Description
American Express Company, also known as AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States.
INTRODUCTION TO ORGANIZATION STUDY
Introduction
This is an overall study of the organization of American Express Bank Ltd. where it’s working environment and various policies and practice are studied.
Objectives:
The study has undertaken to get an exposure of actual working environment in an organization. The main objective of the study is to familiarize with the frame work and method of organization working. • • • • To know how AMEX works and method adopted. To know the employee and employer relationship and co-ordination. To show up the different product range of AMEX. To know the overall development of AMEX.
Methodology:
Conducting personal interview with all the functional manager departmental head and sales executives. Collect the various data required to the study. Manuals and reports of the company constituted the source of secondary data.
Limitation:
The following limitation of this internship report: • • • • The study is limited to the study of whole organization and not on specific department. This study is only subject to an organization and not consist the whole market. The study is time bound and would be applicable to current scenario It is assumed that the information provided by the company is corrected and reference is drawn accordingly.
INDUSTRY PROFILE HISTORY OF BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:
• •
Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
•
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.
Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilisation was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.
Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalised. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:
• • • • • • • •
1949 : Enactment of Banking Regulation Act. 1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 1969 : Nationalisation of 14 major banks. 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : Nationalisation of seven banks with deposits over 200 crore.
After the nationalisation of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.
Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.4
AMERICAN EXPRESS BANK Ltd. INTRODUCTION
American Express Bank has presence in over 150 countries. It is a diversified travel and financial services company. Established in 1850 in New York, American Express Company 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 and financial services. American Express in India is the largest company to have wide network of travel locations in the country. American Express Travels has entered into a Memorandum of Understanding (MoU) with Department of Post to enable the designated Speed Post offices in distributing and encashing American Express Travelers Cheques. American Express Travelers 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
HISTORY
Since its founding in 1850, American Express has conducted business according to several guiding principles that over the years have become inextricably linked with the company’s brand, products, services and perhaps most notably its people. Generations before the phrase “company values” entered the corporate lexicon; American Express employees across the organization were demonstrating the same core principles upheld by the company today. American Express operates in over130 countries around the globe. Established in 1850 in New York City, American Express Company was among the first and most successful express delivery businesses to arise during the rapid westward expansion of the United States. The history of American Express is a fascinating one, filled with interested and sometimes quirky characters that through a combination of brains, perseverance and luck shaped the company’s development during the past century and a half. The express company that forwarded freight and valuables evolved into a company that created and sold financial products like money orders and travelers cheques. Following an era of international expansion, the company became an entity perhaps best known for its charge card. Today, American Express is a global payments company. The attributes that today are the hallmarks of the American Express brand trust, integrity, and security, quality, and customer service -- all have their roots in this compelling story. In this history, as well, are the genesis and development of the company's aspiration to become the world's most respected service brand.
AMERICAN EXPRESS BANK IN INDIA
American Express Bank is a diversified travel and financial services company. It was founded in the year 1850. American Express Travelers cell is the world leader. American Express India was established in 1921 providing high quality travel and financial services. American Express in India is the largest company to have wide network of travel locations in the country. American Express Card division also tops upon other credit card issuer. American Express Credit Cards in India is of basic two varieties, namely International Gold Amx Card and International Green Amx Card.
American Express Credit Cards
Criteria for availing American Express Gold and Green Cards are as follows:
Card Type International Gold Amex Card International Green Amex Card Public Income(Rs) 150000 Ltd - Self Employed - Salaried Income(Rs) 150000 -
Income(Rs) 150000
72000
72000
72000
American Express in India has also launched Tata Finance American Express Credit Card with Tata Finance Limited which is globally accepted on the American Express global merchant network. This card is both issued and serviced by Tata Finance Limited and carries an American Express Blue Box logo at the bottom. The American Express India Card Members enjoy discounts of 3% to 7% on airline tickets, convenience of booking tickets over the phone and 40% discounts on overseas hotels rates.
American Express Travelers
Being the best in the world, and American Express India having the largest network of travel locations in the country, American Express Travels has also entered into a Memorandum of Understanding (MoU) with Department of Post. This arrangement enables the designated Speed Post offices in distributing and encashing American Express Travelers’ Cheques.
American Express Online
American Express is online in the maximum countries out of over 130 countries it has services. The URL of American Express India is as under: www.americanexpress.com/india Some of the following services can obtained online
• • • • • • •
View your Amex Card account statement online Register to manage your Amex Card account online View your American Express Rewards™ Points Reset your Amx Card account password Update your Personal Amex Card information Order your promotional material Apply to accept the Amx Card
AREA OF BUSINESS
SMALL BUSINESS • CORPORATIONS • • • MERCHANTS • • PERSONAL PERSONAL CARDS • • • • • TRAVEL • • • • • • • Flights Hotels Cars Cruises Vacations Last Minute Deals Traveler’s Cheque Cards Apply for a Card Membership Rewards Benefits Shopping Gift Cards Accept the card Manage your Merchant Account Apply for a Corporate Card Corporate Card Business Travel Apply for Cards & Financing
PRODUCTS & SERVICES INVESTMENT PRODUCTS
We offer a full range of investment products and the highest standard in investment management. The Private Bank has the flexibility to choose world-class sub-advisors and investment managers from the world's leading asset management and specialty fund managers.
FOREIGN EXCHANGE & TREASURY
Around-the-clock trading of an extensive range of foreign exchange products, including spot trading, options, derivatives and forward contracts, with particular expertise in non-G7 currencies. American Express Bank has trading centers in Hong Kong, Singapore, London and New York.
CREDIT AVAILABILITY
Secured loans to provide short-term liquidity without disrupting your long-term investment positions, or to increase your exposures for yield enhancement. You can leverage your assets in one jurisdiction for use in another, or your personal assets for your business. Pre-approved loan margins are in place for a wide range of assets. People can call for the specific loan-to-value percentage for each product.
FIDUCIARY SERVICES
Legal structures to protect your assets ensure your wishes are carried out and secure the future for you and your family. Fiduciary specialists are available in Europe, Asia and the Americas to advise you on the structures that will provide protection and accomplish your objectives.
INSURANCE
Insurance can provide liquidity at a critical moment, continuity in your business should you become disabled, and the maximum number of choices for your heirs. Policies are issued by established external insurance carriers selected on a region-byregion basis.
CHOICE OF JURIDICTION
The Private Bank has offices in all of the major offshore private banking locations. American Express Private Bank offers access to a wide range of investment products and services that can help you protect and build your wealth, regardless of your financial objectives.
SIGNATURE PORTFOLIOS
For individual and institutional investors with $1 million or more, Signature Portfolios offer professional management and a choice of fixed income, equity or balanced orientation.
• • • • • • • • • •
US Conservative Fixed Income US Moderate Fixed Income Euro Fixed Income Global Fixed Income Global Equities US Equities US Mid Cap Equities US Large Cap Equities Japanese Equities European Equities
DISCRETIONARY PORTFOLIOS
These investments are designed for clients who want globally diversified portfolios with professional management of asset allocation and underlying products.
CASH PLUS
• • • •
Cash Plus Conservative Cash Plus Moderate Cash Plus Moderate Euro Cash Plus Growth
BALANCED ENHANCED
• • • •
Enhanced Global Conservative Enhanced Global Moderate Enhanced European Moderate Enhanced Global Aggressive
TRADITIONAL
• • • •
Traditional Global Conservative Traditional Global Moderate Traditional European Moderate Traditional Asian Moderate
FOCUSED EQUITIES
• • • •
Focused Global Equities Focused Asia Ex-Japan Equities Focused US Equities Focused Emerging Markets Equities
MUTUAL FUNDS
American Express Funds—World folio, American Express—Institutional and World Express Funds offer a broad range of mutual funds designed to meet individual risk tolerance and time horizon preferences.
PRIVATE BANKER
Your Private Banker can marshal resources on your behalf and craft solutions to your individual requirements. Wherever the need may arise, you can have access to the worldwide capabilities and services of the American Express Company, a global leader in financial services, travel, and credit and charge cards. The original card that set the standard for prestige and exclusivity, the Platinum Card is offered to private banking clients at no annual fee with qualifying balances. Automatic credit card bill payments can also be arranged through your Private Banker. The original card that set the standard for prestige and exclusivity, the Platinum Card is offered to private banking clients at no annual fee with qualifying balances. Automatic credit card bill payments can also be arranged through your Private Banker. Travelers Cheques are available in most currencies, including the Euro, and can be purchased through your Private Banker. The Private Bank has an extensive global network that has grown and developed throughout the years to meet the needs of our clients. American Express Bank currently has 75 offices in 38 countries around the world.
WEALTH MANAGEMENT
American Express Private Bank offers a range of wealth management services designed to meet your unique needs. • • • Protecting Your Wealth Building Your Wealth Providing for Future Generations
DEPOSITS
Traditional and innovative deposit and deposit-alternative products can help you meet your needs for liquidity and capital. American Express Premium Deposits, available in most locations in U.S. dollars and Euro, offer an alternative to bank deposits and are particularly suited to investors who want both security and a competitive rate. These non-bank deposits are available in terms of 1, 2, 3, 6 or 12 months with competitive rates relative to the London Interbank Rate, fixed for the term of the deposit. • • • • Our investment management solutions are designed to grow your assets while you achieve your unique financial objectives. Maximum flexibility and access to nearly all the major worldwide asset classes characterize the Private Bank's family of mutual funds. Portfolio management by investment professionals who are among the best in their industry. Discretionary portfolios for investors who want globally diversified portfolios and prefer professional management of their asset allocation and fund selection. • • Alternative investment solutions for sophisticated investors. Ideas and information that synthesize research from within and outside of American Express to assist you in making your investment choices.
OTHER SERVICES
Your substantial assets require complex estate planning to ensure that your wealth is protected and managed for your benefit and for the benefit of future generations. A variety of structures to choose from, including trusts and private investment companies, depending on your individual circumstances. Expert advice to meet your needs for estate planning, tax minimization, confidentiality, and management continuity and centralization. A choice of jurisdictions for the most convenient and advantageous location.
ACTIVITIES
• The American Express Bank India offers cards to meet every
requirement of their clients. The American Express Card division stands at the top of all other credit card issuer. American Express Credit Cards in India is of two varieties1. 2. International Gold Amex Card International Green Amex Card
The American Express India Card members enjoy discounts of 3% to 7% on airline tickets, convenience of booking tickets over the phone and 40% discounts on overseas hotel rates. The American Express Bank India provides a wide range of cards like the American Express E-Credit Card, American Express Credit Card, American Express Gold Credit Card, American Express Card, American Express Gold Card, American Express Platinum Card, MTNL American Express Credit Card, India Today Group American Express Credit Card, Indian Airlines American Express Green Card, Indian Airlines American Express Gold Card, Indian Medical Association (IMA) American Express Credit Card for medical professionals and The Institute of Cost and Works Accountants of India (ICWAI) American Express Credit Card for Cost and Work accountants. • The other noteworthy services offered by the American Express Bank India are the issue of the American Express Travelers Cheques which is recognized globally and are safer to handle than cash. American Express Travelers Cheques are replaced worldwide within 24 hours in case of lost or theft. They are available in a variety of currencies like the Australian Dollar, Canadian Dollar, Euro, Japanese Yen, Saudi Riyal, South African Rand, Swiss Franc, Pound Sterling and US Dollar. • The American Express Bank India also provides personal banking services like Savings, Current and Term Deposit Accounts, Personal Loans and Investment Services. • The American Express Bank India with Tata Finance Limited has launched Tata Finance American Express Credit Card.
VISION, MISSION & OBJECTIVES VISION
To become the world's most respected service brand. .
MISSION
•
A logical extension of the Vision Statement is the Mission of the Bank, which is to gain market recognition in the chosen areas. To build sizeable markets share in each of the chosen areas of business through effective strategies in terms of pricing, product packaging and promoting the product in the market.
•
•
To promote confidence and commitment among the staff members, to address the expectations of the customers efficiently and handle technology banking with ease
OBJECTIVES
• • • • • Customer privacy Customer confidentiality Security of customer data Customer satisfaction Providing high quality services & products
PEOPLE BEHIND AMEX
American Express was founded in 1850 by Henry Wells, William Fargo, and John Butterfield as an express business. In 1882, American Express launched its money order business to compete with the US Post Office's money orders. This product quickly spread to Europe where no such financial product existed. Sometime between 1888 and 1890, J. C. Fargo took a trip to Europe and returned frustrated and infuriated. American Express India was established in 1921 providing high quality travel and financial services. American Express in India is the largest company to have wide network of travel locations in the country. American Express Travels has entered into a Memorandum of Understanding (MoU) with Department of Post to enable the designated Speed Post offices in distributing and encashing American Express Travelers Cheques. W. Richard Holmes has been elected chairman of American Express Bank, Ltd., (AEB) American Express Company's international banking subsidiary, based in New York. He adds this title to his current one of chief executive officer of AEB, a role he assumed in June, 2000. As chairman, he succeeds James Cracchiolo, who has stepped down as chairman of AEB to work full-time with the Company to complete the spinoff of American Express Financial Advisors (AEFA). William J. Blomquist, currently managing director and head of AEB's Financial Institutions Group, and Sergio J. Masvidal, currently managing director and head of AEB's Private Bank, were elected Vice Chairmen. Holmes, 52, became president and chief executive officer of AEB in 2000. He joined American Express in 1996 as managing Director and head of Worldwide Private Banking, leading that unit through a period of significant expansion. Holmes has more than 20 years experience in international banking, having served in various positions at Wells Fargo Bank and at Bank of America. From 1993 to 1996 he was an executive vice president and head of Bank of America's Private Bank. He
began his professional career with the accounting firm of Peat, Marwick & Mitchell in 1974. He holds a bachelor's degree in Economics from St. Johns College, Cambridge University in England in 1974 and a master's degree in economics, also from St. Johns. He is also a Fellow of the Institute of Chartered Accountants in England and Wales and co-chairman of the International Private Banking Council. William J. Blomquist, a 35-year veteran of American Express Bank, was appointed managing director and head of the Financial Institutions Group in 1995. He had been managing director and regional executive in charge of Europe, Middle East, and Africa, from 1990-1995. Prior to that, he held wide-ranging senior management roles in Switzerland, Asia, and the Middle East. Sergio Masvidal was appointed managing director and Head of the Global Private Bank, based in Miami, Florida, in 2000. He joined AEB in 1987 as general manager of American Express Bank International, the private banking arm of AEB. In 1992, he became president of AEBI and in 1996 he became Latin American region head for the Private Bank. He has more than 30 years of experience in the banking industry.
BOARD OF DIRECTORS
Daniel F. Akerson Managing Director, The Carlyle Group Charlene Barshefsky Senior International Partner, Wilmer Cutler Pickering Hale and Dorr LLP Ursula M. Burns Senior Corporate Vice President and President of Business Group Operations, Xerox Corporation Kenneth I. Chenault Chairman and Chief Executive Officer, American Express Company Peter Chernin President and COO, News Corporation Vernon E. Jordan Jr. Senior Managing Director, Lazard Freres & Co. LLC Jan Leschly Chairman and Chief Executive Officer, Care Capital LLC Richard C. Levin President, Yale University Richard A. McGinn Partner, RRE Ventures Edward D. Miller Former President and Chief Executive Officer, AXA Financial, Inc.
Frank P. Popoff Chairman, Chemical Financial Corporation Steven S Reinemund Former Chairman and Chief Executive Officer, PepsiCo, Inc. Robert D. Walter Chairman and Chief Executive Officer, Cardinal Health, Inc. Ronald A. Williams Chairman, Chief Executive Officer and President, Aetna, Inc
POLICIES
Some of the policies of AMEX are as following:
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.
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 noncompliance due to force majored 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.
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
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.
FUNCTIONAL AREAS
ORGANISATION CHART
AMERICAN EXPRESS INTERACTIVE
American Express Interactive (AXPi) drives online business strategies across the entire enterprise. This means being cohesively integrated into every business unit, merging service and marketing with leading-edge interactive technologies. Working with AXPi provides a broad view of our entire organization, as well as the competitive landscape. It keeps a sharp eye on external indicators and builds strong internal relationships that allow identifying and responding to all emerging opportunities. AXPi clearly impacts the bottom line of our global company, with accountability for developing new ideas and delivering on real results.
MARKETING
American Express is a premiere marketing company, known for sharp, savvy strategies. Here, it develops and champion a well-established brand built upon excellent product and service attributes. It manages product lifecycles from beginning to end, synthesizing information into actionable plans. It also develops an understanding of new product development, customer acquisition and loyalty, and partnership opportunities.
MARKETING BUSINESS UNITS
American Express Interactive (AXPi) Consumer Card Services Group (CCSG) Establishment Services (ES) Global Commercial Card (GCC) OPEN from American Express (OPEN) Global Network Services (GNS) International Consumer & Small Business Services (ICSS) Global Business Travel (GBT)
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: • • • 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 customer’s 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 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 ard products have a Code of Conduct for their dealings with prospective customers and Card members. The Bank shall have monitoring process in place to review the agent’s compliance to this code, at regular intervals.
COMPETITORS OF AMERICAN EXPRESS BANK Top Performing Public Sector Banks
1 Andhra Bank 2 State Bank of Mysore 3 Allahabad Bank 4 Vijaya Bank 5 Punjab National Bank
Top Performing Private Sector Banks
1 HDFC Bank 2 UTI Bank 3 ICICI Bank 4 Kotak Mahindra Bank 5 Centurion Bank of Punjab
Top Performing Foreign Banks
1 Citibank 2 Standard Chartered PLC 3 HSBC Bank 4 ABN AMRO Bank
CUSTOMER CARE
Customer Care, which is called Service Delivery Network (SDN), you will become familiar with our diverse customer base, their needs and expectations, and the industry-best products and services we provide. The work is about reengineering and optimizing processes for improved satisfaction and cost containment, as well as developing operational and network strategies for maximum efficiency. It's also about selling ideas, creating better solutions and responding to trends. Customer Care is opportunity to make decisions that impact millions of people around the world, take ownership for own success, and win for the customer at every occasion.
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 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 centers for customers to contact for information or queries on products, services and related subjects ? ? customers ? Receipt and satisfactory disposition of customer correspondences and complaints Timely dispatch of credit card statements Timely processing of payments received from credit card
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: • • materials • Voluntary termination of credit card facility Change of payment modes within types offered by the Bank Opting out from receipt of Bank’s marketing and promotional
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.
RISK & INFORMATION MANAGEMENT
In the financial services arena, the Risk, Information and Banking function is the backbone of our operations. The work is truly global and transcends all aspects of American Express, including consumer cards, small business services, corporate services, and our merchant partners. Here, it set the industry standard for managing risk associated with fraudulent activity, while also providing a strategic perspective, overseeing the customer information cycle, and leveraging technology in support of all business units. Because of this scope, Risk, Information and Banking is an ideal place to get an "end-to-end" understanding of the Company's core businesses and position yourself for future growth across various departments and geographies.
FINANCE
Finance at American Express plays an integral role in everything from new product development to corporate planning and reengineering. It is owner, guardian and analyst of information, making strategic, financial and operational decisions that impact customers, merchants and shareholders. Work may be focused on a specific business unit or corporate-wide initiatives, giving exposure to a variety of financial projects. Either way, work in Finance will make a lasting impact on global customer base, as it excel on a collaborative, cross-functional team with a mission to be the world's most respected service brand.
STRATEGIC PLANNING GROUP
What kind of company should American Express be in five years? That's the kind of far-reaching question we answer as a member of Strategic Planning Group (SPG). It serve as an internal consultant and incubator of innovative ideas, spearheading largescale strategy projects centered on growth opportunities, investment prospects, acquisition targets and other high-level initiatives. SPG provides an alternative to traditional consulting work, offering comparable challenges with a world-class company without the rigors of constant travel.
HUMAN RESOURCE MANAGEMENT
The Human Resources team at American Express works in true partnership with our business clients. It provides service and support throughout the full spectrum of the employee experience, from selection, hiring and orientation, to leadership development and talent management. It has the responsibility and opportunity to communicate messages about the company's global strategy, ensuring that our professionals are placed in roles and environments where they - and our business units - will thrive. In short, work will be all about the extraordinary people who make American Express one of the world's most recognized and respected brands.
TECHNOLOGIES
The goal of our Technologies organization is to extend a competitive advantage with capabilities that support increased customer spending, company revenue and net income. Work in this area; focus on developing strategies and solutions for delivering an enhanced customer experience to all American Express card members. It analyze business systems, investigate emerging technologies, and make effective recommendations that will help bring new products to the market faster, exceed business partner expectations, validate investment decisions, and sustain a flexible global organization.
SWOT ANALYSIS STRENGTHS
• • • • • • • • • Liberal economic system. Sound bank managements. Improved risk management. Diversity in bank funding activities. High systemic liquidity. Safety of depositors’ funds comes in priority. Wide spread developed banking culture. A healthy banking system. Banking secrecy laws.
WEAKNESS
• • • Government financing by banks out of acceptable standards. Very weak corporate governance. Limited branches.
OPPORTUNITIES
• • . Privatization creates ample opportunities for economic growth. Banking Over Borders – extension to regional countries.
THREATS
• • Presence of nationalized banks. Presence of foreign banks.
A STUDY ON THE CUSTOMER SATISFACTION LEVEL OBJECTIVE OF STUDY
Customer satisfaction level from present Amex Services and to know other services customers expecting from Amex Bank.
RESEARCH METHODOLOGY MARKETING RESEARCH AND ITS METHODOLOGY:
A. Though Interacting with the Clients of Amex Bank B. Qualitative Research D. Questionnaires E. Analysis and statistics
• • •
Statistics Analysing Data Surveys with Confidence
SCOPE OF REPORT
The scope of this report is limited up to services provided by Amex Bank not by other banks. These reports just show the level of customer satisfaction from Amex Services and at the same time new product which customer is expecting from Amex
DATA COLLECTION
• • • Through Clients of Amex Internet Magazines
LIMITATIONS
Each and every project report or research carried out has some limitations, be it times constraints or any other such issues that invariably, plagues the result. It is always important to indicate the limitations of the project carried out so the evaluator is in the position to evaluate out the project. Further it also helps the end users of the report to interpret the results in more valid and realistic manner. It has an advantage from the researchers stand point of giving ample confidence in the research conducted and the research presented. The project submitted would definitely suffer from some limitations were: • • • Time constraints Key personnel To reach every client
It is important to mention that it was difficult to catch hold of key personnel. Often the top rank officials did not have sufficient time to provide information they always seemed to have to attend some meetings or conferences.
SOME OTHER LIMITATIONS:
At the time of survey, I did not found fair response from various clients, because they cannot answer some of the question asked. So many times I got different response for same bank from different clients.
DATA ANALYSIS Table 1: Services availing from AMEX Bank
Attributes Saving/Current A/C
Remittances Draft facilities Foreign exchange services
No. of respondents Total 40
5 18 28
Percentage 80% 10% 36% 56% 46% 32%
50
50 50 50
Investment products
23
50
Other services
16
50
45 40 35 30 25 20 15 10 5 5 0 Saving/Current A/C Remittances Draft facilities Foreign exchange services Investment products Other services 18 40 28 23 16
Series1
Services availing from AMEX Bank
ANALYSIS
Maximum customers use saving/current A/C, Foreign exchange & Investment services. Some customers use Draft & other services l ike
financing. Few customers use remittance
services. Draft & financing services has higher charges and moreover AMEX has limited branches.
Table 2: Basis on which customers choose their bank
Attributes Quality of services Customer interaction Interest rate & services Convenience Others Total
No. of respondents 26 14 2 5 3 50
Percentage 52% 28% 4% 10% 6% 100%
Basis on which customers choose their bank
Convenience 10% Interest rate & services 4%
Others 6%
Customer interaction 28%
Quality of services 52%
Quality of services
Customer interaction
Interest rate & services
Convenience
Others
ANALYSIS
More than 50% customers choose their bank on the basis of quality of services. Customer interaction is also a strong base for choosing the bank for their services. AMEX Bank provides quality services to their customers.
Table 3: Customers satisfied with the services of AMEX Bank
Attributes Satisfied Not satisfied Total
No. of respondents 41 9 50
Percentage 82% 18% 100%
Customers satisfied with the services of AMEX Bank
Not satisfied 18%
Satisfied 82%
Satisfied
Not satisfied
ANALYSIS
This research was made on customer satisfaction of American Express bank. The Amex is one of those banks who serve its customers in the best way and also give due consideration to its customer service. Maximum clients who have their Corporate Accounts or individual Account with Amex are satisfied with its services. Amex provides all the modern services to its customer. But there are also few customers who are not satisfied or expect more services from the bank.
FINDINGS
• Demand draft facility which is a basic customer satisfying service is not available in many cities. • Some customers feel that customer satisfying services should be improved however such group of customers was very small. • • Few customers have confusion on charges that are charged on their accounts.
Maximum customers feel that the service & products provided by bank are very good & they are satisfied with it.
•
AMEX Bank provides quality services to their customers & customers choose bank on the basis of quality of services and customer interaction.
RECOMMENDATIONS
• Need to improve on customer satisfying services, like; Demand Draft facility should be available in all cities. • Need to improve on satisfying customer and handling their queries in a sound manner. • Need to clarify customer for the charges that are being charged on their account without clarification. • Need to have a stabilized banking staff to co-ordinate with customer from time to time.
COCLUSION
American Express Bank provides different types of products & services to customers. The main objective of Bank is customer satisfaction, privacy & confidentiality. It provides quality services to their customers. Customer interaction is also good in providing services. Maximum customers are satisfied with the services provided by the Bank. The Amex is one of those banks who serve its customers in the best way and also give due consideration to its customer service. Maximum clients who have their Corporate Accounts or individual Account with Amex are satisfied with its services. Amex provides all the modern services to its customer.
BIBLIOGRAPHY
Philip Kotler 7th edition Company Annual Report Employee database WEB SITES www.americanexpres.com www.google.com
ANNEXURES
MARKET RESEARCH FORM 1. • • • • 2. • • • • Name DesignationMobileE-mailName of Company: Address (H.O)Phone NoFaxWebsiteContact Person
3. Business Details: • • Description Brand Name (if any)
4. Business Turnover (Yearly) Rs….
5. Do you have any Group A/Cs? • • Yes No
If yes, please specify name ................................................................................................. 6. Services availing from AMEX as of now? • • • • • • Saving /Current A/C Remittances Draft Facilities Foreign Exchange Services Investment Products Any Other Services
7 On what basis do you choose your bank? . • • • • • Quality of service Customer Interaction Interest rate & Charges Convenience Others (………………………………………………..)
8. Is anything lacking in services? If yes please specify: …………………………………………………………………………… …………………………………………………………………………… 9. Are you satisfied with the services of Bank? • • YES NO
10. Would you like to give any Suggestion to Bank? If yes please specify: • …………………………………………………) • No Yes
(……………………………………………………………………………
doc_350528782.doc
American Express Company, also known as AmEx, is an American multinational financial services corporation headquartered in Three World Financial Center, Manhattan, New York City, New York, United States.
INTRODUCTION TO ORGANIZATION STUDY
Introduction
This is an overall study of the organization of American Express Bank Ltd. where it’s working environment and various policies and practice are studied.
Objectives:
The study has undertaken to get an exposure of actual working environment in an organization. The main objective of the study is to familiarize with the frame work and method of organization working. • • • • To know how AMEX works and method adopted. To know the employee and employer relationship and co-ordination. To show up the different product range of AMEX. To know the overall development of AMEX.
Methodology:
Conducting personal interview with all the functional manager departmental head and sales executives. Collect the various data required to the study. Manuals and reports of the company constituted the source of secondary data.
Limitation:
The following limitation of this internship report: • • • • The study is limited to the study of whole organization and not on specific department. This study is only subject to an organization and not consist the whole market. The study is time bound and would be applicable to current scenario It is assumed that the information provided by the company is corrected and reference is drawn accordingly.
INDUSTRY PROFILE HISTORY OF BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:
• •
Early phase from 1786 to 1969 of Indian Banks Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
•
To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase III.
Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the Government of India came up with The Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. During those days public has lesser confidence in the banks. As an aftermath deposit mobilisation was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.
Phase II Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country were nationalised. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking segment in India under Government ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:
• • • • • • • •
1949 : Enactment of Banking Regulation Act. 1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 1969 : Nationalisation of 14 major banks. 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : Nationalisation of seven banks with deposits over 200 crore.
After the nationalisation of banks, the branches of the public sector bank India rose to approximately 800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions.
Phase III This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his name which worked for the liberalisation of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money. The financial system of India has shown a great deal of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign exchange exposure.4
AMERICAN EXPRESS BANK Ltd. INTRODUCTION
American Express Bank has presence in over 150 countries. It is a diversified travel and financial services company. Established in 1850 in New York, American Express Company 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 and financial services. American Express in India is the largest company to have wide network of travel locations in the country. American Express Travels has entered into a Memorandum of Understanding (MoU) with Department of Post to enable the designated Speed Post offices in distributing and encashing American Express Travelers Cheques. American Express Travelers 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
HISTORY
Since its founding in 1850, American Express has conducted business according to several guiding principles that over the years have become inextricably linked with the company’s brand, products, services and perhaps most notably its people. Generations before the phrase “company values” entered the corporate lexicon; American Express employees across the organization were demonstrating the same core principles upheld by the company today. American Express operates in over130 countries around the globe. Established in 1850 in New York City, American Express Company was among the first and most successful express delivery businesses to arise during the rapid westward expansion of the United States. The history of American Express is a fascinating one, filled with interested and sometimes quirky characters that through a combination of brains, perseverance and luck shaped the company’s development during the past century and a half. The express company that forwarded freight and valuables evolved into a company that created and sold financial products like money orders and travelers cheques. Following an era of international expansion, the company became an entity perhaps best known for its charge card. Today, American Express is a global payments company. The attributes that today are the hallmarks of the American Express brand trust, integrity, and security, quality, and customer service -- all have their roots in this compelling story. In this history, as well, are the genesis and development of the company's aspiration to become the world's most respected service brand.
AMERICAN EXPRESS BANK IN INDIA
American Express Bank is a diversified travel and financial services company. It was founded in the year 1850. American Express Travelers cell is the world leader. American Express India was established in 1921 providing high quality travel and financial services. American Express in India is the largest company to have wide network of travel locations in the country. American Express Card division also tops upon other credit card issuer. American Express Credit Cards in India is of basic two varieties, namely International Gold Amx Card and International Green Amx Card.
American Express Credit Cards
Criteria for availing American Express Gold and Green Cards are as follows:
Card Type International Gold Amex Card International Green Amex Card Public Income(Rs) 150000 Ltd - Self Employed - Salaried Income(Rs) 150000 -
Income(Rs) 150000
72000
72000
72000
American Express in India has also launched Tata Finance American Express Credit Card with Tata Finance Limited which is globally accepted on the American Express global merchant network. This card is both issued and serviced by Tata Finance Limited and carries an American Express Blue Box logo at the bottom. The American Express India Card Members enjoy discounts of 3% to 7% on airline tickets, convenience of booking tickets over the phone and 40% discounts on overseas hotels rates.
American Express Travelers
Being the best in the world, and American Express India having the largest network of travel locations in the country, American Express Travels has also entered into a Memorandum of Understanding (MoU) with Department of Post. This arrangement enables the designated Speed Post offices in distributing and encashing American Express Travelers’ Cheques.
American Express Online
American Express is online in the maximum countries out of over 130 countries it has services. The URL of American Express India is as under: www.americanexpress.com/india Some of the following services can obtained online
• • • • • • •
View your Amex Card account statement online Register to manage your Amex Card account online View your American Express Rewards™ Points Reset your Amx Card account password Update your Personal Amex Card information Order your promotional material Apply to accept the Amx Card
AREA OF BUSINESS
SMALL BUSINESS • CORPORATIONS • • • MERCHANTS • • PERSONAL PERSONAL CARDS • • • • • TRAVEL • • • • • • • Flights Hotels Cars Cruises Vacations Last Minute Deals Traveler’s Cheque Cards Apply for a Card Membership Rewards Benefits Shopping Gift Cards Accept the card Manage your Merchant Account Apply for a Corporate Card Corporate Card Business Travel Apply for Cards & Financing
PRODUCTS & SERVICES INVESTMENT PRODUCTS
We offer a full range of investment products and the highest standard in investment management. The Private Bank has the flexibility to choose world-class sub-advisors and investment managers from the world's leading asset management and specialty fund managers.
FOREIGN EXCHANGE & TREASURY
Around-the-clock trading of an extensive range of foreign exchange products, including spot trading, options, derivatives and forward contracts, with particular expertise in non-G7 currencies. American Express Bank has trading centers in Hong Kong, Singapore, London and New York.
CREDIT AVAILABILITY
Secured loans to provide short-term liquidity without disrupting your long-term investment positions, or to increase your exposures for yield enhancement. You can leverage your assets in one jurisdiction for use in another, or your personal assets for your business. Pre-approved loan margins are in place for a wide range of assets. People can call for the specific loan-to-value percentage for each product.
FIDUCIARY SERVICES
Legal structures to protect your assets ensure your wishes are carried out and secure the future for you and your family. Fiduciary specialists are available in Europe, Asia and the Americas to advise you on the structures that will provide protection and accomplish your objectives.
INSURANCE
Insurance can provide liquidity at a critical moment, continuity in your business should you become disabled, and the maximum number of choices for your heirs. Policies are issued by established external insurance carriers selected on a region-byregion basis.
CHOICE OF JURIDICTION
The Private Bank has offices in all of the major offshore private banking locations. American Express Private Bank offers access to a wide range of investment products and services that can help you protect and build your wealth, regardless of your financial objectives.
SIGNATURE PORTFOLIOS
For individual and institutional investors with $1 million or more, Signature Portfolios offer professional management and a choice of fixed income, equity or balanced orientation.
• • • • • • • • • •
US Conservative Fixed Income US Moderate Fixed Income Euro Fixed Income Global Fixed Income Global Equities US Equities US Mid Cap Equities US Large Cap Equities Japanese Equities European Equities
DISCRETIONARY PORTFOLIOS
These investments are designed for clients who want globally diversified portfolios with professional management of asset allocation and underlying products.
CASH PLUS
• • • •
Cash Plus Conservative Cash Plus Moderate Cash Plus Moderate Euro Cash Plus Growth
BALANCED ENHANCED
• • • •
Enhanced Global Conservative Enhanced Global Moderate Enhanced European Moderate Enhanced Global Aggressive
TRADITIONAL
• • • •
Traditional Global Conservative Traditional Global Moderate Traditional European Moderate Traditional Asian Moderate
FOCUSED EQUITIES
• • • •
Focused Global Equities Focused Asia Ex-Japan Equities Focused US Equities Focused Emerging Markets Equities
MUTUAL FUNDS
American Express Funds—World folio, American Express—Institutional and World Express Funds offer a broad range of mutual funds designed to meet individual risk tolerance and time horizon preferences.
PRIVATE BANKER
Your Private Banker can marshal resources on your behalf and craft solutions to your individual requirements. Wherever the need may arise, you can have access to the worldwide capabilities and services of the American Express Company, a global leader in financial services, travel, and credit and charge cards. The original card that set the standard for prestige and exclusivity, the Platinum Card is offered to private banking clients at no annual fee with qualifying balances. Automatic credit card bill payments can also be arranged through your Private Banker. The original card that set the standard for prestige and exclusivity, the Platinum Card is offered to private banking clients at no annual fee with qualifying balances. Automatic credit card bill payments can also be arranged through your Private Banker. Travelers Cheques are available in most currencies, including the Euro, and can be purchased through your Private Banker. The Private Bank has an extensive global network that has grown and developed throughout the years to meet the needs of our clients. American Express Bank currently has 75 offices in 38 countries around the world.
WEALTH MANAGEMENT
American Express Private Bank offers a range of wealth management services designed to meet your unique needs. • • • Protecting Your Wealth Building Your Wealth Providing for Future Generations
DEPOSITS
Traditional and innovative deposit and deposit-alternative products can help you meet your needs for liquidity and capital. American Express Premium Deposits, available in most locations in U.S. dollars and Euro, offer an alternative to bank deposits and are particularly suited to investors who want both security and a competitive rate. These non-bank deposits are available in terms of 1, 2, 3, 6 or 12 months with competitive rates relative to the London Interbank Rate, fixed for the term of the deposit. • • • • Our investment management solutions are designed to grow your assets while you achieve your unique financial objectives. Maximum flexibility and access to nearly all the major worldwide asset classes characterize the Private Bank's family of mutual funds. Portfolio management by investment professionals who are among the best in their industry. Discretionary portfolios for investors who want globally diversified portfolios and prefer professional management of their asset allocation and fund selection. • • Alternative investment solutions for sophisticated investors. Ideas and information that synthesize research from within and outside of American Express to assist you in making your investment choices.
OTHER SERVICES
Your substantial assets require complex estate planning to ensure that your wealth is protected and managed for your benefit and for the benefit of future generations. A variety of structures to choose from, including trusts and private investment companies, depending on your individual circumstances. Expert advice to meet your needs for estate planning, tax minimization, confidentiality, and management continuity and centralization. A choice of jurisdictions for the most convenient and advantageous location.
ACTIVITIES
• The American Express Bank India offers cards to meet every
requirement of their clients. The American Express Card division stands at the top of all other credit card issuer. American Express Credit Cards in India is of two varieties1. 2. International Gold Amex Card International Green Amex Card
The American Express India Card members enjoy discounts of 3% to 7% on airline tickets, convenience of booking tickets over the phone and 40% discounts on overseas hotel rates. The American Express Bank India provides a wide range of cards like the American Express E-Credit Card, American Express Credit Card, American Express Gold Credit Card, American Express Card, American Express Gold Card, American Express Platinum Card, MTNL American Express Credit Card, India Today Group American Express Credit Card, Indian Airlines American Express Green Card, Indian Airlines American Express Gold Card, Indian Medical Association (IMA) American Express Credit Card for medical professionals and The Institute of Cost and Works Accountants of India (ICWAI) American Express Credit Card for Cost and Work accountants. • The other noteworthy services offered by the American Express Bank India are the issue of the American Express Travelers Cheques which is recognized globally and are safer to handle than cash. American Express Travelers Cheques are replaced worldwide within 24 hours in case of lost or theft. They are available in a variety of currencies like the Australian Dollar, Canadian Dollar, Euro, Japanese Yen, Saudi Riyal, South African Rand, Swiss Franc, Pound Sterling and US Dollar. • The American Express Bank India also provides personal banking services like Savings, Current and Term Deposit Accounts, Personal Loans and Investment Services. • The American Express Bank India with Tata Finance Limited has launched Tata Finance American Express Credit Card.
VISION, MISSION & OBJECTIVES VISION
To become the world's most respected service brand. .
MISSION
•
A logical extension of the Vision Statement is the Mission of the Bank, which is to gain market recognition in the chosen areas. To build sizeable markets share in each of the chosen areas of business through effective strategies in terms of pricing, product packaging and promoting the product in the market.
•
•
To promote confidence and commitment among the staff members, to address the expectations of the customers efficiently and handle technology banking with ease
OBJECTIVES
• • • • • Customer privacy Customer confidentiality Security of customer data Customer satisfaction Providing high quality services & products
PEOPLE BEHIND AMEX
American Express was founded in 1850 by Henry Wells, William Fargo, and John Butterfield as an express business. In 1882, American Express launched its money order business to compete with the US Post Office's money orders. This product quickly spread to Europe where no such financial product existed. Sometime between 1888 and 1890, J. C. Fargo took a trip to Europe and returned frustrated and infuriated. American Express India was established in 1921 providing high quality travel and financial services. American Express in India is the largest company to have wide network of travel locations in the country. American Express Travels has entered into a Memorandum of Understanding (MoU) with Department of Post to enable the designated Speed Post offices in distributing and encashing American Express Travelers Cheques. W. Richard Holmes has been elected chairman of American Express Bank, Ltd., (AEB) American Express Company's international banking subsidiary, based in New York. He adds this title to his current one of chief executive officer of AEB, a role he assumed in June, 2000. As chairman, he succeeds James Cracchiolo, who has stepped down as chairman of AEB to work full-time with the Company to complete the spinoff of American Express Financial Advisors (AEFA). William J. Blomquist, currently managing director and head of AEB's Financial Institutions Group, and Sergio J. Masvidal, currently managing director and head of AEB's Private Bank, were elected Vice Chairmen. Holmes, 52, became president and chief executive officer of AEB in 2000. He joined American Express in 1996 as managing Director and head of Worldwide Private Banking, leading that unit through a period of significant expansion. Holmes has more than 20 years experience in international banking, having served in various positions at Wells Fargo Bank and at Bank of America. From 1993 to 1996 he was an executive vice president and head of Bank of America's Private Bank. He
began his professional career with the accounting firm of Peat, Marwick & Mitchell in 1974. He holds a bachelor's degree in Economics from St. Johns College, Cambridge University in England in 1974 and a master's degree in economics, also from St. Johns. He is also a Fellow of the Institute of Chartered Accountants in England and Wales and co-chairman of the International Private Banking Council. William J. Blomquist, a 35-year veteran of American Express Bank, was appointed managing director and head of the Financial Institutions Group in 1995. He had been managing director and regional executive in charge of Europe, Middle East, and Africa, from 1990-1995. Prior to that, he held wide-ranging senior management roles in Switzerland, Asia, and the Middle East. Sergio Masvidal was appointed managing director and Head of the Global Private Bank, based in Miami, Florida, in 2000. He joined AEB in 1987 as general manager of American Express Bank International, the private banking arm of AEB. In 1992, he became president of AEBI and in 1996 he became Latin American region head for the Private Bank. He has more than 30 years of experience in the banking industry.
BOARD OF DIRECTORS
Daniel F. Akerson Managing Director, The Carlyle Group Charlene Barshefsky Senior International Partner, Wilmer Cutler Pickering Hale and Dorr LLP Ursula M. Burns Senior Corporate Vice President and President of Business Group Operations, Xerox Corporation Kenneth I. Chenault Chairman and Chief Executive Officer, American Express Company Peter Chernin President and COO, News Corporation Vernon E. Jordan Jr. Senior Managing Director, Lazard Freres & Co. LLC Jan Leschly Chairman and Chief Executive Officer, Care Capital LLC Richard C. Levin President, Yale University Richard A. McGinn Partner, RRE Ventures Edward D. Miller Former President and Chief Executive Officer, AXA Financial, Inc.
Frank P. Popoff Chairman, Chemical Financial Corporation Steven S Reinemund Former Chairman and Chief Executive Officer, PepsiCo, Inc. Robert D. Walter Chairman and Chief Executive Officer, Cardinal Health, Inc. Ronald A. Williams Chairman, Chief Executive Officer and President, Aetna, Inc
POLICIES
Some of the policies of AMEX are as following:
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.
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 noncompliance due to force majored 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.
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
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.
FUNCTIONAL AREAS
ORGANISATION CHART
AMERICAN EXPRESS INTERACTIVE
American Express Interactive (AXPi) drives online business strategies across the entire enterprise. This means being cohesively integrated into every business unit, merging service and marketing with leading-edge interactive technologies. Working with AXPi provides a broad view of our entire organization, as well as the competitive landscape. It keeps a sharp eye on external indicators and builds strong internal relationships that allow identifying and responding to all emerging opportunities. AXPi clearly impacts the bottom line of our global company, with accountability for developing new ideas and delivering on real results.
MARKETING
American Express is a premiere marketing company, known for sharp, savvy strategies. Here, it develops and champion a well-established brand built upon excellent product and service attributes. It manages product lifecycles from beginning to end, synthesizing information into actionable plans. It also develops an understanding of new product development, customer acquisition and loyalty, and partnership opportunities.
MARKETING BUSINESS UNITS
American Express Interactive (AXPi) Consumer Card Services Group (CCSG) Establishment Services (ES) Global Commercial Card (GCC) OPEN from American Express (OPEN) Global Network Services (GNS) International Consumer & Small Business Services (ICSS) Global Business Travel (GBT)
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: • • • 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 customer’s 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 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 ard products have a Code of Conduct for their dealings with prospective customers and Card members. The Bank shall have monitoring process in place to review the agent’s compliance to this code, at regular intervals.
COMPETITORS OF AMERICAN EXPRESS BANK Top Performing Public Sector Banks
1 Andhra Bank 2 State Bank of Mysore 3 Allahabad Bank 4 Vijaya Bank 5 Punjab National Bank
Top Performing Private Sector Banks
1 HDFC Bank 2 UTI Bank 3 ICICI Bank 4 Kotak Mahindra Bank 5 Centurion Bank of Punjab
Top Performing Foreign Banks
1 Citibank 2 Standard Chartered PLC 3 HSBC Bank 4 ABN AMRO Bank
CUSTOMER CARE
Customer Care, which is called Service Delivery Network (SDN), you will become familiar with our diverse customer base, their needs and expectations, and the industry-best products and services we provide. The work is about reengineering and optimizing processes for improved satisfaction and cost containment, as well as developing operational and network strategies for maximum efficiency. It's also about selling ideas, creating better solutions and responding to trends. Customer Care is opportunity to make decisions that impact millions of people around the world, take ownership for own success, and win for the customer at every occasion.
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 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 centers for customers to contact for information or queries on products, services and related subjects ? ? customers ? Receipt and satisfactory disposition of customer correspondences and complaints Timely dispatch of credit card statements Timely processing of payments received from credit card
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: • • materials • Voluntary termination of credit card facility Change of payment modes within types offered by the Bank Opting out from receipt of Bank’s marketing and promotional
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.
RISK & INFORMATION MANAGEMENT
In the financial services arena, the Risk, Information and Banking function is the backbone of our operations. The work is truly global and transcends all aspects of American Express, including consumer cards, small business services, corporate services, and our merchant partners. Here, it set the industry standard for managing risk associated with fraudulent activity, while also providing a strategic perspective, overseeing the customer information cycle, and leveraging technology in support of all business units. Because of this scope, Risk, Information and Banking is an ideal place to get an "end-to-end" understanding of the Company's core businesses and position yourself for future growth across various departments and geographies.
FINANCE
Finance at American Express plays an integral role in everything from new product development to corporate planning and reengineering. It is owner, guardian and analyst of information, making strategic, financial and operational decisions that impact customers, merchants and shareholders. Work may be focused on a specific business unit or corporate-wide initiatives, giving exposure to a variety of financial projects. Either way, work in Finance will make a lasting impact on global customer base, as it excel on a collaborative, cross-functional team with a mission to be the world's most respected service brand.
STRATEGIC PLANNING GROUP
What kind of company should American Express be in five years? That's the kind of far-reaching question we answer as a member of Strategic Planning Group (SPG). It serve as an internal consultant and incubator of innovative ideas, spearheading largescale strategy projects centered on growth opportunities, investment prospects, acquisition targets and other high-level initiatives. SPG provides an alternative to traditional consulting work, offering comparable challenges with a world-class company without the rigors of constant travel.
HUMAN RESOURCE MANAGEMENT
The Human Resources team at American Express works in true partnership with our business clients. It provides service and support throughout the full spectrum of the employee experience, from selection, hiring and orientation, to leadership development and talent management. It has the responsibility and opportunity to communicate messages about the company's global strategy, ensuring that our professionals are placed in roles and environments where they - and our business units - will thrive. In short, work will be all about the extraordinary people who make American Express one of the world's most recognized and respected brands.
TECHNOLOGIES
The goal of our Technologies organization is to extend a competitive advantage with capabilities that support increased customer spending, company revenue and net income. Work in this area; focus on developing strategies and solutions for delivering an enhanced customer experience to all American Express card members. It analyze business systems, investigate emerging technologies, and make effective recommendations that will help bring new products to the market faster, exceed business partner expectations, validate investment decisions, and sustain a flexible global organization.
SWOT ANALYSIS STRENGTHS
• • • • • • • • • Liberal economic system. Sound bank managements. Improved risk management. Diversity in bank funding activities. High systemic liquidity. Safety of depositors’ funds comes in priority. Wide spread developed banking culture. A healthy banking system. Banking secrecy laws.
WEAKNESS
• • • Government financing by banks out of acceptable standards. Very weak corporate governance. Limited branches.
OPPORTUNITIES
• • . Privatization creates ample opportunities for economic growth. Banking Over Borders – extension to regional countries.
THREATS
• • Presence of nationalized banks. Presence of foreign banks.
A STUDY ON THE CUSTOMER SATISFACTION LEVEL OBJECTIVE OF STUDY
Customer satisfaction level from present Amex Services and to know other services customers expecting from Amex Bank.
RESEARCH METHODOLOGY MARKETING RESEARCH AND ITS METHODOLOGY:
A. Though Interacting with the Clients of Amex Bank B. Qualitative Research D. Questionnaires E. Analysis and statistics
• • •
Statistics Analysing Data Surveys with Confidence
SCOPE OF REPORT
The scope of this report is limited up to services provided by Amex Bank not by other banks. These reports just show the level of customer satisfaction from Amex Services and at the same time new product which customer is expecting from Amex
DATA COLLECTION
• • • Through Clients of Amex Internet Magazines
LIMITATIONS
Each and every project report or research carried out has some limitations, be it times constraints or any other such issues that invariably, plagues the result. It is always important to indicate the limitations of the project carried out so the evaluator is in the position to evaluate out the project. Further it also helps the end users of the report to interpret the results in more valid and realistic manner. It has an advantage from the researchers stand point of giving ample confidence in the research conducted and the research presented. The project submitted would definitely suffer from some limitations were: • • • Time constraints Key personnel To reach every client
It is important to mention that it was difficult to catch hold of key personnel. Often the top rank officials did not have sufficient time to provide information they always seemed to have to attend some meetings or conferences.
SOME OTHER LIMITATIONS:
At the time of survey, I did not found fair response from various clients, because they cannot answer some of the question asked. So many times I got different response for same bank from different clients.
DATA ANALYSIS Table 1: Services availing from AMEX Bank
Attributes Saving/Current A/C
Remittances Draft facilities Foreign exchange services
No. of respondents Total 40
5 18 28
Percentage 80% 10% 36% 56% 46% 32%
50
50 50 50
Investment products
23
50
Other services
16
50
45 40 35 30 25 20 15 10 5 5 0 Saving/Current A/C Remittances Draft facilities Foreign exchange services Investment products Other services 18 40 28 23 16
Series1
Services availing from AMEX Bank
ANALYSIS
Maximum customers use saving/current A/C, Foreign exchange & Investment services. Some customers use Draft & other services l ike
financing. Few customers use remittance
services. Draft & financing services has higher charges and moreover AMEX has limited branches.
Table 2: Basis on which customers choose their bank
Attributes Quality of services Customer interaction Interest rate & services Convenience Others Total
No. of respondents 26 14 2 5 3 50
Percentage 52% 28% 4% 10% 6% 100%
Basis on which customers choose their bank
Convenience 10% Interest rate & services 4%
Others 6%
Customer interaction 28%
Quality of services 52%
Quality of services
Customer interaction
Interest rate & services
Convenience
Others
ANALYSIS
More than 50% customers choose their bank on the basis of quality of services. Customer interaction is also a strong base for choosing the bank for their services. AMEX Bank provides quality services to their customers.
Table 3: Customers satisfied with the services of AMEX Bank
Attributes Satisfied Not satisfied Total
No. of respondents 41 9 50
Percentage 82% 18% 100%
Customers satisfied with the services of AMEX Bank
Not satisfied 18%
Satisfied 82%
Satisfied
Not satisfied
ANALYSIS
This research was made on customer satisfaction of American Express bank. The Amex is one of those banks who serve its customers in the best way and also give due consideration to its customer service. Maximum clients who have their Corporate Accounts or individual Account with Amex are satisfied with its services. Amex provides all the modern services to its customer. But there are also few customers who are not satisfied or expect more services from the bank.
FINDINGS
• Demand draft facility which is a basic customer satisfying service is not available in many cities. • Some customers feel that customer satisfying services should be improved however such group of customers was very small. • • Few customers have confusion on charges that are charged on their accounts.
Maximum customers feel that the service & products provided by bank are very good & they are satisfied with it.
•
AMEX Bank provides quality services to their customers & customers choose bank on the basis of quality of services and customer interaction.
RECOMMENDATIONS
• Need to improve on customer satisfying services, like; Demand Draft facility should be available in all cities. • Need to improve on satisfying customer and handling their queries in a sound manner. • Need to clarify customer for the charges that are being charged on their account without clarification. • Need to have a stabilized banking staff to co-ordinate with customer from time to time.
COCLUSION
American Express Bank provides different types of products & services to customers. The main objective of Bank is customer satisfaction, privacy & confidentiality. It provides quality services to their customers. Customer interaction is also good in providing services. Maximum customers are satisfied with the services provided by the Bank. The Amex is one of those banks who serve its customers in the best way and also give due consideration to its customer service. Maximum clients who have their Corporate Accounts or individual Account with Amex are satisfied with its services. Amex provides all the modern services to its customer.
BIBLIOGRAPHY
Philip Kotler 7th edition Company Annual Report Employee database WEB SITES www.americanexpres.com www.google.com
ANNEXURES
MARKET RESEARCH FORM 1. • • • • 2. • • • • Name DesignationMobileE-mailName of Company: Address (H.O)Phone NoFaxWebsiteContact Person
3. Business Details: • • Description Brand Name (if any)
4. Business Turnover (Yearly) Rs….
5. Do you have any Group A/Cs? • • Yes No
If yes, please specify name ................................................................................................. 6. Services availing from AMEX as of now? • • • • • • Saving /Current A/C Remittances Draft Facilities Foreign Exchange Services Investment Products Any Other Services
7 On what basis do you choose your bank? . • • • • • Quality of service Customer Interaction Interest rate & Charges Convenience Others (………………………………………………..)
8. Is anything lacking in services? If yes please specify: …………………………………………………………………………… …………………………………………………………………………… 9. Are you satisfied with the services of Bank? • • YES NO
10. Would you like to give any Suggestion to Bank? If yes please specify: • …………………………………………………) • No Yes
(……………………………………………………………………………
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