The Minimization of Credit Card System Issues in Hbl & Standard Chartered Bank

Table of contents

1 Abstract................................................................................. ii

2 Dedication.............................................................................. v

3 Acknowledgment...................................................................... vi

Ch# 1 Introduction.............................................................................. 1

Ch# 2 Literature Review...................................................................... 3

Ch# 3 Research Methodology............................................................ 12

Ch# 4 Data Collection.......................................................................... 14

Ch# 5 Conclusion.................................................................................. 22

Ch# 6 Appendixes................................................................................ 27

Abstract

The main focus of our study is the usage of credit cards and its impact on the customers and on the banks. This study is actually a comparative study as it will cover the two banks HBL and Standard Chartered. We studied the credit card system of those banks, its advantages and disadvantages and also we were focusing on the issue that arises while issuing credit cards.

Everything changes, as the time changes. The shape of money also changed. The credit card is the advanced form of the money that makes the life so luxuries and expensive. However it has the benefits and some drawbacks. While considering this subject we come to a problem statement that is the pros and cons of credit card system and how can these issues be minimized in HBL and Standard Charted Bank?

In this short period we may use the both approaches the primary approach and the secondary approach. In secondary method we use the articles half of them are written by the international authors and half will be from local author. There was an article published in October 2001 named Credit Card Model the author Manas Ratha talks about the credit card model, he writes that credit cards is one of the ways to borrow money and people use as they want. He wrote about the functionality of credit cards. And he also mentions that the interest payments affect the credit cards user's life. Another article was written the title was Credit Card Caution by Timothy P. Cahill he was highlighted the college students they have credit cards but they have no knowledge about the terms and condition of interest and repayment. They just have credit cards for prudence. And this is the big issue for them. They make a survey and see the knowledge of students. Author Raymond J. Keating was written an article named Credit Card and Small Business he said that credit cards help in small business and also increases its sales volume.

By studying literature review we find that most of the authors highlight the policies made for credit cards, credit risk and management of those risks. In our research we will study credit card customers, and also how banks manage that system and how the issues be minimized. In short we will study bot0h the seller of credit cards that are banks and customers of those credit cards.

In our research we will study the pros and cons of credit card system for the customers. Our research is different from the previous researches that have been done because we will study both company and customer perspective related to credit card system. Another think is that we will take two banks as a sample for our research. And we will also highlight how the negative issues will be minimized in credit card system.

For collecting the primary data we adopt the quantitative and qualitative methods. We plan to get interview from the higher authorities of these banks to get the specific information about our subject. And plan for a survey to get the response from the users of the credit cards. The survey is taken in the bank while the customers transact through credit cards, so we can easily come close to them. And the interviewees were Ayesha Bilour Branch Manager of HBL and Ali Iqbal Manager Standard chartered bank.

We assume the result, which the respondents of the survey should favor of the facility of credit card system. So that will be the positive result of our whole study. As customer is the most important person in any business customer is actually not dependents upon us we are dependent upon him. Customer is life blood for business; hence it's necessary to understand the credit card system. This research can implement only for the credit sector and they willing to provide credit on better rules and condition to their customers. That research will beneficial for both customers and banks. Customers come to know the operations of credit card system and also advantages and disadvantages of credit cards. The respondents that we were selected all users of credit cards so that they were providing better results. On the other hand banks will also benefit with our research in such a way that they get customer response and behavior towards credit cards. Finally we are the greatest beneficiaries of our research we get experience and knowledge from that research that will definitely help us in future. We were visited banks that also enhance our skills and social circuit.

From the problem statement to the conclusion we will spend almost four months to produce the result in the support of our hypotheses with the help of survey and interview from the customers and the management of the HBL and Standard Chartered Bank respectively. Our research was on the pros and cons of credit card system and the issues that are arise while issuing credit cards and we consider two banks HBL and Standard Chartered. The whole research that we have done provide us positive results from both customers and banks perspective.

Dedication

We dedicated this report to our beloved parents who always pray for our success. And also to our project instructor Mrs. Ameena Zafar who gave us opportunity to do this project and also help us in doing that project.