OPERATIONAL MANAGEMENT

MCB Privilege Bank

Discover Your Privileges™

Group Members

Faiqa Qamar

Haris Ahmed

Irfan Ullah

Saad Ullah

Waleed Ahmed

Lahore School of Economics

BBA Double Majors in Finance and Marketing
Introduction

Established in 2008, MCB Privilege is an extension of Muslim Commercial Bank, which is

recognized for fulfilling the need of excellent customer relation and superior quality service to
the customers. MCB Privilege has four centers nationwide located in Karachi, Lahore, Multan
and Islamabad. It is a new trend in banking sector that most of the renowned banks are inclining
towards facilitating their customers with privilege services. Examples are Superior Banking by
Standard Charter Bank and Royal Banking by Bank Al Falah. MCB Privilege has given a new
dimension in banking sector to target the most profitable and potential customers.

Privilege Experience

MCB Bank Limited is the first local bank that has launched privilege banking facilities for its
customers. The special facilities are available to all customers, who open their account with
MCB Privilege and maintain a deposit relationship of Rs. 2.5 million and above.

MCB Privilege goes “beyond banking”, aspiring on building relationships for life. By offering
exceptional services and treatments to our customers, we aim to bring to them an experience of a
lifetime. Our Privilege Relationship Managers, with their experience and expertise strive to
deliver above and beyond their expectations and enable our customers to view the Privilege
Centre as more than just a banking channel. Our Privilege customers also receive specialized
benefits for banking with us:

 Instant account opening: all new customers will receive their cheque book and activated
ATM card within minutes of opening an account
 ATM/Debit Card with international acceptance
 Superior spending power through our Gold Credit Card with enhanced transaction and
POS limits
 24/7 account enquiry through our dedicated call centre
 Round the clock access through ATM, SMS and Virtual Banking
 Charge free banking
 Option for replacement loan
 Expert advice on management of financial assets
  Invitation to exclusive events

Privilege Relationship

With our team of professional, highly dedicated and certified Privilege Relationship Managers,
you are set on the golden road to success. They understand your aspirations, and focus not only
on your current financial standing but also on where you want to be. With the attention and
commitment that you deserve, the Privilege team will use their expertise, and market insight to
help you invest your funds and grow your wealth. Your Privilege Relationship Manager will
arrange periodic review meetings with you to assess your financial situation and better prepare
you for the future.

MCB Privilege Products

MCB Privilege offers the following services to its prospect customers;

 Deposit Products
 Investment Products
 Loans
 Bancassurance
 Credit Cards
1. Deposit Products
The portfolio for deposit products consists of the following accounts. These accounts are
designed with specific consumer needs and policies. Products in deposit category includes
Saving 365 Gold, Saving Xtra, Smart Dollar Account, Saving Account, Current Account,
Business Account, Foreign Curreny Account.

Investment Products

With Privilege Banking, Financial Management goes beyond just simply offering a wide range
of investment products; it is how financial services and solutions can be developed around your
individual aspirations and goals. We offer a unique approach to help manage your wealth, by
listening to you and understanding the things that are most important in your life and offering
you superior customer service and a promising relationship built on trust. Investment Products
include Dynamic Cash Fund, Dynamic Allocation Fund, and Dynamic Stock Fund.

2. Loans

MCB Privilege offers the loan under following categories; Mortgage, Personal Loan, Business
Sarmaya, and Cash 4 Cash.

3. Bancassurance Products

Your policy will be selected from the most reliable insurance companies. You can feel confident
that your policy has already passed MCB’s strict standards for selection ‘Unparalleled
Protection’. These policies include RetireEasy, Income Max, EduCare, and Dream Wedding.

4. Credit Cards

Accepted at over 24 million establishments worldwide in 210 countries including 10,000 in

Pakistan displaying the Credit Cards logo, you can rest assured of real value-added benefits at
home and abroad. We offer you a Pre-approved Visa Gold credit card, packed with the most
powerful alliance card, “Priority Pass”, the largest airport VIP lounge program in the world, with
over 400 exclusive VIP airport lounge locations around the world.
 Branch Operations

A)

A Privilege Banking customer is defined as below:

Existing: Customers maintaining a 3-month average balance of a minimum of Rs. 2.5 million on
a relationship basis.

New: Customers opening accounts with a minimum of Rs. 2.5 million based on the premise that
funds will be maintained with us.

MCB Privilege is following the same Operational Manual that is followed in normal MCB
branches except for minor modification in charges for different services because they provide
premium services so they charge premium against them. MCB Privilege is currently using
SYMBOLS as their computer database program for daily transaction. SYMBOLS is an Oracle
based systems.

Authorized signatories only includes:

Branch Sales & Service Manager (BSSM)

Branch Operations Manager (BOM)

Account Opening/Maintaining Process Flow

Process flow for Frontline staff

1. Requisition to be sent out to Consumer Bank Operations on 20th of every month (for accounts
to be opened as Privilege for the following month only) from BSSM mailbox stating: Type
of accounts (CA/SA)
2. Fill out AOF completely and accurately
3. Clearly put the “Privilege Banking” stamp on the documents before faxing/ scanning to the
Principal branch.
4. Append the “Already Faxed/Scanned” stamp on the AOF after scanning/ faxing to ensure
that the same account is not processed again.
5. Attach all supporting documents accurately
6. Record Account # of Welcome Pack on AOF & KYC
7. Authorized signatory (PCM/BSSM of sub branch) to sign on AOF being faxed across.
Original documents to be sent to the Principal branch same day where they will be stored in a
fire proof cabinet.
8. Operations at the principal branch will remove the block ‘IAS” from the pre-opened account
and enter the details of AOF on symbols. After the details are plugged, a/c will be authorized
by relevant signatory.
9. Operations at Principal branch will inform the BSSM, BOM & RM through an email that all
details have been input on symbols & CNIC verification on NADRA’s veri-check has been
carried out. Subject of the email should be A/c no of the customer.
10. RM will get the Welcome Pack from the BOM along with ATM PIN mailer from the
designated teller. All three will sign the inventory control sheet.
11. When account is opened, the Privilege Pack (consisting of Interim cheque book and ATM
card) is to be handed to the customer and due acknowledgement is taken for the same.
12. RM/CSO will take the ATM Card for activation. RM/CSO will check the ATM card number
on the “MCB ATM Card Generation Module”; reconcile the card number on the system with
the number on the plastic. RM/CSO will then, mark an activation request to the Call Center.
13. Designated officer at the Call Center will activate the ATM card on EURONET, which is the
ATM controller.
14. The RM will personalize the ATM card at the center by running it through the Data Card
printer, which will print the customer’s name on the plastic

Process flow for Principal Branche (back-end):

Principal branch will perform the following activities:

1. Pre-opening of liability accounts

2. Restraint setup for charges waiver
3. Requisition of non-personalized 5 leaves cheque books
4. ATM requisition
INSTANT ACCOUNT OPENING
Customer

Customer makes an initial

Customer walks into the Privilege
cash deposit to activate his
Center
account

In case of an existing customer the RM will fill out a new AOF and RM collects Welcome pack RM to take the ATM card for
RM greets the customer. Checks
Relationship Manager

send it for processing to the Parent branch. No WP will be given to an from BOM and hands over to activation. After activation,
whether it is a NTB or existing Existing
existing customer the customer after taking the card is personalized
customer
Customer to receive his check book & ATM card in 3 working days acknowledgement. through the magnetic printer.

NTB

Individuals will submit: CNIC, AoF, KYC/ AML.

RM to check the AOF for
Sole Proprietor: Application on official RM to collect all AOFs/ KYCs and
accuracy and get BSSM to
letterhead, NTN#, Evidence of membership of send to Parent branch. Copy to be
signoff. The AOF is scanned/
trade organization, list of authorized officials with retained for record keeping
faxed to the parent branch
Signatures
Parent Branch

Account opening officer to perform the following activities:

Designated staff to
- Key in customer data
store all AOF/KYC
- Personalized cheque book request to be raised
in a fireproof
- Personalized ATM request to be raised (if required)
cabinet
- CNIC verification through NADRA
Branch Operations
Manager- BOM

BOM – as the custodian –

Email is sent to BOM & RM
hands over the Welcome Pack
informing them that the a/c is
to the RM after taking
active.
acknowledgement

Gold Card Process Flow (For Privilege Customers only)

Privilege Relationship Manager (PRM) will fill in credit card application along with all the
relevant documents.

1. Documents for NEW Privilege Customer:

Profession, Copy of CNIC or Passport, 6 months bank statement (relationship with
another bank) & salary slip if required.
2. Documents for EXISTING Privilege Customer:
Credit will conduct data check & e-cib clearance for all existing customers before these
customers are solicited by privilege RMs. This list will be provided by Product team
through the Business Intelligence Unit. CNIC, Recommendation memo/ email from
Branch Manager* stating the 6-month average balance of the customer.
3. If a greater limit is requested than preset limit of Rs. 150,000/-
 In those cases where the customer is eligible for a limit higher than Rs 150,000/- credit
will assign the higher limit to the customer. PRM will ensure the following:

- “Privilege Banking” stamp is affixed on the application.

- Customer Account number (where balance >Rs. 2.5M is being maintained) to be

written in the application.

- Privilege Sales Source code “PRM XXX” is mentioned.

- Branch code to be mentioned next to “PRM XXX”

- “Already Scanned/ Faxed” stamp to be affixed ONLY on original card

application. ( to be followed for all branches)

4. PRM will FAX & SCAN the application to FTS for Data check and FTS. Application to
be marked as Privilege Banking to ensure urgent processing.
5. FTS will input the required information in the system with SE Code, generates Bar Codes
& Data Entry will input Customers particulars & forwards it to PRM for further
processing.

6. PRM to forward the FAX and SCAN the application to Credit Initiation Unit

7. Application received at CIU for further processing/decision

8. Credit Initiation Unit will scrutinize the application to check for discrepancies.

 BM/BOM approval is taken and discrepancy to be resolved in 2 days from date of

application. Nevertheless, application will not be processed if discrepancy exists.
 Discrepancies will be escalated to HoPB, HoC, CCH after 7 Working days.
9. CIU to access the application and assign limit ( based on income/ salary and available
limit)
10. In case of internal verification (IV) only, CIU will initiate a request to Card Processing
Unit (CPDU) & provide the customer’s information for urgent processing.
11. CPDU embosses the card and forwards it to courier for onward delivery to card member.
Privilege Credit Card Process Flow
Customer

Customer is
approached by
PRM, and shows
interest in
purchasing Card
Privilege RM

PRM gets Application

Sorts out
Form filled out from
discrepancies,
customer, collects
gets missing info
documents & submits it
from customer
to Data Entry
Operations
Date Entry

Barcodes
application & Data Entry is
Card

inputs PRM’s carried out Yes

sales code

Internal &
External
Scrutiny of Customer is No Verification Email sent to
CIU

application and Discrepancies No MCB account CPDU for urgent

Credit Checks holder Yes processing
Internal
Verification
Production Unit
Card

Card Embossing
and Delivery

Mortgage Loan Process Flow

Mortgage loan at MCB Privilege is offered for the following purposes:

 Purchase
 Renovation
 Construction
 Balance Transfer Facility (BTF)

Process Flow:

The departments/units involved in this process include Privilege Relationship Managers (PRMs),
Asset Sales, CIU, External Agencies Management Unit (EAMU), and
1. When the customer first walks in, the PRM approaches the customer, and then prepares a file
for the interested & eligible customer.

2. PRM prescreens the customer, gets the property documents and cheque for processing fee
and forwards it to Mortgage Sales.

3. PRM will forward any cases to the assigned Relationship Manager (Asset Sales) attaching
the branch call memo, one Bank one team form as well as the branch stamp so that the case
can logged in as a Privilege center referred case.

4. Sales department calculates debt burden then forwards it to CIU for “Credit” approval.

5. They forward the required document to EAMU for “Appraisal” as well as for “Legal
Opinion”. The EAMU verifies the cases and forwards the reports to CIU within 5 working
days provided that the documents for legal and appraisals are completed

6. It is then forwarded to Mortgage Operations department for Data entry at first stage and then
finally for “Disbursement” after the final “Credit” approval by the CIU.
Mortgage Loans

Once customer
Customer is Acceptance of
Customer

decides property,
approached by disbursal letter and
he can come back,
PRM; if interested payment
and case will
fills out application instrument
resume
<Asset Sales> <Privilege RM>

Sends property
PRM informs
Pre-screens for documents &
customer of lien
eligibility cheque for
marking charges
processing fee

Reviews and
calculates Debt
Burden; forwards it
to CIU
<CIU>

Property is
Carries out CIB Bank issues offer Issues Sanctions
decided by
and data check letter Letter
customer

Yes
PO/DD, payment
<EAMU>

instructions, repayment
Carries out schedule, disbursal
Appraisal and letter forwarded to
Legal Opinion via customer
external agencies
Operations
Mortgage

After verification,
disburses loan,
issues PO/DD
B).

Supply Chain Management

MCB Privilege Bank is included in service sector so majority of its operations are free of hassle
with respect to manufacturing or assembling of the products. The supply chain system of MCB
Privilege is divided into two main domains; ATM Vendors and Branch System Software Vendor.

ATM

Suppla
y Chain
Computer
Computer
Software
Software
and
and
Database
Database

ATM Vendor

Innovatives PVT Ltd. (IPL) fulfills the needs Automated Teller Machines for MCB Privilege.
IPL is a Pakistani based company which is a part of a group that includes other market leading
companies such as i2c Inc. USA and Avenceon. IPL specializes in three main categories Client
Service Division, Power Protection Solution, and Banking Automation Solution.

Computer Database and Software

MCB Privilege uses software called SYMBOLS for their operations. SYMBOLS is an Oracle
based support software.

Outsourcing

All the products and services are entirely produced by MCB Privilege except for the two
products mentioned above. MCB Privilege has also outsourced its department for Customer
Support. The outsourcing of Call Center has helped them to focus on their core services and
enhance their productivity. They have hired the services of local based company ‘Business
Solutions’ in this regard. Apart from that MCB Privilege is running its own HR, Marketing,
Operations, Financial functional etc.
C).

Process Flow used by Company for Suppliers

MCB Privilege has a simple process flow for supplier i.e. ATM and computer software vendor.
A written request for particular product is sent to the vendor which has its approvals by two
personnel which includes Group Head Consumer Banking, and Group Head Privilege Banking.
Once the vendor accepts the request, both the parties undergo a mutual contract.

Designated branch ATM Coordinator and IT Monitor:

All ATM equipped branches are required to formally designate one official in the branch to
perform the prescribed ATM related tasks. This officer in smaller branches can be the Operations
Manager or the Administration Officer.

Key responsibilities:

The officer is responsible for the following tasks in addition to his/her duties (core
responsibilities/functions) in the branch.

 Weekly checkup of system database.

 Cleanliness and up-keep of the ATM booth and manage the maintenance.
 Maintain ATM UPS and other networking equipments to be in order.
 Maintain liaison with ATM Operations (ITD) and the Vender.
 Maintain a complaint log register and record all repair/maintenance activities on the
machine by the vender/engineers. The movement of ATM parts either for
repairs/replacement should also be entered in the register.
 Make sure to keep an updated record of names and contact numbers of the related
venders and the ITD Implementation personnel for quick reference.
D).

Service Quality

Customers are the focus of every business today, they define quality. The key aim of providing
Quality service to our customers is the involvement of all employees to a quality approach.
Identifying the needs of customers is a matter of ensuring that employees, who depend on one
another as individuals, as well as departments, that depend on each other as units, communicate
their needs to one another continually.

This, develops, strengthens and retains Customer relationships by improving the cycle time and
reducing defects in all the processes resulting in Customer Satisfaction and loyalty.

MCB approach to service quality control

According to MCB “Customer Needs, Expectations and Perceptions are changing rapidly
therefore we also need to gear ourselves in order to stand in line with our competitors. Keeping
in view the aim of delivering quality service to our customers continuously”

Following are some features that MCB thinks essential for delivering quality in every branch

 Branch Environment
Quality encompasses every aspect of an organization. The branch environment helps turn the
branch into the largest generator of value in retail banking, and also the most significant
factor in customer retention
 Staff Attire
A nice, uniform look for your staff helps them look professional and command the respect
they deserve.
 Branch Customer Service
Customer service is built on the bedrock of a positive attitude, without which all attempts to
create a wonderful customer experience will fail it include Cash Counters, Telephone
Etiquettes
Service management activities at MCB
Service management activities are the ones we do on daily basis for ensuring all components
(touch points) that would affect an over-all customer experience are as per our standards and that
we are making efforts to improve them further e.g. Cleanliness, Ambiance management, Service
Forums, Process Improvement, Training, etc.
1. Host of the day - DAILY
2. Housekeeping - DAILY
3. Floor Management - DAILY
4. Service Coaching - DAILY
5. Monthly Service Meeting - MONTHLY
6. Service Clinic – QUARTERLY

1. Host of the Day

It is a proactive approach towards day-to-day service management. The rationale behind this
initiative is to make sure that all attributes within the branch which can affect our service
delivery and in turn help make a good customer experience should be checked on daily basis.
2. Housekeeping

Look and Feel does make a difference in any experience. Clean and hygienic environment gives
a decent and good impression apart from proving a comfort for the customer. It includes Outside
Parking Area, Front Entrance, Banking Hall, ATM, Lockers, Kitchen, and Toilets etc

Service Quality Analyst will check Quality of Cleanliness Look and feel of the branch via
Housekeeping and discuss any improvements pending items with the Branch Operations
Manager and the Branch Manager

3. Floor Management

Floor Management is a daily activity, any one staff member of the branch is assigned to serve
customers for an hour during peak hours (I-e 10.00 am to 2:00 pm) in which he/she will maintain
the service level of the branch and provide additional support to the existing frontline service
staff (CSO). The purpose of this initiative is to work as a team and effectively manage branch
floor time.
4. Service Coaching

Coaching for service mindset and culture is a crucial function of management. The objective of
coaching is to improve customer services and to build confidence. When staff feels more
confident in what they are doing, they will be willing to do it more frequently. Branch Managers
and Supervisors should invest time in it.

5. Service meetings
These meetings should be held once a month (max by 15th of every month). The date of meeting
should be communicated to departments at the 1st working day of the month. The objective of a
service meeting is to discuss and correct the flaws branch are facing in their activities.
6. Service Clinic
It is conducted by Service Quality. This is a forum where all Customer Service Officers of a
region get together on a quarterly basis to review their service performance results as a team,
identify weak areas and decide on action plan for the upcoming quarter. This is a full day forum
done by the experts quarterly.

Service Quality Analysts

MCB have a separate quality control department and it sends its analyst to visit branches and
check all parameters and record findings on a quality check report. Service Quality Analysts
would share the report with the Branch Manager on-spot and fetch a target closure date for all
actionable items (weak areas) identified The purpose of the Service Indicators (SI) Program is to
ensure service quality along a number of core internal service standards.

Customer Satisfaction

Profitable Organizations have one clear common denominator that they are customer focused.
They know who their customers are and know what they want. Further, they systematically
measure themselves against standards set by their customers. MCB is doing just the same thing
to achieve customer satisfaction level and uses to methods to measure its level

 Customer Satisfaction Survey (External)

 Customer Satisfaction Survey (Internal)
 1. Customer Satisfaction Survey (External)
MCB want to know how customer feels about our services on a continuous basis. Service
Quality Analyst during their branch visits and telephonically, will conduct this survey every
month. The frequency will be as follows:

3 customers per month will fill out the questionnaire in the branch while being served 3
customers per month will be interviewed via telephone. The feedback score will be compiled and
shared with all stakeholders

2. Customer Satisfaction Survey (Internal)

Banks are increasingly interested in retaining existing customers while targeting new customers;
measuring customer satisfaction provides an indication of how successful the organization is at
providing products and services to the market place. The customer’s state of satisfaction depends
on a number of both psychological and physical variables. The level of satisfaction can also vary
depending on a customer using other bank’s products/services. These surveys are done once a
year.

Complaint Management

A good complaint management process has four major components:

 Capture complaints
 Resolve complaints for customers
 Eliminate root causes
  Drive continuous improvement

Channels through which complaints are received are as follows

MCB Call Center, Branches, MCB Website / Email, Fax / letters, Regulators (State Bank &
Banking Mohtasib), Management/ Hierarchy.

Complaint Resolution Unit (CRU)

A centralized unit, working in collaboration with all Segments; responsible for acknowledging,
investigating, tracking, escalating and resolving customer complaints within a specified
turnaround time (5 working days). The Unit also performs in-depth qualitative and quantitative
complaints analysis followed by suggestions and recommendations in order to eliminate root
causes/ drive continuous improvement drive.

Complaint Management System (CMS)

Complaints are processed through “Complaint Management System” (CMS) which is a State-of-
the-Art solution for managing customer complaints starting from Instantiation at customer
interaction places to their Resolution. This system is used to input data, keep close follow-ups
and monitor progress as well as storage of the data, along with the escalation to the different
levels of the Management. It is accessible at various departments.

MCB is using state of the art quality control method which are up to the par with the
international level and is one of the leading bank in the country in quality insurance and control.
There are zones of quality department for MCB. Whole Pakistan is divided into different zones
Lahore zones got 6 offices while Karachi zones which covered most of the Sindh got 10
departments.

References

Amara Bano
Customer Services Officer
MCB Privilege Bank

Sadia Zaman Khan

Operational Manager
MCB Privilege BAnk

MCB Privilege Center # 1

Lahore: 15 Main Gulberg, Jail Rd, Lahore
Phone: 042-36041806 / 36041808
Fax: 042-35776669

http://www.mcb.com.pk/privilege/

http://www.innovative-pk.com/aboutus.html