VISA DEBIT CARD FOR INDIVIDUAL CURRENT ACCOUNT HOLDERS WITH SALARY RANGE FROM PKR 35,000 TO 500,000/MONTH

Marketing of Services

Submitted to: Mr. Hassan Raza

Submitted by: Yasser Anwar Rubeela Ali Asad Tariq Waqas Naseem (802) (803) (804) (809)

Management Studies Department Government College University, Lahore

TABLE OF CONTENTS

Introduction

Service Offering

Literature Review

Research Methodology

Findings

Conclusion

Recommendations

Annexure A Questionnaire

Annexure B Articles

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1. Introduction
Habib Metropolitan Bank was incorporated in Pakistan as a Public Listed Company in 1992 under the name, Metropolitan Bank Limited. The Bank commenced, duly licensed, full scheduled commercial-banking operations in October 1992. Metropolitan Bank, from October 1992 to September 2006, remained a highly rated bank and, vide its nationwide 51-branch on-line network, established as a distinguished provider of trade finance services. On October 26, 2006 Habib Bank A G Zurich`s Pakistan Operations merged into Metropolitan Bank Limited and the merged entity was named Habib Metropolitan Bank Limited. Demonstrating a strong commitment to Pakistan economy, HBZ is the principal shareholder of HABIBMETRO. HABIBMETRO operates in all major cities of the country. The HBZ Group is heir to a rich tradition of banking and commerce dating back to more than 160 years. The groups flagship and HABIBMETROs principal, HBZ (incorporated 1967) enjoys International ranking of 687 in terms of capital. With Headquarters in Switzerland, the HBZ Group also operates in Hong Kong, Singapore, United Arab Emirates, Kenya, South Africa, United Kingdom and North America. The Pakistan Credit Rating Agency (PACRA) has allotted both long-term and short-term ratings of Habib Metropolitan Bank Limited at AA+ (Double A plus) and A1+ (A one plus), respectively. These ratings, being the highest amongst the local sector Private Banks, denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments

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2. Service Offering:
Visa debit card for individual current account holders with salary range from PKR 35,000 to 500,000/month.

Advantages
Global Reach and Acceptability VISA Debit/ATM Card saves you from the hassle of carrying cash or writing checks along with the freedom of making electronic payments anywhere in the world. It carries the Visa logo ensuring worldwide acceptability at more than 30 million establishments and 1.5 million ATMs. In Pakistan, Visa Debit/ATM Card is accepted at over 50,000 merchant establishments and you can use it conveniently at more than 3,500 ATMs all over the country. Mini Statement & Balance Inquiry With your Bank VISA Debit/ATM Card, you can request for balance inquiry details and mini statement through an ATM close to you which carries the VISA or 1link logo. Funds Transfer With our funds transfer facility, you can instantly transfer funds between any two Bank accounts or from Bank account to any 1-Link member bank account using your HMB VISA Debit/ATM Card at a nearby ATM. You can enjoy a daily transfer limit of up to Rs. 250,000. Bill Payment Facility You can also pay your utility and mobile bills by using your HMB VISA Debit/ATM Card at a nearby ATM.

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3. Literature Review
Sharizal Bin Hashim and Norbani Che Ha of University of Malaysia in their article Consumers Service Brand Perception: A Study on Banking Services say that Banks can excel if they plan to work more on their service quality and by including more value added services in their offerings. It is surprising to find a few empirical researches that model the brand nature and determinants of relationships in customer and services, especially in the context of those high in credence such as banking. There is no doubt about the importance of achieving high customer satisfaction as the ultimate goal of service companies. Customer satisfaction is considered as a necessary condition for customer retention and loyalty and therefore helps in realizing economic goals like sales turnover and profit revenue, hence if the customer is getting all the desired services he would wish from a bank, loyalty would automatically be high.

4. Research Methodology
The research done is Requirements Research. a. Sample Size: Sample Size is 100 b. Target Respondents: Individual Current account holders having salary range from PKR 35,000 to 500,000 per month c. Questionnaire: Questionnaire comprised of open and close ended questions

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5. Findings
1 - Gender

Gender

11%

Males
89%

Females

2 - How frequently do you shop online?

Never 11% Once a year 14% Once a week 9%

Twice a Month 21%

Once a Month 45%

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3 - If you Shop online, mode of payment do you mostly use?

Advance Cash Payment 12%

Coupons 5%

Cash on Delivery 48%

Visa Cards 35%

4 - Do you think VISA powered cards are more convenient than paper money? If yes, why? 71% of the respondents agreed that VISA powered cards are more convenient Reasons stated were Easy to carry Safe Convenience

5 - Before going out for shopping, how often do you do transaction through an ATM? 54% Respondents said they have to go to the ATM when out for shopping Remaining said they carry cash with them from home

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6 - How many bank accounts do you have other than in HMB?

Bank Accounts
More than 2 18% 1 31%

1 2 More than 2

2 51%

7 - If more than 1 account, was lack of VISA card one of the reasons of opening another account in any other bank? 31% of the respondents agreed that lack of VISA powered Debit card led them to open another account Other respondents gave reasons as Joint accounts for business Fixed accounts for Earning interest International Collaboration of Banks

8 - Are you using VISA powered cards of any other bank? Out of 69% of the respondents who had more than 1 bank account, 97% used VISA Debit/Credit cards from other banks

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9 - Do you agree that Plastic money is easier and portable to carry?

Disagree 10% Neutral 12% Strongly Disagree 4%

Strongly Agree 54%

Agree 20%

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

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6. CONCLUSION The findings clearly indicate that a huge gap exists which can be plugged by introducing this particular service of VISA powered DEBIT Cards. Debit Cards would not only facilitate the customer but would help retain the customer. With the increase in E-Business, it is vital for a bank to introduce such a facility because it not only provides customers with ease of access but also convenience to carry out their purchases

7. RECOMMENDATION VISA powered Debit Cards are a convenient way of purchasing products and it will render more service dominance to the already service dominant nature of HMB as all it will require would be replacing the current DEBIT/ATM cards of the existing account holders with the VISA powered Debit Cards.

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ANNEXURE - A
QUESTIONNAIRE VISA powered DEBIT Card

We are candidates of MBA program at Management Studies Department, Government College University, Lahore and we are conducting a survey on launching VISA powered Debit Card of HabibMetro Bank. We would require a few minutes of your precious time. Your comments are extremely valuable. ______________________________________________________________________________ 1. Do you shop online?
Yes No

2. How frequently do you shop online? Once a week Twice a Month Once a Month Once a year Never

3. If you Shop online, which method do you mostly use? Cash on Delivery Visa Cards Advance Cash Payment Coupons 4. Do you think VISA powered cards are more convenient than paper money? If yes, why?

________________________________________________________________________

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5. Before going out for shopping, how often do you do transaction through an ATM?

________________________________________________________________________

6. How many bank accounts do you have other than in HMB?

________________________________________________________________________

7. If yes, was lack of VISA card one of the reasons of opening another account in any other bank?

________________________________________________________________________

8. Are you using VISA powered cards of any other bank?

________________________________________________________________________

9. Do you agree that Plastic money is easier and portable to carry?

Strongly Agree

- Agree

- Neutral

- Disagree

- Strongly Disagree

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