Transaction Banking of Standard Chartered Bank Bangladesh.
Part-1 INTRODUCTION 1.1 Origin of the Paper This report is an Internship Report prepared as a require ment for the completion of the MBA Program of the Depart ment of Finance & Banking , Green Universit y of Bangladesh. The pri mar y goal of internship is to provide an on the job exposure to the student and an opportunit y for translation of theoretical conceptions in real life situation. Students are placed in enterprises, organizations, research institutions as well as development projects. The program covers a period of 3 months of organizational attachment. The placed in the Transaction Banking of the Bank, under the direct supervision of Mirza Aminur Rahmah , the head Transaction Banking of Standard Chartered Bank Bangladesh. 1.2 Scope: The scope of this report is li mited to the overall descriptions of the bank, its services, its position in the industr y, and its competitive advantage. The scope is also defined by the organizational set-up, functions, and performances. 1.3 Methodology & Source of Information In the organization part, much infor mation has been collected from different published articles, journals, brochures, web sites and previous internship report. All the infor mation incorporated in this report has been collected both from the primar y sources and as well as from the secondar y sources.
Primary Source of Information • Discussion with officials of SCB •
Face to face and telephone conversations with customers
•
Data from the company’s documents and SCB’s computerized information s yste m
Secondary Sources of Data • Previous reports and journals relevant to the banking industr y •
Other published documents of Bangladesh Bank
•
Relevant SCB paper and published documents
1.4 Limitations: Past and present financial infor mation that are confidential could not be accuratel y obtained. Alike all other banking institutions, SCB is also ver y conservative and strict in providing financial information. In such cases, I have relied upon certain assumptions, which are onl y amateur estimates. As many of the anal ysis on the obtained data are based on my sole interpretation, there ma y be some biases, as lack of knowledge and depth of understanding might have hindered my abilit y to produce an absolutel y authentic and meaningful report. Time constraint was another limitation restricting this report to be a more detailed and anal ytical one. The supervisors are bus y all the time and it was reall y difficult to get hold of some of their ti me. 1.5 Banking Industry-Overview The Banking Industr y is Bangladesh is one characterized by strict regulations and monitoring from the central governing body, the Bangladesh Bank. The chief concern is that currentl y there are far too many banks for the market to sustain. As a result, the market will onl y accommodate onl y those banks that can transpire as the most competitive and profitable ones in the future. Currentl y, the major financial institutions under the banking s yste m include: •
Bangladesh Bank
•
Comme rcial Banks
•
Isla mic Banks
•
Leasing Companies
•
Finance Companies
Of these, there are four nationalized comme rcial banks (NCB), 5 specialized banks, 11 foreign banks, 26 domestic private banks and 4 Islamic Banks currentl y operating in Bangladesh. Scheduled Banks in Bangladesh PC B 54%
FCB 20%
NCB 8%
Islamic 8%
Spe cializ e d 10%
Figure: 1 All local banks must maintain a 4% Cash Reserve Requirement (CRR), which is non-interest bearing and a 16% Secondar y Liquidit y Require ment (SLR). With the liberalization of markets, competition among the banking products and financial services seems to be growing more intense each da y. In addition, the banking products offered in Bangladesh are fairl y homogeneous in nature due to the tight regulations imposed by the central bank. Competing through differentiation is increasingl y difficult and other banks quickl y duplicate any innovative banking service. PART- 2 STANDARD CHARTERED BANK 2.1
Ethics Of Standard Chartered Bank
Standard Chartered reputation is critical to being the world's leading emerging markets bank. The preservation and enhance ment of that reputation depends upon our businesses operating to the highest standards of ethical conduct. We face a particular challenge to uphold consistent standards of conduct while at the same ti me respecting the culture and var ying business customs of all the countries in which we operate. The principles that govern the behaviour of our business and e mploye es are reflected in a Group Code of Conduct. The Group Code of Conduct is a practical working document which guides employee s through the many difficult conduct issues which confront them on a dail y basis. Compl yi ng with each ele ment of the Code will not alwa ys be eas y but we recognize that we will be judged not just by
what is set out in the Code but on how this is reflected in our da y to da y activities and the behaviour of all of you. 2.2
Standard Chartered Bank in Bangladesh
The Chartered Bank started operating in Bangladesh in 1948, opening a branch in Chittagong.
The
branch
was
opened
mainl y
to
facilitate
reestablishment and expansion of South and Southeast Asia.
the
post-war
The Chartered Bank
opened another branch in Dhaka in 1966, where it is still headquartered. After the merger of the Chartered Bank with the Standard Bank in 1969, the Standard Chartered Bank took up a program of expansion.
It increasingl y invested in
people; technology and pre mises as its business grew in relation to the countr y's economy.
In 1993, there was an organizational re-structuring, which led to a
substantial expansion of the Bank's business. Bangladesh BD 2.3 Performance and Grow th The change in strategy, perfor mance and growth, adapted by Standard Chartered Bank is clearl y evident in the following comparison between its performance in 1995 to that in 2002. Figure 2 Revenue Mix in 2002
Revenue Mix in 1995 Trade 34%
Lending 35% Sales 6%
Trading 7%
Trade 24%
Cash 14% Trading 4%
Lending 16%
Cash 13%
B/S Manage ment 5%
DCM 2% Structure Products 2%
1995 Lack of revenue momentum Over layered organization Weak risk control environment Basic product offering- vanilla product High cost structure
Sales 16%
B/S Manage m ent 22%
2002 Revenue driven target/goal Revenue diversification & sustainability Strong risk management culture in place Higher value-added , customized product Cost efficiency
All the foreign banks combined hold 9% in deposits as compared to 29% by private comme rcial banks and 62% by nationalized comme rcial banks. The comparative performance (holding market share) of Standard Chartered
Total Deposits in FCBs CITIBANK Others 5% 10%
SCB 40%
AMEX 20% HSBC 12%
CAI 13%
Bank in ter ms of deposit and advance are presented separatel y in the
following
figures: Figure 3- Source: Scheduled Bank Statistics, Bangladesh Bank, Oct-Dec 2002 From the above figure we see that of the 9% held by foreign banks in total deposits, SCB alone commands 40% of the deposits.
Advances made by FCBs CITIBANK 20%
AMEX 11%
OTHERS 6%
HSBC 13%
SCB 35%
CAI 15%
Figure 4- Source: Scheduled Bank Statistics, Bangladesh Bank, Oct- Dec 2002 In terms of advances made, Standard Chartered Bank holds the leading position a mong the foreign banks with a market share of approximatel y 35%. 2.4 Activities of Standard Chartered Bank •
Corporate Banking Group
Standard Chartered Bank offers it local customer ’s wide variet y of financial services. All the accounts of corporate clients, which mainl y comprises the top local and multinational companies operating in Bangladesh, are assigned to Relationship ma nagers who maintain regular and close contact to cater top their needs.
The objective of this depart ment is to maintain a thorough knowledge of the clients’ business and to develop positive relations with the m. This is maintained through interactions to offer timel y advice in a n increasingl y competitive business environment. The expertise of the Institutional Banking and Treasur y groups is also available whenever required. The unique Offshore Banking Unit (OBU) in Savar provides a full range of facilities to overseas investors. The Corporate Banking Group in Bangladesh has displa ye d a spirit of communit y involvement by working with NGOs to underwrite soft loans. Standard Chartered offers its corporate customers a wide variet y of lending needs that are catered with skilled and responsive attention. The y provide project finance and investment consultanc y, s yndicated loans, bonds and guarantees and local and international treasur y products. •
Trade finance
The trade finance of standard Chartered bank takes care of the commer cial activit y related issues, particularl y those related to import and export finance services. Some of the services are: •
Trade finance facilities including counseling, confir ming export L/C and issuing of import L/Cs, backed by its international branch and correspondent loan network.
•
Bond and Guarantees
•
Project finance opportunities for import substitution and export oriented projects
•
Treasury
The foreign exchange and mone y market operation of the Standard Chartered Bank in the world is extensive. Exotic currencies happen to be one of its special areas of strength. A 24-hr service is provided to customers in Bangladesh through the Bank’s network of dealing centers placed in the principal areas of the world. The Bank’s treasur y specializes in offering solutions to those who wish to manage interest rate and currenc y exposure s that result from trade, investment and financing activities of other dyna mi c economies of the region. •
Institutional Banking Group
The IBG of Standard Chartered Bank offers a wide variet y of products and services to banks and financial institutions. It has global links with leading bank institutions and agenc y arrange ments through its network of offices in 40 countries. The Bank offers a full range of clearing, pa yment collection and i mport-export
handling services. The bank offers foreign missions, voluntar y organizations, consultants, airlines, shipping lines and their personnel, the following services: Current accounts in both Taka and other major foreign currencies and Convertible Taka accounts. •
Consumer Banking
Superior retail banking services comprising of a wide range of deposit and loan products are offered by Standard Chartered Bank to its individual customers. The consumer banking division constantl y faces challenges and meets them by developing new products and services to fulfill the specific requirements of local TU. The Bank offers a 24-hour service in Bangladesh through its Mone y- link ATM Network and Phone-link Phone banking Services. •
Custodial services: The Equator
Headquartered in Singapore, Standard Chartered equator fulfils the groups’ strategic commi t me nt to the provision of custodial service in Asia. The equator's customers are primaril y foreign global custodians and broker/dealers requiring cross-border infor mation as well as sub-custodian services. Standard Chartered Bank, Bangladesh is responsible for the planning in Bangladesh, but the overall manage me nt of the custody business is based in Equator's international business strategy. SUPPORT SERVICES •
Operations
Operations are the part of the support division that helps to run the businesses of the bank in a smooth and controlled manner.
Since it helps mainl y in processing
the works of the business units, any mistakes made can be easil y detected and on time. Following are the main functions of the operations depart ment: Central operations deals with the closing and opening of accounts and other pa yme nt and account related processing of the Personal Banking division. Treasur y operations help to deal with the processing works of the treasur y division. Loan Administration Unit (LAU) deals with the processing of the Corporate Banking division. Operations also have a department that deals with internal projects that arises from the need to deal with certain proble ms or to make certain changes. Following are some examples of projects being dealt with presentl y:
• Finance, Administration and Risk Management The support depart ment performs the following activities: •
Administration, audit and back office operation
•
Taking care of taxation and financial control of the Bank
•
Keeping track of overall credit operation
• Information Technology Center This department is instrumental in the running of all the computerized operations of the bank.
The y help in the i mplementation and generation of computerized
reports. Another dut y of the department is to maintain communication with the rest of the world. • Human Resource Depart ment This department ma nages recruitment, training and career progression plan. Standard Chartered Bank highlights the importance of developing its people to create a culture of customer service, innovation, teamwork and professional excellence. • Legal and compliance In the UK, Standard Chartered Bank is regulated by the Bank of England, while in Bangladesh local banking laws regulate it and rules set by the Ministr y of Finance and Bangladesh Bank. The local restriction involves a licence from Bangladesh Bank to operate banking business in Bangladesh. complies by the rules and regulations seriousl y.
Standard Chartered Bank
It also encourages its staff to
conform to an internal culture of ethical behavior and sensitivities to the culture and religion of the countr y.
There is a mandator y training on Company Code of
Conduct for all staff me mbers. Some of the ke y areas that the Legal & Compliance department has to take care of are: any kind of legal issues, to advise the CEO regarding all matters and the manage me nt on legal and regulator y issues, correspond regulator y compliance issues to MESA Regional Head of Compliance, and supervise internal control (e.g. internal audit). •
External Affairs
This department deals with advertising, public relations, promotions, partial marketing which involves disseminating new products and services to customers and above all ensuring service qualit y.
•
Credit
The credit department approves the loans of Corporate Banking division. The approval is mainl y based on the risk anal ys is of the corporate clients done by the Corporate Banking division. P A R T -3 CLIENT RELATIONSHIPS PRODUCTS Client relationships provides transaction banking, cash manage ment, custody and trade finance services through their strong market networks in Asia, Africa, the Middle East and Latin America. The y provide a bridge to these markets for clients from the U.S and Europe. The services provided are integrated, superior crossborder and local services that enable efficient transaction processing, with reliable financial information. 3.1 Transaction Banking Cash Management Service The cash ma nagement service provides total solutions to improve cash flows. Standard Chartered is highl y recognized as a leading cash ma nagement supplier across the emerging markets. Cash Manage ment Services cover local and cross border pa yments, collections, infor mation manage me nt, account services and liquidit y ma nagement for both corporate and institutional customers. With Standard Chartered's Cash Manage ment Services, customers alwa ys know where their mone y is. Customers can manage their company's total financial position right from their desktop computer. The y will also be able to take advantage of SCB’s outstanding range of pa yment, collection, liquidit y and invest ment services and receive reports detailing when and where cash has been moving.
Clearing Services
With increasing business globalization, your banking network ma y not have sufficient reach. You ma y not want to put in the extra infrastructure or resources to expand your network but still want to ensure your clients’ transactions are serviced efficientl y. Clearing is one of the important services in which your bank would need support to facilitate your clients’ s mooth international trade and cross-border transactions.
3.2 Transaction Standard Chartered possesses 140 yea rs of experience in Trade Finance. SCB’s broad international customer base, professional insight and knowledge of the risks and rewards of international trade earned the bank a unique position in the industr y. The bank offers world-class support across the worldwide buyer chain to minimize overall cost, maxi mi ze buye r base, and shorten administrative processes. To enable customers to capture global opportunities, it has a presence in over 40 countries, in addition to the extensive network of overseas banking partners and correspondents. Standard Chartered has a wide arra y of financing tools to ease your cash flow burden and help you grow your business. •
Receivables Services
It gives you the financial securit y to explore new markets overseas or grow your business locall y, reducing your risk and cost.
Import Services
Instead of pa yi ng for your i mports immediatel y, Standard Chartered is able to offer you import financing, to finance a drawing under an I mport Letter of Credit or I mport Bill for Collection, giving you time for the goods to be cleared and resold.
Export Services
Do you need extra cash for manufacturing or purchasing the goods to fulfill your export order? Do you want to turn the goods into cash as soon as you have them shipped out? Standard Chartered offers you the opportunit y to obtain pre-shipment and post-shipment financing. You can now trade with the added confidence of our financial help. 3.3
CUSTODY
Standard Chartered Custody and Clearing Services' combination of local market expertise, with the securit y offered by being an integral part of one of the world's leading international banks has garnered an i mpressive client base which includes leading North American, European and Asian institutions. Standard Chartered keeps its custody and clearing clients regularl y infor med of developments relating to securities market infrastructure and custody in Asia through a market infor mation website. This infor mation is available to clients with a registered login name and password. Clients are offered a customized and comprehensive range of products and services, which include:
-
Custodial services
-
Brokerage, clearing and settlement services
-
Securities lending
-
Foreign Exchange
-
Transfer agent for institutional debt and equit y offerings
-
Deliver y,
receipt,
settlement,
registration
and
phys ical
safe
custody
of
securities 3.4
L E N D IN G
To support the local and international business, Standard Chartered offers various services to help with: -
Loan Structure and Syndication
-
Loan facilities.

Loan Structure and Syndication
Our leadership in loan s yndication stems from abilit y to forge strong relationships not onl y with borrowers but also with bank investors. Because we understand our s yndicate partners' asset criteria, we help borrowers meet substantial financing needs by enabling the m to reach the banks most interested in lending to their particular industr y, geographic location and structure through s yndicated debt offerings. Our s yndication capabilities are complemented by our own capital strength and by industr y teams who bring specialized knowledge to the structure of a transaction. 
Loan facilities
To enhance the abilit y to meet financial obligations and operate effectivel y, SCB offers assistance in the form of working capital loans, overdrafts, ter m loans (including real estate loans and other secured debt), backstops and revolvers. SCB works closel y with clients to understand the dyna mics of the business so that the bank can anticipate and serve short-ter m and long-term funding needs in the most efficient manner, drawing from the full range of global resources and capabilities. Modern banking operations touch al most ever y sphere of economic activit y. Bank credit is a catal ys t for bringing about economic development. Without adequate finance there can be no growth or maintenance of a stable output. There are some standard loan facilities provided by the corporate division of Standard Chartered. These are: -
Seasonal Loan
-
Ter m Loan
-
Permanent Working Capital Loan (Asset-based Lending)
SEASONAL LOANA seasonal loan is generall y defined as a short term, self-liquidating loan. Which means that the funds advanced on a short-ter m basis are repaid in full when the assets purchased by the funds are converted to cash.
Overdraft, I mport Loan,
Export Loan, L/C (Machiner y), L/C (Raw Materials) , Guarantees etc. are seasonal loans provided by the local corporate division to different customers. OVERDRAFTS An overdraft facilit y is a revolving borrowing facilit y repa yable on demand, made available concerning a current account. Where permitted by law, a customer can overdraw his current account when any entr y is debited to the account for more than the available credit balances on overdraw. Once the limit is utilized, interest will be charged on outstanding utilization on a dail y basis. Overdrafts are flexible for borrowing intended to finance da y to da y cash flow requirements generated to nor mal business activit y. The y are not intended for the financing of long ter m borrowing requirements for which more appropriate credit lines are available. Overdraft facilities are uncommi tted. The bank has the right to cancel the facilit y and de mand repa yment without prior written notice to the customer. The t ypical tenor of an overdraft is one da y. However, the Bank ma y agree to make overdraft facilities available for longer periods ( maximum one yea r), with annual review/renewal and subject to the Bank’s discretion to suspend/cancel the facilit y. Letter of Credit (LC ) When any company needs to import raw materials from abroad then L/C is required. Because the y are unknown to foreign supplier. The Importer Company must open L/C in any bank. Then the bank will contact with other bank, which is situated in supplier countr y. When the bank give financial guarantees to foreign bank through L/C application the foreign bank supplier will send raw material within a ti me period. Our bank will charge a specific amount for L/C, which is non-funded financing. L/C is not onl y for i mport but also for local transaction. When any company collect raw material from local supplier on credit then L/C is required.
Revolving Loan (RL) Revolving Loan is a contract between a borrower and Standard Chartered Bank (SCB) whereby SCB provides the borrower with a certain a mount of currenc y, for a period more than one yea r and up to 5 ye ars. SCB gives the facilit y of loan to buy the raw material or other trade related products at a specific interest rate. When a manufacturing company does not have the working capital to bear the operating cost, the y can collect this mone y from SCB at a specific interest rate to be repaid after 90/120/150 da ys . And it will be treated as Revolving Loan.
Loan Against Trust Receipt (LATR) Advances allowed for retire ment of shipping documents and release of goods i mported through L/C falls under this head. The goods are handed over to the i mporter under trust with the arrangement that sale proceeds should be deposited to liquidate the advances within i mport and known as post- import finance and falls under the categor y “ Comme rcial Lending”. Guarantee According to the contract act 1872, Guarantee can be defined as a contract to perfor m the promise or discharge of liabilit y of a third person in case of his default. The person in respite, of whose default the guarantee is given is called principal debtor and the person to whom the guarantee is given is called the creditor.
It
is
an
irrevocable
undertaking
to
pa y
in
case
of
certain
eventuall y/ contingenc y. 2.5
SWOT Analysis of Standard Chartered Bank
The SWOT anal ysis comprises of the organization’s internal strength and weaknesses and external opportunities and threats. SWOT anal ys is gives an organization an insight of what the y can do in future and how the y can compete with their existing competitors. Strengths:
For more than 55 yea rs in Bangladesh, SCB is known to bear the Banking Experience that provides it the strength of being the market leader in the foreign banking sector. Unlike any other multinational bank in Bangladesh,
the long-ter m success of SCB is attributed to this strength of SCB whereas the long-term success of a bank heavil y depends on its reputation while dealing with ver y sensitive commodit y like mone y. •
The first bank in Bangladesh to issue Mone y link (ATM) card is SCB. By grabbing the opportunit y that exists in the market SCB, as the market leader, showed the most substantial corporate strength a mong the foreign banks.
•
SCB has a bulk of qualified, experienced and dedicated human resources.
•
SCB is the onl y one a mong the foreign banks that has been able to utilize its extensive marketing efforts in order to capture a wide customer base at a ver y short time.
•
SCB’s dedication is supreme in providing the best phone banking services in town. It is also keen to provide unmatched and instant 24 hour banking service and has recentl y opened the Call Centre at Lotus Kamal Tower in Nikunjo, Dhaka.
•
In order to exude innovativeness and creativeness, SCB tries its best to come up with customers’ banking proble ms and solve the m. Another recent step taken by the m is starting the Evening Banking service, which will be open from 6 pm to 8 pm in the evening. The customer, who has to keep his transactions stopped for 18 hours until the next banking hour arrives, will be benefited, as this will reduce the lag and hassle associated with it.
Weaknesses: •
Banks, who are offering better prospects, now enjoys customers switching to them as SCB offers low deposit rates and has set the minimum balances too high. Further more, long waiting cues, moderate customer service, nonfunctioning ATM machines and outrageousl y high charges lead to SCB being noted for these weaknesses as well. As a result, a large amount of customers have ceased transactions with the bank. Many customers’ accounts have become overdrawn due to fees that have been charged by the bank’s computer s ys tem for as long as three yea rs because the y have either si mpl y
not cared to close their accounts, or thought that the y have been closed automaticall y. •
The banking industr y is now experiencing the contractual employme nt fever that has started up and SCB has also fallen pre y to it. Self-interest of the e mploye es
are
actuall y
hindering
their
perfor mance
because
SCB
is
e mploying individuals from other agencies and giving them tough targets to reach and thereby not giving them the full benefits of a permanent employe e. For exa mple, many accounts are opened by Direct Sales Executives by luring customers with loans, which the y ultimatel y do not receive, and also opening accounts for customers who can hardl y maintain the account and do not even pa y the mini mum opening amount. Even though SCB is getting benefited in the short run, the i mplications are long run losses. •
During the last 10 ye ars the banking industr y has become considerabl y monopolistic and hence SCB is starting to lose its market share to its rivals due to low barriers to entr y, and the local banks’ increasing aggressiveness
•
SCB is also facing problem in its s yste m of collection and disburse ment of cash. Many customers do not bear the proper knowledge as to the process of depositing and withdrawing mone y. The bank does not take many steps to assist the m either. The s ys tem of withdrawal and deposit ma y be new and different from the s ys tem the customers have come across at local bank. Many of these customers or people the y send to the bank on their behalf are not educated and hence the y face difficult y in the s ys te m of deposit or withdrawal. For instance, since the s yste m of deposit is not that vivid, customer often drop the counterfoil of the deposit slip with the main copy into the slip box. Consequentl y, in man y such cases it happened that a s mart clerk picked up both the papers and took the mone y. Then there were no documents left for the bank or the customer to prove that he/she deposited the mone y.
•
Because the wa y SCB makes charges to accounts cannot be properl y explained, many customers believe and complain about the unethical banking of SCB.
•
While dealing with its customers- especiall y in Consumer Banking, SCB e mphasizes more on short-term profits than focusing on the maintenance of a
long-term healthy relationship with them. This suffering of SCB from myopi a- i.e. shortsightedness leads it to pursue strategies in such a myopi c manner, and so in the long run, it ma y undergo severe losses. Another weakness of the bank that can be sighted as well is Poor coordination and communication between the head office and branches. As the head office undertakes ma ny projects, the activities are ha mpered due to some activities of the branches. Even after the head office’s carefull y thought out action plan for a project, the y still face proble ms in executing because the branches are not well aware of such a project and therefore, their actions do not compl y with what is required for the ultimate success of the project. Opportunities: •
Standard Chartered Bank was approved of the permission to start Islami Banking from The Government of Bangladesh. The bank now has a whole new prospect opening up and also the opportunit y to introduce a wide arra y of Islami Banking products. It also has the prospect of expanding its customer
base.
The
countr y’s
growing
population
is
graduall y
and
increasingl y learning to adapt to and use the banking service. As the bulk of our population is middle class, and Muslim, different types of Islami Banking products will have a ver y large and easil y pregnable market. •
SCB has rigorous credit screening polic y and it is over conservative. By freeing their credit screening polic y a little, the y ma y be able to pursue man y opportunist business ventures. SCB also has a good consumer base that maintains several accounts at once. SCB has the opportunit y to keep these customers by reducing its current fees and charges and positioning attractivel y in middle class segment.
•
More Branches around Dhaka speciall y and all over Bangladesh will enable SCB to capture more market share, and hold a stronger competition against local banks.
•
By offering more attractive interest rates, and lowering the minimum balances eligible for interest, the bank can attract a lot of the old customers who have strewn awa y to other banks as well as new customers.
Threats: •
Increased competition by other foreign banks is a threat to SCB. At present HSBC and CITI Corp are posing significant threats to SCB regarding retail
and business banking respectivel y. Furthermore, the new comers in private sector such as Prime Bank, Dutch Bangla Bank, EXIM Bank, BRAC Bank, Southeast Bank, Mercantile Bank, Social Invest ment Bank, Islami Bank and Bank Asia are also coming up with ver y competitive products. With customers shifting to these banks, SCB’s profits, as well as market share is falling, and it faces the threat of being wiped out by competition. •
In toda y’s economy, substantial amount of savings is re maining idle. Currentl y foreign direct invest ment in the countr y is ver y low. These economic situations of the countr y indicate political threats.
A DESCRIPTIVE ANALYSIS OF TRANSACTION BANKING 4.1 Introduction As part of Standard Chartered's global transaction solutions to Corporate and Institutions, we provide Cash Management, Securities Services and Trade Services through our strong market networks in Asia, Africa, the Middle East and Latin America. We also provide a bridge to these markets for clients from the U.S and Europe. The y are committed to providing you with •
Integrated, superior cross-border and local services
•
Efficient transaction processing
•
Reliable financial information
•
Innovative products
•
World-class clearing services
Thus ensuring a full suite of transactional products for your needs. It’s Cash Management
Services
cover
local
and
cross
border
Pa yments,
Collections,
Infor mation Management, Account Services and Liquidit y Management for both corporate and institutional customers. 4.2 Cash Management Services: Cash Management for Corporations: Collections Services Comprehensive receivables manage ment solutionStandard Chartered understands that operating and sustaining a profitable business these da ys is extremel y tough. In an environment of constant changes and uncertainties, most businesses face challenges of costs and efficienc y. Ke y concerns include:
Receivables Manage ment – ensuring receivables are collected in an efficient and timel y manner to optimize utilization of funds. Risk Manage ment – ensuring effective manage me nt of debtors to eli minate risk of returns and losses caused by defaulters and dela ye d pa yme nts. Inventor y Management - ensuring efficient and quick turnaround of inventor y to maxi mi ze returns. Cost Management – reducing interest costs through opti mal utilization of funds.
Our Solution The Standard Chartered Collections Solution leverages the Bank’s extensive regional knowledge and widespread branch network across our ke y markets to speciall y tailor solutions for your regional and local collection needs. This Collections Solution, delivered through a standardized international platfor m, has the flexibilit y to cater to your local needs, thus enabling you to meet your objectives of reducing costs and increasing efficienc y and profitabilit y through better receivables and risk manage ment. The ke y components of our solution include the following: Extensive Clearing Network Guaranteed Credit Comprehensive MIS Syste m Integration Outsourcing of Collection Liquidity Management Solutions for efficient ma nagement of your funds A corporate treasurer’s main challenge often revolves round ensuring that the company’s cash resources are utilised to its maxi mum advantage. You need a partner bank that can help you: Maximise interest income on surplus balances; minimise interest expense on deficit balances for domestic, regional and global accounts Mini mise FX conversion for cross-currenc y cash concentration Customise liquidit y ma nagement solutions for different entities in different countries Centralise information ma nagement of consolidated account balances Our Solution With our global experience and on-the-ground market knowledge, Standard Chartered will help you define an overall cash manage ment strategy which
incorporates a liquidit y manage ment solution that best meets your needs. Click here for an illustration of our propositions. Key Features Based on your needs and the regulator y environment that you are in, you can choose any of the following features: Physical Sweeping Notional Pooling Interest Reallocation Invest ment Payments Services Global pa yme nts solution for efficient transaction processing Looking to outsource your pa yme nts to enable: 4
Efficient processing of all your pa ya bles in the most cost effective wa y
5
Straight through processing both at your end as well as your bank's back-end
6
Efficient pa ya bles reconciliation with mi nimal effort and dela y
7
Quick approval of pa yme nt s from any location
8
Mini mum hindrance to automation due to local language difficulties
Centralized ma nagement of pa yables across departments, subsidiaries and countries Our Solution Standard Chartered's Straight Through Services (STS) Pa yments Solution can be tailored to the different pa yme nt needs of companies, whatever industr y, size or countr y you ma y be in. With a comprehensive End-to-end Pa yment Processing Cycl e, STS allows companies to process a variet y of pa yment t ypes, whether the y be domestic or international, local or central in different countries, all in a single s yste m file. To realise the benefits of STS, please contact your local Relationship Manager or Cash Management representative. Cash Management for Financial Institution: Clearing Services Making the right connections for financial institutionsWith increasing business globalization, your banking network ma y not have sufficient reach. You ma y not want to put in the extra infrastructure or resources to expand your network but still want to ensure your clients’ transactions are serviced efficientl y. Clearing is one of the important services in which your bank would need support to facilitate your clients’ s mooth international trade and cross-border transactions.
It’s Solution Standard Chartered’s international network and multi-currenc y capabilities are well placed to provide you with a sea mless service for all your clearing require ments worldwide. Our network extends across Africa, the Middle East, South Asia, Latin America, the USA and the UK. You can count on our over 150 yea rs of on-theground experience to tailor a clearing solution that me ets your needs. Standard Chartered is a correspondent banking partner you can trust to make this potentiall y complicated process much easier for you. Click here to view our international network. Standard Chartered offers “Best in Class” technology and processes in our clearing services wherever you are, in whichever countr y you do business and in whatever currenc y: Emerging Markets - Asia-Pacific, South Asia, the Middle East and Africa USD Euro - includes Sterling We tailor clearing solutions to address your specific needs whether in one or multiple countries, or to complement our other services. Continuous Linked Settlement Continuous Linked Settlement (CLS) is the new private sector response to increasing
regulator y
pressure
to
reduce
foreign
exchange
settlement
risk
exposures. The initiative has been live since the end of 2002 and is endorsed by the G10 central banks and lead regulators. The pri mar y objectives of CLS are to eli minate the inherent settle ment risk from the current foreign currenc y settlement processes and to provide a mechanism for containing any s yste mi c risk arising from the failure of a major market participant. Standard Chartered at the forefrontStandard Chartered Bank has been deepl y committed to this industr y initiative since its inception in 1997 and holds full shareholder status in the new Bank. Standard Chartered operates as a full Settlement Me mber within CLSB and extends comprehensive Third Part y services to our customers, enabling them to take full advantage of the settlement risk benefits associated with FX settlement through CLS.
With Standard Chartered’s Cash Management services, you’ll alwa ys know your exact financial position. You have the flexibilit y to ma nage your company’s complete financial position directl y from your computer workstation. You will also be able to take advantage of our outstanding range of Pa yme nts, Collections, Liquidit y and Investment Services and receive comprehensive reports detailing your transactions. With Standard Chartered, you have ever ything it takes to manage your cash flow more accuratel y. Standard Chartered, established since 1948, is highl y reputable in providing flexible and innovative financial services solutions. We adopt a proactive approach in tailoring customised packages to me et our customers' ever-changing needs. We appl y state-of-the-art technology to automate our dail y operations and electronic deliver y s yste m has been put in place to ensure that transactions are handled swiftl y and efficientl y. Our dedicated Customer Service Centers are staffed with experienced Cash Products Specialists to ensure that all our customers are well served. Standard Chartered full y understands the i mportance of ti me, convenience and efficienc y to the success of your business. We make eas y the complex financial world for you and help you ma ximise ever y opportunit y. With over 140 yea rs of experience in trade finance and an extensive international branch network, Standard Chartered is commi tted to help you succeed in ever y competitive environment. To keep pace with your changing needs, we constantl y review our comprehensive products and services, ensuring that a full range of flexible and innovative services is alwa ys available for you wherever you trade. Standard Chartered is highl y recognized as a leading cash ma nagement supplier across the emerging markets. Our Cash Manage ment Services cover local and cross border pa yments, collections, infor mation manage me nt, account services and liquidit y ma nagement for both corporate and institutional customers. They can help you: •
manage the availabilit y of your funds efficientl y
•
monitor and control the movement of funds
•
settle pa yme nts to your suppliers in a ti mel y and cost-effective manner.
•
capture ever y invest ment opportunit y to increase your income
4.3 Accounts Services
In Bangladesh, Standard Chartered customers have access to a 18-branch, 6-cit y, 25-ATM banking network. Customers can operate their accounts through any of our full y
automated
offices
in
Dhaka,
Chittagong,
Syl het,
Bogra,
Khulna
and
Nara yanganj. The y can perfor m Cash deposits and withdrawals, Cheque Deposits, Fund Transfers, make transactional queries, give cheque book requisitions, ask for account statement and pa y utilit y bills. At Standard Chartered, we provide a wide range of account services for our Corporate Customers. Our Corporate Accounts are managed by dedicated Account Relationship Managers, who maintain regular and close contact with our clients in order to understand their require ments and service the m better. We offer the following types of accounts to our corporate clients:
•
Current Accounts— These are checking Taka accounts through which funds can be freel y deposited and withdrawn. Corporates t ypicall y use them for most of their transactional requirements which includes collections as well as pa yme nt s. Collections ma y be in the for m of cash, cheques, pa y- orders/de mand drafts and even inward remittances from abroad. Similarl y, pa yme nt s ma y be in the for m of cash, cheques and other available mechanis ms.
•
Short Term Deposits (STD)— These are similar to current accounts in operation accept that the y do not have checking facilities and the y earn interest, which is calculated on a dail y balance basis and credited at periodic intervals. The STD account is a useful mechanis m to earn interest on idle funds for companies that can not commi t fund for longer period of ti mes in Fixed Deposits.
•
Fixed Deposit Accounts— Fixed Deposits are for var ying tenors; current offerings range from 1 month to 5 yea rs and the interest rate also var y correspondingl y.
Fixed deposit accounts can not be used for transactional
purposes and interest can onl y be earned upon the maturit y of the deposit. •
Savings Accounts— These accounts are mainl y aimed at the individual and are usuall y offered for corporate employee s. However, Corporate Provident Fund accounts, Gratuit y Funds, etc. can also use such accounts, providing statutor y appropriate approvals are held.
•
Convertible Accounts— The Convertible Account is a checking current account with balances denominated in Taka. Pa yme nt s or withdrawals from this account can be ma de in both Taka and Foreign Currencies; however funds deposited must have a foreign currenc y source. Strict Exchange Control Regulations govern the opening and operation of Convertible Accounts and it is advisable to discuss these in detail with the Bank before opening such accounts.
•
Foreign Currency Accounts— In addition to the various local currenc y accounts, there are two t ypes of Foreign Currenc y accounts available: a USD/GBP checking Current Account or a USD/GBP Fixed Deposit which is also called a Non-resident Foreign Currenc y Deposit ( NFCD) and which earn attractive interest rates. Strict Exchange Control Regulations govern the opening and operation of Foreign Currenc y Accounts and it is advisable to discuss these in detail with the Bank before opening such accounts.
4.4 e-Banking E-Banking provides you with a full range of reporting capabilities, and a comprehensive range of transaction initiation options. Whether it is cash or trade related, the user-friendly e-Banking customer workstation will provide you with a secure, reliable and effective link between you and your accounts anywhere across the Standard Chartered network with more than 500 offices in more than 50 countries. Once you have defined your required reporting data into the s ys te m, you can displa y it on the e-Banking workstation or print it. The embedded report generator enables you to customise report for mats to suit your particular require ments. EBanking also incorporates an “events scheduler” which automaticall y executes tasks for you. Moreover, e-Banking offers Data Export/I mport capabilit y to/from other widel y used Windows-based software (e.g. text, MS Excel, MS Access etc.). The follow ing are the key features of e-Banking: Cash Reporting… With e-Banking, you not onl y receive access to your accounts throughout the Bank’s network, you also receive infor mation about move ments through your accounts with other banks via the SWIFT multi- bank reporting capabilit y. The user friendl y design of e-Banking enables you to view your account details quickl y and easil y – account balance details, state ments, and histor y infor mation are all available at the touch of a button.
Cash Initiation… You receive a full range of domestic and cross-border transaction initiation capabilities through e-Banking, including electronic funds transfer as well as paper based pa yment options such as drafts. E-Banking si mplifies the cash input initiation process by providing you with features that improve accurac y and efficienc y. These include templates for commonl y used transactions; “look-up” tables for frequentl y used infor mation such as bank, beneficiar y and account details; and a “create from previous” capabilit y that allows you to select one of your earlier instructions as a te mplate for your current input. Trade Initiation… e-Banking provides you with a full range of trade transaction capabilities including,
LC
applications,
issue,
amendments,
funds
withdrawals,
i mport
collections and reimbursement authorizations. Security & Control… When making financial transactions electronicall y, strict securit y is of the utmost i mportance, you need to have the right safeguards in place to prevent people without access rights from tampering with the s yste m. Standard Chartered’s eBanking includes a series of features such as User Authorization, Passw ord Protection, Authentication & Encryption and Tracking transactions through an Audit Trail to ensure data integrit y and meet your securit y needs – all in line with industr y- recognized standards. 4.5 National Collection Services-NCS In toda y’s business climate, it is more important than ever to turn your receivables into funds you can actuall y use. Standard Chartered’s National Collection Services (NCS) is designed to help corporates with receivable collection require ments across Bangladesh. It provides faster funds availabilit y in a cost-effective ma nner and improves the company’s liquidit y. NCS offers a centralized s yste m where you can maintain a single concentration account with Standard Chartered for all your countr ywide collections. Comprehensive coverage… You ma y deposit cheques at our Correspondent Bank branches (currentl y 63 locations) in addition to the eighteen (18) Standard Chartered branches in Dhaka, Chittagong, Sylhet, Nara yanganj, Khulna, and Bogra. Cheque Pick up… Alternativel y, we can arrange for a courier to collect the cheques from your offices at pre-agreed times. We have dedicated support at each location who will maintain
close contact with your offices, dealers and distributors. The y will collect cheques from these places and deposit them at our correspondent bank branches. Improve your cash flow… Your single concentration account in Standard Chartered is credited on a preagreed value date for locations where local clearing exists. So there is no more guessing when funds will become available for your use. Moreover, for nonclearing locations, we ensure funds are realized in the shortest possible ti me. Since NCS quickens the speed of collections compared to the normal clearing/collection process, you can take the advantage of invest ment opportunities – or reduce your borrowing costs – instead of waiting. Simplify reconciliation and reduce idle balances… National Collection Services is designed in such a wa y that all funds for collection flow into your concentration account. There is no need for multiple local accounts with idle balances, and there is no need to handle multiple, ti me- consuming reconciliation tasks. Receive better information… Your abilit y to manage your business effectivel y is dependent on the qualit y and timeliness of the information you receive. You will promptl y receive deposit acknowledgements and your Standard Chartered Concentration Account will be credited on the pre-agreed date (based on the cheque t ype you have deposited at the designated branches). You can also receive a comprehensive state ment, detailing the deposits made at each of the designated branches and the funds due from the m. National Collection Services provides a variet y of informative and timel y reports to make sure you know what funds are being collected, when, and how – to help you make the most effective decisions regarding your company’s finances. Our infor mative reports will •
Help you better plan your cash flows
•
Support your customer credit control process
•
Help you to reconcile your receivables quickl y and efficientl y
In short, National Collection Services is a si mple and reliable solution to your countr ywi de receivable collection require ments.
ADVANTAGE OF NCS Sl
Thru NCS
Without NCS
No 1
The y are charging .10% with a mini mum
.25% with mini mum BDT 300
processing
and
2
fee
of
BDT
100
for
maxi mum
BDT
1,500
processing any deposit (including cash,
charges for processing any
cheques, DDs,POs) through NCS No return charges in NCS
collection cheques. Return charges of BDT 100 for any dishonored collection
3
network
cheque. There is no such arrange ment
Coverage at 50 Corrbank Locations and 6
exists, any cheques drawn on
SCB
outside
A
flexibilit y
locations.
the
Customer
can deposit
SCB
branches
branches. Guaranteed credit if the cheque
takes 2/3 weeks to realise the
is drawn on clearing area and faster
cheque.
(maxi mum is
drawn
1
week)
on
if
the
non-clearing
locations. A pre-agreed credit-structure is given in
If
NCS.
collection nor mall y there is
For cheques deposited in any
the
cheques
sent
absolutel y
NZML
turnaround
turnaround time. It ma y even
ti me. For SCB it is next da y and , in Corr
take months to realise the
bank clearing locations it is Da y 3. A comprehensive MIS provided for all
cheque. No such
the transactions through NCS. We do
nor mal procedure.
with
a
pre-agreed
no
for
clearing location we are crediting the
MIS
guaranteed
available
have separate reports for Cheques & Cash
showing
locations,
respective
consolidated
total
deposit for
a
particular location and also depositor’s 6
sent
for collection and usuall y it
cheque
5
having
Cash, any kind of instrument in these
collection
4
of
name. We do have return reports showing all the
details
including
Return
Reason,
No such MIS is available.
in
Return Date, individual Cheque Amount, Cheque number, Cheque Date, Drawee bank’s na me so that the cheque can be 7
easil y marked and reconciled. We do have a separate report called list
No such MIS is available.
of Relaised transaction showing details of 8
honored/dishonored
cheques. We do have report
collection
comprehensive
showing
complete
charges
No such MIS is available.
break-up
including individual deposit’s break-up 9
of charges levied in a particular month. Cash flow forecast & Reconciliation
No such MIS is available.
10 11.
report for easier reconciliation purpose. Dedicated customer service support. All in all a single point collection
No such dedicated service. There is not customized
solution for New Zealand Milk products
dedicated
(BD) Ltd.
specific customer.
service
for
any
4.6 Opspay Standard Chartered is proud to present OPSPAY , a service for our Corporate Customers which offers automated bulk transfer (e.g. salar y) processing from their corporate accounts. This will result in reduced errors and an overall improvement in your salar y pa yme nt processing. OPSPAY processes your Staff Salar y Pa yme nt by downloading your pa yment instructions in the for m of a Floppy Diskette. The service ensures that appropriate narration is provided for all individual account credits (i.e. salar y for the month of xxxxx) in account statements. This service has the following benefits, •
Time- efficient: We can act on your instructions on the sa me working da y if the Diskette containing the infor mation reaches our concerned depart ment before 11.00 a.m.
•
Error-Free: As the instructions will be downloaded directl y from the Floppy Diskette, OPSPAY eli minates manual entries and mini mizes the possibilities of any errors.
•
Value-date: Funds transferred through this service are immediatel y available at all our branches and ATMs
All you need to do is send us the salar y transfer instruction in an Excel File that should contain the following information: Full Account No. Account Name & Salar y Amount The diskette should be accompanied by a written authorization, which will be used to validate the soft-copy details. The combined network of Standard Chartered Bank (18 branches, 25 ATMs) and a hundred-ye ar old heritage in Bangladesh places us in a unique position to support your
banking needs. Our branch network now covers Dhaka, Nara ya nganj,
Chittagong, Syl het, Bogra, and Khulna, which are linked through on-line-Banking services enabling you to operate your account of from any one of our branches or 24-hour ATMs. Our offer includes a vast range of financial products and services complemented by a designated Relationship Manager to ma nage your require ments with personalized care. 4.7 Premium Service-Banking Premium Service-Banking offers you a choice of service improve me nts which can be tailored to your individual business needs. These service enhancements collectivel y allow you to ma nage your business finances and cash resources more effectivel y and convenientl y. It comprises of the following six modules— Courier The Bank will provide you with the convenience and securit y of a dail y courier pick-up
and
deliver y
service
at
your
pre mises
for
your
routine-Banking
transactions. The service is available for non-cash transactions like
cheque
deposits, trade finance documents, pa yme nt instructions, statements and cheque book requests.
Auto-Fax Reports A
comprehensive
Dail y
Account
Statement
covering
detailed
transaction
infor mation will be ma de available to customers via fax ever y morning. It will
contain complete transaction details up to the close of business of the previous da y to facilitate better financial manage me nt of your precious cash resources. Hotline (A Single Point of Contact) This facilit y provides you with a single window into the bank for all your transactional banking enquir y. Premium Service-Banking customers will have access by fax or by phone to an exclusive Corporate Service Unit (CSU) in the Bank’s Office at Dhaka, Bangladesh. Dedicated personnel are available to handle a full
range
of
transactional
banking
enquir y
relating
to
balances,
account
statements, cheque pa yment status and other transactions. Inward Re mittance Information Service The bank will pro-activel y provide you with a fax report detailing all Inward SWIFT pa yme nt messages received by the Bank for your accounts with us. For the first time you will get to know about the receipt of such re mittances even before the y are processed in the bank. These messages will provide you with complete remittance details including amount and re mitter infor mation. Express Payments In case you miss our dail y courier or urgentl y need to send a telex or draft, we offer you an alternative; initiate your request for a pa yment via your fax machine. What is more, for Premium Service-Banking customers, the Bank commi ts to initiate remittance transactions for telex/SWIFT transfer instructions received by 1:00 p. m. For pa y orders, the cut off time for Premium Service-Banking customers has been extended to 3:30 p.m.
Foreign Exchange & Money Market Information The Bank will arrange to provide infor mation on Foreign Exchange and Mone y Market rates on a dail y basis by fax. Our Dail y Treasur y News provides infor mation on Foreign Exchange rates, ke y stock, bond, and interest rate indices, highlights from international financial markets and information on technical chart points. In addition, the Bank will provide with a clear and concise market comme ntar y, in the for m of a Weekl y Treasur y Newsletter, which covers the major financial events
of the week and provides infor mation on move me nts in major currencies, stock indices, commodities and USD Mone y Market rates.
4.8 Payments Plus What is Payments Plus? Pa yme nt s Plus is a user friendl y software which is offered to corporate customers of Standard Chartered Bank to facilitate the pa yments that the y wish to ma ke through its electronic platfor m, e-Banking. What Pa yments Plus essentiall y does is create a bridge between the customer ’s own accounts pa ya ble s yste m and Standard Chartered’s e-Banking. Typicall y the customer has to maintain a database from which pa yme nts are periodicall y made. For customers who are already used to the convenience of sending instructions electronicall y through Standard Chartered’s e-Banking, typing in the required infor mation into the e-Banking te mplate creates an additional level of work. This is where Pa yme nts Plus comes in. by utilizing this software the process of t yping in all the requited information becomes just a single click of the mouse button. If the accounts pa ya ble s ys te m is maintained in a simple pre-determined format (t ypicall y in MS Excel file), then Pa yme nts Plus uploads the infor mation from the file to e-Banking. Thus sending pa yment instructions to Standard Chartered Bank becomes a one-step process What Payments Plus means for you? •
Outsourcing of domestic account pa yables to the bank
•
Integration of e-Banking with account pa yable s ys te ms
•
Abilit y to process bulk transactions
•
Supports internal transfers, pa y orders and demand drafts drawn on other banks
Tangible benefits you get by using Payments Plus
•
Increased efficienc y
•
Greater control
•
Enhanced securit y
•
I mproved vendor relations
•
Lower all-in-all cos
4.9 Trade Reports At Standard Chartered, we understand how i mportant it is to sta y informed of your trade commi t me nt at all ti mes. Our innovative information service now enables you to get an up-to date and eas y –to read summa r y of your outstandings for your I mport, Export and Shipping Guarantee positions. You get the following benefits from our Trade Reports •
Monitor your outstandings at a glance
•
Take control of your bills status and cash flow
•
Optimall y utilize your trade credit facilities
•
Proactivel y act on proble ms relating to unaccepted or unpaid bills
•
Control over the expir y dates for i mport and export Letters of Credit Its range of Trade Reports …
Trade Reports puts you in control of your trade outstandings – and gives you all the infor mation you need to effectivel y manage your company’s trade business. You can choose the level of reporting that best meets your company needs, and you can change this selection as your business grows. We offer six t ypes of report categories 1. Trade Outstandings Report summarizing all your trade finance outstandings in the report. 2. Export Trade Maturity Report includes the following infor mation: •
Export Letters of Credit Report details unexpired export letters of credit transactions
•
Export
Draw ings/Bills
Report
details
your
outstanding
drawings/bills transactions 3.
Import Trade Maturity Report includes the following infor mation:
export
•
Import Letters of Credits Report details your outstanding import letters of credit transactions
•
Trust Receipts Maturity Report details your outstanding trust receipt transactions
•
Acceptances
Report
details
your
outstanding
acceptances
and
their
maturities 4. Guarantee Report details your outstanding from copy document endorsement for air, sea and road, Bid Bond and Performance Bond issuance. All reports can be delivered by fax, mail, or held for collection. The y can be delivered on a dail y, weekl y, fortnightl y, monthl y basis or on de mand. 4.10 Web Bank Introduction… Web Bank can significantl y enhance the bank’s service to you and will pla y a pivotal role in the future of your business. Our Corporate and Institutional web-site offers you comprehensive information on your accounts and a number of valueadded features. The onl y thing that you need is an access to the internet and you will be able to use Web Bank from anywhere in the world. As a Web Bank customer you will be given a specific user ID and a confidential password. You can then view the following infor mation online: •
Cash Account Statement
•
Cash Account Balances
•
Cash Balance History
You can also save these information as HTML, PDF or text format and take printout. In addition you will be able to find a comprehensive range of information about Standard Chartered Bank, its services and world-wide network. A major advantage of Web Bank is the user can access this web-site from any location through an internet connection onl y.
Security…
In order to meet the rigorous industr y standard of transactional securit y, we have adopted the operational and technology fra me work of Identrus Global Public Ke y Infrastructure. We have achieved the status of Identrus Global Certified Authorit y in 2001. 4.11 Cheqwriter What is CheqWriter? Cheq Writer is an user-friendl y software developed and owned by Standard Chartered Group, which is offered to corporate customers to facilitate the preparation, printing, and recording of Standard Chartered cheques. Cheq Writer also provides different t ypes of MIS for a better control on your cheque pa yments. The Bank will suppl y the cheque printing stationar y as and when requested by the customer. This is a pre-printed A4-size cheque for m with two sections separated by a perforation. The top part is the counter foil of the cheque that can be used as a paper-record of the transaction and can also evidence the pa ye e’s receipt. The bottom part is the cheque that contains all regular input fields of a conventional cheque leaf. An optional “Account Pa yee Onl y” marking for crossed cheques can be printed on the cheque leaf by CheqWriter. What are its features? •
Customisation of cheque leaves with customer logos;
•
Data storage for a complete histor y of all cheque pa yments;
•
Controls against t yping errors;
•
Robust overall securit y; and
•
Professional counterfoils, which can be used both for recording purposes as well as receipts.
What are the hardw are requirements for CheqWriter? CheqWriter can be operated from either a single personal computer or from a network
of
multiple
computers.
Hardware
requirements
for
installation
of
CheqWriter are: •
100% IBM compatible personal computer operating under MS Windows 95 and above;
•
486 processor (mini mum);
•
16 MB RAM;
•
1.44 MB 3.5” Disk Drive
•
Hard Disk drive with 25MB free space.
How can you benefit from CheqWriter? CheqWriter •
allows you to customise your cheques with company details, logo and counterfoil;
•
saves time by automating the cheque preparation;
•
maintains a histor y of all cheque pa yments and can provide a wide range of infor mation extraction capabilities through various reports;
• •
has the abilit y to interface with other applications; Provides full audit trail of all transactions.
Security… Access to CheqWriter can be para meterized through user IDs and passwords. Users can also be assigned with different access levels to avoid unauthorized use of CheqWriter. 4.12 Bills pay We are pleased to introduce Billspa y, the most convenient wa y to settle your monthl y utilit y bills. Billspa y will not onl y provide convenience but also allow flexibilit y to pa y your bills as and when you choose. Once you sign up for our services you will no longer have to go out of your wa y to pa y bills for electricit y, mobile phones, internet, etc., ever y month.
Billspa y provides one-stop pa yment
solution where we will debit your account to pa y your bills. Choose Auto Billspay to outsource your utilit y pa yme nts to the bank. The bank will collect your bills directl y from the billing company and debit your account to pa y them according to their billing c ycle. All you have to do is sign up once and completel y forget about your bills… we will take care of them. And if you’re not comfortable with pa yi ng in a date deter Smined by the billing company, we have Billspay Regular for you. You can send your bills to our bank at any da y of the month by a me ssenger and we will pa y off your bills and stamp “PAID” on your receipts. Or simpl y choose Billspay Express to enjoy the benefits of both the services mentioned above. You decide when to pa y and we’ll send in our people to collect your bills from your premise(s). We will pa y off these bills, sta mp “PAID” and send them back to your office. To sign up for Auto Billspa y you have to give us detailed billing information. Infor mation like meter number (for pa yment of electricit y bills), billing company’s na me, billing date (for pa yment of mobile phone bills), customer ’s name and
signature should be given at the time of sign up. You should also provide a copy of the relevant bill statement(s). To enjoy Billspa y Regular or Billspa y Express all you need to do is accept our banking service proposal customized towards your requirement