Develop electronic banking services through mobile communication network – mobile banking at vietcombank

FOREIGN TRADE UNIVERSITY BANKING AND FINANCE FACULTY -*** - GRADUATION THESIS DEVELOP ELECTRONIC BANKING SERVICES THROUGH MOBILE COMMUNICATION NETWORK – MOBILE BANKING AT VIETCOMBANK Student Name: Nguyễn Hải Yến Student identity number: 1001030414 Class: A2 – High Quality Class – Banking and Finance Faculty Year: 49 Instructor: MSc Nguyễn Thị Hồng Nguyên Hanoi, April, 2014 INDEX Preface CHAPTER 1: LITERATURE FRAMEWORK ABOUT MOBILE BANKING 1.1 Definition of mobile banking 1.2 Developmental fundamentals of Mobile Banking 1.3 Features and utilities of mobile banking services 1.3.1 Classification depends on how information flows .8 1.3.2 Classification depends on application 1.4 Technology options of Mobile Banking 11 1.4.1 Server-side Technologies 11 1.4.2 Client-side Technology 14 1.5 Benefits of development of electronic banking services through Mobile Banking.15 1.5.1 For banks 16 1.5.2 For customers 17 1.5.3 For telecommunications companies 18 1.6 Factors affect the development of mobile banking services .18 1.6.1 Macro factors .18 1.6.2 Micro factors .21 1.7 Model and business trends in electronic banking services via mobile in the world 22 1.7.1 Bank – led model .22 1.7.2 NonBank - led Model 23 CHAPTER II: CURRENT SITUATION OF MOBILE BANKING DEPLOYMENT AT VIETCOMBANK .26 2.1 Current situation of mobile banking deployment in Vietnam 26 2.1.1 Bank – led model .26 2.1.2 Telco – led model 30 2.2 Current situation of mobile banking deployment at Vietcombank 32 2.2.1 Overview of Vietcombank 32 2.2.2 Overview of electronic banking services of Vietcombank 33 2.2.3.Current situation of mobile banking deployment at Vietcombank .37 2.3 Empirical assessment of customer acceptance of mobile banking 49 2.3.1 Methodology of the survey 49 2.3.2 Composition of Survey Participants 49 2.3.3 Customer Perception of Mobile Banking 50 CHAPTER III: SUGGESTIONS AND RECOMMENDATIONS TO DEVELOP MOBILE BANKING SERVICES AT VIETCOMBANK .53 3.1 Diversify products and services of mobile banking 53 3.1.1 Bank – led model 53 3.1.2 Partnership model of bank and telecommunications company 55 3.2 Improve management and supervision capacity to ensure mobile banking services quality 55 3.2.1 Steps in management activity of mobile banking 56 3.2.2 Enhance the sale management activity of mobile banking 56 3.3 Increase product promotion and advertisement .62 3.3.1 Advertisement on mobile phone 62 3.3.2 Advertisement on Facebook 62 3.3.3 Advertisement in application such as film, game, newspaper run in mobile phone 63 3.4 Develop the security and privacy technology 63 3.5 Promote the cooperation relationship with mobile network providers .64 3.6 Expanding customers network, improving customer service quality .64 3.7 Recommendations 65 3.7.1 With State Bank of Vietnam and other authorities .65 3.7.2 With board of managers of VCB .67 CONCLUSION 68 REFERENCE APPENDIX LIST OF ABBREVIATIONS VCB: Joint stock commercial bank for foreign trade of Vietnam Vietcombank: Joint stock commercial Bank for Foreign Trade of Vietnam SBV: State Bank of Vietnam ATM: Automated Teller Machine WAP: Wireless Application Protocol LAN: Local Area Network SIM: Subscriber Identity Module GPRS: General packet radio service UMTS: Universal Mobile Telecommunications System 3G:  Third-generation technology E- Commerce: Electronic commerce USSD: Unstructured Supplementary Service Data HTML: Hypertext Markup Language ACB: Asia Commercial Bank VIB: Vietnam international Bank HD Bank: Ho Chi Minh City development joint stock commercial Bank M-Commerce: Mobile commerce SMS: Short Message Service PIN: Personal Identification Number SAT: SIM Application Toolkit LIST OF TABLES AND FIGURES Table 1.1: Classification MB services based on how information flows Table 1.2: Services in Mobile Accounting .9 Table 1.3: Services in Mobile Brokerage .10 Table 1.4: Services in Mobile Financial Information .11 Table 2.1: Methods Launch Mobile Banking 27 Table 2.2: The features are implemented through SMS Banking 28 Table 2.3: The features implemented by means of downloading applications, webbased 29 Table 2.4: Features and fees of mobile banking services at VCB 38 Table 2.5: Promotion programs of MB at VCB .40 Table 2.6: VCB Mobile – B@nking Bubgeting .46 Chart 1.1: Account penetration in the world by area 24 Chart 1.2: Proportion of mobile phone penetration in comparison with banking services 25 Chart 2.1: Registered customers of BankPlus services 31 Chart 2.2: Penetration rate of E-bank services .35 Chart 2.3: Number of transactions and average transaction value/month year 2003 .36 Chart 2.4: Net income proportion of E – banking 2003 36 Chart 2.5: Results of VCB SMS banking 42 Chart 2.6: SMS banking profit and number of SMS 43 Chart 2.7: Number of customers using services .44 Chart 2.8: Propotion of transactions of VCB - Mobile iB@nking 45 Chart 2.9: Number of customers registing Bankplus services .46 Chart 2.10: Market share of Bankplus service .47 Chart 2.11: Types and number of transactions performed via BankPlus 48 Chart 2.12: Overview of Survey Participants’ Net Monthly Income in VND 50 Chart 2.13: Advantages of Mobile Banking 51 Chart 2.14: Disadvantages of Mobile Banking 51 Chart 2.15: Preferred Mobile Banking Applications 52 Figure 2.1: Development timeline of Mobile Banking at VCB .34 Figure 3.1: Sales Process .58 PREFACE Study background Today, with the development of technology, mobile phone has become more and more popular than ever before On average, each person possesses a mobile phone Because of advantages such as portability, easy integration with high technology into, service providers have cooperated to introduce many modern services with superior features through mobile phone with a view to meeting the higher and higher demand of customers Besides, the number of people who have bank account increase more and more together with the higher demand for shopping, making payment, and the popularity of mobile phone create the modern payment method, which is Mobile Banking Mobile banking is a service that provides electronic banking solution through mobile phone channel allowing customers to conduct e-banking services including but not limited to financial and non – financial transtions on account, bank card These transactions are made very fast, convenient and safe by applications on mobile phone (Mobile Client) or browser on mobile phone (Mobile Web) Mobile banking application in banking section has been deployed widely around the world for many years, however, in Vietnam Mobile Banking has just started by commercial banks in the recent years Mobile banking transactions have just stopped at information inquiry, money transfer, recharge phone, game accounts, etc The other complicated transactions such as bill payment, air ticket buying, stock transactions, insurance premium payment, hotel booking, etc are just very primative In the strong development trend of e-commerce and mobile commerce, along with a legal framework to support this trend, it has shown that Mobile Banking is the right way of the development for banks, which want to develop modern distribution channels, increase utility, strengthen competitiveness and bank image for current customers and potential customers At VCB, electronic banking services via mobile phones have had fundamental services such as VCB-SMS B@nking, VCB-Mobile Banking, BankPlus Current needs of customers using other sophisticated features on mobile phones is very high Therefore, deriving from the practical demand for development of modern Mobile Banking at VCB, the author chose the topic “Develop electronic banking services through mobile communication network - Mobile banking at Vietcombank", which will be significant in terms of theory and practice with a view to meeting the demand of the whole VCB systems in developing a new modern superior service distribution channel The objectives of study The thesis is subjected to the following objectives: - Analyze Mobile Banking models in the world - Analyze development situation of e-banking services through Mobile Banking of Vietnam - Suggest oriented development models of Mobile Banking at VCB Subjects and scope of research The research subjects of this thesis is the development models of Mobile Banking applications in retail banking section in the world and Vietnam Besides, the thesis also research on the real suitation of electronic banking services development through mobile communication in Vietnam and Vietcombank The content scope of this thesis is the Mobile Banking services activites and features of VCB The space scope is Vietcombank Finally, the time scope is from the year 2001 to the end of 2013 Methodology and sources of materials In order to obtain the objectives of thesis, the author applied these following research methods: - Data collection method: + Collect secondary data from tables, reports of retail banking department at VCB + Collect information from newspapers, magazines, internal news of banks, communication with staffs, who are directly working on Mobile Banking services + Collect primary data through a survey in order to examine the degree of customer acceptance for various Mobile Banking services and the customer’s willingness to pay for them - Data analyzing method: + Use a descriptive statistical methods, analysis, synthesis methods of measurement, description and presentation of the data from which to draw conclusions based on the data and information collected Descriptive statistics use the method of charts, graphs and data aggregation methods to summarize data, highlight important information Structure of the thesis In addition of preface, conclusion and reference, the thesis includes chapters as follows: Chapter 1: Literature framework about Mobile Banking Chapter 2: Current situation of Mobile Banking deployment at Vietcombank Chapter 3: Suggestions and recommendations to develop Mobile Banking services at Vietcombank CHAPTER 1: LITERATURE FRAMEWORK ABOUT MOBILE BANKING 1.1 Definition of mobile banking Is mobile banking a subset of Internet banking (Muller - Veerse (1999)? Whereas, it is true in some aspects, this definition is too narrow to include all features of mobile banking In this paper mobile banking definition is derived from the definition of the broader category of mobile commerce, which in turn is a subcategory of electronic commerce The definitions of electronic commerce, electronic business, and the related business models are constantly evolving Following both academic and industry based literature sources, Mitchell (2001) defines electronic commerce as “much more than buying and selling on the internet: electronic commerce is about doing business electronically, both within enterprises and externally, using computer networks and mobile communications” This definition is general enough to be used as a reference point Mobile commerce and mobile banking are discussed in the next two subsections - Mobile commerce The phrase mobile commerce was originally coined in 1997 by Kevin Duffey to mean “the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology” Many choose to think of mobile commerce as meaning "a retail outlet in your customer’s pocket." Mobile Commerce bears the unique characteristics not found in any traditional forms of commerce as follows: Ubiquity: Ubiquity means that the user can avail services and carry out transactions largely independent of his current geographic location (“anywhere” feature) This feature can be useful in many situations, e.g to cross-check prices while standing in a supermarket or while one the move Immediacy: Closely related to the feature of ubiquity is the possibility of real-time availment of services (“anytime” feature) This feature is particularly attractive for services that are time-critical and demand a fast reaction, e.g stock market information for a broker Additionally, the consumer can buy goods and services, as and when he feels the need The immediacy of transaction helps to capture consumers at the moment of intention so that sales are not lost in the discrepancy between the point of intention and that of the actual purchase Localization: Positioning technologies, such as the Global Positioning System (GPS), allow companies to offer goods and services to the user specific to his current location Location based services can be, thus, offered to meet consumers’ needs and wishes for localized content and services Instant connectivity: Ever since the introduction of the General Packet Radio Service (GPRS) mobile devices are constantly “online”, i.e in touch with the network (“always-on” feature) This feature brings convenience to the user, as timeconsuming dial-up or boot processes are not necessary Pro-active functionality: M-Commerce opens, by the virtue of its ability to be immediate, local and personal, new avenues for push-marketing, such as contentand product offers Services like “Opt-in advertising" can be offered, so that a user may choose the products, services and companies, which he wants to be kept informed about The Short Message Service (SMS) can be used to send brief text messages to consumers informing them of relevant local offerings that best suit their needs This feature ensures that the “right” (relevant) information can be provided to the user at the “right” place, at the “right” time The user too does not have to fear missing some potentially crucial information or getting it too late Simple authentication procedure: Mobile telecommunication devices function with an electronic chip called Subscriber Identity Module (SIM) The SIM is registered with the network operator and the owner is thus unambiguously identifiable The clear identification of the user in combination with an individual - Information provision: VCB ask all employees to provide full information about cross-selling products correctly and to remove the problems that customers are facing and need to be settled No customer complains about the staff when consulting and during transactions - On sale: Let customers know the products, believe in the VCB and salesman then decide to use the products and services - The implementation of the services after the transaction: The most important thing is to make customer satisfied and trust in the VCB There is no customer complaining about the product or the attitude of the staff - Information collection: All employees in cross-selling forces must have monthly statistics information of existing customers, potential customers and markets, which will be sent to the head of transaction offices In addition, monthly statistics, which is on current products, new products and business practices of the rivals, especially the Joint Stock Commercial Banks, must submitted to the head of departments or branch directors - The contribution of strategies: Staffs must be enthusiastic at work, have a high sense of responsibility, contribute to the cross-selling strategy 3.2.2.2 Develop strategies for cross-selling force For the issue of resource allocation, VCB allocate staff in team or individual depending on each situation to have suitable approaching to customers - Sales Representative with a client: sales representatives discuss issues with a prospective client directly or indirectly - Sales Representative with customer groups: VCB assign one or a group of employees to meet, consult and transaction with a customer group wishing to use the financial services of bank - Sales conference: the sale conference is organized monthly by staffs in crossselling force - Sales workshop: the organization of workshops with clients quarterly about information of VCB, the existing products, new product and possible products in the near future 57 3.2.2.3 Develop cross-selling force structure: -People who work full time for VCB are official staffs All of them are allocated in branches, transaction offices in economic zones that VCB chose through Vietnam Employees in branches, transaction offices of VCB are divided according to their specialization, responsible for one products or a group of products - Cross selling staffs who are not VCB official staffs, are important in the success of cross – sale They are staffs at transaction points of bank’s partners They introduce, consult about VCB products to customers Process of cross-selling Figure 3.1: Sales Process Exploration and refinement Approach End of transaction Preliminary Approach Monitor and maintain Introduction and Demonstration Overcoming feedback (Source: Marketing Management - Philip Kotler) The first is the exploration and refinement This step is the detection of prospective customers and partners to participate in cross-selling activities The cross selling representative should build a target customers List of target customers can be built in the following ways: + Ask existing clients about the prospective customers + Take advantage of other reference sources, such as bank‘s partners, associations of industries, + Do research on the data sources (newspapers, directories) to find customers + Use communication tools such as phone call, email, invitation via the Internet + Direct contact with customers and target customer groups Cross selling staffs need skills in refining bad customer, basing on their financial 58 capability, demand, wishes,… The second step is the preliminary approach Cross selling staffs have to research on the target individual customers and corporations in VCB target customers (what they need, who will make the decision,…) Cross selling staffs need to clarify time, purposes to meet customers and meeting strategy with specific chosen customers The third step is the approach In the first meeting, sale staffs should build sympathy with customers This problem is related to the appearance, the opening words in meetings, how to communicate with gestures and words The forth is the introduction and demonstration step Cross selling staff needs to introduce about services, products, which can be cross sold according to AIDA model AIDA stands for attention, interest, desire, and action On meeting, cross selling staffs can use other supported tools such as: brochures, product catalogs, statistical tables,… The fifth step is overcoming customer feedback Typically, customers often compare banks with each other when using financial services Therefore, cross selling staffs need to be trained to have skills in making transaction and negotiation In the sixth step, transaction comes to the end In order to end up a transaction successfully, cross selling staffs have to know the signals of agreement of customers and partners Staffs need to know how to urge them smartly to decide Communication and listening skills are very important in this step VCB should train these skills carefully for staffs The seventh step is to continue monitoring and maintaining relationship with customers When customer have chosen service products, cross selling staffs must continue monitoring and give solutions and advises customers to use more services 3.2.2.4 Target customers of Telco Led model – Mobile BankPlus Mobile BankPlus service is the service cooperated between VCB and Viettel, hence, in order to develop services, it is necessary to take advantage of both VCB and telecommunication companies The thesis suggests several solutions to develop the target customers using 59 Mobile BankPlus deriving from sale activities as follows: - Focusing on customer group, who are staffs of businesses paying wages through VCB: + Mobile BankPlus services are considered suitable for mass customer segment, which is lower than the Mobile Banking services (Bank Led Model) Those are not familiar with high technology, customers, middle-aged people, workers in the industrial zone, the low-income workers, students, farmers, etc + Hence the first step in the work offering Mobile BankPlus widely is focusing on customer group who are paid through VCB It must be suitable way and fastest way to boost the number of customers using services at the lowest cost + Thanks to the strength of sales staff working directly to customers of Viettel, Viettel and Vietcombank branch will work together to coordinate to sell services, at which staffs of Viettel will approach customers on behalf of VCB - Focusing on student group of customers: + Since the foundation, Viettel had objective to become cheap mobile network, focusing on medium and low income customers (accounting for 90% of Vietnam population) About customer strategies, Viettel search for new market segments such as: customers who have high demand of answering calls (Tomato package), young customers who like the use of value-added services on mobile phone platform + VCB have been known as a whole saler, however, since 2010, VCB have had strategies to develop retail banking VCB considers retail banking development as one of main objectives for sustainable development Therefore, learning from the experience of Viettel in retail market is necessary for VCB In 2013, VCB have deployed “Pay tuition fee online” subjected to student customers However, the approaching schools and students by VCB faces many difficulties Therefore, in order to develop BankPlus as well as “Pay tuition fee online” services, VCB can cooperate with Viettel in approaching and developing by ways The first one is to develop end users as students, and the second one is to develop 60 account relationship and connect with university Developing customers as students, VCB must build cooperation relationship with university, and bring favorable programs for students For example, VCB and Viettel organize student day (music festival, services exhibition,…) with many incentives for students such as account opening, card opening, BankPlus registration, to attract students 3.2.2.5 The sales process and customer consulting: The current biggest obstacle of VCB - MobileB @ nking is that most customers not know how to use and download the application on mobile devices Therefore, the first task is to promote consulting and guidance for customers at the counter - Sale staffs need to be fully equipped with tools supporting sale activities Each officer who conducts the registration of electronic banking services for customer should be equipped with a mobile device (smart phone or tablet) to proactively display services and make guidance for customer - Sales process at bank counter: + Step 1: When customer come to banks to perform other transactions, bank staff actively introduce VCB – Mobile Banking services with may superior utilities for customers + Step 2: Customers agree to be introduced about VCB - MobileB @ nking + Step 3: Bank staffs introduce the features of services on mobile devices and guide customer how to use + Step 4: Customers fill in services application form + Step 5: Officers register services for customers in the system + Step 6: Officers help customers to download the application and activate right at the counter Internet sales process: Create a website, which is linked to VCB official website, used specifically for VCB - MobileB @ nking 61 3.3 Increase product promotion and advertisement With the fact that Vietnamese people still have habit of cash payment at the present, promotion and advertisement of modern banking services and especially mobile banking service is very important For mobile banking services, the target customers are those often using internet, mobile application for updating information, social networks, then boosting mobile banking service promotion on mobile devices must be effective strategy 3.3.1 Advertisement on mobile phone 3.3.1.1 Preferred conditions for mobile phone advertisement The fact have proved that for the past years in Vietnam, the number of smart phones have increased dramatically with diversification of types and a wide range of prices for many market segment A variety of cheap smart phones coming from Samsung, Nokia, LG… has been sold in Vietnam, which makes it easy to possess a smart phone According to the latest statistic of Vietnam e – commerce and information technology agency belonging to Ministry of Industrial and Trade (http://www.vecita.gov.vn/), the smart phone user‘s proportion out of total population is 20% Moreover, based on the survey of InMobile, 35% Vietnamese people agree that mobile devices is their favorite media channel and it has trend of strong development in near future The decline of traditional media channels such as newspapers, radio, laptop, TV also boosts the development of mobile devices 3.3.1.2 Target customers - The target customers are those often use Facebook, newspaper application to update news - Besides, customers are using mobile devices such as mobile phone or tablet, which use operation systems such as iOS and Android 3.3.2 Advertisement on Facebook Facebook is currently the most popular network in the world with 1.2 billion active users In Vietnam according to http://www.vecita.gov.vn/, 38% of population 62 are using social network Therefore, today bank cannot ignore the development and domination of social network, and advertisement on facebook is the first choice of mobile devices channel Ads allows you to filter the users by age, gender, geographic area, devices, operating system and each specific version When users access Facebook application on the mobile device, tablet using iOS or Android, they will see ads with the "Install" or "Install Now" Mobile Banking application and by clicking on the ads, customers will be led to the application page on the app Store or Google Play Store Then customers can download Mobile banking application and set up very easily 3.3.3 Advertisement in application such as film, game, newspaper run in mobile phone Currently companies which manage operating system Android, iOS provides services allowing to run ads on their applications When users are watching a movie, reading newspapers, or playing games on phone, they can immediately see ads picture of Mobile Banking service with the button "Install" or "Install Now" If they click on these buttons, they will be directed to the application page on the app Store or Google Play Store and download them With these advertisements, the service will be introduced to customers proactively to help customer access and download the application to their devices 3.4 Develop the security and privacy technology Security issues in electronic payments have long been considered a vital issue to be taken into account when the bank develops a new type of service Mobile banking brings many benefits, convenience, especially in helping customers make payment through mobile transfers quickly Beside these benefit, the security issues should be prioritized for development Only when ensuring the safety of the payment system, can bank ensure a sustainable development of the Mobile banking services To enhance security, the bank should increase investment in infrastructure development, infrastructure of information technology in banks The Bank should 63 strengthen experience of security in the countries, which have developed Mobile banking services in particular and electronic payment services in general 3.5 Promote the cooperation relationship with mobile network providers The cooperative relationship between banks and network supplier will help banks develop diversified mobile banking services, meeting the needs of the user Furthermore, this relationship also brings more benefits for banks By this way the bank take advantage in the use of critical property of the network, take coverage cellular area of the wireless mobile network operator, which can be used for expanding the scope of banking activities Banks will also benefit from the distribution network of the mobile phone, use these branches as the agent banks 3.6 Expanding customers network, improving customer service quality Firstly, banks need research market to expand the client network Client network should not be limited to the high -income customers, but bank must aim to many different types of customers Especially potential customer groups such as groups of young people, low and middle income customers (the majority of the population) Next, banks are trying to find, develop new services, which brings many benefits to the customer In a competitive environment at the present, most banks are offering new services The bank which provides services with the best quality will keep its position in the market, maintaining the faith of customers and attracting more new customers To ensure the quality of services in addition to technological solutions, product diversification, trained professional staff, qualified professional knowledge and skills better, banks also need to perform these following steps The first is to build a standard of customer service Secondly, customer policies must be prepared carefully Finally, bank should build channels to solve complaints and customer inquiries Second, build customer policy Third, build channels resolve complaints and customer inquiries 64 3.7 Recommendations 3.7.1 With State Bank of Vietnam and other authorities State Bank of Vietnam plays as the direct controlling role to commercial banks and adjust monetary policies Therefore, the mechanisms issued by SBV always have great impact on the development strategies of banks as well as retail banking services Currently, there is non – cash payment decree and decree of regulation on the operation of payment intermediaries However, in order to have a clear and transparent legal framework for bank and other non – cash payment services providers, which includes Mobile Banking, SBV should issue circular guiding above decrees In addition, with a view to promoting transaction channel through Mobile Banking, SBV need to conduct these macro policies as follows: 3.7.1.1 Creating a favorable environment for information technology application and development of mobile banking services Firstly, SBV and other authorities should check and remove any inappropriate regulation, create the most favorable conditions for the application and development of information technology, and implementation of strict management measures Secondly, it needs to standardize information and information system in every area, which ensures necessary conditions for the exchange of data base, domestic and international information systems There must be specific regulation about safety and security information Thirdly, authorities should complete and execute legal documents, especially the law on protection of intellectual property rights including copyright protection for service 3.7.1.2 Accelerate the building of national information network Authorities should accelerate the building of national information network to meet the short and long term demand of society The absence or lack of information on the market as well as the basic characteristics of the market is a matter in 65 Vietnam banking system for a long time, creating challenge for making the decision with little information, leading to inaccurate or untimely decisions The creation of a full sanction of standardization as well as publicizing the information will support commercial banks in the development of banking services in general and retail banking services in specific 3.7.1.3 Creating stable and favorable macroeconomic environment The lack of standardization in the banking services development process of commercial banks is derived from unexpected volatilities of macroeconomic policies These volatilities create challenge forcing banks to make unsuitable decision for market and customers’ demand Therefore, the stable macro economics is an important tool supporting commercial banks to build strategies actively 3.7.1.4 Promote the development of information technology application in modern banking services The strong development of science technology creates a new trade method, which is electronic commerce This trade method is suitable for intangible goods and services, which have more and more demand for E – commerce makes the world economy more dynamic, which boosts the integration process of country as well as the integration of banking payment systems in Vietnam and in the world In order to improve the application of information technology in modern banking service development, our government should perform these following suggestions Firstly, government ought to promote the development of modern services, have favorable conditions for investors, financial institution, people who business online Then this creates the demand for trade exchange, payment, The potential customers of electronic banking services come from these demand Secondly, e – commerce law should be issued, which must be suitable with the world e– commerce law and e – commerce agreement that Vietnam committed to Thirdly, government should build and complete the legal documents systems, laws and decrees, which manage the e – commerce activities Then we have the legal framework to settle disputes Moreover, the standard and legal base for electronic documents, signature and certification should be built 66 Finally, with a view to creating the condition for electronic documents coming to real life, we need to build a system of organizations, control agencies, which provide, verify the electronic signature and certification A data processing center ought to be built in order to certify the electronic documents In general, the information technology application is the inevitable trend for the modernization of retail banking 3.7.2 With board of managers of VCB There must be constant monitoring the development of modern banking services VCB board of managers should consider this development as the vital significance creating the strong platform for increasing competition capacity of bank 3.7.3 With directors of branches With responsibility of direct service deployment, as well as " outposts " in the battle to compete with rivals in the distribution market of retail banking services today The branch manager should: - Get a deep knowledge of the role of research and development services to business results of the branch, to contribute actively, practically with the highest sense of responsibility for the retail banking services including VCB Mobile banking - Pay attention and show viewpoints clearly as well as the objectives of sevice deployment - Suggest ideas actively with head office about services and whereas, always try to find out effective solution for real service deployment, which is suitable for area and branch operation 67 CONCLUSION After investigation, research, and access real situation of construction and development of mobile banking at VCB, it can be seen that VCB has creates first steps in banking services development through mobile phone However, VCB should develop this service more, focus on sale activities, promotion of this new modern services to customers In the fierce competition battle of retail banking market, especially when this battle have the appearance of big branch coming from many countries in the world such as HSBC, Commonwealth, ANZ, Standard Charter Bank , and domestic commercial banks, which are changing actively for development, VCB are facing big challenge in order to keep high position as the leading bank of Vietnam Basing on difficulties that VCB are facing, the author has suggested a system of solution to solve challenge and enhance the effectiveness and quality of Mobile banking services 68 REFERENCE Books and papers: Andrew D Mitchell, 2001, “Towards Compability : The Future of e-commerce within the global trading system”, Journal of International Economic Law Dan McGowan, 2010, “Trends in Electronic Banking, Spring 2010”, http://www.theraddonreport.com/?p=4636 Demirguc - Kunt and Klapper, 2012, “Measuring Financial Inclusion”, Policy working paper of World Bank http://elibrary.worldbank.org/doi/pdf/10.1596/1813-9450-6025 Müller-Veerse, 1999, “Mobile Commerce Report”, London: Durlacher http://www.durlacher.com/research/resrepdetail20.asp Peter Rose, 1998, “Commercial Bank Management” Rainish Tiwari – Stephan Buse-Cornerlius Herstatt, 2006, “Mobile Banking as Business Strategy” Đỗ Văn Hữu, 2005, “Mobile Banking – Thị trường phát triển tiềm năng”, Học viện Ngân Hàng Annual reports, 2012, 2013, Retail Banking Department, Vietcombank Government, 2012, “Decree No 101/2012/NĐ-CP about non – cash payment” Government, 2013, “Decree No 52/2013/NĐ-CP Date 16/5/2013 about Ecommerce” Websites: http://www.vecita.gov.vn/ http://www.go-gulf.com/ https://www.vietcombank.com.vn/ http://www.vietteltelecom.vn/ http://www.acb.com.vn https://www.mbbank.com.vn/ https://www.msb.com.vn/ https://www.viettinbank.vn/ https://www.vpb.com.vn/ https://www.vib.com.vn/ https://www.hsbc.com.vn/ APPENDIX PHIẾU ĐIỀU TRA Nhu cầu sử dụng dịch vụ ngân hàng qua điện thoại di động – Mobile Banking Giới tính bạn là?  Nam  Nữ Nghề nghiệp bạn  Bạn sinh viên  Bạn làm  Bạn nghỉ hưu Bạn tuổi  < 18 tuổi  18 – 22 tuổi  22 – 30 tuổi  >30 tuổi Mức thu nhập bạn  10 triệu đồng/tháng Những ngân hàng cung cấp dịch vụ mobile banking mà bạn biết?  Vietcombank  Techcombank  Viettinbank  HSBC  Maritime bank  Military bank  BIDV  Others Ngân hàng bạn sử dụng có cung cấp dịch vụ mobile banking khơng?  Có  Khơng  Khơng biết Bạn sử dụng dịch vụ mobile banking chưa?  Đã sử dụng  Chưa  Đã dừng sử dụng Theo bạn, lợi ích dịch vụ mobile banking gì?  Tính rộng khắp  Tính tức thời  Quản lý thông tin tài khoản dễ dàng Theo bạn, bất lợi dịch vụ Mobile Banking gì?  Khơng an tồn  Chi phí cao  Khơng tiện lợi  Khơng có bất lợi 10 Loại dịch vụ mobile banking vào bạn sử dụng? (nếu bạn chưa sử dụng, thử tưởng tượng theo sở thích nhu cầu bạn)  Dịch vụ liên quan đến tài khoản  Dịch vụ liên quan đến môi giới  Dịch vụ liên quan đến thông tin tài (Lãi suất, tỉ giá,…)  Khơng sử dụng ... practical demand for development of modern Mobile Banking at VCB, the author chose the topic ? ?Develop electronic banking services through mobile communication network - Mobile banking at Vietcombank" ,... Banking Chapter 2: Current situation of Mobile Banking deployment at Vietcombank Chapter 3: Suggestions and recommendations to develop Mobile Banking services at Vietcombank CHAPTER 1: LITERATURE... customers 1.3 Features and utilities of mobile banking services Features and utilities of mobile banking services that banks can provide depend on the development of mobile and telecommunication technologies