Topic improve the quality of internet banking services atjoint stock commercial bank for foreign trade of vietnam(vietcombank)

NATIONAL ECONOMICS UNIVERSITY FACULTY OF BUSINESS MANAGEMENT *** BUSINESS RESEARCH METHODS REPORT Topic: Improve the quality of internet banking services at joint stock commercial bank for foreign trade of Vietnam (Vietcombank) Instructor: Mrs Nguyen Thi Hong Van Class : DSU 6A Group member :4 Student full name : Vu Nguyen Khuong – DSU06038 Thai Ba Quang – DSU06055 Tran Khoi Nguyen – DSU06050 Nguyen Anh Kiet – DSU06037 Hanoi - 2022 TABLE OF CONTENTS 1: THE REASON FOR CHOOSING THE TOPIC 2: RESEARCH PURPOSE AND RESEARCH QUESTIONS 2.1: General purpose of research 2.2: Research questions 3: RESEARCH OVERVIEW .3 Previous studies 4: THEORETICAL FRAMEWORKS AND DESIGN TO CHOOSE SAMPLES 5: RESEARCH METHODS .17 5.1: The method of data collection .17 5.2: Statistical methods 17 5.3: Methods of analysis and synthesis 17 6: EXPECTED RESULTS TO BE ACHIEVED .17 7: PLAN/SCHEDULE OF RESEARCH IMPLEMENTATION 18 LIST OF REFERENCES 20 This is a preview Do you want full access? 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Log in 1: THE REASON FOR CHOOSING THE TOPIC Nowadays, the demand for banking services is increasing, especially with the strong impact of the 4.0 technology revolution, e-banking services have emerged as an essential requirement, in which Internet Banking service is available This activity has increasingly contributed significantly to the profits of commercial banks Vietcombank is one of the pioneer banks in developing Internet Banking services and has achieved many successes However, the problem here is whether VCB has properly invested in the quality of the service or not Today, service quality is an important factor determining the success of a bank Customers using the service are not only interested in the cost but also the service quality 2: RESEARCH PURPOSE AND RESEARCH QUESTIONS 2.1: General purpose of research The thesis focuses on studying the current situation of internet banking service quality of VCB, thereby proposing some solutions to develop and improve the quality of e-banking services for VCB 2.2: Research questions On the basis of theoretical research and actual situation of Internet Banking service business at Joint Stock Commercial Bank for Foreign Trade of Vietnam, pointing out the causes of service limitations and proposing measures and recommendations to contribute completing and improving the quality of Internet Banking services at Vietcombank This article aims to answer the following research questions: - What is the status of Vietcombank's Internet Banking? - What are the shortcomings and limitations? - What solutions and policies can be improved and improved? 3: RESEARCH OVERVIEW The article is based on the essay "Improving the quality of mobile banking services at Joint Stock Commercial Bank for Foreign Trade of Vietnam" by MSc NGUYEN THI MY Diem - Dr TRINH XUAN HOANG (Faculty of Finance and Accounting, Nguyen Tat Thanh University) Internet Banking service started appearing in Vietnam since 2004 until now, it is increasingly popular, the number of banks providing and customers using the service is increasing Internet Banking was initially deployed in Vietnam with only banks participating in providing services, then gradually increased in 2008, this number has increased to 20 banks and as of June 30, 2015, most of Internet Banking Commercial banks all provide internet banking services Vietnamese commercial banks effectively deploy towards the most convenience for customers in transactions with banks Accordingly, Internet banking services of banks provide customers with the following features: Online personal financial management; Online savings; Borrowing Online; Using payment, collection and online services; Online shopping with a variety of goods and services at major payment gateways in Vietnam: eBay, TVshopping, muaban.net, VietnamAirline, AirMekong, Jetstar, megastar, vinagame; Register for Online service On May 15, 2002, Joint Stock Commercial Bank for Foreign Trade of Vietnam opened VCB-online, removing barriers of time and space, meeting customers' needs, implementing one-stop deposit and multi-door withdrawal In January 2008, the bank implemented internet banking to be able to provide the best service, perform all transactions for customers wherever they are According to the survey data in August 2010 of Vietcombank over 9,000 customers, the satisfaction rate with Internet Banking service is 70% With a strict automated execution process that has conquered a large number of customers, that is, every transaction that a customer makes will be sent to the server for order scanning, immediate processing of standard orders , for wrong orders, the machine will resend and the payer will consider and resolve it within 24 hours from the time the order is entered, ensuring the fastest resolution, saving time for customers Previous studies C K Sunith, 2018, “Customer Satisfaction in E-Banking Services” The author's research aims to determine the level of customer satisfaction when using ebanking services By identifying factors affecting customer satisfaction, the author proposes solutions to develop e-banking services: creating many new products in business strategy, focusing on introducing new products and services new technologies and new strategies to customers to change customer preferences and behavior while retaining existing customers Perkins, Ed-Zilla and Annan, Jonathan, 2013, “Factors affecting the adoption of online banking in Ghana: Impliacations for bank managers” International journal of Business and Social Research (IJBSR) On the basis of analysis from the research model of technology acceptance TAM (Technology Acceptance Moldel) with independent variables research has pointed out the factors that have a great influence on the acceptance of using internet banking services in Ghana such as people, technology, safety and security Vu Hong Thanh, Vu Duy Linh (Banking Magazine No 11-2016) with the article "Development direction of Mobile Banking services for Vietnamese banks" stated the basic services, types of , benefits as well as risks when using Mobile Banking service as well as the trend of this type of service in the world However, this article still omits a form of this type of service that is to use services based on other internet platforms such as computers, high popularity and security 4: THEORETICAL FRAMEWORKS AND DESIGN TO CHOOSE SAMPLES To evaluate the actual quality of Internet Banking services provided by Vietcombank to customers, whether to bring satisfaction to customers or not At the same time, based on Parasuraman's Servqual model theory and other studies on the topic of service quality, the author conducted a survey to collect customer evaluations of IB services through emailing and handing out the survey directly at This is a preview Do you want full access? 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Log in the bank (Survey sheet attached in the Appendix) The target customers to conduct the survey are customers who have a transaction account at Vietcombank Survey results: a total of 200 survey questionnaires were sent to customers, obtained 178 valid votes, 22 votes did not respond (mainly from email) or did not meet the requirements for the survey Out of 178 valid receipts, the majority of customers used VCB's Internet Banking service, accounting for 93.3% The remaining customers not use the service because they have no need and not know the service AGE SEX 12.04% 9.05% 6.02% 34.94% 48.00% 52.00% 37.95% Male 50 30-39 OCCUPATION 17.00% 4.00% 13.00% 10.91% 7.80%7.20% 66.00% 74.09% Common After college Intermediate College College Housework Staff Other Based on the collected survey data, the author has made statistics by specific model as follows: - Gender of customers participating in the survey: 52% male, 48% female - The gender structure does not have a big difference, so it is acceptable - Age: customers who participated in the survey and used the service accounted for 37.95% with age from 30-39 years old followed by 18-29 years old accounting for 34.94% - Professional qualifications: the highest rate of 74.09% of customers have college or university degrees - Occupation: 66% are officers and employees - In the survey on service access, 48.2% of customers know about Internet Banking service through the introduction of friends, relatives and colleagues This is understandable, because VCB has a large number of account opening customers and large transaction needs, so the bank's customers themselves are also an effective channel for promoting and introducing products Followed by survey data, there are 39.1% customers know about the service through staff at the bank when customers come to make transactions, the remaining 12.7% of customers know about the service through the Internet, newspapers this is also a fairly high rate, proving that the group Customers who want to use the service still have to actively search for information from the mass media and banks There are also no good methods to reach these target customers - In order to assess the level of customer satisfaction about Vietcombank's Internet Banking service, we have designed an evaluation survey with a scale of to for each criterion STT Level of satisfaction Criteria Very Very Dissatisfied Natural Satisfied Dissatisfied Satisfied I Reliability Does VCB provide useful services as committed? VCB quickly processes transactions, less exit processing VCB staff actively resolve customer complaints in a timely manner VCB's reputation Full transaction documents, clearly and accurately identified II Responsiveness VCB homepage is always stable and continuous The IB system processing the transaction encountered an error VCB staff is always ready to help customers 10 Reasonable transaction limit (limit / day) Procedures and procedures for service registration at VCB are reasonable 11 III VCB collects service fee Assurance Account 12 information is covered by VCB for safety and security This is a preview Do you want full access? Go Premium and unlock all 19 pages Access to all documents Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? Log in Customers feel 13 safe when using Internet Banking for transactions VCB staff is expected to have 14 15 professional knowledge to handle customer complaints and inquiries quickly and satisfactorily Private VCB staff is still enthusiastic and convincing IV Empathy VCB has many 16 customers care programs (promotions, gifts.) Customers sympathetically wait for VCB to 17 handle the problem when the system fails due to overload V Tangibles The utility and features of Internet 18 Banking are diverse, meeting the needs of customers 19 The service is provided quickly, accurately, and easy to use 20 Spacious facilities, wide transaction network, convenient for customers VI Satisfaction 21 Are you satisfied with the quality of Internet Banking service of VCB? VCB's Internet 22 23 Banking service meets your needs well VCB's Internet Banking service is better than other banks After the survey, this is the result we got: STT Criteria I Reliability Average score Does VCB provide useful services as committed? VCB quickly processes transactions, less exit processing 3.9 VCB staff actively resolve customer complaints in a timely manner 2.5 VCB's reputation 4.6 Full transaction documents, clearly and accurately identified II 4.3 3.1 Responsiveness VCB homepage is always stable and continuous The IB system processing the transaction encountered an error 3.3 VCB staff is always ready to help customers 3.5 Reasonable transaction limit (limit / day) 3.6 10 2.7 10 Procedures and procedures for service registration at VCB are reasonable 3.4 11 VCB collects service fee 2.9 III Assurance 12 Account information is covered by VCB for safety and security 4.1 13 Customers feel safe when using Internet Banking for transactions 14 VCB staff is expected to have professional knowledge to handle customer complaints and inquiries quickly and satisfactorily 3.5 15 Private VCB staff is still enthusiastic and convincing 3.2 IV Empathy 16 VCB has many customers care programs (promotions, gifts.) 2.7 17 Customers sympathetically wait for VCB to handle the problem when the system fails due to overload 2.5 V 18 Tangibles The utility and features of Internet Banking are diverse, meeting the needs of customers 4.5 19 The service is provided quickly, accurately, and easy to use 4.3 20 Spacious facilities, wide transaction network, convenient for customers 4.6 VI 21 Satisfaction Are you satisfied with the quality of Internet Banking service of VCB? 22 VCB's Internet Banking service meets your needs well 23 VCB's Internet Banking service is better than other banks 4.1 3.3 => General comments about the quality of Internet Banking services at Vietcombank that customers evaluate as follows: Reliability: In terms of reputation, it can be affirmed that Vietcombank is the most prestigious state-owned bank today, as evidenced by the constantly growing banking system and the number of customers' choice Vietcombank is more and more The bank also provides services as promised to customers, working clearly to provide complete transaction documents It can be seen that customer evaluation of VCB is one of the banks with high reliability 11 This is a preview Do you want full access? 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Log in Responsiveness: VCB – IB@nking old web version guaranteed ensuring the simple and easy-to-understand elements for customers, but not yet reaching the attractiveness, friendliness, and not paying attention to customer experience The newly released version has tried to overcome this drawback and began to receive good feedback from customers The transaction processing speed is fast, especially the transaction with the same system and the fast money transfer from the other system However, the customer's complaints about the error condition are still recorded, there is a case that after the customer enters all the information to conduct the transaction, the transaction is not performed while the customer account However, customers still have to deduct money, leading to customers having to contact the bank many times to check the transaction, while the time to check for online transactions is quite long (from 5-7 working days) The reason to explain this is that the transmission line is often overloaded due to the amount of banking transactions great Besides, the customer service fee rate is not high, customers also complained that the bank has collected many unreasonable fees compared to other banks since VCB's fee schedule changed on March 1, 2018 reduce customer satisfaction with the service Assurance: in terms of security, the service is customer reviews are quite good, proving that customers are assured of using the bank's internet banking service for transactions Customers after registering to use the service at the counter will be provided with registration information including username and activation password sent by email to the registered email address of the customer The username is the customer's account cif number, and this sequence is known only to the customer and the bank The password management system is guaranteed by the system according to the safe and secure procedures according to the PCI DSS standard (PCI DSS Payment Card Industry Data Security Standard, which is a mandatory standard for any relevant organizations and businesses to the processing of payment card data) To increase user authentication system When logging in, in addition to the requirement to use username and password like other systems, Internet Banking system provides each customer with a solution to generate a password that is automatically used once when transacting called OTP (One Time Password) and 12 that password is sent on an SMS message to the customer or VCB's OTP collection device Particularly for the data transmitted and received between the device and the bank, it is encrypted with a secure transmission certificate (SSL certificate), which helps the data on the transmission line to be encrypted, avoiding revealing information about the customer's account when the data is transmitted data is sent from the web side or mobile device to the system server and vice versa For the transactional staff, the consultant is evaluated as enthusiastic and thoughtful, but the consultation only stops at stating the benefits for the customer, but not directing them Provide specific instructions on how to conduct transactions as well as safety precautions when customers use e-banking services Bank staff handled the operation competently, however, at the time of crowded customers, they also revealed confusion when conducting transactions At the same time, the handling of customer service or transaction problems is only supported through the customer support center or directly at the transaction counter without online technical support tools to help quickly solve customer inquiries, save time, effectively increase service quality Empathy: Internet Banking does not have many separate attractive promotions, mainly belonging to the promotions of e-banking in general, the form of promotion is just free money transfer and payment bill, discount phone bill payment For error transactions, the bank needs to check and reconcile, but the time is quite long leading to interruption and inconvenience to customers, so the criterion of waiting for the bank to resolve is not evaluated high Tangibles: Internet Banking of VCB has been met basic transaction needs of customers, which is highly appreciated by customers Service is improved than before with many built-in utilities, easy to use In addition to the basic functions for financial transactions, VCB - IBanking also has additional utilities such as: registration/cancellation, password re-issuance for the accompanying Mobile Banking service; activate/deactivate active SMS –Banking function; register/cancel the service of automatically deducting the account to pay the fixed monthly bill; lock/unlock/register/cancel online payment for VCB card To meet the diverse needs of customers, Vietcombank now also introduces customers to VCB 13 IBanking service with 02 versions for mobile devices for personal use (PC) and for portable mobile devices such as phones, tablets with diverse and friendly features that are highly appreciated by customers Vietcombank has advantages in terms of facilities, service network and strong potential in both capital and technology develop modern payment products and services to meet customers' needs and compete with rival banks A small point is that there are not many service manuals, just stopping at leaflets or demo instructions on the bank's website, making the customer advisors also lack more modern sales tools Satisfaction: In general, customers are quite satisfied with VCB's Internet service because it quickly and conveniently meets customers' needs However, the service is still not really different and superior to other banks Survey results on service recommendation questions show that 58% of customers choose to recommend to friends, relatives, partners and colleagues to use the service Internet Banking of Vietcombank This shows that the quality of service is highly appreciated to bring satisfaction to customers, but the bank also needs to have timely solutions to increase the level of empathy and responsiveness of the service It is also necessary to diversify more features, provide more utilities to attract more customers to use the service Evaluation of Internet Banking service quality of Vietcombank Strengths: For banks - Cost savings: Vietcombank's Internet Banking service helps banks save a lot of costs, due to having to hire staff and invest in premises, as well as equipment Thanks to the application of high technology, banks have reduced a significant number of employees, especially inefficient employees - Save time: An employee can make thousands of transfer transactions in Vietcombank's Internet Banking in a day, while doing it the traditional way only makes a few hundred transactions In addition, through Internet Banking services of Vietcombank, orders on payment and collection from customers are executed quickly, creating favorable conditions for monetary capital to move quickly and conveniently transactions and exchange of money - goods, thereby, speeding up the circulation of goods and currencies, improving the efficiency of capital use 14 This is a preview Do you want full access? 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Log in - Increased competition: Electronic transactions are an indispensable need for the banking industry It affirms the bank's technological capabilities and position in the eyes of customers In particular, Vietcombank's Internet Banking service can provide cross-service Accordingly, banks can link up with insurance companies, securities companies and other financial companies to offer convenient products to meet all customer needs for related services: banking, insurance, investment, securities It is the utility gained from application technology, from software, from network service providers that attracts and keeps customers using, relationship, transaction with the bank, become a traditional customer of the bank For customers: - Save time and cost: This system helps customers save a lot of time and money Just have registered for e-banking service, instead of going to the place to queue and wait, customers just need to sit at the spot, perform a few operations to be able to transact with the bank and the bank will Fulfill customer requests in just a few minutes Not only customers save a lot of travel costs, but the worries about traffic jams and complicated papers are no longer a concern of customers The time they save, they can invest more in their business Moreover, the transaction cost of Vietcombank's Internet Banking service is also much lower than other services - Flexibility: Transactions can be made anytime, anywhere and businesses can issue orders without having to be present at the same time as the accountant and account holder at the company Not only that, Vietcombank's Internet Banking service has really become an effective support tool to help customers proactively check their financial situation - Unit leaders can sign and approve transaction documents anytime, anywhere, and can - Safety and security: One more factor to ensure peace of mind for customers is that the data is highly secure because it is encrypted before sending and receiving thanks to digital authentication technology Moreover, customers also have the opportunity to get acquainted with e-commerce for free through a modern form of payment to gradually integrate into the international economy Weaknesses For banks: 15 - Information technology infrastructure: To invest in e-banking services, banks need a large amount of capital This is something that not all banks have The problem of information technology infrastructure or specifically investment capital is always the first issue that banks that want to develop this service must think about - Human resources: Although using Vietcombank's Internet Banking service helps the bank to reduce a significant number of human resources, the bank has to invest more in the quality of its human resources In order to have a qualified staff, capable of applying high technologies, the bank must send employees to study and improve their qualifications, and at the same time must recruit highly qualified employees Use technical experts This inevitably leads to the cost for these employees is not small - Information security issues: Information security is always a concern of customers when using Internet Banking services of Vietcombank In order to gain the trust of customers, banks have no choice but to improve the security of customer information However, this is not easy In the world today, security is still a concern For customers: - Investment in technology: To participate in e-banking, customers need to have a computer or other electronic means and must buy services from a service company, this is an investment cost not small at first - Lack of “hot” information: Many customers still want to deal directly with bank staff so that they can interpret it more easily Through Internet Banking service of Vietcombank, customers cannot receive complete information like through a fulltime officer of the bank Customers will lose the opportunity to exchange information with customers, grasp the new, "hot" situation at the bank's transaction place 5: RESEARCH METHODS 5.1: The method of data collection Collecting secondary data from Annual Reports, website of Joint Stock Commercial Bank for Foreign Trade of Vietnam from 2016 to 2019 16 5.2: Statistical methods Primary information is collected from the survey sent via personal email of customers using Internet Banking service at Vietcombank in the form of a questionnaire The number of survey questionnaires distributed was 200 questionnaires to assess customer satisfaction on the following factors: service fees, friendly transactions, utilities, security technology, etc Confidentiality, customer care policy The questionnaire is built on the basis The SERVQUAL model (Parasuraman) - was created by researchers in 1985 to measure and drive quality in the service and retail sector The survey was conducted from September 2022 to October 2022 5.3: Methods of analysis and synthesis Based on revenue, cost and profit reports, compare values between years to evaluate service business results, compare data with rival banks to make comments advantages and shortcomings encountered in service quality, thereby recommending appropriate solutions Aggregate information to clarify the current status of Internet Banking service quality at Joint Stock Commercial Bank for Foreign Trade of Vietnam 6: EXPECTED RESULTS TO BE ACHIEVED Firstly, Vietcombank offers the right business motto that is always to improve service quality, improve reputation, and build trust with customers Secondly, the quality management of IB services is in the regulations on quality management of e-banking services, so it has been standardized into a business process that meets objective requirements, follows the retail model, applies using modern advanced technologies to bring benefits to both banks and customers Professional processes are strictly followed by employees, strengthening cooperation between departments, working together towards the common goal of productivity and quality of products and services Thirdly, Vietcombank Vietnam's network of activities is constantly growing, in important key areas of the country, there are transaction offices of the bank to 17 This is a preview Do you want full access? 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Log in facilitate customers to access banking services IB services Transaction offices and branches specifically arrange managers for each area to expanding customer network Fourthly, although the economy has faced many difficulties in the past time, the competition in the financial-banking field is very fierce in the whole country, but the results obtained by the bank are relatively good growth Fifth, the products of e-banking services, including IB, have diversified the utilities provided by the bank, contributing to enriching Vietcombak's products and services, thereby attracting a large number of customers number of customers participating in transactions with the bank 7: PLAN/SCHEDULE OF RESEARCH IMPLEMENTATION To achieve the set plan, VCB estimates from to years to receive opinions from customers to improve the quality, overcome weaknesses, and enhance the strengths of Internet banking From the first to years, Vietcombank continues to promote the improvement of service quality, improve its reputation, and build trust with customers More development in Internet banking management, further development of VCB's network In the next to years, compete and lead the trend of using Internet banking in Vietnam, attracting more customers from IB services and expanding more IBrelated services to increase the total revenue of the group 18 LIST OF REFERENCES Vietcombank, Vietcombank Annual Report 2016, Hanoi Vietcombank, Vietcombank Annual Report 2017, Hanoi Vietcombank, Vietcombank Annual Report 2018, Hanoi Vietcombank, Vietcombank Annual Report 2019, Hanoi Vu Hong Thanh and Vu Duy Linh, 2016 Development direction of Mobile Banking services for Vietnamese banks Banking magazine, issue 11, pages 36 – 41 State Bank, 2001, Circular 29/2001/TT-NHNN stipulating safety and security for the provision of banking services on the Internet, Hanoi State Bank, 2015, Circular 47/2014/TT-NHNN requirements for safety and security, Hanoi 19 regulating technical