Kinh nghiệm nâng cao hiệu quả hoạt động kinh doanh ngân hàng thương mại cổ phần bưu điện liên việt

No 01 (14) - 2022 STUDY EXCHANGE LIENVIET POSTBANK: EXPERIENCES TO IMPROVE BUSINESS PERFORMANCE MA Kim Minh Tuan* Abstract: LienViet PostBank needs to learn not only the experience of domestic commercial banks but also foreign banks Those experiences range from growth, expansion of partners, modernization of banking technology to business processes • Keywords: commercial banking, business operations, process management, information technology… Date of receipt: 2rd December, 2021 Date of receipt revision: 15th December, 2021 Date of delivery revision: 8th December, 2021 Date of approval: 20th January, 2022 Tóm tắt: Bài viết xin đề cập đến kinh nghiệm hoạt động ngân hàng thương mại, Những kinh nghiệm bao gồm từ tăng trưởng, mở rộng đối tác, đại hóa cơng nghệ ngân hàng đến quy trình kinh doanh, để từ rút kinh nghiệp quý báu nhằm vào tăng cường hoạt động có hiệu NH Lienviet Post Bank (LPB) • Từ khóa: ngân hàng thương mại, hoạt động kinh doanh, quy trình quản lý, công nghệ thông tin… Sustainable growth by diversifying and modernizing products and services Lien Viet Post Joint Stock Commercial Bank needs to learn from the experience of Vietnamese commercial banks to grow sustainably by diversifying and modernizing products and services To that, LienVietPostBank needs to develop diverse products to suit each customer group In particular, potential customers in the financial market in Vietnam such as corporations, big joint-stock companies, FDI enterprises Along with diversifying services, LienVietPostBank needs to improve the quality of non-credit products and services to attract customers On the basis of diversifying products and services and improving service quality, the Bank will increase the proportion of income from non-credit activities in total income Through these activities, LienVietPostBank not only retains existing customers but also attracts new customers to increase income VCB’s experience is the first bank that can handle all bad debts sold to VAMC and is also the pioneer bank to reduce interest rates, accompanies businesses, and supports many products for small and medium enterprises Diversifying products is not only suitable for a wide range of customers and different needs but also spreads risks In addition to maintaining traditional banking products such as deposit receipts, loans, payments, etc., foreign commercial banks also have special products for different customers For individual customers, the customer group is classified as a group of customers with stable and high incomes For corporate customers, they are classified by-their products, such as industry, business object, and capital size Experience of Siam Bank - Thailand in providing and developing services according to the multi-function model, diversifying products and services The main products are provided by Siam have attracted many customers such as financial consulting, financial restructuring support, exchange rate risk management, investment solutions for businesses * Lienviet Post Bank (LPB) Journal of Finance & Accounting Research 31 No 01 (14) - 2022 STUDY EXCHANGE The experiences of large commercial banks also show that products and services must be deployed based on technology development and information technology application, especially digital banking In fact, the quality of digital banking services makes it convenient for customers and low transaction costs Thanks to the application of digital technology and the use of applications to support the manipulation of services and internal operations faster and more accurately That is a way to improve the labor productivity of commercial banks In order to deploy to a large number of customers, LienVietPostBank needs to expand its commercial activities on the basis of the existing banking network VCB’s experience, as of December 31, 2017 VCB has 101 branches, 397 transaction offices in the territory of Vietnam, and 2,105 correspondent banks present in 131 countries Therefore, VCB has always maintained as a commercial bank with a large market share, and business performance indicators are always high Commercial banks are aware of the role of technology in the operation of commercial banks First of all, commercial banks apply digital and information technology platforms Siam really develops commercial banking technology in Internet banking, Mobile Banking, e-wallet services Thanks to that, customers can see the convenience in the transaction process The technology platform also supports employees in their business performance From customer data management tools to reports, support is fast and accurate Technology also helps commercial banks advertise and market their products In addition to advertising in the traditional way like on mass media such as television, newspapers, and at the same time bringing the image of the bank to a wider audience through social networks Developing non-credit activities is an important growth direction Non-credit activities are activities that bring low-risk income for commercial banks Therefore, 32 commercial banks always focus on developing non-credit activities Typical non-credit services are payment services, collection and payment services, and remittance services Large commercial banks such as VCB, Vietinbank all focus on diversifying services to suit the needs of customers In payment activities, commercial banks have improved technology so that the payment process can be done quickly, safely, and accurately Officers and standardization of transaction processes Commercial banks want to be improved business efficiency, the first requirement is to improve the quality of human resources and business culture The human factor determines the quality and performance of every business High human resources bring business efficiency to commercial banks Experience from domestic commercial banks shows that LienVietPostBank should invest in developing professional skills and knowledge for employees Today, online courses provide a method of training and improving knowledge for employees, saving time and money Foreign commercial banks always focus on developing knowledge and skills for employees Bank employees can participate in courses ranging from general skills training to specialized training From centralized training to online courses, domestic and international training In addition, commercial banks also provide training by inviting famous experts from different fields to share their experiences and arouse working spirit In addition to professional skills, LienViet PostBank needs to pay attention to building a commercial bank’s corporate culture A good working environment not only attracts and retains many capable and highly qualified employees but also increases labor productivity in the workplace When working in a comfortable and open atmosphere, commercial banks will be motivated, encouraged, and work more effectively Journal of Finance & Accounting Research No 01 (14) - 2022 STUDY EXCHANGE Through the study of experience from commercial banks, it shows that commercial banks with good service quality are banks with clear, strict but easy business processes for both customers and the banks The standard transaction process will shorten transaction time for customers From there, attracting more customers, increasing income, and improving business performance Experience at VCB has standardized the transaction process with customers, including the business process and the maximum time to perform that transaction For example, VCB stipulates that the maximum time to perform all deposit/withdrawal operations from a deposit account is 10 minutes Thanks to this norm, the transaction speed of each customer at the transaction points has saved time and created customer satisfaction Expanding partners, creating effective social media LienVietPostBank needs to find capital, technology, and business from foreign commercial banks and FDI enterprises Foreign commercial banks usually have a long history of operation, experience in management, and have great capital potential Vietnamese commercial banks need to have connections to learn and receive capital support from foreign commercial banks There are many ways to expand partners who are foreign commercial banks From the exchange of business visits to learn from the sale of shares to foreign commercial banks VCB sold 15% share capital to Mizuho Bank Limited (MHCB) of Japan nearly 10 years ago As a result, MHCB has provided VCB with technical services in various aspects of effective business operations The implementation of Basel at VCB was quick and on the right track Effective credit risk management is carried out according to international standards The organizational structure is clearly established both in terms of model and structure of functions, tasks, and activities invested enterprises FDI enterprises are a huge number of customers to domestic commercial banks In addition to using services like other businesses, FDI enterprises also bring experiences and requirements in transactions for domestic commercial banks to change Foreign-invested enterprises often operate on the basis of international law Therefore, they also require domestic commercial banks to meet those strict standards Typical of this experience from VCB, Vietnamese commercial banks have the largest number of FDI customers To meet the needs of FDI enterprises, VCB established an FDI customer room in the system VCB has corporate customer development departments from Japan, China, Korea, the EU - the US VCB is a commercial bank that has signed cooperation agreements with nearly 60 local banks in Japan In today’s modern society, communication helps to connect businesses and customers Especially with the explosion of social networks, the connection between banks and customers will become quick and timely if commercial banks make good use of social networks Communication through social networks will help commercial banks’ products and services come closer to customers Experience shows that using social networks effectively besides traditional advertising channels will help effective marketing This is also the cheapest and fastest advertising method References: Boriboon Pinprayong (2012) “Restructuring for organizational efficiency in the bank sector in Thailand: A case of Siam commercial bank” Nguyen Thu Ha (2019) “Improving business performance at Military Commercial Joint Stock Bank” Joint Stock Commercial Bank for Foreign Trade of Vietnam (2015-2020), Summary of Financial Statements Lien Viet Post Joint Stock Commercial Bank  (20152020), Summary of financial statements Domestic commercial banks not only learn from the experience of foreign commercial banks but also need to learn from foreign- Journal of Finance & Accounting Research 33