Internal Marketing in Banks

Management Information System
The world’s local bank
About HSBC BANK
Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC’s international network comprises around 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.
Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.
History
The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hong Kong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe.

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Internal Marketing in HSBC BANK
1. Target Base Promotion Offers
Under one of the Policies of the Bank, it provides the promotion depending upon the target which is met by the employees on the quarterly basis. The employees who will achieve the target get the Incentive and the next month foreign tours. For example on the target of the 8account opening, if any employee opens 10 accounts then he is given next month foreign trip. Thus the prompt target based promotion builds up employee’s motivation 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 of the 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 that each one is responsible for the other performance.
This way each internal customer is able be keep under the eye of its superior. Moreover the communication link which is important for a service industry is possible with the help of the this management system.
3. Event Management
Under this head various events are organized from time to time in the banks to lure the high professionals for example Sales Tax Advocates, Income Tax Advocates and the Chartered Accountants etc so that external marketing could be more effective. Now the responsibilities of these events are on the internal customers and if they organize these events successfully it add on the credibility and the profitability of the internal customers and they are awarded with the various recognition prizes and awards for there effective leadership skills. This also helps to build up a relationship between the internal and external 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 touch points of Human Resources for example whenever Bank want to design training schedule for its internal customers, it design it in the Five –star hotels with all the luxuries there out with all the facilities away from there routine work so this enables the internal employees to be stress-free and grasp the training modules practically. As an HR policy this enables the employees to increase in there efficiency and feel free from the routine work. 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 a chance to be more interactive with the other professionals of other branches and if they facing 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 also holds a good MIS system for example here the reporting system is so designed so as to provide no chaos among the internal employees and they can easily report to there seniors online only.
6. Online Tests/Quizzes/Learning Modules
These tests are specially designed for every class of the employees in the HSBC so as to increase the handling efficiency of the internal customers with the help if of the case studies and the real life examples. Some of them are basic modules and they have to be cleared by the internal customers and some are there just to give them ranking by the HR professional which add-on to the character sketch of the employees and help them to be rated accordingly.
7. Systematic Employees coding
Under this head the internal customers (employees) are given the Employee Code and the People Shop Code. Employee code is given to the employees so as to assess their performance, rating grading whereas the PS is given to the facility of the HR department so that the various online tests, HR activities n be handled conveniently. Thus we can see that how effectively the separate identification no for the Human resource convenience is given 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 information between HSBC and its business customers, according to the bank. HSBC currently offers a service that provides corporate clients access to an automated host-to-host system to facilitate secure transactions. Called HSBC Connect, the service enables the back-end systems of the bank and its enterprise customers to communicate seamlessly and securely.
9. Recreational Activities
Time to time recreational activities are designed for the internal customer so as to decrease the stress of the employees. For example visit to Jim Corbett Park with full fledged facilities are provided to the employees. Thus as a foreign Bank internal marketing strategy they always focus on the Human resource aspect of the internal employees by provided the employee friendly environment with the help of the various recreational activities.
10. Employees Rating
HSBC BANK has full-proof rating system whereby the employees are divided into the four categories as 1st 2nd 3rd and 4th .The level of the employees are rated according to this rating. Currently 1st batch rating is not given in HSBC India but it have been achieved by the international HSBC superiors.
11. Customer Friendly Environment
As a internal customer friendly environment the internal customers are given flexible time 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 to the total increased efficiency
American Express Service India Ltd
Certain facts:

A survey wad conducted by India Today in which 20 most reputed foreign banks were surveyed on certain parameters and American Express ranked 6th in Employee Satisfaction. (Source: India Today , June 2008 issue)
American Express ranks 9th in the list of Fortune 500 companies.It comes under the A++ Category.

Service Blueprint of American Express. Following are the steps involved in making their credit cards available to their customers:-1) Call to customer 2) Appointment 3) Meet customer 4) Documentation 5) Employee back to office 6) Prepare Dispatch 7) Send an E-mail to the processing department 8) Verification 9) Dump (rejection) 10) Card Approval 11) Card Issue 12) Payment 1) 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 are narrated 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 the appointment fixed.
4) Documentation:- The Relationship officer asks the pre-requisites like personal details, 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.
5) Employee back to office:-The relationship officer comes back to the office after collecting all the relevant details and prepares a summary of the case.
6) Prepare Dispatch :-The Relationship officer prepares a soft copy as well as a hard 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 the prospective client. They search their past records as to whether or not they have had any prior contact with the prospect. If in case it is revealed that their has been a prior association and the prospect was a defaulter in that case then they come in the 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.
Hierarchy of American Express
Internal Marketing In American Express Bank
The responsibility of dealing with the customers at American Express is on two people
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 does not hold an M.B.A Degree then he is expected to have served in the same industry for a period of not less than 3 years.
The Relationship Officer is expected to have a dynamic personality, excellent Communication skills, good motivator, should have good convincing powers, etc. All these attributes are necessary because the Relationship Officer is the person who makes the direct contact with the prospective customers. He has the maximum “Encounters” with the customers.
Training:
The American Express bank has hired an International body, which provides training in Bangalore 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, market share, 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 training prepares him for crucial service encounters.
Appraisal:
The Appraisal System at American Express is Target – Achievement oriented. The KPAs and KRA’s 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 had a 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 are given 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 for customer service and sound compliance. The Bank has various policies and procedures that govern its business activities and operations. Further, the Bank has compliance and other internal programs designed to ensure compliance with laws and regulations of countries where it does business. This Fair Practice Code (hereinafter referred to as ‘the Code’) for credit card operations is designed to guide and demonstrate the Bank’s commitment to fair and ethical management of its business activities operations related to issuance of cards, customer service and other related activities.
BANK’S VISION AND OPERATING PRINCIPLES
Vision:
To become the world’s most respected service brand.
Operating Principles:
We must provide a superior value proposition to Everything we do shouldØWe must achieve Best-in-Class EconomicsØcustomersØour BrandØsupport the American Express
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 ethical conduct in offering products and services, business activities, operations and customer services.
The Bank shall conduct its business in accordance with applicable laws and regulations
The Bank has competent individuals managing regulatory affairs and advising business leaders about compliance requirements. The Bank has a sound compliance program to ensure high level of compliance to applicable laws and regulations.
CARDS – SALES AND MARKETING
The Bank shall provide full and complete disclosure of products and services, their features and costs to enable a prospective customer to make an informed decision / choice
The Bank shall provide information on:
Applicable fees

Key features of our products and services
particulars,
Documents required with regard to identity, contact
and other charges How a customer’s personal information§employment, financial standing, etc.

Terms

Details of Bank contact for seeking additional information
shall be used billing and payment,
and conditions related to fees and interest charges, other aspects related to maintenance and§renewal, termination procedures and card accounts.
management of

The Bank’s advertising and marketing campaigns shall use truthful and whole statements about Bank’s products and services
The Bank shall ensure that the whole of an advertisement is truthful, shall inform customers of costs and obligations as well as benefits and features. The advertisements may not mislead by using tricky or clever wording.
The Bank shall have a Code of Conduct for its agents and others who sell, distribute or otherwise market Bank’s card products.
The Bank shall ensure that all agents who sell, distribute or otherwise market Bank’s card products have a Code of Conduct for their dealings with prospective customers and Cardmembers. The Bank shall have monitoring process in place to review the agent’s compliance to this code, at regular intervals.
CARD OPERATIONS AND CUSTOMER SERVICE
The Bank shall have effective processes and systems to ensure quality in operations and customer service
The Bank shall maintain effective processes and systems to maintain quality in following card operations activities:
Timely§ Dispatch§decision to customers§processing for applications and communication of communication to inform about§of credit card in a secured mode and follow-up Availability of contact centers such as telephone service§issuance of card

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 customers’ choices and preferences during the period of customer relationship
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 Bank’s 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 exhibit courteous and fair behavior during collection efforts. The Bank shall ensure that all collection and recovery agents have a Fair Practice Code for their dealings with the customers.The Bank shall have monitoring process in place to review the agent’s compliance 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 is relevant, accurate and confidential. The Bank has adequate standards to protect customer accounts and information. These standards allow customers to remove their names from lists used for mail, telephone and online marketing. All employees shall be trained in customer privacy principles as appropriate to their work.
FAIR COMPETITION
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 with our reputation for integrity. The Bank and its employees shall deal fairly and honestly with all customers and suppliers.
COMPLIANCE WITH THE CODE
This is a non-statutory code and the Bank shall take efforts to adhere to it during normal operating environment. The Bank shall not be held responsible for non-compliance due to force major conditions and other reasons for which the Bank enjoys privilege and right over the code. This code does not in anyway prevent the Bank from exercising its rights and discharging its duties and obligations under law, regulations, agreement, terms and conditions, 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 can browse the Site anonymously. They do not collect personal information — such as the customer’s name, address, phone number or e-mail address — if you are only browsing this site. American Express does, however, use “cookies” to collect information about how our site is used. Information, such as the server your computer is logged onto, the customer’s browser type (for example, Netscape or Internet Explorer), and whether the customer 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 measure response 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 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 new products and services, and to satisfy legal requirements. The Bank will also use this information for purposes such as correspondence, site registration, allowing customers to check 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 and other for the purposes described elsewhere in this Statement.
Quality of Information
The Bank uses advanced technology, documented employee procedures and internal monitoring to help ensure that the personal information is accurate and up-to-date. In addition, they require high standards of quality from credit reporting agencies and others who provide us with information about prospective customers or other services.
Security
Before you can send confidential personal information or account information to us on an American Express Web site, we require that a “secure session” is set up using Secure Socket Layer (SSL). About SSL and the safety and confidentiality of personal information transmissions over the Internet. They use a range of security processes to protect the confidentiality and security of your personal information
CONCLUSION
In this section, we attempt to review the important and role of internal marketing in foreign banks of India. Service sector contributes major part of gdp of India. And is one of the most sectors which have too much potential in the sector. There is approx 10% growth in financial sector every year. And hence it’s very important to have continues reforms in that area.
India’s leading bank is SBI, there are number of public and private banks too having good market. Still a number of people didn’t want to go on for banks because of fear of all the different technicalities and other factors. It’s in mind of customers that they have 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 and with that new techniques of marketing are growing. This study is to know the internal marketing of foreign banks especially American bank and HSBC. Foreign banks pays quite stress on the internal marketing because in services customer have to deal with employees directly and its quite important to have a proper selection process too. In service sector more than marketing word of mouth plays important role, a satisfied customer will lead to many more customers. And foreign players are quite good in implementing this concept in there work process. Now Indian banks are laso using the concept of internal marketing effectively.
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