Improving the quality of card services at bank for investment and development of vietnam sogiaodich 1 branch

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - CAO LAN ANH IMPROVING THE QUALITY OF CARD SERVICES AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – SOGIAODICH BRANCH NÂNG CAO CHẤT LƢỢNG DỊCH VỤ THẺ TẠI NH TMCP ĐẦU TƢ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH Hà Nội - 2017 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - CAO LAN ANH IMPROVING THE QUALITY OF CARD SERVICES AT BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM – SOGIAODICH BRANCH NÂNG CAO CHẤT LƢỢNG DỊCH VỤ THẺ TẠI NH TMCP ĐẦU TƢ VÀ PHÁT TRIỂN VIỆT NAM – CHI NHÁNH SỞ GIAO DỊCH Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƢỜI HƢỚNG DẪN KHOA HỌC: TS PHẠM THỊ THANH HÒA Hà Nội - 2017 LỜI CẢM ƠN Tơi xin bày tỏ lòng biết ơn sâu sắc đến thầy cô giáo Khoa Quản trị Kinh doanh, Trường Đ ại học Quốc Gia Hà Nội, đặc biệt thầy cô truyền đ ạt cho nhiều kiến thức đ ã tạo điều kiện giúp thực luận văn Tơi xin bày tỏ lòng biết ơn chân thành đến TS Phạm Thị Thanh Hòa dành nhiều thời gian tâm huyết, tận tình hướng dẫn, bảo cho tơi suốt q trình thực đề tài Tôi xin chân thành cảm ơn Ban lãnh đ ạo Ngân hàng Thương Mại Cổ Phần Đầu Tư Phát Triển Việt Nam chi nhánh Sở Giao Dịch anh chị em phòng nghiệp vụ chi nhánh phòng giao dịch tạo điều kiện thuận lợi, giúp đỡ việc thu thập số liệu thông tin cần thiết cho việc nghiên cứu luận văn Tôi xin chân thành cảm ơn gia đình, bạn bè đồng nghiệp đ ộng viên khích lệ giúp đỡ tơi q trình học tập nghiên cứu ACKNOWLEDGEMENT I would like to express my deep gratitude to the teachers of the Hanoi school of Business and Management, Vietnam National University, especially the teachers who imparted to me a lot of knowledge and helped me Carry out this essay I would like to express sincere gratitude to TS Pham Thi Thanh Hoa has spent a lot of time, dedicated guidance, only told me during the course of the topic I would like to express my sincere thanks to the Board of Directors of Joint Stock Commercial Bank for Investment and Development of Vietnam – Sogiaodich Branch and for the siblings in the professional sections of branches and transaction offices who created favorable conditions Help me in collecting data and information needed for the study of this thesis I sincerely thank family, friends and colleagues for encouraging and supporting me in the process of study and research Hanoi, date 25 month year 2017 Student CAO LAN ANH TABLE OF CONTENTS ABBREVIATION i LIST OF FIGURES ii LIST OF TABLES iii INTRODUCTION CHAPTER 1: OVERVIEW OF CARD SERVICES AND QUALITY OF CARD SERVICES OF COMMERCIAL BANKS 1.1 Overview of card services at commercial banks 1.1.1 Definition and characteristics of card services of commercial banks 1.1.2 The role and benefits of card services of commercial banks 1.1.3 Main activities of card services at commercial banks 1.2 Quality of card services at commercial banks 10 1.2.1 Definition of card service quality 10 1.2.2 The necessity of improving card operations of commercial banks 10 1.2.3 Evaluation models of card service quality at commercial banks 11 1.3 Experience in enhancing the quality of card services at some banks and lessons drawn for BIDV - Sogiaodich Branch 16 1.3.1 Experience of foreign banks 16 1.3.2 Experience of domestic commercial banks 18 1.3.3 Experience lessons drawn for BIDV – Sogiaodich Branch 19 CHAPTER 2: REALITY OF CARD SERVICE QUALITY AT BIDV – 21 SOGIAODICH BRANCH 21 2.1 Introduction of BIDV – Sogiaodich Branch 21 2.1.1 Foundation and development history 21 2.1.2 Operating model of BIDV – Sogiaodich Branch 22 2.1.3 Business results 22 2.2 Reality of the card service quality at BIDV – Sogiaodich Branch in recent years 24 2.2.1 Results of card business 24 2.2.2 Reality of card service quality at the branch in recent years 31 2.2.3 Reality of card service quality at BIDV – Sogiaodich Branch 36 2.3 Evaluation of the quality of card services at BIDV – Sogiaodich Branch 50 2.3.1 Achievements 50 2.3.2 Limitations and causes 51 CHAPTER 3: SOLUTIONS TO IMPROVE THE QUALITY OF CARD SERVICES AT BIDV – SOGIAODICH BRANCH 54 3.1 Developing orientations of card operations at the bank 54 3.2 Solutions to improve the quality of card services at BIDV Bank – Sogiaodich Branch 55 3.2.1 Investing solutions to improve facilities and demand meeting ability 55 3.2.2 Solutions to improve service deployment outcome 57 3.2.3 Solutions to complete the service providing process 59 3.2.4 Solutions to complete the management operation 60 3.2.5 Solutions to strengthen the brand image of the branch 62 3.2.6 Solutions to enhance responsibility with society and community 63 3.3 Reccomendations 63 3.3.1 Reccomendations to the State Bank 63 3.3.2 Recommendations to BIDV Head Office 64 3.4.3 Recommendations to the association of card issuing and payment banks 66 CONCLUSIONS, LIMITATIONS, AND CONTRIBUTIONS OF THE STUDY 67 REFERENCES 69 APPENDIX ABBREVIATION Abbreviation Meaning of acronym ACB Asia Commercial Bank ATM Automatic Teller Machine BIDV Joint Stock Commercial Bank for Investment and Development of Vietnam CVV Card Verification Value EDC Electronic Data Capture PIN Personal Identification Number POS Point of Sale i LIST OF FIGURES Figure 1.1: Research model of Parasuraman et al (1988) 11 Figure 1.2: Research model of Thai Van Vinh Devinder Grewal (2007) 12 Figure 1.3: Research model of Huynh Thuy Phuong (2010) 13 Figure 1.4: Research model of Nguyen Thi Kieu Linh (2009) 14 Figure 1.5: Research model of Lê Thị Thu Hương (2014) 15 Figure 1.6: Proposed research model 16 ii LIST OF TABLES Table 2.1: Business results of the branch in the stage of 2013 -2015 22 Table 2.2: Results of card service business 24 Table 2.3: Number of ATM cards at the branch 26 Table 2.4: Revenue from card services 28 Table 2.5: Number of international payment cards at the branch 29 Table 2.6: Revenue from international payment card services 30 Table 2.7: Some training activities of card staff at the branch 32 Table 2.8: Some advetising and marketing activities for card products 33 Table 2.9: Distribution system and management technology of card service business 34 Table 2.10: Common risks in card service business at the branch 35 Table 2.11 Results of the scale reliability testing 37 Table 2.12 Results of independent factor analysis 39 Table 2.13 Rotated component matrix of independent variables 40 Table 2.14 Results of dependent factor analysis 41 Table 2.15 Rotated component matrix of dependent variables 42 Table 2.16 Multiple regression analysis 42 Table 2.17 Regression coefficients 43 Table 2.18 Evaluation of resources 44 Table 2.19 Evaluation of outcome 45 Table 2.20 Evaluation of process 46 Table 2.21 Evaluation of management 47 Table 2.22 Evaluation of image 48 Table 2.23 Evaluation of social responsibility 49 Table 2.24 Evaluation of the quality of card services 50 iii INTRODUCTION Rationale of the study Nowadays, the increasing development of science and technology contributes considerably to the improvement of people’s life quality People are more and more accessible to safer and more sophisticated service products Banking service products are one of the breakthroughs on the basis of modern science and technology One of those service products is bank cards Customers using cards can conveniently carry out many transactions such as payment, transfer, cash withdrawal, internet payment, etc without having to go to the bank As a result, card products are becoming friendlier, closer, and being widely accepted by consumers As for the banks, card products also bring them a lot of intangible benefits such as raising the banks’ position, promoting their brand image, and attracting customers to the banks These are also business activities bringing revenue to the banks These are the annual fees that cardholders must pay under the card use contract; cash withdrawal fee (4% for issuing bank and at least 50,000 VND for one transaction); fees for payment transaction of goods and services by credit card at card accepting units (2.5% of the value of each transaction, commercial discount (for agent banks that help conduct payment transaction for issuing banks); some other fees such as credit card penalty fee, checking fee (fee that cardholders pay for their checking requirements), fee for card reissuance (due to theft or loss) and card exchange (as requested by cardholders), fee for posting stolen or lost cards to the list of forbidden circulation With the advantages that card services bring, each bank has built its own strategies to dominate the market and develop its card service brand The competition in developing card services of commercial banks nowadays has made customers’ demands more and more satisfied and made the card service market become more active than ever Therefore, the improvement of card service quality is very important and necessary for commercial banks In the past few years, BIDV – Sogiaodich Branch has implemented a lot of measures to improve the quality of card services However, the card services of BIDV still have several shortcomings For example, many customers apply for a card issuance but not get the cards, causing the cost wastage for the bank The problem of overdue credit card debt is arising Besides, the habit of using cash has existed in Vietnamese people’s minds for a long time Therefore, the aim of Sogiaodich Branch is to improve the quality of card services in order to expand the card product market and better control risks in card business For this reason, the author selected the topic "Improving the quality of card 15 Phung Tien Dat (2010), Solutions to enhance payment card services at Agribank – Long Thanh Branch, Research article, Lac Hong University 16 Rahaman and associates (2011), Measuring Service Quality using SERVQUAL Model: A Study on PCBs (Private Commercial Banks) in Bangladesh, Business Management Dynamics Vol.1, No.1, July 2011, pp.01-11 17 Kumbhar (2011), Customers’ satisfaction in atm service: an empirical evidences from public and private sector banks in india, Management research and practice Vol Issue (2011) pp: 1-14 18 Ha Nam Khanh Giao (2011), Levels of customer satisfaction towards payment cards at Ho Chi Minh City Journal on banking science and training, No 111, 8-2011 19 Hasan A (2013), ATM Service Quality and its Effect on Customer Retention: A Case from Pakistani Banks, Information Management and Business Review Vol 5, No 6, pp 300-305, June 2013 (ISSN 2220-3796) 20 Le Thi Thu Huong (2014), Evaluation of customer satisfaction towards the quality of payment card services of Vietinbank- Can Tho Branch Can Tho University Journal of Science , Part D: Political Sciences, Economics, and Law, 33 (2014): 21-28 21 Thai Van Vinh and Devinder Grewal (2007), Service quality in maritime transport: conceptual model and empirical evidence, Asia Pacific Journal of Marketing and Logistics, Vol 20 No 4, pp 493-518 22 Dang Thanh Hung (2012), Evaluation of lending service quality to enterprise customers with ROPMiS model at Vietinbank – Da Nang Branch, The 8th Scientific Research Conference of Da Nang University, 2012 23 Tran Trieu Khai (2010), Researching customer satisfaction toward quality of marine freight forwarding service at small and medium forwarders in Vietnam – case study at Vietlink company, The 7th Scientific Research Conference of Da Nang University, 2010 24 http://www.bidv.com.vn 25 http://www.sbv.gov.v 70 APPENDIX Appendix 01: Questionnaire NGÂN HÀNG TMCP ĐẦU TƢ VÀ PHÁT TRIỂN VIỆT NAM CHI NHÁNH SỞ GIAO DỊCH Địa chỉ: Tháp A Vincom, 191 Bà Triệu, Quận Hai Bà Trưng, TP Hà Nội Điện thoại: (04) 22.234.234/22.208.988 Fax: (04) 22.232.144 PHIẾU KHẢO SÁT SỰ HÀI LÒNG KHÁCH HÀNG NĂM 2016 Kính thƣa Quý khách hàng! Ngân hàng TMCP ĐT&PT Việt Nam – Chi nhánh Sở giao dịch (CNSGD1) trân trọng cảm ơn tin tưởng gắn bó Quý khách hàng suốt thời gian qua Với phương châm “Luôn đồng hành, chia sẻ, cung cấp sản phẩm, dịch vụ tài chính-ngân hàng đại, đáp ứng yêu cầu ngày cao khách hàng”, để cải tiến ngày nâng cao chất lượng sản phẩm, dịch vụ, chúng tơi kính mong Q khách hàng cho biết ý kiến đánh giá chất lượng sản phẩm, dịch vụ Ngân hàng TMCP ĐT&PT Việt Nam – Chi nhánh Sở giao dịch Chúng trân trọng đánh giá cao ý kiến đóng góp từ phía Q khách hàng Kính chúc Quý khách sức khỏe thành công! Hà Nội, ngày 21 tháng 05 năm 2015 GIÁM ĐỐC Chia sẻ hội, hợp tác thành công Phần 1: Thống tin khách hàng khảo sát Họ tên:………………………………………………………………………………… Địa chỉ:…………………………………………………………………………………… …………………………………………………………………………………………… SĐT:……………………………….Email:………………………… Giới tính: ‫ٱ‬Nam ‫ٱ‬Nữ Độ tuổi: ‫ٱ‬40 ‫ٱ‬7-9 tr ‫ٱ‬9-11 tr ‫ >ٱ‬11 tr Thu nhập: ‫