La hoangthingochue sum

PREFACE Reason of selecting topic of thesis - In theoretically In theory, there are many studies on banking services for premier customers and focus on private banking services in developed countries A number of studies have been made in the context of Lyn Biker (1996), Dimitris N Chorafas (2006), Maune David (2006) or specific aspects of Grzegorz Tomasz (2004), Pascal Foehn (2004), Datamonitor (2005) on customers of private banking services; In particular, Lassar et al (2000), Horn and Rudof (2011), Seiler (2011), Krume (2013) and Seiler and Rudolf (2014) studied and tested the model for assessing the quality of private banking services and measuring customer satisfaction in private banking services These studies, although providing quite adequate information on private banking services, have not studied the indicators of the development of this type of service (in terms of both quantity and quality) at overall On the other hand, these studies are based on information from surveys conducted mainly by banks in developed countries in North America, Europe (Switzerland, Britain, France, Italy, Germany and some emerging countries in Asia (Singapore, Japan, Korea, India ) These countries have developed economy, great customer value, specialized and modern banking services Therefore, the assessment may not be suitable for a developing country like Vietnam Meanwhile, in Vietnam, there are only a few studies on banking services for premier customers and research at the master's level (such as Nguyen Thi Thai Ha (2009), Nguyen Thu Trang (2013), Nguyen Tri Thuc (2016)), hence, are mainly descriptive and limited within the scope of a bank, not comprehensive and show the rule of development of banking services for premier customers in general - In practically Banking services for premier customers in Vietnam have been officially launched in 2008 by a number of foreign banks (HSBC, Standard Chartered Bank, ANZ) Although it has brought a significant source of revenue for commercial banks in Vietnam but still limited in both quantity and quality and not met the demand of premier customers are increasing in recent time In the context of rapid and widespread bank restructuring, the competition has become fiercer and commercial banks in Vietnam are well aware of the development of banking services for premier customers lasting Therefore, commercial banks in Vietnam should consider developing banking services for premier customers as an important direction in the development strategy But how does this service evolve and how to develop is a problem that needs to be addressed Leading from the theoretical gaps and contributing to the practical requirements, the topic "Developing banking services for premier customers at commercial banks in Vietnam" is selected by the author to research Objectives of research The research objectives of the thesis include: - Interprete the theoretical issues of premier customers, banking services for premier customers and developing services for premier customers at commercial banks In which, determining the criteria for assessing the development of banking services for premier customers at commercial banks and factors influencing the development of this service - Analyze and assess the development of banking services for premier customers in commercial banks in Vietnam in terms of both quantity and quality - Analyze and verify the factors affecting the development of banking services for premier customers at commercial banks in Vietnam to find out the reasons for promoting or limiting the development of this service at commercial banks in Vietnam - Propose and recommend solutions to develop this service at commercial banks in Vietnam in the coming time Subject and scope of research - Subject of research: The development of banking services for premier customers (individual customers only) at commercial banks (concepts, indicators of development and factors affecting to the development of banking services for premier customers) - Research scope: The development of banking services for premier customers at commercial banks in Vietnam (including 14 commercial banks currently providing banking services or packages exclusively for premier customer in Vietnam) In particular, the thesis focuses on indicators of the development of banking services for premier customers in terms of quantity and quality, standing on the perspective of commercial banks Research questions In order to achieve reseach objectives, specific following questions should be answered: (1) What is premier customer? Which criteria to identify premier customer at commercial banks in Vietnam? (2) What is the banking service for premier customer at commercial banks in Vietnam? What are the major services? (3) Which scale is suitable for measuring the development of banking services for premier customers at commercial banks in Vietnam? (4) What factors affect the development of banking services for premier customers at commercial banks in Vietnam? (5) How are banking services for premier customers at commercial banks in Vietnam developing? (6) Which solution develops banking services for premier customers at commercial banks in Vietnam in the coming time? Methodology The thesis uses a combination of qualitative research methodology and quantitative research methodology to enable in-depth analysis of indicators as well as factors affecting the development of banking services for premier customers at commercial banks in Vietnam Contribution of the thesis Theoretical contribution - The thesis gives a number of criteria for determining "premier customers", including customers’ income criteria or asset value at banks (deposit balance, investment value, and insurance) In addition, these customers have to directly use banking services for premier customers and are associated with the bank's profitability (large contribution to profitability and/or the bank's asset size) - The thesis provides a theoretical point on "banking services for premier customers" with different characteristics from retail banking services, namely privacy, utilities, absolute confidentiality and being well-recognized in the market - To assess the development of banking services for premier customers in terms of quality, the thesis integrates and develops a model for assessing premier customers’ satisfaction with the banking services based on the researches by Seiler (2011), Krume (2013), Seiler and Rudolf (2014) with the following factors: accessibility to banking services, facilities, scope of services provided, quality of investment consultancy, safety and confidentiality of the services, asset portfolio results, relationship managers and service price (the safety and confidentiality factor is added by the author) - Using research sample with 42 observational variables, the thesis shows that only five factors affecting the development of banking services for premier customers at commercial banks in Vietnam in the same direction (in order from strong to weak), including: service price, relationship managers, accessibility to banking services, safety and confidentiality of services, quality of investment consultancy In addition, the thesis also points out that the demographic factor (the value of bank deposits) affects the satisfaction of premier customers in the opposite direction that the higher the value of bank deposits, the stricter the demand for banking services by premier customers New proposals drawn from research results Những kết nghiên cứu thực trạng phát triển dịch vụ ngân hàng The results of research on the state of development of banking services for premier customers at commercial banks in Vietnam and factors that promote or limit the development of this type of service will help the management boards of commercial banks and regulatory agencies to have best solutions to develop banking services for premier customers at commercial banks in Vietnam Among which, the bank management should focus on improving the quality of human resources (the qualifications and skills of relationship managers); have a suitable and attractive price policy; enhance the confidentiality and safety of the services; diversify the channels of accessing banking services, especially the channels using modern information technology; improve the quality of investment consultancy; continuously innovate the services provided to make a difference and have an appropriate customer segmentation policy In order to implement these solutions, the Government and related agencies should create mechanisms and policies to stabilize the socio-economic environment; at the same time, the State Bank of Vietnam needs to have orientation to develop banking services for premier customers in the long term and complete the legal framework for new, modern services/products as well as procedures for management and risk supervision in providing these specific services Structure of the thesis Besides the opening and conclusion, the thesis is composed of four main chapters: Chapter Theoretical basis and research overview of development of banking services development for premier customers at commercial banks Chapter Methodology of thesis research Chapter Performance of development of banking services for premier customers at commercial banks in Vietnam Chapter Solutions to develop banking services for premier customers at commercial banks in Vietnam CHAPTER THEORETICAL BASIS AND RESEARCH OVERVIEW OF DEVELOPMENT OF BANKING SERVICES FOR PREMIER CUSTOMERS AT COMMERCIAL BANK 1.1 Overview of banking services of commercial banks 1.1.1 Concept and characteristic of commercial banks 1.1.2 Banking services of commercial banks 1.2 Banking services for premier customers of commercial banks 1.2.1 Premier customer 1.2.1.1 Concept of premier customer In general, in comparison with other countries in the world, premier customers at commercial banks in Vietnam has much lower asset values and diversified criteria (based on deposit value, credit card spending, value of investment, insurance or loan ) and depending on the objectives, scale and financial capacity of each bank (average value of deposit at banks normally from 01 billion or more) According to the author's point of view, the determination of premier customer based on the value of deposits, value of investments, insurance at banks shows the financial potential of customers It can be determined immediately and almost get no risk The case of determining premier customer by credit card spending or value of outstanding loans is not really reasonable because the bank gives advance and get payment from customers after spending Although based on customer income or mainly collateral at banks, these assets are mostly non-financial assets and their liquidity is not high, so their underlying weakness risk factor On the other hand, determining premier customer based on the criteria of outstanding loan is easy to be mistaken for ordinary customers (many cases of loans for low-income houses can also have a high loan value of over VND1 billion ) The author also argues that premier customer should not be identified as an indirect client for the bank's reputation and political status (for example, political leaders) because this criterion is very qualitative and difficult to accurately determine the level of influence of these individuals as well as the profitability of the bank Therefore, premier customer is an individual who has assets (deposit balance, value of investment or insurance) or individual income level that meets the requirements of each bank, directly uses banking services for premier customer and bring a large and stable asset to the bank 1.2.1.2 Characteristic of premier customer Most premier customers are entrepreneurs - who have stable incomes from their own businesses The premier customer has a good education foundation, which is capable of directly researching market information and making accurate decisions They are always interested in different forms of investment and may be customers of more than one commercial bank However, premier customers usually delegate through banks to make their decisions and seek good banking advice to add value to their assets In addition, these customers have a distinctly different lifestyle, they often use premier services for individuals and families and always require fast service, on-site service and exceptional customer service with confidential information However, when satisfied with the bank, premier customer can be very long-term with the bank and create a very significant profit for the bank 1.2.1.3 Demand of banking services of premier customer The demand of the premier customer is often varied and complex, ranging from simple needs such as depositing money, paying for business development or accumulation to investment, asset management, or consumption in conjunction with personal life (luxury goods, high-level recreation, entertainment ) 1.2.2 Banking services for premier customer of commercial banks 1.2.2.1 Concept Banking service for premier customer has very different characteristics compared to conventional services In general, banking services for premier customers are all types of banking services or a package that commercial banks provide to premier customers to meet their needs and ensure the following characteristics: privacy, utilities and absolute security Besides, the brand name of banking services also has well-recognized in the market At present, the level of development of banking services for premier customers in different countries is also very distinct In developed countries like USA, France, Switzerland , banking service for premier customer is often called Private Banking Meanwhile, for a developing country like Vietnam, with the requirement to become a premier customer is lower than other countries in the world, this service has not reached the specialized level such as Private Banking and the bank has launched many other names such as Priority Banking or Premier Banking or Imperial Banking or First Class Banking 1.2.2.2 Kinds of banking services for premier customers - Basic banking services include: deposit, credit, payment - Typical banking services include: financial investment consultancy, asset management - Other services: insurance, retirement, tax planning, other utility services 1.3 Development of banking services for premier customers at commercial banks 1.3.1 Concept The author points out that the development of banking service for premier customer is based on two aspects: quantitative development and qualitative development, which means that "development is increasing the size and number of existing services as well as adding new services and enhancing the quality of service " 1.3.2 Indicator assessing development of banking services for premier customers at commmercial banks 1.3.2.1 Indicator assessing quantitative development of banking services for premier customers at commercial banks - Increasing the number of premier customers - Increasing the number of services for premier customers and proportion of using banking services of each premier customer - The level of increase in sales and profits for banks 1.3.2.2 Indicator assessing qualitative development of banking services for premier customers at commercial banks Quality of service is closely linked to customer satisfaction (Loveman (1998), Silvestro and Cross (2000)) Customer satisfaction is the most visible reflection of customers' quality of service If the quality of service is perfect, customers will stick with it and accept the bank, and measuring customer satisfaction is becoming increasingly important for the delivery (Scott and Brian, 1996) and is the key to long-term business success (Zeithaml et al., 1996) Customer satisfaction can retain customers (loyal to the bank) and thus bring profits to the bank (Jamal & Kamal, 2002) Therefore, the satisfaction and loyalty of customers with banking service for premier customer is considered as indicators to assess the quality of this service a) Theory of customer satisfaction and loyalty b) Proposing model to assess satisfaction and loyalty of premier customer with banking services for premier customers at commercial banks in Vietnam With different characteristics compared to conventional services, the author has based on studies related to specific characteristics of banking services for premier customers, namely private banking (studies of Seiler, Krume, Rudolf) , through a consultative process, experts have developed a model to assess the satisfaction of premier customers with banking service for them at commercial banks in Vietnam based on the following factors: (1) accessibility to banking services, (2) facilities, (3) scope of services provided, (4) quality of investment consultancy, (5) safety and confidentiality of the services, (6) asset portfolio results, (7) relationship managers and (8) service price In addition, the author adds more demographic factors to assess customer satisfaction 1.3.3 Factors affecting the development of premier banking services of commercial banks 1.3.3.1 Objective factors - Development of economy Economic growth and development contributes to increase personal income, especially a rapid increase in the wealth of individuals in society This is the premier customer that commercial banks pursue, thus contributing to increase the customer base for banks providing this service - Development of banking sector The development of the banking sector is also a factor promoting the development of banking services in general and banking services for premier customers in particular When the banking system develops safe, stable and sound, it will create confidence in customers and increase the number of customers using banking services On the other hand, if the banking system goes down, expansion activities of banking services may be limited to focusing on a more stable system restructuring - Social environment Social environment includes many factors such as social status, habits, psychology, education level, ethnic identity, lifestyle or other factors such as place of residence, place of work, etc It is important to identify the needs, goals and strategies for developing banking services for premier customers - Policies and laws of the State If the bank's capacity is needed then the law is the prerequisite for developing banking services The law is understood as the legal system of the State on banking activities and other related issues to banking services In the context of increasingly developed banking system based on modern technology and increasingly diversified customer needs, if the legal system is incomplete, comprehensive and synchronous, it will be a limiting factor The development of banking services in general and banking services for premier customers in particular or sometimes only a specific legal policy can have a great impact on this service 1.3.3.2 Subjective factors - Accessibility to banking services The more convenience and diversification of the channels for accessing banking services, the more premier customers can appreciate the convenience and professionalism of banking services, thus retaining the old customers and developing new customers for the bank The most popular channel providing services is the network of branches and transaction offices of banks Seiler (2011) argues that the convenience of banking access is an important manifestation of accessibility to banking services Besides, with the strong development of science and technology, banks have launched many electronic banking services that provided easy and convenient access to customers such as mobile banking, SMS banking, internet banking and so on Since then, commercial banks have been able to meet the needs of customer everywhere at anytime In addition to the above factors, the quality of contact between customers and banks is also one of the manifestations in the process of providing services of banks and increase the accessibility of customers - Facilities Currently, in addition to modern equipment, commercial banks have paid attention to the working space to ensure the privacy of their customers, creating the most comfortable and relaxing environment for the bank The more comfortable the bank facilities, the more satisfied customers are with banking services and thus affect the development of banking services for premier customers - Scope of services provided The perception of the scope of services provided has a positive and significant impact on the quality of service and customer satisfaction in private banking (Horn and Rudoff, 2011), in which services must be provided independently, separately and diversified in affiliation with the units to provide utility services to customers which has innovative and convenient, such as Accessibility to banking services Relationship Managers Demographic factors Facilities Scope of services provided Satisfaction Loyalty Quality of investment consultancy Safety and confidentiality of the services Asset portfolio results Service pricing Diagram 1.1 Model to assess the satisfaction of premier customers with banking service for premier customer internet banking, mobile banking, international payment services or global investment - Quality of investment consultancy The quality of investment consultancy is reflected in the fact that the bank makes recommendations consistent with each premier customer based on his information and expectation and analyzes and takes into account the risk factors and capabilities to bear the risk of the customer The higher the quality of investment advice has, the more the development of quality of banking services for premier customers increases - Safety and confidentiality of services: Safety is reflected in budget, in the application of modern technology and in the security of customer information When the financial market and information technology grows, confidentiality in banking becomes increasingly important and becomes a matter of survival By security technologies and measure solutions such as electronic signatures, line coding the safety of the services has been increasing The higher the security of the transaction, the better the trust of customers, retention of old customers and development of new ones - Asset portfolio results If the bank manages the customer's asset portfolio well and meet the expectation and profits for the customer, the first step is to motivate the customer to maintain the relationship with the bank, then bring significant contribution to revenue and profitability of the bank - Relationship managers Many studies have shown that customer satisfaction and loyalty in the service sector is highly influenced by human factors (Mittal and Lassar, 1996), Solomon et al (1985) With banking services for premier customers, relationship managers play a very important role in the supply chain because they are the only channel that connects customers and banks Therefore, relationship managers must have the knowledge, skills, caring and devotion to customers - Service pricing Trinh Quoc Trung (2014) argues that price is one of the most flexible elements of the marketing mixture, and when the product becomes more sensitive to price, it becomes the most influential factor to get turnover and profitability of the bank A good price policy will be the competitive advantage of banks in attracting premier customers and the reality is that they are willing to pay high prices for high quality and good services CHAPTER METHODOLOGY OF THESIS RESEARCH 2.1 Research frame work Development of banking services for premier customer In theoretically (1) Concept of premier customer and banking services for premier customers (2) Indicators assessing development of banking services for premier customers (in terms of quantity and quality) (3) Factors affecting development of banking services for premier customers (in terms of objective and subjective side) In practically (1) Situation of development of banking services for premier customers at commercial banks in Vietnam (through indicators assessing quantitative and qualitative development) (2) Factors promoting or limiting the development of banking services for premier customers at commercial banks in Vietnam Proposal and recommenda tion for development of banking services for premier customers at Diagram 2.1 Framework for research model 2.2 Research procedure Pointing out the issues Research overview Theoretical basis of the thesis Methodology Conclusion Analyze the results Collect information and data Diagram 2.2 Research procedure of the thesis Gap for rational and research questions 10 2.3 Research method 2.3.1 Qualitative research Qualitative research was conducted to test the suitability of the theoretical model and help to explore, adjust and supplement observational variables used to measure research concepts in order to ensure the construction scale in line with the theory of research For this dissertation topic, qualitative research was conducted through interviewing experts and in-depth interviewing 10 directors or managers of banking services for premier customers, namely: 2.3.1.1 Interview experts Based on previous studies and especially the scale of each factor tested in the Seiler (2011), Krume (2013) and Seiler and Rudolf (2014) studies on private banking, the Vietnamese version of the questionnaire (from the German and English versions of the scale inherited from foreign studies) was used to create the draft scale In fact, scales are set up in developed countries, so there may be areas that are not really suitable for a developing country like Vietnam Therefore, the authors have used qualitative research to be able to modify, supplement and improve the draft scale in the most appropriate way Accordingly, the author has consulted experts for the subjects including 02 managers of banking services for premier customers, 05 bank officers and 03 customers) Conclusions were made based on the synthesis of the general view of the objects, in which: + 06/10 people suggested to research and considered adding safety and confidentiality of the service + 07/10 did not see the strong impact of the presentation of portfolio results on their satisfaction + 08/10 people think that research should change the factor of service value into service price In addition, for each metric variable, experts have a number of corrections in terms of terms that can be adapted to the style of the Vietnamese, making it easier for premier customers to understand After synthesis and further research on complementary factors, the author provides a formal questionnaire with 10 variables and 42 observations to measure 10 variables Likert scale selection - points, which are commonly used in quantitative research to measure the development The specific question is to read the following statement and give your views on this matter and the answer is the agreement of the premier customer Each point in the scale will indicate the level of consent of the respondent with the viewpoint of the research, including: level - completely disagree; Level - Disagree; Level - Normal (neutral); Level - Agree; - Absolutely agree) 2.3.1.2 In-depth interview The author conducted in-depth interviews with relevant stakeholders – directors or managers of banking services for premier customers to collect 11 information, concrete evidence of the current situation and factors affecting the development of banking services for premier customers at commercial banks in Vietnam in terms of both quantity and quality (explaining better the information from the quantitative study), thereby proposing solutions for the development of banking services for premier customers at commercial banks in Vietnam Openended questions (semi-structured questions) and questioners were used and could develop more questions to explore more information on the basis of respondents' answers 2.3.2 Quantitative research Quantitative research was conducted to assess the satisfaction of premier customers with banking services for them to find out the factors that contributed to the satisfaction and loyalty of premier customers in terms of quality development of banking services for premier customers The quantitative research process is as follows: Official research N = 350 Cronbach Alpha EFA Adjust the research model - Eliminate variables have corrected item total correlation < 0.3 - Examine the Cronbach Alpha - Eliminate variables have loading factors < 0.5 - Examine the EFA of each factor Assess mean of each factor - Perception level of each factor - Level of centralization or decentralization of answers of premier customers Exam the consistence between results and theoretical basis Regressi on Diagram 2.3 Prodedure for quantitative research 2.3.2.1 Sample selection for research For the stury on banking services for premier customers, based on Comrey and Lee (1992), the sample size of 350 premier customers using this service at commercial banks in Vietnam, including Vietinbank, Sacombank, 12 Techcombank, ACB, HSBC, TPBank, VPBank (each bank randomly chooses 50 premier customers with a deposit of VND 01 billion or more) Sampling was based on randomly access between July and October 2016 However, because of the confidentiality of information for premier customers, questionnaires were sent or e-mail to customers with the help of relationship managers at commercial banks in Hanoi, Ho Chi Minh City that provide banking services for premier customers, including HSBC, VPBank, TPBank, ACB, Sacombank, Techcombank, Vietinbank These are banks with large numbers of premier customers, so the sample is representative of commercial banks in Vietnam 2.3.2.2 Data processing - Descriptive statistics - Verification of the reliability of the scale - Factor analysis - Model modifications and hypotheses (if needed) - Analysis of customer perception about each factor of the model - Analysis of correlations between factors - Regression of the influence of factors CHAPTER THE PERFORMANCE OF DEVELOPMENT OF BANKING SERVICE FOR PREMIER CUSTOMERS AT COMMERCIAL BANKS IN VIETNAM 3.1 Banking services of commercial banks in Vietnam 3.1.1 Overviews of commercial banks in Vietnam 3.1.2 Banking services of commercial banks in Vietnam 3.2 Performance of development of banking services for premier customers at commercial banks in Vietnam 3.2.1 Commercial banks provided banking services for premier customers in Vietnam Banking services for premier customers although formed long ago in the world is quite new in Vietnam Since 2003, the first commercial bank in Vietnam, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (VCB), has set up a Special Customer Division to serve individuals with average VCB deposit balances ranging from VND billion per year, but not yet developed into a specific type of service for premier customers with its own brand of banking sevices for premier customers In 2008, with the appearance of a number of wholly foreign-owned banks such as HSBC, Standard Chartered Bank, ANZ, banking service for premier customer was officially established in Vietnam In addition to traditional services, these banks have started to offer complex sevices for customers such as financial management, intensive investment consultancy, and insurance premiums retirement, family care for customers In particular, some services require a team of experts who have knowledgeable market to offer the best investment solutions for customers For domestic commercial banks, Techcombank is the first bank to provide banking services for premier customers, followed by a series of other commercial joint stock banks such as TPB - 2009, Sacombank - 2011, MB 2011, MSB - 2012, BIDV - 2014, Vietinbank - 2015 strongly developed so far However, some banks have implemented banking services for premier customers but have not implemented successfully or due to merger or consolidate with other banks (including East Asia, Hanoi House, Bao Viet, Mekong Delta ) Until now, most 100% foreign owned banks are providing banking services for premier customers (4/5 banks) Meanwhile, the proportion of local banks providing this service was 33% (10/33 joint stock commercial banks in Vietnam) 3.2.2 Types of banking services for premier customers at commercial banks in Vietnam - Deposit - Loan - Payment - Asset management, strutured products, stock investment, distribution of open-end fund, distribution bonds - Bancassurance - Other utility services 3.2.3 Analysis of criterias assessing development of banking services for premier customers at commercial banks in Vietnam 3.2.3.1 Criteria for assessing quantitative development of banking services for premier customers a The number of premier customers of commercial banks Banking service for premier customer only has formed in recent years but the number of customers increased rapidly In which, Sacombank (27 times higher than service launch time), VPBank (up 22 times compared to the time of launching service), MB ( up17 times more than than service launch time) b Number and proportion of using premier banking services At the time of formation, banking services for premier customers focused on deposit products, loans with preferential interest rates and fees, and provided for premier customer most products similar with retail services Then, along with the trend of specializing sevices for premier customers, banks continued to research, test and deploy more diversified sevices such as debit/credit cards, insurance products, investment products Therefore, the amount of sevices for premier customers at commercial banks tended to increase in recent years Beside the number of sevices for premier customers having positive changes as above, the proportion of using banking services for premier customers is also increasing For example, the proportion of using services for premier customers of MSB increased from 1.4 in the year of deployment (2012) to 3.15 in 2015; MB had 1.5 services from the year deployment (2010) to 2.7 13 14 services by 2015, respectively With BIDV, the bank implemented in 2013 with the rate of 5.2 services having increased to services on average in 2015 c Sales and profitability of banks Banks have strong deposit growth over the past year, such as VPBank (up 8x), MB (up 23x), Sacombank (42x) or BIDV grown up 2x after only one year of deployment Along with the increase in deposit sales, credit cards also attracted the use of premier customers in recent years Compared to the time of deployment (in 2013), the number of MSB cards has increased from 4,913 cards to 15,460 cards in 2015 (tripling) or BIDV has also increased the number of cards from 2,000 cards in 2013 to 10,000 cards in 2015 (5 times) In addition, some banks have relatively high average card spending In terms of profitability, premier customers are always considered a "fertile" land for banks to get profit from providing services to them, averaging 60-80% of the total profit of individual customers 3.2.3.2 Criterias for assessing quanlitative development of premier banking services Assessment of customer satisfaction of banking services for premier customers: * Sample description: Classification Female Male Not married Marriage status Married Under 30 year old From 30 to 40 year old Age From 41 to 50 year old Over 50 year old College/vocational school University Education Post graduate Other Government officer Entrepreneur Work Retirement Other From billion to under billions From billions to under billions Deposit at bank Over millions Under 01 year Time of using From 01 year to under 03 years services From 03 years to under 05 years Over years Gender Frequency 152 154 89 217 58 102 95 51 95 174 24 13 104 110 25 67 135 76 95 60 125 81 40 Ratio (%) 49.7 50.3 29.1 70.9 19.0 33.3 31.0 16.7 31.0 56.9 7.8 4.2 34.0 35.9 8.2 21.9 44.1 24.8 31.0 19.6 40.8 26.5 13.1 * Verification results of the scale - The "Accessibility" scale in the research model included five different observational variables from TC1 to TC5 The results show that the corrected item total correlation of the variables of> 0.3 (smallest with TC1 = 0.618); Cronbach Alpha coefficient is 0,839> 0,6 Any variable does not increase the Cronbach Alpha Consequently, 05 variable observations to measure Accessibility ensure reliability and relevance - The "Facilities" scale in the research model is composed of 04 different observation variables from VC1 to VC4 The results show that the corrected item total correlation of variables> 0.3 (the smallest with VC4 factor is 0.56); The Cronbach Alpha coefficient is 0.797> 0.6 Any variable does not increase the Cronbach Alpha Thus, 04 observation variables to measure facilities ensure reliability and suitability - The “Scope of Services provided” scale in the study model included four different observational variables, DV1 to DV4 The results show that the corrected item total correlation of variables> 0.3 (smallest with DV1, DV4 = 0.489); Cronbach Alpha coefficient is 0.73> 0.6 Any variable does not increase the Cronbach Alpha Consequently, the remaining four observations to measure service delivery ensure reliability and relevance - The "Quality of investment consultancy" scale in the study model includes different observation variables from DT1 to DT5 The results show that the corrected item total correlation of the variables of> 0.3 (smallest with T1 factor of 0.673); Cronbach Alpha coefficient is 0,861> 0,6 Any variable does not increase the Cronbach Alpha Thus, 05 variable observations to measure Investment Prospects ensure reliability and relevance - The "Safety and Confidentiality" scale in the study model consists of four different observation variables from AT1 to AT4 The results show that the corrected item total correlation of the variables of> 0.3 (smallest with AT2 factor of 0.631); The Cronbach Alpha coefficient is 0.86> 0.6 Any variable does not increase the Cronbach Alpha Thus, the remaining four observations to measure Safety and Confidentially are reliable - The "asset portfolio results" scale in the research model consists of three different observation variables from KQ1 to KQ3 The results show that the corrected item total correlation of the variables of> 0.3 (smallest with factor KQ1 is 0.712); The Cronbach Alpha coefficient is 0.866> 0.6 Any variable does not increase the Cronbach Alpha Therefore, 03 observations variables to measure portfolio results ensure reliability and relevance - The "Relationship Managers" scale in the study model includes different observation variables from QL1 to QL7 The results show that the corrected item total correlation of variables> 0.3 (smallest with factor Q1 equal to 0.695); The Cronbach Alpha coefficient is 0.914> 0.6 Any variable does not increase the Cronbach Alpha Thus, 07 observations variables to measure Relationship management ensure reliability and relevance Sources: SPSS results 15 16 - The "Service price" scale in the study model consists of four different observable variables, GI1 to GI4 The first result showed that the corrected item total correlation was equal to that of GI4 0.3 (smallest with GI1 factor of 0.778); The Cronbach Alpha coefficient is 0.892> 0.6 Any variable does not increase the Cronbach Alpha Thus, the remaining three observations to measure service prices are reliable and appropriate - The "Customer Satisfaction" scale in the study model consists of three different observation variables, HL1 to HL3 The results show that the corrected item total correlation of variables> 0.3 (smallest with HL3 factor of 0.688); The Cronbach Alpha coefficient is 0.849> 0.6 Any variable does not increase the Cronbach Alpha Thus, 03 variable observations to measure Customer satisfaction ensures reliability and relevance - The “Customer loyalty” scale in the research model include different observation variables from TT1 to TT3 The results show that the corrected item total correlation of variables> 0.3 (smallest with factor TT1 is 0.780); The Cronbach Alpha coefficient is 0.911> 0.6 Any variable does not increase the Cronbach Alpha Consequently, 03 variable observations to measure customer loyalty ensure reliability and suitability * Factor analysis After the scale components of the factors were evaluated for reliability by the Cronbach Alpha coefficient, the variables were essentially satisfactory (minus the GI4 variable) Next, the author uses the EFA method to extract the Principal Component Factoring factor, the Varimax rotation for each factor, and the set of factors that have been calibrated The results of the EFA analysis show that the factors that are fundamental to ensuring convergence and differentiation in relation with others, except for the "relationship manager" and "service price" extracted about the same factor This shows that premier customers’ views on the quality of human resources are always aligned with service prices However, because the two factors reflect different meanings, the author maintains two distinct factors for regression After analyzing EFA the factors of customer satisfaction and loyalty showed that the factors were consistent and were both a one-way scale (KMO greater than 0.5, deviation variance greater than 50%, p-value test The barllet is less than 0.05 and the factors are only formed in accordance with the theory of unidirectional measurements * Evaluate the answer by the mean of the factors: - Accessibility to sevices was rated satisfactory (average 3.68 points) In particular, customers are most satisfied with being able to reach the client manager even during office hours (µ = 3.75; ϭ = 0.663); Next is the ability to schedule an appointment with the bank (µ = 3.69; ϭ = 0.692) The lowest rating is the bank's response rate (µ = 3.63; ϭ = 0.614) - Bank facilities were rated satisfactory (average 3.73 points) Among them, the bank's location was neat, the style was rated highest (µ = 3.87; ϭ = 0.613); Next is the bank with modern equipment (µ = 3.82; ϭ = 0.688) At the same time, the privacy of transactions as well as quiet space at the bank is not appreciated by other factors - The range of services offered by the bank was rated satisfactory (µ = 3.6) In particular, the fact that banks link up with multiple parties to provide the highest rated services (µ = 3.68; ϭ = 0.539); However, the bank's provision of services differently from other banks was not as high as the rest (µ = 3.51; ϭ = 0.568) - The bank's investment advisory quality was rated at a medium level (µ = 3.44) In particular, customers think that the bank uses information during the exchange to prepare the investment proposal, but does not take into account risks and risk tolerance of customers - The bank's safety, confidentiality was rated at normal (µ = 3.37) In particular, customers underestimated the bank's behavior when customers incurred large transaction value (µ = 3.21; ϭ = 0.520) and did not feel safe when dealing with the bank row (µ = 3.5; ϭ = 0.583) - The bank asset portfolio was rated at the average level (µ = 3.42) - Relationship managers were rated satisfactory (µ = 3.68) In particular, the customer appreciates customer-friendliness and trustworthiness (µ = 3.87 and µ = 0.584 respectively) However, the relationship manager did not have the required sensitivity (µ = 3.48) - Service price were rated satisfactory (µ = 3.43) In particular, the customer thinks that the fee is quite adequate for the service provided (µ = 3.45 and µ = 0.637 respectively) Flexibility of service prices was lowest among the three factors (µ = 3.41) - Overall, customers were relatively satisfied with the service bank (µ = 3.57), with the decision to use the service for premier customers (µ = 3.54) However, it was not really satisfied with services for premier customers (µ = 3.38) 3.3 Varification of factors affecting the development of banking services for permier customers at commercial banks in Vietnam From the results of the assessment of the reliability of the scale and analysis of the EFA factor, the author examines the factors that affect the satisfaction and loyalty of the pemier customers for banking services at commercial banks in Vietnam) including: (1) accessibility; (2) facilities; (3) scope of services provided; (4) quality of investment consultancy; (5) safety, security; (6) management portfolio results; (7) relationship manager and (8) service price The results of the regression analysis show that the Durbin Waston Test = 1.767 and Sig value