IMPROVING INTERNET BANKING SERVICES OF SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK, CAU GIAY TRANSACTION OFFICE, DONG DO BRANCH

Professional bachelor degree in Finance-Banking-Insurance (Customer relationships management) WORK PLACEMENT REPORT IMPROVING INTERNET BANKING SERVICES OF SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK, CAU GIAY TRANSACTION OFFICE, DONG DO BRANCH Names of student: Nguyen Do Huong Linh University year: 2019 - 2022 Tutor atTMU: Assoc Prof PhD PHAM Tuan Anh Tutor at USTV: Marie-Josée Cambreling Tutor at (Company):Mrs.Nguyen Thi Hong Hanoi - 2022 TABLE OF CONTENTS TABLE OF CONTENTS .1 LIST OF TABLES .3 LIST OF CHART INTRODUCTION .1 PART 1: OVERVIEW OF SACOMBANK, DONG DO BRANCH AND THE INTERNSHIP 1.1 Sacombank: 1.2 Dong Do branch: 1.3 Introduction of the internship: PART 2: INTERNSHIP IMPLEMENTATION AT DONG DO BRANCH 2.1 The internship position, responsibilities and tasks 2.1.1 Department structure and internship position .5 2.1.2 Business procedure and work placement responsibilities 2.1.3 Daily tasks 2.2 Some business cases .6 2.2.1 Case No1 2.2.2 Case No2 2.2.3 Case No3 2.2.4 Case No4 2.3 Service analysis 2.3.1 Customer research 2.3.2 Competitor analysis 14 2.3.3 SWOT analysis 16 2.4 KPI and KPR .17 2.4.1 Key performance Indicator – KPI 17 2.4.2 Key performance results – KPR 17 2.4.3 Host firm assessment and recommendation 17 PART 3: INTERNSHIP ASSESSMENT 20 3.1 The difficulties encountered 20 3.2 Internship gained .20 3.3 Career plan 20 CONCLUSION 22 APPENDICES 23 PART I: GENERAL INFORMATION 24 LIST OF REFERENCES 27 LIST OF TABLES Table 1: Internship plan at Sacombank – Dong Do branch Table 2: Purpose of using internet banking of customers 12 Table 3: Level of customer satisfaction 13 Table 4: Maximum transaction limit and daily limit of Internet banking services at banks 14 Table 5: Comparison of Internet banking services of Sacombank with other banks 15 Table 5: SWOT analysis 16 LIST OF CHART Chart 1: Organizational chart of Sacombank- Dong Do branch Chart 2: Gender Chart 3: Age Chart 4: Job Chart 5: Income Chart 6: Customers Chart 7: Media channels to help customers know about Sacombank’s internet banking services INTRODUCTION In the context of Vietnam's deep and wide integration, competition with international banks is increasing, one of the major reforms in the profit-seeking strategy of banks is to increase revenue from banking activities Other business activities, besides the two traditional types of business, are receiving deposits and lending To this, commercial banks need to better exploit profits from nontraditional business services Currently, the non-traditional business services of commercial banks are very diverse These can be mentioned as ATM services, home banking, phone banking However, as the Internet becomes more and more popular and important to everyone, e-banking services are becoming more and more important for banks to exploit for profit Not only that, this type of service is also a useful tool to help banks quickly assert their name Grasping that trend, Saigon Thuong Tin Commercial Joint Stock Bank has been making efforts to catch up with the process of banking modernization, not only perfecting traditional operations but also focusing on developing applications, using modern banking, including Internet Banking However, the development of Internet Banking of Sacombank still has difficulties and limitations The urgent issue now is finding a way to successfully develop this service, helping the bank affirm its position and brand as a pioneer in technology application PART 1: OVERVIEW OF SACOMBANK, DONG DO BRANCH AND THE INTERNSHIP 1.1 Sacombank: ● Name: Saigon Thuong Tin Commercial Joint Stock Bank ● Slogan: “Accompanying development”: The content of the slogan is quite simple and easy to understand for everyone "Accompanying" with the desire that customers accompany the business to develop When choosing to use Sacombank's services, it is choosing to accompany the company and develop together ● Location: Head office: 266 - 268 Nam Ky Khoi Nghia, Vo Thi Sau Ward, District 3, City Ho Chi Minh City ● Number of employees: 18,500 people ● Date of creation: 21/12/1991 ● Sacombank officially came into operation with an initial charter capital of billion VND with the merger of Go Vap Economic Development Bank with credit cooperatives Tan Binh, Thanh Cong and Lu Gia ● Establishment license: Issued by the City People's Committee Issued by Ho Chi Minh on April 3, 1992 ● Business registration certificate: Issued by the Department of Planning and Investment of Ho Chi Minh City ● Activity : - Range of products: Accounts, Savings, Loans, Services, Insurance, Deposits, Sacombank eBanking - Competition: BIDV, Agribank, Techcombank, Kienlong bank, ACB, MB, VIB, ABBANK 1.2 Dong Do branch: ● Location: 363 Hoang Quoc Viet, Cau Giay, Hanoi ● Number of employees: 50-99 employees ● Date of creation: 15/02/2008 pg ● Range of products: Print account statement, Money tally, Payroll in batches, Card service, Replace renew card, Property management, Loan service, International banking services ● Phone: +848 39 320 420 Fax: +848 39 320 424 1.3 Introduction of the internship: ● Why the topic: According to Sean Valant's "A Day in the Life of the Internet" summary, as of September 2013, there are about 2.4 billion internet users in the world, an increase of 566% compared to 2000 Also according to the report In this case, 50.1% of users use the internet for banking services In recent years, especially in Vietnam, the electronic payment market has undergone rapid development In the third quarter of 2012, according to research by IDG-BIU (Business Intelligence Unit), the number of people using Internet Banking services increased by 35% compared to 2010 The development of electronic banking in general and Internet Banking (iBanking) in particular is one of the most effective solutions to increase the competitiveness of banks, diversify products, increase convenience and speed Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) also started developing ebanking services in 2005 to meet the needs of customers, making the bank the leading retail bank in Vietnam Therefore, in order to have an overview of e-banking services, specifically Internet Banking of the bank as well as propose solutions to improve service quality, I would like to choose the topic: Improving Internet banking service of Saigon Thuong Tin Commercial Joint Stock Bank, Cau Giay transaction office, Dong Do branch ● Internship plan: pg Table 1: Internship plan at Sacombank – Dong Do branch Date From:05/03/2022 To:15/03/2022 From: 16/03/2022 To:10/04/2022 Task / Mission Task / Mission 1: Outcome Having basic Learn details about online knowledge of internet banking services, steps banking services, know and procedures for the process of performing internet transactions for transactions of the service individual customers Task / Mission 2: - Learn how to Learn how to negotiate negotiate with customers with customers to improve customer communication - Improve customer problem solving skills skills, problem solving From:10/04/2022 To: 25/04/2022 skills, teamwork skills Task / Mission 3: Analyze the SWOT matrix Statistics on strengths, weaknesses, threata and opportunities of Sacombank in internet From: 25/04/2022 Task / Mission 4: banking services From the survey To: 15/05/2022 Conduct customer results, I know the surveys and analysis satisfaction level of customers when using internet banking services From 15/05/2022 Task / Mission 5: at Sacombank - Knowledge of To: 28/05/2022 Complete my work Internet banking services placement report of Sacombank - Identify career plans in the near future PART 2: INTERNSHIP IMPLEMENTATION AT DONG DO BRANCH pg 2.1 The internship position, responsibilities and tasks 2.1.1 Department structure and internship position ● Department structure: Manager deputy directors Business Department Risk control department Accounting and fund department International Payment Department Trading department Currency trading department Administrative department Bussiness Department Accounting department transaction offices Chart 1: Organizational chart of Sacombank- Dong Do branch (Sources: Official website of the bank) ● Internship position: intern in personal customer care – Cau Giay transaction office 2.1.2 Business procedure and work placement responsibilities Perform reception, greeting as well as learn the needs of customers Consulting and supporting customers when in need of internet banking products and services Introduce new products and promotions to customers when using the service Collecting opinions, explaining and guiding customers to resolve comments and questions within the permitted scope In case you can't solve it yourself, you need to make suggestions to your superiors for support Receive and resolve customer complaints Support and help customers to perform transactions on banking products and services such as transactions, account opening, account management, payment, money transfer, bill payment, Support customer care, ensure to always keep the standards, quality as well as regulations on customer care of the bank Expand relationships, help, take care of customers to direct customers to use other products 2.1.3 Daily tasks pg  From 08:00 A.M to 11:00 A.M: - Welcoming and understanding the needs of customers - Receive and handle customer requests/inquiries related to the bank's internet banking services - Introducing the bank's attractive promotions and incentives when customers use the service - Help employees in setting up customer profiles  From 01:30 P.M to 05:00 P.M: - Receive and manage customer complaints and issues to be resolved and provide information to the appropriate departments to handle such complaints - Filter customer's bank card and check customer information - Get the signature and seal of the branch manager for each client document - Make a report on the number of customers transacting in the day 2.2 Some business cases 2.2.1 Case No1 ● Customer information: - Customer ID: 001SCB - Sex: Male - Age: 20 - Address: Mai Dich - Cau Giay - Ha Noi - Occupation: Student - Monthly income: million / month Customers who want to open an internet banking account  Information Services: - Name: Internet banking - Type: Register for internet banking service ● Negotiations and result: - Negotiation: The intern has filled in the available information in the form and waits for the account activation At the same time, introduce promotions when customers use the service, answer customer questions about the service Then, the trainees introduced more to customers how to register for internet banking service online through the official website of the bank and guide to install the banking application on the phone - Result: Customer successfully opened an account and was satisfied with the service quality 2.2.2 Case No2 pg Table 3: Level of customer satisfaction Sacombank’s internet banking service has high security and safety Website transactions are stable, no congestion occurs Transactions in internet service are Completel Disagre Neutra Complel Agre y disagree e l y agree e 1% 3% 23% 41% 32% 1% 7% 23% 42% 27% 1% 3% 19% 46% 31% 1% 2% 21% 40% 36% 1% 3% 27% 36% 33% 1% 4% 23% 40% 32% 1% 4% 15% 42% 38% 1% 2% 20% 46% 31% 1% 2% 17% 42% 38% 1% 6% 29% 36% 28% 1% 4% 24% 40% 31% banking performed exactly as committed by Sacombank Sacombank notifies you when the service will be performed Access and transactions on Sacombank’s website are done quickly The facilities in Sacombank’s internet banking service can meet your needs Simple transaction process Sacombank’s employees are always ready to help when customers have requests Sacombank always clearly discloses the current regulations and procedures for internet banking transactions Fees for using internet banking services are appropriate and acceptable Sacombank has good incentives and promotions for customers when using the service (Source: taken from survey results) Comment: Through the above assessment, we can see that customers are quite satisfied with Sacombank's internet banking service, the level of service satisfaction accounts for nearly half On the other hand, the percentage of customers who feel not really satisfied with the security, access speed, stability of the transaction website, transaction fees and incentives when using the service is still quite high (> 20 %) This pg 13 shows that Sacombank needs to try to improve the above issues to bring the best experience to customers 2.3.2 Competitor analysis Table 4: Maximum transaction limit and daily limit of Internet banking services at banks Individual customers Sacomban VCB k Transaction 500 million 300 limit VND millio n VND Limit for billion 500 the day VND millio n VND Transaction billion limit VND CTG 50 millio n VND 200 millio n VND billion VND ABC Kienlon g Bank If you 20 register for million confirmatio VND n by email, there is no 100 million limit VND billio n VND Business 200 customers billio million n VND VND Limit for 15 billion 15 billion the day VND billion billio VND VND n VND (Source: data compiled from official websites of banks) Comment: Looking at the table above, we can see that the credit limit that Sacombank grants to customers is high compared to both state-owned commercial banks or other joint stock commercial banks To avoid risks, depending on each limit, the bank will have specific requirements for customers and specific written agreements for each case For limits higher than the specified limit, approval of the bank's board of directors is required pg 14 Table 5: Comparison of Internet banking services of Sacombank with other banks Queries Transfer Send savings online Bill payment Financial services Electronic Recharge Receiving remittances, foreign currency transactions Carry out financial transactions through online payment gateways Pay domestic tax Tuition payment SMS verification code Token Key Verification Code Service maintenance fee for individual customers Service maintenance fee for corporate customers Sacombank VCB Techcombank CTG ACB x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Kienlong Bank x x x x x x x x x x x x x x x x x x VND 33,000/quarte r (free if you only register for query service) Free Free VND 100,000/ year VND 9,900/ month Free Free VND 100,000/ year VND 100,000/ year VND 9,900/ month Free VND 10,00/ month x (Source: data compiled from official websites of banks) Comment: Most banks have been gradually improving, providing more and more types of transactions and payments to customers, so banks compete with each other mainly through fees as well as related incentives In fact, in order to attract customers, many banks have not yet collected service maintenance fees for individual customers, including Sacombank In addition, Sacombank is having a promotion program to pg 15 refund 10% of the value of electronic transactions for customers when paying and depositing e-money via iBanking 2.3.3 SWOT analysis Table 5: SWOT analysis Strength - Although the number of customers of Sacombank is less than the market, the majority of customers coming to Sacombank are long-term customers and potential customers - Sacombank has higher transaction limit and limit for day for individual customers than competitors - Sacombank is free to maintain services for corporate customers while other banks have to pay a fee - Sacombank has a team of highly qualified, well-trained personnel with a dedicated and attentive service attitude Opportunity - Vietnam currently has over 97.4 million people with a young population structure, so access to technology and the internet is high, the percentage of population using smartphones increases rapidly, creating favorable conditions for internet banking services strong growth - On the basis of developed technology, Sacombank has favorable conditions to develop internet banking services, meeting the increasingly diverse needs of customers in line with the 4.0 industrial era - International integration increases the level of competition but also increases the soundness and safety of the entire banking system On the other hand, through integration, the bank has the opportunity to access capital, technology, experience and management level of developed banks in the world Weakness - Modern technology has not been applied synchronously throughout the system - The marketing of products and services is not really effective and has not made a difference - The market share is not really large - Risk management in business is still quite poor Threat - Competing banks are increasingly developing technology into electronic payment services, causing many customers to wonder which bank's services should they choose - Online transactions are still not really convenient, there are still many costs when using the service and there are many technical errors in the system, showing that Sacombank still needs to improve a lot in the service system to meet the needs of customers - The network security issues still exist quite a lot, so customers still not fully trust the safety of this service pg 16 2.4 KPI and KPR 2.4.1 Key performance Indicator – KPI ● Customer retention rate > 90% ● Rate of customers leaving the business < 10% ● Rate of customer sympathy > 90% ● Customer satisfaction index 9/10 points ● Rate of customer complaints < 10% ● Problem solving rate from the first call > 70% ● Rate of resolved issues/backlogs > 80% 2.4.2 Key performance results – KPR ● Customer retention rate = 75% (not yet achieved) ● Rate of customers leaving the business = 8% (passed ● Rate of favorable customers = 90% (pass) ● Customer satisfaction index = 8/10 points (pass) ● Rate of customer complaints = 11% (unsatisfactory) ● Rate of problem solving from the first call = 60% (unsatisfactory) 2.4.3 Host firm assessment and recommendation In the coming time, in order to develop internet banking services at Sacombank, it is necessary to perform the following solutions synchronously: • Firstly, Sacombank needs to constantly invest in infrastructure, improve technology to ensure smooth digital banking operations, provide diversified, easy-touse digital banking services, and create trust with customers Because when deploying and developing digital banking services, capital, technology, and technology infrastructure are fundamental and important factors that need to be given top attention It is necessary to optimize different technology areas such as server systems, data centers, hardware and software equipment that can be linked between domestic and foreign banks' systems Upgrading and expanding the transmission line with large capacity and high speed is also necessary to avoid the case of too many users at the same time causing network congestion On the other hand, information security is especially important for banks and customers This is one of the factors that create psychological barriers for customers when accessing digital banking services This requires Sacombank to invest in a total solution from infrastructure to security software solutions and a team of experts and security experts in the banking sector pg 17 • Second, Sacombank needs to establish an effective risk management supervision mechanism in digital banking services To perform digital banking services, bank managers need to be fully aware of the complexities of digital banking applications and must have certain technical and technological knowledge This is essential whether digital banking systems and services are managed directly or outsourced to a third party Monitoring processes need to be implemented regularly and effectively to detect and promptly handle any arising risks or any illegal intrusions that may appear in the digital banking system Risk management processes for digital banking must be integrated into the bank's overall risk management mechanism The bank's risk management policies and procedures should be regularly reviewed, evaluated, revised and upgraded in a timely manner to ensure their suitability and ability to handle risks arising in internet banking activities in the present and in the future • Third, the bank's security control system needs to be regularly upgraded and maintained continuously to ensure the safety of the digital banking technology and data system, and avoid risks arising from inside sources or outside outside Reasonable permissions should be established, strict data and access controls, and strict infrastructure security controls should be established to maintain permission limits for both users and outsiders • Fourth, improve service quality, diversify products, distribution channels and promote product promotion In order to retain current customers, make a good impression on potential customers and improve competitiveness with other banking services, banks need to diversify products and services, distribution channels, etc, identify the needs of each customer group to offer suitable products and services Gradually bring modern services to the countryside, proactively identify the needs of each customer group across regions to offer products suitable for each target group In addition to product research and development, banks need to focus on introducing and promoting products to customers, setting out promotional strategies suitable for each customer • Fifth, improve the qualifications and thinking of the bank's staff To be able to maintain the current customer base and be able to promote the products through it to other customers, the bank needs to strengthen and improve the relationship with customers The bank's customer service department needs to be fully invested in facilities, equipment as well as trained professional staff On the other hand, banks need to have a plan to build and train a team of dedicated staff who are ready and timely to support and advise customers to provide pg 18 digital banking services to each customer group, each specific customer Train staff to master modern techniques, have good communication skills, handle situations professionally, in order to bring high service quality and meet customers' expectations The staff is not only good in professional capacity to be able to explain all product questions to customers, but also has a cheerful attitude to welcome customers, creating comfort and satisfaction for customers pg 19 PART 3: INTERNSHIP ASSESSMENT 3.1 The difficulties encountered ● Difficulties encountered during the internship: - Because experience and knowledge are not complete, so when coming to the internship, there are still many new problems that are difficult to solve by myself This affects the process of performing assigned tasks at the internship site - When conducting the survey, I also encountered some limitations due to the relatively small number of surveyed customers Many customers not want to participate in the survey for fear of their personal information being exposed, causing inconvenience later On the other hand, many customers agree to participate in the survey - The official data source that I am allowed to access is not really abundant, due to the information security requirements of the bank I only have access to and search for some documents that are widely publicized by the bank ● To overcome these difficulties, I think I should take the following measures: - Look and follow the instructions of the official staff of the bank Take the initiative to ask what you not know to complete the assigned work in the best way - Create trust for customers by convincing them - Search for more data and information from other sources such as newspapers or the Internet 3.2 Internship gained ● Knowledge gained: Gain more knowledge about Sacombank's internet banking account opening process, understand more about customer habits, knowledge about handling reports, handling customer problems ● Experience gained: Gained more experience in welcoming customers, solving customer problems, assisting customers in opening bank accounts, finding products that meet customer needs ● Skills improvement: Improve communication skills with colleagues and customers; problem-solving skills occur; improve teamwork skills, at the same time know how to work independently and proactively 3.3 Career plan ● Short time: My plans for the next months: - Complete and defend the internship report well - Add more knowledge about the banking industry ● Mid-term: within the next year: pg 20 - Join more English communication courses - In addition, I also want to complete an office computer course to improve my level of word, excel - Internship at many different banks to gain experience ● Long-term: about years later - Find yourself a job that is suitable for your specialty - Then I will become a full-time employee of a bank - Be able to be financially independent and invest more in social skills pg 21 CONCLUSION The biggest benefit of Internet banking is convenience and reducing the cost and time of performing banking transactions Online banking service makes it convenient and easy for anyone to transact money, pay bills, query account information, make online purchases in just a few minutes from a computer or handheld device that can network connections Furthermore, customers get additional benefits such as bigger discounts on online purchases, online hotel and travel bookings Internet banking has created an alternative transaction channel, reducing costs for banks as well as customers, significantly contributing to the formation of a cashless economy Besides the benefits of Internet banking, there are still many difficulties and challenges for Sacombank in particular and Vietnamese commercial banks in general Therefore, in order to meet the increasing demand of customers for Internet banking services, in the field of technology, Vietnamese commercial banks need to focus on investing in data security and safety technology from countries with advanced technology background In addition, banks must pay more attention to service quality, especially information security and authentication to create trust in customers Vietnamese commercial banks also need to actively propagate and create favorable conditions to gradually overcome the habit of using cash in payment of Vietnamese users Finally, Vietnamese commercial banks need to strengthen their support for online banking services on the Internet in receiving and responding to requests from customers pg 22 APPENDICES Survey of internet banking service quality at Sacombank, Dong Do branch Dear Sir/Madam, I am a student majoring in Finance - Banking - Insurance of the Faculty of International Education, Thuongmai University, affiliated with the University of Toulon, France Currently, I am an internship student at Sacombank Dong Do branch and I am doing an internship report with the topic: “Improving Internet banking services of Saigon Thuong Tin Commercial Joint Stock Bank, Cau Giay transaction office, Dong Do branch" Could you please take a moment to answer some of the questions below I undertake that the information provided by you for this research is completely confidential and will be used for research purposes only Looking forward to your help! I sincerely thank! pg 23 PART I: GENERAL INFORMATION (Please tick x before the answer you choose) Question 1: Gender □ Male □ Female Question 2: Age □ Under 22 years old □ From 22 to 30 years old □ From 30 to 50 years old □ Over 50 years old Question 3: Job □ Student □ Office staff, civil servants □ Trader, businessman □ Workers, farmers □ Other items: Question 4: What is your monthly income? □ Under million □ From to 10 million VND □ From 10 to 20 million VND □ From 20 to 30 million VND □ Over 30 million VND Question 5: Do you use internet banking service of Sacombank? (if "Yes" please answer the following questions) □ Yes □ No Question 6: You have registered for internet banking service package for: □ Individual customers □ Corporate customers □ Both Question 7: How did you know about Sacombank's internet banking service? □ Bank website □ At the bank's counter □ Mass media □ Recommend by relatives and friends □ Other items: Question 8:You often use internet banking services to: □ Checking account balance pg 24 □ Transfer □ Pay bills □ Borrowing capital □ Update information on fee schedule, exchange rate, interest rate □ Other items: pg 25 PART 2: PLEASE INDICATE YOUR ASSESSMENT OF THE QUALITY OF INTERNET BANKING SERVICE AT SACOMBANK ACCORDING TO THE BELOW LEVEL: (Please tick x before the answer you choose) Level Completely disagree Disagree Neutral Completely agree Agree Sacombank’s internet banking service has high security and safety Website transactions are stable, no congestion occurs Transactions in internet banking service are performed exactly as committed by Sacombank Sacombank notifies you when the service will be performed Access and transactions on Sacombank’s website are done quickly The facilities in Sacombank’s internet banking service can meet your needs Simple transaction process Sacombank’s employees are always ready to help when customers have requests Sacombank always clearly discloses the current regulations and procedures for internet banking transactions Fees for using internet banking services are appropriate and acceptable Sacombank has good incentives and promotions for customers when using the service pg 26 LIST OF REFERENCES - Documentary: Sean Valant (2013), A Day in the Life of the Internet - Bank's websites: + ACB http://www.acb.com.vn/ + Agribank http://www.agribank.com.vn + Kien Long Bank http://www.kienlongbank.com.vn/ + Sacombank http://Sacombank.com.vn + Techcombank https://www.techcombank.com.vn/ + Vietcombank https://www.vietcombank.com.vn/ + Vietinbank https://www.vietinbank.vn pg 27 ... Dong Do branch and I am doing an internship report with the topic: ? ?Improving Internet banking services of Saigon Thuong Tin Commercial Joint Stock Bank, Cau Giay transaction office, Dong Do branch" ... banking service of Saigon Thuong Tin Commercial Joint Stock Bank, Cau Giay transaction office, Dong Do branch ● Internship plan: pg Table 1: Internship plan at Sacombank – Dong Do branch Date From:05/03/2022... 1: OVERVIEW OF SACOMBANK, DONG DO BRANCH AND THE INTERNSHIP 1.1 Sacombank: ● Name: Saigon Thuong Tin Commercial Joint Stock Bank ● Slogan: “Accompanying development”: The content of the slogan