accrued etc.

Account Activity: The customer can see or print his transaction activity in a given
account for a particular period.

Transfer Funds: The customer can transfer funds from one of his accounts to another
of his accounts within the bank.

Standing Instructions: The customer can setup, modify or delete standing instructions
for transferring fund from one of his account to another account (his account or 3rd
party).

Open/Modify Term Deposit: The customer can open a term deposit by transferring
funds from one of his current or savings accounts with the bank. He can also modify
the TD and redeem / part-redeem it.

Loan Repayments: The customer can make payment of the loan installment from his
CASA account.

Statement Request: The customer can make a request for account statement for a
required period. The bank will manually service this request.

Cheque Book Request: The customer can make a request for a Cheque book.

Cheque Status Inquiry: The customer can choose an account and enter the Cheque
number for which the status should be viewed.

Stop Payment Cheque: The customer can mark his Cheque leaf as stop payment.

Interest Rate Inquiry: The customer can query on the interest rates on CASA & Term
Deposit Products.

Foreign Exchange Rate Inquiry: The customer can query on the Foreign Exchange
(FX) Rates using this function.

Refill Pre-Paid Card: The customer can buy a refill number for his pre-paid mobile
phone or ISP link.

Change Password: The customer can change his Internet Banking Password using this
function.

Additional Internet Banking Features for Corporate Banking

Letter of Credit: The customer can initiate the LC application through Internet
Banking.

Bank Guarantee: The customer can initiate the Bank Guarantee through Internet
Banking.

Limits Query: The customer can view his Loan Limits and Limits Utilization through
Internet Banking.

Eastern Bank Limited

EBL Internet banking application addresses the needs of small, individual and corporate
account holders of the bank. This application provides a comprehensive range of banking
services that enable the customer to meet most of their banking requirements over the Net.
The transactions that are supported by the internet banking provided by Eastern Bank Limited
are as follows:

Round the clock access

Real-time transaction history

Loan account inquiry

Pay bills
o BTCL
o GRAMEEN PHONE

o PACIFIC BD. TELECOM (CITYCELL)

o ORASCOM LTD. ( BANGLALINK)
o AIRTELL LTD.
o ACCESS TELECOM LTD.
o AGNI SYSTEMS LTD.
o DEKKO AIRNET LTD.
o EBL CREDIT CARD
o Transfer to own accounts
o Issue Pay Order
o Open new fixed deposits
HSBC
Internet Banking service manage customers finances. They can take control of their account
whether at home or abroad. They can access their accounts anytime, from anywhere in the
world! Other services include:

Access your account 24/7 (subject to planned maintenance periods).

View your balances and transactions

Make transfers between eligible HSBC accounts.

Online Bill Payments Make life easier. Pay your bills online

Create, view, amend and cancel standing orders

Apply online for different products.

Update your email address, contact telephone numbers and other personal information

Foreign Exchange Perform foreign exchange enquiries

Statements View, print and download your Statements to track your transactions.

Total Banking Portfolio, Net worth & Account Summary Check/update your
personal information/account.

Time Deposits Placement of new time deposit, check or update your personal
information and accounts.

Mercantile Bank
Clients can access their personal and business accounts and manage their money 24/7 hours a
day. The highest level of encryption protection safeguards each and every ones account
information. Through electric banking one can easily avail following services:

Check account balances and deposits

See which checks have cleared

Transfer funds between accounts

Schedule future transfers

View recent transactions

Make bill payments

View images of cleared checks daily

Statement viewing and canceled check retrieval

How to work CitiDirect

To gain more control over ones cash positions, one needs easy access to accounts and
information in real time. One needs an application that is easily customized by individual
users and streamlines day-to-day operations. One will need the convenience of local banking
and the global solutions of an industry leader. The solution is CitiDirect Online Banking.
The motto of CitiDirect is Money isnt everything but it can be everywhere. The facilities
available are:

Online Direct Debit Transaction Process

Information Reporting

Real-time information reporting for more effective cash management

Delivered with the highest level of security

Easy-to-use application

World Link through CitiDirect

comprehensive payment transaction solution

Flexible, streamlined functionality

Reliability, speed and information

Payments through CitiDirect

A comprehensive payments solution globally and locally

Simplified, secure transaction management

Timely, accurate information

E-mail and Wireless Banking Alerts by CitiDirect

SCB

Standard Chartered offers the client a comprehensive range of Cash Management services.
Whether it is a financial institution, a multi-national corporation or a domestic company,
Electronic Banking application has the capability to support full range of Cash Management
reporting and transaction initiation needs. It provides the secure, reliable and effective link
between the client and clients accounts anywhere across the Standard Chartered network.
Electronic Banking provides various types of support through a wide range of operating
systems, sweeping transaction accessories with the provision of reporting features or other
special functions. There are 10 offices and 50 employees under this division, which operates
in 26 countries.
COMPANY OVERVIEW
INTRODUCTION
This study is based on customer perception of online banking. And the customers who
participate in this study as respondent are from IFIC Bank Ltd. So, it is necessary to know the
bank. This chapter discuss about the bank from different angle.
HISTORICAL BACKGROUND OF IFIC BANK LTD.
International Finance Investment and Commerce Bank Limited (IFIC Bank) is banking
company incorporated in the Peoples Republic of Bangladesh with limited liability. It was
set up at the instance of the Government in 1976 as a joint venture between the Government
of Bangladesh and sponsors in the private sector with the objective of working as a finance
company within the country and setting up joint venture banks/financial institutions aboard.
In 1983 when the Government allowed banks in the private sector, IFIC was converted into a
fully fledged commercial bank. The Government of the Peoples Republic of Bangladesh now
holds 32.75% of the share capital of the Bank. Directors and Sponsors having vast experience
in the field of trade and commerce own 8.62% of the share capital and the rest is held by the
general public. Initially, the banks authorized capital was Tk 100 million divided into 1
million ordinary shares of Tk 100 each. IFIC conducts all types of commercial and
investment banking functions.
VISIONS OF IFIC BANK LIMITED

To cope with the challenge of the new millennium, it hired experienced and well-reputed
banker of the country from the inception. The bank has efficient and dedicated professional
and equipped with modern technology to provide the best service in the need of the people
and thus realize its vision. So its vision: to be the most efficient bank in terms of customer
service, profitability and technology application.
MISSION OF IFIC BANK LIMITED
To provide service to their clients with the help of a skilled and dedicated workforce whose
creative talents, innovative actions and competitive edge make their position unique in giving
quality service to all institutions and individuals that bank care for.
The bank is committed to the welfare and economic prosperity of the people and the
community. Bank wants to be the leader among banks in Bangladesh and make our indelible
mark as an active partner in regional banking operating beyond the national boundary.
In an intensely competitive and complex financial and business environment, bank
particularly focuses on growth and profitability of all concerned.
GOALS & OBJECTIVES OF IFIC BANK LIMITED:
A Bank operates its activities not only to earn profit, but also to serve its clients in accordance
with their needs and demands. In this sense, customer service is one of the important jobs of
the Banks. The main objectives of the study are to evaluate the efficiency and effectiveness of
the IFIC Bank Ltd. officials in servicing their customers.
Maximization of profit through customer satisfaction is the main objective of the Bank .in
addition .the others relevant objectives are:
1. To develop saving attitude and making acquaintance with banking facilities.
2. To be market leader in high quality banking products and services.
3. To contribute in economic growth.
4. To help in poverty alleviation and employment generations.

5. To ensure an adequate rate of return on investment.

6. To ensure optimum utilization of all available resources.
7. To remain one of the best banks in Bangladesh in terms of profitability and assets
quality.
8. Achieve excellences in customer service.
9. To play a significant role in the economic development of the country.
10. To protect money laundering
CORPORATE INFORMATION PROFILE
Name of the Company

International Finance Investment and Commerce (IFIC)

Bank Limited

Legal Form
IFIC Bank Limited was incorporated in Bangladesh and registered with Joint Stock
Companies and Firms as a public company limited by sharesCompany Registration
Number4967,Dated October 08,1976Listing StatusListed with Dhaka stock Exchange Ltd.
(DSE) and Chittagong stock Exchange Ltd. CSE In 1986 $1995 Respectively.Market
CategoryA categoryTax Payer Identification Number ( TIN)210-200-0537,LTU,DHAKAVat
Registration Number9021077014REGISTERED OFFICEBDBL Bhaban (10th, 12th, 17th ,18th ,
19th floor )
8 Rajuk Avenue, Dhaka -1000
Tel:9563020-29,fax.9562015
TelexIFIC BD
E-MAIL: info@IFICbankbd.com
Web:www.IFICbankbd.comName of ChairmanMr. Salman F RahmanName of Managing
DirectorMr. Mohammad AbdullahNumber of Branches101 Domestics & 4 Affiliates

MILESTONES IN THE DEVELOPMENT OF IFIC BANK

1976 Established as an Investment & Finance Company under arrangement of

joint venture with the Govt. of Bangladesh.
1980 Commenced operation in Foreign Exchange Business in a limited scale.
1982 Obtained permission from the Govt. to operate as a commercial Bank, Set
up its first overseas joint venture (Bank of Maldives Limited) in the
Republic of Maldives (IFICs share in Bank of Maldives limited was
subsequently sold to Maldives Govt. in 1992)
1983 Commenced operation as a full-fledged commercial bank in Bangladesh.
1985 Set up a joint venture Exchange Company in the Sultanate of Oman, titled
Oman Bangladesh Exchange Company (Subsequently renamed as Oman
International Exchange, LLC)
1987 Set up its first overseas branch in Pakistan at Karachi
1993 Set up its second overseas branch in Pakistan at Lahore
1994 Set up its first joint venture in Nepal for banking operation, titled Nepal
Bangladesh Bank Ltd.
1999 Set up its second joint venture in Nepal for lease financing, titled Nepal
Bangladesh Finance & Leasing Co. Ltd. (Which was merged with NBBL
in 2007)
2003 Set up a new Bank in Pakistan, NDLC-IFIC Bank Ltd. (Subsequently
renamed as NIB Bank Ltd.) and the Overseas Branches of IFIC and a
local leasing company, NDLC were amalgamated with and into it.
2005 Acquired MISYS solution for real time online banking application Core
Risk Management implemented
2007 Launched VISA branded Credit Card (completed full range of Cards i.e.
Debit, Credit & Prepaid by 2010)
2010 Set up Offshore Banking Unit (OBU)
2011 Established a fully owned subsidiary exchange company named IFIC
Money Transfer (UK) Ltd.
2012 Launch 100th Branch at 24th June

TECHNOLOGY

Since the beginning of its journey as a commercial bank in 1983, IFIC Bank has been giving
great emphasis on the adoption of modern technology. It became the pioneer in the field of
automation by introducing computerized branch banking right in the same year.
Subsequently, all the branches were brought under similar automated platforms with
upgraded software applications to offer all the critical banking features. At present all 100
domestic branches are fully computerized under networked environment.
The Bank has taken up a new project with Misys International Banking System Inc. (UK) to
further upgrade its banking operation to state-of-art world class on-line banking solutions to
provide faster and even more convenient centralized services to the clients.
Besides, the Bank is also operating fully on-line Automated Teller Machine (ATM) services
under the banner Q-Cash at a number of locations in Dhaka and Chittagong. The ATM
facilities are available to the customers at Q-Cash booth.
Since the importance of Web presence in the Internet is absolutely critical, IFIC Web Site
www.ificbankbd.com has long been launched for the convenience of the customers, where all
the activities and information are constantly being posted and updated. A Central Mailing
System is operational at the Head Office to let the customers have direct electronic access to
the selected staff.
SOFTWARE USE BY IFIC BANK
Service
Core Banking

Software Use
Equation Branch Server

Vendors Name
Misys International

Banking System Ltd. UKEquation Branch AutomationDOTrade InnovationDOSMS

BankingMobile Banking ManagementSSL Wireless LimitedInternet BankingiBankingInhouseVarious CardsQ-cashIT Consultants Limited (ITC)VISA ATM Shared
(VISA/MASTER)Tranzware,Compass

PlusIT

Consultants

Limited

(ITC)POS

TerminalTranzware Online SwitchingIT Consultant, BD, RussiaEFTMoney Gram XpressUAE Exchange, UAEPlacid ExpressPlasic N.K corporation
USACoinstar Money TransferCoinstar Money Transfer,

IndiaSWIFTSWIFTBelgiumSWIFT Alliance PC CONNECTNBPKaraci, PakistanOffline

Branch
ComputerizationBexiBank4000Beximco Computers
LIST OF BRANCH & DATE OF COMPUTERIZATION
SL
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

CODE
2030
2056
2155
1197
1112
1096
6187
1011
1070
5064
3138
6188
4166
5202
1177
6082
4067
2034
2054
6086
2040
2050
2035
2148
2044
2157
1193
1178
1006
6083
1014
1023

BRANCH NAME
AGRABAD BRANCH
ALANKER MORE BRANCH
ASHUGANJ BRANCH
ASHULIA BRANCH
BAJITPUR BRANCH
BANANI BRANCH
BANESHWAR BRANCH
BANGSHAL BRANCH
BASHUNDHARA BRANCH
BARISAL BRANCH
BEANI BAZAR BRANCH
BELKUCHI BRANCH
BENAPOLE BRANCH
BHOLA BRANCH
BOARD BAZAR BRANCH
BOGRA BRANCH
BORO BAZAR BRANCH
BRAHMANBARIA BRANCH
CDA AVENUE BRANCH
CHAPAI NAWABGANJ BRANCH
CHAWK BAZAR BRANCH
CHOUMUHANI BRANCH
COMILLA BRANCH
COMPANYGANJ BRANCH
COXS BAZAR BRANCH
CHANDINA BRANCH
DANIA BRANCH
DHAMRAI SME/KRISHI BRANCH
DHANMONDI BRANCH
DINAJPUR BRANCH
ELEPHANT ROAD BRANCH
FARIDPUR BRANCH

ONLINE FROM
26-06-08
28-12-10
29-12-10
26-11-07
23-04-09
02-04-08
04-02-10
08-10-08
31-07-11
12-11-09
23-10-08
29-10-09
14-01-10
26-12-11
09-11-08
27-11-08
12-02-09
12-03-09
22-01-10
19-03-09
10-07-08
28-01-10
13-11-08
09-04-09
26-02-09
28-11-11
28-12-08
12-12-10
17-04-08
30-07-09
31-07-08
03-12-09

33
34
35
36
37
38
39
00
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72

2152
1008
2041
1109
3151
1002
2137
9900
1005
4061
6058
4168
6189
1017
1195
2031
4060
1121
4062
1025
2153
1118
1019
1013
1094
1001
1004
3046
1115
1022
1201
6085
1003
1110
1175
1029
1020
1016
4163
1028
6084

FATIKCHARI BRANCH
FEDERATION BRANCH
FENI BRANCH
GHORASAL BRANCH
GOALA BAZAR BRANCH
GULSHAN BRANCH
HATHAZARI BRANCH
HEAD OFFICE
ISLAMPUR BRANCH
JESSORE BRANCH
JOYPURHAT BRANCH
KALIGANJ SME/KRISHI BRANCH
KASHINATHPUR SME/KRISHI BRANCH
KAWRAN BAZAR BRANCH
KERANIGANJ BRANCH
KHATUNGANJ BRANCH
KHULNA BRANCH
KONABARI BRANCH
KUSHTIA BRANCH
LALMATIA BRANCH
MADAM BIBIR HAT BRANCH
MADHABDI BRANCH
MALIBAGH BRANCH
MIRPUR BRANCH
MOHAKHALI BRANCH
MOTIJHEEL BRANCH
MOULVI BAZAR BRANCH
MOULVI BAZAR BRANCH (DIST.)
MUKTARPUR BRANCH
MYMENSINGH BRANCH
MOHAMMADPUR BRANCH
NAOGAON BRANCH
NARAYANGANJ BRANCH
NARSINGDI BRANCH
NAWABGANJ SME/KRISHI BRANCH
NAWABPUR ROAD BRANCH
NAYA PALTAN BRANCH
NETAIGANJ BRANCH
NOAPARA BRANCH
NORTH BROOKE HALLROAD BRANCH
PABNA BRANCH

25-03-09
13-09-07
13-11-08
20-11-08
23-10-08
24-05-07
25-03-09
23-02-08
12-06-08
19-02-09
23-12-10
01-03-08
11-10-10
01-03-08
30-11-08
10-07-08
12-02-09
16-10-08
19-11-09
31-07-08
22-01-10
08-10-08
28-08-08
27-12-10
28-12-08
08-11-07
15-05-08
30-10-08
12-02-10
09-04-09
05-12-11
19-03-09
22-05-08
20-11-08
14-06-10
12-06-08
28-08-08
29-05-08
19-02-09
11-09-08
19-11-09

73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100

1027
1173
4169
1072
6080
6081
1198
4065
1171
2042
1007
1092
2132

PALLABI BRANCH
PANCHABOTI BRANCH
PORADAH BRANCH
PRAGATI SARANI BRANCH
RAJSHAHI BRANCH
RANGPUR BRANCH
RUPGONJ BRANCH
SATKHIRA BRANCH
SAVAR BAZAR BRANCH
SHAH AMANAT MARKET BRANCH
SHANTINAGAR BRANCH
SHARIATPUR BRANCH
SHEIKH
MARKET
BRANCH

30-04-08
18-11-09
11-10-10
23-12-09
04-02-10
27-11-08
08-10-08
14-01-10
26-10-09
17-07-08
11-09-08
23-04-09
(OLD)/ 25-03-09

6179
2045
3047
1090
3043
3033
1126
1091
1076
2036
1174
3139
3049
1024
1203

NOZUMIA HAT BRANCH (NEW)

SHETABGONJ SME/KRISHI BR
SHEIKH MUJIB ROAD BR
SHREEMONGAL BRANCH
STOCK EXCHANGE BRANCH
SUBID BAZAR BRANCH
SYLHET BRANCH
TAKERHAT BRANCH
TANBAZAR BRANCH
TANGAIL BRANCH
TERRI BAZAR BRANCH
TONGI SME/KRISHI BRANCH
TULTIKAR BRANCH
UPOSHOHAR BRANCH
UTTARA BRANCH
GULSHAN TEJGAON LINKROAD BRANCH

15-12-10
17-07-08
30-10-08
07-10-09
14-08-08
07-08-08
03-12-09
02-09-09
11-10-10
17-08-08
27-12-10
07-08-08
14-08-08
24-04-08
24-06-12

Source: IFIC Bank Ltd

LIST OF PRODUCTS/SERVICES OF IFIC BANK LTD
Deposit Product: Savings Account, Smart Savings Account, Super Saving Plus More
Money, Current Account, Special Notice Deposit SND Account, Fixed Deposit Receipt
(FDR), Pension Savings Scheme (PSS), School Savings Plan A Plus, Monthly Income
Scheme Protimash, Three Years Deposit Plus (3YDP), Double Return Deposit Scheme
(DRDS), Millionaire Dream Plan (MDP)

NRB Account: Foreign Currency A/C, NFCD, Wage Earners Development Bond, USD
Premium Bond, USD Investment Bond, Inward Foreign Remittance
List of Exchange Houses:
SL. NO.
01.
02.
03.
04.
05.
06.
07.
08.
09.

EXCHANGE HOUSE
Oman International Exchange LLC, Oman
Placid N. K. Corporation, USA (Global)
Multinet Trust Exchange LLC, UAE
Al-Fardan Exchange, UAE
Coinstar Money Transfer Ltd., UK (Global)
MoneyGram Payment System, USA (Global)
Xpress Money Services Ltd., UK (Global)
Wall Street Finance LLC, USA
Ceylinco FastCash, Sri Lanka (Global)

Source: World Bank

Loan Products:
IFIC Easy Loan, Consumer Durable Loan, Parua (Education Loan), Thikana (Home Loan),
Any Purpose Loan, IFIC Marriage Loan, CNG Conversion Loan, IFIC Home Renovation
Loan, IFIC Medical Loan, IFIC Holiday Loan, IFIC Peshajeebi Loan, IFIC Auto Loan
Other Products / Services: Q-cash, VISA Debit Card, Credit Card, SMS banking, Internet
banking
LIST OF ONLINE PRODUCTS/SERVICES OF IFIC BANK LTD
Deposit Product: Savings Account, Smart Savings Account, Super Saving Plus More
Money, Current Account, Special Notice Deposit SND Account, Pension Savings Scheme
(PSS), Double Return Deposit Scheme (DRDS), Millionaire Dream Plan (MDP)
SMS Banking: This service allow customer to do some banking activities through SMS
from their mobile. The services are as follows

Check account balance

Short Statement of last 5 transaction, etc.

POS: Point of Sales Service for the customer who wants to withdraw money from any
branch using their card.
Card Transaction: This product allow customer to withdraw money anytime from ATM
booth. Here, customer can do account transaction, balance enquiry etc. They dont need to
carry much cash with them.
Cash and Cheque Deposit and Withdraw: Customer can deposit cash and cheque in any
branch of the bank. A customer can also withdraw money from any branch whether he has an
account in that branch or not.
Internet Banking: This service allow customer to do some banking activities through
internet from his home or office or anywhere of the world. The services are as follows

Check account balance

View and verify transactions on account

View Statement

Print Account Summary

Print Account Statement

View Check-Book usage status

View & update short profile

Results
INTRODUCTION
Here I present the data collected from the two samples, i.e, and the interviews with the online
banking staff of IFIC Bank Ltd and the collective response to the questionnaires by the
customers. The presentation will be in two parts, data collected from the bank staff and that
collected from the customers.

BACKGROUND OF THE BANK

Before I sort out and analyzed the data collected, I present a background of the bank with
regards to what the online products and services they offer. This information was gathered
from their websites and brochures and compared with what was gathered from the interview
with bank staffs and what customers confirmed they received from online banking.
BACKGROUND OF THE RESPONDENTS
Staff members of bank represent the bank. They were made up of three female and two male
respondents. All the five respondents have worked in their banks for over three years and
were quite familiar with the operations of online banking. All of the respondent customers
has at least an account in Progoti Sarani Branch of IFIC Bank and also familiar with all the
online product and services offered by the bank.
MAJOR ONLINE BASE PRODUCTS AND SERVICES PROVIDED BY THE BANK
Deposit Product: Savings Account, Smart Savings Account, Super Saving Plus More
Money, Current Account, Special Notice Deposit SND Account, Pension Savings Scheme
(PSS), Double Return Deposit Scheme (DRDS), Millionaire Dream Plan (MDP)
SMS Banking: This service allow customer to do some banking activities through SMS from
their mobile. The services are as follows

Check account balance

Short Statement of last 5 transaction, etc.

POS: Point of Sales Service for the customer who wants to withdraw money from any branch
using their card.
Card Transaction: This product allow customer to withdraw money anytime from ATM
booth. Here, customer can do account transaction, balance enquiry etc. They dont need to
carry much cash with them.

Cash and Cheque Deposit and Withdraw: Customer can deposit cash and cheque in any
branch of the bank. A customer can also withdraw money from any branch whether he has an
account in that branch or not.
Internet Banking: This service allow customer to do some banking activities through
internet from his home or office or anywhere of the world. The services are as follows

Check account balance

View and verify transactions on account

View Statement

Print Account Summary

Print Account Statement

View Check-Book usage status

View & update short profile

In contrast to traditional banking products/services, all the product and services of online
banking can be obtained from the traditional channel. The difference here therefore rests
solely on the difference in channel delivery.
DATA COLLECTED FROM INTERVIEW WITH BANK STAFFS TO ADDRESS THE
RESEARCH QUESTION
1. What are online banking products and services that IFIC Bank Ltd offers to their
customers?
2. What are the upcoming online banking products and services that IFIC Bank Ltd is
going to offer their customers?
3. What is the perception of customers of online banking?
INTERVIEW QUESTIONS FOR BANKING STAFF

1. What are the major online base products / services your bank provides to its
customers?
Answer: According to respondents, major online products/services are as follows: Internet
Banking, SMS Banking, Card Transaction, Cash and Cheque Deposit and Withdraw. Others
are the same as cataloged and explained in the preceding heading and this corroborated what
I found on their websites, brochures, commercials and customers identification of the online
products and services that they access from the bank. The feedback from the customers was
especially important because some services could only be assessed with a customer password
and cannot be confirmed by merely visiting the websites.
2. How has online banking improved your banks productivity?
Answer: Live Branch position, Customers flexibility to enjoy banking facilities from any
branch of the bank all over Bangladesh by opening accounts in one branch. Customers are
very happy with that. The respondents indicate that online banking has increased the
productivity of their bank as well as that of their customers. Both the bank and its customer
save more time and cost, and in addition, they save more man-hour for the bank. As
customers are spared long queues in the bank and the trouble they have to take in going
through heavy traffic and long distances to reach their bank, corresponding, and the pressure
on traditional banking outlets are reduced thereby improving services for a fewer number of
customers.
3. What kind of feedback do you receive from your customers on online banking
services?
Answer: According to respondents, customers have a mixed reaction about online banking
services. Some are satisfied with existing online services and some are not. They want more
services. Some complain about slow uploading of banking website and links. A recent event
depicts a clear picture of the mixed reaction of customers. According to respondents, their
PSS (Pension Savings Scheme) account was not online. But recently they transform the
account into online product. A new customer will get this facility from the first day of
account opening. He or she can deposit his or her money into a savings account in any branch
of the bank. Every month a certain amount of money (written in A\C opening form) will be
deducted from their saving account to PSS account. They dont need to come to bank every

month to deposit money, they dont need to remember the date of depositing money, they
dont need to go to a branch where they opened the account, need not to worry about late fees
etc. This online product (PSS) surely comes with solution of many problems. Whenever any
customer come to open a PSS account and know that he has to open a saving account also,
many of them become happy to know that they can enjoy the benefits described above. But
some are not interested to this new online product. They are alright with the problems that
can be solved by this online PSS. In case of old customer, the respondents face more
problems. Whenever they asked their old PSS holder that they have to open a new account to
transfer their PSS into online product, some are happily ready to do that to enjoy the facilities
of online banking. But most of the customers become very angry and not ready to do that.
Some argued that the bank should tell the customer about all the rules before starting a new
account not after opening an account. If any new system emerges, that should not apply on
old customers a customer said that.
4. What products/services do you plan to introduce into the online banking in the
future?
Answer: The bank is going to introduce more online products and services to their
customers. These include:

Mobile banking

Card Cheque

Deposit in ATM

Fund transfer from one account to other accounts

Paid utilities bill

Adding some extra features in internet banking

5. What are the challenges that your bank is facing in providing online banking
services?
Answer: The responses to this question are itemized as follows:

The respondents said that high cost of establishing on line banking system is one of
the main challenges for the bank in providing online banking services. Because the
bank has to be sure that the savings from online banking technology is more than the
cost of conducting business in cyberspace.

Poor telecommunication systems and technological infrastructures etc.

The interviewees reveal that there is a clear sense of misgiving about online banking
among some customers who were offered online services. Some of them use internet
only in office and some of them never do.

DATA COLLECTED FROM ONLINE BANKING CUSTOMERS FROM THE

QUESTION POSED IN THE QUESTIONNAIRES
I asked about 100 people. Many of them dont use internet, so they cant enjoy the full benefit
of online banking. They use cards which is also an online product. But they are unfamiliar
with many other online products/services. Here the entire 50 respondents who participate in
this study use internet banking (a part of online banking) that means use internet either in
office or home or both place.
I first present the distribution of online banking customers based on sex, account type and age
distribution. 50 customers participate in it and among them 27 were male respondent and 23
were female respondent. 25 respondents run a saving account, 10 current account and 15
respondents run both current and saving account. 18 were below 25 years, 25 were above 25
years and 7 were above 50 years.
1. Why did you subscribe online banking? And what are the products/services that you
access online from your bank?
Answer: Respondents indicated that they subscribed online services because they use the
internet at home or office, or because they perceived it as modern. Some customers use it
because their bank introduces it.
Regarding the question on the kinds of products and services that the respondents access from
online banking, they enumerated all the products and services that the banks offer online
confirming what I gathered from the interviews, websites, brochures and advertisements.

2. How do the online products and services differ from traditional banking products
and services that you know?
Answer: The respondents did not perceive much difference between online products and
services and those of traditional banking except in the self service dimension of online
banking and the vast information that were readily available online. They also focused on the
time and cost saving advantage of online services. But some customer added that in spite of
using online banking they like traditional banking more than online banking. Because in
traditional banking they can inquiry a matter from bank staffs until it becomes clear to them.
In online banking everything depends on customer to understand a matter by himself. They
also prefer to feel their money with their hand not virtually.
3. How reliable or good is your internet connectivity and how does online banking save
you in terms of monetary and time costs?
Answer: Many of the respondents have problems with internet connectivity. Nonetheless all
respondents felt that they were saving costs from using the internet in terms of time and
money. They explain that for many banking activities they dont need to go bank, it saves
both money and time.
4. What benefits do you get or problems do you encounter with online banking?
Answer: Respondents reiterated the benefits of saving time and cost. Some mentioned about
self service advantages. In case of problem they mentioned about slow connectivity,
downloading of web pages.
5. Do you suffer any security and privacy threat in accessing online banking?
Answer: On the whole, respondents had had no security threats or privacy violation. But
some expressed that in near future privacy can be violated as technology is enhancing day by
day and practice of online banking is also increasing.
6. What kind of additional online products/services would you wish were provided by
your bank?

Answer: Respondents wish they could carry out full transactions with their online banking
with adequate security and also cross transaction with other financial institution. They felt
that the present services provided by their bank is limited compared to what pertained in
other parts of the world.
7. Do you have any message to your bank regarding online banking?
By this question I tried to understand customers satisfaction or dissatisfaction on their bank
regarding online banking.
Answer: Most of the customers run account in more than one bank. They complained that
they get more online services facility in another bank than IFIC Bank.
In case of ATM, some customers complain about unavailability and some customers about
network.
After any kind of transaction, customers want sms notification. But their banks sms
notification alert is irregular. Some feel insecurity for that.
Some customers mentioned that in case of balance transfer to some branches of the bank out
of Dhaka city, the bank takes a online charge, it should be free.
Introducing new rule after opening an account is also disliked by most of the customers. They
think in case of introducing any new rule the bank should consider about old customers.
Some customers requirement is small and they are quite happy with their bank.
8. To what degree has your expectations and requirements been met? How satisfied are
you?
a. Extremely satisfied
b. Satisfied
c. Somehow satisfied
d. Dissatisfied
e. Extremely dissatisfied

Answer: The chart below gives the satisfaction distribution of the respondents:
Description of Results
INTRODUCTION
In this chapter, I discuss the result of the data I collected in relation to the frame of
references, concept and theories that underpin the study. The discussion is presented in three
parts according to the research questions.
RESEARCH QUESTION 1
What are online banking products and services that IFIC Bank Ltd offers to their customers?
Online banking becomes a way of attracting new customer and also impresses the existing
customer. Many researchers view customer value as a key element in achieving company
success. This study tries to identify the kind of product and services IFIC Bank Ltd is offering
to deliver customer value and also the upcoming product and services that are coming to
increase customer value and finally the customers perception who access such product and
services.
The study revealed that online banking is a complementary service to traditional banking in
Bangladesh. In indentifying the products and services, we took a number of approaches. I
examined the website of the bank, read through their brochures and other advertising devices,
interviewed bank staffs and matched the information gathered with customers responses
regarding the product and services. Short list of online products and services is listed below:

Several Deposit Product

SMS Banking

POS: Point of Sales

Card Transaction

Cash and Cheque Deposit and Withdraw

Internet Banking:

Check account balance

View and verify transactions on account

View Statement

Print Account Summary

Print Account Statement

View Check-Book usage status

View & update short profile

The services that are not offered by the bank include full transactions such as Fund transfer
from one account to other accounts, bill payments etc. Cross-selling is one of the key models
of the internet platform. The present product and services provided by the bank is limited
compared to what pertained in other parts of the world even in some other banks of
Bangladesh. Thus, the bank has a wide range of offering they can offer as they consolidate
existing product and services.
RESEARCH QUESTION 2
What are the upcoming online banking products and services that IFIC Bank Ltd is going to
offer their customers?
The bank staffs said that in case of providing online banking services their bank faces the
challenge of high cost. We also saw in case of online banking the main challenge is to make
sure the savings from online banking technology more than the costs and risks associated
with conducting business in cyberspace. So, the bank could not offer full rang online banking
products and services till now. But the existing online products and services is also attracting
new customers and in recent time the customer increase rate is 300%, according to
respondents. The bank has about 4, 60,000 accounts, among those accounts 1, 75,000 are
active account. The bank staffs think that online banking is one of the reasons behind this

increase in account number. As the customers are the driver of a bank asset, the bank is now
ready to introduce some more online products and services to its customers very soon.
Including:

Mobile banking

Card Cheque

Deposit in ATM

Fund transfer from one account to other accounts

Paid utilities bill

Adding some extra features in internet banking

RESEARCH QUESTION 3
What is the perception of customers of online banking?
It indicated already that the essence of online banking increase customer value. Although the
full range of online banking facilities is not yet available but it is available to some extent.
But all the customers are not using it. One of the main problems is lack of awareness. People
still think that their money is safer in their hand than online. When I described the benefit of
online PSS A/c to some client, I found different point of view of them. Online PSS A/C has
many advantages including: a customer need not to come to bank every month. One customer
who was a housewife said that she loved to come to bank every month. She also felt secure to
deposit her money physically. This is not her point of view only; many customers shared the
same statement. It is very hard to change such mentality.
Some customers said that traditional banking is easy to carry out. Some internet banking
users also support that traditional banking is easy to carry out than online banking because
they are not much familiar with these services.
A huge number of customers taking banking services does not capable to bear the cost of
additional equipments like computer, computer accessories , Internet etc. from their own

organization or at home. Using Internet facility still very costly and people has little
knowledge in operating computers. A few numbers of cyber caf is available but for banking
purpose customers do not feel safe to use these facilities. As a result total numbers of
customers who are habituated in on line banking systems are limited.
Some customers come and asked the bank staff to write the deposit slip for them because they
cant write properly. It is very difficult to take those customers under the umbrella of online
banking.
A different picture is also available. Some customers said that they need to inquiry their
account statement frequently and it is difficult to visit the bank so frequently. Now they can
get their necessary information from their home or office through internet. They enjoy all the
available services provided by their bank. Moreover, they want the additional services
available in other banks and not yet available in their bank.
At one point, all the customers are agreed that in case of introducing any new rule (whether it
for online banking or traditional banking) the bank should be careful. It should take right
decision so that the old customers do not suffer for that new rule.
As the customers have a mixed reaction of online banking, the banks latest product online
PSS A/C also gets a mixed reaction. Some customers adopt it happily. And some customers
close their account because they dont want to grant the new rule. They dont want to open
another saving account to make their PSS A/C online. It is clear that for them the benefits of
online banking is less worthy than other factors.
Summary, recommendation and conclusion
INTRODUCTION
This discussion will now turn to summary, conclusion and recommendation.
SUMMARY
The study revealed that online banking is a complementary service to traditional banking in
Bangladesh. Because customers till depend on traditional banking more than online banking.
For many reasons they prefer traditional banking. They like to feel their money with hand.

They think it is more secure form than virtual form. The sense of security is of great
importance. In Bangladesh most of the people are illiterate and obviously they are technology
ignorant. Again, among the literate portion many of them have computer phobia. So these
people cant trust on the online banking services. To gain the confidence on online banking
the overall computer literacy must be developed. With that goal government has taken
initiative even in the root level to develop it literacy in the country. This would be a perfect
ground for the development of online banking.
Bank must also create the environment that will encourage customers to hook up. Many
potential customers who cannot purchase personal computer can be encouraged to acquire
them through special bank loans payable through small monthly deduction from the
customers account.
Nonetheless, some customers enjoyed the advantages of the online services and expressed the
desire for more services online.
RECOMMENDATION
Online banking became an impossible to survive without for all banks. In mission
statement the bank states that it wants to provide better service to their clients with the help of
a skilled and dedicated workforce. To do so, the bank must give more concentration on online
services. Here, I have come up with some recommendation which IFIC Bank Ltd can use for
their advancement. These are:

If it is feasible for bank than online charge (i.e. for balance transfer) should be
removed.

Make sure that sms notification system is working properly.

Some important online services (like mobile banking) that are already introduced by
other banks should be started as early as possible. Otherwise valuable customers can
be switched to another bank.

As the number of customers is increasing, the number of ATM booths should increase.

Before introducing any new product or service, train your staffs about that product or
service. It will make staffs performance better and quick. Therefore, the customer
service will improve.

CONCLUSION
It is reasonable to predict that online services will improve; many more banks will go fully
online and competition will increase in this area. Wu et al (2006) strongly suggest from their
findings that online banking will prove disruptive to traditional banking and therefore core
competencies and new ways of serving the customer must be developed. Hope that this work
will set the stage for a rigorous approach to online banking.
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REFFRENCE BOOKS
1. Kenneth C. Laudon and Carol G. Traver, E-commerce: Business, Technology,
Society, 4th edition, Pearson education