Overviews of digital marketing in banking system

TABLE OF CONTENT LIST OF FIGURE LIST OF TABLE LIST OF ABBREVIATIONS ACKNOWLEDGEMENTS CHAPTER : INTRODUCTION 1.1. Rationale 1.2. Research objective 1.3. Research question 1.4. Research scope 1.5. Research Methods 1.5.1. The method of data collection 1.5.2. Research process 1.6 . Research structure CHAPTER 2: OVERVIEWS OF DIGITAL MARKETING IN BANKING SYSTEM 2.1 Digital Marketing 2.2. Digital Marketing in banking operations .7 2.3. Digital Marketing activities in Commercial bank 2.3.1. Differences between Traditional Marketing and Digital Marketing in Commercial bank .8 2.3.2. Introduction of Digital Marketing activities in commercial banks 10 2.3.3. Some international experiences on applying Digital Marketing 12 CHAPTER : METHOLOGY .14 CHAPTER 4: ANALYSING DIGITAL MARKETING USAGE IN VIETNAM PROSPERITY JOIN-STOCK COMMERCIAL BANK 17 4.1: Introduction of Vietnam Prosperrity Join-stock Commercial Bank 17 4.1.1 History of Vietnam Prosperity Join-stock Commercial Bank .17 4.1.2 VPBank’s emblem 18 4.1.3 Vision, Mission, Development Strategy and Core Value of VPBank 19 4.1.4 Organization chart of Vietnam Prosperity Join-stock Bank 20 4.2 Analysing Digital Marketing in Vietnam Prosperity Join-stock commercial Bank .21 4.2.1 Facts of Digital Marketing in Vietnam Prosperity Join-stock commercial Bank 21 4.2.2 Advantages of applying Digital Marketing in Vietnam Prosperity Joinstock Commercial Bank 26 1. The rapid development of internet in recent years .27 2. The popularity of social networking and smart phones .29 3. The bank's demand for new form of marketing with many advantages 34 4. The development of Digital Marketing 38 4.2.3 The difficulties when applying Digital Marketing in Vietnam Prosperity Join-stock commercial banks 41 1. On the inside of the bank 42 2. On the partner side, the customer .48 CHAPTER : RECOMMENDATION 53 5.1 Recommendation for Vietnam Prosperity Join-stock Bank 53 5.2 Recommendation for State Bank 54 5.3 Limitation .58 REFERENCE 59 APPENDIX .61 LIST OF FIGURE Figure Research Framework .14 Figure VPB organization chart 20 Figure : Advantages of Digital Marketing in the opinion of the respondents 26 Figure The evolution of Internet-based devices in the world, 1984-2011 27 Figure 4 Top 20 countries by number of Internet users as of 30/06/2017 28 Figure The benefits that Digital Marketing brings to the bank and its customers .34 Figure Difficulties in applying Digital Marketing in the opinion of surveyed subjects 41 Figure Recommendations for State Bank 54 LIST OF TABLE Table 3.1 Feedback on target group with the Bank: .15 Table 3.2 Gender of respondents: 15 Table 3.3 Age of respondents: 16 LIST OF ABBREVIATIONS VPBANK: HOSE: SME: GBM: ABF: TDWI : FATCA: BOD: CEO: EXCO: NIM: ALCO: VIETNAM PROSPERITY JOIN-STOCK COMMERCIAL BANK HOCHIMINH CITY STOCK EXCHANGE Small And Medium-Sized Enterprises Global Brands Magazine Asian Banking & Finance Magazine The Data Warehousing Institute Foreign Account Tax Compliance Act Broad of Director Chief of Executive Executive Committee Net interest margin Assets and Liabilities Committee ACKNOWLEDGEMENTS In this part, it is my pleasure to give the greatest admiration to the people who have given me supports and advices to complete this work Firstly, I would like to express my gratitude to my supervisor, PhD Do Hoai Linh for all the time and effort she gave to help me finish this work Despite her busy schedule, she is always caring and she is more than willing to provide the best, the most detail information and recommendations I would also like to thank National Economic University (NEU) teachers for the wonderful knowledge they have taught me wholeheartedly Thanks to the help of the teachers of Institute of Finance and Banking at National Economics University, I had the opportunity to practice at Vietnam Prosperity Joint Stock Commercial Bank The time I worked in VPBANK as an intern has helped me have more experience, have better understanding of the real works of the bank, and also accumulate more practical knowledge In the internship in Vietnam Prosperity Commercial Joint-stock Bank (VPbank), I am very thankful to have received the thorough guidance from the employees of the bank With all their help, I have completed the report and the successfully finished my internship Furthermore, I am grateful for the support from my classmates and my friends for the information that they shared Lastly, I feel very lucky to have the great encouragement from my dear family Without their endless love and support, I could never have completed this study Nguyen Thanh Thao CHAPTER : INTRODUCTION 1.1. Rationale In recent years, with the rapid growth of Internet, more and more people in Vietnam are using it in their daily life Acording to IWS (2015) Vietnam is ranked 6th in Asia (after China, Japan, India, South Korea and Indonesia) in terms of the number of people that use Internet, which is about 20% of the population Most of the people who are using Internet in Vietnam are young people under the age of 30 (about 80% of the overall amount)  The widespread use of digital devices such as smartphones, tablets, etc; and social networking tools such as Facebook, SEO, Instagram, etc, is making the Internet become a new channel that is expected to be highly effective for marketers who want to reach out to a much more open market and a large number of potential customers According to the latest study by research firm Market CIMIGO (2010), the amount of money that companies invest in  Digital Marketing  in Vietnam is 15 million, accounting for 5% of the total advertising investment The remaining marketing capital is poured in traditional advertisements, while the percentage of Internet users in Vietnam is 26%, higher than the average rate of 19% in Asia It shows that Digital Marketing has not been invested enough to match its potential Furthermore, the rapid development of the Internet over the past decade has had a significant impact on the change of bank operations, including marketing. In present commercial banks in Vietnam, the strong development of information technology infrastructure has given great support in banking transactions, as well as customers care. However, the image communication of the bank to its curent customers and target market has not been effective. The main reason leading to the above situation is that domestic commercial banks not pay proper attention to marketing, especially Digital Marketing - a form of direct image promotion to customers through the rapid development of the Internet and the information technology system of the bank Industrial Revolution 4.0 recognizes the great advancement of mankind in the application of digital achievements that bring major changes to technical innovation and production. In response to this development, Philip Kotler (2016) states that Marketing 4.0 is an inevitable trend, with a marketing mix of online and offline interaction between the company and its customers Marketing 4.0 always firmly attached to the internet for all of its aspect, from how to reach target audiences, how to choose the media channel to advertise on, to boosting buying activities of potential customers. Therefore, taking advantage of the number of Internet users in general and digital technology in particular to promote the development of Digital Marketing tools alongside of traditional marketing tools is an indispensable trend in Vietnamese commercial banks. Moreover, marketing through digital tools is a needed tool for Vietnamese commercial banks today to compete with the image of international banks, especially in the 4.0 era For the above reasons, I would like to choose the subject of “determining the favorable conditions and barriers in the process of applying Digital Marketing in Vietnamese commercial banks and provide recommendations and contributions to improve our management and execution toward this new field” as the main subject of this study 1.2. Research objective The objective of the research is: - Researching the basic theory of Digital Marketing in commercial banks - Having general assessment of the of digital marketing’s current state in Vietnamese commercial banks - Assessing the advantages and disadvantages of applying Digital Marketing in Vietnam commercial banks - Proposing recommendations to promote the application of Digital Marketing at the commercial banks in Vietnam 1.3. Research question In order to achieve the objectives of the project, we should answer the following questions: - What is Digital Marketing? What is Digital Marketing in Banking? What Digital Marketing tools  are commonly used in the bank? - What are the favorable factors that influence the process of applying Digital Marketing in Vietnamese commercial banks at the present ? - What are the difficulties of applying Digital Marketing in Vietnamese commercial banks now? - What suggestions are needed to facilitate the application of Digital Marketing in Vietnamese commercial banks? 1.4. Research scope There are many content related to Digital Marketing in Commercial Bank , however, in this study, we only provide the following content: Scope of the research: The research is focused on the advantages and disadvantages of applying Digital Marketing in commercial banks in Vietnam; Digital Marketing in Vietnam Prosperity Join-stock Commercial bank , and offering recommendations to customers, commercial banks , state banks and government Scope of the survey: The research team has produced in-depth interview questionnaires and 500 general questionnaires for clients, employees and managers of Vietnam Prosperity Join-stock Commercial bank. The questionnaire was surveyed online nationally and directly in Hanoi. The in- depth interview will be answered directly by the bank marketing specialist. In addition, research papers on international experiences in applying digital marketing in commercial banks were also studied by the research team Scope of the study period: We built up staff survey questionnaires  from January 2018 to May 2018 The in-depth interview is done and obtained results on May 25, 2018 1.5. Research Methods This research uses qualitative research methodology combined with desk research to collect data to analyze the advantages and disadvantages of applying Digital Marketing in Vietnamese commercial banks 1.5.1. The method of data collection The data for the study were collected from two sources -          Secondary The method of secondary data collection is to collect data based on available data, published on the mass media -          Primary The primary data collecting method is a combination of in-depth interviews and a questionnaire survey 1.5.2. Research process -          Data collapse: clean and organize information -          Express information: condense and organize information analysis diagram -          Drafting the conclusion and verifying the results 1.6 . Research structure The paper consists of five chapters Chapter I: Introduction to the topic - Rationale and the cause of the research Chapter II: Overview of Digital Marketing in banking systems - Presenting an overview of perspectives on Digital Marketing, Digital Marketing activities in commercial banks Chapter III: Methology - Providing research methods and process Chapter V: Discussion and Analysis - Analysing the advantages and disadvantages of the application of Digital Marketing in Vietnam Prosperity Join stock commercial bank according to the data collected from the survey Chapter IV: Conclusions and Recommendations - Making conclusions based on the researches that have been done and giving some recommendations to commercial banks, state banks and the government ... 2: OVERVIEWS OF DIGITAL MARKETING IN BANKING SYSTEM 2.1 Digital Marketing According to Digital Marketing? ?Association? ?of Asia ADMA,? ?Digital Marketing, also known as Interactive Marketing / Internet... and the cause of the research Chapter II: Overview of Digital Marketing in banking systems - Presenting an overview of perspectives on? ?Digital? ?Marketing, ? ?Digital Marketing? ?activities? ?in commercial... amount of money that companies invest in ? ?Digital Marketing? ? in Vietnam is 15 million, accounting for 5% of the total advertising investment The remaining marketing capital is poured in traditional