The urgency of the topic
In recent years, the world and domestic economic situation have experienced many fluctuations, especially in the financial and monetary markets As a young and vulnerable economy, our country is still facing many difficulties due to the negative impact of the Covid-19 pandemic and the influence of world economic and political events However, there are still positive signs In that situation, the activities of organizations in the financial sector as well as the system of commercial banks have shown their importance.
In order for the economy to operate continuously and develop sustainably, capital is an urgent issue and should be given top priority Capital source and access to capital is one of the decisive factors for the success or failure of businesses For commercial banks - a special form of enterprise, financial intermediaries providing capital for the activities of other enterprises in the entire economy - capital sources and capital mobilization play an even more important role most important Banks must always focus on capital growth through mobilizing activities to ensure their reputation and demonstrate their capacity.
Recently, the events and bad news of the bond and deposit markets have partly affected people's psychology and disturbed the capital mobilization activities of banks in general and money mobilization send in particular Although Vietnam Prosperity Joint Stock Commercial Bank, Ham Nghi - Da Nang branch has always performed well, it still has to bear unavoidable systemic risks affecting the branch's operations.
After a period of practical experience and research on capital mobilization at VPBank Ham Nghi, I realized that it is important to learn, analyze and evaluate capital mobilization by the form of savings for the development of the bank With the desire to improve and enhance the efficiency of deposit mobilization of VPBank Ham Nghi, as well as domestic commercial banks, I would like to choose the topic:
"Analysis of capital mobilization by savings Vietnam Prosperity Joint Stock
Commercial Bank, Ham Nghi - Da Nang branch, period 2020-2022" doing the graduation thesis.
Research purpose of the topic
- To study the basic issues of capital mobilization activities in the form of savings deposits of commercial banks.
- Analyze and evaluate capital mobilization activities in the form of savings at VPBank Ham Nghi.
- Proposing solutions to develop savings deposit mobilization activities.
Research question
To achieve the goal, the author conducted research to answer the following questions:
- What is the activity of mobilizing capital by savings deposits at commercial banks? What are the contents of deposit mobilization activities? What factors affect mobilizing activities?
- How is the situation of deposit mobilization at VPBank Ham Nghi branch?
- What solutions can help banks develop capital mobilization activities in the form of savings?
Objects and scope of research
- Research object: Capital mobilization activities in the form of savings deposits at commercial banks.
- Scope of the research: Fundraising activities in the form of savings at VPBank Ham Nghi branch.
Research methods
- The thesis uses the methods of analysis - synthesis, comparison-contrast, and evaluation through the information and data collected.
- During the research process, the thesis collects information and data from reports and data at Vietnam Prosperity Bank, Ham Nghi branch, reference textbooks, theses, internet
Theme layout
THEORETICAL BASIS OF CAPITAL MOBILE ACTIVITIES AT
1.1.1 The concept of capital of commercial banks
“The capital source of commercial banks is all monetary means in society that the bank can mobilize, use to lend and perform other business services of the bank.” (MSc Le Thi Hoai Trinh (2022), Commercial banking operations)
It can be understood that the capital source of a commercial bank is formed by the monetary source from the bank itself and other individuals and organizations with idle money From there, the bank carries out its business activities on the basis of the capital it has acquired (credit, investment ), creating the circulation of money in the economy.
1.1.2 Classification of capital sources of commercial banks
The capital sources of commercial banks can be divided into 3 types:
A bank's equity capital is the actual value of its charter capital and reserve funds and some other debit assets In other words, equity is a self-owned resource that the bank owns and will be used for business purposes.
- Tier 1 capital: charter capital, reserve fund for supplementing charter capital, investment and professional development fund, retained earnings, share capital surplus.
- Tier 2 capital: the added value of fixed assets and revalued investment securities, financial reserve fund, general provision, convertible secondary debt.
Additional capital is a source of capital formed through entrusting agents to domestic and foreign organizations or can attract capital through the payment means adopted by the bank.
Mobilized capital is the monetary value that the bank obtains through the operation of raising capital from individuals and economic organizations in the economy by providing its products and services, and at the same time using it use it as a basis for other business activities Mobilized capital is the largest source of capital in the total business capital of commercial banks.
- Capital to issue valuable papers
1.1.3 The role of capital mobilization activities of commercial banks
- Capital is the basis for the bank to organize all business activities:
A commercial bank is an enterprise dealing in commodities, especially currency Therefore, it is both a means and a main business object Capital is the starting point in the business cycle, so it is necessary to take care of the growth of capital during the operation of the bank.
- Capital determines the business scale of the bank:
The capital source determines the expansion or contraction of the bank's business activities Banks with large capital often provide credit and investment product portfolios with a more diversified structure and larger scale than banks with small capital sources Large capital can help banks meet their loan needs, increase solvency and diversify services to customers.
- Capital determines the solvency capacity and ensures the reputation of the bank:
Reputation is a decisive factor to the survival, brand and development of the bank's operations The larger the mobilized capital, the higher the customer's confidence in the bank The bank's reputation is reflected in its ability to pay customers, its high solvency shows that the bank has a large available capital With high capital mobilization capacity, the bank can expand its business activities and affirm its position.
- Capital determines the bank's competitiveness:
Large capital creates favorable conditions for the bank to expand its credit relationship with customers in terms of size, volume, term and interest rate With strong financial capacity, the bank can operate in a versatile way, disperse risks and strengthen its competitive strength in the financial market.
- The customer is the person who directly opens a savings account at the bank.
In addition to enjoying interest rates to ensure profitability, customers are also assured of the safety of idle capital In other words, saving is a profitable investment with an extremely low level of risk When customers open a savings account at the bank, they will be committed to keeping information confidential from the bank. Besides, the bank is obliged to refund the full amount whenever the customer requests it.
- When depositing savings, customers can enjoy accompanying services depending on deposit packages, amount, deposit term and policies of each bank.
- Capital mobilization is the premise for the bank to perform the credit intermediary function, provide timely and meet the capital needs for life and business activities of all other individuals and organizations in the economy. Therefore, it is possible to partly reduce the risks that hinder socio-economic development.
- Exploiting and taking advantage of idle capital in the economy, promoting capital rotation, and at the same time solving money stagnation and capital deficit in society Since then, capital mobilization contributes to promoting economic growth and ensuring social security for the country.
- Along with the economic development and commercial banking system, with a diversified product and service portfolio to meet the specific needs of each customer, making payment easy and convenient than In addition, the more capital mobilized into the banking system, the less free money in the economy That makes the management of the State easier and more convenient in making appropriate policies.
1.1.4 Types of capital mobilization of commercial banks
- Receiving deposits: deposits from individuals, economic organizations and other entities in the economy (payment deposits, savings deposits, margin deposits )
- Issuing valuable papers: short-term valuable papers (proposals, bills, short- term certificates of deposit ), medium and long-term (proposals, bonds, stocks)
- Borrowing capital: loans from the State Bank, commercial banks and other credit institutions, loans from the capital market and from other sources (trust sources, payment sources )
THEORETICAL BASIS ON CAPITAL MOBILE ACTIVITIES IN THE
1.2.1 The concept of capital mobilization in the form of savings
- The activity of raising capital in the form of savings deposit of a bank is understood as the activity of receiving deposits from the population through the form of savings and ensuring the full repayment of principal and interest as agreed upon to customers upon arrival term.
- Savings deposit is money that customers deposit into a savings account at a bank for the purpose of accumulation, profit and safety.
- Savings deposit includes short-term, medium- and long-term savings deposits
1.2.2 Features of mobilizing capital by saving deposits
- Savings deposits are an important source of capital of commercial banks, accounting for a high proportion in the total capital structure:
Stemming from the desire of people with idle money in society, most people want to ensure the safety of their property and earn a profit even when not in use.
The form of savings deposit is a product that is highly suitable for the above needs. Therefore, the capital mobilized from savings deposits is very large and accounts for a large part of the total mobilized capital although the number of customers is not much.
- Most savings deposits from residents have short term:
Term savings deposits are deposited in banks usually with a term of 1 year. Stemming from the psychology of preventing unstable financial situation of each customer and wanting to choose a short-term savings package with the highest interest rate Along with that, the difference in interest rates on the interest rate table of 1-year and over 1-year savings deposits of banks is usually not large Although most savings deposits are short-term, most customers often withdraw interest when due and send back the principal amount or combine both principal and interest to start a new term Therefore, savings deposits will still maintain stability in the bank's mobilized capital.
- As a highly stable source of capital:
Customers deposit savings at the bank as a profitable investment channel through earning interest from the deposited amount If there are no unusual events, the customer will not request a withdrawal before the maturity date The amount in the savings account will not change during the period and will be used for my business activities
- As a source of capital that is very sensitive to interest rates:
Because the main purpose of saving money is to earn profit, the interest rate is the main factor that directly affects people's decision to deposit money Regardless of other factors, banks with higher deposit rates will be given priority Therefore, it can be said that savings deposit channel is a capital mobilization channel with high sensitivity to interest rates In order to mobilize large capital sources, banks must offer attractive interest rates to attract customers, and at the same time must make a reasonable balance between deposit interest rate and lending interest rate so as not to affect profit and loss bank growth.
In fact, besides interest rates, capital mobilized from savings deposits is also affected by many factors such as bank's reputation, brand coverage
- The cost of mobilizing large savings deposits:
Because it is more stable and less volatile than current deposit, the cost of management and service provision of savings deposit is low However, having to pay a high deposit interest rate leads to high interest expense on mobilized capital. Besides, the non-interest expenses associated with savings deposits (insurance, gifts for customers, salary and bonus for employees ) also make the total cost of saving deposits much higher other forms of mobilization.
- As a passive source of capital, affected by the income and spending habits of customers:
The essence of savings deposit mobilization is to take advantage of the idle money in the population Therefore, in this case, the commercial bank is a passive organization and the capital source depends on the financial situation as well as the habits of the population The higher the customer's income source, the more safety- oriented mentality, the larger the savings deposit and vice versa In addition, when the economy is unstable and other investment channels become risky, people will switch to more bank savings options.
- Diversified and flexible deposit terms:
In order to meet the different needs of each customer flexibly, the bank offers more and more diverse savings deposit packages with deposit terms: 1 month, 3 months, 6 months, 12 months
1.2.3 Principles of raising capital by savings deposits
- Principle 1: Capital mobilization must be based on loan demand The bank must calculate the demand for spicy to determine the amount of capital to mobilize.
To ensure a balance between mobilized capital and capital use in order to improve the bank's operational efficiency.
- Principle 2: The bank receiving the customer's deposit must be responsible for repaying in full and on time both principal and interest according to the previous agreement between the bank and the customer.
1.2.4.1 Classification by form of interest payment
It is a term savings account whereby customers who deposit money into a savings account will receive interest right from the beginning of the deposit term. The principal amount will be refunded by the bank at the end of the deposit term.
It is a savings deposit that customers receive the principal and interest at the time of maturity at the end of the period.
- Savings deposit with periodic interest payment:
It is a savings deposit where customers receive interest according to a previously agreed upon term with the bank, usually monthly, quarterly or annually. The principal amount will be refunded by the bank at the end of the deposit term.
A savings deposit that a commercial bank has mobilized from individuals with idle capital available in the society in various forms with a commitment to ensure safety of money source and fully repay the principal and interest on time.
It is a savings deposit that a bank receives from organizations and businesses in the economy that have temporarily idle cash sources and do not need to be used for business activities, for the purpose of earning profit for a period of time certain.
- Deposit savings directly at the counter:
A savings deposit whereby customers go directly to a bank's branches or transaction offices and ask employees to open a savings account Through direct deposit, customers need to present documents and provide all the information required by the teller when opening and withdrawing savings.
A savings deposit whereby customers only need to deposit money and complete related procedures through the internet banking application provided by the bank Through online deposit, customers do not need to go to the bank's branches or transaction offices, however, customers are required to have an internet banking account before opening an online passbook.
- Group of Savings in installments products:
This is a savings deposit that the bank can mobilize through the provision of products suitable to the segment of customers who have idle money to spend in small amounts in stages and have long-term financial accumulation needs.
- Group of High interest rate products:
FACTORS AFFECTING DEPOSIT ACTIVITIES AT COMMERCIAL BANK
- Reputation of the bank: The fact that people deposit money in the bank is not only looking for profit, it is also because they hope that depositing money will help them reduce the risk of holding money Therefore, when they decide to deposit money, they will only look to banks that are really reputable and branded in the market Therefore, if the bank has a high reputation, it will be easier to attract capital Bank reputation is not only created in a day or two, it needs a long and persistent process.
- Credit quality: Capital mobilization activities are always associated with capital use operations If capital mobilization is to attract idle capital in the economy, capital use operations use capital sources into the economy for production, business, services, and consumption to make a profit for the bank. Therefore, if a bank has problems with the use of capital, it will first reduce the size of the capital that the bank will mobilize, then the bank's reputation will be seriously degraded, from That makes it very difficult to attract idle capital from banks.
- Bank's business strategy: Capital mobilization is not only conducted in a short-term period, it needs to have a long-term capital mobilization strategy.Therefore, each bank needs to build for itself a specific business strategy, suitable for them That strategy must be built on the analysis of the bank's strengths,weaknesses, opportunities and threats, from which to make decisions to narrow or expand capital mobilization in terms of scale, which can change the ratios of capital sources, increase or decrease the cost of mobilization In each period, depending on the policies of the Government and the State Bank, commercial banks will have reasonable policies to attract capital.
Interest rate policy: When individuals or organizations deposit money in a bank, the first thing they want is to find profit, so interest rate is the first factor they care about Therefore, interest rate policy is one of the most important tools to support capital mobilization of banks And banks use it as a tool to change the size of capital attracted to banks, especially deposits In order to remain competitive with other banks and at the same time attract more capital, the bank must have a competitive interest rate, and at the same time must have more incentives for long- term customers, and have incentive policies for new customers.
- Level of banking technology: Nowadays, along with the renewal of banking activities, commercial banks are increasingly focusing on the application of modern science and technology to banking activities This is also indispensable in today's information technology The positive role of Science and Technology in banks cannot be denied, it helps banking activities to take place faster, more accurately and to reduce risks Modern facilities and equipment are always the face of the bank, it is the first thing customers will see when entering the bank In fact, customers will trust and feel more secure when depositing money in banks with high scientific and technological level.
- Capacity, qualifications and professional ethics of bank staff: Modern equipment, bank's reputation or interest rate policy are all determined by human factors Banking is a service activity, the goal is to serve the needs of customers, so the professional qualifications and service attitude of bank staff is an important factor that determines the efficiency of the bank's operations A bank with a team of highly qualified staff, service attitude, enthusiastic and open working style will make a very good impression on customers, which will help the bank attract more customers Therefore, banks must pay regular attention to the service attitude of their employees, and must train a team of professional staff.
- Customer care policy: Any business that wants to exist and want to develop long-term in the market must first have a set of existing customers To do so, businesses need to satisfy the wishes and requirements of customers, because customers are the vital element of the business Since then, customers play a very important role for every business So all businesses are looking for ways to keep and attract more of their customers in many forms Customer care activities are one of the important tools for businesses to keep and develop their customers In the increasingly fierce competition, satisfying the needs of customers through customer care activities plays a very important role This activity will help businesses promptly capture and respond to the arising needs of customers.
- Marketing policy of the bank: The market is both the object of service and the operating environment of the bank The activities of the bank and the market have a direct relationship and influence each other Therefore, understanding the market needs to closely link the bank's activities with the market will make the bank's operations highly efficient This will be done well through the marketing bridge Because marketing helps the bank's board of directors to recognize the factors of the market, customer needs, products and services and their fluctuations. Thanks to marketing, the bank's board of directors can coordinate and orient the activities of all departments and all bank employees to better meet the needs of customers.
As the economy develops, the number of commercial banks grows more and more, along with increasingly fierce competition among banks To get loyal customers, banks need to give customers confidence in the quality of services and benefits that customers receive when choosing this bank over other commercial banks Customers are individuals, groups of people, businesses are an important factor determining the success or failure of commercial banks in the current economy Customers of commercial banks are diverse and different in age, gender,income level, place of residence, consumption preferences and position in society.Commercial banks must have policies to meet the needs of each customer group accordingly.
- Economic factors: The system of commercial banks is directly affected by economic criteria such as economic growth rate, national income, inflation rate, etc. When the economy develops and the national income is high, economic units and residents will have a large source of money deposited in banks On the contrary, if the economy is in crisis , unemployment rate is high, and inflation is increasing, not only the mobilization of capital but also other activities of the bank will also be difficult because people instead of depositing money in the bank will invest in other assets with high stability, private enterprises will reduce production, so the amount of deposits in banks will be limited.
- Scientific and technical factors: In the booming information technology era, the application of technologies has become a mandatory condition for commercial banks Services such as internet banking, ATM automatic deposit/withdrawal machines, letters of credit (L/C), etc have made the rate of deposits and payments via banks increasing.
- Cultural, social and population factors: In densely populated places with high income, it is easier to mobilize capital from customer deposits than in remote places with low education level.
- Legal factors: Commercial banks are businesses dealing in special goods (currency) so they are affected by many policies of the government and central bank Changes in policies of the State, the Central Bank on finance, currency and interest rates will affect the ability of commercial banks to attract capital from customer deposits.
- Political factors: Political stability or foreign policy between countries in the region and the world will also affect the development of commercial banks.
Chapter 1 of the thesis presented an overview of issues related to capital sources, capital mobilization activities and capital mobilization activities in the form of savings deposits of commercial banks Accordingly, the thesis focuses on learning about the characteristics, classification, performance evaluation criteria and factors affecting savings deposit mobilization This serves as a premise for the detailed analysis of capital mobilization by savings deposits at VPBank Ham Nghi in Chapter 2.
THE SITUATION OF CAPITAL MODIFICATION IN THE
OVERVIEW OF VIETNAM PROSPERITY BANK, HAM NGHI BRANCH
- Full name: Vietnam Prosperity Joint Stock Commercial Bank
- Branch address: No 102-104 Ham Nghi, Thac Gian Ward, Thanh Khe District, Da Nang City.
- Services at VPBank Ham Nghi: Printing account statement, counting money, making money transfer orders and Sec, transferring salary in batches, card service, guarantee, cash withdrawal, asset management, lending service, international banking services
2.1.2 The process of formation and development
Vietnam Prosperity Joint Stock Commercial Bank (formerly known as JointStock Commercial Bank for Non-State Enterprises of Vietnam) was established onAugust 18, 1993 under Operation License No 0042/NH-GP issued by Governor of
State Bank of Vietnam Vietnam granted with 99 years of operation After nearly 30 years of operation, the charter capital has increased to more than 67.43 trillion VND, developing a network of over 200 transaction points with a staff of nearly 27,000 employees.
As a member of the group of 12 leading banks in Vietnam, VPBank is gradually affirming the reputation of a dynamic bank with stable financial capacity and responsibility to the community VPbank's outstanding growth is vividly reflected in the expansion of its nationwide network of branches and transaction points along with the diversified development of sales and distribution channels. VPBank's products and services are always improved and combined with more utilities to increase benefits for customers.
The Bank has always been at the forefront of the market in applying advanced information technology in products, services and operating systems, constantly improving its organizational structure in accordance with clear and transparent corporate governance policies Along with building a strong and effective corporate culture, core human resource management systems have been successfully built and implemented at VPBank VPBank's brand name has been increasingly affirmed through many prestigious awards such as: "Best Bank for SMEs" (2019, awarded by The Asian Banker magazine), Top 10 prestigious Vietnamese commercial banks in
2019, " Top 300 banks with the highest brand value in the world” (2020, according to Brand Finance rankings)
VPBank Da Nang branch was established under license No 140/QD-HĐQT dated 15/08/1995 issued by the city's Department of Planning and Investment On September 4, 1995, VPBank Da Nang officially came into operation, headquartered at 112 Phan Chau Trinh After more than 27 years of establishment, the bank is constantly growing and meeting the increasing demands of customers Up to now, VPBank Da Nang has opened 8 transaction offices: Phan Chu Trinh, Ham Nghi, Son Tra, Nui Thanh, Nguyen Tri Phuong, Dien Bien Phu, Dong Da, Hai Van With a staff of experienced, dynamic, qualified and highly capable employees.
VPBank Ham Nghi transaction office was opened on September 8, 2011, at
102-104 Ham Nghi street, Da Nang city It is considered to be located on a major street, densely populated and vibrant economic activities, equipped with spacious facilities with modern technology, professional staff, cordial, friendly The opening activity attracted a lot of attention from customers, the number of people coming to visit and transact was very large According to customers, VPBank Ham Nghi is a dynamic and goodwill transaction office, with high service quality and good customer experiences, in line with the "All for customers" orientation.
Vietnam Prosperity Commercial Joint Stock Bank Ham Nghi branch is a bank affiliated to Vietnam Prosperity Joint Stock Commercial Bank, currently consists of
14 employees including a Branch Manager and the following levels of departments and divisions:
Figure 2.1: Organizational structure at VPBank Ham Nghi
As the head responsible for all aspects, management and administration of business activities of the bank Planning business strategies of the bank, monitoring, checking and urging the progress of all employees Control the branch's
DEPARTMENT professional activities and asset management.
Take legal responsibility for operations at the bank branch.
Responsible for reporting to superiors on problems arising during operation. Directly manage and perform other tasks assigned by superiors Acting as the representative of the bank to give comments, suggestions and recommendations to the Central Bank, local authorities, senior management boards as well as other bank branches on issues related to operations banking movement.
Having the task of finding and classifying customers on the basis of specialized analysis to propose suitable products, guiding customers to support appraisal before lending.
Perform the task of taking care of and managing customer portfolios, monitoring the use of capital after disbursement of customers, regularly reminding customers to pay debts on time, and at the same time make reports according to the bank's regulations
As the department that controls in cash economic activities related to the bank's business, performs transactions and provides legal data, it is necessary to have strict, complete and accurate control.
Responsible for performing cash collection and payment transactions, preserving cash and ensuring safety of the treasury At the same time, transfer money within the same banking system and through the State Bank.
Directly dealing with customers, performing payment functions and services related to customers' deposit accounts Responsible for guiding and assisting customers in procedures, opening, closing and using accounts and related card services Perform loan disbursement orders, debt recovery, fee collection
Carrying out deposit mobilization activities, managing and performing operations related to savings deposit accounts, storing cash and valuable papers, participating in payment and trading activities currency
2.1.5 Business performance of VPBank Ham Nghi in the period of 2020-
2.1.5.1 The situation of capital mobilization of VPBank Ham Nghi in the period of 2020-2022
Capital is a prerequisite factor in business activities of enterprises, especially those operating in the monetary and financial sector such as banks For each bank,capital plays a particularly important role, which is the basis for determining the scale and efficiency of business operations In the current capital structure of the bank, equity only accounts for a small part of the total capital Meanwhile,mobilized capital is increasing rapidly in size, accounting for a large proportion and playing a key role In the context of the market economy with fierce competition among commercial banks, a strong capital source will help the bank to survive and develop With the importance of mobilized capital, banks are proactive in finding and mobilizing money in the economy For VPBank in general and VPBank HamNghi in particular, the bank has operated actively, exploiting capital sources with diverse and appropriate forms and products, along with the unremitting efforts of the bank's staffs, so the size of capital has grown steadily in recent years In the period of 2020-2022, the branch's mobilized capital is as follows:
Table 2.1: The capital mobilization situation of VPBank Ham Nghi in the period of 2020-2022 ( Unit: million VND)
Figure 2.2: The situation of capital mobilization of VPBank Ham Nghi in the period of 2020-2022 ( Unit: million VND)
Through the data table and chart of capital mobilization of VPBank Ham Nghi branch in the period of 2020-2022, it can be seen that:
- In terms of scale, in general, the total mobilized capital of the bank increased continuously over the years Raised capital increased sharply from VND 171,940 million in 2020 to VND 227,446 million in 2022, equivalent to an increase of VND 55,506 million, growing at a rate of 32.28% within just 2 years In there:
+ In 2021, the branch's mobilized capital increased by VND 8,981 million (from VND 171,940 million in 2020 to VND 180,921 million in 2021), equivalent to a growth rate of 5.22%.
+ In 2022, the branch's mobilized capital increased by VND 46,525 million (from VND 180,921 million in 2021 to VND 227.446 million in 2022), equivalent to a growth rate of 25.72%.
THE SITUATION OF CAPITAL MOBILIZATION IN FORM OF
2.2.1 Savings deposit products at VPBank Ham Nghi
Savings products at VPBank are offered by the bank to meet the needs of each customer segment:
- Regular savings: Suitable for customers who do not need to use cash regularly and want to earn profit on the deposit amount.
- Savings of Luck and Prosperity: Suitable for customers who do not need to use cash frequently and want to get the highest return on deposit.
- Prosperity-Preserved Savings: To assist customers to preserve interest rates against fluctuations in interest rate adjustments in the market.
- Savings with early interest payment: Suitable for customers who deposit but want to receive interest first to spend.
- Saving with periodically paid interest: Suitable for customers who deposit money and want to be able to receive monthly interest regularly to meet their living expenses.
- Savings Easy Savings@Kids: Suitable for parents who want to send long- term savings to their children.
- Easy Savings: Suitable for all customers who want to save money to accumulate finance with small idle amounts.
- An Thinh Vuong Savings: Suitable for customers who save money with the desire to earn profit on the deposit amount as well as receive many attractive loan interest incentives.
- Saving overdraft guarantee: Suitable for customers who need to receive an advance of up to 90% of the book value to spend, no need to pay off the book before the due date when urgently needing money.
2.2.2 Operation process of savings deposit mobilization
2.2.2.1 The process of direct deposit at the branch
When opening a savings book directly at the branch, customers only need to bring their ID card/CCCD or passport to the bank and will be guided in detail by the teller at the counter.
Figure 2.5: Process of opening a passbook at the counter
Step 1: Bring your ID card or passport to the bank's transaction office to request a savings account.
Step 2: Fill in your personal information completely and accurately in the registration form required by the teller.
Step 3: Make a deposit transaction, receive the book, carefully check the passbook information to ensure the safety of the deposit.
When withdrawing money, customers need to prepare a passbook, ID card or passport Customers go to the bank's transaction office and withdraw their savings according to the instructions of the teller.
Figure 2.6: The process of opening an online savings book
Step 1: Access and log in your account to the bank's internet banking application (VPBank Neo).
Step 2: At the main interface, click "Save" Then click “Open online passbook”.
Request to open the book at the counter
Complete openning of savings book Choose the feature to open a passbook
Step 3: Choose a deposit method with a term that suits your needs and financial capabilities Then, click “Continue” to complete the process of opening the book.
Customers do not need paperwork, just access the account and make the payment The deposit will be transferred directly to the customer's payment account.
2.2.3 The situation of capital mobilization by savings deposits at VPBank Ham Nghi in the period of 2020-2022
2.2.3.1 Overview of deposit account mobilization at VPBank Ham Nghi in the period of 2020-2022
Mobilized savings deposits are a special source of capital in the total capital structure as well as business activities of commercial banks In banking activities,the mobilized capital must be large enough to be used in credit activities and in other activities of the bank Because it accounts for a high proportion of the bank's capital structure (about 70%), the change in the amount of deposit accounts will have a strong impact on the total capital of the bank In the period of 2020-2022, the capital mobilized from the deposit account at VPBank Ham Nghi takes place as follows:
Table 2.4: The situation of depositing deposit account of VPBank Ham Nghi in the period of 2020-2022 ( Unit: VND million)
Figure 2.7: The situation of depositing deposit account of VPBank HamNghi in the period of 2020-2022 ( Unit: VND million)
Based on the data table and graph above, it can be seen that:
- Savings deposit at VPBank Ham Nghi has grown continuously over the years As of 2022, the branch's savings account has reached VND 174,513 million, an increase of VND 50,844 million, equivalent to 41.11% compared to 2020 In which, 2021 only has a slow growth rate of VND 4,476 million, equivalent to 3.62
% However, by 2022, the amount of savings accounts will have a breakthrough growth with VND 46,368 million, equivalent to 36.18% The growth rate of the deposit accounts occurred concurrently and was balanced with the growth rate of deposits of the branch, showing that the influence from the savings deposit accounts to the total capital of the bank is large and the savings deposit accounts is effective lead to a positive change in total mobilized capital.
- In fact, with the economic conditions in 2021, along with the fluctuations of the world and domestic financial - monetary markets, when the economy is hindered by the epidemic, deposit interest remained at low rate while the average return on other investment channels was high and explosive Faced with that situation, although deposit mobilization activities faced many difficulties and growth rate was slow, the results of capital mobilization from deposit accounts still attracted a large amount of money and recorded positive growth By 2022, the world economy in general and Vietnam in particular are facing the risk of recession, but this is still an active and effective year for the banking industry In the face of fierce competition and interest rate race among commercial banks, VPBank Ham Nghi branch was still able to affirm its position with a breakthrough in deposit mobilization activities The amount of deposit accounts increased to a record thanks to the impact of many factors such as interest rates, the bank's policy to introduce product packages that meet the needs of each customer group, strong human resources, and marketing activities aimed at customers
- In general, the savings accounts at branches are mostly short-term deposits.
In 2021, the proportion of savings accounts from 0-12 months increased slightly from 70.16% to 72.41%, while the proportion of savings accounts over 12 months decreased in both value and proportion from 29.84% to 27.59% The main reason is due to the unstable economic situation, low deposit interest rates, leading to the general psychology of customers to deposit money in the short term so that it can be easily to change their mind when the interest rate changes and be more bound when there is a need to use the deposited amount By 2022, although the proportion of short-term savings accounts increased in value, it was a decrease in proportion to 63.85%, while the proportion of medium and long-term accounts increased sharply in both value and proportion to 36.15% of the total savings accounts The increase of the medium and long-term deposit accounts is due to the high interest rates in
2022, customers have the need for long-term deposits to enjoy the optimal interest rates in the long run without having to bear the influence of interest rates decrease again.
Thus, the situation of capital mobilization by deposit accounts at VPBank Ham Nghi in the period of 2020-2022 is generally appreciated This is the result of the right policies, high adaptability to market conditions and the efforts of all staffs of the bank branch.
2.2.3.2 Analysis of the current situation of deposit account mobilization in the form of interest payment
The Bank has mobilized a lot of capital from the savings deposit account in large part thanks to paying high interest rates on customers' deposits For banks, the interest of the deposit account is considered an expense to serve business activities, and for customers depositing money in the bank, it is an income derived from idle money sources Therefore, customers always want to receive the most optimal interest rate on the deposit account Depending on the needs and taste of each customer, the form of interest payment of the bank will and divided into 3 forms: prepaid interest, postpaid interest and periodic interest payment The situation of savings in the form of interest payment of VPBank Ham Nghi in the period of 2020-
Table 2.5: The situation of depositing savings accounts in the form of interest payment of VPBank Ham Nghi in the period of 2020-2022 ( Unit: VND million)
Figure 2.8: The situation of depositing savings accounts in the form of interest payment of VPBank Ham Nghi in the period of 2020-2022 ( Unit: VND million)
Based on the data table and graph above, it can be seen that:
- Postpaid interest savings deposit is the most popular form, accounting for a large proportion in the structure of the deposit account and tends to increase gradually over the years By 2022, the proportion of this form of deposit in the total structure of the savings account reached 48.48% The value of savings account in the form of interest on postpaid increased rapidly and continuously, from VND 54,354 million to VND 84,606 million within just 2 years In 2022 alone, the amount of deposits increased by a net 26,782 million dong and accounted for nearly 60% of the total increase in the total savings during the year This shows that the fluctuation of the deposit account in the form of interest after payment has the greatest influence on the change of the total savings deposit account of the bank. Postpaid interest savings deposit form is a traditional and popular form of savings deposit, although now there is a diversification of deposit product groups, the form of postpaid interest is still familiar and popular with customers In addition, the interest rate of this form of deposit is always maintained at a higher level than the other two forms (the difference is up to 1%), so for customers with idle money and no need to used regularly, this is the most optimal form of deposit.
- Prepaid interest savings account is the second largest proportion in the total structure of the deposit account The proportion of the deposit account with prepaid interest has fluctuated over the years, specifically: increasing from 36.02% in 2020 to 38.08% in 2021, then sharply decreasing to only 31.21% in 2022 This fluctuation is due to the year In 2021, the amount of short-term deposits of this form of deposit increased, leading to the largest increase in the total value of the deposit account with prepaid interest (VND 4,249 million), while the growth of postpaid interest was lower (3,470 million VND) and the form of periodicpaid interest had a negative growth (VND 3,243 million) By 2022, the amount of prepaid interest savings accounts increased mainly based on medium and long-term deposits, however, both short-term and medium-long term prepaid interest deposit accounts was insignificant compared to the prepaid interest and periodicpaid interest deposit, leading to a sharp decrease in the proportion of savings accounts with prepaid interest Although there is a fluctuation in the proportion, in terms of value, the amount of deposit accounts in this form still maintains a certain growth and the proportion is always higher than 30% This is a form of deposit quite familiar to customers, although the interest rate is lower than the other two forms of deposit, however, customers are entitled to receive the interest amount for the deposit in the bank in advance and suitable for customers who have the psychology of wanting high safety and have the need to use small capital immediately and still be able to preserve their idle capital.
- The form of savings deposit with periodic interest payment accounted for the smallest proportion in the total structure of the bank's deposit accounts and fluctuated over the years The deposit account's periodic interest payment dropped sharply from 20.03% in 2020 to 16.80% in 2021, then increased again to 20.31% in
2022 In 2021, the bank's periodic interest deposits recorded negative growth (VND 3,243 million), while the other two indicators have quite good growth in value, slowing down the overall growth rate of the total savings account First, because the medium and long-term deposits of this form of savings have a high proportion, while the medium and long-term savings accounts in 2021 are suffering from bad effects and growing slowly Second, low interest rates affect the value of interest, receiving periodic interest would make the value of money received by customers be divided Third, the economic situation and epidemic are unstable, so most customers tend to want to receive interest in one time By 2022, both short-term and long-term periodic interest payments increased sharply in both the deposit account, the total growth in 2022 reached VND 13,906 million, equivalent to 64.59% Since then, the proportion of this form of deposit has also increased sharply in the bank's deposit account structure.
Thus, in general, VPBank Ham Nghi's deposit account is most strongly influenced by the form of savings deposit with postpaid interest, followed by the influence of prepaid interest and periodic interest payment Postpaid interest deposit account is the strength of the branch and maintains effective operation The bank has also taken advantage of this strength to maximize the potential from this form through diversifying and optimizing product packages (Luck and Prosperity, Prosperity-Preserved ), policies interest rate program for customers with large deposits Other forms, although volatile, still have positive growth signs and have the potential to become a driving force for mobilized capital of the bank.
2.2.3.3 Analysis of the current situation of savings deposit account mobilization by customers
ASSESSMENT OF THE EFFICIENCY OF CAPITAL MOBILE
From the collected data, through analyzing and understanding the causes, it can be seen that the deposit account deposit activity of VPBank Ham Nghi branch has achieved proud achievements after a period of active operation positivity and creativity.
Vietnam Prosperity Commercial Joint Stock Bank in general and VPBank Ham Nghi - Da Nang branch in particular are one of the leading private joint stock commercial banks in retail activities in terms of lending scale, customer mobilization, profits and attention in improving the quality of operations With that position, VPBank Ham Nghi is more motivated to promote the development of its capital mobilization activities in the form of savings deposits.
The achieved results can be easily seen through the huge amount of deposit accounts deposited in the branch and the rapid growth rate in the research period2020-2022 In 2021, despite facing many difficulties due to the impact of the macro-economic situation and unpredictable epidemic developments, the deposit interest rate was low, but the branch still effectively mobilized capital from the deposit account In order to achieve these achievements, it must be followed by the flexibility in the bank's operations, the strategic vision of the management, which provides a way to overcome and adapt to difficulties as well as the coordination and efforts from the bank's staff.
In addition, in 2022, VPBank Ham Nghi branch recorded a breakthrough growth, enhancing the branch's position compared to other bank branches in Da Nang city From innovation and continuous improvement in business activities, all for the benefit of customers, improving product quality, integrating traditional and modern products, has helped VPBank Ham Nghi exploit a large number of customers in the city and surrounding area.
In the face of extremely rapid changes in digital technology, user behavior and new economic forms, VPBank Ham Nghi is always ready to accept opportunities and challenges to constantly improve and improve efficiency of its activities.
- VPBank Ham Nghi branch is located on a densely populated street, economic activities are vibrant and busy, the number of customers is high, convenient transportation should attract many customers to the branch.
- Having the existing advantage of VPBank's brand name in the financial market in particular and the economy in general, thereby taking advantage of the existing reputation to attract customers to trust and experience savings products at the branch.
- VPBank Ham Nghi is a bank branch whose staff is considered to be professional and dedicated, with high qualifications and seniority in the profession. The number of customers exploiting and accumulating each employee makes a great contribution to the bank's deposit mobilization activities.
- Along with the rapid development of information technology, along with the strength of omnipotent digital banking through internet banking application, the branch can flexibly and promptly grasp, take advantage of the online mobilization channel to collect money from the customers Attract customers to use your services
- The re-development of the economy in Da Nang city after a long period of stagnation due to the impact of the Covid epidemic, attracting the number of people and economic activities to concentrate again, the source of money circulating in the city’s economic growth, facilitating business activities and deposit mobilization activities of VPBank Ham Nghi branch.
- The volatility and high risk in other investment channels recently partly facilitated the cash flow to return to the traditional investment channel, which is bank savings. b Unfavorable
- Fierce competition in customer attraction activities of other branches of other bank branches, as well as other branches within VPBank in the city Each bank has its own policies in business activities to attract quality customers Finding market gaps, emphasizing and taking advantage of their advantages to attract new customers and retain old customers is a problem that banks need to do well to survive and operate effectively results and develop in a sustainable way.
- Because VPBank is a bank that can be said to be at the forefront of technology and has a long operating time, the management and operation system malfunctions quite often Although it did not cause damage to customers, it did affect the bank's operation process, and the delayed operation partly created a bad experience for customers when coming to the transaction branch In addition, due to the large number of customers accessing and using internet banking applications, it often causes congestion and query errors through the application, making it difficult for the bank's business activities and costly for customers maintenance and upgrades.
- Although VPBank Ham Nghi recorded high growth, the growth was not stable This makes it difficult to assess and forecast risks and opportunities and to accurately identify future growth trends, making it difficult to make appropriate promotion policies.
Thus, Chapter 2 of the thesis presented in detail the actual situation of capital mobilization in the form of savings at VPBank Ham Nghi branch in the period of2020-2022 Accordingly, the thesis focuses on analyzing and evaluating the situation of business activities and the situation of mobilizing savings deposits at branch Accordingly, giving an overview and identifying advantages and disadvantages in depositing deposit accounts of VPBank Ham Nghi branch in recent years From there, it serves as a premise for proposing solutions to improve the efficiency of deposit mobilization activities at the branch in Chapter 3.
CHAPTER III: PROPOSING SOLUTIONS TO DEVELOP CAPITALMOBILIZATION ACTIVITIES IN THE FORM OF SAVINGS ATVIETNAM PROSPERITY BANK, HAM NGHI BRANCH
ORIENTATION OF THE BRANCH
Vietnam Prosperity Bank Ham Nghi branch is a branch that started out as a small transaction office, but over the course of its operation, it has gradually affirmed its image and position It is the result of relentless efforts and striving, the flexibility to adapt to the right directions of the branch from time to time In the present and in the future, in order to survive and develop further, not only VPBank Ham Nghi but other units also need to give appropriate and feasible orientations based on the macroeconomic situation, conditions and conditions the branch's current condition and future goals.
Prioritize disbursement to strategic segments to create a breakthrough in scale and efficiency, well control risks and improve credit portfolio quality, and utilize technology to enhance debt collection.
- Increase mobilized capital and ensure liquidity:
Increasing core deposits to support credit growth, ensure operational safety and sustainable liquidity.
Making the most of the ecosystem, increasing the motivation for segments to attract customers and expand cross-selling activities, promoting a comprehensive segment development strategy.
- Developing people, improving service quality:
Encourage and create conditions for all employees to develop comprehensively in both professional qualifications and soft skills suitable for each position and job level with highly applicable training programs, while ensuring protect the economic interests of the staff.
Constantly promoting, expanding the brand, strengthening the trust of customers, actively in affirming the image, reputation, service quality, professionalism.
3.1.2 Orientation of deposit mobilization activities
On the basis of general orientations in business activities, VPBank Ham Nghi needs to give appropriate orientations for deposit mobilization activities in order to improve capital mobilization efficiency and maximize profits In the coming time, in the face of extremely rapid changes in digital technology, user behavior and new economic forms, banks must always be ready to accept new opportunities and challenges in order to continue to develop Based on the results achieved in the past time, as well as the goal of developing the deposit account resources in the near future, the branch has set out orientations for deposit mobilization activities through the following contents:
- Continuing to maintain the previous growth momentum to create conditions for credit activities to grow strongly and sustainably All forms of mobilization and investment in terms of technique and technology to serve customers' deposit become faster and easier than traditional deposit channels at the counter and deposit money online.
- Continue to promote account opening activities and attract individual customers to experience the service: The potential of the individual customer segment is extremely large and banks have not fully exploited in the population. Finding, approaching, attracting new customers to open and use bank accounts will increase the ability to exploit idle capital in the population, increase the amount of deposit accounts of the bank Besides, through opening an account, it also increases online transactions, promotes cashless payment activities, and popularizes modern payment tools However, do not neglect to promote relationships with traditional customers to maintain and promote the savings account.
- Have the right strategy in customer relations: a combination of attracting new customers and retaining old customers Maintain relationships between customers and banks, optimize bilateral benefits, have preferential policies for large and priority customers.
- Accelerating the scale and growth of the retail banking segment by exploiting the middle and high-end segments and continuing to optimize opportunities in potential segments.
- Updating and timely grasping the economic - political situation, events likely to affect the bank's capital mobilization activities From there, proactively make policies to adapt to the general situation, especially about deposit interest rates The adjustment of deposit interest rates needs to be consistent with the policies of the State Bank, while ensuring competitiveness while still bringing the highest possible profit for the bank.
- Maintain stable growth from corporate customer segment: Seize opportunities for cooperation in developing transaction and payment banking services and increase penetration into new or potential industries increase the source of deposit accounts besides credit activities.
SOME SOLUTIONS FOR DEVELOPING SAVINGS DEPOSIT AT THE BRANCH
- Conduct training of staff in order to improve their capacity to meet the requirements of the set tasks, through the mandatory training program and the annual supplement Accelerate the digitization of the training process.
3.2 SOME SOLUTIONS FOR DEVELOPING SAVINGS DEPOSIT AT THE BRANCH
3.2.1 Promote exploitation of potential customers
Customers can be seen as the development engine of the bank, both as a source of capital for business activities and as a user of capital to generate profits for the bank For capital mobilization activities, specifically capital mobilization in the form of savings, customers play a decisive role in the change of capital sources through the money deposited in the bank in the form of savings accounts, determine the size, structure and growth rate of mobilized capital Therefore, it is extremely important to attract, accumulate and exploit potential customers with idle capital to increase the scale and maintain the growth momentum of the deposit account in a sustainable way.
- Retain old customers: Maintain and tighten relationships with existing customers through regular interaction Continuously update customers with information about interest rate changes, preferential packages, changes in bank's operating policies in all channels such as messages, notifications via internet applications banking, gmail, zalo, facebook Regularly offering preferential policies and accompanying utilities for loyal customers such as: preferential interest rates for the next deposit, interest rate fluctuations, account premiums loans, waiving or reducing service fees for customers by segment, increasing payment account benefits for customers to serve the needs of life Regularly ask and consult customers to improve service activities not only through the mailbox at the branch, but also combine more surveys through forms, messages, create feedback mailboxes Meet customers through VPBank NEO application, website, mobile website.
- Attract more new customers: Increase search and access to potential customer groups that have not been fully exploited in society Take advantage and promote the number of customers opening new accounts through collaborators and referrals from old customers, optimizing the "Refer a Friend" program through VPBank NEO application Exploit customers to deposit savings through managing existing customer files using payment accounts Besides, the increase in the number of customers opening online payment accounts also increases the percentage of customers opening online savings accounts and helps banks easily find potential customers in them At the same time, increase access to new customers through regularly organizing local marketing sessions and through popular social media channels (google, facebook, zalo, instagram ).
- Having a separate treatment policy for priority customers: in addition to special interest rate incentives, it is necessary to maximize the accompanying benefits to strongly promote this customer segment (business class lounge , VIP tickets, refunds, credit limit extensions ).
3.2.2 Developing a diversified and comprehensive system of products and services
In order to attract customers to experience and stick around for a long time, one of the key factors is the level of customer satisfaction with the products and services that the bank provides Over the years, VPBank has performed very well in constantly innovating, creating, and adapting flexibly, so up to now, the TGTK product ecosystem is very diverse and almost meets all of them the basic needs of depositing customers today Therefore, in order to develop further, the bank needs to come up with reasonable solutions and directions to develop a more complete and diversified product and service system, through:
- Encourage customers to use key products in the development orientation of the bank such as "Luck and Prosperity", "Prosperity-Preserved".
- Try products with flexible saving forms:
+ Besides savings products for children under 14 years old, the bank may consider offering products specifically for elderly and retired customers This is a group of customers with great potential, with idle money accumulated after a lot of working age but has not been fully exploited due to difficulty in access.
+ Automatically add to the customer's current account: for regular customers who maintain a high payment account balance, customers can register for the service and request the bank to periodically transfer money automatically from a checking account to a savings account for customers without having to do so many times.
+ Offering savings account packages to serve the needs of using large amounts of money in the future such as buying, building, repairing houses, implementing business plans, buying land, buying cars In this case, the bank can receive savings deposits from customers making periodic installments Up to a specific time when customers have demand, the bank makes the payment and considers lending more to customers to provide sufficient and timely money for customers.
- Integrating accompanying products and services in the form of versatile savings account products by combining savings accounts with selling life insurance, opening beautiful digital accounts, overdraft accounts, life utilities (eating and drinking, tourism, entertainment, training, health, education ) At the same time, promote cross-selling activities to fully exploit customer needs and convince customers to use multiple products simultaneously and stick with the branch for a long time.
- Strengthen cooperation with organizations and brands with high recognition and customer base in business lines serving daily life needs to bring more benefits to customers.
- Conduct research, learn from other branches in the same system, and other effective bank branches Analyze and evaluate directions, strategies and policies to promote effective products and create strengths of other branches to learn and perfect their deposit product system At the same time, learn, analyze and evaluate the deposit niches that other branches in the area have not yet exploited effectively to find breakthrough directions for the bank.
3.2.3 Strengthen marketing activities, promote brand image
Approaching and attracting customers to use products as well as trust to open savings accounts must be based on the premise that customers have distinguished the brand and have an overview of VPBank The enhancement of VPBank's image is the first step for the bank to exploit potential customer sources, creating the basis for capital mobilization activities in the future At the same time, marketing activities also help customers understand the bank's products and services, connect the value created by the bank with their needs and benefits, thereby leading to the intention to experience and use the bank’s products Accordingly, banks can improve the effectiveness of marketing activities by:
- Strengthen the promotion of images, products and services through reputable television channels, websites, newspapers, and popular social networking platforms.
Thereby, fully and continuously update outstanding products, interest rate policies, and attractive incentives to customers.
- Strengthen local marketing activities, attract local customers to experience. Increase leaflet distribution activities during marketing programs Thereby, creating awareness and improving the brand coverage of the bank in the area of operation and surrounding areas.
- Offering attractive gratitude gifts to customers on the occasion of the program to promote deposit mobilization in addition to the preferential interest rate submission policy, with the values depending on the deposit level of each customer.
- Enhancing prestige and increasing awareness through regularly sponsoring meaningful contests and programs of medium and large scale in the area of operation.
- Regularly informing and grasping the marketing policies of other banks to learn and draw experience, thereby having reasonable and less risky marketing policies.
- Conduct polls and surveys on the level of brand recognition and people's understanding of VPBank Ham Nghi through online and direct surveys periodically (monthly, quarterly, annually) From there, make comments, analyze, evaluate and offer effective solutions to effectively bring VPBank's brand closer to the public.