SEVICES MOSTLY USED BY LXBL CUSTOMERS Figure 19: Products Mostly Used

In this figure, deposit holds the maximum percentage (36%) this might be due to higher interest rate and efficient marketing. Due to less commission and better business transaction in foreign country remittance services at LXBL is at good position. While dealing with Loans and Advances it is less in used due to NRB act and liquidity crunch.

Others services like e-banking, locker facilities, etc.

Presentation and Analysis of Project B

For the research regarding Subisu, 100 sample sizes were randomly chosen within an approximate population of about 20000 at Kapan area (Source: Ministry of Health and Population). The research was based on knowing about the internet user for different service providers within theses household of Kapan so, a questionnaire was prepared and presented them on a random basis. The following result was found:

Table 5: Household Survey Using Internet of Different Service Provider Respondents Internet Service Providers(ISP)

13% Subisu

25% Nepal Telecom(NTC)

20% World Link

42% Others

From the above research, we found that NTC has the highest number of customers followed by World Link and Subisu i.e. 25, 20, 13 households per 100 respectively.

Others network like G-Link, Broad Link, UTL, Ncell, etc covers 42% of the market share for Kapan. After this analysis we are able to find out the competitors for Subisu as well as the potential customers for Subisu through competitor analysis.

While regarding LXBL customers using Subisu Cable we found out that 10% of total population of Kapan are the customers of Laxmi Bank where 5% of the total customers are the user of Subisu Cable.(Source: Internal database of Laxmi bank)

Subisu offers a suite of fully-managed network services developed specifically to address the rapidly evolving network performance requirements of medium businesses and large enterprise organizations as well as households. Subisu with its efficient operational task can help Laxmi bank and its customer, and also has the potential to increase the customer of Laxmi Bank for the efficient performance of BILL PAYMENT. The operation takes place for bill payment at LXBL is as follows:

 Advice people using Subisu Cable of Sukedhara locality to open accounts in this branch.

 Bank will directly pay their bills to Subisu Cable from their accounts after every three months.

 Bank will use a separate database to keep records of their customers regarding their bill payments.

 Bank will charge Rs. 5 for each payment as a service charge.

 Bank can use mobile money and SMS alert to enhance this service. (Whenever the customer lacks deposit to pay the bills, he/she can transfer deposits using mobile money from their relatives account to their account. The bank can then make timely payments to Subisu Company. With the help of SMS alert the bank can also inform the customers immediately after paying the bill.)

Please refer to Appendix 9 for the Operational Flow Chart of Bill of Payment of Subisu at LXBL.

Major Findings

From the observation made on both the staffs and the current customers, analysis was conducted as per of their reactions. Total number of sample was 63 out of which 18 was internal whereas 50 were external of which 5 respondents was not involved due to incomplete questionnaire. So, out of that, some important and useful findings gathered are as follows:

In CSD Research

 Analyzing the customer by their age group we found that 18-25 age group was the highest followed by 26-35 aged customers.

 Analyzing the customer by their occupation service holders accounts highest followed by students and business persons.

 While analyzing the importance of CSD 48% found it very important but surprisingly 39% found it unimportant.

 While measuring the satisfaction level of customer of LXBL 65% of the customers are satisfied.

 In regardance to demand of new services majority of customers demanded quick response and problem solving at LXBL.

 Maximum number of people rated high interest rate (saving) for using LXBL services while compare to other services.

 About 80% of the LXBL customers possess account in other banks too.

 Deposit service account holds 36% of the customers as compare to other services.

In Subisu Project

 We found that NTC has the highest number of customers followed by World Link and Subisu i.e. 25, 20, 13 households per 100 respectively.

 Laxmi Bank has 5% of its customers Subisu and has prospect to increase through promotional activities in Kapan.

 The major competitors for Subisu were NTC and World Link.

Section V: Conclusions

From this research, several issues are found which needs to be emphasized for LXBL’s greater success. Most of the information was gained from the formation of the structured questionnaire, interview as well as internal database of LXBL. It was seen that though the bank has been catering generic services to its customers, the expectations of the customers still have not been met to ensure complete customer satisfaction.

In regard to the CSD survey as an assignment we had been taken into consideration for the feedback of both internal and external customers for the greater accuracy. There were frequent complaints that the department was not functioning up to the mark thus, to reveal the truth about the aspects of department are the customer disliking, a survey was carried out. The result of the CSD was lacking on various area mostly on customer response.

To achieve its mission of establishing itself as one of the potential national development banks, LXBL should meet the customers’ expectation at any cost and delight them always.

For a banking sector to lead ahead from its competition, it needs to capture the potential segment of customers by offering them more than what they expect. Together with that, the CSD could work on the minor flaws that it has and work on it to make itself as good as the other departments of the bank. The CSD is a very important department which gives an impression to the outsiders about the bank, so it needs to be good in order to attract and retain.

Project undertaken for Subisu following benefits were found for LXBL, Subisu as well as Customers.

Benefits to Laxmi Bank:

 Increases the use of mobile money and SMS alert.

 Buzz marketing through customers.

 Increases the probability for the customers to take other services (like:

Mobile Money, Remittance, locker system, etc)

 By providing this service, Laxmi Bank will be engaged in its corporate social responsibility.

 This will increase Laxmi Banks goodwill.

 Laxmi Bank will get a certain amount of commission from Subisu.

 After the success of this project in Sukedhara branch similar project can later be implemented in other branches as well.

Benefits to Subisu Cable:

 Use of capital incentive rather than labor incentive.

 Subisu cable itself will get promoted by collaborating with highly reputed organization like Laxmi Bank.

 Cut down of expenses (e.g. salary, stationery, transportation, etc) Benefits to Customers:

 Saving of travelling cost and time.

 Increase in banking knowledge.

 Networking and relationship is built among customers and bank.

 Increases the customer’s saving habit.

Suggestions

Nothing in the world is build up as perfect. Certain flaws, weaknesses are possessed by everything, so does banking institutes. In similar sense, LXBL, in its way of performing and dealing with the customers, consists of some drawbacks. As per this, certain General as well as Specific recommendation are provided to the institute, which are as follows:

I. General Suggestions

 The banks should come up with wide variety of products and services and focus on service proliferation

 Proficiency in interdepartmental communication should be given more priority

 The customer portfolio if diversified, a wide array of customers can be attracted plus the risk factor can be minimized

 The different schemes that the bank comes up with needs to be marketed in a proper manner

 The internal customers of the bank, the employees need to be motivated and appraised in a handsome manner

 The human resource can be improvised and harnessed by the in house trainings and workshops

 The physical facilities of the bank can be improved e.g. spacious area, couches and chairs for the customers to sit and relax

II. Specific Suggestions a. Higher Interest rate:

According to the specific research conducted, the response to the needs of higher interest rate is maximum. This is particularly because many financial institutions are providing around 5-8% interest on deposit account which implies that customer are not satisfied with the current interest rate of the bank. The other competitors are providing similar services at a higher interest rate which is far more attractive than that of LXBL.

b. Better customer service:

Stable, healthy growth is built on the profitability of the customer, not on their raw no, of loyalty. The two researches that were carried out had some part of service department`s issue involved.

c. Employee Lounge:

A banker’s job is very monotonous and tedious process. It demands utmost attention and makes them exhausted, if there was some kind of recreation area for the employees where they could go and relax for a while, it would be much helpful. The employee recreation lounge would act as a refresher for the employees and recharge them for the next difficult shift.

d. Specialized service for “Special” customers:

The special customers with various accounts in the bank, taking occasional loans, owing the locker facilities should be properly treated by the bank. They are the sources of a lot of earnings for the banks. Therefore, the bank can devise a specialized service whereby, special clients can be offered loan as a subsidized rate or extended credit, gift vouchers etc.

Part Four