project report degree professional degree in banking insurance topic improving the quality of credit card services at tpbank lang ha branch

Survey on credit card quality at Tien Phong Commercial Joint Stock Bank Lang Ha Branch .... Evaluation of credit card service quality at Tien Phong Commercial Joint Stock Bank - Lang Ha

ACADEMY OF FINANCE UNIVERSITY OF TOULON

PROJECT REPORT

Degree: Professional degree in Banking-Insurance

Topic: Improving the quality of credit card services at TPBank - Lang

Ha branch.

1 Le Anh Nguyet

2 Nguyen Phuong Anh ( Leader )

3 Nguyen Thi Minh Nhan

4 Nguyen Thi Thanh Hau

5 Nguyen Thu Nga

6 Pham Hong Duong

Bank - Lang Ha Branch

Hanoi, 2022-2023

TABLE OF CONTENTS

FOREWORD 1

CHAPTER 1: GENERAL INTRODUCTION ABOUT INTERNATIONAL GOODS AND MISSIONS 3

1.1 History of Tien Phong Commercial Joint Stock Bank 3

1.1.1 General information about the bank 3

1.1.2 Important Events 3

1.1.3 Core Values of the Bank 3

1.1.4.Basic business activities of TPBank: 4

1.2.Overview of Tien Phong Commercial Joint Stock Bank - Lang Ha Branch 5

1.2.1.Organizational chart 5

1.2.2 Basic business targets and results of Tien Phong Commercial Joint Stock Bank - Lang Ha Branch from 2019 to 2021 5

1.3 About Internship Tasks 9

1.3.1.Purpose of practice 9

1.3.2.Internship plan 10

CHAPTER 2 CURRENT STATUS OF CREDIT CARD SERVICE QUALITY AT TIEN PHONG JOINT STOCK COMMERCIAL ANK - LANG HA BRANCH 12

2.1 Credit card issuance activities at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch 12

2.1.1 Credit card issuance process at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch 12

2.1.2 Credit card products at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch 12

2.1.3 Number of credit cards issued at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch 15

2.1.4 Card payment activities at Tien Phong Commercial Joint Stock Bank - Lang Ha branch 15

2.1.5 Revenue from credit card business 16

2.2 Survey on credit card quality at Tien Phong Commercial Joint Stock Bank Lang Ha Branch 18

2.2.1 Survey Model 18

2.2.2 Survey objectives and questions 18

2.1.4 Construction of the scale 19

2.1.5 Methods of analyzing survey results 19

2.2 Survey Result 20

2.2.1 General information 20

2.2.2 Measuring scale results 21

2.5 Evaluation of credit card service quality at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch 35

2.5.1 Successful 35

2.3.1 Limit 36

2.3.2 The cause of the limitations 37

CHAPTER 3: SOLUTIONS FOR HIGH QUALITY CREDIT CARD SERVICES AT TIEN PHONG JOINT STOCK COMMERCIAL JOINT STOCK COMPANY LANG HA BRANCH 39

3.1 Solution 39

3.1.1 Technical and technological solutions 39

3.1.2 Marketing policy for credit card business 39

3.1.3 Expanding network and improving service quality at credit card merchants 39

3.1.4 Solution to limit risks in credit card payment 39

3.2 Request 40

3.2.1 Proposing card business activities at TPBank Lang Ha Branch 40 –

CONCLUSION 42

TABLE OF FIGURES

Chart 1 5 core values of TPBank - Lang Ha Branch 3

Chart 2 Organization chart of TPBank - Lang Ha Branch 5

Chart 3 The growth of mobilized capital at TPBank - Lang Ha Branch in the period of 2019 - 2021 6

Table 2 Business results at TPBank - Lang Ha Branch in the period of 2019 2021 8 –

Table 3.Internship plan at TPBank - Lang Ha Branch 10

Table 4 Credit card issuance process at Tien Phong Commercial Joint Stock Bank –

Lang Ha branch 12

Table 5 Card products at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch 13

Table 6 Compare Mastercards credit cards between banks 14

Table 7 Number of credit cards issued at TPBAnk - Lang Ha Branch in the period of 2019 2021 15 –

Table 8.Number of merchants in the period of 2019 2021 16 –

Table 9 Sales of credit card payments in the period of 2019 2021 17 –

Table 10 Income from card business in the period of 2019 2021 17 –

Chart 4 Research model 18

Table 11 Sample Structure by Gender 20

Table 12 Usage credit card status 21

Table 13 Value of variables 21

Table 14 Standard deviation 22

Table 15 CRONBANCH’S ALPHA scale ruesults 25

Table 16 KMO and Bartlett's Test 26

Table 17 Model evaluation results Total Variance Explained 27

Table 18 Rotated Component Matrix results 29

Table 19 The factor weight level for the observed variable 30

Table 20 KMO and Bartlett's Test 31

FOREWORD Reasons for choosing the topic

Along with the rapid development of science and technology, the banking system has introduced many new payment means based on modern information technology, in which the card is considered a breakthrough Cards can be used to withdraw money, deposit money, transfer money, or to pay for goods and services…

The credit card business of the developed banks has given banks a new position, a new look In addition to affirming the advanced technology, implementing card services also builds a friendly image for each customer Card products and services with high international standardization are highly competitive products and services in the integration process Therefore, card services have been recognized by commercial banks

as a very important competitive advantage in the race to target the retail banking market Recognizing the role and benefits that the credit card business brings to the bank, Tien Phong Commercial Joint Stock Bank - Lang Ha Branch in recent years has taken positive steps to penetrate the market This school is new Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch has actively deployed credit card products and services based on the guidelines and orientations of the Head Office in order to develop the bank's business activities and bring customers more benefits However, the card business of Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch still has many problems How should these issues be resolved in order for the card business to truly become a competitive advantage of Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch - that is a pressing issue

contact with the Bank That's why my group chose the topic "Improving the quality

of credit card services at TPBank - Lang Ha branch" to research for the graduation

report

Meaning of the topic

- The topic contributes to the assessment of credit card service quality of Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch and proposes some measures to improve this service

Research purposes

- Analyze and evaluate business activities and credit card service quality of Tien

- Proposing some solutions and recommendations to further improve the quality

Object and scope of the study

❖ Scope of space research

- Tien Phong Commercial Joint Stock Bank - Lang Ha Branch, 22 Lang Ha Street, Lang Ha, Dong Da, Hanoi

- Methods of analysis, synthesis and comparison of data: based on the available statistics, conduct the following specialized analysis, compare and contrast between years, period 2019-2020, 2020-2021

Theme layout

The thesis consists of 3 chapters:

- Chapter 1 General introduction to the bank and internship duties

- Chapter 2 Actual situation of credit card service quality at Tien Phong Commercial Joint Stock Bank- Lang Ha branch

- Chapter 3 Solutions to improve the quality of credit card services at Tien Phong Commercial Joint Stock Bank - Lang Ha Branch

CHAPTER 1: GENERAL INTRODUCTION ABOUT

INTERNATIONAL GOODS AND MISSIONS

- Name: Tien Phong Joint Stock Commercial Bank

- Business registration number: 0102744865 by the Department of Planning and Investment of Hanoi city

- Head Office: TPBank Building, 57 Ly Thuong Kiet, Hoan Kiem District, Hanoi

TienPhongBank was officially established in May 2008 by FPT Corporation, VMS Mobile Company (MobiFone) and Vietnam National Reinsurance Corporation (Vinare) TienPhongBank wishes to create the best conditions for customers and the business community with efficient and convenient financial services based on high technology Only after 3 years of establishment, TienPhongBank has been operating profitably In 2010, TienPhongBank completed an increase of chartered capital of 3,000 billion VND

Chart 1 5 core values of TPBank - Lang Ha Branch

Source: TPBank Brochure

1.1.4 Basic business activities of TPBank:

a) Capital mobilization:

- Receiving deposits from organizations, individuals and other credit institutions

in the form of demand deposits, term deposits and other types of deposits- Issuing certificates of deposit, bonds and other valuable papers to raise capital from domestic and foreign organizations and individuals upon approval of the Governor of the State Bank of Vietnam;

- Other forms of capital mobilization according to regulations of the State bank

of Vietnam;

b) Credit activities:

discounting commercial papers and other valuable papers, guarantees, financial leasing and other forms of credit extension in accordance with the State Bank's regulations Vietnam;

c) Payment and treasury services:

- Provide payment facilities;

- Provide international payment services in accordance with the law;

- Performing cash collection and payment services for customers;

1.2 Overview of Tien Phong Commercial Joint Stock Bank - Lang Ha Branch

Chart 2 Organization chart of TPBank - Lang Ha Branch

Bank - Lang Ha Branch from 2019 to 2021

In 2021, with the real estate market having some fluctuations, it has greatly affected the business activities of TPBank in general and TPBank - Lang Ha Branch in particular However, with the great efforts and determination of the Board of Directors, the Executive Board and all employees, the Business Unit has been gradually overcoming difficulties, building trust in customers, and improving its reputation in the market With a right and continuous direction in recent years, Tien Phong Commercial Joint Stock Bank - Lang Ha ranch has made positive changes in many activities such as capital mobilization, capital use is the specific operation situation at TPBank - Lang Ha Branch

Capital mobilization is a basic activity of Tien Phong Commercial Joint Stock Bank in general and TPBank - Lang Ha Branch in particular TPBank - Lang Ha Branch has always actively promoted capital mobilization from all economic sectors such

organizing attractive promotions for customers, giving gifts to VIP customers on birthdays, holidays, etc Tet,…

As of December 31, 2021: the total capital of TPBank - Lang Ha Branch reached VND 2,119,767 million

Chart 3 The growth of mobilized capital at TPBank - Lang Ha Branch

in the period of 2019 - 2021

The chart 3 shows that the situation of capital mobilization from deposits of TPBank - Lang Ha Branch in the past 3 years has increased significantly from VND 1,351,634 million in 2019 to VND 2,025,773 million in 2020 VND 674.39 million equivalent to 49.88% with diversified and rich forms of capital mobilization products

to meet the needs of customers Therefore, the increasing amount of capital mobilized has helped TPBank - Lang Ha Branch reduce capital mobilization in the interbank market This shows that the prestige of the Business Unit is increasing day by day The lower growth rate in 2021 than in 2020 may be due to the difficult situation of the whole country's economy in 2021

Currently, the deposit management is also regularly and seriously implemented

by TPBank - Lang Ha Branch through the inspection of professional departments

b Activities using capital

Capital use is a very important activity for each commercial bank, it is the main profitable activity of banks, therefore, knowing how to use capital appropriately will help commercial banks improve the efficiency of their business operations Recognizing the importance of capital use, in recent years TPBank - Lang Ha Branch has paid great attention to this activity

Lending activities at TPBank - Lang Ha Branch

Lending in the operation of commercial banks is a profitable process for the business

of the bank With the function of borrowing to lend, banks in general and TPBank - Lang Ha Branch in particular must find ways to attract customers such as: investing, developing factors to improve the quality of their work credit, ensuring business efficiency and capital safety In recent years, due to the complicated developments of the domestic economy, the lending activities of the Bank's branches also experienced many fluctuations:

Unit: million VND

Source: TPBank's Accounting and Treasury Department - Lang Ha Branch

In the context that Vietnam's economy is still facing difficulties due to the general influence of the real estate market and the US-China trade war The trend of globalization is expanding, competition is more intense after Vietnam's accession to the WTO, which has had a great impact on the business activities of commercial banks

in Vietnam Through the chart above, it can be seen that the bank's lending activities in recent years have fluctuated continuously, from 2019 to 2020 the bank's outstanding loan balance will increase from VND 1,358,515 million to VND 1,971,386 million corresponding to an increase rate of 45.11% The reason the loan balance increased so much is because the Government launched stimulus packages to encourage the economy, taking advantage of that opportunity, TPBank - Lang Ha Branch made the right decisions in the business strategy business such as reducing loan interest rates, providing diversified credit products with many incentives to attract more and more customers From 2020 to 2021, the bank's loan balance will be reduced from VND 1,971,386 million in 2020 to VND 1,838,129 million in 2021

c Business results for the period of 2019 - 2021

2021 is a year of many economic fluctuations in the world as well as in the country However, being considered as a lifeline in monetary circulation, commercial banks in general and TPBank - Lang Ha Branch in particular have to shoulder a very

difficult task TPBank - Lang Ha Branch must both try to meet the needs of customers

in the new situation and overcome the old backlogs

Below is the table of business results of Tien Phong Commercial Joint Stock

Bank - Lang Ha Branch for the period of 2019 - 2021:

Table 2 Business results at TPBank - Lang Ha Branch

Deviant 2021/2020

Source: TPBank's Accounting and Treasury Department - Lang Ha Branch Table 2 shows that the net profit from operating activities before risk provision expenses of TPBank - Lang Ha Branch in 2021 is the lowest If in 2019, Lang Ha Branch collected VND 15,738 million, then by 2020, it will receive VND 19,935 million, an increase of VND 4,197 million, equivalent to an increase of 26.67% But

by 2021, net operating profit before deductible expenses will only reach VND 10,360 million, down VND 9,575 million equivalent to a decrease rate of 48.03%

Profit is achieved mainly from credit activities and accounts for a large proportion of total profit, specifically: In 2019, loan interest accounted for 98.69% of total income, in 2020 loan interest collection accounted for 98.32 % of total income, in

2021 income from credit activities will increase, accounting for 99.23% of total income, the rest will come from service activities This shows that in addition to

investing in credit activities, the bank also expands to develop other service activities, making the bank's business activities more and more diversified and rich

Total expenses in 2021 are higher than in 2020, but in return, the cost of credit risk provision that the Branch has to spend for 2021 is much less than 2020 If 2020 TPBank - Expenses Lang Ha branch has to spend VND 17,424 million for this expense, by 2021 the branch only has to spend VND 8,060 million, which has reduced

by VND 9,364 million, equivalent to a reduction rate of 53.74% This is very meaningful to the Branch, it proves that the credit activities of the Branch are carried out very effectively, which has reduced a lot of problem debts for which the Bank has

to use provision for risks credit risk to compensate

The Bank's net profit from business activities in 2020 is higher than in 2021, but the cost of provisions for credit risks is very large, so the total profit before tax in 2020

is obtained by the bank It is also not large, only reaching 2,511 million VND, which is

211 million VND larger than 2021 On the contrary, although in 2021 the net profit from business activities that Lang Ha Branch earns is lower, the risk provision expenses that the Bank has to spend are very small, so in 2021 TPBank - Lang Ha

in place reasonable and appropriate policies to operate more effectively

1.3.1 Purpose of practice

Tien Phong Commercial Joint Stock Bank (TPBank) is one of the leading financial intermediaries in Vietnam After learning about Tien Phong Commercial Joint Stock Bank (TPBank) - Lang Ha Branch, we decided to choose this as the place where we would practice to hone our skills and experience for the future future later Besides, my group can orient their career after graduating from Academy of Finance The goals that the group is trying to accomplish are as follows:

1 Understanding the organizational structure and working environment of a leading bank in Vietnam

2 Learning the style and working style of employees in a particular business

3 Create many relationships and learn a lot from those relationships

4 Apply knowledge and skills learned at school to assigned tasks

5 Complete well and on time all assigned tasks

Principal Component Analysis

a 1 components extracted

2.3.2.3 Pearson's correlation test

Pearson correlation test is a prerequisite step for multivariable regression analysis The purpose of the Pearson correlation is to test the linear relationship between the dependent variable and the independent variables Multicollinearity problem when the independent variables are also strongly correlated with each other Based on the Sig value, the correlation between the independent seas is less than 0.05 and the Pearson correlation value is greater than 0.3, creating a suspicious sign of multicollinearity