Improving car loan service of Asia Commercial Joint Stock Bank (ACB) – Xuan Thuy Branch, Ha Noi

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.

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 Thuy Branch, Ha Noi Names of student: Nguyen Dang Hong Son University year: 2019 - 2022 Tutor at TMU: Assoc Prof PhD PHAM Tuan Anh Tutor at USTV: Marie-Josée Cambreling Tutor at (Company): Mr Nguyen Tuan Linh 1 Hanoi - 2022 2 TABLE OF CONTENTS LIST OF TABLES LIST OF FIGURES ACKNOWLEDGEMENT In order to successfully complete the internship as well as the final report, I received the dedicated attention and guidance of teachers of Thuong Mai University, University of Toulon, and colleagues at the bank with many years of experience invaluable guidance and guidance from everyone Internship for more than months at ACB has helped me gain more experience to be able to complete my thesis First and foremost, I want to express my heartfelt gratitude to Mr Pham Tuan Anh of Thuong Mai University and Mrs Marie-Josée Cambreling of Toulon University, who advised me on how to study and were always dedicated to providing me with beneficial advice, helpful comments, and revising my report In addition, I'd like to express my gratitude to Thuong Mai University and ACB Bank for facilitating a three-month internship that allowed me to gather additional information and experience in order to complete this thesis During the implementation, although there have been many efforts and meticulous attention, but errors cannot be avoided, I look forward to receiving sincere comments and suggestions from teachers to practice the lesson complete additional training, helping me to draw out my own experience and necessary knowledge for my future work Sincere thanks to everyone Ha Noi, May 27,2022 Sincerely, Nguyen Dang Hong Son PART 1: OVERVIEW OF ASIA COMMERCIAL JOINT STOCK BANK -XUAN THUY BRANCH AND THE INTERNSHIP 1.1 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, Date of creation: June 4, 1993 Number of employees: 9,000 employees Hotline: (+84) 3929 0999 1.2 Xuan Thuy Branch • • • • • Location: 12 Khuc Thua Du, Dich Vong Ward, Cau Giay District, Hanoi Number of employees: 13 Date of creation: July 31, 2006 Phone: 024 3399 5566 Activity: Obtaining capital in VND and foreign currencies from organizations and people Opening accounts, receiving payment deposits, and transferring money via banks are all services that we provide Banking services, card services, guarantees, banking services funds, remittances, foreign exchange, investment consultancy • Business performance in the last years 2020-2021 Business results Mobilization from accounting and personal finance Credit balance Total income Profit before tax Currency unit 2020 2021 Growth 2020/2021 Billion VND 288.479 338.129 17,2% Billion VND 266.189 316.670 Billion VND 30.976 35.024 Billion VND 3.026 3.268 Table 1: Business result 19,0% 13,1% 8,0% Source: https://finance.vietstock.vn/ACB-ngan-hang-tmcp-a-chau.htm 1.3 Introduction of my internship: 1.3.1 Why the topic The Vietnamese auto market has just experienced 2021 with many fluctuations The outbreak of the 4th Covid-19 epidemic in many provinces and cities along with the introduction of electric cars has partly affected the tastes and choices of consumers In recent years, the demand for cars of Vietnamese people has become more intense than ever, partly due to the opening mechanism of the state, partly due to the increasing demand for this vehicle high When it comes to cars, everyone wants and hopes to buy a car with the right value, the tax will be low corresponding to countries with economies and incomes like ours Facing that situation, it is absolutely necessary to meet car loan products to better suit the current needs of customers This also proves the agility and timely response to the continuous changes of the market as well as the increasing demand for car loans of individual customers 1.3.2 Internship plan Time 28/02/2022 – 01/03/2022 02/03/2022 – 20/03/2022 21/03/2022 – 21/04/2022 22/04/2022 – 25/05/2022 26/05/2022 27/05/2022 Contac Started Talk to Read d Receiv Ask fo Analyz Write a Submi Edit, s End of Submi 01/06/2022 06/2022 Table 2: Internship plan Presen PART 2: INTERNSHIP IMPLEMENTATION AT ACB BANK, XUAN THUY BRANCH 2.1 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: Manager Administration and Treasury accounting transaction office department Parts Trading Funds Department Business Department International Payment Department Credit department Administrativ e division Accounting department Diagram 1: Internship plan at ACB-Xuan Thuy Branch Internship position: During the first week of internship, I was introduced by the manager - Nguyen Tuan Linh, who also guides me to the transaction office, sales department and administrative department Then gave me a position as 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 In the balance of installment loans of commercial banks, auto loans with installment payments usually account for 30% to 70% of the total loan balance of installment loans, depending on the bank Car loans in installments promise to have even higher sales in the near future when Vietnam has become an official member of the WTO 10 • The fact that Vietnam is officially the 150th member of the WTO and Vietnam assumes the role of President of the United Nations Security Council for the second - time has opened up the most opportunities for banking activities: More and more foreign enterprises and joint venture companies are established and - operating in Vietnam, which is an opportunity for ACB to attract new customers Have the opportunity to approach, learn and improve new and modern products and - services The integration will bring ACB many opportunities to express themselves and reach out to countries in the region and around the world Threats: The expansion of auto installment loans has achieved many encouraging successes However, besides that, this activity also exists some threats as follows: Disbursement method: - Risks stem from customer conduct - The employee lost the customer's car registration appointment letter • There is no association or cooperation with insurance companies • Limited market share • There is no specific name for the auto loan installment loan product to distinguish it • from other similar products of other banks • The method of indirect lending through car dealers has not been implemented yet 2.4 KPI and KPR 2.4.1 Key performance Indicator – KPI My goal during the internship is to try to contact customers and convince them to use the car loan service at the bank In addition, I want to gain more knowledge about ACB's car loan service after the internship ends, and at the same time improve communication and persuasion skills with customers 2.4.2 Key performance results – KPR After 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: • The first is to learn, accumulate a lot of experience and knowledge about car loan products and services for individual customers, know how to exploit available information sources to serve work In addition, I have improved a lot in 25 communication skills with customers, searching skills, handling customer information, office skills (Word, Excel, ) new environment • Next, I also learned more about banking (consultant), trained to work under pressure and assigned targets Detail: • The third is about receiving information from individual customers who need a loan to buy a new car during the 3-month internship In addition, I also directly guide customers to apply for a car loan, including the following documents: • out of 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 Host firm assessment: The demand for buying cars of customers is very high today, because the society is growing and along with that, car manufacturers produce beautiful models, suitable for each person's finances Thereby increasing competition among banks in car loan services Thereby, customers will also make high requirements for the bank they will borrow money from Therefore, banks need to develop more services from customer care to online services to make it easier for customers to experience the bank's products Host firm recommendation:  Improve human resources: 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 be able to expand car loan installments quickly, in addition to understanding the credit process for auto installment loans, credit officers must understand each type of car, its price as well as its price major car dealerships Therefore, the bank regularly allows credit officers to learn about the car market as well as introduce car loan products to car manufacturers, and establish relationships with car dealers Credit officers actively create relationships with potential customers, self-finding customers, enthusiastic, hard-working In particular, in the process of lending procedures, credit officers must strictly adhere to the process, operations as well as lending rules to minimize risks for the bank 26  Improve the ability to check and control after borrowing: Improving the ability of customers to check and control after lending is necessary to be able to timely and accurately assess adverse fluctuations of customers, loans as well as collateral Specifically, take the following measures: Require customers to drive monthly or quarterly to the bank to check In case the customer intends to use the car to go away for a long time, it must notify the bank so that the bank can reduce the validity period of the copy of the vehicle registration for circulation of the customer to up to months, and at the same time, set up a customer tracking book to record necessary information Once every to months, the credit officer will check the collateral, financial capacity, make a written record signed by the customer, promptly detect signs of resource deterioration loan repayment income and decrease in collateral value  Improve customer financial appraisal capacity: In car loan service activities, financial ability is the main source of income to repay bank loans The main source of customers' income is from salaries, bonuses or dividends from valuable papers The accurate appraisal of the customer's source of income helps the bank determine the customer's ability to repay in the future However, accurately appraising a customer's financial capacity is not an easy task, requiring credit officers to have good knowledge, experience and analytical ability ACB should create conditions for credit officers to improve their qualifications in customer financial appraisal  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 Although the Vietnamese auto market is quite active, for most Vietnamese people, cars are still a relatively new item Vietnamese consumers cannot help but wonder about the quality of old cars Therefore, when you want to buy a car, often Vietnamese consumers will choose to buy a new car with quality assurance and warranty Therefore, when choosing to buy a car, customers often go to car dealerships and showrooms to display products Next, they will ask the car salesman to recommend banking services that can provide installment loans 27 So one solution is that ACB should sign an association contract with car dealers in the area or can sign a contract directly with sales staff If this solution is implemented, it is certain that the number of customers who come to the bank to borrow money to buy a car will increase significantly because of the fact that currently, most customers find themselves at the bank and the bank itself has not taken any measures actively and effectively to attract customers 28 PART 3: INTERNSHIP ASSESSMENT 3.1 The difficulties encountered During my internship at ACB - Xuan Thuy branch, besides the achieved results, I also encountered the following difficulties: • The first is the difficulty of surveying Although the survey has made positive contributions to the Bank in understanding customers and knowing customer satisfaction, there are also some limitations that are: The survey only focuses on customers Therefore, it is not possible to evaluate all customers as a whole transaction at Xuan Thuy branch • Next is an Email survey with a low response rate because most customers are busy or have no need I also have a few cases where customers' feedback may be incorrect because they may not remember the problem well, or they don't like surveys, or maybe they like to answer dishonestly So it slows down the 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, I was quite shy to talk and build relationships with everyone in the bank The age difference and shyness should lead to some small mistakes in the early stages of customer support To improve this, I tried to actively ask for the help of the brothers and sisters in the bank, fortunately they were all very happy and enthusiastic to guide me This not only helps me improve my relationships but also helps me cultivate and learn more knowledge • The last is the difficulty of knowledge and experience To improve this, I have spent a lot of time reading documents about products and services provided by the bank and trying to reach as many customers as possible possible to add more skills and experience 3.2 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 Learning about the banking industry: It helps me a lot in planning my future career What factors does that industry need, what skills and how to follow that industry Ability to calculate, logical thinking and good memory: with job characteristics, you are often exposed to a series of numbers and countless complex 29 calculations Besides, a good memory along with the ability to analyze and quickly assess problems is an advantage for you when studying this major 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 Withstand high pressure, know how to manage time effectively: working with numbers requires people working in finance and banking to really focus Therefore, it is necessary to have a good spirit Besides, it is essential to arrange a reasonable time to complete the job well Learn how to segment customers to find potential customers After identifying a specific source of potential customers, the task is to take care of potential customers Because taking care of potential customers is the best way to turn customers who need to use services into existing customers of the business Thereby creating a closer relationship and being able to understand customers better 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 3.3 Career plan ● Short-term: My short-term plan is to improve my computer skills, office skills and better understand the positions in the bank as well as the duties of each department, besides that I want to complete the course learn the best way ● Mid-term: During the past internship, I was able to adapt to the working environment and practice more discipline so that after completing the program, I will have a good premise to apply for the desired job ● Long term: Dive into finance-banking and insurance majors by further studying for a master's degree Favorite position in the long term is Sales Manager and furthermore is a director of a bank branch Because their responsibilities include developing and maintaining good relationships with customers and employees, branch managers must have solid sales, people management, and customer service skills Other attributes required of a branch manager are diligence, solid analytical skills, and the ability to prioritize, multitask, and pay attention to detail 30 CONCLUSION Today, the need for banks that know how to make their customers remember them is greater than ever, not only due to regulatory requirements but also due to changes and trends in the banking industry market with a team of customers who are more knowledgeable, more skeptical and more proactive in changing serving banks than before In addition, along with the general economic development, people's income will increase as well as the demand for banking services of individuals and businesses will also increase in the coming time After 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 It is known that with the advantage of achieving the title of "Top 10 prestigious joint stock commercial banks", ACB bank in general and Xuan Thuy branch in particular have been paying great attention and gradually perfecting products and services creating absolute trust for customers to become more and more known to attract new customers, turn existing customers into loyal customers, and help the Bank grow stronger 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! 31 APPENDICES My name is Nguyen Dang Hong Son, currently a final year student of Thuong Mai University, majoring in finance - banking - insurance Currently, I am researching customer satisfaction ratings on the quality of car loan services of ACB bank The results of this survey are the basis for me to research and evaluate the quality services of ACB bank Your objective feedback will contribute to the success of this study All of your comments are extremely valuable for my graduation thesis All information obtained will be kept confidential and used for research purposes only I look forward to your help Age of customer? 18 - 20 years old 21 - 30 years old 31 - 40 years old >40 years old What's your occupation? Student Freelance business Office staff Officials and civil servants What is your monthly salary? – 10 million VND 10 - 20 million VND 20 - 30 million VND >30 million VND How long have you used ABC's lending service? Less than year – years – years More than years What is the value of the car you bought? Under billion VND From to billion VND From to billion VND Over billion VND 32 What is the purpose of you using the car loan service? Serving travel needs Serving business needs What type of car loan you choose? Installment loan Loan each time How did you know about car loan service at ACB? (Multiple options can be selected) Recommended by friends Consultant of ACB Bank Internet Social media Other… Why you use car loan service at ACB? (Multiple options can be selected) Competitive interest rates 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, Other… 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 33 A Service capabilities Bank staff communicate and convey well Hardworking staff, and enthusiastic advice Staff have enough knowledge and professional qualifications Customers feel secure when dealing with customers B Reliability The bank always maintains its credibility with customers, respecting the interests of customers Bank keeps and secures customer's transactions The loan process is simple, does not take too much time opinion 10 11 12 13 14 15 16 17 18 19 34 The bank provides the service and loan quality as per the results C Satisfying customer loan needs Reasonable loan interest rate The staff advises clearly and specifically about loan packages Diverse loan packages to meet all customer needs The bank's working hours are suitable D Consent The bank has many promotions for customers The bank cares about the interests of customers The bank is ready to be flexible in time to welcome customers Friendly staff, enthusiastic with customers E Satisfaction Are you satisfied with the quality and loan service of ACB bank? Are you satisfied with the bank's loan interest rate? 11 Will you still use car loan service at ACB bank? Yes No 12 Would you introduce your friends and partners to use the car loan service at ACB bank? Yes No 35 LIST OF REFERENCES https://www.acb.com.vn/wps/portal/Home https://thebank.vn/blog/14847-nhung-ngan-hang-cho-vay-mua-o-to-voi-lai-suat-tot- nhat-hien-nay.html https://www.acb.com.vn/wps/portal? 1dmy&page=acb.category.detail&urile=wcm:path:ACBWebsite/acb-vn/personal/chovay/vay-tieu-dung/cho-yeu-thuong-di-muon-noi 36 ... results – KPR After 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. .. Sincere thanks to everyone Ha Noi, May 27,2022 Sincerely, Nguyen Dang Hong Son PART 1: OVERVIEW OF ASIA COMMERCIAL JOINT STOCK BANK -XUAN THUY BRANCH AND THE INTERNSHIP 1.1 Asia Commercial Joint Stock. .. must be purchased at official dealers of car manufacturers in Vietnam  Product features - Loan amount: up to 70% of the purchase value of the car - Loan period: • • Mortgage of the purchased vehicle: