Business Communication

Final Report
UBank
BBA IV-A

Group Members:
Aimen Saeed
M. Fahad Khan Tareen
Umair Rana
Hassan Masood

Submitted To:
Maam Naila Masood

Micro Financing Bank: Ubank

Introduction
U Microfinance Bank Limited (Formerly known as Rozgar Microfinance bank Ltd.) was
incorporated as public ltd. Company On 29th of October 2003 under Company Ordinance 1984.
Ubank is supported by the mobile network that is Ufone, PTCL & Iht-e-Salat.
It was the 4th microfinance bank, licensed by State Bank of Pakistan under Microfinance
Institutions Ordinance 2001. Initially, Rozgar, Microfinance Bank Limited was a district wide
microfinance
Bank
(MFB)
operating
in
Karachi
district.
In August, 2012, Pakistan Telecommunication Company Limited (PTCL) has acquired 100%
shareholding of Rozgar Microfinance Bank Limited, after fulfilling required regulatory
requirements and change in name from Rozgar Microfinance bank Ltd. To U Microfinance bank
Ltd, it was awarded 14th license to operate at national level.
We aim to hire the best suitable candidate for any position without any discrimination based on
race, color, gender, nationality, ancestry, physical appearance, religion or disability. We at
UMBL thrive our best to ensure that the right potential is selected and recruited for the right job
and all the organization's procedures are followed in accordance to the UMBL HR Policy.
The bank registered office is situated at 2nd Floor, Eastern Half, Razia Sharif Plaza, Jinnah
Avenue Blue Area, Islamabad.
Vision:
To provide efficient and seamless financial assistance, Branchless Banking Solutions and Mobile
Banking to U at reasonable and affordable rates, providing the best banking services for our
customers, best environment, career opportunities and professional development for our
employees in order to be the best employer for U and maximize the potential to provide best
value for our shareholders.

Mission Statement:
To be the best Branchless, Mobile and Micro Finance Bank for U!
Core Values:

Honesty and Integrity

Empowerment with responsibility
Commitment and dedication
Family oriented service to External and Internal Customers
Delivering performance with fun

Upaisa Debit card, ATM launched for easy paisa by UBANK

Upaisa recently launched branchless banking services for its customers. The Upaisa services
provide its customers the facility to access in the easy way their financial transactions. Through
Upaisa debit card Ubank is providing many services to its customers that are mobile accounts,
money transfer and utility bills payment. These services are not only for Ufone customers any
mobile network users can use the facility of Upaisa debit card service all over the country.
Upaisa branchless services in Pakistan have reached 3.1 billion rupees transactions since it was
launched. The highest transactions are reported in Karachi, Lahore and Faisalabad. Salman
Wassay Chief Commercial Officer of Ufone said We are the last to enter the mobile financial
services area but we have a product that is sure to speak to the masses. Customers have a lot to
look forward to and as always Ufone is sure to offer services that no other telecom provider has
offered yet or in the near future. Upaisa provide the facility to all the customers they will use
the services of Upaisa all over the country with facing any kind of problem.
Easy paisa has officially launched the services of ATM card for its mobile account holders all
over the Pakistan. All the Easy paisa mobile account holders can get the services of ATM card
from telenor service center. Easy paisa has announced the charges of using ATM card. The
customer will pay 200 rupees card issuance fee per ATM card and transaction charges are Rs. 25
per transaction. The Easy paisa customers do not need to visit any Easy paisa outlets they will be
able to withdraw cash from any ATM machine. This service became popular due to which
Upaisa debit card, ATM launched for easy paisa by Ubank.

Interviews

Bank Policy:
We went to Ubank head office on 11th December, 2014. First we took the interview of junior
officer of administration, Rabia Asif, she told us about the bank policy. Ubank offers loans of 25
to 50 thousand as it is a micro financing bank. The borrowers should have two years of work
experience which can be agriculture, labor work e.t.c. Ubank lend loans to the people who want
to start new businesses, to farmers, labors and widows who are in need of money. The also lend
loans of 1.5 lacs for those who want to buy gold.
Ubank provides loans to the people of age 22 to 58 in urban areas and to the people of 18 years
in rural areas as people of rural areas are more independent and involved in agriculture type
activities.
Borrowers should have a valid NIC and he should be capable of paying bills more then 4 times a
year so that Ubank can see if the borrower is able to repay the loan or not. According to her
micro financing is a very costly activity and they also have to go to the doorsteps of people to
lend them money but before giving them money the borrower have to give guarantee to pay back
the loan.
Ubank equally provides loan male and female borrowers but Ubank does not provide loan for
any kind of illegal activity like gambling so first they have to make sure why someone is taking
loan from them.

More information about Ubank:

After taking interview of the junior officer we took the interview of credit and risk manager Ms.
Atteqa, she told us that Ubank currently have 15 branches in Pakistan and 10 more branches will
start operating at the end of December 2014. She told us that relationship officers (RO) are the
starters who take the requests of the people in need of money then they pass the request to the
Verification Officers who verifies or denies the request after investigation and then pass it on to
the branch manager and the branch manager then passes it on to the head office who have the
authority to approve the request for loans.
The whole process is shortly described in the chart made on next page.

Ubank Process of Lending Loans:

Relationship officer
(RO)

Verification Officer
(VO)

Branch Manager

Head Office

Then she told us about the different segments and facilities Ubank is providing to its customers
which are: Uapna Karobaar, Uasaan Gold, Ufori Qarza, Uagriloan, Ulivestock and many more
and they are still working on expanding their segments as Ubank started two and a half years ago
so it is still on its initial stages, it has a lot to cover and according to her Ubank will grow and
survive.
Furthermore she told us that Ubank is also working on differentiating itself from its competitors.
She told us about some of Ubanks segments in detail which is as follows:
UMunafabuksh enables to earn maximum profit on your idle funds. UMunafabuksh provides a
secure return over a range of fixed terms that is not exposed to market fluctuations.
U Rozana Munafa Account to provide the opportunity to earn income on your daily balances.
Earn profit daily while having access to your funs with no restrictions on deposit and withdrawal.
U Apna Karobaar is an individual loan with personal guarantee. The loan may be utilized to
expand small businesses.

U Zarai Qarza is designed to fulfill the needs of small and medium farmers. The loan may be
utilized to purchase seeds, fertilizers, pesticides, irrigation, rental or purchase of agricultural
equipments and tools.
She told us that Ubank is currently supported by cellular companies that are Ufone, PTCL and
iht-e-salat. The problems that Ubank has to face due to the political conditions of our country are
because of the strikes Ubank is unable to lend money to their customers on time. Another main
issue she filled us in about was that it is easier for people in Pakistan to give guarantee of
repayment of the loans and Ubank is sometimes unable to identify whether who is giving fake
guarantee and who is not.

Interview of the customers of Ubank:

The customers of Ubank are highly satisfied by the services Ubank is providing to them.
We took the interview of two borrowers. First one was a shopkeeper named Abdul Fazal who is
the owner of a general store. He was the only earning member of his family. He took loan two
times from Ubank to pay the rent of his shop and to purchase supplies for his shop. He told us
that the amount of he took was not much so he was able to return the loan back on time. Second
one was a widow with two sons and a daughter. Her name was Sadia Farook and she is a school
teacher and also the only earning member of the family. She took the loan three times from
Ubank for the preparation of her daughters wedding and she was also satisfied by the services of
Ubank.

Conclusions & Recommendations

After the research and interviews we concluded that Ubank is doing a great job providing
different facilities to the people who cannot afford much. It provides loans to the needy people
that are farmers who are in need of agricultural tools, for livestock businesses. Ubank also help
individuals to expand their small businesses or even to start businesses. Ubank is expanding with
a great pace as after the completion of 2 and half years its 25 branches will be operation all over
Pakistan. Its Upaisa debit card facility is providing easier way of transaction and transfers of
money.

We would recommend them to check all the former documents of the borrower rather then
checking only NIC and electric bills so that it will not be easy for the people to take advantage of
their loan facility. Another suggestion is that they should provide loans to 18 years to 58 years
old people in urban areas too so the people who are illiterate in urban areas can acquire education
as in urban areas the literacy rate is dropping day by day.