Project on Internal Banking in Foreign Banks

8/7/2019 Project on Internal Banking in Foreign Banks

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On the partial fulfillment of 4th semester ofPOST GRADUATE DIPLOMA IN BUSINESS

MANAGEMENTAT

INSTITUTE OF MANAGEMENT STUDIES, Ghaziabad

We the following students submit our report entitled

:: INTERNAL MARKETING IN FOREIGN BANKS::

Under the esteemed guidance of Prof.Timira Shukla

ACADEMIC SESSION

2007-2009

:: Submitted To: Submitted By:

Prof. Timira Shukla SHIVENDRA SINHA (141)SHIVI SAXENA (142)SHIVYA GUPTA (143)

SHUBHAM CHAWLA (145)SIDDHARTH AGARWAL(149)SMRITI GAUTAM (150)SONAM AGRAWAL (153)

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INSTITUTE OF MANAGEMENT STUDIES,

GHAZIABAD

CERTIFICATE

This is to certify that this report contains bonafide work of Shivendra, Shivi, Shivya,

Shubham Chawla, Siddharth, Smriti, Sonam during Term IV, session 2007-2009 for the

subject Marketing of Service

DATE: Signature of Faculty

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ACKNOWLEDGEMENT

This report bears the imprint of many people and without their support it

would not have existed. First of all we would like to express our sincere

indebt ness and profound sense of gratitude to our parents whose support in

all manners had made us capable to complete this project.

We acknowledge our deepest thanks toProf. Timira Shukla for

all her care and encouraging words and giving suggestion at different point

of times. At the outset we would like to put on record our sincere gratitude to

all of our friends for giving us valuable ideas throughout of our project.

SHIVYA GUPTA

SHIVI SAXENASHIVENDRA SINHASHUBHAM CAHWLASIDDHARTH AGARWALSMRITI GAUTAMSONAM AGRAWAL

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Content

1) Introduction to Internal Marketing 5

2) Foreign Banks in India 10

3) About HSBC 144) Internal Marketing in HSBC Bank 14

5) About American Express 17

6) Strategies for internal marketing in American Express 25

7) Conclusion 27

8) Bibliography 28

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Review of literature

Hitendra Bargal and Ashish Sharma IJSM al(march 2008). The banks are trusted placesof customers, and have come across many changes in their functioning. Satisfied

customer is crucial for banking organization future.Philip et al.(2005) Indian rural banks pays more attention on other factors other

than market oriented strategy. In India the major emphasis is now been shifted forinternal marketing. It is been now become one of the most important factor which is beennow used by number of private and foreign bank in order to provide better services to thecustomers.

A number of factors of services are leads to the efficiency of banking services,taking into account physical and human resources, service quality and performance.Expenditure on quality improvement efforts, and impact of service quality on financialoutcomes have long intrigued researchers. Mukherji et al.(2003).

B K Jha, S L Gupta and Puneet Yadav IJSM al(march 2008). Technology access,

up gradations and innovation in various functional areas of banking are of highest level inIndia. Services players major role in Indian economy and financial is fastest growingsectors of Indian economy, where technology is customer-oriented service. Indianbanking has moved from a traditional model of customer services to a mordern one wherebanks can reach the customer at any point with their service.

The optimization triad of resource, service quality and performance is proposedhere, there by linking the marketing variable to financial metrics. Sureshchandra etal.(2002) stats that there is an insufficient of knowledge with respect to the bankingindustry in developing economies. The difference between public sector banking industryin development economies. The difference between public sector, pvt sector and foreignbanks were investigated with respect to the total quality services. Multiple discriminate

analyses were used to find out those dimensions of TQS which contribute more to thediscrimination between the three sectors of Indian banking.

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INTRODUCTION TO INTERNAL MARKETING

Internal marketing (IM) is an ongoing process that occurs strictly within a company ororganization whereby the functional process aligns, motivates and empowers employeesat all management levels to consistently deliver a satisfying customer experience.

An organization thrives on the abilities of its constituents, namely its employees andbusiness partners as they define the companys ability in optimizing resources andcompetencies to convert opportunities into revenues. They are called the internalcustomers as they interact within the organization internally to generate long term value.Like external customers, they too are impacted by the companys brand and its futureplans. An information-armed, enthusiastic work force boosts productivity, minimisesturnover costs, creates profitable customer relationships, delivers better customer carewhile strengthening the corporate brand in the market place. However if your internalcustomers are not sufficiently aware of your marketing plans, and do not participateeffectively in the promises to external clients, the external brand equity is negatively

affected. It is very important that internal staffs perception of the organisation yourinternal brand matches the external brand positioning for optimum results. There arevarious techniques and tools that help organisations implement effective internal brandbuilding and marketing communications. These are intranets, extranets (partnercommunication on the web), newsletters, posters and pamphlets informing about newinitiatives, better systems, company stores, company events, internal rules andprocedures.

Key concepts of internal marketing include:

IM functioning as a continual internal 'upskilling' process.

Alignment of the organizations purpose with employee behavior.

Employees internalizing the core values of the organization. Motivation, reframing and empowerment of employee attitude.

Inside-out management approach.

Retaining a positive customer experience throughout the business

objectives

The following are the features of an internal marketing-oriented business:

1. Creating enabling culture: this is done when employees are empowered bymanagement through allowing creativity, innovation, allowing initiatives andaccountability and responsibility of their decisions.

2. Practicing participative hiring: that is involving current employees in the process ofhiring new employees.3. Ensuring equitable recognition and reward: business must exercise employeerecognition with reward to what employee has achieved.4. Demonstrating fairness during hard times: fair treatment of employees when facedwith hard times and difficult moments like death of the near family members. This can beachieved by setting aside emergency funds.

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5. Good organization structure that allows learning, total quality management and re-engineering.

Benefits of Internal Marketing

1. Internal Marketing encourages the internal market (Employees) to perform better.2. Internal Marketing empowers employees and gives them Accountability andresponsibility.3. Internal Marketing creates common understanding of the business organization.4. Internal marketing encourages employees to offer superb service to clients byappreciating their valuable contribution to the success of the business.5. Internal marketing helps non marketing staffs to learn and be able to perform theirtasks in a marketing-like manner.6. Internal Marketing improves customers retention and individual employeedevelopment.7. Internal Marketing integrates business culture, structure, human resources

management, vision and strategy with the employees' professional and social needs.8. Internal marketing creates good coordination and cooperation among departments ofthe business.

Problems affecting successful implementation of Internal Marketing.

The following are the problems affecting effective implementation of internal Marketing.1. Managerial Incompetence in interpersonal, technical and conceptual skills is some ofthe stumbling blocks against successful internal marketing.2. Poor understanding of internal Marketing concept.3. Individual conflict and conflict between departments makes the implementation ofinternal marketing difficult.4. Rigid organisational structure coupled by bureaucratic leadership hinders success ofinternal Marketing.5. Ignoring and not listening to subordinate staffs.6. The Tendency of ignoring employees importance and treating them like any othertools of the business.7. Unnecessary protection of information against employees.8. Resistance to change.

Internal Marketing Approach

To be effective, internal marketing needs to accurately segment internal customers. Likeexternal customers, they too have their own buyer behaviour, i.e. identifying with thechanges which organizations plan to implement. Broadly speaking there are threesegments - supporters, neutral, opposes. Each segment requires a different internalmarketing mix to deliver on internal marketing goals. For example, if the companywanted to relocate closer to new emerging markets; it could target 'supporters' with acustomized video on relocation benefits like low cost of living and better amenities. The

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'neutral' internal customers could be targeted with incentives like a pay raise; while the'opposes' could be effectively coerced / forced to accept the re-location regardless of theirobjection (in the larger interests of the company).Key Success Factors

internal marketing is an ongoing process that needs constant top management support andthe process innovations to make it as viable as external marketing. Internal marketing is adedicated effort across the organization, whereby it aligns, motivates and empowerspeople at all management levels to consistently deliver a satisfying internal and externalcustomer experience. To ensure that it delivers consistently, internal marketing should:

Function as a continual internal 'up-skilling' process Align the organizations purpose with employee behaviour Internalize core values of the organization by all employees Motivate, reframe and empower employee attitude Facilitate an inside-out management approach

Retain a positive customer experience across all business objectives Provide role-specific and user-focused information, includingbest practices around various organisational policies and processes

Increase the peoples connections with the external / internal customerservice divisions roadmap by articulating investments, tactics, and objectives.

Be available in a self service / portable format that is accessible anytime, anywhereSmart

Internal Marketing Tools

The web offers one of the best platforms for a consistent internal marketing experienceacross regional, national and international sections of an organization. The webs selfservice function and anytime/anywhere accessibility allows employees to leverageinternal marketing program without significantly impacting their primary job roles.Besides this, the web allows the employees to form communities based on their personallikings and unofficial designations/department affiliations. This allows effectiveemployee bonding, branding and learning at both the formal as well as informal (cultural)organization levels. Proven web tools include intranets or even an internal facing websitethat creates online events, e-learning programmers, expertise communities, discussionforums and e-commerce exchanges. Intranets/websites also serve to keep employeesconsistently and accurately informed about the latest organisational initiatives andinnovations so that they can leverage them when interacting with external customers. Asthe web enables the building of communities, within the organization, people canleverage them to work faster and better collaboratively. For example a financialdepartment can ask for a copywriters (marketing department) skills to draft an attractivecosting / budgeting document for customers. Online advertisements can also be aneffective tool to increase internal marketings reach. Informative advertisements aboutnew customer wins, external initiatives, new process/technological innovations andexternal PR wins (press /analyst reportage) can be made to appear as employees connectto the Internet through the official network. The web is the most potent yet customer

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friendly internal marketing tool that tracks usage too. So organizations know what isworking and what is not, besides enhancing the ability to be internally adaptive toincrease employee satisfaction and the overall internal marketing programmedexperience.

Making Internal Marketing Work

Of all the things CPAs can do to develop new clients and deepen existing clientrelationships, internal marketing is among the most fruitful. A solid internal marketingsystem takes you far in your effort to get more and better business. Fortunately, its one ofthe simplest and least uncomfortable business development activities.Practical internal marketing is a process that educates all employees about the firmsservices and who in the firm provides them. Just let everyone in the firm know whatservices the firm offers and who provides them. Although the process seems simple, atleast four obstacles can impede effective internal marketing:

1. Often, the internal marketing process is informal at best. Employees simply talk to

each other and develop relationships on their own. When a firm reaches a certainsize (probably more than 25 or so) or opens multiple offices that informal systemtends to disintegrate unless you foster a culture that values interdepartmental orinteroffice communication and cooperation.

2. Adding to the complexity, the possibility of a breakdown in communication andtrust increases when a firm hires specialists in a given area. We dont trust whator whowe dont know or understand.

3. 3. CPAs focus most of their efforts on billable work. They usually arentinterested in yet another meeting that cuts into billable time. Educational sessionson the firms services certainly fall into that category.

4. Most professionals wont make the effort to get to know other team members,particularly in larger firms. Theyre busy; theyre often introverted; and theyrerewarded and recognized primarily for racking up billable hours. They cant seewhats in it for them as individuals when it comes to internal marketing.

Jumping the Hurdles

none of these problems is insurmountable. Here are a few techniques you can use toincrease the effectiveness of your internal marketing efforts:

Begin with new employee orientation. Instead of burdening new employees with a

recitation of personnel policies they could easily read on their own, introducethem to your firms services and experts. Give each department five to tenminutes (no more, because the new folks are already on information overload) topresent an overview of what each department does and who does it. Have yourmost energetic speakers represent each group. Encourage new employees to visitindividuals in other departments after theyre settled. If your tax people dontknow your financial planning or benefits administration people, how can theypossibly recommend their services?

Encourage "cross-eating." Rather than thinking about internal marketing or cross-

selling, encourage cross-eating. Food is the best icebreaker among people.

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Encourage interdepartmental lunches. Consider organizing lunches or providingfood. Follow up regularly to see whether employees are participating. (Heres ahinttheyll do it if you and other senior people in your firm do it. Peoplenaturally emulate what they perceive to be successful behaviors, so if you start theprocess, theyll follow. The flip side of this, of course, is if youre sitting behind

your desk 60 hours a week with your door closed, theyll emulate that behavior,too.) Congratulate employees for getting to know their coworkers andcommunicate the benefits of doing so to others.

Use star performers. Of course, conduct regular internal training sessions on all

your services. The important thing is to have your very best presenter do thetraining. Too often, internal training is relegated to either a department head or themost technically astute employee. An accurate-but-dull presenter will hinder yourinternal marketing effort. An energetic, likable, enthusiastic team member willhelp capture the attention of others, and generate excitement about the service.

Discount new services. Consider allowing employees to offer new services at a

discount. Nothing works better than word-of-mouth advertising. If you can make

your employees advocates of your services, theyll be your best referral source fornew business. Cheer on the team. Reward and recognize the people who let clients know about

new services. It doesnt necessarily have to be a financial reward. Sometimes asimple thank-you note or e-mail does the trick.

Use your internal newsletter and intranet effectively. Ask each department to

submit information current activities and to provide good news about businessdevelopment efforts. Remember that the goal in these venues is to inform anduplift.

Discuss results honestly. Conduct your marketing meetings effectively. This is the

time for discussions about which internal marketing efforts are working and

which arent. Its absolutely not the time for displays of hot air. Trust builds whenpeople are honest with each other. Sharing both successes and failures (call themlearning experiences if you want) enables people to understand the complexitiesof the firms different services, what makes them useful, and what services clientsare and arent accepting. It is also a unique opportunity for problem solving.Honesty in communication is simply invaluable to your firm.

A Few Tough Last WordsOne last suggestion, and its the toughest and most important. If you arent already doingso, work hard at changing your culture from one that recognizes and rewards onlybillable time and technical acumen to one that honors business development, training, and

mentoring. That means starting at the top and really (not just nominally) changing thecriteria for partnership to include all the skills that make a business successfulnot justseniority and technical mastery.By recognizing and rewarding a balanced set of skills, and by implementing these simplesteps, your internal marketing process will be stronger, your revenue will be higher, yourclients will be better served, and your team members will be your very best sales force.

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Foreign Banks in India

Foreign Banks in India always brought an explanation about the prompt services tocustomers. After the set up foreign banks in India, the banking sector in India alsobecome competitive and accurative.

New rules announced by the Reserve Bank of India for the foreign banks in India in thisbudget have put up great hopes among foreign banks which allow them to growunfettered. Now foreign banks in India are permitted to set up local subsidiaries. Thepolicy conveys that foreign banks in India may not acquire Indian ones (except for weakbanks identified by the RBI, on its terms) and their Indian subsidiaries will not be able toopen branches freely. Please see the list of foreign banks in India till date.

List of Foreign Banks in India ABN-AMRO Bank

Abu Dhabi Commercial Bank

Bank of Ceylon BNP Paribas Bank

Citi Bank

China Trust Commercial Bank

Deutsche Bank

HSBC

JPMorgan Chase Bank

Standard Chartered Bank

Scotia Bank

Taib Bank

By the year 2009, the list of foreign banks in India is going to become more quantitativeas number of foreign banks are still waiting with baggage to start business in India.

Deutsch bank India

Deutsche Bank started operations in India in 1980. Today, Deutsche Bank is one ofIndias most respected financial services providers, widely regarded for its deepcommitment to the Indian market, strong client relationships, sophisticated productTechnology & global connectivity, built with strong corporate governance standards.With over Rs. 5700 crore capital and 6000 employees in India, Deutsche Bank operatesbranches in Mumbai, New Delhi, Bangalore, Chennai, Kolkata, Gurgaon, Noida,

Aurangabad and Kolhapur and will soon open new branches in Pune, Salem and Vellore.India is amongst the largest franchises of Deutsche Banks presence in 17 markets inAsia-Pacific. Embedding inclusively in India Deutsche Bank has successfully launchedseveral new businesses in India - reflecting its desire to engage with a larger populationof clients across the country. Building on its dominant global markets - debt andderivatives and leading transaction banking cash management, trade finance andcustody - franchises, Deutsche Bank has since 2003 gained significant market share inon-shore investment banking, institutional equities broking, asset and private wealth

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management (with over Rs.28,000 crore of investible funds, including assets underadvisory), retail banking & credit cards (with over 4,70,000 clients) and businessprocesses outsourcing, thus making Deutsche Bank a fully integrated financialServices provider to Indian corporate, institutional and individual clients. A responsiblecorporate citizen Deutsche Bank is deeply involved with the welfare of the communities

it operates in. Focused on empowering the underprivileged sections of society througheducation, Deutsche Bank has evolved a robust program which includes substantialfinancial support to leading NGOs like Pratham India Education Initiatives as well asvolunteering and payroll contributions by staff through NGOs like Give IndiaFoundation. Deutsche Bank supports heritage conservation including restorationAnd maintenance of two Grade II heritage buildings in Mumbai and has also espousedthe cause of environment conservation through support to non-governmental efforts.Deutsche Bank has also repeatedly stepped forward to aid disaster relief initiatives, beingamong the first entities to contribute to the Prime Minister Relief Fund for Tsunamivictims, towards relief efforts in the earthquake affected areas in Kashmir. Believing instrong corporate and regulatory governance standards, Deutsche Bank is regularly invited

to contribute to the development thought in banking and finance in the country throughparticipation in high level committees of regulators the RBI and SEBI - and leadingindustry associations.Recognition: Deutsche Banks consistent performance and business focus has resulted init receiving several awards including The Best Investment Bank in India 2007 andBest Debt House in India 2007 by Euro money, Best Private Bank in India 2007 byAsia money Private Banking Polls, Best Cash Management Bank in South Asia 2007and Best Sub Custodian India 2007 by Triple Asset Asian Awards, Best Trade Bank inIndia 2007 by Euro money and the Award for Outstanding contribution towards thePromotion of Indo-German economic relations 2006 by the Indo-German Chamber ofCommerce. Key investment banking transaction highlights in 2007: Tata Steel AcquiresCorus Steel (Jan 07)Deutsche Bank. The deal created the fifth largest steel producerIn the world. DB acted as Financial Advisor and Corporate Broker to Tata Steel ICICI

Bank bond (Sept 07) ICICI Bank tapped the international markets for US $ 2 billion. Itwas the largest ever deal from India and the largest 5-year USD fixed rate deal out ofAsia. DB was the joint lead manager to the issue.

American Express Bank

American Express Bank has presence in over 150 countries. It is a diversified travel andfinancial services company. Established in 1850 in New York, American ExpressCompany was among the first and most successful express delivery businesses to arise

during the rapid westward expansion of the United States.

American Express India was established in 1921 providing high quality travel andfinancial services. American Express in India is the largest company to have widenetwork of travel locations in the country. American Express Travels has entered into aMemorandum of Understanding (MoU) with Department of Post to enable the designatedSpeed Post offices in distributing and encasing American Express Travelers Cheques.

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American Express Travellers Cheques are available in the following currencies: Australian Dollar

Canadian Dollar

Euro

Japanese Yen Saudi Riyal

South African Rand

Swiss Franc

Pound Sterling

US Dollar

American Express Travelers Cheques have worldwide recognition and are safer thancash. In case of lost and theft, American Express Travellers Cheques are replacedworldwide and usually within 24 hours.

Citibank, India

Citibank has been providing banking services in India since 1902. Citibank is activelylending to individuals in India and is one of the largest consumer finance lenders in theworld.Citibank offers host of value added services such as retail banking, investment, insurance,loans et al. Citibank online banking services provide number of customer friendlyfacilities such as redeeming reward points, payment of bills online, sending demanddrafts anywhere in India, mobile banking etc.

Citibank credit cards offer a range of flexible and personalized credit services. Citibank

offers the widest range of 23 credit cards. Credit Card categories include Premium Cards,Extra Value Cards, Special Interest Cards, Basic Cards, Travel Cards, and Diner Cards.

Barclays Bank

Barclays PLC is a global giant in international financial services. Its head office issituated in London City, UK. Being the third largest financial service provider inEngland, Barclays promises nothing but the best banking and other services to theircustomers in India. The bank has its head office in India is at Mumbai.

Barclays Bank specializes in global retail and commercial banking services. Thecorporate banking division of Barclays Bank in India was set up 2006. This handles thefinance arrangements for leading Indian corporate, small and medium enterprises andoffers loans, deposits, payments, cash management services, and finance and treasurysolutions.

Barclays Consumer Banking services were launched more recently in May 2007,

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covering personal loans with lower EMI's and credit cards offering the freedom to thecustomers to choose the payment dates.

Currently, Barclays Bank India has 4 offices in Mumbai that is the head office, Delhi,Kanchipuram near Chennai and Nelamangala near Bangalore. Barclays PLC is a

customer-centered organization offering the much-needed financial assistance for thosewho approach them. Barclays has also ventured into banking services focusing mainly onthe NRI banking that is soon catching up in the Indian banking industry.

Commercial Banking Products Loans Finance and Credit Payments Cash Management Treasury Solutions Trade Finance Loan

Barclays Global Credit CardBarclays PLC has been actively involved in not just the economic but also socialassistance in India. They have taken up the task of support the education of 500underprivileged girl kids in "Project Nephi Kali". Along with this, Barclays has alsoextended its support to the Red Cross Society in India to assist the National DisasterResponse Team in their rescue operations in case of any emergency relief operationsduring natural disasters like earthquakes or floods.

Barclays boasts of a global presence in over 50 countries with more than 27 millioncustomers. Barclays PLC is one of the leading banking services and investmentmanagement providers in the major trade centers including London (UK), Delaware,Dubai (UAE), Dublin, Egypt, France, Ghana, India, Kenya, Manchester, Mauritius, NewYork (USA), Portugal, Singapore, Spain, Zambia, Zimbabwe etc.

The Barclays website provides any further information you may need about the annualreport, company history and current profile, global business centers, share prices, sharesnews, swift code and working hours. You can also get the latest interest rates for thevarious national and international banking services like the deposits, loans, foreigncurrency exchange and the various mortgages offers.

Barclays provides global career opportunities. The jobs at Barclays are of internationalstandards thus making the careers at Barclays PLC a much-demanded vacancy. The newsupgrade on the job vacancies are put up on the official website of Barclays PLC.

Besides all this also get online banking facility at Barclays Bank. All you have to do islogin to your Internet banking account and you get the bank right to your home PC. Youcan also enquire about the various service charges being charged and the latest bankingproducts like the personal loan, credit cards, insurance, Visa cards etc.

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The world's local bank

About HSBC BANK

Headquartered in London, HSBC is one of the largest banking and financial servicesorganizations in the world. HSBC's international network comprises around 9,500 officesin 85 countries and territories in Europe, the Asia-Pacific region, the Americas, theMiddle East and Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stockexchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders insome 100 countries and territories. The shares are traded on the New York StockExchange in the form of American Depositary Receipts.

Through an international network linked by advanced technology, including a rapidlygrowing e-commerce capability, HSBC provides a comprehensive range of financial

services: personal financial services; commercial banking; corporate, investment bankingand markets; private banking; and other activities.

History

The HSBC Group has an international pedigree which is unique. Many of its principalcompanies opened for business over a century ago and they have a history which is richin variety and achievement. The HSBC Group is named after its founding member, TheHong Kong and Shanghai Banking Corporation Limited, which was established in 1865to finance the growing trade between China and Europe.

Internal Marketing in HSBC BANK

1. Target Base Promotion Offers

Under one of the Policies of the Bank, it provides the promotion depending upon thetarget which is met by the employees on the quarterly basis. The employees who willachieve the target get the Incentive and the next month foreign tours. For example on thetarget of the 8account opening, if any employee opens 10 accounts then he is given nextmonth foreign trip. Thus the prompt target based promotion builds up employeesmotivation to give better services to the customer

2. Hierarchal form of Management

HSBC BANK have a hierarchal form whereby each employee is answerable to one ofthe senior and this makes the obligation on the employees to motivate one to the other .The burden of business is transferred from one employee to the other in such a way thateach one is responsible for the other performance.

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This way each internal customer is able be keep under the eye of its superior. Moreoverthe communication link which is important for a service industry is possible with the helpof the this management system.

3. Event Management

Under this head various events are organized from time to time in the banks to lure thehigh professionals for example Sales Tax Advocates, Income Tax Advocates and theChartered Accountants etc so that external marketing could be more effective. Now theresponsibilities of these events are on the internal customers and if they organize theseevents successfully it add on the credibility and the profitability of the internal customersand they are awarded with the various recognition prizes and awards for there effectiveleadership skills. This also helps to build up a relationship between the internal andexternal employees.

4. On The Roll Training

High focus is always there on the training aspect of the internal customers.Training of the employees are given due importance from time to time and with the touchpoints of Human Resources for example whenever Bank want to design training schedulefor its internal customers, it design it in the Five star hotels with all the luxuries thereout with all the facilities away from there routine work so this enables the internalemployees to be stress-free and grasp the training modules practically. As an HR policythis enables the employees to increase in there efficiency and feel free from the routinework. As a result the employees will be able to add on more practical knowledge to it ,when they return to there work. This is one of the prominent factor of the foreign Banks

that they stress on the training module of the internal employees , which give them achance to be more interactive with the other professionals of other branches and if theyfacing any problem they can sort out with the help of the various training modules

5. Strong Management Information System

Strong MIS base is one of the basic strength of any Foreign Bank, So in HSBC Bank alsoholds a good MIS system for example here the reporting system is so designed so as toprovide no chaos among the internal employees and they can easily report to thereseniors online only.

6. Online Tests/Quizzes/Learning Modules

These tests are specially designed for every class of the employees in the HSBC so as toincrease the handling efficiency of the internal customers with the help if of the casestudies and the real life examples. Some of them are basic modules and they have to be

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cleared by the internal customers and some are there just to give them ranking by the HRprofessional which add-on to the character sketch of the employees and help them to berated accordingly.

7. Systematic Employees coding

Under this head the internal customers (employees) are given the Employee Code and thePeople Shop Code. Employee code is given to the employees so as to assess theirperformance, rating grading whereas the PS is given to the facility of the HR departmentso that the various online tests, HR activities n be handled conveniently. Thus we can seethat how effectively the separate identification no for the Human resource convenience isgiven which benefit each and every internal customer separately.

8. Excellent Information Technology

HSBC Bank has tied up with SAP in Asia to enhance the financial institution's bank

corporate client integration system targeted for use globally.The improved system also has the potential to enable the exchange of richer informationbetween HSBC and its business customers, according to the bank. HSBC currently offersa service that provides corporate clients access to an automated host-to-host system tofacilitate secure transactions. Called HSBC Connect, the service enables the back-endsystemsof the bank and its enterprise customers to communicate seamlessly andsecurely.

9. Recreational Activities

Time to time recreational activities are designed for the internal customer so as todecrease the stress of the employees. For example visit to Jim Corbett Park with fullfledged facilities are provided to the employees. Thus as a foreign Bank internalmarketing strategy they always focus on the Human resource aspect of the internalemployees by provided the employee friendly environment with the help of the variousrecreational activities.

10.Employees Rating

HSBC BANK has full-proof rating system whereby the employees are divided into thefour categories as 1st 2nd 3rd and 4th .The level of the employees are rated according to thisrating. Currently 1st batch rating is not given in HSBC India but it have been achieved bythe international HSBC superiors.

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11. Customer Friendly Environment

As a internal customer friendly environment the internal customers are given flexibletime allotment which makes the environment of the Bank more friendly. Basic amenities

being a service sector is well considered in the foreign banks which actually amounts tothe total increased efficiency

American Express Service India Ltd

Certain facts:

A survey wad conducted by India Today in which 20 most reputed foreign bankswere surveyed on certain parameters and American Express ranked 6th inEmployee Satisfaction.(Source: India Today , June 2008 issue)

American Express ranks 9th in the list of Fortune 500 companies.It comes underthe A++ Category.

Service Blueprint of American Express. Following are the steps involved in makingtheir credit cards available to their customers:-

1) Call to customer2) Appointment3) Meet customer4) Documentation5) Employee back to office

6) Prepare Dispatch7) Send an E-mail to the processing department8) Verification9) Dump (rejection)10) Card Approval11) Card Issue12) Payment1) Call to customer :- A prior database is prepared of the prospective customers and

they are called randomly by the tele callers of American Express. The details arenarrated to them over the phone and those interested are promptly followed up.

2) Appointments :- The tele callers fix an appointment of the Relationship Officers

with the interested customers.3) Meet Customer :- A venue and time is decided according to the convenience of

the customers and the Relationship Officer meets the customer as per theappointment fixed.

4) Documentation:- The Relationship officer asks the pre-requisites like personaldetails, type of credit card desired , what all are previously held by the prospect,etc. and the Relationship officer is required to verify all the details.

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5) Employee back to office:- The relationship officer comes back to the office aftercollecting all the relevant details and prepares a summary of the case.

6) Prepare Dispatch :- The Relationship officer prepares a soft copy as well as ahard copy to be sent to the processing department.

7) Send an E-mail to the processing department :- The soft copy is mailed by the

Relationship Officer to the processing department.8) Verification:- The processing Department checks for the authenticity of theprospective client. They search their past records as to whether or not they havehad any prior contact with the prospect. If in case it is revealed that their has beena prior association and the prospect was a defaulter in that case then they come inthe category of Cibil clients.

9) Dump (rejection) :- The Cibil clients are simply rejected.10) Card Approval:- A list of those customers is prepared who can be granted the

credit cards.11) Card Issue:- Thereafter, the card is issued to the customers.12) Payment :- The bank sends the statement to the customers after one month and

the customers are supposed to make their payment within a span of 45 days.

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Hierarchy of American Express

Internal Marketing In American Express Bank

The responsibility of dealing with the customers at American Express is on two

people :

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dirddied

dD

Vicepresident

Business Head

Channel manager

Sales Manager

Asst. Relationship Manager

Relationship Officer



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Recruitment:-

Both the telecallers and Relationship Officers are hired through consultants. However,holding an M.B.A. degree is a must for the Relationship Officer. In case the person doesnot hold an M.B.A Degree then he is expected to have served in the same industry for aperiod of not less than 3 years.

The Relationship Officer is expected to have a dynamic personality, excellentCommunication skills, good motivator, should have good convincing powers, etc.All these attributes are necessary because the Relationship Officer is the person whomakes the direct contact with the prospective customers. He has the maximumEncounters with the customers.

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CUSTOMER

TELE -

CALLERS

RELATIONSHIP

OFFICER



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Training:-

The American Express bank has hired an International body, which provides training inBangalore and Delhi in the five star hotels. The duration of training is 10-15 days.Training is provided at all the levels. The new employees are told about the history of the

company, the company profile, their services, customer profile, area/location, marketshare, competitors and industry associates. It is basically a knowledge enhancing session.The trainer asks the new employee to deal with him as a customer. These will

provide relevant insight as to how he reacts to customer queries and such trainingprepares him for crucial service encounters.

Appraisal:-

The Appraisal System at American Express is Target - Achievement oriented. The KPAsand KRAs are predefined.

A target of 21 points is given to them in a month on the basis of their dealing with

the Externals and Internals. Externals are first time users and Internals are those that hada previous association.If a deal is done with Externals they get 3 -1/2 points and if with Internals they get

1 point. In the end their appraiser combines all the points and on the basis of that they aregiven rewards, promotions, demotions, counseling, training, etc, as the case may be.Employees are also appraised on the basis of the category they belong to:

G - TargetsM Interpersonal Skills

G1 M1 Targets over achieved and excellent interpersonal skills.G2 M2 100% achievement of targets and good interpersonal skills.G3 M3 50% 60% achievement of targets and average interpersonal skills.G4 M4 Targets not achieved and poor interpersonal skills.

Culture :-Core Culture :- Quality, cleanliness, service and price. The paramount idiom in American Express is total customer satisfaction.There is no job pressure and since the employees are highly satisfied and motivated sothey service they provide to the customer is also very satisfactory.

Strategies for Internal Marketing Adopted By American Express Bank Ltd.

FAIR PRACTICES CODE FOR CREDIT CARD OPERATIONS

American Express Bank Ltd. (hereinafter referred to the Bank) has a reputation forcustomer service and sound compliance. The Bank has various policies and proceduresthat govern its business activities and operations. Further, the Bank has compliance andother internal programs designed to ensure compliance with laws and regulations ofcountries where it does business. This Fair Practice Code (hereinafter referred to as the

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Code) for credit card operations is designed to guide and demonstrate the Bankscommitment to fair and ethical management of its business activities operations related toissuance of cards, customer service and other related activities.

BANKS VISION AND OPERATINGPRINCIPLES

Vision:

To become the world's most respected service brand.

Operating Principles:

We must provide a superior value proposition to our

customers

We must achieve Best-in-Class Economics Everything we do should support the American Express

Brand

BUSINESS ETHICS AND COMPLIANCE WITH THE LAW

The Bank and its employees shall ensure that ethical conduct shall permeate all our

business dealings and relationships.

In a rapidly evolving credit card business, the Bank and its employees shall ensure ethicalconduct in offering products and services, business activities, operations and customerservices.

The Bank shall conduct its business in accordance withapplicable laws andregulations

The Bank has competent individuals managing regulatory affairs and advising businessleaders about compliance requirements. The Bank has a sound compliance program toensure high level of compliance to applicable laws and regulations.

CARDS SALES AND MARKETING

The Bank shall provide full and complete disclosure ofproducts and services, theirfeatures and costs to enable aprospective customer to make an informed decision /choice

The Bank shall provide information on:

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Key features of our products and services

Applicable fees and other charges

Documents required with regard to identity, contact

particulars, employment, financial standing, etc.

How a customers personal information shall be used Details of Bank contact for seeking additional information

Terms and conditions related to fees and interest charges,

billing and payment, renewal, termination procedures and

other aspects related to maintenance and management of

card accounts.

The Banks advertising and marketing campaigns shall usetruthful and wholestatements about Banks products andservices

The Bank shall ensure that the whole of an advertisement istruthful, shall informcustomers of costs and obligations as wellas benefits and features. The advertisementsmay not misleadby using tricky or clever wording.

The Bank shall have a Code of Conduct for its agents andothers who sell, distributeor otherwise market Banks cardproducts.

The Bank shall ensure that all agents who sell, distribute or otherwise market Banks cardproducts have a Code of Conduct for their dealings with prospective customers andCardmembers. The Bank shall have monitoring process in place to review the agentscompliance to this code, at regular intervals.

CARD OPERATIONS AND CUSTOMER SERVICE

The Bank shall have effective processes and systems toensure quality in operationsand customer service

The Bank shall maintain effective processes and systems to maintain quality in following

card operations activities:

Timely processing for applications and communication of

decision to customers

Dispatch of credit card in a secured mode and follow-up

communication to inform about issuance of card

Availability of contact centers such as telephone service

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centers for customers to contact for information or queries

on products, services and related subjects

Timely dispatch of credit card statements

Timely processing of payments received from credit card

customers

Receipt and satisfactory disposition of customer correspondences and complaints

The Bank may have processes to honor customerschoices and preferences duringthe period of customerrelationship

The Bank may have processes to honor customers choices with regard to the following,subject to certain terms and conditions:

Change of payment modes within types offered by the

Bank

Opting out from receipt of Banks marketing and

promotional materials

Voluntary termination of credit card facility

The Bank shall treat customers with respect and dignity during collection efforts

The Bank has policies and employee training programs to guide employees to exhibitcourteous and fair behavior during collection efforts. The Bank shall ensure that allcollection and recovery agents have a Fair Practice Code for their dealings with thecustomers.The Bank shall have monitoring process in place to review the agentscompliance to this code, at regular intervals.

CUSTOMER PRIVACY

The Bank shall safeguard the privacy, confidentiality and security of customer data

entrusted with it.

The Bank has privacy principles to ensure that the customer information collected isrelevant, accurate and confidential. The Bank has adequate standards to protect customeraccounts and information. These standards allow customers to remove their names fromlists used for mail, telephone and online marketing. All employees shall be trained incustomer privacy principles as appropriate to their work.

FAIR COMPETITION

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The Bank shall comply fully with the letter and spirit of laws designed to preserve

free and open competition

The Bank strongly supports vigorous but fair competition.

The Bank shall make completely factual and truthful statements about our own

products or those of our competitions, whether in advertising or in speaking to

customers or others

The making of false or misleading statements about our competitors is inconsistent withour reputation for integrity. The Bank and its employees shall deal fairly and honestlywith allcustomers and suppliers.

COMPLIANCE WITH THE CODE

This is a non-statutory code and the Bank shall take efforts to adhere to it during normaloperating environment. The Bank shall not be held responsible for non-compliance due toforce major conditions and other reasons for which the Bank enjoys privilege and rightover the code. This code does not in anyway prevent the Bank from exercising its rightsand discharging its duties and obligations under law, regulations, agreement, terms andconditions, etc. in force and varied from time to time.

Process Of On-Line Marketing through excellent Internal Marketing

Practices At American Express Bank

Information Collection

If the customer is not registered for any online service from American Express, he canbrowse the Site anonymously. They do not collect personal information -- such as thecustomers name, address, phone number or e-mail address -- if you are only browsingthis site. American Express does, however, use "cookies" to collect information abouthow our site is used. Information, such as the server your computer is logged onto, thecustomers browser type (for example, Netscape or Internet Explorer), and whether thecustomer responded to an American Express banner ad or e-mail is collected and tracked

in aggregate and not linked to you personally. They use this information to measureresponse rates to banner ads and e-mail offers.

Registration for Online Products and Services

If the customers want to apply for or take advantage of our online products or services,the Bank will need them to give us some personal information, including their e-mail

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address and account number. The bank only collect information about the customer,which they need to process application, to service accounts and other needs, to offer newproducts and services, and to satisfy legal requirements. The Bank will also use thisinformation for purposes such as correspondence, site registration, allowing customers tocheck your statement or other account details online, to make a purchase, or to participate

in online surveys etc. The Bank will also share such information with our affiliates andother for the purposes described elsewhere in this Statement.

Quality of Information

The Bankuses advanced technology, documented employee procedures and internalmonitoring to help ensure that the personal information is accurate and up-to-date. Inaddition, they require high standards of quality from credit reporting agencies and otherswho provide us with information about prospective customers or other services.

Security

Before you can send confidential personal information or account information to us on anAmerican Express Web site, we require that a "secure session" is set up using SecureSocket Layer (SSL). About SSL and the safety and confidentiality of personalinformation transmissions over the Internet. They use a range of security processes toprotect the confidentiality and security of your personal information

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CONCLUSION

In this section, we attempt to review the important and role of internal marketing inforeign banks of India. Service sector contributes major part of gdp of India. And is oneof the most sectors which have too much potential in the sector. There is approx 10%growth in financial sector every year. And hence its very important to have continuesreforms in that area.

Indias leading bank is SBI, there are number of public and private banks toohaving good market. Still a number of people didnt want to go on for banks because offear of all the different technicalities and other factors. Its in mind of customers that theyhave to run from 1 place to other without any result and there money in not secure. So

now banks are paying more stress in internal marketing.

With the liberalization of economy few foreign banks have entered in India andwith that new techniques of marketing are growing. This study is to know the internalmarketing of foreign banks especially American bank and HSBC. Foreign banks paysquite stress on the internal marketing because in services customer have to deal withemployees directly and its quite important to have a proper selection process too. Inservice sector more than marketing word of mouth plays important role, a satisfiedcustomer will lead to many more customers. And foreign players are quite good inimplementing this concept in there work process. Now Indian banks are laso using theconcept of internal marketing effectively.

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Bibliography

WEBSITES

www.online.citibank.co.in

www.hsbc.co.in

https://home.americanexpress.com/corp

www.db.com

www.deutschebank.co.in

www.teachermarketing.com

www.poolonline.com/archives/iss5fea2.html

JOURNAL

Vol. VI No. 1 (March 2008) The Icfai Journal Of Services Marketing

http://www.online.citibank.co.in/http://www.online.citibank.co.in/http://www.hsbc.co.in/http://www.hsbc.co.in/https://home.americanexpress.com/corphttps://home.americanexpress.com/corphttp://www.db.com/http://www.db.com/http://www.deutschebank.co.in/http://www.deutschebank.co.in/http://www.teachermarketing.com/http://www.teachermarketing.com/http://www.poolonline.com/archives/iss5fea2.htmlhttp://www.poolonline.com/archives/iss5fea2.htmlhttp://www.online.citibank.co.in/http://www.hsbc.co.in/https://home.americanexpress.com/corphttp://www.db.com/http://www.deutschebank.co.in/http://www.teachermarketing.com/http://www.poolonline.com/archives/iss5fea2.html