Joint Stock Commercial Bank for Investment and Development of Vietnam Professional bachelor degree in Finance Banking INTERNSHIP REPORT “Improving car loans service for individual customer of BIDV Tha[.]
Joint Stock Commercial Bank for Investment and Development of Vietnam Professional bachelor degree in Finance-Banking INTERNSHIP REPORT “Improving car loans service for individual customer of BIDV - Thang Long branch” Student: NGUYEN Phuong-Anh Class: NTA-10 University year: 2017-2018 Tutor at TMU: Mr PHAM Tuan-Anh Mrs NGUYEN Hoang Tutor at UDR: Mrs Sonia ADAM-LEDUNOIS Mr Sebastien DAMART Tutor at BIDV: Mr DAO Xuan-Phong Hanoi – 2018 Luan van ACKNOWLEDGEMENT There's no success without support which is even more or less, direct and indirect During my time here, I have received a lot of teachers' concern and help I would like to send my sincere thanks to all teachers of International Training Faculty of Thuong Mai University and experts from ROUEN University who have enthusiastically conveyed their knowledge during the past years Specifically, in this final year, the faculty has held for us courses with foreign experts, which helped us approach useful subjects for our job in the future I am grateful for teachers' instructions from lessons, talkshows and discussions about banking and your facilitation for us to have chance to learn and experience real working environment in my internship Next I am very thankful that Mr PHAM Tuan Anh had spent his valued time instructing and supporting me in this project report Last but not least, I really appreciate BIDV - Thang Long branch, along with staffs at individual customer department who offered chance to experience banking environment I also would like to send my special thanks to Mr DAO Xuan Phong, my instructor, who instructed me specific professional skills of a bank clerk and assisted me to deal with difficulties during my internship with useful advice This was a great experience in banking environment which broaden my view and knowledge about future opportunities To sum up, I wish you all teachers at the International Training Falcuty at Thuong Mai University and at ROUEN University health and happiness to continue your mission as inspirers Internship report Luan van i TABLE OF CONTENTS INTRODUCTION CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH AND THE INTERNSHIP .2 1.1 Overview of BIDV: 1.2 Overview of BIDV- Thang Long Branch: 1.3 Introduction of my internship: 1.3.1 The reason for choosing the topic 1.3.2 Internship plan CHAPTER II: INTERNSHIP IMPLEMENTATION AT BIDV, THĂNG LONG BRANCH 2.1 The internship position, responsibilities and tasks 2.1.1 Internship position and responsibilities 2.1.2 Daily task 2.2 Overview of car loan at Thang Long branch .8 2.2.1 Process of car loan 2.2.2 The Car loan service of BIDV- Thang Long branch .9 2.2.3 Car loan packages: 2.3 The reality of car purchasing at the branch 10 2.4 Some business cases 11 2.4.1 The 1st case ( Failed) 11 2.4.2 The 2nd case ( Failed ) 11 2.4.3 The 3rd case ( Successful) 12 2.4.4 The 4th case ( Successful) 12 2.4.5 The 5th case ( Successful) 12 2.5 Competitors Analysis 13 2.6 PEST 14 2.7 SWOT analysis 15 2.7.1 SWOT 15 2.7.2 Proposal 16 2.8 KPI and KPR 17 2.8.1 Key performance indicator – KPI 17 2.8.2 Key performance results – KPR 17 CHAPTER III: INTERNSHIP ASSESSMENT 19 3.1 Difficult 19 3.2 Internship gained 19 3.3 Future plan 20 CONCLUSION 21 Internship report Luan van ii LIST TABLE Table 1.My internship schedule Table Daily task Table Process of car loan Table Business results 10 Table 5.Comparing BIDV with competitors 13 Table SWOT 16 Table Monthly KPI's customer relationship staff 17 Table my commercial result 17 Table Career plan 20 LIST FIGURE Figure Structure of BIDV- Thang Long Branch Figure The structure of the department and My position Figure Car loan packages LIST PICTURE Picture Thang Long branch Picture Transaction at Thang Long branch Internship report Luan van iii LIST OFABBREVIATED NAME ASEAN Association of Southeast Asian Nations ATM Automated teller machine BIDV Joint Stock Commercial Bank for Investment and Development of Vietnam FTA Free trade agreements SBV State Bank of Vietnam Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam Vietinbank Vietnam joint stock commercial bank for industry and trade Techcombank Vietnam Technological and Commercial Joint- stock Bank Sacombank Saigon Thuong Tin Commercial Joint Stock Bank SHB Saigon – Hanoi Commercial Joint Stock Bank VND Viet Nam Dong USD United Stated Dollar USTV University Of Toulon-Var TMU Thuong Mai University Internship report Luan van iv INTRODUCTION Thuong Mai University and ROUEN University facilitated students to take part in banking environment before finish this course with the aim of establish the vocational awareness for students Having the opportunity to get acquainted with the real working environment at the bank, I applied for a position as a salesman - an important part of the bank Fulfilling the duties of a salesman plays an important role in bank development During my internship at BIDV Bank - Thang Long Branch, I have set for myself the following targets: - Targets 1: Try to apply learnt theories to real work - Target 2: Understand the operation of the bank, duties of a salesman, how to communicate with customers, how to solve the problems - Target 3: Try to deal with challenges and keep learning and studying - Target 4: Build up good relationship with bank's employees and open other relationships - Target 5: Improving the skills and knowledge ready to become a banker In time internship, I have accumulated a lot of knowledge from difficulties i had been through Those experiences will be stated in the following report Internship report Luan van CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH AND THE INTERNSHIP 1.1 Overview of BIDV: Full name: Joint Stock Commercial Bank for Investment and Development of Vietnam Slogan: Sharing opportunities, cooperating successfully Head-Office: BIDV tower, 35 Hang Voi Street, Hoan Kiem District, Ha Noi Foundation day: 26 /4/1957 Employees: 25.000 staff (2016) System of BIDV: 190 branch and 815 Transaction Office, 1.824 ATM in Vietnam Total assets : VND 1.176.000 Billion( 2017) Activities: Banking, insurance, securities, financial investment Services: + Individual Customers: Deposits – Savings, Personal loan, E-Banking + Corporate Customers: Loans & Guarantees, Trade finance, Deposits + Financial Institutions: Global Markets, Banking services, Deposits - Target: BIDV will constantly innovate and develop to become one of the top 20 banks in Southeast Asia by 2030 - Competitors : Vietcombank, Vietinbank, Techcombank,… 1.2 Overview of BIDV- Thang Long Branch: Location : Pham Hung Street, Dich Vong Hau Ward, Cau Giay District, Hanoi Employees: 140 staff ( 2016) Founded on: 2/4/1991 Services: + Individual Customers: Deposits – Savings, Personal loan, E-Banking + Corporate Customers: Loans & Guarantees, Trade finance, Deposits + Financial Institutions: Global Markets, Banking services, Deposits • Targets: Complete the targets, Become the excelent branch of BIDV • Competitors: Vietcomabank, Vietinbank, Techcombank, Sacombank , SHB,… Organization structure Internship report Luan van Figure Structure of BIDV- Thang Long Branch Manager Board Clients management block Risk management block Operation block Individual customer relation dept Risk management dept Business relation dept Appraisal dept Internal manament block Device management dept Currency and Fund management dept Affiliation block FinanceEconomy Dept Transaction offices Planning and Finance Dept Human resource management General planning dept (Source: BIDV-Human resource management Department) Picture Thang Long branch Picture Transaction at Thang Long branch (Source: BIDV- Thang Long branch) (Source: BIDV- Thang Long branch) 1.3 Introduction of my internship: 1.3.1 The reason for choosing the topic With this current growth momentum of the world economy, Vietnam has also Internship report Luan van gradually developed remarkably in all aspects of social life People income are increasingly improved This leads to higher demand for life standard However, in comparison with some products such as cars, Vietnamese income seemed not to be high enough to afford them Therefore, banks becomes trust-worthy friends sharing financial problems with them In the last quarter of 2017, Vietnam government decided to cut down import and consumer levy of many products, especially, the levy on imported cars from ASEAN countries with car's gears' down to 0% For example, a car imported before 1/1/2018, valued at $ 10,000, will have selling price of more than $ 20,000 (including: Price of car is taxable when exported + import tax + special excise tax + value added tax) But from 1/1/2018, the car value after tax is about $ 15,000 because import tax of 0% Thus, the price of cars reduced about $ 5,000, equivalent to more than 100 million VND So 1/1/2018, Vietnam's car market will change positively Seeing the development opportunities of the car market, many banks have stepped up the development of car loan service, supporting the needs of customers BIDV also can see the potentials of this market so that they focus on car loan service Previously, BIDV have not been developed Car loan But now, car loan is potential products that BIDV wants to develop in 2018 so I want to research and make a contribution to the development of loan products 1.3.2 Internship plan Table 1.My internship schedule Time Week 1-4 (26/223/3) Week ( 26-30/3) Tasks - Learn about BIDV services - Learn about salesmen's responsibility - Choose car loan service for studying and service development - Learn about loaning process - Learn methods to approach customer, to face-to-face communicate and via phone from the experienced staff - Use telephone directory to start consulting with some acquaintances - Assist tutor in meeting customer - Assist tutor in input the old data into management system of the bank - Finding customers by phone from bankprovided list - Meet scheduled customers with tutor - helping tutor create the records for Outcome - Knowing clearly activities of the bank - Knowing clearly about car loan - Knowing use BIDV's customer record management system - Learn how to advise customers from tutor - Finish the learning process from the tutor - Enough knowledge of car product to advise customers - Can work independently Internship report Luan van Week 6-7 (2/4-13/4) Week 8-11 (16/411/5) Week 12 (14-18/5) Week 13 ( 21-25/5) customers - Call customers who lack some loaning papers - Finish the learning process from the tutor - Start working as an official staff under the management of the tutor - Advising Customers at Pham Hung Showroom Huyndai - Make phone calls from provided bank list - Do market research - advising customers at Pham Van Hong Showroom Huyndai - Help the old employees entering the data into bank's system - Assist customers open credit card - Meeting customers with tutor - Transfer the loan profile of customers to the appraise dept - Consult customers at Showroom - Check for record appraisal results, inform customers their loan agree or not - Accomplishment the records for successfully consulted customers - Make phone calls with customers from bank's provided list - Monday, Tuesday (30/4-1/5): days off (International Labour Day) - Complete papers and records, hand over April tasks to instructor - opening credit card for customer - Help the tutor entering the data into bank's system - Do research on lending market - Consult customers at Showroom - Help the old employees entering the data into bank's system - Meet customers with the tutor - Make phone calls to seek for customers - complete all the documents, send back to the instructor - Get answers from the tutor and improving communication skill - opening credit card - advising successful for one customer at the showroom - opening a master card - Call successful customers, - research competitors - Opening credit card and debit card - Successful advise for customer in showroom - Opening a saving account - Cross-sell: insurance contract - Swot research - Successful advise for customer by phone - Pest research - Successful advise for customer at showroom - open saving account - Geting data at the bank and starting write report Internship report Luan van 2.2.2 The Car loan service of BIDV- Thang Long branch • Target customer: Vietnamese people who are over 18 years old with the monthly income equal to or above 15 million VND and live at most 30km around Hanoi • The maximum of loan duration is extended to years • The loan amount is up to 70% the car value, if customer has other collateral such as land, the maximum amount is 100% • In addition, our customer can have a credit card with free annual fee for the first year Customer can use it to buy car insurance, accessories and service - Loaning conditions + Vietnamese individual customer/ households + Foreign individuals but permanently living or working in Vietnam + Have stable income and guarantee solvency + Have collateral property for loans The guaranteed assets is the car Other assetsbelonging to the customer/ third side (ex: house, savings book or car) - Document of registration: + Application for loans - ID card/passport and permanent residence / temporary residence book + Documents regarding the car: Trading contract, bills, etc + Documents proving debt repayment: Labour contract, timesheet, etc + Document regarding mortgage asset 2.2.3 Car loan packages: Figure Car loan packages Thanks to the variety of preferential interest rates, BIDV allows customers to choose their loan package, preferential package will be suitable for customers who are financially difficult in the beginning and want to borrow money Monthly interest will be reduced The first option will be preferred due to its fixed interest rates in the long term to take initiative in the financial needs to pay monthly customers The second preferential interest rate package: interest rates 7.8% per annum Internship report Luan van 12 fixed in the first 12 months This is the most customers' choice because this is the package of interest suitable for many customers today by the flexibility, fixed time and moderate interest rates 2.3 The reality of car purchasing at the branch Table Business results Target 2016 2017 Total loan of individual Billion/VND % Billion/VND % department 5892 100 6528 100 Car loan Billion/VND % Billion/VND % 365 6.1 295 4.5 (Source: BIDV- Thang Long Branch Financial Report in 2016 & 2017) Figure Business results 6528 7000 5892 6000 5000 4000 3000 2000 1000 365 2016 295 2017 Total loan of individual department Car loan (Source: BIDV- Thang Long branch) From the table and chart, 2017 is a successful year for BIDV and BIDV is developing very stable Loans outstanding balance at the end of 2016 is 5893 billion, and to the end of 2017 is 6528 billion, increasing 636 billion equivalent to 10.8% But loan car sevice, this may be unsuccessful year when total car debt reduce 83 billion in 2017 I think demand buy car decreased because consumers are waiting government's policies It is free Import tax for cars in 2018 This will cause the price of cars in Vietnam reducel sharply It will boosting demand buy car of consumer and car related services including car loan Internship report Luan van 13 2.4 Some business cases 2.4.1 The 1st case ( Failed) Name: XXXX Gender: Female Age: 35 Address:XXXXX Job: Doctor Income/month: VND 30 million (Data from statement ) Marital status: Married and have children She has been a doctor at Vietnam National Children's Hospital for years She has the demand of buying a car- Hyundai Accent 1.4 AT sedan valued VND 596.200.000 she wants a loan of 100% car value in years Her mortgage is the house she is living Reason for not disbursing: She is not eligible because she have bad debt group 2, but she has amount of debt small and bad debt in group not longer than month, so i advised she loan have the mortgage and reduce the loan to 70% the car value but could not reach an agreement with the customer 2.4.2 The 2nd case ( Failed ) Name: XXXX Gender: Female Age: 28 Address: XXXXX Job: real estate agent Income/month: VND 25 million (Data from statement ) Marital status: Single She has worked for Sudico (SONG DA Urban and Industrial Zone Investment and Development Joint Stock Company) for years She has the demand of buying a carHyundai Grand I10 sedan 1.2 AT 2018 valued VND 415.000.000 She wants a loan of 100% car value in years Reason for not disbursing: She is not eligible as she doesn’t have stable income Her salary is VND million/ month + commission This cannot make sure that she can afford the monthly interest on loan I advised her to use her house or savings account to the mortgage but she is living with family and haven’t got home of his own She not agree to use savings account to mortgage Because customer have low salary and don't have mortgage The possibility of customer a low refund, so the loan was not approved Internship report Luan van 14 2.4.3 The 3rd case ( Successful) Name: XXXX Age: 40 Address: XXXXX Job: Architect Income/month: VND 18 million (Data from statement ) Marital status: Married and have children He has worked for Phuc Hung Holdings Construction Jsc for years He has the demand of buying a car - Hyundai Grand Sedan valued VND 420.000.000 He wants a loan of 100% car value in years with the collateral is his house After assessing his profile, his profile is in line with the bank's regulations, the loan is approved 2.4.4 The 4th case ( Successful) Name: XXXX Age: 36 Address: XXXXX Job: Business Income/month: VND 40 million (Data from statement ) Marital status: Married and have child He have restaurants He has the demand of buying a car - Hyundai Santafe valued VND 1.070.000.000 He wants a loan of 50% car value in years He wanted unsecuredloan but He was not an employee of any company, so it was more difficult to prove income than normal staff with only labor contracts and statement I advised him switch to mortgage loan, which will make the loan easier to accepted but he did not want mortgage loan, so to decreasing risk for bank I advised him reduced the loan period to years After assessing his profile, his profile is in line with the bank's regulations, the loan is approved 2.4.5 The 5th case ( Successful) Name: XXXX Age: 28 Address: XXXXX Job: Restaurant manager Income/month: VND 17 million (Data from statement ) Marital status: Single She has worked for Crowne Plaza West Hanoi for years She has the demand of buying a car - Hyundai Grand I10 1.0MT 2018 valued VND 355.000.000 She wants a loan of 70% car value in years After assessing her profile, her profile is in line with the bank's regulations, the loan is approved Internship report Luan van 15 ... 2.2 Overview of car loan at Thang Long branch .8 2.2.1 Process of car loan 2.2.2 The Car loan service of BIDV- Thang Long branch .9 2.2.3 Car loan packages:... TABLE OF CONTENTS INTRODUCTION CHAPTER I: OVERVIEW OF BIDV, THĂNG LONG BRANCH AND THE INTERNSHIP .2 1.1 Overview of BIDV: 1.2 Overview of BIDV- Thang Long Branch: ... Long branch (Source: BIDV- Thang Long branch) (Source: BIDV- Thang Long branch) 1.3 Introduction of my internship: 1.3.1 The reason for choosing the topic With this current growth momentum of the