Developing mobile banking service at BIDV – South Hanoi agency

PROFESSIONAL BACHELOR OF BAKING AND FINANCE COURSE 2012-2015 BIDV Bank for Investment and Development of Vietnam – South Hanoi agency 1281 Giai Phong Road – Hoang Mai District – Hanoi City FINAL REPORT Developing mobile banking service at BIDV – South Hanoi agency Name: Nguyen Viet Duc Class: NTA7 University tutor : Mr. Nguyen Hoang i Mr.La Tien Dung Developing mobile banking service at BIDV – South Hanoi agency ACKNOWLEDGMENTS It is a great pleasure to thank everyone who helped me write my internship report successfully. First of all, I am greatly obliged to thank and express my gratitude to the teachers at International Education Department of Vietnam Commercial University and at Université de Rouen for their enthusiasm and support during my bachelor education. I owe sincere and earnest thankfulness to Mr Chung and Mr namguides and advise in helping me to complete this internship report. In particular, I am truly indebted and thankful Mr Chung who have directly guided and given me advices during my internship. Without their assistance, I would not able to complete this internship report successfully. Finally, I am obliged to many of my family who supported me unlimitedly during my education and internship. ii Table of contents ACKNOWLEDGMENTS ii List of tables v List of figures v INTRODUCTION 1 I – Introducing to BIDV 2 1.1. Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) 2 1.1.1 Bank profile 2 1.1.2. History 2 1.1.3. Main activities 3 1.1.4. Key indicators 3 1.1.5. Business reputation of BIDV 4 1.2. BIDV Southern Hanoi Agency 4 1.2.1. Overview 5 1.2.2. Customer Service Center at BIDV - South Hanoi Agency 6 1.2.3. Background of the internship 6 II. My internship at BIDV – South Hanoi agency 9 2.1. Studying the mobile banking service – its advantages and inconvenient 9 2.1.1. Background 9 2.1.2. Implementation 9 2.1.3. Results obtained 9 2.1.4. Difficulties and solutions 11 2.2. Analyzing market demand about mobile banking service 12 2.2.1. Background 12 2.2.2. Implementation 12 2.2.3. Results obtained 12 2.2.4. Difficulties and solutions 13 2.3. Guiding for service inscription and for using mobile banking service at BIDV – South Hanoi agency 13 2.3.1. Background 13 2.3.2. Implementation 13 iii 2.3.3. Results obtained 14 2.3.4. Difficulties and solutions 14 2.4. Implementing a survey on customers’ satisfaction about BIDV’s mobile banking service 14 2.4.1. Background 14 2.4.2. Implementation 15 2.4.3. Results obtained 15 2.4.4. Difficulties and Solutions 15 2.5. Analyzing the performance of mobile banking service of BIDV – South Hanoi agency 15 2.5.1. Background 15 2.5.2. Implementation 16 2.5.3. Results obtained 16 2.5.4. Difficulties and Solutions 20 2.6. Assessing and proposing solutions for promoting mobile banking service at BIDV – South Hanoi agency 20 2.6.1. Information technology 20 2.6.2. Professionalism 20 2.6.3. Communication 21 III. General internship assessment 22 3.1. Advantages and disadvantages of internship 22 3.1.1. Advantages 22 3.1.2. Disadvantages 22 3.2. Contributions 22 3.2.1. For BIDV - South Hanoi Agency 22 3.2.2. For myself 23 Conclusion 25 APPENDIX 26 iv List of tables Table 1: Banking network and employees of BIDV 4 Table 2: Business performance of BIDV - South Hanoi Agency 5 Table 3: Internship planning 7 Table 4: Main products and services of Mobile Banking 10 Table 5: The number of customers at the end year of 2014 16 Table 6: Some transaction indicators on Retail, Mobile and Corporate 18 Table 7: Customers’ Satisfaction about BIDV’s Mobile services 19 List of figures Figure 1: Total assets and loans to customers (2010 – 2014) 3 Figure 2: Profit after tax period 2010 – 2014 4 Figure 3: Organizational structure of BIDV - South Hanoi Agency 5 Figure 4: Proportion accumulated of mobile banking at BIDV – South Hanoi Agency 7 Figure 5: Registration procedure of BIDV’s Mobile services for personal customers 11 Figure 6: The proportion of smartphone users in January, 2014 12 Figure 7: Frequency having troubles when using BIDV’s Mobile Applications 19 v INTRODUCTION Commercial banks look continuously for satisfying customers with useful financial products and services. They receive and hold deposits, pay money according to customer’s instructions, lend money, offer investment advice, exchange foreign currencies, and so on. All services that commercial banks provide have been beneficial for individuals, enterprises and the economy in general. Facing to increasingly competition, one of their crucial trends is to apply modern technology to develop their products and services, bringing customers the greatest satisfaction and convenience. Recent years saw significant improvements in electronic banking in Vietnam with Internet Banking and Mobile Banking being most popular with residents. Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), one of the largest banks in Vietnam, has supplied this service for years. During the internship at BIDV South Hanoi Agency, it is acknowledged that mobile banking service achieved some positive results in term of customers’ satisfaction. However, its financial performance was not as impressive as it should have been. That is the main reason that explains my choice of the topic “Developing mobile banking service at BIDV – South Hanoi agency” for my internship report. 1 I – Introducing to BIDV 1.1. Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) As a long-established bank, BIDV has funded many investment projects and key economic areas of the country. Joint Stock CommercialBank for Investment and Development of Vietnam (BIDV) has also built the largest enterprise customers, while confirming the implementation of prestigous items, objectives, economic programs and social security of the country. 1.1.1 Bank profile Full name: Ngân hàng TMCP Đầu tư và Phát triển Việt Nam International Transaction Name: Joint Stock Commercial Bank for Investment and Development of Vietnam Abbreviated name: BIDV Address: BIDV Tower, 35 Hang Voi Street, Hoan Kiem District, Hanoi City Type: Commercial Bank Founded: 04/26/1957 Charter capital: 28.112.026.440.000 VND 1.1.2. History On 26 th April 1957, the bank was established under the name Bank for Construction of Vietnam. The bank had several crucial contributions to controlling basic construction capital, lowering cost price and keeping capital of the Statement. During the next 24 years, Bank for Construction of Vietnam not only supplied money for defense projects in the wartime but also provided capital for industrial and agricultural areas, transportation and public welfare. The year 1981 witnessed the birth of Bank for Investment and Construction of Vietnam, playing an important role in improving measures of supplying and managing basic investment, improving role of credits in matching with the increasing capital demands. In the stage from 1981 – 1990, the contribution of the bank is much greater than before in terms of total funding allocation, total capital for loans and fixed assets that formed in the economy. In the following 20 years, the bank operated under the name Bank for Investment and Development of Vietnam with the first 10 years of the period being called “Innovation” and the later 12 years being called “Integration”. On 27th April, 2012, BIDV was converted into Joint Stock Commercial Bank for Investment and Development of Vietnam whose business operations were inherited from Bank for Investment and Development of Vietnam. 2 1.1.3. Main activities • Bank: BIDV functions as a leading experienced bank of finance services, brokerage, loans, modern and convenient banking products. • Insurance: BIDV provides products for non-life insurance designed to match the overall package to customers of BIDV. • Stock: BIDV provides a wide range of brokerage services, investment and investment consultant with the ability of quickly developing a system of agents to receive orders nationwide. • Financial investments: BIDV includes financial leasing, security trading and capital contribution with the aim at establishing investment companies to the project; It also plays a leading role in coordinating key projects of the country. 1.1.4. Key indicators Figure 1: Total assets and loans to customers (2010 – 2014) Source: BIDV’s annual reports 2014 The figure 1 presents that there has been a continuously increasing trend in both total assets and loans to customers. The size of BIDV almost doubled from 2010 to 2014 in term of total assets and the amount of money borrowed go up by 75%, from 254.192 billion VND to 445.693 billion VND. The percentages of loans to customers per total assets were high, showing that BIDV were focusing on its main banking activity which is lending. The profit evolution that BIDV made during period 2010 – 2014 is shown in the figure 2. The profit after tax every year during this period was above 3.000 billion VND with a slight decrease from 2010 to 2011 and rises in the following years. 3 Figure 2: Profit after tax period 2010 – 2014 Source: BIDV’s annual reports 2014 Table 1 gives information about BIDV’s nationwide banking network and the substantial amount of employees. BIDV has created more than 16 thousand of jobs for the country along with the birth of many agencies and transaction offices each year. The total number of agencies and transaction offices tended to go up while opposite trend was seen in the quantity of savings counters. Table 1: Banking network and employees of BIDV 2010 2011 2012 2013 Employees 16,47 5 17,863 18,546 18,231 Agencies 112 118 117 126 Transaction offices 349 376 432 503 Savings counters 130 150 113 95 Source: BIDV’s annual reports 2014 1.1.5. Business reputation of BIDV BIDV is the choice, the trust for economic organizations, the leading enterprises of both countries and individuals in accessing the financial and banking services. BIDV has been known and recognized as one of the largest banking brands in Vietnam and certified as a trademark in the U.S. and also rewarded annually from organizations, financial institutions at home country and abroad. BIDV is always the pride of generations of staff and financial and banking sector in 55 years with traditional professional development investment for the country. 1.2. BIDV Southern Hanoi Agency 4 1.2.1. Overview Full name: Bank for Investment and Development of Vietnam – South Hanoi agency Abbreviated name: BIDV - South Hanoi Agency Address: 1281 Giai Phong Road – Hoang Mai District – Hanoi City Telephone: 043 861 70 42 Figure 3: Organizational structure of BIDV - South Hanoi Agency Source: BIDV - South Hanoi Agency BIDV South Hanoi Agency was once a second – tier agency operating under the name BIDV Thanh Tri Agency. The agency’s name was changed once again into Bank for Investment and Construction of Vietnam Thanh Tri Agency in 1986 and in charge of funding construction projects in three districts: Hai Ba Trung, Dong Da and Thanh Tri. On 1 st November, 2005, the agency was upgraded and ranked as first – tier agency with a current name of BIDV South Hanoi Agency. Table 2 presents the data of financial performance of the agency. There was an upward trend in most items from 2012 to 2014. In detail, total fund mobilized increased from 2,038 billion VND in 2012 to 3,500 billion VND in 2014 and the total loans increased about 150% after two years. Table 2: Business performance of BIDV - South Hanoi Agency Indicator Unit 2012 2013 2014 1 Total fund Bil. VND 2,038 2,560 3,500 1. 1 Economic Organizations Bil VND 908 1,300 1,900 1. 2 Residents Bil. VND 1,130 1,260 1,600 2 Total loans Bil. VND 1,126 1,410 1,700 5 Deputy Directors Relationship Department Risk Management Department Customer Service Center Administrative Department General Accounting Department International Finance and Accounting Department Computing Group Money – treasury Group Transaction Office I Transaction Office II Transaction Office III Transaction Office IV ATMS and POS transactions DIRECTOR [...]... Customer Service Center – BIDV South Hanoi Agency BIDV South Hanoi Agency Customer Service Center II My internship at BIDV – South Hanoi agency 2.1 Studying the mobile banking service – its advantages and inconvenient 2.1.1 Background To achieve the goal of take measures to develop mobile banking services at BIDV South Hanoi agency, first of all I need to learn about this type of service and analysis... instructor Location Find out about BIDV and BIDV South Hanoi Agency Gain knowledge about mobile banking service Carry out the duties assigned BIDV South Hanoi Agency Analyze the performance of mobile banking service of BIDV – South Hanoi agency and do market research Assess and propose solutions to boost mobile banking service at the agency Write the internship report Customer Service Center 8 Customer Service. .. information inquiry • View updated information relating to: agency and ATM address, POS, exchange rates, interest rates, overtime agencies and other useful information Figure 4: Proportion accumulated of mobile banking at BIDV – South Hanoi Agency Source: Annual report 2014 of BIDV – South Hanoi Agency Although mobile banking is highly potential, the revenue from this service at the agency was very modest... 2.6 Assessing and proposing solutions for promoting mobile banking service at BIDV – South Hanoi agency Through the analysis of market demand and the results of deploying mobile banking services at South Hanoi agency, we can see that the Agency and the whole banking system are facing a great opportunity However, because it is a potential chance that has not been fully exploited Here are some seen exists... so that my friends and relatives could participate in the survey and they could share that link to their relatives and colleagues 2.5 Analyzing the performance of mobile banking service of BIDV – South Hanoi agency 2.5.1 Background After survey steps, the decisive task on whether come up with solutions to enhance mobile banking services at the bank or not is to analyze the performance of mobile banking. .. information on stock markets, exchange rates, interest rates on deposits, ATM locations, locations of bank agencies and transaction agency, etc Source: BIDV – South Hanoi Agency • Benefits of using Mobile Banking  Customers can use this service quickly and easily with a variety of benefits at high security and low cost  Banks can get more revenue from service fees with low investment costs, expand service. .. this service 2.1.2 Implementation I learnt about mobile banking services by studying journals and periodicals, online documents and the documents of the Customer Care Department – at BIDV - South Hanoi Agency on mobile banking services and interviewed the staffs who are in charge of this service First of all, I read general information on this service, but simultaneously I compared this information... understanding of mobile banking in term of definition, detail mobile banking services, benefits and risks when someone uses this service • Definition Mobile Banking is a service that banks provide account information and other information by sending messages to customers’ phone numbers through mobile network In essence, Mobile Banking service is a combination of many parties and expresses the symbiotic relationships... of services and feel neutral with installation applications Customers feel relatively dissatisfied with customer care staff, service fees and especially registration Procedure of services However, there are no criteria that have low scores at level 2 (dissatisfied) and there are no criteria to achieve level 4 (satisfied) 18 Table 7: Customers’ Satisfaction about BIDV s Mobile services Very dissatisfied... agency was very modest It accounts for only 0,301% of income from service fees Therefore, it is worth devoting time to study mobile banking service, investigate the current status of providing this service at BIDV South Hanoi Agency so that recommendations and suggestions can be given to enhance effectiveness of supplying mobile banking service The table below summarizes my working plan during internship . accumulated of mobile banking at BIDV – South Hanoi Agency Source: Annual report 2014 of BIDV – South Hanoi Agency Although mobile banking is highly potential, the revenue from this service at the agency was. out about BIDV and BIDV South Hanoi Agency BIDV South Hanoi Agency 16/02/2015 to 05/04/2015 Gain knowledge about mobile banking service Customer Service Center – BIDV South Hanoi Agency 05/04/2015. period 2010 – 2014 4 Figure 3: Organizational structure of BIDV - South Hanoi Agency 5 Figure 4: Proportion accumulated of mobile banking at BIDV – South Hanoi Agency 7 Figure 5: Registration procedure