REPORT ON CREDIT CARD OPERATIONS

ITS PROBLEMS & SUGGESTIONS

COURSE :

OPERATION MANAGEMENT

SUBMITTED BY:

SYED MUHAMMAD ALI HUSSAINI

MUDDASIR ANWER

COURSE SUPERVISOR:

MR MAJID QURESHI

DEPARTMENT OF PUBLIC ADMINISTRATION,UNIVERSITY OF KARACHI

 ACKNOWLEDGMENT

Our first and foremost humble and gratitude to “ALLAH” the almighty
for giving me the valor to remain dedicated to make this report. Apart
from it we take the opportunity to acknowledge the real efforts of: first,
we would like to thank Sir Majid Qureshi, for his valuable support and
encouragement which he has offered. His words of wisdom will always
be remembered, and we are convinced that the knowledge of operation
management that he has imparted would go a long way and helping us
all through our professional career. Secondly to Bank Alfalah, they have
provided us with valuable information which helped us a lot in
completion of this project.

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 COMPANY BACKGROUND AND
INTRODUCTION

Bank Alfalah Limited was incorporated in June 21st, 1997 as a public limited
company under the Companies Ordinance 1984. Its banking operations
commenced from November 1st, 1997. The bank is engaged in commercial
banking and related services as defined in the Banking companies ordinance
1962. The Bank is currently operating through 45 branches in 21 cities, with
the registered office at B.A.Building, I.I. Chundrigar, Karachi.

Since, its inception as the new identity of H.C.E.B after the privatization in
1997, the management of the bank has implemented strategies and policies to
carve a distinct position for the bank in the market place. Strengthened with
the banking of the Abu Dhabi Group and driven by the strategic goals set out
by its board of management, the Bank has invested in revolutionary
technology to have an extensive range of products and services. This facilitates
their commitment to a culture of innovation and seeks out synergies with
clients and service providers to ensure uninterrupted services to its customers.

The bank perceived the requirements of customers and matches them with
quality products and service solutions. During the past five years, bank has
emerged as one of the foremost financial institution in the region endeavoring
to meet the needs of tomorrow as well as today. To continually upgrade the

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quality of service to the customers, training of team members in all the integral
aspects of banking, customer service and IT was specially focused.

The portfolio concentrates on all aspects of conventional banking as well as the

financial needs of corporate sector. Dynamic and high value product includes
Car Financing, Home Financing, Rupee Travellers Cheques, Credits Cards, Debit
Cards, On line Banking, ATM and consumer Durables. In addition to this,
Islamic Banking Division is a recent initiative, which operates as separate
branch. It offers Shariah Compliant products through a network of five
branches, which will increase to 50 by the year 2007.

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ORGANIZATIONAL OVERVIEW

- VISION
To inspire and empower people to do things differently and
shape their own path in life and business.

- Mission
We look at the market with fresh eyes to find new
opportunities,
and seek new ways of enabling our customers to succeed
and advance the world of finance.

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-Board of Directors
 H.H. Sheikh Hamdan Bin Mubarak Al
Nahayan – Chairman
 Abdulla Nasser Huwaileel Al-Mansoori –
Director
Abdulla Khalil Al Mutawa – Director
 Khalid Mana Saeed Al Otaiba – Director
 Mr. Kamran Y. Mirza – Director
 Atif Bajwa – Director & CEO
 Mr. Eftratios Georgios Arapoglou – Director
Mr. Khalid Qurashi – Director

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- Management

S.A.A. Masrur – Country Head

Muhammad Ehsan Ul Haq Qureshi – Country

Operations Head

Muhammad Imran – Country Credit Head

Abu Noyem Md. Khasru – Head of Finance &

Admin.

Md. Mushfiqur Rahman – Head of Retail

Sadiquzzaman Khan – Head of Treasury

Galib Hamid Protik – Head of Compliance

Md. Taslimul Haque – Head of Information

Technology

Z.M. Masir Bin Quddus – Head of CAD

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-Functions

 Personal Banking
 Corporate and Investment Banking
 Treasury and Institutional Banking
 Business Banking
 Branchless Banking
 Self Service Banking
 Islamic Banking

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INDUSTRY ANALYSIS:
If we see the banking Industry in Pakistan, the overall industry is at the
maturity stage. The whole world is passing through the economic crisis, which
has affected the banking industry, the most. Many famous banks around the
world got bankrupted. That’s why the overall industry is at the maturity stage.

COMPANY LIFECYCLE:
Bank al-Falah is in Growth stage of the company life cycle. The reason behind
this is that it was launched in Pakistan in 1997 and from that date onward it is
progressing and achieving its aims and because of that it is in growth stage.

The overall banking industry in Pakistan is at maturity stage, because of the

recent economic crisis and the current economic conditions of Pakistan.

EXTERNAL ENVIRONMENTAL
ANALYSIS:

The external environment of Bank Al-Falah includes their external customers

and competitors etc. The country forces affecting the environment e.g. Political
forces, Economic forces, Socio-cultural forces, and Technological forces are the
part of the external environment.

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PIOLITICAL FACTORS:
Political factors in any countries affect the organizations and institutions
greatly. If there is a stable political environment, the organizations flourish
successfully but if there is instability in political environment, then there is a
bad effect on all institutions and organizations. If we look Bank Al-Falah with
the aspect of political environment, there are some rules made by the
government to follow. A regulatory approval is necessary from the State Bank
of Pakistan in order to launch a bank. Further more there is a requirement of
State Bank of Pakistan that the paid up capital of Bank Al- Falah should be Rs
10 billion by 2010, Rs 13 billion till 2011 and Rs 23 billion by 2013.

ECONOMIC FACTORS:
As we know the economic conditions of the country at the current is not so
good, and there was a huge economic crisis recently which affected many
banks. Bank Al-Falah should consider short term and long term issues
concerning economy of the country. It is obvious that with the current situation,
Bank Al- Falah like many other banks are being affected by the challenges like
inflation, unemployment and economic crisis.

SOCIO-CULTURAL FACTORS:
Every country has its own social values and cultures. Bank Al-Falah is doing
good by keeping in mind the cultural values of Pakistan. As we can see from its
advertisements that it reflects the true cultural and social values. And by doing
this, Bank-Al Falah is attracting a great deal of customers. Because it is natural
that when some organization takes care of customer’s social and cultural values,
then the customers are naturally attracted towards that particular organization.
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TECHNOLOGICAL FACTORS:
The technology plays a very important role in today’s successful organization.
Bank Al-Falah is doing good in introducing technologies as and when required
by the Bank. Further it trains the employees to use those technologies

COMPETITIVE ADVANTAGE
Bank Al-Falah has some competitive advantage over its competitors, like

 Superior services: Bank Al-Falah provides superior and quality services

to its customers by taking care of their needs. Bank al- Falah works hard
to maintain its customer loyalty. Bank al- Falah targets every type of
customer in the society.
 Turn around time of 48 hours: This means that the when the customer
complains for any problem, to the bank, The Bank Al-Falah tries to fix
tries at problem within 48 hours. This is another competitive advantage
for Bank al-Falah.
 No annual fee for the credit cards: Bank Al- Falah don’t charge any
annual fee for the credit cards . Where as other banks charge this fee.
 Number one portfolio in Pakistan: This means that Bank Al- Falah offers
a wide variety of products and services as compared to other banks.

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BRANCH NETWORKS
The bank is currently operating through 648 branches (as on December 30,
2017) including 480 Conventional, 157 Islamic Banking and 11
Overseas/International branches in Afghanistan, Bangladesh and Bahrain, with
the registered office at B.A.Building, I.I.Chundrigar, Karachi. Some of the main
branches are located in all of the major cities
including: Chakwal, Hyderabad, Kasur, Lahore, Abbottabad, Islamabad, Gawad
ar, Peshawar, Faisalabad, Quetta, D.I.Khan, Rawalpindi, Sargodha, Sheikhupura
, Sukkur, Sialkot, Multan, Murree, Jhelum, Attock District, Gujranwala, Mirpur
Khas, Lodhran, D.G.Khan, Mian
Channu, bahawalnagar, bahawalpur, Sahiwal, Khanewal, Swabi and Many
Other Cities all over Pakistan...

PRODUCTS AND SERVICES:

With the mission to provide all-encompassing banking services to the
customers, Bank Alfalah has a uniquely defined menu of financial products.
Currently it is one of the most comprehensive portfolios of personalized
financial solutions that are custom-tailored to serve the requirements not only of
conventional customers but also fulfill the needs of the corporate sector:

 Car Financing
 Rupee Travellers Cheques
 Online Banking
 Credit Cards
 ATMs
 Home Financing
 Islamic Banking
 Corporate and Structured Financing

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CAR FINANCING

Car Financing is one of the major renowned product of Bank Alfalah and can be
utilized in terms of Financing of Used Vehicles, Loan against Car, Balance
Transfer Facility, Refinancing Facility (only for Alfalah Customers) and it is
characterized in terms of:

 Lowest Mark up

 Lower Insurance

 Quick Processing

 Lower Down Payment

HOME FINANCING

Major features of Bank Alfalh Home Financing are Lowest Mark-up, Quick
Processing, Multiple Repayment Options and Free Valuation. It has been
bifurcated in terms of “Home Buyer, Home Construct, Home Improver, Home
Balance Transfer Facility”.

 Financing Limit : upto Rs. 10,000,000/-

 Tenure : upto 20Years

 Equity Participation : 30% Borrower / 70% Bank

RUPEE TRAVELERS CHEQUES

Rupee Travelers Cheques are as good as cash and are accepted at the major shops,
travel agents, hotels business establishments and all over the country and abroad.
This service is being offered to facilitate instant fund availability to travelers and
business people who used to carry a large sum of money with them.

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CREDITS CARDS

Bank Alfalah Visa Card is everywhere and globally accepted and welcomed at
locations displaying the VISA logo. It is accepted at nearly 30 million
merchants and 870,000 ATMs in more than 150 countries around the globe and
over 10,000 establishments in Pakistan. Alfalah VISA pays for shopping, travel,
entertainment, meals and much more.

DEBIT CARDS

Bank Alfalah Limited presents Alfalah HilalCard, the first Visa Electron
International Debit Card which gives an unlimited access to current / savings
account with a simple swipe, at millions of retail shops and ATMs, worldwide.
The Alfalah Hilal Card comes with a host of conveniences and benefits
combined with the wide reach of Visa Network enabling it to be accepted at
more than 840,000 ATMs and 13 million retail outlets around the world,
making it the most acceptable Debit Card available in Pakistan.

ON LINE BANKING

To provide enhanced and value added products to customer bank is constantly

striving for additional facilities. Bank provide fully automated on-line telephone
banking facilities to its customers enabling them to carry out banking
transactions like balance inquiries, statement requests, product information and
exchange rate.

AUTOMATED TELLER MACHINE (ATM)

The bank offers 24 hours self service banking facilities to it customers on

country wide basis through deployment of Automated Teller Machine. This
system allows the banking facilities such as cash withdrawls, cash deposits,
funds transfer, balance inquiries, account statements. Electronic cash
dispensing facilities are available in major cities of Pakistan. All ATMs are

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linked through a state-of-the-art Satellite Based Communication System which
offers 24 hours real time service.

ISLAMIC BANKING

A separate division is a recently initiated, which operates as separate branch. It

offers Shariah Compliant products through a network of five branches, which
will increase to 50 by the year 2007. Islamic Banking has launched following
products with the perception that these are in accordance with the Sharia
Principles.

 Alfalah Masharaka Homes

 Murabaha Finance
 Aflalah Car Ijarah

CORPORATE AND STRUCTURED FINANCING

The portfolio concentrates on all aspects of conventional banking as well as the

financial needs of corporate sector including dynamic and high value product.

 Loaning against securities

 Letter of Credit

 Letter of Guarantee

 Demand Finance

 Cash Finance

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 CREDIT CARD
All credit cards work essentially the same way and serve the same purpose, but
differ in terms of interest rates, fees, penalties, rewards, and other benefits. Not
all credit card offers are created equal, so make sure you’ve done your research
and understand the conditions before you apply.

Bank Alfalah chip based credit cards open up a world of lifestyle privileges and
financial freedom that allow its customers to enjoy living life today – just the
way they want to! The newly designed chip based credit card offers them
enhanced security features to protect their information from fraudulent acts. The
chip generates dynamic values for each transaction, providing greater security
every time they swipe.

Types of Credit Cards

 Alfalah Ultra Cashback Card

 Alfalah Credit Advance

 Dine-n-Discount

 Alfalah Platinum VISA Credit Card

 Alfalah Titanium MasterCard

 Alfalah VISA Gold & Classic Credit Cards

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ELIGIBILITY
Minimum age requirement for Alfalah credit card is 21. If you are a salaried
person, 3 months salary slip is required, and in case of a businessman, valid
proof of business is required along with valid CNIC and bank statement in both
cases.

RAW MATERIALS
 Cards are made of several layers of plastic laminated together. The core is
commonly made from a plastic resin known as polyvinyl chloride acetate
(PVCA)
 The Emv chip (Imported from U.S)

MANUFACTURING PROCESS
The manufacturing process consists of multiple steps: first the plastic core
and laminate materials are compounded and cast into sheet form; then the core
is the printed with appropriate information; next the laminates are applied to the
core; and finally the assembled sheet is cut into individual cards.

PLASTIC COMPOUNDING AND MOLDING

 The plastic for the core sheet is made by melting and mixing polyvinyl
chloride acetate with other additives. The blended components are
transferred to an extrusion molding apparatus, which forces the molten
plastic through a small flat orifice known as a die. As the sheet exits the
die, it goes through a series of three rollers stacked on top of each other
that pulls the sheet along. These rollers keep the sheet flat and
maintain the proper thickness. The sheets may then pass through
additional cooling units before being cut into separate sheets by saws,
shears, or hot wires. The cut sheets enter a sheet stacker that stacks them
into place and stores them for subsequent operations.

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  The laminate films used to coat the core stock are made by a similar
extrusion process. These thinner films may be made with a slot cast die
process in which a molten plastic film is spread on a casting roller. The
roller determines the film's thickness and width. Upon cooling the films
are stored on rolls until ready for use.
 Then Emv Chips are Punched to the Sheet

PRINTING
The plastic core of the card is printed with text and graphics. This is done using
a variety of common silk screen processes. In addition, one of the laminate
films may also undergo subsequent operations where it is imprinted with
magnetic ink. Alternately, the magnetic stripe may be added by a hot stamping
method. The magnetic heads used to code and decode the iron oxide particles
can only operate if the magnetic medium is close to the surface of the card, so
the metal particles must be placed on top of the laminating layer. Upon
completion of the printing process, the core is ready to be laminated.
LAMINATION
Lamination helps protect the finish of the card and increases its strength. In this
process, sheets of core stock are fed through a system of rollers. Rolls of
laminate stock are located above and below the core stock. These rolls feed the
laminate into the vacuum shoes along with the core stock. The vacuum holds
the three pieces of plastic together while they travel to a tacking station. At the
tacking station a pair of quartz infrared heat lamps warm the upper and lower
plastic films. These lamps are backed with reflectors to focus the radiant energy
onto a narrow area of the films, which optimizes a smooth bonding of the film
to the core stock. The laminate films are then fully bonded to the core stock by
pressing with metal platens, which are heated to 266° F (130° C) and applied
with a pressure of 166 psi/sq inch. This lamination process may take up to 3
minutes.

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DIE CUTTING AND EMBOSSING
After lamination has been completed, the finished assembly is cut and
completed by die cutting methods. Each assembly yields a sheet, which is cut
into 63 credit cards. This is achieved by first cutting the assembly longitudinally
to form seven elongated sections. Each of the seven sections is then cut and
trimmed to form nine credit cards. In subsequent operations, the card is
embossed with account numbers. The finished cards are then prepared for
shipping, usually by attaching the card to a paper letter with adhesive.

Plastic
Emv Chip
compounding Printing
Punching
and molding

Card Ready Die cutting

Lamination
For Use and embossing

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PARTICULARS DISPLAYED ON
CREDIT CARD
 Name of the Customer
 16 Digit Card Number
 Validity Date
 The Visa logo
 Name of the Issuing Bank
 Signature Period
 Emv Chip
 Pin

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WHAT DOES 16 DIGIT MEANS

CREDIT CARD APPLICATION

PROCESS

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COST AND LEAD TIME
This whole process takes time of around 10to 15 days from customer applying
for the card till receiving it. Around 1015rs to1020rs are spent by the bank

PAYMENTS ,VARIATION AND ITS

WORKING
 The Bank shall every month send a Statement of Account to the Card
member at the card member’s last known billing address and the Card
member shall pay at least the Minimum Payment Amount stated therein
by the Payment Due Date.
 The Bank may time to time change any of its Terms and Conditions
including; without limitation the terms of payment, percentage rates,
charges and fees, and shall accordingly notify the Card member by
inclusion in the Statement of Account or otherwise. Its working includes
any Cash Advance or the amount charged by the Bank or any Merchant
for any goods, services, benefits, or reservation obtained by the use of the
Card or the Card numbers or the PIN or in any other manner by the Card
member.

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PROBLEMS

COURIER ISSUES
1. The courier company does not deliver the bills on time due to which
the customers have to pay bills after the due date, including late fees
as penalty.

2. Courier Company gives fake reasons for the non delivery of the
bills. For example; customer was unavailable at home, wrong
address or no answer.

DEPARTMENTAL ISSUES
1. Poor coordination between departments creates a chaos between
them and their customers.

2. Many customers constantly complaining that they are not receiving

their bill statements on time because of incorrect address which was
fed by the banker or the customer has changed the address but the
bank has no record.

3. Negligence from the bank’s end for not keeping the records updated.

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SUGGESTIONS
RESOLVING COURIER ISSUES

1. We can simply resolve these courier issues by imposing penalty on

the courier company if the parcel is not delivered on time. By
practicing this they would take steps to overcome it.
2. We can change the current courier company for reliable service.
3. We can also ask the courier company to give the authentic proof for
the non delivery of the bills on time. For instance, a visit proof in
form of card or by writing a date at the gate and then clicking its
picture, may serve the purpose.

RESOLVING DEPARTMENTAL ISSUES

1. Departmental issues are internal and these issues must be resolved

on immediate bases.
2. We can simply suggest that these issues can be overcome if we can
provide a proper training session to the staff which is already
working on the customer care centers.
3. We can hire a team heads which can monitor those teams who are
lacking in these operations.
4. Implementations and installation of new software which can filter
the data in their respected areas which can reduce most of the
discrepancies in it.

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IMPACTS
ANNUAL TURNOVER:
Bank Alfalah has a yearly turnover of about 300 billion. They can increase by 2-3
% if they resolve the above stated issues.

GOOD WILL OF CUSTOMERS:

By resolving these issues customers will not be paying any extra charges hence,
they’ll not withdraw the card facility.

INCREASE IN NUMBER OF RETAINED CUSTOMERS:

The customer will be enjoying the prior services from the banks and the banking
heads can enjoy the chunks of profits from them. Profit and loss, retaining or not are far apart
from the relationship, which develops a level of trust between bank and customer for the
longer period of time.

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CONCLUSION
Credit cards can provide convenience but they can also land you in debt through
unwise choices or through no fault of your own, such as an emergency. In order
to overcome the risks of credit card use, avoid accumulating too may and pay
the debt off on time, read terms and conditions carefully and take measures to
avoid fraud.
By taking the above mentioned notices it can be said that the bank can retain
their customers, and can identify their lacking which is resulting them in losing
their customer and moving to another banks. Bad impression and low morale in
market is never a good news for any business.

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