Improving car loan service of Asia Commercial Joint Stock Bank (ACB) – Xuan Thuy Branch, Ha Noi Professional bachelor degree in Finance Banking Insurance WORK PLACEMENT REPORT Company Asia Commercial Joint Stock Bank Improving car loan service of Asia Commercial Joint Stock Bank (ACB) – Xuan Thu.
OVERVIEW OF ASIA COMMERCIAL JOINT STOCK BANK -
Asia Commercial Joint Stock Bank
Name, slogan: Asia Commercial Joint Stock Bank (ACB)
Location: 442 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City
Legal status: No 0032/NHGP issued by the State Bank of Vietnam dated April 24, 1993,
Xuan Thuy Branch
Location: 12 Khuc Thua Du, Dich Vong Ward, Cau Giay District, Hanoi
We offer a range of banking services, including capital acquisition in VND and foreign currencies from individuals and organizations Our services encompass account openings, payment deposit reception, and money transfers through banks Additionally, we provide card services, guarantees, banking funds, remittances, foreign exchange, and investment consultancy to meet your financial needs.
Business performance in the last 2 years 2020-2021
Business results Currency unit 2020 2021 Growth
Billion VND 288.479 338.129 17,2% and personal finance
Profit before tax Billion VND 3.026 3.268 8,0%
Table 1: Business result Source: https://finance.vietstock.vn/ACB-ngan-hang-tmcp-a-chau.htm
Introduction of my internship
In 2021, the Vietnamese auto market faced significant fluctuations due to the emergence of the fourth Covid-19 wave across various provinces and cities, alongside the growing popularity of electric vehicles, which influenced consumer preferences and choices.
In recent years, the demand for cars among Vietnamese consumers has surged, driven by the government's open policies and a growing desire for personal vehicles As more people aspire to own cars, there is a strong expectation for vehicles that offer good value and lower taxes, reflecting the economic conditions and income levels in Vietnam.
In response to evolving market demands, it is essential to offer car loan products that align with the current needs of customers, demonstrating agility and a proactive approach to the rising interest in individual car financing.
Contact, meet / exchange with the director, the head of the sales department where the internship is located.
Started internship at ACB - Xuan Thuy branch.
Get the approval of the Branch Manager and Sales Manager for the internship at the Sales Department and start the internship.
Talk to the instructor at the bank about the content of the internship report and conduct the survey.
Read documents about car loan services for individual customers.
Orient the report and complete the survey to collect customer opinions.
Receiving individual customers who need to use the car loan service at the bank.
Ask for customer reviews after using the service
Collect customer survey data according to specific criteria.
Analyze collected information Write a report.
Complete the analysis and start writing the report.
Submit reports to instructors for review and inspection.
Edit, supplement and complete the report.
At the end of the internship, complete the report.
End of internship at the bank
Submit a formal report with internship assessment to instructors, homeroom teachers and the University of Toulon
06/2022 Presenting the report to the
INTERNSHIP IMPLEMENTATION AT ACB BANK, XUAN THUY BRANCH
The internship position, responsibilities and tasks
2.1.1 Department structure and internship position
During my internship, after researching, this is a diagram of ACB's banking apparatus:
Diagram 1: Internship plan at ACB-Xuan Thuy Branch
In my first week of internship, I was welcomed by my manager, Nguyen Tuan Linh, who guided me through the transaction office, sales department, and administrative department Subsequently, I was assigned the role of a consultant in the credit department.
2.1.2 Business procedure and work placement responsibilities
2.1.2.1 Overview of ACB bank’s car loan service for individual customers.
Auto loans with installment payments represent 30% to 70% of the total installment loan balance at commercial banks, varying by institution As Vietnam officially joins the WTO, the demand for car loans is expected to increase significantly in the near future.
Car loan for individual customers:
A car loan secured by the purchased vehicle is a financial product designed to assist customers in acquiring a car for personal or business use, using the car itself as collateral.
- Having a stable income, enough to ensure the bank's debt repayment capacity.
- Loan to buy a car to serve travel needs.
- Loan to buy a car to serve business.
- Purchased vehicle with valid papers, carry out transfer procedures in accordance with the law.
- Vehicle origin is legal and must be purchased at official dealers of car manufacturers in Vietnam
- Loan amount: up to 70% of the purchase value of the car.
Mortgage of the purchased vehicle: up to 72 months.
Mortgages other than purchased vehicles: up to 84 months.
- Collateral: the car itself or other property.
- Loan method: Installment loan and Loan in installments.
- Loan application form (according to ACB's form).
- ID card, household registration of the borrower and guarantor (if any).
- Documents related to purchased vehicle and mortgaged property.
- Documents proving the source of income: Labor contract, Confirmation of salary.
- Contract of house rental, car rental, business license, of the borrower and the debtor (if any).
The role of car loans for individual customers
Car loans play a crucial role in banks' operations, particularly in today's growing economy These loans typically come with higher interest rates compared to other financing options, allowing banks to generate significant profits However, while the potential for profit is considerable, it is important to note that banks also face various risks associated with this lending activity Fortunately, the extensive volume of car loans helps mitigate these risks, enabling banks to share the burden effectively.
- Furthermore, because people's desire for automobiles is increasing as their living standards rise, and car prices are falling, the bank's total income from this business is fairly substantial.
Partnering with car dealerships presents a valuable opportunity for banks to build strong relationships, leveraging the dealerships' extensive customer information systems This collaboration not only fosters habitual banking service usage among consumers but also enhances the banks' visibility and reputation in the minds of customers.
- Installing a car loan brings a lot of benefits to customers, making an important contribution to helping customers get the car they want, but finance doesn't allow it.
Customers can benefit from car extensions before saving enough money, especially those purchasing vehicles for business purposes, as it allows them to seize opportunities and enhance profitability For many bank borrowers, buying a car not only fulfills travel needs but also enriches their physical and emotional well-being Furthermore, owning a beloved car boosts customers' enthusiasm, morale, and motivation in their daily work.
Loans aimed at funding bank payments will boost revenue for automobile businesses by driving consumption This surge in demand encourages manufacturers to ramp up production and attracts a diverse pool of tourists and workers to the market Consequently, this fosters healthy competition in terms of quality and pricing among agents.
- This activity also plays an important role in promoting economic development, specifically.
Stimulating economic demand enhances customer purchasing power, leading car manufacturers to increase production and generate new job opportunities This chain reaction ultimately supports the government's socio-economic objectives.
Leveraging the growth of the automobile manufacturing industry can significantly boost other sectors of the economy, including services, tourism, and transportation This interconnected development fosters economic dynamism and enhances Vietnam's overall economic landscape.
My responsibilities upon accepting this job are:
1 Receive requests from customers who need to use car loan services.
3 Support and guide customers to make loan documents.
4 Ask for customer feedback after using the car loan service.
I work at the bank every day from Monday to Friday, the afternoon work starts from 14:00 to 17:00 To be productive, I created the following table:
Monday Learn out more about car loans.
Tuesday Receive requests from customers who need to use car loan services.
Support consultants to check customer information.
Thursday Support and guide customers to make loan documents.
Friday Summary of customer reviews after using the car loan service.
Some business cases
Permanent address: ** Vo Chi Cong, Nghia Do, Cau Giay, Hanoi
The customer, earning a monthly salary of 5 to 10 million VND, seeks a bank car loan for personal travel However, the bank's loan requirements stipulate a minimum salary of 10 million VND per month Additionally, the customer lacks alternative income and collateral, making them ineligible for the loan.
Permanent address: ** Lac Trung, Vinh Tuy, Hai Ba Trung, Hanoi
Despite having a monthly salary of 30 million VND and valuable real estate as collateral, the customer was denied a loan due to multiple bad debts with other banks, including ACB, which surfaced during the loan procedure research.
Permanent address: ** Lac Trung, Vinh Tuy, Hai Ba Trung, Hanoi
A customer with a monthly income of VND 50 million is seeking a car loan of VND 500 million, to be repaid over 5 years The loan features a preferential interest rate of 7.5% per year (0.625% per month) for the first 6 months, after which a standard interest rate of 10.5% per year will apply.
From there, the monthly amount the customer has to pay is:
Interest amount for the first period = 500,000,000 x 0.625% = 3,125,000 VND
Interest for the second period = (500,000,000 - 8,333,333) x 0.625% 3,072,917 VND
Service analysis
After participating in training and acquiring necessary information about ACB's products and services, especially car loans for individual customers.
I conducted an online survey using Google Forms to assess customer satisfaction with our car loan service The survey consisted of 12 questions and was distributed via email to our customers This method was chosen for its convenience, speed, and efficiency in saving customers' time while allowing for data collection from a large audience.
Diagram 2: Age of the customer
Customers 18-20 years old account for the least proportion compared to other age groups with 5% (equivalent to 3 votes) because they are still at school age, a few of them have worked part-time Next is the customer group from 21 to 30 years old with
29 votes (48.3%) accounting for the largest proportion The proportion of customers aged 31 - 40 years old is 33% (equivalent to 20 votes) and finally customers over 40 years old account for 13.3% (equivalent to 8 votes).
Occupation and salary 1 month salary of customers
From the survey results, it can be seen that the majority of customers using services at ACB - Xuan Thuy branch are office workers (45%), freelance business
StudentFreelance businessOffice staffCadres and civil servants customers (28.3%) and professional staff ministry of civil servants (16.7%) The lowest rate when using a car loan service is for students (10%)
The monthly income distribution among customers shows that 43.3% earn between 10-20 million, while 26.7% fall within the 20-30 million range Additionally, 21.7% of customers earn over 30 million, and the lowest income bracket of 5-10 million accounts for 8.3% This diversity in income levels allows the bank to tailor its loan conditions to better align with customers' financial capabilities.
About the time to use car loan service at ACB - Xuan Thuy branch
Diagram 4: Time to use car loan service at the bank
A recent survey revealed that 21.7% of customers, or 13 respondents, have utilized the loan service for less than one year, while 45%, equivalent to 27 votes, have engaged with the bank's services for 1 to 1.2 years This indicates that the highest percentage of customers using the loan service falls within this timeframe Additionally, 25% of customers, representing 15 votes, have been using the service for 2 to 3 years.
The rest are customers who have used the service for a long time with a period of more than 3 years, which is 8.3%.
Under 1 billion VND From 1 to 2 billion VND From 2 to 3 billion VND Over 3 billion VND
The chart reveals that the majority of customers prefer cars priced under 1 billion, representing 45.8% with 27 votes Models priced between 1 and 2 billion account for 32.2% or 19 votes, while those in the 2 to 3 billion range make up 13.6% with 8 votes Finally, cars priced over 3 billion received 8.5% of the votes, totaling 5 votes.
Thereby, we can see that the needs of customers are increasing when choosing models with prices that are suitable for their finances.
Purpose and form of car loan for individual customers
Installment loans Loan each time
Diagram 6: Purpose and form of car loan
A significant majority of customers, 86.7% (52 votes), utilize car loans for personal needs, while 13.3% (8 votes) seek financing for business purposes Among payment options, 66.7% of customers prefer installment payments, totaling 20 votes, while 33.3% (10 votes) opt for other payment methods.
Customer demands for transportation options are on the rise, both for personal use and in professional settings Many customers prefer installment payment plans, as they find it challenging to make a one-time payment.
Some sources of information to help customers know about the bank's services
Recommended by friends Employees of ACB
Diagram 7: Sources of information to help customers know about the service
Data reveals that 80% of customers learn about ACB's car loan service through recommendations from friends, amounting to 48 votes This highlights the significant influence of personal referrals from friends and family in shaping customers' decisions to choose this banking service.
According to the survey, 53.3% of customers learn about the bank's services through staff interactions, indicating effective marketing strategies This highlights the bank staff's ability to engage potential clients and maintain the loyalty of existing customers through appealing communication methods.
While internet and television activities play a significant role in marketing, a recent survey revealed that their effectiveness is limited, with only 20% of respondents engaging in online activities and a mere 3.3% participating in television promotions This indicates that marketing efforts by banks are not yielding the desired impact.
The reason why customers use car loan service at ACB - Xuan Thuy branch
Reasons to use the service
Diagram 8: Why do customers use the service?
Statistics reveal that enthusiastic support and professional staff have significantly contributed to customer satisfaction, achieving a positive response rate of 63.3% (38 votes) Additionally, customer trust in the service stands at 61.7% (37 votes) However, the application procedure received a lower appreciation from customers, with only 48.3% (29 votes) expressing satisfaction The least favorable aspect is the competitive interest rate, which garnered only 26.7% (16 votes).
To enhance customer satisfaction, the bank should streamline its lending processes and offer competitive preferential interest rates that stand out against those of other commercial banks.
Evaluation of satisfaction with car loan service quality at ACB - Xuan Thuy branch
To assess the level of customer satisfaction, I have divided it into 5 levels from very dissatisfied to very satisfied to apply a scale of 1 to 5 as follows:
1 Very unsatisfied 2 Unsatisfied 3 Normal 4 Satisfied 5 Very satisfied
In today's highly competitive banking and financial market, service capacity is crucial for success The human factor significantly impacts service quality, with key aspects including professional qualifications, a high level of professionalism, effective communication skills, and an elegant demeanor among staff.
Ba nk st aff co m m un ica te a nd co nv ey w el l
Ha rd -w or kin g st aff , a nd e nt hu sia sti c a dv ice
St aff w ith su ffi cie nt kn ow le dg e an d qu al ifi ca tio ns
Cu st om er s f ee l s ec ur e w he n tra ns ac tin g w ith th e ba nk
Very unsatisfied Unsatisfied Normal Satisfied Very satisfied
1 Bank staff who communicate and communicate well are especially appreciated by customers in the satisfaction level and very satisfied with 52 votes Next is the normal level with 7 votes and 1 vote expressing dissatisfaction
2 Hardworking and enthusiastic staff who can give advice are also highly appreciated for their satisfaction and satisfaction with 53 votes Normal level with 6 votes and 1 unsatisfied vote.
3 Employees with sufficient knowledge and professional qualifications are no exception when the level of satisfaction and satisfaction is 50 votes Next is the normal level with 9 votes and 1 unsatisfied vote.
4 Customer's peace of mind when trusting transactions with bank staff was assessed with 29 votes very satisfied, 21 votes satisfied, 9 votes normal and 1 vote was not satisfied.
Statistics indicate that customer trust at ACB - Xuan Thuy branch is generally high due to effective communication and service quality However, some customers have rated their experience poorly, primarily due to staff attitude and perceived annoyance during peak hours.
KPI and KPR
During my internship, I aim to engage with five customers to promote the bank's car loan service Additionally, I seek to deepen my understanding of ACB's car loan offerings and enhance my communication and persuasion skills with clients.
After 3 months of internship at Asia Commercial Joint Stock Bank (ACB) - Xuan Thuy branch with the topic "Improving car loan services for individual customers of Asia Commercial Joint Stock Bank (ACB), Xuan Thuy Branch, Hanoi", I basically achieved the following results:
To excel in the car loan industry, it is essential to gain extensive knowledge and experience regarding various loan products and services tailored for individual customers Utilizing available information sources effectively is crucial for success Additionally, enhancing communication skills, improving customer information management, and mastering office software such as Word and Excel are vital for thriving in a new work environment.
Next, I also learned more about banking (consultant), trained to work under pressure and assigned targets Detail:
During my 3-month internship, I gathered information from individual customers seeking loans to purchase new cars I also provided direct assistance to these customers in the car loan application process, ensuring they understood the necessary documentation required.
2 out of 5 customers according to my goal during my internship used car loan service.
Finally, call car loan customers and ask for a customer survey via email.
2.4.3 Host firm assessment and recommendation
The current high demand for car purchases is driven by societal growth and the availability of appealing car models that cater to various budgets This surge in interest has intensified competition among banks offering car loan services, prompting customers to set higher expectations for their chosen financial institutions In response, banks must enhance their offerings, focusing on improved customer care and streamlined online services to facilitate a better experience with their products.
Creating conditions for staff to participate in professional training courses as well as current issues and changes in regulations in the banking industry.
Strengthen and supplement knowledge for credit officers about the auto market.
To effectively expedite car loan installments, credit officers must not only grasp the auto installment loan process but also have a thorough understanding of various car types, their pricing, and major dealerships Consequently, banks encourage credit officers to stay informed about the car market, promote car loan products to manufacturers, and cultivate strong relationships with car dealers.
Credit officers play a vital role in building relationships with potential customers while proactively seeking new clients Their dedication and hard work are crucial, especially during the lending process, where strict adherence to established procedures and regulations is essential for minimizing risks to the bank.
Improve the ability to check and control after borrowing:
Enhancing customers' ability to monitor and manage their loans is essential for timely and accurate assessment of any negative changes in their financial situation, loans, and collateral Implementing effective measures to facilitate this process is crucial for maintaining financial stability and informed decision-making.
Customers are required to visit the bank monthly or quarterly for vehicle registration checks If a customer plans to use their car for an extended period away from home, they must inform the bank This allows the bank to adjust the validity period of the vehicle's registration copy to between 0 and 3 months and to maintain a customer tracking log for essential information.
Every 3 to 6 months, the credit officer conducts a thorough assessment of the collateral and the borrower's financial capacity This process includes creating a written record signed by the customer, which helps in promptly identifying any signs of declining loan repayment income and a decrease in the value of the collateral.
Improve customer financial appraisal capacity:
In car loan services, a customer's financial capacity is crucial for determining their ability to repay bank loans, primarily sourced from salaries, bonuses, or dividends Accurate assessment of this income is essential for banks to evaluate future repayment potential However, this task poses challenges, necessitating skilled credit officers with strong knowledge and analytical abilities To enhance the quality of financial appraisals, ACB should invest in training programs for its credit officers.
Effective development of marketing activities:
The bank strengthens advertising and marketing, can use logos and posters to advertise in the area of operation, search for target customers
The Vietnamese auto market is vibrant, yet many consumers view cars as a relatively new purchase This leads to concerns about the quality of used vehicles, prompting most buyers to prefer new cars that come with quality assurance and warranties Consequently, customers typically visit car dealerships and showrooms to explore available options, often seeking recommendations from sales representatives regarding banking services that offer installment loans.
To enhance customer engagement and increase loan applications for car purchases, ACB should establish association contracts with local car dealers or directly with their sales staff By implementing this strategy, ACB can significantly boost the number of customers seeking financing, as many potential borrowers currently approach the bank without any proactive marketing efforts in place to attract them.
INTERNSHIP ASSESSMENT
The difficulties encountered
During my internship at ACB - Xuan Thuy branch, besides the achieved results, I also encountered the following difficulties:
Surveying presents challenges for the Bank, as it primarily targets customers, limiting the ability to assess the overall transaction experience at the Xuan Thuy branch While these surveys have positively contributed to understanding customer satisfaction, they do not provide a comprehensive view of all clients.
Email surveys often experience low response rates, primarily due to customers being busy or lacking a need to participate Additionally, there are instances where feedback may be inaccurate, as customers might not clearly recall the issue, may have an aversion to surveys, or could provide dishonest answers This can hinder the overall progress of the project.
A delay on a task is part of the project and is taking me longer than expected.
Next is the difficulty of communication When exposed to a new environment,
Initially, my shyness and the age gap made it challenging to communicate and build relationships with my colleagues at the bank, resulting in some minor mistakes during my early days in customer support To overcome this, I proactively sought assistance from my coworkers, who were incredibly supportive and eager to help This experience not only enhanced my relationships within the team but also allowed me to gain valuable knowledge and skills in my role.
To enhance my knowledge and experience in the banking sector, I have dedicated significant time to studying various documents related to the bank's products and services Additionally, I actively engage with a diverse range of customers to further develop my skills and gain practical insights.
Internship gained
The internship at the bank has helped me to know a lot of knowledge to be ready for the job when I graduate.
Understanding the banking industry is crucial for shaping a successful career, as it requires specific skills and knowledge Key factors include strong numerical ability, logical thinking, and excellent memory, as professionals frequently deal with complex calculations and vast amounts of data Additionally, the capacity to analyze information and make quick assessments enhances one's proficiency in this field, making it essential for anyone pursuing a career in banking.
Honesty, carefulness, accuracy: because it is a rather sensitive field related to money, you must be really careful, always meticulous and precise in your work.
To succeed in finance and banking, professionals must effectively manage their time and maintain a strong focus under high-pressure conditions A positive mindset is crucial, as is the ability to organize and allocate time wisely to ensure tasks are completed efficiently.
Discover effective customer segmentation strategies to identify potential clients Once you pinpoint a specific source of prospects, nurturing these leads becomes essential By focusing on potential customers, businesses can convert those interested in their services into loyal clients, fostering stronger relationships and gaining deeper insights into customer needs.
Improve office skills and handle customer information every time there is an error.
Improve communication skills, learn how to solve customer problems, strengthen working relationships
Career plan
My immediate goal is to enhance my computer and office skills while gaining a deeper understanding of various banking positions and their responsibilities Additionally, I aim to complete my training to ensure I learn the most effective methods in my field.
During my recent internship, I successfully adapted to the work environment and enhanced my discipline, positioning myself favorably for future job applications after completing the program.
For those pursuing a long-term career in finance, banking, and insurance, obtaining a master's degree is essential Aspiring professionals often aim for positions such as Sales Manager, with the ultimate goal of becoming a bank branch director These roles demand strong sales abilities, exceptional people management skills, and a commitment to customer service, as branch managers are responsible for fostering positive relationships with both customers and employees Additionally, successful branch managers must exhibit diligence, strong analytical skills, and the capacity to prioritize tasks, multitask effectively, and maintain attention to detail.
In today's banking landscape, it is crucial for banks to establish memorable connections with their customers, driven by evolving regulatory demands and shifting market trends Customers are increasingly informed, skeptical, and willing to switch banks, highlighting the need for institutions to adapt Furthermore, as economic growth continues, both individual and business banking service demands are expected to rise, necessitating a proactive approach from banks to meet these changing needs.
After 3 months of internship at ACB bank - Xuan Thuy branch with the position of consultant in the credit department, I myself had the opportunity to approach the working process and directly participate in the search and expansion and meet customer needs in many ways, so I have partly seen the Bank's working process, strengths, weaknesses, opportunities and challenges, thereby contributing to the completion of the report internship.
ACB Bank, recognized as one of the "Top 10 Prestigious Joint Stock Commercial Banks," is committed to enhancing its products and services, particularly at the Xuan Thuy branch This dedication fosters strong customer trust, attracts new clients, and transforms existing customers into loyal supporters, ultimately contributing to the bank's robust growth.
Internship at ACB bank - Xuan Thuy branch has helped me improve my ability to express and present reports These are very useful experiences for me in the future.
In the process of practicing and completing this report, I inevitably make mistakes, and
I look forward to receiving comments from teachers as well as the Bank Thank you sincerely!
My name is Nguyen Dang Hong Son, a final year finance, banking, and insurance student at Thuong Mai University I am currently conducting research on customer satisfaction regarding the car loan services provided by ACB Bank The findings from this survey will serve as a foundation for evaluating the service quality at ACB Bank Your honest feedback is crucial for the success of my study, and all comments will be treated as highly valuable for my graduation thesis Rest assured, all information collected will remain confidential and used solely for research purposes I appreciate your support in this endeavor.
3 What is your monthly salary?
4 How long have you used ABC's lending service?
5 What is the value of the car you bought?
6 What is the purpose of you using the car loan service?
7 What type of car loan do you choose?
8 How did you know about car loan service at ACB? (Multiple options can be selected)
9 Why do you use car loan service at ACB? (Multiple options can be selected)
Simple and convenient loan procedure
Trust the bank's loan service
Be consulted by a team of professional, enthusiastic staff
Maximum support for customers with the process of making documents, assessing property values,
10 Below are the evaluations from your feelings These figures show how satisfied or dissatisfied you are with the contents.
1: Very unsatisfied; 2: Unsatisfied; 3: Normal; 4: Satisfied; 5: Very satisfied content opinion
1 Bank staff communicate and convey well
2 Hardworking staff, and enthusiastic advice
3 Staff have enough knowledge and professional qualifications
4 Customers feel secure when dealing with customers
5 The bank always maintains its credibility with customers, respecting the interests of customers
7 Bank keeps and secures customer's transactions
8 The loan process is simple, does not take too much time
9 The bank provides the service and loan quality as per the results
11 The staff advises clearly and specifically about loan packages
12 Diverse loan packages to meet all customer needs
13 The bank's working hours are suitable
14 The bank has many promotions for customers
15 The bank cares about the interests of customers
16 The bank is ready to be flexible in time to welcome customers
17 Friendly staff, enthusiastic with customers
18 Are you satisfied with the quality and loan service of ACB bank?
19 Are you satisfied with the bank's loan interest rate?
11 Will you still use car loan service at ACB bank?
12 Would you introduce your friends and partners to use the car loan service at ACB bank?