Improvement retail banking business strategy at BIDV

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ KIM OANH COMPLETING THE RETAIL BANKING BUSINESS STRATEGIES AT BIDV HOÀN THIỆN CHIẾN LƯỢC KINH DOANH NGÂN HÀNG BÁN LẺ TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM (BIDV) LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ KIM OANH COMPLETING THE RETAIL BANKING BUSINESS STRATEGIES AT BIDV HOÀN THIỆN CHIẾN LƯỢC KINH DOANH NGÂN HÀNG BÁN LẺ TẠI NGÂN HÀNG THƯƠNG MẠI CỔ PHẦN ĐẦU TƯ VÀ PHÁT TRIỂN VIỆT NAM (BIDV) Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS NGUYỄN THỊ KIM OANH Hà Nội - 2019 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… ACKNOWLEDGEMENTS I would like to express my deepest gratitude to all of the following people for helping me complete my thesis Firstly, I would like to express my special thanks to my company for giving favorable conditions for my study and my master thesis completion at Hanoi school of business and management (HSB) Secondly, I am extremely grateful to all of the lecturers from the Department of Business Administration - HSB for providing me with research methods and professional knowledge during the course, especially the active and creative research skills My appreciation also goes to the teachers in the thesis review committee for giving me valuable ideas during my thesis completion process My profound gratitude is also conveyed to my instructor for his helpful assistance and guidance This thesis could have never been completed without his enthusiastic counsel and support Despite the efforts during the research period, there are still many limitations in the thesis I would hope to receive valuable comments from the teachers and coworkers to make this essay more complete Thank you very much./ Ha Noi, 2018 TABLE OF CONTENTS TABLE OF CONTENTS LIST OF ACRONYMS iii LIST OF TABLES iv LIST OF CHARTS AND FIGURES v INTRODUCTION 1 Rationale of the study Research overview Research objectives 3.1 General objective 3.2 Specific objectives Research subject and research scope Research methods 6 Organization of the thesis CHAPTER 1: THEORETICAL FRAMEWORK ON RETAIL BANKING SERVICES AND RETAIL BANKING STRATEGIES AT COMMERCIAL BANKS8 1.1 Retail banking services 1.1.1 Concepts .8 1.1.2 Characteristics of retail banking services 1.1.3 Main retail banking services 10 1.2 Retail banking strategies .13 1.2.1 Concepts 13 1.2.2 Role of retail banking strategies .15 1.2.3 Retail banking business strategies 16 1.2.4 Factors affecting retail banking business strategies of commercial banks 21 1.3 Experience in the retail banking business of some banks and lessons drawn for BIDV 25 1.3.1 Experience of Vietinbank 25 i 1.3.2 Experience of Vietcombank 26 CHAPTER 2: REALITY OF RETAIL BANKING STRATEGIES OF BIDV 29 2.1 Introduction of BIDV 29 2.1.1 History of foundation and development 29 2.1.2 Organizational structure 30 2.1.3 Business results 31 2.2 Reality of retail banking business strategies of BIDV 34 2.2.1 General strategy .34 2.2.2 Section strategies 35 2.3 Factors affecting retail banking business strategies of BIDV .54 2.3.1 Internal factors 54 2.3.2 External factors 61 2.4 General evaluation on retail banking business strategies of BIDV 71 2.4.1 Achievements 71 2.4.2 Limitations .72 CHAPTER 3: SOLUTIONS TO COMPLETE THE RETAIL BANKING STRATEGIES OF BIDV 73 3.1 Development orientation of BIDV 73 3.2 Necessary issues in completing retail banking strategies of BIDV 75 3.2 Solutions to complete the retail banking strategies of BIDV .77 3.3.1 Improving financial capacity 77 3.3.2 Enhancing the quality of human resources 79 3.3.3 Modernizing the technology system 80 3.3.4 Completing activities of marketing and market research 82 3.3 Recommendations .85 3.3.1 To the State 85 3.3.2 To the State Bank of Vietnam 86 CONCLUSION 87 ii LIST OF ACRONYMS ASEAN BIDV Bank for Investment and Development of Vietnam GDP Gross Domestic Product IT Information Technology SMEs Association of South East Asian Nations Small and medium-sized enterprises iii LIST OF TABLES Table 2.1: Some general indicators showing the business results of BIDV 32 Table 2.2: Lending interest rates for loans with collateral of some banks 36 Table 2.3: Lending interest rate for unsecured loans of some banks 37 Table 2.4: Interest rates for capital mobilization at some banks 38 Table 2.5: Customer survey results on price strategy 38 Table 2.6: Number of deposit products at BIDV 40 Table 2.7: Credit products at the bank 41 Table 2.8: Card products of the bank 42 Table 2.9: Customer survey results on product strategy 45 Table 2.10 : Number of branches and transaction offices of the bank 48 Table 2.11: Customer survey results on distribution strategy 49 Table 2.12: Some promotion policies for VIP customers 50 Table 2.13: Some policies for other types of customers 52 Table 2.14: Customer survey results on promotion strategy 53 Table 2.15: Structure of human resources 55 Table 2.16: Assessment of retail staffs at BIDV 56 Table 2.17: Market research at BIDV 59 Table 2.18: Assessment on influence of legal environment 63 Table 2.19: Competitors of BIDV 67 Table 2.20: Customers’ assessment of BIDV’s retail banking services 69 iv LIST OF CHARTS AND FIGURES Figure 2.1: Scope of service 47 Figure 2.2: Assessment of financial capacity of some banks 58 Figure 2.3: GDP growth rate of the economy 61 Figure 2.4: Growth rate of return from retail business 62 v INTRODUCTION Rationale of the study Providing personal financial services or retail banking services is one of the traditional activities forming the world's commercial banking system Since its establishment, retail banking has played an important role in creating a sustainable development basis for commercial banks Retail banking is a risk-spreading sector that is less influenced by economic cycles than other sectors Therefore, it contributes to creating stable sources of capital and income for banks In addition, retail banking plays an important role in expanding the market and enhancing the competitiveness and stability of banking operations The role of retail banking services has been clearly illustrated by the recent global economic crisis While most commercial banks that focused on retail banking survived, many major investment banks (Merrill Lynch, Lemon Brothers, etc.) went bankrupt or were in difficulty and also moved to developing retail activities It can be seen that completing retail banking strategies has become the development trend of most commercial banks in today’s world The current retail market of Vietnam is considered to be very potential due to the stable security and political environment, high population volume with young structure and improved education level The economy growing with high speed over the past few years has made the people's living standards keep improving So far, most commercial banks as well as foreign financial institutions operating in Vietnam have strategies for developing retail banking services The potential business market together with the risk of fierce competition have made Vietnamese commercial banks constantly change their business strategies, seek new investment opportunities, expand and diversify their target customer groups Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) is not out of the general trend BIDV is one of the oldest state-owned commercial banks in Vietnam Wholesale banking services are considered its strengths and its effective promotion strategy, increase the promotion and introduction of retail banking products to customers, build its brand and implement professional marketing and sales programs 3.2 Solutions to complete the retail banking strategies of BIDV 3.3.1 Improving financial capacity The financial capacity of BIDV and other commercial banks in Vietnam is generally poor All indicators are low compared to commercial banks in ASEAN and international countries Moreover, the roadmap of modernizing technology requires BIDV to invest heavily in the purchase of equipment, server hardware and software licenses Therefore, if the bank’s financial resources are limited, it will be difficult to invest in modern technology to create competitive advantages In order to improve the financial capacity and ensure the minimum safety coefficient of 8%, BIDV should implement the following measures: Increase chartered capital: Increase the chartered capital in the direction of diversifying ownership structure in order to increase the equity of BIDV; raise the CAR ratio to meet the requirements of the State Bank of Vietnam in Circular 41 and internal management of the bank in accordance with international practices in forms of: Issuing additional shares to existing shareholders, offering to foreign investors, issuing individual shares to groups of shareholders, issuing bonds to increase capital from convertible bonds (when appropriate); prioritize the sources of offers to foreign investors (including strategic investors and financial investors) in order to strengthen financial capacity while achieve the goal of gradually reducing the ratio of State ownership By the year 2020, the state ownership ratio at BIDV will be at least Priority should be given to the use of sources of offers for foreign investors (including strategic investors and financial investors) in order to strengthen their financial capacity and at the same time achieve the objective of gradually reducing the ownership ratio of the State By 2020, the ratio of state ownership at BIDV is at least 65% Increase of funds to be included in Tier capital such as: supplementary reserve for chartered capital, financial reserve fund and investment fund for 77 professional development, Tier capital will be significantly increased when BIDV re-evaluates its fixed assets and investment securities and issues bonds to increase capital Clean up finance: Continue to use the risk reserve fund to deal with irrecoverable loans This is a very important solution Therefore, the improvement of business efficiency and the increase in revenue not only contribute to the state budget but also contribute significantly to the processing of bad loan, creating a strong position for the bank For doubtful loans that customers are still able to repay, BIDV should discuss with customers so that they can have solutions to repay principals; continue to freeze old interests and apply preferential interest rate to new loans For loans to customers refusing to repay or deliberately delaying repayment, BIDV should take legal actions such as suing to the economic court For loans to customers who have been carrying out the dissolution or bankruptcy and loans in cases where BIDV currently holds a part of the mortgaged property, BIDV can sell, transfer and lease the assets to collect loans by transferring them to the debt management companies Besides, in order to reduce the bad loans, BIDV must be determined to control and manage the credit growth by focusing on the following issues: Firstly, review, re-evaluate regular and periodical loans and classify them to understand the reality of outstanding credit; periodically review the bank's credit portfolio to ensure the goals of limit and structure approved by the government in the restructuring plan Secondly, organize a thorough review and appraisal before granting new credits, in which the important content is to evaluate and prevent the possibility of risks Thirdly, complete, supplement and strictly manage the credit documents; it is necessary to issue detailed regulations on the storage, preservation and management 78 of credit documents; consider credit documents as an important asset of the bank and as the basis affirming the bank's ownership towards the asset Fourthly, resolutely increase the security assets for loans in various forms to control the credit flow return and ensure the secondary revenue from loan recovery Fifthly, credit growth must be strictly controlled and must meet the needs of customers with efficient business It is necessary to consider the time difference between deposits and loans for long-term projects, thereby determining the limits for long-term loans and loans without collateral 3.3.2 Enhancing the quality of human resources For existing staffs: It is necessary to focus on training the human resources to meet the requirements of integration; consider hiring foreign experts to build, manage, train and transfer new and key retail products and services; send the group of leading managers and key personnel abroad for training on the programs and contents that BIDV needs to promote For domestic training: Follow up training programs for all staffs; offer advanced training for the group of basically trained staff; periodically update and systematize the teaching materials; build a team of experts specializing in each field of operation, product and service Develop an incentive system for employees (salary, bonus and right to buy preferred shares) For the recruitment, BIDV needs professionalism in the recruitment process, giving requirements for wanted positions: - For executives: Executives must have knowledge of theories and professional skills in banking business, executive administration, negotiation, communication, presentation, team working, etc Executives must have a wide knowledge of economics, politics and society in the country and abroad, master the policies and laws of Vietnam and the world and have an ability to research, identify and propose issues in the professional field assigned - For operational staffs: Operational staffs must have knowledge of economics, politics, microeconomics, macroeconomics, informatics and foreign 79 languages; have an ability to solve banking operations independently, creatively and accurately Good team working: This is a particular and important criterion of banking personnel as it has a great influence on the quality of retail products that the bank provides Retail banking products and services are provided according to procedures These procedures can only be performed well with a close and synchronous coordination among employees in each department and employees between departments in the process of providing banking services 3.3.3 Modernizing the technology system At BIDV, the information technology system has been invested for many years, so it lacks synchronism and diversity compared to other developed countries Therefore, BIDV needs to improve and renovate its banking technology system to meet the needs of economic development in the coming time In order to improve and complete its technology system, BIDV should take the following measures: Transfer the existing Corebanking SIBS system to a new, modern Corebanking system with all necessary business functions to enhance the efficiency of BIDV's operations through resolving the shortcomings of the current Corebanking system and exploiting the functions and superiority of the new Corebanking Increase investment in technology to deploy products, services, utilities such as debit cards The system of ATMs needs a linkage between banks in order to save investment capital and ensures that customers deposit money at BIDV but can withdraw money from all machines of BIDV and other banks Continue to build, improve and develop the payment technology and banking information; perfect and develop BIDV’s payment technology according to the centralized payment model; connect BIDV's payment system with customers and BIDV with other banks; standardize the reporting system at the head office and branches based on the maximum exploitation of information sources in the data warehouse; review and approve projects of equipping technology 80 needed to connect new business modules (credit cards, POS) with the current system to meet the requirements at "anytime and anywhere" Continue to accumulate and concentrate capital on investing and developing banking technology Capital is a prerequisite for banks to innovate and modernize their banking technology However, the innovation and modernization of banking technology must ensure that banks can expand their scale, enhance their position, increase their competitiveness and increase their tolerance and risk resistance Continue to invest in developing a strong core banking system with a longterm vision to use, exploit and develop services to become a leading financial institution in the region (BIDV is currently developing the Core banking system phase 2); Upgrade a widespread network, synchronize the payment system, local and individual transaction system in compatible branches and integrate with the online payment and transaction system in the whole BIDV system Increase the number and quality of IT staff (system analysis-design, programming, O/S system, RDBMS, networking, hardware) through recruitment and training to be able to operate and master the operating system, database, development tools, hardware, and network of advanced technology system Increase data transmission capacity, security devices and information security mode; secure transactions via the Internet or transactions through electronic systems Purchase package software to reduce the time and cost of technology transfer; Package software is capable of dealing with external systems, outputting data to information distribution utility, reporting and operating on various servers as well as different types of networks Implement the project of modernizing the bank and payment system, in which focus on developing the management information system, online transaction system and centralized transaction processing The investment in technology renewal and modernization should be carried out following a roadmap which is suitable for the development of service operations and financial capability Namely, BIDV should follow the following steps: 81 - From now to 2020: Develop the core banking system as a basis for the synchronous deployment of software applications in risk management, retail credit management, payment system, customer transaction system in an overall technology system which is harmonious in functions and consistent in data; modernize and automatize the basic trading system, payment system and accounting system comprehensively from transaction points, transaction offices to branches and Head Office; automatize the payment and accounting system from automatic transactions; manage electronic cards, self- serving services, executive information system and online transactions of retail customers For payment cards, the bank should also issue smart-cards since magnetic cards have low cost but expose many weaknesses such as easy to be counterfeited, easy to lose data, etc., resulting in risks for both customers and card acceptors; improve processing capacity for the Management Information System (MIS) and deploy the loan management system to implement the centralized credit management and approval In the period of 2021-2025: BIDV should research and deploy the e-banking system in line with the development trend of the region and the world, avoiding the risk of lagging behind Currently, the bank should carry out networking with large customers to provide home banking services and e-banking services 3.3.4 Completing activities of marketing and market research Perform regular analysis of market and competitors Strategies of product, price, distribution and promotion in the section strategy of commercial banks in general and BIDV in particular are based on the bank’s ability to match the market situation The research of market as well as competitors is an important content that needs to be constantly implemented to improve the success of business strategies When planning a strategy, information about the external factors, especially the competitors, market and customers’ tastes is very necessary For the market research and analysis of competitors to be effective, according to the author, BIDV should perform the following contents: 82 Build and implement regulations on market research procedure with specific tasks including: + Identify the basic principles for building procedure + Build the the contents of the procedure + Organize the official deployment + Conduct periodical inspection, evaluation and improvement Set up a department specializing in market research and analysis of competitors as well as customer tastes This department is responsible for helping the bank's management make reasonable decisions on the basis of gathering information, evaluations and forecasts on major market movements; organize the training of professional staffs in this field Continue to promote multi-channel distribution, upgrade and modernize electronic and digital distribution channels to create a breakthrough in retail banking sector; improve modern distribution network (online, phone, POS, ATMs, etc.) to gradually establish a digital bank to meet the digital demand and constantly improve the market Plan and develop the ATM/ Auto bank/ Ezone network in the direction of cluster and chain development to ensure efficiency Focus on developing retail banking products on the principle of being easy to use, rich in utilities and technology, modern, diverse and suitable for each segment of customers - Define product diversification as a key strength to develop personal banking services; establish a research department specializing in product development - Focus on designing high-tech products with outstanding features in the market to make a difference in competition; utilize new distribution channels to diversify products, expand and develop consumer credit - Maximize the cross-selling of banking and insurance products; create and develop closed banking insurance products and services; develop high-tech banking products and services to make a difference from the competitors which are preferred in the market 83 Develop BIDV brand In the trend of integration and globalization, the concept of business value and property has changed a lot Intangible assets such as human resources, information and brand are becoming three groups of valuable assets, which are crucial to the business of enterprises For commercial banks, these assets are becoming more and more important since the bank’s operations are based on the bank’s reputation and customers’ trust, in which the brand is considered as the most competitive weapon Therefore, it is necessary to develop a comprehensive retail communication strategy towards customers, enhance the promotion of BIDV’s image by improving the brand identity system through traditional and modern channels, increasing internal communication, information sharing, social advertising, etc For the brand development to be professional, BIDV should implement the following measures: Firstly, choose the mixed promotion method There are six main ways to implement a mixed promotion policy to build a brand These are advertising, sponsoring, personal transactions, direct marketing, propaganda of the bank’s activities in society and promotion + Advertising and sponsoring method: Sponsor events with great attraction to the public; carry out advertising on the media Personal transaction and direct marketing methods are often cheaper, but require good communication skills and knowledge of the staffs This is a very suitable method for BIDV It facilitates the branding of the bank, improves the quality of human resources and enhances the flexibility of direct communication between customers and the bank’s employees, especially limiting the tracking of competitors + The promotion method is only effective if the bank's products are diversified and abundant and meet the needs of customers Therefore, this method should only be applied at certain times and last for a certain period of time + The method of propagandizing the bank's operation in the society is effective in the long run with low cost but requires a long process of 84 implementation of the bank for many years Therefore, BIDV can choose this method to invest in the long term Secondly, associate with major names and famous brands in and outside the banking industry to create the resonance in the brand development Thirdly, choose the branding scope based on BIDV's market development strategy 3.3 Recommendations 3.3.1 To the State The State shouldn’t impose personal income tax on savings interest since it will have a negative impact on the capital mobilization of banks in the current context where the capital demand for the economy is high and the residential capital accounts for a large proportion in the total mobilized capital at the banks The credit granting activity of state-owned commercial banks has not really distinguished policy loans and regular loans Currently, the Social Policy Bank and the Development Bank have been established, put into operation and developed the network to most of localities in the country It is recommended that the government should assign the implementation of policy lending to the Social Policy Bank Regarding loans for investing in large projects and programs of the State, the State should assign them to the Development Bank to handle In case of being necessary to continue lending to maintain the state programs that BIDV has previously been assigned, it is proposed to transfer funds from the state budget for BIDV to carry out The State should pay more attention to the management of outstanding loans to help BIDV in particular and credit institutions in general to clean up their financial situation, namely: + Resolutely handle outstanding loans in basic construction investment, in which BIDV is the leading bank in offering loans for basic construction + Have mechanisms and policies to thoroughly deal with the difficulties in some state programs related to investment loans of BIDV such as loans for sugar production, offshore fishing, coffee, aquaculture, etc 85 + Direct relevant agencies, especially the enforcement agencies and local authorities, to support BIDV in dealing with collateral assets of outstanding loans, especially land use rights and assets attached to land to recover loans Reduce import tax on technological equipment that is applied in banking operations; facilitate the development of payment activities 3.3.2 To the State Bank of Vietnam The State Bank of Vietnam should quickly introduce indirect policy instruments in line with market mechanisms and international practices; minimize and gradually eliminate the use of direct tools, especially administrative measures in the administration of monetary policy and management of banking operations Continue to build and complete the legal environment on sales activities in accordance with international practices and standards Revise the regulations on foreign exchange control and the mechanism of exchange rate management in the direction of liberalizing current transactions, selectively controlling capital account transactions and making Vietnamese currency freely transferable; gradually eliminate the restrictions on trading foreign currencies and opening payment accounts in foreign currencies in foreign countries as well as using foreign currencies in domestic payment and savings Build up a modern financial information system, ensuring that the banking system operates in an effective and easy-to-monitor manner At the same time, set up a program on integration on the internet to update the financial and monetary information in the world Enhance international cooperation in order to open up banking relations and make full use of capital sources and technologies from other countries and international organizations; exchange information on the banking sector, especially on training, disseminating knowledge and experience on integration to relevant employees of the State Bank and some commercial banks 86 CONCLUSION Over the years, BIDV system is proud to have a great contribution in the construction of most important projects and improvement of investment capital efficiency The investment strategies of BIDV have been identified in the right directions such as innovation in banking technology, innovation in executive administration, etc to enhance competitiveness Therefore, the success of BIDV system in recent years included the high growth rate of monetary business, productivity, quality of products and services and good financial capacity These factors create the premise for developing BIDV system into a multi-functional financial group in the context of international integration In its retail banking business, BIDV has built general strategies and section strategies including price strategy, product strategy, promotion strategy and distribution strategy Each business strategy had its own advantages and disadvantages For example, some strategies did not have specific goals Some strategies were not professional and did not stick to the market demand Based on the analysis results, the author proposed a number of solutions to improve BIDV's retail banking strategies in the coming time including enhancing financial capacity, improving the quality of human resources, increasing investment in technology, completing activities of marketing and market research In the process of implementing the strategies, due to continuous changes in the business environment, BIDV needs to carry out regular evaluation and inspection to have appropriate adjustments Despite her great effort, due to time constraints and limited experience, the thesis could not avoid certain shortcomings and mistakes The author would like to receive the comments from the teachers and friends to complete her thesis 87 REFERENCES Fred R David (2005), Concept of strategic management, Statistical Publishing House, Ho Chi Minh City Garry D Smith (2008), Business Strategies and Policies, Statistical Publishing House, Ho Chi Minh City Nguyen Thi Lien Diep & Pham Van Nam (2003), Business strategies and policies, Statistical Publishing House, Hanoi Dang Cong Hoan (2004), Competitive strategies of banks according to the competitive model of Michael Porter, Banking Journal No 11, 2004 Nguyen Thanh Hoi & Phan Thang (2001), Management, Statistical Publishing House, Hanoi Tran Dinh Dinh (2004), Selection of business strategies of Vietnam Commercial Bank, Journal of Financial and Monetary Market, January 1, 2004 Phung Thi Nguyen Trang (2016), Completing the retail banking business at VietinBank - Gia Lai Branch Master thesis, Can Tho University Nguyen Thanh Phong (2011), Diversifying business products of Vietnamese commercial banks in context of international integration Master thesis, Vietnam University of Commerce Dao Le Kieu Oanh (2012), Parallel strategies for developing wholesale and retail banking services at BIDV, Doctoral thesis in Economics, University of Economics, Ho Chi Minh City 10 Mac Quang Hung (2010), Investment banks, Statistical Publishing House 11 Phan Thi Thu Ha (2004), Textbook of commercial banks, Statistical Publishing House 12 BIDV (2018), Report on business results of BIDV in the period of 2015-2017 88 APPENDIX SURVEY QUESTIONNAIRE (For individual customers using business loan services) In order to have a scientific basis for proposing a number of measures to improve the retail banking strategies and constantly provide optimal retail banking products for customers, we carry out a survey to gather customers’ feedbacks on retail banking activities to find out which factors are limited and which factors have achieved good results Please take a bit of your time to answer the following survey questions We hope to receive your most objective comments to complete this research with the most objective results for this research Thank you very much! Question 1: What is your general assessment of the retail banking services that you have been using?  Not good  Fairly good  Average  Good Question 2: What are your opinions on the activities in the retail banking strategies of the bank? To answer this question, please tick () the options that are specified as follows: Completely unsatisfied Unsatisfied Neutral Satisfied Completely satisfied 89 Price strategy Item Level The prices retail banking services are adjusted flexibly for each customer group The prices of services are highly stable with small fluctuations in the short term The prices of retail banking services are competitive compared to prices of similar services of other banks The bank strictly adheres to the regulations on interest rates for each individual customer group Product strategy Item Level The bank’s retail banking products and services are diversified and abundant The bank’s retail banking products and services are competitive compared to other banks The bank’s retail banking products and services have many utilities, meeting the needs of customers The bank’s information on product packages is provided publicly, which can easily be seen Distribution strategy Item The bank’s distribution channels are beautifully decorated with full of modern facilities and equipment The bank’s distribution channels are spacious and airy 90 Level The bank’s distribution channels are located in convenient places for customers The bank’s distribution channels have enough parking space and seats for customers Promotion strategy Item The bank’s marketing and advertising information appears regularly and attracts attention The bank’s advertising information is brief but provides customers with what they need to know The forms of advertising and marketing of the bank are diversified Customers can easily find and obtain information about retail banking services provided by BIDV 91 Level ... distribution strategy and promotion strategy) a) General strategy 16 General strategy is a strategy that addresses important and lasting issues for the retail banking of commercial banks This strategy. .. specialized books related to retail banking strategies of commercial banks such as retail banking, business strategy for retail banking and factors affecting the retail banking strategies - Synthesizing... business strategies of commercial banks Chapter 2: Reality of retail banking business strategies at BIDV Chapter 3: Solutions to improve the retail banking business strategies at BIDV CHAPTER