Consumer perception about Western banking services in Bangladesh

Abstract

Bangladesh is a third world country with an under developed banking system, particularly in terms of the services and customer care provided by the government run banks. Recently the private banks are trying to imitate the banking structure of the more developed countries, but this attempt is often foiled by inexpert or politically motivated government policies executed by the central bank of Bangladesh, Bangladesh Bank. The outcome is a banking system fostering corruption and illegal monetary activities/laundering etc. by the politically powerful and criminals, while at the same time making the attainment of services or the performance of international transactions difficult for the ordinary citizens, students studying abroad or through distance learning, general customers etc. From few years ago, some Western Banks started come in Bangladesh to expand their business by opening new corporate office. By providing world class customers services they try to satisfy local customers. At present, their most of the customers are rich people and corporate. They offer various try of saving facility for them. But general public do not prefer Western Banks because of huge deposit amount with lower interest rate, loan facility with high interest rate and easy way of account opening. In this report, I try to present overall consumer perception about Western Banking Services in Bangladesh. Why Bangladeshi people accepted Western Banks and their position in Bangladesh are included here as well. I am also included here, sorting of foreign banks and foreign named Bangladeshi banks as well as name & origin both are Bangladeshi. This report provides some recommendation for Western Banking services.