HTML Preview Bank Product Analysis page number 1.
Jo
urnal of Investment and Management
2014; 3(1): 7-20
Published online January 30, 2014 (http://www.sciencepublishinggroup.com/j/jim)
doi: 10.11648/j.jim.20140301.12
A comparative analysis of deposit products in banking
industry: an opportunity for eastern bank Ltd.
Md. Ariful Islam
1
, Proshenjit Ghosh
2
1
BASIC Bank Limited, Khulna, Bangladesh
2
Brac Bank Ltd, Dhaka, Bangladesh
Email address:
[email protected] (Md. A. Islam), [email protected] (P. Ghosh)
To cite this article:
Md. Ariful Islam, Proshenjit Ghosh. A Comparative Analysis of Deposit Products in Banking Industry: An Opportunity for Eastern Bank
Ltd..
Journal of Investment and Management. Vol. 3, No. 1, 2014, pp. 7-20. doi: 10.11648/j.jim.20140301.12
Abstract:
Eastern Bank Limited (EBL) is a second generation commercial bank with urban banking focus. It is offering
various deposit account products under consumer banking. There are ample opportunities to explore and expand the
existing customer base. The end result would be an increase in revenues of the bank. This is an exploratory research where
a comparative analysis of the deposit products in banking industry has been executed and opportunities for Eastern Bank
Ltd. have been identified. Several analytical tools (Comparative Study, Strategic Group Mapping analysis, SWOT etc.) has
been used to analyze the findings. The researcher collected data from secondary sources. For the purpose of comparison,
two types of deposit products are taken into consideration, namely: Savings Account / Special Savings Accounts and Term
Deposit Accounts. After analyzing the existing product offering, market exploration and growth, EBL should offer some of
the term deposit products as well as savings products with its existing products. The costs associated with the products must
be considered and EBL should offer the products with significant intervals which would give the operators and sales team
ample scope and time to get used to the products. Amongst the options stated above, the products that can be offered are:
EBL Prepaid Savings Account; EBL Senior Citizen Account; EBL Privileged Account; EBL Millionaire Scheme; EBL
Children’s Education Savings Plan; EBL Holiday Plan/Wedding Plan; EBL Senior Citizen Deposit Scheme/Retirement
Deposit Scheme; EBL Interest First Scheme; EBL Home Deposit Plan.
Keywords:
Deposit, Interest, Savings, Service, Current, Scheme, Customer, Banking, Tenure, Fixed Deposit, Plan
1. Introduction
1.1.
Background of the Study
Eastern Bank Limited (EBL) is a second generation
commercial bank with 34 online branches across major
cities in Bangladesh and 830 full time employees till
December, 2008. It offers full range of commercial banking
products and services to the Corporate, SME and Consumer
segment. With urban banking focus, EBL is offering
various deposit account products like Savings A/c, Current
A/c, Interesting A/c, High Performance A/c, STD A/c, EBL
Repeat (FDR), EBL Confidence (Monthly Deposit Scheme)
and regular FDR. In order to help customer services, EBL
has established ATMs, Bills Pay Machines, Kiosks, and
Internet Banking etc. Unlike conventional branch banking,
all business operations are processed centrally at EBL. The
bank has set up a brand image attributable in part to its
policy of continuous customer service excellence,
innovative products and services and maximum technology
utilization. In the year 2008, the prime focus of the bank is
on consumer banking. There are ample opportunities to
explore and expand the existing customer base. The end
result would be an increase in revenues of the bank. So, it is
high time that the researcher come up with new deposit
products which would mobilize wealth from the mass in
order to be utilized for disbursing both long and short term
credit. Here, a competitive analysis of deposit products of
reputed Private Commercial Banks (PCB) has been done
and internal and external factors will be considered with a
view to find out some suitable new deposit products for
Eastern Bank Limited.
1.2. Objective of the Study
There are several objectives for conducting this study.
These are as follows:
To find out the existing deposit products offered in
leading Private Commercial Banks (PCBs) in