IMPROVING LOANS SERVICE FOR SMEs OF SEABANK – CAU GIAY BRANCH

TABLE OF CONTENTSTABLE OF CONTENTS...1 LIST OF TABLES...3 LIST OF FIGURES...3 ACKNOWLEDGEMENTS...5 INTRODUCTION...6 PART 1: OVERVIEW OF SOUTHEAST ASIA COMMERCIAL JOINT STOCK BANK – CAU G

TABLE OF CONTENTS

TABLE OF CONTENTS 1

LIST OF TABLES 3

LIST OF FIGURES 3

ACKNOWLEDGEMENTS 5

INTRODUCTION 6

PART 1: OVERVIEW OF SOUTHEAST ASIA COMMERCIAL JOINT STOCK BANK – CAU GIAY BRANCH AND MY INTERNSHIP 7

1.1 Overview about Company: SOUTHEAST ASIA COMMERCIAL JOINT STOCK BANK (SEABANK) 7

1.1.1 Location and development 7

1.1.2 Mission and vision 9

1.2 Host Firm: SeaBank – Cau Giay Branch 10

1.2.1 Location and development 10

1.2.2 Activities 11

1.2.3.Products 11

1.3 Introduction of my internship 13

PART 2: INTERNSHIP IMPLEMENTATION AT SEABANK –CAU GIAY BRANCH 16

2.1 The internship position, responsibilities and tasks 16

2.1.1 Department structure and my position 16

2.1.2 Business procedure and my responsibilities 17

2.2 Some business cases 17

2.2.1 Case No1 (failed - customer risk) 18

2.2.2 Case No2 (failed – customer’s needs) 19

2.2.3 Case No3 (successed) 21

2.3 Commercial results 23

2.3.1 KPI at SeaBank 23

2.3.2 Key performance of host firm 24

2.3.3 My commercial results 25

PART 3: INTERNSHIP ASSESSMENT 27

3.1 Difficulties and proposed solutions 27

3.1.1 Difficulties 27

3.1.2 Solutions 27

3.2 Experience gained and future career plan 27

3.2.1 Experience gained 27

3.2.2 Current personal skills 28

3.3 My career plan in the near future 28

CONCLUTION 29

REFENCENCES 30

LIST OF TABLES

Table 1 : My internship plan at SeABank – Cau Giay Branch 15

Table 2: Monthly business staff’s KPI 23

Table 3: Loans sales revenue of SeaBank Cau Giay 24

Table 4: My commrecial results 25

Table 5: My career plan 28

LIST OF FIGURES

Figure 1: Organisation chart of SeABank 8

Figure 2: SMEs credit department structure 16

Figure 3: Debit balance structure according to term in SeABank – Cau Giay 24

Figure 4: My level of response SeaBank business staff’s KPI 26

I would like to express my sincere and deep gratitude to Mr Pham Tuan Anh,Vietnam university of Commerce and Mrs Marie Jose-Cambreling, Toulon Universityfor the valuable guidance and advice during the project

Besides, i wish to extend my gratitute to Director of Southeast Asia CommercialJoint Stock Bank with all staff at Enterprise Customer Department for support andguidance give to me during my internship period, especially my instructor - Mr TaDuy Truong who directly taught and responded all my question, provided me manyimportant documents and encourage me in my work

Best regards!

For many recent years, countries with developed economy have respected thedevelopment of SMALL AND MEDIUM - SIZED ENTERPRISES, because thissector plays an important role in increasing income and creating jobs for labor, leading

to the progressive growth in GDP and GNI Recognizing the importance of SMEstowards the economy in the period of international economic integration, our countryhas facilitated SMEs to develop; and in fact, SMEs have made great contribution to thenational economy However, many SMEs still have to face many difficulties in capitalfor production and operation Meanwhile, there is limitation to the SMEs’ officialcapital access from credit institutions Many SMEs are obliged to use informal capitalmobilization channels with high interest rates, small amounts and instability

Hence, I decided to select the research topic: "IMPROVING LOANS SERVICEFOR SMEs OF SEABANK – CAU GIAY BRANCH"

The report consists of 3 chapters:

Chapter 1: Overview of the project

Chapter 2: Intership implementation at Southeast Asia Commercial Joint StockBank – Cau Giay branch

Chapter 3: Internship assessment

PART 1: OVERVIEW OF SOUTHEAST ASIA COMMERCIAL JOINT STOCK

BANK – CAU GIAY BRANCH AND MY INTERNSHIP 1.1 Overview about Company: SOUTHEAST ASIA COMMERCIAL JOINT STOCK BANK (SEABANK)

1.1.1 Location and development

Full name: Southeast Asia Commercial Joint Stock Bank

International transaction name: Southeast Asia Commercial Joint Stock Bank Form of Company: Join Stock

Slogan: Linking life’s value

Address: 25 Tran Hung Dao Str., Hoan Kiem, Hanoi

Tel: (84-4) 3944 8688

Fax: (84-4) 3944 8689

Swift code: SEAVVNVX

Tax code: 0200253985

Headquartered of SeABank – 25 Tran Hung Dao Str.

- Southeast Asia Commercial Joint Stock Bank, SeABank was established andoperated in accordance with License No 0051 / NH-GP issued by Governor of theState Bank of Viet Nam on 25/03/1994; Business Registration Certificate No

0103006488 issued by Department of Planning and Investment of Hanoi, the firstregistration on 14/01/2005, the nineteenth registration on 31/12/2009

Headquartered at 25 Tran Hung Dao Street, Hoan Kiem District, Hanoi, withover 2500 headcounts, and 5446 billion VND chartered capital, SeABank is currently

on Top 10 Big Commercial Joint Stock Banks and Top 7 Commercial Joint StockBanks which have the largest chartered capital in Vietnam, in which foreign strategicpartner Societe Generale owns 20% stock In addition, two other strategic partners ofSeABank are VMS-Mobifone, which owns more than 6% of SeABank's charteredcapital and Petrovietnam Gas Corporation (PV Gas), which is one member limitedliability company belonged to Vietnam National Oil and Gas Group.

Figure 1: Organisation chart of SeABank

Board of credit Management

Credit Departments Internal control Department

- Geographical development :,

 ATM / POS network: Up to now, with a network of 330 Automated TellerMachines and 423 Point of Sale (POSs) operating nationwide, SeABank is one of thetop 12 banks with the largest ATM and POS network in Vietnam The SeABank ATM

& POS network is installed throughout the provinces

cities, in convenient locations for customers to trade

 Branch network: Until December 2015,

 the SeABank’s system had a total number

 of 161 transaction points including the

 Head Office in Hanoi, increased 7 points

 as compared with the same period last year,

 with 39 branches and 121 transaction offices

 Credit card network

successfully connected with the National Circuit Switchedorganization of National Payment Corporation of Vietnam(NAPAS) With the acceptance of cards belong to NAPAS,cards from two most popular credit card organizations forinstance Visa and MasterCard, and three other internationalcards like Amex, Diners Club, JCB, SeABank ranked in thetop fifteen Bank in Viet Nam who has a link with the six most popular card brands in theworld

1.1.2 Mission and vision

 Mission:

With aim of becoming a prominent retail bank in Vietnam, SeABank offers arounded set of banking products and services to individual customers, SMEs and largecorporations SeABank is committed to maximizing benefits for customers, returns forshareholders and ensuring sustainable development of the bank while contributing tothe socio – economic development of the country

 Vision:

SeABank desires to develop towards becoming a prominent retail bank of

Vietnam and advancing to the model of a modern multi-functional banking-financegroup with excellent product and service quality and corporate brand creditability.

 The main activities:

 Raising capital

 Loans

 International payments

 Others: Overseas remittance services, Card services

The core development strategy of SeABank in the future is building anddeveloping itself to become a typical retail bank in Vietnam; with the motto iscomprehensive, safe, efficient and sustainable development, contributing to theprosperity of the country’s economy and society

1.2 Host Firm: SeaBank – Cau Giay Branch

1.2.1 Location and development

SeABank Cau Giay Branch was established in 2007 – at 249 Hoang Quoc VietStreet On 12/08/2015 in Hanoi, Southeast Asia Commercial Joint Stock Bank(SeABank) and Intimex Vietnam SJC (Intimex) jointly opened a new headquarter ofSeABank Cau Giay Branch in Oriental Westlake Building - 174 Lac Long Quan, BuoiWard, Tay Ho District, Hanoi

SeABank Cau Giay is one of the branches which are highly estimated bycustomers for service quality and transaction processing time In the first 6 months of

2015, SeABank Cau Giay was the leading branch of personal loan sales in Hanoi, itscredit reached 95% and the capital mobilization reached 98% of plan

(The staffs of SeABank – Cau Giay )

1.2.2 Activities

Cau Giay Branch now has nearly 100 staffs, 8 underlying transaction offices andserves approximately 400000 personal customers and enterprises in this region.Together with other SeABank transaction offices in North Region, SeABank Cau Giayplays an essential part in supplying professional and modern banking services ofSeABank to various customers in Cau Giay District and its vicinity

(Customers are doing transactions in SeaBank – Cau Giay)

1.2.3.Products

- For Individual Customer

Daily Banking

 SMS & Email banking

 Mobile Banking Banking from distance (SeANet)

 Connecting with us 24/7 (SeACall)

 Inward remittance

 Make transfer within the country

 Set up an everyday account

Cards

 Local derbit card SeABank VISA

 Credit SeABank VISA

 PlatinumSeABank MasterCard

Savings

 Flexible withdrawal of principal deposit (SeASave Flexible)

 Elevator interest rate deposit (SeASave Elevator)

 SeASave TermSmart account (SeASave Smart)

 Floating interest rate account (SeASave Floating)

 SeASave Online service

 Future accumulation savings

 Get cash on OTC/exchange-traded stocks

 Need money for yournew Car (SeACar)

 Need finance support for your study (SeAStudy)

 Get cash immediatly for sold stock

 Need money for your dream home (SeAHome)

 Need higher spending (SeABuy)

 Get cash on valuable papers

International Transaction

 Western UnionInternational transfer incoming

 Western UnionInternational transfer outgoing

- For SME customers:

Daily Banking

 Current account Payroll service (SeAPay)

 Receipt of domestic incoming money

 Domestic outgoing transfer

 SMS and email banking (SeANet); online banking (SeACall)

Short-term loan

 Short-term loan for supplementary working capital

 Credit line

 Financing import L/C

 Export L/C Finace (before delivery)

 Negotiation of set of documents

Guarantee

International settlement

 Receipt of incoming transfer from abroad

 Outgoing transfer abroad

 Issue of import L/C

 Import collection

 L/C notification, amendment and confirmation; L/C assignment

 Export collection

Mid-and long-term loan

 SeACar Business

 Financing mid-term assets

 Loan for financing of long-term assets

Deposit contract

Card acceptance via EDC

1.3 Introduction of my internship

 Why the topic:

For many recent years, countries with developed economy have respected the development of Small and medium – sized enterprises so I chose this topic because of the following reasons:

- Towards banks:

 Lending is still the most profitable activity for commercial banks today.Therefore, improving the efficiency of lending in general and the efficiency of lending

to SMEs in particular bring a competitive standing for banks

 Improving the efficiency of lending to SMEs helps banks achieve two basicgoals: safety and effectiveness

 Improving the efficiency of lending to SMEs will contribute to improvinglending management capacity of SMEs

- Towards SMEs,

 Supporting SMEs in implementing capital investment process seriously andefficiently When banks improve the efficiency of lending, it means that they strictlyappraise the lending conditions to customers for collateral assets, customers’reputation, feasibility and effectiveness of the plan, investment projects

 Improving lending efficiency also means that enterprises use their loans inboosting the production and business activities more effectively than before beingfinanced When customers use the loan efficiently, they will be able to increase theirproduction capacity, expand their scale and generate more profits, thus the repayment

to the bank is guaranteed to be made accurately and sufficiently

 Improving the efficiency of lending contributes to make enterprises’production and business activities healthy When enterprises receive loans from banks,they will be supervised regularly and strictly by the banks Therefore, enterprisesalways have to respect the commitments with banks from the capital use to theimplementation of mortgage regulations

- My internship plan

Table 1 : My internship plan at SeABank – Cau Giay Branch

Knowledge of:

- Consumer lending procedure

- The terms and the manner of lending

- The loans services for SMEs: SeACar Business, Financing mid-term assets, Loan for financing of long-term assets

Skill:

- Creat customers profile

- Contact with customers

- Negotiate with the customersFrom 13/3/2017

To 13/5/2017

Mission 3:

Learn in particular how to contact and negotiate with the customers

Skill and Experience:

- Evaluate the customer financial position

- Identify customer risks, understand the real needs of the customer

- Propose a package deal consistent with the customer

Thoughts and expected solution:

- The SWOT matrix

- Some propose solutions:

Open the quality survey for old customers and the campaigns to attract new clients

- Career plan in the near future

PART 2: INTERNSHIP IMPLEMENTATION AT SEABANK –CAU GIAY

BRANCH

2.1 The internship position, responsibilities and tasks

2.1.1 Department structure and my position

- I have practiced in the credit department, in the SMEs team, under the direction

of Mr TA Duy Truong (SMEs credit manager)

The SMEs team has five permanent employees, excluding me

Figure 1: SMEs credit department structure

- Job description of trade finance professionals:

 Searching, contacting, and marketing the main banking products and services,developing potential customers and new customers SMEs;

 Receiving and managing the profiles of customers who registered for bankingservices; taking care, solving feedback and keeping contact regularly with customers

 Analyzing and estimating the customer's ability (field trips, informationverification);

 Proposing products and services and protecting proposal with approval level;

 Monitoring business activities, supervising the implementation of customers’commitments;

 Identifying risks, taking main responsibility for debt recovery

 Performing other duties as leaders of division / department assigned

During my internship, I have chance to work in a professional, friendly,comfortable and bright environment About the facility, the room is equipped with full

of modern equipment: computers, phones, air-conditioners, printers and otherstationeries, etc About colleagues, people in the department are friendly, humorous,enthusiastic, active and skillful My working time is on Monday, Wednesday, and

Friday I am always on time and I have to have a clean and neat appearance I complywith the rules and regulations of the bank.

(The SMEs team – credit Department)

2.1.2 Business procedure and my responsibilities

During my internship, I read and studied some documents on lending activities,procedures as well as terms related to other services of branch I focused on the topic

of lending to SMEs based on documents provided by the staff as follows:

+ Regulations on lending at SeABank including lending procedures, lendingconditions and lending methods, etc

+ Documents applied for lending at SeABank - Cau Giay Branch

+ Income comprehensive report and annual report of SeABank - Cau Giay branch

My assignment is to read the documents in order to understand deeply about thelending process as well as lending guarantees for SMEs I am also in charge of checkingand arranging customer profiles, implementing assigned tasks to help other members,copying and sending information, documents among departments in the branch

2.2 Some business cases

Currently, SeABank - Cau Giay provides SMEs loans following the proposedregulations to ensure the consistency throughout SeABank system According to this,the lending procedure is regulated strictly, clearly, it guarantees the safe, effectiveness,convenience and unity of application Lending procedures at SeABank - Cau Giay can

be summarized with the following steps:

Step 1: Making loan agreement contract