Premier University Chittagong

Internship Report
On
Customers perception towards Digital Banking on Brand Equity
-A Study on Al-Arafah Islami Bank PLC
[This Report is prepared for the partial fulfilment of the Degree of Bachelor
Of Business Administration (BBA) with a Major in Marketing]
Submitted To:
Sultana Razia Chowdhury
Assistant Professor
Department of Business Administration
Discipline: Marketing
Premier University Chittagong
Submitted By
Amir Hosinuzzaman Akib
ID:1903910109802
Program: BBA
Batch:39th
Semester: Fall 2019
Department of Marketing
Faculty of Business Administration
Premier University Chittagong
Date of Submission:28.02.2024
 Premier University, Chittagong

Letter of Submission

28th February, 2024

Sultana Razia Chowdhury
Assistant Professor
Discipline: Marketing Department of Business Administration
Premier University Chittagong

Subject: Submission of Report.

Dear Madam,
It is my great pleasure to submit the Report on “Customer perception towards Digital
Banking on Brand Equity” which has been prepared as an integrated part of the course
requirement of my BBA program at university.
It will be highly appreciated if you kindly accept the report. You’re regarding this matter
would be very much helpful for professional career. Thank you for your cooperation.

Sincerely yours,

Amir Hosinuzzaman Akib

ID: 1903910109802
Program: BBA
Batch:39th
Discipline: Marketing
Faculty of Business Administration
Premier University Chittagong

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Acknowledgment

All praises are to Almighty Allah. First of all, I express my deep gratitude to Allah (Swt)
who created us and nurture us in this transitory world. I also have to put my heartiest respect
and gratitude to my parents without whom.
I would like to extend my deepest gratitude and heartfelt thanks to my honourable supervisor
Sultana Razia Chowdhury, Assistant Professor, Marketing Department, Department of
Business Administration, Premier University Chittagong for her positive support, sincere
cooperation, enthusiastic motivation, and suggestive guidelines during the whole phase. I am
grateful to my honourable supervisor for her kindness and distinguished supporting behaviour
and personal interests to me.
My special thanks and gratitude to all those persons who managed their invaluable time to fill
up my online survey questionnaire and thus encourage and help me to prepare my Report by
providing their valuable supports.

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Executive summary

This internship report focuses on evaluating the customer satisfaction levels regarding the
general banking services offered by Al Arafah Islami Bank PLC, Aman Bazar Branch. The
objective of this study is to perception towards Digital Banking, identify key factors
influencing their satisfaction, and provide recommendations to enhance their experience.
To accomplish this, a comprehensive analysis was conducted through surveys, customer
feedback, and interviews. The study found that the general level of customer satisfaction at Al
Arafah Islami Bank PLC is moderately satisfactory. While customers appreciate certain
aspects of the banking services, there are areas that require improvement to meet their
expectations.
Factors such as customer service quality, waiting time, account management, loan services,
and online banking facilities were identified as crucial influencers of customer satisfaction.
The report highlights the importance of addressing these factors to enhance the overall
customer experience. Based on the findings, several recommendations have been provided to
Al Arafah Islami Bank PLC for improving customer satisfaction. These recommendations
include enhancing staff training programs to improve customer service skills, implementing
process improvements to reduce waiting times, upgrading online banking systems for greater
convenience, and conducting regular customer satisfaction surveys to monitor and address
customer concerns.
The report emphasizes the significance of continuous improvement efforts by Al Arafah
Islami Bank PLC in order to meet customer expectations and maintain a competitive edge in
the banking industry. By implementing the suggested recommendations, the bank can
enhance customer satisfaction levels, foster long-term customer loyalty, and strengthen its
brand image.
It is anticipated that this internship report will serve as a valuable resource for Al Arafah
Islami Bank PLC's management, helping them make informed decisions and develop
effective strategies to improve the quality of general banking services at the Aman Bazar
Branch. By addressing customer concerns and providing a superior banking experience, Al
Arafah Islami Bank PLC can position itself as a preferred choice for customers and achieve
sustainable growth in the highly competitive banking sector.

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Table of Contents
CHAPTER-01............................................................................................................................6
INTRODUCTION......................................................................................................................6
1.1 Statement of the Problem............................................................................................7
1.2 Objective of the study......................................................................................................8
1.3 Limitations of the study...................................................................................................8
CHAPTER -02...........................................................................................................................9
THEORETICAL........................................................................................................................9
ASPECTS...................................................................................................................................9
2.1 Perceived Ease of Use....................................................................................................10
2.2 Perceived Usefulness.....................................................................................................10
2.3 Trust................................................................................................................................10
2.4 Perceived Risk................................................................................................................10
2.5 Attitude Towards the service..........................................................................................11
2.6 Convenience...................................................................................................................11
2.7 Self-Reliance..................................................................................................................11
2.8 Brand Equity..................................................................................................................12
2.9 Behavioural Intention of Digital Banking Services.......................................................12
2.10 Research Proposed Model............................................................................................13
2.11 Research Hypotheses....................................................................................................14
CHAPTER -03.........................................................................................................................15
An Overview of........................................................................................................................15
Al-Arafah Islami Bank PLC.....................................................................................................15
3.1 Overview of AIBL..........................................................................................................16
3.2 Mission...........................................................................................................................16
3.3 Vision.............................................................................................................................16
3.4 Objective of AIBL..........................................................................................................16
3.5 Core values.....................................................................................................................17
3.6 commitments..................................................................................................................17
3.7 Function of AIBL...........................................................................................................18
3.8 SWOT analysis...............................................................................................................18
Strengths...........................................................................................................................18
Weakness..........................................................................................................................18
Opportunities....................................................................................................................18
THREATS........................................................................................................................19
3.9 Corporate Information of AIBL:....................................................................................20

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3.10 Product of AIBL as an Islamic Bank............................................................................21

Al- WADEEAH CURRENT DEPOSIT (CD)......................................................................22
MUDARABA SHORT NOTICE DEPOSIT (MSD)...........................................................22
MUDARABA SAVINGS DEPOSIT...................................................................................22
MUDARABA TERM DEPOSIT (MTDR)..........................................................................22
CHAPTER -04.........................................................................................................................23
RESEARCH.............................................................................................................................23
METHODOLOGY...................................................................................................................23
4.1 Research Design.............................................................................................................24
4.2 Sampling Technique.......................................................................................................24
4.3 Survey Instrument..........................................................................................................24
CHAPTER-05..........................................................................................................................25
DATA.......................................................................................................................................25
ANALYSIS..............................................................................................................................25
5.1 Demographic Discussion...............................................................................................26
Table:2 Duration of the Relationship with Digital Banking................................................27
Table:3 Age..........................................................................................................................28
Table:4 Education.................................................................................................................29
Table:5 Occupation..............................................................................................................30
Table:6 Family Income.........................................................................................................31
Descriptive Analysis.............................................................................................................32
Correlations Analysis...........................................................................................................33
Reliability Analysis..............................................................................................................34
Regression Analysis.............................................................................................................35
ANOVA................................................................................................................................36
Coefficient............................................................................................................................37
Analysis:...............................................................................................................................38
Chapter-6..................................................................................................................................39
Findings, Recommendations and Conclusion..........................................................................39
Findings................................................................................................................................40
5.2 Recommendation............................................................................................................41
5.3 Conclusion......................................................................................................................42
Reference..................................................................................................................................43

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CHAPTER-01
INTRODUCTION

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1.1 Statement of the Problem

Digital banking is part of the broader context for the move to online banking, where banking
services are delivered over the internet. The shift from traditional to digital banking has been
gradual, remains ongoing, and is constituted by differing degrees of banking service
digitization. Digital banking involves high levels of process automation and web-based
services and may include APIs enabling cross-institutional service composition to deliver
banking products and provide transactions. It provides the ability for users to access financial
data through desktop, mobile and ATM services. (Wikipedia 2018)
Digital banking is similar to online banking in that banking services are delivered over the
internet. However, digital banking encompasses more than online banking, which focuses on
digitizing certain core aspects of traditional banking, such as payment reminders and access
to bank accounts. Digital banking, on the other hand, digitizes every aspect of banking
products for customers of financial institutions. Digital banking revolves around the customer
and meeting all of their digital banking needs. (Virtusa)
Digital Banking means automating conventional banking through digital platforms like the
web and internet-enabled systems like mobile devices. With Digital Banking, you can access
almost all financial services at the tip of your fingers, all year round, irrespective of national
or bank holidays. It entirely eliminates the need for you to visit the bank. (DBS 21 Oct 2021)
Brand equity refers to a value premium that a company generates from a product with a
recognizable name when compared to a generic equivalent. Companies can create brand
equity for their products by making them memorable, easily recognizable, and superior in
quality and reliability. Mass marketing campaigns also help to create brand equity. When a
company has positive brand equity, customers willingly pay a high price for its products,
even though they could get the same thing from a competitor for less. Customers, in effect,
pay a price premium to do business with a firm they know and admire. Because the company
with brand equity does not incur a higher expense than its competitors to produce the product
and bring it to market, the difference in price goes to their margin. The firm's brand equity
enables it to make a bigger profit on each sale (Investopedia Adam Hayes 27 October 2023.)
Brand equity can be studied with the help of three different aspects. i.e. Cognitive
Psychology Perspective, Economics Perspective & Financial Perspective. Cognitive
Psychology Perspective is related with customer response to brand’s marketing mix (Aaker
1991, Keller 1993).
Brand equity is a higher value than a company produce from a product with a recognized
brand name in comparison to a generic equivalent. Companies can create brand equity for
their products by making them stick to minds and memorable, easily recognized and superior
in both quality and reliability. Also, mass marketing can create brand equity. (Jason Gordon
28th september 2021)

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1.2 Objective of the study

The main objective of the study is find out the customer perception towards Digital Banking
on Brand Equity. In order to achieve the main objective, the study has following sub
objectives-
 To find out the Perceived Ease of use
 To find out the Perceived Usefulness
 To find out the Trust
 To find out the Perceived Risk
 To find out the Attitude Towards the service
 To find out the Convenience
 To find out the Self-Reliance
 To find out the Brand Equity
 To find out the Behavioural Intention of Digital Banking Services
1.3 Limitations of the study
Conducting a survey involves various limitation and challenges, which can impact the quality
and reliability of the data collected and the generalizability of findings.
 Non cooperation of respondent
 Lack of experience
 Small sample size

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CHAPTER -02
THEORETICAL
ASPECTS

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2.1 Perceived Ease of Use

Most present research findings revealed that ease of use of technology expects people's aim
to accept technology (Yu, Balaji & Khong, 2015). Bashir and Madhavaiah (2015) suggested
that perceived ease of use has a considerable consequence on internet banking acceptance.
Thakur (2014), Schierz, Schilke, and Wirtz (2010) suggest that perceived ease of use has
been proved to influence attitude. Ease of use is also found to positively clarify the
implementation of mobile banking amongst customers in Iran (Hanafizadeh, Byron, &
Khedmatgozar, 2014). Mohammadi (2015) in his study identified ease of use as a significant
influence and highlights its importance in mobile banking usage. Liébana, Munoz and Rejon
(2013) in their study of the influences of satisfaction with online banking recognized that ease
of use is a factor contributed to online banking practice. Convenience or ease of use was
concluded as the main independent variable among users living in urban area since they do
not have enough time to perform their financial transactions at bank branches. Furthermore,
this study revealed that people are willing to accept this technological transformation if the
practice of Internet banking can make their lives easier (Ong, Hong, Teh, Soh & Tan, 2014)
2.2 Perceived Usefulness
Here, perceived usefulness is defined as the extent to which a person feels that utilizing a
given system will improve their work performance. Perceived usefulness measures how much
a user values a piece of software or a piece of hardware relationship of performance. (Reepu
25may 2022) The perceived usefulness is an important antecedent of behavior, such as
consumer behavior and sharing behavior (Peng et al., 2019). This variable is taken from
Theory of Reasoned Action developed by Fishbein and Ajzen (1975), which is used
specifically for users of information systems or computers, and is equipped with a
Technology Acceptance Model (TAM) developed by Davis (1989). According to TAM, the
intentional behavior of a person to use technology is influenced by their perception of the
usefulness of the technology (Ozbek et al., 2015). TAM states that perceived usefulness
influences behavioral intentions (Abdullah et al., 2018). Perceived usefulness can be
interpreted as a subjective probability that illustrates whether a customer will adopt certain
technologies such as information systems, this can improve performance related to the
technology objects used. (Gong et al., 2004). From this definition it can be concluded that the
more useful a system will be the higher one's intention to use the system.

2.3 Trust
To put it another way, financial institutions may influence customer behavior by convincing
them that online banking is secure.(Reepu 2022)Perceived Trust is a complex and
multifaceted phenomenon that significantly impacts corporate relationships (Stewart and
Jürjens 2018; Jena 2023).Trust is a crucial factor in technology-related studies (De Visser et
al. 2016), particularly when people depend on technology (Ali et al. 2021)The fundamental
concernusers is to have a solid foundation of trust in all engagements, including the use of
finTech(Wu et al.2016 )

2.4 Perceived Risk

When considering the adoption of FinTech, consumers need to evaluate the Perceived Risks
associated with it. Ryu (2018a)Discusses Perceived Risks related to goods or services
discovered through research on the use and adoption of innovations. Since 1960, Perceived
Risk has been studied to determine its relationship with human behaviour (Damghanian et al.

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2016). Risk is an action that results in a choice with both positive and negative consequences
(Yang et al. 2015).Users’ attitudes toward risk can be expressed in various ways, such as
awareness of the potential harms associated with usage (Damghanian et al. 2016). Risk is
crucial in both safety and finance (Yang et al. 2015; Hansen et al. 2018; Hu et al. 2019).
FinTech has significantly increased the accessibility, virtualization, and remote transactions
of contemporary banking services, as well as real-time investment and the financial industry’s
reliance on information technology and the Internet (Jagtiani and John 2018; Brummer and
Yadav 2018; Anagnostopoulos 2018; Senyo and Osabutey 2020). Perceived risk has been
used to explain customer behavior since the 1960s (Forsythe and
Shi, 2003). For Bauer (1960), perceived risk is focused on a sense of loss. Dowling (1986,
p. 194) defined risk as “the situation where the decision maker has a priori knowledge of
both the consequences of alternatives and their probabilities of occurrence.”
However, technical flaws in Internet businesses can result in information technology risks
such as data theft, privacy invasion, and Internet site threats, which can lead to significant
financial losses for both consumers and businesses (Odinet 2017; Hinson et al. 2019; Arner et
al. 2016; Abdul-Rahim et al. 2022).The rapid rise of the FinTech industry has significantly
impacted traditional financial companies, resulting in changes in non-traditional financial
businesses’ terms, credit, income, and risk conversions (Dapp et al. 2014; Gomber et
al.2018; Buchak et al. 2018)(The risk aspects of the financial sector as a whole have also
been significantly altered (Zetsche et al. 2017). Perceived Risk is an important factor to
consider when examining the factors influencing FinTech adoption due to the risk
characteristics of financial products. Thakur and Srivastava (2014) found that people’s
perceptions of risk significantly impact the adoption of mobile payments, a finding further
supported by Slade et al. (2015). Perceived risk has been used to explain customer behavior
since the 1960s (Forsythe)

Shi, 2003).
Perceived risk has been used to explain
customer behavior since the 1960s
(Forsythe and
Shi, 2003).
Perceived risk has been used to explain
customer behavior since the 1960s
(Forsythe and
Shi, 2003)
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Perceived risk has been used to explain

customer behavior since the 1960s
(Forsythe and
Shi, 2003)
2.5 Attitude Towards the service
Attitude towards a service encompasses the overall perception and sentiment a customer
holds regarding the quality, responsiveness, and value provided by a particular service. It
reflects the customer's emotional and cognitive response, shaped by their experiences,
expectations, and interactions with the service provider. A positive attitude towards a service
implies satisfaction, trust, and a sense of fulfilment, often resulting in customer loyalty and
repeat business. Conversely, a negative attitude may stem from perceived shortcomings,
inadequate communication, or unmet expectations, potentially leading to dissatisfaction and a
reluctance to engage with the service in the future. Therefore, understanding and actively
managing the attitudes of customers towards a service is crucial for businesses aiming to
thrive in a competitive market.
2.6 Convenience
Another way that digital banking allows you to bank from anywhere is through digital
wallets. Digital wallets are mobile apps that allow you to store your credit and debit card
information securely on your smartphone. You can make purchases directly from your phone
without having to carry your physical cards with you. Some digital wallets also allow you to
make person-to-person payments or store loyalty cards.
2.7 Self-Reliance
Self-reliance is a philosophy and mindset that emphasizes an individual's ability to rely on
their own skills, resources, and inner strength to navigate life's challenges and achieve
personal goals. It encourages independence, resilience, and a proactive approach to problem-
solving. Practicing self-reliance involves cultivating a sense of confidence and self-trust,
making decisions based on individual judgment, and taking responsibility for one's actions
and outcomes. This concept, often associated with transcendentalist thinkers like Ralph
Waldo Emerson, promotes the idea that individuals have the capacity to shape their destiny
and contribute meaningfully to society when they cultivate a strong sense of self-reliance.

2.8 Brand Equity

Brand equity refers to a value premium that a company generates from a product with a
recognizable name when compared to a generic equivalent. Companies can create brand
equity for their products by making them memorable, easily recognizable, and superior in
quality and reliability. Mass marketing campaigns also help to create brand equity. (Adam
Hayes, Ph.D. October 27, 2023) Brand equity can be studied with the help of three different
aspects. i.e. Cognitive Psychology Perspective, Economics Perspective & Financial
Perspective. Cognitive Psychology Perspective is related with customer response to brand’s
marketing mix (Aaker 1991, Keller 1993)

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2.9 Behavioural Intention of Digital Banking Services

The behavioural intention of digital banking services refers to an individual's expressed
likelihood or inclination to use and continue using digital banking platforms. It encompasses
the customer's intention to engage with various online banking features, conduct financial
transactions, and interact with banking services through digital channels. Factors influencing
behavioural intention include perceived ease of use, perceived usefulness, security
perceptions, and overall user experience. Positive experiences with digital banking services,
seamless navigation, and efficient functionalities contribute to a favourable behavioural
intention. Additionally, factors such as trust in the technology, perceived benefits, and social
influence play significant roles in shaping users' intentions towards adopting and persisting
with digital banking services. Financial institutions often aim to enhance these factors
through user-friendly interfaces, robust security measures, and continuous innovation to
encourage and reinforce positive behavioural intentions among their customer base.

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2.10 Research Proposed Model

Perceived Ease of
Use

Perceived
Usefulness

Trust

Perceived Risk Brand Equity Behavioural

Intention of
Digital
Banking
Attitude Towards the Services
Service

Convenience

Self-Reliance

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2.11 Research Hypotheses

H1: Perceived Ease of use has positive impact on Brand Equity
H2: Perceived Usefulness has positive impact on Brand Equity
H3: Trust has positive impact on Brand Equity
H4: Perceived Risk has positive impact on Brand Equity
H5: Attitude Towards the service has positive impact on Brand Equity
H6: Convenience has positive impact on Brand Equity
H7: Self-Reliance has positive impact on Brand Equity
H8: Brand Equity has positive impact on Behavioural Intention on Digital Banking

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CHAPTER -03
An Overview of
Al-Arafah Islami
Bank PLC

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3.1 Overview of AIBL

With the objective of achieving success here & hereafter by pursuing the way directed by
Allah and the path shown by His Rasul (SM), Al Arafah Islami Bank PLC. was established
(registered) as a private limited company on 18 June 1995. The inaugural ceremony took
place on 27 September 1995. The authorized capital of the Bank is Tk.15000.00 million and
the paid up capital is Tk. 10649.02 million as on 31.12.2021. Renowned Islamic Scholars and
pious businessmen of the country are the sponsors of the Bank. 100% of paid up capital is
being owned by indigenous shareholders.
The equity of the bank stood at Tk. 2348.32 crore as on 31 December 2018, the manpower
was 4247 as on 31 December 2021 and the number of shareholders was 19146 as on 31
December 2021. It has achieved a continuous profit and declared a good dividend over the
years. High quality customer service through the integration of modern technology and new
products is the tool of the bank to achieve success. The bank has a diverse array of carefully
tailored products and services to satisfy customer needs.
The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio-economic development of the country with 211
branches of which 25 is AD throughout the country.

3.2 Mission
 Achieving the satisfaction of Almighty Allah both here & hereafter.
 Proliferation of Shariah Based Banking Practices.
 Quality financial services adopting the latest technology.
 Fast and efficient customer service.
 Maintaining high standard of business ethics.
 Balanced growth.
 Steady & competitive return on shareholders’ equity.
 Innovative banking at a competitive price.
 Attract and retain quality human resources.
 Extending competitive compensation packages to the employees.
 Firm commitment to the growth of national economy.
 Involving more in Micro and SME financing.
3.3 Vision
To be a pioneer in Islami Banking in Bangladesh and contribute significantly to the growth of
the national economy.
3.4 Objective of AIBL
The objectives of AIBL are not only to earn profit but also to do good for the people and
society. The main objective of AIBL are given down below:
 Al-Arafah Islami Bank Limited believes in its uncompromising commitment to fulfil
its customer needs and satisfaction and to become their first choice in banking. The
bank was made to run all its activities by the light of Islamic Shariah. Its steady
progress has earned lots of reputation that made AIBL one of the leading private
banks in Bangladesh.
 It aims to reduce a welfare-oriented banking system and also establish equity and
justify in the field of all economic activities.
 Investment is formed through different mode permitted under Islamic Shariah.

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 All the activities of AIBL are conducted on interest-free system according to Islamic
Shariah.
 It plays an important role in human resource development and employee generation,
particularly for the unemployed generations.
 Investment income of bank is shared with Mudaraba depositors, according to ensure a
reasonably fair rate of return on their depositors.
 It aims to achieve balanced growth and development of the country through
investment operation, particularly in the less developed areas.
 It extends co-operative to the poor, helpless, and the low incomed group of people for
their economic enlistment particularly in rural areas.

3.5 Core values

The core values are tye basic elements of how we go on about our work. The core values
of AIBL is given down below:
 Trust in Almighty Allah.
 Strict observances of Islamic Shariah.
 Highest standard of Honesty, Integrity and Moral.
 Welfare Banking.
 Equity service.
 Environment consciousness.
 Personalized services.
 Adoption of changed Technology.
 Proper Delegation, Transparency and Accountability

3.6 commitments
 Ours is a customer focused modern Islamic Banking with sound and steady growth in
both deposit mobilization and making quality Investment to keep our position intact as a
leading Islami Bank in Bangladesh.
 To deliver financial services with the touch of our heart to retail, small and medium scale
enterprises, as well as corporate clients through our branches across the country.
 To always align our business initiatives with the ever changing industrial and business
needs of the clients.
 To deliver product and services that creates value for the customers.
 To conduct our business within well-defined risk tolerance level.

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3.7 Function of AIBL

 The banks investment policy follows different modes approved by Islamic shareah based
on Quaran & Sunnah.
 All activities of the bank are conducted according to Islamic shariah where profit is the
legal alternative to interest.
 The bank is committed towards establishing welfare-oriented banking system, economic
upliftment of the law- income group of people, create employment opportunities.
 According to the needs and demands of the society and the country as a whole the bank
invests money to different halal business. The bank participates in different activities
aiming at creating jobs, implementing development projects taken by the government and
developing infrastructure.
 To render improved services to the clients imbued with Islamic spirit of brotherhood,
peace and fraternity and by developing an institutional cohesion.
 The bank is contributing to economic and philanthropic activities side by side. Al-Arafah
English Medium Madrasah and AIBL Library are among mention worthy.

3.8 SWOT analysis

Strengths

 Banking Software: ABABIL, AIBL's Islamic banking software, ranked eighth

globally.
 Geography AIBL has many branches throughout Bangladesh.
 The bank has 148 branches in 7 Bangladeshi divisions.
 AIBL has customer loyalty. Customers of AIBL are loyal.
 Bangladeshi banks must have 10.62% capital adequacy. AIBL averages 14.4% CAR
year-round.

Weakness

 Centralized Management: In AIBL, the top authority makes all major decisions
without consulting subordinate management.
 AIBL non-performing loans increased during the year.
 Understaffing in AIBL's GB and Remittance divisions upsets consumers at rush hour.
 Windows XP runs most AIBL machines.
 Lack of ATM booths: AIBL's ATM services are unsatisfactory due to a lack of ATM
booths in Bangladesh.

Opportunities

 AIBL can improve customer service by following Islamic Shariah. It could

modernize Islamic banking in Bangladesh.
 AIBL, a famous Bangladeshi Islami bank, needs more ATM booths despite rising
client demand.

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 Internet banking: As Bangladesh's internet develops, AIBL may offer its clients e-
banking, enhancing its potential.
 Market Entry: AIBL can enter new markets with Islamic-compliant products and
services.

THREATS

Threats are negative external environmental factors of AIBL. The threats limns obstacles for
the bank in its future growth and also liable for losing the level of customer satisfaction. The
threats are given down below:

 Increasing number of Islamic bank and conventional banks is a threat for AIBL.
 Other commercial banks are also offering Islamic Banking.
 Scarcity of customer awareness regarding Islamic Banking is a threat for AIBL.
 Inflation affects are hampering profits of AIBL.
 Innovative competitor activities.
 The rates of profit attenuate due to use 9% profit Quota.
 Vagueness of banking industry.
 AIBL is losing customers for increasing similar types of private commercial banks
 Other banks has better technology for customer service than AIBL.
 Continuously changing technology.
 There are many restrictions for many rules and regulations from Bangladesh bank.
 Possible dud of products if customers do not accept it.

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3.9 Corporate Information of AIBL:

AIBL has come a long way since its registration. Some information like the date of
registration, the first ever branch of AIBL, amount of deposit, investment, equity,
shareholders, paid-up capital and number of branches are collected. The corporate
information of AIBL is given down below:

Date of Registration 18th June, 1995

1st Branch Motijheel Branch, Dhaka
Opening Ceremony 27th September, 1995
Chairman Alhajj Abdus Samad Labu
Vice Chairman Alhajj Abdus Salam
Local Partnership of capital 100%
Equity 24,148.21 Million
Authorized capital 15,000.00 Million
Deposit 297,241.81 Million
Investment 288,486.02 Million
Paid-up capital 10,649.02 Million
Number of outstanding Securities 1,064,902,185

Number of Shareholders 24,276

Number of Branches 184 Branches
Rural Branches 100 Branches
City Branches 84 Branches

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3.10 Product of AIBL as an Islamic Bank

The AIBL offers their customers general banking facilities which ensure the safety of their
money. Following are the ways through which banks collects their deposits from the clients:

1.Al- Wadeeah Current Deposit (CD)

2.Mudaraba Term Deposit (MTDR)

a. 36 Months

b. 24 Months

c. 12 Months

d. 06 Months

e. 03 Months

f. 01 Month

1. Mudaraba Savings Deposit (MSD)

2. Short Notice Deposit (SND)
3. Monthly Hajj Deposit
4. Monthly Installment Term Deposit (ITD)
5. Monthly Profit Based Term Deposit (PTD)
6. Monthly Savings Investment (SID)
7. One Time Hajj Deposit
(a) Al-Arafah Savings Bond (3 Years)
(b) Al-Arafah Savings Bond (5 Years)
(c) Al-Arafah Savings Bond (8 Years)
8. Marriage Saving Investment Scheme (MSIS)
9. Pensioners deposit scheme
10. Special Saving (Pension) Scheme
11. Cash WAQF
12. Lakhopati Deposit Scheme
13. Kotipati Deposit Scheme
14Millionaire Deposit Scheme
15.Double Benefit Scheme
16 Triple Benefit Deposit Scheme
17 Interest-bases banks receive different kinds of term deposits from the depositors. The
deposits are generally for 3 months, 6 months, 9 months, one years, 2 years or 3 years,
and the bank pays a stated interest rate on each of these deposits, which varies
depending on the term. In general, the bank pays a higher rate of interest the Probashi
Kallyan Deposit Pension Scheme
18 Mudaraba Savings Deposit-Student,
19 Farmers, Freedom fighters

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Al- WADEEAH CURRENT DEPOSIT (CD)

Al-Arafah Islami bank Limited receives deposits in their Al- Wadeeah current account.
Usually business people runs Al- Wadeeah current account customers can deposit and
withdraw money, whenever they want. In this account, there is no restriction of withdrawing
money. But in Al- Wadeeah current account customers do not get any profit. Bank with take
some money as service charge.
MUDARABA SHORT NOTICE DEPOSIT (MSD)
Short notice deposit account customers can deposit and withdraw money any time whenever
they want. But there is a restriction in withdrawing money. They have to inform the manager
if they want to withdraw big amount. Like Mudaraba Savings deposit account the customer’s
get profit here. This profit is given every year at a predefined rate of last year.
MUDARABA SAVINGS DEPOSIT
Al-Arafah Islami bank Limited also receives deposits by Mudaraba Savings Deposit. General
people run this accounts. In Mudaraba Savings Deposit account customers can deposit money
any time whenever they want. But they cannot withdraw money whenever they want, there is
some restriction. Customers can withdraw money two times in a week and ten times in a
month. But if they want to withdraw any big amount they have to give notice to the manager.
It bank earn any profits the depositors will get at a predetermined percentage and the bank
retains the residual amount as its profit.

MUDARABA TERM DEPOSIT (MTDR)

Longer the term of the deposit and lower rates for shorter time periods. In addition, a higher
rate of interest is generally paid on term deposits than on saving deposits. Depositors are not
generally allowed to withdraw money from a term deposit until the term matures. Premature
withdrawal may result in penalties in excess of the interest earned, resulting in a negative
return, once a time deposit matures, the depositor may wish to reinvest for new term.

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CHAPTER -04
RESEARCH
METHODOLOGY

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4.1 Research Design

Generally, most of the people are not interested to provide time to give the answer properly
on the So it was very difficult to collect data because the information of the respondents was
collected by approaching them to answer the question. And the respondents are bore and
hesitate to provide the answer. To overcome the problem, we about collect the proper
information by face-to-face interview methods.
4.2 Sampling Technique
The study has flowed descriptive research procedure. The primary data has been collected
from transportation's customer. It has been followed direct personal interview method. The
study involved a field survey conducted across at Chattogram in Bangladesh. The
respondents have been collected data from home, office, and other institutes etc.
4.3 Survey Instrument
The questionnaire has three types, first part contains name, age, occupation, education
income and address. These questions provide the basic information about respondents, second
part five independent variables such as Tangible, Reliability, Responsiveness. Assurance.
Empathy and third part contain such as two dependent variables such as Customer
satisfaction and Customer loyalty.
The study has been used 7 point Like Scale here:

 1-Strongly Disagreed
 2-Somewhat Disagreed
 3-Disagreed
 4-Neutral
 5-Agreed
 6-Some What Agreed
 7- Strongly Agreed

4.4 Data Analysis Tools

 Frequency Analysis
 Descriptive Statistics
 Correlation Analysis
 Reliability Analysis
 Regression Analysis

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CHAPTER-05
DATA
ANALYSIS

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5.1 Demographic Discussion

Table:1 Gender
Frequency Percent
Male 66 66
Female 34 34
Total 100 100

33%
Male
50% Female
Total

17%

Analysis: There are 66% Male respondent and 34% Female Respondent.

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Table:2 Duration of the Relationship with Digital Banking

Frequency Percent
Below
57 57
5 Years
5-10
25 25
Years
Above
10 18 18
Years
Total 100 100

Chart Title

Below 5 Years
28% 5-10 Years
Above 10 Years
50% Total

13%
9%

Analysis: There are below 5 years 57%, 5-10 years 25% and Above 10 years 18%
Relationship with Digital Banking.

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Table:3 Age

Frequency Percent

Less than 20 years 5 5.0

20 years to less than 30 years 75 75.0

30 years to less than 40 years 9 9.0

40 years to less than 50 years 10 10.0

50 years to less than 60 years 1 1.0

Total 100 100.0

Age
120

100

80

60

40

20

0
Less than 20 20 years to less 30 years to less 40 years to less 50 years to less Total
years than 30 years than 40 years than 50 years than 60 years

Series1 Series2

There are less than 20 years 5%, 20 years to less than 30 years 75%, 30 years to less than 40
9% and 40 years to less than 50 years 10%, 50 years to less than 60 years 1% Ages people
use Digital Banking.

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Table:4 Education
Frequency Percent

SSC Completed 1 1.0

HSC Completed 18 18.0

Under Graduation Completed 32 32.0

Graduation Completed 32 32.0

Post-Graduation Completed 16 16.0

Others 1 1.0

Total 100 100.0

Education
Total

Others

Post-Graduation Completed

Graduation Completed

Under Graduation Completed

HSC Completed

SSC Completed
0 20 40 60 80 100 120

Series2 Series1

There are 1% participants completed SSC, 18% participants completed HSC,32% participants
completed Under Graduation,32% participants Graduation Completed,16% Post-Graduation
Completed and 1% others participants.

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Table:5 Occupation
Frequency Percent

Students 46 46.0

Govt. Organization 2 2.0

Private Company 12 12.0

Housewife 18 18.0

Others 22 22.0

Total 100 100.0

Occupation
120

100

80

60

40

20

0
Students Govt. Organization Private Company Housewife Others Total

Series1 Series2

In this survey, the percentage of the occupations of the participations are 46% Students, 2%
Government organization, 12% Private company,18% Housewife and 22% Others belongs to
other occupation.

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Table:6 Family Income

Less than taka 80,000 32 32.0

Taka 60,000 to less than taka 80,000 23 23.0

Taka 80,000 to less than taka 100,000 14 14.0

Taka 100,000 to less than taka 1,20,000 12 12.0

Taka 1,20,000 to less than taka 1,40,000 4 4.0

Taka 1,40,000 or above 15 15.0

Total 100 100.0

Family Income
120

100

80

60

40

20

0
Less than taka Taka 60,000 to Taka 80,000 to Taka 100,000 to Taka 1,20,000 Taka 1,40,000 Total
80,000 less than taka less than taka less than taka to less than or above
80,000 100,000 1,20,000 taka 1,40,000

Series1 Series2

Analysis: The Family Income of the participants belongs to different figures. 32% earn less
than TK. 80,000, 23% earn TK. 60,000 to less than TK. 80,000, 14% earn TK. 80,000 to less
than TK. 1,00,000, 12% earn TK. 1,00,000 to less than 1,20,000, 4% earn TK. 1,20,000 to
less than TK. 1,40,000.15%TK.1,40,000 above.

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Descriptive Analysis
N Minimum Maximum Mean

Average of Perceived Ease of Use 100 3.25 7.00 5.7550

Average of Perceived Usefulness 100 3.50 7.00 5.9650

Average of Trust 100 4.00 7.00 5.5775

Average of Attitude Towards the 100 4.00 7.00 5.7925

Service

Average of Convenience 100 4.00 7.00 5.9200

Average of Self-Reliance 100 4.33 7.00 5.7367

Average of Brand Equity 100 4.00 7.00 5.5633

Average of Behavioural Intention of 100 3.80 7.00 5.7760

Digital Banking Services

Valid N (listwise) 100

Analysis: Descriptive statistic of means and standard deviations were obtained from the
independent and dependent variables. It shows the summary of descriptive statistics. A 7-
point Likert scale (1= strongly disagree to 7 strongly agree) is used to measure the variables
of study. This indicates that respondents are satisfied the bank. Further, Perceived Ease of
Use (5.7550) Perceived Usefulness (5.9650) Trust (5.5775), Attitude Towards the Service
(5.7925). Convenience (5,9200). Self-Reliance (5,7367) Brand Equity (5.5633) Behavioural
Intention of Digital Banking Services (5.7760) Overall mean up to 6 is indicating that bank
customers are satisfied by the Digital Banking services.
.

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Correlations Analysis

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Reliability Analysis

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Regression Analysis

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ANOVA

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Coefficient

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Analysis:

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Chapter-6
Findings,
Recommendations
and Conclusion

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Findings
During the three months of internship at Al Arafah Islami Bank PLC, Aman Bazar Branch, an
in-depth study was conducted to assess customer satisfaction with the online banking services
provided by the bank. The findings of the study are presented below:
 Online Banking Adoption: It was found that a significant portion of the bank's
customers have adopted online banking services. Around 80% of the customers have
registered for online banking, indicating a positive trend towards digital banking.
 Ease of Registration: The majority of customers reported that the registration process
for online banking was straightforward and user-friendly. The step-by-step
instructions provided by the bank helped customers navigate through the process
without any major difficulties.
 User Interface and Navigation: The study revealed that the user interface of the online
banking platform was intuitive and easy to navigate. Customers appreciated the clear
layout and organization of various features, which made it convenient for them to
perform banking transactions.
 Transaction Processing: Customers expressed satisfaction with the speed and
efficiency of transaction processing through online banking. Most transactions, such
as fund transfers and bill payments, were executed smoothly without any delays or
errors.
 Security Measures: The study found that customers valued the robust security
measures implemented by the bank for online banking. Features such as two-factor
authentication and encryption protocols were highly appreciated, as they instilled
confidence among customers regarding the safety of their financial information.
 Customer Support: Although most customers reported a smooth online banking
experience, there were a few instances where they faced challenges or had queries.
The study revealed that the customer support provided by the bank was responsive
and helpful in resolving issues promptly.
 Mobile Banking: A significant number of customers expressed their preference for
mobile banking applications over web-based online banking. They found the mobile
banking app more convenient, accessible, and user-friendly, allowing them to perform
banking activities on-the-go.
 Suggestions for Improvement: Some customers provided suggestions for enhancing
the online banking services. The most common suggestions included adding more
features like investment portfolio management, introducing a chatbot for instant
support, and improving the responsiveness of the mobile banking app.
Based on the findings, it can be concluded that the online banking services offered by Al
Arafah Islami Bank PLC, Aman Bazar Branch, are generally well-received by customers. The
bank has succeeded in providing a user-friendly and secure platform for customers to carry
out their banking activities online. However, there is still room for improvement, particularly
in terms of expanding the range of services offered and further enhancing customer support.
Implementing the suggested improvements would help the bank strengthen customer
satisfaction and attract more customers towards online banking.

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5.2 Recommendation
Based on the findings of the study on customer satisfaction with the online banking services
of Al Arafah Islami Bank PLC, Aman Bazar Branch, the following recommendations are
provided:
1. Expand Service Offerings: To cater to the diverse needs of customers, it is recommended
that Al Arafah Islami Bank PLC considers expanding its online banking service
offerings. This could include features such as investment portfolio management, loan
applications, and personalized financial planning tools. By providing a comprehensive
range of services, the bank can enhance customer satisfaction and encourage greater
adoption of online banking.
2. Enhance Mobile Banking App: As customers expressed a strong preference for mobile
banking applications, it is essential for Al Arafah Islami Bank PLC to continuously
improve its mobile app. The bank should focus on enhancing the app's responsiveness,
user interface, and functionality. Regular updates and bug fixes should be provided to
ensure a smooth user experience and maintain customer satisfaction.
3. Improve Customer Support Channels: While the overall customer support provided by
the bank was satisfactory, there is room for improvement. Introducing a chatbot or
virtual assistant on the online banking platform or mobile app can provide instant
support and address common customer queries. Additionally, the bank should ensure that
customer support agents are well-trained and equipped to handle more complex issues
efficiently.
4. Regular Security Audits: To maintain customer trust and confidence in online banking
services, Al Arafah Islami Bank PLC should conduct regular security audits. These
audits should assess the effectiveness of security measures in place, identify
vulnerabilities, and implement necessary updates to protect customer information.
Regular communication with customers regarding the security measures adopted by the
bank can also help alleviate any concerns they may have.
5. User Education and Awareness: Many customers may not be fully aware of all the
features and functionalities offered by the online banking platform. It is recommended
that Al Arafah Islami Bank PLC invest in user education and awareness programs to
familiarize customers with the various capabilities of online banking. This can be done
through tutorials, webinars, and informative articles on the bank's website or mobile app.
6. Gather Customer Feedback: Al Arafah Islami Bank PLC should establish a systematic
process for collecting customer feedback on their online banking services. This can be
done through surveys, feedback forms, or interactive features within the online banking
platform. By actively seeking customer input, the bank can identify areas for
improvement and address any specific concerns or suggestions raised by customers.
7. Regular Performance Monitoring: It is crucial for the bank to continuously monitor the
performance and reliability of the online banking system. Regular checks should be
conducted to ensure that the platform is functioning optimally, transactions are processed
efficiently, and any technical issues are promptly resolved. This proactive approach will
help maintain high customer satisfaction levels and minimize disruptions in service.
By implementing these recommendations, Al Arafah Islami Bank PLC can further enhance
customer satisfaction with its online banking services. These improvements will not only

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strengthen the bank's position in the digital banking landscape but also contribute to long-
term customer loyalty and retention.
5.3 Conclusion

The three-month internship at Al Arafah Islami Bank PLC, Aman Bazar Branch, focused on
assessing customer satisfaction with the online banking services provided by the bank. The
findings of the study highlighted several positive aspects of the online banking experience,
while also identifying areas for improvement.
Overall, it was evident that a significant number of customers have embraced online banking
services, with the majority finding the registration process straightforward and user-friendly.
The user interface and navigation of the online banking platform were well-received by
customers, enabling them to perform banking transactions with ease. The speed and
efficiency of transaction processing were also commendable, contributing to customer
satisfaction.
The robust security measures implemented by the bank were highly appreciated by
customers, instilling confidence in the safety of their financial information. The customer
support provided by the bank was responsive and helpful in resolving any issues faced by
customers, ensuring a smooth online banking experience.
While the online banking services offered by Al Arafah Islami Bank PLC received positive
feedback, there were areas identified for improvement. Customers expressed a preference for
mobile banking applications, indicating the need for further enhancements to the mobile app's
responsiveness and user interface. Expanding the range of services offered, such as
investment portfolio management, and improving customer support channels were also
recommended to enhance customer satisfaction.
To maintain and strengthen customer satisfaction, Al Arafah Islami Bank PLC should
regularly conduct security audits, invest in user education and awareness programs, and
establish a systematic process for gathering customer feedback. Additionally, monitoring the
performance and reliability of the online banking system will help ensure a seamless and
uninterrupted banking experience for customers.
In conclusion, Al Arafah Islami Bank PLC has made significant strides in providing a user-
friendly and secure online banking platform. By implementing the recommended
improvements, the bank can further enhance customer satisfaction, attract more customers to
online banking, and solidify its position as a leading provider of digital banking services.
Continuous efforts to meet customer expectations and adapt to evolving technological
advancements will be key to sustaining a high level of customer satisfaction in the ever-
changing landscape of online banking.

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Reference
Islam M. A., Siddiqui M. H., Hossain K. F. & Karim L. (2014). Performance
Evaluation of the Banking Sector in Bangladesh: A Comparative Analysis. Retrieved
(December 31, 2013)
http://www.macrothink.org/journal/index.php/ber/article/view/4672

Board of Investment (BOI), Business Law, the Company Act (1994), 18 of 1994. Retrieved
(October 01, 1995)
http://boi.gov.bd/components/com_businesslaws/attach/Companies%20Act
%201994.pdf

Regulation Guideline (2022), Bangladesh Bank. Retrieved (September 16, 2022)

http://www.bangladesh-bank.org/aboutus/regulationguideline/aml/
16sep2022guideline.pdf

Annual Report (2021), Al Arafah Islami Bank PLC Retrieved (May 14, 2021)
https://www.aibl.com.bd/wp-content/uploads/2022/08/AIBL-Annual-Report-2021-
Final-Edited.pdf
Annual Report (2020), Al Arafah Islami Bank PLC Retrieved (May 14, 2020)
https://www.aibl.com.bd/download/financial-statement/Annual-Report/2020.pdf

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