Developing unsecured loan product in australia and new zealand baking group with sales centre in hanoi,graduation thesis

BANKING ACADEMY FOREIGN LANGUAGE FACULTY  GRADUATION THESIS DEVELOPING UNSECURED LOAN PRODUCT IN AUSTRALIA AND NEW ZEALAND BAKING GROUP WITH SALES CENTRE IN HANOI STUDENT : NGUYEN THI THANH HAI LECTURER : TRAN THI XUAN ANH (PhD) CLASS : K15 ATCA STUDENT CODE : 15A7510059 Ha Noi, May 2016 TABLE OF CONTENTS ACKNOWLEDGEMENTS ABSTRACT LIST OF TABLES LIST OF ABBREVIATIONS CHAPTER BACKGROUND OF THE STUDY 1.1 INTRODUCTORY 1.2 THESIS OBJECTIVES AND RESEARCH QUESTIONS 1.3 SCOPE AND LIMITATION 1.4 RESEARCH METHOD AND DATA COLLECTION 1.5 THESIS STRUCTURE CHAPTER ESSENTIAL THEORY OF UNSECURED LOAN ACTIVITIES 2.1 BACKGROUND OF UNSECURED LOAN 2.1.1 Definition .4 2.1.2 Classification of unsecured loan 2.1.3 Features of unsecured loan 2.2 FACTORS AFFECTING UNSECURED LOAN 2.2.1 Objective factors 2.2.2 Subjective factors 2.3 SOME INDEXES AFFECTING APPROVAL PROCESS 10 2.3.1 Debt settling rate .10 2.3.2 Bad debt ratio of personal loan 10 CHAPTER REAL STATISTICS AND ANALYZATION OF UNSECURED LENDING ACTIVITIES IN AUSTRALIA AND NEWZELAND BANK IN THE SOUTHERN OF VIETNAM 13 3.1 GENERAL BACKGROUND OF AUSTRALIA AND NEWZELAND BANK WITH THIRD BRANCH IN HANOI 13 3.1.1 Development history 13 3.1.2 Organizational structure of HN3 – ANZ 15 3.1.3 General features of unsecured loan product in HN3 - ANZ 16 3.2 THE CURRENT SITUATION OF UNSECURED LOAN ACTIVITIES IN HN3 – ANZ BETWEEN 2014 AND THE FIRST QUARTER OF 2016 24 3.2.1 General business operation from the domestic economy 24 3.2.2 General business performance in HN3 – ANZ .26 3.2.3 The real situation for unsecured loan activities in HN3 – ANZ 27 3.2.4 Some indexes affecting the approval process 28 CHAPTER RECOMMENDATION AND SOLUTION TO IMPROVE THE CURRENT UNSECURED LOAN SITUATION 32 4.1 SWOT OF PROVIDING AN UNSECURED LOAN 32 4.1.1 SWOT analyzation of unsecured loan for banks 32 4.1.2 Advantages and disadvantages for customers using unsecured loan 34 4.2 RECOMMENDING SOLLUTIONS TO ADAPT THE CUSTOMER DEMANDS 35 4.2.1 Enhacing human resource quality 36 4.2.2 Focusing on marketing campaigns 36 4.2.3 Conduct many internal competitions periodically 37 CONCLUSION REFERENCE ACKNOWLEDGEMENTS Throughout this graduation thesis, I would like to send my gratefulness to those who are always available to support me for completing my academic study during the four passing years Firstly, I would like to thank my thesis advisor Ms Tran Thi Xuan Anh – a faculty chairman under finance faculty at Banking Academy of Vietnam She is a supportive supervisor and always willing to assist me whenever I run into a trouble spot or have questions around my research or writing She consistently allowed this paper to be my own work, but steered me in the right the direction whenever she thought I needed it Secondly, I would also like to thank my senior collages at the third sales center at Hanoi in Australia and New Zealand Banking Group for introducing me some useful knowledge I have never learned before and the specifically real statistics for the analyzation and assessment I presented within this thesis The third acknowledgement I would like to give my best friends, Ha Thi Minh Phuong and Ha Thuy Nga, as the second readers of this thesis Without their enthusiastic contribution and their very valuable comments on this thesis, the validation survey could not have been successfully conducted Finally, I must express my very profound gratitude to my parents, along with my classmates and all teachers in the faculty of Foreign Language at Banking Academy of Vietnam for providing me with unfailing support and continuous encouragement during studying time and through the process of researching and writing this thesis This accomplishment would not have been possible without them Thank you Hanoi, May 18 th 2016 ABSTRACT In the current process of economic integration, trade barriers and fierce competition, the international transitions become not familiar with Vietnamese people They are likely to involve in many economic fields to gain profit and the unique factor having negative impact on their decision is the financial capacity Thus, unsecured loan has been introduced to the public, aiming at satisf ying customers immediately their investment capital needs without using any personal property for mortgage This type of loan is much prevalent in the world, as a credit staffs, I am really burning to bring this excellent service to support for Vietnamese people This is reason why I choose “DEVELOPMENT UNSECURED LOAN PRODUCT IN AUSTRALIA AND NEW ZEALAND BAKING GROUP WITH SALES CENTRE IN HANOI” as an urgent topic presenting within my graduation thesis During the time of researching, it is exponentially fortunate to receive the assistance from surrounding people in collecting valuable and updated figures Since then, I have used the quantitative research method and qualitative research method mixing with critical analyzation to absolutely explore these collected figures Furthermore, news updated from the Internet, television, radio and other mass media brings me diversified looks and removes my personal biased views As a result, I can see the essential differences among the Vietnamese market and the global market, and then produce valuable assessments for myself first and then for all bankers in general Although the research has reached its aims, there were some inevitable limitations and shortcomings I look forward to the feedback from the teachers LIST OF TABLES Table 2.1 Average income amount of customers 10 Table 3.1 Interest rate policy for unsecured loan in ANZ 17 Table 3.2 Comparison of unsecured loan products between competitive banks 21 Table 3.3 General operational situation in ANZ from 2014 to Q1/2016 Table 3.4 Debt balance from lending activities in HN3 - ANZ 26 Table 3.5 The number of unsecured loan customers from 2014 to 2015 27 Table 3.6 The non-approval rate at HN3 – ANZ 2014 – Q1/2016 31 LIST OF DIAGRAMS Diagram 3.1 Organizational structure in HN3 – ANZ 15 Diagram 3.2 Approval process steps for unsecured loan in HN3 –ANZ 18 LIST OF CHARTS Chart 3.1 The movement of bad debt ratio in group 2-5 in HN3 - ANZ 2014Q1/2016 29 LIST OF ABBREVIATIONS Abbreviations Full version ANZ Australia and New Zealand Banking Group HN3 The third sales center in Hanoi DSR Debt settling rate Q1/2016 The first quarter of 2016 FM Fund mobilization OC Outstanding Credit groups of bad debt Group Standard loan Group Criticized loan Group Substandard loan Group Doubtful loan Group Loss loan Banking Academy Graduation thesis CHAPTER BACKGROUND OF THE STUDY 1.1 INTRODUCTORY In the quick pace of modern life, Vietnam has been turning from a developing agricultural country into a far more progressive country by experiencing a process of economic integration, trade barriers and fierce competition in the pass of years For Vietnamese people, this is a good chance providing a huge of challenges and encouraging them to make much effort to collect new successes People are available to invest their property and power into various fields like agricultures, industries and services to gain profit However, they donot own in hand a large amount of money that mainly belong to their real estates, vehicles or financial instruments, so they tend to use the services of banks to adapt to their needs Thanks to the rapid development of banking sector, everything can become more simple and convenient for meeting the urgent need of customers On the customer side, I explored that a group of people is not willing to mortgage their own property for making a loan because they may lose them in some bad cases With the mountain of work, the customers always want to carry out schedules simply and fast, so they opt for an unsecured loan instead of loan with a mortgage However, the unsecured loan has not popular in the Vietnamese banking system over past years, and with their necessary needs, customers have to borrow money from other credit institutions like FE Credit, HD finance with exceptionally expensive interest rate level Starting from the main goal that satisfies customer needs, the banks concentrate on developing lending products for individuals, especially unsecured loan Since then, the type of unsecured loan has been more popular In the banking system of Vietnam, there are many kinds of banks engaging in, namely, state-owned banks, urban joint-stock commercial banks, foreign banks, joint-ventures Along with current economic integration process, I decided to apply for customer relationship officer in Australia and New Zealand Banking Nguyen Thi Thanh Hai – ATCA K15 Page Banking Academy Graduation thesis Group (ANZ) – an international bank – aiming at classifying that how they operate and the differences in comparison with the other domestic banks And then I witnessed a general trend of current banking system that focuses much on individual customers instead of businesses although the size of these loans is no t as large as the loans providing for businesses However, the extremely higher number is likely to help banks spread the credit risks During a practice in ANZ Hanoi, it was found that unsecured loan activity is facing many difficulties, not really commensurate with the current growth Thus, I decided to a research about advantages and disadvantages of providing unsecured loan in ANZ with third branch in Hanoi and classify in my graduation thesis 1.2 THESIS OBJECTIVES AND RESEARCH QUESTIONS Based on theoretical and practical, the thesis focused on analyzing the situation and assessing the performance of personal loans especially unsecured loan in Australia and New Zealand Banking Group Thereby, some suggestions to enhance personal credit will be given 1.3 SCOPE AND LIMITATION The study will focus on the unsecured loan activity in Australia and New Zealand Banking Group in the period from 2014 to the first quarter 2016 Thus, it will be limited only to the products, size and some criteria in order to evaluate the efficiency of this credit, as well as the information from literatures that will be cited and reviewed 1.4 RESEARCH METHOD AND DATA COLLECTION The main research’s approach could be identified as:  Quantitative researching method  Qualitative researching method  Statistical method  Analyzing figures Nguyen Thi Thanh Hai – ATCA K15 Page Banking Academy Graduation thesis  Summarizing information gathered in all media means 1.5 THESIS STRUCTURE The paper included four chapters following: Chapter Background of the study Chapter Theoretical background of unsecured loan activities Chapter Real statistics and analyzation of unsecured lending activities in Australia and New Zeland Bank in the Southern of Vietnam Chapter Recommendation and solution to improve the current unsecured loan situation Nguyen Thi Thanh Hai – ATCA K15 Page Banking Academy Graduation thesis ANZ 3.2.2 General business performance in HN3 – ANZ Table 3.4 Debt balance from lending activities in HN3 - ANZ Unit: Billion dong, % 2014 Total balance 2015 Q1/2016 Number Percent Number Percent Number Percent 119.286 100% 100% 100% 145.217 167 Classification basing on mortgage property Unsecured 59.173 49.6 80.6957 68.9 102.1 61.1 60.113 50.4 64.52174 31.1 64.9 38.9 loan Secured loan Classification basing on objective customers Personal loan 71.573 60 87.13 60.1 100.2 60 Business loan 47.72 40 58.0869 39.4 67.2 40 Source: Financial reports of HN3 – ANZ 2014 – Q1/2016 The December of 2015 experienced a favorable movement in credit activities as the other ways expressed that the spring is coming However, after the Lunar new year 2016, happened equivalently to other domestic banks, customers tend to withdraw much money which has influence on lending activities due to low capital At the end of 2015, the total debt balance of HN3 – ANZ was 145.217 billion dong, increased by approximately 21.7% compared with 2014 balance Then after the end of first quarter in 2016 the total debt balance has not been improved and stood at 167 billion dong, increased by approximately 15% There are two ways to classify the lending field into smaller groups like unsecured loan and secured loan (basing on whether banks use mortgage property or not) or business loan and personal loan (basing on the types of customers banks served) A glance at the movement in lending activities in HN3 – ANZ, It is highlighted to indicate that this bank has been enhancing to develop lending activities for individuals rather than businesses, particularly unsecured loan The year of 2015, HN3 – ANZ lent 80.7 billion dong in total unsecured loan amount Nguyen Thi Thanh Hai – ATCA K15 Page 26 Banking Academy Graduation thesis and has climbed to 102.1 billion dong in the first quarter of 2016 (increased by 26.5%) 3.2.3 The real situation for unsecured loan activities in HN3 – ANZ As the general situation of unsecured loan activities in the domestic banks, HN3 – ANZ has newly developed the type of loan for a short time, so all staffs in personal loan department divided into teams for competition with separate orientations to find the right people with highly borrowing demand The following report in the end of 2015 can show the specific number that each team served and completely supported Table 3.5 The number of unsecured loan customers from 2014 to 2015 Unit: People, % Year 2014 Number Year 2015 Percent Number Percent Team 245 21.3 347 23 Team 302 26.3 397 26.3 Team 286 16.2 366 24.2 Team 315 27.2 401 26.5 1148 100 1511 100 Total Source: Finance reports of branch 2014 – 2015 The number of customers involved in unsecured loan in HN3 - ANZ is increasing in recent years, with the fourth team leading which reached 315 successful applications in 2014 and grew to 401 applications in 2015 The key method that team get access to the public is through associating with businesses They often make an appointment to the agent office managers of many businesses to analyze the market before setting several introductory workshops to present all upside features from this product for all staffs once or twice times per month Certainly, this grants the most efficiently within methods implemented, namely, direct sales at shopping malls (team 1), connecting to businesses only for collecting human resource list and then sales through telephones (team 2), and improving after-sales (team 3) In general, the total number of customers served was 1148 in 2014 and rose Nguyen Thi Thanh Hai – ATCA K15 Page 27 Banking Academy Graduation thesis to 1511 in 2015 The considerable growth of roughly 31.6% per year can present the bloom of unsecured loan in HN3 – ANZ in particular and in the banking market in general In the first quarter 2016, the sales center received 620 customers in total for teams This was one of the positive signs followed by the developmental orientation of HN3 – ANZ and the sharply continuous increase in customers reflect the high credit prestige and quality of the HN3 - ANZ in the domestic banking market 3.2.4 Some indexes affecting the approval process 3.2.4.1 Bad debt ratio According to assessment from financial experts, the domestic banks, which have increased the amount of provision to avoid unexpected risks, contribute to reduction in the general profit ratio in the whole banking system This is an unforgettable consequence from serving some previous customers relating to bad debts, which leads to much impact on prestige of credit staffs and ANZ In the system of ANZ policy, the bank only supports for customers having bad debt only in group (under days) Since then, lending activities can be controlled more carefully in a sustainable basis Although the recent economic status meets much difficulty and the bad debt ratio has considerably increased, ANZ along with the strict process has maintained bad debt ratio in an acceptable level This is partly because the bank always carefully considers and verifies the information surrounding debt repaying ability before disbursement The chart below shows the non-approval contracts due to they involved in bad debt in group 2-5 in HN3 - ANZ during recent years Nguyen Thi Thanh Hai – ATCA K15 Page 28 Banking Academy Graduation thesis Chart 3.1 The movement of bad debt ratio in group 2-5 in HN3 - ANZ 2014Q1/2016 Unit : % Bad debt ratio in HN3 - ANZ 2014 - Q1/2016 Bad debt ratio in HN3 - ANZ 2014 - Q1/2016 2014 2015 Q1/2016 4.93 6.54 5.76 Source: Financial report in HN3 – ANZ 2014 – Q1/2016 As can be seen from the chart and compared with some information shown in the table 3.4 above, bad debt rate moves negatively in comparison to lending activities at HN3 – ANZ The year of 2015 witnessed a remarkable growth of 1.61% to 6.54% in bad debt ratio prior to reduction again of 0.78% to 5.76% in the first quarter of 2016 Meanwhile, the quantities of unsecured loan that HN3 – ANZ supporting went up from 1148 to 1511 and has continued to sharply rise according to report in the first quarter of 2016 This is a brilliant signal after experiencing a slight financial crisis in risk management in 2015, HN3 – ANZ can produce the efficient measures to control the bad debt rate and lower the rate to 5.76% in the first quarter of 2016 In fact, HN3 – ANZ are recently looking forward to expand credit operations among the competitive environment but outstanding credit of the domestic banking market In addition, delinquency indicator which is simply calculated by the number of loans that have delinquent payments divided by the total number of loans an institution holds is low It demonstrates that the quality of credit officers and credit risk managers had improved Nguyen Thi Thanh Hai – ATCA K15 Page 29 Banking Academy Graduation thesis 3.2.4.2 DSR index DSR = I x A – D – Cr x 5% To accept a loan contract, the bank has to assess many factors and DSR index is one of this important factors The DSR index is calculated by items, namely, the average income, the debt paying rate, the debt for other financial institutions, the average limit of credit card I take an example to classify deeply about this index: Example: Customer A has been paid 18 million dong, 19 million dong, 14 million dong for the nearly recent months He signed a loan contract of 150 million dong at Techcombank months ago and then he has paid 1.6 million dong per month for both principal and interest Indeed, he also owns credit cards of Vietcombank and ACB with corresponding limits, at 30 million dong and 20 million dong Compress the ability for paying a debt of A Task performance: The average income amount: I = = 17 >16 (million dong) The debt paying rate: A = 60% The average limit for credit cards A using: Cr = = 25 (million dong)  DSR = 17 x 0.6 - 1.6 – 25 x 0.05 = 7.35 (million dong)  The customer A has 7.35 million dong to settle the loan amount he is going to apply to the bank According to some eligible standards to provide him a reasonable limit and tenor for his loan The table below indicates the non-approval rate at HN3 – ANZ due to the loan contract does not adapt to DSR index: Nguyen Thi Thanh Hai – ATCA K15 Page 30 Banking Academy Graduation thesis Table 3.6 The non-approval rate at HN3 – ANZ 2014 – Q1/2016 Unit: % 2014 2015 Number Percent Number Q1/2016 Percent Number Percent Non-approval 1148 13.6 1511 11.3 620 5.5 Total receiving 1321 100 1704 100 656 100 contract Source: Financial reports in HN3 – ANZ 2014 – Q1/2016 It is highlighted from the table that the non-approval rate at HN3 – ANZ had a downward tendency from 13.6% in 2014 to 11.3% in 2015 and then in the initial period of the year 2016, this rate significantly has fallen to 5.5% This is not likely to reflect exactly the totally financial scenes because this statistics belongs to a quarter of a year However, this also is a good signal remarking the development of unsecured loan at HN3 – ANZ as well as the better specialized skills from bank staffs enriched for some recent years Nguyen Thi Thanh Hai – ATCA K15 Page 31 Banking Academy Graduation thesis CHAPTER RECOMMENDATION AND SOLUTION TO IMPROVE THE CURRENT UNSECURED LOAN SITUATION 4.1 SWOT OF PROVIDING AN UNSECURED LOAN 4.1.1 SWOT analyzation of unsecured loan for banks The consumption from individuals exponentially affects the economic growth For instance, that a new product line is launched to the public and attracts a large number of consumers contributes to higher demand on this product This is equivalent to promote manufacturers continuing to produce this product and supply for this product increasing partly leads the economy to sharply grow As deeply understand motivation of the economic growth, banks focus on improving loan products without using any property for mortgage For the economy in general, the more strongly the unsecured loan develops, the higher the consumption ability is, which encourages the domestic and global economy to grow 4.1.1.1 Strengths of unsecured loan The main function of current banking system is to raise funds by receiving deposits from the public who own the surplus amount of money to people on demand and then collecting profit To conduct this goal requires the bank staffs to a deep research in every single market with loan products for business or household, individual Deeply exploring products for individuals becomes a strong tendency in the banking system now Although the volume of personal loan is not as high as that of business, individual is an essential factor to evaluate the bank’s prestige because verbal marketing is the most effective method in business Thus, banks now implement many projects toward individual customers, especially unsecured loan Almost all banks now own a private unsecured loan product partly because they have to compete with other banks launching this type of loan with many more highlighted features Moreover, they also can avoid much credit ricks because they lend money and also receive both principal and interest in monthly Nguyen Thi Thanh Hai – ATCA K15 Page 32 Banking Academy Graduation thesis basis Subsequently, the banks will use this amount of money for signing another loan contract to get profit again 4.1.1.2 Weakness of unsecured loan Unsecured loan is the most prevalent lending method in the world; however, for some private reasons, it has just been introduced to the public in Vietnam for several recent years Thus, Vietnamese unsecured loan definitely catch up many new difficulties like finding highly potential customers without bad debts, high interest rate, influent treating skills from staffs To begin with, the high interest rate is the biggest drawback that banks must deal with It is uncomplicated that banks always offer a high level of interest rate for reducing bad risks and also raising profit because borrowers cannot use any property for mortgage Moreover, because this type of loan has just newly appeared, so banks have not got access to customers’ belief, which lead to difficulty in finding eligible borrowers 4.1.1.3 Opportunities of unsecured loan The central bank of Vietnam present some drafts for new circulars promised to launch in the nearest future in which includes rules surrounding lending activities of financial institutions, particularly credit for consumption It states that unsecured loan is likely to separate from banking system and transfer to credit organizations taking on It is also the reason why banks recently tend to establish small credit institutions under their management to enhance their opportunities like ACB, BIDV, Sacombank; or repurchase other financial company for restructuring and varying business campaigns, namely, HD bank, Maritime bank, Techcombank, SeA bank For instance, ACB is predicted to open general financial limited company with 500 billion dong of charter capital or Maritime bank repurchased Fabric company last year Mr Nguyen Dinh Tung – general director of Orient commercial joint stock bank (OCB) – stated that this current market divides into many customer classes and the customers also need excellent products with quick process handling Therefore, it is necessary to create a new group specializing consumption loan products to gain higher productivity to certainly meet the customers’ needs and Nguyen Thi Thanh Hai – ATCA K15 Page 33 Banking Academy Graduation thesis prevent risks Apart from fluctuation in domestic market, many foreign financial companies from Japan or Russia plan to penetrate and spread product lines in Vietnam For banking system, new financial companies established encourage to the flexible shift in the financial market, equivalent to help commercial banks spread credit risks, and then it is much simple for the central bank of Vietnam to handle movement surrounding cash flow In addition, the amount an unsecured loan for consumption customers applying is usually small in the short or medium time, so many borrowers state that the high level of interest rate does not get impact on their decision because the benefits they gain from unsecured loan like high speed of approval process, no need to mortgage their own property 4.1.1.4 Threats of unsecured loan Offering a property as security to take out a loan becomes risky You are left with the threat of losing it, in case you fail to pay off the loan No such kind of risk is involved in unsecured loans, as they are not taken against any property So, this type of loan is a risk-free option of raising necessary funds According to the report from Stox Plus – a company of communication and finance, the total financial capacity of credit market in 2013 went around 188,000 billion dong that amounts to 12% of credit growth and 5.4% of GDP It also said that the large part of debt concentrate on allocating at loan contracts mortgaging cars, houses and other real estates and only 4% of loan contracts is unsecured loan This indicates that the experts from credit institutions need to present some promotional campaigns or better methods to attract more customers At that time, they need to launch a range of product lines to attract customers but are also necessary to focus on customer services toward the served customers that is the most preciously communicating channel 4.1.2 Advantages and disadvantages for customers using unsecured loan 4.1.2.1 Advantages for customers using unsecured loan Unsecured loans offer many benefits to customers There are some of the most important ones: Flexibility of use: personal loans are multipurpose They can be used for Nguyen Thi Thanh Hai – ATCA K15 Page 34 Banking Academy Graduation thesis various different types of purposes, ranging from travel expenses, purchasing furniture to house or car improvements Simple and fast procedures: getting the personal loans is very fast In some cases, borrowers can get the loan even within days Minimal documents required: Normally, personal loans don not need much documentation, especially unsecured loan Hence the processing time is quicker The other advantage of unsecured loan is no collateral or security needed: No need for security is required to obtain this loan and the loan tenure is much shorter compared to home loan or car loan Installment repayments: Monthly interest payment, principal repayment on monthly basis or at maturity They generally fall in the long term range A longer amortization, such as 20 years, means that each month’s payments will be low a nd easy to make 4.1.2.2 Disadvantages for customers using unsecured loan High interest rates: Because unsecured loans are backed only by trust, they're more of a risk for the lender, the higher the risk the higher it costs to borrow; borrowers with bad credit will face high interest rates on an unsecured bad credit loan, if you have a good credit rating however, this will not be so much a problem for you Lack of flexibility: When you take out an unsecured loan you agree to pay it back in installments over a given period of time for example £300 per month for 5years, you will not be able to adjust to a lower payment, also if you wish to pay off the loan sooner, you will face an early repayment fine As you can see, an unsecured loan has its pros and cons, ideally if own a home or other property that you can use as collateral, it is better to get a secured loan as the interest rate will be significantly lower If you have a good credit rating and need a small loan, an unsecured loan is ideal for you 4.2 RECOMMENDING SOLLUTIONS TO ADAPT THE CUSTOMER DEMANDS From previous analyzation assessing the current situation of the personal loan operation in the banking market in general and at HN3 – ANZ in particular, Nguyen Thi Thanh Hai – ATCA K15 Page 35 Banking Academy Graduation thesis the unsecured loan seems to be a new land that has not been fully explored, so many strong banks also invest much effort into this field However, it still exists many disadvantages, which contributes ANZ to produce many solutions to remedy this current issues including considerable competition within banking system and other financial companies 4.2.1 Enhacing human resource quality Specialized quality of bank staffs the most concerned issues of almost banks Currently, the advantage of HN3 – ANZ is recruiting a large number of young employees, who have good qualifications in both Vietnam and foreign countries However, the qualification is not enough in practical, indeed, a person who is ready to be an excellent employee in ANZ has to be train carefully and professionally before the real work and also usually retrain during working time Thus, the bank should open more training cources and more importainly, the have to launch som policies to encourage employees to attend those courses to enhance their professional skills During this course, it does not only train staffs on legal knowledge from managers or directors, but also create chances to best sellers deriving from teams to share their knowledge and experience, and then improve understanding of policies and documents related to the regime of credit activity 4.2.2 Focusing on marketing campaigns The heart of your business success lies in its marketing In banking sector, marketing activities are the media, advertisement, establishing distribution channels, customer services, etc These are activities played an important role in the psychological customers that have majority habits The bank can strengthen marketing activities through the mass media such as television, newspapers, radio, social networks Nowadays, the global technology revolution effects almost aspects of people’ life, so the development of E – banking is very important to push up the bank’s competitiveness E – banking services should be invested and more focused on in the near future in term of mobile and internet banking In addition, ANZ should co-operate with unions, organizations, companies and enterprises to expand marketing network as well as increase the huge number of customers from these organizations Nguyen Thi Thanh Hai – ATCA K15 Page 36 Banking Academy Graduation thesis Moreover, this activity brings high efficiency, so the Branch should establish a marketing department which is responsible for researching customer sentiment, market and brand promotion in a professional manner, to recognize the right direction, audience and provide useful measures Maintaining a good relationship with old customers: there are many ways introduce loan products and having a good relationship with the old customers is an smart method to seek a new and effective customers In fact, a person who you successfully supported for can place their belief in you, and then they can introduce their friends who also need raise funds and expect that you can bring the best services to their relatives Thus, credit officers should regularly contact with the previous customers (at least time per month) to ask for customer’s information like financial status, jobs, accommodation, relatives, debt repaying status, ect as the special concern In some case, the bank can launch some promotional campaigns about interest rate or rewards, the bank staffs also connect to their old customers to offer an extra-lending activity 4.2.3 Conduct many internal competitions periodically As a new way to encourage the working performance, it is nescessary for the bank to promote some emulation movement on some special occasions among teams in general and seperate individuals in particular In addition, many of the case competitions have significant cash prizes for winners, ranging from a few hundred Vietnam dongs to millions Vietnam dong, providing an additional incentive for candidates to enter This is also the chance that candidates can express their personal ability, experience, knowledge and then obviously understand their collages, which enhances the solidation within a team or different teams Correspondently, bank staffs who often keeps their working performance at the high level deserve to achive motivated rewards Conversely, people with a low responsibility are worthy to gain a penalty for their fault As a result, it creates a professional and fair environment that always allows employees to their best even overcome their personal limit Nguyen Thi Thanh Hai – ATCA K15 Page 37 Banking Academy Graduation thesis CONCLUSION In theoretical basis, when analyzing the situation at the third sales centre of ANZ in Hanoi, the graduation thesis focuses on solving some of the following questions: What is the unsecured loan? How does it work? What are the benefits achieved? What are the advantages and the disadvantages that banks and customers have to deal with? First of all, to answer for the initial question requires me to study about some theories surrounding unsecured loan operation of the domestic banking system in comparison to the international market This thesis definitely classifies that applying this type of loan belong to creditworthiness from customers into the real Vietnamese economy causes both positive and negative problems Some positive features like a quick approval process, flexible tenor are extremely benificial to customers Besides, there exist negative features together with objective and subjective factors that are risky to customers and lead them to be confused at their borrowing decision Secondly, the thesis analyzes current situation of loans without mortgage at HN3 - ANZ from 2014 to the first quarter 2016 It can be said that the third sales center of ANZ in Hanoi has the considerably developing steps by analyzing the pass three year statistics Finally, I give some solutions and suggestions to improve unsecured loan activities in ANZ in general, in the third sales center of ANZ – HN3 in particular These solutions focus on improving evaluation work and training of credit officers, enhancing the quality of products in order to limit credit risks However, in the fiercely competitive environment and constantly fluctuating economy, HN3 – ANZ need support from the competent authorities facilitating to develop personal loans and meet consumer needs, improve the Nguyen Thi Thanh Hai – ATCA K15 Page 38 Banking Academy Graduation thesis people’s life The year 2016 opens up the opportunities and challenges to the operation of unsecured loan in the third sales center of ANZ in Hanoi I hope that with the right business strategy, HN3 – ANZ can catch up with the change of the market economy under the direction of the general board of directors Indeed, the efforts from the credit staffs are the main factor contributing to the sustainable development of the third sales center of ANZ in the future Nguyen Thi Thanh Hai – ATCA K15 Page 39 Banking Academy Graduation thesis REFERENCE https://en.wikipedia.org/wiki/Wikipedia http://www.investopedia.com http://www.bankrate.com/finance/ http://faculty.mu.edu.sa/public/ http://tindungthongminh.com/vay-tin-chap/ http://www.shareholder.anz.com/ Nguyen Thi Thanh Hai – ATCA K15 Page 40