Samba Bank - Organization Policy, Vision and Way, Sambadiamond Customers - Coursework Example

Name : xxxxxx Tutor : xxxxxxx Title : Internship Report Duration : From xxxxx, 2015 to xxxxx, 2015. Institution : EFFAT UNIVERSITY @2015 PREFACE Students of the College of Business at Effat University are required to participate in an internship program whose goal is to apply the knowledge obtained in the classroom to a real-world environment, as well as acquire the skills and experience that is necessary to prepare the student for a successful career in their field. It is in that regard that I sought the opportunity for an internship at Samba Bank in the Kingdom of Saudi Arabia. Samba Bank prides itself on being a premier financial institution with operations in the Gulf region. It has received accolades for its innovative banking services both within the region and globally. Samba Bank operates under Islamic banking laws providing world-class products and services to its customers. Coupled with its desire and vision of excellence has earned it recognition as a top-tier bank within its sector in the Kingdom of Saudi Arabia. The fact that Samba Bank is a renowned brand, regarding the quality of service delivery and high standards of professionalism, it is an employer of choice for many professionals in the finance sector. For me personally, throughout my academic journey I have always had passion in the field of banking and finance and when the golden opportunity to work as an intern at Samba Bank came by, I gladly took it. Being in a foreign nation with a different culture and way of life made it even more attractive to me as I wanted to gain comprehensive experience. As a finance student, I worked as an intern at Samba Bank, in one of the Saudi Arabia branches. I got attached to the customer services department as part of the team overseeing daily bank operations concerning customers. My regular presence at the bank helped me gain experience in the banking sector through observation, participation and guidance. Before the internship, I had a general idea of customer service in banks. However, once I got practically involved in those processes, I gained much experience in the banking sector, and I can now appreciate the importance of quality customer services both to the clients and the bank itself. My trainer provided me with regulations and procedures that would guide me on the daily routine of the Customer Services Department. Keywords: customer service, clients, coupons, internship, samba bank, KSA ACKNOWLEDGEMENT First and foremost, I extend my gratitude to the entire Samba Bank fraternity for giving me the golden opportunity of being part of their banking team. It goes without saying that the opportunity awarded to me has improved my interpersonal skills within a professional environment. At Samba Bank, the customer always came first and was treated with utmost respect ensuring that all their needs are met. I learned that customer satisfaction is key for there to be a continuance of demand for Samba Bank services and products. Furthermore, my internship at Samba Bank would not have been as successful as it has, were it not for the collaboration of all persons I interacted with. This notwithstanding the efforts of the entire Customer Service Department team that was my second family during the internship period. The guidance of ...insert names… and …insert names…particularly, was imperative in raising my professional pedigree to the level it is now. My acknowledgments also extend to my trainer…trainer name…for the constant support and positive criticism throughout the internship period. …trainer’s name…was always there for me whenever I had problems with the customers or needed an explanation on certain banking processes. Thank you all and may you be blessed abundantly. ORGANIZATION INTRODUCTION Business Background and History. Functionally-oriented organization structure plays a significant role on the profitability of any organization. Samba Bank is a privately owned organization that provides financial services to its clients. A 1980 royal decree marked the inception of Samba Bank and since then, it has expanded into one of the most reputable financial institutions in the Middle East. Its first branch was opened by Citibank (minor shareholder) in 1955 in Jeddah. It was followed by Riyadh Branch in 1966 before Citibank officially became a Saudi-American Bank the full for SAMBA in 1980 following another Royal Decree. It, however, retained 40 percent of the shareholding and continued managing the bank through a Technical Management Agreement. The remaining 60 percent got owned by Saudi nationals. Citibank shareholding was however reduced to 30 percent in 1991 making it majorly Saudi-owned. Samba Bank turned global when its first international branch got opened in London, the UK in 1984. In 1999, a conglomerate was formed between Samba Bank and the United Saudi Bank resulting in the largest financial corporation in the Middle East for which Citibank owned 23 percent. This shareholding was further reduced in the turn of the millennia when in 2002, Citibank shareholding reduced to 20 percent. At the same time, management of the bank was officially transferred to Samba and the technical management agreement officially got terminated on 31st October 2003. Citibank conceded its entire shareholding in 2004 selling its share to local investors. In early 2007, Samba embarked on expanding its business by acquiring 68.4 percent in a Pakistani Bank named Crescent Commercial Bank. During the same year, it received branch banking license to operate in Dubai. It, therefore, meant it could expand its reach by opening branches in Dubai a move that proved crucial in achieving the first-class status it currently enjoys. It also created Samba Capital that served as a specialized investment house in Saudi Arabia supporting investors both financially and by providing incubation services. Samba continued its expansion policy in 2008 by acquiring Qatar branch license from the Financial Centre of Qatar and also another license to operate in India. The Samba Financial Group then launched a corporate social responsibility strategy in 2009 that focused on providing training to graduates from universities and colleges. This has proved to be beneficial to the trainees such as me in promoting their employment opportunities. In 2010, Samba became the first Saudi Bank with operations in Qatar when the Qatar branch got launched. The branch not only provides general banking services but also corporate and investment banking thus making it very convenient. Organization Policy i. Structure of the Board of Directors As at the time of preparing this report, Samba Bank board was composed of; Name Responsibility Mr. Eisa M. Al Eisa Chairman Mr. Mohammad S. Al-Ghofaili Board Member Dr. Ibrahim O. Nazer Board Member Mr. Ali H. Alireza Board Member Dr. Fahad M. Al Husayen Board Member Mr. Zaki A. Al-Mousa Board Member Mr. Khaled A. Al Abdulkareem Board Member Mr. Ahmed M. Al-Omran Board Member Mr. Mousa A. Al Rubaian Board Member Mr. Fahad I. AL Mufarraj Board Member ii. Vision and Values. Samba Vision a. To be the front-runner financial institution in Saudi Arabia b. Providing world-class solutions c. Not just meeting customer needs, but exceeding expectations d. Investing in people e. Benefiting local communities f. Delivering superior returns to our investors Core Values Dedication to its Customers: - Samba Bank has a firm resolution and dedication to providing the exact solutions, advice, and choices while consistently delivering top-notch services. Commitment to its employees: - A work environment that embraces excellence as a discipline is what Samba exposed me to. Improving ourselves: - Samba focuses on continuously delivering quality. It encourages innovation and initiative while placing great emphasis on communicating freely and transcending business boundaries. Sound corporate citizenship: - Samba Bank is a believer in never compromising on its integrity regardless of the circumstances facing it. It, therefore, holds the laws and regulations in the highest regard and undertake regular community programs through its corporate social responsibility arm. Superior returns to investors: - Its business strategy has a long-term perspective and gets finely attuned to market conditions. SambaWay Samba prides itself on having its unique way of doing things called the SambaWay. It mostly applies to its employees in the work environment. The SambaWay has proven to enhance trust and mutual support amongst its customers, employees and shareholders and is all about; Respect and Balance: - Samba Bank is known for treating everyone fairly and with respect. It means. Therefore, employees and customers alike feel a part of the Samba family. Customer Focus: - Customer satisfaction is a vital aspect of SambaWay as it affects the continuance of demand for Samba services and products. It, therefore, ensures that its customers are happy with every aspect of the bank’s services. Integrity: - Through integrity, Samba inspires confidence in its clients, shareholders and itself by keeping a deep hold on the traditional values. Learning: - Samba Bank believes that learning is a continuous process. Therefore, learning is a daily and ongoing facet. This value aims to grow all stakeholders by learning from their experiences both as individuals and as an organization. Accomplishment: - Samba Bank prides itself on delivering top-notch products and services regarding quality and relevance to the clients’ experience. JOB TRAINING DESCRIPTION AND PROCESS Objective of the Internship Fulfilling the partial requirements for the award of a BSc degree program represents the primary aim of the report. So as to successfully be awarded a BSc in Finance, the College of Business at Effat University requires one to participate in an internship program. The goal of the course is to apply knowledge acquired in the classroom to real-world environments, as well as gain the skills and expertise that is vital to prepare the student for a successful career in their field. It is after the internship period that the students such as myself are obliged to submit a report regarding the organization attended (For my case, Samba Bank). I completed the internship, and this is the report mentioned above. The fact that the principal aim of the attachment was to gather job experience, this section of the report entails most of the experiences gained during my stay at Samba Bank. Methodology In the preparation of this report, both the secondary and primary sources were used. This diversity of data sources ensured higher reliability and thus a more accurate report Secondary Data: Data concerning the operations of Samba Bank Ltd. and analysis of financial statement were collected from sources such as; Annual Bank Reports, Daily diary (a logbook containing my activities of practical orientation in Samba Bank), Website of Samba Bank Limited, Different circulars issued by Head Office, Brochures, Manuals, Publications by Samba Bank Ltd. Primary Data: A large portion of the data and resources used in this report got collected through the practical experience I had during the daily presence at Samba Bank. I would continually ask questions on how certain procedures got concluded and my colleagues were always at hand to help. Therefore, data concerning Samba Bank products & services, interest rates & charges, banking operations, management personnel, organization structure, and policies were collected first hand primarily. Job Description At Samba Bank, I was attached to two departments, the Customer Services Department that handles accounts opening and customer support. It was divided equally into the total time I spent at Samba Bank. Customer services department is the back born of banking operations. It is the starting point for most services rendered on a daily basis by Samba Bank. Every day, the department handled hundreds of customers making deposits and making inquiries. At the Department, I was involved in opening new accounts, helped the customers do scanning of documents, print the cards. My trainer also taught me the criteria for awarding loans, learned how to issue bank drafts and pay orders, etc. The department has the following functions; Table 1: Functions of the customer service department Customer Services Section Function 1 Front Desk/Accounts Opening Section 2 Clearing Section 3 Accounts Section 4 Loans Section 5 Cash Section A. Main Job Description: - Accounts Opening Section At Samba Bank, this section acts as the face of the organization. It is where the customer would make inquiries, ask for assistance including directions and the opening of the accounts. I assisted customers to open their preferred accounts. I learned that account opening was the initial step in creating a contractual relationship between the client and the bank. This process is crucial to the bank as it is where all customer details get obtained, and all other subsequent processes are dependent on it. The bank takes all necessary precautions during this process to avoid instances of forgery and inaccuracies. At Samba Bank, one can open the following types of accounts; 1. Current Account. 2. Savings Account. 3. Time Deposit. Each type of account has different operating procedures and benefits that the customer chooses accordingly. Once the account gets opened, the customer can then get free ATM cards that enable them to access their account via electronic media such as Automatic Teller Machines, SambaPhone, SambaMobile, and SambaOnline. The customers can do this anytime, anywhere and at their convenience. Current Account Samba Bank provides eligibility requirements for those wishing to open a current account. The account is available for; i. Adults (those above 18 years) and Minor children (those below 18 years) ii. Saudi Nationals, GCC Citizens, and Expatriates One can open an account at Samba Bank either by visiting the nearest branch with the requisite documents or online through the bank’s website. The following are the requirements for to be fulfilled during accounts opening. The requirements depend upon the personal information of the customer. Adult Male Saudi National The customer is required to provide, National Identification Card. Proof of Income such as Payroll Slip, either Electronic or Hardcopy salary certificate, letter from employer, copy of statement of another bank if salary is transferred to that bank. The customer will also be required to complete the Account Opening Agreement along with any annexure at the branch. This agreement is binding to both the customer and the bank. 1. Adult Female Saudi National. The customer is required to provide; A government ID: it can be any one of; National Identification Card, Family Registration Book/Family Record where the applicant's name is included (reference person required) or an attested copy of Civil Registry. A Proof of Income: such as Payroll Slip, Electronic or paper salary certificate, letter from employer, copy of statement of another bank if salary is transferred to that bank. Just like their male counterparts, the customer will also be required to complete the Account Opening Agreement along with any annexure at the branch. This agreement is binding to both the customer and the bank. 2. Minor between 15 and 18 years (male or female). The minor should be accompanied by a representative to a Samba Branch with a national identity card for the minor. The minor through the representative or sponsor will be required to complete the Account Opening Agreement in tandem with annexures that may be required by the bank. 3. Minor Child below 18 years (male or female). The minor should be accompanied by a representative to a Samba Branch with the following documents; Original Identification of the legal guardian. Copy of Birth Certificate of the minor or copy of the Family Registration Book. Copy of the Court's deed if the minor is under the guardianship of a relative. Proof of Income for the guardian: such as Payroll Slip, Electronic or paper salary certificate, letter from employer, copy of statement of any bank if salary is transferred to that bank. The minor through the representative or sponsor will be required to complete the Account Opening Agreement in tandem with annexures that may be required by the bank. 4. GCC Citizen resident in Saudi Arabia. The customer should visit the nearest Samba Bank Branch with the following documents; Copy of valid Passport or copy of the National Identity Card Address in the home country Proof of address in the Kingdom of Saudi Arabia: this can be one of the following: Utility bill House rental contract Real estate title deed Reference letter from a Saudi National confirming your residence at the specified address A Proof of Income: such as Payroll Slip, Electronic or paper salary certificate, letter from employer, copy of statement of another bank if salary is transferred to that bank. The customer will also be required to complete the Account Opening Agreement in tandem with any annexure at the branch. This agreement is binding to both the customer and the bank. 5. Expatriate The customer is required to visit the nearest Samba Branch with the following documents; A certified copy of legally valid Iqama. A certified copy of valid Passport (except those holding magnetic Iqamas). Address in the Kingdom of Saudi Arabia and at the home country. A Proof of Income: such as Payroll Slip, Electronic or paper salary certificate, letter from employer, copy of statement of another bank if salary is transferred to that bank. The customer will also be required to complete the Account Opening Agreement in tandem with any annexure at the branch. This agreement is binding to both the customer and the bank. Al-Khair Current Account The Samba Bank’s Al-Khair current account affords its holders with the power to manage their finances in a Shariah – compliant way. The account has the following key features; ATM card and a free cheque book Unlimited account access, anytime and anywhere via electronic media such as SambaPhone, SambaOnline, and Samba ATMs. Frequent e-mail or SMS notifications regarding the customer's account and updates on latest transactions through Samba@lert Securely banking anywhere, anytime on your mobile phone with SambaMobile An instruction facility always on stand-by. Utility payments IPO services Facility offering salary transfer. Constant assistance from branch officers such as myself in opening a Shariah-compliant SambaCapital investment account. Shariah-compliant Structured Treasury Products. Samba Stars It refers to a Samba Bank account specifically designed for minors and teenagers below the age of eighteen years. Samba Stars is intended to take the holders through a learning experience into life’s lessons in banking and financial management. It also represents an opportunity for the young to save for the future. The Samba Stars account had the following benefits for the holders; Specially designed ATM card with special features for boys and girls. Available for kids over ten years old subject to the approval of the guardian. ATM withdrawal limit of SR100 daily. Small Corporations and Establishments. During my internship, I learned that Samba Bank believes that any business is it small, medium or comprehensive deserves attention and thus has specially designed services for them. It is in that regard that one of their products is called Small Corporations and Establishments. Its clients are afforded with banking services that obviate the enormous burden associated with corporate banking transactions. Furthermore, customers of this service are availed with a broad range of credit cards that suits their particular needs such as; Samba Business Al-Khair Card, Shariah-compliant card that is specially designed for business owners in the Kingdom to help them to expand their businesses. I was involved first hand in sorting files based on customer status. The customers would be grouped into Sambablue, Sambagold or Sambadiamond based on the amount of balance maintained in their accounts. Special features for Samba Business Al-Khair Card The clients are provided with additional finances in terms of overdrafts so as to run their businesses continuously without financial challenges. Besides this, the following are some other benefits; Reduction of business expenses through discounts aimed at involved partners on business-specific needs such as office furniture, courier services, hotel accommodation supplies, rent-a-car and other forms of supplies. Free extra cards for the client's employees and provision of free Dial-A-Draft payments. The clients also benefit from all the superior executive privileges, only availed by Samba Credit Cards. For instance, cash withdrawals anywhere, worldwide acceptance, utility bill payments, 24-hour customer support and convenient day-and-night payment options via electronic media. Samba Business Al-Khair Card also enables its holders to separate business finances from personal expenses thus ensuring high-class financial management. Holders of this account are maintaining high balances automatically become either Sambagold or Sambadiamond customers depending on their balance level. Sambadiamond and Sambagold members enjoy elite banking services tailor-made specifically for them. Their services are provided by professional employees that are specially trained to deal with the customer’s needs. I witnessed the provision of such services at luxurious and comfortable centers where customer privacy is of high regard. Sambagold Customers For the customer, the Sambagold ATM card acts as the gateway to world of first class services designed to meet their specific needs: Luxurious customer service centers tailored to meet the client's comfort and privacy needs. The holders of Sambagold account are offered with a discount of 50 percent on banking services, for example, overseas ATM cash withdrawals and money transfers through SpeedCash, money transfers, cheque books, and safe deposit box. Dedicated Sambagold officers on standby 24 hours daily to meet the clients banking needs at their convenience. Toll-free 24 - hours SambaPhone number, specifically for Sambagold clients. The clients can access Samba Platinum Credit Cards that do not have annual subscription Foreign currencies that apply to Sambagold members are preferential. Sambadiamond Customers These are customers considered to be most important the Bank. They command extraordinary privileges and personalized banking services not available to normal customers. For the customer, the Sambadiamond ATM card acts as the gateway to world of first class services designed to meet their specific needs: Luxurious customer service centers tailored to meet the client's comfort and privacy needs. The holders of Sambagold account are offered with a discount of 50 percent on banking services, for example, overseas ATM cash withdrawals and money transfers through SpeedCash, money transfers, cheque books, and safe deposit box. Dedicated Sambagold officers on standby 24 hours daily to meet the clients banking needs at their convenience. Toll-free 24 - hours SambaPhone number, specifically for Sambagold clients. The clients can access Samba Platinum Credit Cards that do not have annual subscription Foreign currencies that apply to Sambagold members are preferential. Samba Time Deposits This type of account provides the customers with an opportunity to save for the future. This time of account offers the security of funds to the customers, a wide range of tenures available to the customers to match their needs, availability of choices of major currencies including the Saudi Riyal and an auto renewal facility. B. Other Job Descriptions Mobilization of Coupons During my tenure as an intern, I also learned how to mobilize coupons. These process entailed an analysis of data specific to each coupon. For instance, the coupon payment of dues and conversion vouchers. I also learned the process of appraising conditions of each coupon data. Accounts Opening My trainer constantly took me through the rules of account opening. This being the most important step in bank operations, I had to ensure I knew the rules of account opening for employees and non-employees. Staff Salaries I researched on staff functional levels and the salaries and remunerations associated with each level. This was important in determining their eligibility to loans and other preferential services accorded only to Samba Bank employees. Loans Samba Bank’s definition of a loan is the borrowing of a fixed amount repayable either in periodic installments or lump sum at a fixed future time. During my internship period, I learned that there were three types of loans on offer at the bank; Secured loans, Unsecured loans, Clean loans. Samba Bank has a collection of Shariah compliant Personal Finance solutions that enables its customers to realize their needs with minimum hassle and paperwork, and maximum convenience and flexibility. I learned the criteria of awarding loans to those who needed and was taught how to determine those who qualified for the loan and those who did not. The bank also offers a personal loan eligibility calculator on its website for interested customers to try and gauge their eligibility for a loan. To do this, the customers are required to provide the following information; Nationality Age Tenure (In years) Monthly Salary (SAR) Employer Type Outstanding Loan if any SUMMARY AND SUGGESTIONS Samba Bank is a first class bank offering high quality services to its clients in the Kingdom of Saudi Arabia. The branch I worked at offered me with a wonderful working experience from which I have benefited immensely from. The bank employees were nice and helpful to me. They were always there to answer my questions and from their experience, I learned a lot. Despite the short period of practical orientation program, I was still able to learn from my daily experiences. In this section, the experiences that I gained during the internship period, application of the acquired knowledge and the problems experienced are presented. Experience Gained. I learnt that the accounts department is one of the most sensitive part of any bank. I worked in the customer services department for the most part of my internship. This department is one of the most important and busiest departments. In fact, it is in the customer services department that all the transaction vouchers for other departments are kept and maintained. Together with the Accounts Department, the customer services department is where accounts are finalized and maintained and a copies sent to the corporate branch. Together with the accounts department also, all kinds of daily charges are maintained, updated and managed from. Office equipment such as stationary are managed from the Accounts Department. This ensures accountability and minimizes wastages and unnecessary loses. A summary of activities that I was daily involved in illustrates the specific experiences gained during my internship. I was involved in printing out of the transaction listing of the previous day for checking credit and debit voucher. I also helped customers to print cards and do scans for the documents whenever they required to do so. I therefore managed to enhance my interpersonal skills as I constantly had to interact with customers in a friendly but professional manner as per bank rules. During my tenure as an intern I also learned how to mobilize coupons. These process entailed an analysis of data specific to each coupon. For instance, the coupon payment of dues and conversion vouchers. I also learned the process of appraising conditions of each coupon data. Also involved in voucher sorting, counting and filing by checking the number of accounts has been debited or credited, check the account holder signature, account number so on. I was taught how to do professional mailing services of bank services as a form of inter - branch communication before delivery to corporate branch by the mail man. Registered the entire vouchers in register book after checking the voucher with the trail list of branch in details. Here the amount of debit and credit voucher will be same but the number can differ. After check requisition, a list of check book holders name with a/c no are given to write down in cheque book register. My trainer constantly took me through the rules of account opening. This being the most important step in bank operations, I had to ensure I knew the rules of account opening for employees and non-employees. I researched on staff functional levels and the salaries and remunerations associated with each level. This was important in determining their eligibility to loans and other preferential services accorded only to Samba Bank employees. Application of the Knowledge gained An internship in a banking institution is a practical orientation program that is designed to enable interns to gain knowledge of practical banking skills and to compare it with theoretical knowledge. In the course of my internship with Samba Bank, I was able to acquire immense knowledge in the banking sector. My attempt to comparing this practical experience with theoretically involved identification the most central bank activities and learning the internal control procedures in place to control this procedure. I was also able to identify weakness in the branch activities and tried to visualize possible solutions to the same. From all the departments that I was able to attend, I have tried to gain as much experience as possible as part of my learning process. As mentioned earlier, Samba Bank believes that learning is a continuous experience, therefore, I managed to live up to the expectations of an intern throughout the internship program. It was, however, impractical to go to the depth of all activities of the branch because of the limited time available for the internship. In spite of that, I put the most effort in the pursuit to cover the objectives of the internship program. Challenges Faced Samba Bank being the premier financial institution it is, there were minimal challenges to me as an intern. However, I learned that customers who are not Sambadiamond nor Sambagold clients do not get the level of customer service expected of the bank of that status. While Sambadiamond nor Sambagold clients were offered personalized banking services at exclusive financial centers, ordinary customers were treated simply as ordinary. The limited time for the internship also meant I had to learn fast as I moved from one department to another. This, however, did not mean compromise on the level of quality of services offered to the customers. References Ali, K., Akhtar, M. F., & Ahmed, H. Z. (2011). Bank-Specific and Macroeconomic Indicators of Profitability-Empirical Evidence from the Commercial Banks of Pakistan. International Journal of Business and Social Science, 2(6), 235-242. Ansari, S., & Rehman, A. (2011, December). Financial performance of Islamic and conventional banks in Pakistan: A comparative study. In 8th International Conference on Islamic Economics and Finance (pp. 19-21). Bank, S. (2009). Samba Bank 1st Quarter Report 2009. Bank, S. (2010). Samba Bank Quarterly Report 2010. Brown, A., & Fall, L. T. (2005). Using the port of entry report as a benchmark: Survey results of on-the-job training among public relations internship site managers. Public Relations Review, 31(2), 301-304. Read More