GIẢI PHÁP PHÁT TRIỂN DỊCH vụ THẺ THANH TOÁN tại NGÂN HÀNG BIDV CHI NHÁNH hà nội e

LIST OF ACRONYMSTCTQT International Card Organization BIDV HN Bank for Investment and Development of Vietnam, Hanoi Branch ATM Automated Teller Machine TCVN Vietnamese standards IBMB In

MEASURES TO DEVELOP PAYMENT CARD SERVICES AT BIDV, HANOI BRANCH

The project “Measures to develop payment card services at BIDV, Hanoi branch” is

my own research The data and results of the project are my own collection and using

my knowledge and discuss with our instructors to complete this project.

Hanoi, 2013

REPRESENTATIONS … I

LIST OF ACRONYMS vii

LIST OF TABLES AND FIGURES

viii

INTRODUCTION 1

1 Urgency of topics: 1

2 The research objectives 1

3 Research Object and Scope 2

4 Research Methodology: 2

5 Time 2

6 Outline details 2

CHAPTER 1: THEORETİCAL BASİS 3

1.1 Products and product development to satisfy customer needs 3

1.1.1 The product concept: 3

1.1.2 Products development to satisfy customer needs 3

1.2.The bank cards and card services 5

1.2.1 Bank card 5

1.2.1.1 The concept of bank cards: 5

1.2.1.2 Characteristics of bank card 5

1.2.1.3 Classification of card 6

1.2.1.4 The process of development of bank card 8

1.2.1.5 The components involved business cards 10

1.2.1.6 Role of card services in the socio-economic development 12

1.2.2 Services, Utility of bank cards 14

1.2.2.1 ATM Cards, Debit Card 14

1.2.2.2.The VISA credit 15

1.2.2.3 Income from business card 15

1.2.2.4 The cost of business cards 16

1.3 The process of issuing bank card 17

1.3.1 The process of issuing card 17

1.3.2 Payment Card Process 18

1.4 Factors affecting the card service quality 19

1.4.1 Factors belong to the bank 19

1.4.2 Factors outside bank 20

1.5 Risk in Business Card 22

1.6 Research methods 22

1.6.1 Source of Data 22

1.6.2 Methods of data collection 23

1.6.3 Method of data analysis 24

CHAPTER II: THE SITUATION OF BANK CARD SERVICESIN BIDV HANOI 26

2.1 Introduction to BIDV - The process of formation and development of the Bank for Investment and Development of Vietnam (BIDV) 26

2.2 Introduction of BIDV Hanoi 26

2.2.1 History and development of BIDV Hanoi 26

2.2.2 Business activities of BIDV Hanoi 29

2.2.2.1 Operational funding 29

2.2.2.2 Credit activities 31

2.3 Situation Analysis Services of bank card in BIDV Hanoi 32

2.3.1 Introduction 32

2.3.2 Current status of issuing BIDV Hanoi 33

2.3.2.1 The cards issued by BIDV 33

2.3.2.3 BIDV’s VISA Card 34

2.3.2.4 Status of payment card operations 37

2.3.4 Analysis results of card business 37

2.5 SWOT Analysis 42

2.6 Competitive Environment Analysis 47

2.7 Analysis of the level of customer satisfaction 49

CHAPTER III 51

CONCLUSIONS AND COMPREHENSIVE SOLUTION TOCOMPLETE

BANK CARD SERVICES IN BIDV HANOI 51

3.1 Solutions to complete bank card services in BIDV Hanoi 51

3.1.1 Completing card products 51

3.1.1.1 Development of new card products 52

3.1.1.2 Goals 52

3.1.1.3 Develop flexible pricing strategy 53

3.1.2 Promote and expand distribution channels, relationships with partners 54

3.1.3 Promote mix promotion 56

3.1.3.1 Advertising 56

3.1.3.2 Public Relations (PR) 56

3.2.3.3 Image Promotion, Sale 56

3.1.3.4 Personal Sales 57

3.1.3.5 The other method 57

3.1.4 Human Resource Development 57

3.1.4.1 Appropriate recruitment and using 57

3.1.4.2 Training to develop qualifications 58

3.1.4.3 Salary policy 58

3.1.5 Strengthening management and risk prevention 58

3.1.6 Recommendations for BIDV 60

3.1.6.1 Develop oriented business strategies for total of system: 60

3.1.6.2 Promoting the role of National Financial Switch JSC (BankNet) 60

3.2.6.3 About issuing documents related to card services 60

3.1.6.4 Standard the transaction and the physical manifestation related to bank card services 61

3.1.6.5 Strengthen network security 61

3.2 Conclusion 62

LIST OF REFERENCES 64

REFERENCE IN VIETNAMESE: 64

REFERENCE IN ENGLISH 64

LIST OF ACRONYMS

TCTQT International Card Organization

BIDV HN Bank for Investment and Development of

Vietnam, Hanoi Branch

ATM Automated Teller Machine

TCVN Vietnamese standards

IBMB Internet banking,Mobi banking

ACSI American Customer Satisfaction Index

LIST OF TABLES AND FIGURES

Figure 1.1: The process of issuing 20

Chart 1.2: Card payment process 22

Table 2.1: Model organizational structure of BIDV Hanoi 33

Figure 2.2: Data Bank's funding of BIDVHanoi 34

Table 2.3: Volatility of capital by mobilizing resources 35

Table 2.4: Results of the credit operations of Branch 36

Table 2.5: ATM Fees of BIDV Hanoi 39

Figure 2.6: Credit card fees for Flexi & Precious Card 40

Table 2.7: Some results of the card services of BIDV Hanoi 41

Table 2.8: Some results of ATM business, customer of BIDV Hanoi 41

Table 2.9: Results of the VISA card issued in BIDV Hanoi 42

Figure 2.10 Some development outcomes of payment cards of BIDV Hanoi 42

Figure 2.11 Analysis results of VISA card business 43

Figure 2.12 The number of customers using cards of BIDV Hanoi 44

Figure 2.13 Number of ATM, POS, DVCNT of BIDV Hanoi 46

Figure 2.14 Frequency of customers using VISA card of BIDV Hanoi 47

Figure 2:15: Demand for ATM customers 48

Figure 2:16: The type of BIDV card usage fees 37

Figure 2:17: The quality of services together with BIDV Hanoi card with some other banks 49

Figure 2:18: Analysis of the average level of bank card……… 50

Figure 2:19: Analysis of the degree of customer satisfaction 51

1 Urgency of topics:

When Vietnam joined in the WTO, integrate with the world economy,this is an opportunity but also a huge challenge for Vietnamese enterprisesincluding banking sector So the domestic banks have to change in all aspects:

HR, science, technology, products and services In which there is payment cardproducts

Currently in the world, the banking cards actually become a means ofnon-cash payments which are very popular, not only for the countries withdeveloped economies but also constantly expanding in developing economies.Besides, with the development of science and technology, media has made thecard product to take effect in the sale of their goods and services in countriesaround the world become convenient and quickly

That is the reason why we have global brand as VISA, MASTER card ,some of international company of cards are widely known At the same time,many banking groups in the world have strong competition in the issuance andpayment, provide significant income in the total income of the bank

Development of card services, contributing to reducing the proportion ofcash payments in the economy and bring utilities to the people and for theservice providers However, current service is not really developed well, notreally bring utilities to the cardholder as well as become a means of non-cashpayment in the popular economy

From this fact we chose the topic: “Measures to develop payment

card services at BIDV, Hanoi branch” to research in my project

2 The research objectives

- Research rationale of development payment card, credit card (VISA) inBIDV Hanoi

- The problems in the development card services in BIDV Hanoi

- Proposals for the development card services to meet the needs andsatisfaction of customers.

3 Research Object and Scope

- Research Object: Research in development of card services, creditcards VISA in BIDV Hanoi

- Research Scope: is the content of card development in BIDV Hanoi,

2009 - 2012

4 Research Methodology:

- The project uses methods of analysis, synthesis, and matrix studied,such as product development, marketing management, strategic management applications in research topics

- In addition, the thesis uses quantitative research methods, datacollection questionnaires, interviews, assessment and consultation with experts

5 Time

August: study rationale

September: Collecting data on the quantity and quality of card products,October: Write a thesis statement

6 Outline details

Commitment

Table of Contents

The list of figures and tables

Chapter 1: Theoretical basis

Chapter 2: Status of card products development at Banks for investmentand development in Hanoi Branch (BIDV Hanoi)

Chapter 3: Conclusions and Solutions

CHAPTER 1: THEORETİCAL BASİS 1.1 Products and product development to satisfy customer needs

1.1.1 The product concept:

In the process of human development due to labor and productionactivities have to convert resources into useful products All products areproduced to meet the specific needs of people Thus, the main product is theoutput or results of operations of human labor According to ISO 9000, 2007Product is defined as "the result of the activity or process." The process may beproducing activities alter physical and chemical properties of the materialincreases its value or provide a service to meet the specific interests of thepeople All organizations, businesses, industries, sectors of the nationaleconomy are creating or providing their products to society According to thisview, the product is widely interpreted, not only is the material specific itemsbut also includes services

Today a complete product is produced and circulated in the market hastwo components which are the properties of hardware, software or acombination of them

Hardware products include tangible physical attributes which expresses

in a concrete form, clearly reflects the different value, functionality, utilityengineering, economics of the product

Software products are intangible factors including the types of servicesthat provide to clients and other factors such as information, concepts, and

related services Nguyen DinhPhan, Dang Ngoc Su (2012).

According to PHILIP Kotler: Products are everything that people cansell in the market to pay attention, purchase, use or consumption, can satisfy adesire or need

1.1.2 Products development to satisfy customer needs

In the tough competitive business environment today, the product quality

to become one of the most important bases of the purchase decisions of

customers so that determination customer, customer's needs and ratedsatisfaction to seek the ways to serve them better is especially important for anybusiness Customers are prerequisites for every business to survive and grow.The key of the success in competition is to maintain and develop clients throughcontinually meet their needs in the best way So, the task of every business is isdefined who raethier customer from which to find what should offer and howbetter to meet their needs.

The level of satisfaction is a state of feeling derived from a comparison

of the results obtained from the product of the expectations

Thus, satisfaction is a function of the difference between getting resultsand expectations Clients may feel a degree of satisfaction in the followingthree: if the actual results inferior to expectations, the customer will not besatisfied If actual future results initiated with expectations, customers will besatisfied If the actual results exceeded expectations, the customer is satisfied,

happy and excited Nguyen Đinh Phan, Đang Ngoc Su (2012).

Figure 1.American Customer Satisfaction Index – ACSI

Source: M.D Johnson et.al.Journal of Economic Psychology 22 (2011)217-245

In American Customer Satisfaction Index – ACSI, perceived value isaffected by perceived quality and customer expectations Meanwhile, customerexpectations have a direct impact on the perceived quality In fact, the higher theexpectations, maybe the quality standards of customer experience for the

Perceived value

product as high or vice versa Therefore, requirements for product quality andservice provided to customers and the need to ensure are met on the basis oftheir satisfaction The satisfaction of customers is made on the basis ofperceived quality, expectations and perceived value, if the quality and perceivedvalue higher expectations will create loyalty with customers, otherwise, there are

no complaints or grievances about the products they consumer

In this project, the author will analyze the criteria of customerquestionnaires on perceived quality, expectations and perceived value to lead tocustomer satisfaction, analyzed by SPSS to provide results and analyze thequestions quantitatively

Question of the professionals is qualitative to give solutions to improvequality of service cards

1.2.The bank cards and card services.

1.2.1 Bank card

1.2.1.1 The concept of bank cards:

Bank cards as a means of non-cash payments, was born from thepurchase method under retail and development associated with the application ofinformation technology in the banking sector Bank cards are paymentinstruments issued by bank card for customers to use payment for goods orservices within the cash balance or deposit your credit limit granted Bank cardsare used to perform these services through automated trading system, alsoknown as self-service ATM system

According to the "Regulation on issuance and payment using bank cards

" issued together with Decision No 371/1999 QD / SBV dated 10/19/1999, thebank card is payment instruments which are issued by the Bank for customers touse following the contract between bank and cardholder

1.2.1.2 Characteristics of bank card

The current bank cards, most of them are characterized as follows:

The name and logo of the publisher:

For example: The Master: two circular logo (a red, an orange figure) isnested in the lower right corner and white text in the middle of Master Cart:

The back of card

1.2.1.3 Classification of card

There are many criteria to classify cards but mostly people use the 2main methods: Classification according to production technology and classifiedaccording to the nature of the payment card

If based on the production technology divided into 3 types: embossedcard, magnetic card and smart cards:

Embossed Card: As the cards on the card surface relief necessaryinformation Today this little card is used for rudimentary printing process,prone to counterfeiting which combined with new technologies such as magneticstripe, smart card

Magnetic field This card can

with draw

money from

ATM

Magnetic Card: the card that the cardholder's information has beenembossed on the front of the card has been encoded in the magnetic tape on theback of the card This information must be correct and match.

Smart card: This is the latest generation of card having security featuresand high safety, based on the technical computing processor, mounted on anelectronic chip card made as a perfect computer Usually a smart card electronicchip attached to replace the magnetic stripe of the card It is also the case withthe smart card chip and electronic tape The issuance and acceptance of paymentcards only prevalent in developed countries despite international cardorganizations still encourage member banks to issue payment cards and toreduce the risks of counterfeit rate face card

If based on the nature of the payment can be classify into Credit cardDebit card

Credit card: the method of non-cash payment provides the ability to usepre-paid expenses later Banks and financial institutions issuing credit cards tocustomers based on the reputation and ability to ensure that each customer pays.The ability to ensure payments are determined based on criteria such as income,expenditure status, prestige, availability relationship with financial institutions,mortgage clients When using the card, instead of cash, cardholders presenttheir cards at the point of supply of goods and services for payment cardacceptance

Debit card: Like credit cards, debit cards as well as a means of cashlesspayment It allows customers to access their account balances via onlineconnection to payment for goods or services at Merchants perform transactionsrelated to accounts at ATMs The cardholder's spending depends primarily onthe balance in the account

ATM card is the first to develop forms of debit cards, customer cardsallow direct access to bank accounts from automated teller machines.Cardholders can make many different transactions at ATMs Along with ATM

cards, ATM system provides customers the ability to use the card after hourstrading, foreign bank offices and self-service capabilities.

Over time, the organization has been active card ATMs connectedtogether to create a regional ATM network, allowing customers to performATM transactions at many more

Besides these two credit cards and debit cards mentioned above, a form

of bank cards is becoming increasingly popular is the link tags Card link is theproduct of a bank or financial institution associated with a third party andcommon names, trademarks or logos of third parties also appear on the card.Also available features of a regular bank card, the card can link more attractive

to customers by the additional benefits brought by third parties

If based on the scope of use of the card in the card can be divided intodomestic and international cards

Domestic Cards are cards by banks, credit institutions issued instead ofcash used to pay for goods and services and cash advances within the country

International cards are bearing brand of organizations as banks, creditinstitutions issuing agent International Card can be used on a range of domesticand international, at any merchant or ATM that shows that accepts paymentcards For international card issuance, card-issuing bank must register and beaccepted as a member of international card organizations, adhere to theregulations in the issuance and payment cards by international organizations thatissue There are 2 types of international card and debit card International creditcard

1.2.1.4 The process of development of bank card.

To have products as diverse as today, the bank card sector has gonethrough several stages and test development However, in terms of time, tradingcard industry is a relatively new business, the birth and development began inthe early twentieth century until today

Bank cards are formed in the U.S from customers buying habits have all

of the retailers on the basis of prestige customers to shop

In the 1914, Western Union, money transfer organization of U.S the firsttime provide his customer special deferred payment services The companyreleased the plate containing the information embossed perform two functions:

- Identify and differentiate customers

- Provide and update customer data, including account information andperform transactions

Other organizations also recognize the value of this kind of serviceabove and within a short time then a lot of units, such as railway stations, hotelsand stores throughout the United States has chosen provider deferred service forits customers Among them, the American Petroleum Corporation launched thefirst gas card in 1924 to allow people to use the card to buy gasoline in storesnationwide

Following organizations provide goods and services The bank enteredthe market quickly with a goal card soon after this payment form on the basis ofexisting relationships between entities providing goods services across thecountry with extensive dealer network of banks In 1950, Diners Club issued thefirst credit card is made of Plastic

After Diners Club, in 1958, American Express Company is also involved

in bank card market and has successfully established its brand name in this newfield Like its competitors, American Express card development focus in thefield of tourism and entertainment, two fields which have rapid growth in theU.S and Europe during the post-war world

Before 1970, the concept of credit cards have been known to everyoneand received quickly 1966, Bank of American official authorized his releaseBankAmerican card to other banks through agency contracts, beginning inaccelerated phase development services card

To 1977 card of Bank of American actually accepted globally andinstead of BankAmerican name, name Visa card with characteristic color isblue, white and yellow.

Also in 1966, three major banking groups eastern United States decided

to establish collaborative business groups own credit, called the Interbank CardAssociation After the Interbank Card Association was changed to MasterCard.Interbank Card Association issued regulations on licensing transactions,clearing, Marketing measures, and security issues relating to the law to operate ajob effectively

In 1968, the Interbank Card Association began business expansionstrategy on a global scale through links with Banco National of Mexico ThenInterbank Card Association continue to seek partners in the European marketand launched Eurocard cards Also in 1968, Interbank Card Associationmembers admit that some Japanese banks to gradually penetrate and capture theEast Asian market

Thus, the introduction of bank card payment needs and developtechnology -based strategies and replacing cash in circulation In fact, the bankcard is the inevitable development in the field of banking and finance, and hasbeen reflected in the development of science and technology and civilizedsociety Acquisition and application of the achievements of science andtechnology, especially information technology, card systems are more completedeveloped This is a significant success for a new business just a few decadesformation and development

1.2.1.5 The components involved business cards

The issuance and use of payment cards and domestic bank participationtight 4 basic components: the card-issuing bank, the bank card payment, cardholders and card-accepting units (CAU) For international card adds a furthercomponent is the international card organizations Each subject plays an

important role in various maximize liquidity features modern cashless bankcard.

- International Card Organization is the head of all operations andmanagement of payment cards in our network This is an association of financialinstitutions, large credit -wide network and reach the famous brand anddiversified products such as card organizations Visa, MasterCard card issuers,card companies American Express, JCB card companies, card company DinersClub, Mondex company International card organizations offer basicprovisions regarding issuance and use of payment cards, play a mediating rolebetween the organization and the member companies of the adjustment and thebalance amount payments between member companies

- The issuing bank is issuing banks themselves own branded card orinternational card organizations, empowered card companies issue cardsbranded by organizations and companies The issuing bank is the bank named

on the card issued by the bank to show that its product Issuing Bank specifiedterms and conditions of use for the customer card The Bank has the right tocontract with a third party agent is a bank or a financial institution for credit andpayment card issuing credit If the name of the agent banks appear on thecustomer's card is necessarily agent bank that is a member of the officialorganization card or international card companies

- Bank of Payment: Bank payment is accepted bank cards as a means ofpayment by contract accepting the supply of goods and services in the area

In fact, many banks are just issuing bank has a bank card payments Asthe issuing banks, their customers are also cardholders bank as payment,customers are entities providing goods and services contracted merchant

- Cardholders: Cardholders are individuals or authorized person (ifbooked by the company is authorized to use) the card -issuing bank, the nameembossed on the card and use the card on the terms and bank specified

conditions As usual, each primary cardholder may issue supplementary cards,both primary and supplementary cards and general spending account.

- CAU: The unit providing goods and services contracted accept cards

as a means of payment is card – accepting unit (CAU) Although the bank to pay

a premium rate payment discount given but in return the merchant throughwhich attracted a large volume of customers, sell more products whichcontribute to improving the production efficiency as well as business unit'sprofit Decision No 371/1999 / QD-SB October 19, 1999

1.2.1.6 Role of card services in the socio-economic development

For the bank

First, the role of active cards for the bank's funding: the debit card, thecard is based on the deposit account opened at the bank, so the number of issuedcards more then some increasing deposit accounts, through which the bank'scapital increased by the same amount With a credit card it is a type of credit is aform of investment, but the effect of increasing bank deposits On the other hand

in issuing regulations, credit card payments, the unit must have a merchantaccount at a bank This is a form of bank funding as the bank has both a bankrelease payment

Second, the role of the card to the credit of the bank: With the form ofcredit card, the bank can make loans on certain credit limit, allowing thecardholder spending limit Thus the form of credit card issuers, banks expandedlending activities, particularly consumer loans These activities and investmentcredit safe, fast and effective because the loan is based on reputation or financialviability of the high cards

On the other hand to release the customer card you can enter an amount,

or passbook, debentures, bonds usually greater than or equal to limit credit card

With economic - social:

First, the bank card payment helps mobilize idle capital in thepopulation, which meet the needs of the economy: Payment by bank card to

facilitate capital raising activities of banks with cheap, this additional capitalbanks can use to invest in service business For example, if a card account has 3million VND and we have 3.5 million cards issued, the Bank has mobilized10,500 billion).

Second, the bank card help payment activities to become safe, fast andsave time: The card has facilitated the payment for goods and services safelyand effectively, accurate, reliable and time -saving, thereby creating publicconfidence in the operation of the banking system Besides, it does not takemoney from the shipping cost place to the other to make the payment and reducethe negative social vices

Third, to contribute effectively implement national monetary policy:bank card activity enhances circulation of money in the economy, increase therotation of the coin, unfreeze the different flows, creating important conditionfor controlling the volume of payment transactions both residential andeconomy, thereby paving the way for the calculation of the money supply andthe implementation of monetary policy to be effective

For customers using cards (also known as card holder):

First, payment cards provide the convenience of paying for goods andservices in both card users in the country at home and abroad: Cards are createdwith compact size, thus, cardholders can easily stored and transported anywhere,anytime without any restrictions on space and geography Cardholders can usethe card to pay for goods and services at merchant establishments across theglobe with great affordability

Besides, with payment cards, cardholders can send the local currency butwill be targets of any currency if there is demand, the exchange rate of the bankwithout going through the stage of transition exchange

Second, payment card bring safe transactions: Along with theconvenience of payment cards also provide both the safety of the transaction.Instead of carrying a large amount of money when traveling on business,

cardholders need only carry a small card as the payment needs can be met, notinferior payment cash.

Third, payment card helps cardholders save time shopping: When usingthe card, the payment will save time for counting money, cash checks whenpaying bills with great value Also, if the card holder to work or travel, you willnot have to carry large amounts with you, or use of checks - each time they need

to go to the bank to cash a check, and if spending not all they have to go back tothe bank to put money back into your account

Using the card is in place to save time, as soon as the card holder, thecash needs can be met by immediate automated teller system or throughgovernment banks across the globe

Fourth, payment card bring civilization: developed country anddeveloping economies expressed in both procurements method, payment andconsumption of human

1.2.2 Services, Utility of bank cards.

1.2.2.1 ATM Cards, Debit Card

Recharge: cardholders can load cash directly to your account at the bank,charging at ATMs, transfer from another bank

Withdrawal: through the ATM system, the point of money application Money Transfer: through accounts at any bank, payment of businesstransactions, the service bills (electricity, water, telephone )

Get transfers: from domestic and foreign banks, received salary andbonus

Currently most of the cards in the market has put in a number ofextensions as follows: Payment of goods - services: in stores, trade centers,supermarkets, bookstores, restaurants - Hotels , direct payment or autopayment for service such as water, telephone, Internet fee, ; Buying prepaidcards, payment directly through ATM

With modern technology applied will have more convenience in thepayment card The trend in the future, the card will become more versatile andbecome the only thing to manage all transactions and banking services

1.2.2.2.The VISA credit

Using simple, time-saving, easy shopping anytime, anywhere: With thecard in the compact and simple operation, credit cards BIDV traded tens ofmillions of ATM / POS, website with VISA logo is worldwide Customers canuse the card to go shopping, travel, pay at the supermarket, shops, restaurants,commercial centers, hotels, resorts or to place an order online through theInternet

High security, maximum risk prevention fake cards: BIDV Precious,Flexi is one of the most secure credit card nowadays cause it is integratedmagnetic stripe technology and EMV Chip cards (Standard payment smart cards

of 3 the world's largest Alliances are Europay, MasterCard and Visa offer) Theprocessor in the chip on a card to help protect the information card data,ensuring secure transactions, security and risk prevention fake cards

Source: BIDV Hanoi 1.2.2.3 Income from business card

As this is a service, card bank has brought many different incomes First

of all, we have to mention the annual fee that must be paid by cardholders usingcards following the contract The fee for the card number will be large relativeincome of the bank It is said that the bank always have benefit from cardtransactions

The second income is relatively stable that the bank earned is from cardaccepting unit (CAU) With CAU this is fee for every dollar of revenue comesfrom accepting card payments It is considered as trade discounts In addition,customers also pay a non- interest if paid in full according to the statement Latepayment fees that banks apply to the cardholder for each statement, thecardholder bank forced to pay a minimum amount, the rest will apply latepayment fee, which is actually overdue interest.

The biggest revenues that banks earned are from fees paid by theimplementation of the credit institution or the card issuer This fee is calledpaying agent fees There is also the extension of credit fees, investigation fees,cost of the card is stolen, lost

All of these amounts provides a relatively high rate of profitability,create attractive business cards for people Rate of return on business cardsahead of all other types of businesses with 1% growth in the size of the marketand it is associated with strong growth in operating profit

1.2.2.4 The cost of business cards

In addition to the proceeds from the issuance and payment cards,business cards have also spent a lot of expenses, including:

The cost of machinery equipment for CAU: These are expenses related

to fixed assets of the bank With the increasing development of science andtechnology, these costs account for a large proportion of the total cost ofbusiness cards by the speed of the depreciation of machinery and equipment.This is a relatively large difficulty for card market development card cause most

of these devices are imported from overseas which has qualified high-techscience

The cost of printing and encoding information, customer profilemanagement: This expenditure is relatively stable and accounts for a smallproportion

Branchrelease

The losses due to the risks arising

In addition, if the bank does not release enough signed cards to organizeannual international card, the bank must also be fined an amount equivalent tothe contract issue

We can see that, cards is very large business, therefore, cost management

is an indispensable task

1.3 The process of issuing bank card

1.3.1 The process of issuing card

Figure 1.1: The process of issuing

Source: BIDV Hanoi

(1) Customers wishing to use a bank card to apply for the card Theymust document sent to the release branch The records include: Application forcard issuance, card use contracts and other related documents

(2) Release Branch received the application and the card used to appraisethe issuing requests as checking customer records, customer informationevaluation, completion and related procedures credit guarantee, mortgage,pledge or collateral With the satisfactory profile is approved, proceed with

ISSUING

BANK

CARD HOLDER

PAYM ENT BANK

INTERNATIONAL ORGANIZATIONTỔ CHỨC THẺ QUỐC TẾ

(4) Branch released after receiving notification card and PIN number(the security) card to card check and the information on the card Talking cardand PIN to the customer, customer guides card use and card storage Bankrequested confidential cardholder PIN After the user has signed the card,Branch released the trigger made cards for clients and customers can use thecard for the transaction

1.3.2 Payment Card Process

Chart 1.2: Card payment process

Source: BIDV Hanoi

Activity card payments include the following steps:

(1) Cardholders buy goods and services at CAU

(2) CAUs send the bill to the bank to pay

(3) Bank gives advance payment for the merchant

(4) Bank sends payment card data to international organizations.

(5), (6), (7) International Organization report YES for payment bank andsend data DEIPT it bank that issued the card

(8) The issuing bank sends a notice card transaction for cardholders.(9) The card holder pays for your transaction

Activity card payment is not merely a service that brings revenue to thebank, but a desire to provide clients a complete service to society and a modernform of payment Thus, the incentive payment card operations through networkexpansion unit to accept card payments are significant issues important to theinternational card organization and its members

So the development of the bank card products services will attractcustomers to increase revenue and increase funding costs for banks to create thesustainable bank development

1.4 Factors affecting the card service quality

1.4.1 Factors belong to the bank

The level of HR working on cards

As a modern means of payment, payment cards bearing the highlystandardized and uniform operating procedures Because it requires banks tohave a workforce, the level and accessibility, ensuring release process, use andpayment in a safe and efficient promotiing the inherent utility of the paymentcard Which bank interest actually appropriate investment for the training ofhuman resources, talent attraction, that bank will take advantage of businesscard

Financial capability and technological level of bank

Card Services is a modern banking services, it is associated with thedevelopment of science and technology All steps in the business process withthe card needs modern technology, from card production to the installation ofmodern equipment for activities such as card payment terminals, ATM, cardreader (POS) In the business card, the bank card products better, more

convenience and safety, the new customer trust preferred and used To have themodern technology, banks really have great financial resources So they cancompete in the new environment of stormy development in scientific andtechnological as at the present.

The development of banking

Orientation of the bank is also a key factor in the development of cardservices With the same basic operations but each bank has a differentdevelopment based on its own strengths And each bank itself in differentperiods will have different goals The issuance and payment will be expanded asbanks focus on banking services Bank to develop a program for their strategicdeployment in a long time based on surveys of target customers, competitiveenvironment and based on their own internal resources

1.4.2 Factors outside bank

Residential Environment

Consumption habits of the population a major influence on thedevelopment of the card Card market growth only when Vietnamese people seethe advantages when compared to consumers by consumer card with cash.Besides educational level also plays an important role Card is a product ofmodern technology so the development of card depends on the public'sunderstanding about it Only in the high education level, the ability to applytechnological achievements for people with the condition will develop People'sincome affects their consumption, higher income leads to the acquisition ofgoods and services increased Then they need payment quick and convenientmethod as bank cards

contact card services Next to that, a developed economy will attract foreigncompanies and international organizations to invest in cards They not onlyinvest in cash, but also investing in technology and people to create conditionsfor market development card

Competitive Environment

This is the driving factor card market boom The competition amongbanks to attract customers, dominate the market force banks must constantlyresearch technological innovation, product to product offering the best qualitycard, bring many benefits useful for customers Thereby creating trust andbuilding a relationship of loyalty between banks and customers, which is a keyfactor in the competition Also the customer service is also emphasized Thecompetition will create a vibrant market for cards

Environmental technologies

The application of information technology has created the utility of cardmagic Bank cards will just be a normal plastic if it is not tied to the magnetictape or electronic chip carrying the necessary information and can’t affordpayments if it is not automatically included in the reader units POS, ATM, POSand computer systems connected to the distribution center and card payments.Thus, environmental technology develop, the more cards are addedconveniences, increase security Thus attracting a large number of people usingcard services

Legal Environment

The issuance and payment of the bank depends on the legal environment

of each country The legal environment is strict barrier to protect the interests ofthe parties to card services, but also the factors that prevented the development

of card services without a written agreement between the adjustments A unifiedlegal framework for banks will be active participants in the market as well as theproposed card of their business strategy Thereby, this consolidates a solidfoundation for developing card services in the near future

1.5 Risk in Business Card

Business is a very rich industry risks, business card is not beyond thelaw Risks and risks can occur at any time throughout the release process, andthe use of payment cards When there are risks, there are damaging not only forthe actors but card works cause long-term consequences for society, causingpublic distrust of the banking system

The results of the questionnaire are racing on a computer and softwareSPSS version 20 for Windows was used for data analysis

Depth interviews with bank leaders to learn the current status anddirection of bank card services

Direct interviews

Survey

Situation ofcard services

Situation ofcard services

Theoretical Foundations

of Card Services

Theoretical Foundations

of Card Services

1.6.2 Methods of data collection

The contents of the interview:

- The orientation of the leadership for the development of card servicesBIDV Hanoi

- Evaluation of them on the market at present card services

- The strategy for development BIDV Hanoi card services and increasethe number of customers using the service tag

Method of interview:

Posing the question open and closed questions and put questions to theinterviewee about 5 minutes to read the question to understand the entirecontents and then conduct interviews

Time of interview

Time flexibility interviewed for about 15 minutes and make theatmosphere fun interview and openness, I choose suitable time for an interview.List of interviewees:

No Name YOB Position

Years of experienc e

Work place

Business Department 20

BIDVHanoi

2 Nguyen Thanh Tuan 1968 Deputy Director card

BIDVHanoi

3 Nguyen Thi Kim Dung 1970 Deputy head of card

BIDVHanoi

4 Nguyen Thi HanhThao 1975 Deputy head of card

BIDVHanoi

5 Nguyen Thi Hai Yen 1980 Specialist of card

BIDVHanoi

1.6.3 Method of data analysis

Project using quantitative methods, using SPSS software analyzes theactual situation to give the appropriate results

CONCLUSION CHAPTER 1

This chapter presents a theoretical basis for the theory of productdevelopment and product satisfaction customer satisfaction With only model ofcustomer satisfaction of products and services to customer satisfaction will bemeasured by the perception of customers about products and services, the basicfeatures of the product, the services associated by product, customerexpectations of product, the value that the product brings contentment to discusscustomer satisfaction which will bring the best products and services forcustomers

Also on the topic of thesis writing service development within the bankcard payment so authors combined analysis features, usability, the role of thebusiness card of BIDV Hanoi and the factors affect the quality of the servicecard

CHAPTER II: THE SITUATION OF BANK CARD

SERVICESIN BIDV HANOI2.1 Introduction to BIDV - The process of formation and development of the Bank for Investment and Development of Vietnam (BIDV)

Bank for Investment and Development of Vietnam was established on04.26.1957 177/TTg Decision of the Prime Minister with the original name isVietnam Construction Bank

Bank for Investment and Development of Vietnam is one of four formerstate-owned commercial banks in Vietnam formed the earliest and oldest, state-owned enterprises is particularly class, organized activities modeled StateCorporation The focus and activities of BIDV traditional occupation is to servethe investment project development, project implementation programs criticaleconomic development of the country Full implementation of the bankingoperations of the service sector, have a close relationship with the Company,Corporation

BIDV equitizated in 2009 and transformed into Joint Stock CommercialBank for Investment and Development of Vietnam

2.2 Introduction of BIDV Hanoi.

2.2.1 History and development of BIDV Hanoi.

- Full Name: Bank for Investment and Development of Vietnam HanoiBranch (BIDV Hanoi)

- Address: No 4 B Le Thanh Tong - Phan Chu Trinh ward, HoanKiemDistrict, Hanoi

- History and development:

On 27th May 1957, KienThiet Hanoi bank (formerly the Joint StockCommercial Bank for Investment and Development of Hanoi today) in theVietnam KienThiet Bank was established The mission of the bank is gettingmoney from the state budget allocated to conduct lending and investment incapital construction

In 1982 Vietnam KienThiet Bank was renamed to Vietnam Investmentand Construction Bank and separated from the Ministry of Finance, under theState Bank of Vietnam Hanoi Kienthiet Bank changed name to HanoiInvestment and Construction Bank, belongs to Vietnam Investment andConstruction Bank.

On May 1990, the State Council issued 2 Ordinances on banking:

- The State Bank of Vietnam Ordinance

- Banks, Cooperative Credit and Finance Companies Ordinance

The issue aims to improve banking system in the two -level model,functional separation between the management of the State Bank andcommercial functions of the banking trade According to the banking systemfrom 1st October 1990 Vietnam Bank officially divided into: Central Bank andthe State Bank of Vietnam

The Commercial banks, Bank for Investment and Development, FinanceCompany, Credit Cooperatives

On 26th October 1990, the Bank for Investment and Construction ofVietnam was renamed the Bank for Investment and Development in Decision

No 401 QD - chairman of the Council of Ministers and is headquartered at 194Tran Quang Khai, Hanoi with a chartered capital of 1100 billion VND and hasbranches at provinces, special central district Accordingly, the Hanoi Bankchange name to Bank for Investment and Development of Hanoi

From foundation to nowadays, Bank for Investment and DevelopmentBank of Hanoi was through five stages of development:

Stage 1957-1960: serve the economic recovery after the war against theFrench and the 5 year plan first

Stage 1965-1975: serving destructive war against the U.S escalated theNorth and South Vietnam to Liberate

Stage 1975-1995: the service of recovery, economic development in thecountry

Thus, from its inception till 1st January 1995, Bank for Investment andDevelopment of Vietnam is not purely a commercial bank which is a state-owned bank that receives funds from the state budget and allocated to conductloan Investment in capital construction.

Stage 1995: State commercial banks Branch: From 1st January 1995, thePrime Minister decided to separate the parts of budget allocation from Bank forInvestment and Development of Vietnam to become General Department ofInvestment and Development of the Ministry of Finance And from 1st January

1995 Bank for Investment and Development of Vietnam in general and HanoiBranch in particular really works as a commercial bank

+ Equitization in 2009 and renamed Commercial Bank for Investmentand Development of Vietnam - Hanoi Branch

With over 50 years of investment and development, the current scaleHanoi branch very strong with a total of more than 300 staff There are 5 roomsCustomer Relationship, 1 living individual customer transactions, a transactionoffice enterprise customers, aggregate planning department in which thecomputing, business card room, ball room, management office and treasuryservices, room credit Administration, risk management Department, financialaccounting, 6 rooms transaction and a savings account

Table 2.1: Model organizational structure of BIDV Hanoi

Source: BIDV Hanoi

2.2.2 Business activities of BIDV Hanoi

2.2.2.1 Operational funding

The work of raising capital Hanoi BIDV always been regarded as thekey task in the context of intense competition for funding between banks in thearea Besides abreast of guidance and policy rates of commercial banks, joint-stock Investment and Development of Vietnam, the State Bank of ceilingdeposit rate and lending, market performance, combined measures, the flexible,suitable as relationships develop, apply the policy to client branches also takeadvantage of the customer relationship with the customers have to mobilize idlefunds Therefore, funding of branches has significant growth, contributed to theoverall efficiency of business specific: To 31th December, 2012 Location

Board of Directors

Operations Risk

Management

Customer

Relations

Subordinate Internal

Credit Department

The transaction room

Service Management &

Treasury Department

Card Department

Phòng KH-TH-ĐT

Finance and Accounting Department

Phòng TC-HC

Administration

Department

Transaction departmen t The savings fund

funding of branches reached 8,399 billion, an increase of 590 billion VND (up20%)

Figure 2.2: Data Bank's funding of BIDVHanoi

(Unit: billion VND)

Total resources mobilized

According to mobilize resources

From residential

From organizations

6.170

2.4803.690

7.250

3.1604.0 90

7.809

3.5944.215

8.399

3.8844.515

Source: Report on the business results of BIDV Hanoi in 2009 - 2012

Associated with capital raising activities are liquidity risk, the riskoccurs when depositors withdraw cash at the branch series Therefore, tominimize the risk of capital mobilization Branch has actively implementedprograms to mobilize savings, such as savings prize, gift promotions save, savesteps, save online direct through ATMs and online with IBMB under thedirection of the Bank for Investment and development of Vietnam Branchregularly monitors changes in interest rate level in the area, conductingadvertising drives on the mass media, hanging banners, slogans, fliers, send gifts

to customers a lot of money in the fundraising phase We segment customer tohave care policy like promotions and gifts for those having large amounts ofmoney, loyalty

Table 2.3: Volatility of capital by mobilizing resources

Source: Report on the business results of BIDV Hanoi in 2009 - 2012

Monthly branch has calculated the average input rate - output for thegovernance of the leaders, the situation closely interest rate fluctuations on thecapital market to offer products the mobilization of capital, interest rates andlending rates accordingly

From the above figures can be seen that the work of raising capital in thepast period of Branch Bank for Investment and Development of Hanoi is quitegood, considering the context of fierce competition from banks in the area andthroughout the banking system in Vietnam in general However, the fact that thegrowth rate is much higher capital growth in credit at the branch and timedeposits of the branches have applied for equity sales Focus on the future of thebranch is to increase the ability to raise funds from individuals and economicorganizations, it is prerequisite to ensure the Hanoi branch BIDV stand on theirown feet and autonomy in business

2.2.2.2 Credit activities

BIDV Hanoi perform according to BIDV in each period, focusinginterest-subsidized loans, loan financing and export industries create balance forthe economy, mainly the basic construction , and actively, actively seek andexpand new customers are eligible for loans with a focus on short-term lending,lending non-state clients business performance result, client activity in the field

of import and export customers in the priority sectors of the Government, tofacilitate revenue growth for Bank services

Table 2.4: Results of the credit operations of Branch

7.350

4.6102.740

8.800

5.6503.150

10.2507.8752.375

Source: Report on the business results of BIDV Hanoi in 2009 - 2012

2.3 Situation Analysis Services of bank card in BIDV Hanoi

is essential to bring revenue to the bank services including development issuesare concerned card services deployment

Before 2009 BIDV is one of the four largest commercial banks in thecountry beside Vietcombank, Vietinbank, Agribank and has a large amount ofcustomer in long time Vietcombank take the lead in developing servicesincluding card services and currently the head, then Vietinbank, foreign banksinvesting in Vietnam, the bank shares as Techcombank, ANZ, BIDV triedissuing cards since 2000, but in three years recently we started interest to cardbusiness so it is difficult for us cause customers are already familiar with otherbank card So that in order to compete, BIDV Hanoi must constantly innovateand concerns have a clear strategy to develop card services how to meetcustomer needs and who is and is going to cooperate with BIDV

Following the close guidance of Bank for Investment and Development

of Vietnam, BIDV Hanoi has conducted test deployment card services since

2000 with the all staff in our Brach

Card Services is a new service with high technological content With theproper awareness about business in general and card services in particular, inoder to obtain high results and safe, in all units card release, from 2011, we havecard department which developed from card team They have responsibilities asfollowing:

Issue and manage card.

Manage the activities of ATM, POS point of the branch

Coordinate with customer relationship marketing to individual customersDepartment of business card collect card issuance requirements, controlcard, transfer to central card and take card, pay card for cardholders

2.3.2 Current status of issuing BIDV Hanoi

2.3.2.1 The cards issued by BIDV

BIDV Hanoi offers customers all kind of card that are issued by BIDV,including:

With domestic debit cards:

Van Dam Card: is suitable for students and youth audience, has releasedfree and low transaction limit Another type of Van Dam Card is link studentcards, are issued based on the agreement between the card issuer and trainingunits like universities and colleges that banks sign cooperation agreement with

BIDV eTrans 365+ Card: For all subjects with an average expenditureneeds, have the class: standard class, gold class, special class

Power Cards: The card has highest level (special class) for people whohave high income or business owners

Harmony Card…