Phát triển dịch vụ ngân hàng điện tử tại ngân hàng nông nghiệp và phát triển nông thôn việt nam tt tiếng anh

PREFACE The rationale of the research Developing and expanding electronic banking services have been a popular trend in most of commercial banks, both in Vietnam and around the world since it plays an important role in enhancing banking services, facilitating business operations and creating favorable conditions for the economy Agribank, which is considered as one of the largest bank in financial market in terms of the size of capital and total assets, has a long development history in Vietnam However, the application of electronic banking in this bank is still limited compared with other banks There are several reasons for this One main reason is that the customers of Agribank is mainly farmers living in countryside, and the slow development of this sector has created many obstacles for applying electronic banking in Agribank in the recent years Therefore, conducting practical and empirical research in this field for both banks in Vietnam and foreign countries is necessary in order to push up the electronic banking services in Agribank The research topic “The development of electronic banking in Agribank in Vietnam” has been chosen as my PHD dissertation Literature review Electronic banking development has been studied by many researchers around the world (dissertations, thesis, articles, research projects, ) and from different perspectives and aspects Most of the international studies about this topic have been conducted mainly based on the relationship with the customers’ satisfaction Therefore, it is necessary for the banks to gain belief and customers’ satisfaction in order to develop their electronic banking services The studies about this topic in Vietnam have been conducted mainly in general and focused on electronic banking development in the past, in other countries or service quality On the other hand, in most of these studies, quality criteria or quantity norms are mainly estimated from the banks’ perspectives, econometric models are rarely applied to assess the services from the customers’ perspectives and data for analysis are already out of date Recently, there are several studies about the development of electronic banking services at Agribank, however the analysis is quite simple, quality criteria and quantity norms are used but mainly from Agribank’s perspective, therefore these studies are somewhat lack of persuasion Furthermore, the materials used for these studies are dated before 2015, so the conclusions drawn from these studies can only be used for reference purposes After consulting both international studies and domestic studies, the author find out that there are several issues need to be clarified: Firstly, what are the factors affecting the electronic banking development nowadays? Secondly, what criteria and models can be applied to assess the development of electronic banking services? Thirdly, it is necessary to clarify the development of electronic banking services provided by Agribank in recent years and the factors affecting this process Fourthly, what is the trend directing the development of electronic banking services in the future? Fifthly, what needs to be followed to develop electronic banking services at commercial banks, or in other way, is is necessary to develop electronic banking by all means? Sixthly, what are the solutions for electronic banking development at Agribank? The purposes of the research Firstly, the dissertation presents an overview and analysis about the theory of the development of electronic banking in commercial banks in Vietnam Secondly, experience in developing electronic banking of banks in Vietnam as well as in other countries is taken in consideration in this research push up the development if electronic banking in Agribank in the near future Thirdly, the dissertation analyzes the current development of electronic banking at Agribank in recent years and present the overall evaluation about the achievements in this field On the other hand, the dissertation also concentrates on the limitations of the development of electronic banking at Agribank as well as clarifies both direct and indirect causes for this situation Fourthly, based on the advantages and disadvantages for the development of electronic banking in Vietnam and the development orientation of electronic banking at Agribank for the period 2025 -2030, the dissertation proposes a number of solutions and recommendations to expand electronic banking services at Agribank in the near future The content, target, scope and methods of the research 4.1 The content of the research - Studying about the theory of the development of electronic banking services - Studying the experience about the development of electronic banking services in domestic and foreign banks, thereby contributing to the research and - application of electronic banking at Agribank Analyzing the current development of electronic banking at Agribank in recent years, focusing on the period 2011-2017, proposing solutions and recommendations to expand electronic banking services at Agribank in the near future 4.2 The targets and scope of the research 4.2.1 The target of the research The target of the research is the development of Electronic Banking in commercial banks 4.2.2 The scope of the research - The research focuses on the actual development of Electronic Banking services - at Agribank The research period is mainly from 2011 to 2017, solutions suggested for developing electronic banking services until 2025 and orientations to 2030 4.3 Research methods Apart from traditional methods mainly applied in the social research studies such as dialectical materialism method, historical method, statistics, comparison, and regression Are also used to assess the factors affecting the development of electronic banking in commercial banks The highlights of the research Chapter (i) Clarifying some theoretical factors related to the development of electronic (ii) banking services in commercial banks Clarifying the characteristics of electronic banking services and the risks attached with this kind of banking services, which affect the development of (iii) electronic banking Proposing the norms and models to assess the level electronic banking development in commercial banks (iv) Investigating the experience of domestic and foreign commercial banks in developing electronic banking services Chapter Based on the overview of the operation structure and results from the main activities of Agribank, this dissertation presents the current situation of electronic banking development at Agribank mainly for the period 2011 – 2017 The results, limitations and reasons can be drawn from the analysis Chapter The dissertation proposes a set of solutions and recommendations on improving electronic banking services at Agribank in the near future Based on the intensive research about theory and the in-depth analysis of the actual situation, the solutions proposed in this dissertation are ensured to be the scientific and feasibility The contribution of the dissertation 6.1 In terms of theory Inheriting from the foundation theories, this dissertation will present an overview and clarifications about the development of the electronic banking in commercial banks, and propose the model for estimating the feedback from the customers who are using electronic banking services as well from the the Agribank’s staff Apart from that, this dissertation also recommends the norms to assess the developing level of the electronic banking in terms of quantity and quality These will ensure a thorough assessment used in the dissertation and therefore this dissertation will be a reference for the managers, researchers, and students in banking and finance universities and academies 6.2 In terms of practical application This dissertation seeks to use appropriate materials which reflect closely the actual application of the electronic banking In addition to this, the dissertation also collect feedback from the users through survey forms with a set of questions reflecting factors related to electronic banking services The regression model is also applied to assess the level of electronic banking development Thereby, conclusions and solutions are drawn to ensure the scientific rigor and feasibility Therefore, this dissertation can be a valuable material for reference in order to expand the electronic banking services, not only at Agribank but also at other domestic commercial banks with similar characteristics The structure of the dissertation Apart from the preface and conclusion, the dissertation includes chapters as follows: Chapter 1: Foundation theory of the development of the electronic banking services at commercial banks Chapter 2: The actual situation of the development of electronic banking at Agribank Chapter 3: Solutions for developing the electronic banking services at Agribank CHAPTER I FOUNDATION THEORY OF THE ELECTRONIC BANKING DEVELOPMENT AT COMMERCIAL BANKS 1.1 An overview about electronic banking services 1.1.1 Banking services 1.1.1.1 Definition Service Service is the process and method to conduct a specific task to satisfy the need and expectation of the customer Banking service Banking service is all the operations of commercial banks to satisfy the needs of the customers in the economy 1.1.1.2 The types of the banking services The traditional banking services include: (i) Capital raising, (ii) Credit granting (iii) Payment services and budgeting tools Model banking services include: - For individual customers: (i) Debit card; (ii) Credit card; (iv) ATM card; (iv) - Tourism banking; (v) Preservation services; (vi) Tax services; (vii) Insurance; For business customers: Bank guarantee; (ix) Money transfer services; (x) Insurance services; (xi) Investment services; (xii) Accounting services; (xiii) Consulting services 1.1.1.3 The characters of the banking services: (i) Created and provided by the commercial banks to meet the needs of the customers; (ii) High expandability; (iii) Easy to be replicated; (iv) High supportiveness and close connections (v) Contribute income for the banks through service fees 1.1.2 Electronic banking services 1.1.2.1 Definition Electronic banking services are services provided by the banks which allow the customers to conduct transactions through electronic means and a system of technical software, including computers, cellphones, faxes, ATM, POS 1.1.2.2 The history of formation and development of electronic banking The stages of electronic banking development are as follows: (i) Automated teller machine (ATM) is one of the first means which provide the electronic access for the retail customers This means then supported by the computer network (ii) Mobile banking, one of the revolutionary technology which offers the customers the access to banking services wherever they are, as long as they can use their cellphones (iii) Electronic banking (iv) Banks’ websites 1.1.2.3 The characters of the electronic banking services: (i) Fast transaction speed (ii) Unlimited by distance and time (iii) Improve the customer service (iv) Low transaction fees (v) Depending on the technology facilities and containing the technological risks (vi) Depending on the users’ capacity (vii) No directly contact with the bank clerks (viii) One kind of global services 1.1.2.4 The types of electronic banking services (i) Internet banking (ii) Mobile banking (iii) Home banking (iv) Call center (v) Kiosk banking (vi) Bank cards, ATM, POS (vii) Other electronic banking services 1.1.2.5 The roles of electronic banking services For banks: (i) Help to reduce the administration and operation process, hence also help to avoid wrong handling by the bank staff; (ii) Providing the full service package with all information about banks, new services and promotion campaigns; (iii) Extending the operation scale and increase the competitive capacity; (iv) Increase mobilized capital for commercial banks For the customers: (i) Allowing customers to contact bank easily and quickly and conduct transactions at anytime, anywhere; (ii) Allowing customers to conduct financial and nonfinancial services quickly, comfortably, with great accuracy; (iii) Saving the transaction fees; (iv) Accessing to other services such as stock price information, interest rate information and portfolio management For the economy: (i) Facilitating money circulation and reducing the circulation fees for society; (ii) Accelerating the speed of capital circulation and increase the performance for the subjects in the economy; (iii) Increasing the globalization and follow the digital technology trend in the world 1.2 Development of electronic banking at commercial banks 1.2.1 Definition The development is the process of increasing from low to higher level, from simple, incompletion to more completion of a thing This process happens gradually, but also can be a quickly advance development and result in a replacement of a new thing The development is the result of the process in which quantitative changes lead to qualitative changes This is a spiral process in which at the beginning of each new cycle, the repeated thing seems similar to the previous cycle but at a higher level The development of electronic banking is the process in which commercial banks apply appropriate strategies to increase the quantity step-by-step and expand the structure of electronic banking services as well as the number of electronic banking users This process is also attached with the development of the quality of electronic banking services, hence can also help commercial banks to extend their market and increase their income 1.2.2 The need of electronic banking development For commercial banks: (i) Forming the foundation to extend the market for banks in the field of electronic banking; (ii) Facilitating globalization strategies without opening new branches; (iii) Facilitating brand advertising quickly and effectively; (iv) Increase the belief and satisfaction of the customers, hence attracting more customers For the customers: (i) Allowing customers to contact banks quickly and easily to conduct transactions at any time and anywhere; (ii) Saving transaction fees For the economy: (i) Facilitating financial transactions; (ii) Develop and reaching a non-cash economy 1.2.3 The norms reflecting the development of electronic banking services The norms reflecting the increase of the quantity of electronic banking services: (i) The increase of the number of electronic banking services; (ii) The increase of the number of the service users; (iii) The increase of the revenues from electronic banking services; (iv) The increase of market share of electronic banking services The norms reflecting the increase of the quality of electronic banking services: (i) The satisfaction of the customers; (ii) The diversification of the services and the ability to meet the need of the customers; (iii) The reliability and safeness of the services 1.2.4 The factors affecting the development of electronic banking services at commercial banks 1.2.4.1 The objective factors: (i) The economic environment; (ii) The legal environment; (iii) The factors related to the customers; (iv) The competition environment 1.2.4.2 The subjective factors: (i) The opinion of the management board of the banks and the service policy of the banks; (ii) The facilities of the banks; (iii) The brand of the banks; (iv) The quality of the human resources; (v) The price of the services; (vi) the marketing strategies 1.2.5 The risks and challenges for commercial banks in developing the electronic banking services 1.2.5.1.1 The risks The risks faced by the commercial banks include: (i) Legal risks; (ii) The risks attached by the electronic banking services (employee errors, risks from the inadequate or failed procedures, systems; fraud from the technological system; risk from the customers); (iii) Branding risks; (iv) Other risks 1.2.5.1.2 Challenges: (i) Meeting the complex and changeable needs of the customers are necessary for the banks; (ii) Commercial banks need to face increasing competition from the existing banks and other potential competitors; (iii) Designing service distributing channels in order to quickly promote new electronic banking services; (iv) Continuously and innovatively developing new services to differentiate themselves from other competitors 1.3 The experience of developing electronic banking services at commercial banks This dissertation studies the experience from foreign commercial banks in several countries such as Singapore, American and domestic banks such as: Vietcombank, Vietinbank, SeaBank Thereby, there are four lessons drawn for Agribank CHAPTER II CURRENT DEVELOPMENT OF THE ELECTRONIC BANKING SERVICES AT AGRIBANK 2.1 The overview of operation and activities of Agribank 2.1.1 The history of establishment and development The dissertation mentions the overview of the establishment history and the development of Agribank from 1988 to 2017, in which provide materials to clarify to level of development at Agribank compared with other commercial banks including state-owned commercial banks in terms of: branch network, the number of staff, the number of customers, technology, global position of the banks 2.1.2 The operation structure and activities of Agribank The operation structure of Agribank includes Board Members and Boards of General Directors, operate under the model of single shareholder limited company, 100% owed by the Government, operating under the Law on Credit Institutions, and controlled by the State Bank of Vietnam Representative offices: Representative Office of Centre Vietnam, Representative Office of Southwest Vietnam, and Representative Office of South Vietnam The distribution channels of products and services until 2017 are as follows: (i) The traditional distribution channels: 155 branches level I and II, 787 branches level III, 1301 transaction offices, depended companies, representative offices and 01 branch in Cambodia (established in 2010); (ii) Model distribution channels including 2626 ATM and 19015 EDC/POS In addition to this, there are distribution channels through Mobile Banking, Internet banking, through transaction connected to the customer (CMS); distribution channel with agency banks (825 agency banks in 86 countries and territories) Agribank has sign in the agreement with Phongsavanh Bank (Laos), Acleda Bank (Cambodia), Agriculture Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB), Industrial and Commercial Bank of China (ICBC) to process cross-border transactions and to create advantages for customers and parties involved 2.1.3 The performance of main business activities Capital mobilization Table 2.1 Savings mobilization at Agribank in the period 2011- 2017 Unit: billion VND Description 2011 2012 2013 2014 2015 2016 2017 ∑ 506.316 557.028 634.505 700.124 810.101 924.155 1.007.694 Non-term interest rate 80.743 100.837 114.454 111.623 135.974 143.285 164.688 < 12 months 266.398 304.396 369.842 403.687 431.817 460.576 499.750 ≥12 months 97.541 135.145 142.094 174.881 236.467 320.294 343.256 Personal Savings 306.709 395.038 462.442 540.821 626.975 732.217 791.064 Organizationa l Savings 166.127 156.725 172.011 158.954 181.549 191.938 216.630 Tenor Target customers Currency VND 458.277 516.830 602.161 669.972 781.620 904.562 988.036 Foreign Curency, gold converted to VND 48.039 40.198 32.344 30.152 28.481 19.593 19.658 Source: Agribank Annual Business Report and Financial Statements Table 2.1 shows that there was a stable increase in the capital mobilization in the period 2011 – 2017 in Agribank: 6,61% (2011), 10,02% (2012), 13,91% (2013), 10,34% (2014), 15,71% (2015), 14,08% (2016), more than 9% (2017) Lending Table 2.2 Lending activities at Agribank in the period 2011 – 2017 Description 2011 Total loans to 443.476 customers 2012 2013 2014 2015 2016 2017 480.452 530.601 553.554 626.357 745.134 864.461 456.533 503.650 530.219 604.849 724.408 843.476 23.919 26.951 23.335 21.508 20.725 20.985 Currency VND 409.157 Foreign currency 34.319 Target customers Personal Savings 211.964 245.480 298.650 338.317 404.036 497.047 568.576 Organizatio nal Savings 231.512 234.972 231.951 215.237 222.321 248.087 295.885 281.395 311.423 347.695 356.774 396.805 451.156 550.003 Medium - Long 162.081 term 169.029 182.906 196.780 229.552 293.987 314.458 301.608 320.075 378.985 411.317 444.660 514.154 621.046 Non-agricultural 141.868 business 160.377 151.616 142.237 181.697 230.980 243.415 Tenor Short-term Sector Agricultural business Source: Agribank Annual Business Report Table 2.2 shows that the increase of loans to customers was not stable during the period: 6,92% (2011), 8,34% (2012), 10,4% (2013), 4,33% (2014), 18,96% (2016), more than 16% (2017) Foreign currency trading and international payment services International payment services: There was a decrease in the revenues from international payment activities in the period 2011 – 2012, however from 2013, this situation has been improved considerably with revenues of 7.7 billion USD in 2013, billion USD in 2014, 11 billion USD in 2016 and 12.5 billion USD in 2017 Foreign currency trading: there was an unstable increase in the revenues from foreign currency trading activities: 17% (2012), 10,86% (2013), however this number was decreased by 17,93% in 2014 compared to 2013 In 2016, there was a substantial increase to 42.550 billion USD and continues this trend to 20,1 billion USD in 2017 Overseas national currency exchange: there were impressive numbers for this activities: 1.086 billion VND in 2011 and an increase of more than 16% in 2012 compared with 2011 This number was continuously increasing in the next few years: 1.286 billion USD (2013), 1.350 billion USD (2014) and 1.408 billion USD (2017) Other activities Domestic payment services: Revenues growth rate from this activity from 2011 – 2016 was increased impressively but inconstantly: accept from a decrease of more than 8.4% in 2013, this growth rate was 96,95% (2012), more than 19% (2014) and 22% (2017) Card payments: the number of number of cards issued was increased during the period: 26% (2012), 3,38% (2013), 11,58% (2014), 15% (2015), 11% (2016), 8,86% (2017) The number of Agribank cards accounts for 14.9% of the total number of cards issued within Vietnam Revenues from card payments was increased during the period: 26% (2012), 38% (2013), ,15% (2014), 16% (2015), 10% (2016), and 16,7% (2017) 2.2 The development of electronic banking at Agribank 2.2.1 The legal foundation for electronic banking services The legal documents related to electronic banking services which provided by Agribank have been listed in this dissertation, including Act issued by the Congress, other legal documents issued by the Government, Ministry and Departments 2.2.2 The current development of electronic banking service at Agribank 2.2.2.1 The development stages of electronic banking services at Agribank The period from 2001 to 2010: Agribank built up the structure reform for the whole system in the period 2001 – 2010 through main strategies: (i) Enhancing the financial capacity of Agribank; (ii) Plans for developing banking services in which electronic banking services is expanded by: increasing payments using ATM connected with customers’ account, issuing debit cards (ATM cards), testing the internet banking services, providing insurance services, The period from 2011 – 2017: expanding a wide range of electronic banking services such as e-Banking, Bankplus and SMS Banking (automatically informing the change of the account balance); Account balance information; Bank statement of latest transactions; VNTOPUP (payments for cell phone bills, payments for game cards, payments for digital wallet VnMart); Transactions within Agribank system, bill payments, tuition fee payments, savings balance information, SMS banking for international credit cards, home banking, Apart from that, Agribank also expand the cooperation with other organizations to exchange services and cross selling services such as: Viettel, Vinaphone, electronic companies, water supply companies, and universities 2.2.2.2 Analysis the current development of electronic banking services provided by Agribank A/ Norms reflecting the quantity development Firstly, the number of electronic banking services has been increase as Agribank has provided and applied many kind of services such as e-Banking, Bankplus and SMS Banking Secondly, the number of customers using the electronic banking services at Agribank is presented in the table below: Table 2.8: The number of customers using the electronic banking services at Agribank in 2011 – 2017 Unit: million customers Year SMS Banking Bankplus Agribank M-Plus Agribank EMobile Banking 2011 1.866.389 Chưa triển khai Chưa triển khai Chưa triển khai 2012 2.578.814 Chưa triển khai Chưa triển khai Chưa triển khai 2013 3.300.743 12.000 Chưa triển khai Chưa triển khai 2014 4.126.840 35.000 3.000 2015 4.600.500 45.000 7.500 120.000 2016 5.391.409 60.000 12.500 330.000 2017 5.729 86.650 20.565 621.000 Chưa triển khai (Source: Agribank business report) Table 2.8 shows that there was an impressive increase in the number of customers using electronic banking services provided by Agribank in the period 2011 – 2017 with the main concentration on SMS Banking On the other hand, Bank Plus, Agribank M-Plus, Agribank e-Mobile Banking which have just been started but the number of customers using these services have also increased impressively, especially Agribank e-Mobile Banking Market expanding at countryside Agribank holds the majority of the market share for individual customers in countryside Therefore, approaching and using modern banking services for this type of customers is still limited, especially Mobile Banking services High service fees is one of the obstacle for Agribank to approach individual customers (fees for banking messages is now times as high as compared to normal messages) Thirdly, revenues from electronic banking services Table 2.9 The norms reflecting revenues from electronic banking services provided by Agribank 2011 – 2017 Unit: Billion VND Total Revenues Card services e-Banking services 2011 2.329 147 25 2012 2.168 185 81 2013 2.405 236 105 2014 2.689 345 137 2015 3.054 461 189 2016 3.641 562 250 2017 3.998 712 427 (Source: Agribank business report) Table 2.9 shows that the revenues from electronic banking services was quickly increased in 2011 – 2017, especially e – Banking services However, if compared with the total revenues of Agribank, this result is still underperformed, taking into account the high potential of the market in this field For more details, the revenues in 2011, 2012, 2013, 2014, 2015, 2016 and 2017 was 172 billion VND, 266 billion VND, 341 billion VND, 482 billion VND, 650 billion VND, 812 billion VND and 1,139 billion VND respectively Fourthly, the market share of electronic banking services Table 2.10 The market share of electronic banking services provided by Agribank in the period 2011 – 2017 Unit: % Market share of electronic banking services In which: The market share of the card services 2011 2012 2013 2014 2015 2016 2017 12,45 12,46 12,53 12,78 12,81 12,84 12,95 13,23 13,31 13,42 13,38 13,46 13,51 13,66 (Source: Payment Department – State Bank of Vietnam) Table 2.10 shows that the market share of electronic banking services provided by Agribank was pretty stable during the period 2011 -2017, and Agribank was in the top three commercial banks providing good card services in Vietnam B/Norms reflecting the development in quality of electronic banking services In order to examine the development in quality of electronic banking services provided by Agribank, questionnaires have been given to business, individual customers and bank staff who use electronic banking services, after that model Servperf is used to examine the factors affecting the decisions to use electronic banking services provided by Agribank Questionnaires given to the customers: there was 450 questionnaires in which 400 ones are appropriate for the analysis Questionnaires given to the bank staff: there was 400 questionnaires given to staff at Head Office and other big branch (in Hanoi, Da Nang, Hochiminh City, Can Tho, ) and all were appropriate for analysis Data acquired from the survey was then used to measure the scale reliability by Cronbach’s Alpha method The results of the experiment are as follows: For Agribank’s customers Based on the regression result and relationship test between the independent and dependent variables related to service quality, there are conclusions as follows: - The visibility: Beta of the visibility is 0.29, which means that the visibility and service quality have the positive relationship If other variables not change, when the visibility - increases unit, service quality will increase 0.29 unit Customers’ satisfaction: Beta of this factor is 0.392 which means if other variables not change, the service quality will increase 0.392 unit when “Customers’ satisfaction” factor increases unit This factor affect the development of electronic banking services provided - by Agribank in recent years Comfortability: Beta of this factor is 0.321, which means if other variables not change, the comfortability factor increases unit will lead to the service quality increase of - 0.321 unit Price intensives Beta of this factor is 0.322 which means if other variables not change, the service quality will increase 0.322 unit when the “Price intensives” factor increase unit For officials and staff at Agribank Similarly, based on the regression result and the test of the relationship between independent and dependent variables for service quality, there are conclusion as follows: - Reliability Beta of this factor is 0.332 which means that a change of unit of the - reliability will lead to an increase of 0.332 unit of service development factor Customers’ satisfaction Beta of this factor is 0.306 which implies that when the “Customers’ satisfaction” factor changes by unit, service development factor will - increase 0.306 unit Price incentives Beta of this factor is 0.284 which means that when the price incentives - changes by unit, the service development factor increases 0.284 Visibility Beta of this factor is 0.239 which means that if the visibility factor changes by unit, the service development factor will increase 0.239 2.3 Overall assessment of current development of electronic banking services provided by Agribank 2.3.1 Achievements (i) The policies related to electronic banking of commercial banks are quite integrated and accomplished, which is the most important foundation for electronic banking development of Agribank; (ii) Strategies and policies introduced by the manager board of Agribank have been proved to be appropriate which help Agribank to reach the target, to diversify the services provided and meet the needs of the customers; (iii) There are a large number of customers using electronic banking services; (iv) The revenues from electronic banking is increasing quickly; (v) The technology infrastructures are improved more and more, which help Agribank to expand electronic banking services more broadly 2.3.2 Drawbacks (i) The number of electronic banking services is increasing quickly but mainly in quantity, the functions of services provided have not been received the appropriate attention; (ii) The number of customer using electronic banking services is too small compared to the large number of branches and transaction offices; (iii) The revenues from electronic banking is mainly from card payment services; (v) (vi) The results from model estimating the customers’ satisfaction indicate that: 1/ Agribank’ services have not met the needs of the customers in terms of the limit of the amount money transferred; 2/ Electronic banking services provided by Agribank are not really convenient 2.3.3 The reasons of the drawbacks 2.3.3.1 Objective reasons (i) Inadequate legal environment; (ii) The macro economy development is not stable and steady; (iii) Citizen’s income is at the low-medium level; most of the population in the rural area has the low income; the customers’s preference of cash payments, especially in the rural areas and their self-security is still limited; (iv) There is a strong competitiveness in providing electronic banking services 2.3.3.2 Subjective reasons (i) The opinion of the Manager Board and policies about electronic banking of Agribank; (ii) The technological infrastructures are still limited; (iii) The quality of human resources has not meet the requirements for the electronic banking development; (iv) limited financial capacity CHAPTER III SOLUTIONS FOR ELECTRONIC BANKING DEVELOPMENT PROVIDED BY AGRIBANK 3.1 Opportunities and challenges in electronic banking development provided by Agribank 3.1.1 Opportunities (i) The macro economy, the legal environment continues to be developed, attention by the Government to develop electronic banking services and the introduction of Development Plan for non-cash payment in Vietnam; (ii) The stable development of the economy will be remained; (iii) The technology infrastructures will be invested and accomplished step – by – step (iv) The majority of population is at young age and there is large amount of population living in rural area (vii) Agribank has the large network of branches all around the country 3.1.2 Challenges and difficulties (i) The perception about electronic banking services of the majority of population in rural area is still limited; (ii) Inadequate legal environment for electronic banking development; (iii) The technological infrastructures are still limited for electronic banking development; (iv) Limited financial capability and the lack of technical and computer skills of staff, especially at local branches also are difficulties to apply electronic banking services 3.2 The plan to develop the electronic banking services provided by Agribank to 2025 and to orientations to 2030 3.2.1 Plan to develop business activities at Agribank to 2025 and orientations to 2030 The plan will focus on: (i) Exploiting advantages as one of the largest bank in Vietnam; (ii) Expanding safely a sustainable business; (iii) Step – by – step applying the modern banking technologies and expand banking services for business and individuals in centralized economic areas and urbanization areas, thereby exploiting advantages of large branch network around the country; (iv) Maintaining and improving the ability to generate income through service diversification, focusing on safe business strategies and reduce the operating fees through reforming and restructuring branches and transaction offices; (v) Improving the human resources quality, one of the major factor to push up the competitive ability of Agribank in the international integration and ability to generate income in the years to come 3.2.2 Plan to develop electronic banking services at Agribank (i) 24/24 hour customers support allows customers to access to Agribank’s services at anytime, anywhere; (ii) Researching and forming product and service packages suitable for each kind of customers and business fields, then quickly forming the typical services provided by Agribank; (iii) Focusing on upgrading and developing the modern distribution channels such as: Mobile Banking, Internet Banking, ATM, EDC/POS and other new distribution channels; (iv) Renewing and standardizing the transaction procedures and decreasing documents required during the transaction process to save transaction fees and time 3.3 Opinions about electronic banking development (i) Electronic banking services provided based on the modern technology infrastructures, therefore, in order to develop this kind of services, commercial banks need to increase investments for technologies, especially the information technology; (ii) Electronic banking services are advance services which requires both providers and users to have adequate understanding about them in terms of functions and potential risks (iii) The Government’s projects to improve technology infrastructures are necessary which support for the application of electronic banking services in banking industry On the other hand, the Government’s education and training projects are also needed to improve knowledge of the citizens about electronic banking services, especially in the rural and remote areas 3.4 The solutions to develop electronic banking provided by Agribank in the years to come 3.4.1 Improving the human resource quality to meet the requirements for electronic banking development The solutions are: (i) Forming strong work ethic and standard working behavior for staff; (ii) Proposing the business strategies suitable for human resource strategies; (iii) Effectively forecasting the human resource needs for electronic banking services development (iv) Focusing on improving the quality of the human resources as well as completing the management policies for high quality human resources in electronic banking fields 3.4.2 Maintaining and exploiting advantages of financial capability of Agribank for electronic banking development Agribank needs to: (i) Declaring financial statements, income statements on various public communication channels (ii) Improving the transparency of the business information and inviting the domestic and foreign ranking organizations for the accessing process for Agribank 3.4.3 Application and development of information technology to ensure safeness of electronic banking services Agribank needs to: (i) Investing in the security data protection technologies and from developed (ii) countries; Forming the security inspection process for each electronic banking applied; (iii) Increasing close inspection and thorough management the relationship with partners and the dependent third parties Incorporating the risks in providing electronic banking services into “Thorough Risk Management” activities of Agribank; (iv) Applying double inspection process for sensitive activities, 3.4.4 Increasing the marketing activities for electronic banking services The solutions are: (i) (ii) (iii) (iv) Increasing the distribution network for electronic banking services; Appropriate customer policy; Forming and applying marketing policies for Agribank’s new services; Conducting marketing training courses ad introducing new services to staff as well as forming the marketing materials for new services 3.4.5 Expanding the supportiveness of electronic banking services Agribank needs to focus on: (i) Changing the perception and opinion of “doing business to meet the target and high profit” to “maximizing customers’ satisfaction, thereby reaching the business target and profit (ii) growth”; Enhancing customer service quality as well as researching and improving Agribank’s (iii) services; The quality depends mainly on the working attitude and transaction culture of bank staff, therefor Agribank needs to form a standard in communication and consider this as one (iv) (vi) aspect to access the working effectiveness; Maintaining customers’ satisfaction and increasing the cooperation with customers; (v) Expanding visible means in order to gain belief of the customers; Minimizing the errors from the bank’s side while conducting services through professional training for and taking errors made into the consideration while accessing work performance of staff On the other hand, it is necessary to form a standard procedure to apply new services simply, quickly and utilize the use of computers to avoid handling errors made by human; (vii) Forming the fee policy for electronic banking services 3.4.6 Enhancing the reputation and brand of the bank The solutions are: (i) Ensuring the reputation of the bank while providing the services for the customer via norms to assess the adequacy, timing, content and after-sales services; (ii) Building up the brand as well as ensuring the reputation of the bank 3.4.7 Creating mutual support for services provided by Agribank The solutions are: (i) Forming and expanding the thorough services in order to meet the logical needs of customers as well as ensuring the fully provision of services (capital, payments, foreign (ii) exchange, and risk protection tools such as Forward, Options, Swap, Future); Creating customer policies to encourage the customers to use full service packages 3.4.8 Developing the integration and cooperation with other banks to provide electronic banking services Agribank needs to strengthen the relationships with other banks to utilize technical infrastructure When the customers open bank accounts and register for services at any banks, they can also use those services provided by Agribank 3.5 Recommendations 3.5.1 Recommendations for Congress and the Government (i) Creating the effective, applicable and integrated legal monitoring system which help to improve the operation of commercial banks; (ii) Implementing strongly the Decision No 291/2006/QĐ-TTg and Directive No 20/2007/CT- TTg; (iii) Improving the social and economic environment, developing the economics foundation in order to facilitate banking sector in Vietnam, especially promoting the National Target Program for the Development of New Rural Areas 3.5.2 Recommendations for the State Bank of Vietnam (i) Implementing the scheme on non-cash payment in Vietnam in the 2006 – 2010 period and orientations to 2020 as stated in Decision No 291/2006/QĐ-TTg; (ii) Speeding up the forming process of laws directed by State Bank of Vietnam as required by the Government; (iii) Establishing the national financial automatic switch center; (iv) Expanding the payment transactions in terms of scales and time for the electronic banking system; (v) Attention to risks protection for general financial transactions and financial services for agricultural, rural and remote areas; (vi) Creating the cooperation between banks in Vietnam to develop electronic banking services for rural areas 3.5.3 Recommendations for Vietnam Banks Association It is necessary to increase the role of each commercial banks within to organization; developing the link and cooperation between domestic banks in operation, thereby increasing the support between them, push up the competitive ability of Vietnamese banking system, partly contributing for the implement of money policies, ensuring the appropriate operations of credit organizations, and enhancing social, economics development CONCLUSION The dissertation presents the overview about theory, analysis and assessment of current situation and solutions for electronic banking development at Agribank as follows: Firstly, the dissertation presents the synthesis and clarification the theory of electronic banking development at commercial banks and suggests the norms and models in order to estimate the level of electronic banking development at commercial banks The factors affecting the development of electronic banking at commercial banks are also mentioned and clarified (4 objective factors and subjective factors) Secondly, the dissertation studies the experiences about electronic banking development from commercial banks in several countries such as: Singapore, America (City Bank), Thailand (Thai Military Bank) and other domestic commercial banks (Vietcombank, Vietin bank, Seabank) There are lessons drawn from the research for Agribank in this field Thirdly, the dissertation analyzes the current development of electronic banking at Agribank mainly in the period 2011 – 2017 The results have been presented with achievements, problems and reasons for them (4 objective reasons and subjective reasons) Fourthly, the dissertation proposes solutions and recommendations in order to develop electronic banking services provided by Agribank in the years to come  ... the State Bank of Vietnam Representative offices: Representative Office of Centre Vietnam, Representative Office of Southwest Vietnam, and Representative Office of South Vietnam The distribution... 291/2006/QĐ-TTg and Directive No 20/2007/CT- TTg; (iii) Improving the social and economic environment, developing the economics foundation in order to facilitate banking sector in Vietnam, especially... the State Bank of Vietnam (i) Implementing the scheme on non-cash payment in Vietnam in the 2006 – 2010 period and orientations to 2020 as stated in Decision No 291/2006/QĐ-TTg; (ii) Speeding up