The definition of “Smart-banking service development”
Pearson (1992) defined development as “an improvement, qualitative, quantitative, or both, in the use of available resources’ He also claimed that development did not relate to a single viewpoint on social, political, or economic progress Instead, it is a hybrid word for a variety of tactics used to transform socioeconomic and environmental conditions from their existing to desired ones According to development economics, “Development” is a notion that encompasses both quantitative and qualitative changes; it also represents a broader range of reflections In the context of a market economy and the widespread international economic integration that affects all facets of socioeconomic life, commercial banks in particular, as well as other businesses in general, must continue to innovate their service models, strengthen their financial
Ngo Phuong Dung — 11191154 — Business English 61B independence, and expand their operational networks in order to survive and grow.
From a socioeconomic standpoint, the development of Smart Banking services has the effect of accelerating the flow of money, utilizing the enormous potential of capital for economic development, and at the same time assisting in raising people's living standards by reducing the use of cash, reducing costs and time for both banks and customers, enhancing the consumer environment, and creating a payment civilization.
Thus, it is possible to generalize that the growth of the Smart Banking service is characterized by an expansion of the scope of the service's delivery as well as a rise in the proportion of this revenue to the bank's overall revenue By managing risks and boosting business efficiency in accordance with the Bank's ongoing business objectives and plans, the quality of service delivery guarantees that customer demands are better met
Therefore, the development of Smart Banking service is the growth of quantity and improvement of service quality, providing an essential contribution to the development of the economy based on the idea and elements contributing to the development of the Economics major Customer satisfaction is a gauge of how successfully commercial banks have developed e-banking services in general and Smart Banking services in particular for each bank in order to increase the competitiveness of commercial banks The development of smart banking services serves as a link between commercial banks and other economic players, fostering the increase of operational efficiency and fostering sustainable development
Performance evaluation criteria of Smart-Banking service
Numerous authors have suggested that qualitative research, which has a long history in management studies, has the ability to offer in-depth understandings and contextual justifications for many of the difficulties facing contemporary management practice (Bryman, 2004; Cassell & Symon, 2006;
Flick, von Kardoff, & Steinke, 2004; Symon, Cassell, & Dickson, 2000) A variety of theoretical perspectives are covered by qualitative research, which may
Ngo Phuong Dung — 11191154 — Business English 61B also include a wide range of methodologies, methods, and research strategies To mention a few, these include interviews, case studies, oral histories, participant observations, ethnography, netnography, autoethnography, ethnography, grounded theory, and action research (Creswell, 1998; Denzin & Lincoln, 2011;
Strauss & Corbin, 1990) However, these techniques share certain crucial characteristics According to Creswell (1994), qualitative research 1s " an inquiry process of understanding a social or human problem based on building a complex, holistic picture, formed with words, reporting detailed views of informants, and conducted in a natural setting" (Creswell, 1994, pp 1-2) In order to reveal in descriptive terms the meanings that people attach to their experiences of the world, qualitative research, in the words of Ylmaz (2013), is "an emergent, inductive, interpretive and naturalistic approach to the study of people, cases, phenomena, social situations and processes in their natural settings in order to reveal in descriptive terms the meanings that people attach to their experiences of the world" (Ylmaz, 2013, p 312) Qualitative indicators are those that cannot be measured through specific numbers, but that does not mean that they are not important to the bank's evaluation Qualitative criteria are evaluated based on factors that can bring customers the best value such as customer satisfaction with service quality, customer's perception of banking services.
It takes a bank with a fairly high level of technological development to implement the Smart-Banking service If banks wish to offer higher-quality
Smart-Banking services, they must modernize their technical infrastructure Each bank selects a unique approach to create a Smart-Banking service based on its core banking technology Some banks develop this service in the direction of
SMS banking, while others have improved and created Smart-Banking services based on websites that are similar to Internet Banking services or can even use standalone applications that the banks themselves offer to customers.
Confidentiality is a very important requirement for Smart-banking service because it operates on the basis of applying the development of information technology to manage the bank's activities The more technology develops, the more Smart-banking services have the opportunity to improve the applicability of
Ngo Phuong Dung — 11191154 — Business English 61B products and services as well as enhance advantages and competitiveness in the economy However, the advancement of information technology also comes with certain drawbacks, such as the potential for hackers to target it and disrupt and incorrect consumer account activity by deleting, altering, or searching for information Therefore, Smart-banking services must make sure that the data of all transactions is saved safely, completely, and confidentially in order to sustain the bank's operations and enhance its reputation with consumers When assessing the operational excellence of smart financial services, this is one of the most crucial considerations.
Any product or service offered by the bank should be aimed to meet and satisfy the demands of consumers in order to be efficient In other words, there will be high, medium, or low levels of client satisfaction with goods and services. All of the clients who use BIDV's services have different ages, educational backgrounds, and needs; as a result, the bank's staff must advise clients on the most reasonable service, meet their needs with a welcoming, enthusiastic attitude, and provide advice that is specific, accurate, and easy to understand.
Bank employees must know how to respond swiftly, scientifically, and appropriately to instances when clients have issues with the service, concerns, or complaints.
Perfection in service quality provided
When it comes to service delivery, excellence means satisfying every customer's requirement so that they are happy using the bank's services The initial registration processes for utilizing the service, how simple it is to use, how long it takes to complete transactions using Smart-banking, and whether there are any issues with the service are all indicators of service quality Security concerns are effective while using a data transmission line or link When a financial service's features and utilities are continuously improved, delivered quickly and smoothly, have a user-friendly interface, and reduce transaction errors, it will be regarded excellently.
Ngo Phuong Dung — 11191154 — Business English 61B
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FINDINGS AND ANALYSIS 55c S151 1esee 30 4.1 Research results scsccseccssccsscesccosscsecesscssscsesesssesscsesssssessssssssesssssosssoesoeees 30 4.1.1 Participants’ DqACkg@FOHHỞ, Ác HH Hưng ệt 30 4.1.2 Customers’ experiences when using the dDJ - 555555 32 4.1.3 Participant’ opinions for improving the app’s quality
General assessment of the current situation of the activities on Smart-
First, BIDV has a modern Core Banking system with modules for deposits, loans, money transfers, trade finance, and large enterprises’ support This system has a robust information technology base and will be an advantageous
Ngo Phuong Dung — 11191154 — Business English 61B circumstance for the growth of e-banking services generally and Smart Banking services specifically Additionally, the reputation and brand of the BIDV branch in Ngoc Khanh have grown over time because BIDV has consistently enjoyed the respect and support of the community and the local government As a result, a favourable environment is created for the introduction and growth of Smart- banking services for customers, which is a strength for BIDV.
As a result of the Government's and the State Bank's policies, guidelines, and objectives guiding the development of the Smart Banking service, BIDV also enjoys strong backing from these institutions, making it easier to create this new kind of distribution channel In addition, joining the WTO has made it easier for financial institutions to work together Strategic partners have so provided BIDV with technical support, enabling it to continuously increase service quality and technological level In terms of funding medium- and long-term projects for state-owned businesses, BIDV is currently one of the strong banks With such a sizable customer base and commercial network, BIDV has a lot of potential to expand its Smart Banking offerings.
Last but not least, in addition to having the benefit of scale, BIDV also has a system of young, highly qualified employees They may more easily adapt to the most cutting-edge technical and technological advancements used in Smart
Banking services thanks to this Additionally, significant advances have been made in the training that closely align with the actual requirements.
In addition to the feedbacks of the application's shortcomings already mentioned above, the majority of people lack access to cutting-edge, underutilized technologies because of their low level of computer usage Many people have needs, yet they are unable to fill them This has also restricted the reach of banks' digital service delivery lines in major cities and urban areas, where specific outcomes in the socialization of information technology have been attained.
Firstly, it is unable to offer a fair and efficient customer policy due to the poor quality of Smart Banking services and the shortage of aggregate information
Ngo Phuong Dung — 11191154 — Business English 61B needed to conduct customer care operations Many customers are not aware that the Customer Support Service Center is available 24/7 by calling the toll-free number 19009247 to assist in promptly responding to customer inquiries and suggestions, which leaves them dissatisfied with the services provided by BIDV. Therefore, if the service quality has not improved, it will be challenging to charge for similar services in the future.
People's living standards are always rising along with economic growth, which raises their need for Smart Banking services As a result, Smart Banking services must continuously advance to fulfill client expectations Additionally, the size and lifestyle of the people have a big impact on how the Smart Banking service develops The circumstances for the development of digital banking goods and services are more favorable the higher the population level and vice versa Due to their lack of credentials, some people are still hesitant to use modern financial services Furthermore, the population's propensity for utilizing cash is a factor that restricts the growth of the Smart Banking service In terms of market share growth and financial resources, the battle between BIDV and other rival banks is becoming more varied and fierce This is one of the measurable factors that has an impact on how well users of the program use it.
In general, the findings and analysis results show that BIDV Ngoc Khanh branch has made great efforts to provide Smart Banking services This is a modest achievement, but it also opens a new business method, orienting business activities towards customers However, the development of these distribution channels is currently facing certain limitations and difficulties This is the driving force for BIDV Ngoc Khanh to develop Smart Banking service in the near future. For the purpose of building the image of BIDV becoming a leading modern bank in Vietnam with first-class convenient banking services, BIDV Ngoc Khanh branch needs to make more efforts in finding solutions to overcome limitations.
Ngo Phuong Dung — 11191154 — Business English 61B
In the fifth chapter, some recommendations for the research will be presented First, based on the analysis of the collected data in the previous chapter, the author will provide a quality development orientation for the operation of Smart-banking applications; then some suggestions on how to develop the features of the apps, improve safety and security and strengthen human resources will be mentioned.
5.1 Orientation to develop the quality of using Smart-banking service
In order to find the specific methods for developing the service, it is essential to define the orientation Respectively, they are to improving the brand name of BIDV Smart-banking service, taking approaches to develop the service system and keeping ways to modernize technology.
Since the beginning of 2014, BIDV has begun offering E-banking services which after that developed into Digital ones, and early results have been promising Customers with high incomes are the target market for BIDV, and possible clients include young people, students, and businesspeople This consumer group has easy access to information technology and several possibilities to get in touch with, learn about, and use new services offered by the bank In the future, the bank will try to work to get these customers accustomed to and using Digital Banking as a new distribution channel, while also stepping up marketing efforts to introduce this new kind of service to other potential clients.
Specifically, the following orientations will be proposed to improve the quality of using Smart-banking service First, BIDV needs to improve the brand name of BIDV Smart-banking service in the market with the development of diversified features, outstanding added value, perfect service quality, brand competitiveness and bank identity Because in the Digital age, a series of
Domestic and International banks in Vietnam have applied successfully the
Digital banking model; therefore, competition among banks is drastic In addition, it is necessary to take some measures to develop a diversified and multi-utility banking service system oriented to the needs of the economy on the
Ngo Phuong Dung — 11191154 — Business English 61B basis of improving the quality and efficiency of services In terms of traditional bank, continuing to modernize technology with information technology as the core is the driving force for modernizing business processes and governance of the bank, and at the same time creating the basis for the strong development of E- banking service in general and Smart Banking service in particular Next, the bank's human resources team needs to be trained with full capacity and expertise to promptly meet the needs of a modern bank to expand its operation scale and diversify services, thus being in line with the process of modernizing the banking system and keeping up with the process of international integration Last but not least, the prerequisite goal is to determine safety and security, because this is an important key to preventing loss and increasing the operational efficiency of the service, providing a competitive advantage The process of enhancing security must be a non-stop process, so that customers can rest assured to experience the service in the best way.
5.2 Recommendations for Smart-banking service development
Along with the process of international economic integration is the increase of competition in the banking service market, customers have more and more opportunities to choose products and services according to their needs Therefore, the level of consumer loyalty to the bank also changes in a decreasing trend In this part, recommendations such as: IT promotion, Frequent survey implementation, VIP customers’ priviledges application, Safety and security reinforcement, Customers’ eficient expectation increase and Staff’s quality training methods are mentionsed as suggestions for the service activities development.
Promoting information technology to improve the features of the app