Some solutions for developing cashless payment in agribank viet nam

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - MAI THỊ TÂM SOME SOLUTIONS FOR DEVELOPING CASHLESS PAYMENT IN AGRIBANK VIETNAM MỘT SỐ GIẢI PHÁP PHÁT TRIỂN THANH TỐN KHƠNG DÙNG TIỀN MẶT TẠI AGRIBANK VIETNAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2019 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - MAI THỊ TÂM SOME SOLUTIONS FOR DEVELOPING CASHLESS PAYMENT IN AGRIBANK VIETNAM MỘT SỐ GIẢI PHÁP PHÁT TRIỂN THANH TỐN KHƠNG DÙNG TIỀN MẶT TẠI AGRIBANK VIETNAM 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: PGS.TS TRẦN NGỌC CA 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 i ACKNOWLEDGEMENT Thesis is the result of research of the author for a long time, by my own efforts, the enthusiastic guidance of the Associate Professor Tran Ngoc Ca and contribution of teachers, my colleague First, the author would like to express sincerely and deeply thanks to Associate Professor Tran Ngoc Ca, who has guided, oriented, supported and encouraged the author throughout the research The author would like to express her sincere thanks to the teachers, who have given the author the knowledge to support, the foundation of reasoning needed to study this topic Especially, the contribution and support of the Ha Noi School of Business (HSB) - Hanoi National University, Vietnam Bank for Agriculture and Rural Development - Agribank Finally, the author would like to send deeply thanks to my family, friends who have always supported, encouraged and facilitated the author to complete this thesis Ha Noi, December 25th 2018 Mai Thi Tam ii TABLE OF CONTENTS DECLARATION i ACKNOWLEDGEMENT ii TABLE OF CONTENTS .iii ABBREVIATION vi INTRODUCTION CHAPTER 1: THEORETICAL BACKGROUND 1.1 Digital society .6 1.2 Cash 1.2.1 The history of using cash 1.2.2 Cashless society 1.2.3 Cashless payment in fact 11 1.2.4 Examples of Cashless Societies 12 1.3 Types of cashless payment in the world 13 1.3.1 Cashless Payments Using RFID 13 1.3.2 Mobile Payments 13 1.3.3 Contactless Credit Cards 14 1.3.4 Cheque 14 1.3.5 Demand Draft .15 1.3.6 Online Transfer- NEFT or RTGS 15 1.3.7 E-Wallets 15 1.3.8 UPI Apps 15 1.3.9 Gift Card .16 1.3.10 Aadhaar Enabled Payment System .16 1.3.11 Unstructured Supplementary Service Data 16 1.4 Cashless payment in Viet Nam 16 1.4.1 Customers have to appear to bank sites 17 iii 1.4.2 Customers not need to appear in bank sites 17 1.5 Cashless payment from the view of Vietnam Government: .18 1.5.1 Overall objectives 18 1.5.2 Specific targets .19 1.5.3 Solutions: 19 CHAPTER 2: STATUS OF CASHLESS PAYMENT IN VIETNAM 21 2.1 Introduction of Agribank Vietnam 21 2.1.1 General information 21 2.1.2 Business strategy in the 2016-2020 period with a vision to 2030 23 2.1.3 Agribank network 24 2.1.4 Cultural values 25 2.1.5 Contact information: 27 2.2 Products of cashless payment .28 2.2.1 Personal Cards: .28 2.2.2 Agribank E- Mobile Banking 36 2.2.3 QR PAY 38 2.3 The situation of cashless payment in Agribank in recent years 40 2.4 Results of actual survey research 46 2.4.1 Quantitative research 46 2.4.2 Qualitative in-depth interview research 52 CHAPTER 3: SOLUTION 58 3.1 Recommended solutions to the Government, .58 3.1.1 To Issue a number of policies to encourage electronic payment 58 3.1.2 Promote e-payment in public administrative services 59 3.2 Solutions for implementation by Agribank: 60 3.2.1 Develop cashless payment in rural areas 60 3.2.2 Recruiting and training the staff to meet the increasing demands of the current market, from the perspective the service providers .61 iv 3.2.3 Immediate and Urgent solutions 62 3.2.4 Comprehensive solutions and customer classification 63 CONCLUSION, LIMITATION AND IMPLICATION 67 REFERENCES 70 Appendix 1: Transaction fee for using international card .71 v ABBREVIATION Agribank Vietnam: Vietnam bank for Agriculture and Rural Development VND: Vietnamese Dong ATM: Automatic Teller Machine EDC: Electronic Data Capture POS: Point of Sales PIN: Personal Identification Number ID: Identification Card QR code: Quick Respose Code OTP: One Time Password IPCAS: Internal Payment and Customer Accounting System vi INTRODUCTION Rationale In the development of Technology in the era 4.0 and of modern society, cashless payment is the unavoidable path that we have to reach Nowadays, if you want to win in competition and become well-known in the market, you have to catch the new trend of technogy and apply it to your current business Agribank, with a wide network in Vietnam, is one of the largerst firm and also the largest taxpayment Its main customers are farmers in the rural areas Agribank has reached 2.330 branch and transaction offices located in all 64 province of Vietnam And it also develops impressively in Hanoi and Ho Chi Minh City But the technology does not match with the speed of social development and still seems quite weak compared with other banks Bad debt in Agribank is 49.563 billion Vietnam Dong, about 6.24 % of total debt (2016), which was mainly in Hanoi, Ho Chi Minh City and Western Provinces where we can not compete with other commercial banks With factual statistics about Vietnam economy it can be seen that profits from loan bear many risks On the other hand, revenue from service is just about 20% of our total benefit Developing service is the safer way to increase revenues and decrease risks in the business According to statitstics from the World Bank, Vietnam has the lowest cashless payment, only 4.9% (2017), so that it has many free places to gain the market share We should understand and apply it to our bussiness right now I choose the thesis ‗‘Some solution for developing cashless payment in Agribank Vietnam’’ because this problem is very important and necessary in banking business It also helps our bank to overcome difficulties when the benefit from loan is not good due to bad debt Exploiting in service is the right urgent way that our bank has to change to win the competition with other banks and may also contribute a right path to the development of our society Literature review The thesis of Dang Cong Hoan (2015), ‗‘Promoting cashless payment for residential areas in Vietnam‘‘, Hanoi Economic University - Hanoi National University The topic has assessed the current state of cashless payment service in the residential area of our country, clarifying the role of State policies in promoting and developing payment services In particular, the topic has evaluated the cashless payment to the economy and community according to the time series regression model with the following variables: the ratio of cashless payment/total cash; GDP per capita and total annual state budget, to perform correlative analysis However, this thesis just examines at the macro level in over all According to Bui Thi My Huyen‘s Master thesis: ‗‘completing the cashless payment activity through bank in Ho Chi Minh‘‘ from Ho Chi Minh Economics University (2011), by the scientific quote for cashless payment through banks in comparison with the reality, the subject goes into the argument for the need to promote cashless payments through banks In particular, the topic has addressed the lessons learned in cashless payment activities of some countries that can be applied in Vietnam and the results achieved in the implementation of cashless in Vietnam for the period from the year 2006 to 2010 From researching cashless payment activities in Ho Chi Minh City, the thesis has assessed the current situation, finding out the reasons for the inadequacies and ineffectiveness, and then orient and propose solutions to complete and improve cashless payment via banks in Ho Chi Minh City Appendix 1: Transaction fee for using international card TRANSATION FEE APPLIED FROM 12/5/2018 (Based on Deciosion 1545/QĐ-NHNo-TCKT date 13/9/2017 of Agribank Vietnam GeneralDirector) No a b a b c - - 75 Appendix 2: E- Mobile Banking Service Fee 76 Appendix 3: Table of 10 questions designed for the study of five factors affecting payment services: MD: Purpose of using payment service of customers TN: the income of customers ML: the network of ATM and POS AT: The safety level while using payment service HL: customer satisfaction level HC: Disadvantages Purpose when you use E-mobile banking, international card and QR Pay a Cash withdraw b Purchase goods ans service at supermarket c Online payment d All e Others From which channel you know Agribank payment service? a Internet, newspaper, magazine b My friend and relative c At Agribank site when I visit How much is your monthly income? a 5-10 million b 10-20 million c over 20 million 77 Please let me know your level of satisfactory about banking services Many utilities Competitive fee Wide ATM, POS network Promotion news updated frequently Agribank staff are polite and enthusiastic to answer customer complaints Agribank transaction sites are very beautiful and comfortable Card issuance and service register quickly with criteria below: What are the troubles you meet when using Agribank payment services? 78 Never ATM ran out of money No connection with service Deduct money in account without reason Queries are not adequately explained by the bank teller According to you, 8.800 VND fee for each transaction with interbank tranfer a Reasonable b Unreasonable c Should not charge fee For international card, please evaluate the level of importance of these criteria: 79 Not Important Interest Rate Issuance and annual fee Other fees (cash advance, delay clear payment fee) Promotion and incentive included Customer Service Confidential Way to connect with bank Others Please evaluate the quality of services when you make transaction with Agribank Completely Satisfy Fast, Accurate Service Agri Staff Uniform polite Warmly safe guard 80 Simple and fast procedure Customer service careful (Contract Center, Promotion and gift AGR's website interface is easy to use and effective Many channels of communication between customers and AGR According to you, how many points will you give to evaluate about the quality of services of the branch / transaction office where you regularly traded, supposing the mark is from to 5, ? a b c d e 81 10 According to you, what criteria are attractive to customers? Diversify products and services Convenient and large scale transaction network site Fast, safe and secure transactions Strong brand and prestige Many preferential policies and customer service programs Social Responsibility Beautiful, professional gift Enthusiastic and professional Staff 82 ... STATUS OF CASHLESS PAYMENT IN VIETNAM 2.1 Introduction of Agribank Vietnam 2.1.1 General information Agribank: Leading Vietnam‘s rural credit market Since its establishment in 1988, Vietnam‘s Agribank. .. TRỊ VÀ KINH DOANH - MAI THỊ TÂM SOME SOLUTIONS FOR DEVELOPING CASHLESS PAYMENT IN AGRIBANK VIETNAM MỘT SỐ GIẢI PHÁP PHÁT TRIỂN THANH TỐN KHƠNG DÙNG TIỀN MẶT TẠI AGRIBANK VIETNAM Chuyên... outlines trends of cashless payment in the world and in Vietnam Based on the findings, she quoted some solutions to develop modern cashless payment products The next research is ‖the Cashless Society‖