Brief History of Orient Commercial Joint Stock Bank (OCB) 1
The full name of OCB is Orient Commercial Joint Stock Bank with its Head office located at 45 Le Duan, District 1, Ho Chi Minh City, Vietnam OCB was established on June 10, 1996 with an initial Figureer capital of VND 70 billion With the rapid and steady development, within only 24 years of development, OCB Bank has currently owned a Figureer capital of up to VND 6,599 billion, this number will continue to increase in the near future 2020 was a very successful year with the revenue of 20.000 billion and the net profit result up to VND 1000 billion, this is an extremely impressive figure.
Slogan "Trust and prosperity" affirms that OCB brings value and prosperity to customers, partners and shareholders Thereby this bank can build solid trust and gain support from customers, partners, and shareholders for the bank's operations.
Over nearly 24 years of operation, OCB has gradually affirmed its firm position in the Vietnamese commercial banking system, with many important development milestones:
- Orient Commercial Joint Stock Bank (OCB) was licensed by the State Bank of Vietnam on April 13, 1996 The initial Figureer capital was 70 billion VND.
- December 31, 2001: Opened the first branch (Ben Thanh Branch) and the first transaction office (Ham Nghi transaction office)
- August 2002: Joined Global Interbank Financial Telecommunication Association (SWIFT)
- January 14, 2003: Merged Tay Do Bank into Orient Bank.
- 2004: Joined the Vietcombank Card Service Alliance, joined the Western Union fast money transfer system, and linked with Saigon Thuong Tin Bank in a number of banking sectors.
- December 19, 2008: Signed a contract to deploy the core banking system between OCB - Vietnam and Temenos AG - Switzerland.
- September 16, 2009: OCB and Ernst & Young Vietnam officially signed a contract to provide support services to complete the internal credit rating system.
- November 6, 2009: OCB signed a shareholder book management contract withPhuong Dong Securities Joint Stock Company (ORS).
Ben Thanh Corporation Cao Thi Que Anh
VinaCapital Vietnam Opportunity Fund Trinh Mai Linh Trinh Mai Phuong Trinh Thi Mai Anh Other shareholders
Figure 1.1: Ownership structure of OCB
- December 15, 2009: OCB announced to offer VND 600 billion of convertible bonds to the public, convertible bonds into common shares.
- In 2013, Total assets reached 33,000 billion VND.
- In 2016, Total assets reached 65,000 billion VND Growth rate is in the group of top 3 leading banks in the market.
- In 2017, Total assets are nearly 85,000 billion VND.
- In 2019, Achieved revenue of 20,000 billion VND and the result in a net profit of up to 1000 billion VND.
OCB is a joint-stock commercial bank with many shareholders, the largest one is Aozora Bank Ltd, a Japanese commercial bank, and other individual and institutional shareholders.
(Source: OCB, OCB Ownership Structure, 2019)
Functions and responsibilities of OCB 2
Functions 2
Through 24 years of operation and development, in addition to building financial solutions that are suitable for each customer, OCB has constantly improved service quality through improving processes, modern technology, and quality, towards customer-focused goals As a joint stock commercial bank, OCB has the main functions of a commercial bank They are best demonstrated through the products and services provided to customers.
- Credit intermediary function: OCB both plays the role of receiving deposits, and acts as a lender and earns profits, which is the difference between the deposit interest rate and the lending interest rate and contributes to the benefits of the bank. Deposits and loans are always the most important activities of a commercial bank It brings the greatest profits.
- Payment intermediary function: OCB acts as the cashier for businesses and individuals, makes payments at the request of customers such as deducting money from their deposit accounts to pay for goods and services, or enters into a client's deposit account sales and other charges on their order.
- Money creation function: Money generation is an important function, clearly reflecting the nature of commercial banks With the goal of seeking profits as the main task for their survival and development, OCB with its distinctive business operations has the function of making money for the economy.
Oriental bank savings deposit is a deposit service with various terms for customers. Savings interest rates are also extremely attractive Customers can receive interest periodically or flexibly at the end of the period When depositing OCB savings, customers will receive many attractive benefits such as the savings that are kept safe and secure during the deposit period, and the savings book can be used as collateral. Wishing to borrow loans at OCB banks and other credit institutions, savings books are used to prove financial ability in case customers apply for tourist or study visas, pay tuition fees abroad, send cash and withdraw money at all OCB banking transaction offices nationwide, automatically receive savings interest into the bank account when interest is on due, OCB loan products offer customers a wide range of products Loan products, to satisfy your spending needs as much as possible.
OCB Bank offers customers a variety of loan products, to satisfy the maximum spending needs of customers.
COM-B unsecured loan package is a consumer loan package for all customers Customers just need to prove that their monthly income from 2 million VND can borrow money A flexible loan is from 6 months up to 36 months with an extremely attractive interest rate.
Top-up unsecured loan package is a loan product, helping customers take the initiative in all expenses and activities of individuals and families Maximum support for their financial plans is the most quick Customers can borrow without collateral The maximum amount up to 200 million VND.
Loans to buy real estate, customers wishing to borrow houses, build and repair houses at OCB bank are all applied with extremely attractive lending policies Loans up to 100% of the value of the property to buy Long loan term, up to 20 years to help reduce the monthly debt repayment burden.
OCB is currently issuing 2 types of cards for customers to choose, which are debit card and credit card OCB has cooperated with major card organizations in the world such as Mastercard, Visa, JCB, and domestic cards.
In addition to the main deposit and credit products, OCB also offers a wide range of other financial products such as insurance services, international money transfer,and receipt, foreign currency trading, remittances etc.
Responsibilities 4
During the process of establishment and development, Orient Commercial Joint Stock Bank always puts the values of customers and partners first With a vision of becoming one of the best banks in Vietnam, OCB has built itself a set of core values as well as distinct values The entire staff of the bank are always actively learning, improving skills, and enthusiasm with customers.
The best evidence for reputation is the trust of customers Each year, OCB serves tens of thousands of customers across all business sectors The number of customers is increasing year by year The Bank also received many prestigious awards from large domestic and foreign organizations This is the recognition and appreciation of OCB's contributions to the economy and the community.
Vision to become a good leading bank in Vietnam, and mission to create optimal solutions that bring the highest value to customers and investors, positively contribute to the general development of the community and society through building a team of enthusiastic staff, understanding the needs of customers, OCB has developed a system of responsibilities to achieve goals, some of the key points are listed below.
- OCB develops and issues internal regulations on the professional operations of credit institutions to ensure there is a mechanism of internal control, audit, and risk management associated with each business process, and plans to handle emergencies.
- Having regulations on credit extension and loan management to ensure the correct use of loans.
- Follow the regulations on asset classification, setting up and using the standard risk provisions of the central bank
- Regulations on asset quality assessment and compliance with minimum capital adequacy ratio.
- Liquidity management regulations, including procedures and limits on liquidity management.
- Regulations on the internal control system and internal audit mechanism in accordance with the nature and scale of operations of each department.
- Regulations on the internal credit rating system Regulations on risk management in credit institutions' operations.
- Regulations on processes and procedures, including customer identification principles, to ensure preventing credit institutions from being used for money laundering, terrorism financing, and other crimes.
- Regulations on plans to handle emergency cases.
(i) Customers are central, understanding and friendly
- Customer satisfaction is the driving force for growth
- Commitment to provide solutions tailored to needs (ii) Speed - Aspiration to pioneer and lead
- The process is simple and fast
- Operation is accurate and efficient
Applying for a loan: Proposing to sign a loan agreement showing loan intent with specified terms The party proposing to enter into a contract is a customer who has a need for a loan at a bank Usually, customers fill out an existing form from the bank.
Appraisal of credit documents: Credit application appraisals are professional acts performed by the credit department to determine the satisfaction of loan conditions, as a basis for lending decisions An appraisal of the credit file is performed by the credit officer and at the end of the assessment process is the preparation of an appraisal report.
Acceptance of offer to enter into a contract: This is an action a bank takes in the form of an official document sent to the customer with the content showing the agreement to enter into a contract Considered as a statement of consent to enter into a contract.
Signing a contract: After the credit file is approved, the parties will come to agree on final terms and then sign a contract According to the law, the representatives of the contracting parties must be the legal representatives, including the legal representative or the authorized representative.
Disbursement: The bank disburses the client, providing the amount agreed upon in the credit agreement This amount can be disbursed once, or many times by cash or bank transfer.
2.2 Individual loan services at OCB Nguyen Trai
A business and production loan at OCB is a bank loan that provides additional capital needs of customers to produce, trade, provide services, expand the scale, improve competitiveness The accepted business loan purposes are the purchase of goods and materials for investment in machinery and equipment, repair and upgrade of factories, production and business establishments, investment loans, and household businesses
Total loan amount (VND billion )
Figure 2.1: Total value of business loans at at Nguyen Trai Transaction Office
(Source: Internal database of Nguyen Trai Transaction Office)
Figure 2.2: Number of business loan customers at Nguyen Trai Transaction Office
(Source: Internal database of Nguyen Trai Transaction Office)
From 2016 to 2020, the number of customers increased by 66.67%, total loans increased by 171.43% Rapid growth extends into 2020 with an average growth rate every year of over 13.2% and 34% respectively, the highest growth rate since the opening in 2013 This is the first time OCB Nguyen Trai has experienced five consecutive years with customer growth of over 10% and loan growth of 30%. However, it can be seen that the growth rate is slowing down and entering the current state of slow growth.
The growth is reflected in both sectors, the number of customers and the total amount of loans developed quite strongly In 2017, business loans increased by VND 6 billion and played an important part in the overall growth of the Nguyen Trai transaction office Growth in the total value reached only one billion and the number increased only about 5.5% in 2020 due to unfavorable conditions impacted by global epidemic Covid-19 The number of new customers was also delayed, reflecting lower demand while the number of late and bad debts increased.
It can be seen that a uniform growth in both the number of customers and the loan amount, the more customers, the higher the loan amount.
Borrowing capital is no longer a strange concept for many people When there is a need to buy a house, most people with average income need to borrow money from the bank Home mortgage loans are at OCB as a popular form of a loan This is a form of collateral loan to be able to get loans with no too high-interest rates With a mortgage loan, the loan term is long term, up to 25 years Collateral can be real estate or another equivalent For mortgage loans, customers can borrow a large amount of money and the long-term loan period depends on the value of the collateral A mortgage loan is a form of loan that requires assets to mortgages such as a house, a car, or property of appropriate value After that the mortgage is still owned by the customer However, if it is unable to repay the debt to OCB, the collateral will be transferred to the own bank Because the loan amount is often large, it takes time to
Total loan amount (VND Billion) appraise the property, so the processing time of the loan application is also long because of many procedures.
Because a house or apartment loan is a one-time loan and owns a home, an analysis of the aggregate loan amount can reflect the number of customers and their demand.
Figure 2.3: Total value of house and apartment loans at Nguyen Trai
(Source: Internal database of Nguyen Trai Transaction Office)
In the 5 years since 2016, the total average growth rate of home loans increased by 10.6 % per year and reached VND 26 billion in 2020 - the highest ever at Nguyen Trai transaction office Demand for loans for housing and mid-range apartments is growing particularly strong, record levels for continuously changing numbers, with high and steady growth Total lending in the last 5 years has increased from VND
17 billion to VND 26 billion, a total increase of 53 % At the same time, the demand for capital is expected to increase steadily, through surveys and market predictions.
In 2020, although businesses are negatively affected, the number of customers who borrowed money to buy houses at OCB did not decrease.
Total loan amount (VND Billion)
In Vietnam, real estate is one of the pillars of the economy, a dynamic of macroeconomic development According to the Civil Code Law, Chapter 2, Article
181, of this Code stipulates, "Real estate" that is "Non-movable property includes: Land; Houses, works attached to land; Other assets attached to land; Other properties as stipulated by law.” In the Civil Code Law, the noun "Real Estate" has been explained in details.
The demand of customers to buy real estate for residential or investment purposes is increasing Loan products to buy real estate from OCB are receiving more and more attention from those in need One of the most highly valued assets today is real estate Many people have to accumulate a lifetime or borrow money from many people with many difficulties to afford real estate There are customers who have found good real estate but have not been able to buy it because their financial conditions do not allow it The most optimal solution at this time is to borrow from a bank to buy real estate This solution helps customers to soon own the real estate they want to live or invest in profitably.
Figure 2.4: Total value of Real estate loan at at Nguyen Trai Transaction Office
(Source: Internal database of Nguyen Trai Transaction Office)
INDIVIDUAL LOAN SERVICES AT OCB NGUYEN TRAI 11
Individual loan services at OCB Nguyen Trai 12
A business and production loan at OCB is a bank loan that provides additional capital needs of customers to produce, trade, provide services, expand the scale, improve competitiveness The accepted business loan purposes are the purchase of goods and materials for investment in machinery and equipment, repair and upgrade of factories, production and business establishments, investment loans, and household businesses
Total loan amount (VND billion )
Figure 2.1: Total value of business loans at at Nguyen Trai Transaction Office
(Source: Internal database of Nguyen Trai Transaction Office)
Figure 2.2: Number of business loan customers at Nguyen Trai Transaction Office
(Source: Internal database of Nguyen Trai Transaction Office)
From 2016 to 2020, the number of customers increased by 66.67%, total loans increased by 171.43% Rapid growth extends into 2020 with an average growth rate every year of over 13.2% and 34% respectively, the highest growth rate since the opening in 2013 This is the first time OCB Nguyen Trai has experienced five consecutive years with customer growth of over 10% and loan growth of 30%. However, it can be seen that the growth rate is slowing down and entering the current state of slow growth.
The growth is reflected in both sectors, the number of customers and the total amount of loans developed quite strongly In 2017, business loans increased by VND 6 billion and played an important part in the overall growth of the Nguyen Trai transaction office Growth in the total value reached only one billion and the number increased only about 5.5% in 2020 due to unfavorable conditions impacted by global epidemic Covid-19 The number of new customers was also delayed, reflecting lower demand while the number of late and bad debts increased.
It can be seen that a uniform growth in both the number of customers and the loan amount, the more customers, the higher the loan amount.
Borrowing capital is no longer a strange concept for many people When there is a need to buy a house, most people with average income need to borrow money from the bank Home mortgage loans are at OCB as a popular form of a loan This is a form of collateral loan to be able to get loans with no too high-interest rates With a mortgage loan, the loan term is long term, up to 25 years Collateral can be real estate or another equivalent For mortgage loans, customers can borrow a large amount of money and the long-term loan period depends on the value of the collateral A mortgage loan is a form of loan that requires assets to mortgages such as a house, a car, or property of appropriate value After that the mortgage is still owned by the customer However, if it is unable to repay the debt to OCB, the collateral will be transferred to the own bank Because the loan amount is often large, it takes time to
Total loan amount (VND Billion) appraise the property, so the processing time of the loan application is also long because of many procedures.
Because a house or apartment loan is a one-time loan and owns a home, an analysis of the aggregate loan amount can reflect the number of customers and their demand.
Figure 2.3: Total value of house and apartment loans at Nguyen Trai
(Source: Internal database of Nguyen Trai Transaction Office)
In the 5 years since 2016, the total average growth rate of home loans increased by 10.6 % per year and reached VND 26 billion in 2020 - the highest ever at Nguyen Trai transaction office Demand for loans for housing and mid-range apartments is growing particularly strong, record levels for continuously changing numbers, with high and steady growth Total lending in the last 5 years has increased from VND
17 billion to VND 26 billion, a total increase of 53 % At the same time, the demand for capital is expected to increase steadily, through surveys and market predictions.
In 2020, although businesses are negatively affected, the number of customers who borrowed money to buy houses at OCB did not decrease.
Total loan amount (VND Billion)
In Vietnam, real estate is one of the pillars of the economy, a dynamic of macroeconomic development According to the Civil Code Law, Chapter 2, Article
181, of this Code stipulates, "Real estate" that is "Non-movable property includes: Land; Houses, works attached to land; Other assets attached to land; Other properties as stipulated by law.” In the Civil Code Law, the noun "Real Estate" has been explained in details.
The demand of customers to buy real estate for residential or investment purposes is increasing Loan products to buy real estate from OCB are receiving more and more attention from those in need One of the most highly valued assets today is real estate Many people have to accumulate a lifetime or borrow money from many people with many difficulties to afford real estate There are customers who have found good real estate but have not been able to buy it because their financial conditions do not allow it The most optimal solution at this time is to borrow from a bank to buy real estate This solution helps customers to soon own the real estate they want to live or invest in profitably.
Figure 2.4: Total value of Real estate loan at at Nguyen Trai Transaction Office
(Source: Internal database of Nguyen Trai Transaction Office)
With moderate inflation, steady economic growth, and mitigating risks, the real estate market is growing very thin and GDP is growing rapidly, the demand for loans to buy real estate is also stronger than ever Total loans to buy real estate at Nguyen Trai Transaction Office compared to the same period of previous years reached a peak at VND 8 billion in 2019 Loan demand is relatively stable in 4 years from 2016 to 2019 However, in a reaction move when economic activities were affected by the Covid- 19 epidemic, the number of real estate loans at OCB decreased Comparative loan volume over the same period last year has decreased from a peak of VND 8 billion in 2019 to VND 6 billion in 2020, a decline rate equivalent to -25% This downward disparity between the two recent years is not expected to last long as the economic situation in the world and Vietnam is and is about to recover and grows even stronger than before the pandemic.
2.2.4 Home construction and repairs loan
Borrowing money to build a house is the optimal financial solution to support customers even when they have not saved enough money It can be seen that the demand for housing construction and repair of people is increasing However, not everyone has enough finance at the same time to make the dream home and family. And to meet the need for capital to build a house, OCB has launched a home repair loan product with many attractive incentives A home loan is a loan product deployed by OCB to support customers to have enough capital to carry out the purpose of building and repairing their house.
Housing loan characteristics at OCB: The loan limit to build a house is quite high up to 90% of the collateral value Collateral can be real estate under construction or other real estates Long loan periods help to reduce pressure to repay debts for customers OCB has a flexible repayment plan according to customers' needs Loan applications are processed and responded to the results within the same day Simple procedure, quick loan, helps customer quickly have money to build and repair their house.
Total loan amount (VND Billion)
Figure 2.5: Total value of Home construction and repairs loan at Nguyen Trai Transaction Office
(Source: Internal database of Nguyen Trai Transaction Office)
In recent years, OCB has made efforts to formulate a policy of diversifying its product portfolio in the hope to bring the best products to customers and increasing profits. However, despite fast growing economy, the growth is stable In fact, for many consecutive years, the competition in the field is increasing and showing signs of saturation Although not making a large contribution to total product sales, home construction and repair loans also achieved a number of achievements Increasing the loan to build houses at Nguyen Trai intersection is similar to that of OCB's transaction offices and other branches Growth has been steadily 32.25% in four years, and in 2018 growth has been at its highest level since the establishment of the transaction office in 2013 Efforts to stimulate demand through promotions and support have been effective But OCB witnessed a decline in 2020, dropping to pre-
2018 levels with VND 1.4 billion Due to the impact of the pandemic and these are usually small and medium loans Without product quality enhancement, home construction and repair loans will face the risk of prolonging a period of slow growth.
Car loan instalment is a form of bank loan to buy a car Customers need to prepay a certain amount of money, the outstanding balance will be borrowed from the bank, monthly instalments will be paid to the bank at a specific interest rate If customers cannot afford a one-time payment to buy a car, they can pay a part of the value of the car in advance to the dealer, the remaining amount will be supported by OCB to pay off instalments at a reasonable interest rate, with many attractive incentives from time to time Customers can make their own loan at OCB and then go to the car dealership with the referral from the agent At that time, the salesperson takes the middle position between OCB and the buyer A car loan to buy car instalments was deployed and expanded nationwide by OCB The loan interest rate in each period is different, preferential from 7.50% - 9% / year depending on the type of loan profile, vehicle term, loan type, income proof, the value of the mortgage After the preferential period, the floating interest rate is usually 11-13% / year At Nguyen Trai Transaction Office, car loans are not popular and have a low proportion compared to other business categories.
Figure 2.6: Total value of Car purchase loan at at Nguyen Trai TransactionOffice
Total loan amount (VND Billion)
(Source: Internal database of Nguyen Trai Transaction Office)
From this figure, it can be seen that the level of change is erratic and unstable The situation does not have much practical significance because this is a small loan product at Nguyen Trai Transaction Office and it does not reflect the current situation at OCB In 2016, the total loan amount was VND 0.3 billion and increased to VND
0.5 billion in the following year, then the change was not stable thereafter The total car loan amount in 2020 is VND 0.2 billion The total amount of value peaked at VND 0.7 billion in 2019, the cause for this was not specified, possibly due to a random factor In 2020, due to the impact of the epidemic, the car industry has declined but is strongly recovering at the present time In the future, OCB is planning to promote cooperation with dealers and car manufacturers, deduct commissions for sellers and referrals, creating incentives that are expected to produce positive results.
Achievements 27
High growth rate: Individual loan services is one of the pillars of OCB, in the past period, loan services always pride itself on being one of the businesses that always has a comprehensive growth in both size, profitability, and achievement of safety indicators oriented by OCB Accompanying OCB's banking restructuring project, the credit department of Nguyen Trai Transaction Office also takes specific steps to gradually overcome shortcomings, improve business results, handle bad debts, and optimize the network and build a core staff, increase the scale and develop customer base With the above goals, individual loan services have achieved a number of certain achievements.
The total amount of credit transactions has always increased at a high rate over the years, from 2016 until now loan services are the main ones of Nguyen TraiTransaction Office, and individual loan services in general always contribute around30% of the profit of the whole OCB system The NPL ratio is controlled at an allowable level and is expected to drop below 3% by 2021 Business personnel of the credit department is focusing on in-depth development, and the TransactionOffice has been implementing many measures to retain talents with salary, bonus, training and appointment regimes The size of loans has been improved and is always growing at a rate of over 15% per year The customer base is just large enough to serve as the foundation for large-scale development, with the core of strategic customers who have been attached for many years.
Achievements in business results: Since 2015, OCB in general and Nguyen Trai
Transaction Office, in particular, have made efforts to implement the development strategy to 2020, with the goal of rapid, comprehensive, and top quality development in the market, focusing on exploiting the opportunities with individual customers and building competitiveness Credit services always maintain high growth, shifting loan structure in the direction of reducing medium and long term loans, reducing concentration by sectors.
Performance indicators have proved that the recent five-year period is the
"Successful Breakthrough" year of Nguyen Trai Transaction Office with outstanding results The total value of all loans increased by an average of 20% per year, currently about to reach VND 100 billion Credit balance increased by 25%,bad debt became under control Nguyen Trai Transaction Office has successfully deployed the mass-market business product, consumer finance, making a great contribution to the Bank.
Limitations 28
Small market share and poor brand recognition: OCB has a top growth rate but is a relatively small commercial bank and has little name compared to other giants in the banking sector in Vietnam OCB only has branches and transaction offices in major cities and the developed economic regions of the country such as Ha Noi, Ho Chi Minh City, Thai Nguyen, Dak Lak, while smaller provinces and cities do not. OCB is listed as a low rank bank; it is always showed at other banks category in any banking figures or statistics According to a recent survey conducted by OCB, 95% of respondents did not know the existence of Orient Commercial Joint Stock Bank -
OCB, and 90% mistook it for Asia Commercial Joint Stock Bank – ACB; This shows OCB's weak brand recognition.
Overdue debt: At any random time, at Nguyen Trai Transaction Office, the number of late payment customers is always between 40 and 70 people, however, 30% of these people will pay the loan in a week after being reminded by the customer and 50% will pay in a month from the first reminder Since the outbreak of the COVID-
19 pandemic, which had a strong impact on economic activities, the amount of overdue debt has always been at a very high level and has increased.
The structural weaknesses in the system together with the increasing number of customers over the years have increased OCB's credit risk The combination of several interrelated factors, the rivalry of other commercial banking rivals has led to the loosening of regulations to have as many customers as possible, the level of risk verification The debt solvency is not high and the pressure on sales targets has gradually affected the system of Nguyen Trai Transaction Office.
Complicated procedures: A personal bank loan application is a collection of legal papers related to the borrowing activities of the borrower to hand over to the lender for consideration and settlement of loan conditions Each loan form has different requirements for a loan application Loan documents are the legal basis to prove the loan for both the borrower and the lender when a dispute occurs.
The time from submitting the application to the disbarment for a new customer who has never borrowed at OCB is quite a long time, usually around 20 to 40 days The procedure is also complicated, customers may have to go to the Transaction Office multiple times to complete the documents, especially for non-commercial customers who borrow at commercial banks The number of credit officers is small, usually four or five, while the number of customers is large, leading to delays Every time an asset is evaluated to be secured, the credit deparment has to submit a request to the higher level, which is time-consuming There are quite a few customers complaining about the hassle and time-consuming process of completing a complete credit profile.
Negative reviews from customers: On the online forums, OCB received many negative comments from customers, most of them complaining about the time to complete the procedures too long and complicated In addition, they also complained about the annoyance of being called to report on delay in repayment many times The customer support policy is also very fuzzy The bank does not have any regulations to publicly require or encourage staff to advise and support customers Failure to highlight public policies on anti-corruption, customer protection, taxation, transparency and accountability, and commitments.
RECOMMENDATIONS TO UPGRADE THE QUALITY OF
3.1 Solutions to increase brand awareness
Content marketing should be the focus of OCB's Digital Marketing campaigns. OCB can benefit from advertising if the marketing campaigns contain engaging and useful content Therefore, building content should be given priority and attention in increasing brand awareness The Bank need to create entertaining, useful, in-depth information that brings value to the community.
There are two types of engaging content that OCB should consider using: video and interactive content.
(i) Video content: These are highly interactive and engaging content With the proliferation of mobile devices, Internet, more people can create or watch videos when they have free time even while traveling Video content is attractive and engaging, giving the brand a distinct identify and personality, making the brand attract customers' attention and memory.
(ii) Interactive content: Advertising content is not just messages, business posts made and directed to customers OCB can interact with customers to build lasting relationships with customers Use interactive content as a tool to engage customers, enable businesses to co-create with them, and increase brand retention Interactive content can revolve around polls, contests, showing customers they have always been interested This action will make a mark on the OCB branding while increasing engagement with its audience and potential customers.
Increase public awareness using social networks:
Today, in order to support business operations of businesses more effectively, the introduction and widespread development of social networking sites such as Facebook, Instagram, YouTube, can help banks have more opportunities The association promotes the company's image, advertises its products and services to a large number of online customers widely and effectively Social media advertising plays an important role in Online Marketing, PR, as well as responding to customer queries quickly It can be said that social media advertising is one of the methods to help increase the effective interaction between businesses and customers.
(i) Facebook advertising has the ability to reach a large number of potential customers Facebook is a great choice for OCB to spread their brand by setting up an effective marketing strategy: Refine advertising based on location to reach customers, approach more deeply based on gender characteristics, interests, relationship status, workplace, education level and create content to best suit all types of customers and their borrowing needs.
(ii) Instagram is a social application that allows sharing images, with links to some other social networks such as Facebook, Twitter, Tumblr Ads on this application are following the trend of using images Photo is popular with young people. Manipulating on this social network is very simple and effective.
(iii) YouTube advertising is one of the forms of advertising on google, OCB ads will be displayed when customers use YouTube Ads can also appear in many different forms such as text, banner, video or right on the homepage of YouTube in different positions YouTube Ads is a channel that can reach customers on a large scale, increase awareness of OCB's products and services At the same time, it can create a brand mark quickly.
Build trust and loyal customer community:
In order to survive and develop, OCB needs to build long-term relationships with customers and partners Therefore, creating brand loyalty is a particularly important factor, making customers support the brand for a longer term, and even introduce to friends and families to know and choose the brand This is one of the methods to increase brand awareness indispensable for every business To build trust and create loyal customers, OCB can open groups, official pages for members This action will create a familiar environment and feeling for customers, helping to improve brand awareness OCB should always be ready to seize growth opportunities Through useful sharing and methods in the above, OCB can start building effective brand identity right now When customers know the brand and have a memory and share with everyone around, OCB will see a remarkable development.
3.2 Solutions to minimize overdue debts
In the coming time, in order to manage and prevent overdue debts and collect overdue debts at OCB, Nguyen Trai Transaction Office should implement the following key solutions:
First, analyze overdue debt by group Overdue debts classified by the NationalCredit Information Center (CIC) are divided into 5 groups such as group 1 qualified debts, group 2 outstanding debts, group 3 sub-standard debts, group 4 doubtful debts, group 5 customers with potential to lose capital Due to default or business difficulties, the bank needs to group customers in each area and periodically contact residential groups, ward police, neighbors, relatives to find out information For non-cooperating customers to pay debts, OCB need to initiate a lawsuit immediately for debtors from group 3 and up For cooperating customers, quickly find a way to completely handle card balance by many measures, instalment payment, ask relatives to support
Second, prevent credit risks Currently, the prevention and management of risks in loans operations is a very important issue Risks may occur such as customer specialists due to the pressure of indicators, so they do not carefully appraise or associate with units that accept to comply with regulations, customers forge sources of debt collection or repayment plans It is necessary to check customers using their checking accounts, early detect risks of arising risks from customers Periodically, make a list of late-due accounts, monitor and urge borrowers who have not transferred overdue debts Call to collect debts according to the list of risk control departments and send late-due debt alerts Conducting credit card appraisal for new customers based on general criteria such as real needs of customers, stable income at customers and local residents During the appraisal process, it is necessary to verify customer information, go to the agency, workplace, where income is generated, update information on nearby guest houses, goods, workplace Look up more customer information from official sources.
3.3 Solution to promote publicity and simplify loan procedures
The simplest and fastest thing OCB should do is increase the number of credit officers When there are more employees, it means fewer records are delayed, and they do not have to wait for the old application to be processed to make a new one. This can lead to faster completion times and better customer support.
Next is improving the loan process, renewing the loan process in the direction of simplifying loan procedures, reducing troubles for customers, ensuring loan safety and in compliance with the provisions of law Improve appraisal capacity to shorten loan settlement time, create conditions for customers to access credit capital.
Research and develop loan programs with reasonable interest rates, encourage the diversification of banking products and services to increase customers' access to capital Procedures for customers should be adjusted in the direction of minimizing and simplifying loan procedures, providing services on the basis of safety, meeting the requirements of risk management, processes, standardize, reduce transaction time For a credit fully secured by highly liquid assets, the time between the receipt of the application and notification of the credit decision to the customer should be as short as possible In order to minimize procedures for OCB customers, OCB should issue a streamlined form so that credit officers can complete their records as quickly as possible.
The main activity of a commercial bank is to receive deposits and then lend to customers in order to make a profit Lending services determine the success of a bank The most important business category of a bank is credit In particular, lending to individual customers is an activity that promises to bring high profits, so banks are interested in expanding and improving the quantity and quality of loans.
A bank with good credit quality will attract many customers and can grow in size and profit With a key role in providing loans to those in need, OCB should focus on supporting and facilitating potential customers to access its financial resources. Good service quality will make business operations more efficient and improve competitiveness in the market Since then, giving OCB a high position and affirming its reputation in the banking sector.