INTRODUCTION TO THESIS
The urgency of the thesis
Along with the socio-economic development, the activities of commercial banks are increasingly developed and reached certain achievements in many aspects such as technology modernization, supplying of new products and services, risk managements, customer-oriented restructuring Accordingly, retail activities account for a large proportion in commercial banks and bring about many benefits
On the socio-economic perspective, retail activity contributes to improving people's living standards, reducing social costs, and improving civilization in payment
Considering the financial and management aspects of banks, retail operations reduce risks, creating stable sources of income for banks This is a fast-growing trend of commercial banks in the world in recent years
In Vietnam, under the pressure of: competition from other credit and non- credit institutions, foreign banks, increasing in understanding and demand of the bank, and the development of information technological advances and retail activities of commercial banks in recent years have made remarkable progress; however, there are many shortcomings such as: lack of synchronism in the development of retail banking activities Service products are traditional, poor in category, utility is not high Service quality is low The level of technology application in service development is limited Distribution channels are not diversified and ineffective Marketing sales are passive due to lack of full customers’ information system There is no set of indicators to assess retail performance as well as effective risk management The effectiveness of retail banking on the social and economic aspects is quite modest
Meanwhile, with the potential market of nearly 100 million people, foreign banks, non-banks, non-banks, and non-financial institutions are acting aggressively to gain market share in this field The Bank for Investment and Development of Vietnam (BIDV) have the same vision In recent years, in addition to providing traditional products to corporate clients, the Bank for Investment and Development of Vietnam There are strong directions in the development path that retail banking products are considered as a long-term business strategy and conditions for sustainable development in their operations
However, the development of retail banking products at BIDV has not changed dramatically; the retail banking products and services have not yet reached the customers, and the retail market share is not high in business activities Together with the trend of BIDV, Thai Ha branch - new branch in BIDV system, with the former branch of Mekong Delta Bank House (MHB Ha Tay) was merged into BIDV in May 2015 Government policy
Since its founding, Thai Ha has focused on retail development However, new retail banking activities are still inadequate Therefore, the improvement of synchronous and creative solutions to develop the retail banking products at the branch will contribute to fulfilling BIDV's goal
Based on the above reasons, with the desire to find out solutions in a consistent, effective and practical way to develop retail activities of BIDV - Thai Ha Branch, I chose the problem: Retail banking at the Bank for Investment and Development of Vietnam - Thai Ha Branch as the thesis topic.
Purpose of thesis
Studying and researching the basic theoretical issues of development of retail banking activities of Vietnamese commercial banks
Reflects and assesses the development of retail banking activities of BIDV Thai Ha branch including analyzes the shortcomings, constraints and causes affecting the development of retail banking activities of the branch
Suggest some solutions to help BIDV Thai Ha branch in particular and commercial banks in general to promote banking services at BIDV Thai Ha branch to bring efficiency to the branch, reduce risks, contribute enhancing competitiveness and sustainable development.
Subjects and scopes of study
Subjects of study: Improving retail banking activities of BIDV Thai Ha branch
- The improvement of retail banking services at BIDV Thai Ha branch in 2015, 2016;
- Direction and solutions to improve services of BIDV Thai Ha branch to 2020.
New contributions of the thesis
Theoretically, the thesis has made a systematic approach and explanation to further clarify the basics of retail banking activities of commercial banks with an independent role for sustainable development of banking activities and commercial banks retailing
In terms of practical research: Based on the analysis of BIDV's retail operation in Thai Ha in recent years, the thesis has identified certain achievements, shortcomings and constraints In retail banking activities, this is the field of activity that foreign banks, non-NH financial institutions are particularly interested in exploiting in the US market Therefore, in order to win the fierce competition, the general banks in Vietnam and BIDV Thai Ha branch in particular must inevitably focus on the development of retail banking activities
About practical application: The thesis analyzes and sums up BIDV's retail operations Thai Ha branch has evaluated the successes, shortcomings, constraints and causes of impacts Comments on the potential, trend of retail improvement of BIDV Thai Ha branch to offer solutions with high performance Based on this fact, BIDV Thai Ha branch can be applied in practical activities as well as adding theoretical basis in research activities in the unit
During the study of this topic, the author has some advantages and difficulties encountered are:
Advantages: The author is an experienced banker working for a long time in a large commercial bank and very enthusiastic about the development of banking operations At the same time, the research unit is BIDV - Thai Ha Branch is the leading unit in implementing the strategy and the new banking products are in the period of strong transformation into retail banking Thus, the author has a comprehensive understanding of the retail banking 's activities, as well as about bank's activities in general, from which there are close research and practical difficulties and difficult to find From there, there is a practical solution for BIDV - Thai Ha Branch
Difficulty: In essence, the commercial operation of commercial banks has existed since the commercial banks started operation, however, due to history, the traditional activities of commercial banks in general and BIDV - Thai Ha branch is to provide banking products and services mainly to economic organizations with credit services account for a large proportion Until recently, in line with the trend of the world, Vietnamese banks have been perfecting the organizational restructuring and development of moving towards moving towards retail customers
In addition, the data reported by banks that are still consolidated are still carried out according to the service segment and not really according to the beneficiaries, so collecting data reflects retail performance is quite difficult The detailed and uniform reporting system on retail activities is incomplete and incomplete, so the exploitation of data and comparison is difficult.
Structure of the thesis
Thesis title: " Improving the Retail banking services in Bank for Investment and Development of Vietnam - Thai Ha Branch "
The composition of the thesis: In addition to the introduction and conclusion, the list of references, appendix, thesis consists of 5 chapters:
Chapter 1: Introduction to thesis Chapter 2: Basic issues on improving retail banking service of commercial banks Chapter 3: Research methodology and development of survey instrument
Chapter 4: Situation of improving retail banking service in BIDV – Thai Ha branch Chapter 5: Solutions for improving retail banking service at BIDV – Thai Ha branch
BASIC ISSUES ON IMPROVING RETAIL BANKING SERVICES
Literature review
Regarding the issue of "Improving retail banking services at commercial bank", there are some authors who have access to different business areas and perspectives Some typical researches related to retail banking operations in the recent years such as:
Research on the development of credit operations of Vietnamese commercial banks has a doctoral dissertation by Nguyen Kim Anh (2004) - the thesis presents an overview of credit operations of Commercial banks, then propose some solutions to develop credit business for both corporate customers and individual customers in the market economy;
MA Nguyen Trong Nghia (2015), Opportunities and Challenges for Vietnamese Credit Institutions in the course of International Economic Integration, Journal of Financial and Monetary Markets This research showed that opportunities and challenges for Vietnamese commercial banks when Vietnam joins WTO, the application of modern technology, human resources and experience of modern commercial banks require Vietnamese commercial banks to improve the banking system is and should have a breakthrough in the implementation process
Study on card payment method from Nguyen Danh Luong (2003) - the thesis presented an overview of card and card payment forms, shortcomings of card payment form in Vietnam From there, the solutions and recommendations to develop card payment in Vietnam;
Research on the mobilization and use of foreign currency by Nguyen Manh Tien (2002) - dissertation on deepening the mobilization and use of foreign currency in particular in AGRIBANK, analyzing situation of these activities; thus offers some solutions to complete
The study by Do Huu Hai, Nham Phong Tuan and Pham Van Tuan (2015) showed the factors that helped to develop banking services in Hanoi, Vietnam This study has shown the impact of four groups of factors affecting the improvement of retail banking in Vietnam: scale, price, intangibles, infrastructure Information technology - service channels Specific scales are used to evaluate the diversity of retail banking, the level of information technology applications for retail banking, banking facilities, Transactional The authors point out that convenience, speed and quality of service of retail banking want to be developed banks should focus more on upgrading IT infrastructure news and online trading system In addition to upgrading equipment in the workplace, service and marketing However, this study is only applicable to Vietnamese banks at present but not to specific banks
Research on retail banking service in Nguyen Thi Huong’s master dissertation explored deeply retail banking service of BIDV – So giao dich 1 branch However, this research only focused on assessing the strengths and limitations of products, the general picture of development of retail banking has not been drawn up on the basis of the qualitative and quantitative indicators
While retail banking activities are activities that cover many segments of services that serve the same target group as the individual and the household, previous studies focused largely on each of the service segments such as capital mobilization, use of funds, card services, or marketing in general From 2004 to now, there have been no overview studies on the retail operation of the commercial bank as well as BIDV
Korda and Boris Snoj (2010) studied the quality of retail banking services with customer satisfaction This research has developed Gronroos' (1984) study to show that customer satisfaction in retail banking is only satisfactory in terms of technical quality (what customers receive from retail banking such as safety, etc.) and functional quality (how does retail banking work?)
Research on retail banking has also attracted research into retail banking support tools; which mentions to the Internet and the mobiphone Research by Pham
Long (2010) and research by Carlotta Mariotto and Marianne Verdier (2012) on competition in Internet Banking and Mobile Banking has emphasized that in order to satisfy the needs of customers, banks need paying special attention to the development of Internet banking and mobile banking In this study, the authors also illustrat the role of Internet banking and mobile banking by comparing some banks in Denmark, Sweden and Finland
Therefore, it can be defined that, this research is independent study, and the research topic is not duplicated with the previous published works In this thesis, the author has studied a general overview of retail services of commercial banks that is the history of development, concepts and characteristics, the role of retail activities, retail banking, distribution channels, common risks in retail services of commercial banks; viewpoints on the improvement of retail activity, criteria for assessing the development of retail activity, factors affecting retail services of commercial banks
At the same time, based on the analysis of BIDV's retail banking in Thai Ha branch over the past time as well as considering and inheriting the previous researches, the author has proposed a number of synchronous solutions It is highly practical to develop retail banking - a strategic activity of BIDV Thai Ha branch in the future.
Retail banking activities of commercial banks
2.2.1 The over view of Commercial Bank
In the world, now, there are different points of view about commercial bank, such as:
According to Banking association of US (2016), commercial banks are defined as business firms specializing in providing financial services and operating in the financial services industry
According to French Trade Department (2015), commercial banks are the foundations where the regular occupations receive the public's money in the form of deposits or in other forms, and use that resource for themselves in the operations of discount, credit and finance
According to report of India banking association, commercial banks are banks that receive deposits for loans or grants and investments
In Turkey, commercial banks are understood as a type of limited liability company established for the purpose of receiving deposits and performing foreign exchange operations, bills of exchange, discounts and other Forms of borrowing or credit
In Vietnam commercial banks are the type of banks that can carry out all banking activities and other business activities in accordance with the Law No
47/2010 / QH12 on Credit Institutions by the National Assembly On June 17, 2010, aiming to profit
Thus, it can be said that commercial banks are a special business dealing in currency with regular activities of capital mobilization, lending, discounting, guaranteeing, providing financial services and other related activities
2.2.2 The Concept of Retail Banking Services
The retail market is a completely new view of financial markets There are now many ways to understand retail banking - "retail banking" in a variety of approaches Literally in the supply of normal goods and services, retail is sold directly to the end consumer It is the opposite of wholesale that is sold to intermediaries, to the supplier of the goods However, due to the peculiarities of the banking industry, the term retail can be understood slightly differently
Currently, there are two different perspectives on retail customers According to the World Trade Organization, "retail banking is a typical service of a bank, where individual customers can trade at branches of a bank To make transactions such as savings deposit, checking account, mortgage loan, credit card service, debit card and some other services Thus, in this view, retail customer consists only of individuals and households
In addition, there is also the view that retail customer is not just individuals and households but also small and medium enterprises In his modern Banking career, David Cox said: "retail banking is a major banking service providing banking products directly to businesses, households and individuals and small credits " According to experts from the Asian Institute of Technology, "retail banking is the bank that provides products and services to individuals, small and medium enterprises through the branch network, or customers can directly access the banking products through information and communication electronics "
Thus, we can understand retail banking in a more common ways retail banking is a service covering all aspects of commercial banks such as credit, deposit, card services Servers are individual customers, households, small and medium enterprises, through the branch network or the media, telecommunication electronics
The subjects of retail customer within the scope of the thesis include, among others, individual consumers, households and small and medium enterprises
Obviously, it can be seen that retail banking is completely different from wholesale banking, which provides services to corporations, large corporations and financial institutions The size of a retail banking service transaction is also much smaller than the whole sale banking
2.2.3 Characteristics of retail banking 2.2.3.1 Target customers
According to banking association of US (2015), the subjects of retail banking services are individuals and households This group of clients has a large number of members in society, middle income, diversified in terms of qualifications, business fields, industries and short-term capital requirements
In addition, this is also a group of customers very sensitive to changes in prices, distribution methods and policies of the banks; the object of the bank's least loyal Of the individual clients surveyed by The Economist, 70% of clients left the bank due to product dissatisfaction and quality of service, 13% were due to inconvenience in trade, and 17% are other reasons (Eliot et.al, 1996; Reeves and Bednar, 1996)
2.2.3.2 Scope and number of transactions
The needs of each customer in the retail market are usually small, with a very small value per transaction compared to the whole sale banking services
However, this is a potential market segment for banks because of the large number of customers Especially, small and medium enterprises often occupy high proportion in the economy, even overwhelming in total Businesses (In Vietnam, only registered enterprises are registered, this ratio is over 95%.) The numbers of customers together with the large number of transactions in terms of terms, types of products, help banks have Can disperse risk, creating a stable source of funds for the bank (Earn & Young, 2016)
Derived from the needs of customers, banks have developed and changed incessantly to offer a variety of products and services ranging from traditional services to new and modern services to satisfy their own requirements A wide range of products and services belonging to groups of services receiving deposits, loans, payments, electronic banking, trust investment, guarantee, preserve valuables, purchase and sell foreign currency are constantly developed In developed countries, the number of bank products and services for individual customers reaches thousands in order to serve the diverse needs of customers
The bank's retail operation is heavily dependent on their multi-channel distribution network Nowadays, customers can access bank's products and services through many channels such as branch, transaction office, ATM, Internet, Phone, Kios, POS The multi-channel distribution in retail activities increasingly brings convenience to the KH, while also saving costs for banks and all social security
Information technology (IT) plays an important role in the development of retail products, especially advanced products and services, which is an important premise for centralized storage and processing The bulk of the retail banking service is crowded and dispersed, sensitive to the way the bank distributes it
Therefore, if there is no development of IT, banks cannot access and provide products and services to all customers, especially customers in areas where the bank has no capability to open a brand, or customers wishing to trade outside of office hours
Improve retail banking
2.3.1 Theory of improvement of retail banking
According to Encyclopedia Dictionary, "Improvement or Development is the expansion from small to big, from weak to strong." According to the concept of philosophy, "Development is the concept of movement in the direction of advancement, the new, the progress is born in place of the old, the backward." Thus, improvement is understood to be progressive in all aspects, which is a close integration of the qualitative and quantitative improvement process
In the financial sector, the improvement of retail banking is a qualitative and quantitative change of the retail banking service to best meet the needs of individual clients, households and SMEs on a secure basis The bank's objectives include: increasing profitability in a sustainable manner, increasing the competitiveness of the bank, etc The improvement of retail banking services is not only aimed at increasing current income but also ensuring potential future development for the bank Accordingly, the improvement content of retail banking services is expressed through 2 main criteria including:
Quantitative assessment of quantity such as the number of products and services, distribution channels, retail sales growth rate, etc
Criteria for quality assessment: safety, convenience, utility of retail products, brand value of the bank
2.3.2 The role of retail banking service improvement 2.3.2.1 For banks
The improvement of retail banking will expand the market and its customers, increasing sales and profitability for banks:
One thing is clear that the price of retail products is always higher than wholesale, plus the number of customers is also extremely crowded, this is less affected by the cycle of the economy Therefore, retail banking services provide banks with a significant and stable source of income With many different services, commercial banks can exploit market gaps, including small gaps to increase market share
Through retail, the bank can take advantage of the funds in the payment of customers stored on the payment or deposit account These bank accounts do not pay interest or very low interest rates make the input cost of mobilized capital decreased, increasing profits for banks
Improve retail banking services to help banks disperse and mitigate risk:
Banking business is a special business, and banks often face a variety of risks: credit risk, interest rate risk, operational risk, etc In particular, credit activities contain many risks Therefore, the bank's development of retail banking services, the diversification of bank products will help banks to spread risk, avoid the situation of "put all the eggs in the same basket." When the market fluctuates, profits from different services will complement each other, helping banks stabilize their income In addition, the size of retail transactions is small and the number of transactions is large, so banks are able to diversify the risk by the customer
Improve retail banking services to promote other services:
Through the improvement of the retail banking, the bank builds a wide and diverse customer base that forms the basis for the development of other banking services, extends cross-selling capabilities between individuals and businesses
Businesses with commercial banks, increasing competitiveness, contributing to enhancing the position, prestige and brand of the bank
The large number of customers, diversified needs, and strong competition in the retail sector force banks to improve their level of information technology, management and diversification This is the foundation for the bank to develop sustainably and increase its future adaptability
Nowadays, as the competition in the financial market is increasingly fierce, the demand and demand of society for banking products is increasing, the development of retail banking is a right direction and needed more than ever
Customers are directly benefiting from the improvement of retail banking services The goal of retail banking services is individual customer service, so service is simple, easy to implement and regular It will be most comprehensive when the bank expands its retail network, expanding its product portfolio, and improving service quality The people have more opportunities to access the bank's products, are provided with appropriate financial solutions, cost savings, transaction time, security, increased income from the source Idle money, and enjoy the add-ons
With regard to small and medium enterprises, through the capital and payment services, guarantee , banks help the process of production and business of enterprises are carried out smoothly, smoothly, speed up Produce and circulate goods, improve business efficiency, help enterprises overcome difficulties, increase competitiveness and improve their position in the market
Improving retail banking services attracts more retail customers to open accounts and use bank payment services, which helps to speed up the process of currency circulation, generating foreign exchange earnings for the nation From overseas remittances, payment is limited by cash, contributing to reducing social costs through cost savings (printing, tallying, preservation, transportation ) and time Both bank and customer
Retail banking is diversified services help attract idle capital in the population for investment and economic development Especially for developing countries, the promotion of the internal resources of the economy through concentrating all potential small capital sources in the population into a large source of capital is of great significance
In addition, limiting payment in cash helps the State manage the transactions of the whole economy, contribute to anti-corruption and tax evasion The State Bank also has grounds for planning and implementation of national monetary policy
Together with the use of modern IT, the national financial system can integrate more closely with the international financial system, increase opportunities for economic co-operation and improve the level of people Location for residents
2.3.3 Criteria for assessing retail banking improvement
Currently, there are many organizations, agencies, especially magazines around the world involved in evaluating the retail operation of banks under different criteria system
The Asian Banker is the world's leading magazine providing strategic information on the financial services industry This magazine evaluates the retail performance of banks based on 10 criteria: brand value, service product abundance, retail strategy feasibility, distribution system efficiencies, Operational processes and
IT, retail market penetration, risk management capacity, income generating capacity, human resources and development potential
RESEARCH METHODOLOGY AND IMPROVEMENT OF
Research methodology
3.1.1 Type of research and data analysis methodology
In research, researchers based on the research objectives to choose the combination between quantitative and qualitative research to carry out (Saundlers, Lewis and Thornhill 2012; Carter 2010)
According to Hair et al (1998), qualitative research is the way to explore how human beings understand, experience, and produce the social world In qualitative research, words are always emphasized than quantification in collecting data and analysing data (Saundlers, 2012) In the qualitative research, the study will have to base on the analysis and combination with antecedent research about issue research; the variables will be assessed through the positivism paradigm It means that, this research first was to develop a theoretical framework for research to determine the nature of retail banking and how retail banking can be developed In addition, this study analyzes the characteristics of retail banking by using relevant data, reports, and graphs In addition, the results obtained from previous studies, the key factors related to retail banking services are identified and selected to match the characteristics of Vietnamese retail banking
According to Hair et al (1998), quantitative research is defined as
‘Explaining phenomena by collecting numerical data that are analysed using mathematically based methods’ In this dissertation, the quantitative research is very useful to carry out empirical investigation of factors which effect on retail banking
It helps to analyze the weight of each factor in a sample and generalizes the results
Specifically, based on data collected from the consumer survey, BIDV Retailer's staff in Thai Ha branch through a number of detailed questions Following statistical data is processed by SPSS software version 21.0
Quantitative research is described in detail as follows:
Figure 3.1 The quantitative research process (Author, 2017)
Quantitative studies provide a conclusion on the impact of each factor on the improvement of retail banking services of BIDV Thai Ha
In this study, the author uses a combination of two data sources as secondary data and primary data
Secondary data can be viewed as a valuable source for answering research questions (Saunders, Lewis and Thornhill, 2012) In general, researchers can save money, time in collecting secondary data as this is a available data source, authors can inherit (Hair et al, 1998) There are three main sources for collecting secondary
Fingding and recognizing factores, which effect on retail banking service
Solutions data such as documents, surveys, other sources (Saundlers, Lewis and Thornhill,
2012) Each research goal will require different sources of data (Hair et al, 1998)
- Journal article associated with previous research on retail banking in Vietnam
- Documents or reports related to the banking industry, decisions of the ministries related to the improvement of retail services in the system of commercial banks in Vietnam
- Relevant information is collected from various sources such as the Ministry of Finance, the State Bank of Vietnam, the General Statistics Office of Vietnam, BBC News, VOV (Voice of Vietnam), etc
Secondary data plays a role in qualitative research and supports primary research
According to Saundlers, Lewis and Thornhill (2012), primary data is "data that has been observed, experienced or documented by the most recent valid facts."
It means that primary data can provide much information about any aspect of life and the surrounding environment In the study, with more data collection means higher reliability
In this study, primary data was collected through survey questionnaires and interview questionnaires for retail banking users and managers and staff in the banking services sector of BIDV - Thai Ha branch These data will be used for subsequent quantitative studies
The research focused on the retail banking services of BIDV branch in
Therefore, respondents to the survey were individuals who consumed the service as well as managers and employees who were directly or indirectly involved in the service
The size of the sample depends on the method of data analysis According to Hatcher (1994), the sample size in statistics should be at least 5 times the total number of variables, or may be at least 100 respondents Thus, the preliminary sample of this study is 123
In this study, the author uses an online questionnaire designed using the Google Docs application and sent to individuals via email This method can cover the whole geographic area surveyed at a relatively low cost The results are received immediately after submitting by respondents and then automatically saved as excel files
The research model provides the process of the research process and it will lead the study to the right way to complete the study
Exploring situation of retail banking service of BIDV – Thai Ha branch
Define content of researching retail banking service of BIDV – Thai Ha branch
Literature framework is appropriate with developing research sample
Questionnaire, Descriptive statistics… by using SPSS 20.0
Solutions Solutions to develop retail banking service for BIDV – Thai Ha brand
Develop questionnaire
Its main objective is to collect and examine the views and attitudes of individuals who are asked about the status of retail banking services of BIDV Thai
Ha branch Each question in this section presents a problem related to the content of retail banking and is measured by seven points on a Likert scale from 1 (not agreeing) to 7 (very agreeable) This study authors use the score likert point 7 instead of point 5 as the subject by the point of view The first is that, using the Likert scale of 7, the comparison between the respondents is more accurate Second, it provides a choice in choosing an impartial answer for the respondent With questions asked, respondents were asked to indicate their level of agreement or disagreement in each question
Other sections of the questionnaire include information on respondents, stakeholder information, etc Questions are designed in the form of multiple choice or text format questions In addition, the questionnaires also included the introduction of the objectives and benefits of the studies to make the respondents willing to participate in the survey Online questions are designed using the Google Docs app
Based on research of Do Huu Hai, Nham Phong Tuan, Pham Van Tuan
(2014), The questionnaire focused on a number of key issues:
- Assess the level of diversification of retail banking services (savings products, personal loans, e-banking services, money transfer, payment ) of BIDV – Thai Ha branch?
- BIDV branch in Thai Ha offers a wide range of services related to life, entertainment, business and study?
- BIDV branch in Thai Ha offers a wide range of services to customers?
- BIDV – Thai Ha branch continuously researches and creates new services?
- Does BIDV – Thai Ha branch apply information technology in its professional activities?
- Is the deposit interest rate of BIDV - Thai Ha branch always higher than other banks in the same group?
- The level of satisfaction of customers' demand for loans (in terms of interest rate, partly satisfying or satisfying most of the loan demand)
- Is BIDV - Thai Ha branch providing the cheapest service compared to other commercial banks?
- BIDV - Thai Ha branch changed the price in certain cases?
- Does BIDV - Thai Ha branch receive regular payments? (Card fee, IBMB, account management fee, BSMS)
- Does BIDV - Thai Ha branch collect money on the basis of usage? (E-banking service fee)
Assessment of customers' satisfaction on retail banking services of BIDV Thai Ha branch through a number of specific criteria: service facilities, dossiers of procedures, working time, e-banking products, style and service attitude of employees, marketing activities, customer service…
- Does BIDV - Thai Ha branch have good facilities?
- Does BIDV - Thai Ha branch have professional staff (in uniform and polite)?
- The brochures and bank documents as well as publications are very hidden?
- The guidance, form and procedure of BIDV Thai Ha branch always listed full?
- The transaction place of BIDV - Thai Ha branch is always clean, comfortable seats in the bank waiting room satisfied customers?
- Is BIDV - Thai Ha branch responsible for what they introduce and commit?
- Retail banking activities of BIDV - Thai Ha branch’s staffs are highly appreciated
- Does BIDV - Thai Ha branch always carry out its services effectively?
- BIDV - Thai Ha branch is really interested in customers?
- BIDV - Thai Ha branch accelerates the application of digital technology in transactions (Internet and mobile services)?
- BIDV - Thai Ha branch is in charge of many ATMs?
- Customers of BIDV - Thai Ha branch prefer to trade at banks and branches?
- Customers of BIDV - Thai Ha branch prefer transaction at ATM?
- Customers of BIDV - Thai Ha branch prefer to trade on Internet and mobile phone?
SITUATION OF IMPROVING RETAIL BANKING SERVICE IN
Overview of business activities of BIDV Thai Ha branch
4.1.1 The process of formation and development
Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) is Vietnam's third largest commercial bank (after Agribank and Vietinbank) based on total assets and operating network BIDV is a state-owned enterprise of a special type, organized under the model of state corporation (Group)
The Bank for Investment and Development of Vietnam (Thai Ha) was established on May 23, 2015 under Decision No 584 of the General Director of the Bank for Investment and Development of Vietnam, based on the merger of MHB Bank into BIDV according to the policy of the government Accordingly, from May
23, 2015, MHB branch of Ha Tay branch was officially merged into BIDV named BIDV Ha Dong branch, later changed to BIDV Thai Ha branch
Operational model is divided into four functional blocks:
- Customer Relationship: The main function focuses on the maintenance and development of corporate and individual clients
- Risk management: Management of activities, analysis, evaluation and solutions to prevent and limit risks
- Business Unit: Directly provide banking services to customers
Figure 4.1 Organization structure framework of BIDV – Thai Ha branch
4.1.3 Evaluating results of business activities of BIDV, Thai Ha branch
In recent times, the economic situation in Vietnam in general and the financial market in Vietnam in particular has been complicated, such as the stock market, real estate decline, no sign Especially, the real estate market "freezes" for a long time with large inventory; Production and business still face many difficulties, the number of enterprises decreased in size, stopped operation, dissolved quite large; many businesses need business capital but can not access bank loans; some banks have difficulties in liquidity; The bad debt of the banking sector has risen to around 10% according to the SBV's public announcement
In spite of these changes, BIDV's activities in the past have not been avoided
Despite this, BIDV is still gaining positive results in the major areas of operation are capital mobilization, lending, investment, trade finance and service activities
In recent years, the business of Thai Ha Branch has been sticking to the target set by BIDV, Head Office with the motto Quality - efficiency - safety - development The branch has concentrated on implementing many measures and practical solutions, close to the actual business activities of the branch in the province, results of operation in two years from 2015 to 2016 as follows:
- Total assets in 2016 reached VND 3,619 billion, an increase of 164% compared to 2015
- Capital mobilization reached VND3,452 billion, up 61% over 2015
- Credit outstanding reached 2,112 billion, up 85% in 2015 Bad debt accounted for 0.93% of total outstanding loans
- Net service income was VND15 billion, up 426% y / y
- Difference in revenue and expenditure reached 54.6 billion, up 228% compared with 2015
- Pre-tax profit is estimated at VND46.5 billion, up VND40.2 billion compared to 2015 In which DPRR extracts VND8.1 billion The results of each activity assessment are described in full in Table 4.1
Table 4.1 Financial Report of BIDV - Thai Ha Branch
3 Capital raising at the end of period
5 Credit outstanding debt of securities 593 1,143 2,100 2,112 101.2% 969 85%
7 Net service income does not 1.03 3.52 13 15.1 121.84% 11.55 328%
+/- % include derivative foreign currency business
1 Long and medium term credit outstanding loans 153 446 888.6 443
Guarantee credit outstanding without overdraft, valuable papers 229 253 390 451.0 144.5% 198.0 78%
7 Capital mobilization at the end of period 535 2139 3,452 1,313
7.1 Capital mobilization from economic organizations 138 638 937 299
7.3 Capital mobilization from financial institutions 265 839 574
11 Debt collection from in-balance accounting (principal, interest) 0.452 5 2.55 51%
12 Numbers of employees at the end of period 89 83 78.0 -5.0
The status of retail banking services of BIDV - Thai Ha Branch
In this study, the author distributed 150 questionnaires and collected 123 votes The results were processed by SPSS software version 21.0 and the results will be combined with secondary data to show the status of retail banking services of BIDV Bank, Thai Ha branch
Statistical results described in SPSS allow authors to review the relevance of the questionnaires collected for processing
Various service package relate to life, business 123 1 7 3.69 1.362
Various service package for customer 123 1 7 3.61 1.303
Bank always introduce new services 123 1 7 3.78 1.258 Apply information technology to specialize activities 123 1 7 3.79 1.427
Supply service appropriate price in comparison to competitors 123 1 7 3.67 1.334
Changing price in some fix case 123 1 6 3.69 1.181
Collection base on using time 123 1 7 3.98 1.437
Apply digital technology in transaction 123 1 6 3.57 1.319
Customers enjoy to carry out transaction at ATM 123 1 7 3.80 1.310
Customers enjoy to carry out transaction on Internet 123 1 6 3.67 1.204
Customers enjoy to carry out transaction at cashier post 123 1 6 3.51 1.210
Based on the results of statistical descriptors, the number of votes received is
123 and the number of votes is appropriate for the full answer Standard deviation between variables allows the author to estimate the variability of the variables in the study that is consistent with the low variation among the variables This is appropriate for the author to undertake the analysis in the next steps in this study
4.2.1 The status of retail banking services and retail banking services turnover at BIDV Thai Ha branch
In general, the retail banking packages at BIDV Thai Ha branch are quite diversified, however, there is no difference in comparison with other banks in the same group
Figure 4.2 Service package of BIDV Thai Ha
In addition to the basic retail business, the bank also opens many packages associated with entertainment activities, business as well as learning of customers
The fluctuations of interest rates in the world in general and in Vietnam in particular push the commercial banks to participate in the interest rate race and compete vigorously in attracting idle funds from the population to meet the demand growing capital of the economy BIDV is no exception, the bank has diversified its term deposits and issued financial instruments such as promissory notes, bonds and certificates of deposits (VND and foreign currencies)
Term: Customers have the conditions to choose the term deposit according to their needs such as demand deposits, term deposits, term deposits 1,2,3,6,9,12 months,
How to send and withdraw: Customers can send in the form of accumulation, sending a place to withdraw many places, deposited with interest rates ladder, can send in VND, or foreign currency, types of details Promotional prizes
Interest payment method: Customers can receive interest monthly, quarterly, interest-bearing interest, interest before, and to increase the attractiveness, depending on the specific conditions banks still pay interest on deposits to guests If they withdraw money before maturity or import interest into capital when they are due but customers have not withdrawn capital for term deposit
Figure 4.3 BIDV's capital mobilization situation, Thai Ha branch from 2015 to 2016
(Source: Business result report of Thai Ha branch)
By December 31,2016, capital mobilization reached 3,452 billion dong, increasing 1,313 billion compared to 2015, reaching 129.9% of the plan in 2016 and rising 6.4 times compared to the time of merger (May 22, 2015) Average capital mobilization was 2,866 billion dong corresponding to the growth rate of 61%
Residential capital mobilization reached 1,685 billion dong, accounting for 49% of total mobilized capital source and rising 446 billion dong compared to 2015, reaching 124% of the plan in 2016
The depositors are the key factor that determines the stability of term capital, stability, interest rate sensitivity, ability to use the services attached At BIDV Thai Ha branch, individual customers accounted for 48.8%; customers are economic organizations account for 37.1%; the remaining 14.1% are institutional financial customers
Figure 4.4 Situation of BIDV's term deposit mobilization, Thai Ha branch from 2015 to 2016 ( Source: BIDV's business results from 2015 to 2016, Thai Ha branch) Structure of capital mobilization by term
The proportion of non-term low-interest rate deposits was low, only accounting for 11.5% of Total mobilized capital source and reducing 191 billion dong compared to 2015 Short-term capital mobilization still accounted for large proportion, 66%, increasing 1.444 billion compared to 2015
Structure of capital mobilization by clients
+ Residential capital mobilization reached 1,685 billion dong, residential non-term deposit was 163 billion dong, reducing 203 billion dong compared to 2015 including Client with unsustainable deposit balances
+ Deposits from economic organizations reached 928 billion dong, Deposits from Financial Institutions reached 839 billion dong
Credit profile of BIDV, Thai Ha branch from the formation to 2016 as follows:
+ Period: By December 31, 2016, short-term outstanding loan is 1,223
Billion VND, accounting for 58%, medium-long term outstanding loan is 889 billion VND, accounting for 42% of the total outstanding loan
+ Clients: outstanding loan from enterprise lending is 1,696 billion VND, outstanding loan from individuals is 416 Billion VND (accounting for 78%:22%)
+ Type of currency: outstanding loan in VND is 2,072 billion VND, accounting for 98.1% of the total outstanding loan of the branch
Figure 4.6 Implementation Status Of Retail Outstanding Loan over the times
Source: Business result of BIDV Thai Ha branch
By December 31, 2016, retail credit outstanding loans reached VND 509 billion (including IP), accounting for 23.9% of total outstanding loans, an increase
Organization Individual worth 451 billion, reaching 144% of the plan in 2016 Retail loans outstanding reached an average of 383 billion 94% of the plan 2016
Growth is accompanied by credit risk control Credit quality of the Branch is still under control