SOLUTIONS TO DEVELOPING e BANKING SERVICES AT VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK VPBANK NUI THANH TRANSACTION OFFICE DA NANG BRANCH

DUY TAN UNIVERSITY PSU DIVISION - - TRAN THI THU THAO SOLUTIONS TO DEVELOPING E-BANKING SERVICES AT VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK VPBANK - NUI THANH TRANSACTION OFFICE - DA NANG BRANCH BACHELOR OF SCIENCE IN FINANCE - BANKING Da Nang, 2022 DUY TAN UNIVERSITY PSU DIVISION - - GRADUATE THESIS SOLUTIONS TO DEVELOPING E-BANKING SERVICES AT VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK VPBANK - NUI THANH TRANSACTION OFFICE - DA NANG BRANCH SPECIALIZATION: FINANCE - BANKING INSTRUCTOR : DANG LE VU STUDENT : TRAN THI THU THAO CLASS : K24PSU - QNH STUDENT CODE : 24202403874 Da Nang, 2022 DISCLAIMER I hereby declare that the graduation project: "Developing solutions for Ebanking services at Vietnam Prosperity Commercial Joint Stock Bank VPBank - Nui Thanh Transaction Office - Da Nang Branch" is the result of independent research and has never been published in any work of others The topic is a product that I have researched diligently during my studies at school as well as during my internship at Vietnam Prosperity Commercial Joint Stock Bank - Nui Thanh Transaction Office, built under the enthusiastic help of Mr teacher Dang Le Vu The information, data and figures given are clearly and fully cited Data collected and aggregated by individuals ensures objectivity and honesty I hereby and I would like to take responsibility for the truthfulness, legitimacy, and reliability of the research project Signature: Date: ACKNOWLEDGEMENTS Success is not only based on myself, but also on the support and support of many other people From the moment I started to study, I have received a lot of attention and support from teachers, family and friends I would like to thank the teachers of Duy Tan University for using their knowledge and enthusiasm to impart valuable knowledge to us during their study at the school I would like to sincerely thank the teachers of the international training department of the school for creating conditions for me to successfully complete the internship report like today Especially, I would like to sincerely thank my instructor, Mr Dang Le Vu, who enthusiastically guided, guided and accompanied me throughout the research process and completed the graduation thesis Besides, I would like to express my thanks to Vietnam Prosperity Commercial Joint Stock Bank VPBank - Nui Thanh Transaction Office - Da Nang Branch, and to the brothers and sisters in the bank for creating favorable conditions for me during my internship at the bank Having practical contact and answering questions helps me gain more understanding, practical knowledge and future job requirements In the process of practicing, as well as in the process of doing the test, it is difficult to avoid mistakes, I hope you will forgive them At the same time, due to the limited theoretical level as well as practical experience, the report cannot avoid shortcomings I would like to receive your comments and suggestions so that I can learn more experiences and lessons learn for yourself Thank you sincerely! Da Nang, May 2022 Student (Signature and Full name) Tran Thi Thu Thao TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES PREFACE Reasons for choosing a research topic In the current era, the industrialization trend is taking place at a rapid speed, harmonizing with all sectors of the economy Thanks to the advent of the Internet and Telecommunications networks, Commercial Banks also get closer to consumers, and the exchange of information between customers and banks is simplified with just a click of a mouse or phone’s keyboard From which, E-banking service has also developed at a strong speed, contributing to the banks' competitiveness and large income The rapid development of science and technology, especially the information technology industry, has strongly affected all aspects of socio-economic activities According to the general development trend of the world, e-commerce and its applications are bringing more and more benefits to society in general and the field of Finance - Banking in particular Applying e-commerce channel to providing banking services creates a new product distribution channel, thereby helping the bank increasingly diversify products and expand its scope of activities, enhancing its advantages competition and increase operational efficiency The development of e-banking services is an inevitable and objective trend in the modern economy, an inevitable result of the development of information technology in the era of international economic integration economic E-banking services are applied in banking business activities Currently, banks around the world have been strongly developing service activities of e-banking For our country, this is a completely new field and has only developed to a certain extent E-banking service is increasingly attracting more and more individual and corporate customers for usage due to its convenience, speed, and ability to serve anytime and anywhere, which helps many corporates improve the efficiency of capital usage in business Keeping up with current trends in order to survive and develop, e-banking service has also been developing more and more professionally at VPBank – Nui Thanh transaction office providing e-banking products and services more diversified, improving the turnover of service usage, increasing the number of customers to raise income from e-banking services However, transaction office still faces up to many difficulties in the market, in terms of competitiveness in the development of banking products and services derived from governance, human resources, and technology, equipment and marketing to increase the number of customers using e-banking services Hence, necessary for the to have synchronous solutions to solve the current difficulties and limitations in order to take advantage of opportunities to better develop e-banking services, contributing to reducing costs, increasing income, improving VPBank Stemming from those practical problems, I decided to choose the research topic: "Solutions to develop e-banking services at Vietnam Prosperity Commercial Joint Stock Bank VPBank - Nui Thanh Transaction Office - Da Nang Branch" Research Objectives The objectives of this study are: - Researching theories on developing e-banking services, and at the same time giving evaluation criteria and factors affecting the development of e-banking services - On the basis of the actual development of e-banking services at VPBank - Nui Thanh Transaction Office, evaluate the achieved results, limitations and causes of limitations in the development of e-banking services - Proposing solutions to develop e-banking services at VPBank - Nui Thanh Transaction Office Research questions - First, what is e-banking service? - Second, how is the e-banking service at VPBank - Nui Thanh Transaction Office developing? - Third, how to develop e-banking services at VPBank - Nui Thanh Transaction Office? Subject and Scope of Research - Place: VPBank - Nui Thanh Transaction Office - Time: Fom 2019 to 2021 10 - Content: The development of e-banking services at VPBank - Nui Thanh Transaction Office Research methods To accomplish the research purpose, the thesis uses dialectical materialism and historical materialism as the methodological basis At the same time, combining many methods including: statistics, analysis, synthesis and logical thinking with practical work experience Significance of the study Regarding the structure of the thesis, in addition to the introduction and conclusion, it is divided into parts: - Chapter 1: Overview of the development of e-banking services - Chapter 2: Situation of developing e-banking services in Vietnam Prosperity Joint Stock Commercial Bank VPBank - Nui Thanh Transaction Office - Da Nang Branch - Chapter 3: Solutions to develop e-banking services at Vietnam Prosperity Joint Stock Commercial Bank VPBank - Nui Thanh Transaction Office - Da Nang Branch 71 banking services with a long-term vision VPBank's e-banking service development strategy must ensure: + Starting from the needs of customers, from researching, surveying and analyzing customer needs to devise a suitable development strategy + Based on the practical conditions of VPBank - Nui Thanh Transaction Office (reporting on business performance) in recent years to develop a viable business strategy + Continue to supplement and complete mechanisms and policies to develop e-banking services in the near future - Third, develop banking technology VPBank - Nui Thanh Transaction Office needs to develop a long-term technology development strategy combined with the current human resource development at the branch The application of science and technology to the banking industry is quite expensive, so it is necessary to define a specific development strategy to meet a high level of technical expertise In addition, ensuring the safety in operating technology is a top priority, because all customer and bank information is stored on the network, only one problem with the system technology can make all data disappear Worse, it will cause the entire bank's operations to be delayed, affecting customers, and at the same time damaging the reputation of the bank - Fourth, improve the quality of human resources Human resources in a system always play an important role VPBank - Nui Thanh Transaction Office as well as the whole VPBank always focus on training and developing highly qualified human resources E-banking service is a modern banking service applying technology, requiring service providers to have knowledge and mastery of technology Develop policies to attract talent and keep good human resources, stick with and devote themselves to the development of the bank 72 - Fifth, keep innovating contents, formats and techniques in marketing, communication and brand promotion, actively contributing to strengthen and enhance transaction office's image, reputation and brand in the area 73 3.2 SOLUTIONS TO DEVELOP E-BANKING SERVICE AT VPBANK - NUI THANH TRANSACTION OFFICE 3.2.1 Improve human resources quality Improving human resources quality is an important condition in the development of e-banking services at the transaction office because human is always a decisive factor in the success of all business areas of the bank Therefore, it is necessary to improve the quality of the human resources at the transaction office from management to staff: - Transaction office leaders need self-train and learn professional knowledge to improve vision in the e-banking business fields they should be properly aware of and realize the need for the development of e-banking services to be able to direct the governance and to convey the idea of strongly developing e-banking services to all of the transaction office's staff - Staff in charge of e-banking business should make great efforts to comprehensive study and learn about e-banking operations, regularly update new knowledge about the development of banking services to confidently advise customers on the products and services, so customers can see the convenience and ease of using e-banking services - In addition, staff in charge of e-banking development also need to improve their skills in communication, introduction, consultation, and guidance for customers to use e-banking services, so customers are more interested in the bank and increase service use - The computer staff in charge of information technology at the transaction office also needs to spend time researching and improving the information technology profession to have a more thorought understanding of banking products and services to promptly solve problems related to networking and equipment serving for the development of e-banking services - The branch should have a training schedule on e-banking for its full-time employees through self-training at the branch or lecturers hiring to train or learn through the e-learning system Regularly update and supplement 74 knowledge about the latest e-banking products and services, when the Head Office introduces new types of products, with modern technology, and experiences from other organizations or banks Periodically organize knowledge tests of employees in charge of e-banking development 3.2.2 Promote marketing, communication and promotion of e-banking services Promoting marketing, communication and promotion of e-banking services is an important and necessary solution Currently, the promotion of e-banking to customers has not been focused on building, not really active in finding and exploiting existing customer sources, but mainly based on timely information That makes the efficiency of marketing activities not high, so it is necessary to complete and implement marketing activities in a comprehensive way Specifically, the following are the most typical tools in marketing, propaganda and promotion of ebanking services: - Advertising, one of the most important activities in the Bank's marketing activities, is decisive for the development of e-banking services Advertising aims to attract customers' attention and interest, persuade them to use E-banking products and services at the Bank, and realize the difference compared to other banks' services Consolidate customers' attitudes and beliefs about e-banking services at the transaction office - Promotion, there are many different promotional tools to achieve promotional goals depending on the market and competitive conditions The objective of the promotion is to encourage customers to quickly make a decision to use services at the Bank; or when VPBank - Nui Thanh Transaction Office wants to attract new customers, launch new products or services - Public Relations - PR, is a powerful tool, highly effective, and less expensive than advertising and promotion There are many forms such as sponsoring events, paying attention to social issues, consulting articles, research articles, exchanging, sharing experiences The choice of which measure should be based on situation of VPBank - Nui Thanh Transaction Office and must be in line with the general 75 development strategy and the image of the bank The purpose of this activity is to gradually occupy, create sympathy and position in the hearts of customers 3.2.3 Modernizing banking technology People are an important element of an enterprise or a bank However, without the support of technology, it is difficult for businesses or banks to operate effectively It has been proven that, when applying advanced technologies, banks will improve the quality and diversify products and services, develop modern banking services, increase customer convenience, and increase customer satisfaction bank competitiveness Compared to the current common ground, banks' technology platforms are considered advanced and capable of developing highvalue products and services Modernizing banking technology will help VPBank Nui Thanh Transaction Office as well as VPBank as a whole to improve quality, ensure operational safety, reduce management costs and improve competitiveness with banks same location Modern technology not only helps VPBank - Nui Thanh Transaction Office once again affirm the position and importance of e-banking services, but also a stepping stone for VPBank - Nui Thanh Transaction Office to become more confident when participating in the process economic integration at home and abroad In order to minimize errors as well as possible risks during the transaction of E-banking services, and at the same time better control to improve management quality because good technology will have high reliability if used done in a logical and orderly manner However, there are still errors that lead to delays as well as the process of using e-banking services of customers Therefore, VPBank - Nui Thanh Transaction Office needs to: 76 - Invest in upgrading and modernizing the bank (both hardware and software) at the branch and head office synchronously to ensure information connectivity and build a nationwide online interface network between branches and head offices, operating the business of the whole system, reducing distances between branches, facilitating the application of e-banking products and services and implementing remote banking transactions via the Internet, phone, personal computer - Standardize and modernize all banking operations, ensuring competitiveness with local and international banks in all activities Investment decisions in information technology not only require a large financial resource, but also require a large investment of brainpower to ensure that the selected technologies are appropriate and upgradeable to adapt to the rapid change of technological progress Technology human resources team keeps up with technological advances in the world, has the ability to appraise, properly evaluate and trust the consultants - Ensure the safety and security in the banking system, synchronize and unify the whole system This is considered a very necessary activity to prevent possible risks in banking activities in order to increase safety, prevent computer crimes as well as increase the trust level of customers when using banking services use products and services at VPBank - Nui Thanh Transaction Office 3.2.4 Developing e-banking products and services at competitive prices VPBank's e-banking products and services to be able to develop well need to meet the requirements of customers Especially in today's fierce competition, information explosion era, information can be obtained in one click Therefore, VPBank - Nui Thanh Transaction Office needs to direct products and services that are diverse in type and quantity Perform reasonable and effective market segmentation to design suitable products for each customer Besides, it is necessary to link products and synchronize products, to have a harmonious combination of old and new products, traditional products and modern products Especially, the 77 products and services that VPBank - Nui Thanh Transaction Office provide to the market must ensure competitiveness and reasonable prices compared to other banks in the same area Improving the quality of banking products and services will make customers feel satisfied and satisfied when using the bank's services In addition, reasonable price is also a point that VPBank - Nui Thanh Transaction Office must pay attention to It is necessary to investigate and update information about interest rates, service fees, promotions, and incentives of VPBank for customers on holidays and customers' reactions to these programs to have appropriate customer policy, marketing promotion policy Set up a reasonable, competitive interest rate and service fee schedule, suitable to the characteristics of the market 3.2.5 Improve the quality of e-banking services E-banking service quality is always the top concern of VPBank - Nui Thanh Transaction Office today It is a prerequisite to promote this service strongly and continuously in the coming future Therefore, in order to improve the quality of ebanking services provided by VPBank with the aim of bringing satisfaction to customers using these products and services at the bank VPBank needs to influence customer psychology in a positive direction, complete, upgrade and encourage: - Reliability has a direct impact on customer satisfaction with products and services provided by the Bank: VPBank - Nui Thanh Transaction Office must ensure a good transmission line to avoid congestion, interruption during the customer's use of the service Website needs to be operated smoothly to avoid errors when customers make any transaction through VPBank's ebanking service - Confidentiality is one of the impacts on customer satisfaction with e-banking products and services: VPBank - Nui Thanh Transaction Office needs to ensure that customer's account information is absolutely confidential when using any any e-banking service of the bank; avoid the case that customer's account information is leaked or abused Confidentiality and safety technology will create customers trust, peace of mind and comfort when using the bank's products and services 78 - Reaction directly affects customer satisfaction with e-banking products and services: When an incident occurs, VPBank - Nui Thanh Transaction Office receives consecutive feedbacks from customers Timely response, quick troubleshooting for customers is one of the factors that directly hit the customer's psychology, increasing the customer's trust level for the bank 3.2.6 Improve customer service Customer service plays an important role in business operations and ensures the Bank's success Customer service needs comprehensively operate on services and products offered to customers In the current fiercely competitive environment among banks, good customer care is considered to be one of the effective means to ensure the Bank’s goals and business efficiency achievement Delivering customer service excellently helps the transaction to improve the efficiency of advertising, and communication, enhance competitiveness competence, to reduce business costs, to create groups of loyal customers, …ect, helps to expand and occupy market share Customers using e-banking services always desire to be paid attention to and taken good care of by the Bank through its behavior, communication, consultation, dedicated guidance, good quality care, and appreciation programs Therefore, good customer service helps the transaction office to keep the existing number of customers using e-banking services and to further develop new customers - Improving facilities, modern technology to serve customers, improving the quality of products and services; Customer service must always be timely, accurate and prompt - Treat customers with respect; be gracious and friendly with customers; use understandable and cultured language; behave skillfully, flexibly, and satisfy customers - Pay attention to, listen to customer feedback, and know-how to consult, guide, and promptly solve situations and problems in customers’ transactions 79 - For customers who use lots of e-banking products and services with large transaction volumes, customer service should be done through the followings: + The gift to customers on their birthdays, business establishment, important anniversaries, or holidays + Set up preferential policies on service fees + Organize customer conferences and appreciation gifts to this group of customers 80 CONCLUSION OF CHAPTER From the general theory of e-banking services, analyze the current situation and evaluate the development of e-banking services at Vietnam Prosperity Commercial Joint Stock Bank VPBank - Nui Thanh Transaction Office, along with the development orientation of e-banking services in the coming next year In the trend of financial integration and liberalization, e-banking services can be said to open up many prospects but also many difficulties and challenges for the banking industry This will be considered the best competitive weapon of commercial banks in the same area due to its outstanding advantages compared to traditional banking services To develop e-banking services, not only from the Bank's own efforts, but also with the support and investment of the State, Government, economic organizations and most importantly, customers Therefore, it is required that VPBank - Nui Thanh Transaction Office have appropriate strategies, strategies and steps to develop e-banking services in the near future in a more positive and complete direction In chapter 3, solutions and recommendations were given to VPBank - Nui Thanh Transaction Office as well as to VPBank in order to promote and develop e-banking services: (1) Improve human resources quality; (2) Promote marketing, communication and promotion of e-banking services; (3) Modernizing banking technology; (4) Developing e-banking products and services at competitive prices; (5) Improve the quality of e-banking services; (6) Improve customer service Through the group of solutions proposed to contribute to promoting the development of e-banking services of VPBank - Nui Thanh Transaction Office in the near future 81 CONCLUSION The development of e-banking services is an inevitable and objective trend in the modern economy in the era of international economic integration The benefits of e-banking are great for customers, banks, and the economy thanks to its convenience, speed, accuracy, and security In addition, the good development of ebanking products and services also helps commercial banks improve their competitiveness, reduce costs and increase profits sustainably During its business process, VPBank - Nui Thanh transaction office has also changed its operating perspective, gradually set up & completed the supply system of products and services as well as got certain achievements However, according to the constant flow and the rapid development of modern banking technology, in order to catch up and go on developing more e-banking services, the transaction office needs many effective solutions to improve competitiveness Improving service quality, developing e-banking services is an extremely important issue for the operation of commercial banks in the market economy, it is not only a matter of survival of commercial banks but also has great significance in the socio-economic development of the country Consolidating and perfecting, providing solutions to improve the quality of e-banking services is a matter that requires regular and serious implementation With the goal of becoming one of the top five Joint Stock Commercial Banks in Vietnam and one of the top three Retail Commercial Banks in Vietnam by 2017, VPBank has continuously improved its dynamic operations, diversified products, Diversified distribution channels, modern technology, safe and effective business, sustainable growth, staff with professional ethics and high expertise VPBank – Nui Thanh Transaction Office is still gradually improving itself, aiming to continue to hold the leading position in the system of Joint Stock Commercial Banks in Vietnam, narrowing the gap in scale VPBank – Nui Thanh Transaction Office developed with high growth indexes in terms of total assets, capital mobilization, credit balance twice the average growth rate of the industry Besides the growth factor, VPBank also attaches great importance to stability, safety and efficiency in 82 operations The Bank is gradually directing its governance and administration in accordance with international standards The Bank's business strategy is completely in line with the orientation of the entire banking industry, ready for the period of regional and world economic integration From the data analysis on the implementation of e-banking services at Vietnam Prosperity Commercial Joint Stock Bank, VPBank - Nui Thanh Transaction Office - Da Nang Branch, I have raised the advantages and disadvantages as well as some solutions to develop them e-banking service development However, due to limited research time as well as limited selfawareness, my thesis cannot avoid errors Therefore, I personally look forward to receiving comments and suggestions from teachers to help improve this thesis Sincerely thanks! 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Vietnam Prosperity Joint Stock Commercial Bank VPBank - Nui Thanh Transaction Office - Da Nang Branch - Chapter 3: Solutions to develop e-banking services at Vietnam Prosperity Joint Stock Commercial. .. DIVISION -? ?? - GRADUATE THESIS SOLUTIONS TO DEVELOPING E-BANKING SERVICES AT VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK VPBANK - NUI THANH TRANSACTION OFFICE - DA NANG BRANCH SPECIALIZATION:... develop e-banking services at VPBank - Nui Thanh Transaction Office Research questions - First, what is e-banking service? - Second, how is the e-banking service at VPBank - Nui Thanh Transaction Office