RATIONALE TO THE RESEARCH
Customers are essential to the success of any organization, as their satisfaction directly impacts the overall prosperity of the company High-quality customer service serves as the foundation for developing all other departments within a business Even minor errors can lead to customer dissatisfaction, making it crucial for companies to prioritize the enhancement of their customer service quality to achieve lasting success.
The global trend of globalization and economic integration is rapidly expanding, accompanied by ongoing advancements in science and technology Vietnam's financial market is also experiencing these transformative changes.
The Vietnamese market is witnessing a surge in both local and foreign banks, all providing similar services This raises a critical question: how can banks effectively attract customers and foster a positive image to enhance customer retention?
Improving customer service quality is crucial for banks aiming to foster customer loyalty As customers prioritize service excellence when selecting a bank from numerous options, providing outstanding customer support becomes essential for enhancing a bank's competitive edge in the marketplace.
This study aims to assess the quality of customer service at Agribank, specifically focusing on the Dong Da branch, and to offer recommendations for potential improvements.
District of Agribank where I have chance to have deeper investigation during my internship.
OBJECTIVES OF THE STUDY
General Objectives
The general objective of the study is to evaluate and assess the quality of the Big Four Commercial Banks of Vietnam: BIDV, VietcomBank, AgriBank, VietinBank
Specific Objectives
To measure customer service quality in Agribank
To recommend area(s) that requires improvements.
SCOPE OF THE STUDY
This study examines customer service quality at the Vietnamese Agriculture and Rural Development Bank, one of the Big Four Commercial Banks in Vietnam It specifically focuses on customer perspectives regarding service quality dimensions Due to limitations in time and funding, the research is not extended to other commercial or foreign banks The sample comprises 200 customers who have interacted with AgriBank, providing insights into their experiences and perceptions.
This thesis focuses on the Agribank Eastern Branch in Hanoi, where the researcher completed an internship With permission from the bank, actual data and figures were collected for analysis The study primarily examines two key services frequently utilized by customers: international payment and currency exchange trading, as well as automatic banking utilities.
METHODOLOGY OF THE STUDY
An online questionnaire was created using Google Forms to assess the customer service quality of Agribank This survey was distributed via email to 100 individuals with prior experience at Agribank, aiming to gather valuable feedback on their services.
The study follows the combinations of dialectical materialism method, historical materialism method, statistical method, financial analyze method, and inductive method.
SIGNIFICANCE OF THE STUDY
In today's competitive landscape, high-quality service has shifted from being a mere advantage to an essential requirement for survival This study focuses on the Big Four Commercial Banks in Vietnam, aiming to address the existing knowledge gap regarding customer service and providing a foundation for future research in this critical area.
STRUCTURAL ORGANIZATION OF THE STUDY
The thesis includes three main parts as follows:
The second part of the thesis is divided into three chapters: the first chapter presents the theoretical framework, the second chapter examines the current state of customer services, and the third chapter offers solutions and recommendations to improve the existing conditions.
THEORETICAL BACKGROUND
Definition
1.1.1 The concept of commercial bank
Banks play a crucial role as financial intermediaries in the economy, primarily defined by their functions, services, and impact on financial markets In today's dynamic market environment, various financial institutions, including securities trading companies and insurance firms, are striving to offer banking services Consequently, banks are diversifying their offerings by introducing innovative products such as credit brokerage and insurance services, which enhances the diversity of their concepts.
According to the twentieth article in “Vietnamese Law On Credit Institution 2010” :
A bank is a credit institution authorized to conduct a wide range of banking operations and related activities Banks can be categorized based on their functions and goals, including commercial banks, development banks, investment banks, policy banks, cooperative banks, and various other types of banks.
A commercial bank is a specific type of financial institution that operates as a credit institution, established under legal provisions to conduct banking activities.
This law also distinguishes between a bank and a non-bank credit institution
Non-bank credit institutions are financial entities authorized to conduct various banking operations as part of their standard business activities, yet they do not have the authority to accept demand deposits or offer payment services These institutions encompass financial companies, financial leasing companies, and other similar organizations.
1.1.2 The concept of customer services
Customer service is about understanding and fulfilling the unique needs of each customer to ensure their satisfaction and loyalty It goes beyond the assumption that a purchase guarantees loyalty; effective customer service involves both addressing inquiries and delivering essential information Additionally, it can encompass more intricate tasks, such as monitoring customer behaviors and proactively anticipating their future needs.
Customer service (also known as Client Service) is the provision of service to customers before, during, and after a purchase According to Wikipedia (2007),
“Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling a product or service has met the customer expectation.”
The significance of customer service varies across products, industries, and customer expertise levels, with expert customers often needing less pre-purchase guidance than novices Customer service plays a crucial role, especially for services compared to tangible products, and can be delivered through personal interactions or automated self-service options like websites It is a fundamental aspect of a company's customer value proposition However, the quality of customer service has declined in recent years, largely due to insufficient support and understanding from executive and middle management levels Recognizing the strategic importance of customer service is essential for businesses to enhance customer satisfaction and loyalty.
To thrive in a competitive marketplace, companies must consistently improve customer experience and satisfaction (Terziovski, 2000; Schneider & Bowen, 1999) Customer service encompasses the processes and actions that facilitate seamless interactions between customers and businesses (Kotler, 2000).
Customer service is perceived by some authors as the collective activities that connect a corporation with its customers to enhance sales relationships, while others define it as a measurable set of activities that deliver value or optimal service levels According to Dr Leonard Berry from Texas A&M University, customers assess service quality based on five key factors.
• Reliability - The ability to provide what was promised dependably and accurately
• Assurance - The knowledge and courtesy you show to customers and your ability to convey trust, competence, and confidence
• Tangibles - The physical facilities, equipment, and your appearance
• Empathy - The degree of caring and individual attention you show customers
• Responsiveness - The willingness to help customers promptly (Zeithaml, Parasaraman & Berry, 1990, p 15)
According to Disend (1991), there are two views of customer service He did a comparison between the traditional service approach and customer-focused approach
Table 1.1: Two views of customer service – Source: Disend 1991, p 19
The traditional approach to service The customer-focused approach to service
Good service is the absence of unsatisfied customers
Service means providing more than customers expect It‟s also turning unhappy customers into satisfied customers
Customer service primarily involves how you interact with customers in person, on the phone, smiling, being nice, and resolving customer problems or complaints
Service encompasses all facets of a business, including the products and services provided, their delivery, and follow-up It also involves essential behind-the-scenes operations such as finance, data processing, purchasing, warehousing, and personnel management, all of which influence how the organization creates and delivers its offerings.
Customer service is primarily the responsibility of the Customer Service
Department or other designated people
Often heard as, “I have my own work to do Taking care of customers is somebody else‟s job.”
Customer satisfaction is the top priority for every employee, including the CEO, emphasizing that it cannot be limited to just a few individuals or departments Each team member feels a personal responsibility for delivering high-quality service and ensuring a positive experience for customers.
Customer service is a program It‟s something you do or something you send people to for a few days
Customer service transcends being just a program or a set of skills; it embodies an attitude and a relentless commitment that should permeate an organization It is not a temporary initiative or a fleeting concept, but rather a continuous process that reflects a deep-rooted obsession with delivering exceptional experiences.
The organization comes first The most important people are (in order) executives, managers, supervisors, front line employees, stockholders, and customers
The customer comes first The most important people are customers
Customer service is for customers, people or organizations outside the company
Every employee and department has both internal and external customers Everyone lives by the belief, “If you‟re not serving the customer, you‟d better be serving someone who is.”
Customer complaints represent failure and are to be avoided; discouraged
Customer complaints and problems are an irritant, something to be “handled”
Organizations frequently prioritize immediate customer satisfaction and damage control, but this reactive approach often leads to recurring issues and complaints Without implementing effective solutions to address the root causes of these problems, businesses risk perpetuating dissatisfaction among their customers.
Customer complaints are not only welcomed but also encouraged, as they provide valuable insights into areas needing improvement Addressing these issues effectively is crucial for maintaining customer satisfaction and loyalty Organizations often respond proactively to resolve problems, ensuring that customer goodwill is preserved.
People who have direct customer contact at the front lines are the lowest paid, least skilled, and least motivated employees
They get the least training and have the highest turnover
The people at the front line are the company The organization defines the experience, skills, and temperament required for customer contact positions
They hire people who are empathetic, caring, and intelligent They train them diligently and reward them well for performance
Customer service training emphasizes skills, how-tos (“If the customer says or does this, you say or do that”) It‟s often called “smile training” or “charm school.”
Training focuses primarily on fostering confidence and self-esteem, enabling individuals to view customers and the organization from a fresh perspective It’s essential to recognize that social skills are a hiring consideration rather than a training concern Additionally, acquiring job-specific knowledge and skills enhances both competence and confidence.
The aspects studied by the thesis
1.2.1 The psychology of customers when choosing commercial banks’ services
Customers play a vital role in driving product sales, as they are the individuals who purchase goods and services Without customers, businesses would struggle to sell their offerings, highlighting their importance in the marketplace.
The question „Who are customers ?‟ is a compulsory issue that banks need to identify as it plays an important part in enhancing the quality of services and the potential development
Erwin Frand, a renowned economist, emphasized the crucial role of customers in business by stating, "No customer will not have any existing company." This highlights the significance of customer engagement, particularly in the banking sector, where attracting a larger customer base directly correlates with a bank's potential for growth and development.
The primary focus of a bank is its customers, making customer satisfaction its most important goal This satisfaction not only leads to increased profits but also fosters potential growth for the bank Ultimately, it is the bank that depends on its customers, rather than the other way around.
Banks must enhance their focus on improving customer quality, as clients are becoming more discerning and demanding in their evaluations Customers expect courteous treatment, respectful interactions, and thoughtful service in their banking experiences.
Customers serve as the most powerful marketing tool for banks, as a larger customer base reduces the need for extensive advertising expenditures Satisfied customers share their positive experiences, leading to organic referrals that no amount of social media advertising can replicate This word-of-mouth promotion is an invaluable asset for banks.
Receiving good quality of products and services
Customers prioritize quality, proficiency, and benefits in the services they receive, particularly from banks They expect banks to meet their needs, such as ensuring the safety of their deposits and generating profits from their investments.
Receiving the friendliness and caring
Customers expect friendly interactions with bank staff, whether in person or over the phone To meet these expectations, bank employees should have strong communication skills, a pleasant demeanor, and a warm voice Friendliness is demonstrated through greetings, smiles, eye contact, and positive gestures The attitude of bank staff when assisting customers plays a crucial role in shaping the professional image of the bank, ultimately influencing customers' decisions when choosing a banking service.
Customers frequently require assistance from banks while using current services, such as guidance on how to navigate the application By offering additional services, banks can significantly enhance the overall value of their offerings.
Paying attention to their voice
Customers appreciate when bank staff actively listen and assist them with their concerns, highlighting the importance of strong listening skills By focusing on what customers say without interruptions, bank employees can create a sense of being heard and valued, ultimately enhancing customer satisfaction.
1.2.2 Benefits of customer services 1.2.2.1 Maintaining previous customers
Retaining existing customers is essential for the growth of banks, as they often express their needs regarding banking services However, understanding customers' expectations for service attitude and communication convenience can be challenging Despite this, customers place significant importance on the quality of service provided by banks Therefore, ensuring customer satisfaction is a key factor in the success and prosperity of banking institutions.
Along with maintaining previous customers, attracting new customers is also playing a critical part in the market economic battle This is extremely a challenging task that many banks failed to reach
The quality of a bank's services is assessed by customers based on their experiences, making customer service a crucial factor in determining service usage Exceptional customer service fosters trust and encourages customers to engage with the bank's offerings.
In today's competitive market economy, the growing number of banks and their services has made exceptional customer service a key differentiator As most banks offer similar services and pricing, the quality of customer service becomes vital in attracting and retaining clients Consequently, customers are more likely to choose banks that provide superior service to meet their specific needs.
1.2.2.4 Stabilizing the revenue and promoting the profit
Every bank aims to stabilize revenue and enhance profits, making customer loyalty essential for success in a competitive market By cultivating loyal customers, banks can secure stable profits and establish a strong foundation for long-term stability and growth.
Other similar studies and their focus
The study of Armistead and Clark (1991) focused on Customer Services Triangle
Placing the customer at the core of all activities is essential, as it directly influences customer satisfaction It is crucial to assess the organization's performance from the customer's perspective rather than relying solely on internal evaluations.
Source: Armistead and Clark, 1994, p 14 (from Albrecht and Zemke)
The following points illustrate how a customer service organization can apply practices and principles to the service triangle
A Customer Service Manager should create clear and actionable strategies that define the support role, establish measurement criteria, and prioritize areas for improvement These strategies should emphasize the importance of customer service and highlight the unique aspects that provide a competitive edge for the organization It is crucial to understand that a strategy is not merely a wish list; it represents a well-resourced declaration of intent.
To enhance customer satisfaction, it is essential to review the systems within the customer service organization after clarifying the strategy This includes evaluating quality control, information management, material handling, and productivity systems to align with any changes in service focus A crucial principle is to prioritize key performance measures that significantly influence customer satisfaction, such as consistently meeting response time targets through adequately resourced systems.
Effective customer service hinges on knowledgeable staff who understand their tasks, which can be fostered through a consistent customer service strategy When employees contribute to the development of this strategy, their commitment increases Additionally, the effectiveness of customer service providers is enhanced when the systems in place support rather than hinder their efforts.
The articles of Ann Ward ( 2008 ) focused on Customer Services Ethics
Good customer service is essential for encouraging repeat business and generating positive word-of-mouth, as highlighted by Ward (2008) To achieve this, businesses must focus on creating a satisfying experience that leaves customers happy and willing to recommend their products or services to others Consistently delivering on these key aspects will foster customer loyalty and enhance the overall reputation of your business.
To enhance customer engagement, implement call forwarding or an answering service to ensure that every call to your business is answered by a live representative If necessary, consider hiring additional staff to guarantee that potential clients can speak to a real person rather than dealing with impersonal automated responses.
Don‟t make promises unless you will keep them
Reliability is crucial in building strong relationships, including customer service Always ensure that commitments, such as delivery dates for furniture, are met; if you promise delivery on Tuesday, it should arrive on that day This principle extends to client appointments and deadlines as well Think carefully before making any promises, as nothing frustrates customers more than unmet expectations.
Effective communication is crucial in addressing customer concerns; it can be frustrating when your needs are overlooked Ensure that you actively listen to your customers by engaging with them and providing thoughtful responses, including potential solutions to their problems.
Addressing customer complaints can be challenging, but it’s crucial for enhancing your business's reputation While it’s true that you can't satisfy everyone, taking the time to listen to individual concerns can lead to improved customer satisfaction By focusing on providing exceptional customer service, you can create positive experiences that not only please the customer at hand but also contribute to your business's long-term success.
Train your staff to be always helpful, courteous, and knowledgeable
Empower your staff by either training them yourself or hiring a professional, and engage in regular discussions about the essentials of good customer service Clearly communicate what constitutes excellent service and what does not, ensuring that every team member has the knowledge and authority to make customer-friendly decisions.
To enhance customer service, don't simply direct customers to a product's location, like "It's in Aisle 3." Instead, guide them to the item and be attentive to any questions or additional needs they may have Taking that extra step not only improves their experience but also leaves a lasting impression, as satisfied customers often share their positive experiences with others.
People appreciate receiving more than they expect, whether it's a discount coupon, helpful product usage tips, or a friendly smile It's important to note that even small gestures can have a significant impact For instance, our local art framer includes a set of picture hangers with every framed piece, enhancing the overall customer experience.
Summary
The chapter has illustrated the concept of commercial bank basing on
“Vietnamese Law On Credit Institutions 2010” Additionally, it has also demonstrated the definition of customer service by citing numerous previous reliable studies and researches
Customer service encompasses a range of activities aimed at boosting customer satisfaction, defined as the extent to which a product or service meets customer expectations (Wikipedia, 2007) Additionally, Disend (1991) presented two perspectives on customer service, further emphasizing its multifaceted nature.
1 The traditional approach to services
2 The customer-focused approach to services
Moreover, this chapter has also given us information about the psychology of customers when choosing commercial banks‟ services, it has mainly been determined by four criteria:
1 Receiving good quality of products and services
2 Receiving the friendliness and caring
4 Paying attention to their voice
In order to strengthen the vial role of customer services, the thesis has also depicted its benefits:
4 Stabilizing the revenue and promoting the profit
This chapter has examined key findings from various researchers, notably the Customer Services Triangle study by Armistead and Clark (1991) and Ann Ward's (2008) exploration of Customer Services Ethics.
THE REALITY OF CUSTOMER SERVICES
In Viet Nam
According to Pega Survey of 1.001 US consumers with a bank account, 2015
Figure 2.1: The factors mattering most to customer, Source: Pega survey, November 2015
Customers prioritize the quality of bank services based on the respect for their opinions and the fulfillment of their needs This trend is evident in the Vietnamese market, where customers are increasingly choosing banks based on the level of customer service provided.
In Vietnam, the undervaluation of customer service quality often makes banks feel unwelcoming to clients By fostering a friendly atmosphere, banks can gain a significant competitive edge in the market economy.
In Vietnam, many banks prioritize improving product offerings, such as increasing interest rates and running promotions, rather than enhancing customer service This strategy is ineffective for retaining existing customers and attracting new ones To strengthen their market position, banks should focus on building trust with customers by providing exceptional service throughout the entire transaction process.
In Agribank and Its East Branch of Hanoi
After conducting a survey by sending out an online questionnaire, I found that Agribank is the bank that receive the lowest rating among the Big Four Banks of Viet Nam
The chart reveals that only 19.1% of customers expressed satisfaction with Agribank's services, significantly lower than BIDV's 52.4% satisfaction rate Furthermore, Agribank had the highest percentage of dissatisfied customers among the four banks surveyed.
Figure 2.2: Customers feedbacks among The Big Four Banks of Viet Nam -
Source: Online questionnaire conducted by researcher
Source: Online questionnaire conducted by researcher
2.2.2 In Agribank East Branch of Hanoi
The thesis focuses on two main services used by customers : International payment and currency exchange trading and automatic bank utilities
Additionally, the study indicates an overview of Agribank Eastern Branch of
Hanoi „s shortcomings and its reasons
2.2.2.1 International payment and currency exchange trading
To enhance customer satisfaction, Agribank East Branch in Hanoi has recently expanded and improved its payment methods, as well as domestic and foreign currency exchange services.
Hanoi has currently participated in the interbank electronic payment system
Table 2.1: International payment and currency exchange trading in 2014 and
2015 – Source: Agribank East Branch of Hanoi
1 Total turn-over of invisible trades 40,801 53,469 131%
4 Profits gained from exchanging foreign currencies
5 Total fees and profits gained 6,074 6,966 115%
In 2015, the foreign exchange market experienced notable shifts, including a scarcity of foreign currencies and ineffective exchange rate policies Despite these changes, the USD/VND exchange rate stabilized around 21,000 VND, peaking at 21,500 VND The primary transactions occurred on the trading floor, limiting our ability to leverage some junior products effectively.
To deal with these difficulties, sales department found some solutions Its merits and demerits will be discussed below:
Consulting customers about current activities of foreign banks
Attracting new customers who frequently transfer money to foreign countries in large amount
About international payment: Total sales of invisible trades experienced an increase of $ 12.6 thousand to $ 54.4 thousand in comparison with that of 2014 (about 3 %)
About foreign exchange trading: Total turn-over of sales experienced an increase of $ 19.4 thousand to $101.8 thousand (about 24 %)
=> Total fees and profits gained rose by $ 892 thousand to $6.966 (about 15 %)
Rarity purchasing sources resulted in the lack of ability in meeting the payment demand of customers
Both the quantity and value of LC were decreased
Could not meet the disbursement demand of customers
The Agribank Eastern Branch in Hanoi has enhanced its automatic banking services, including ATMs and self-service transaction points, to provide customers with 24/7 access These services encompass a range of functions such as foreign currency exchange, money transfers, multifunctional card issuance, receipt processing, and payment facilitation.
An Automatic Teller Machine (ATM) provides customers with essential banking services, including cash withdrawals, money transfers, balance inquiries, and bill payments Users of multi-functional cards can enjoy additional features, such as making payments at supermarkets, bookstores, and hospitals, enhancing convenience in everyday transactions.
Agribank Eastern Branch of Hanoi is committed to improving its automated banking services to motivate customers to open both domestic and international payment cards The branch has also garnered significant positive feedback from its clientele, reflecting its dedication to customer satisfaction.
Table 2.2: The quantity of customers opening cards (counted until 2015) – Source: Agribank East Branch Of Hanoi
The merits and demerits of automatic bank services quality
Raising awareness about the crucial role of upgrading services among staff
Focusing on new products, and creating many opportunities to enlarge the scale
Enhancing the quality for card holders
Gaining huge profits from card fees and interests
Varying distribution channels, focusing on developing branches network
11 ATMs were upgraded and provided with security software
Student card: bank have planned with directors of some university but have not rolled out yet
There are some mistakes in controlling the account balance of customers
2.2.2.3 The shortcomings of Agribank Eastern Branch of Hanoi and its reasons
1 The quality of products is not as excellent as that of other top banks in Hanoi The criteria about products quality influences significantly to the services quality
We are currently lagging behind our competitors in the market, as our card services have not gained significant recognition among customers despite our advertising efforts Furthermore, we face challenges with our foreign banking services; although we offer a range of options, including international payments and foreign currency exchange, our customer base remains limited.
2 The staff‟s manipulation and professional competence are not vocational
Despite avoiding major mistakes, we have yet to establish a professional image for our customers due to a lack of effective manipulation Additionally, our staff's attitudes are not as friendly, flexible, or sociable as they should be, which could adversely affect our competitive strength and future success.
3 The competitive ability is quite weak
The primary factor contributing to this issue is poor customer service In a competitive landscape where banks provide similar products and services, customers have a plethora of choices Consequently, the distinguishing factor for banks lies in how they manage their customer interactions and processes.
Evidences have shown that we have received the largest quantity of negative feedbacks among The Big Four Vietnamese Banks This fact prevents us from strengthening our competitive ability
4 The stability of product‟s quality is just reaching the average level The ATM system, domestic and foreign payment system sometimes reject customer‟s order due to low connection or overloading network
1 The knowledge and awareness about developing and upgrading customer services are not well-known and familiar
To enhance customer services, banks must prioritize attracting deposits to increase interest margins rather than focusing on generating minor fees from services This strategic shift is essential for sustainable growth and improving overall service offerings.
2 The difficulties in changing staff‟s attitudes and behaviors
The key to delivering exceptional service quality lies in the staff Despite our significant efforts to improve workforce quality, we have yet to fully meet the necessary standards.
Historically, the Vietnamese market has undervalued the importance of customer service, leading to the development of negative attitudes and behaviors among staff from an early stage As a result, addressing this ingrained habit has become a significant challenge.
Many individuals fear the concept of "trial and error," which hinders their willingness to explore new approaches Consequently, this reluctance presents challenges in motivating and guiding them effectively.
Many senior staff often work basing on their experiences without taking any training course, therefore, they can not develop their better selves
Agribank has been criticized for its limited investment in staff training and development, leaving many employees to cover their own costs for professional improvement By providing financial assistance or support for training, the bank could enhance employee effectiveness, ultimately leading to increased profitability.
3 The inconvenience of transaction offices
Summary
This chapter has focused on “The reality of customer services” in Vietnam, Agribank and its East Branch Of Hanoi
A 2015 survey by Pega identified 13 key factors influencing customer attitudes towards service This study further explored customer feedback from the Big Four Banks in Vietnam through an online questionnaire distributed to 100 respondents It specifically analyzed the strengths and weaknesses of two main products offered by the East Branch of Hanoi.
Moreover, Agribank East Branch of Hanoi‟s shortcomings and its reasons have also discussed in this chapter There are four main drawbacks:
1 The quality of products is not as excellent as that of top banks in Hanoi
2 The staff‟s manipulation and professional competence are not vocational
3 The competitive ability is quite weak
4 The stability of product‟s quality is just reaching the average level
To tackle with these shortcomings, the study has illustrated its reasons with the aim of conducting feasible solutions and recommendations
1 The knowledge and awareness about developing and upgrading customer services are not well-known and familiar
2 The difficulties in changing staff‟s attitudes and behaviors
3 The inconvenience of transaction offices
5 The time-consuming and complicating process in conducting projects
SOLUTIONS AND RECOMMENDATIONS TO
Economic development orientation of Agribank
3.1.1 The development strategy of Agribank
To enhance the overall effectiveness of the banking system, it is crucial for banks to strengthen their operational capabilities and improve staff expertise, particularly in credit services Additionally, a strong emphasis should be placed on essential products and services, including deposits, savings, and money transfers, to better meet customer needs.
Additionally, banks should be more strict on rules, disciplines to avoid and eliminate the problem of red tape, corruption, dissipation
Reinforce, establish, and develop rural market as well as urban and foreign market
Create stable market, especially in developing areas where have good conditions for producing centralized goods This will contribute dramatically to promote the process of industrialization
Enlarge the scale of urban business activities, focus on big cities where have a large quantity of potential customers to develop multiple business
Convert quickly to centralized investment according to national projects, inter-provincial projects Develop small scale projects, create opportunities for poor households
Conduct business inter-regional projects, national project about food, rubber, seafood, wood making
Rural projects: focus on investing in recovering trade village, improving light industry, processing industry
Promote branches‟ process to conduct new services Establish some trial projects to accumulate the experiences in order to enlarge the variety of services provided
Continuously reinforce, enlarge foreign business activities, including payment services, credit services, endorsement services
3.1.2 The development orientation of Agribank
Become the main bank which provides services for agriculture and rural area, however, strictly follows the policies of Vietnamese Communist Party and the Government
Apply modern technologies, provide customers with convenient services
Maximize and stabilize profits, conduct training programs for staff to enhance the competitive ability and adapt to worldwide integration processes
Consolidate the decisive and main force position in providing financial, credit services for rural and agricultural areas
Base on technology and information to meet customer‟s demand for integration by developing 39 new products and services according to WB project
Develop brand name and shape for the Agibank corporate culture: “Honesty - Creativity - Quality - Efficiency”, gradually become “the first choice” of customers
Supply the charter capital to ensure the safety rates at least 8 percent by carrying out an adequate commitments about bad debts and raising charter capital mechanism
Develop independently risks management system according to international standards to have a stable growth
Apply advanced technology, upgrade bank infrastructure, deploy administration management system according to accounting international standards
Maximize the productivity, make investments on human and develop staff‟s abilities, encourage on-site training, distance training, in-company training, advanced training
Reform the administrative structure to become a modern financial institution according to international standards
Regard customer as the decisive criteria and customer‟s satisfaction as the first target
Upgrade management ability and modern bank management skills to enhance the quality and efficiency of tasks
3.1.3 The credit activities orientation of Agribank
Basing on the result from practical activities in recent years and the business orientation of Agribank, Agribank Eastern Branch of Hanoi has directed to develop as follows:
Have stable credit growth, local capital increase of 20-25%, low bad debt rate (below Agribank‟s permission)
Develop banks‟ modern and convenient services
Have healthy and efficient banking activities
To fulfill these tasks, banks have to concretize some specific objectives below:
To enhance local economic growth, it is essential to bolster capital mobilization and leverage additional funding sources Increasing credit investment for economic entities, particularly small enterprises in centralized economic zones, will support their competitiveness and foster sustainable development.
Continuously strengthen credit quality by following strictly lending operation processes Prepare the adequate capital for customers and seriously keep funds safe
Regularly take close inspection, control to minimize the risks and enhance the service activities, especially credit activities Concentrate on dealing with bad debts according to the guidance of Agribank
Expand the activities network and carry out bank‟s modern technology program, especially payment technology Continuously restructure bank‟s activities according to the guidance of Agribank
Training staff wholly, not only to enhance their ability, personal skills but also to provide them with collective knowledge about economic, politic, society, and communication skills toward customers
To complete these aforementioned orientation, Agibank Eastern Branch of Hanoi has to focus on safe and efficient credit trading.
Solutions and recommendations to upgrading the customer services
services in Agribank Eastern Branch of Hanoi
To enhance customer satisfaction during transactions, banks must establish an effective customer service system This system not only simplifies customer care but also improves service quality and strengthens the relationship between banks and their clients By delivering exceptional customer service, banks can build a strong reputation and instill trust among customers, ultimately leading to increased revenue and a better market position Implementing practical solutions is essential to address the current challenges in customer service.
3.2.1 The strategy to develop and strengthen customer base
To effectively attract customers to our services, Agribank has implemented various solutions across all branches However, the Eastern Branch of Hanoi must identify additional specific and practical strategies that align with the current local circumstances.
To enhance customer satisfaction and streamline operations, banks should diversify their offerings while prioritizing key services Investing in modern ATMs that facilitate immediate deposit access can significantly improve the customer experience.
To enhance customer development strategies, Agribank Eastern Branch of Hanoi should broaden its marketing campaigns targeting both potential and existing customers Additionally, the bank must explore emerging areas like Thanh Xuân and Đống Đa to identify the most effective marketing approaches tailored to these regions.
The most important element in upgrading customer services is human, therefore, the quality of staff should be considered as the initial criteria
Employ staff strictly according to the requirements of government Focus both on their intensive training course at university and their own experiences related to banking and communication
Check staff‟s language ability, computer skills, communication skills
Retraining current staff, encourage them to follow self study schedule, and support each other to enhance professional competence
Strict assessments should be applied to all of tasks Fair reward and fair punishment
Appoint staff to survey, investigate and inquire experiences from other domestic and foreign companies
Have attracting talent policies that provide them with the best treatment policy, reward policy and professional working environment
3.2.3 Creating convenient products and services for customers
To improve the accessibility of private accounts and credit cards, it is essential to increase the number of ATMs in high-traffic locations such as colleges, universities, supermarkets, and new urban developments Additionally, banks should expand the range of establishments that accept credit cards to enhance convenience for users.
Secondly, we need to create detail plan for the development of attracting foreign currency savings such as accumulation savings and installment savings
3.2.4 Applying successful methods of other world banks
Customers are the targets of any businesses, bank is not an exception Banks not only want to maximize their profits but also want to bring benefits to customers
Major banks like Citibank and Chifonbank excel in attracting and retaining a substantial customer base for both deposits and loans Their success largely stems from a strong focus on fostering positive customer relationships through exceptional service.
Chifon Bank offers comprehensive financial support by facilitating deposits and loans while ensuring quick repayment solutions Their professional and efficient payment system effectively addresses capital demands, meeting all customer needs promptly and accurately.
Citibank is committed to enhancing customer service by actively supporting the growth of businesses The bank has broadened its offerings, including streamlined receipt and payment solutions for customers and Charly Kerson securities.
Europe's security experts warn that banks risk losing loyal customers if they fail to promptly address customer needs, have overly complicated procedures, or display unprofessional attitudes.
ABQ is a prominent bank in China, dedicated to serving low-income individuals Starting with a charter capital of $10,000, ABQ quickly established a program to assist the poor in overcoming financial challenges They have created a borrowing organization where participants can deposit $5-$7 and access loans up to five times their deposit, with only a 30% charge for operational expenses This initiative also funds support for those unable to meet the borrowing criteria ABQ's commitment to customer service is evident as their staff proactively visit clients rather than waiting in offices, combining high-quality service with genuine kindness This approach has solidified ABQ's reputation as one of the most recognized banks in China.
The unexpected growth of ABQ highlights that capital alone is not the key to a bank's success; rather, the bank's strategic development focus and the quality of its services are the most critical factors.
The right attitude toward customers is demonstrated by the ability to satisfy them Wood Forest National Bank in Southwest Region ranked first in customer services
In 2007, J.D Power and Associates awarded recognition for success, highlighting six key elements: transactions, account opening, declaration forms, convenience, fees, and customer service.
3.2.5 Determining the relationship between banks and customers
Customer service is crucial for the success of banks, as fostering strong relationships with customers enhances service quality Any shortcomings in customer care can quickly damage a bank's reputation Conversely, exceptional customer service leads to a loyal customer base, driving increased profits By growing this base, banks can reduce marketing and advertising costs while simultaneously bolstering their reputation and overall image.
3.2.6 Understanding customer’s requirements and satisfactions
The customers‟ requirements often are good products and services, friendly and caring attitudes Besides, they want to be heard, to raise their own voices, and to receive supplemental services
To foster long-term customer loyalty, it is essential to meet their diverse needs and build trust The principle that "customers are the universe of banks" emphasizes the importance of prioritizing customer relationships over merely promoting products, as many banks offer similar services By focusing on customer satisfaction, we can differentiate ourselves in a competitive market.
Conducting investigation is a good way that banks should take into consideration
Banks can better understand customer needs and satisfaction levels with their existing products and services This insight allows them to progressively improve their offerings by addressing and removing factors that contribute to negative customer feedback.
By asking for their opinions after using services, creating a suggestion box, banks can easily know the satisfaction levels of customers
3.2.7 Upgrading the technological system and product stability
Summary
Both solutions and recommendations for Agibank in general and for Agribank East Branch of Hanoi in particular have been suggested in this chapter
Agibank's development strategies focus on market orientation and processing methods to improve customer services The article outlines both general and specific objectives aimed at enhancing these services Additionally, it analyzes the bank's credit activities, detailing various specific objectives designed to support its overall mission.
Turning to Agribank East Branch of Vietnam, the thesis has concentrated on providing bank with some practical solutions to tackle with current situation
1 The strategy to develop and strengthen customer base
3 Creating convenient products and services for customers
4 Applying successful methods of other world banks
5 Determining the relationship between banks and customers
6 Understanding customer‟s requirements and satisfactions
7 Upgrading the technological system and product stability
Recapitulations and concluding remarks
This study on customer service quality offers a unique perspective compared to similar research conducted by other scholars It serves as a valuable reflection for the Agribank Eastern Branch of Hanoi, allowing them to assess their current level of customer service quality effectively.
This study explores the concepts of commercial banks, their customers, and the services provided, examining various perspectives It analyzes customer psychology to enhance banks' understanding of their clientele Furthermore, the significant benefits of customer service are highlighted, underscoring its crucial role and impact on banking institutions.
I conducted an online survey to compare customer feedback among Vietnam's Big Four Banks The results revealed that Agribank received the highest level of negative feedback, highlighting the urgent need to prioritize improvements in customer service.
This thesis examines the Agribank Eastern Branch in Hanoi, where the researcher completed an internship With the bank's permission, actual data was collected for analysis The focus is on two primary services frequently utilized by customers: international payments and currency exchange trading, along with automated banking utilities.
On the one hand, the thesis has demonstrated the shortcomings and its reasons so as to find out the best solution to tackle with current struggle
1 The quality of products is not as excellent as that of other top banks in Hanoi
In today's competitive market, customers face an abundance of choices, with numerous banks offering similar products To stand out, Agibank must prioritize exceptional quality; otherwise, attracting customers becomes increasingly challenging Initially, appealing products draw customers in, but it is the quality of customer service that fosters long-term relationships.
2 The staff‟s manipulation and professional competence are not vocational
The key factor influencing the success of any business is its people At Agibank, the staff lacks the friendliness, sociability, and enthusiasm needed to engage effectively with customers Furthermore, their communication and persuasion skills fall short, impacting overall customer satisfaction.
3 The competitive ability is quite weak
Despite being one of the most well-known banks in Vietnam, Agribank lags behind its competitors in customer service due to various shortcomings.
4 The stability of product‟s quality has just reached average level The connection of E-banking system and ATMs machines are not stable
1 The knowledge and awareness of developing and upgrading customer services are not well-known and familiar
The mindset of employees plays a vital role in determining product quality, yet many staff members overlook the significance of customer service Additionally, training programs often focus on banking-related skills rather than essential soft skills needed for effective communication with customers.
2 The difficulties in changing staff‟s attitudes and behaviors
As the aforementioned mindset has shaped from their early stages, it is extremely challenging to make a difference
3 The inconvenience of transaction offices
For instance, many offices are overloading because of an exceeding number of customers Customers do not have waiting room and they have to stand up during their wait
Technological ability, especially computer skills of staff, is not very good Therefore, they find it difficult to take advantage of technology to save time and increase productivity as well
5 The time-consuming and complicating process in conducting projects
Other things giving a negative impact were insufficient number of transaction offices opened, too many unnecessary procedures, bureaucracy, and slow response time
The thesis outlines strategies to enhance customer service quality, specifically recommending improvements for Agribank as a whole and its Eastern Branch in Hanoi.
The thesis outlines Agribank's development strategy, orientation, and credit activities, proposing solutions to enhance its operational effectiveness To achieve its goals, Agribank should expand its economic scale, concentrate on both rural and urban markets, prioritize centralized investments, diversify its product and service offerings, and improve the quality of its existing services.
In case of Agribank Eastern Branch of Hanoi
1 Developing and strengthening customer base
Agribank Eastern Branch of Hanoi should focus on developing new products and services while enhancing existing offerings Additionally, conducting a thorough analysis of current market demand is essential to formulate an effective strategy.
Comprehensive training programs, including distance training, in-office training, and intensive training, should be implemented for all staff members These programs should encompass not only banking-related skills but also essential areas such as communication, technology, and teamwork skills.
3 Creating convenient products and services for customers
Eliminating unnecessary process to save time for customers, provide them with many functional tools to check their balances, transactions themselves such as application on their cellphone
4 Applying successful methods of other world banks
The thesis has demonstrated the importance of customer services through many evidences of large banks in the world
5 Determining the relationship between banks and customers
Customers have numerous choices in choosing a bank while banks can not survive without customers Therefore, bank‟s staff should be aware of this fact and have right attitude toward customers
6 Understanding customer‟s requirements and satisfactions
Six main requirements of customer are analyzed in Chapter 2, bank should conduct a survey to understand properly about customers‟ demands and satisfactions
7 Upgrading the technological system and the stability of products High-tech machines can help banks save time, increase productivity and maximize profit Additionally, it also contributes greatly to the product stability
Implications of the thesis
The main purpose of the thesis is to gain a better understanding of the customer services and aim to demonstrate some recommendations and solutions to upgrading customer services for Agribank
This study analyzes the key products of Agribank Eastern Branch in Hanoi, highlighting their strengths and weaknesses It offers practical solutions and recommendations to address current challenges faced by the bank The findings aim to enhance customer service at Agribank, providing valuable insights for improvement.
Limitations and proposals for further study
The evolution of the banking industry reveals intriguing areas not addressed in this study, warranting further exploration Additionally, the limitations identified highlight opportunities for future research Subsequent studies could build on the findings of the current research to expand its scope and depth.
Future research should focus on enhancing and validating findings through a more diverse and larger sample of random customers The primary limitation of current quantitative data collection is the small sample size, which restricts the development of findings By increasing the number of samples, researchers can achieve more reliable and varied results, ensuring that a larger sample size does not compromise the conclusions drawn from the study.
Due to time constraints, the thesis focused on Agribank and was unable to explore all its products and services Future research could examine additional offerings, potentially revealing a broader perspective.