Solutions to expand card services at petrolimex group bank

1 NATIONAL ECONOMICS UNIVERSITY ADVANCED EDUCATIONAL PROGRAM tậ p Tố Bachelor Thesis tn gh iệ p  : : : : : NGUYEN VIET HAI Ch Student’s name Class Intake Internship guide Supervisor uy ên đề th ực TOPIC: SOLUTIONS TO EXPAND CARD SERVICES AT PETROLIMEX GROUP BANK ADVANCED FINANCE 50 Mr NGUYEN VIET HUNG ASSOC.PROF.DR BUI HUY NHUONG Hanoi, 2012 Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 TABLE OF CONTENTS ACKNOWLEDGEMENT ABBREVIATION LIST OF TABLES LIST OF FIGURES CHAPTER 1: INTRODUCTION 1.1 Rationale iệ p 1.2 Research objective gh 1.3 Research methodology 1.4 Scope of research tn CHAPTER 2: THEORITICAL FRAMEWORK Tố 2.1 Bank card p 2.2 Factors affect the expanding of card services 12 tậ 2.3 Expanding the card services 14 ực CHAPTER 3: OVERVIEW OF PETROLIMEX GROUP BANK 19 th 3.1 The establishment of PG Bank 19 3.2 Vision and Culture .21 đề 3.3 Organizational structure of PG Bank .23 ên 3.4 Strategic Shareholders .24 uy 3.4 Products and Services 25 Ch 3.4 Overview of Hanoi Card Centre .28 CHAPTER 4: CURRENT SITUATION OF CARD SERVICES AT PG BANK 30 4.1 Types and benefits of PG bank cards .30 4.2 Flexicard Issuing Procedure 32 4.3 Fees and Charges of Flexicard 33 4.4 Quality of Flexicard 37 4.5 Distribution and Promotion of Flexicard 37 4.6 The results of Card services of PG Bank in comparison with other banks 38 Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 CHAPTER SOLUTION TO EXPAND CARD SERVICES AT PETROLIMEX GROUP BANK 48 5.1 Overall assessment of card services at PG Bank .48 5.2 Solution to expand card services .52 5.2 Recommendations 55 CHAPTER 6: CONCLUSION 57 Ch uy ên đề th ực tậ p Tố tn gh iệ p COMMENTS Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 ACKNOWLEDGEMENT It is a great pleasure for me to work with the report based on the topic “Solution to expand card services at Petrolimex Group Bank” which is very significant for economy I hope working on the topic will help me to gather various exposures to practical field So, at the very beginning, I would like to express my gratitude to several people who help me to complete this thesis iệ p First of all, I would like to thank National Economics University (NEU), especially Advanced Program, for providing much precious opportunities to know real nature of the gh banking activities through this internship tn Equally important, I am sincerely grateful for all the help and advice I received from my Tố supervisor Assoc.Prof Dr Bui Huy Nhuong, Director of Advanced Educational Programs p of National Economics University I appreciated all time and effort Mr Bui Huy Nhuong ực tậ put into guiding and encouraging me during the time of marking this thesis Also, I sincerely thank all of the staff at Petrolimex Group Bank who gave me favorable đề th conditions, helps and guidance in the days of internship at the bank Lastly, I would especially like to thank all my friends in Advanced Class Intake 50 for all Ch uy ên their encouragement and intellectual support that has made this report possible Student Nguyen Viet Hai Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 ABBREVIATION Petrolimex Group Bank ATM Automated Teller Machine POS Point of sale EDC Electronic Data Capture MOIT Ministry of Industry and Irade Ch uy ên đề th ực tậ p Tố tn gh iệ p PG Bank Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 LIST OF TABLES Table 4.1: Charges for Debit Cards 33 Table 4.2: Charges of withdrawal cash at the Petrolimex petrol stations 34 Table 4.3: Charges for Prepaid Cards .35 Table 4.4: Charges for Debit Cards of Commercial banks 36 Table 4.5: Market share of Total number of bank cards in 2011 .39 iệ p Table 4.6: Market share of Total Used Turnover of bank cards n 2011 .41 gh Table 4.7: Market share of Total Payment Turnover of Domestic cards in 2011 .43 Ch uy ên đề th ực tậ p Tố tn Table 4.8: Market share of ATMS and POSs in 2011 46 Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 LIST OF GRAPHS Graph 2.1: Process of issuing card Graph 2.2: Process of paying card .6 Graph 2.3: 4Ps Marketing mix 15 Graph 3.1: Organizational Structure of PG Bank 23 iệ p Graph 3.2: Organizational Structure of Hanoi Card Centre 28 Graph 4.1: Total number and Market share of PG Bank Flexicards 38 gh Graph 4.2: Total Used Turnover & Market share of PG Bank Flexicards 40 tn Graph 4.3: Total Payment Turnover & Market share of Domestic bank cards 42 Tố Graph 4.4: Total number of ATMs and POSs .44 Ch uy ên đề th ực tậ p Graph 4.5: Market share of PG Bank ATMs & POSs 45 Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 CHAPTER 1: INTRODUCTION 1.1 Rationale Bank cards payment comes from the purchase on credit of retail goods and the application iệ p of technology in banking While bank cards have played an important role in daily life of gh many people all over the world, especially in the developing countries by dint of their usage and convenience, that mean of payment is really attracted Vietnamese people and tn commercial banks in recent years Seeing the born of bank cards in 1995, facts show that p Tố bank cards services of Vietnam increase in services quality to satisfy customer needs tậ Realizing the benefits of development in bank card services, Petrolimex Group Bank with ực their craft strategies has penetrated that new market in order to meet the customer needs th It is undeniable that despite gaining much specific achievement, the bank card services of ên đề PG Bank still be inadequate in some circumstances in reality uy Being a collaborator of Retail Banking at PG Bank, I have experienced in their campaign of issuing cards That is the reason why I choose the topic “ Solution to expand card Ch services at Petrolimex Group Bank ” for my internship report to understand the situation and find the solutions to improve the quality of card services as well as the competitive ability with other commercial banks Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 1.2 Research objective Through this research, I would like to  Study the basic overview of card services of PG Bank  Interpret and evaluate the real situation of card services quality of PG Bank  Propose the solutions to improve the quality of card services as well as the competitive ability of PG Bank with other commercial banks iệ p 1.3 Research questions  What is the current situation of card services at PG Bank? gh  What are the factors affecting card services at PG Bank? tn  What are the existing problems of card services at PG Bank? Tố  What are solutions and recommendations should be carried on to overcome these The methods I would like to use in this report are đề  Statistical method Ch uy  Summary and comparative method ên  Analytical method 1.5 Scope of research th 1.4 Research methodology ực tậ p existing problems and to expand card services at PG Bank? All my research is about the development of card services of Petrolimex Group Bank during 2010 to 2011 Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 10 CHAPTER 2: THEORITICAL FRAMEWORK 2.1 Bank cards 2.1.1 Definition of bank cards Bank cards, the non-cash instrument, are issued by banks for customers A standard bank iệ p card must be required with its three dimensions 8.5cm x 5.5cm x 0.7cm The front of bank gh card needs to have bank trademark, bank logo, embossed card number and user name Equally important, magnetic stripe with encoded information and signature of user must Tố tn be included at the back of bank card p 2.1.2 Main types of bank cards tậ Based on technical features, there are three types of bank cards: Embossed card, ực Magnetic card and Smart card All information is encoded in each type, but in different th levels For instance, embossed card is no longer used because of low level of data đề security Whereas, magnetic card with the magnetic stripe for encoding is the most ên popular at the present, while smart card with all information encoded and secured by a uy microchip is modern with high level of data security Ch Based on payment methods, bank cards are classified in three types: Debit card, Credit card and Prepaid card To specify, debit card allows drawing of funds up to the available balance in cardholder’s account By comparison, credit card allows drawing of funds up to an approved credit limit based on the prestige and payment ability of customers The last type is prepaid card, which is normal card without issuing procedure but limited numbers of money and time period Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 52 The graphs show the number of ATMs of PG Bank nearly indifferent from 2010 to 2011 PG bank only set up two more ATMs in 2011 ATMs system is not included in the development strategies of PG Bank All ATMs are placed at large cities like Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, etc In rural areas, the development of POSs system is very important The year 2011 is seen the increase of number of POSs about 12.4% In the first year after the born of Flexicard, the system of 3,920 POSs is operated efficiently Until the end of 2011, the number of PG bank’ POSs is 4,406 machines In reality, POSs iệ p system plays the most important role in PG bank network system PG Bank does not want to set up more ATMs because with 2,000 petrol stations, the bank also approaches the Ch uy ên đề th ực tậ p Tố tn gh many type of customers Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 53 Graph 4.5: Market share of PG Bank ATMs & POSs (Source: Report of Vietnam Banks Association 2010 & 2011) Because the ATMs network is not the competence of PG Bank, it is easy to understand that it only holds 0.5% of total market in 2010 and 2011 The customers who are familiar with using ATMs of other banks may have the problem in finding one ATM when using the card of PG bank On the other hand, the fact shows that 2011 was seen the rather iệ p significant increase from 6.2% to 7.4% of POSs system, which contributes to the strong gh development of introducing Flexicard to total market However, although transactions at tn ATM are performed much more quickly than tellers or POSs, the risks of losing card or Tố unprotected information may influence the customers’ belief The risks are the problems of the information system of management which include errors of connecting, updating tậ p data process, or maintaining data security Because card activities are continuous and ực online 24/24h, even small errors will cause the large loss directly to the transaction time, and the accuracy of payment activities Developing the POSs system efficiently are đề th demonstrating the increase in total used and payment turnover ên Market share uy Table 4.8: Market share of ATMS and POSs in 2011 Banks Ch (Source: Report of Vietnam Banks Association 2011) Number of ATMs Market share Vietcombank 1,530 13.12% 14,762 27.45% BIDV 1,094 9.43% 4,263 7.92% Asia Commercial Bank 405 3.55% 1,998 3.73% Eximbank 260 2.22% 2,461 4.69% Petrolimex Group Bank 51 0.50% 4,406 7.40% Maritime Bank 103 0.92% 0% Viet A Bank 45 0.43% 347 0.67% Supervisor: Assoc.Prof Dr Bui Huy Nhuong Number of POSs Market share Nguyen Viet Hai – Class: AF Intake 50 54 Total market 10,608 100% 59,540 100% The table shows the surpassing number of ATMs and POSs system of Vietcombank in comparison with other banks Vietcombank with the strong financial competences and decentralized strategy is placed at the top of Vietnamese commercial banks list Another bank also follows that strategy is BIDV, which owns more than 1,000 ATMs and 4,200 POSs The group of large banks has enough condition to that On the other hand, the financial competences of Petrolimex Group not allow the bank to follow decentralized iệ p strategy PG bank cannot concentrate on develop the ATMs system because the high cost gh from purchasing and setting up The number of ATMs of PG Bank is inconsiderable with tn only 0.5% of market share, which is much lower than the other banks, even the same level Tố banks such as Maritime Bank and Eximbank On the other hand, the number of POSs receives the high amount of participation The tậ p reason why there are more than 4,400 POSs is that PG Bank takes advantages of network ực of petrol stations nationwide By dint of develop this POSs system, PG bank is rated as th the fourth on the list of the largest system, which is just lower than Vietcombank, Vietinbank and BIDV The customers can experience the functions of using Flexicard đề such as money transfer, cash withdrawal at more than 2,000 petrol stations instead of Ch uy ên transactions at ATMs Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 CHAPTER tn gh SOLUTION TO EXPAND CARD SERVICES AT PG BANK iệ p 55 Tố 5.1 Overall assessment of card services at PG Bank p 5.1.1 Achievement tậ In 2009, the birth of Flexicard - a versatile and convenient non-cash instrument combined ực Prepaid and Debit features have brought many benefits not only for customers but also for th Petrolimex Group Bank The customers have experienced the advantages of this hybrid đề cards in transactions at ATMs and POSs of PG Bank By dint of introducing this new type ên of cards, PG Bank increases the number of personal and corporate accounts A stark uy example is issuing the new account package named “Golden Account” which is free for Ch many transactions like SMS Banking, Internet Banking and Cash withdrawals Besides, by virtue of taking advantages of a network with 2,000 petrol stations, Petrolimex Group Bank is closer with people in rural areas where not having any branches and transaction offices The facts show that PG Bank is focusing on increase the number of cardholders and card acceptance points (merchants) by issuing 80,000 Debit cards during years to form cobranded name “PG Bank-TopCare” which is in a contract with one of the biggest Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 56 Vietnamese electronic supermarkets The customers can enjoy more benefits from the customers caring program of PG Bank and TopCare through using Flexicards as payment mean for buying TopCare products Another cooperate program of PG Bank is issuing 100,000 domestic Debit cards which named Utility Card for Students Assistance Center HoChiMinh City in order to help the students at universities and colleges with preferential iệ p program of PG Bank 5.1.2 Limitation gh  Types of cards are not diversified yet: tn In the years of cards developing, there are three main types of cards: Debit card, Prepaid Tố card and Hybrid card That is the reason why in fact the card services developing trend of p PG Bank directs to domestic market rather than foreign market Since the appearance in tậ the end of 2009 in the first year 2010, PG Bank issues 385,128 cards, the not bad number ực for the new type of card in Vietnam market The fact has shown that the number of th Flexicard in 2011 increase 23.4% in term of issuing cards Because Flexicard can help đề them to reduce the cost for purchasing gasoline at 50 VND per liter, more and more transportation firms would like to use PG Bank’ cards But lacking of Visa Card and ên Credit Card is the weakness of card services of PG Bank, which results in the total in  Small ATMs network: Ch uy international payment used and turnover of PG Bank are zero While the number of POSs is nearly about 4,400 POSs nationwide, the number of ATMs of PG Bank is inconsiderable with only 0.5% of market share Even during one year, PG bank only set up two more ATMs at the end of 2011 The customers who are familiar with using ATMs of other banks may have the problem in finding one ATM when using the card of PG bank Nevertheless, instead of free withdrawal cash at ATMs, cardholders have to accept small fees at POSs system According to the official website of Petrolimex Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 57 Group bank, the fee for each transaction at POSs is 1,000 VND for payment, balance inquiry and mini statement  The long time purchasing gasoline when using Hybrid Card and Debit Card When consumers come to the petrol stations, after purchasing gasoline, they have to go into the office of station to the online payment All the process takes about two or three minutes from their time If the consumers not have time to wait when using Hybrid iệ p Card and Debit Card to purchase gasoline, the Anonymous Prepaid Flexicard is not bad choice When customers come there, they only have to give the seller the card for doing gh transaction in one or two seconds The anonymous prepaid card is scanned via a POS at p  The long time and high fee of cash withdrawal at petrol station Tố tn petrol station much more quickly than Hybrid Card and Debit Card tậ Flexicard is the unique card which the customers can use to withdrawal cash at the ực Petrolimex petrol stations Even the people in rural areas can use Flexicard to withdraw th cash and transfer money through the system of 2,000 petrol stations of PG Bank spreads đề nationwide The transaction of cash withdrawal is operated by tellers or petrol stations’ staff, which causes the longer time than cash withdrawal at ATMs Especially, the more ên money the cardholders want to withdrawal, the more money they have to pay for fee For uy example, PG Bank charges the customers 25,000 VND for the cash from 15 to 20 million Ch VND By comparison, if they withdrawal at ATM of PG Bank, no fee they have to pay 5.1.3 Reasons  Types of cards are not diversified yet: The reason why the PG Bank’ cards are not diversified depends on financial competences and strategies of PG bank A stark example is Vietcombank, with the strong financial competences and decentralized strategy, that bank usually is placed at the top of Vietnamese commercial banks list The financial competences of Petrolimex Group Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 58 not allow the bank to follow decentralized strategy In domestic market, PG bank seems to hold the more important rating than foreign market In 2010, the bank reached 3.5% of total Vietnamese market, then this figure is 4.2% in the end of 2011, but in international market PG Bank has never issued any Visa Card and Credit Card yet So that, following the trend of international integration need to be more concerned by PG bank After nearly 20 years development, it is the time for PG bank to open the market because of large iệ p benefit which Visa Card and Credit Card can bring to the bank  Small ATMs network: gh In case of ATMs network, it is not included in the development strategies of PG Bank All tn ATMs are placed at large cities like Hanoi, Ho Chi Minh City, Hai Phong, Da Nang, etc Tố The cost for purchasing and setting up the ATM is really high, which not at all banks can p this In rural area, the development of POSs system is the most issue which PG bank tậ concentrates About the fee for each transaction at POSs, it is quite small fee and does not đề th satisfy when doing transactions in comparison with ATM ực actually influence the income of cardholders However, the customers still not totally  The long time purchasing gasoline when using Hybrid Card and Debit Card ên The long time purchasing gasoline is one of the big problems of using Flexicard The uy facts shows that the system of petrol stations of Petrolimex is not equipped with the most Ch modern facilities as developing countries On the other hand, we not have any automatic petrol stations in Vietnam, which causes the customers still have to wait for a while during the transaction with Hybrid Card and Debit Card Because of security the information of customers for Hybrid Card and Debit Card, as well as protect the By dint of this payment method, the customers can regard purchasing gasoline as same as buying goods at supermarket That method is highly appreciated by its safety and the short time transaction Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 59  The long time and high fee of cash withdrawal at petrol station In recent years, PG Bank is going to planning the strategies to be closer with farmers and ethnic minority people because in fact, almost Vietnamese commercial banks rarely can approach them It is clear that building the habit of using non-cash instrument in countryside is not easy in short term Hybrid card is the new type of bank cards in Vietnam It is unavoidable that it needs more years to be popular Nevertheless, the transaction of cash withdrawal is operated by tellers or petrol stations’ staff, which causes iệ p the longer time than cash withdrawal at ATMs Besides, the charge of withdrawal cash which PG Bank applies actually is quite high because the target of this policy is bringing gh the non-cash payment method to farmers and ethnic minority people In addition to this, tn using the system of 2,000 petrol stations for transactions instead of ATMs network causes Tố PG bank will have to deal with problems of fire and pollution, which means more invest tậ p in security and environment protection ực 5.2 Solutions to expand card services th  Diversifying type of cards đề The purpose of this solution is dealing with the problem that PG Bank’ cards are not diversified depends on financial competences and development strategies This is the ên necessary thing PG Bank should in order to compete with other commercial banks in uy the area of Visa and Credit Cards To this, PG Bank also should go along with Ch expanding three types of cards, especially the hybrid cards because it is the very new type of card Issuing credit card is not quite easy, which depends on the credit rating system Nowadays, PG Bank has not set up their credit rating for credit card The bank should cooperate with other financial institution to be helped to building this system The credit line really depends on the income of Vietnamese people PG Bank should set out the reasonable credit line in order to avoid the credit risk The credit card allows its holder to buy goods and services based on the holder's promise to pay for these goods and services The PG bank creates a revolving account and grants a line of credit to the cardholders for Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 60 borrowing money for payment to a merchant or as a cash advance to the users Credit risk is bank's risk of loss arising from cardholder who does not make payments as promised If this situation appears in large scale, the PG bank can go bankrupt because of much loss of capital Visa Card is also the one type of card PG should issue in near future The people who use Visa Card usually are high income people, especially the foreigners In the opening economy, approaching the foreign customers is necessary It can bring more chances to cooperate with large firms in the world iệ p Diversifying the types of cards will enable PG Bank to expand their market, find the new customers, meet the need of more people and approach the foreign capital and investment gh opportunities which are not easy to find in domestic market When PG Bank diversifies tn their bank card, the bank will have the better position on the map of total Vietnamese Tố bank cards with higher number of cards as well as higher total payment turnover tậ p  Expanding the ATMs network ực This solution is suggested to solve the problem of small ATMs network of PG Bank In th this case, the number of ATMs of PG Bank is inconsiderable with only 0.5% of market đề share in comparison with other banks The customers who are familiar with using ATMs of other banks may have the problem in finding one ATM when using the card of PG ên bank Although in fact the costs for purchasing and setting up the ATMs are very high, uy PG bank can finance through mobilization from other institutions or the bank’ revenue In Ch this year 2012, PG Bank should invest more money to build up more than 50 ATMs and brings them to be closer to customers not having just only focus on development of POSs The ATMs should be placed especially in the large cities, where the need for transaction is high In rural areas, it is really difficult to set up the ATMs system But PG bank should approach them as soon as possible The benefit of this solution is that the cardholders of PG Bank can be easier to cash withdrawal or money transferring, which contributes to improve the card services of PG Bank Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 61  Invest more modern equipment for doing transaction at petrol station This purpose if this solution is dealing with the problem of the long time purchasing gasoline when using Hybrid Card and Debit Card Because of disadvantage of losing the customers’ time, the cardholders of Hybrid Card and Debit Card are not attractive to the payment of purchase gasoline by cards Even the transportation companies, they also encourage their drivers use Anonymous Prepaid Flexicard In this case, PG Bank should iệ p follow this strategy by cooperating with IT companies in the world to buy or invent the new automatic petrol stations in Vietnam In addition to this, PG Bank should increase the gh discount for Hybrid Card and Debit Card to be higher than Anonymous Prepaid Flexicard tn The more money the customers can save, the more transactions they would like to at Tố petrol station p The benefit of this solution is improving the quality of payment when purchasing tậ gasoline In near future, Vietnamese people would like to use the automatic petrol stations ực like the developing nations, which is more convenient and easier for each transaction It th means that the existence and efficiency of PG Bank’ Flexicard is much more highly đề appreciated ên  Reduce the fees for cash withdrawal at petrol station uy This solution is suggested to solve the problem of quite high fee for cash withdrawal at Ch petrol stations The reason for this is the fees from 6,000 – 25,000 VND not attract the customers especially the farmers and ethnic minority people In order to be closer with customers, PG Bank should reset the fees from 2,000 – 12,000 VND depend on the transferring money It is clear that farmers and ethnic minority people, who not have much money to pay for each transaction Actually, PG Bank needs to introduce the bank cards to rural areas, not only by communication mass media, but also by bankers, especially the Personal Finance Consultant (PFC) By recruitment programs, PG bank should build the staff of bankers nationwide who are ready to approach the new areas to Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 62 find customers Besides, PG bank should contact with rescue organizations to deal the unfortunately problems of fire and pollution The benefits of this solution are the view of customers with transactions at petrol station is improved Everyone would like to withdrawal cash and transfer money at safe and convenient places iệ p 5.3 Recommendations 5.3.1 Recommendations related to the Government gh  Establishing legal system to protect the benefits of all parts involved in card tn services: card holders, cards issuing bank, settlement bank, and merchants by Tố prevention of crime of Ministry of Public Security and Economic Police It is p necessary in the high technology era, because of the risks from fraud cards, fraud tậ payment, and fraud issuing ực  Proposing policies to encourage using card in Vietnam: reduce the current tax rate th of service from 10% to 5% and open personal bank account for all employees to đề pay wages The law and the administration of State Bank of Vietnam affect directly affect not only development of the cards business but also the risk uy Ch frequently risks will appear ên management The more clearly and closer the policies are with real facts, the less 5.3.2 Recommendations related to the State Bank of Vietnam  Supervising and preventing the fraud of cards through specific legal document as well as The Government The role of SBV is very important to the commercial banks, because SBV manages the overall activities of banking industry  Encouraging card business activities in Vietnam: The cooperation among commercial banks plays the prerequisite role in the development of card business Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 63 activities in Vietnam Vietnam Card Association needs regularly update information and organize exchanging the experience courses among them 5.3.3 Recommendations related to the PG Bank  Improving staff’s lever: Bankers who are the people directly work in card services environment, have clearly understand about payment process, and fraud behaviors By dint of their accumulated experience and working awareness, the staffs provide iệ p their banks easier access to avoid the risks, and restrict the losses The more bankers are professional, the more benefits the banks can achieve to enhance the gh quality of card services PG Bank need to consider the development of human tn resources in order to have a staff of good bankers In this case, bank should give Tố more incentive to its employees, improve their working condition, and encourage tậ p them to sell cards as much as they can ực  Suggesting promotion programs: In highly competitive economy, the bank cards th services have to satisfy the customer need by the reasonable issue and payment đề fees because the income of customers are different Banks should enable every customer, especially poor people to approach the new payment method If the ên banks not care for their potential customers in long term, the banks will lost uy them because the other banks encourage the customers to use their product with Ch higher quality The high pressure among banks actually brings more choices for customers, which results in the development of bank card services in each bank Frequent presents and promotion programs can attract more customers come to PG Bank Besides the programs PG Bank has done such as saving and getting Iphone4 or Honda Civic, more programs will bring more benefit to customers and PG Bank  Doing innovation and modernization of banking technology: The technology risks are the problems of the information system of management which include errors of Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 64 connecting, updating data process, or maintaining data security Because card activities are continuous and online 24/24h, even small errors will cause the large loss directly to the transaction time, and the accuracy of payment activities Science and technology is increasingly playing the importance role in modern banking sector of economy Renovation and modernization of banking technology will promote the advantages and create better condition in that business such as reduce the transaction time, secure and improve the quality of card services iệ p CHAPTER gh CONCLUSION tn Card services play an important role in evaluation the efficient of transaction between Tố personal and corporate customers It is inevitable that expanding the card services is the p mission of every bank Through analyzing the current situation of Petrolimex Group bank, tậ it is the fact that PG Bank continuously provides the superior, proactive card services to ực niche markets nation-wide in the hope of becoming one of the leading commercial bank th in Vietnam From the birth of Flexicard, the very first type in Vietnam with the traditional đề magnetic strip card technology and chip card technology integrated on the same card, PG ên Bank desires to provide the customers, shareholders and partners services with best uy quality However, during its development, some limitations are unavoidable That is the problem Ch with diversification types of cards, ATMs network, high cost and long time transactions Actually I accept all the solutions which everyone mentioned before, but in my thesis assignment I sincerely recommend PG bank some methods to deal with the current issues I hope this thesis is really helpful for PG Bank Thanks to the internship period, I have a wonderful opportunity to apply what I learnt at university in reality As a collaborator of the Retail Office of PG Bank, I am happy to work and experience professional working environment Honestly, I desire to comeback to PG Bank and work as an official banker in near future Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 65 iệ p REFERENCES gh Vietnamese: Phan Thị Thu Hà (2007) Ngân hàng thương mại Nhà xuất Đại học Kinh tế tn quốc dân, Hà Nội Tố Tô Ngọc Hưng (1993) Tiền tệ, Ngân hàng Thị trường Tài Nhà xuất p Khoa học kỹ thuật, Hà Nội tậ Báo cáo thẻ Hiệp hội Ngân hàng 2010 th ực Báo cáo thường niên Petrolimex Group bank (2008, 2009, 2011) đề English: ên Peter S Rose, Sylvia C.Hudgins Bank Management and Financial services (Eighth uy edition) Saunders/Cornett Financial Markets and Institutions (Fourth edition) Ch Philip Kotler Principles of Marketing (12th edition) Website: - Official Website of Petrolimex Group bank http://www.pgbank.com.vn - Official Website Vietnam Bank Association http://www.vnba.org.vn/ - FlexiCard – Non-cash payment for petrol and cash withdrawals at Petrolimex-run stations nationwide http://www.petrolimex.com.vn/Desktop.aspx/Content-Page/News-Release/FlexiCardSupervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50 66 Non-cash_payment_for_petrol_and_cash_withdrawals_at_Petrolimex- Ch uy ên đề th ực tậ p Tố tn gh iệ p run_stations_nationwide/ Supervisor: Assoc.Prof Dr Bui Huy Nhuong Nguyen Viet Hai – Class: AF Intake 50