Evaluating the Challenges and Opportunities in Janata Bank PLC’s School Banking Accounts

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EXECUTIVE SUMMARY

The purpose of this report is to identify the problems and prospects of school banking at Janata Bank PLC. Janata Bank PLC initiated their school banking program in response to a directive from Bangladesh Bank in November 2010. The program aimed to enhance students’ financial management skills and contribute to economic development through their participation in banking activities. This discussion focuses on the school banking services in Bangladesh, covering its definition, historical background, and the current status. Additionally, it explores the school banking system in Bangladesh, including relevant laws. The primary emphasis is on analyzing the problems and prospects of Janata Bank PLC’s school banking, addressing issues such as insufficient promotion, insufficient workforce, low interest rates, lack of professionalism, excessive formalities for account opening, identification of potential customers, and the goal of empowering students economically. The study also delves into the benefits and limitations of school banking and concludes with recommendations and suggestions to address the identified issues. The hope is that implementing these recommendations will lead to Janata Bank PLC becoming a more successful institution in the future, contributing significantly to Bangladesh’s economic development by providing better customer service and creating employment opportunities.

School Banking

CHAPTER-1: INTRODUCTION

1.1 Introduction:

The initiation of the school banking program in Bangladesh is a recent development. This initiative is designed not only to offer methods for students and parents to build up substantial savings gradually but also to instill the practice of saving from a young age. In a significant ruling in November 2010, the Bangladesh Bank (BB) issued a directive requiring all banks to establish branches specifically designated for school banking. This directive was put in place to engage students in banking services and empower them to participate in economic activities by utilizing their savings.

Janata Bank PLC was established with the aim of fulfilling the varied financial requirements associated with the country’s planned economic development. Recently, Bangladesh Bank introduced the “School Banking Scheme” in collaboration with all commercial and specialized banks in the nation. Despite being a relatively recent concept, it has gained popularity within two years owing to its appealing interest rates and the exemption of service charges, mirroring other deposit accounts. On November 2nd, 2010, the Bangladesh Bank released a circular to instruct all commercial banks to familiarize students attending schools with modern technology and banking services. This initiative aims to enable students to engage in financial activities through their savings. As of now, more than 59 banks have implemented this scheme. However, both guardians and officials still find it unclear how to open and operate this type of account, as well as the necessary documents required for opening such accounts, despite the fact that all banks have provided information about the scheme on their websites. As of June 2023, the latest data from Bangladesh Bank reveals that the aggregate outstanding balance in school banking accounts amounted to Taka 23,584.50 million, spread across 3,966,812 accounts. The school banking scheme, unfortunately, has not fully met its objectives, possibly due to insufficient promotion, contrasting with the success of other deposit schemes. This initiative allows students to accumulate funds for their future, offering banks not only the benefit of recurring deposits but also fulfilling a societal role in the country. The program is anticipated to act as a significant milestone in the implementation of school banking, benefitting students, guardians, and bankers involved in the scheme.

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1.3 Objectives of the study

The objective of this study is understanding the fundamental idea behind school banking and familiarizing oneself with the operations and initiatives within the school banking program.

1.3.1 Broad Objective

The main goal is to identify the challenges and opportunities associated with school banking at Janata Bank PLC.

1.3.2 Specific Objectives                                                                     

  • To elucidate the objectives of the school banking initiative.
  • To identify and address challenges associated with the school banking program.
  • To emphasize the future opportunities and potential of school banking.
  • To provide recommendations aimed at enhancing the effectiveness of school banking.

1.5 Methodology

The study is based on both primary and secondary data. Primary data have been collected from the respondents by using questionnaire. This study was conducted to know the problems and prospects of school banking of Janata Bank. The study utilized a total sample size of 225 participants. The method employed for sample selection was Convenience sampling technique.

1.5.1 Source of Data

There are two types of data were needed for the study:

1.5.2 Primary data

1.5.2.1 Questionnaires:

  • Structured questionnaires were created and distributed to the employees & clients of the organization, students, parents and other respondents.
  • The questionnaire gathered information on a study on school banking account: problems and prospects of Janata bank PLC.

1.5.3 Secondary data

  • Magazines and journals.
  • Company’s Website.
  • Related books and papers.

1.5.4 Data Collection Procedures

The primary means of conducting research was through the utilization of the questionnaire method, which served as the main tool for gathering crucial information from the various sources of data. An extensively organized questionnaire was created specifically for the purpose of collecting information from the company’s employees and students.

1.5.5 Data Analyzing Procedures

Measures derived from the research framework, such as school banking account of Janata bank problem & prospect have been adopted as the research constructs. Each construct comprises two or three components or indicators. A Likert-type scale with five points (ranging from SD- strongly disagree, to SA- strongly agree) will be employed to assess the variable items in the research questionnaire. The requisite data have been subjected to analysis using methods such as percentage analysis and graphical representation. To ascertain the internal consistency of the data, a reliability test has been applied. Furthermore, both percentage analysis and correlation analysis have been utilized to scrutinize the data and derive the findings.

1.6 Structure of the Report

The structure of this report is meticulously designed to offer a cohesive and comprehensive exploration of a study on school banking account problem and prospects, particularly in the context of Janata Bank the report begins with an introduction that provides an overview of the topic and its relevance in the current market scenario. A detailed literature review is presented, drawing upon existing research and theories to establish a foundational understanding of the subject. The subsequent section delves into the methodology, outlining the research approach, data collection methods, and analytical techniques employed in the study. The core of the report comprises an in-depth analysis and discussion, where the findings from the research are critically examined against the backdrop of Janata Bank practices. This section highlights key insights and contrasts them with organizational norms. Concluding the report is a section dedicated to recommendations and future outlook, offering practical advice for Janata Bank PLC and speculating on the upcoming problems and prospects of school banking accounts. This structure ensures a logical flow, facilitating a clear and thorough understanding of the topic.

CHAPTER-2 PROFILE OF JANATA BANK PLC.

2.1 Introduction

Janata Bank extends a cordial invitation to individuals keen on delving into the realm of progressive banking in Bangladesh. As a government-owned commercial bank, Janata Bank serves the financial requirements of a diverse range of business professionals. It stands out as one of the most successful banks among commercial banking institutions. Janata Bank plays a significant role in the socio-economic advancement of the country through its provision of financing to non-banking financial institutions involved in activities such as home loans, corporate financing, and loan syndication. Janata Bank consistently demonstrates foresight in the development of its market potential, often preceding the thinking and planning of others. Janata Bank PLC started its service with a vision of actively contributing to the socio-economic development of the country and ultimately positioning itself as a leading bank in South Asia. The Board of Directors, consisting of 13 members, is led by a chairman and includes representatives from both the public and private sectors. The bank is under the leadership of a highly respected banker who holds the position of Chief Executive Officer and Managing Director. The main office is located at Janata Bhaban Motijheel C/A, Dhaka, housing 10 divisions and 37 departments.

2.2 Historical Background of Janata Bank PLC.

Janata Bank (JB) stands as the second-largest commercial bank based on net worth, with an extensive network of 921 branches, and it is wholly owned by the Government of Bangladesh. Moreover, the Bank maintains connections with 1202 foreign correspondents worldwide. Janata Bank employs a total of 15,705 individuals. The primary goal of the bank is to actively participate in the socio-economic development of the nation by functioning as a financially sustainable banking institution. After the independence of Bangladesh in 1971, the former United Bank Limited and Union Bank Limited underwent nationalization and were later rebranded as Janata Bank. According to the Companies Act 1994, Janata Bank was officially incorporated as a Public Limited Company on May 21, 2007. It took over the business operations of the existing Janata Bank at that time, encompassing all its assets, liabilities, rights, powers, privileges, and obligations, through a vendor agreement signed between the People’s Republic of Bangladesh and Janata Bank Limited on 15 November 2007, with a retrospective effect from 1 July 2007. The Bank Companies Act 1991 governs all operational endeavors of Janata Bank. The bank offers a comprehensive range of commercial banking services to its clientele, encompassing deposit acceptance, extension of loans and advances, bill discounting and purchase, remittance, money transfer, foreign exchange transactions, guarantees, commitments, and more. The subsidiary of Janata Bank concentrates on facilitating the transfer of foreign currency earned abroad to Bangladesh. Janata Bank PLC has expressed its commitment to evolving into a diverse financial institution by expanding its operations into Merchant Banking and Islamic Banking. Currently, Janata Bank’s total deposits amount to Tk. 1,01,466 crore, and the bank’s authorized capital is Tk. 30,000 million, with a paid-up capital of Tk. 23,140 million.

Notably, Janata Bank received international recognition in 2009, being awarded the esteemed title of “World’s Best Bank Award-Bangladesh” by “Global Finance,” a renowned financial magazine based in New York. The selection of winning banks by “Global Finance” is based on a range of criteria, including asset growth, profitability, strategic relationships, customer service, competitive pricing, and innovative products

2.3 Vision Statement of the Bank

The vision of Janata Bank is to emerge as the foremost commercial bank in Bangladesh, actively contributing to the socio-economic development of the country, and to establish itself as a leading financial institution in South Asia.

2.4 Mission Statement of the Bank

Janata Bank PLC aims to function as an efficient commercial bank by adhering to a stable growth strategy, offering high-quality financial products, delivering excellent customer service through a skilled management team, and upholding good corporate governance across its entire banking network.

2.5 Objectives of the Bank

  • Attain customer satisfaction by implementing various banking activities and introducing innovative banking practices.
  • Enhance customer services through recent IT-based reforms.
  • Uphold a prominent position among the leading banks in Bangladesh by emphasizing profitability and ensuring a high level of asset quality.
  • Ensure a satisfactory rate of return on investment.
  • Uphold sufficient liquidity to meet maturing obligations and commitments.
  • Foster healthy business growth while maintaining a positive corporate image.
  • Establish and uphold effective control systems and transparent procedures.
  • Optimize the utilization of all available resources for efficient operations.

2.6 Core values

For Customers: Strive to be the most customer-centric bank by delivering exceptionally courteous and efficient service

For Employees: Prioritize the welfare of our staff members by providing a conducive working environment.

 For Shareholders: Ensure shareholders a justifiable return on their investment through the consistent generation of stable profits.

For Community: Fulfill our responsibility as a socially conscious corporate entity by actively contributing to the community through a dedicated adherence to national policies and objectives.

CHAPTER-3 SCHOOL BANKING ACCOUNT

3.1 Historical background of school banking account in Bangladesh:

The historical origins of school banking in Bangladesh date back to the 1960s, with the initiation of a school banking program by certain banks, including Muslim Bank. However, the program was short-lived. It was not until 2003 that AB Bank (formerly Arab Bangladesh Bank) introduced school banking services in Sunshine Grammar School in Chittagong. Unfortunately, this initiative also faced challenges. In light of the need to establish financial inclusion nationwide and promote savings habits among students, Bangladesh Bank (BB) directed all scheduled banks on November 2, 2010, to implement school banking. Among 61 scheduled bank, 59 banks currently operating in the country have implemented school banking services to varying degrees. Eastern Bank Limited (EBL) took the initiative by being the first to respond to the circular issued by the central bank, introducing ‘EBL Junior,’ a savings account specifically tailored for students. The objective was to encompass the younger generation within the banking system.

3.2 Present status of school banking in Bangladesh

As per the report, as of the last year, there were a total of 3,966,812 accounts across 59 banks, collectively holding a deposit of Tk. 23,584.50 million.

The school banking program encompasses services tailored for children, including online banking, ATM usage, and debit and credit cards. These initiatives aim to enhance financial awareness and management skills among the “future generation.” The conference resulted in the implementation of several measures to further advance the objectives of the school banking program. Here are the actions derived from the conference:

  • The initiative aims to expand the school banking program across Bangladesh.
  • There is a push to encourage commercial banks to establish booths within schools to facilitate the program’s growth.
  • The Central Bank (BB) has imposed stricter regulations on school banking, allowing banks to issue debit cards at no cost, but with a monthly withdrawal limit of Tk. 2,000. However, this limit can be raised to Tk. 5,000 upon request from the guardian.

3.3 The process of School Banking:

The School Banking process involves students conscientiously allocating a portion of their daily expenses and subsequently depositing that amount into their individual bank accounts on a monthly basis. Additionally, any monetary gifts received from their parents or extended family members during birthdays and festivals are also included in these deposits. It is worth noting that the student’s intention is to accumulate savings that can be utilized for their future educational endeavors, thereby alleviating the need for financial assistance from their parents. In terms of eligibility:

  • Children between the ages of 6 and 18 are able to open an account under this program.
  • However, it is important to emphasize that only the child’s parents are permitted to assist in the account opening process.
  • Furthermore, the minimum initial deposit required for this account is a nominal amount of TK. 100.

3.4 Rules and regulations of school banking of Janata bank

The establishment of regulations and guidelines for School Banking in Bangladesh was initially carried out by the Bangladesh Bank, particularly under its Green Banking and Corporate Social Responsibility (CSR) department, on the 28th of October, 2013.The primary elements of this decree are as follows:

Account open: Students between the ages of 6 and 18 are eligible to open an account.

Account Management: Parents or legal guardians of the students will be responsible for overseeing and managing the account.

Form: To open this account, both students and parents are required to submit a personal information form. The signature of the legal guardian is mandatory on both forms.

Account Type: This is a savings account, and if required, the savings from this account can be transferred to any other type of savings scheme.

Minimum opening balance: The minimum initial deposit for opening this account is 100tk.

Citizenship Requirements: Both the account holder student and their parents must be citizens of Bangladesh. The necessary documents include:

  • Birth certificate of the student.
  • Attested copy of identity card/last month’s due receipts from the school.
  • Passport size attested photographs of the student (2 copies).
  • Passport size photograph of the legal guardian with proper identification (2 copies).
  • All received documents must be preserved in the bank mandatorily.

Source of Finance: It is imperative to ensure that the source of funds is legal, and all transactions must be conducted in a rational manner.

ATM Card Information: An ATM card (solely debit) can be issued for this account. A maximum of 2000 TK per month can be withdrawn at a time using this ATM card. However, upon the guardian’s request, this amount can be increased up to 5000 Tk. A system for SMS transactions will be in place, providing alert messages to the guardian’s mobile whenever a transaction occurs, and detailed information will be sent through SMS format to the guardian’s mobile.

Charges Policy: No service charge or fee can be imposed on this account without government approval. These regulations will also be applicable to the issuance and renewal of ATM cards.

Student Fee Collections: Monthly school fees and other payments for students can be collected through this account. This program aims to cover students from all schools, and branches are making efforts to ensure that all students can avail themselves of this banking service.

School Bank Counter: To assist students in their banking activities, branches have the option to establish a dedicated special counter or desk.

Deposits from Scholarships & Stipends: All types of scholarship and stipend funds can be deposited into this account.

Insurance Facilities: Accounts under the school banking program will be provided with education insurance facilities. This ensures assistance for students facing financial difficulties in covering educational expenses.

3.5. Benefit of School Banking

  • By engaging in the field of banking at an earlier stage in life, an individual develops a mindset focused on saving, which subsequently contributes to their financial stability in later years.
  • School banking provides account holders with the opportunity to utilize a 24-hour online banking service for the purpose of timely tuition payment and the acquisition of books and stationary. School banking accountholders are able to conduct their general banking activities without incurring any fees, in addition to being able to engage in online banking.
  • School banking account holders receive an exemption from the necessity of maintaining a minimum balance requirement in comparison to other account holders.
  • The vast majority of banks provide debit and credit cards at a reduced expense; however, a select few banks distribute them free of charge, particularly in the context of school banking.
  • Interest is computed on the daily balance, enriching the account holders’ wealth. Over time, they can utilize the accumulated interest for academic purposes, including tuition fees, stationery, and other educational expenses.
  • The bank does not impose any fees for account maintenance, and school banking account holders are not required to maintain a minimum balance.
  • Through the implementation of school banking, students actively participate in various banking activities, showcasing their substantial representation within the population of Bangladesh. Consequently, this active engagement significantly bolsters the economic state of the nation.

3.6. Limitation of school banking

  • As Bangladesh is a nation lacking economic stability, a significant segment of its populace endures a life of destitution. These individuals find themselves unable to fulfill the everyday needs of their children, particularly in terms of education. Consequently, a large number of students lack the means to avail themselves of the school banking service.
  • The establishment of school banking has not been thoroughly established in Bangladesh. Due to its novelty as a banking service, it remains in the nascent phase of development.
  • The activities of school banking are distinct from the conventional functions of banking. School Banking adheres to specific rules and regulations in the execution of its various activities.
  • Many commercial banks in Bangladesh have already initiated the provision of school banking services, however, their endeavors to promote this service are insufficient.

CHAPTER-4: FINDINGS & ANALYSIS

4.1 Introduction

The School Banking Account is a distinctive banking initiative aimed at school-going children and their parents, providing insights into banking systems and fostering a savings habit from an early age. This account is a savings deposit account held under the student’s name and operated jointly, requiring the signature of the guardian, who can also be designated as the nominee for the account. The regulations and guidelines for School Banking were initially established in Bangladesh by the Bangladesh Bank under its Green Banking and Corporate Social Responsibility (CSR) department on October 28, 2013.

4.7 Data Analysis Method

The study utilized a total sample size of 225 participants. The method employed for sample selection was Convenience sampling technique.

4.7.1 Major Findings

Q-1: School banking account contributes to financial inclusion

Table-1: Frequency distribution table of financial inclusion

 FrequencyPercentage
Strongly Disagree  38  17%  
Disagree  22  10%  
Neutral  37  16%  
Agree7232%
Strongly Agree  5625%
Total225100%

The table above illustrates that 25% of participants strongly agree, 32% agree, 16% are neutral, 10% disagree, and 17% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that School banking account contributes to financial inclusion.

Q-2: Government can provide stipend through school banking at low cost

Table-2: Frequency distribution table of low cost                   

 FrequencyPercentage
Strongly Disagree  0  0%  
Disagree  27  9%  
Neutral  26  8%  
Agree7737%
Strongly Agree  9546%
Total225100%

The table above illustrates that 42% of participants strongly agree, 34% agree, 12% are neutral, 12% disagree, and 0% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that Government can provide stipend through school banking at low cost.

Q-3 Students are considered as potential future customers for the bank.

Table-3: Frequency distribution table of potential customer

 FrequencyPercentage
Strongly Disagree  22  10%  
Disagree  24  11%  
Neutral  61  27%  
Agree4721%
Strongly Agree  7131%
Total225100%

The table above illustrates that 31% of participants strongly agree, 21% agree, 27% are neutral, 11% disagree, and 10% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that Students are considered as potential future customers for the bank.

Q-4: School banking plays a crucial role in making children familiar with formal banking activities

Table-4: Frequency distribution table of familiar with formal banking

 FrequencyPercentage
Strongly Disagree  35  16%  
Disagree  36  16%  
Neutral  48  21%  
Agree6127%
Strongly Agree  4520%
Total225100%

The table above illustrates that 20% of participants strongly agree, 27% agree, 21% are neutral, 16% disagree, and 16% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that School banking plays a crucial role in making children familiar with formal banking activities.

Q-5: Lack of publicity to promote this program

Table-5: Frequency distribution table of lack of publicity

 FrequencyPercentage
Strongly Disagree  23  10%  
Disagree  47  21%  
Neutral  36  16%  
Agree4621%
Strongly Agree  7332%
Total225100%

The table above illustrates that 32% of participants strongly agree, 21% agree, 16% are neutral, 21% disagree, and 10% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable problem is that Lack of publicity to promote this program.

Q-6: The interest rate is comparatively lower than other commercial banks.

Table-6: Frequency distribution table of low interest rate

                             FrequencyPercentage
Strongly Disagree  38  17%  
Disagree  22  10%  
Neutral  37  16%  
Agree7232%
Strongly Agree  5625%
Total225100%

The table above illustrates that 25% of participants strongly agree, 32% agree, 16% are neutral, 10% disagree, and 17% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable problem is that the interest rate is comparatively lower than other commercial banks.

Q-7: Lack of modern banking facilities

Table-7: Frequency distribution table of lack of modern banking facilities

 FrequencyPercentage
Strongly Disagree  25  11%  
Disagree  46  20%  
Neutral  36  16%  
Agree4721%
Strongly Agree  7132%
Total225100%

The table above illustrates that 32% of participants strongly agree, 21% agree, 16% are neutral, 20% disagree, and 11% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable problem is that Lack of modern banking facilities.

Q-8: Too much formality to open this account

Table-8: Frequency distribution table of too much formality

                            FrequencyPercentage
Strongly Disagree  26  12%  
Disagree  42  19%  
Neutral  30  13%  
Agree7031%
Strongly Agree  5725%
Total225100%

The table above illustrates that 25% of participants strongly agree, 31% agree, 13% are neutral, 19% disagree, and 12% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable problem is that too much formality to open this account.

Q-9: Lack of professionalism of the employees

Table-9: Frequency distribution table of lack of professionalism

 FrequencyPercentage
Strongly Disagree  51  23%  
Disagree  67  30%  
Neutral  45  20%  
Agree3515%
Strongly Agree  2712%
Total225100%

The table above illustrates that 12% of participants strongly agree, 15% agree, 20% are neutral, 30% disagree, and 23% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. The lack of professionalism among employees is a notable issue.

Q-10: Banking services have spread to remote corners through school banking accounts

Table-10: Frequency distribution table of spread to remote corners

 FrequencyPercentage
Strongly Disagree  27  16%  
Disagree  31  7%  
Neutral  43  15%  
Agree7136%
Strongly Agree  5326%
Total225100%

The table above illustrates that 24% of participants strongly agree, 31% agree, 19% are neutral, 14% disagree, and 12% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that Banking services have spread to remote corners through school banking accounts.

Q-11: This account makes the students economically strong

Table-11: Frequency distribution table of economically strong

              FrequencyPercentage
Strongly Disagree  23  10%  
Disagree  28  12%  
Neutral  26  12%  
Agree9643%
Strongly Agree  5223%
Total225100%

The table above illustrates that 23% of participants strongly agree, 43% agree, 12% are neutral, 12% disagree, and 10% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that this account makes the students economically strong.

Q-12: This program helps to government to maintain any type of educational related task with low cost

Table-12: Frequency distribution table of educational related task

              FrequencyPercentage
Strongly Disagree  22  10%  
Disagree  29  13%  
Neutral  27  12%  
Agree8839%
Strongly Agree  5926%
Total225100%

The table above illustrates that 26% of participants strongly agree, 39% agree, 12% are neutral, 13% disagree, and 10% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that this program helps to government to maintain any type of educational related task with low cost.

Q-13: Lack of skill manpower providing service to people

Table-13: Frequency distribution table of lack of skill manpower

              FrequencyPercentage
Strongly Disagree  17  8%  
Disagree  23  10%  
Neutral  31  14%  
Agree9140%
Strongly Agree  6328%
Total225100%

The table above illustrates that 28% of participants strongly agree, 40% agree, 14% are neutral, 10% disagree, and 8% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable problem is that Lack of skill manpower providing service to people.

Q-14: The bank faces problems maintaining school banking accounts because of an insufficient workforce.

Table-14: Frequency distribution table of insufficient workforce.

              FrequencyPercentage
Strongly Disagree  21  9%  
Disagree  27  12%  
Neutral  26  12%  
Agree7935%
Strongly Agree  7232%
Total225100%

The table above illustrates that 32% of participants strongly agree, 35% agree, 12% are neutral, 12% disagree, and 9% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable problem is that the bank faces problems maintaining school banking accounts because of an insufficient workforce.

Q-15: The primary purpose of the programs is to benefit the community or provide commercial benefits to the providers

Table-15: Frequency distribution table of provide commercial benefits

                     FrequencyPercentage
Strongly Disagree  26  12%  
Disagree  38  17%  
Neutral  36  16%  
Agree6428%
Strongly Agree  6127%
Total225100%

The table above illustrates that 27% of participants strongly agree, 28% agree, 16% are neutral, 17% disagree, and 12% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that the primary purpose of the programs is to benefit the community or provide commercial benefits to the providers.

Q-16: School banking programs claim to help children develop long term savings habits

Table-16: Frequency distribution table of long term savings habits

              FrequencyPercentage
Strongly Disagree  13  6%  
Disagree  19  8%  
Neutral  14  6%  
Agree8337%
Strongly Agree  9643%
Total225100%

The table above illustrates that 43% of participants strongly agree, 37% agree, 6% are neutral, 8% disagree, and 6% strongly disagree. The table presents statistical information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that School banking programs claim to help children develop long term savings habits.

Q-17: Students are interested to open school banking account for free charges.

Table-17: Frequency distribution table of open account for free charges

              FrequencyPercentage
Strongly Disagree  17  7%  
Disagree  26  12%  
Neutral  23  10%  
Agree8138%
Strongly Agree  7835%
Total225100%

The table above illustrates that 35% of participants strongly agree, 36% agree, 10% are neutral, 12% disagree, and 7% strongly disagree. The table shows information on the issues and potential outcomes of school banking at Janata Bank. One notable prospect is that Students are interested to open school banking account for free charges.

Q-18: It is a very tiresome job to collect customer for school banking

Table-18: Frequency distribution table of tireless job to collect customer

              FrequencyPercentage
Strongly Disagree  30  13%  
Disagree  42  19%  
Neutral  32  14%  
Agree6328%
Strongly Agree  5826%
Total225100%

The table above illustrates that 26% of participants strongly agree, 28% agree, 14% are neutral, 19% disagree, and 13% strongly disagree. The table table information on the issues and potential outcomes of school banking at Janata Bank. One notable problem is that it is a very tiresome job to collect customer for school banking.

4.8 SWOT Analysis

  • Strengths: Janata Bank have numerous branches, enabling them to provide services to a large number of people and efficiently manage a substantial consumer base in the country.
  • Weaknesses: I have observed that the bank engage in minimal advertising across various service and product sectors.
  • Opportunities: If the bank provide better service quality, they can easily gain strong customer relationship. If JB’s top management invests in regularly training employees on the use of technological resources, they can achieve better results in the future.
  • Threats: Many financial organizations surround JBL, offering similar services and striving to secure a better position in the market by providing superior services compared to JB.

4.9 Problem Identification and Recommendations:

4.9.1 Problem Identification

  • During my internship period, I observed that the banking operations, work environment, organizational culture, discipline, norms were highly satisfactory. But some employee conduct towards clients were not satisfactory.
  • The account opening process still appears somewhat challenging for some guardians.
  • Some employees consider it as a very difficult job to acquire a large number of students each year.
  • The bank faces problems maintaining school banking accounts because of an insufficient workforce.
  • The bank have lack of publicity about the school banking program.

4.9.2 Recommendations

  • Offering special rewards for students holding these accounts.
  • Recruiting the skill manpower for school banking account.
  • Increasing interest rate
  • Offering contemporary banking services such as mobile banking and ATM cards.
  • Minimizing unnecessary formality and avoid causing any inconvenience or distress to customers, particularly students.
  • Organizing promotional efforts, including advertisements, consistent articles, and social events, to raise awareness about school banking
  • Providing special rewards for employees involved in the school banking program can motivate their efforts and enhance job satisfaction.

4.10 Summary of the Chapter

The report on Janata bank PLC reveals critical findings regarding the school banking account problems and prospects. It identifies some problems such as: insufficient workforce, less publicity, difficulty to collect customer etc. The report recommends offer special remuneration, recruited skill manpower, increase promotional activities. The report emphasizes the prospects of school banking account.

CHAPTER-6: CONCLUSION

6.1 Conclusion

Janata Bank PLC, as the second-largest State-Owned Commercial Bank (SCB) in Bangladesh, plays a pivotal role in overseeing the country’s comprehensive financial activities. Recently, the bank introduced the school banking program in Bangladesh. This initiative not only strives to assist students and parents in accumulating savings over time but also seeks to cultivate a savings habit from an early age.

This study focuses on shedding light on the current challenges and opportunities within Janata Bank PLC’s school banking system, identifying the underlying reasons, and proposing potential solutions. Primary and secondary sources were utilized to collect necessary data, employing a structured questionnaire for the study. Information was gathered through consultations and discussions with bank personnel. While at Janata Bank PLC, I conducted a SWOT analysis to evaluate the organization strengths, weaknesses, opportunities, and threats. The organization strengths are numerous branches, enabling them to provide services to a large number of people and efficiently manage a substantial consumer base in the country. The challenges include less publicity of the product and services. Provide quality service is one of the opportunities to create customer relationship.

Key issues in Janata Bank school banking include a lack of publicity, lower interest rates compared to other private commercial banks, excessive formality for students, and a deficiency of professionalism among bank employees. Among these, the most significant problems are identified as a lack of publicity and modern banking facilities. On the positive side, the major prospects include future potential customers who are economically strong and familiar with modern banking activities.

Despite these challenges, Janata Bank banking services are progressively modernizing. Students are increasingly choosing the bank in the hope of receiving better services compared to other commercial banks.

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