Analysis for Integrated Case Study Analysis

This case study analyzes the challenges faced by OCBC bank in terms of customer loyalty for credit cards. The study aims to evaluate the credit card industry of Singapore, identify challenges faced by OCBC bank, and suggest suitable ways to enhance customer loyalty. The SERVEQUAL model is used to identify gaps in service quality and suggest solutions to enhance customer loyalty. The study finds that OCBC bank is facing issues related to customer loyalty and trust, and is underperforming in comparison to its competitors. The study suggests that the bank needs to maintain proper communication and transparency to gain the trust of customers.

Integrated Case Study
Analysis

Executive Summary
The current project is based on analysis of customer loyalty in terms of credit cards with
special reference to OCBC bank. In the given case, there is study of OCBC bank that bank that is
a renowned banking and financial institution which offers ample of services like net banking,
deposit and withdrawal of money, credit cards and more. In the current time, the respective entity
is likely to face issues related to customer’s satisfaction in terms of credit cards. Here, they are
facing issues of lower sales of credit cards that will affect revenue & profitability in future period
of time. It is analyzed that the entity is facing service quality gaps in terms of communication
gap, knowledge gap, satisfaction gap and more. Also, they are underperforming than competitors
that directly affect loyalty and trust of buyers. It is suggested that the respective entity needs to
maintain proper communication, transparency to gain trust of customers.

Table of Contents
Introduction.................................................................................................................................................4
Statement of problem..............................................................................................................................4
Research Aim and objectives...................................................................................................................4
Structure of report:..................................................................................................................................4
Description of situation...........................................................................................................................5
Problem statement, plan of analysis............................................................................................................6
Analysis and Findings:................................................................................................................................9
Solution to the problem.............................................................................................................................10
References.................................................................................................................................................13

Introduction
Statement of problem
In the present, customers are considered as one of the most imperative part of the
company as they help in terms of generating huge amount of revenue so that the entity can grow
and succeed. In addition to this, customers are also considered as a crucial source of revenue that
allows the organization to grow in future period of time. Nowadays, it is highly imperative to
keep the customers satisfied so in order to maintain competitive edge in longer run (Aslam, Tariq
and Arif, 2019). In context of present study, selected company is OCBC bank which is well-
known in Singapore. The respective bank is a multinational entity that is operating within more
than one country. It offers necessary financial and banking related services to fulfill the needs &
requirements of customers in an appropriate manner. In the current time, the respective entity is
likely to face issues related to customer’s satisfaction in terms of credit cards. Here, they are
facing issues of lower sales of credit cards that will affect revenue & profitability in future period
of time.
Research Aim and objectives
Research Aim: “To analyze customer’s loyalty for credit cards”. A case study on OCBC bank.
Research Objectives:
 To develop understanding regarding credit card industry of Singapore.
 To evaluate challenges and issues faced by OCBC bank in terms of customer loyalty
regarding credit cards.
 To identify suitable ways to enhance overall loyalty of customers regarding credit cards
in reference of OCBC bank.
Structure of report:
In context of present study, OCBC bank is taken into consideration that is a renowned entity of
banking and financial institution which has headquartered in Singapore. The respective bank is
likely to offer ample of financial services like credit cards, investment, deposit and withdrawal of
money, net banking and more. The present study is about evaluating the existing conditions of

the company with the help of suitable models and theories. In addition to this, existing position
of the entity has also been discussed in the following study along with suitable limitations.
Description of situation
In context of present study, there is analysis of customer loyalty in regards of credit cards
in reference of OCBC bank. In the present era, customers loyalty is considered as an important
aspect of business for each and every company. Here, loyal customers are likely to visit the
company frequently which leads the overall brand image of the entity at higher level so that the
entity can grow in significant manner. In addition to this, customers loyalty is all about
encouraging buyers to buy the products frequently for the attainment of pre-defined goals and
objectives within stipulated period of time (Rajeswari, Srinivasulu and Thiyagarajan, 2017). In
this context, credit cards can be understood as the financial products by which credit is offered to
the cardholder so that they can easily buy necessary commodities. Through credit cards,
cardholders are likely to borrow money from issues that is typically a bank or any financial
institution. In context of present study, there is selection of OCBC bank that is a renowned
banking and financial institution which offers ample of services like net banking, deposit and
withdrawal of money, credit cards and more. Maintain high trust among customers is crucial to
ensure high sale of credit cards. Here, loyal customers are likely to visit the company frequently
wherein if the customers are not loyal, they might switch towards other brands (Hung, Cheng
and Chiu, 2019). After going through with present case study, it is found that there are eight
major players which affects the operations & functions of the entity named as American express,
HSBC, Standard charted, CitiBank and more. OCBC bank was the third largest institution in
terms of transaction value by having nearly 15.9% market share. The main aim of credit cards of
the respective entity is to offer numerous core benefits to the buyers in an efficient manner. From
2015 to 2019, the transaction value of the respective bank increased from 26.5% to 26.9%.
However, they did not perform well in terms of positive customer attitude and loyalty as the
entity is likely to underperform in terms of expectations of customers. Hence, it is crucial to
adopt appropriate steps in terms of ensuring future growth & enlargement of the business
organization.

Problem statement, plan of analysis
Now, customer loyalty as well as satisfaction is considered highly imperative to maintain
long-term sustainability in the competitive business environment to maintain emotional
connection between brands and customers. It is imperative to prevent the buyers to switch from
one brand to the other. Further, customer loyalty is also useful in order to retain them within the
organization for longer duration (Darzi and Bhat, 2018). In simple words, customers loyalty is
helpful in describing the way how customers interact with a particular brand willingly. Also, it is
the measure of customer’s likeliness to purchase the products of a particular brand over the
period of time. In other words, customer loyalty develops due to positive experiences of buyers
with brand in past years. Also, it includes the value received by the buyers while purchasing the
products or availing the services (Machado, Karray and de Sousa, 2019). Also, customer loyalty
and satisfaction has significant interrelation with each-other. When customers are satisfied, they
are likely to do repeat buying of products that further leads the company towards enlargement in
terms of revenue and profitability. It is monitored that satisfied customers are the major asset of
a business entity as they do not only buy product or avail services but they are also likely to
stimulate others to do buy the products of a particular brand which further helps in enlargement
of the business entity (Aksoy and et. al., 2017). In the present case, there is discussion regarding
loyalty of customers towards credit cards about a selected banking and financial institution.
In the given case study, the selected bank is OCBC that is renowned for its financial
products and services across Singapore. However, the credit card industry is considered as
significantly competitive industry where ample numbers of players are working like American
express, DBS, Standard charted and more. These banks are likely to offer credit cards and other
such financial services to ensure future growth. In 2019, there were transaction values of nearly
$43 billion more than 18.6% than 2015. From 2015 to 2019, the number of such cards declined
from 9.2 million to 8.9 million. As a result, the respective brand has to face stiff competition
within the industry that will further affect their growth significantly. In Singapore, the credit card
industry has been reached at saturation as now, customers are less likely to consider that their
cards aw useful. In present case, the respective bank is facing profound issue related to trust and
loyalty of customers in terms of credit cards. Due to lack of customer trust, they got last rank in
terms of credit card issuers across the nation. It is found that the entity was facing tremendous
issues related to trust and loyalty of customers based on the two crucial measures such as trust

and loyalty among customer groups (Shahzad and et. al., 2021). Also, it is monitored that the
respective bank was underperforming in terms of loyalty and performance than its competitors.
SERVEQUAL model:
This model is considered highly imperative to analyze the expectation level of customers
and their perception regarding the services offered by the entity. The main aim of using such
model is to assess the gaps between expectation of customers and actual services being offered
by the entity. In this context, gaps are mentioned below:
Knowledge Gap: In case of present organization, they are facing knowledge gap where
they are unable to provide adequate amount of information to the users regarding credit cards. In
simple words, customers do not find the information enough and appropriate that is being offered
by the company (Kim, Wang and Roh, 2021). In present case scenario, it is found that managers
of the respective bank found it complex to understand the needs & requirements of buyers which
further lead towards creating huge gap.
Standards Gap: Every company has particular policy which are useful in terms of
maintaining continuity in business operations. If policies and standards of the entity are not
likely to match with buyer’s perception, then standard gap arise (Santouridis and Veraki, 2017).
It is monitored that OCBC bank is not likely to face such gap between customers and
management.

Delivery gap: Customers have certain pre-defined level of expectations regarding
services. When expectation level of the buyers does not match to the service offered by the
entity, it caused delivery gap. It is imperative to consider this gap profoundly to make necessary
improvements in the overall service quality (Prentice, Dominique Lopes and Wang, 2020).
Through the feedbacks taken by the customers, it is possible to facilitate necessary improvements
in the overall quality of services. In case of selected bank, they are facing delivery gap due to
their underperformance in terms of offering adequate level of services to the buyers.
Communication Gap: Here, organization is likely to do false promises to the customers
regarding the quality and delivery of services. In such situation, wrong expectation is created
through the message delivered by the company to its clients (Bapat, 2017). In case of OCBC
bank, they do not have any communication gap as they are not likely to do any false promises
regarding their service quality.
Satisfaction Gap: In this situation, knowledge gap ad communication gap is combined
which creates overall difference between perceive and actual quality of services offered by the
entity (Jain and Aggarwal, 2017). In case of OCBC bank, it is found that there is difference
between actual and perceive quality of services that will profoundly affect the revenue and
enlargement of the business organization.

Analysis and Findings:
OCBC bank is one of the prestigious and well-known banks of Singapore. It offers ample
of financial services like deposit & withdrawal of funds, net banking, credit cards and so on.
They aim to offer maximum types of financial services to their customers to maintain high level
of satisfaction and trust among them. As per the given case scenario, the respective institution is
facing issues in terms of customer loyalty and trust. Also, customers have been lose interest in
the services being offered by the respective financial institution. Also, they are facing numerous
complexities in terms of maintaining high level of trust and loyalty among buyers to attract the
customers to buy their cards (Wang and Zhang, 2018). Due to this, the respective entity faced
deep decline in overall sale of credit cards and got least rank in terms of trust and loyalty. It
shows that the entity is facing profound issues related to customer loyalty that will directly affect
their market reputation. Also, it is found that the respective bank is underperforming in
comparison of its competitors and in terms of loyalty metrics of buyers.
After going through, the above-analysis, it is analyzed that OCBC that is renowned for its
financial products and services across Singapore. However, the credit card industry is considered
as significantly competitive industry where ample numbers of players are working like American
express, DBS, Standard charted and more. These banks are likely to offer credit cards and other
such financial services to ensure future growth. The main aim of purchasing credit cards is to get
benefits like targeted promotion, discounts and many more. Here, cardholders can get the cash
back and refund as well on their spending. For this purpose, cash back is provided in numerous
forms like direct offsetting, credit cards bills and so on. Additionally, customers also get
necessary reward points while spending which can be further used to redeem the vouchers in
significant manner. Through the analysis of case study, it is found that OCBC bank used to hold
the position of one of the biggest card holders with 15.9% market share. On the other hand, the
other top two issuers named as UOB and DBS has nearly 26.9% and 20.3 % market share
respectively. Here, OCBC bank offers numerous types of credit cards like 365 card, NTUC plus
credit cards, cash flow master cards and more. There are different types of benefits can be get
through different cards such as food delivery, cash back on travel and more. Through NTUC
credit card, it is possible to get cash back and saving on fuel related expenditures. In addition,
cashflow master card provides benefits related to auto-installment card where payment can be
spilt easily and provide nearly 1% rebate on all types of spending. The main aim of offering such

benefits is to attract more number of customers to avail the credit card facilities to get better
outcomes in future period of time.
Through above-analysis, it is monitored that OCBC bank is facing numerous issues
related to loyalty and satisfaction of buyers that put a direct influence on the overall sales &
profit margin of the business organization. It is found that the respective entity is
underperforming relatively to its competitors like DBS and UOB bank. Therefore, they started to
lose trust among customers which eventually reduced down the sale of credit cards. By applying
SERVEQUAL model, it is found that the respective organization is dealing with numerous gaps
like knowledge gap, service quality gap, satisfaction gap and so on. Also, the respective banking
institutions is providing different types of credit cards so that they can fulfill needs &
requirements of customers in an efficient manner. However, they are not able to share the
information with customers in an adequate way that is creating communication gap in regard of
sharing necessary amount of information with potential buyers. Moreover, the entity is facing
significant issues to maintain significant level of customer loyalty and satisfaction. This will put
direct impact on the existing level of revenue and profit margin of the business organization. For
maintaining better position in competitive environment, it is imperative for OCBC bank to
facilitate improvements in their services for attainment of stipulated goals within pre-defined
period of time.
Solution to the problem
After analyzing the above-mentioned information, it is analyzed that the selected Bank is
facing ample of issues that put direct influence on their productivity & profitability. The major
issues that are being faced by the entity are related to customer loyalty and trust. The respective
financial institution is working in finance & banking industry which is highly competitive. In the
credit card industry, ample of well-known players are already working. Hence, it is required to
take suitable steps for bring further improvements. In this regard, necessary recommendations
are mentioned below:
 Enhancing customer loyalty is one of the most essential steps that need to taken by
OCBC bank with an aim to ensure long-term retention of clients. For this, it is
imperative to implement appropriate strategies like taking feedbacks, maintaining healthy

relations with clients and more. By following such strategies, it is possible to improve the
overall level of customer satisfaction in order to ensure long-term retention of buyers in
significant manner. By this way, the respective entity can earn potential amount of profit
margin to ensure success in future.
 Communication is the key of success of every business as it is useful in maintaining
proper flow of information within the organization. By maintaining proper
communication with buyer, it is possible to maintain long-term relations with them that
will benefitted for several years. For this purpose, different mediums of communication
can be used like websites, emails, social media platforms and more (Williams and et. al.,
2020). By effectively utilizing such tools, it is possible to maintain proper flow of
information across the entity. Further, it will help in maintaining constant interaction
between the company and its clients that will create high customer loyalty in significant
manner and provide opportunities to the entity to earn high amount of revenue as well.
 In the present era, it is imperative to maintain necessary transparency in business. When
customers have access of necessary information related to the company, it helps in
building trust and loyalty in significant manner (Bagla and Sancheti, 2018). For this
purpose, OCBC bank is suggested to adopt different platforms such as social media,
emails and more. By using such tools, it is possible for the entity to make customers
aware regarding the current position of the company that will further help in building
trust and loyalty in an appropriate way. Maintaining regular communication will also
help in maintaining transparency and trust among the buyers to get better outcomes in
future period of time.
 For sustaining in the current competitive environment, customer satisfaction is highly
imperative. Therefore, it is suggested that OCBC bank needs to take suitable steps to
keep the customers satisfied and happy. In this regard, they can conduct survey to gather
the opinion of clients in order to facilitate further improvements in the overall services to
attain high level of customer satisfaction in an efficient manner.
 It is suggested that OCBC bank needs to adopt suitable customer loyalty programs to
improve overall level of customer satisfaction. Here, the business managers of OCBC
bank can follow suitable strategies such as perks, rewards and so on. While getting
rewards to become loyal, it stimulates customers to avail the services of such financial

institution to get positive outcomes significantly. Therefore, they not only buy the
products but also encourage others to purchase such products.
The above-mentioned recommendations are effective and useful for selected company to
enhance their overall level of services. Adopting and implementing such recommendations will
prove helpful in terms of improving overall quality of services of the respective bank. Further,
this will also prove useful in enhancing overall customer loyalty and trust to get better outcomes
in future period of time.

References
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