LIST OF ABBREVIATIONS AGRI/AGRIBANK Vietnam Bank for Agriculture and Rural Development AGRI-BM Branch Vietnam Bank for Agriculture and Rural Development Binh Minh Branch ATM Automated Te
INTRODUCTION
Introduction
The Fourth Industrial Revolution (Industry 4.0) is transforming the banking sector in Vietnam, creating opportunities for commercial banks to automate processes and enhance transparency The Prime Minister's approval of a project to expand non-cash payments from 2021 to 2025 has accelerated the adoption of digital banking services Currently, around 70 commercial banks offer online banking, 40 provide mobile payment services, and over 60 have card services These platforms enable customers to conduct transactions such as money transfers and bill payments quickly and conveniently In response to the pandemic, online banking has become an essential solution for adhering to health guidelines while managing daily transactions Agribank is leading the charge by enhancing its payment systems and advancing technology infrastructure, focusing on e-banking projects and developing innovative financial products With over 200 banking products and services available, Agribank ensures customers can access financial services through a comprehensive multi-channel platform.
Commercial banks in Vietnam, particularly Agribank, are increasingly focusing on expanding internet banking services to enhance their product offerings and capture a larger market share By prioritizing customer psychology and developing customer-centric products, Agribank aims to grow its customer base and encourage account openings and utility service usage This approach not only optimizes the personal experience for customers but also fosters loyalty through positive emotional connections Recognizing the critical role of service improvement in this strategy, Agribank is committed to enhancing the quality of its e-banking services.
Background of the Study
The research was conducted at Agribank-Binh Minh Branch, part of Agribank's network in Kim Son and one of 37 branches in Ninh Binh province, Vietnam Established under Decree No 53-HDBT on March 26, 1988, Agribank is the Vietnam Bank for Agriculture and Rural Development, boasting nearly 2,300 branches nationwide and employing nearly 40,000 staff As of December 31, 2020, Agribank's total assets exceeded VND 1.57 million billion, with over 1.45 million billion VND in capital and outstanding loans to the economy surpassing 1.21 million billion VND, of which nearly 70% supported agricultural and rural development Since its establishment in 2014, Agribank-Binh Minh has rapidly grown and contributed significantly to the local economy.
Despite being located in a rural area, Agribank-Binh Minh branch has significantly enhanced its e-banking services, both in terms of quantity and quality, effectively catering to the diverse needs of customers throughout the region.
Agribank, a key state-owned commercial bank, plays a vital role in the banking system by effectively implementing national monetary policies and promoting credit policies for agricultural and rural development In response to the growing trend of technology adoption in banking transactions driven by the industrial revolution 4.0, Agribank has made significant strides in the e-banking sector, launching the Agribank E-Mobile Banking service on August 25, 2015 This multi-functional application offers various services, including money transfers, bill payments, and travel bookings, while also partnering with Western Union for remittances Despite these advancements, Agribank's e-banking services still face stiff competition from other banks like Vietcombank and Techcombank To improve its e-banking performance and better meet customer needs, the Agribank-Binh Minh branch is exploring practical solutions to enhance its online banking operations.
Objectives of the Study
The study highlights the growing significance of e-banking as a preferred payment method in everyday life It investigates the operational effectiveness of e-banking services at a specific branch and compares these services with those offered by other banks, aiming to identify strategies to enhance customer satisfaction.
In particular, there are five specific objectives of the thesis:
Firstly, introduce the profile of Agribank and AGRI-Binh Minh Branch
Secondly, identify the trend of using e-banking services in Vietnam from 2019 to 2021
Thirdly, evaluate the operation of the payment method by e-banking at the branch in terms of:
Next, compare the percentage of e-banking methods to other operations at the branch Additionally, appraise the competitiveness by comparing:
• Agribank-Binh Minh branch’s mobile banking policy fee with other banks’
• Agribank-Binh Minh branch’s total sales of using e-banking methods payment with a total operating turnover of the branch
Finally, propose solutions for the branch to deal with outstanding problems related to electronic banking services to improve the quality of this function.
Significance of the Study
The AGRI-Binh Minh Branch is conducting research to identify innovative techniques for enhancing its e-banking services Upon completion of the study, the branch will be able to implement these strategies in real-world e-banking operations, leading to improved service performance This enhancement is expected to increase the number of clients using e-banking services, ultimately boosting revenue and facilitating the expansion of facilities that support these payment operations.
Students at the Banking Academy and other universities seeking research on enhancing e-banking services can greatly benefit from this thesis It serves as a valuable resource, providing comprehensive data that enables a thorough exploration of their chosen topics.
Upon completing the research, the researcher will acquire valuable insights into internet and mobile banking operations at banks like Agribank, enhancing their understanding of transaction processes and the policies that govern these functions.
Scope and limitations of the Study
The study was conducted at the Agribank - Binh Minh branch from March to May
In 2022, the article utilizes various research methods to enhance the analysis of specific banking issues The analysis-synthesis method helps break down small problems into their constituent factors, while the comparative method allows for the examination of challenges faced by other banks, providing valuable insights Additionally, the data method contributes to the objectivity and credibility of the essay, ensuring a more convincing argument.
This study focuses on evaluating the performance of e-banking services at the AGRI-Binh Minh branch over a three-year period from 2019 to 2021 Due to its limited scope, the research does not encompass other banking services, concentrating solely on the exceptional e-banking offerings provided by AGRI.
This study acknowledges several limitations, primarily related to its geographical focus on a single Agribank branch in Ninh Binh province, which may not comprehensively represent the overall mobile banking services at Agribank Additionally, the research was conducted over a brief three-month period, resulting in findings that only capture a partial view of the online banking operations at the AGRI-Binh Minh branch.
Due to limited financial resources and the Covid-19 pandemic, the study could not access primary data from a direct survey of clients using online banking services at the branch Access to this data would have provided valuable insights for reviewing the branch's e-banking services Consequently, most of the information used in the study was derived from secondary data provided by the AGRI-Binh Minh branch.
Structure of the Study
The thesis is devided into 5 chapters as follows:
LITERATURE REVIEW
This chapter will discuss the definition, forms, and advantages of E-banking services, as well as the variables influencing E-Banking adoption by commercial banks and the economy
Electronic banking, which emerged in the 1990s in the United States, has evolved significantly over four decades, supported by extensive research and surveys globally This advancement has addressed many management and security challenges, offering enhanced convenience and satisfaction to customers worldwide In Vietnam, E-banking services were initiated in 1994 by former bank governor Mr Cao Sy Kiem, despite limited information technology resources, small investment capital, and stringent regulatory requirements.
The legal framework for electronic banking services has encountered numerous challenges since its inception In 2002, the introduction of the first ATM card by former Governor Le Duc Thuy and former General Director of VCB, Vu Viet Ngoan, marked a significant milestone Over the next 17 years, a variety of electronic banking products emerged, driving a cashless revolution and enhancing the speed and quality of services, particularly for individual customers Concurrently, researchers contributed valuable insights through numerous articles and studies, highlighting critical aspects of electronic banking quality for both domestic and global clients.
The Internet has significantly transformed the banking industry, as noted by Peter and Keng (2004) Banks that fail to fully leverage current technology risk falling behind their competitors To remain competitive in the Vietnamese banking sector, investing in the development of e-banking products and services is crucial Globally, most banks prioritize providing efficient, fast, and well-supported modern banking solutions.
To enhance integration, attract clients, and capitalize on commercial opportunities, banks are increasingly leveraging technological services such as Automatic Trading Machines (ATMs), Point of Sale (POS) systems, and mobile banking A study by K Batu Tunay et al (2015) indicates that more advanced internet banking practices in European countries correlate with stronger bank performance, though the development of less affluent nations remains uncertain Furthermore, research from Five Degree highlights that online banking transactions average $0.09, while mobile banking transactions cost $0.19, in stark contrast to the $4.00 cost of branch transactions In Vietnam, the majority of e-banking users are retail consumers, prompting banks to diversify and enhance their e-banking offerings to meet evolving consumer needs and technological advancements This growing focus on electronic financial services has attracted significant academic interest, as evidenced by Pham Thu Huong's doctoral thesis at Foreign Trade University.
The article explores the development of electronic banking services in Vietnam within the context of the global economy It provides a comprehensive overview of e-banking, detailing various services and a model that outlines the factors influencing consumer perceptions Furthermore, the author analyzes and compares the experiences of e-banking usage in several industrialized countries, including Malaysia and Singapore, highlighting key insights and lessons that can be applied to enhance e-banking in Vietnam.
The current state of e-banking services in Vietnam reveals both benefits and drawbacks, as highlighted in Ngo Thi Lien Huong's 2011 doctoral thesis on service diversification at commercial banks This study emphasizes the importance of diversification strategies for enhancing e-banking services and draws on international experiences to provide actionable recommendations for Vietnamese banks Notably, research by Truong Thi Ngoc Thuan and Luu Thanh Thao offers practical insights into improving banking services at local institutions, such as Vietcombank and Agribank, while addressing the impact of pricing management principles Although these studies cover various aspects of e-banking development, they collectively aim to tackle theoretical and practical challenges, identify constraints, and propose solutions for advancing e-banking services amidst the rise of information technology and global economic integration.
To enhance customer satisfaction and boost revenue, it is essential for commercial banks to develop their e-banking services Drawing insights from the experiences of other banks, the author has formulated tailored recommendations for Agribank, leveraging the gathered information to optimize their digital banking offerings.
E-banking services encompass a range of banking operations, products, and services delivered through electronic channels, including the Internet, telephone, and wireless networks, as defined by the State Bank of Vietnam.
E-banking, a modern banking service, allows customers to conduct transactions without visiting a physical bank counter, integrating traditional banking with information technology and telecommunications Defined by the State Bank of Vietnam, electronic banking encompasses activities performed through electronic distribution channels, enabling credit institutions to offer banking products and services efficiently These services are accessible online 24/7, independent of location, via various devices such as computers, ATMs, and mobile phones According to Mr Leszek Borysiewicz, Vice-Chancellor of the University of Cambridge, e-banking facilitates money transfers through electronic signals, eliminating the need for cash or paper documents.
11 institutions such as banks and credit institutions.”
In our country, many people often confuse internet banking (i-Banking) with electronic banking (e-Banking), though e-Banking encompasses a broader range of services While i-Banking specifically refers to banking services provided online, e-Banking includes services delivered via fax, telephone, email, and more, making i-Banking a subset of e-Banking The advantages of the internet, such as lower transaction costs and faster processing speeds, position i-Banking as the core of e-Banking E-banking services are defined as those offered by banks through advanced information technology platforms, enabling customers to conduct transactions remotely without needing to visit a physical bank counter.
Types of e-banking via the phone
Phone banking allows customers to access information 24/7 by entering a pre-specified code on their phone keypad This automated system provides immediate responses regarding interest rates, exchange rates, promotions, stock prices, and personal transaction histories Additionally, it ensures that customers receive the latest announcements and updates When customers request products, the system automatically sends faxes to them With regular updates to customer information, the number of registered accounts has seen significant growth.
• SMS Banking and Mobile Banking: Mobile Banking allows consumers to query information by sending SMS from a mobile phone using a predefined syntax, and also
The bank offers a range of notification services to customers, including account information inquiries, customer support queries, account fluctuation alerts, and timing notifications Additionally, wireless device apps (WAPs) facilitate seamless internet access for mobile phones, allowing users to utilize the bank's online services Many banks also provide mobile banking applications for smartphones, enabling customers to conduct various transactions such as wire transfers, bill payments for utilities like electricity and water, online shopping, and booking tickets for trains and planes.
A call center is a service that allows customers to reach out via phone to obtain information and assistance from bank staff The key advantage of a call center is its ability to provide flexible and comprehensive information to clients However, a notable drawback is the requirement for staff to be available around the clock, ensuring support is accessible 24/7.
Types of e-banking via the internet
Home Banking allows customers to conduct online transactions through a secure intranet created by the bank By using a computer connected to the bank's system, clients can easily perform various operations such as money transfers, checking transaction histories, and viewing currency and interest rates To access Home Banking, customers only need a modem and a landline, along with a registered phone number for secure access This service has gained popularity due to its speed, safety, and convenience, making banking more accessible for users.
Internet Banking is an innovative e-banking service that allows customers to conduct transactions like money transfers, payments, and receipts online This convenient solution enables users to perform banking activities from the comfort of their homes, eliminating the need for in-person visits to the bank With instant transaction processing, Internet Banking offers significant time savings, even allowing clients without bank accounts to engage in transactions on weekends and holidays.
RESEARCH METHODOLOGY
Locale of the Study
The research is being carried out at the AGRI-Binh Minh Branch, which is located at
Vu Duy Thanh Street in Binh Minh Town, Kim Son, Ninh Binh, serves as a focal point for research on the functionality of e-banking services at the local branch The Treasury Accounting Division plays a crucial role in this process, providing essential data and serving as a foundation for future studies.
Research Design
After completing a three-month internship at Agribank, the author conducted interviews with employees at the AGRI-BM branch to evaluate the effectiveness of electronic banking services and gather insights on their future The findings are informed by the author's observations during the internship Data collection through interviews and observations was chosen because the interviewees, who are involved in developing E-banking services, possess valuable knowledge of the strengths and challenges faced This approach allows the author to propose targeted solutions for the bank's improvement.
The study utilizes a quantitative research approach, presenting total sales, net profits, and market shares of the branch's e-banking services through numerical data, including tables, charts, and figures This method highlights the significant trends and performance metrics within the e-banking sector.
The research conducted by the AGRI-Binh Minh branch utilizes secondary data to analyze the relationship between e-banking activities and various measured subjects over time A descriptive study approach is employed, leveraging tools like Word and Excel to effectively present the findings These applications enhance the clarity and intuitiveness of the data, providing readers with a comprehensive understanding of the electronic banking services offered at the branch.
The study utilized data sourced directly from the AGRI-BM Branch's banking transaction office, including branch revenue statements, balance sheets, and annual reports from the trade finance department related to e-banking services To ensure relevance and accuracy, the research focused on data from 2019 to 2021, reflecting the current state of e-banking activities at the branch.
The vice director of the AGRI-BM Branch provided essential information to the researcher to support the study's inquiry Data collected from 2019 to 2021 included quantitative and proportional figures, which were fully compatible with the information submitted to Agribank's Head Office by the Treasury Accounting Division of AGRI-Binh Minh.
The analysis was conducted in stages to highlight the statistical differences over various time periods The research produced detailed tables and figures that focused on total sales, net profit, and the e-banking process at the AGRI-BM Branch Additionally, it is essential to maintain and compare the charge policy with that of other banks based on online research.
The study utilizes qualitative data types, specifically countable numbers and proportions, sourced from the business and economic sectors, typically reflected in corporate balance sheets and financial reports Key data sets collected in the research include essential financial metrics.
• Total sales of e-banking services at AGRIBANK-BM
• Net profits of e-banking operation at AGRIBANK-BM
• Table of e-banking fee at Agribank and other banks
• The total value of the transactions
This study evaluates the performance of E-banking services at AGRIBANK-Binh Minh Branch by analyzing total sales, net profits, and transaction counts It also assesses the contribution of each e-banking method to overall performance The research methodology follows established techniques from previous studies, with data access confirmed by the Vice Director of AGRIBANK-Binh Minh Branch All data was sourced directly from the Treasury Accounting Division, providing an accurate representation of the current e-banking operations at the branch.
Sub-Conclusion
The research has successfully compiled valuable resources for evaluating e-banking performance, aided by the dedicated collaboration of the branch's management All data collected is highly accurate, suitable for direct analysis or comparative assessments However, the lack of consumer feedback regarding service quality at Agribank-Binh Minh presents a challenge, leaving the evaluation of various customer perspectives on e-banking services at the branch unresolved.
This chapter outlines the research methods employed in the thesis, highlighting the key characteristics of the data used A quantitative approach was adopted, primarily relying on secondary data for the majority of assessments Additionally, the researcher shared insights regarding the study design and the sources of information utilized for exploration.
FINDINGS AND DISCUSSIONS
Current background of AGRIBANK-BINH MINH branch
The Vietnam Agricultural Development Bank (Agribank) was created on March
Established on February 26, 1988, by Decree No 53/HDBT, the Bank for Agriculture and Rural Development of Vietnam, commonly known as Agribank, underwent several name changes before its official renaming on November 15, 1996 In 2011, the State Bank of Vietnam authorized Agribank to transition from a state-owned enterprise to a one-member limited liability corporation Over its 34-year history, Agribank has solidified its status as one of Vietnam's leading commercial banks, receiving the First-class Labor Medal and numerous accolades for its contributions to agricultural economic development Ranked 446th among the world's 1,000 largest banks and consistently listed in the top 10 of VNR500, Agribank is a trusted partner for millions of customers and international financial institutions In 2021, Agribank improved its global credit rating and was recognized by The Asian Banker as 138th among the top 500 banks in the Asia Pacific region, showing a significant increase in operational quality Additionally, Brand Finance named Agribank the most valuable banking brand in Vietnam in its Global 500 rankings.
Figure 4.1 Top 500 Most Valuable Banking Brand Rankings (151-165)
Agribank is a prominent financial institution in Vietnam, offering a diverse range of services to a broad customer base nationwide With an extensive network of over 2,300 branches and transaction offices, Agribank effectively serves villages, communes, rural areas, borders, and islands, including 9 out of 13 island districts The institution employs around 40,000 officials and workers, ensuring widespread access to financial services across the country.
Figure 4.2 Agribank’s Structure of total assets from 2019 to 2021
As of the end of 2021, Agribank reported total assets of VND 1.68 million billion, with capital sources exceeding VND 1.58 million billion The bank's total outstanding loans to the economy surpassed VND 1.31 million billion, reflecting a significant 108% increase in total assets compared to previous periods.
In 2021, Agribank experienced a remarkable upward trend, with assets such as cash and due from the bank increasing nearly 150% compared to 2019, and investments surging over 700% compared to 2019 and doubling from 2020 Notably, Agribank allocates 70% of its outstanding loans to agriculture and rural areas, representing almost 40% of all loans in the agricultural and rural sectors within the entire credit system.
Agribank's financing initiatives play a crucial role in reducing poverty and enhancing agricultural sector reforms, contributing to the development of rural areas across the country The success of agriculture underscores its vital role as the backbone of the economy Additionally, financial service revenues have reached approximately VND.
Cash and due from banks 185411978 243398445 321920621
AGRIBANK’S Structure of total assets
Cash and due from banks
Investments securitiesLoans to customersOther assets
In 2020, E-Banking revenues reached 6900 billion, marking a 5.4% increase compared to 2019 and accounting for 17% of total bank service fees, a significant rise of 3.6 times since 2016 (Agribank Internal Report, 2020) Agribank pioneered the adoption of the World Bank-sponsored Internal Payment Customer Accounting System (IPCAS) in 2018, enabling all its branches and transaction offices nationwide to operate online This advancement has laid a solid foundation for Agribank's strategy to enhance its product and service offerings through E-Banking applications.
4.1.2 General introduction of Agribank - BM Branch
Agribank-Binh Minh Branch, established on January 1, 2014, as a split from Agribank-Kim Son Branch, serves 7 out of 25 communes and towns in Kim Son district Since its inception, the branch has experienced growth and achieved specific business objectives, despite facing challenges as a newly formed entity in a competitive geographical area While the branch has made significant efforts, it continues to encounter limitations in its operational results.
The figure below displays the structural model of the Agribank-BM Branch
Figure 4.3.Organization Structure of Agribank Binh Minh Branch
(Source: General Devisionof Agribank BM branch)
The organizational structure of the Branch, illustrated in Figure 4.3, consists of a Board of Directors and three Divisions, with the Board comprising one director and two vice directors managing daily operations Located in Binh Minh town, Kim Son, Ninh Binh, the office also features an ATM The General Division plays a vital role in shaping business direction, developing short- and long-term plans, promoting branch growth, expanding E-Banking services, and organizing branch events The Planning and Sales Department oversees capital balance management, information management related to development plans and economic data, risk management in capital sources and currency trading, and tracking company strategy goals while distributing plans to associated branches The Accounting and Treasury Department further supports these functions.
Business Planning Division General Division
The department oversees the organization of accounting activities related to economic operations at the Branch, ensuring accurate monitoring and management of internal expenditures, taxes, and fixed assets It guarantees that system data aligns with file data while maintaining the integrity and security of loan documents Additionally, the department is responsible for the synthesis and storage of accounting, bookkeeping, and finalization documents, as well as compliance with reporting regulations.
The Agribank Binh Minh branch offers a wide range of banking services, including capital mobilization, loans, investments, payment solutions, trade finance, guarantees, and E-Banking It raises capital through demand deposits, term deposits, and savings deposits in both VND and foreign currencies The branch also issues a limited number of treasury bills, notes, and bonds It provides various loan options, including short-, medium-, and long-term loans, consumer loans, and overdrafts, while investing in domestic and international capital and money markets Additionally, Agribank Binh Minh facilitates local and international transactions, remittance payments, and offers services such as card issuance, ATMs, POS systems, internet banking, mobile banking, and SMS services.
4.1.3 The local socio-economic situation affects the operation business of
Agribank-BM Branch is one of three branches serving the Kim Son district, a coastal area in the southernmost part of Ninh Binh province Covering an area of 215.71 km², Kim Son had a population of 182,942 as of 2019, resulting in a population density of 848 people per km².
• To the east, it borders Nghia Hung district, Nam Dinh province across the Day river
• The West borders Yen Mo District, Ninh Binh province and Nga Son district, Thanh Hoa province
• The South borders the East Sea with a coastline of nearly 18 km (in Kim Dong, Kim Trung, Kim Hai communes)
• The North borders Yen Khanh district, Ninh Binh province
Kim Son district comprises 25 administrative units, featuring 2 towns and 23 communes The Agribank-Binh Minh branch primarily serves customers in the southern region of Kim Son, which includes Binh Minh town and seven communes: Con Thoi, Kim Dong, Kim Hai, Kim My, Kim Tan, Kim Trung, and Van Hai.
Kim Son district's economy is bolstered by three key strengths: first, its agricultural sector significantly contributes to Ninh Binh province, producing nearly one-third of its total rice output; second, the traditional handicraft industry excels in creating high-value sedge mats; and third, the Kim Son marine economic zone is being developed into a vibrant hub for fisheries and tourism The southern communes, particularly Binh Minh town, leverage their coastal location for fishing and aquaculture, specializing in shrimp, crabs, and oysters In 2017, the district's total aquaculture area reached 2,916 hectares, with coastal aquaculture covering 2,064 hectares and Con Noi accounting for 210 hectares The production of black tiger shrimp, sea crabs, and clams has seen significant increases, contributing to an impressive agricultural growth rate of 90%, surpassing the target by 2.9%.
By 2020, the aquaculture area in Kim Son district expanded to 3,733 hectares, highlighting its prominence in sedge farming, which remains vital to the local economy The region's handicraft enterprises boast an annual export value of $5 to $10 million Additionally, the southern part of Kim Son features a coastal area of nearly 6,000 hectares, designated as a UNESCO world biosphere reserve, offering significant potential for both fisheries and tourism.
In recent years, the Kim Son district, especially the southern region, has experienced significant advancements across various socio-economic sectors.
The reality of e-banking services at AGRIBANK-BINH MINH
Since its inception in 2014, the Binh Minh branch has greatly expanded its E-Banking services, encompassing Internet Banking, Mobile Banking, and ATMs, as reported internally by Agribank-Binh Minh branch.
Agribank-BM branch offers a comprehensive Internet banking service, allowing clients to access a variety of online financial and non-financial services Customers can easily view their account information and perform monetary transactions, including batch bank transfers and online account settlements Additionally, users can conveniently pay bills for utilities, tuition, telecommunications, and more Upon enrollment, consumers receive a login and instructions for password management; however, accounts will be automatically locked after five incorrect password attempts to ensure security.
Another well-known E-Banking services provided by the Agribank BM branch is mobile banking, which includes Agribank-Mobile Banking, SMS Banking, and
Bankplus offers customers enhanced mobile banking capabilities through the Agribank E-Mobile Banking app, enabling them to perform essential financial transactions, access banking information, and manage investments anytime and anywhere Users can conveniently book flights, pay for e-commerce services via QR codes, purchase phone cards, and top up e-wallets directly from their smartphones The SMS banking service allows for bill payments, phone recharges, and money transfers between Agribank accounts through text Additionally, Agribank Bankplus provides Viettel subscribers with the option to pay their Viettel phone bills To ensure security, mobile banking users must verify transactions using SMS OTP, login passwords, and fingerprint biometric authentication, depending on the transaction limit for financial services.
The ATM service at Agribank BM branch is a key feature of its E-Banking offerings, established early on to enhance customer convenience These ATMs allow users to withdraw cash, check account balances, and transfer funds securely by inserting their debit card and entering a Personal Identification Number (PIN) The ATMs at the branch operate smoothly, with transaction fees making up a significant portion of the overall sales.
Agribank Binh Minh Branch has expanded its offerings by introducing a range of E-Banking services for individual consumers, including Agribank MPlus, Momo e-wallet, Shopeepay, and Viettelpay These multifunctional E-Banking services provide significant benefits to a diverse clientele, enhancing the overall banking experience Additionally, it's important to consider the associated transaction fees when utilizing these services.
The Agribank-Binh Minh branch has completely adhered to the system's goals and rules, including the transaction costs of E-Banking services, as shown in the table
39 below Below is just a list of fees for popular services of the branch, other transactions have occurred but the amount is insignificant
Table 4.1 Cost of Agribank’s e-banking activities
Transfer external(other bank account in VN)
By the message fee charged by the carrier
Table 4.1 reveals that individual customers incur a monthly fee of 11,000 VND for mobile banking services, while organizations are charged 50,000 VND per month Additionally, individuals pay an annual fee of 50,000 VND for internet banking, compared to 200,000 VND for organizations From June 1, 2021, internet banking users enjoy free internal money transfers, and mobile banking users have been exempt from fees since May 17, 2021 For external money transfers, organizations face a fee of 0.015% of the transaction value, with a minimum charge of 6,000 VND and a maximum of 1,000,000 VND per transaction, while individuals benefit from free external transfers Domestic money transfers via ATM cost customers 3,300 VND per transaction, whereas external transfers are priced at 8,800 VND.
4.2.2 Achievements of e-banking services of AGRIBANK- Binh Minh branch a Number of E-Banking Customers
The rapid advancement of high technology and telecommunications has transformed access to modern banking products and services, making them familiar to customers This shift has significantly altered spending, payment, and transaction behaviors at banks.
Figure 4.4 The number of customers using Agribank-BM’s cards from 2019 to 2021
(Source: Internal report of Agribank-BM 2019-2021)
From 2019 to 2021, Agribank Binh Minh regional branch effectively adapted to consumer trends and preferences, leading to a significant increase in e-banking service registrations Over the past three years, the number of customers utilizing ATM cards rose sharply, with registrations reaching 1,783 in 2019, 2,288 in 2020, and 3,025 in 2021 This growth reflects an increase of 505 customers in 2020 and 737 customers in 2021, highlighting the branch's successful promotion of tailored banking products and services.
From 2016 to 2021, despite the significant downturn in various economic sectors due to the Covid-19 pandemic, the number of customers opening ATM cards surged by over 24% compared to 2020, reflecting a consistent growth rate of over 20% in customer usage during this period.
The number of ATM cards
Figure 4.5 The number of customers using Agribank-BM’s e-banking services from
(Source: Internal report of Agribank-BM 2019-2021)
The adoption of e-banking services has seen significant growth, with 2,156 consumers registering in 2020, marking a 12.6% increase from 2019 This trend continued into 2021, driven by Agribank's strategy to lower transaction costs and advancements from the 4.0 technological revolution As a result, despite the challenges posed by two pandemics, the branch welcomed 3,168 new e-banking clients in 2021, reflecting a remarkable 46.9% surge from the previous year, adding an impressive 1,012 new customers.
In January 2022, data indicated a significant rise in card services revenues from 2019 to 2020, with sales exceeding 310 million VND in 2021 Figure 4.6 illustrates the sales generated by ATM and other card operations during this period.
The number of customers registers to use e- banking service
Figure 4.6 Card services Sales from 2019 to 2021 (million VND)
(Source: Internal report of Agribank-BM 2019-2021)
From 2019 to 2021, the card service at Agribank-BM branch demonstrated impressive growth, with revenue figures of VND 205.9 million, VND 294 million, and VND 310 million, respectively Notably, in 2021, the branch achieved 103% of its revenue target despite the economic challenges posed by the Covid-19 pandemic, highlighting the resilience of e-banking services The government's cashless initiative from 2016 to 2021 also contributed positively, particularly in this agricultural district where economic activities rely on cultivation and animal husbandry The community's gradual shift towards modern payment methods reflects the impact of Industry 4.0 and the success of targeted e-banking marketing strategies at Agribank-BM branch.
Figure 4.7 E-Banking Services Sales from 2019 to 2021 (million VND)
(Source: Internal report of Agribank-BM 2019-2021)
E-banking service income experienced remarkable growth, with an increase of over 40% from 2019 to 2021 Specifically, revenue surged by 74.8% between 2019 and 2020, followed by a 40.1% rise from 2020 to 2021 Although there was a decline in service revenue in 2021 due to the implementation of fee reduction regulations for certain Agribank services, overall e-banking activities continued to thrive, indicating a strong potential for significant contributions to the branch's future profits.
4.2.3 The importance of electronic banking method at AGRIBANK-Binh Minh
E-banking services play a crucial role in enhancing branch operations, significantly benefiting the business performance of Agribank-Binh Minh branch By leveraging a variety of e-banking solutions, the branch can effectively increase the sales of its banking services.
The first significant benefit of E-Banking services is the expansion of banking service sales The majority of the authorities in the open meeting agreed that E-Banking had
45 had a significant influence on boosting the Agribank-Binh Minh Banking Services in terms of sales Figure 4.8 below illustrates it further
Figure 4.8 E-Banking and Banking Services Sales from 2019 to 2021 (million VND)
(Source: Internal report of Agribank-BM 2019-2021)
Between 2019 and 2021, e-banking activities significantly contributed to the branch's revenue, with total service revenue increasing from VND 2,048 million in 2019 to VND 2,771 million in 2021 E-banking and card services accounted for approximately 25% of total revenue in 2019, rising to about 37% by 2021, surpassing the initial targets Despite a challenging economic landscape in 2021 and Agribank's initiative to reduce transaction fees for various services, e-banking services flourished E-banking revenue jumped from VND 290 million in 2019 to VND 507 million in 2020, and then nearly doubled to VND 710 million in 2021 This growth highlights the increasing popularity of e-banking, presenting both challenges and opportunities for Agribank-BM to expand its customer base and achieve greater success in the future.
One of the important advantages of E-Banking is the expansion of the Agribank Binh Minh branch's EBIT throughout the three-year period (2019-2021), as shown in figure 4.9 below
Figure 4.9 EBIT of Agribank Binh Minh Branch from 2019 to 2021 (million VND)
(Source: Internal report of Agribank-BM 2019-2021)
CONCLUSION AND RECOMMENDATION
Summary of the Findings
Chapter 4 has given in-depth information regarding the Agribank-Binh Minh branch's e-banking services We can see that e-banking method is increasing in both quantity and quality, providing profits as well as convenience to both banks and clients In addition, the present backdrop of E-Banking for the Agribank Binh Minh branch, as well as the key problems, will be identified and fully evaluated before giving ideas for enhancing the branch's electronic banking services The following are the key results of this article To begin, one of the advantages of e-banking services is that it has had a favorable influence on the commercial performance of the Agribank-BM branch During the years 2019-2021, the usage of e-banking services increased significantly in terms of both clients and sales Mobile banking and ATM services, in particular, have been identified as possible branch growth opportunities Additionally, e-banking sales surged and generated considerable achievements, boosting banking service sales and branch profitability Agribank-BM branch has developed the proper circumstances for e-banking, such as developing functional divisions, investing in information technology systems, and providing a variety of services, according to the research There was no question that the Agribank Binh Minh branch's performance, which was regarded as one of the branch's achievements, was aided by the e-banking services Secondly, one of the most important conclusions of the study report is the difficulties encountered by the branch's E-Banking services during the time The study has identified various barriers, including the lack of human resources, ineffective E- Banking, shortage of equipment, and severe competition among banks Due to the lack of professionals in the field of E-Banking, customer service was amateurish, with bad consequences for E-Banking Furthermore, the physical infrastructure of the Agribank
The Binh Minh branch has struggled to fulfill its e-banking service promises, facing significant challenges Key findings from the study highlighted several obstacles, such as insufficient human resources, inadequate e-banking knowledge, and fierce competition among banks This lack of expertise has led to unprofessional customer service, negatively impacting the overall e-banking experience Additionally, the physical infrastructure of Agribank Binh Minh branch has not met the expectations necessary for effective e-banking services.
Conclusion
The shift towards a cashless society is being closely monitored by global commercial banks, with electronic banking services becoming integral to financial systems and the economy In Vietnam, the Prime Minister initiated a project to promote non-cash payments from 2016 to 2020, aiming to enhance payment methods in both urban and rural areas This initiative will continue through 2025 under Decision No 1813/QD-TTG, with ambitious goals: by the end of 2025, the value of non-cash payments is expected to reach 25 times the GDP, e-commerce non-cash transactions will account for 50%, and 80% of individuals aged 15 and older will have bank accounts or accounts with authorized organizations Additionally, public services will be accessible online to meet the needs of citizens anytime and anywhere, utilizing various media However, Vietnam still lags behind global trends in this transformation.
The advancement of science and technology necessitates that commercial banks adopt E-Banking to enhance their services This study explores the functions and benefits of E-Banking, highlighting its impact on business operations The Bank for Agriculture and Rural Development of Vietnam has effectively aligned with government guidelines and Central Bank directives, establishing itself as a leading financial institution in the country and building a strong foundation to attract a significant customer base.
Agribank Binh Minh Branch prioritizes customer satisfaction by offering quality products that cater to diverse preferences The branch delivers e-banking services that meet high international standards through modern technology Committed to excellence, Agribank Binh Minh adheres to the guidelines set by the State Bank, the government, and Agribank headquarters in all aspects of branch development, especially in enhancing e-banking services.
In the era of the 4.0 industrial revolution, Agribank-BM has made significant strides in developing e-banking services, despite challenges related to geographical and economic factors From 2019 to 2021, the rapid growth of e-banking services at the branch has not only increased customer accessibility but also contributed to a promising revenue stream While the service revenue saw notable growth in 2021, challenges such as inadequate human resources and incomplete infrastructure continue to hinder further development This article provides an in-depth analysis of the current state of e-banking services at Agribank - Binh Minh branch, highlighting achievements, limitations, and underlying causes The findings serve as a foundation for proposing solutions to enhance e-banking services in the future.
Recommendations
To address the issues raised in 4.2.4, the Agribank Binh Minh branch, the Agribank Vietnam, the State Bank of Vietnam, and the government should consider the following alternatives
An analysis of the current quality of e-banking services at Agribank Binh Minh reveals several limitations and their underlying causes To enhance the quality of these services and improve customer satisfaction, the author proposes targeted solutions for the Agribank Binh Minh branch.
Agribank Binh Minh should regularly survey customer opinions to identify service and product needs, as well as the strengths and weaknesses of existing offerings This feedback will help the branch enhance its products and diversify its e-banking services to better meet customer demands By analyzing competitors' products, Agribank can identify gaps and make necessary adjustments to align with market trends The focus should be on service development and increasing the number of registered services per customer while also prioritizing strategies to attract new clients Marketing efforts should be diverse, utilizing leaflets, social media, and timely communication about programs and services Additionally, targeting high school and university tuition fee collections, as well as promoting payroll accounts for SMEs, will expand the customer base Finally, educating current e-banking users about underutilized features can boost transaction volumes and enhance customer satisfaction.
To enhance the quality of human resources, organizations should align their recruitment and selection processes with a strategic human resource development plan that reflects the appropriate size, structure, and business strategy of the branch Implementing training programs focused on essential skills—such as computer proficiency, effective communication, and efficient problem-solving—will empower staff to manage customer inquiries and complaints effectively Additionally, providing foundational knowledge of e-banking is crucial for staff responsible for customer support in affiliated branches.
To effectively prevent malware, it is essential for IT and human resources to ensure that all computers on the network are equipped with reputable and widely used advanced protection software capable of automatically detecting and removing viruses Additionally, conducting staff training sessions will empower bank employees to recommend tailored product packages to customers, enhancing their service experience By providing customers with suitable options, their engagement with the services will increase Furthermore, branches should utilize social media platforms to raise awareness and promote products, while staff can communicate essential information and alert customers about potential fraud, thereby increasing customer vigilance and simultaneously marketing the company's offerings.
Customer information needs significantly impact banks' ability to satisfy their clients As the economy evolves and labor division becomes more pronounced, coupled with rising education levels and the widespread use of modern technology, customers' information requirements have diversified To effectively address these needs during banking transactions, it is essential to filter and present relevant information prominently Additionally, this information must be regularly updated and supplemented to ensure timeliness and relevance.
Solutions to improve service capacity
At Agribank Binh Minh, the service capacity is hindered by challenges such as the need for accurate and rapid execution of requests, along with unstable network connections that can lead to transaction errors These issues often require significant financial resources for maintenance.
Leadership must effectively communicate the ideology and individual responsibilities regarding e-banking products to ministries and employees Additionally, it is essential to enhance online customer services, enabling customers to interact with employees in real-time rather than relying on emails and waiting for responses.
To enhance customer satisfaction in electronic banking services, it is essential to establish a dedicated department for managing complaints and inquiries This department should ensure timely communication and information dissemination to customers facing issues Additionally, implementing standards for processing customer feedback will further improve service quality and responsiveness.
- Need to improve the level of staff to be able to answer questions as well as promptly handle network and program problems for customers in the fastest time possible
Solutions to improve tangible capabilities
Agribank Binh Minh faces limitations in facilities and equipment due to its unranked status in the locality, resulting in lower costs for infrastructure maintenance and repair To address this issue, it is essential to consider strategic improvements and investments in the branch's resources.
- Proposing to leaders about the shortage of materials for e-banking activities, including increasing the number of ATMs in the locality
Upgrading the information technology infrastructure is essential for enhancing banking services Customers have reported issues such as service interruptions with E-Mobile Banking and difficulties completing transactions on the Internet Banking system By prioritizing improvements in service lines and IT infrastructure, Agribank can effectively address these challenges and enhance the overall customer experience.
- Upgrading the internet safety for the bank's basic network; disseminating knowledge about network safety to customers via SMS banking or Mobile Banking to avoid unfortunate incidents
To enhance service quality at its branches and transaction offices, the State Bank must implement effective solutions and actions alongside its macro-scale improvements.
To enhance e-services operations, it is essential to implement knowledge-replenishing classes and level-based training courses for branch staff The Head Office should initiate projects aimed at improving staff communication skills to boost productivity and responsiveness A focus on recruiting young, skilled staff with strong academic backgrounds and excellent soft skills—such as communication, behavior, listening, and customer consulting—is crucial These employees must not only address current customer needs but also identify and stimulate future product demands to facilitate effective consulting and cross-selling opportunities.
Transaction fees and interest rates are crucial factors that significantly impact customer benefits in banking transactions Agribank should consistently benchmark its fee structures against those of other commercial banks In the current landscape, where e-banking services are prevalent, Agribank can explore strategies to reduce service fees to enhance competitiveness, such as implementing annual fee waivers for online and mobile banking services or providing targeted incentives for new customers Additionally, Agribank Headquarters should guide its branches to develop product packages with competitive pricing tailored to meet the diverse needs of local customers.
The Marketing Department is tasked with creating effective promotional strategies for both individual and corporate clients, while also enhancing product and service introductions at transaction counters Additionally, they are required to innovate and expand high-quality e-banking solutions to meet customer needs.
To effectively enhance offerings, it is essential to analyze competitor banks' products to identify gaps in your own services By doing so, you can introduce new utilities, functions, and products that align with market demands and cater to the evolving needs of consumers.