(TIỂU LUẬN) GROUP ASSIGNMENT course title commercial banking TOPIC customer centricity of agribank

Banking Academy Advanced Program GROUP ASSIGNMENT Course Title: Commercial Banking TOPIC: Customer Centricity of Agribank Instructor: Prepared By: Ha Noi, tháng 12 năm 2021 TABLE OF CONTENT I INTRODUCE ABOUT AGRIBANK Services and products Distribution channel Swot model of Agribank 3.1 Strengths 3.2 Weaknesses 3.3 Opportunities 3.4 Threats Bank performance II The Nature of Customer-centricity (thế giới/ VN nói chung) Customer centricity The importance of customer-centricity with Agribank III Customer centricity in Agribank What Agribank have done 1.1 Investment and development policy "Tam Nong" 1.2 Bringing banking services to everywhere 1.3 Agribank supports customers affected by Covid-19 1.3.1 Reduce "huge" interest to support customers 1.3.2 Create recovery leverage for all economic sectors Outstanding problems 2.1 The weaknesses of Customer Relationship Management (CRM) system 2.2 Inflexible E-Mobile Banking 2.3 Relatively high fees 2.4 The attitude of staffs Solutions and future development directions 3.1 Promoting abilities 3.2 Improving weaknesses IV References CONSUMER CENTRICITY OF AGRIBANK I INTRODUCE ABOUT AGRIBANK Agribank was established on March 26, 1988 under Decree No 53/HDBT of the Chairman of the Council of Ministers with the name of Vietnam Agricultural Development Bank After that, the Bank changed its name to Agricultural Bank of Vietnam according to Decision No 400/CT dated 14/11/1990 of the Prime Minister According to Decision No 280/QD-NH5 dated November 15, 1996, the Bank changed its name again to the Bank for Agriculture and Rural Development of Vietnam as it is today On January 30, 2011, the State Bank of Vietnam (the State Bank) issued Decision No 214/QD-Ngan , approving the transformation of ownership form of the Bank for Agriculture and Development Rural Vietnam from State-owned enterprises to one-member limited liability companies owned by the State Agribank is the bank in the BIG banks in Vietnam This bank is mainly invested in agricultural, farmer and rural development Services and products Up to now, Agribank has provided more than 200 products and services to corporate customers, household customers, and individuals, and to credit institutions and financial institutions in the market, capital market, open market, interbank market Products and services are divided into groups, including: Capital mobilization products; Group of domestic payment services; Card service group; Group of international payment services; Service Group Forex Trading; Remittance Service Team; E-Banking service group E-Banking; Treasury and money management services group; Agency entrustment service group; Group of associated products and services;… Besides, service fee revenue continued to have good results; safety ratios are guaranteed according to regulations of the State Bank Agribank continues to affirm the steadfastness of a brand associated with the mission of agriculture, farmers and rural areas, always being a pioneer, the main source of credit, convenient products and services for the economy In terms of network operation: Agribank's network system is very large, this is an advantage when providing banking products and services, especially payment services, and is a necessary basis to increase convenience and meet the increasing needs of customers Currently, Agribank has relationships with nearly 740 banks and bank branches in more than 86 countries and territories with nearly 2,300 branches and transaction offices, the largest automated banking network (more than 3,000 ATMs, 80 CDM and over 24,500 POS machines serving over 12.6 million cards) About the number of products and services provided in the market: Currently, Agribank has more than 200 products and services, contributing to diversifying products, increasing income, and meeting the needs of diverse customers The bank also developed strongly in insurance - banking products Products and services for individual and institutional customers are divided into 10 groups: Capital mobilization, credit, domestic payment, international payment, Treasury, investment, card, E-Banking, banking services fund and money management, meeting the best needs of customers In addition, Agribank has received support from the Government and international organizations such as the French Development Agency (AFD), the Asian Development Bank (ADB) to sponsor many agroforestry development projects This is a favorable condition, providing many products and services to each object with many incentives, ensuring the benefits between the parties About the brand and quality of service: The care and support for customers is done methodically and professionally by Agribank In particular, in 2019, Agribank improved the quality of products and services, added utility features, implemented 24/7 interbanking, online deposit, new payment services on E-Banking, etc partners, and met customer needs according to market trends Distribution channel In addition to developing products and services, Agribank focuses on developing distribution channels in line with the 4.0 trend Agribank's distribution channels of products and services are diversified including: Traditional product and service distribution channels (2,233 branches and transaction offices, including: 158 grade and branches; 784 grade branches and 1290 transaction offices; companies) affiliated; 03 representative offices and 01 foreign branch Mobile transaction point); Distribution channel via ATM and EDC/POS (2,626 ATM and 19,015 EDC/POS); Distribution channel via Mobile Banking; Distribution channel via Internet Banking; Distribution channel via payment connection with customers (CMS); Distribution channel with correspondent banks (Agribank currently maintains agency relationships with 825 banks in 86 countries and territories) In order to increase the convenience of products and services, Agribank offers a mobile transaction point by specialized car that provides customers with convenient services such as: capital mobilization and lending, opening payment accounts and registration Sign to use the services on a payment account; domestic debit card; domestic payment services; bill payment, collection and payment on behalf of; payment of remittances, sale of ABIC insurance; E-Banking services and other convenient banking services of Agribank As of June 30, 2021, Agribank has deployed 68 cars in 66 branches, 454 communes, with 1,622,201 customers, 17,065 transactions Currently, Agribank has issued more than 14 million active cards and has always maintained its position of the Top commercial banks in the market with more than 3,000 ATM/CDM, more than 24,000 POS installed and distributed across the provinces, remote areas of the country Swot model of Agribank 3.1 Strengths Agribank's biggest strength is the commercial bank with the largest equity This bank is supported by the Government and development assistance funds of international organizations such as ODA, AFD, and ADB to finance projects on agricultural and rural development, industrialization of agriculture, forestry and fishery This makes Agribank a particularly important position in the country's economic development; play a leading role in the rural financial market However, Agribank has absolute strength in the distribution channel network With a wide network, Agribank has its own advantages such as: stable market share, abundant customers In addition, Agribank has modern information technology infrastructure, multi-function business, multi-industry, multi-field, a large and experienced staff 3.2 Weaknesses The first weakness of Agribank is not meeting the minimum capital adequacy ratio; financial sustainability is not high Financial capacity is still weak by international standards Second, the branch network system in urban areas has not been arranged and planned in a secure and effective manner Infrastructure is not synchronized leading to difficulties for the process of investment and perfecting high technology Third, products and services are not diversified, service quality has not been paid due attention, and has not met the actual needs of consumers Fourth, the organizational model at the Head Office is not streamlined and effective; lack of welltrained staff to meet the requirements of the new era Finally, Agribank is heavily influenced by the Government, operating completely not for profit, so its competitive advantage has not been fully exploited 3.3 Opportunities Nowadays, Vietnam's deeper and deeper integration into the world economy is a great opportunity for banks, especially Agribank The rapid development of scientific progress will give Agribank the opportunity to raise and improve the level of science and technology In addition, Vietnam is an economy that always achieves high growth, but a stable and safe environment creates favorable conditions for the development of the bank But besides that, the banking industry is also under a lot of pressure to maintain its role as an important capital conduit for the whole economy 3.4 Threats Vietnam's economy is integrating deeper and wider into the international economy, both an opportunity and a challenge for the banking industry in general and Agribank in particular Challenges when Vietnam relaxes operating conditions for foreign banks in line with Vietnam's implementation of WTO commitments, creating competition between domestic and foreign banks Not only that, among domestic banks, there is also competition between state banks and joint stock banks These banks are increasingly dynamic, flexible and responsive However, products that replace banking services are increasingly being perfected and become rivals and heavyweights Even within the bank itself, there are many difficulties when implementing digital transformation in terms of synchronization and standardization of technical infrastructure Besides, the COVID-19 pandemic is a thermometer that measures the "health" of the economy and the bank itself Bank performance The Vietnam Bank for Agriculture and Rural Development (Agribank) has just released its separate financial statements for mid-2021 Despite operating in the context of difficulties due to the impact of covid-19, with many synchronous and effective solutions, Agribank has fulfilled its political mission and the role of Vietnam's leading commercial bank This bank is mainly invested in agricultural, farmer and rural development, with the proportion of "Tam nong" investment accounting for 70% of the total outstanding economy, accounting for the largest proportion of agricultural and rural investment credit market share in Vietnam Accordingly, at the end of the first months of the year, the bank's pre-tax profit reached VND 9,464 billion, profit after tax was VND 7,572 billion, up 40% over the same period, ranking third in the Big4 group after Vietcombank and VietinBank The main reason for the positive increase in bank profits is the reduction of operating costs, increased debt recovery to handle risks, and all business segments of the bank are profitable Specifically, accumulated in the first months of the year, Agribank continues to be the leading bank in terms of total operating income with VND33,581 billion, an increase of nearly 32% over the same period In particular, the main contribution is net interest income with VND 25,973 billion, an increase of 29% Interest income increased by 3.9% while interest expense decreased by nearly 11% compared to the same period in 2020, helping the bank's net interest income increase sharply As of June 30, 2021, Agribank's total assets reached more than VND1.6 million, up 3.4% compared to the beginning of the year and up 10.5% compared to the same period last year In particular, customer lending reached VND 1,232,051 billion, a slight increase of 1.6% compared to the beginning of the year and continued to lead the market in credit market share Customer mobilization reached VND 1,467,071 billion, an increase of 4.2% In the context of Covid-19, Agribank has promptly implemented many solutions to support and solve difficulties for customers affected by the pandemic under the direction of the Government and the SBV, such as restructuring the repayment term, interest exemption, fees, and new loans In particular, restructuring, exemption of interest and fees for 12,500 customers with outstanding debts of VND 30,109 billion, new loans of more than VND 203,000 billion to more than 50,000 customers Agribank also implemented many credit programs with preferential interest rates, including: Doubling the limit of the customer support program affected by the epidemic with the scale of VND 100,000 billion, the interest rate, support fee up to 2.5% per year; preferential loans for small and mediumsized enterprises of VND 30,000 billion, supporting a maximum fee of 2%; preferential loans for import-export customers of VND 15,000 billion and US$300 million; large-scale customer loans of VND 15,000 billion; consumer loans of VND 20,000 billion Index ROE ROA NIM C/I Equity multiplier Agribank's ROE and ROA indexes have declined compared to the end of 2020 Agribank's ROE decreased mainly from declining ROA Although both the difference between deposit and interest rates (NIM) increased and the bank's ability to control costs (C/I) flourished, the ROA decreased sharply (nearly 30%) leading to ROE also decreased At that time, the government asked banks to reduce interest rates to support citizens during the COVID-19 pandemic Agribank had also offered its own support packages to the people, so ROA reduction is inevitable Thus, although Agribank's ROE decreased, it did not really affect the profitability of this bank In the near future, having overcome the COVID 19 pandemic, Agribank will likely grow strongly and make more profit Despite the decline, Agribank's business performance indicators are still very positive compared to the Big in particular and the banking industry in general Agribank's return on equity (ROE), surpassing that of Vietinbank (9.75%), reached the highest with 10.17% in the Big At the same time, the profit margin on total assets (ROA) reached 0.47% ranked second, only after 0.6% of Vietinbank Non performing loans (NPL) are a very important indicator in evaluating the performance of a bank According to statistics, the average NPL ratio in the financial statements of Vietnamese banks is at 1.96% in 2020 In the second half of 2021, Agribank's bad debts accounted for only 0.82% of total outstanding loans, the lowest in the Big (BIDV: 1.39%, Vietcombank: 0.91% and Vietinbank: 1.38%) and decreased to nearly 0.9% compared to the end of 2020 The above indicators show that Agribank is operating very well, the credit quality has improved significantly Although the business results in the first months of the year are positive, it is likely that Agribank's profit for the whole year is unlikely to increase sharply Covid 19 is taking place very complicatedly, a series of provinces and cities must be separated in the third quarter of 2021, causing credit to slow down, bad debts tend to increase, the recovery of bad debts through civil proceedings and handling collateral will also be very difficult II The Nature of Customer-centricity (thế giới/ VN nói chung) value chain linkage in agricultural production with organizations and individuals Direct agricultural production is considered by Agribank, where the lender is lending, for an unsecured loan up to 80% of the value of the project, the production and business plan under the association model For enterprises, cooperatives and unions of cooperatives borrowing according to the agricultural production model applying high technology Customers with production and business projects and plans in hi-tech agricultural zones or hi-tech agricultural zones are considered by Agribank for loans without collateral up to 70% the value of the project or plan Hi-tech agricultural enterprises are considered by Agribank for unsecured loans, up to 80% of the value of projects and production and business plans applying high technology in production Agriculture Enterprises that have not been granted the certificate of hi-tech agricultural enterprises but have projects and plans for production and business with high technology application in agriculture that are not located in hi-tech agricultural zones or agricultural areas Hightech applications are considered unsecured loans by Agribank where lenders are up to 70% of the value of the project or plan 1.2 Distributing banking services to everywhere Determined to work with the banking industry to realize the National Financial Inclusion Strategy to 2025, with a vision to 2030, and to promote electronic payments in the public service sector, agribank focuses on improving service accessibility Banking and financial services to people through constant innovation in providing convenient banking products and services and distribution channels Up to now, Agribank is the leading bank in modernizing rural payment channels by investing in nearly 2,530 newly installed POS devices, developing over 200 banking utility products and services In order to promote the Government's policy of non-cash payment, Agribank has implemented a scheme to develop card services in the agricultural and rural markets since September 2019 With the advantage of preferential support policies, simple and flexible procedures, up to now, the overdraft limit has been over VND 1,756 billion with 266,853 cards Since 2017, with the approval of the State Bank, Agribank has deployed mobile transaction points with specialized cars to extend credit and provide banking services to production households and individuals in the area In rural and remote areas, creating favorable conditions for households and individuals in the process of borrowing capital, contributing to the development of commodity production, repelling black credit, eradicating hunger and reducing poverty, and raising incomes income and people's lives Mobile transaction points by specialized cars help people in remote areas to access banking services, reducing costs and travel time Up to now, Agribank's mobile transaction point with specialized cars has performed more than 15,000 transaction sessions, served more than 1.4 million customers in 454 communes across the country, disbursed 5,679 billion VND, collected debt of 6,208 billion VND, mobilized and saved 3,416 billion VND and provided other utility products and services Sticking to rural areas, understanding the hardships and needs of the people, the Overdraft Card Scheme as well as the initiative of Mobile Transaction Points by specialized cars of Agribank have really brought banking services goods to every family Agribank's non-cash payment activities have contributed to changing people's awareness and habits, especially people in rural areas, in payment activities, improving their knowledge and skills in using payment methods modern payment products and services, minimizing risks in payment according to the Government's policy on the National Comprehensive Financial Strategy In public sector payments, Agribank is one of the first banks to coordinate collection with Tax, Customs and State Treasury agencies, covering communes and districts across the country 1.3 Agribank supports customers affected by Covid-19 Agribank took the lead in reducing interest rates and reducing service fees for customers affected by the Covid-19 epidemic According to the report of the Credit Department for Economic Sectors, the State Bank of Vietnam, the total amount of reduced interest accumulated from July 15, 2021 to September 30, 2021 of four banks is about VND 10178 billion The results of each specific bank are as follows: Banking Agribank Vietcomban k BIDV Vietinbank Commitment to always be ready to provide capital to support customers to overcome difficulties due to the impact of the Covid-19 pandemic, maintain and continue effective production and business during the period when the economy is trying to recover , in the first 10 months of 2021, Agribank with a total reduced interest for customers of VND 4,996 billion, with a total value of debt with interest rate reduction of nearly VND 1.3 million billion for nearly 3.2 million customers 1.3.1 Reduce "huge" interest to support customers Agribank and commercial banks in the Big4 group continue to commit to a separate support package of VND 4,000 billion to reduce interest rates and reduce 100% of banking service fees during the isolation period for customers in localities that are implementing social distancing measures social isolation according to Directive 16/CT-TTg of the Prime Minister Implementing Circular 01 and the Circulars on amendments and supplements of the State Bank, with outstanding loans affected by Covid-19 at Agribank as of October 31, 2021 at VND261,439 billion, Agribank has restructured debt, interest and fee exemption and reduction with a total amount of VND 48,118 billion, of which: Debt restructuring (principal + interest) is VND 45,397 billion with 15,920 customers; Exemption and reduction of interest is 2,721 billion VND with 539 customers, the amount of interest is exempted or reduced by 31 billion VND 1.3.2 Create recovery leverage for all economic sectors Agribank proactively, drastically and effectively implemented solutions to support customers affected by the Covid-19 epidemic of all economic sectors For the preferential credit program of VND 100,000 billion exclusively for customers affected by the Covid-19 epidemic, as of October 31, 2021, the disbursement of the program has reached nearly VND 120,000 billion, the interest reduced by about 600 billion VND Along with that, the program continues to reduce lending interest rates for customers due to the Covid-19 pandemic, applied to loans from 7/2021 to 12/2021 As of October 31, 2021, the total loan balance with interest rate reduction is more than 1.1 million billion VND, Agribank has supported 3.1 million customers, with the reduced interest amount of 4,760 billion VND Agribank has disbursed more than 105 billion VND with 409 customers Agribank also made new loans to customers affected by the Covid-19 epidemic with sales of 383,045 billion VND, the remaining balance was 145,480 billion VND with 250,664 customers In addition, Agribank is still actively implementing many credit packages with preferential interest rates with a total value of up to 270,000 billion VND and 150 million USD, including: Preferential credit program for customers FDI with scale of 5,000 billion VND and 150 million USD, accumulated loan sales so far reached 3,045 billion VND; Large customer preferential credit program with a scale of VND 35,000 billion, up to now, accumulated loan sales have reached VND 23 billion (Short-term) and VND 95 billion (Mid-term and long-term); Preferential credit program for importexport customers with a scale of VND 15,000 billion and USD 30 million, accumulated loan sales reached VND 3,339 billion and USD 185 million; preferential loan program for small and medium-sized enterprises with a scale of VND 30,000 billion so far, accumulated loan sales have reached VND 582 billion with 97 customers; Consumer loan program with preferential interest rates for individual customers in urban areas with a scale of VND 20,000 billion, accumulated loan sales of VND 1,351 billion with 1,763 customers, Outstanding problems Customer-centricity is an inevitable trend for all banks because customer- centricity is a way of banking based on trust and fairness that uses the knowledge of customers to meet their needs and achieve sustainable, valuable, long-term relationships To put customers at the center, banks need to understand what customers want, what customers need, and what factors customers care about when using and choosing a bank's services The customer-centricity trends of banks around the world are mainly focused on major issues: marketing and communication, sales and service, products and pricing, and the customer experience The above trend comes from research, demand survey and customer analysis For example, a popular survey of Canadian customers found the seven most important factors that led customers to choose a new bank: Ads and marketing, Image, sales approach, channels, product offerings, pricing and customer service As a state-owned bank and the largest bank in Vietnam, Agribank has done a great job in building Customer Benefit Packages; marketing and promoting the bank's image However, up to now, there are still some issues related to price and fees of services; impression of banking and staff; customer experiences Without mentioning the reasons why customers decide to choose a new bank, the IT Landscape of the bank is such an indirect factor affecting customers, and this is also a limitation that Agribank has not done 2.1 The weaknesses of Customer Relationship Management (CRM) system Customer Relationship Management is the work of approaching and communicating with customers, managing customer information, thereby serving customers better and establishing sustainable relationships with them In other words, based on data and information obtained from customers, the store will devise a reasonable and effective customer care strategy CRM not only plays an important role in the business, but also contributes to helping the bank have a stronger position in the customer's mind This is an activity that brings a lot of practical benefits to the bank Currently, Agribank's technology resources are not really rich, equipment and transmission lines often occur errors Limitations in CRM interface design lead to difficulties for first-time users Appeared in the world since the 1970s, but in the early 2000s, the application of CRM solutions really started in Vietnam Due to the difference in accessing time and technology, experience in building a CRM implementation process is poor, encountering many problems in installation and operation The first issue is changing the traditional work culture Not only does an individual have to change their work habits, but the bank also has to change the way it operates As people get used to the traditional way of working, switching to a new one is a challenge that not everyone can quickly adapt to The second problem is the high cost Currently, foreign CRM systems typically have prices ranging from a few hundred to several thousand dollars per month, the more features, the higher the price This is not a low level, even large banks like Agribank need to think carefully before deciding to cooperate The final problem is difficult support Software from abroad will face certain difficulties if the bank need help or repair, due to differences in time zones, languages and long-distance so in most cases the banks will have to find their own documentation, research and mastery practice before they start doing it 2.2 Inflexible E-Mobile Banking Online transactions through e-banking are now quite popular and convenient for users Agribank has also implemented agribank E-Mobile Banking application to create flexibility and convenience for customers Although the application has been operating for quite a long time, there are also sometimes problems that make customers unsatisfied Agribank e-mobile banking system errors occur due to various reasons, but most of them are from the bank Because of the increasing volume of customers using the service, sometimes the system is overloaded to maintain delaying people's transactions Some common errors such as: Overloaded systems causing failure to log in are affected on the customer's transaction; in some cases, customers not even receive OTP codes to make transactions; system errors mistakenly transferred money but did not receive Agribank E-Mobile Banking app also received feedback from customers as an unfriendly interface that makes it difficult for first-time users or older people In addition, the slow response application causes delays, time-consuming of customers, and the steps of operation are not optimal A perfect example would be that each time the customers’ login is asked to take a photo of their ID that annoys the user Customer dissatisfaction with Agribank's e-banking app is reflected in some negative feedback on the App Store and Play Store According to the evaluation on The Play, the application only reached 3.1/5 stars, quite low compared to the assessment of some other applications at some other banks such as MBbank, TPbank, VPbank, According to Anh Thu customers on the App Store, "The system is very slow in transferring, often encountering errors This makes me very unsatisfied, the bank needs to upgrade to fix the system better." Another customer responded: "Continuous maintenance application Even though I've been transferring money for a few days, the recipient hasn't received it yet." The above application errors come from the weak application of Agribank's technology Agribank needs to improve the quality of service to meet demand and regain the trust of customers 2.3 Relatively high fees When using the bank's services, customers are often interested in fees such as account opening fees, account management fees, withdrawal fees, bank account maintenance fees and annual fees The types of card services that customers most often use are domestic debit cards and credit/Visa/Mastercard cards Compared to other banks, the fees of services of these cards, Agribank's fee is classified as high While the fee for opening an account at some banks such as TPBank, VPBank or MBBank is free, Agribank's customers have to pay an amount of 100,000VND 500,000VND to open the card After opening an account, Agribank requires customers to maintain a minimum balance of 50,000VND/account and pay annual fees ranging from 10,000VND to 50,000VND depending on the card type For account management fees, Agribank includes types of fees: SMS Banking (10,000VND/ month for individual customers, 50,000VND/ month for corporate customers); Internet banking (50,000 VND/ year for individual customers, 200,000VND/ month for institutional customers) and E-Mobile banking (10,000VND/ month for individual customers, 50,000VND/ month for corporate customers) These fees are considered quite high compared to other banks, most large banks such as BIDV, Vietcombank or Techcombank only charge one of the three types of fees In addition, Agribank also has BankPlus service with a monthly service maintenance fee of VND 10,000 per account In addition, there is also a co-owned account management fee according to customer requirements (20,000VND/ month), annual VND account management fee (5,000VND/ month) Money transfer is one of the most used banking services The fees for transferring money to banks will usually vary And depending on each form of money transfer with the system, other systems will also have a difference in these fees Agribank is one of the banks with the highest transfer fees from VND 3,300 to VND 55,000 According to the comparison table of money transfer fees in the same banking system, the lowest transfer fee with banks for transactions under VND 10 million is VIB, TPBank, Sacombank, ACB, Techcombank, Vietinbank, these banks are free to transfer money and Agribank is one of the banks with the highest internal money transfer fee with a fee of VND 3,300 Bank Vietcombank Vietinbank BIDV MBbank Techcombank ACB Agribank Sacombank TPbank VIB Besides, the transfer fee to other banks in different banking systems has a large difference It can be commented from the table below, currently the transfer fee of Techcombank is the lowest for transactions under VND 10 million and the highest is ACB bank with 10,500 +0.028% of the transfer amount, Agribank is the second highest when the fee fluctuates from VND 8,800 to VND 55,000 Ngân hàng Vietcombank Vietinbank BIDV MBbank Techcombank ACB Agribank Sacombank TPbank VIB This fee makes many customers confused when choosing to use Agribank's services To attract more customers, Agribank may consider adjusting service charges 2.4 The attitude of staffs One of the factors that customers are interested in when choosing to use a bank's services is the attitude of employees Referring to the banks in Vietnam, many customers who have experienced the service share the same feeling that the services as well as the attitude of welcoming in recent years are getting better In fact, there are many underestimations, or unhappy experiences with the service style of the stateowned banks, one of which is Agribank Many cases of customers complaining about the working style of Agribank employees such as the speed of service, slow response; uncomfortable attitude; doing their own work during working time, etc According to a feedback of a customer on CafeF recently, he had to wait too long while the employees did their own work This incident is not really serious but also greatly affects the impression of customers about the image of Agribank A good bank is a bank with good services and superiorities, and of course the attitude towards customers must be good Agribank needs to constantly build a culture of customer behavior, and needs to be more close to checking its employees’ attitudes towards customers, including branches in provinces, rural areas Agribank needs to supervise, punish strictly to improve the quality of service to guests Solutions and future development directions 3.1 Promoting abilities Firstly, improving the quality of banking products and services: Agriculture and rural areas are still potential markets for businesses and customer networks Agribank needs to constantly develop strategies for key products, develop, improve quality and diversify products and services to maintain and expand market share in this region For traditional services (such as credit services, payment services ), Agribank and its branches need to maintain and improve the quality in the direction of: Perfecting the service provision process, ensuring publicity, transparency, simplification of procedures make services accessible and attractive to customers For new services such as discounting, financial leasing, factoring, credit cards, bank guarantees, overdrafts, derivative products, etc., it is necessary to improve expertise and marketing capacity , helping businesses and the public to understand, access and effectively use banking services; Improve the convenience of banking services, flexibly use tools to prevent and limit risks associated with safety assurance in banking business For capital mobilization products and services: It is necessary to diversify and develop automatic capital mobilization products and services on electronic banking distribution channels, online deposits on ATM/CDM; Completing a number of term deposit products to meet the diverse needs of residential customers and social organizations towards approaching FDI customers in the period of 2020-2030, issuing credit products associated with jobs lending with capital mobilization and using other products and services of Agribank Secondly, improving infrastructure quality and information technology to ensure the development of high-tech product lines Ensuring the synchronicity of technology between branches and transaction offices, avoid congestion for transmission lines, create negative psychology for consumers, as well as serve as a foundation for the development of product lines new 3.2 Improving weaknesses Firstly, Agribank should increase investment in the IT landscape of banks, especially in customer relationship management (CRM) systems to improve the quality of customer service Technology is the determining factor of the quality of services of commercial banks, the construction and development of banking information systems not only helps to reach and respond to the needs of customers, but also helps banks to prevent risks Agribank needs to invest and upgrade the replacement of information technology systems to ensure they run smoothly and have stable operation; meet the requirements of management; develop products and services, number of transaction accounts; focus on upgrading E-Banking projects and serving customers In addition, Agribank can step up its combined use of big data to collect data on customers’ behavior and sentiment across multiple interactions, and then use that information to gain a deep understanding of customer requests Secondly, Rewarding Loyal Customers With Exciting Incentives Once Agribank has discovered the secret to creating happy customers, the next step in customer-centric strategy is to figure out how to keep them There is a statement that it’s more expensive to acquire a new customer than to retain an existing one According to research from Customer Think, it costs banks approximately $200 to acquire a new customer; the typical banking customer, on the other hand, generates approximately $150 in revenue each year, meaning it can take up to two years to turn a profit from a new customer Based on these numbers, it’s imperative that banks earn and reward customer loyalty with exciting incentives A travel rewards program that enables customers to earn credit card miles with every purchase is one way to show appreciation for the bank's customers When developing a banking loyalty rewards program, it’s important to keep it simple — customers are attracted by programs that are not complex Customercentricity favors simplicity, so the easier it is for the bank's customers to earn points (or whatever value system you choose to implement), the more likely they are to participate in the program Finally, Agribank should improve the quality of human resources, meet customer needs Agribank needs to constantly have preferential policies, encourage employees to self-study and improve professional and professional qualifications and organize professional training courses For specific products such as insurance products, Agribank should organize expert training on products at the branch, selling skills according to the levels Create a dynamic, professional working environment to encourage employees to work hard, be creative and have the opportunity to advance IV References https://global.hitachi-solutions.com/blog/customer-centricity-inbanking https://timo.vn/blogs/so-sanh-phi-chuyen-tien-cac-ngan-hang/ ... performance II The Nature of Customer- centricity (thế giới/ VN nói chung) Customer centricity The importance of customer- centricity with Agribank III Customer centricity in Agribank What Agribank have done... CONSUMER CENTRICITY OF AGRIBANK I INTRODUCE ABOUT AGRIBANK Agribank was established on March 26, 1988 under Decree No 53/HDBT of the Chairman of the Council of Ministers with the name of Vietnam... collection and payment on behalf of; payment of remittances, sale of ABIC insurance; E -Banking services and other convenient banking services of Agribank As of June 30, 2021, Agribank has deployed 68