Solutions to develop consumer loan at southeast asia bank da nang branch, dien bien phu transaction office, period 2020 2022 2

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL PSU FACUTY  - GRADUATION THESIS SOLUTIONS TO DEVELOP CONSUMER LOAN AT SOUTHEAST ASIA BANK - DA NANG BRANCH, DIEN BIEN PHU TRANSACTION OFFICE, PERIOD 2020 - 2022 INSTRUCTOR : Ms LUU THI THU HUONG STUDENT : LE VAN THIEN STUDENT CODE : 25212401748 CLASS : K25 PSU QNH Da Nang, May, 2023 DISCLAIMER I hereby declare that the data and research results in this thesis are truthful I also hereby certify that the information cited in this thesis has been clearly identified Thesis author Le Van Thien ACKNOWLEDGEMENTS After studying and researching, I have completed the topic "Solutions to develop consumer lending activities at Southeast Asia Commercial Joint Stock Bank - Da Nang Branch - Dien Bien Phu Transaction Office." During the process During the implementation process, I received the guidance and enthusiastic support from the teachers I would like to sincerely thank the dedicated and thoughtful help of Th.S Luu Thi Thu Huong who directly guided me to complete the thesis I would also like to thank the enthusiastic support of the aunts and uncles, brothers and sisters in the Board of Directors and the staff of Southeast Asia Commercial Joint Stock Bank - Da Nang Branch - Dien Bien Phu Transaction Office for Help me complete this thesis and create favorable conditions in the data collection process, I sincerely thank you! Thesis author Le Van Thien TABLE OF CONTENTS DISCLAIMER ACKNOWLEDGEMENTS LIST OF ABBREVIATIONS LIST OF TABLES INTRODUCTION CHAPTER THEORETICAL BASIS ON CONSUMER LIVING ACTIVITIES 1.1 Overview of commercial banks' lending activities .4 1.1.1 Commercial Bank lending concept 1.1.2 Principles of lending of commercial banks 1.1.2.1 Use capital for the right purposes as agreed in the credit contract 1.1.2.3 Loans of equivalent value as collateral 1.1.3 Loan classification of commercial banks .5 1.1.3.1 Classification by time (loan term) 1.1.3.2 Classification by collateral .5 1.1.3.4 Sort by nature of return 1.1.3.5 Sort by refund method 1.1.3.6 Classification by loan method 1.2 Consumer lending activities of commercial banks .7 1.2.1 Consumer loan concept .7 1.2.2 Features of consumer lending .7 1.2.3 Classification of consumer loans 1.2.3.1 According to the loan term .7 1.2.3.2 According to the purpose of using the loan 1.2.3.3 According to the refund method 1.2.3.4 In the form of loan guarantee 1.3 Expanding consumer lending activities of commercial banks .8 1.3.1 The concept of expanding consumer lending activities .8 1.3.2 Indicators reflecting consumer lending activities of commercial banks 1.3.3.Factors affecting consumer lending activities of commercial banks .11 1.3.3.1 Subjective factors 11 1.3.3.2 Objective factor 14 Conclusion Chapter 15 CHAPTER SITUATION OF CONSUMER LENDING AT SOUTHEAST ASIA COMMERCIAL BANK – DIEN BIEN PHU - DA NANG BRANCH 16 2.1 OVERVIEW OF SOUTHEAST ASIA COMMERCIAL BANK – DIEN BIEN PHU - DA NANG BRANCH 16 2.1.1 Overview of Southeast Asia Bank .16 2.1.2 The birth of SeABank Da Nang branch: 17 2.1.3 The birth of SeABank Dien Bien Phu transaction office 17 2.1.4 Functions and tasks of SeABank – Dien Bien Phu 17 2.1.5 Organizational structure of SeABank Dien Bien Phu Transaction Office 19 2.1.6 Business results at SeABank .19 2.1.6.1 Fundraising activities: 19 2.1.6.2 Lending activities 21 2.1.6.3 Business results .25 2.2 Current status of consumer lending at SeABank - Dien Bien Phu Transaction Office .27 2.2.1 introduced consumer lending products at SeABank- Dien Bien Phu Transaction Office .27 2.2.2 Loan process for individual customers at SeABank - Dien Bien Phu Transaction Office .33 2.2.3 Current status of consumer lending at SeABank – Dien Bien Phu Transaction Office .37 2.2.3.1 General situation of consumer lending 40 2.2.3.2 General situation of consumer loans by loan purpose 40 2.2.3.3 Situation of consumer loans by term .45 2.2.3.4 Situation of consumer loans by secured method .52 2.2.3.5 Situation of spending loans by repayment method 56 2.3 Evaluation of consumer lending activities at SeABank - Dien Bien Phu Transaction Office .60 2.3.1 These achievements 60 2.3.2 Limit 60 2.3.3 Reason 61 Conclusion of chapter 2: 63 CHAPTER SOLUTIONS FOR DEVELOPMENT OF CONSUMER LIVING ACTIVITIES AT Southeast Asia Commercial Joint Stock Bank - DA NANG BRANCH - DIEN BIEN PHU 64 3.1 Development orientation of consumer lending activities at Southeast Asia Commercial Joint Stock Bank - Dien Bien Phu Transaction Office 64 3.1.1 General orientation .64 3.1.2 Demand for consumer loans of the market in the coming time in Da Nang 64 3.1.3 SeABank's consumer lending orientation – Dien Bien Phu Transaction Office 65 3.2 Solutions to expand consumer lending activities at SeABank- Dien Bien Phu Transaction Office .66 3.2.1 Main solution .66 3.2.1.1 Assessment of consumer demand in Da Nang in the near future : 66 3.2.1.2 Build a synchronous strategy 67 3.2.1.3 Developing customer access policy at SeABank- Dien Bien Phu Transaction Office 68 3.2.1.4 Customer care policy: .70 3.2.1.5 Promote consumer lending to innovate the rational product structure 71 3.2.1.6 Improve the quality of human resources 73 3.2.1.7 Perfection in risk management in consumer lending activities 74 Conclusion of chapter 3: .78 CONCLUDE 79 LIST OF REFERENCES 80 LIST OF ABBREVIATIONS STT Acronyms SeABank NH PGD SBV CVTD TCTD KHCN CRO Explain Joint Stock Commercial Bank for Southeast Asia Commercial Bank Transaction State bank Consumer loans Credit institutions Individual customers Personal Customer Relationship Manager LIST OF TABLES Table 2.1: Capital mobilization at SeABank – Dien Bien Phu Transaction Office (2020-2022) 20 Table 2.2.Lending activities at SeABank - Dien Bien Phu Transaction Office (2020-2022) 23 Table 2.3 SeABank - Dien Bien Phu business results(2020-2023) 25 Table 2.4 General situation of consumer lending at SeABank-Dien Bien Phu transaction office (2020-2022) .37 Table 2.5: SeABank Dien Bien Phu's Credit Card Situation 40 Table 2.6 SeABank's consumer lending situation over time - Dien Bien Phu Transaction Office (2020-2022) 46 Table 2.7 Table of consumer loans in the form of security (2020-2022) 52 Table 2.8 Consumer lending situation of SeABank-Dien Bien Phu transaction office by repayment method (2020-2022) 56 Page INTRODUCTION Reason for choosing the topic Consumer lending is a popular form of finance in the world, especially in developed countries and has strong growth in emerging markets The potential business market together with the risk of increasingly fierce competition has put Vietnamese commercial banks in a position to change business strategies, seek new investment opportunities, expand and diversify customer groups target, Southeast Asia Commercial Joint Stock Bank - Da Nang branch cannot be out of that trend The society is developing day by day, not only companies and businesses need capital to business, expand markets, but also individuals who need capital more than ever In the past, people were afraid to approach bank capital because they thought it was complicated Banks are reluctant to lend to consumers because of the high risk But so far, consumer loans have become popular, because life is becoming more and more modern, people's living standards are increasingly being improved, the demand is no longer limited to "eating well, wearing warm clothes" but has changed gradually to "eat well, dress well" However, not everyone has the financial capacity to satisfy their consumption needs, especially buying expensive goods Therefore, many individual customers come to borrow money to serve their consumption needs such as: building houses, buying vehicles, buying furniture for the family Consumer lending has become a large area for banks to compete with each other and is becoming more and more fierce Consumer lending is on a growing trend due to the increasing spending needs of the people and the benefits that this service brings This is a potential market for commercial banks and also an inevitable trend when society is increasingly developing However, not all banks are highly effective in this business SeABank is one of the leading banks in retail banking and consumer finance SeABank's operational goal is to provide financial solutions in the field of personal consumption, which has identified a development strategy that goes hand in hand with wholesale and retail, in which personal credit is one of the goals top importance, After studying and training at the Vietnam-American School of Economic Page Management - Duy Tan University and having access to the vivid reality of credit activities at SeABank, Da Nang branch - Dien Bien Phu Transaction Office , I find it very necessary to learn, analyze and evaluate the effectiveness of consumer lending And that is the basis for researching and coming up with solutions to help improve the efficiency of consumer lending in diversifying banking activities Stemming from the above reasons, I decided to choose the topic: "Solutions to develop consumer lending activities at Southeast Asia Commercial Joint Stock Bank - Da Nang Branch - Dien Bien Phu Transaction Office" as my research topic for his graduate thesis Research purpose Systematize the theoretical basis for expanding consumer lending of commercial banks Assessing the current situation of expanding consumer lending at SeABank Da Nang Proposing solutions to expand consumer lending at SeABank Da Nang Research question What commercial banks need to to expand credit portfolio? The results of a consumer loan expansion can be assessed through what basic criteria? What are the current successes and shortcomings in the expansion of a consumer loan at SeABank Da Nang branch? What needs to be done to expand a consumer loan activities SeABank Da Nang branch? Research object Consumer lending activities at Southeast Asia Commercial Joint Stock Bank Da Nang Branch - Dien Bien Phu Transaction Office Research scope Space: Southeast Asia Commercial Joint Stock Bank – Da Nang Branch – Dien Bien Phu Transaction Office Time: From 2020 to 2022 Research method