Introductions

1. Relationship Marketing
Relationship marketing refers to those marketing activities that are aimed at developing and
managing long-term relationships with the customers. The details about the customer, his
buying patterns, contacts, etc. are maintained in a sales database and an account executive is
assigned to fulfill the needs of the customers and maintain the relationships successfully.
Relationship marketing recognizes the value of a customer and the significance of keeping
good relations with him.
Relationship marketing recognizes the value of a customer and the significance of keeping
good relations with him. Improvement in communication technology has created newer
methods of maintaining interactive relations with the existing and potential customers.
Nowadays, many firms store the birthdays and anniversaries of the customers in their
database and contact to wish them on those days. Marketers attempt to build goodwill and
confidence in the consumer’s mind by showing that they care. Relationship marketing is a
wide concept; it covers not just the customers, but also the other stakeholders who are vital to
the company. Strong ties are forged with the regular suppliers, shareholders and the
employees of the organization. The scope of relationship marketing extends far beyond the
scope of traditional marketing it is basically a long-term concept which leads to sustainability
and growth of the business over the years.
2. Relationship Strength
Relationship strength is a concept that makes a lot of intuitive sense in business. We
understand who we have a strong relationship with, who we have a weak relationship with,
and who we have no relationship with at all. However, to measure it, we need to look a bit
more deeply. Relationships that are strong are relationships where a lot of communication,
especially one-on-one conversations, is taking place now, and has taken place for a
reasonable amount of time. To measure relationships, we need to look at a few key factors:
How often do the two people interact?
Are those interactions one-to-one, or part of a larger group thread?
Are the interactions via Email? Phone calls or meetings? Social interactions?
Are the interactions “balanced” – i.e. is there a two-way dialog or mostly one-way?
How long has the relationship existed?
How much as the relationship strength decayed over time if there’s been no interaction?
 3. About First Security Islami Bank Limited
3.1. FSIBL Background
First Security Islami Bank Limited was set up on 29 August 1999 as a commercial bank. It
was incorporated under the company act 1994 to carry out banking business in Bangladesh.
With an authorized capital of 1 billion takes, FSIBL started its activities on 25 October 1999.
It started Shariah banking from 2009. National School Hockey Tournament was sponsored by
the bank and in 2014 FSIBL was awarded best sponsor by the Bangladesh Sports Press
Association (BSPA) FSIBL offers modern banking services through opening of several types
of investment and deposit accounts such as financing trade, health, and educational projects,
issuing letters of credit, bills collection bill, issuing letters of guarantee, hire purchase and
installments sale for capital goods, And they have also invested in numerous agricultural,
industrial and transportation projects . The mission of FSIBL is to be the top financial
institution in the country. They want to sit atop of all the financial institutions by providing
superior quality products and services which is backed by modern technology and skilled
human resource. These highly motivated and skilled personnel can deliver excellent banking
services. The bank has been working tirelessly to meet the challenges of the 21st century.
FSIBL pursue a philosophy „”a step ahead in time” which is maintained by all the personnel
in all sphere of the company’s activities.
 Strategy of FSIBL
To accomplish our client's best fulfillment and win their certainty.
To oversee and work the bank in the best way.
To distinguish a client's needs and screen their discernment towards gathering those
prerequisites.
3.2. Philosophy of FSIBL
At present the bank has as many as 52 branches across the country and it is committed to
become equal service providers compatible with the norms of commercial schedule bank. It
renders all types of personal, commercial and corporate banking services to its customers
within the purview of the Bank Companies Act, 1991 and in line with the directives and
policy guidelines laid down by Bangladesh bank.
 Vision
To be the premier financial institution in the country by providing high quality productsand
services backed by latest technology and a team of highly motivated personnel todeliver
excellence in Banking.
 Mission
In the words of First Security Islami Bank Limited, Our Mission is to provide Banking
Services to our Valued Clientele with Utmost proficiency & sincerity Reinforced by a
productive workforce and the latest state of Art Technology.
 Goals
Goal of FSIBL to establish & maintain the modern banking techniques to ensure the
soundness & development if the financial system based on Islami principles &to become the
strong efficient.
To be most caring & Customer friendly & service oriented bank.
To create a technology based most efficient banking environment.
To ensure sustainable growth.
To add effective contribution of the national economy.
 Objectives
The essential objectives of setting up Islamic banks everywhere throughout the world is to
advance, encourage and build up the application if Islamic standards in a business segment.
Its Adjectives are not quite the same as regular saving money are takes after:
Conducting interest-free banking.
Establishing participatory banking instant of banking on detour.
Creditor Relationship
Investing through different modes permitted under Islami Shariah.
Accepting deposits in profit- loss sharing basis.
Establishing welfare oriented banking system.
Extending co-Activities to the poor, the helpless and the low-income.
Group for their economic enlistment.
Playing a pivotal role in human development and employment generation.
 Performances of FSIBL
First Security Islami Bank Limited closed the year 2007 recording significant growth in every
sector despite volatile economic atmosphere of the country. During the year 2007 Deposit
Mobilization, enhancement of loans and 10 Daffodil International University effective risk
management has placed the bank in sound footings. Besides, Bank has maintained a strong
market position by adding value to the shares. It may be said without hesitating that overall
performance of the bank.
3.3. Corporate Information

Name of the Company First Security Islami Bank Ltd.

Chairman Mohammad Saiful Alam
Vice Chairman Mr. Mr. Mohammad Abdul Maleque
Managing Director Mr. Syed Waseque Md. Ali
Company Secretary (Current Charge) Abdul Hannan Khan
Legal Status Public Limited Company
Date of Incorporation 29 August 1999
Date of Commencement of Business 29 August 1999
Date of Permission from Bangladesh Bank 22 September 1999
Date of Opening of First Branch 25 October 1999
Registered Office House#SW(I)1/A, Road#8, Gulshan-1,
Dhaka-1212, Bangladesh.
Line of Business Banking
Authorized Capital Tk.10,000 Million Tk.10,000 Million
Paid up Capital Tk.7,840.99 Million
Date of consent of IPO 04 June 2008
Phone 9560229 (Hunting), 9550334, 7171029-30
Fax 880-02-9561637
Website www.fsiblbd.com
Auditors ShafiqBasak& Co, Chartered Accountants,
Shatabdi Centre (6th Floor), 292, Inner
Circular Road, Fakirapool, Motijheel, Dhaka.
Phone: 02- 7192098, Tel/ Fax: 02- 7194870,
E-mail:shafiq_basak@yahoo.com
Legal adviser The Law Counsel, Barrister & Advocates,
City Heart (7th Floor), Suit No. 8/8, 67,
NayaPaltan, Dhaka-1000. Phone: 9349647-8,
Fax: 9349866, 9567029, E-mail:
l.counsel@bdonline.com.

Table-1
3.4. Organizational Structure
The organization structure of FSIBL is given below:

Figure 1: Organization Structure of FSIBL

 Management of FSIBL
FSIBL is functioning with a highly professional management team headed by the
Managing Director Mr. Syed Waseque Md. Ali. Among other senior executives, 02
AMDs, 03 DMDs, 01 Principal at Training Institute, 10 EVPs, 11 SVPs, 13 VPs, 12
FVPs, 29 SAVPs, 27 AVPs and 100 FAVPs are discharging their services for achieving
organizational goals. Top management of the Bank is supported by highly qualified and
dedicated human resources numbering around 2072 officials in different grades.
 Human Resources Management
FSIBL being a third generation progressive Islamic Shariah Based private commercial bank,
it always emphasizes on the development of its manpower to provide quality services to its
clients. It believes that the factors which help the banks to survive and differentiate it from
other banks are closely interlinked with the quality of services and satisfaction of clients and
these depend on the qualification of employees, efficiency &effectiveness of work. As our
human resources give the organization a significant competitive edge, we continue our policy
of recruiting the best professionals and implement programs to develop and retain high
quality employees for facing challenges of 21st Century. The bank is making equal
opportunity for new talents in its process of recruitment and selection. It is continuing its
efforts towards the development of its manpower by providing required trainings, workshops,
seminar etc. in home and abroad to make them well equipped to provide quality services to
its customers. It arranges training and workshop in home and abroad for its top management
to formulate and implement appropriate policies for the betterment of the Bank. It also
arranges priority-based trainings and workshops to make its employees compliant to its
regulatory body and helps its employees for career development.
 Corporate Governance
Corporate governance is about how corporation is running its operations to achieve its
corporate objectives. Bangladesh Bank (BB) gives emphasis on implementing corporate
governance among the financial institutions and to do so, BB emphasizes implementation of
the guidelines issued by them for improving corporate governance in banking sector. Good
Corporate Governance practices enhance an entity’s corporate image and market credibility,
which attracts capital and increases its borrowing power. These can be reflected in the quality
of financial reporting and disclosures; strength of internal control system and internal audit
function induction of professionally competent, independent non-executive Directors on
corporate Board; formation of Audit Committee; delegation of authority to executives and
staff; protection of corporate governance for strengthening organizational strength. With a
view to ensure effective participation and deep interest in the affairs of the company and as
per Bangladesh Bank BRPD Circular No: 11, dated 27.10.2013 the bank has set up the
following 3 committees:
Executive committee
Audit Committee
Risk Management Committee
3.5. Products & Services
First Security Islami Bank Limited is providing modern banking facilities to the customer. It
is committed to fulfill every possible customer need with high efficiency and satisfaction. Its
team of dedicated professionals is committed to provide an unparalleled service and to bring
maximum benefits for the customers, the shareholders and the society at large. It’s a great
pleasure of First Security Islami Bank limited to introduce following services:

Products & Service

Accounts Specialized Personal Corporate

products & Banking Services
services

Products
Savings Online Banking Personal Loan Custody Services
Current Mobile Banking Car Loan Trade Services:
Short Term Deposit Self Service My future Import services
Fixed Deposit Banking (ATM) Other loan Export Services
Muddarraba Current Risk management
Uddipon Current Other Services:
Projonmo Deposit Factoring
Convertible Taka Forfeiting
Account Guarantees
Exporter Retention hire purchase financing
Quota leasing
A/c Tender bonds
Other Account

Figure 2: FSIBL Average Products & Services

 Discussion
4. Relationship strength between the First Security Islami Bank Limited
and its customers.

4.1. Customer Satisfaction strength

Customer satisfaction is one of the core objectives of the Banks of Bangladesh. Taking
decision to provide better facility to the customers is not easy in this fast changing
environment especially in Bangladesh. So, before making a decision the every necessary
information is carefully scrutinized by different departments and different people who have
gained expertise in their related field. Thus, it helps both in making correct decision and
smoothen the process to satisfy the customer need quickly. Customer Service is the set of
behavior that a business man undertakes during its interaction with its customers. It can also
refer to a specific person or desk which is set up to provide general assistance to customers.
Gaining high levels of customer satisfaction is very important to a business because
satisfaction customers are most likely to be loyal and to make repeat orders and to use a wide
range of services offered by a business. Customer satisfaction is equivalent to making sure
that product and service performance meets customer expectations. In the era of the
globalization, management of the companies is more concerned about Customer Satisfaction,
which leads to profitability. Satisfied customers are central to optimal performance and
financial returns. In many places in the world, business organizations have been elevating the
role of the customer to that of a key stakeholder over the past twenty years. Evidence is
mounting that placing a high priority on CS is critical to improved organizational
performance in a global marketplace. Customer satisfaction measurement helps to promote an
increased focus on customer outcomes and stimulate improvements in the work practices and
processes used within the company. It is commonly known that customer satisfaction is
related to customer loyalty, which in turn is related to profitability.
It is a Shariah-based bank which can be considered as a plus point for FSIBL. All
their financial exercises adhere to Islamic standards and guidelines. the second
gathering of the Shariah Council of First Security Islami Bank Limited hung on May
20, 2009, at Head Office of the Bank with Sheik (Moulana) Mohammad Kutubuddin
in the seat. These meeting emphasizes on the Islamic banking practices and how they
can improve their business maintaining the rules of Islam.
FSIBL has kept up and built up a basic, client benevolent association with its
customers to ensure that their clients are exceptionally fulfilled. They maintain a
professional relation with their clients by providing them higher quality service.
 It has a special saving scheme known as DPS for a lower-income group of people.
DPS stands for Deposit Pension Scheme. They have special schemes named Niramoy,
Bondhon, rapti etc.
For extraordinary customers, FSIBL gives administrations even after the financial
hour. Banking hour of FSIBL is 9.30am to 4pm but for special clients they give
services even after banking hours.
Stable source of fund and Wide market share is surely strength for FSIBL. According
to the financial statement of 2018 Net Asset value per share (NAV) was 16.91(solo)
17.04(consolidated) and in 2017 it was 14.89(solo) and 15.01(consolidated). So we
can see that NAV increased from previous year.
They pay much attention to making quality investments and transfer of proposition.
Their investment in 2016 and 2017 were respectably 226,065,271,502 and
273,593,618,710. This is higher than their competitors.
Every one of the authorities is devoted and legit to serve their obligation. Every
employee of FSIBL is dedicated to serve their clients to their best. They focus on only
how they can delight their clients.
Their top organization is particularly reasonable and capable. The top-level
organization has tremendous measures of involvement, gathered capacities and
become assuages by working in different bank of the country.
They perform morally in all circles of their banking and business exercises dependent
on Shariah. The Bank will guarantee that its reports and correspondence are valid,
finished 15 and exact and will not be misdirecting. It will keep up straightforwardness
in their business activities and dealings with customers, partners, and controllers.
4.2. Building customer relationships
Relationship marketing is defined as a form of marketing development tool from direct
response marketing campaign which emphasizes customer retention and satisfaction rather
than focus on the sales transaction. The more satisfaction of consumers on a service tends to
lead them to have trust on the firm. The more trust leads them to become the loyal consumers
to this service.
According to the HR Manager of FSIBL, they’ve already organized different training
programs for the employees regarding how to make and maintain very smooth and effective
relations with the customers. In this regard it would appear that FIRST SECURITY ISLAMI
BANK has been successful in achieving the following through relationship marketing.
 Attract New Customer
As I've previously said that FIRST SECURITY ISLAMI BANK basically depends on the
word- of-mouth communication strategy to attract new customers. But besides this side they
have strong base of sales employee also. Their main duty is to attract new customers through
making relations. And for this reason they frequently visit the potential customers and try to
convince them to take the service from FIRST SECURITY ISLAMI BANK. To attract new
customers, they sometimes offer different promotional tools like: insurance facility with
account opening.
 Customers Satisfaction
Happy customers are loyal customers and they offer positive word of mouth advertising
which can be invaluable .Customer satisfaction is the primary goal of relationship marketing
which is the surest way to improve the bottom line. To satisfy the customers FIRST
SECURITY ISLAMI BANK has some specific dimensions like the service charge, after sales
support, easy service recovery process, etc. Their service charge is more competitive than
others. Their after sales support was fantastic. After taking the service from FIRST
SECURITY ISLAMI BANK the customers can check their money transaction through online
or by visiting the nearest branch.
 Build Trust on Consumers’ Mind
FIRST SECURITY ISLAMI BANK is one of the biggest names in the banking sector all
over Bangladesh. They have been successfully operating their business in the Bangladesh
since 1999. Over the period of this time they have successfully established a brand image in
the mind of customers. This brand image builds trust in consumers’ minds. Beside this they
offer online facilities to consumers about their account, money etc. Their recovery options
also make them trustworthy to the consumers.
 Promise Fulfillment
Promise fulfillment is one of the most important dimensions of relationship marketing. Just
making promises is not enough, but delivering them by action is also very important. FIRST
SECURITY ISLAMI BANK is not an organization who just not only promises to the
customers but also keeps it with cent percent honesty. According to the marketing manager of
FIRST SECURITY ISLAMI BANK, they promise to the consumers that the money they
(customers) transact will be delivered to a specific location within a specific time. Unless in
any case of natural and man-made disaster, it is delivered within the promise time. Otherwise,
they compensate against any legal and logical complaints. FIRST SECURITY ISLAMI
BANK also keeps promises about their recovery option. Whatever FIRST SECURITY
ISLAMI BANK promises against the compromised service, they keep the promise.
 Retaining Customers
Relationship marketing helps to retain the existing customers who already want to leave the
firm. According to FIRST SECURITY ISLAMI BANK retaining process of the existing
customers of FIRST SECURITY ISLAMI BANK is confidential. However they stated a
process of retaining like first they find out why the customers left the firm through some
internal and external research. Then, they try to contact these customers and try to negotiate
with them to persuade them to avail the services of the bank like they used to.

4.3. Consumer Behavior in Service

Service cannot be delivered, when I have to consume at that point service is deliver. When
consume service there are some factors consider for consumer behavior.
 Need Recognition
Need recognition comes from what actually consumer can achieve. A safety & security need
to do a financial transaction safely, soundly and rapidly from one place to another.
 Information Search
Once customers have the need recognized, they gather information about the services that
might satisfy these needs
 Evaluation of Search Alternatives
After the information search customers have a list of similar banking services among what
they tend to compare one with the other. Among all the names consumer considers their
acceptance or rejection.
 Service Purchase
Finally consumers make the decision to choose the most competent banking service
considering the aforementioned behavioral aspects.
 Post Purchase Evaluation
After taking service there are four ways consumer evaluate service- word of mouth
communication, attributes of dissatisfaction, positive or negative biases and brand loyalty.
After consuming the FIRST SECURITY ISLAMI BANK service, consumer might be pleased
and might not be and may regret for not going to a competing service this type of behavior is
called cognitive dissonance or conflict.
4.4. Customer Expectations of services
Customer expectation is customer beliefs about service delivery. It is the standard against
which service performance is judged .Customers compares their expectation with perception
to evaluate the actual quality of service. FIRST SECURITY ISLAMI BANK has a strong
market attendance because of its strong points are based on attracting and developing good
quality staff who are able to exceed customer expectations so that customers stay loyal to the
business. However, customer expectations are always changing and this is something First
Security Islami Bank should consider. In this regard there are certain factors to focus on.
 Sources of desired service expectation
There are two important factors which influence that desired level of service. These factors
are: Personal needs
Personal needs are those states which are essential to physical and psychological aspects of
human being. These factors give a shape of what customer’s desire in service Personal needs
can fall into many categories including physical, social, psychological, and functional. In the
report when I asked the customers about the kind of service they expect from FIRST
SECURITY ISLAMI BANK BD based on the need theory of Maslow most of the people
replied that they want high social support and dependency/reliable needs from FIRST
SECURITY ISLAMI BANK service.
 Lasting service intensifiers
Lasting service intensifiers refer to the stable service factors that allow the customer to have
a higher understanding of the service (Liu, et al., 2000). This may happen when customer
expectations are driven by another person or group of people.
As a banking service provider in our country most of the customers expect that First Security
Islami Bank to improve their service and also service quality.
Sources of adequate service expectation
A different set of determinants affect adequate service, the level of service the customer finds
acceptance. There are five factors that influence adequate service.
 Temporary service intensifier
This is a short-term individual factor that makes a consumer want more of the service.
Several questions have been asked regarding these individual factors. One is FIRST
SECURITY ISLAMI BANK service promises on time delivery. The majority of the
customers said that FIRST SECURITY ISLAMI BANK.
Perceived service alternatives
It means other service provider from whom the maintains their promised delivery time.
customer can obtain service. I asked few existing customers about perceived service
alternatives. Most of customers replied that FIRST SECURITY ISLAMI BANk.
 Customer’s self-perceived service role
Degree to which customers have an influencestrong geographical coverage and the location
of this bank is easy to find. on the level of service they receive. In case of FIRST
SECURITY ISLAMI BANK customers can’t influence the level of service they receive.