SWOT ANALYSIS

Strengths
 Alfalah have moved rapidly in expanding branches network and deposit base,
along with making profitable advances and increasing the range of products and
services. Alfalah have made a break-through in providing premier services at an
affordable cost to our customers.
 As BALs pursuing the path of excellence, customer satisfaction remains its
priority. It is only when we know our customers better, can we
deliver a higher quality of services, thereby adding synergy to our existing
management expertise, financial strength and profitability.
 Bank Chairman Message ”our core philosophy of honesty, transparency in
customer dealings, product innovation, excellence in customer service and our
commitment to being a responsible corporate citizen”
 As a premier organization operating locally & internationally that provides the
complete range of financial services to all segments under one roof.
 Bank Alfalah developing & delivering the most innovative products manage
customer experience, deliver quality service that contribute to brand strength,
establishes a competitive advantage and enhances profitability, thus providing
value to the stakeholders of the bank.
 Most of the customers are satisfied with the bank services and friendly
environment of the bank.
 In comparison to other banks, Alfalah providing high excellence services like
home, car, agri-financing, which facilitate bank to get market excellence and
move towards prosperity and development.

 Customer’s behavior shows that they feel proud to being as an account holder in
Bank Alfalah and also refer people to enjoy different schemes and open their
accounts.

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  Customer gives suggestion for the improvement of bank and these suggestions are
listened carefully and communicated to the higher management so that action
taken on relative deficiencies immediately.
 Bank having good friendly environment, security system concentration like
cameras installed and security guards available all the time.
 Modernized banking system with highly integrated informative system, record
kept properly, online banking, and integrated circuits between branches and
personal computer provided at every desk.
 Higher management committed to the development, quality, and continuous
improvement.
 Salaries are very reasonable, so the employees are not financially disturbed and
they devote their selves fully to their work.
 They have wide area network in all over the Pakistan, so that they cover a lot of
portion of cash transactions and make customer satisfied.
 Entertainment facilities are available in the Bank when customer goes to the Bank
for a longer time they will enjoy newspaper, magazines, television and serve with
tea, soft drink, sweets and snakes etc.
Weaknesses
 The majority of people are not well aware about the division & products of Bank
Alfalah. Therefore it should advertise extensively.
 Mismanagement of time is another big mistake in Bank Alfalah branches, the
bank official time of closing is 6:00pm but due to Mismanagement of time
employees leave their desk at 8.00pm which is so hectic and cause employee
frustration.

 A behavior has been noted that bank tries to feel at ease with good looking rich
and educated people and the un-educated and old customers feel some bit strange
in the environment of the bank.
 Proper guideline should be given to the customer about bank products. They
facilitate with current information. Many of the customer’s complaint that there

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 should be two or more person who will guide people at entrance where they have
to move, concerned person and department, teach how to fill forms, slips and
cheques.
 The number of cash counter must be increased because the customers have to wait
at peak hours on the counter for deposit, withdrawals and online.

Opportunities
 The policies of the new government to uplift the economy and pursue financial
sector reforms are expected to yield positive results in the banking industry of the
country. The Bank Alfalah is very well praised to avail promising opportunities.
 As a result of the different steps taken by the Government regarding the
betterment of the economy, small borrowers are attracted to get the financing and
start small businesses. So, the Bank Alfalah has an opportunity to attract the
customers by giving them attractive schemes.
 The need of privatization has made people to switch to banks to satisfy their needs
of lending and borrowing. This not only increases the deposits but also the credit
business.
 Bank Alfalah is surrounded by many competitors it has an opportunity to
aggressive marketing to increase its business.
 Government is taking very bold steps to promote IT in Pakistan BankAlfalah has
an opportunity to improve in IT stock exchange is very volatile and takes
immediate effect so in times of crises conservative investors turns to saving
deposits.

Threats
 Bank Alfalah has many competitors who are continuously increasing their
products and marketing aggressively it may cause its customer to shift to its
competitors. The Competition has become severe by the entrants of so many
banks, So to exist one will have to prove himself in its services through excellent

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 management and will have to satisfy its shareholders. Otherwise he will be out the
market.
 The decrease purchasing power of consumer in the current economic situation of
the country affecting the business activity speed too much and the result is the low
investment from the investors in new projects can create problem for the bank
because it is working a lot in trade.
 The privatization of other banks is also a threat for the Bank. Due to the
privatization of the different bank e.g. MCB; the competition has increased a lot.
Furthermore many private banks have come in the sector due to which it is
becoming more difficult day by day to attract the customers.
 The biggest threat in the banking sector is the continuous downfall of the country
economy since the last few years. If this downfall remains for more few years
then it may be the great hindrance in achieving the Bank’s objectives.

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 RECOMMENDATIONS

Finally, there are some suggestions for Bank Alfalah Limited. These suggestions are
based on my experience with bank.

 Human Resources Department should be there in order to motivate and trained the
employees. I have noted some dissatisfaction among the employees, due to in
efficient promoting system. So the bank should provide clean and on the merit
basis promotion system.
 This is a routine practice that in order to give personalized services to the
customer, bank staff tries to fill all the columns of AOF with their own
handwriting, which is wrong. The customers must fill in AOF. Bankers should
avoid filling in the AOF because it can create problem if the address, title of
account or any other information provided by the customer has not been written
properly. Customer may be affected or he may claim that he did not provide this
information, but if the customer fills AOF then banker cannot be held responsible
for any incorrect information provided by the customer.
 Under no circumstances cheque book should be given to the customer if the
account formalities are incomplete.
 There are two officers involved in cash deposit process, which is time consuming.
Cashier should be given certain powers to receive cash of US$ & DM to provide
prompt services.
 Similarly, there are two officers involved in cheque payment process, which is
time consuming. Cashier should be given certain powers to pay cheques up to Rs.
25000/- to provide prompt services.
 Cheques, which are drawn on Bank Alfalah Branch and returned unpaid in
clearing, are not reflected in the statement of account of the customers. These
cheque must be reflected in the accounts so that credibility of the customers may
be assessed.

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 Audit should be held internally, rather there should be an audit department in the
branch to make audit on daily basis. This can become so, helpful as a different
banks are having this department of their own.

 When giving the loan, the Bank must carefully analyze the past six months
transaction history of the borrower. This will help in judging the dealing behavior
and financial status of the client. In most cases, this thing is not properly done
and it is the major reason of default of many clients.
 The Bank should try to give more loans to the small borrowers as the past history
shows that most of the loans given to the corporate borrowers have converted into
bad debts

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