The improvement mobile banking services at bidv, dong do branch

NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM ***************************** BACHELOR’S THESIS IN FINANCE THE IMPROVEMENT MOBILE BANKING SERVICES AT BIDV, DONG DO BRANCH Student’s name : Duong Thu Thuy Class : Advanced Finance Intake :50 Student’s ID : CQ502620 Supervisor : Dr Nguyen Huu Anh Hanoi, 2012 ACKNOWLEDGMENT The report is the result of my internship in Personal customer services dpartment of BIDV Dong Do branch – Ha Noi By that time, I have worked with a great number of people whose contribution to the research It is a pleasure to convey my gratitude to them all in my humble acknowledgement In the first place, I would like to express my thanks to Mr Nguyen Huu Anh for his supervision, guidance and encouragement during this time I appreciate all his time and effort in helping me during the time of my internship In the next place, I would like to express many thanks to all staffs in BIDV Dong Do branch in general and in Personal customer services Department in particular, for their warm treatments and enthusiastic helps during my internship I am very grateful to Mrs Nguyen Thi Ngoc, my supervisor in Dong Do branch office, for her encouragements and guidance Besides, I gratefully acknowledge all lectures and officers from Advanced Finance Program for their shared knowledge and experiences Last but not least, I would like to delivery my gratitude to all of my classmates in advanced class intake 50 Their supports are one thing making this thesis possible ~2~ TABLES OF CONTENT CHAPTER 1: INTRODUCTION 1.1 Rationale 1.2 Research objective 1.3 Research scope 1.4 Research methodology 1.5 Research structure CHAPTER II: FUNDAMENTAL ISSUES OF DEVELOPMENT IN MOBILE BANKING SERVICES 2.1.1 Definition 2.1.1.1.Mobile accounting 2.1.1.2 Mobile Brokerage 2.1.1.3 (Mobile Financial Information) 2.1.2 Services of mobile banking 1.1.2.1 Browser-based Applications 2.1.2.2 Messaging-based Applications: .9 2.1.2.3 Standalone application downloaded by clients 10 2.2.1 The importance of the development of mobile banking 10 2.2.1.1 For bank 10 2.3.4.2 for clients 13 2.1.5 Criteria for evaluating the development of mobile banking services 14 ~3~ 2.1.5.1 Qualitative indicators 14 2.1.5.2 Quantitative indicator 14 2.2 FACTORS AFFECTING THE GROWTH OF MOBILE BANKING SERVICES 16 2.2.1 subjective factor 16 2.2.1.1 Platform technology: 16 2.2.1.2 Security and privacy .17 2.2.1.3 Development of the commercial banks strategy 19 2.2.2 Objective factor 19 2.2.2.1 Environmental laws 19 2.2.2.2 Economic Environment 20 2.2.2.3 The social environment 21 CHAPTER 3: THE REAL SITUATION OF THE DEVELOPMENT 23 IN MOBILE BANKING SERVICES AT BANK OF INVESTMENT AND DEVELOPMENT- BIDV- DONG DO BRANCH 3.1 23 Formation and development process of BIDV- Dong Do branch 23 3.1.1 Overview of BIDV 23 3.1.2 Foundation of BIDV, Dong Do branch 24 3.1.2.1 The process of formation and development: 24 3.1.2.2 Functions BIDV Dong Do Branch 25 3.1.2.3 Organizational structure .25 3.2.3 Mobile banking services at BIDV, Dong Do branch 29 ~4~ 3.2.1 Size and experience 29 3.2.2 Main customers 30 3.2.3 Relationship .30 3.3 REAL SITUATION OF MOBILE BANKING AT BANK OF INVESTMENT AND DEVELOPMENT- BIDV- DONG DO BRANCH 30 3.3.1 Performance of mobile banking servies at BIDV Dong Do Branch .30 Fund Mobilization: 32 Outstanding loans 34 3.3 SWOT MODEL FOR MOBILE BANKING IN THE DEVELOPMENT OF COMMERCIAL BANKS IN VIETNAM: 38 3.3.2 Weaknesses 40 3.3.3 Opportunities 41 3.3.4 Challenges 44 CHAPTER 4: RECOMMENDATION TO IMPROVE MOBILE BANKING SERVICES AT BANK OF INVESTMENT AND DEVELOPMENT- BIDVDONG DO BRANCH 47 3.2.1 Product promotion 47 3.2.2 Diversification Mobile banking services .48 3.2.3 Development of the system to accept payments via mobile banking 48 3.2.4 Strengthen cooperative relationships with mobile network providers49 3.2.5 Development of technology safety and security 49 3.2.6 Solution quality resources 49 ~5~ 3.2.7 Expanding the client system And to promote research, improve customer service .51 CHAPTER 5: CONCLUSION AND SOME SUGGESTION FOR FUTURE RESEARCH ~6~ 54 LIST OF FIGURES Figure 2.1: ROA and ROE 32 Figure 2.2: Fun mobilization of BIDV, Dong Do branch 33 Figure 2.3: Total fund mobilization in term of currencies 34 Figure 2.4: Total outstanding loans 34 Figure 2.5: Other business activities 35 LIST OF TABLES Table 2.1: Business results of Dong Dong branch from 2006 to 2010 31 Table 2.2: Total fund mobilization in term of time 32 Table 2.3: Services performace at BIDV- Dong Do branch 35 Table 2.4: Performance of mobile banking servies at BIDV Dong Do Branch .36 Table2.5: assesment of mobile banking at BIDV, Dong Do branch 37 ~7~ CHAPTER 1: INTRODUCTION 1.1 Rationale It is a common knowledge that the rushing development of science and technology, especially information technology sector, has affected all aspects of life, changed the awareness and production methods of many business sectors, including banking The concept of E-banking, online trading, online payments, etc began to become the trend of development and competitiveness of commercial banks in Vietnam It can be objectively said that the development of bank services based on information technology is the inevitable trend in this era of international economic integration One of the modern service, high utility of that is mobile banking services Thanks to that, nowadays, customers, banks are herited the quickness and accuracy of transactions through mobile banking As a result, to survive and develop in a high competitive business environment nowadays, almost all commercial banks are striving with all efforts to catch up the modernization process of the bank, focus not only on the perfection of traditional business, but also on the development of modern banking applications, and mobile banking services is an example However, the practical development of mobile banking services of commercial banks in Vietnam but also shows the difficulties and limitations Despite being one of the best and biggest banks in Vietnam, BIDV also is not an exception The development of mobile banking at BIDV still copes up with many difficulties which is influence business activities of BIDV, not only in financial factors but also in reputation of the bank Therefore, after practicing at department of customer services at BIDV Dong Do branch, stemming from above knowledge, I decided to go with the thesis: “IMPROVEMENT IN MOBILE BANKING SERVICES AT BANK OF INVESTMENT AND DEVELOPMENT- BIDV- DONG DO BRANCH” This thesis studies about the theories of mobile banking, factor affect the development of mobile banking services and some successful example of mobile banking in the ~8~ world After that, this thesis studies mentions about the current situation of mobile banking at BIDV Dong Do branch, before providing some recommendations for both the government and the bank in order to improve the mobile banking 1.2 Research objective Through this thesis, I aim not only at the theories of mobile banking but also some factor affect the development of such kind of services Besides, I also aim to the performance of mobile banking in Dong Do branch, the achievements and limitations of the branch in this services Moreover, based on the conditions of banking industry, domestic economy and international economy in this recent years, I intend to propose some possible solutions and recommendations for the bank and the government in order to improvement the mobile banking at BIDV Dong Do branch 1.3 Research scope This thesis focuses on researching on the business performance of mobile banking at Bank for Investment and Development of Vietnam – Dong Do branch All data presented in this thesis research illustrates the real situation of international payment operation at Dong Do branch during three recent years from 2008 to 2010 and expanding recommendation to 2015 1.4 Research methodology In my thesis research, both qualitative and quantitative research method are used Qualitative method concerns about the causes of risks and the impacts of them on mobile banking Meanwhile, quantitative method concerns about data, information of three recent years, using statistic, analysis, and making comparison in order to have a practical view about the real situation of risks and performance of mobile banking activities at BIDV Dong Do branch 1.5 Research structure My thesis research consists of main parts: CHAPTER 2: FUNDAMENTAL ISSUES OF DEVELOPMENT IN MOBILE BANKING SERVICES ~9~ CHAPTER 3: THE REAL SITUATION OF THE DEVELOPMENT IN MOBILE BANKING SERVICES AT BANK OF INVESTMENT AND DEVELOPMENTBIDV- DONG DO BRANCH CHAPTER 4: RECOMMENDATION TO IMPROVE MOBILE BANKING SERVICES AT BANK OF INVESTMENT AND DEVELOPMENT- BIDV- DONG DO BRANCH CHAPTER 5: CONCLUSION AND SOME SUGGESTION FOR FUTURE RESEARCH CHAPTER II: FUNDAMENTAL ISSUES OF DEVELOPMENT IN MOBILE BANKING SERVICES In 30 years recently, the financial institutions have been upgraded to meet the everyday needs of customers First to mention is the automated teller machine (ATM), which is introduced to American in 1969 by the Bank of New York Chemicals Over a long time of development to fix many limitations, ATMs now carries the full features of a bank, offering a full suite of financial transactions Next, the launching of Internet banking in the mid-1990s had allowed consumers to access their financial accounts by using a computer connected to Internet at home Over the long run improving Internet banking to build consumer belief, today, Internet banking has gained an important position, with about 35% of U.S households conducting banking transactions online However, Internet banking services still have some serious drawbacks Firstly, only 62% of American households have a computer, according to a study conducted by organizations U S Census Bureau in 2003; and only 28% of Americans have broadband Internet access All above, the most important issue is portability (Even with a laptop, customers can connect only when the laptop is successfully connected to Internet) This will not happen with mobile phones Mobile access can be done anytime and anywhere - by a very large number of people More than 238 million people in the U.S have mobile-accounted for 78% of ~ 10 ~ ... mobile banking servies at BIDV Dong Do Branch .36 Table2.5: assesment of mobile banking at BIDV, Dong Do branch 37 ~7~ CHAPTER 1: INTRODUCTION 1.1 Rationale It is a common knowledge that the rushing... Relationship .30 3.3 REAL SITUATION OF MOBILE BANKING AT BANK OF INVESTMENT AND DEVELOPMENT- BIDV- DONG DO BRANCH 30 3.3.1 Performance of mobile banking servies at BIDV Dong Do Branch. .. mobile banking in the ~8~ world After that, this thesis studies mentions about the current situation of mobile banking at BIDV Dong Do branch, before providing some recommendations for both the