Solutions to enhance the quality of consumer lending at techcombank joint stock commercial bank ha noi branch

ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - PHẠM MINH TUẤN SOLUTIONS TO ENHANCE THE QUALITY OF CONSUMER LENDING AT TECHCOMBANK JOINT STOCK COMMERCIAL BANK-HA NOI BRANCH GIẢI PHÁP NÂNG CAO CHẤT LƯỢNG CHO VAY TIÊU DÙNG TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN TECHCOMBANK-CHI NHÁNH HÀ NỘI LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2022 ĐẠI HỌC QUỐC GIA HÀ NỘI TRƯỜNG QUẢN TRỊ VÀ KINH DOANH - PHẠM MINH TUẤN SOLUTIONS TO ENHANCE THE QUALITY OF CONSUMER LENDING AT TECHCOMBANK JOINT STOCK COMMERCIAL BANK-HA NOI BRANCH GIẢI PHÁP NÂNG CAO CHẤT LƯỢNG CHO VAY TIÊU DÙNG TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN TECHCOMBANK-CHI NHÁNH HÀ NỘI Chuyên ngành: Quản trị kinh doanh Mã số: 8340101.01 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG HÀ NỘI - 2022 DECLARATION The author commits that the content in this thesis are the results of the author's own research, obtained during the study and research period and have not been published in any other publications The results of research and other people's research (figures, tables, formulas, graphs and others) mentioned in this thesis have been quotes and agreed by the authors I am responsible to Thesis Defense Council, Faculty of Business and Administration and the law for the above commitments Hanoi, 20 November 2021 TABLE OF CONTENTS LIST OF TABLES i LIST OF CHARTS ii INTRODUCTION CHAPTER THEORETICAL BASIS ON QUALITY OF CONSUMER LOANS AT COMMERCIAL BANKS .12 1.1 CONSUMER LENDING ACTIVITIES OF COMMERCIAL BANKS 12 1.1.1 Concept of consumer loans 12 1.1.2 Features of consumer loans 13 1.1.3 Classification of consumer loans 15 1.1.4 The role of consumer loans 16 1.1.4.1 For the bank .16 1.1.5 Consumer-loan providing process of commercial banks .19 1.2 QUALITY OF COMMERCIAL-BANK CONSUMER LOANS 22 1.2.1 Views on the quality of consumer loans .22 1.2.2 Indicators reflecting the quality of consumer loans 23 1.3 FACTORS AFFECTING THE QUALITY OF CONSUMER LOANS 27 1.3.1 Subjective factors 27 1.3.2 The objective factors 29 CHAPTER QUALITY STATUS OF CONSUMER LOANS AT TECHCOMBANK COMMERCIAL BANK - HANOI BRANCH 32 2.1 OVERVIEW OF TECHCOMBANK – HANOI BRANCH .32 2.1.1 History of formation and development 32 2.1.2 Organizational structure 34 2.1.3 Business performance in recent years 37 2.2 CURRENT SITUATION OF CONSUMER-LOAN QUALITY OF TECHCOMBANK’S HANOI BRANCH 41 2.2.1 Consumer lending activities of the branch 41 2.2.2 Quality of consumer loans at the Branch 55 2.3 ASSESSMENT OF CONSUMER – LOAN QUALITY OF TECHCOMBANK – HANOI BRANCH .68 2.3.1 Achieved Results 68 2.3.2 Limitations and causes 69 CHAPTER SOME SOLUTIONS FOR ENHANCING THE QUALITY OF CONSUMER LOANS OF TECHCOMBANK - HANOI BRANCH 74 3.1 ORIENTATION FOR ENHANCING CONSUMER LENDING ACTIVITIES OF TECHCOMBANK – HANOI BRANCH 74 3.1.1 Development orientation for consumer lending of Techcombank – Hanoi Branch .74 3.1.2 Orientation to improve the quality of consumer loan of Techcombank – Hanoi branch 75 3.2 SOME SOLUTIONS FOR ENHANCING THE QUALITY OF CONSUMER LOANS OF TECHCOMBANK - HANOI BRANCH 76 3.2.1 Focus on forecasting market movements .76 3.2.2 Focus on customer evaluation, loan assessment 76 3.2.3 Strenghened collection of information from customers .78 3.2.4 Diversification of consumer loan products 79 3.2.5 Enhancement of marketing activities 79 3.2.6 Training and developing human resources 80 3.2.7 Well performing of the debt classification and use of the provision fund 82 3.2.8 Expand the branch's transaction office network 83 3.3 RECOMENDATIONS 83 3.3.1 Recommendations to the State Bank 83 3.3.2 Recommendations to Techcombank .84 CONCLUSION .86 REFERENCES 87 APPENDIX LIST OF TABLES Table 2.1 Network of branches and transaction offices under Hanoi Techcombank 36 Table 2.2 Hanoi Techcombank's business results 37 Table 2.3 Fund-raising activities at Techcombank’s Hanoi Branch 41 Table 2.4 Outstanding loans of Techcombank – Hanoi branch 42 Table 2.5 Describe the applied types of unsecured consumer loans 44 Table 2.6 Techcombank's form of loan for house purchase and repair 49 Table 2.7: Table of score and rating for credit 52 Table 2.8: Credit Rating 53 Table 2.9: Debt classification table .54 Table 2.10 Sales of consumer loans of Hanoi Techcombank in the period of 2018 2020 .56 Table 2.11 Outstanding consumer loans to total outstanding loans at the branch in the period of 2018 - 2020 57 Table 2.12 Structure of outstanding loans for consumer loans viewed by loan term at Hanoi Techcombank in the period of 2018 - 2020 60 Table 2.13 Structure of outstanding loans viewed by loan form at Hanoi Techcombank in the period of 2018 - 2020 61 Table 2.14 Structure of secured loans to total outstanding consumer loans of Hanoi Techcombank in 2018 - 2020 64 Table 2.15 Ratio of overdue debt, bad debt of consumer loans in 2018 - 2020 65 Table 2.16 Consumer loan profit of Hanoi Techcombank in the priod of 2018 - 2020 64 Table 2.17 Rate of misused capital of Hanoi Techcombank 65 i LIST OF CHARTS Chart 2.1 Techcombank's organizational chart - Hanoi Branch 34 Chart 2.2 Consumer loan process at Techcombank’s Hanoi Branch 51 ii INTRODUCTION Rationale Consumer lending has a long history in the economy and society in countries around the world This activity allows to meet the practical daily needs of the people, as well as play an important role in contributing to the development of the national financial market In recent years, the world consumer finance market has always maintained a relatively positive growth rate, at 20%/year According to EuroMonitor, the size of the global consumer finance market is expected to reach $14 trillion by 2022 (Hoang et al., 2021) Although consumer lending has appeared in the domestic market of Vietnam since the mid-1990s, it has only really received attention and developed since 2012 (Nguyen, 2020) According to the figures published by the State Bank, as of September 2020, the outstanding consumer loans of domestic credit institutions reached more than 1.71 million billion VND (accounting for about 19.98% of the economy’s total outstanding loans), growing by 2.37% over the same period in 2019 (Hoang and Dinh, 2021) Many economic experts believe that, with positive signals in the first half of 2021, when the economy gradually recovers after the pandemic, consumer lending will be an industry with many opportunities for development This development potential is thanks to factors such as the prospect of recovery, economic growth (6.5-7%/year in the period 2021 - 2030), increase in people's income (about 6%/year by 2030) and the scale of consumer finance which is still modest In addition, the development of technology 4.0, with the rapid growth of e-commerce, the variety of forms of payment, the large amount of social network access, and the increased time spent on applications have further accelerated consumption activities of domestic people, creating favorable opportunities for the consumer lending market With such a positive potential of the consumer lending market, many credit institutions including the commercial banking system and financial companies are having an active participation and operation Playing an important key economic role in the economic system, commercial banks have always tried to promote business activities in both lending and capital mobilization aspects For consumer loans alone, by the end of 2019, outstanding consumer loans of commercial banks accounted for about 88% of total outstanding loans (Hoang and Dinh, 2021) This shows the advantages of commercial banks in meeting and serving the consumer borrowing needs of domestic people In the commercial banking system, Techcombank is one of the major commercial banks with good asset quality, a large structure of capital mobilization and healthy liquidity Techcombank's goal and development orientation is to hold the position of the leading retail bank in Vietnam As a member of Techcombank, Hanoi branch has made important contributions to the success and profitability of Techcombank today Following Techcombank's overall development orientation, with a focus on expanding consumer lending activities, Techcombank’s Hanoi Branch has also taken actions to promote lending services to consumers The consumer loan products provided by the branch are diversified, with preferential options in terms of interest rates, duration, as well as muli and flexible types of borrowers Actions taken in the market have helped Techcombank’s Hanoi Branch achieve positive results such as expanding market share, increasing corporate image, and improving revenue and profit However, the branch in this activity still has certain limitations related to such as lending process, control activities of consumer loan procedures, marketing activities, quality of human resources Therefore, in the context of the complicated Covid-19 pandemic, and given fierce competition among banks in the consumer lending market, it is necessary for Techcombank branches to improve the quality of their consumer loans For customers, loan quality is a very important factor to consider when choosing or sticking with a brand, a bank nowadays Stemming from the above reasons, the author chooses the topic " Solutions for improving the quality of consumer lending at Techcombank’s Hanoi Branch" as the research topic for his thesis Research overview Consumer lending is an important part of the bank's credit activities to help commercial banks succeed and develop sustainably Therefore, it is very necessary for banks to implement solutions to improve the quality of consumer loans There have been many researches on the quality of consumer loans both internationally and domestically 2.1 Foreign Studies In chapter 13 of "The Oxford Handbook of Banking", Durkin and Elliehausen (according to Berger et al., 2019), there is a comment that consumer lending as an area of banking activity attracts considerable political attention Recent years have witnessed significant growth in consumer lending in many countries over the world The two authors examine the key characteristics and risks inherent in consumer lending, highlighting approaches to assessing the default risk of credit supply and the integral influence of disadvantageous selection and asymmetric information in the consumer credit process The authors note that the recent financial crisis has reduced both the supply and demand for consumer credit, beyond levels associated with normal recessions In the article of “ Consumer-lending discrimination in the era of Fintech ”, Bartlett et al (2021) points out that the U.S Fair Lending Law prohibits lenders from making credit decisions that differentially affect minority borrowers if those decisions are based on characteristics unrelated to creditworthiness Using this prescriptive identification, the author team assesses that Latinos/Colored borrowers are typically at risk of paying significantly higher interest rates on GSE and FHA-insured loans, particularly in the neighborhoods with a high percentage of minorities The article estimates these exchange rate differences cost minority borrowers more than $450 million a year Interest-rate spreads for FinTech lender are similar to non-Fintech lender spreads on GSE mortgages, but lower on FHA mortgages issued in 2009–2015 and FHA mortgages issued in 2018–2019 In the article of "Consumer lending in banks: system-dynamic modeling" Kaminsky and Petrovskyi (2019) believe that modern consumer lending, which is performed by banks, financial companies and to a lesser extent by credit unions, are a rather complicated system This system has a number of components that interact with each other and affect the outcome of the operation The article analyzed and modeled the consumer lending processes by the systematic dynamics method The system dynamics model provided in this work allows to reflect the behavior of the bank's general and staff in consumer lending in particular Therefore, continuing to improve the professional qualifications for credit officers need to understand business fields such as construction, industrial production, agriculture, legal so that the staff have appropriate and diversified knowledge not only in loan appraisal but also to advise a customer on investment when they not know how and where to invest to earn capital The branch always supports and organizes training courses for staff, improves their qualifications and well applies the new regulations of the State and the credit business as well as promoting credit officers to study at domestic and foreign banks The Branch need to arrange credit officers suitable for each credit operation There should be a mechanism to assign loans to each credit officer in order to improve the responsibility of the credit officer and improve the efficiency of consumer lending In addition, it is recommended to coordinate with the operating center, other commercial banks and government agencies to organize seminars on methods of assessing collateral for bank loans, appraisal parameters, etc determining the business performance of the business, the issue of information against risks, organizing a contest of good officers to encourage credit officers to learn from the experiences of the banks, and at the same time update the information from the friend banks as well as from State and Government banks The Branch need to strengthen training, and training content should be supplemented with theoretical content, practical content, experience, and skills to ensure that after the training new recruits can catch up with the job Moreover, focus should be made on the following: - Develop a training plan for staff right from the moment they are recruited, focusing on both professional and ethical training Consumer loan specialists must be trained in skills such as sales skills, skills of information gathering and exploitation, analytical skills, and skills of presentation and negotiation with customers In addition to professional knowledge, credit officers also have to equip themselves with knowledge of the law, the market and other economic and financial fields At the same time, the Branch should regularly retrain or foster credit officers with certain knowledge about related operations such as card, treasury, accounting, 81 import and export, etc., in order to help the staff to sell and cross-sell products for the Bank - Implement a mechanism of sales assignments to each loan officer so that they can be proactive in finding customers, making full use of relationships to attract customers - Regularly organize professional tests, good professional contests to encourage the spirit of learning to improve professional skills, thereby also being able to assess the professional qualifications of employees, thereby having training and retraining programs suitable for each staff - Develop a clear reward and discipline mechanism to encourage cadres to develop their capacity, rest assured in their work, avoid brain drain, and promptly handle violating staff or those lacking morale quality and responsibility to limit moral hazard in credit officers For managers and policy makers, it is necessary to have capacity in corporate governance, good ethical qualities, high professional qualifications, cultural and social understanding, and the ability to grasp Identify the factors affecting banking activities Therefore, the branch can recommend Techcombank to have advanced modern training programs for the management division taught by leading experts in the banking sector, combined with visits to explore the operating models in countries with a developed banking system that can be applied to their branches 3.2.7 Well performing of the debt classification and use of the provision fund Debt classification is very critical in reflecting the actual risk level of credit facilities, is the basis for setting up a risk reserve fund, creating capital resources to actively finance credit risks To this end, the classification of debts must be done publicly, transparently, in accordance with the nature of each debt in order to avoid the cases in which for the sake of achieving the profit plan, the debt classification is in accordance with the level of risk of the debt, leading to lack of capital to finance credit risks It is necessary to have a plan to set up a sufficient reserve fund to finance credit risks Using provisions to finance credit risks must be with the right subjects, conditions, order and procedures according to Techcombank's regulations From that, 82 the branch is required to actively and proactively implement effective measures to recover bad debts and risky loans in order to minimize losses in credit activities 3.2.8 Expand the branch's transaction office network Consumer lending is a lending activity for individuals, which requires a widespread product and service supply system to be able to fully provide as well as bring the convenience of banking services to customers Hanoi Techcombank operates in Hanoi, an area considered the most potential of the country in the Bank's operations in general and consumer lending in particular Hanoi is the capital where all the head offices of the country are concentrated here, and also where all NGOs, companies of domestic and foreign firms are located With a dense population, high educational level, constantly expanding… Hanoi becomes a potential market for all banks Therefore, competition has also become fierce among banks One of the measures to win the competition and attract the maximum number of customers is to expand the Bank's network of operations in the area Currently, along with the strong urbanization rate, people's living standards have also been significantly improved, the need for houses and living facilities is indispensable, maybe at the moment they can't afford to shop those amenities but in the near future they will certainly have Banks need to expand small branches, transaction offices to new urban areas, satellite cities of Hanoi to meet all the needs of borrowers, take full advantage of the above advantages its capital area 3.3 RECOMENDATIONS 3.3.1 Recommendations to the State Bank Firstly, it is necessary to improve the operational efficiency of the Credit Information Center (CIC) CIC needs to build a richer, more diverse and quality data warehouse In this way, it requires active application of advanced and modern information and communication technology, and the improvement of human resource quality in order to collect and improve the ability and speed of information processing to serve the operation and provide it for the customers, specifically: 83 - CIC needs to expand the scope of collecting customer's credit relationship information including loan details, loan term (for credit relationship inquiry form), details of collateral - CIC also needs to compile a list of detected fake loan customers, companies engaged in forged documents - The State Bank should have a mandatory mechanism to require commercial banks to report on credit quality Besides the above requirements, in the coming time, CIC needs to pay more attention to the accuracy of information in collecting and processing; to increase control and promote public - private cooperation to comprehensively manage information about borrowers; to pay more attention to completeness when adding information with sufficient social analysis, credit scoring with sufficient reliable basis for organizations to decide to grant credit Second, the State Bank need to strengthen the inspection and supervision of commercial banks The State Bank should have a plan for regular control and periodic audits of commercial banks by an audit agency This inspection and control must be carried out concurrently with the mandatory measures that the National Bank requires commercial banks to make recommendations and handle after the inspection work Third, the State bank need to promote non-cash payment activities The promotion of the payment system to develop towards financial liberalization in the integration trend will gradually bring Vietnam's financial system to develop according to international practices and standards For the domestic economy, non-cash payment activities will improve the transparency of financial transactions, creating conditions for banks to strictly control the source of customers' debt repayment as well as control the purpose of using capital, the part of own capital participating in the customer's plan 3.3.2 Recommendations to Techcombank Firstly, Techcombank should apply a more reasonable interest rate policy This is also a solution that contributes to increasing loan sales in general, not just consumer lending Based on each interest rate, each term, customers can choose suitable loans 84 for themselves, ensure timely repayment to the branch and ensure the benefits that customers gain through the use of loans to be the highest Given the credit tightening policy of the State Bank, Techcombank has to be flexible with interest rates for different borrowers For familiar and reputable customers, the bank can apply a preferential interest rate In addition, the bank can associate with companies, shopping centers, real estate centers to coordinate and offer promotional policies, prioritize interest rates for customers who use loans to shop products from the above suppliers This will help build a good and long-term relationship with customers, more effective in improving the sense of on-time repayment of customers For loans with a long term, Techcombank should apply a floating interest rate and change it for a term of months, months or 12 months In some specific cases, the credit officer and the customer can agree to apply both a fixed interest rate and a floating interest rate to a loan Second, Techcombank should develop and implement synchronously a system of internal regulations and processes on risk management, focusing on developing loan policy, credit manual, and regulations on assessment ratings of borrowers, assessment of credit quality and handling of bad debts in consumer lending activities Third, the bank need to regularly set up inspection teams to inspect branches in the Techcombank banking system with high bad debt for consumer loans in order to correct lending activities, thereby detecting possible risks must suggest a way to deal with it Fourth, the bank should organize regular training courses on professional skills for all credit officers, together exchange problems in consumer lending activities at the working branch, to discuss and raise or offer handling methods as well as lessons learned for the staff Fifth, Techcomank should continue to modernize banking technology, access the most modern technologies at home and abroad in order to diversify credit forms, improve loan quality as well as improve credit quality as well as the competitiveness of Techcombank Vietnam 85 CONCLUSION The consumer lending market is a potential market for commercial banks in general and Techcombank in particular Banks are all trying to dominate this highly efficient market Recognizing the importance of consumer lending, Techcombank -Hanoi branch, in recent years has actively taken measures to promote consumer lending activities, affirming its role as a versatile bank and with top service quality, initially achieved encouraging results, contributing to Techcombank's overall achievements in recent years However, besides the achieved results, Hanoi Techcombank also faced many difficulties in implementing consumer lending activities In the context of increasingly fierce competition like today, especially when Vietnam is trying to operate in the "new normal", Hanoi Techcombank needs to have solutions for improving the quality of consumer loans Through theoretical and practical research on consumer lending activities at Techcombank’s Hanoi Branch, under the guidance of Teacher ….Assoc Prof Nguyen Ngoc Thang? along with credit officers of the branch, as post-graduate student, the thesis author has conducted the analysis and pointed out the achievements and limitations in consumer lending activities of Techcombank’s Hanoi Branch, then boldly proposes some solutions with the hope that the quality of this activity will be increasingly improved and better, thereby partly helping the Bank and those who have a need for consumer loans Due to limited theoretical knowledge and incomplete practical experience, at the same time due to the limitation of documents and research time, in this thesis topic, the author has been unable to well handle many issues which need to be analyzed more deeply Therefore, the author of the thesis is looking forward to receiving suggestions and comments from teachers, bankers, friends, who have the same interest in the banking sector in general and the consumer lending sector in particular 86 REFERENCES Bartlett, R., Morse, A., Stanton, R., & Wallace, N (2021) Consumer-lending discrimination in the FinTech era Journal of Financial Economics Berger, A N, Molyneux, P., Wilson, JOS (2019), The Oxford Handbook of Banking, 3rd Edition, Oxford University Press Bui, H.T (2013), Consumer lending development in China, Korea and lessons learned for Vietnam, Journal of Banking Technology, Vol 91, pp 46 – 50 Chan, T.T.T (2016), Solutions for developing consumer lending services in Vietnam, Financial Review, Issue Desai, C A (2017), The cross-section of consumer lending risk Journal of Empirical Finance, 42, 256-282 Einav, L., Jenkins, M., & Levin, J (2008) The impact of information technology on consumer lending Working paper Hoang, VH, Nguyen, P M, Luu, TMN, Vu, TMH (2021), Determinants of Intention to Borrow Consumer Credit in Vietnam: Application and Extension of Technology Acceptance Model, The Journal of Asian Finance, Economics and Business , Vol 8, Issue 4, pp 885 - 895 Hoang T.H.T (2015), Improving the efficiency of consumer lending at Joint Stock Commercial 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Olah, J (2019) The service quality dimensions that affect customer satisfaction in the Jordanian banking sector Sustainability, 11(4), 1113 https://doi.org/10.3390/su11041113 26 Parasuraman, A., Berry, L L., & Zeithaml, V A (1991) Understanding customer expectations of service Sloan Management Review, 32(3), 39-48 27 Phan, T.T.H (2013), Textbook of Commercial Banking, National Economics University Publishing House 28 To, T.H (2021), Improving the efficiency of consumer lending at commercial banks: Survey at Agribank Long Xuyen, Online Finance Magazine, accessed on October 20, 2021, at https://tapchitaichinh.vn/ngan-hang /nang-cao-hieu-quahoat-dong-cho-vay-tieu-dung-tai-ngan-hang-thuong-mai-khao-sat-tai-agribanklong-xuyen-330755.html 29 To, T.H (2020), Consumer credit development of financial companies under commercial banks in Vietnam, PhD Thesis, University of Commerce, Hanoi 30 Vu V.P (2014) Developing consumer lending at Vietnam Bank for Agriculture and Rural Development”, Development & Integration, No 19 (29), pp 60 – 66 31 www.techcombank.com.vn 32 Yarimoglu (2014), E K (2014) A review on dimensions of service quality models Journal of Marketing Management, 2(2), 79-93 89 APPENDIX SURVEY QUESTIONS ON QUALITY OF CONSUMER LOANS AT HANOI TECHCOMBANK I am a post-graduate student at Hanoi School of Business and Management - Vietnam National University I am conducting a research on "Solutions for improving the quality of consumer loans of Techcombank’s Hanoi Branch" I look forward to receiving your help I pledge that this information is only used for statistical purposes, and all your information will be kept strictly confidential PART PERSONAL INFORMATION Please provide the following personal information: Gender: Male Female Age: Under 25 years of age From 25 to 35 years of age From 35 to 45 years of age Over 45 years of age Current monthly income Under million VND From to 12 million VND From 12 to 20 million VND Over 20 million VND PART MAIN QUESTIONS Please rate your level of agreement with each of the following statements Rate on a scale of to with being “totally dissatisfied” to being “totally satisfied” Level of consent TT Stated The bank's consumer lending service is highly-reliable Employees are well skilled and provide consumer-lending services to clients in a convenient way Credit staff are always enthusiastic, dedicated, gentle, willing to help, answer and fulfill customer requests The branch is always dedicated, understanding and taking care of customers in providing the services The branch is well equipped with comforable facilities in providing services, increasing the speed and efficiency of transactions 90 10 11 12 13 14 Consumer-lending services can be accessed conveniently and easily in many different forms Fast processing time Reasonable loan interest rate Simple loan procedure Diverse payment methods The branch's staff has good operational competence You will always use the bank's products whenever there is a need You will recommend the bank's products to other individuals when they have a need Overall assessment: the quality of consumer loans at Techcombank Hanoi is good Sincerely thank! 91 APPENDIX 2: DESCRIBING-FREQUENCY STATISTICS FOR VARIABLE OF PERSONAL INFORMATION Sex Valid Frequency Percent Valid Percent Cumulative Percent male Female 74 63 54.0 46.0 54.0 46.0 54.0 100.0 Total 137 100.0 100.0 Age Valid Frequency Percent Valid Percent Cumulative Percent Under 25 years old 12 8.8 8.8 8.8 From 25 to 35 years old 35 - 45 years old 45 54 32.8 39.4 32.8 39.4 41.6 81.0 45 years old and older Total 26 137 19.0 100.0 19.0 100.0 100.0 Income Valid Under million From to 12 million VND From 12 - 20 million VND Over 20 million VND Total Frequency Percent Valid Percent Cumulative Percent 31 22.6 22.6 22.6 38 27.7 27.7 50.4 48 35.0 35.0 85.4 20 137 14.6 100.0 14.6 100.0 100.0 92 APPENDIX 3: DESCRIPBING-FREQUENCY STATISTICS FOR QUANTITATIVE VARIABLES The staff are friendly, gentle, dedicated and always willing to help customers Frequency Valid Percent Valid Cumulative Percent Percent Very pleased 34 24.8 24.8 24.8 Satisfied Normal 66 23 48.2 16.8 48.2 16.8 73.0 89.8 Unsatisfied 14 10.2 10.2 100.0 137 0.0 100.0 0.0 100.0 100.0 Frequency Percent 40 61 21 15 29.2 44.5 15.3 10.9 29.2 44.5 15.3 10.9 29.2 73.7 89.1 100.0 0.0 0.0 100.0 137 100.0 100.0 Very unsatisfied Total Simple procedure of lending loans Valid Very pleased Satisfied Normal Unsatisfied Very unsatisfied Total Valid Percent Cumulative Percent Fast processing of loan documents Valid Frequency Percent Very pleased Satisfied Normal 39 64 24 28.5 46.7 17.5 28.5 46.7 17.5 28.5 75.2 92.7 Unsatisfied 10 7.3 7.3 100.0 137 0.0 100.0 0.0 100.0 100.0 Very unsatisfied Total 93 Valid Percent Cumulative Percent Reasonable interest rate of loans Valid Frequency Percent Very pleased 30 21.9 21.9 21.9 Satisfied Normal 67 23 48.9 16.8 48.9 16.8 70.8 87.6 Unsatisfied 17 12.4 12.4 100.0 137 0.0 100.0 0.0 100.0 100.0 Very unsatisfied Total Valid Percent Cumulative Percent Diverse methods of repayment Valid Frequency Percent Very pleased Satisfied 23 63 16.8 46.0 16.8 46.0 16.8 62.8 Normal Unsatisfied 31 20 22.6 14.6 22.6 14.6 85.4 100.0 137 0.0 100.0 0.0 100.0 100.0 Very unsatisfied Total Valid Percent Cumulative Percent Customers will always use the Bank's products whenever there is a need Valid Very pleased Satisfied Normal Unsatisfied Very unsatisfied Total Frequency Percent 35 58 32 12 25.5 42.3 23.4 8.8 25.5 42.3 23.4 8.8 25.5 67.9 91.2 100.0 137 0.0 100.0 0.0 100.0 100.0 94 Valid Percent Cumulative Percent Customers will recommend the bank's products to other individuals when they have a need Valid Frequency Percent Very pleased 41 29.9 29.9 29.9 Satisfied Normal 59 36 43.1 22.6 43.1 22.6 73.0 95.6 4.4 4.4 100.0 137 0.0 100.0 0.0 100.0 100.0 Unsatisfied Very unsatisfied Total Valid Percent Cumulative Percent Overall assessment: The quality of consumer lending services of Hanoi Techcombank is good Frequency Valid Percent Valid Cumulative Percent Percent Very pleased 37 27.0 27.0 27.0 Satisfied Normal Unsatisfied 61 32 44.5 23.4 5.1 44.5 23.4 5.1 71.5 94.9 100.0 137 0.0 100.0 0.0 100.0 100.0 Very unsatisfied Total 95 ... what does it mean in the current business context of the bank? - What is the quality of consumer loans of commercial banks? What are the criteria to evaluate the quality of consumer loans of commercial. .. loans at commercial banks - Assessing the current status of consumer lending activities at Techcombank – Hanoi Branch - Proposing some solutions to improve the quality of consumer loans at Techcombank? ??s... CURRENT SITUATION OF CONSUMER- LOAN QUALITY OF TECHCOMBANK? ??S HANOI BRANCH 41 2.2.1 Consumer lending activities of the branch 41 2.2.2 Quality of consumer loans at the Branch